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Gerry557 wrote:I could be the buyback supporting the price slightly but I think the market has risen generally and most reporting I've seen recently has been good with increasing dividends announced.
On banks, Stan and Lloyds following suit.
Dod101 wrote:\
But of course this is not a tender offer so no one is actually selling their shares back to the company at least not knowingly anyway. Most people would think and I am amongst them, that a company ought to be buying back shares at as low a price as possible, below NAV if possible. This benefits continuing shareholders. Why on earth would a dip back to 500p be nice?
Dod
Please forgive me, I don't understand this. HSBC don't "issue" me shares. If I want HSBC shares I have to buy them.GoSeigen wrote:I want a company to issue shares to investors at a low price and buy them back at a high price.
GoSeigen wrote:Dod101 wrote:\
But of course this is not a tender offer so no one is actually selling their shares back to the company at least not knowingly anyway. Most people would think and I am amongst them, that a company ought to be buying back shares at as low a price as possible, below NAV if possible. This benefits continuing shareholders. Why on earth would a dip back to 500p be nice?
Dod
People are actually selling their shares back to the company, whether knowingly or not. The company is at least a large and active counterparty in the market as long as it continues its buyback. All shareholders should be aware of the buyback because they gave their authorisation by majority vote.
I'm not most people. I want a company to issue shares to investors at a low price and buy them back at a high price. If any shareholder doesn't like the price they have the option to exit. These buybacks are generally done close to market price, so there should be both willing buyers and willing sellers around.
"Why on earth would a dip back to 500p be nice?": Because I don't think this share is finished by any means, a price below 500p would add at least 25% to long term returns on new purchases relative to the 630p quoted up-thread. Maybe we'll see even better pricing for a couple of years, who knows?
Anyway, what happened to your plans to exit all the banks Dod? Isn't this the ideal chance to finally dump your HSBC shares having seen them almost double in three years?
GS
monabri wrote:Gerry557 wrote:I could be the buyback supporting the price slightly but I think the market has risen generally and most reporting I've seen recently has been good with increasing dividends announced.
On banks, Stan and Lloyds following suit.
Lloyds has been pretty dreadful over the last 5 years ( total returns)...there's quite a gap between Lloyds and the others.
Source https://www.hl.co.uk/funds/fund-discoun ... ion/charts
csearle wrote:Please forgive me, I don't understand this. HSBC don't "issue" me shares. If I want HSBC shares I have to buy them.GoSeigen wrote:I want a company to issue shares to investors at a low price and buy them back at a high price.
If they have a set amount of cash and use it to buy their own shares back at a high price they will be able to cancel fewer shares than if they had been cheaper, obviously. So this rather long-winded process of pushing the share price up with buybacks, so that it eventually trickles down to raising/sustaining dividends, will surely be less effective?
Are you looking at this in a specific context? Sorry to be so thick, please could you help me?
Thanks,
Chris
PS Personally, because I rarely sell, I would prefer to have the cash as a dividend so that I can choose which shares I consider to be cheap at that moment rather than wait for the process above to have any effect.
monabri wrote:Gerry557 wrote:I could be the buyback supporting the price slightly but I think the market has risen generally and most reporting I've seen recently has been good with increasing dividends announced.
On banks, Stan and Lloyds following suit.
Lloyds has been pretty dreadful over the last 5 years ( total returns)...there's quite a gap between Lloyds and the others.
HSBC Holdings plc ('HSBC') completed the sale of HSBC Bank Canada ('HSBC Canada') and its subsidiaries to Royal Bank of Canada ('RBC') on 28 March 2024.
The sale followed a strategic review of HSBC Canada which concluded the best course of action strategically for the HSBC Group and HSBC Canada was to sell the business. The transaction unlocks significant value for the HSBC Group.
And later;
Subject to finalisation of its results for the first quarter of 2024 ('1Q24') and consideration and approval by the Board, HSBC intends to announce a special dividend of US$0.21 per share together with its 1Q24 earnings release expected to be published on 30 April 2024. This would be in addition to any proposed interim dividend to be considered by the Board and would be expected to be paid at the same time in June 2024 if approved.
HSBC CEO Noel Quinn says he's pushing to improve the lender's wealth management capabilities in China and India to be on par with its key market of Hong Kong. He speaks exclusively with David Ingles at the inaugural HSBC Global Investment Summit.
HSBC Holdings PLC (LON:HSBA) said on Tuesday that it will sell its Argentina business to private financial group Grupo Financiero Galicia (NASDAQ:GGAL) for $550 million, and that the bank will clock a $1 billion pre-tax loss on the disposal.
HBSC’s Latin American unit had entered a binding agreement with Galicia for the deal, the bank said in a statement to the Hong Kong Stock Exchange.
HSBC said it will clock a $1 billion pre-tax loss in the first quarter of 2024 after the disposal, and that after the closing of the transaction, the bank will recognize at least $4.9 billion of historical cumulative foreign currency translation reserve losses.
HSBC Latin America B.V., a wholly owned subsidiary of HSBC Holdings plc, has entered into a binding agreement to sell its business in Argentina to Grupo Financiero Galicia ('Galicia'), the largest private financial group in Argentina.
Noel Quinn, Group Chief Executive, said: "We are pleased to agree the sale of HSBC Argentina. This transaction is another important step in the execution of our strategy and enables us to focus our resources on higher value opportunities across our international network. HSBC Argentina is largely a domestically focused business, with limited connectivity to the rest of our international network. Furthermore, given its size, it also generates substantial earnings volatility for the Group when its results are translated into US dollars. Galicia is better placed to invest in and grow the business.
