HSBC Has A Lot Of Work Left To Do
Stephen Simpson, CFA
Stephen Simpson, CFA
Hong Kong Protests Offer An Interesting Opportunity On HSBC
HSBC Has A Valuable Core Franchise, But A Lot Of Work To Do
Stephen Simpson, CFA
Stephen Simpson, CFA
Tue, May 3, 8:20 AM
Tue, May 3, 2:54 AM
- HSBC's first-quarter earnings fell 18.2%, but beat forecasts, as the British bank grappled with its Asia strategy.
- Profits also slumped at UBS, as its wealth-management business suffered and its investment bank failed to pick up the slack.
- BNP Paribas (OTCQX:BNPQF) reported a jump in net income despite difficult markets, following lower provisions against bad retail loans and a debt valuation adjustment.
- Market turbulence and low interest rates dragged down the earnings of Commerzbank (OTCPK:CRZBY), which posted a 52% drop in Q1 net profit.
Mon, Feb. 22, 2:26 AM
- Citing a slowdown in Asia for creating headwinds, HSBC swung to a $1.3B loss during its fiscal fourth-quarter from a year-earlier profit of $511M, as Europe's largest bank caught China's cold.
- Despite the negative results, the lender said it would maintain its dividend.
- HSBC further disclosed that it's cooperating with an SEC probe for allegedly hiring individuals with ties to government officials in Asia. Other banks are also being investigated.
Nov. 2, 2015, 1:55 AM
- HSBC (NYSE:HSBC) beat expectations for third-quarter profits in spite of China's stock market collapse denting revenues, as the bank benefited from lower regulatory costs and reassured investors about its Asian loan portfolio.
- Pre-tax profit at Europe's largest lender jumped 32% to $6.1B, topping forecasts of $5.2B, although revenue dropped 4% to $14B.
- HSBC also did not give any further details on its domicile review, which began in April, but warned the year-end deadline it had imposed could slip.
May 5, 2015, 5:24 AM
- Despite the recent scandals that have plagued the bank, HSBC's (NYSE:HSBC) first-quarter profit beat analysts' estimates, benefiting from an increase in securities revenue and lower bad loans.
- Pretax profit rose to $7.1B vs. $6.8B a year earlier.
- The bank also said it would make the decision whether to move its headquarters out of the U.K. within months rather than years.
- HSBC -2.4% premarket
Feb. 23, 2015, 4:30 AM
- HSBC (NYSE:HSBC) -4.8% premarket after reporting that profits fell 17% to $18.7B in 2014, down from $22.6B the year before and below the average analyst forecast of $21B.
- The bank, which faced a significant number of fines and settlements last year, also cut its target for RoE to "more than 10%" from a previous target of more than 12%.
- "We deeply regret and apologize for conduct and compliance failures...which were in contravention of our own policies," added HSBC, addressing the allegations about tax evasion at its Swiss operations.
- HSBC chief executive, Stuart Gulliver, has been recently dragged into the tax-evasion scandal after it was claimed that he sheltered millions of dollars in a Panamanian company via its Swiss private bank.
Nov. 3, 2014, 5:38 AM
- HSBC (NYSE:HSBC) set aside $1.7B to cover one-off charges, including $378M for a possible settlement with the U.K. Financial Conduct Authority over alleged forex manipulation.
- HSBC also booked a $701M provision to compensate customers for mis-sold products and $550M for a deal with the Federal Housing Finance Authority.
- Pretax profit of $4.61B missed estimates of $5.47B.
- Adjusted revenue flat at $15.58B.
- Net profit increased to $4.53B from $3.2B as provisions for bad loans dropped.
- Costs rose 6%, with HSBC having to hire ever more risk and compliance staff.
- Share are flat premarket.
Nov. 3, 2014, 3:35 AM
- HSBC's (NYSE:HSBC) pretax profit rose 2% in Q3 to $4.61B, although underlying earnings fell 12% to $4.41B.
- EPS $0.23 vs $0.16 a year earlier.
