|Bid||334.45 x 0|
|Ask||334.35 x 0|
|Day's range||319.45 - 334.90|
|52-week range||3.76 - 741.00|
|Beta (5Y monthly)||0.51|
|PE ratio (TTM)||18.68|
|Earnings date||27 Oct 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||27 Feb 2020|
|1y target est||9.20|
(Bloomberg) -- HSBC Holdings Plc joined the chorus of banks warning about a difficult economic outlook to cap a costly earnings season.The Asia-focused lender missed estimates after reporting first-half profit that halved to $5.6 billion because of higher credit provisions. It is speeding up the shakeup of its global operations after warning that the fallout from the coronavirus pandemic may trigger loan losses of as much as $13 billion this year.“This is still a hugely unpredictable environment,” said Chief Executive Officer Noel Quinn on a conference call. The bank is looking at further measures to boost performance, including investing more in Asia and cutting back in the U.S.The shares were down 3.5% at 1:51 p.m. in London, slumping to their lowest level in more than a decade and taking their decline to 44% for the year so far. Shares in British rivals like Barclays Plc and Lloyds Banking Group Plc fell last week after they reported earnings also dominated by big provisions.“We do need to take costs down, as a result of the revenue pressures” from the coronavirus, said Chief Financial Officer Ewen Stevenson in an interview with Bloomberg Television after HSBC lifted its estimated bad debt charge to the range of $8 billion to $13 billion for the year.HSBC has been seeking to pivot away from Europe and the U.S. to expand its business in the fast-growing Chinese market. The lender, which has been singled out by Washington for its backing of Beijing, said it will continue to shift its capital towards Asia, which provided nearly all of its earnings. Quinn said the tensions between “China and the U.S. inevitably create challenging situations for an organization with HSBC’s footprint.”Quinn said HSBC had to accelerate its turnaround plans in light of the pandemic and warned the lender would need to be more radical. The company cut more than a third of its 224 U.S. branch network as it pushes ahead with restructuring plans.Job Cuts“Our operating environment has changed significantly since the start of the year,” said Quinn. “We will also therefore look at what additional actions we need to take,” he said. CFO Stevenson also said more than 4,000 staff had left in the first-half of the year, the first of 35,000 jobs expected to be cut over the next three years.Last month, Quinn told more than 200 of the lender’s most senior managers that they needed to boost returns, people familiar with the matter have said. In a bid to hasten change, Quinn is pushing for more authority to be delegated to regional managers, the people said, requesting anonymity to discuss private talks.The bank said the U.K.’s gloomy economic outlook was responsible for about 40% of the $3.8 billion provision taken in the second quarter. Jefferies said in a note to clients that the “impairment charge has disappointed and management unhelpfully have widened the range” of the estimated hit for the full year.Key impairment figuresImpairment charge of $3.8 billion taken in the second quarterU.K. bank makes up $1.45 billion of second-quarter provisionSecond-quarter charge is 30% higher than first three months of 2020HSBC’s investment bank recorded a 79% gain in its foreign-exchange, rates and credit income division in the second-quarter compared to a year earlier. FICC revenue hit $2.1 billion, the latest results from a global lender that underline the diverging fortunes of trading businesses and domestic economies.The results mark 12 months since HSBC surprised the banking world with the ouster of then CEO John Flint. Flint had fallen out of favor with Chairman Mark Tucker, who then appointed Quinn to replace him as acting CEO, before he was given the job on a permanent basis in March.“One suspects that significant further restructuring announcements lie ahead in the coming quarter,” John Cronin, an analyst at the Dublin-based Goodbody stockbrokers, wrote in a note.(Updates with latest share price in fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
This FTSE 100 giant's shares have collapsed, halving its value. But I think this share offers deep rewards to patient investors.The post This FTSE 100 share has crashed 50%, but I'd keep buying it today! appeared first on The Motley Fool UK.
HSBC earnings call for the period ending June 30, 2020.
