Report

Update: Business reshaping underway

In June 2015 HSBC announced a significant reshaping of its business to capture future growth opportunities and adapt to structural changes in the operating environment. It has itemised 10 action points to do this and aims to achieve an ROE greater than 10% by 2017, revenue growth greater than cost growth and a progressive dividend. H115 results demonstrate the task facing HSBC and some early signs of progress. H115 PBT increased 10.4% year-on-year on a reported basis and 2.2% on an adjusted basis. HSBC shares have felt the influence of concerns about a slowdown in Chinese growth and its volatile equity markets, and declined 9% in the last three months. Management remains confident about the underlying resilience of Chinese growth. The dividend was maintained at $0.2/share.
Underlying
HSBC Holdings Plc

HSBC Holdings is a financial services holding company. Through its subsidiaries, Co. operates four businesses: Retail Banking and Wealth Management, which serves customers through four businesses: Retail Banking, Wealth Management, Asset Management, and Insurance; Commercial Banking, which provides working capital, term loans, payment services, and international trade facilitation; Global Banking and Markets, which delivers a range of transaction banking, financing, advisory, capital markets, and risk management services; and Global Private Banking, which provides a range of private banking services. At Dec 31 2017, Co. had total assets of US$2.52 trillion and deposits of US$69.92 trillion.

Provider
Edison Investment Research
Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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