There are several options including "further share sales, similar to the $50 million sale it disclosed last week." Ping An sold HSBC shares worth 391.49 million Hong Kong dollars ($50.19 million) on May 7, cutting its stake from 8.01% to 7.98%. The sale marked the first disposal of shares from Ping An since it backed a 2023 shareholder motion that sought to spin off its Asia business and establish fixed dividends. That motion was eventually defeated. Customers use automated teller machines (ATM) at an HSBC ...

Amid the current financial backdrop, HSBC stock has seen extremely strong gains of 80% from levels of $25 in early January 2021 to around $45 now, vs. an increase of about 40% for the S&P 500 over this roughly 3- year period. HSBC is one of a handful of stocks that have increased their value in each of the last 3 years, but that still wasn't enough for it to consistently beat the market. Returns for the stock were 16% in 2021, 3% in 2022, and 30% in 2023. In comparison, returns for the S&P 500 have been 27% ...

The company did quite well with its initial earnings report of the year.Sprawling international banking conglomerate HSBC Holdings (HSBC 3.32%) pleased the market with its first quarterly-earnings report of 2024, although the company's CEO shocked some with a surprise resignation.Both of these developments occurred well before market open Tuesday. Investors reacted to them by trading the company's U.S.-listed American depositary receipts (ADRs) up by more than 3.3% across the day. That contrasted well with ...

HSBC Holdings’ (HSBC) shares rose Tuesday after the London-based bank surprised the market and said its group chief executive (CEO), Noel Quinn, was stepping down after nearly five years at the helm. The bank said Quinn, a 37-year-veteran at the lender, will stay on as it looks for a successor.  First-Quarter Pretax Profit Declined HSBC, which makes most of its profit from Hong Kong and has pivoted more of its business to Asia under Quinn, also announced Tuesday that pretax profit fell to $12.7 billion ...

HSBC on Tuesday announced the surprise departure of Group Chief Executive Officer Noel Quinn after nearly five years at the helm.In a statement released by the bank, Quinn said:"It has been a privilege to lead HSBC. I never imagined when I started 37 years ago that I would have the honour of becoming Group Chief Executive of this great bank. I am proud of what we have achieved, and it has only been possible because of the talent, dedication, and commitment of the people at HSBC. I want to thank them wholehe ...

Financial Performance - Pre-tax profit decreased by $200 million to $12.7 billion, reflecting a $4.8 billion gain from the sale of Canadian banking operations and an $1.1 billion impairment related to Argentine operations[13]. - Revenue increased to $20.8 billion, up $600 million or 3%, driven by increased customer activity in wealth management and global banking[13]. - HSBC reported a profit of $12.7 billion for Q1 2024, enabling the company to continue returning value to shareholders[19]. - The company announced a total distribution of $8.8 billion, including a regular dividend of $0.10 per share and a special dividend of $0.21 per share from the sale of its Canadian business[19]. - The profit attributable to shareholders for the quarter ending March 31, 2024, is $10,584 million, a decrease from $10,745 million in the same period last year[33]. - The basic earnings per share for the quarter is $0.54, compared to $0.52 in the previous year[33]. - The adjusted profit attributable to ordinary shareholders, excluding significant items, is $6,326 million, up from $4,747 million year-over-year[33]. - The company reported a total off-balance sheet nominal amount of $651,879 million, down from $678,024 million, indicating a decrease of about 3.9%[35]. - The company reported a significant gain of $4.8 billion from the sale of its Canadian banking business, which included various foreign exchange hedging gains[168]. Credit Losses and Provisions - Expected credit losses were $700 million, an increase of $300 million compared to Q1 2023, with an annualized rate of 30 basis points of total customer loans[13]. - The expected credit loss (ECL) for retail is projected at $2.9 billion and for wholesale at $2.3 billion, totaling $5.2 billion[23]. - The expected credit loss total as of December 31, 2023, was $3.0 billion for retail and $2.5 billion for wholesale, reflecting