As the HSBC share price falls further, is this FTSE 100 (INDEXFTSE:UKX) global bank a bargain stock to buy for future gains?The post FTSE 100 faller: HSBC share price tumbles again appeared first on The Motley Fool UK.
A daily overview of the top business, market, and economic stories you should be watching today in the UK, Europe, and around the world.
HSBC fell 4% to the bottom of the FTSE 100 as the health crisis hammered its retail and corporate customers worldwide. The export-laden FTSE 100 was down 0.2% even as data showed British manufacturing output last month grew at its fastest pace in nearly three years. The domestically focussed FTSE 250 shed 0.3% with real estate stocks taking another hit after Prime Minister Boris Johnson last week postponed a planned easing of the lockdown in England.
(Bloomberg Opinion) -- HSBC Holdings Plc can’t seem to get a break. Even the financial-market boom that buoyed profits at some banks wasn’t enough to save Europe’s biggest lender from missing estimates. Chief Executive Officer Noel Quinn said HSBC is looking at accelerating restructuring plans that are expected to lead to the loss of 35,000 jobs. He may need to think even more radically.The bank reported second-quarter adjusted pretax profit fell 57% from a year earlier to $2.59 billion, versus an estimate of $2.94 billion. HSBC lifted its projection for loan losses to between $8 billion and $13 billion for this year, as it contends with the economic impact of the Covid pandemic. The shares fell as much as 4.7% in Hong Kong trading, reaching their lowest since the depths of the global financial crisis in 2009.Shrinking its workforce can’t fix the geopolitical headwinds the bank is facing. Headquartered in London but focused on Asia, HSBC is trapped between the demands of the U.K. and U.S. on one side and China on the other. With relations deteriorating and little prospect of an improvement, it may be time for the bank to consider separating its Asian business from the rest.HSBC appears to have few allies in government. British lawmakers criticized the bank for showing support for China’s national security legislation in Hong Kong, while U.S. Secretary of State Michael Pompeo attacked what he called “corporate kowtows.” At the same time, toeing China’s line appears to have won HSBC scant reward in Beijing. The Communist Party’s People’s Daily newspaper published an opinion piece last week saying the bank was an accomplice of the U.S. in the arrest of Huawei Technologies Co. Chief Financial Officer Meng Wanzhou and fabricated evidence against the company. HSBC has denied the allegations. The attacks have helped to drive the slump in HSBC’s Hong Kong-traded shares this year. They have lost 45%, far exceeding the 13% decline in the city’s benchmark Hang Seng Index.HSBC’S London and Hong Kong listings serve largely different investor bases. That alone might argue for some form of separation. As Bloomberg Intelligence analyst Jonathan Tyce says, the bank could look into withdrawing from one of the markets. “We suspect that, as with many U.S. global tech companies, HSBC may choose to wait and see if a change in the U.S. presidency in November will ease this threat, but longer term, dual-listing will probably be reassessed,” he said. A more fundamental shift would be to spin off the non-Asian business, creating two companies with separate management teams and perhaps listings. That might give HSBC a better chance of satisfying government and legal expectations in different parts of the world. At present, the bank faces being caught between conflicting demands of the national security law and potential U.S. sanctions against Chinese officials involved in imposing the legislation on Hong Kong.There is a precedent. In early 2017, McDonald’s Corp. sold most of its Hong Kong and China business to a tie-up between state-owned Citic Ltd. and U.S. private equity firm Carlyle Group LP. Yum! Brands Inc., meanwhile, owner of the KFC and Pizza Hut brands, spun off Yum China for a separate listing in November 2016.These changes appear to have insulated the companies against anti-American sentiment fueled by worsening trade tensions between China and the U.S. Yum China has outperformed its former parent since the spinoff. The prospect of Microsoft Corp. buying TikTok’s U.S. operations shows how the world is growing accustomed to the idea of sensitive businesses being carved into separate spheres of influence with different owners.A side-benefit of splitting the Asian business might be to shift its domicile back to Hong Kong. That would enable the more-profitable regional unit to resume dividend payments, which HSBC was forced to cancel earlier this year at the behest of U.K. regulators. That decision angered HSBC’s legion of small shareholders in Hong Kong and has contributed to the stock’s underperformance this year.Such a restructuring might face considerable regulatory hurdles. Quinn called the last few months the most challenging in living memory. Without radical change, HSBC may remain stuck between a rock and a hard place. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Asia-focused bank said its financial performance was impacted by the pandemic, market volatility and 'increased geopolitical risk.'
