• Thu
  • Jul 24, 2014
  • Updated: 6:26am

HSBC

The Hongkong and Shanghai Banking Corporation was founded in Hong Kong on March 3, 1865, and in Shanghai one month later. In 1980, HSBC acquired 51 per cent of Marine Midland Bank, buying the rest in 1987. HSBC Holdings was established in Britain in 1991 as the parent of The Hongkong and Shanghai Banking Corporation ahead of its purchase of the UK-based Midland Bank and the impending 1997 transfer of sovereignty of Hong Kong from Britain to China. 

BusinessBanking & Finance

Investors punish HSBC shares after interim result

PUBLISHED : Tuesday, 06 August, 2013, 1:01pm
UPDATED : Tuesday, 06 August, 2013, 1:01pm

Shares in HSBC Holdings dipped almost five per cent on Tuesday morning after interim earnings fell short of market expectations and on news that the bank might face a US$1.6 billion US lawsuit.

The bank said on Monday that pre-tax profit rose to US$14.1 billion from US$12.7 billion a year ago, but missed the market consensus for a US$14.6 billion profit.

HSBC also warned on Monday that it may face a US$1.6 billion settlement with a US regulator over allegations it mis-sold mortgage-backed bonds during the housing bubble.

The Federal Housing Finance Agency (FHFA), the conservator of Fannie Mae and Freddie Mac, has alleged 18 banks misrepresented the quality of the collateral backing securities they sold between 2005 and 2008.

In late morning trade, HSBC was down 4.7 per cent, or HK$4.20, at HK$85.35, outstripping the benchmark Hang Seng Index, which was down 1.6 per cent, or 344.81 points, at 21,877.20. .

Hang Seng Bank, which is Hong Kong’s second largest lender and controlled by HSBC, was down 0.3 per cent, or 30 HK cents, at HK$121.20.

On Monday, Hang Seng Bank reported that net profit more than doubled to HK$18.47 billion, helped by higher fee income, one-off accounting gains and lower bad debt charges.

Standard Chartered Bank was down 1.4 per cent, or HK$2.60, at HK$180.50. Standard Chartered is due to release interim profit figures later on Tuesday.

HSBC is attempting to repair its reputation in the United States after authorities there last year fined it US$1.9 billion for compliance failings in Mexico.

That settlement included a deferred prosecution agreement, which meant HSBC avoided being criminally charged but agreed to have a monitor evaluate its improvement in compliance.

HSBC said on Monday that it had added 1,600 compliance and regulatory staff in the first half of this year, despite axing thousands of jobs elsewhere.

Share

Related topics

For unlimited access to:

SCMP.com SCMP Tablet Edition SCMP Mobile Edition 10-year news archive
 
 

 

 
 
 
 
 

Login

SCMP.com Account

or