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HSBC Strategy

Practical discussions about equity High-Yield Portfolios (HYP) for income
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idpickering
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HSBC Strategy Update

#144963

Postby idpickering » June 11th, 2018, 2:36 pm

HSBC Holdings plc ('HSBC') is today holding an update for investors and analysts. The theme of the update is "Return to Growth and Value Creation".

John Flint, Group Chief Executive, commented:

"After a period of restructuring, it is now time for HSBC to get back into growth mode. The existing strategy is working and provides a strong platform for future profitable growth. In the next phase of our strategy we will accelerate growth in areas of strength, in particular in Asia and from our international network. We will leverage our size and strength to embrace new technologies, investing US$15-17bn primarily in growth and technology, subject to achieving positive adjusted jaws each financial year."


https://www.investegate.co.uk/hsbc-hold ... 30099433Q/

Dod101
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HSBC Strategy

#145379

Postby Dod101 » June 13th, 2018, 8:35 am

HSBC has just released its strategy update (11 June) It is apparently now in 'growth mode' except, it would seem, for its dividend where they say that it will be sustained for the foreseeable future. That would seem to put an end to any prospect of an increase in the near future (it is in fact uncovered so maybe that is not surprising) and also I think to any meaningful increase in the share price. Income seekers need look no further but probably they are looking at an eroding real value, a bit like a meaningful bank deposit (yield around 5.9%, not to be sniffed at).

A bit disappointing really and I will certainly not be adding to my holding (it is quite big as it is) The dividend is of course declared in US Dollars so the sterling amount depends entirely on the exchange rate.

Dod

idpickering
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Re: HSBC Strategy

#145388

Postby idpickering » June 13th, 2018, 9:10 am

Dod101 wrote:HSBC has just released its strategy update (11 June) It is apparently now in 'growth mode' except, it would seem, for its dividend where they say that it will be sustained for the foreseeable future. That would seem to put an end to any prospect of an increase in the near future (it is in fact uncovered so maybe that is not surprising) and also I think to any meaningful increase in the share price. Income seekers need look no further but probably they are looking at an eroding real value, a bit like a meaningful bank deposit (yield around 5.9%, not to be sniffed at).

A bit disappointing really and I will certainly not be adding to my holding (it is quite big as it is) The dividend is of course declared in US Dollars so the sterling amount depends entirely on the exchange rate.

Dod


Morning Dod. My feelings regarding HSBC are very much in line with yours. I have a 'full' weighting of this share in my HYP and am not looking to add to it any time soon, and certainly not selling out either. I am happy though to just let it be, and enjoy the chunky yield as is currently.

Ian.

Dod101
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Re: HSBC Strategy

#145457

Postby Dod101 » June 13th, 2018, 4:22 pm

Sorry Ian. I had not realised that you had reported on this on Monday. I was away all day and did not notice. I find it all a little disappointing that they are not paying more heed to their shareholders. The sharebuyback is not dealing with surplus capital and it is just spending the money they have allocated for dividends anyway by buying more or less the equivalent of the new shares issued to satisfy the requests for scrip dividends. Apart from the good ongoing dividend the shares do not have much going for them. I have a big slug and will certainly not be selling.

Dod

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Re: HSBC Strategy Update

#145467

Postby monabri » June 13th, 2018, 5:56 pm

"We will leverage our size and strength to embrace new technologies, investing US$15-17bn primarily in growth and technology, subject to achieving positive adjusted jaws each financial year."


From WIKI
https://en.wikipedia.org/wiki/Jaws_ratio

"The jaws ratio is a measure used in finance to demonstrate the extent to which a trading entity's income growth rate exceeds its expenses growth rate, measured as a percentage. Strictly speaking it is not a true ratio in that the calculation is not expressed as one number divided by another, and is calculated as follows:

Jaws ratio = Income Growth Rate - Expense Growth Rate

The jaws ratio is significant in that a larger positive value demonstrates that a trading entity is effectively generating more income over time than it is generating expenses, thereby potentially increasing its profitability, and profitability growth rate"


just in case you were wondering (like I was!)


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