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

Re: HSBC 02 (0005) (Jun 10 - Dec 22)

Postby winston » Wed Feb 24, 2021 12:25 pm

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HSBC (5 HK/HSBA LN) - Targeting 10%+ return on tangible assets; dividend beat

HSBC 4Q20 results beat consensus estimates with profit before tax came in 23% higher than expected, which was mainly driven by higher revenue, better-than-expected net interest margin & lower estimated credit loss.

Common Equity Tier 1 (CET1) ratio was a strong beat at 15.9%.

A final dividend of US15cents (all cash) is declared (vs. consensus estimate of US13 cents).

HSBC provided strategy update with a new Return on Tangible Equity (ROTE) target of 10%+ by 2023-24e.

Key in achieving the new ROTE target will be lifting medium- to long-term revenue growth target to mid-single digit and keeping cost under control.

Targeted CET1 ratio is in the range of 14-14.5%.

A positive surprise in prospect of higher longer-term capital distribution.

HSBC will consider share buybacks and special dividend after 2021e.

The stock is trading at 0.7x forward P/B & 4% forward dividend yield. We expect dividend resumption, revenue reflection, an updated strategy to continue to focus on growth and return will support share price outperformance.

Our Fair Value estimate is revised up to HK$54 (5 HK) / GBp496 (HSBA LN) which is set at a higher multiple of 0.8x forward P/B. BUY.

Source: OCBC
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Re: HSBC 02 (0005) (Jun 10 - Dec 22)

Postby winston » Wed Apr 20, 2022 12:56 pm

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BofAS Projects HSBC HOLDINGS (00005.HK) 1Q PBT at USD3.6B, Rating Buy

BofA Securities forecast HSBC HOLDINGS (00005.HK)'s 1Q PBT to fall 37% YoY to USD3.6 billion.

With recently rising market interest rates, the broker further lifted the company's 2024E EPS by 5% to USD1.

The broker's YTD upgrades are now 20% and it sees the 2024E earnings 60% higher than those for 2021.

The rating on HSBC HOLDINGS was restated at Buy, with target prices of HK shares and London shares being raised to HKD65.7 and GBP6.45 (from GBP6.2) respectively.

In BofA Securities' view, HSBC HOLDINGS was the key beneficiary of the more inflationary world, and the company may seemingly deliver a 12% Return on Tangible Equity in 2024E.

(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2022-04-20 12:25.)

Source: AAStocks Financial News
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Re: HSBC 02 (0005) (Jun 10 - Dec 22)

Postby winston » Tue Apr 26, 2022 8:53 am

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Investors pushing for HSBC break-up to eliminate risk

The management has failed to execute the company's strategy, particularly in meeting revenue targets, the unnamed shareholders told the newspaper.

The investors have suggested the management seek ways to spin off or divest the Asian business, according to the report.

The divestment would give investors the flexibility to determine and value their holdings in HSBC's Asia and non-Asia businesses independently, and would help HSBC be freed from the burden of its Asian businesses, with a significant increase in the valuation, it said

HSBC is expected to report a 35.6 percent drop in first-quarter pre-tax profit to US$3.72 billion (HK$29.016 billion) from a year earlier, based on consensus from analyst forecasts compiled by the bank.

On average, securities dealers forecast the bank's net interest income would rise 6.1 percent year-on-year to US$6,911 million in the first quarter.

Net interest margin would widen 3 basis points to 1.24 percent from earlier year. Other income may see a 9.9 percent decrease to US$5.83 billion in the first three months.

During the first quarter, its mortgage lending in Hong Kong has weakened, and the anti-pandemic measures in China and Hong Kong may have affected sales of insurance and other financial products.

Source: The Standard

https://www.thestandard.com.hk/section- ... inate-risk
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Re: HSBC 02 (0005) (Jun 10 - Dec 22)

Postby winston » Wed Apr 27, 2022 8:11 am

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HSBC rules out buybacks as profit in Q1 falls 27pc

HSBC (0005) posted a 27 percent drop in its first-quarter pretax profit and nixed the possibility of more buybacks this year.

Pretax profit of US$4.17 billion (HK$32.53 billion) for the first quarter ending March 31 was down from US$5.78 billion a year earlier, but beat the US$3.72 billion average estimate of 16 analysts compiled by HSBC.

The London-based lender said it does not intend to pay quarterly dividends during 2022, adding that more share buybacks were unlikely given worsening economic outlook.

HSBC reported an expected credit loss of US$600 million, partly driven by the Russian invasion of Ukraine and Chinese commercial real estate.

HSBC's revenues fell 3 percent, in part due to Covid restrictions in the bank's biggest market of Hong Kong as its branches were closed, hitting its sales of investment products.

