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.

No excuse at all' for owning HSBC shares

Jonathan Sibun, 20:46, Friday 11 November 2011

Investors have "no excuse" for owning the shares of HSBC (LSE: HSBA.L - news) and would be better off owning no bank shares at all, according to a leading City analyst.

Ian Gordon of Evolution Securities took a punchy line in a note on HSBC sent to the broker's client yesterday as he recommended they sell any holdings in Britain's largest bank by market capitalisation.

"Never mind the so-called safe haven arguments. There is absolutely no excuse for owning the shares at all," said Mr Gordon.

He argued the bank was unlikely to meet its low-end 2013 return on equity target of 12pc and would also most likely miss a cost efficiency target too.

"The upside risk is relative underperformance, while the downside risk is absolute decline. So why own HSBC when you can just own no banks at all?" said Mr Gordon.

HSBC on Wednesday reported a year-on-year doubling in third quarter profits to $7.2bn (4.5bn). However, once a $4bn accounting gain booked on the bank's own debt was stripped out underlying profits for the three months to the end of September were actually $3bn, down $1.6bn compared to the same period in 2010.

The bank is currently in the process of cutting 30,000 jobs as it attempts to reduce costs. This week the bank began making redundant several hundred staff in its investment banking arm.

Shares in the bank closed up 1.3pc at 503.3p, valuing the bank at 89.9bn

HK&Shanghai Banking Corp FY2011 Results

· Net operating income before loan impairment charges and other credit risk provisions up 12% to HK$147,170m (HK$131,566m in 2010).


· Pre-tax profit up 17% to HK$91,370m (HK$77,885m in 2010).


· Attributable profit up 17% to HK$67,591m (HK$57,597m in 2010).


· Return on average shareholders' equity of 21.6% (21.1% in 2010).


· Assets up 11% to HK$5,607bn (HK$5,040bn at 31 December 2010).


· Capital adequacy ratio of 14.6%; core capital ratio of 12.4%. (Capital adequacy ratio of 14.7%; core capital ratio of 11.7% at 31 December 2010).


· Cost efficiency ratio of 46.1% (45.8% for 2010).



HSBC Bank Canada 2011 Results

FOURTH QUARTER 2011 RESULTSW

· Profit attributable to common shareholders was C$118m for the quarter ended 31 December 2011, an increase of 22.9% over the same period in 2010.

· Profit attributable to common shareholders was C$633m for the year ended 31 December 2011, an increase of 19.2% over the same period in 2010.

· Return on average common equity was 11.8% for the quarter ended 31 December 2011 and 17.0% for the year ended 31 December 2011 compared with 10.8% and 15.5% respectively for the same periods in 2010.

· The cost efficiency ratio was 58.4% for the quarter ended 31 December 2011 and 54.0% for the year ended 31 December 2011 compared with 56.7% and 52.5% respectively for the same periods in 2010.

· Total assets were C$80.0bn at 31 December 2011 compared with C$78.0bn at 31 December 2010.

· Total assets under administration decreased to C$27.4bn at 31 December 2011 from C$32.8bn at 31 December 2010.

· Tier 1 capital ratio of 13.4% and a total capital ratio of 16.0% at 31 December 2011 compared to 13.3% and 16.0% respectively at 31 December 2010.WW

W Results are based on the unaudited financial statements for the period, prepared in accordance with International Financial Reporting Standards ('IFRS'), which the bank adopted on 1 January 2011. All comparative figures, which were previously reported under Canadian generally accepted accounting principles, have been restated to conform with IFRS. For full details of the bank's adoption of IFRS, reference should be made to the bank's audited consolidated financial statements for 2011 which will be published in March 2012. Reference may also be made to the First Quarter 2011 Interim Report issued in May 2011.

The abbreviations 'C$m' and 'C$bn' represent millions and billions of Canadian dollars, respectively.

WW Calculated using guidelines issued by the Office of the Superintendent of Financial Institutions ('OSFI') in accordance with Basel II capital adequacy framework. Risk-weighted assets and ratios at 31 December 2010 have not been restated for the impact of the adoption of IFRS on 1 January 2011.

Just bought in here @547.78

Yes, maybe worth it. Bizarre reaction by the market to good results. Also ex-divi 14th March.

That's my take Harry - I've bought mainly for the dividend as I had a few quid looking for a home!

Bought at 550p, in favour of HL. Not enough spare cash to buy both atm. Will now hold for the divi. Just hope the BARC attempted tax avoidance doesn't drag the sector down.

Nomura summary note:
We regard HSBC’s results as supportive of our investment case. Full year results are broadly in line with our expectations. HSBC reported group PBT of USD 21.9bn, compares with our estimate of USD 22.4bn, similar to the consensus expectation. We see the results as a positive read-across for STAN. Although there is downgrade risk in the sector generally, we see less risk at HSBC and STAN and reiterate our Buy rating on the back of these results.
The outlook statement is more optimistic than usual for HSBC and indicates an expectation of improving the RoE in 2012 and of continued strong growth in Asia, Latin America and the Middle East, although at a slower pace than last year, with a soft landing in China.

