HSBC 02 (0005) (Jun 10 - Dec 27)

[winston]

not vested

<Research Report>Citi Lowers HSBC HOLDINGS TP to $52, with Rating Buy

Citigroup, in its report, lowered the 2016-18 EPS estimates of HSBC HOLDINGS (00005.HK) by 10-18% (2018 ROE estimates at 7.2%) on a lower interest rate outlook and slower growth in the UK, and also lowered the target price of HSBC Holdings by 10% from $58 to $52, with rating Buy.

HSBC has now 8% dividend yield, and the broker expected the DPS payout ratio will be 120% in 2016.

Source: AAStocks Financial News

[winston]

not vested

<Research Report>Deutsche Predicts Brexit Not Yet Cast Material Impact on HSBC HOLDINGS 1H16 Results

Deutsche Bank, in its report, stated that HSBC HOLDINGS (00005.HK) will announce the interim results on 3 August, in which it believed will not be materially affected by Brexit as the incident happened at end-2Q and 70% of HSBC's exposure is non-UK.

However, the broker remained concerned about the revenue growth, cost control and sustainable dividend of 1H16.

Deutsche Bank was of the view that the uncertainties arisen from Brexi mainly affected the sustainability of HSBC's dividend but it believed HSBC still has the capability to declare dividend.

It maintained the US52 cents dividend forecast for this year and rated HSBC at Hold with target kept at $50.

Source: AAStocks Financial News

[behappyalways]

HSBC Currency Traders Got Greedy on Christmas
http://www.bloomberg.com/view/articles/ ... -christmas

[winston]

not vested

Why HSBC is outperforming banks in both Europe and the U.S.

By NIGAM ARORA

Here are the key observations from the financials of HSBC.

Profits: 81% are coming from sources outside Europe.

Revenue: 72% is from outside Europe.

The foregoing means that if Europe improves, profits can take a dramatic jump.

Hong Kong accounted for 38% of profits.

The foregoing means that if China improves, profits can jump dramatically.

The bank is well diversified across the globe.

Source: Market Watch

http://www.marketwatch.com/story/why-hs ... yptr=yahoo

[winston]

not vested

<Research Report>G Sachs Expects HSBC HOLDINGS 2Q Net Profit US$3.075B; Interim Div US10 Cents

Goldman Sachs, in its report, said HSBC HOLDINGS (00005.HK) will announce the result for the second quarter of 2016 on 3 August.

The broker expected a net profit of US$3.075 billion, down 29.5% yearly; with an interim dividend of US10 cents, same with last year.

During the period, the broker expected revenue of US$13.848 billion, showing 18.8% fall yearly.

Goldman Sachs rated HSBC Buy with target price of $57.

Goldman Sachs said there are more provisions and impairment in 2Q, and expected the CET-1 ratio to remain at 11.9%.

Once the proceeds of the completed Brazil disposal are included, this would rise to 12.5%, the mid-point of HSBC's 12%-13% target range.

Source: AAStocks Financial News

[winston]

not vested

<Result Foresight>HSBC HOLDINGS Interim Reported Pre-tax Profit Approx. US$10.4-12.62B

HSBC HOLDINGS (00005.HK) is set to release its interim results for the year ended 30 June 2016 next Wednesday (3 August).

Two brokers expect the bank to pose reported pre-tax profit of US$10.441 billion to US$12.622 billion, down 7.4-23.4% from a year earlier.

Broker/ Half Year Reported Pre-tax Profit Forecast/ YoY Change
Bank of America Merrill Lynch/ US$11.5 billion/ -15.6%
Goldman Sachs/ US$10.441 billion/ -23.4%

Based on 2015 interim reported pre-tax profit of HSBC Holdings at US$13.628 billion

Source: AAStocks Financial News

[winston]

HSBC HOLDINGS Asia Biz Contributes 73.7% of Profit Before Tax

For the six months ended 30 June 2016, HSBC HOLDINGS (00005.HK)'s profit before tax was US$9.714 billion, in which Asia business contributed US$7.155 billion, with the proportion from 69% a year ago rising to 73.7%;

Europe business contributed US$1.579 billion, taking up 16.3%, similar to last year's level.

Proportion of MENA business rose 3.5 ppts to 10.1%, contributing US$985 million, while North America business plunged from 5.1% to 0.5%.

As for Latin America business, the bank recorded US$55 million loss before tax.

Source: AAStocks Financial News

[winston]

not vested

HSBC Profit Slumps 45% in 2Q, Unveils $2.5 Billion Buyback, Ditches Targets

By Robert Guy

HSBC’s (HSBA.UK / 0005.HK) second quarter results didn’t exactly shoot the lights out, but the Anglo-Asian lender did have some good news in store for investors – a $2.5 billion buyback funded by its retreat from Brazil.

That’s as good as it got for investors as the Anglo-Asian lender unveiled a 45% year-on-year decline in pre-tax profit, while also unveiling a plan to deliver a return on equity in excess of 10% by 2017 was being abandoned.

The bank’s Hong Kong-listed shares are down 16% so far this year, though the London-listed shares were up 3.8% in Wednesday trading.

HSBC has focused on building its Asian presence. Here’s chairman Douglas Flint’s take on the company’s China-focused strategy;

Our focus on the Pearl River Delta remains a key priority. We see growing movement in public policy decisions towards needed infrastructure investment on a massive scale, notably through the Belt and Road initiative in China, to underpin increased urbanisation across Asia, the Middle East and Africa, and in support of the transition to a lower carbon economy.

Capital markets development in both Europe and Asia remains essential to diversify funding sources, to address demographic ageing and to expand the role of ‘green’ bond finance.

Outward investment from China is growing fast and is expected to accelerate. Internationalisation of the renminbi is also expected to accelerate as a consequence of all of the above. HSBC is well positioned for all of these mega trends…

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... s-targets/

[behappyalways]

(8% dividend + share buyback???)

滙控棄漸進派息政策　
下半年擲195億回購股份　港英股價造好
http://hk.apple.nextmedia.com/financees ... 4/19722195

[winston]

not vested

HSBC: Up, Up, Carried Away? CLSA Downgrades To Sell

By Shuli Ren

HSBC (5.Hong Kong/HSBC) has gained over 25% since its early July low, as mainland Chinese investors bought through the Hong Kong Shanghai Connect for its 7% dividend yield.

CLSA this morning said the recent rally we saw in Hong Kong banks has been entirely unwarranted and retained its Underweight stance in the sector. In particular, it downgraded HSBC to sell.

Analyst Asheefa Sarangi wrote:

The HK bank rally has largely been in two-parts with BEA, BOCHK and StanChart driving the first leg and BEA, BOCHK and HSBC driving the second leg. The banks have been boosted by improving sentiment with respect to China and commodities, stimulus, regulation, capital progression/distribution, shareholder activism and restructuring potential.

Based on our 16CL forecasts, underlying profitability or pre-impairment profit as a % of average assets will have contracted by 21-62% between 2007-16CL driven by cyclical and structural revenue headwinds and upward pressure on costs…

In addition, asset quality in the banks’ core businesses is expected to deteriorate… We sit as much as 34% below 2017 consensus and remain concerned that there is downside risk to our forecasts. The earnings downgrade cycle is likely to persist.

Among the Hong Kong banks, CLSA likes Hang Seng Bank (11.Hong Kong) the most for its concentration in local retail business, and Standard Chartered (2888.Hong Kong) and Bank of East Asia (23.Hong Kong) the least because of their commodity and China exposure.

Source: Barron's Asia