HSBC (HSBA)

[idpickering]

Interim Dividend Exchange Rate date change.

On 1 August 2022, the Directors of HSBC Holdings plc approved an interim dividend for the 2022 half year of US$0.09 per ordinary share. It was announced that 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 19 September 2022.

The 19 September 2022 has now been made a Bank Holiday in the United Kingdom due to the funeral of Her Majesty Queen Elizabeth II.

The forward exchange rates to be used will now be quoted by HSBC Bank plc in London at or about 11.00am on 20 September 2022. Other than as stated in this announcement, there are no changes to the arrangements regarding the interim dividend for the 2022 half year as announced on 1 August 2022.

https://www.investegate.co.uk/hsbc-hold ... 30032585Z/

Ian.

[peterh]

Interim Dividend Exchange Rate

Dividends payable in cash in Hong Kong dollars or sterling were converted from United States dollars at the forward exchange rates quoted by HSBC Bank plc in London at or about 11.00 am on 20 September 2022 (US$1=HK$7.847835 and £1=US$1.141824). Accordingly, the cash dividend payable on 29 September 2022 will be:

US$0.09 per share;
approximately HK$0.706305 per share; or
approximately £0.078821 per share.

https://www.investegate.co.uk/hsbc-hold ... 00000101A/

[idpickering]

HSBC CEO Says Multiple Independent Advisers Opposed a Breakup.

HSBC Holdings Plc has sought advice on a proposed breakup of the bank and remains convinced that the move would damage the business, according to CEO Noel Quinn.

The bank sounded out investment banks and lawyers and then asked a firm of accountants to check the workings to make sure the analysis was robust, Quinn said at a Bank of America Corp. conference on Tuesday.

“We’ve taken the board through all that work,” he said, adding that breaking up the “hugely international” bank would create dis-synergies around areas including costs and funding. “The net was a negative in our financial analysis.”

Ping An Insurance Group Co., the bank’s largest shareholder, is campaigning for change, arguing that the lender is in need of urgent and radical reforms.

Ping An estimates a spin-off of HSBC’s Asia business would generate additional market value of $25 billion to $35 billion, release $8 billion in capital requirements, and save on headquarter and infrastructure costs, Bloomberg News reported last month.

Separately Quinn said a reopening of China’s economy was unlikely this year or early next year but expressed hope this could change in the middle of 2023. He added that he visited Hong Kong for a month in the summer and said there was evidence of a progressive re-opening of the Hong Kong market.

Quinn said he was confident Hong Kong would remain an international finance center. “China wants to have a gateway to international capital and Hong Kong is well positioned to be that gateway.”

https://www.bnnbloomberg.ca/hsbc-ceo-sa ... -1.1821098

Ian.

[idpickering]

HSBC raises its prime rate for the first time in 4 years as cost of money soars to 14-year high.

HSBC's best lending rate for borrowers will be raised by 12.5 basis points to 5.125 per cent, from 5 per cent, effective Friday
The first increase in prime rates in four years will hurt the property market and Hong Kong's economy, analysts say
Hong Kong's largest bank HSBC raised its prime rate for the first time in four years, taking the lead among the city's lenders to increase the cost of money as surging interest rates spill over to the city's households and corporate borrowers.

https://www.msn.com/en-xl/money/other/h ... e%20Friday

Ian.

[idpickering]

HSBC considers leaving Canary Wharf HQ.

HSBC is considering leaving its iconic Canary Wharf headquarters when its lease expires in early-2027. The bank is carrying out a review of “the best future location in London” for its global headquarters, according to an internal memo seen by Financial News.

HSBC’s options include either renovating its current building or moving to another London location elsewhere.

https://www.msn.com/en-gb/money/other/h ... r-AA12p0GH

At least it seems they're not leaving London?

More on this from elsewhere;

HSBC to review Canary Wharf tower HQ, consider new London base.

HSBC is reviewing whether to keep its global headquarters in London's Canary Wharf, a staff memo seen by Reuters on Thursday showed, a decision which could see the bank swap the financial hub for a new home after more than 20 years.

The bank said it wanted to assess its "best future location in London" ahead of its lease expiring at the 45-floor tower at 8 Canada Square in early 2027.

HSBC, which is currently defending itself against calls for a break-up from its top investor, has long grappled with the optimal location for its business, with some stakeholders urging it to shift its HQ to Asia, where it makes the majority of its profits.

