HSBC sees Brexit costs of up to US$300m

HSBC Bank

HSBC said Monday it will buy back another $2 billion in shares, adding to the $3.5 billion stock it repurchased since previous year.

HSBC has unveiled a new $2 billion (£1.5 billion) share buyback.

HSBC said it continues to shift the business mix towards Asia, with its loan portfolio in the region growing by $31 billion over the half year to $401 billion. It did not benefit this time from a favourable change in the value of its own debt.

HSBC Chairman Douglas Flint said a meeting he attended between Brexit minister David Davis and United Kingdom company executives this month showed signs of an improved relationship between the government and business over Brexit. The announcement takes the total of HSBC share buybacks since the second half of 2016 to $5.5 billion.

The bank's return on equity improved to 8.8 per cent in the first half, from 7.4 per cent a year earlier.

The lender reported pre-tax profits of US$10.2 billion compared to US$9.7 billion for the same period in 2016.

Mr Gulliver is set to retire from HSBC next year.

Nasri Man City future up to him: Guardiola
Stones is now under pressure to raise his game with Pep Guardiola admitting strengthening his defence is his priority. But it was John Stones - rather than Mick Jagger and Co - who got the ball rolling on this easy Manchester City win.

The bank said second-quarter net profit jumped by more than half to $3.87 billion as revenues grew faster than expenses.

The latest buyback means the London-based bank has pledged to repurchase $5.5 billion of shares in the past year, and executives said they're prepared to do more.

Since the financial crisis in 2008 Europe's largest bank has cutting jobs and selling assets to streamline the business and reduce costs to make the group more profitable, while still making dividend payments to shareholders.

HSBC's share price has rallied in the past year, helped by the weak pound which makes profits earned overseas more valuable when repatriated to the UK.

HSBC faces as much as $300 million in legal and relocation fees as it prepares to move 1,000 staff to Paris, in one of the first indications of the cost of Brexit to the UK's financial industry.

"I can not tell you whether we'll do a further buyback this year, but we are using buybacks as a regular part of the toolkit to manage returns to shareholders", Gulliver said in the conference call. Gulliver said he could be at HSBC as late as December 2018 if an external candidate is appointed by incoming chairman Mark Tucker. The brokerage raised its 2017-2020 earnings per share estimates by 4 percent to 5 percent.

Related News:

  • White House pushes incoherent talking point about Russian sanctions bill

    White House pushes incoherent talking point about Russian sanctions bill

    Bob Corker , chairman of the Senate Foreign Relations Committee, told reporters: "I would guess that he (Trump) will sign it". On July 27, the US Congress adopted a new bill on tougher sanctions against Russian Federation .
    Sensex ends at record close; Eicher Motors leads

    Sensex ends at record close; Eicher Motors leads

    At 0618 GMT, the S&P BSE Sensex rose 0.02 percent to 32,522 while the broader NSE Nifty advanced 0.07 percent to 10,084. The equity benchmarks- Sensex and Nifty on Tuesday opened on a flat note after a buoyant start to the week on Monday.
    Twitter Pounces On Dubious Letter From 9-Year-Old Trump Fan

    Twitter Pounces On Dubious Letter From 9-Year-Old Trump Fan

    In the letter, which Sanders later posted on Twitter, the mysterious "Pickle" praises Trump as his "favrit President". Now we can all rest easy that the White House did not invent a 9-year-old to use as a propaganda tool.
  • Indian forces kill two youth in occupied Kashmir

    Indian forces kill two youth in occupied Kashmir

    A police officer said clashes erupted soon after the encounter in the Tahab area ended in the killing of two militants. Two militants were killed in an encounter with security forces on Sunday in Pulwama district of Kashmir, police said.
    Brits show mettle with World Championships bronze

    Brits show mettle with World Championships bronze

    Home-crowd favourite Katinka Hosszu can win her second individual medley title of these championships in the women's 400m final. Dressel's day started in the 50 free, the fastest and often the least predictable event in the sport.
    Lady Gaga served with subpoena by Dr. Luke in Kesha defamation case

    Lady Gaga served with subpoena by Dr. Luke in Kesha defamation case

    What happened to Kesha has happened to many female artists, including myself, and it will affect her for the rest of her life. Gaga isn't essential to the case, her spokesman said in a statement calling the singer "at most an ancillary witness".
  • Seattle Seahawks ink SS Kam Chancellor to $36M extension

    Seattle Seahawks ink SS Kam Chancellor to $36M extension

    Any acrimony appears to have dissipated and the new deal takes away the chance that Chancellor would leave Seattle in free agency after this season.
    Illinois Department of Labor responds to Ohio State Fair incident

    Illinois Department of Labor responds to Ohio State Fair incident

    A company called Introtech has been hired to investigate and reconstruct the accident and determine why it happened. Still, it must be explained what went so wrong Wednesday, especially since Ohio's county fair season is underway.
    Trump sacks Priebus, names new White House Chief of Staff

    Trump sacks Priebus, names new White House Chief of Staff

    Time will tell whether Kelly's selection as chief of staff is a step in that direction ... President Trump tweeted this afternoon that he has named a new chief of staff.
  • Judge Finds Arizona's Arpaio Guilty of Criminal Contempt

    Judge Finds Arizona's Arpaio Guilty of Criminal Contempt

    District Court Judge Murray Snow forcing Arpaio to stop racial profiling people based on the color of their skin. Arpaio had been sheriff for about two decades, but his tenure ended when he was defeated in 2016 for reelection.
    PM calls for August 15 as 'Day of Resolve'

    PM calls for August 15 as 'Day of Resolve'

    Khera also attacked the prime minister for not doing enough to curb the menace of cow-vigilante groups and "those spreading hate". We remember Mahatma Gandhi for his leadership during "Quit India" & we remember leaders like Lok Nayak JP and Dr.

    Russian Federation orders United States to cut diplomats in response to sanctions

    Corker had earlier objected to including the North Korean sanctions, initially favoring to address that issue in a separate bill. Two administration officials say that Trump is likely to sign the bill, despite ongoing wrangling over language and bureaucracy.


Most liked

U.S. within our range, says N Korea after missile test
On Saturday, two US B-1 bombers conducted exercises over the Korean peninsula with South Korean and Japanese planes. There are other hurdles, including building nuclear warheads to fit on those missiles and ensuring reliability.

Trump to sign bill for new sanctions on Russian Federation
The bill is yet to be approved by US President Donald Trump, but Moscow sees little chance that the American leader would veto it. The ministry warned it would respond in kind if Washington made a decision to expel any more Russian diplomats.

Eric Dier Manchester United transfer talk dashed by Tottenham boss Mauricio Pochettino
You've seen how much money has been spent in the window and there's a month to go, it's insane . "I like to show respect". We have a plan. "We have a very clear idea of what we want and what we need to do to try and achieve our target.