American investors are feeling the impact of tariff threats, as hedge funds funnel money away from domestic tech to international competitors. However, it isn’t just Chinese competitors who are benefiting from the inflationary and tariff squeeze concerns facing the United States—investors are also taking a renewed interest in top European stocks.  In January, the pan-European STOXX 600 rose by 6.3%, beating out the 2.7% increase seen by the S&P 500 index in the same time period. This momentum has continued ...

Core Viewpoint - HSBC shareholders are currently benefiting from strong profitability and a significant re-rate in the market, with shares returning approximately 60% over the past year [1] Group 1: Company Performance - HSBC's profitability remains robust, contributing to its strong market performance [1] - The bank's shares have been standout performers, reflecting a positive market response [1] Group 2: Investment Strategy - The investment approach favors a long-term, buy-and-hold strategy, particularly in stocks that can consistently deliver high-quality earnings [1]

Company Overview - Quantexa is a global leader in Decision Intelligence (DI) solutions, focusing on empowering organizations to make trusted operational decisions using contextual data [5] - Founded in 2016, Quantexa has over 800 employees and thousands of platform users, managing billions of transactions and data points globally [6] Leadership Appointment - Stuart Riley has been appointed to Quantexa's board of directors, replacing Colin Bell [1] - Riley brings 30 years of experience in business and technology strategy, currently serving as Group Chief Information Officer at HSBC [2] Strategic Impact - As Group CIO at HSBC, Riley leads the bank's global technology strategy, focusing on innovative and customer-centric digital solutions [2] - His experience includes roles at Citi, where he led AI initiatives, and senior positions at Deutsche Bank and a technology consulting firm [3] Vision and Goals - Riley emphasizes the importance of fast and intelligent decision-making in today's dynamic business environment, aligning with Quantexa's mission to empower organizations with the right data [4] - Quantexa aims to enhance operational performance with over 90% more accuracy and 60 times faster analytical model resolution compared to traditional methods [6] Financial Performance - An independently commissioned Forrester TEI study found that Quantexa's Decision Intelligence Platform delivered a three-year ROI of 228% for customers [6]

The largest position in our portfolio is HSBC Holdings plc (NYSE: HSBC ), due to its share price going up by 39% over the last 12 months.Analyst’s Disclosure: I/we have a beneficial long position in the shares of HSBC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Long ...

Presentation to Investors and Analysts HSBC Holdings plc 4Q24 Results Business update Georges Elhedery Group CEO Our FY24 performance Business update 4Q24 results Appendix FY24 performance $26.9bn of distributions to shareholders1, on the back of our strong performance Record PBT Earnings Return on tangible equity Distributions Unless otherwise stated, this presentation is presented on a constant currency basis. denotes a measure shown on a reported FX basis. In this presentation, % changes relating to ECL ...

HSBC Holdings plc (NYSE:HSBC) Q4 2024 Earnings Conference Call February 19, 2025 2:45 AM ET Company Participants Georges Elhedery - Group Chief Executive Officer Pam Kaur - Group Chief Financial Officer Neil Sankoff - Global Head of Investor Relations Conference Call Participants Gurpreet Sahi - Goldman Sachs Group, Inc. Kian Abouhossein - JPMorgan Chase & Co. Benjamin Toms - RBC Capital Markets Kunpeng Ma - China Securities Jeremy Hou - CICC Andy Coombs - Citigroup Inc. Amit Goel - Mediobanca Katherine Lei ...