"We remain committed to Mexico and the US, and to serving our international clients throughout our global network with our leading transaction banking capabilities."
On 21 February 2024, the Directors of HSBC Holdings plc approved a fourth interim dividend in respect of the financial year ending 31 December 2023 of US$0.31 per ordinary share. The dividend is payable on 25 April 2024 to holders of record on 8 March 2024 on the Principal Register in the United Kingdom, the Hong Kong Overseas Branch Register or the Bermuda Overseas Branch Register. The dividend is payable in cash in United States dollars, sterling or Hong Kong dollars, or a combination of these currencies.
Dividends payable in cash in Hong Kong dollars or sterling were converted from United States dollars at the forward exchange rates quoted by HSBC Bank plc in London at or about 11.00 am on 15 April 2024 (US$1=HK$7.826950 and £1=US$1.248559). Accordingly, the cash dividend payable on 25 April 2024 will be:
Approximately £0.248286 per share.
Pursuant to Rule 13.43 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, notice is given that a meeting of a committee of the Board of Directors of HSBC Holdings plc will be held on 30 April 2024 (the "Board Meeting") to consider the announcement of the Earnings Release for the First Quarter 2024 (the "Results") and to consider (i) the payment of a first interim dividend for 2024 on the ordinary shares; and (ii) the payment of a special dividend on the ordinary shares (together the "Dividend").
Subject to the approval and confirmation at the Board Meeting, the Dividend will be payable on 21 June 2024 to holders of record on 10 May 2024 on the Principal register in the United Kingdom, the Hong Kong Overseas Branch register, the Bermuda Overseas Branch register and for holders of American Depositary Shares in New York.
Further details of the Dividend will be detailed in the Results announcement if approved at the Board Meeting.
HSBC Holdings plc ("HSBC" or the "Company") announces that it has purchased for cancellation the following number of its ordinary shares of US$0.50 from Merrill Lynch International ("Merrill Lynch") as part of its buy-back announced on 22 February 2024.
And later;
The Company announces that, following the purchase of these shares, the buy-back has concluded. Since the commencement of the buy-back, the Company has repurchased for cancellation 127,570,463 ordinary shares on the UK Venues at a volume weighted average price of £6.2034 per ordinary share, and 127,412,800 ordinary shares on the Hong Kong Stock Exchange at a volume weighted average price of HK$61.3458 per ordinary share, for a total consideration of approximately US$2bn.
The board has begun a formal process to find a successor, considering both internal and external candidates, according to a statement. Quinn will stay on during this process to ensure a smooth and orderly transition, it said,
Noel Quinn, Group Chief Executive, said:
“I’m pleased with our start to 2024. We completed the sale of our Canada business and agreed the sale of our Argentina business, both of
which allow us to focus on markets with higher value international opportunities. Our good profit performance of $12.7bn in the first quarter has
enabled us to continue the trend of rewarding our shareholders. We have announced a total of $8.8bn of distributions, consisting of a first
interim dividend for 2024 of $0.10 per share, a special dividend of $0.21 per share from the Canada sale proceeds, and a new share buy-back of
up to $3bn. Our 2024 guidance remains unchanged, including a mid-teens return on average tangible equity and continued cost discipline.“
Financial performance (1Q24 vs. 1Q23)
– Profit before tax decreased by $0.2bn to $12.7bn. This included a $4.8bn gain following the completion of the disposal of our banking
business in Canada, inclusive of fair value gains on the hedging of the sale proceeds, partly offset by a $1.1bn impairment recognised in
1Q24 following the classification of our business in Argentina as held for sale. The reduction in profit before tax also reflected the nonrecurrence
of a $2.1bn reversal in 1Q23 of an impairment relating to the sale of our retail banking operations in France, which was
subsequently reinstated in 4Q23 prior to completion, and a $1.5bn gain recognised in 1Q23 on the acquisition of Silicon Valley Bank UK
Limited (‘SVB UK‘).
And later;
First interim dividend for 2024 and special dividend
On 30 April 2024, the Directors approved a first interim dividend in respect of the financial year ended 31 December 2024 of $0.10 per ordinary
share, a distribution of approximately $1.88bn. The Directors also approved a special dividend of $0.21 per ordinary share arising from the
proceeds of the sale of the HSBC banking business in Canada to Royal Bank of Canada which completed on 28 March 2024, a distribution of
approximately $3.95bn. The combined dividend of $0.31 per ordinary share (the ’dividend’) will be payable on 21 June 2024 to holders of record
on the Principal Register in the UK, the Hong Kong Overseas Branch Register or the Bermuda Overseas Branch Register on 10 May 2024.
The dividend will be payable in US dollars, or in pounds sterling or Hong Kong dollars at the forward exchange rates quoted by HSBC Bank plc in
London at or about 11.00am on 11 June 2024. The ordinary shares in London, Hong Kong and Bermuda, and American Depositary Shares
(‘ADSs’) in New York will be quoted ex-dividend on 9 May 2024.
The default currency on the Principal Register in the UK is pounds sterling
HSBC Holdings plc (the 'Company') today announces that Group Chief Executive, Noel Quinn, has informed the Board of his intention to retire from the Company after nearly five years in the role.
As Group Chief Executive, Mr Quinn has overseen a successful transformation of the Bank. During his tenure, HSBC has delivered record profits and the strongest returns in over a decade. He has successfully simplified and focused the Bank, most recently with the sale of the Canada and Argentina operations and built a leading position on sustainability.
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