MNI: ECB CUTS KEY DEPOSIT RATE BY 25 BP TO 3.0%

MNI BRIEF: China To Keep Stabilising Housing Market - CEWC

MNI BRIEF: China Focus On Boosting Consumption In 2025

MNI BRIEF: China To Cut Rates, Boost Borrowing-Work Conference

MNI China Daily Summary: Thursday, December 12

MNI BRIEF: Beijing To Protect Firms From U.S. Bill - MOFCOM

MNI: US JOBLESS CLAIMS +17K TO 242K IN DEC 07 WK

MNI: US NOV FINAL DEMAND PPI +0.4%, EX FOOD, ENERGY +0.2%

MNI: CANADIAN OCT BUILDING PERMITS -3.1% MOM

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

HSBC 1Q24: Consensus Beat But HK NPL Spike, Weak for STAN, HK Peers

FINANCIALS

HSBC 1Q24 results (HSBC: A3/A-/A+) are marginally ahead of consensus but include a jump in HK corporate non-performers (weak lateral for StanChart and HK peers) and a USD3bn buyback, which appears ahead of expectations. There’s nothing here to push spreads tighter, in our view.


  • Key credit stats: CET1 is broadly as expected and up 40bp from Dec-23 (at 15.2%). Loan losses are significantly better than expected and down from the run-rate seen across 2H24 (now at 31bp). Non-performers are up quite meaningfully (+10% since Dec-23) and well ahead of expectations (17% > consensus). The growth is mostly in corporate in the HK legal entity – this is barely mentioned in the slides and likely to be questioned, we feel.
  • Wider group: revenues are 3% ahead of consensus (+3% y/y, too) with NII a small positive, costs overran expectations (by 4%) and that lower loan loss charge then helped the 2-5% bottom line beats.
  • Outlook: guidance remains unchanged which implies further loan loss weakening (to 40bp for FY24) and only appears a very minor overall upgrade potential. CEO Noel Quinn is retiring after nearly 5yrs in post.

Conf call is 0745 (London time) at: https://hsbc.zoom.us/webinar/register/WN_TE30I5JzQkS_1LWNmS57sg#/registration

Credit BulletsHomepagemarkets-real-timeCreditBank Of England (BOE) Market NewsBulletUK
Credit BulletsHomepagemarkets-real-timeCreditBank Of England (BOE) Market NewsBulletUK

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.