Shareholder Information - HSBC Holdings plc reported a total of 17,946,950,582 ordinary shares outstanding as of December 31, 2024[11]. - The company repurchased 11% of the issued share count since the start of 2023, leading to a total shareholder return of over 30% for the year[102]. - The total dividend announced for 2024 is $0.87 per share, which includes a special dividend of $0.21 per share paid in June[101]. - The Board approved a fourth interim dividend of $0.36 per share, totaling $0.87 per share for 2024, including a special dividend of $0.21[63]. - The company paid $5.5 billion in ordinary dividends for 2024 and plans to repurchase $11 billion of shares for cancellation[188]. - The company announced $26.9 billion in returns to shareholders through dividends and share buy-backs in 2024[121]. Financial Performance - Profit before tax increased by $2.0 billion to $32.3 billion, compared to $30.3 billion in 2023[48]. - In 2024, the company reported a profit before tax of $32.3 billion, up from $30.3 billion in 2023, achieving a return on average tangible equity (RoTE) of 14.6%[125]. - Revenue for 2024 was $65.9 billion, stable compared to 2023, but grew by 5% on a constant currency basis[155]. - Net interest income decreased to $32.7 billion from $35.8 billion in 2023[48]. - Operating expenses rose by 3% to $33.0 billion, primarily due to increased technology investment and inflation[62]. - Revenue in the Wealth segment grew by 18% in 2024, with a 21% increase in fee and other income[105]. - Transaction banking revenue was $26.3 billion, stable compared to 2023, facilitating over $850 billion in trade[162]. - Customer deposit balances reached $1.65 trillion, an increase from $1.61 trillion in 2023, while customer loans decreased slightly to $0.93 trillion from $0.94 trillion[179]. Capital and Risk Management - Common equity tier 1 capital ratio improved to 14.9% from 14.8% in 2023[50]. - The common equity tier 1 (CET1) capital ratio was reported at 14.9%, reflecting the company's financial strength[125]. - The common equity tier 1 (CET1) capital ratio increased from 14.8% to 14.9% as of December 31, 2024, with a target range of 14% to 14.5% over the medium term[188]. - Expected credit losses (ECL) were stable at $3.4 billion, with ECL as a percentage of average gross loans at 36 basis points[62]. Strategic Initiatives - HSBC's strategic priorities include successful execution of planned acquisitions and the integration of acquired businesses into its operations[31]. - The company is focusing on long-term strategic growth by optimizing cost and capital allocation, including the planned sale of several businesses[104]. - HSBC completed the acquisition of Citi's retail wealth management portfolio in mainland China and SilkRoad Property Partners Group in Singapore[174]. - The Group plans to further reshape its operations to align with its four new business segments effective January 1, 2025[175]. - HSBC aims to create a simpler and more dynamic organization by restructuring into four new business units[127]. Economic and Market Conditions - HSBC's financial performance is influenced by changes in economic conditions, including inflationary pressures and fluctuations in employment levels[27]. - Forward-looking statements indicate potential impacts from geopolitical tensions, including the Russia-Ukraine war and conflicts in the Middle East, on HSBC's financial condition and operations[23]. Customer Growth and Engagement - The company added approximately 800,000 new-to-bank customers in Hong Kong, indicating strong customer growth[105]. - In Hong Kong, reported revenue was $21.2 billion, an increase of 6%, with 799,000 new-to-bank customers in WPB, a 66% growth compared to 2023[163]. - Customer accounts increased by $43bn on a reported basis and $75bn on a constant currency basis, primarily driven by growth in Asia[63]. Environmental, Social, and Governance (ESG) Commitments - HSBC is committed to its ESG ambitions, including targets to reduce financed emissions and achieve net zero carbon emissions[31]. - The company is focused on developing sustainable finance and ESG-related products to meet evolving regulatory expectations[31]. - HSBC is on track to achieve a reduction in scope 1 and 2 emissions of over 90% by 2030 compared to the 2019 baseline[198]. - HSBC aims to support customers transitioning to a net zero economy, adapting financing choices to promote resilience and sustainability[200]. - HSBC's reporting currency is U.S. dollars, and it has embedded ESG reporting within its annual financial disclosures[20]. Operational Efficiency - HSBC plans to achieve an annualized reduction of $1.5 billion in its cost base by the end of 2026[58]. - The company targets a mid-teens return on average tangible equity (RoTE) from 2025 to 2027, excluding notable items[64]. - HSBC plans to generate approximately $0.3 billion in cost reductions in 2025, with an annualized reduction of $1.5 billion expected by the end of 2026[184]. - Target basis operating expenses rose by 5%, reflecting higher spend in technology and inflation impact[63]. Market Presence - HSBC has a significant presence in the global market, with shares traded on multiple international exchanges[5]. - The company is registered under the Securities Exchange Act of 1934, ensuring transparency and regulatory compliance[3]. - HSBC's securities are registered on multiple exchanges, including the London Stock Exchange and the New York Stock Exchange[5].

