This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
HSBC 3Q Results Beats Expectations; Takes a $300mn Hit
October 30, 2024
HSBC Holdings reported upbeat 3Q results with a net profit of $8.5bn (10% increase YoY), surpassing expectations of $7.6bn, driven by rising revenue in wealth and wholesale banking. The bank benefited from slower-than-expected interest rate cuts, which alleviated pressure on its lending margins. However, investors are still awaiting details on the cost savings from a recent restructuring plan that involves merging operations and reorganizing its geographic management into East and West. CEO Georges Elhedery clarified that this reorganization does not indicate a potential split of the business, despite some speculation. The bank also reported a $300mn charge related to a legacy capital issue it decided to repay, impacting its otherwise strong third-quarter results. The repayment of the $900mn issue, set to occur this week at nearly 130% of its face value, underscores the high costs of retiring certain financial instruments that no longer qualify as core capital. HSBC has another similar issue from 2003 remaining outstanding, valued at about 105 pence on the pound.
HSBC Bonds traded stable with its 6.95% Perp at 100.14, yielding 6.93%
For more details, click here
Go back to Latest bond Market News
Related Posts:
HSBC Senior Debt Downgraded To A3
June 9, 2021
HSBC Raises Chinese JV Stake to 90% from 51%
April 7, 2022
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.