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
Mon, Jun. 6, 7:29 AM
- Part of the bank's plan to cut nearly 20% of headcount and shrink the investment bank by one third, a new memo seen by Reuters details sizable changes to make the global banking decision more "agile."
- Among them is a new corporate, financials, and multinationals banking unit, and a new advisory team combining corporate finance with M&A. Several dozen junior staff will exit as part of the changes.
- HSBC +0.5% in London action.
Mon, May 23, 3:10 PM
- The ruling from the Court of Appeals for the Second Circuit reinstates previously thrown out private antirust lawsuits against 16 banks for allegedly rigging Libor.
- There are a number of groups of plaintiffs, including Baltimore, Houston, and San Diego.
- For now, the case goes back to lower court for further proceedings. If the suits are successful, the bill to banks could be several billion dollars.
- Roughly a dozen financial companies have already settled official charges of rate manipulation, with some pleading guilty to criminal charges.
- The defendants in line from today's ruling include: Bank of America (NYSE:BAC), Barclays (NYSE:BCS), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB), HSBC, JPMorgan (NYSE:JPM), Lloyds (NYSE:LYG), Royal Bank of Canada (NYSE:RY), SocGen (OTCPK:SCGLY), UBS, and Royal Bank of Scotland (NYSE:RBS).
Wed, May 18, 10:31 AM
- A new poll shows the "remain" camp gaining strength, with an 18 percentage point lead roughly one month ahead of the Brexit referendum.
- The pound's higher by 0.9%, and the FTSE lower by 0.15%. Outperforming by a mile are the banks: Barclays (BCS +5.3%), RBS (RBS +6%), HSBC (HSBC +1.6%), Lloyds (LYG +4.6%).
Mon, May 16, 10:30 AM
- Part of its plan to cut $5B in annual cost by next year, HSBC is moving 840 information technology jobs out of the U.K. and into India and other lower-cost countries, the bank announces today. The transfer is take place before the end of next March.
- Earlier this month, the bank announced another 53 U.K. branch closures (out of an existing 924).
- Headcount at HSBC was 295K at the end of 2010. Once the sale of its Brazil business closes this year, it will have fallen to about 235K.
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, Apr. 18, 7:38 AM
- Amid a share price slump of nearly 40% over the past year, HSBC is considering launching a stock buyback, says CEO Stuart Gulliver. Speaking in Hong Kong at an informal shareholder meeting, Chairman Douglas Flint says the bank would seek approval for the buyback at its annual meeting in London on Friday.
- The bank has the money, as a slump in China has left it without opportunities to put to work $230B saved from cost-cutting elsewhere in Asia.
- Now read: HSBC's Facial Yield Is 8.5% But Real Yield Seems Much Lower (April 15)
Mon, Apr. 18, 3:47 AM
- HSBC CEO Stuart Gulliver is preparing to step down in two years, according to the Sunday Times, completing a boardroom shake-up at Britain's largest lender.
- His departure will come soon after the exit of Douglas Flint, the chairman, who will leave next year.
- Since 2011, Gulliver and Flint have announced more than 87K job cuts, exited more than 80 businesses and reduced the bank's sprawling global footprint to 71 countries and territories from 88.
Wed, Apr. 13, 9:16 AM
Mon, Apr. 4, 3:05 PM
- HSBC and its affiliates accounted for 2.3K of the 15.6K shell companies set up by Panama law firm Mossack Fonseca, according to the ICIJ.
- There's nothing wrong with shell companies, of course, but when they're used as vehicles for hiding assets, laundering money, or evading taxes, we've got a problem.
- So far, no bank has been accused of wrongdoing, but HSBC a couple of years back paid $1.9B and admitted to violating U.S. sanctions and anti-money laundering rules.
- Also among the hundreds of banks using Mossack Fonseca to create shell companies for clients were Royal Bank of Canada, UBS, and Credit Suisse (NYSE:CS).
- Now read: The United States Once Again The World's Banker (April 4)
Tue, Mar. 29, 5:34 AM
- Exane BNP Paribas drops HSBC (NYSE:HSBC) to Underperform from Neutral.
- Target price goes to 400p from 444p. Implied downside -8.5%.
- Exane says market conditions have remained difficult for longer than previously expected. Combined with the threat of tougher regulation, HSBC's dividend policy is probably no longer sustainable, firm says.
- Now read HSBC: Is The 8% Dividend Safe? »
Thu, Mar. 24, 12:07 PM
- "If you're not inside, you're outside," famously said Gordon Gekko.
- At the top of a secret list at Citigroup (NYSE:C) is the "Focus Five" - a group of hedge funds that bring in big dollars to the bank: Millennium, Citadel, Surveyor Capital, Point72, and Carlson Capital. These lucrative clients get the best service - top trade ideas, hours-long phone calls with analysts, intimate get-togethers with executives, bespoke trading models, and more.
- It's part of a new model on Wall Street, with banks backing off the "we-do-everything" model to cater to those select few who generate the most revenue. Players like Morgan Stanley (NYSE:MS) and HSBC are joining Citigroup in focusing on this 1% of the 1%.
- “It’s a rude awakening when you find out that research isn’t readily available," says Jeff Sica, who manages "only" about $1.5B.
- Smaller banks too. Stifel Financial (NYSE:SF) has a "Blackjack" list of its top 21 clients, through CEO Ron Kruszewski says it's not currently in use.
- In today's world, banks have little choice. Hamstrung by the new regulatory environment, barely visible rates, and a lame trading environment, using gates to research to encourage more business is a rare avenue of revenue growth.
- ETFs: IAI, KCE
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.
Mon, Feb. 15, 7:35 AM
- HSBC could move around 1,000 employees from London to Paris in the event that Britain votes to leave the European Union, the bank's chief executive told Sky News.
- "If the U.K. leaves the EU it could have a significant impact on our non-ring-fenced bank - our trading room, corporate banking and investment banking - although it would not have an impact on our holding company domicile," CEO Stuart Gulliver declared.
- The suggestion adds a further twist to the debate about Brexit just days before a crucial meeting between PM David Cameron and EU leaders.
- Previously: HSBC keeps headquarters in London (Feb. 15 2016)
Mon, Feb. 15, 3:41 AM
- HSBC has decided to keep its headquarters in Britain, rejecting the option of shifting its center of gravity back to its main profit-generating hub in Hong Kong following a 10-month review.
- The unanimous decision by the bank's board gives a boost to London's status as a global financial center, which has faced challenges from tougher regulation since the financial crisis.
- Analysts estimated the cost of moving out of London at $1.5B-$2.5B, a hefty bill to swallow unless HSBC was going to get clear tax and regulatory advantages.
- Previously: HSBC ready to move bankers to Paris over Brexit (Feb. 15 2016)
Thu, Feb. 11, 6:23 AM
- HSBC has dropped plans to freeze pay this year while remaining cautious on the outlook for its revenues.
- "We have listened to feedback and as a result decided to change the way these cost savings are to be achieved," CEO Stuart Gulliver said in a memo.
- The announcement comes days before HSBC's board meets to discuss whether the bank should move its headquarters to Hong Kong or stay in London.
- HSBC -3.7% premarket
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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