Financial Performance - Profit before tax for 2024 increased by $2.0 billion to $32.3 billion, with notable items contributing a net favorable impact of $1.0 billion[4]. - Revenue for 2024 was stable at $65.9 billion, with constant currency revenue excluding notable items rising by $2.9 billion to $67.4 billion[6]. - In 2024, the profit before tax was $32.3 billion, an increase of $2.0 billion compared to 2023[43]. - Profit before tax for the year ended December 31, 2024, was $32,309 million, an increase of 6.4% from $30,348 million in 2023[85]. - Profit before tax for 2024 was reported at $32.309 billion, compared to $30.348 billion in 2023, indicating a growth in profitability[164]. - Constant currency profit before tax for 2024 reached $32,309 million, an increase from $30,348 million in 2023, representing a growth of 6.5%[96]. - Profit attributable to ordinary shareholders of the parent company was $22,917 million, up from $22,432 million, reflecting a growth of 2.2%[85]. - Basic earnings per share increased to $1.25 in 2024 from $1.15 in 2023, reflecting an increase of 8.7%[85]. - The return on average tangible equity (RoTE) was 14.6%, or 16.0% excluding notable items[63]. Revenue and Income - Revenue for 2024 was reported at $65.854 billion, a slight decrease from $66.058 billion in 2023[34]. - Net operating income before change in expected credit losses for 2024 was $65,854 million, slightly down from $66,058 million in 2023, a decrease of 0.3%[97]. - Total interest received rose to $110,106 million in 2024, compared to $98,910 million in 2023[122]. - Strategic investments in Wealth generated an 18% revenue growth in 2024, with a 21% increase in fee and other income[48]. Expenses and Costs - Net interest income decreased by $3.1 billion to $43.7 billion, reflecting higher funding costs and business disposals[7]. - Operating expenses grew by $1.0 billion or 3% to $33.0 billion, primarily due to higher technology investments and inflation[10]. - Total operating expenses for 2024 were $33,043 million, up from $32,070 million in 2023, an increase of 3.0%[97]. - The constant currency cost efficiency ratio improved to 50.2% in 2024 from 48.5% in 2023[96]. - The company plans to achieve approximately $0.3 billion in cost reductions in 2025, with an annualized reduction of $1.5 billion expected by the end of 2026[22]. Customer Growth - Customer accounts rose by $43 billion on a reported basis, and $75 billion on a constant currency basis, indicating growth across all global businesses[12]. - Customer accounts increased to $1,654,955 million in 2024, compared to $1,611,647 million in 2023, marking an increase of 2.7%[85]. - Customer accounts rose to $1.654 trillion in 2024, up from $1.579 trillion in 2023, showing strong customer growth[162]. Capital and Dividends - The common equity tier 1 (CET1) capital ratio increased to 14.9%, up by 0.1 percentage points, supported by capital generation and reduced risk-weighted assets[13]. - The Board approved a total dividend of $0.87 per share for 2024, including a special dividend of $0.21 per share[14]. - Total dividends paid to shareholders for 2024 amounted to $15.348 billion, an increase from $10.492 billion in 2023, reflecting a per share increase from $0.53 to $0.82[150]. - Dividends on ordinary shares increased significantly to $15,348 million in 2024 from $10,492 million in 2023, representing a growth of 46.5%[85]. Assets and Liabilities - Total assets decreased slightly to $3,017,048 million in 2024 from $3,038,677 million in 2023, a decline of 0.7%[85]. - Total external assets for 2024 were $3,017,048 million, compared to $2,972,547 million in 2023, reflecting a growth of 1.5%[93]. - Total liabilities decreased to $2,824,775 million in 2024 from $2,846,067 million in 2023, a decline of about 0.7%[106]. Taxation - The effective tax rate for 2024 was 22.6%, up from 19.1% in 2023, primarily due to a non-deductible loss from the sale of HSBC Argentina[138]. - The Group recorded a Pillar Two global minimum tax charge of $221 million, related to non-taxation of dividends and income on government bonds in Hong Kong[139]. - The tax impact of the sale of HSBC Argentina increased the tax charge by $1,536 million, while the non-taxable gain from the sale of HSBC Canada reduced it by $1,174 million[137]. Legal and Regulatory Matters - HSBC is involved in various legal proceedings and regulatory matters, with significant claims including $543 million from Madoff Securities and $2.5 billion from Herald Fund SPC[178][180]. - HSBC is defending against claims from the Fairfield Funds seeking $382 million, with some claims dismissed but others ongoing[179]. - HSBC faces litigation from Alpha Prime Fund Limited for $1.16 billion, with actions pending in the Luxembourg District Court[181]. - HSBC is involved in a class action lawsuit related to the manipulation of silver prices, which seeks unspecified damages and is currently pending appeal[193]. - The company is also defending against allegations of anti-competitive behavior in the foreign exchange market, with claims seeking approximately £3 billion in damages[191].