According to the memo, the bank said the review would include the option of staying and renovating the tower which bears its name, but it would keep its global headquarters in London.

HSBC has occupied the skyscraper - one of the tallest buildings in Canary Wharf and an icon of Britain's banking industry - since 2002.

It has been home to up to around 8,000 HSBC employees, some of whom refer to the skyscraper as the 'Tower of Doom'.

Besides flagging a possible relocation, the memo also outlined the lender's approach to hybrid working since the COVID-19 pandemic and was signed by the bank's group chief operating officer John Hinshaw.

"We want our head office to connect people, drive collaboration, foster alternative workstyles and promote wellbeing," the memo read.

"It will be much more digitally enabled to help us work smarter, and will be sustainably designed to help meet our net zero commitments."

HSBC said it would occupy 25% less space in the tower by closing some floors and relocating teams, to lower the cost of running the building and save energy.

A HSBC spokesperson confirmed the contents of the memo.

https://uk.finance.yahoo.com/news/hsbc- ... 30153.html

Maybe an RNS to follow?

Ian.

[monabri]

I wonder if they'll be able to get a favourable mortgage on a new home?

[idpickering]

HSBC looks to deals and disposals as part of battle against breakup.

HSBC Holdings has spent the past six months fighting calls from its largest shareholder to split up. That isn’t stopping the bank ramping up its own dealmaking programme.

The London-based lender expects to increase the amount of acquisitions it makes in the coming years, a person familiar with the company’s thinking said. Further disposals are also expected but will likely be matched by purchases, the person said, declining to be identified discussing private information.

Such a shift underlines the lender’s changing stance to dealmaking. Since the global financial crisis, the bank has made few acquisitions while exiting more than 20 countries and selling dozens of businesses, even some that were previously seen as core to its operations.

https://www.businesstimes.com.sg/bankin ... st-breakup

Ian.

[Dod101]

HSBC looks to deals and disposals as part of battle against breakup.

HSBC Holdings has spent the past six months fighting calls from its largest shareholder to split up. That isn’t stopping the bank ramping up its own dealmaking programme.

The London-based lender expects to increase the amount of acquisitions it makes in the coming years, a person familiar with the company’s thinking said. Further disposals are also expected but will likely be matched by purchases, the person said, declining to be identified discussing private information.

Such a shift underlines the lender’s changing stance to dealmaking. Since the global financial crisis, the bank has made few acquisitions while exiting more than 20 countries and selling dozens of businesses, even some that were previously seen as core to its operations.

https://www.businesstimes.com.sg/bankin ... st-breakup

Ian.

Well there is current talk that they are looking at possibly selling the Canadian operation, and they have bought a few small' add ons' in the Far East.

However many/most of their problems of the last decade or so were the result of a whole raft of acquisitions they made in first decade of this century so I hope they will be very careful about them.

Dod

[idpickering]

HSBC looks to deals and disposals as part of battle against breakup.

HSBC Holdings has spent the past six months fighting calls from its largest shareholder to split up. That isn’t stopping the bank ramping up its own dealmaking programme.

The London-based lender expects to increase the amount of acquisitions it makes in the coming years, a person familiar with the company’s thinking said. Further disposals are also expected but will likely be matched by purchases, the person said, declining to be identified discussing private information.

Such a shift underlines the lender’s changing stance to dealmaking. Since the global financial crisis, the bank has made few acquisitions while exiting more than 20 countries and selling dozens of businesses, even some that were previously seen as core to its operations.

https://www.businesstimes.com.sg/bankin ... st-breakup

Ian.

Well there is current talk that they are looking at possibly selling the Canadian operation, and they have bought a few small' add ons' in the Far East.

However many/most of their problems of the last decade or so were the result of a whole raft of acquisitions they made in first decade of this century so I hope they will be very careful about them.

Dod

Thanks for offering your thoughts on this matter Dod. You're obviously more knowledgeable about this than me, so I bow to your experience. Either way, my feelings about this are pretty much in line with your own.

Ian.

[idpickering]

Overseas Regulatory Announcement - Board Meeting.

EARNINGS RELEASE FOR THIRD QUARTER 2022.

Pursuant to Rule 13.43 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, notice is given that a meeting of a committee of the Board of Directors of HSBC Holdings plc will be held on 25 October 2022 to consider the announcement of the Earnings Release for the Third Quarter 2022.

https://www.investegate.co.uk/hsbc-hold ... 30017962C/

Ian.