- Revenues increased to $15.775B from $15.08B
- HSBC declared a Q4 dividend of $0.10 a share.
- "Revenue continued to grow in Commercial Banking, dominated by growth in our home markets of Hong Kong and the United Kingdom," says CEO Stuart Gulliver. "Global Banking & Markets contributed a strong revenue performance with its differentiated business model. Global Private Banking has attracted net new money of $10B in areas targeted for growth since the start of the year." (PR)
May 7, 2014, 9:16 AM
- HSBC Holdings net profit of $5.2B falls from $6.4B a year ago. Underlying revenue of $15.7B off 8%. Underlying costs up 2% as higher compliance costs win out over trims elsewhere.
- Investment banking pretax profit off 20%. FICC (slowing throughout the industry) accounts for 25% of unit's revenue.
- Asian pretax profit off 32%, at least some of that due to a $1.8B gain from Ping An and Industrial Bank a year ago. HSBC says April activity has been "muted."
- Shares -1.2% premarket
Feb. 24, 2014, 4:39 AM
- HSBC's (HSBC) 2013 pretax profit rose 9% to $22.56B but fell short of consensus of $24.6B.
- Underlying revenue grew to $63.3B from $61.6B, while underlying operating costs dropped 6% to $38B.
- Q4 pretax profit fell to $3.96B from $4.43B a year earlier.
- HSBC increased its dividend to $0.49 a share from $0.45.
- However, the bank warned of "choppy markets" this year as emerging economies adjust to "changing economic circumstances and sentiment."
- Shares are -4.2% in London. (PR)
Feb. 23, 2014, 2:20 AM
- HSBC (HSBC) is set to disclose that it will pay staff bonuses of just under $4B when it releases its full-year results this week, Sky News reports.
- The amount will represent a rise from $3.69B for 2012.
- FY underlying pre-tax profits at HSBC are forecast to have increased to $22.2B from $18.8B, Standard Chartered analysts have said.
- HSBC is also expected to disclose a significant impairment charge in connection with its Mexican operations.
Nov. 4, 2013, 4:04 AM
- HSBC's (HBC) underlying revenue flat at $15.59B; overall revenue +3.5% to 15.08B.
- U.K. and Hong Kong markets contributed over half of HSBC's underlying pretax profit.
- Underlying operating expenses -4% to $9.57B.
- Achieved $400M of cost cuts, taking the annualized total to $4.5B since the start of 2011, which is ahead of plan.
- Loan impairment charges and other credit risk provisions $1.59B vs 1.72B a year earlier.
- Compensation for U.K. customers $428M.
- Restructuring and other related costs $158M.
- Core tier 1 ratio 13.3%
- Outlook: "We see reasons for optimism with some evidence of a broadening recovery." (Previous) (PR)
Aug. 5, 2013, 5:01 AM
- HSBC's (HBC) underlying pretax profit +47% to $13.1B, helped by lower loan-impairment charges and operating costs.
- Attributable profit +23% to $10B.
- Net interest income -8% to $17.8B.
- Western economic growth continued to be tepid while growth in China and the rest of Asia stuttered; regulatory reforms added to costs.
- Impairment charges and credit risk provisions -$1.7B to $3.1B.
- Grew revenues in key areas: Financing & Equity Capital Markets, Credit businesses, residential mortgages in the U.K. and Hong Kong, and from collaboration between global businesses.
- Return on equity rises to 12% from 10.5% last year.
- Underlying expenses -8%, helped by $800M of cost savings across all regions, taking the annualized total to $4.1B since the start of 2011.
- Core tier 1 ratio 12.7%, common equity tier 1 ratio 10.1%.
- Total assets -2% since December to $2.645T.
- Declares second interim dividend for 2013 of $0.10 a share.
- Shares -3%. (PR)
Aug. 5, 2013, 4:44 AM
May 7, 2013, 4:45 AM
HSBC Holdings Plc operates as a holding company. It provides banking and financial services through the following global businesses, including Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets and Global Private Banking. The Retail Banking and Wealth Management... More
Industry: Foreign Money Center Banks
Country: United Kingdom
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