Regulator says bank failed to properly implement Financial Services Compensation Scheme
HSBC has been fined £57m by the Bank of England’s financial stability arm for failing to protect customer deposits in the event of a banking collapse.
It is the second-highest fine imposed by the Bank’s Prudential Regulation Authority (PRA) and reflects the seriousness of the failings, the watchdog said. The highest fine was £87m, imposed on Credit Suisse last July.
Continue reading...Consumers report problems using bank’s app on one of the busiest shopping days of year, Black Friday
Thousands of HSBC customers reported they were unable to access its online and mobile banking services on one of the busiest online shopping days of the year – Black Friday.
More than 4,000 customers said they could not access their accounts via the HSBC app on Friday, according to Downdetector, which tracks and collates website outages and complaints.
Continue reading...Bank criticised by MPs for being too slow to reward savers as it announces 15% rise in net interest income and $3bn share buyback
Higher interest rates helped HSBC to more than double its profits and hand over $3bn (£2.5bn) to shareholders, as MPs criticised the largest UK banks for being too slow to reward savers.
The London-headquartered bank said it was launching a share buyback, and paying a dividend worth 10 cents a share, after what its chief executive, Noel Quinn, hailed as “three consecutive quarters of strong financial performance”.
Continue reading...Bank says it earned £17bn in first half and will hand more money back to shareholders
HSBC more than doubled its profits in the first half of the year, as rising interest rates increased returns for the London-headquartered lender.
The bank reported pre-tax profits of $21.7bn (£17bn) in the first six months of 2023, up from $8.8bn during the same period last year, despiteputting aside more money to protect against potential defaults, as rising living costs put pressure on customers’ finances.
Continue reading...Rises of up to 0.75 percentage points follow increases at First Direct
Customers of HSBC will receive a boost to their savings after the bank announced an increase to interest rates, as Britons enjoy some of the highest rates in more than a decade.
The lender is increasing rates on some of its savings accounts, with increases of up to 0.75 percentage points.
Continue reading...First British ministerial visit to Hong Kong since Chinese crackdown focused on attracting investment
The first British ministerial visit to Hong Kong since the introduction of draconian Chinese security laws five years ago was a chance to demand that China unlock more than £2bn in pensions belonging to British overseas passport holders who fled for the UK, former cabinet ministers have told the Foreign Office.
A letter signed by more than 90 MPs, including 10 former ministers, urges the trade minister Dominic Johnson to do more to release frozen savings belonging to thousands of Hongkongers.
Continue reading...Exclusive: HSBC and NatWest staffers seconded to shadow business secretary Jonathan Reynolds’s team
Labour has been criticised for giving global banks access to parliament after taking an HSBC staffer into its shadow business team, despite the financial giant coming under fire over its links with China.
One senior policy manager from HSBC has been seconded to the team of Jonathan Reynolds, the shadow business secretary, and has been given a parliamentary pass since February.
Continue reading...Environmentalists from the Philippines urge investors to avoid LNG projects which they say threaten the Verde Island Passage
Campaigners from the Philippines have urged British banks not to fund the expansion of fossil fuel use in their country. It follows a huge oil spill that threatened a globally important marine biodiversity hotspot.
Filipino environmentalists have travelled to the UK to meet representatives from Barclays, Standard Chartered and HSBC as part of efforts to stop the expansion of liquefied natural gas (LNG) power plants and terminals in and around the Verde Island Passage, a global marine biodiversity hotspot known for its whale sharks, corals, turtles and rich fisheries, which was badly affected by the oil spill this year.
Continue reading...Failure of four banks in six weeks is purely a sign of poor risk management, says chief executive
HSBC’s chief executive has denied the possibility of a fresh banking crisis, saying the failure of four banks in six weeks was a merely a sign of poor risk management, as the lender tripled its own first quarter profits to $13bn (£10bn) after its rescue of Silicon Valley Bank UK.
Noel Quinn’s comments came a day after JP Morgan stepped in to buy most of the collapsed lender First Republic in a $10.6bn takeover, as part of regulators’ efforts to draw a line under lingering turmoil across the banking sector.
Continue reading...Bank warns spinning off more profitable Asia business would be complex and would lower dividends
HSBC’s board has urged shareholders to vote against a proposed break-up of its business at its annual meeting, arguing that a split would result in a “material loss” and lower dividends.
In response to calls for the split from its largest shareholder, the Chinese insurer Ping An, HSBC warned on Wednesday that spinning off its more profitable Asian business from the rest of the bank would also require approval from regulators in approximately 25 jurisdictions, and force it to make changes to customer services.
Continue reading...Minority shareholder Ken Lui leads campaign seeking to split bank’s Asian and western businesses
Hong Kong investors have forced HSBC into a shareholder vote on its structure and strategy, including a potential spin-off of its Asian arm.