Assets were moved from EU and US to Asia. Given the potential for growth and pupolation rise in Asia, the asset prices has gown very fast over there. So the money is moving back to EU and US a couple of times more than what it was originally. You can see house price rise in many cities in the West, New York, LA, London, Stockholm, etc

Just check the profit of companies invested in Asia's infrastructure, you see the growth, like HSBC..

The start of recovery in the US and many EU countries combined with wealth growth will result in smooth recovery over here. The big and respected banks will benefit dramatically.

What do you think?

Yes - HSBA(c) and STAN should be the real winners over the short to medium term.

I don't know enough about how the business is split. I believe that the UK part (ex Midland bank) is about 18% of total turnover, so the rest is presumably Far east/Pacific Basin facing? That's where the growth seems to be for the foreseeable future, so this would sem to be more attractive than the UK/Europe facing banks.
HSBA has a Beta of 1.1, a forecast yield of 4.9% for 2012 and 5.6% for 2013, with an EPS of approx 9%. That seems to be a pretty safe bet, but you never know with the banks!

Harry - interestingly HL have HBSA lunch time ratio at 9.3% sell v 90.7% buys.

GRUPO FINANCIERO HSBC, S.A. DE C.V.
2011 FINANCIAL RESULTS - HIGHLIGHTS

· Net income before taxes for the year ended 31 December 2011 was MXN3,214m, an increase of MXN856m or 36.3% compared with MXN2,358m for 2010. The 2011 results were affected by restructuring of our regional and country support functions. Excluding the effect of these charges, net income before taxes was MXN4,723m, up by MXN2,297m or 94.7% compared with 2010.

· Net income for the year ended 31 December 2011 was MXN2,510m, an increase of MXN391m or 18.5% compared with MXN2,119m for 2010. Excluding the effect of the restructuring charges, net income was MXN3,566m, up MXN1,400m or 64.6% compared with 2010.

· Total operating income, net of loan impairment charges, for the year ended 31 December 2011 was MXN28,813m, an increase of MXN3,361m or 13.2% compared with MXN25,452m for 2010.

· Loan impairment charges for the year ended 31 December 2011 were MXN6,737m, a decrease of MXN2,547m or 27.4% compared with MXN9,284m for 2010.

· Net loans and advances to customers were MXN176.7bn at 31 December 2011, an increase of MXN14.6bn or 9.0% compared with MXN162.1bn at 31 December 2010. Total impaired loans as a percentage of gross loans and advances improved to 2.7% compared with 3.1% at 31 December 2010. The coverage ratio (allowance for loan losses divided by impaired loans) was 214.5% compared with 174.0% at 31 December 2010.

· At 31 December 2011, deposits were MXN297.4bn, an increase of MXN44.2bn or 17.5% compared with MXN253.2bn at 31 December 2010.

· Return on equity was 5.2% for the year ended 31 December 2011 compared with 4.4% for 2010.

· At 31 December 2011, the bank's capital adequacy ratio was 15.3% and the tier 1 capital ratio was 11.7% compared with 14.5% and 11.2% respectively at 31 December 2010.

· From the first quarter of 2011, regulatory requirements issued by the Comisión Nacional Bancaria y de Valores (CNBV) require financial figures for both the insurance and bond companies, HSBC Seguros and Fianzas Mexico respectively, to be presented on a consolidated basis. As a result, 2010 annual results have been re-stated to be comparable with the same period of 2011.

· The sale of HSBC Afore, S.A. de C.V. to Principal Financial Group, S.A. de C.V. was successfully completed in August 2011.

Not sure I made the correct decision here. Was hoping for a pre-divi push to allow for the fall post divi. Looks like we have already started the down trend.

Back into profit again, though not major money (+18p). Ex divi tomorrow which may wipe out my profit! Decisions, decisions..............

how much is divi?

Corrected on edit.

14¢ payable May 2nd.

they pay tomorrow if you hold in CFD account.

Back into profit again, though not major money (+18p). Ex divi tomorrow which may wipe out my profit! Decisions, decisions.............."

Worth remembering that it's never wrong to take a profit as you know Harry never mind what size it is, also market usually drops post ex.divi as you say... and the footsie has had a good up day today. On top of that you can always go back in on the dip... So what did you decide?

I decided to hold for the divi, based on the logic (possibly flawed) that I will get the divi and maybe a small profit if there is a bounce from the ex-divi correction. If I took the profit today, I would only get that & not the divi. Thus, I can profit twice now rather than once!

Be it upon your own head then