HSBC is one of the largest banking and financial services organisations in the world. It has around 89 million customers throughout its four global businesses. It consists of 7,200 offices in over 80 countries. HSBC first opened for business in Hong Kong in 1865.
I am dealing with a deceased relatives estate and have had to talk and correspond with MANY, MANY organisations in this regard, and BY FAR THE MOST DIFFICULT to deal with has been HSBC. Conflicting information given by counter staff and evidently poor follow-up by the Bereavement Services Department or perhaps others, has led to explicit instructions for the estate management being delayed (even in comparison to much smaller financial institutions) or not undertaken at all. One can not help but take these things personally in such circumstances. Little wonder international bankers and traders have such a poor reputation - if they are meant to be the cream, it isn't surprising we get the parochial soured dregs at local levels. I note they are closing 3 or 4 local branches here - that bodes well, as interent banking is DEFINITELY the way forward. No sloped shoulders to be seen. HSBC YOU MUST TRY HARDER - especially when dealing with the bereaved of long standing customers. As if you care, that TV campaign to reward customer service excellence is such a poor joke. Poor indeed.
8 Oct '14
FT's Lombard on HSBC
A paper tiger scares HSBC Bosses: Both men, Directors of the U.K. subsidiary of HSBC, are stepping down. Their departures have been represented as protests at tougher regulation of senior bankers. The most eye-catching part of a package endorsed by U.K. regulators this summer is a new offence of criminal recklessness leading to the collapse of a financial institution. Senior, front-line bankers may have little to fear from the mooted law either, since prosecutors would struggle to prove an offence had been committed. But Mark Keidan of Cooke, Young & Keidan, a City law boutique, has a point when he says: “No one wants to be the subject of the test case on where lines should be drawn.” Both men work at a bank whose Chairman Douglas Flint has thundered against spiralling compliance costs. The coincidence is striking. However, HSBC and its Directors are right to make a stand. Their motives may be self-interested, but the effect may be public-spirited. If regulators merely displace capital to the wilder frontiers of shadow banking, they will have amplified systemic risks rather than tamed them.
4 Oct '14
You will probably get your target price for both banks sooner than you think.Banks are like the supermarket sector at the moment what looks like a bargain today turns into a disaster next week hard to call the bottom i think both sectors have changed forever even Lloyds Bank long awaited Dividend promised for next year is starting to look a bit dodgy. Im a large bus company sector investor the introduction of the free Senior Citizens bus pass as been a licence to print money for the bus companies i will wake up one morning my investment will 50% down all because the Goverment have decided to abolish the passess. Thats the risk you take in investing in shares. Good Luck
3 Oct '14
One thing to bear in mind is while I agree its going to be very difficult for some countries to pay back dept no one can predict when this crunch might come, could be days, months, years or decades even. I sold my HSBC a week back and wont buy again unless it's 6 pounds or less. Looking at standard too but want sub 11.00
3 Oct '14
HSBC is complicated bank involved in many countries and continents around the world to relient on Hong Kong and China to volatile for some parts South America and the middle east for the ordinary investor to understand. The city has now realized this and has strongly marked down the shares in both ST Charterd and HSBC in recent times.The $31 Billion cash pile you refer to is not quite the same as company retained profits. You could argue RBS is sat on cash pile of £26 Billion or Nationwide Building Society £8 billion. This is money the Bank does not own and has to pay interest on in the form of Bonds. Your question on the rights Issue is to complicated for me to answer in this thread but if you read about how a highly profitable bank like Barclays had to launch a rights issue 2013 you wont be far of the mark.Just remember a rights issue is a cheap way of raising cash rather than entering the international money markets in the the form of issuing Bonds. Your question on Dividends . HSBC internal costs of running the bank and the new regulations soon to come into force are virtually running out of control. Return on Equity as fallen from 16.3% to 11.6% and the dividend cover is a very low 1.71 (Barclays 2.57) They are selling Banks and closing offices all over the world for one off gains to the company balance sheet . Intense competion from chinese and other Asian Banks. EUROZONE CRISIS The Eurozone crisis never went away it was kicked down the road by the ECB in the hope of enconomic recovery would solve the problem this has not happend or likley to happen Germany has now stalled. France and Italy are now in a steep decline and drowning in Soverign Debt the UK national Debt is also out of control. The only logical answer to these problems is for Haircuts in both Euro and UK debt bourne by the banks and the taxpayer This problem will have to be adressed sooner or later and HSBC will play a big part in it.
3 Oct '14
FT on Virgin Money flotation
Cooler moolah: Dissonance alert: Virgin Money, which has announced its flotation, was this year voted the U.K.’s “coolest bank”. Cool is not a characteristic customers prize in financial institutions. Not going bust matters more. Northern Rock, Virgin Money’s predecessor, was only saved from this doom by a state bailout in 2008. The complaints are premature and miss the point. The government absorbed “Wor Bank”, as Geordies supposedly call it, to help stabilise a tottering financial system. The state’s profit or loss on its sale will not be struck until a state-owned £23 billion legacy mortgage book has run off. Progress has been good so far. Virgin Money’s float should fly (disclosure: the bank is to be chaired by Glen Moreno, who chairs FT Owner Pearson, by mid-2015.) The brand is strong and challenger banks are in vogue. A capitalisation of £1.75 billion represents 1.75 times trailing book value. That multiple is steep, but not extortionate compared with big banks trading at about 1.3 times. Virgin Money is faster growing and more exposed to retail banking’s strong margins.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.