RE: Buy backs26 Aug 2016 17:00
I am not a signed up member cannot get passed page 2 ...lol like this from USD 6 Billion US DOLLARS !!
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Source: HSBC Q2 2016 Results - Earnings Call Transcript
The announced buyback should also reassure investors of HSBC's ability to maintain the $0.51 dividend, corresponding to a 7% dividend yield, based on current share prices.
We expect another buyback to follow in 1H17
We expect a repeat of the announced buyback in 1H17 following regulatory approval to dividend surplus capital from the US unit back to the group.
On our estimates, there could be up to $6bn of surplus capital in the US business and we expect it to be returned to shareholders in a buyback in 1H17. The company's 10-Q filings show that HSBC USA holding company had a CET1 ratio of 16.5% at Q2 2016. Given that each 1% reduction in the CET1 ratio of the US unit would allow around $1.5bn of capital to be repatriated, HSBC could release up to $6bn, while leaving the US unit with a still conservative 12% CET1 ratio.
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