HSBC (HSBA)

[idpickering]

The market is never happy and these results are a little below what it was expecting I think but nevertheless are excellent for us shareholders. A big increase in the final dividend and another share buyback. As you have commented elsewhere, a write down in the value of Bank of Communications.

Thanks Ian

Dod

You're welcome Dod. Todays' fall in HSBA SP won't budge me from holding the shares. I'm toying with topping up my HSBA holdings.

Ian.

[idpickering]

Just to close off my comment about topping up my HSBC holdings, I just did that by 25%. I get such chat isn't news as defined by this board. I just wanted to finish off that chat.

Ian.

[Dod101]

I find it remarkable on a day when we have had lot of company results there is hardly a single comment on any of them.

However you look at the results of HSBC they are surely great news for shareholders. The write down/ impairment in value of Bank of Communications is unwelcome but does not affect the cash resources of the Bank and has enabled them to make generous dividend promises and the share buyback.

The yield must now be in the order of 10% and yet the share price keeps going south. Quite incredible. Or I must be missing something?

Dod

[simoan]

I find it remarkable on a day when we have had lot of company results there is hardly a single comment on any of them.

However you look at the results of HSBC they are surely great news for shareholders. The write down/ impairment in value of Bank of Communications is unwelcome but does not affect the cash resources of the Bank and has enabled them to make generous dividend promises and the share buyback.

The yield must now be in the order of 10% and yet the share price keeps going south. Quite incredible. Or I must be missing something?

Dod

What is there to say about the results of a bank though? I would think virtually no-one on this forum can read and understand the income statement or balance sheet of a bank. The dividend actually came in lower than analyst estimates of 63 cents, as did most other metrics including revenue and earnings per share. However, all that matters on results day are the forward looking statements, and as we have seen with other companies, a large asset write down really spooks the horses. More to come? Good luck with properly valuing a Chinese bank! And as for the results being great news for shareholders, I don't need to show you a long-term chart of the share price...

[Dod101]

I find it remarkable on a day when we have had lot of company results there is hardly a single comment on any of them.

However you look at the results of HSBC they are surely great news for shareholders. The write down/ impairment in value of Bank of Communications is unwelcome but does not affect the cash resources of the Bank and has enabled them to make generous dividend promises and the share buyback.

The yield must now be in the order of 10% and yet the share price keeps going south. Quite incredible. Or I must be missing something?

Dod

What is there to say about the results of a bank though? I would think virtually no-one on this forum can read and understand the income statement or balance sheet of a bank. The dividend actually came in lower than analyst estimates of 63 cents, as did most other metrics including revenue and earnings per share. However, all that matters on results day are the forward looking statements, and as we have seen with other companies, a large asset write down really spooks the horses. More to come? Good luck with properly valuing a Chinese bank! And as for the results being great news for shareholders, I don't need to show you a long-term chart of the share price...

Well, as an income investor I find the results very attractive. This is I imagine is a fairly widely held share certainly amongst the HYP community and yet there is not a cheep. I find that very strange. If you are to hold a bank then this is probably a decent one to hold, but the market is agin it for most of the time. This bank is probably one of the best capitalised around and is run very conservatively to cover just the sort of write off we have seen this morning. Oh well……..

Dod

[monabri]

I find it remarkable on a day when we have had lot of company results there is hardly a single comment on any of them.

However you look at the results of HSBC they are surely great news for shareholders. The write down/ impairment in value of Bank of Communications is unwelcome but does not affect the cash resources of the Bank and has enabled them to make generous dividend promises and the share buyback.

The yield must now be in the order of 10% and yet the share price keeps going south. Quite incredible. Or I must be missing something?

Dod

I make the yield c.8.2% based on 61cents over the last 12 months ( shareprice 590p : $1= £0.79164)

Including a 21 cent 'special ' would bring the yield on offer for new share purchases to a tad over 11%.

[simoan]

I find it remarkable on a day when we have had lot of company results there is hardly a single comment on any of them.

However you look at the results of HSBC they are surely great news for shareholders. The write down/ impairment in value of Bank of Communications is unwelcome but does not affect the cash resources of the Bank and has enabled them to make generous dividend promises and the share buyback.

The yield must now be in the order of 10% and yet the share price keeps going south. Quite incredible. Or I must be missing something?

Dod

I make the yield c.8.2% based on 61cents over the last 12 months ( shareprice 590p : $1= £0.79164)

Including a 21 cent 'special ' would bring the yield on offer for new share purchases to a tad over 11%.

I think you're really stretching for the positives here. The news this morning was not good. The special dividend is a one-off caused by the sale of assets, so is just a return of capital. I know that will blow some peoples minds...

[Dod101]

I make the yield c.8.2% based on 61cents over the last 12 months ( shareprice 590p : $1= £0.79164)

Including a 21 cent 'special ' would bring the yield on offer for new share purchases to a tad over 11%.

I think you're really stretching for the positives here. The news this morning was not good. The special dividend is a one-off caused by the sale of assets, so is just a return of capital. I know that will blow some peoples minds...

