High Street five support B&B fundraising
by Gill Montia
Story link: High Street five support B&B fundraising
Bradford & Bingley (B&B) will receive the support of the UK’s five largest High Street banks in its troubled fundraising event.
The buy-to-let lender originally planned to raise £330 million from shareholders in a rights issue but had to redraw its plans when a profit warning left its share price plummeting close to the issue price.
The […]
HSBC faces shareholder revolt over remuneration
by Gill Montia
Story link: HSBC faces shareholder revolt over remuneration
HSBC is facing a shareholder rebellion over the remuneration of its executives.
The bank will hold its annual general meeting on 30th May and Pirc, the body that provides advice on corporate governance, is urging investors to vote against HSBC Holdings’ remuneration report.
Pirc regards the level of potential awards contained in the report as excessive and […]
HSBC accused of overvaluing loans by $30bn
by Gill Montia
Story link: HSBC accused of overvaluing loans by $30bn
HSBC’s activist shareholder, Knight Vinke, has responded to yesterday’s news that the bank has written down a further $3.2 billion in mortgage-related losses by demanding that HFC, the group’s US consumer finance arm, should be sold.
The fund manager has also accused HSBC of having not made an accurate value adjustment on its loans to customers […]
HSBC writes down $5.8bn on US business
by Gill Montia
Story link: HSBC writes down $5.8bn on US business
HSBC has added $5.8 billion to the $14 billion it has already written down in relation to its US business.
The bank’s chairman, Stephen Green, admitted that the US is likely to fall into a recession during 2008 and that the country’s housing market may not recover until at least 2009.
A statement also confirmed that the […]
HSBC launches Cash e-ISA at 6% AER
by Gill Montia
Story link: HSBC launches Cash e-ISA at 6% AER
HSBC has launched a new Cash e-ISA at a variable interest rate of 6% AER. Savers will need to apply online and require £1 to open their account.
However, the ISA is only available to existing HSBC customers, newcomers will need to first open an HSBC bank account.
No notice period is required on withdrawals and interest […]
HSBC loses customer data
by Gill Montia
Story link: HSBC loses customer data
HSBC is facing an investigation by the Financial Services Authority (FSA), following the loss of customer data.
Around four weeks ago, a computer disc containing details of 370,000 customers was mislaid.
The disc, which contains the names, dates of birth and insurance details of people with life assurance with the bank, disappeared while in transit between the […]
Banks face losses as commercial property stocks fall
by Gill Montia
Story link: Banks face losses as commercial property stocks fall
Capital Economics is warning that UK banks could face large losses as a result a sharp fall in the value of the UK’s commercial property.
The economic forecasting consultancy is warning that £7 billion could be wiped off commercial property stocks in the next two years and that the figure could rise to £18 billion should […]
HSBC considers sale of rail division
by Gill Montia
Story link: HSBC considers sale of rail division
HSBC is reported to be in talks over the sale of HSBC Rail, its train-leasing division.
HSBC Rail provides investment and financing for the passenger and freight rail industry both in the UK and overseas.
It is estimated to be worth £1.5 billion and the bank may offer some finance to potential buyers who would otherwise struggle […]
HSBC investor calls for action on US mortgage business
by Gill Montia
Story link: HSBC investor calls for action on US mortgage business
HSBC has been criticised by the California State Teachers’ Retirement System (Calstrs) for its losses in respect of HFC, its US mortgage business.
Calstrs, which is one of the world’s largest pension funds and a major HSBC investor, has described HFC as “a skin-hole for money”.
The bank has already injected $1.6 billion of additional capital into […]
HSBC “unreasonable charges” estimated at £303m
by Gill Montia
Story link: HSBC “unreasonable charges” estimated at £303m
While the outcome of the High Court case on unreasonable bank charges is awaited, HSBC has revealed that it could have to pay out a further £303 million in refunds to its British customers, should the Office of Fair Trading win the case.
