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
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%).
Wed, Apr. 13, 9:16 AM
Jul. 8, 2015, 8:40 AM
- Unveiling the summer budget, U.K. Chancellor Osborne says the government will gradually phase out the bank levy over the next six years, replacing it with a new 8% surcharge on profits. The difference? The new charge applies only to U.K. assets, while the bank levy applied to global balance sheets.
- Osborne may have made the change in response to threats from banks to leave the U.K. because of the levy (which Osborne increased 50% in the last budget).
- The FTSE 350 banking index is higher by 1.6% following the news. Watching with interest: HSBC, RBS, Barclays (NYSE:BCS), Lloyds (NYSE:LYG), Standard Chartered (OTCPK:SCBFF).
Apr. 27, 2015, 7:14 AM
- As HSBC mulls moving its HQ out of the U.K., it is also considering a $20B spinoff of its British retail operation, according to The Sunday Times. The spin, say insiders, could speed up the bank's exit from the U.K.
- The board feels its hand is being forced by regulators' "ring-fencing" scheme, which forces lenders to put retail operations into separate companies with independent boards and chairmen.
- "If you can't control the retail arm, why would you hold shares in it," says one source. "You can control a commercial link, but there is no point."
- Shares +2.7% premarket
- Previously: HSBC launches review on whether to move headquarters (April 24)
Apr. 20, 2015, 12:04 PM
- "The ROE outlook for the European banks remains poor in our view," says Goldman. "Margins, impacted by monetary policy, are declining; the standalone cost-cutting opportunity has diminished; and provisioning leverage has played out."
- To boost returns, Goldman sees strategic, rather than operational improvements as required. Among the big players, HSBC (HSBC +1.7%) has the most to gain from strategic streamlining, says the team, adding the stock to its Conviction List.
- Pulled from the List to make room for HSBC is BBVA (BBVA -0.7%), whose rating has been downgraded to Neutral. Also part of the ratings changes, Bank of Ireland (OTCPK:IREBY -1.8%) is boosted to Neutral from Sell.
- Previously: HSBC higher after Goldman touch (April 20)
Apr. 20, 2015, 9:52 AM
- HSBC (HSBC +1.6%) is an outlier to the upside among the U.K. banks today after Goldman Sachs puts the previously Buy-rated stock on its Conviction Buy list.
Feb. 23, 2015, 9:14 AM
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. 26, 2014, 6:32 PM
Sep. 19, 2014, 12:25 PM
- A check of European closing prices finds the euphoric early reaction to the "No" vote from Scotland mostly faded by day's end. The Stoxx 50 (NYSEARCA:FEZ) closed just 0.2% higher, with the U.K.'s FTSE 100 (NYSEARCA:EWU) gaining 0.3%.
- Looking at U.K. bank ADRs: RBS (RBS +1.2%), Barclays (BCS -0.9%), Lloyds (LYG +0.5%), HSBC (HSBC -0.2%).
- Dealing with its own separatist movement, Spain (NYSEARCA:EWP) managed just a 0.1% gain.
- Previously: Euro shares lean green on "No" vote
- Previously: Might Catalonia secession fears ebb following Scotland vote?
Sep. 9, 2014, 7:30 AM
Sep. 8, 2014, 7:59 AM
- "A wall of money has gone out of the banks and into fines and redress," says KPMG's U.K. head of banking Richard McCarthy. "Hopefully the most egregious things have come out and hopefully the banks will be able to move forward."
- Over the last five years, according to KPMG, the U.K.'s largest banks - BCS, RBS, HSBC, LYG, OTCPK:SCBFF - have cut consumer and business lending by $595B, or 14%.
- "There is light at the end of the tunnel," says McCarthy, with the report noting redress costs and fines fell 44% to £2.4B in 2014's first six months from a year ago.
- Meanwhile, the banks are sharply lower premarket over Scottish independence jitters. BCS -3.5%, RBS -4.1%, LYG -4.9%, HSBC -2%.
- Previously: Cable tumbles over Scotland referendum
Aug. 4, 2014, 7:50 AM
- Pretax earnings of $12.3B fell 12% from a year ago and came in shy of analyst estimates of $12.9B. Revenue of $31.2B fell 9.3%.
- Underlying operating expenses of $18.2B gained 2%, bringing costs as a proportion of revenue of 58.6% from 53.5%, higher than the bank's mid-50s target.
- The global banking and markets unit saw revenue of $5.03B, off 12%, "respectable in a broader industry context," says Investec's Ian Gordon.
- Expecting improvement in revenue in 2015," CEO Stuart Gulliver says gains should be lagged six months after rates begin to turn up.
- HSBC +2.2% premarket
Jul. 25, 2014, 8:03 AM
Jul. 10, 2014, 9:44 AM
- When the going gets tough, the tough suspend trading. Portugal has halted trade in Banco Espirito Santo with the stock off 17.2% on the session and 54% over the last month. At issue are financial troubles for the bank's privately-owned holding company, Espirito Santo International. Its accounts are currently under review by an external auditor who has identified irregularities and concluded the company "is in serious financial condition."
- Santander (SAN -5.8%), UBS (UBS -1.8%), Deutsche Bank (DB -3.1%), Bank of Ireland (IRE -5.6%), Credit Suisse (CS -2.8%), ING (ING -3.2%), BBVA (BBVA -3.1%). U.K. banks: Barclays (BCS -3.8%), RBS (RBS -1.9%), HSBC (HSBC -1.9%), Lloyds (LYG -2%).
- European financial sector ETF: EUFN -2.4%.
Mar. 26, 2014, 4:04 PM
- The Fed approves 25 out of 30 capital return plans from the nation's largest lenders, but rejects those from Citigroup (C), RBS Citizens, HSBC North America, Santander Holdings (SAN), and, of course, Zions Bancorp (ZION).
- Citi -3.3%, RBS -0.2%, HSBC -1.4%, Santander -1.5%, Zions -1.3% in after-hours trade.
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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