(Bloomberg Opinion) -- The U.K.’s biggest banks have come a long way since the financial crisis, when taxpayers had to rescue them to the tune of tens of billions of pounds. They’re certainly stronger, with comfortable capital buffers, as they head into what could be the worst recession in three centuries.But with the future of the economic rebound still far from certain, they’re having to set aside huge sums of cash to cover the potential loan losses. With rock-bottom interest rates squeezing profit margins, and the terms of Brexit still not finalized, it’s little wonder investors are staying clear.Shares in Britain’s “big four” — HSBC Holdings Plc, Barclays Plc, Lloyds Banking Group Plc and the recently rebranded NatWest Group Plc — have all performed worse than their European peers this year. Lloyds and NatWest, the most exposed to the U.K. economy, have seen more than half of their market values wiped out, leaving them not far off the lows of the financial crisis. Banco Santander SA, which runs Britain's fifth-largest bank, last week wrote $7.2 billion off the value of its U.K. offshoot.One reason for the investor anguish is the potential hit to lenders’ balance sheets from companies and households that won’t be able to repay their borrowings because of the Covid lockdowns. HSBC Chief Financial Officer Ewen Stevenson on Monday told Bloomberg Television that the U.K. is one of the weakest economies he can see globally.Analysts are expecting provisions across the four banks to total $27 billion this year, with HSBC making up more than a third of that. For perspective, they earned slightly less than $19 billion combined last year. Banks elsewhere in Europe — big lenders to small and medium-sized companies — have been making similar writedowns, but so far the U.K. finance industry seems to be in a worse spot.When reporting second-quarter earnings last week, several U.K. lenders said the provisions reflected a slower economic rebound and higher anticipated unemployment. State-controlled NatWest now estimates that British joblessness could top 9%. That would exceed the 8.4% rate at the peak of the financial crisis.The bankers’ conservative assessments are warranted. According to the National Institute of Economic and Social Research, a think tank, unemployment will rise to almost 10% later this year once the government’s furlough scheme ends at the end of October.U.K. banks are especially sensitive to the jobs market because so much of their business is consumer-based. There is a high correlation between unemployment and delinquencies across unsecured lending and credit cards, for example. Mortgages are another critical business, and analysts at Deutsche Bank AG say borrowers’ ability to repay is affected exponentially once unemployment rises past 8%. Deutsche estimates that losses at six U.K. lenders could reach 59 billion pounds ($77 billion) over two years if joblessness hits 10%.The drop in interest rates will also hurt, denting revenue and margins, and putting more pressure on costs. Then there’s Brexit. The possibility of Britain leaving the European Union without a deal features in banks’ most extreme scenario planning, but it still wouldn’t be a happy event during a global pandemic. And while there was a surge in British retail sales in June, a survey of households showed consumer confidence remained weak in July even before Britain started tightening lockdowns again.It’s a good thing capital isn’t an issue — for now. The banks expect their buffers to come under pressure, but the big four all reported an improvement in their common equity Tier 1 ratio in the second quarter, thanks in part to regulatory changes. That will help them weather the storm, but the situation is bleak.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
HSBC Holdings PLC warned its bad debt charges could blow past a previous estimate to $13 billion this year and said its profits more than halved, as the coronavirus pandemic hammered the bank's retail and corporate customers worldwide. HSBC increased its estimate of the total bad debt charges it could take this year to between $8 billion and $13 billion from $7 billion-$11 billion, reflecting worse-than-expected actual losses in the second quarter and expectations of a steeper decline in the economy. "What we have seen this quarter is quite a sharp shift in economic outlook for the global economy, the famous 'V' has got a lot sharper and as a result we have materially increased our provisions," Chief Financial Officer Ewen Stevenson told Reuters.
