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Tuesday, January 06, 2009
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unclealbert
Activist
Posts:442
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| 04/08/2008 2:54 AM |
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HSBC, Europe's biggest bank, has seen first-half profits tumble 28pc as economic growth slows in the US and the UK.
I especially like this bit,"Chairman Stephen King said today that ultimately, the real economy will recover from this crisis, although it may get worse before it gets better."
Note the word 'ultimately'.
Sure give it about 12 years.  |
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Asteve
Activist
Posts:930
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| 04/08/2008 4:24 AM |
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With respect to mortgages, bearing in mind that HSBC is one of the world's largest banks, HSBC is not a major player in the UK.
HSBC's share price has been holding up remarkably well - when compared with the likes of HBOS (Halifax/Bank of Scotland); B&B; A&L; RBS and Barclays - over the last year. Almost as if the markets reckon they were behaving more sensibly than the rest.
Of course, the consequence of a mortgage meltdown is not going to be confined or constrained, everyone will feel the fallout from this debacle. Conversely, this is exactly what economies do - I'd argue that the economy doesn't need to "recover" - it is doing exactly what it should be doing: punishing the feckless and reckless. Of course, people are going to suffer - but the time to consider that was back in 1997 and again in 2003 when inflation controls were loosened; government turned a blind eye to a total absence of common sense within the financial services industry - and the regulators neglected their obligations.
Britain is in for a doozy of a time (even compared to the global crisis) and, what's more, it's absolutely deserved.
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unclealbert
Activist
Posts:442
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| 04/08/2008 5:05 AM |
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"HSBC is not a major player in the UK."
Correct. But it's still lent more than A&L and B&B .
"I'd argue that the economy doesn't need to "recover"
But it will have to at some point.
" it is doing exactly what it should be doing: punishing the feckless and reckless."
At this stage.
We've gone up a few notches in the last few months.
"HSBC's share price has been holding up remarkably well"
Really?...
HSBC shares fell 1.9 percent to 821 pence ($16.16) on the London Stock Exchange in Monday morning trading.
http://ap.google.com/article/ALeqM5hlFpKpxvK_zw2XRPiQOUHOMPaahgD92BEEF00
HSBC reports 1H fall in profit
By EMILY FLYNN VENCAT – 44 minutes ago
"LONDON (AP) — HSBC Holdings PLC, Europe's largest bank by market value, reported Monday its steepest fall in profit since 2001 as costs for bad U.S. mortgage loans mounted.
The biggest losses came from the North American market, which HSBC depends on for a quarter of its revenue. Operations there posted a first-half loss of $2.9 billion, compared with profit of $2.4 billion a year ago.
HSBC's aggressive expansion into emerging markets is ongoing: the bank has opened 63 new branches across Asia in the last six months.
Asian financial stocks have fallen by 18 percent since September.
Part of the blame lies with Illinois-based Household International Inc., a lender HSBC purchased in 2003 that elevated the British bank to the unenviable position of biggest U.S. subprime mortgage lender.
It said last week that it still believed in the long-term prospects for Korea and wished to play a major part in the country's further development."
 63 branches in Asia in the last six months.
A very arrogant move I would suggest. Asia will not be immune.  |
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Asteve
Activist
Posts:930
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| 04/08/2008 7:13 AM |
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"HSBC's share price has been holding up remarkably well"
Really?...
Yes, really:
http://finance.google.com/finance?q=LON:HSBA (HSBC Holdings)
http://finance.google.com/finance?q=LON:RBS
http://finance.google.com/finance?q=LON:BARC
http://finance.google.com/finance?q=LON:HBOS
http://finance.google.com/finance?q=LON:BB
http://finance.google.com/finance?q=LON:AL (N.B. something "technical" happened August '07)
HSBC Holdings PLC has done spectacularly well compared with the field, it has lost only 20% of its market capitalisation since its peek.. a price today comparing favourably with 2004.
HBOS, on the other hand, is down 74% from its peek, and has a share price today comparable with half its previous minimum price in its 8 year history.
RBS, as another example, is down 70% from its peek, and has a share price today comparable with early 1997.
Barclays is down 57% from peek, and has a share price comparable with 1997.
B&B - with it's BTL strategy - is down 90% from its peek, and has a share price today comparable with 20% of its previous minimum price inits 8 year history.
Yes, I'd say HSBC's share price is holding up pretty well.
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unclealbert
Activist
Posts:442
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| 05/08/2008 12:40 AM |
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not gonna argue with you we're on the same side. 
http://www.chicagotribune.com/business/chi-tue-hsbc-earningsaug05,0,1693872.story
""The business does not have sufficient critical mass or the pricing power to provide an acceptable return, and so we will not originate further loans," Geoghegan said in a statement."
"HSBC Holdings PLC has done spectacularly well compared with the field, it has lost only 20% of its market capitalisation since its peek.. a price today comparing favourably with 2004."
Overall, the London-based parent said Monday that pretax profit for the first half of the year fell to $10.25 billion from $14.16 billion in the same period a year ago. After-tax profit was $7.7 billion, down 32 percent from $10.9 billion in the year-ago period.
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Asteve
Activist
Posts:930
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| 05/08/2008 7:03 AM |
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Posted By unclealbert on 05/08/2008 12:40 AM not gonna argue with you we're on the same side. ... Overall, the London-based parent said Monday that pretax profit for the first half of the year fell to $10.25 billion from $14.16 billion in the same period a year ago. After-tax profit was $7.7 billion, down 32 percent from $10.9 billion in the year-ago period.
HSBC is not making a loss, this is spectacular when compared to other banks... everything is relative.
I think the point is that when profits dropping by a third makes a company the most successful in a field.
Mind you, today - on news that the taxpayer has just handed another £3bn to Northern Rock (unlikely ever to be seen again) - bank shares rally... right now:
RBS - UP - 6.2%
HBOS - UP - 11.7%
Barclays - UP - 8.5%
If this were fiction it would be dismissed as lacking credibility.
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unclealbert
Activist
Posts:442
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| 05/08/2008 7:35 AM |
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"I think the point is that when profits dropping by a third makes a company the most successful in a field"
...we're really in the sh one t.
Good glad we've cleared that up! |
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