HSBC
HSBC serves customers worldwide from more than 9,500 offices in 85 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. HSBC is one of the world's largest banking and financial services organisations.
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HSBC profits better than expected, shares jump in London trading
In this morning’s interim statement HSBC (LSE: HSBA) said that profitability for the first nine months of 2009 was stronger than expected with underlying pre-tax profits ahead of the same period last year. HSBC identified its diversified business model and ‘tight cost control’ as influences which ‘continue to deliver broadly based profits’. Investors have welcomed the statement as HSBC shares advanced almost 5% following the news, elsewhere today Barclays shares dropped 2.5% after posting less impressive results.
Unlike the Royal Bank of Scotland (LSE: RBS) and Barclays (LSE: BARC),
HSBC’s loan impairment charges and other credit risk provisions
actually declined and according to HSBC, are at their lowest quarterly
level since Q2 2008.
HSBC said it has maintained its strong
liquidity position, with its published advances-to-deposits ratio
remaining under 80 per cent. The Group's tier 1 ratio increased to 10.3
per cent, and the core equity tier 1 capital ratio strengthened to 9.0
per cent.
HSBC’s Global Banking and Markets division maintained positive
performance from the first half of the year. Highlights include ‘Credit
trading’ revenues which were said to be particularly good, due to
improving credit prices and lower levels of write-downs. The strong
recovery in financial markets appears to have benefited the group’s
equities trading and equity capital markets, HSBC said it has taken
advantage of higher volumes in capital markets to build market share in
both the primary and secondary markets.
According to HSBC, the Asia business continued to perform
strongly, with growth benefiting from its arrangements with mainland
China associates. HSBC remain on target to have opened 100 HSBC-branded
branches in mainland China by the end of the year after opening five
new outlets in the third quarter. HSBC were the first international
banks establish cross-border business in renminbi and the company
expects this market to expand further.
Revenue in Latin America and the Middle East were also said to have ‘held up well’ in slower economic conditions.
HSBC Group Chief Executive, Michael Geoghegan commented on the banking group’s progress over the year to date:
"Thanks to a highly diversified business model, a clear and unchanged strategy and a focus on banking fundamentals, HSBC continues to deliver broadly based profits at this pivotal stage of the business cycle ... Driven by stabilised credit performance in the US, loan impairment charges have fallen to their lowest quarterly level for over a year ... Global Banking and Markets is having a record year. Its distinctive emerging-markets led and financing-focused strategy, consistently applied since 2006, is continuing to deliver results
Other HSBC news
- HSBC to Create Chinese Credit Card Joint Venture with Bank of Communications
2009-10-28 - HSBC buys majority in Indonesia’s Bank Ekonomi for US$607.5 mln
2009-05-23