the impact of geopolitical risks and macroeconomic conditions[24]. - The expected credit loss provision was $11,483 million, reflecting a decrease of 29 million[37]. - The expected credit loss provisions for customer and interbank loans were $47 million as of March 31, 2024, compared to $303 million as of December 31, 2023, showing a substantial reduction[35]. - The expected credit loss charge for the first three months of 2024 is $0.7 billion, compared to $0.4 billion in Q1 2023[62]. - The expected credit loss provisions rose to $700 million, an increase of $300 million compared to Q1 2023[137]. - The expected credit loss sensitivity analysis indicates a cautious outlook for the upcoming quarters, with various scenarios considered[58]. Operating Expenses - Operating expenses rose to $8.2 billion, an increase of $600 million or 7%, attributed to continued investment in technology and inflation effects[13]. - The total operating expenses for Q1 2024 were $(8,151) million, a decrease of 6% from $(8,645) million in Q4 2023[86]. - Operating expenses for Q1 2024 were $3,700 million, up 7% year-over-year[129]. - Operating expenses totaled $(7,586) million, which is an increase from $(3,084) million in the same quarter last year[176]. Capital and Shareholder Returns - Common equity tier 1 capital ratio improved to 15.2%, up 40 basis points from Q4 2023, influenced by capital generation and strategic transactions[13]. - The company plans to initiate a share buyback of up to $3 billion, expected to impact the common equity tier 1 capital ratio by 40 basis points[13]. - The board declared a regular dividend of $0.10 per ordinary share and a special dividend of $0.21 per ordinary share, to be paid in June 2024[84]. - The target dividend payout ratio for 2024 is set at 50%, calculated based on earnings per share excluding significant items[91]. - The company does not account for significant items when calculating the dividend payout ratio target[91]. Business Segments and Revenue - The wealth management business had a balance of $1.8 trillion, a 10% increase compared to the same period last year, with net new investment assets of $27 billion in the first three months of 2024[16]. - The trading banking segment generated $6.7 billion in revenue, a 1% increase from Q1 2023, driven by growth in commercial banking and global banking and markets[16]. - The wealth management and personal banking segment generated revenue of $7,164 million, compared to $4,253 million in the previous year[79]. - The commercial banking segment reported revenue of $5,532 million, up from $5,095 million year-over-year[79]. - The global banking and markets segment achieved revenue of $4,455 million, an increase from $3,666 million in the previous year[79]. Economic Outlook and Market Conditions - The company anticipates that GDP growth in North America and Europe will slow in 2024 compared to 2023 due to the delayed effects of interest rate hikes and inflation[29]. - The company expects a slowdown in GDP growth in Hong Kong and mainland China for 2024 due to declining property markets and weak global trade growth[30]. - Inflation in major markets is expected to continue to ease, allowing central banks to begin lowering policy interest rates from mid-2024[30]. - The company is focused on maintaining a robust credit risk model to estimate future credit losses, incorporating various economic scenarios[29]. - The geopolitical tensions, including the ongoing Russia-Ukraine conflict and escalating Middle East situations, continue to pose significant uncertainties for HSBC's operations and risk profile[60]. Strategic Initiatives and Sales - HSBC completed the sale of its Canadian business and reached an agreement to sell its Argentine operations, focusing on high-value international opportunities[19]. - The company plans to sell its Argentine business, with related customer accounts of $1 billion classified as "assets held for sale"[150]. - The company completed the sale of its Canadian banking operations to Royal Bank of Canada, resulting in a gain of $4.8 billion, which includes a reversal of $600 million in currency translation reserve losses and $400 million in other reserve losses[71]. - The sale of the French retail banking business to Promontoria MMB SAS generated a profit participation interest of €100 million ($100 million) for HSBC, with an estimated after-tax loss impact of €100 million ($100 million) from retained loans[70].

