Hsbc Share Discussion Threads

[coxsmn] 30/10/2023 07:04

Stellar results

[ariane] 30/10/2023 05:32

TOP NEWS: HSBC launches USD3 billion buyback as quarterly profit jumps

Mon, 30th Oct 2023 05:14


(Alliance News) - HSBC Holdings PLC on Monday reported that quarterly profit more than doubled, but fell short of market expectations, as it prepared to launch a USD3 billion share buyback.

Asia-focused, London-based HSBC said third-quarter pretax profit soared to USD7.71 billion from USD3.23 billion a year before, which HSBC said reflected the positive impact of a higher interest rate environment. However, the figure fell short of company-compiled analyst estimates of USD8.10 billion.

Diluted and basic earnings per share rose to USD0.29 from USD0.10.

"The increase was in part due to a USD2.3 billion impairment in 3Q22 relating to the planned sale of our retail banking operations in France, of which USD2.1 billion was reversed in 1Q23 as the completion of the transaction became less certain. We now expect to reclassify these operations to held for sale in 4Q23, at which point the impairment would be reinstated," the bank explained.

Net interest income rose 15% to USD9.25 billion from USD8.01 billion, as net fee income increased 5.3% to USD3.00 billion from USD2.85 billion. Net operating income climbed 45% to USD15.09 billion from USD10.44 billion, which was short of analyst estimates of USD16.24 billion.

Net interest margin rose to 1.70% from 1.51% a year prior, but slipped from 1.72% in the prior quarter.

At the end of the period, the bank's CET1 ratio rose to 14.9% from 14.2% the year prior, and 14.7% at the end of June. HSBC explained that the increase was due to capital generation, as well as lower risk-weighted assets.

For the period, it will pay out an interim dividend of USD0.10 per share. HSBC also announced its intention to begin a further share buyback of up to USD3.0 billion, which will begin "shortly" and complete at the time of its full-year results announcement on February 21.

In terms of outlook, HSBC said it remains "committed to targeting" a return on average tangible equity in the mid-teens for this year and next, excluding the impact of material acquisitions and disposals.

It maintained guidance of net interest income for 2023 of over USD35 billion, having achieved USD32.61 billion in 2022.

"We have had three consecutive quarters of strong financial performance and are on track to achieve our mid-teens return on tangible equity target for 2023. There was good broad-based growth across all businesses and geographies, supported by the interest rate environment. Our Wealth business also gained further traction, attracting USD34 billion of net new invested assets in the quarter and growing wealth balances by 12% compared with last year," said Chief Executive Officer Noel Quinn.

Shares in HSBC were up 0.4% at HKD58.30 each in Hong Kong before the midday break on Monday.

By Elizabeth Winter, Alliance News senior markets reporter

Comments and questions to [e-mail]

[garycook] 30/10/2023 04:16

Highlights:
Profit before tax up $4.5bn vs 3Q22: the increase reflects the higher interest rate environment and is in part due to the non-recurrence of a $2.3bn impairment in 3Q22 related to the planned sale of our retail banking business in France
Revenue increased by 40% vs 3Q22: this increase was also affected by the factors highlighted above
We approved a dividend of $0.10 – the third interim dividend of 2023 – and are announcing a further buyback of up to $3bn, with the intention to complete this by our full year results announcement
Common equity tier 1 (CET1) capital ratio of 14.9% increased by 0.2 percentage points vs 2Q23
Operating expenses of $8.0bn were $0.2bn higher than in 3Q22
Expected credit losses and other credit impairment charges (ECL) were $1.1bn, broadly in line with 3Q22
Annualised return on average tangible equity (RoTE) was 19.7%, or 17.1% excluding strategic transactions

[klotzak] 29/10/2023 20:00

Indeed spud, quarterlies would also boost demand for the share.

[klotzak] 29/10/2023 19:59

Nice one skinny, it's about time you came up with something useful.Good lad.

[skinny] 28/10/2023 15:22

An update on post 11528.

[coxsmn] 28/10/2023 12:05

Q3 2023 earnings report monday

[skinny] 27/10/2023 13:22

Fingers crossed.

[spud] 27/10/2023 13:17

Looking forward to news on the reintroduction of our quarterly dividend. spud

[skinny] 27/10/2023 12:59

Just an observation - fingers crossed for Monday.

[blackhorse23] 26/10/2023 13:03

Out now & bought WJG

[coxsmn] 26/10/2023 11:46

I.e. in funds they manage but other people own

[coxsmn] 26/10/2023 11:44

They have limited direct exposure

[watfordhornet] 26/10/2023 09:45

I cannot believe HSBC has only little exposure to the China property situation

[fundamentals23] 26/10/2023 09:19

Any thoughts on the HSBC Q3 results next week? Looks like the Standard Chartered impairment on China Bohai Bank and the property sector has spooked the market- did HSBC suggest their exposure was limited to this when last referencing the matter?

I’m quite hopeful HSBC can buck the trend but welcome any thoughts.

[coxsmn] 21/10/2023 07:58

Government haven't said no

[togglebrush] 20/10/2023 11:16

Problems selling HSBA Canada unit to RBC. Government say No. It would make RBC too big etc.

[garycook] 20/10/2023 00:03

Yes another 10c, and maybe news on the Special regarding Canada sell to RBC !

[spud] 19/10/2023 15:05

Should be news on the 4th dividend as they stated reverting to Quarterlies in the last update.

spud

[skinny] 19/10/2023 13:24

Monday 30th October :-

[maxwellman62] 19/10/2023 13:05

HSBC results should be strong this year

[qantas] 17/10/2023 10:55

Bank of America all better results.





Goldman Sachs Reports 2023 Third Quarter Earnings Per Common Share of $5.47 and Annualized Return on Common Equity of 7.1%

Please do your own research as always.

[netcurtains] 11/10/2023 14:37

I also seem to do well with VMUK and Investec.