Headquartered in London, HSBC is one of the largest banking and financial services organisations in the world. HSBCs international network comprises over 9,800 offices in 77 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. Companby has listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges. Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities.

            Red = 25 day moving average.           Green = 200 day moving average.

Interim Management Statement

Highlights
· Reported PBT up 2% in 3Q14 at US$4,609m compared with US$4,530m in 3Q13.
· Underlying PBT was down US$595m or 12% in 3Q14 at US$4,409m compared with US$5,004m in 3Q13, principally reflecting net movements in significant items (US$1,468m net reduction in PBT).
· Higher 3Q14 revenue in CMB and GB&M - CMB continued to grow, notably in our home markets of Hong Kong and the UK. Strong performance in GB&M was driven by Markets as Foreign Exchange and Equities both benefitted from higher client activity.
· Higher 3Q14 operating expenses - 3Q14 underlying operating expenses were US$11,091m, 15% higher than US$9,608m in 3Q13. Excluding significant items operating expenses increased by 6%, in part reflecting inflation and increases in risk, compliance and related costs.
· Further loan growth - on a constant currency basis we grew loans and advances to customers in 3Q14, notably in CMB in our home markets of the UK and Hong Kong.
· Reported PBT down 9% for 9M14 at US$16,949m compared with US$18,601m for 9M13.
· Underlying PBT down 6% for 9M14 at US$16,969m compared with US$18,014m for 9M13, primarily due to the effect of net movements in significant items (US$2,275m net reduction in PBT).
· Earnings per ordinary share and dividends per ordinary share (in respect of the period) for 9M14 were US$0.67 and US$0.30, respectively, compared with US$0.71 and US$0.30 for 9M13. The third interim dividend was US$0.10 per ordinary share.
· Return on average ordinary shareholders' equity 9M14 annualised return was 0.9ppts lower at 9.5%, compared with 10.4% for the equivalent period in 2013.
· Strong capital position - at 3Q14, the CRD IV transitional basis CET1 capital ratio remained at 11.2%, consistent with 30 June 2014. The end point CET1 capital ratio was 11.4%, up from 11.3% at 30 June 2014. This largely reflected internal capital generation that was adversely affected by foreign exchange movements.

I dumped these a few days ago.


http://www.theguardian.com/business/2015/feb/10/hsbc-files-swiss-bank-aggressive-marketing-clients-avoid-new-tax

HSBC files: Swiss bank aggressively pushed way for clients to avoid new tax
Far from acting as passive party to clients’ tax schemes, HSBC Suisse marketed device to effectively sabotage European savings directive

Final Results Monday 23rd February.

2014 Results Highlights

· Reported profit before tax ('PBT') down 17% in 2014 at US$18,680m, compared with US$22,565m in 2013. This primarily reflected lower business disposal and reclassification gains and the negative effect, on both revenue and costs, of significant items including fines, settlements, UK customer redress and associated provisions.
· Adjusted PBT was broadly unchanged in 2014 at US$22,829m and excludes the year-on-year effects of foreign currency translation and significant items, compared with US$22,981m in 2013.
· Earnings per share and dividends per share in respect of the year were US$0.69 and US$0.50 respectively, compared with US$0.84 and US$0.49 for 2013.
· Return on equity lower at 7.3%, compared with 9.2% in 2013.
· Stable revenue - 2014 adjusted revenue of US$62,002m compared with US$61,854m in 2013, underpinned by growth in Commercial Banking, notably in our home markets of Hong Kong and the UK.
· Loan impairment charges were lower reflecting the current economic environment and the changes we have made to our portfolio since 2011.
· Higher 2014 operating expenses - adjusted operating expenses in 2014 were US$37,854m, up 6.1% from US$35,682m in 2013, due to increased regulatory and compliance costs, inflationary pressures and investment in strategic initiatives to support growth.
· Capital - the common equity tier 1 capital ratio (CRD IV transitional basis) was 10.9% at 31 December 2014, up from 10.8% at 31 December 2013.

AGM Statements

AGM Statements

FIRST QUARTER 2015 EARNINGS RELEASE AUDIO WEBCAST AND CONFERENCE CALL

Earnings Release

Highlights
· Reported PBT up 4% in the first quarter of 2015 ('1Q15') at $7,059m compared with $6,785m in the same period in 2014 ('1Q14').
· Adjusted PBT up $349m or 5% in 1Q15 at $6,892m, compared with $6,543m in 1Q14, primarily reflecting higher revenue of $661m and lower loan impairment charges of $136m, partly offset by higher operating expenses of $483m.
· Reported PBT of $7,059m is up by $5,328m compared with $1,731m in 4Q14. Adjusted PBT of $6,892m is up by $3,988m or 137% compared with $2,904m in 4Q14, led by higher revenue in GB&M following a challenging fourth quarter in 2014.
· Earnings per share and dividends per ordinary share for 1Q15 were $0.26 and $0.10, respectively, compared with $0.27 and $0.10 for the equivalent period in 2014.
· Return on average ordinary shareholders' equity (annualised) was 0.2ppts lower at 11.5%, compared with 11.7% for the equivalent period in 2014.
· Adjusted revenue of $15,406m was higher by $661m or 4% from 1Q14 driven by revenue growth in GB&M, including an 8% rise in Markets, in CMB primarily in Hong Kong and the UK, and in Principal RBWM.
· Adjusted operating expenses of $8,526m were up by $483m or 6% from 1Q14 due to higher staff costs, partly reflecting an increase in staff numbers in customer-facing roles and in Regulatory Programmes and Compliance, and increased marketing expenditure to support growth.
· Loans and advances to customers, excluding foreign exchange movements, increased by $17,353m from 31 December 2014.
· Capital - The CRD IV end point CET1 capital ratio was 11.2%, up from 11.1% at 31 December 2014.
· Leverage ratio - The leverage ratio was 4.9%, up from 4.8% at 31 December 2014.

