[ET Net News Agency, 8 August 2019] Citi Research said surprise exit of HSBC Holdings'
(00005) Group CEO John Flint after only 18 months in the role, with the departure
statement referencing a challenging and complex outlook, indicated that 2H 2019/2020
remains highly uncertain.
The global bank announced a buy-back of US$1bn for 2H, smaller than previous years'
US$2bn. HK/Asia outlook uncertainty and GBP depreciation/Brexit risk is a headwind to
capital and could reduce future buyback expectations.
Citi noted that a change in outlook with interest rates expecting to fall and
geopolitical issues impacting a significant number of major markets. Brexit's development
remains highly fluid.
Management scrapped the 6% RoTE target for its US business by 2020 but maintained
positive jaws and 11% group RoTE target by 2020. The cost will be a key lever to achieve
targets in a challenging revenue outlook.
Citi maintained its "sell" call and HK$52.9 target price on HSBC. (KL)
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00005 HSBC HOLDINGS
Nominal 
64.950 +0.200 (+0.309%) Others
08/08/2019 15:32
{I-bank focus}Outlook for HSBC's 2H remains highly uncertain
| Remark: | Real time quote last updated: 26/04/2024 10:39 |
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