The bank also acknowledges, via its annual accounts, that the final figure could […]
HSBC posts 10% profit rise to £12.17bn
by Gill Montia
Story link: HSBC posts 10% profit rise to £12.17bn
HSBC posted a 10% rise in pre-tax profit for 2007, to £12.17 billion, helped by strong growth in its Asian markets.
However, chairman Stephen Green described the outlook for the remainder of 2008 is “uncertain” stating: “The economic slowdown and the credit outlook in the US may well get worse before they get better.”
Last year, the […]
HSBC sells French network
by Gill Montia
Story link: HSBC sells French network
HSBC is selling its regional French banking division for €2.1 billion, in a move aimed at shifting the group’s focus towards emerging markets, although it will continue to operate in France through its HSBC-branded network.
The bank is in exclusive negotiations with Banque Populaire, the French mutual, which has made an all cash offer for the […]
HSBC considers future of US business
by Gill Montia
Story link: HSBC considers future of US business
HSBC’s activist shareholder, Knight Vinke, is urging the bank’s chairman, Stephen Green, to dispose of HFC, its troubled American banking business.
While HSBC is expected to report record profit of $24 billion today, its HFC mortgage business has a high level of exposure to the US sub-prime mortgage crisis and has cost it more than $11 […]
HSBC sells French network
by Gill Montia
Story link: HSBC sells French network
HSBC has plans to rid itself of part of its French business, with the sale of around 300 retail regional branches. The network comprises 800 branches in total and is estimated to be worth £2 billion.
The bank has appointed Goldman Sachs to undertake a review of its French network, which it acquired when it bought […]
HSBC plans Chinese listing
by Gill Montia
Story link: HSBC plans Chinese listing
HSBC, the UK’s largest bank, is planning a listing in China, once the country’s authorities lift the current restrictions on foreign companies floating on the Shanghai stock exchange.
The bank’s chairman, Stephen Green, made the announcement yesterday as a business delegation, led by Prime Minister Gordon Brown, departed for China.
Mr Green described the proposed listing as […]
HSBC’s Chinese strategy under attack
by Gill Montia
Story link: HSBC’s Chinese strategy under attack
Knight Vinke, the thorn in the side of HSBC, has accused the bank of making major losses in its Chinese business.
The asset management firm and leader of a shareholder revolt at HSBC, has pointed out that although the bank’s total Chinese profits stood at $903 million in 2006, $986 million was attributable to associates.
These associates […]
HSBC executive bonuses attacked by Knight Vinke
by Gill Montia
Story link: HSBC executive bonuses attacked by Knight Vinke
Knight Vinke, the asset management firm, is continuing its shareholder campaign against senior management at HSBC.
It has suggested that the bank’s incentive scheme was misrepresented to shareholders, giving the impression that executive bonus payments would be much less generous than they truly are.
Knight Vinke has today placed advertisements in The Times and other newspapers accusing […]
HSBC records $3.4bn third-quarter sub-prime losses
by Gill Montia
Story link: HSBC records $3.4bn third-quarter sub-prime losses
HSBC has reported that losses from bad debts linked to the US sub-prime mortgage crisis amount to $3.4 billion in the three months to the end of September 2007.
The bank conceded that the charge was $1.4 billion higher than similar writedowns in the first-half of the year and warned that further, possibly higher, losses lie […]
HSBC to writedown a further $1bn in sub-prime losses
by Gill Montia
Story link: HSBC to writedown a further $1bn in sub-prime losses
It is rumoured that HSBC will be writing-down a further $1 billion in connection with its portfolio of US sub-prime mortgages.
The bank is expected to announce the loss on Wednesday of this week, when it reports third-quarter results for its US division.
HSBC made its first such writedown in February of this year and has since […]
HSBC shareholder revolt gains support
by Gill Montia
Story link: HSBC shareholder revolt gains support
HSBC has seen a strengthening of its shareholder revolt led by Knight Vinke, the asset management firm.
The latter, which has accused the bank of poor governance and strategy, has secured the support of New Star Asset Management, which owns around £300 million HSBC shares and has responded positively to Knight Vinke’s role as a shareholder […]
