Announcements

    Drinks

      New analysis on HSBC
      TUESDAY, 21/03/2017 - Scope Ratings GmbH
      Download PDF

      New analysis on HSBC

      Scope Ratings has updated its rating report on HSBC, rated AA with Stable Outlook.

      HSBC’s ratings are based on the group’s very diverse and unique business franchise as well as management’s conservative risk appetite. While not immune to challenging operating conditions, the group generates solid and sustainable earnings across credit cycles. In addition, the group maintains consistently reassuring liquidity, funding and capital positions.

      For FY2016, the group reported a profit before tax of USD 7.1bn while on an adjusted basis profit before tax was USD 19.3bn, almost unchanged from the prior year with asset quality remaining stable. The reported figure was impacted by several significant items, including a USD 3.2bn goodwill write-off related to the private banking business in Europe, USD 3.3bn in “costs to achieve”, and the impact of the sale of operations in Brazil. As of end-2016, the group’s fully loaded CET1 ratio was 13.6%.

      Scope notes that management is implementing various actions to further simplify the business, improve profitability and strengthen risk management and controls. Nevertheless, the group’s size and complexity means that it is more vulnerable to operational, governance and internal control risks. With its broad-based focus on emerging markets and the ambition to facilitate international trade and capital flows, HSBC is also more exposed to the potential volatility inherent in these markets and to growing protectionist policies that may reduce global and regional trade flows.

      Download the updated rating report on HSBC
       

      Related news

      Show all
      Scope affirms Rogaland Sparebank’s issuer rating at A- with Stable Outlook

      27/2/2025 Rating announcement

      Scope affirms Rogaland Sparebank’s issuer rating at A- with ...

      Scope affirms Landkreditt Bank’s ‘A-’ issuer rating with Stable Outlook

      25/2/2025 Rating announcement

      Scope affirms Landkreditt Bank’s ‘A-’ issuer rating with ...

      Deutsche Bank: Improved profitability outlook on non-operating cost normalisation

      18/2/2025 Research

      Deutsche Bank: Improved profitability outlook on ...

      Italian Bank Quarterly: Amid surging M&A, banks project another record year but caution is warranted

      17/2/2025 Research

      Italian Bank Quarterly: Amid surging M&A, banks project ...

      Updated rating report on Rogaland Sparebank Boligkreditt's mortgage covered bonds

      14/2/2025 Monitoring note

      Updated rating report on Rogaland Sparebank Boligkreditt's ...

      Scope affirms Rogaland Sparebank Boligkreditt's mortgage covered bonds at AAA/Stable

      11/2/2025 Rating announcement

      Scope affirms Rogaland Sparebank Boligkreditt's mortgage ...