HSBC Holdings Plc (HSBA) - 3rd Quarter 2023 Earnings Release.

[idpickering]

Third interim dividend for 2023

On 30 October 2023, the Directors approved a third interim dividend in respect of the financial year ended 31 December 2023 of $0.10 per
ordinary share, a distribution of approximately $1.946bn. The dividend will be payable on 21 December 2023 to holders of record on the Principal
Register in the UK, the Hong Kong Overseas Branch Register or the Bermuda Overseas Branch Register on 10 November 2023.
The dividend will be payable in US dollars, or in pounds sterling or Hong Kong dollars at the forward exchange rates quoted by HSBC Bank plc in
London at or about 11.00am on 11 December 2023. The ordinary shares in London, Hong Kong and Bermuda, and American Depositary Shares
(‘ADSs’) in New York will be quoted ex-dividend on 9 November 2023.

Item downloadable via here; https://www.hsbc.com/investors/results- ... #downloads

A RNS will be issued no doubt at 0700hrs today in UK.

Also posted on Company News here; viewtopic.php?p=624005#p624005

I hold these in my HYP, and know others hereabouts do too, so this may be of interest here.

Ian.

[idpickering]

RNS re the above here; https://www.investegate.co.uk/announcem ... se/7846332

Ian.

[funduffer]

Opinion piece from John Kingham on HSBC for dividend investors.

https://www.ukdividendstocks.com/blog/i ... -investors

TLDR:

What defines a high-quality business is an ability to consistently earn high rates of return on capital, with those returns being used to fuel an income for shareholders today and growth for the future.

With HSBC, growth has been non-existent, returns on capital have been unacceptably weak and although its balance sheet appears to be extremely robust, there are no obvious signs that HSBC has any durable competitive advantages over its peers.

On that basis, I will be adding HSBC to my blacklist of uninvestable stocks, where it will remain for at least five years.

Enjoy!

FD

[simoan]

Opinion piece from John Kingham on HSBC for dividend investors.

https://www.ukdividendstocks.com/blog/i ... -investors

TLDR:

What defines a high-quality business is an ability to consistently earn high rates of return on capital, with those returns being used to fuel an income for shareholders today and growth for the future.

With HSBC, growth has been non-existent, returns on capital have been unacceptably weak and although its balance sheet appears to be extremely robust, there are no obvious signs that HSBC has any durable competitive advantages over its peers.

On that basis, I will be adding HSBC to my blacklist of uninvestable stocks, where it will remain for at least five years.

Enjoy!

FD

So, a large multinational bank has no competitive advantage. What a revelation! Stating the bleeding obvious, more like. Using Return on Capital to measure the profitability of a bank is ridiculous - you need to use Return on Equity. All this tells me is that the author hasn’t got a clue.

[Itsallaguess]

‎
HSBC 3rd Interim Dividend - Sterling Amount -

7.9529 pence per share

Ex-dividend - 9th November 2023

Dividend Paid - 21st December 2023

https://www.londonstockexchange.com/news-article/HSBA/third-interim-dividend-for-2023-exchange-rate/16247100

Cheers,

Itsallaguess

[Dod101]

‎
HSBC 3rd Interim Dividend - Sterling Amount -

7.9529 pence per share

Ex-dividend - 9th November 2023

Dividend Paid - 21st December 2023

https://www.londonstockexchange.com/news-article/HSBA/third-interim-dividend-for-2023-exchange-rate/16247100

Cheers,

Itsallaguess

I had not registered this dividend as it was not there last year! Excellent. A nice Christmas present.

Dod

[funduffer]

I had not registered this dividend as it was not there last year! Excellent. A nice Christmas present.

Dod

It is part of the fact HSBC are reverting to 4 dividends per year.

FD

[kempiejon]

They look on track to return my income to pre cut high last seen in 2018 51¢ for the year. That does depend on the final being 21¢ rather than the 3 preceding 10¢. That would see a 6.5% odd yield.

[simoan]

They look on track to return my income to pre cut high last seen in 2018 51¢ for the year. That does depend on the final being 21¢ rather than the 3 preceding 10¢. That would see a 6.5% odd yield.

My data shows the consensus estimate is for a dividend of 64 cents for FY23. Twice covered by earnings per share.

