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

[winston]

not vested

<Research Report>M Stanley: HSBC HOLDINGS 1Q Adjusted Profit Tops Estimates; Expects Market to Revise Up Forecast

HSBC HOLDINGS (00005.HK) announced at midday its first quarter profit.

Morgan Stanley, in its report, said that the bank's quarterly adjusted profit of US$5.94 billion was nearly 12% above its estimates.

This was mainly due to decent wealth management business. Even though the bank's costs were 2% higher, its impairments were at a low level.

CET1 ratio was improved to 14.3% during the period from that of 13.6% in 4Q16, higher than the estimated 13.7%.

The broker believes HSBC HOLDINGS share price to fare well and the market will also revise up the EPS forecast for the stock.

The rating was maintained at Overweight with a target price of $70.

Source: AAStocks Financial News

[behappyalways]

Calling All Borrowers: HSBC Needs You
https://www.bloomberg.com/gadfly/articl ... -needs-you

[winston]

not vested

HSBC roars to two-year high

by Carrie Chen

HSBC Holdings (0005) soared 6.3 percent to a two-year high of HK$72.80 yesterday, after Morgan Stanley raised its target price to HK$84 and the bank's North American unit passed the Federal Reserve's stress test, boosting the Hong Kong benchmark to a rebound, while the yuan rose to a seven-month high.

Shares of HSBC once rose to HK$73. Turnover reached HK$8.52 billion, 11 percent of the total turnover on the main board.

The stress test revealed that the capital ratio of HSBC's North American unit has reached 17.9 percent, the highest among all banks in the region.

Morgan Stanley upgraded HSBC to "overweight" with target price rising to HK$84 from HK$70, saying HSBC would generate US$45 billion (HK$350 billion) of surplus by 2019 as analysts saw capital return rising.

The US investment bank expects the price to reach HK$93 in a bullish scenario.

"We expect the narrative on HSBC to flip from prior concerns on the dividend to a debate on how to deploy excess capital," said Morgan Stanley.

HSBC is expected to maintain an annual dividend payout of 51 US cents each year till 2019, while the buyback scale is expected to reach from US$12 billion to US$14 billion.

Even after these large payouts, remaining surplus by December 2019 is still expected to be US$14 billion.

"Our work suggests HSBC will be in the top quartile of EU banks for cash returns over the next three years," said Morgan Stanley.

Also from 2017 to 2019, for HSBC's businesses in Hong Kong, the bank may record a compound annual growth rate of 9 percent in revenue due to rising interest rates.

It also believed that the fears over Brexit have been overplayed.

HSBC helped drive up the Hang Seng Index to 25,965.42 yesterday, up 281.92 points, ending its three-day drop resulting from the slumping small-cap shares.

Source: The Standard

http://www.thestandard.com.hk/section-n ... ?id=184587

[winston]

not vested

Get ready to dive into HSBC on the dip

HSBC Holdings (0005) rose 1.2 percent to HK$73.55 yesterday, after Morgan Stanley raised its target price for the lender to HK$84 with an "overweight" call. HSBC's North American unit passed the Federal Reserve's stress test.

It is tipped to keep a dividend payout of 51 US cents every year until 2019, while its shares buy-back may reach US$12 billion to US$14 billion.

AIA chief executive and president Mark Tucker will become new HSBC chairman.

Dr Check suggested buying HSBC two to three months ago when it stood at HK$62. Its profit may improve further on a bigger interest rate differential, cost cutting and a new chairman.

Its dividend yield is not 6 percent anymore, but 5 percent is not bad. Any correction is an opportunity to buy more HSBC shares.

Source: Dr Check, The Standard

[behappyalways]

HSBC tops earnings estimates, announces $2 billion share buyback
https://www.cnbc.com/2017/07/30/hsbc-re ... nings.html

[winston]

not vested

Blue chip global banking giant HSBC Holdings bought back 4.04 million shares (via the London Stock Exchange) from August 1 to 2 at an average of HK$79.02 each.

The group previously acquired 122.6 million shares from February 22 to April 12 at HK$62.26 to HK$65.81 each or an average of HK$63.33 each.

Prior to the buybacks this year, the company acquired 325.27 million shares from August to December 2016 at HK$52.92 to HK$66.50 each or an average of HK$59.63 each. The stock closed at HK$78.50 on Friday.

Significant points:

HSBC has embarked on another buyback programme with plans to repurchase US$2 billion (HK$15.6 billion) worth of shares up until the end of 2017.

