Hsbc Share Discussion Threads

[porsche1945] 20/6/2021 10:41

Part of a piece from a HK analyst this morning warning on Hsbc shares, saying avoid. JP Morgan shares have returned 420 pc more than Hsbc in 11 years.

Poor cost structure and subsidising losers

Surprise, surprise, this has hurt HSBC given it’s actually a European bank with London headquarters. What shareholders, and investors, should be aware of is that HSBC’s loss-making European business is effectively subsidised by its profitable Asian core operations (focused on Hong Kong and China).

That has been the case for a while and hasn’t changed amid Covid-19. In its latest half-year earnings (for the six months ended 30 June), the bank recorded a loss of US$3.06 billion in Europe while Asia posted a profit before tax of US$7.37 billion.

Even worse, HSBC has been weighed down by costs – a problem that it cannot seem to manage. Its global ambitions have turned it into one of the most inefficient banks in the world.

HSBC’s cost efficiency ratio (basically its costs as a percentage of total revenue) was a whopping 61.8% in the first six months of 2020.

For context, JPMorgan Chase & Co (NYSE: JPM), another global giant of banking, had a cost efficiency ratio that was around 51%.

Perhaps even more amusing was the fact that in its European business, HSBC’s cost efficiency ratio was 101.4%. This means the bank paid out more in costs than it made in sales.

It’s a great example of the inefficiencies and bureaucracy that have plagued HSBC for years. Despite management saying it would cut costs and get lean, nothing much has changed recently

[spud] 20/6/2021 09:15

Having done my due diligence 12 months ago I commenced my accumulation of HSBC. Thus far I have accumulated 65% of my intended holding (20k stock). The story hasn't changed and with the possibility of rising interest rates in the next 18 months, some would say has got even better. I'm happy to buy at £4+ when in all probability we're looking at £6+ a year or so down the track. spud

[luke141] 20/6/2021 08:19

Can you also give some reasoning to buy more HSBC at this time Spud ?

[spud] 19/6/2021 16:21

For those with cash it's another opportunity to buy the dip. spud

[luke141] 19/6/2021 15:37

UK Financials may be reacting to a few things:
Inflation fears. Yield curve. Weak UK retail sales / commodities/ strong USD.
Overreaction imo. HSBC should bounce back early this week.STAN looking VERY cheap (+ buybacks bought at a very cheap ratio). Bill Winters is no slouch. When this stock moves - it flies - so one thing to note - can be volatile in both directions.
Good luck trading this week.

[nigthepig] 18/6/2021 14:02

Thanks for your insight Porsche. I think I'll go for the bar of chocolate.

[spud] 17/6/2021 08:20

HSBC finds buyer to offload to French retail unit - BloombergSource: Alliance NewsHSBC Holdings PLC will sell its French retail business to private equity firm Cerebus Capital Management, Bloomberg reported on Wednesday.spud

[luke141] 16/6/2021 06:17

"(Bloomberg) -- HSBC Holdings Plc was raised to buy by Citigroup Inc. because of the European bank’s “under appreciated” wealth business in Asia, a region that leads the world in minting billionaires.

The U.S. bank estimates that HSBC’s Asia wealth business alone could be valued at $72 billion to $96 billion, or as much as 75% of its market capitalization, according to a report by Citgroup analysts including Yafei Tian."

[toptrump1] 15/6/2021 23:14

Porsche1945 is only sour he can’t get out. His prop value is plummeting whilst uk soar. He will be hit by the expat pension rules and the proposed Spanish prop tax on non nationals I.e the Brits.
He or his type is what’s wrong, no patriotism from the few loud mouth woke brigade.

[geckotheglorious] 15/6/2021 11:40

Techtrader

Without the Brits the Spanish economy would be in an even more dire state. Brit tourism,for starters, keeps much of their economy going.

[techtrader5] 15/6/2021 11:23

Uk stocks expected to outperform Other European markets, full article here:

“—-̶0;

[techtrader5] 15/6/2021 11:08

Spain needs to come out of EU and the euro to save itself. Having an individual currency is a way to stabilise the economy

In 2020, the unemployment rate in Spain was 13.02 percent. Today, Spain has the second-highest unemployment rate of all EU states.

Crime is soaring, the spanish increasingly resent the brits in coastal regions
I have been trying to sell my villa for 3yrs

[toptrump1] 15/6/2021 10:59

How r ur Spanish shrs?

Get your facts straight, they’re Still at 1997 levels 🤣

[toptrump1] 15/6/2021 10:55

I’m 44% up in 9mths so I’m doin ok
Bashing a shr at the lows isn’t very clever but the sun must have frazzled your brain!

Not many trees there is there? And full of chavs My worst nightmare
When will you be returning from Spain then like most your compatriots? That’s if you could afford to - prop prices have soared here matey. Uk mkt has powered since Brexit buddy and we have all been vaccinated. Brits have been sellin up in Spain your prop is worthless now.

And you’ll be the pension losers - is that your beef?

[porsche1945] 15/6/2021 10:28

Working out well for you web toed losers isnt it, should have listened peasants hahahahah

[shouldhavesold] 15/6/2021 09:28

Full of oiks

[xamf] 14/6/2021 19:41

Had him filtered for some time now - my first in nearly 20 years on ADVFN. Not good.
Out of here again for now . Sold out around 440 yesterday as it looked like it was stalling. Good company with great longer term potential. Back in a few days.

[geckotheglorious] 14/6/2021 16:18

TopTrump

"Costa del plonka?"

:)

[spud] 14/6/2021 11:19

He's still there....

spud

[zangdook] 14/6/2021 11:09

Don't know who's being quoted in 10057 but if he thinks the A in SAR stands for Autonomous he needs to go back to primary school.