HSBC Holdings PLCNYSE
HSBC Has A Lot Of Work Left To Do
Stephen Simpson, CFA
Stephen Simpson, CFA
Wed, Nov. 30, 2:28 AM
- After failing multiple hurdles in the Bank of England's toughest-ever stress test, Royal Bank of Scotland (NYSE:RBS) has bolstered its capital plan.
- Some "capital inadequacies" were revealed at two other banks, Barclays (NYSE:BCS) and Standard Chartered (OTCPK:SCBFF), though neither was required to submit a revised plan.
- The test also covered HSBC, Lloyds (NYSE:LYG), Nationwide and Banco Santander UK (NYSE:SAN).
Mon, Nov. 21, 5:53 AM
- U.S. lenders appear to present a bigger risk to the financial system than last year.
- Citigroup (NYSE:C), BofA (NYSE:BAC) and Wells Fargo (NYSE:WFC) all face higher capital surcharges after they rose in the Financial Stability Board's latest ranking of the most systemically important banks in the world, while HSBC, Barclays (NYSE:BCS) and Morgan Stanley (NYSE:MS) saw their buffer levels fall.
Wed, Nov. 16, 7:36 AM
Wed, Nov. 16, 3:30 AM
- EU antitrust regulators are set to fine HSBC, JPMorgan (NYSE:JPM) and Credit Agricole (OTCPK:CRARY) by the end of the year for rigging financial benchmarks linked to the euro, Reuters reports.
- Charges were levied in May 2014 against the three banks, which denied wrongdoing.
- Deutsche Bank, RBS and Societe Generale admitted guilt in December 2013, while Barclays avoided a fine because it alerted the European Commission.
Fri, Nov. 11, 8:26 AM
- "Some Democrat appointments at the DOJ have only a few weeks left before they are replaced," says Barclays, laying out a bullish case for European lenders who are likely to face smaller mortgage-related settlements.
- Chief among them is Deutsche Bank (NYSE:DB), which has been staggered by reports that Obama's DOJ wants $14B to walk away.
- Also in talks with Justice are Credit Suisse (NYSE:CS) and RBS. Under investigation, but not necessarily in settlement discussions yet are Barclays (NYSE:BCS), UBS, and HSBC.
Wed, Nov. 9, 4:19 AM
- Donald Trump's victory throws into question the core assumption the Fed will raise interest rates soon and follow with further gradual hikes over coming years.
- Banks are struggling on the news. Fed Funds futures are now pricing in less than a 50% chance of a December move and the ECB is likely to interpret the uncertainty with stimulus and lower rates for longer.
- Premarket movement: GS -8.3%, WFC -3.5%, C -3.2%, BAC -2.4%, CS -2.3% JPM -2.2%, LYG -1.8%, HSBC -1.7%, USB -1.4%, BCS -1.5%, ING -0.6%, MS, DB, RBS, UBS
Mon, Nov. 7, 9:09 AM
Mon, Nov. 7, 4:45 AM
- HSBC +3.4% premarket as investors shrugged off an 86% drop in pretax profit following a big loss on the sale of its Brazilian business.
- Nissan Motor (OTCPK:NSANY) cut its first-half net income forecast as a strong yen offset rising sales, but maintained its full-year dividend plan.
- Softbank's (OTCPK:SFTBY) second quarter profit rose nearly 7%, boosted by a strong performance in its domestic telecoms division.
Thu, Nov. 3, 10:35 AM
- The U.K. High Court today threw a wrench in the government's hope for a "hard Brexit," ruling Parliament must approve the invocation of Article 50. In addition, fears of earnings-crushing negative rates are brushed aside as the Bank of England shifts its focus from growth worry to the risk of too-high inflation.
- The advance for the banks today is especially notable given the 0.5% decline in the FTSE 100.
- Royal Bank of Scotland (RBS +6.5%), Barclays (BCS +4.1%), HSBC (HSBC +0.6%), Lloyds (LYG +3.8%), Standard Chartered (OTCPK:SCBFF +1.1%)
Wed, Oct. 19, 8:37 AM
Mon, Sep. 26, 2:30 AM
- Kicking off a search for future executives, HSBC has hired recruitment firm Russell Reynolds to assess the strength of its most promising managers and benchmark them against the best rivals externally, FT reports.
- The move comes amid mounting speculation about the likely replacements for HSBC's current chairman Douglas Flint and CEO Stuart Gulliver, who are expected to hand over the reins next year and in 2018, respectively.
Fri, Sep. 23, 6:41 AM
- HSBC is looking to release billions of dollars of capital tied up in the U.S. without upsetting the country's politicians and regulators, Reuters reports.
- The bank, which has been on the radar after breaching anti-money laundering rules, has more than $20B of American capital earning a paltry 1% return, of which up to half could be returned to the holding company via asset sales, according to analysts and investors.
Mon, Sep. 12, 6:32 AM
- Spencer Lake is set to leave HSBC after an "instrumental" 10-year stint culminating in a role as vice-chairman of global banking and markets.
- Earlier this year, HSBC hired senior Goldman Sachs banker Matthew Westerman to become co-head of banking. The business was subsequently reorganized, with Lake becoming vice-chair of GBM.
- HSBC -2% premarket
Wed, Sep. 7, 3:24 AM
- U.S. prosecutors are considering criminal charges against HSBC Holdings (NYSE:HSBC), upending an earlier deal that let the bank avoid prosecution.
- The new investigation could lead to a step that has often been threatened but rarely taken: prosecutors tearing up a deferred-prosecution agreement if a company fails to comply with the reform plan laid out by the Justice Department.
- HSBC paid a record $1.9B in 2012, and agreed to cooperate with Justice Department probes for five years, thereby avoiding criminal charges which could damage its reputation more than a fine.
Mon, Sep. 5, 10:22 AM
- HSBC business customers can now open new accounts by taking a selfie to verify their identity.
- A mobile app uses facial recognition software to take a headshot of a customer, which is then compared against a photo ID, such as a driver's license or passport.
- The change is intended to simplify and speed up the process of opening a new account and reflects the increasing tendency of customers to open accounts online.
Wed, Aug. 31, 5:40 AM
- HSBC's (NYSE:HSBC) dividend is safe this year and next, Deutsche Bank says in a note.
- Firm notes, however, that HSBC is overdistributing capital relative to earnings; needs to grow into its dividend burden.
- Cash released from underperforming businesses (e.g. Brazil) is is plugging the dividend gap this year,
- Half of HSBC’s capital is delivering ROE of just 1-2%. Causes are mostly structural, not cyclical. Capital allocation strategy needs to change.
- Sees potential to free up more of the ~$33B in capital allocated to operations in North America that has ROE of just 1-2%.