[idpickering]

HSBC Holdings plc 3Q 2022 Earnings Release,

Financial performance (3Q22 vs. 3Q21)

Reported profit after tax decreased $1.7bn to $2.6bn and reported profit before tax fell $2.3bn to $3.1bn. Our 3Q22 results included an impairment of $2.4bn following the reclassification of our retail banking operations in France to held for sale, as well as a net charge for expected credit losses and other credit impairment charges (‘ECL’), compared with a net release in 3Q21. There was continued strong growth in net interest income. Adjusted profit before tax increased $1.0bn to $6.5bn.
Reported revenue decreased 3% to $11.6bn, reflecting an impairment on the planned disposal of our retail banking operations in France, as well as adverse foreign currency translation impacts of $1.0bn. However, net interest income increased in all of our global businesses due to interest rate rises. Adjusted revenue rose 28% to $14.3bn.
Net interest margin (‘NIM’) of 1.57% increased 38 basis points (‘bps‘) compared with 3Q21, and by 22bps from 2Q22.
Reported ECL were $1.1bn, including allowances to reflect increased economic uncertainty, inflation, rising interest rates and the ongoing developments in mainland China‘s commercial real estate sector. This compared with a $0.7bn net release in 3Q21.
Reported operating expenses were unchanged from 3Q21. The benefits of our cost-saving initiatives and favourable foreign currency translation impacts of $0.7bn were offset by an increase of $0.3bn in restructuring and other related costs, higher investments in technology, an increase in the performance-related pay accrual due to the expected phasing of our profits for the year, and the impacts of rising inflation. Adjusted operating expenses rose 5% due to a higher performance-related pay accrual and increased investment spend, mainly in technology. Compared with 2Q22, adjusted operating expenses were broadly stable.
Customer lending balances fell $61bn in the quarter on a reported basis. On an adjusted basis, lending balances fell $18bn, reflecting a $23bn reclassification of loans relating to the planned disposal in France to assets held for sale, partly mitigated by growth in mortgage balances of $2bn in the UK and $1bn in Hong Kong.
Common equity tier 1 (‘CET1’) capital ratio of 13.4% fell 0.2 percentage points from 2Q22, including a 0.3 percentage point impact from the reclassification of our French retail banking operations to held for sale and a 0.1 percentage point impact from further losses in equity from financial instruments as yield curves steepened.

Noel Quinn, Group Chief Executive, said:
“We maintained our strong momentum in the third quarter and delivered a good set of results. Our strategy produced good organic growth in all three global businesses, and net interest income increased on the back of rising interest rates. We retained a tight grip on costs, despite inflationary pressures, and remain on track to achieve our cost targets for 2022 and 2023. We are focused on executing our plans and delivering our returns target of at least 12% from 2023 onwards and, as a result, higher distributions to our shareholders.”

Full item here; https://www.hsbc.com/news-and-media/med ... gs-release

Ian.

[idpickering]

Further to the above, for those who may prefer it, the RNS is here;

https://www.investegate.co.uk/hsbc-hold ... 00019476D/

Also;

Senior Management Changes.

HSBC Holdings plc (the 'Company') announces that Georges Elhedery is appointed Group Chief Financial Officer (CFO) and an Executive Director of the Board of Directors (the 'Board') from 1 January 2023. Greg Guyett is appointed Chief Executive of Global Banking and Markets (GBM), effective immediately. Ewen Stevenson will be stepping down as Group CFO and Executive Director on 31 December 2022 and will leave HSBC in April 2023.

HSBC has made significant changes over the last three years. It is now more efficient and more competitive. The leadership has repositioned the business by exiting underperforming and non-strategic portfolios, maintaining a tight grip on costs, and investing in areas of growth. HSBC is strongly committed to disciplined strategy execution, cost control and improving profitability. The bank is now well placed to accelerate its financial performance and deliver strong returns for shareholders.

As the bank approaches the end of its three-year transformation programme, the Board has taken the opportunity to review the composition of the Group Executive Committee with a particular focus on long-term succession planning. As a consequence, and having considered the recommendation of the Group Chief Executive, the Board has approved the appointment of a new Group Chief Financial Officer and the consolidation of the leadership of Global Banking and Markets into one role.

https://www.investegate.co.uk/hsbc-hold ... 00079990D/

And;

3Q22 Results Webcast and Conf Call.