Both monabri and I may be doing that but there is more than enough negativity around. The only poor news this morning that I could see was the write down re Bank of Communications. Everyone knows that the Chinese economy is struggling so impairments like that can hardly be a surprise. Otherwise the news was good all round and that impairment charged has no effect on the hard cash in the business.

Dod

[simoan]

I think you're really stretching for the positives here. The news this morning was not good. The special dividend is a one-off caused by the sale of assets, so is just a return of capital. I know that will blow some peoples minds...

Both monabri and I may be doing that but there is more than enough negativity around. The only poor news this morning that I could see was the write down re Bank of Communications. Everyone knows that the Chinese economy is struggling so impairments like that can hardly be a surprise. Otherwise the news was good all round and that impairment charged has no effect on the hard cash in the business.

Dod

So, apart from missing expectations for revenue, profits and dividends, everything was good? That sounds like the worst kind of denial. I feel sorry that people are so wedded to dividends they can't see what a poor quality business HSBC is, or any bank for that matter.

[simoan]

You really couldn't make it up: https://uk.finance.yahoo.com/news/hsbc- ... 34274.html

UK corporate earnings should grow "marginally faster" than consensus estimates, HSBC said, warning, however, that further upside would be limited. Against this backdrop, HSBC downgraded the UK banks sector to "underweight" from "neutral"

[MrFoolish]

You really couldn't make it up: https://uk.finance.yahoo.com/news/hsbc- ... 34274.html

UK corporate earnings should grow "marginally faster" than consensus estimates, HSBC said, warning, however, that further upside would be limited. Against this backdrop, HSBC downgraded the UK banks sector to "underweight" from "neutral"

They are not saying UK banks will fall in value, just that they believe there's better value in the wider economy. Would you prefer they hyped up their own sector? And HSBC isn't a straight UK bank play anyway.

[Gerry557]

Yes the results were mixed and I didn't see an 8% fall in the share price. I might have to go through the webcast a bit more as I didn't have time fully today.

Still it is looking better for shareholders who have not had the best of times and I took the opportunity to add another tranche. Rote in the mid teens, 8% yield and a special soon also helped. OK that's my own money back so I can reinvest back in advance.

I don't expect the SP to remain down here for the buyback though mores the pity.

Hopefully there will be less shock going forward but then it seems to be more common

[monabri]

Interesting to see the shares marked down 3.8% in HK and 8.4% here.

[Dod101]

Interesting to see the shares marked down 3.8% in HK and 8.4% here.

That is very interesting. As usual we seem to be looking for the worst in a share. Mind you, I think most of the HK holders are anxious for the dividend and are much less concerned about the capital values anyway. As an elderly investor I am in the same situation which is where shrill negative comments give the wrong impression. Of course from a share price point of view HSBC is not very attractive but it is back to throwing off good dividends.

Horses for courses as always.

Dod

[idpickering]

Both monabri and I may be doing that but there is more than enough negativity around. The only poor news this morning that I could see was the write down re Bank of Communications. Everyone knows that the Chinese economy is struggling so impairments like that can hardly be a surprise. Otherwise the news was good all round and that impairment charged has no effect on the hard cash in the business.

Dod

I agree with your comments Dod. As for your earlier comment re HSBC being a decent bank to hold, I agree with that too, so much so that they're the only bank I hold.

Ian.

[idpickering]

HSBC Holdings PLC – Share buy-back

HSBC Holdings plc ("HSBC") announces that, as outlined in its announcement on 21 February 2024, it will commence a share buy-back of HSBC's ordinary shares of US$0.50 each ("Ordinary Shares") for up to a maximum consideration of US$2,000,000,000 (the "Buy-back"). The purpose of the Buy-back is to reduce HSBC's outstanding Ordinary Shares.

https://www.investegate.co.uk/announcem ... ck/8051377

Ian.

[Dod101]

The share price is slowly recovering and is just touching £6.30 in London. Good news for shareholders but not so good for the share buyback currently underway.

Dod

[GoSeigen]

The share price is slowly recovering and is just touching £6.30 in London. Good news for shareholders but not so good for the share buyback currently underway.

Dod

If I'm going to dispose of my shares to the company I want the price to be high not low. They should do the buyback at as high a price possible, and if any investor doesn't want to hold as a result then simple: use the liquidity to sell. A dip back to 500p or so after this buyback would be nice...


GS

[Dod101]

The share price is slowly recovering and is just touching £6.30 in London. Good news for shareholders but not so good for the share buyback currently underway.

Dod

If I'm going to dispose of my shares to the company I want the price to be high not low. They should do the buyback at as high a price possible, and if any investor doesn't want to hold as a result then simple: use the liquidity to sell. A dip back to 500p or so after this buyback would be nice...


GS

But of course this is not a tender offer so no one is actually selling their shares back to the company at least not knowingly anyway. Most people would think and I am amongst them, that a company ought to be buying back shares at as low a price as possible, below NAV if possible. This benefits continuing shareholders. Why on earth would a dip back to 500p be nice?

Dod

[Gerry557]

I could be the buyback supporting the price slightly but I think the market has risen generally and most reporting I've seen recently has been good with increasing dividends announced.

On banks, Stan and Lloyds following suit.