HSBC is "not considering" breaking itself up.

Hang Seng Bank (0011), which is a subsidiary of HSBC, declared a first interim dividend of 70 HK cents, down more than 36 percent from a year ago.


Source: Reuters

https://www.thestandard.com.hk/section- ... falls-27pc
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Re: HSBC 02 (0005) (Jun 10 - Dec 22)

Postby winston » Wed Apr 27, 2022 3:54 pm

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HSBC Holdings (5 HK): 1Q22 result posted in-line with positive NIM outlook [BUY, TP HK$62.40]

HSBC (5 HK) 1Q22 adjusted profit before tax landed at $4.7bn, down 25% y-o-y, due mainly to a net charge for ECL expense compared to a net release in 1Q21.

Total revenue posted down 4% y-o-y, due to fewer fee income growth from its Wealth and Personal Banking

Loan growth posted +2% q-o-q and +4% y-o-y driven by growth in mortgages and demand for trade financing.

NIM landed at 1.26%, +7bps q-o-q and +5% y-o-y, as it benefit from the rise in policy rates.

Source: DBS
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Re: HSBC 02 (0005) (Jun 10 - Dec 22)

Postby winston » Wed Apr 27, 2022 4:07 pm

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Brokers│Views

Goldman Sachs│QoQ result in-line, capital miss may be spotlight

Citigroup│capital misses; mgmt positive on NIM

JPMorgan│CET1 capital ratio falls, no extra share buy-back this year, disappointing

UBS│PPOP in-line, CET1 capital ratio falls

Morgan Stanley│adjusted PBT beats, lifts annual profit forecast by 4.8%

Jefferies│capital miss as spotlight; other result metrics good

Related News - Citi: HSBC HOLDINGS (00005.HK) 1Q22 Results Beat on Covid-related Provision Releases

Source: AAStocks Financial News
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Re: HSBC 02 (0005) (Jun 10 - Dec 22)

Postby winston » Sat Apr 30, 2022 6:24 pm

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HSBC defends its global span, fending off Ping An’s call to spin off its Asia business as it doubles down on its pivot to the region

Ping An recommended HSBC spin off Asia business, list in Hong Kong, according to reports

Risk of geopolitical firestorms, dividend suspension two years ago has prompted some investors to call for a split

by Chad Bray

Source: SCMP

https://www.scmp.com/business/banking-f ... e7fbf883f3
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Re: HSBC 02 (0005) (Jun 10 - Dec 22)

Postby winston » Mon May 09, 2022 8:56 am

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Britain's biggest bank is caught in the U.S.-China crossfire

HSBC is headquartered in London but operates across 64 countries, including Hong Kong, Singapore, India and Malaysia.

Approximately half of its 220,000 employees are based in the region.

Any breakup would cost billions of dollars and the changes could knock 3% to 8% off the group’s market value.


Source: Bloomberg

https://www.theedgemarkets.com/article/ ... -crossfire
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Re: HSBC 02 (0005) (Jun 10 - Dec 22)

Postby winston » Mon Jun 13, 2022 7:19 am

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HSBC could unlock US$26.5 billion in Asia spin-off, report says

A break up of HSBC Holdings Plc’s Asian unit could unlock US$26.5 billion, or a fifth of its current market value.

Two other scenarios that could benefit shareholders are for HSBC to spin off the Asian business or just its Hong Kong retail operations into partial initial public offerings, Toto Consultancy said in a June 8 report.

Ping An had held discussions with the lender to separate its Asia arm to create shareholder value, Bloomberg reported late April. The campaign prompted an internal review with executives tapping Goldman Sachs Group Inc. on how to rebut Ping An’s case.

Barclays Bank Plc estimates that a split could shave off 3% to 8% of the bank’s market value and cost billions of dollars to pull off. JPMorgan Chase & Co. sees material changes resulting in the need for “a costly restructuring, unwinding of corporate center costs, a loss of revenue/market share, increased regulatory scrutiny and potential capital and funding dis-synergies.”

Source: Bloomberg

https://www.theedgesingapore.com/news/b ... eport-says
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Re: HSBC 02 (0005) (Jun 10 - Dec 22)

Postby winston » Sun Jul 17, 2022 8:04 am

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HSBC set to push back against Ping An breakup proposal

By Sumeet Chatterjee and Lawrence White

Summary
HSBC speeding up disposal of non-core markets, assets
Bank to renew commitment to deploy more capital to Asia
Lender due to report results and strategy on Aug. 1

Source: Reuters

https://www.reuters.com/business/financ ... 022-07-15/
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