HSBC will be holding a webcast presentation and conference call today for investors and analysts. The speakers will be Noel Quinn (Group Chief Executive) and Ewen Stevenson (Group Chief Financial Officer).

https://www.investegate.co.uk/hsbc-hold ... 00069498D/

Ian.

[idpickering]

The results and/or changes above haven't gone down well it seems, with the HSBC SP being down over 3% in HK market.

For me, I thought all of the above were ok, I hold HSBC, and intend topping up my holdings soon.

Ian.

[monabri]

The results and/or changes above haven't gone down well it seems, with the HSBC SP being down over 3% in HK market.

For me, I thought all of the above were ok, I hold HSBC, and intend topping up my holdings soon.

Ian.

The markets over in Asia have been very weak ...China's zero Covid-19 policy ( how they will achieve this I'dont know...are they planning on locking down China 100%, no one in, no one out....forever?).

[monabri]

In this article by The Motley Fool, the author states

https://www.fool.co.uk/2022/10/22/8-3-d ... -dividend/


"The City thinks HSBC will raise 2021’s dividend of 25 US cents per share to 29 cents this year. It is predicted to grow strongly to 44 cents in 2023, too.

At the same time, earnings are predicted to be 76 cents this year and 94 cents next year. This leaves dividend cover ranging between 2.1 and 2.6 times. A reading of 2 times and above provides a decent margin of safety."

Where is the author obtaining this forecast?

[monabri]

The results and/or changes above haven't gone down well it seems, with the HSBC SP being down over 3% in HK market.

For me, I thought all of the above were ok, I hold HSBC, and intend topping up my holdings soon.

Ian.

The markets over in Asia have been very weak ...China's zero Covid-19 policy ( how they will achieve this I'dont know...are they planning on locking down China 100%, no one in, no one out....forever?).

Snippet from today’s Daily Telegraph

https://www.telegraph.co.uk/business/20 ... k-england/

"HSBC has posted better-than-expected profits for the third quarter as rising interest rates boosted its margins on lending. The bank said net interest income – a key measure of profitability – hit $8.6bn (£7.6bn), its best third quarter in more than eight years. This helped lift pre-tax profit by 18pc to $6.5bn.Noel Quinn, chief executive of HSBC, said: "Our strategy produced good organic growth in all three global businesses, and net interest income increased on the back of rising interest rates."

I'm veering towards the influence of China's President ( for life?) and policy on lockdowns and the knock on effect it is having rather than a poor result from the company. Look at Prudential share price fall yesterday.

[Dod101]

In this article by The Motley Fool, the author states

https://www.fool.co.uk/2022/10/22/8-3-d ... -dividend/


"The City thinks HSBC will raise 2021’s dividend of 25 US cents per share to 29 cents this year. It is predicted to grow strongly to 44 cents in 2023, too.

At the same time, earnings are predicted to be 76 cents this year and 94 cents next year. This leaves dividend cover ranging between 2.1 and 2.6 times. A reading of 2 times and above provides a decent margin of safety."

Where is the author obtaining this forecast?

Well of course people tend to just look at the headlines and EPS is well down for the Quarter, and also we have a big increase in net impairments for reasons explained in the text. But looking beyond that, the picture seems better and the commentary is quite positive. After years of very low interest rates for instance we are now seeing them growing which is always good for banks and especially a well capitalised bank like HSBC.

Despite the headline numbers for this quarter it looks as if things are continuing to move in the right direction. It would be good to think that TMF is right.

Dod

[monabri]

President Xi...the modern version of King Canute?

[idpickering]

The results and/or changes above haven't gone down well it seems, with the HSBC SP being down over 3% in HK market.

For me, I thought all of the above were ok, I hold HSBC, and intend topping up my holdings soon.

Ian.

I'm veering towards the influence of China's President ( for life?) and policy on lockdowns and the knock on effect it is having rather than a poor result from the company. Look at Prudential share price fall yesterday.

Maybe so? Thanks for your alternative view on this. HSBC are down 4.4% as I type incidently. That fact won't budge me from my position as a HSBC shareholder though.

Ian.

[monabri]

I'm surprised that the adverse reaction here on the LSE is even more than in HK. I've just made a small top up !