Wednesday, May 15, 7:54 AM
"You're getting cost cuts as a means of sustaining performance and that's not a great sign," says analyst Simon Maughan. "What HSBC (HBC) is showing you (job cuts earlier) is that there is very little growth in the banking industry (XLF) for years to come." CEO Stuart Gulliver notes HSBC has met its savings target, but hasn't met a goal to reduce costs as a percentage of revenue because revenue hasn't grown.
Wednesday, May 15, 5:11 AM
As expected, HSBC (HBC) announces 14K more jobs cuts as it tries to trim $3B in costs and increase shareholder returns. The challenging global economic environment may pinch revenues and make it difficult for the bank to meet its 12-15% ROE target for FY13, but management believes the target will be hit in FY14-FY16. CEO Stuart Gulliver says the bank intends to hike dividends and may repurchase stock to offset any dilution investors experience as a result of some shareholders taking their dividends in the form of additional shares. (Also: HBC's issues are "perfectly simple")
Monday, May 13, 10:58 AM
"The key issues for HSBC (HBC -1%) do appear perfectly simple," says Investec downgrading to Sell from Buy. "It is generating far more capital than it is able to deploy ... muted (or non-existent) loan growth coupled with continuing (margin) pressure translates into poor cost-efficiency metrics and inadequate returns."
Monday, May 13, 5:26 AM
HSBC (HBC) may announce more job cuts this week as CEO Stuart Gulliver is set to unveil further measures to enhance efficiency at the bank, where the workforce has already been reduced by some 66,000. HBC could do away with up to 20 more businesses on top of the nine segments already dispensed in order to keep costs down and eliminate redundancies at an operation some say is "notorious" for its "levels of bureaucracy." An announcement could come as early as Wednesday, MarketWatch says, citing The Independent.
Tuesday, May 7, 8:02 AM
HSBC (HBC) gains 2.1% premarket as its cost-cutting regime pays off, with core earnings up 34% (to $7.6B) from a year ago. $4B in costs has been eliminated since 2011, and the bank believes there's another $1B to go. The offloading of employees and businesses has boosted the capital ratio as well - it rose to 12.7% this quarter, safely above the 9.5% it needs under Basel III.
Tuesday, May 7, 4:45 AMHSBC (HBC): Q1 pretax profit of $8.43B beats by $330M. Underlying pretax profit +34% Y/Y to $7.6B. Core tier 1 capital rises to 12.7% from 12.3% in Q4.
Tuesday, April 23, 8:01 AM
HSBC (HBC) adds to its cost-cutting drive, with the latest move set to cost 1,149 U.K. jobs (total U.K. employment is 47K). These cuts will mostly come from wealth management. CEO Stuart Gulliver has slashed about 34.5K from the global payroll since taking over in early 2011.
Monday, April 22, 12:19 PM
New regulations here and across the pond will eliminate $17B of trading revenue from the global banks, says Deutsche Bank - about 9% of total sales last year. The costs will be onerous enough, says Deutsche, as to maybe force the departure from FICC (bonds, commodities, currencies) trading of any firm with less than 6% market share. At risk: HBC, RBS, CS, MS, SCGLY.PK. UBS has already exited.
Wednesday, April 3, 7:41 AM
HSBC (HBC) cuts more non-core assets, announcing the sale of its Singapore insurance business to AXA (AXAHY.PK) in a deal valued at about $19.3M. The move is a small part of a plan to save $3.5B in expenses and reduce headcount by 30K.
Thursday, March 28, 9:21 AM
The "generous" capital ratio imposed by the Bank of England - 7% by 2013's end vs. 10% in 2019 by Basel - may allow the country's lenders to avoid dilutive share shales. "There is no trigger for any fresh equity issuance," says analyst Ian Gordon, expecting "very limited" impact on existing capital plans. RBS -0.7%, LYG +0.7%, BCS +1.8%, HBC +1% premarket.
Wednesday, March 27, 6:09 AM
Various markets dive after the BOE spells out the continued massive risks to British banks. Half of the £25B that banks must raise this year has been factored into their capital-raising plans. All in all, major banks and building societies face a £50B reduction in their regulatory capital, although HSBC (HBC) doesn't face a shortfall. FTSE 100 -0.1%, S&P futures -0.2%. (PR)
1 Comment[Financials, Top Stories, On the Move, Global & FX]
Wednesday, March 27, 5:48 AM
The Bank of England says U.K. banks must raise another £25B by the year-end to protect themselves against potential losses. The losses that the sector faces over three years on high-risk loans exceeds existing provisions by £30B; banks also face £10B of additional fines and costs for misconduct. (PR)
5 Comments[Breaking News, Global & FX, Financials]
Monday, March 18, 3:36 AM
HSBC (HBC) could reportedly axe up to 5,000 or more jobs as part of the desire of CEO Stuart Gulliver to lower expenses by another $1B in 2013. The cuts would add to the sharp staff and cost reductions the bank has already implemented in the past couple of years, and are set to be unveiled at an investor day in May. While the bank has slashed its outgoings, it's still far away from meeting its cost-income ratio targets.
1 Comment[Financials, Top Stories]
Wednesday, March 13, 5:25 PM
Moving on from Libor, the CFTC is reportedly having an informal look at whether the London fix for gold and silver is open to manipulation. Gold prices are set twice daily by five banks via teleconference (silver by 3), with the fixings then used worldwide as benchmarks for any number of transactions. The banks involved: BCS, DB, HBC, BNS, SCGLY.PK.
3 Comments[Commodities, Financials]
Monday, March 11, 6:01 AM
The U.K.'s Parliamentary Commission on Banking Standards has called for the government to assume the power to mete out collective punishment on the country's banks, saying that it should consider breaking them all up into retail and investment-bank activities if even just one of them breaches new ring-fencing rules designed to avoid another bailout. 2 Comments[Financials]