European stock markets are seen opening cautiously higher Monday, helped by signs of economic growth in China but with rising Covid cases continuing to create doubts about the global recovery. At 2:15 AM ET (0615 GMT), the DAX futures contract in Germany traded 0.4% higher, the FTSE 100 futures contract in the U.K. rose 0.1%, while CAC 40 futures in France climbed 0.4%. China reported a strong Caixin manufacturing Purchasing Managers Index reading of 52.8 earlier in the day, indicating that the Chinese manufacturing sector continued to expand in July.
Iwoca has raised £100m to lend under the CBILS scheme and wants it to be extended beyond September to help small businesses borrow.
Over half of Europe’s 30 biggest banks have now reported half year results and set aside £30.4bn between them to cover future losses.
NatWest set aside a further £2bn to cover potential COVID-19-linked losses, taking its total provisions for the crisis to £2.8bn.
(Bloomberg) -- SoftBank Group Corp. unveiled a fresh program to buy back almost $10 billion of its own stock, adding to repurchase plans that have helped lift shares this year.The Tokyo-based company said it would buy back as much as 12.3% of its stock for 1 trillion yen ($9.6 billion) under a program that would would run through July 2021, the fourth such program announced this year. The company has said it plans to sell 4.5 trillion yen in assets to fund repurchases and other activities.SoftBank founder Masayoshi Son turned to asset sales and stock repurchases after his shares tumbled with the coronavirus pandemic and business missteps earlier this year. The strategy has helped his company’s price more than double from its low in March to the highest levels in two decades.In Friday’s announcement, SoftBank said that, due to the uncertainty in market trends, repurchases under the 4.5 trillion yen asset program may not be completed until April 2021 or later.SoftBank Group shares rose as much as 2.2% to 7048 yen in Tokyo Friday. They had climbed about 45% this year before through Thursday’s close.At the peak in February 2000, SoftBank reached what remains its all-time intraday high of exactly 11,000 yen. SoftBank’s founder has said that surge led him to surpass Bill Gates as the world’s richest man -- if only for just three days.Analysts have been racing to adjust their models to SoftBank’s repurchases. HSBC on July 22 lifted its price target 21% to 7,430 yen. Iwaicosmo Securities Co. has a target of 8,000 yen, while Tokai Tokyo Research Center’s analyst has the highest among analysts tracked by Bloomberg at 10,000 yen.“We continue to like the risk reward outlook at SoftBank,” HSBC analysts Neale Anderson and Binnie Wong wrote. “SoftBank is executing rapidly on its share buyback and debt reduction program.”(Updates with details of repurchase programs from second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Higher-than-forecast loss provisions at Lloyds Bank and tumbling profits at Standard Chartered and BBVA spooked investors across the continent.
Warren Buffett has been buying shares in a big US institution. Roland Head picks two UK peers that look cheap after this year's stock market crash.The post Stock market crash: I think Warren Buffett would buy these UK shares today appeared first on The Motley Fool UK.
Jes Staley rethinking 'real estate mix' after previously suggesting that packed Canary Wharf office blocks could be 'a thing of the past.'
A Chinese government-backed website took aim at HSBC Holdings PLC on Tuesday, accusing the Asia-focussed lender of "maliciously" playing a role in the arrest of Huawei Technologies' chief financial officer. Huawei CFO Meng Wanzhou's is fighting against extradition from Canada to the United States, where she is accused of bank fraud for misleading HSBC about Huawei's relationship with a company operating in Iran, putting HSBC at risk of fines and penalties for breaking U.S. sanctions on Tehran. Anger in China over the treatment of Meng and Huawei, the world's biggest telecoms equipment maker, has led to criticism of London-headquartered HSBC intensifying in recent days, with the latest salvo fired by website China.com.cn.
