Hsbc Bank Account Hong Kong



HSBC Humane Society of Bay County  
 Q1 net profit more than doubles to $6.35bn Asia-focused bank
HSBC said yesterday that first-quarter net profits more than doubled to
$6.35bn (e1/44.86bn), aided by sliding bad debts, deep cost cutting and
a solid performance in Britain and
Hong Kong
 , Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov.
. Earnings after taxation
surged 146% in the three months to the end of March, from $2.58bn in the
same part of 2012, the lender said in a results statement. HSBC added it
has now slashed a total of $4.0bn from its annual costs, axing about
46,000 jobs since 2011 as part of a massive restructuring. Underlying
pre-tax profits, after stripping out exceptional items, soared 34% to
$7.6bn in the first quarter. Revenues rose 5% to $17.6bn. “We have
had a good start to the year, with growth in reported and underlying
profit before tax,” said chief executive Stuart Gulliver.
“While continuing uncertainty in the global economy has created a
relatively muted environment for revenue growth, we have increased
revenue in key areas including residential mortgages and commercial
banking in both our home markets of Hong Kong and the UK, and in our
financing and equity capital markets business. “Loan impairment
charges were lower in every region, notably in
North America
 third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere.
,” he
said, adding that the group was also lifted by its “continued focus
on cost management”. Bad debts — consumer loans that have turned
sour — sank 44% to $1.17bn in the reporting period. That compared with
$2.09bn last time around. Gulliver added that cost cutting would
continue to be a major focus for the bank, which has sold or closed down
more than 50 of its businesses since 2011, including retail networks in
Colombia, Russia and Thailand. Last year, HSBC had posted a 16.5% slump
in net profits as it was hit by US money-laundering fines, mis-selling
scandals, rising taxation and a vast accounting charge. Discovery
Discovery Communications posted higher revenue and profit in the first
quarter as its cable television networks grabbed better US and
international ratings, and forecast annual revenue above estimates. The
owner of the Discovery Channel and Animal Planet cable networks said
yesterday that revenue rose 6.5% to $1.156bn. Analysts expected $1.51bn,

according to

1. As stated or indicated by; on the authority of:

2. In keeping with:

 Thomson Reuters I/B/E/S. Net income increased to $231mn, or
63Ao per share, from $221mn, or 57Ao per share, a year ago. It missed
Wall Street estimates by a penny. Advertising revenue at its US networks
rose 8.2% to $356mn. Its US distribution revenue fell 8.6% to $308mn.
International networks revenue increased 17% to $444mn as it boosted
both advertising and distribution sales. The company said it increased
subscribers in
Latin America
 the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies.
. The company expects revenue this year to
be in the range of $5.575bn to $5.70bn, which would be higher than the
$5.458bn that analysts expect, on average. Alstom Power and transport
engineer Alstom cut its
sales forecast

 for the next three years
yesterday, as some of its customers delay projects due to weak
economies. In January, Alstom said it expected a gradual improvement in
operating margin

 to around 8% by March 2015. Alstom’s free cash
flow turned positive after two years of outflows, reaching e1/4408mn
($533mn) in the 2012-2013 financial year. “Cash generation remains
a top priority and we continue to anticipate a positive free cash
flow,” chief executive Patrick Kron said. Net profit rose 10% to
e1/4802mn, missing a Thomson Reuters I/B/E/S average analyst estimate of
892mn. “Although the cash flow dynamics have started to improve,
the reduced guidance is disappointing,” Societe Generale analysts
wrote in a note to clients. The company is paying a dividend of e1/40.84
a share, up 5% from the previous year. Alstom, which makes commuter and
high-speed trains, wind turbines and turbines for power stations,
generates about a quarter of its revenue in the recession-hit


same as Euroland

 n → ,

 n →  
with slightly less coming from growth markets in Asia-Pacific. “Our
short-term performance is expected to be impacted by lower volumes than
anticipated due to a more challenging environment,” Kron said in a
statement. Sales rose 2% to e1/420.27bn ($26.5bn) in the year ended
March 31, missing the company’s 5% target, due to lower revenue
from large hydroelectric contracts in Latin America and customer delays
for some electricity transmission projects. Alstom, which reported a 10%
rise in orders to e1/423.8bn in its 2012/13 financial year, said it
faces aggressive pricing from competitors, without elaborating. Big
rivals also include US-based General Electric. Alstom cut its organic
sales growth target to “low single-digits” in the current and
next two financial years until March 2016. In January it had forecast
growth of more than 5% in 2012/13 and in the next two years. Acer
Taiwan’s leading personal computer maker Acer said yesterday it
swung to profit in the first quarter of 2013 thanks to income from
foreign exchange and stock sales. Acer reported net profit of T$515mn
($17.2mn) in the three months to March, up 55.6% year-on-year due to a
number of non-operating incomes including foreign exchange and stock
disposal gains. This compared with a net loss of T$3.37bn in the fourth
quarter of 2012 after a write-down of the value of its brands, including
Gateway and
Packard Bell