[monabri]

The dividend for both 2023 and 2024 is based on a pay out ratio of 50% of reported EPS (paid 6 of the Annual Report - M.Tucker)....that's the policy so the final dividend will be based on that.

Mr Tucker also stated

"Subject to completion of the planned sale of our banking business in Canada, the Board’s intention is to consider the payment of a special dividend of $0.21 per share as a priority use of the proceeds generated. A decision in relation to any potential dividend would be made following the completion of thetransaction, currently expected in late 2023, with payment following in early 2024. Any remaining additional surplus capital is expected to be allocated towards opportunities for organic growth and investment alongside share buy-backs, which would be in addition to any existing
share buy-back programme."

Subsequently, the Q3 2023 ( 30th October 23) presentation (p10).

"Remain committed to consider payment of a $0.21 per share special dividend as a priority use of proceeds in 1H24"



Link to HSBC's Results & Announcements page.
https://www.hsbc.com/investors/results- ... ouncements

[Dod101]

They look on track to return my income to pre cut high last seen in 2018 51¢ for the year. That does depend on the final being 21¢ rather than the 3 preceding 10¢. That would see a 6.5% odd yield.

My data shows the consensus estimate is for a dividend of 64 cents for FY23. Twice covered by earnings per share.

That would be quite some Final ( or fourth interim as it technically is) and sparkling 2023 results.

Dod

[monabri]

They look on track to return my income to pre cut high last seen in 2018 51¢ for the year. That does depend on the final being 21¢ rather than the 3 preceding 10¢. That would see a 6.5% odd yield.

My data shows the consensus estimate is for a dividend of 64 cents for FY23. Twice covered by earnings per share.

Great..we can link the dividend policy to the estimate and, fingers crossed, arrive at a Q4 * dividend....assuming target EPS is met!

Edit
* terminology / definition of the dividend...

[monabri]

Hopefully it (finally & special dividend) will smooth some feathers in Shenzhen?

[MDW1954]

And to think, in autumn 2020 you could buy HSBC shares for 300p (less than half today's price).

MDW1954

[Dod101]

And to think, in autumn 2020 you could buy HSBC shares for 300p (less than half today's price).

MDW1954

Well let’s see what the Final results look like first.

But it all looks good.

Dod

[kempiejon]

And to think, in autumn 2020 you could buy HSBC shares for 300p (less than half today's price).

MDW1954

But one wouldn't would they? Because the dividend was cut Q4 2019. Looks like a low yield point and certainly didn't have the prerequisite of a rising dividend history nor would the income looked secure.

[Dod101]

I have held them since about 1990 through all their ups and downs in that period. What needs to happen is that the CEO needs to be constrained from making some stupid takeover once their results are looking good again. That is their usual undoing. We need a few years of organic growth with the odd bolt on acquisition just to keep things ticking over.

Dod

[monabri]

And to think, in autumn 2020 you could buy HSBC shares for 300p (less than half today's price).

MDW1954

Yes..you did well!

( iirc you were buying.....were you using a shovel? ).

[MDW1954]

And to think, in autumn 2020 you could buy HSBC shares for 300p (less than half today's price).

MDW1954

But one wouldn't would they? Because the dividend was cut Q4 2019. Looks like a low yield point and certainly didn't have the prerequisite of a rising dividend history nor would the income looked secure.

The dividend was cut because the Bank of England and FCA insisted that it should be, like all the other banks and larger financial institutions. In vain did the board of HSBC protest that only 4% of revenues came from the UK, and that the finances did not merit a cut. The bank's Hong Kong shareholders were furious.

At 300p, the share price was at a 25-year low. I bought as many as I could afford.

MDW1954

[Steveam]

I added in October 2020 at £3.27 - this was a substantial addition to the old holding which I’ve held since 2001 at an average price of £7.50 (the total dividends over the [long] holding period is about 75% of the cost. I used to write options and the option premiums are another 50% of the cost).

I tend not to look at holdings like this (unless a thread develops) as I’m content to just sit back and watch the dividends roll in. I’m becoming an increasingly passive investor as the years pass.

Best wishes,

Steve

ps Just so I don’t come across as a smart **** I should mention significant losses with Lloyds and RBS