The investment-banking sector across the Pacific Ocean isn't exactly thriving.There's apparently trouble on the Eastern front for global banking conglomerate HSBC (HSBC -2.27%), and investors are clearly concerned. On news of layoffs in two major Asian markets, they traded out of the company's stock, to the point where the bank's U.S.-listed shares lost more than 2% of their value.Pink slips coming?HSBC is in the process of laying off a clutch of workers in its investment-banking operations in two of the co ...

KEY TAKEAWAYSHSBC is selling its Argentina business to Grupo Financiero Galicia for $550 million.The sale will result in a $1 billion loss for HSBC in the first quarter of 2024.The deal follows several others as HSBC focuses on higher-growth markets like Asia.  HSBC Holdings (HSBC) will sell its banking operations in Argentina to Grupo Financiero Galicia for $550 million, with the divestment resulting a $1 billion first-quarter loss, the bank said Tuesday. Grupo Financiero Galicia will acquire all of HSBC's ...

Financial Performance - HSBC reported a financial performance with a net profit of $16 billion for 2023, an increase of 30% compared to the previous year[10]. - The bank's return on equity (ROE) improved to 12.5%, up from 9.5% in 2022[10]. - Total revenue reached $40 billion, reflecting a growth of 15% year-over-year[10]. - The group achieved a revenue of 840 billion in 2023, with 470 billion coming from Asia, representing a 34.1% increase in high-tier customer members compared to 2022[23]. - The group reported a return on equity of 14.6%, up from 10.0% in 2022[24]. - The company’s return on equity for 2023 was 14.6%, with a reported return of 15.6% after strategic adjustments[65]. - The overall financial performance in 2023 improved, reflecting the effectiveness of the company's strategies and asset management[64]. - The company reported a benchmark revenue of 303 billion, an increase of 133 billion compared to 2022[84]. - Net income increased by 54 billion, leading to a benchmark revenue of 154 billion, representing a growth rate of 30%[86]. Customer Engagement and Satisfaction - The bank's customer deposits increased by 8% to $1.5 trillion, indicating strong customer confidence[10]. - Customer satisfaction improved significantly, with the company doubling its ranking in the industry[27]. - The total customer base using HSBC services reached 2,944 billion, an increase from 2,107 billion in 2022[23]. - The company processed approximately $500 billion in cross-border payments in 2023, indicating strong market positioning[70]. - The wealth management and personal banking business added over 100,000 new clients in 2023[78]. - 83% of customers utilized digital services, marking a 5 percentage point increase since 2022[97]. - 75% of international clients in wealth management and personal banking opened accounts digitally, reflecting a 30 percentage point increase since 2022[97]. Strategic Initiatives and Expansion - HSBC plans to expand its operations in Asia, targeting a 20% increase in market share by 2025[10]. - The company plans to expand its banking operations in France, with expectations to launch in early 2024[14]. - The company is focusing on expanding its wealth management strategy, particularly in mainland China and the UK banking sector[43]. - The company plans to maintain a strong presence in the Southeast Asian market, leveraging favorable economic conditions[1]. - The company is actively exploring artificial intelligence applications to adapt to significant changes in the financial landscape[62]. - The company is focused on expanding its digital banking services, with 54% of wealth management and personal banking clients actively using mobile services, a 6 percentage point increase since 2022[97]. Sustainability and ESG Commitment - HSBC is focusing on sustainable finance, with a target to provide $100 billion in green financing by 2030[10]. - The company achieved a net zero carbon emissions goal with a sustainable financing amount of $2.583 billion and $361 million related to social activities as of December 31, 2023[27]. - The company aims to achieve a 35% reduction in emissions by 2025 as part of its net zero carbon emissions plan[27]. - The company aims to achieve net zero carbon emissions in its operations and supply chain by 2030, and for its financing projects by 2050[51]. - The company is committed to addressing human rights risks and ensuring all employees have access to digital tools[27]. - The company is committed to providing inclusive banking services and has implemented measures to support clients in understanding their financial options[104]. - The company has established a comprehensive ESG reporting framework to detail actions taken towards its sustainability goals[103]. Operational Efficiency - HSBC's cost-to-income ratio improved to 52%, down from 55% in the previous year, demonstrating operational efficiency[10]. - The company is focusing on enhancing operational efficiency and increasing employee compensation as part of its 2024 business plan[14]. - The cost target for 2024 is set, excluding significant items and reflecting a baseline of 30 to 40 basis points[13]. - The baseline cost of funds decreased by 2% year-on-year, contributing to improved performance metrics[70]. - The company is actively identifying new strategies to enhance capital management and operational efficiency[1]. Shareholder Returns - The bank has set a dividend payout ratio of 50% for 2024, aiming to return more capital to shareholders[10]. - The total dividend for 2023 is expected to reach $0.61 per share, the highest level since 2008, with a payout ratio of 14.8%[70]. - The company has initiated a share buyback program, targeting up to 20% of its capital[13]. - The company returned a total of 190 billion to shareholders through dividends and share buybacks in 2023[84]. Employee Engagement and Development - The company has a workforce of 221,000 employees worldwide[32]. - Employee engagement improved, with a rise of 11 percentage points in 2023 compared to 2020, exceeding the financial services industry benchmark[89]. - 91% of employees reported being able to balance their work commitments, with 62% choosing flexible work arrangements[175]. - The company aims to enhance employee engagement and performance, with 81% of employees expressing confidence in the company, a 4 percentage point increase since 2022[98]. - The company has set a target to achieve 35% representation of senior management roles by 2025, with 34.1% currently held by women[98]. Governance and Compliance - The board of directors has undergone significant changes, enhancing governance and oversight capabilities[1]. - The board has established a governance committee to ensure effective oversight of its governance practices[191]. - The board continues to engage with key stakeholders and has made decisions in line with the requirements of the Companies Act 2006[166]. - The board has prioritized understanding the impact of regulatory changes on the group's strategy and operations[170].

Investment Rating - The investment rating for the company is "Add" [2] Core Views - The company aims for an average tangible equity return of approximately 15% in 2024, with a projected net interest income of at least $41 billion for the banking business in 2024. The target payout ratio for 2024 is maintained at 50%, and the company has announced a share buyback of up to $2 billion [2][3] Financial Performance Summary - For the fiscal year 2023, the total operating income reached $66.1 billion, representing a year-on-year growth of 30.5%. The attributable net profit for ordinary shareholders was $22.4 billion, with a year-on-year increase of 56.4% [2][3] - The net interest margin improved to 1.66%, an increase of 24 basis points year-on-year. The company’s pre-tax profit rose by $13.8 billion to $30.3 billion, while the post-tax profit increased by $8.3 billion to $24.6 billion [3] - The average tangible equity return increased from 10.0% in 2022 to 14.6% in 2023. The liquidity coverage ratio stood at 136%, total capital ratio at 20.0%, and leverage ratio at 5.6% [3] 2024 Outlook - The company maintains a cautious outlook for loan growth in the first half of 2024 but expects a mid-single-digit percentage increase in customer loans year-on-year in the medium to long term. The anticipated credit loss provisions are expected to average around 40 basis points of total loans [3][2] - The company targets a cost increase of approximately 5% for 2024, excluding the impact of the sale of the French retail banking business and the planned sale of the Canadian banking business [3]