HSBC warns bank levy puts the brakes on dividend

HSBC to slash investment bank, lowers return targets

HSBC Profits Up http://www.moneyam.com/action/news/showArticle?id=5143674

Almost everything beat expectation, and 30% profit rise but the share price is lower!!

Any reason?

Although it has been regularly threatened, it seems HSBC are slightly more likely this time to relocate to Hong Kong.

The market looks ahead, so good results can often be marked down apparently ahoj.

Nomura comment:
"HSBC has missed on an underlying basis, with headline numbers propped up by USD 1.1bn gain on own debt amongst other items. Pre-provision profits missed by 7% or USD 0.4bn, as revenue weakness (5% miss, USD 0.7bn weaker) was offset partly by costs (4% beat, USD 0.3bn lower). Underlying PBT came in at USD 5512mn versus consensus of USD 5653mn – a 2% miss, driven mainly by a 23% beat on the impairments line. We expect these results to lead to downgrades, as we had expected prior to results. Even prior to accounting for miss, we were USD 1.4bn or 5% below 2017 consensus pre-provision profits. That said, some of the weakness is already reflected in the 2HTD performance.
We see HSBC making a c11% ROTE by 2018, with higher rates adding to this over time. So expect HSBC to trade at just over 1x P/TB in the medium term before investors give it benefit for growth. Dividends are the main source of support for the stock and management are well aware of that. Despite that, dividends could still be at risk depending on macro-economic environment. That said, current yields are at a very attractive level (before adjusting for scrip). We expect the stock to be range bound in the near term, with risks to the downside."

Merrill Lynch comment:
"HSBC reported net profit of $5.5bn which was comfortably ahead of forecasts - something of a relief that a major global bank can produce a decent set of results in what has hitherto generally been a dismal quarter. BofAML Underweight-30% senior CDS at +67bps.
Bottom line
Revenues were in fact lower across the board but were particularly impacted by lower Wealth Management in HK and lower FICC, the latter being a feature of the sector this quarter. Costs helped, coming in lower than expectations. The cost-income ratio was 54.4%.
Issues to consider
• YTD, the ROTE (stated) is a respectable 12.1%.
• CET1 edged up to 11.8%, closer to where we think HSBC needs to be. Internal capital generation plus 'RWA initiatives' more than offset the dividend, RWA growth and FX effects to deliver this higher ratio.
• No evidence of any impact from any slowdown in China this quarter. Asian provisions were 0.13% compared to 0.19% in 3Q14. Exposure to China is $96bn of which $53bn in loans. The exposure to HK is $635bn, with RE being a big chunk of that. We see limited read-across to Standard Chartered as the banks are so different. We note significant speculation in the UK weekend press (e.g. The Sunday Times) on the results of SC and the possibility of a capital increase.
• LatAm provisions were comparatively well behaved too (ex Brazil which is being sold) at 2.17% versus 3% the previous year.
• The bank may take until next year to decide on its domicile, so we may have to wait for the 4Q report next year for more details. There have been several concessions by the UK Government to accommodate global banks like HSBC."

HSBC to keep headquarters in London http://www.bbc.co.uk/news/business-35575793

No surprise there then.

2015 RESULTS HIGHLIGHTS

· Reported PBT up 1% in 2015 at $18,867m, compared with $18,680m in 2014. This primarily reflected a favourable movement in significant items.
· Adjusted PBT down 7% at $20,418m, compared with $21,976m in 2014.
· Adjusted revenue up 1% at $57,765m, compared with $57,227m in 2014. The increase was mainly in client-facing GB&M (7%), CMB (3%) and Principal RBWM (2%).
· Adjusted loan impairment charges up 17% at $3,721m, compared with $3,168m in 2014. The increases were across a number of countries, reflective of local themes and characteristics.
· Adjusted operating expenses up 5% at $36,182m reflecting wage inflation, business growth and investment in regulatory programmes and compliance. Excluding the UK bank levy, adjusted operating expenses in the second half of 2015 were broadly in line with the first half of the year reflecting strong cost management and the initial effect of our cost saving programmes.
· Return on equity of 7.2%, compared with 7.3% in 2014.
· Earnings per share and dividends per ordinary share in respect of the year were $0.65 and $0.51, respectively, compared with $0.69 and $0.50 for 2014.
· Strong capital base with a CRD IV end point CET1 capital ratio of 11.9% at 31 December 2015, up from 11.1% at 31 December 2014.
· Leverage ratio remained strong at 5.0%.
· Clearly defined actions to capture value from our network and connecting our customers to opportunities.
- Progress on reducing Group RWAs with a $124bn reduction or 45% of our 2017 target achieved.
- Signed agreement to sell operations in Brazil.
- Revenue from transaction banking products up 4% highlighting value and potential of our international network.
- Development of Asia Business gaining momentum. Revenue growth in excess of GDP in majority of Asian markets.

I took a SB on HSBA this morning, which I've just closed for +15 points - not a fortune - but it lessons the impact of the current / purchase price difference!

Shore Capital Sell 447.60 - - Reiterates

Investec Buy 447.60 540.00 - Retains

Nomura Neutral 447.60 - - Retains

Well done skinny, I didn't have the nerve!

Thanks kim - the yield is quite compelling here now!

Beaufort Securities Buy 450.53 - - Reiterates

Barclays Capital Equal weight 450.53 550.00 550.00 Reiterates

Deutsche Bank Hold 450.53 500.00 437.00 Reiterates

JP Morgan Cazenove Underweight 450.53 430.00 410.00 Reiterates