HSBC (HSBA)

[idpickering]

HSBC 3rd Interim Dividend - Sterling Amount -

7.9529 pence per share

Ex-dividend - 9th November 2023

Dividend Paid - 21st December 2023

https://www.londonstockexchange.com/new ... e/16247100

Ian (I hold).

[Steveam]

From today’s FT:

Canadian government approves sale of HSBC unit to RBC
George Russell in Hong Kong

Ottawa on Thursday approved the $10.2bn sale of HSBC’s assets to Royal Bank of Canada, more than a year after the UK-based, Asia-focused lender announced its exit from the market.

Finance minister Chrystia Freeland said the deal was subject to stringent conditions, including maintaining HSBC’s Canadian workforce, establishing a banking hub in Vancouver and raising its headcount in Manitoba province by 10 per cent.

RBC is also required to boost or maintain French, Mandarin and Cantonese language services.

HSBC, which was Canada’s seventh-largest lender, employs about 4,000 people in the country and provides banking to nearly 800,000 Canadians.

Best wishes, Steve

[idpickering]

UPDATE ON SALE OF HSBC CANADA

On 29 November 2022, HSBC Holdings plc ('HSBC') announced the sale of its business in Canada ('HSBC Canada') to Royal Bank of Canada ('RBC'), subject to regulatory and governmental approvals. On 21 December 2023 the Canadian Federal Government's Minister of Finance approved the sale, with this approval enabling the transaction to proceed.

HSBC and RBC continue to make progress on implementation and the transaction is expected to close in the first quarter of 2024. HSBC remains committed to considering the payment of a special dividend of $0.21 per share as a priority use of the proceeds from this sale in the first half of 2024.

https://www.investegate.co.uk/announcem ... da/7957901

Ian (I hold).

[idpickering]

Here’s why HSBC, and Lloyds, share prices are sinking today.

UK bank stocks were under intense pressure on Monday as investors reacted to ratings downgrades and last Friday’s US bank earnings. Lloyds (LON:LLOY) share price plunged to 43.83p, its lowest point since December 1.

Similarly, HSBC’s stock price collapsed to 592p (November 30th low. The two banks have shed over 8% from their highest level in December. Other British stocks like NatWest (LON:NWG), Barclays (LON:BARC), and Standard Chartered (LON:STAN) remain in the red too.

Lloyds and HSBC (LON:HSBA) shares retreated after some analysts downgraded them as the bank earnings season continued. In a note, analysts at BNP Paribas (EPA:BNPP) said that HSBC had substantial margin risks.

https://uk.investing.com/news/stock-mar ... ng-3298352

HSBC are down over 2% as I type.

Ian (I hold HSBC).

[Steveam]

From today’s FT:

Bank of England fines HSBC £57mn over deposit protection
Oliver Ralph in London

The Bank of England has fined HSBC £57.4mn for failing to correctly identify customer deposits eligible for protection under the UK’s Financial Services Compensation Scheme between 2015 and 2022.

The BoE’s Prudential Regulation Authority said the fine was the second highest it had ever imposed. It said the bank’s failings had “materially undermined the firm’s readiness for resolution” and that HSBC had “failed to be duly open and co-operative with the PRA in not alerting the PRA over an approximately 15-month period about problems identified”.

Sam Woods, chief executive of the PRA said: “The serious failings in this case go to the heart of the PRA’s safety and soundness objective.”

HSBC did not immediately respond to a request for comment.

The amount is not material to HSBC but it’s yet another regulatory failure.

Best wishes, Steve

[Dod101]

From today’s FT:

Bank of England fines HSBC £57mn over deposit protection
Oliver Ralph in London

The Bank of England has fined HSBC £57.4mn for failing to correctly identify customer deposits eligible for protection under the UK’s Financial Services Compensation Scheme between 2015 and 2022.

The BoE’s Prudential Regulation Authority said the fine was the second highest it had ever imposed. It said the bank’s failings had “materially undermined the firm’s readiness for resolution” and that HSBC had “failed to be duly open and co-operative with the PRA in not alerting the PRA over an approximately 15-month period about problems identified”.

Sam Woods, chief executive of the PRA said: “The serious failings in this case go to the heart of the PRA’s safety and soundness objective.”

HSBC did not immediately respond to a request for comment.

The amount is not material to HSBC but it’s yet another regulatory failure.

Best wishes, Steve

I think Sam Woods does not like HSBC very much. I do not in any case understand what the failings of HSBC were. Be interesting to get their side of the story.

Dod

[Steveam]

BBC report …

https://www.bbc.co.uk/news/business-68138476

Best wishes, Steve

[Dod101]

Thanks. Ido not think that from an investor’s point of view this is a big deal. Banks always have disputes outstanding.

Dod

[monabri]

I think Sam Woods does not like HSBC very much.
Dod

Sam "just sign it" Woods - I bet he doesn't like LGEN even more as a result of continuing to pay dividends throughout Covid-19! He cost me a substantial amount in withheld dividends so I've an axe to grind!

