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HSBC Holdings PLC (HSBC)

  • Nov. 29, 2012, 6:34 AM
    The Bank of England's Financial Policy Committee accuses British banks of possibly misleading investors about the health of their finances. In its semi-annual report, the panel says banks may be overstating capital levels by not recognizing potential losses on loans and playing down risks. Banks may also not have made enough provisions to cover the costs of compensating customers for the mis-selling of certain financial products.
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  • Nov. 28, 2012, 3:56 AM
    The Fed is reportedly considering forcing foreign banks to combine their U.S. operations into American holding companies, which would require the units to meet minimum capital standards regardless of the resources of the parent firms. The move could increase costs, force foreign banks to inject billions of dollars into their U.S. ops, limit the movement of capital and even hurt lending.
  • Nov. 27, 2012, 7:54 AM
    Royal Bank of Scotland (RBS) is upgraded to Buy at UBS, which believes Mark Carney's appointment to head the Bank of England signals a more conciliatory regulatory environment for U.K. banks. Gerard Lane of Shore Capital disagrees: "He strikes us as a hardliner." Citigroup notes average bank core tier 1 capital ratios are lower in Canada than in the U.K.
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  • Nov. 19, 2012, 2:21 AM
    HSBC (HBC) is in talks to sell its 15.6% holding in Ping An Insurance, China's second-largest insurer, as the U.K. bank continues its strategy of selling non-core assets. Chinese analyst Wilson Li says HSBC can reinvest the proceeds in its organic business in China and generate a better return than the Ping An stake, which is worth $9.19B.
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  • Nov. 9, 2012, 4:25 AM
    HSBC (HBC) is the target of yet another probe into its corporate controls, with the Daily Telegraph reporting that the U.K.'s HM Revenue & Customs is investigating the bank's offshore accounts in the English Channel island of Jersey held by thousands of British and other citizens. These include a drug dealer, a gun runner, three bankers facing fraud allegations, and suspected tax evaders.
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  • Nov. 5, 2012, 4:11 AM
    More on HSBC (HBC) Q3: earnings aided by a sharp drop in bad debts, as well as by growth in Global Banking and Markets, mainly in Rates and Credit as eurozone conditions stabilized relative to last year, and in Commercial Banking, where net interest income rose. Generates cost savings of $500M, taking total annualized savings to $3.1B. Remains confident in its outlook for growth in China. Shares -1.45% in London. (PR)
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  • Nov. 5, 2012, 4:02 AM
    HSBC (HBC): Q3 pretax profit +125% to $5B vs estimates of $5.6B. Underlying revenue +20% to $16.13B. Takes provision of $800M to cover a potential U.S. fine for problems with its anti-money laundering controls - adding to $700M set aside in July - and $353M charge for mis-selling in the U.K., mainly of payment protection insurance. (PR)
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  • Nov. 2, 2012, 5:32 AM
    Citigroup (C), Deutsche Bank (DB), HSBC (HBC) and JPMorgan (JPM) will have to hold an extra 2.5% of Tier 1 Capital on top of the 7% minimum required under Basel III rules, regulators said yesterday. Barclays (BCS) and BNP Paribas will need an extra 2%, while eight banks, including BofA (BAC) and Goldman Sachs (GS), will need 1.5%. Overall, 28 banks are considered "global systemically important" and have to hold extra capital. Lloyds (LYG) has dropped off the list but BBVA (BBVA) and StanChart have joined it.
  • Oct. 22, 2012, 6:24 AM
    No more light-touch regulation in the U.K.: the Financial Services Authority is forcing banks to hold £150B of "Pillar 2 buffer" capital on top of the £186B needed under Basel rules. The additional amount is much higher than the £20B required prior to the financial crisis. The FSA's Andrew Bailey tells the FT that the extra cushion allows regulators to experiment with ideas to encourage lending.
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  • Oct. 12, 2012, 7:44 AM
    The EU could delay the phasing in of tough new Basel rules on banks by a year from the international start date of January 1, 2013, Bloomberg reports. Banks have said that the date is "wholly unreasonable" given that the EU still hasn't finalized how it will implement the measures.
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  • Sep. 21, 2012, 8:26 AM
    Despite the government's best efforts at pushing them to boost lending, flush U.K. banks find it easier (and less risky) to profit by paying a premium to buy back their bonds. Why make a loan and be forced to reserve precious capital against it when you can be assured of a gain by cutting interest expense?
  • Sep. 13, 2012, 8:31 AM
    Deutsche Bank (DB), Santander (SAN), ING and HSBC (HBC) are among the European banks still doing business with Iran despite some being forced to pay huge fines because of those ties, a WSJ review shows. Banks continue to handle billions of euros in long-term contracts, although several say they're not going after new business but are trying to wind down existing relationships.
  • Sep. 11, 2012, 4:20 AM
    Moody's remains negative on U.K. banks, due to the travails of the British and eurozone economies. The agency says the likes of RBS (RBS), Lloyds (LYG) and Barclays (BCS) could also be hit by high regulatory costs following various scandals and write-downs on their exposure to foreign real estate. (PR)
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  • Sep. 3, 2012, 4:09 AM
    A group of RBS (RBS) shareholders plan to launch a £3.3B lawsuit against the bank, ex-CEO Fred Goodwin, and other former execs, the Times reports. The group allege that RBS misled investors about its frailty at the time of a £12B rights issue in 2008, since when shares have plummeted. The group is backed by 91 institutional investors, including HSBC (HBC) and Deutsche Bank (DB), but needs to secure £12M-£15M in case of defeat.
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  • Aug. 24, 2012, 4:23 AM
    HSBC (HBC) is in talks with U.S. authorities about settling allegations that it broke U.S. law through its dealings with various rogue nations and other sins, Bloomberg reports. HSBC has already set aside $700M of provisions for any U.S. fines. The report follows S&P yesterday lowering its outlook on HSBC to negative from stable, and asking whether HSBC is too big to be managed.
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  • Aug. 22, 2012, 10:45 AM
    Up next on the scandal agenda for U.K. banks are swap products marketed aggressively to average-Joe borrowers from 2005-08. Rate swaps were designed to protect against rising rates. Trouble is, rates plummeted, forcing heavy charges onto the clients who signed up. Thus far, the banks have provisioned only small sums for possible legal remedies.
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Company Description
HSBC Holdings PLC provides banking and financial services through four segments namely Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets and Global Private Banking.