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

[winston]

not vested

<Research Report>Ratings, TPs on HSBC HOLDINGS (00005.HK) (Table)

Ahead of the 3Q20 results release by HSBC next Tuesday (27 October), our reporters complied three brokers' forecast.

The reported profit before tax during the quarter was expected to range US$1.765-2.419 billion, down 50%-64% yearly;

The adjusted profit before tax was expected to range US$2.438-2.919 billion, down 45.4%-54.4% yearly.

Brokers│Ratings│TPs (HK$)

BNP Paribas│Buy│57
Goldman Sachs│Buy│50
Jefferies│Neutral│HK$40.21 (GBX400)
DBS│Hold│36.7
Macquarie│Underperform│36
BofA Securities│Neutral│35.42
Citigroup│Neutral│34.6
JPMorgan│Neutral│33.5
Credit Suisse│Underperform│HK$33.17 (GBX330)
Morgan Stanley│Equalweight│33
UBS│Neutral│31
Haitong International│Underperform│30

Source: AAStocks Financial News

[winston]

not vested

<Research Report>G Sachs Expects HSBC HOLDINGS (00005.HK) 3Q NP to Soar 3.5x QoQ, PBT to Leap 1.2x QoQ

Goldman Sachs estimated HSBC HOLDINGS (00005.HK)'s 3Q20 net income at US$869 million, up 3.5 times QoQ but down 71% YoY.

Pre-provision profit was modeled at US$3.609 billion, down 18% QoQ and 31% YoY.

The bank's 3Q PBT will likely hit US$2.419 billion, up 1.2 times QoQ but down 50% YoY.

Source: AAStocks Financial News

[winston]

Ratings, TPs on HSBC HOLDINGS (00005.HK) (Table) (Update)

Ahead of the 3Q20 results release by HSBC next Tuesday (27 October), our reporters complied three brokers' forecast.

The reported profit before tax during the quarter was expected to range US$1.765-2.419 billion, down 50%-64% yearly. The median forecast was US$1.9485 billion, down 60% yearly.

Brokers│Ratings│TPs (HK$)

Related NewsRatings, TPs on HSBC HOLDINGS (00005.HK) (Table)

BNP Paribas│Buy│57
Goldman Sachs│Buy│50
Jefferies│Neutral│HK$40.21 (GBX400)
DBS│Hold│36.7
Macquarie│Underperform│36
BofA Securities│Neutral│35.42
Citigroup│Neutral│34.6
JPMorgan│Neutral│33.5
Credit Suisse│Underperform│HK$33.17 (GBX330)
Morgan Stanley│Equalweight│33
UBS│Neutral│31
Haitong International│Underperform│30

Source: AAStocks Financial News

[winston]

not vested

HSBC 3Q Provision Surprisingly Shrinks; Reported PBT at US$3.074B, Well Beyond Forecast

HSBC HOLDINGS (00005.HK) announced that the third-quarter reported PBT slid 36.4% yearly to US$3.074 billion, well beyond the street forecast US$1.765-2.419 billion as complied by our reporters.

Dividend History
Announce Date Event Particular
2020/08/03 Interim 2 No Dividend
2020/04/28 Interim No Dividend
2020/02/18 Interim 4 No Dividend
2019/10/02 Interim 3 D:USD 0.1000

During the period, reported expected credit losses and other credit impairment charges was US$785 million, lower than US$883 million a year ago and US$1.638-2.458 billion in consensus.

Source: AAStocks Financial News

[winston]

not vested

Brighter picture from HSBC with quarterly profits

by Kevin Xu

HSBC (0005) reported a better-than-expected third-quarter profit and said it would pay "a conservative dividend if circumstances allow.''

Pretax profit dropped 36 percent year-on-year to US$3.1 billion (HK$24.18 billion) in the third quarter, beating a consensus estimate of US$2.07 billion.

HSBC, which in common with other British lenders stopped paying dividends earlier this year at the request of regulators, said it would communicate a revised dividend policy in February.

"When we start paying distributions again, we'll start conservatively and build from there," chief financial officer Ewen Stevenson said in a conference call.

Stevenson said it would not be a "token" amount when asked about the likely size of any payout.

The British lender said the expected credit losses charge for 2020 is trending toward the lower end of the US$8 billion to US$13 billion range.

"There are encouraging signs that the credit assumptions we have got are holding up, the government support we are seeing for the corporate sector has bought them time," Stevenson told investors on the conference call.

Chief executive Noel Quinn said: "A decision on whether to pay a dividend for the 2020 financial year will depend on economic conditions in early 2021, and be subject to regulatory consultation. We will seek to pay a conservative dividend if circumstances allow."

HSBC plans to reduce annual costs to below US$31 billion by 2022, a more ambitious target than it set out in February and well below the operating expenses of US$42.3 billion it reported in 2019.

Revenue fell by 11 percent to US$11.9 billion from a year before.

Basic earnings per share were US$0.07. Net interest income fell by 15 percent to US$6.5 billion.

Expected credit losses and other credit impairment charges fell by US$100 million to US$800 million.