The recent buybacks were made after the stock rose by as much as 27 per cent from its acquisition prices from February to April this year.

The stock appreciated during HSBC’s two previous buyback sprees. The counter rose from HK$62.26 to HK$65.81 from February to April this year and HK$52.92 to HK$66.50 from August to December 2016.

HSBC will likely buy back daily from August to December this year. Based on its last buyback spree, the group bought shares on every day from February 22 to April 12 with the buybacks accounting for 16 per cent of the stock’s trading volume.

The repurchases since August 2016 are the group’s first buybacks based on filings on the exchange since 1992.

Source: SCMP

[winston]

not vested

<Blue Chip Results>HSBC 3Q Reported PBT Slips 18% to US$4.8B, Missing

HSBC HOLDINGS (00005.HK)'s 3Q19 reported profit before tax fell 18.3% yearly to US$4.837 billion, short of the brokers' forecast as compiled by our reporters at US$4.997-5.392 billion.

Profit attributable to ordinary shareholders of the parent company sank 23.8% to US$2.971 billion. Basic EPS equaled US$0.15.

For 1-3Q19, reported profit before tax gained 3.7% yearly to US$17.244 billion.

Source: AAStocks Financial News

[winston]

vested

Brokers' Latest Views, TPs on HSBC HOLDINGS (00005.HK) (Table)

Brokers│Ratings│TPs (HK$)
Jefferies│Buy│GBP7.9 (About HK$79.79)
Goldman Sachs│Buy (Conviction Buy list)│75
BofA Securities│Buy│GBX630 (About HK$63.63)
JPMorgan│Neutral│63
UBS│Neutral│GBX530 (About HK$53.53)
Morgan Stanley│Underweight│52
Citigroup│Sell│GBP5.1 (About HK$51.51)
------------------------------

Brokers│Views
Jefferies│ROE to Hit 10-12% on RWA cut
Goldman Sachs│Capital restructuring right; 2022 profitability guidance slightly beats
BofA Securities│Operation more flexible on RWA cut
JPMorgan│Shr buyback halt may disappoint mkt
UBS│Adjusted earnings US$4.4B, beats; near-term view cautious
Morgan Stanley│4Q19 earnings above M Stanley, mkt forecasts; cost-cut strategy appropriate
Citigroup│2022E ROE at 9%, RoTE at 11%

Source: AAStocks Financial News

[behappyalways]

東張西望 | 匯豐小股民哀歌 | 生活費 | 派息 | 股票
https://www.youtube.com/watch?v=5nSLS3cL8_o

[winston]

HSBC Q1 profit halves as it beefs up bad loan provisions due to the pandemic

* Q1 pretax profit at $3.2 bln versus $3.7 bln estimate
* Expected credit impairment charges increased to $3 bln
* Takes significant charge due to Singapore corporate exposure

By Sumeet Chatterjee and Lawrence White HONG KONG/LONDON, April 28 (Reuters) -

HSBC Holdings PLC's on Tuesday warned of more earnings pain to come after first-quarter profit nearly halved as it boosted provisions against bad loans expected to rise amid the coronavirus pandemic.

HSBC also said the pandemic would mean sustained pressure on its revenues as customer activity declined and lower central bank interest rates squeezed margins.

Europe's biggest bank by assets added a rise in fraudulent activity could lead to "potentially significant" credit losses.

Profit before tax came in at $3.2 billion for January-March,down from $6.2 billion a year ago and below an average analyst forecast of $3.7 billion compiled by the bank.

The bank increased its expected credit impairment charges bya hefty $2.4 billion to $3 billion due to the impact of COVID-19 and weakening oil prices as well as "a significant charge related to a corporate exposure in Singapore", it said.

HSBC did not name the Singaporean company, but the lender is among leading creditors to Singapore oil trader Hin Leong Trading (Pte) Ltd, which sources have said is undercourt-appointed supervision to restructure billions of dollars in debt following the collapse of the oil price. Hin Leong has declined to comment on its debt restructuring.

HSBC Chief Financial Officer Ewen Stevenson told Reuters the bank expected a lower credit loss rate for rest of the year compared to the first quarter.

HSBC's sharply higher loan loss provisions follows similar moves by U.S. lenders this month, as banks brace for the impact of a global recession on their borrowers.

The top four U.S. banks set aside $14.2 billion in loan loss provisions, with sales and trading revenue from investment banking the only silver lining as frenzied markets worldwide drove up commissions.

Source: Reuters