The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

HSBC: In search of acceptable

Third-quarter earnings show it is time for decisive action.

The ousting of John Flint as HSBC’s chief executive in August was always likely to presage a more intense focus on the performance of the firm’s global banking and markets division. 

Noel_Quinn_HSBC-2019-official-160x186.png

Noel Quinn

And, so it has proved with the release of the bank’s third-quarter earnings, in which interim CEO Noel Quinn described the performance of parts of GBM as “unacceptable” and unlikely to improve without “decisive action”.

GBM has long been a thorny problem for the bank, not because it has performed universally badly – it hasn’t, and Asia continues to be a strong area for the firm. But for years the broader franchise has failed to live up to the potential that a bank with the geographic reach and product scope of HSBC should have been able to achieve. 

The decisive action? The detail will come when the bank reports full-year earnings: CFO Ewen Stevenson concedes that management was, for now, being deliberately vague. 

Reduce but retain

But first, the bank will be reducing the capital allocated to the lowest returning of its US and continental European businesses, although it stresses that it would retain a global presence. 

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree