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HSBC Profits collapse. -62%

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http://www.independent.co.uk/news/business/news/hsbc-profits-down-62-per-cent-lower-than-estimates-banking-a7590801.html

Amazingly blaming Trump and writing down their European goodwill as they see  a rise of the right.

Anyway this has taken the Market by surprise, HSBC  has been a darling of the major Banks.

Edited by crashmonitor

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They are closing many branches way before Brexit. They have largely got one branch left in the major city centres, and areas of high net worth.

 

Edited by 200p

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6 minutes ago, 200p said:

They are closing many branches way before Brexit. They have largely got one branch left in the major city centres, and areas of high net worth.

 

They do seem quite Europhile, they do have the most PIGGS Sovereign debt exposure of any UK bank, though at 6 billion that is probably small beer for their international balance sheet.

If Europe does start to fall apart, and that's a big if, then I guess the simplicity of Lloyds UK business might appeal; I guess if you dare back UK mortgage debt business.

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Locally, the initial wave of bank closures was in 2014:

A message was sent to online customers announcing that branches of HSBC at Southampton University, Shirley Road, London Road and High Street will close, with a new “flagship branch” due to open on Above Bar Street.

http://www.dailyecho.co.uk/news/11474993.Bank_to_close_four_city_branches/

And the next wave this year, 2017

According to HSBC, over the last five years the number of customers using its branches has fallen by almost 40%.

http://www.dailyecho.co.uk/news/15045069.Anger_at_decision_to_close_Hampshire_branch_of_HSBC/

I think they are keeping their "Premier" branches.

Edited by 200p

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The greatest impact is the micro transactions which are all done via automatic direct debit and online via computer and smartphone. Even the small disappearance of cheques has had an effect. Mortgage renewals, loan applications are all done online now - you don't have to meet the bank manager these days thanks to credit scores.

Brexit may put some large projects on hold, but it is a drop in the ocean with the tech advances and liberal loan applications on banking over the last five years.

People used to get a loan to buy a car, life's 2nd biggest purchase - but with leasing which seems to be the norm, people don't need their own banks.

Edited by 200p

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15 minutes ago, 200p said:

Locally, the initial wave of bank closures was in 2014:

A message was sent to online customers announcing that branches of HSBC at Southampton University, Shirley Road, London Road and High Street will close, with a new “flagship branch” due to open on Above Bar Street.

http://www.dailyecho.co.uk/news/11474993.Bank_to_close_four_city_branches/

And the next wave this year, 2017

According to HSBC, over the last five years the number of customers using its branches has fallen by almost 40%.

http://www.dailyecho.co.uk/news/15045069.Anger_at_decision_to_close_Hampshire_branch_of_HSBC/

I think they are keeping their "Premier" branches.

Yep absolute  carnage as far as purpose built banks go from the Victorian era, once bearing the name of London City and Midland, and more recently Midland.

My nearest branch, 2017 and empty......

 

220px-Matlock_-_HSBC_Bank_on_Dale_Road_(

X160h.jpg

Edited by crashmonitor

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Two years ago they closed my local branch. Cost them my mortgage.  Sort of cost them my current account now to as I only use it for Internet shopping

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4 minutes ago, nnails said:

Two years ago they closed my local branch. Cost them my mortgage.  Sort of cost them my current account now to as I only use it for Internet shopping

And their internet banking is now absolutely shockingly bad. And the business banking is unusable. I mean horrific. You can't even see a list of transactions, it's one at a time. I mean seriously guys. WTF?

Edited by GrizzlyDave

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55 minutes ago, TheCountOfNowhere said:

Manbe they need higher interest rates

^This. Even the bankers want higher interest rates. Only Carnage wants low interest rates.

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22 minutes ago, fru-gal said:

^This. Even the bankers want higher interest rates. Only Carnage wants low interest rates.

 

I suspect that the recent shift towards (meaningful) talk of raising rates boils down to the bankers getting antsy about their ability to generate profits moving forward.

 

If you follow the 'logic' that has been deployed to excuse NOT raising rates for so long, there is little to justify raising rates now.  When banks wanted interest rates low, they got low rates irrespective of the effects on the general economy and population.  They'll almost certainly get higher rates if that's what they want, again irrespective of what effects result on the wider world.  I would suspect (hope) that once rates do start going up, they might not be as controllable as the banks and central bankers think.

 

 

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1 minute ago, Sour Mash said:

 

I suspect that the recent shift towards (meaningful) talk of raising rates boils down to the bankers getting antsy about their ability to generate profits moving forward.

 

If you follow the 'logic' that has been deployed to excuse NOT raising rates for so long, there is little to justify raising rates now.  When banks wanted interest rates low, they got low rates irrespective of the effects on the general economy and population.  They'll almost certainly get higher rates if that's what they want, again irrespective of what effects result on the wider world.  I would suspect (hope) that once rates do start going up, they might not be as controllable as the banks and central bankers think.

 

 

Not just banks. The big insurance and pension companies NEED higher rates. The only people who NEED low rates are BTLers and those with big mortgages.

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23 minutes ago, fru-gal said:

Not just banks. The big insurance and pension companies NEED higher rates. The only people who NEED low rates are BTLers and those with big mortgages.

And when you consider that housing transcations have been low this past decade and overall mortgage lending has crept up a mere 100 billion, that probably doesn't amount to that many people anymore who would be in bad loan territory. If some of the zombie borrowers became forced sellers and prices adjusted accordingly all the better for the long term economy. I guess as the Government has become guarantor of last resort for some of the more recent ftbs then i guess the Government could be pulling Central bankers strings too.

Edited by crashmonitor

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4 minutes ago, fru-gal said:

Not just banks. The big insurance and pension companies NEED higher rates. The only people who NEED low rates are BTLers and those with big mortgages.

Why? Surely government likes paying of debt with currencies cheapened by any net positive inflation.

Perhaps they are forecasting big inflation in the near future if they're tempting us with rate increases?

inflation-base-rates-since-03-600x471.pn

 

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^

Quote

The bank said 2016 would “be long remembered for its significant and largely unexpected economic and political events”, alluding to the election of Donald Trump as US president and Britain's vote to leave the EU.

So basically the bank is agreeing that it's been no way to run a country. Which is also what the voters decided. 

If those countries had been run in any way decently then the votes might have turned out differently.

Edited by billybong

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HSBC was the only bank not to get a bailout if I recall. Lloyds, RBS, Northern Rock did.

Barclays did not go to the tax payer, but instead took a big investment from Abu Dhabi.

Perhaps this is the handicap HSBC has to have, but it's probably much more complex than that.

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On 21/02/2017 at 0:03 PM, 200p said:

They are closing many branches way before Brexit. They have largely got one branch left in the major city centres, and areas of high net worth.

 

Most people use internet and telephone banking anyway. And dont forget you have to pay TAX on profit.

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