A Chinese government-backed website took aim at HSBC Holdings PLC <HSBA.L> on Tuesday, accusing the Asia-focussed lender of "maliciously" playing a role in the arrest of Huawei Technologies' chief financial officer. Huawei CFO Meng Wanzhou's is fighting against extradition from Canada to the United States, where she is accused of bank fraud for misleading HSBC about Huawei's relationship with a company operating in Iran, putting HSBC at risk of fines and penalties for breaking U.S. sanctions on Tehran. Anger in China over the treatment of Meng and Huawei, the world's biggest telecoms equipment maker, has led to criticism of London-headquartered HSBC intensifying in recent days, with the latest salvo fired by website China.com.cn.
(Bloomberg) -- Fueled by buybacks, analyst valuations, earnings expectations and IPOs, SoftBank Group Corp. shares are retracing their way back to heights last seen during the dotcom bubble 20 years ago.SoftBank shares rose 2.3% in Tokyo Tuesday to close at 6,645 yen, the highest since March 2000. The stock is up almost 150% from March.At the peak in February 2000, SoftBank reached what remains its all-time intraday high of exactly 11,000 yen. Founder Masayoshi Son has said that surge led him to surpass Bill Gates as the world’s richest man -- if only for just three days.Some now see the stock nearing those heights again, as analysts review their assessment of Vision Fund companies.“Expectations for SoftBank’s profit growth as an investment company have been rising after the success of recent IPOs,” said Tomoaki Kawasaki, senior analyst at Iwaicosmo Securities Co. His price target is 8,000 yen, the second-highest among analysts tracked by Bloomberg. Tokai Tokyo Research Center analyst Masahiko Ishino, who last week trimmed his price target to 10,000 yen, is the only analyst who rates the stock higher. Ishino has rated SoftBank shares at or above the 10,000 yen mark for more than a year.HSBC on July 22 also lifted its price target 21% to 7,430 yen. “We continue to like the risk reward outlook at SoftBank,” analysts Neale Anderson and Binnie Wong wrote. “SoftBank is executing rapidly on its share buyback and debt reduction program.”After 133% Rally, SoftBank Investors Bet There’s More AheadIn addition to share buybacks that could be worth as much as 2.5 trillion yen ($23.7 billion), what were once downsides are now advantages, as holdings in Uber Technologies Inc. and perhaps even WeWork are seen to contribute to earnings, according to HSBC. SoftBank is “for better or worse, heavily exposed to the impact of the market’s excess liquidity, and we think it may be one of the firms that benefits most in the near term,” Citigroup Global Markets analysts Mitsunobu Tsuruo and Hiroki Kondo wrote on July 21.SoftBank will report earnings on August 11. Even if the stock should reclaim 10,000 yen, Son wouldn’t now challenge for the crown of world’s richest man. But a more realistic goal is in sight -- that of Japan’s most valuable company. A share price of around 13,400 yen could see it take that title, based on Toyota Motor Corp.’s valuation.Of course, under Son’s reckoning SoftBank is already worth far more -- his shareholder value metric, the equity value of SoftBank’s holdings minus net debt, puts its worth at 12,605 yen a share.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
HSBC forms a dedicated Environmental, Social and Governance (ESG) Solutions Unit to help clients around the world transition their businesses
HSBC aims to double the number of Black staff in senior roles by 2025, Chief Executive Noel Quinn said in an internal memo, as the bank attempts to take action against discrimination and create opportunities for advancement in the wake of the Black Lives Matter movement. Black employees at the bank have said in internal meetings that they have felt overlooked for career opportunities and "uninspired by the lack of senior role models", Quinn said in a memo to all staff seen by Reuters on Monday. A spokeswoman for HSBC confirmed the contents of the memo.