An investor group, led by the minority shareholder Ken Lui, said the bank’s Asian activities were “effectively subsidising the western businesses, to the detriment of HSBC’s global shareholders” in a way that undermines efforts to increase the bank’s value and growth.
Continue reading...FTSE 100 rises and European banking shares are up after early jitters over what UBS takeover deal means for bondholders
Stocks climbed on Monday in London and New York after central bankers and politicians sought to soothe jitters triggered by the emergency rescue of Credit Suisse during the weekend.
Central banks in the UK and eurozone issued statements aimed at reassuring investors that – unlike the controversial approach taken by the Swiss authorities in the Credit Suisse deal – their jurisdictions would follow a hierarchy in which equity holders would lose out before bond holders.
Continue reading...In this week’s newsletter: While its quick slip into financial hardship has left American bankers reeling, its UK division is surprisingly fine. But the tech sector isn’t out of trouble yet
Last week, if you had heard of Silicon Valley Bank UK, you probably worked in tech. The bank had only been spun out in to a separate entity last summer, after its few thousand corporate customers pushed it over a regulatory threshold, and while SVB had grown to almost hold £10bn of deposits, with £5.5bn of outstanding loans, it was very much a specialist player.
The bank’s selling point was that it understood the needs of the “innovation economy”, something that high street banks frequently failed to acknowledge. A startup might have zero revenue, yet hold £5m in the bank and have 10 employees, a profile fundamentally different from a typical small business. As a result, trying to get something as simple as a corporate credit card could be a surprising hassle, and when SVB arrived on the UK scene, it was enthusiastically adopted by founders and venture capitalists alike.
Continue reading...Bank increases CEO’s bonus and plans bigger shareholder payout as it faces pressure from investor Ping An
HSBC has increased bonus payouts for its chief executive after fourth-quarter profits more than doubled on the back of a jump in mortgage and loan costs for its borrowers.
The London-headquartered lender said it had increased Noel Quinn’s bonus by 36% to nearly $2.2m (£1.8m), taking his overall pay to $5.5m for 2022. That compares with his $4.9m payout in 2021.
Continue reading...Bank slashes predicted 2023 European wholesale price by 30% as mild weather reduces demand
HSBC has slashed its forecasts for future wholesale gas prices in response to mild weather in Europe – raising hopes of a sharp decline in household energy bills.
The bank cut its 2023 forecasts for the price of gas traded in Europe by about 30% and its forecast for 2024 by 20%.
Continue reading...Chinese insurer Ping An discusses listing bank’s Asian operations separately in Hong Kong
HSBC is facing pressure to break up after one of its largest shareholders told the UK-headquartered bank to consider spinning off its profitable Asian operations centred on Hong Kong.
Chinese insurer Ping An has discussed listing the Asian operations separately in Hong Kong, Bloomberg first reported. Ping An owns 8.3% of the bank, according to the latest public filings, a stake worth £8.2bn.
Continue reading...Cross-party group expresses unease about the fund’s stake in HSBC, which has held shares in Moscow’s oil and gas giants
Trustees of the pension fund for members of parliament have agreed to sell all investments linked to Russia after a cross-party group of more than 60 MPs raised concerns about connections to Russian oil and gas companies.
The trustees met last Thursday, having received the MPs’ letter, and agreed to act immediately to ensure the fund was cleansed of both direct and indirect Russian interests.
Continue reading...Worsening Sino-US ties, strict Covid rules and the crackdown on dissent have dented the territory’s fabled allure as a business hub, say expats
In July 2018, Tara Joseph, president of the American Chamber of Commerce in Hong Kong, wrote an article in the best-known local English-language newspaper, the South China Morning Post, stressing to Americans the territory’s unique position as an Asian business hub.
“The US is forgetting the differences between Hong Kong and China. Let’s remind them,” she wrote. “Hong Kong continues to have a robust and hearty infrastructure of values, practices and institutions that could not contrast more starkly with those of the mainland system.”
Continue reading...After Tesco’s website and app were down for most of the weekend, leaving many frustrated customers unable to shop online, HSBC’s business banking portal (called HSBCnet) had some issues this morning.
Large corporate customers only had intermittent access via the website or app for about an hour, from 9.10am, but the problem has been fixed, according to HSBC.
This is truly a dark day for drivers, and one which we hoped we wouldn’t see again after the high prices of April 2012. This will hurt many household budgets and no doubt have knock-on implications for the wider economy.
Continue reading...Barclays and HSBC among banks booking money equivalent to 14% of annual profits in offshore entities
Leading European banks are booking around €20bn (£17bn) a year – equivalent to 14% of their total profits – in tax havens, with Barclays, HSBC and NatWest Group among those enjoying the lowest tax rates, according to a new report.
The figures emerge from an analysis, conducted by the EU Tax Observatory, of 36 big banks required to publicly report country-by-country data on their activities.
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