Core Viewpoint - HSBC Holdings reported a significant increase in pre-tax profit for Q4 2024, reaching $2.23 billion, compared to $977 million in the same quarter last year [1] Financial Performance - Total revenues for HSBC were $11.56 billion, reflecting an 11.2% decrease year over year, primarily due to lower other operating income [3] - Operating expenses slightly declined to $8.6 billion [3] - Expected credit losses (ECL) amounted to $1.36 billion, marking a 32.1% increase year over year [3] Business Segment Performance - Wealth and Personal Banking segment reported a pre-tax profit of $2.5 billion, a substantial increase from $175 million in the previous year, driven by higher total operating income [4] - Commercial Banking segment's pre-tax profit was $2.4 billion, down 3.9% from the prior year due to higher ECL charges and increased expenses [4] - Global Banking and Markets saw a pre-tax profit of $1.4 billion, up 37.4% year over year, attributed to higher total operating income [5] - Corporate Centre reported a pre-tax loss of $4 billion, compared to a $2.7 billion loss in the same quarter last year [5] Future Outlook - For 2025, HSBC anticipates banking net interest income (NII) of $42 billion and targets a 3% year-over-year growth in operating expenses [6] - The company expects to incur $1.8 billion in expenses related to business overhaul by the end of 2026, which is projected to yield annualized cost savings of $1.5 billion by the end of next year [6] - ECL charges are expected to be between 30 and 40 basis points as a percentage of average gross loans for 2025 [6] Capital Management - HSBC aims for a return on average tangible equity in the mid-teens from 2025 to 2027, excluding notable items [7] - The company plans to maintain its common equity tier 1 (CET1) ratio within a medium-term target of 14-14.5% [7] - A dividend payout ratio of 50% is expected for 2025, along with a share buyback program of up to $2 billion, likely to be completed by the end of April [7] Competitive Landscape - Competitors like Barclays and UBS reported improved financial results in Q4 2024, driven by increased revenues and lower operating expenses, although they also faced rising credit impairment charges [9][10]

HSBC Holdings PLC (HSBC) has agreed to sell its retail banking operations in Bahrain to the Bank of Bahrain and Kuwait (BBK) in light of the ongoing global restructuring plan. The deal excludes its corporate and private banking businesses in Bahrain. The deal will comprise a transfer of retail loans, deposits and accounts of nearly 76,000 customers to BBK. Financial details of the deal, which is anticipated to be completed in the fourth quarter of 2025, were kept under wraps.This move aligns with HSBC’s tra ...