atans1

HSBC: Two unfashionable strengths

In Banks on 18/04/2017 at 5:35 am
that keeps on printing money: commercial banking and UK operations.
Even JP Morgan is trying to do more trade financing globally, a sector of commercial banking that is dominated in East Asia by HSBC, StanChart and Citi.
From Bloomberg:

The commercial bank reported a 12 percent increase in adjusted pretax profit to $6.1 billion last year, which was the most among HSBC’s four divisions and accounted for about a third of group’s total earnings, according to company filings. The U.K. contributed $1.8 billion of its pretax profit compared with $2.9 billion in the Asia region.

 

 

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  1. Global banking and markets probably consume half the capital. So be The Cynical Investor, tell HSBC to hive off that division.

    • This should only happen when a bank gets into existenialist crisis like RBS Or Deutsche. In normal situations, too many moving parts, bit like removing tumour on someone with diabetes, high blood, heart problems, )))

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