HSBC 02 (0005) (Jun 10 - Dec 24)

[behappyalways]

HSBC could be downgraded, Fitch warns
http://www.telegraph.co.uk/finance/news ... warns.html

[winston]

HSBC HOLDINGS Reportedly Rules Out Moving HQ to New York

The management of HSBC HOLDINGS (00005.HK) has ruled out moving its headquarters to New York, the United Kingdom's Sky News reported, quoting sources.

It was said that the bank was not likely to relocate its headquarters to the United States due to the country's dividend tax.

That may bring negative impacts to the individual shareholders in Hong Kong.

Hong Kong, France or Canada were still in HSBC's frame as the choices of headquarter location, replacing the current venue in London.

Source: AAStocks Financial News

[winston]

HSBC drops plan for 2016 pay freeze in speedy backpedal

by CAROLYN COHN AND RICHA NAIDU

Source: Reuters

http://www.reuters.com/article/us-hsbc- ... sinessNews

[winston]

HSBC: Q4 Profits Tumble, Maintain Dividend

By Shuli Ren

HSBC (5.Hong Kong/HSBC) reported fourth-quarter pre-tax loss of $858 million, well below the $1.95 billion profit expected by the street.

For the entire 2015, while revenue at HSBC is little changed at $57.8 billion, profit before tax fell 7% to $20.4 billion. Loan impairment charges jumped 17% to $3.7 billion.

Not all is bad. Return on equity at HSBC was little changed at 7.2% from 7.3% a year earlier. HSBC also booked $0.51 in dividends, a small rise from $0.50 in 2014, even though its earnings per share of $0.65 was smaller than $0.69 in 20144.

Tier-one ratio at HSBC was 11.9% as of the end of December, an improvement from 11.1% a year ago.

The quarterly earnings was announced during lunch break. HSBC closed the morning session up 1.5%.

Source: Barron's Asia

[winston]

HSBC Slashes China Targets As Worries Over Banks Mount

By Shuli Ren

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... nks-mount/

[winston]

not vested

HSBC target slashed by Morgan Stanley

by Daisy Wu

Morgan Stanley has cut the price target for HSBC (0005) to only HK$28, a record low similar to the level at which it made a rights issue in 2009 during the financial crisis.

The lender's shares slid 2.5 percent to HK$46.75 yesterday.

But the 40 percent discount to the current stock price will only be the case amid a harder landing in China, a still muted revenue growth and rising impairments. Price target derived from the base case was cut 12 percent from HK$51 to HK$45.

"We are cutting revenues for HSBC by US$1 billion [HK$7.8 billion] in 2016 our estimate of US$53 billion is now 7 percent below consensus estimates. This is driven by pressure on global banking and markets division in first quarter; rates remaining lower for longer and continued slowdown in revenues from Hong Kong we expect contraction in 2016."

Hong Kong, the key driver of revenue growth at HSBC, is expected to see its revenue drop 2 percent, or US$400 million, from a year earlier.

"The loan book looks likely to be flat in 2016 and, with competition for higher quality loans rising, we expect net interest margin to contract. Market linked fees will also be under pressure with stock market turnover down 30 percent year to date from 2015 average."

The local business posted a 7 percent compound annual growth rate in the past five years and a 5 percent increase in revenue last year.

Morgan Stanley also reduced estimates on earnings per share by 6 percent year on year from 2016 to 2018 in US dollar terms.

The high dividend payout is forecast to be at risk, amid contracted earnings power and increasing regulatory pressure on capital. "It will get tougher for the bank to keep paying out US$10 billion of dividends per annum."

Morgan Stanley estimated a "steady state" common equity tier 1 requirement for HSBC of 13.5 percent, rising from 11.9 percent last year.

Source: The Standard

[winston]

not vested

HSBC HOLDINGS Once Peaks at $52.65 on Better Than Expected 1Q Profit

HSBC HOLDINGS (00005.HK)'s first quarter reported PBT amounted to US$6.106 billion, beating market expectation.

The bank headed north after midday and peaked at $52.65. It last traded at $52.3, up 1%, on increasing volume to 17.11 million shares.

HSBC HOLDINGS announced that the first-quarter net profit was US$4.301 billion, down 18% yearly with basic earnings per common share of US$0.20 and first-quarter dividend of US$0.1 per share.

During the period, adjusted revenue dropped 4% from previous year to US$13.914 billion.

The bank's adjusted pre-tax profit was US$5.434 billion in the first quarter, down 18% yearly whereas reported pre-tax profit was US$6.106 billion, down 14%.

Source: AAStocks Financial News

[winston]

not vested

HSBC Rises: Q1 Profit Beat On Cost Control, But Revenue Remains Lackluster

HSBC’s profit before taxes fell 21% in the March quarter from a year ago to $5.4 billion, but it was 11% ahead of consensus.

By Shuli Ren

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... ackluster/

[winston]

vested

<Research Report>G Sachs Removes HSBC HOLDINGS from CL Buy List; Target Cut to $57

Goldman Sachs, in its report, said it removed HSBC HOLDINGS (00005.HK) from Asia Pacific Conviction Buy List after Brexit but kept it at Buy, and lowered the 12-month target price by 14% to $57 from $66.

The broker lowered the EPS forecast of the bank for 2016-18 by 3%/8%/9% to $3.62/$5/$5.59 to reflect delayed Fed rate rises and the translation impact of the recent GBP move; higher credit costs on Europe's weaker credit quality.

HSBC trades at record low valuations of 0.68x 2016E P/B against its underlying ROE estimate of around 7% this year.

Goldman Sachs continued to believe HSBC has ample capital to withstand a high dividend payout this year (>110%) and can hold its DPS at the current level.

The broker projected that the current share price of HSBC provides estimated dividend return of 8.5%/8.5%/8.7% for 2016/17/18.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>BofAML Reiterates HSBC HOLDINGS at Underperform with Target of $44.32

Bank of America Merrill Lynch, in its report, lowered the earnings forecast of HSBC HOLDINGS (00005.HK) in 2017 and 2018 by 7% and 7%, due to the delay in US rate hike and US$1.5 billion potential reduction in net interest income in the UK.

The broker also said the depreciation in sterling will still pose stress on the earnings performance, thus reiterated the rating Underperform, with target price lowered from $49.13 to $44.32.

Bank of America Merrill Lynch said HSBC may reduce dividend payout, from US$0.1 dividend per share in the past quarters to US$0.07 final dividend at the end of 2017.

The dividend per share will fall to US$0.37, and to US$0.3 by 2018, meaning the new yield in 2018 will be 4.8%.

Source: AAStocks Financial News