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    HSBA   GB0005405286

HSBC HOLDINGS PLC

(HSBA)
  Report
Delayed London Stock Exchange  -  11:35:26 2023-01-31 am EST
596.40 GBX   -0.93%
07:55aHSBC to Redeem $2.35 Billion of 6.25% Perpetual Securities on March 23
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01/30Hsbc : Notification of a Transaction by a Person Discharging Managerial Responsibilities - Form 6-K
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01/30Hsbc : Notification of Transactions by Persons Discharging Managerial Responsibilities (“PDMRs”)
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HSBC SELLS CANADA ARM IN ú8BN DEAL

11/30/2022 | 01:21am EST

BRITAIN's biggest bank HSBC has sold its Canadian business to Royal Bank of Canada (RBC) for £8.4bn in a move that may quieten Asian investors demanding the firm be broken up.

The Canary Wharf headquartered lender said yesterday it plans to redistribute a chunk of the £4.7bn profit it will make on the sale.

HSBC has been under intense pressure from Asian investors led by Chinese insurer Ping An, the bank's largest investor, to slim down its huge global footprint and focus on profitable areas of the business.

Its China and Hong Kong arms generate the majority of its overall profits.

The Canadian sale could help HSBC fight back against Ping An's breakup campaign by signalling its intention to operate as a trimmer bank in the future.

Asian shareholders were starved of payouts from HSBC during the Covid-19 crisis due to UK regulators preventing banks from distributing dividends to ensure they retained enough capital to cope with rising pandemicrelated defaults.

That, in part, led Ping An to back a demerger. However, HSBC could "appease those investors still frustrated that dividends were curtailed" by handing over a fraction of the proceeds from the Canadian arm sale, analysts at Jefferies said.

The shareholder goodies will be funnelled through a one-off share buyback or dividend and will come on top of existing capital return programmes.

Western investors and politicians have slammed HSBC for failing to condemn Beijing's crackdown on pro-democracy protests in Hong Kong.

News emerged last month that HSBC was sizing up ditching its Canadian business.

Noel Quinn, chief executive of HSBC, said the sale was given the green light after a "review concluded that there was a material value upside from selling the business".

Quinn has repeatedly denied HSBC is planning to ditch its Asian arm and has argued it would erode value for shareholders.

RBC will absorb HSBC's 130 branches and over 780,000 retail and commercial customers in Canada. The deal will complete late next year and shareholder giveaways will start in 2024.

RBC said the purchase will "add a complementary business" to its sprawling group.

The investment house recently snapped Brewin Dolphin, one of the UK's oldest fund managers, in a sign of its intention to expand its global reach.

HSBC's shares shot to near the summit of the FTSE 100 yesterday, gaining near five per cent.

(c) 2022 City A.M., source Newspaper

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Analyst Recommendations on HSBC HOLDINGS PLC
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Financials (USD)
Sales 2022 53 520 M - -
Net income 2022 13 916 M - -
Net Debt 2022 - - -
P/E ratio 2022 10,6x
Yield 2022 4,14%
Capitalization 145 B 145 B -
Capi. / Sales 2022 2,71x
Capi. / Sales 2023 2,41x
Nbr of Employees 219 697
Free-Float 98,2%
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Technical analysis trends HSBC HOLDINGS PLC
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Income Statement Evolution
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Sell
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Mean consensus OUTPERFORM
Number of Analysts 21
Last Close Price 7,35 $
Average target price 8,04 $
Spread / Average Target 9,40%
EPS Revisions
Managers and Directors
Colin Bell Chief Executive Officer
Georges El-Hedery Co-Chief Executive Officer-Global Banking & Market
Mark Edward Tucker Independent Non-Executive Director
Steven C. van Wyk Chief Information Officer
John M. Hinshaw Group Chief Operating Officer
Sector and Competitors