Source: The Standard

https://www.thestandard.com.hk/section- ... ly-profits

[winston]

not vested

HSBC to revamp business model as lower interest rates hit profit

by Sumeet Chatterjee & Lawrence White

HSBC Holdings plc is seeking to flip its main source of income from interest rate to fee-based businesses.

The planned business model changes mark one of the biggest shifts in strategy to date from HSBC, which has long touted its ability to generate interest income from its more than US$1.5 trillion in customer deposits.

"We will have to look at charging for basic banking services in some markets, because a large number of our customers in this environment will be losing us money".

HSBC now expects losses from bad loans to be at the lower end of the US$8 billion-US$13 billion range it set out earlier this year.

HSBC said today it plans to reduce annual costs to below US$31 billion by 2022, a more ambitious target than it set out in February and well below the operating expenses of US$42.3 billion it reported in 2019.

It would communicate a revised dividend policy in February. Analysts and investors fear the lender could cut payouts in the long run.

Source: Reuters

https://www.theedgemarkets.com/article/ ... sions-rise

[winston]

not vested

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

Brokers│Ratings│TPs (HK$)
Goldman Sachs│Buy│50
JPMorgan│Underweight│About HK$40.4 (GBX400)
Jefferies│Hold│About HK$40.4 (GBX400)
BofA Securities│Neutral│35.42
Haitong International│Neutral│30->35.15
Citigroup│Neutral│34.6
Morgan Stanley│Equalweight│33
UBS│Neutral│About HK$31.3 (GBX310)
Macquarie│Underperform│29
-----------------------

Brokers│Views
Goldman Sachs│QoQ result beats on lower ECL, better-than-expected mkt rev
JPMorgan│3Q result improves QoQ; NII stress carries on
Jefferies│Credit performance drives near-term PBT upside
BofA Securities│3Q earnings, capital position strong
Haitong International│Asset quality improves; may resume DPS in 4FQ
Citigroup│QoQ result driven by credit loss provision; capital position strong
Morgan Stanley│PPoP outlook stabilizing
UBS│Rev, cost, capital position improve under lower provision
Macquarie│4Q result may stabilize; earnings recovery, sustainable DPS path unclear

Source: AAStocks Financial News

[winston]

not vested

HSBC (5 HK/HSBA LN) - Better than expected 3Q results

HSBC (5 HK / HSBA LN) reported a strong beat in 3Q20 results with underlying profit before tax came in 54% above consensus estimates.

Pre-provision operating profit (PPOP) beat by 7%, as revenues and costs were better than expected.

Net interest margin (NIM) declined 13bps q/q or 36bps y/y to 1.2% vs. 1.23% consensus expectation, and the decline in net interest income (NII) moderated to 6% q/q in 3Q20.

Credit quality surprised on the upside and drove majority of the profit beat vs. consensus.

Credit costs reduced to 30bps in 3Q320.

Capital position was strong with Common Equity Tier 1 (CET1) ratio at 15.6%.

Management provided updated outlook which suggests outlook appears to be stabilizing.

We expect near-term share price to react positively to 3Q20 results as any further pressure should have already factored into consensus estimates.

The possible resumption of dividend next year would be a positive catalyst for share price but would still depend on economic outlook and subject to regulatory approval.

Issues to watch out for include the interplay of Brexit, and unsecured retail and commercial exposures.

We maintain our earnings estimates and Fair Value estimate unchanged. BUY.

Source: OCBC

[winston]

not vested

BofAS Downgrades HSBC HOLDINGS (00005.HK) to Underperform for Long Restructuring Road

BofA Securities in its report downgraded HSBC HOLDINGS (00005.HK) to Underperform from Neutral at the target price $41.93 unchanged, who was richly valued post 50% rally year to date.

The bank is only at the early stage in its long complex restructuring, in the broker's opinion.

A primary plan to further reduce its investments in Europe and the US should be ahead.

Given HSBC's management comments, the broker predicted France retail and US retail to be likely sold, yet the realized capital may be limited in light of unprofitable businesses.

Source: AAStocks Financial News

[winston]

not vested

HSBC dividend seen at 22 US cents in 2021

by Winnie Lee and Victor Li

Morgan Stanley expects HSBC (0005) could pay a dividend of as much as 22 US cents per share next year, while Standard Chartered's (2888) dividend payment could reach 21 US cents.

If the Bank of England allows the banks to resume dividend distribution, it is expected that of the two major British banks HSBC will have dividend yields of 2.77 percent this year and 4.07 percent next year, the report from Morgan Stanley noted.

As for Standard Chartered, the dividend yields are expected to be 2.68 percent this year and 3.33 percent next year.

According to regulations of the Prudential Regulation Authority, which is under the BOE, HSBC can pay a maximum dividend of up to US$3.045 billion (HK$23.75 billion) this year, equivalent to 15 US cents per share while Standard Chartered could pay up to US$540 million, equivalent to 17 US cents per share, Morgan Stanley said.

Therefore, it expects HSBC to pay dividend of US$1.512 billion and Standard Chartered a dividend of US$228 million this year.

Source: The Standard

https://www.thestandard.com.hk/section- ... ts-in-2021