Analysts at Merrill Lynch have scored HSBC, their potential partner in a widely rumoured merger of the two groups, near the bottom of their global ranking scorecard for banks.
In its latest global review just distributed to clients, Merrill Lynch runs the rule over the world's listed banks, measuring 10 variables, including return on equity and sustainable earnings' growth, to produce a 'Global Banks Scorecard'.
Topping the rankings are Suncorp-Metway of Australia, BPI of Portugal, and BSCH of Spain.
Bottom of the 'Bottom 20' performers is Hang Seng Bank, the 62 per cent-owned subsidiary of HSBC, while HSBC itself is ranked seventh from the bottom.
'What the scorecard is effectively saying is that HSBC is a success story but paying for quality,' Merrill said.
The comment echoes views recently published by some analysts that, at their present prices, both Hang Seng and its parent, HSBC, are fully valued.