[Dod101]

I think Sam Woods does not like HSBC very much.
Dod

Sam "just sign it" Woods - I bet he doesn't like LGEN even more as a result of continuing to pay dividends throughout Covid-19! He cost me a substantial amount in withheld dividends so I've an axe to grind!

Me too, if you are referring to the ban of HSBC.

Dod

[monabri]

Sam "just sign it" Woods - I bet he doesn't like LGEN even more as a result of continuing to pay dividends throughout Covid-19! He cost me a substantial amount in withheld dividends so I've an axe to grind!

Me too, if you are referring to the ban of HSBC.

Dod

HSBC + AVIVA + Lloyds dividends.

[scrumpyjack]

I think Sam Woods does not like HSBC very much. I do not in any case understand what the failings of HSBC were. Be interesting to get their side of the story.

Dod

I'm sure the ill feeling is reciprocated, deservedly. HSBC, being primarily a far east bank, has to respect the laws and customs of China, however much we in the west may disapprove of them. It is probably not relevant for this current fine but there is much to be said for HSBC changing its domicile, or splitting up, as some far east investors have been pushing for. (I have a small holding, but my impression is that they are better run than any of the big UK banks).

[Dod101]

HSBC is going through one of its ‘well run’ episodes but it can have its moments when as in the first decade of this century they went on a stupid expansion which took them years to sort out.
Anyway their results next month should be good. I think Mark Tucker and Noel Quinn make a good combination.

Dod

[idpickering]

FINAL RESULTS FOR 2023 AND CONSIDERATION OF PAYMENT OF FOURTH INTERIM DIVIDEND FOR 2023

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 21 February 2024 (the "Board Meeting") to consider the announcement of the final results for the year ended 31 December 2023 (the "Results") and to consider the payment of a fourth interim dividend for 2023 on the ordinary shares (the "Dividend").

Subject to the approval and confirmation at the Board Meeting, the Dividend will be 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, 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.

https://www.investegate.co.uk/announcem ... ng/8026442

Ian (I hold).

[idpickering]

Heads up! The HSBC CEO is due to be interviewed on Bloomberg TV at 0530hrs (UK) tomorrow morning apparntly.

Ian (I hold HSBC).

[Dod101]

Heads up! The HSBC CEO is due to be interviewed on Bloomberg TV at 0530hrs (UK) tomorrow morning apparntly.

Ian (I hold HSBC).

They announce their results in the middle of our night in order to satisfy their various regulators around the world, particularly in Hong Kong, hence the early start.

Dod

[idpickering]

Results.

HSBC, which has market value of $160 billion, reported on Wednesday a pretax profit of $30.3 billion for 2023, up 78% increase from $17.5 billion a year earlier. The results were worse than the $34.1 billion mean average estimate of brokers compiled by HSBC.

The British lender rewarded investors with a fresh $2 billion share buyback, and said it would consider a special dividend of $0.21 per share in the first half of 2024 once its Canada disposal is complete.
However, the record-high annual profit was marred by a $3 billion impairment on the bank's stake in China's Bank of Communications.

The writedown in the lender's BoCom stake came after a review of the Chinese bank's likely future cash flows and outlook for loan growth and interest margins, HSBC said, amid China's shakier-than-expected economic recovery.

The large write-off came after rival Standard Chartered in October took a nearly $1 billion hit on its own China bank stake, as widening loan losses compress lenders' profits.

https://www.msn.com/en-gb/money/other/h ... 0by%20HSBC.

RNS to follow at 0700hrs (UK) no doubt.

Ian.

[idpickering]

Further to the above, HSBC are down 3.5% on HK market.

Ian.

[idpickering]

HSBC Holdings 2023 Results

Noel Quinn, Group Chief Executive, said:

"Our record profit performance in 2023 enabled us to reward our shareholders with our highest full-year dividend since 2008, three share buy-backs last year totalling $7bn, and a further share buy-back of up to $2bn. This reflected four years of hard work and the strength of our balance sheet in a higher interest rate environment.

We have a strong platform for growth with the opportunities that exist within our two home markets and across our international wholesale, market-leading transaction banking, and wealth management businesses. We are focused on capturing these growth opportunities, improving our earnings sustainability and targeting mid-teens returns in 2024."

And later;

Fourth interim dividend for 2023

On 21 February 2024, the Directors approved a fourth interim dividend in respect of the financial year ended 31 December 2023 of $0.31 per ordinary share, a distribution of approximately $5,913m. The fourth interim dividend for 2023 will be payable on 25 April 2024 to holders on the Principal Register in the UK, the Hong Kong Overseas Branch Register or the Bermuda Overseas Branch Register on 8 March 2024. No liability was recorded in the financial statements in respect of the fourth interim dividend for 2023.

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 15 April 2024.

https://www.investegate.co.uk/announcem ... ts/8047581

Ian.

[Dod101]

The market is never happy and these results are a little below what it was expecting I think but nevertheless are excellent for us shareholders. A big increase in the final dividend and another share buyback. As you have commented elsewhere, a write down in the value of Bank of Communications.

Thanks Ian

Dod