. First-quarter consolidated revenue was
T$91.97bn, down 18.6% from last year and also down 9.4%
quarter-on-quarter due to seasonal factors, the company said. Acer,
which has been struggling to branch into the tablet computer sector, was
forced to cut hundreds of jobs in 2011 after suffering heavy losses due
to weakening demand in Europe and the US.

Prudential Insurer Prudential has reaffirmed a commitment to its
British home market as a source of financial strength and profit even as
Asian units romped ahead as the main driver of sales. Speaking yesterday
after posting 8% first quarter sales growth largely fuelled by Asia,
chief executive
Tidjane Thiam

 called the Pru’s commitment to the UK
“real and for the long term.” The rising importance of its
Asian business has fuelled speculation that Prudential could change its
domicile to Hong Kong to escape tough new European capital standards.
Thiam said the firm’s ongoing presence in the UK, where it was
founded 165 years ago, provided an “anchor” to its A+ credit
rating — crucial to the credibility of insurers. Prudential has avoided
much of the economic turbulence afflicting Europe on account of a strong
focus on fast-growing Asia, the source of nearly half its sales. Total
sales in the first three months of 2013 were Au1.038bn, of which Au495mn
came from Asia, Au358mn from the US and Au185mn from the UK. Overall
performance was ahead of consensus. New business profit for the
group’s insurance business rose 5% from a year earlier to Au563mn
against Au555mn predicted by analysts. Commerzbank Commerzbank,
Germany’s No 2 lender, will have to work hard to entice investors
to its e1/42.5bn ($3.3bn) share call this month after painting a bleak
outlook for the rest of this year. Chief financial officer

 said 2013 would be a year of transition for the bank, which
posted a net loss of e1/494mn in the first three months as it booked a
restructuring charge

The expense of reorganizing a company’s operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings.
 linked to 4-6,000 job cuts.
“Revenues will stay under pressure, costs are expected to
increase,” Engels said yesterday, adding the bank hoped to see
positive effects from its revamp next year. A source with knowledge of
the bank’s capital increase said Commerzbank may therefore have to
offer new shares at a hefty discount of about 50%. The source also said
Commerzbank could knock at least 35% off the theoretical ex-rights price
of the new shares, implying that these may be sold at around e1/45.50
apiece. “Commerzbank will need a lot of persuasive power to
v. en·thused, en·thus·ing, en·thus·es Usage Problem
To cause to become enthusiastic.

 investors to buy the new Commerzbank shares,” said Felix
Scherhaufer from
 Asset Management. Investors criticised the bleak
outlook. “The better first quarter results so far give no hint of a
fundamentally better business development in 2013,” said Lutz
Wockel from fund manager NordLB Capital Management. Commerzbank’s
Engels said he expected the bank’s interest income to decrease in
2013 as the low interest rate environment makes it increasingly
difficult to make money. Costs are set to rise by up to 100mn euros each
quarter due to investments, including for a revamp of its retail
business. The lender will also set aside “slightly more” money
for bad loans, Engels said. Last year, Commerzbank — whose
cash cow

 Mittelstandsbank unit specialises in providing loans to Germany’s
important medium-sized companies — benefited from extremely low
provisions as Germany’s economy powered ahead most of the year.
Commerzbank did not provide a more specific earnings forecast.
Commerzbank intends to use the proceeds from the capital increase to
repay some of the state aid it received in the financial crisis and to
strengthen its capital buffers to comply with stricter bank rules. The
transaction will increase Commerzbank’s capital ratio under the
most stringent application of Basel 3 rules by around 1 percentage
point, Engels said. He added that the bank is targeting a 9% capital
ratio by the end of 2014. In the first quarter, the ratio stood at 7.5%.
Since a 2008 bail-out in the wake of the financial crisis, the German
government owns 25% of Commerzbank, but its holding will be diluted to
roughly 18% as it will not participate in the capital increase. Allianz
German insurance giant Allianz said yesterday it was holding to its
full-year targets even though profits rose in the first three months.
“We are well on our way toward achieving our
operating profit

See operating income.
 outlook for the entire year,” said chief executive Michael Diekmann
in a short statement. “Despite the good results in the first
quarter, in view of the existing market risks, the management board sees
no need for an adjustment of our outlook for fiscal year 2013,” he
said. In the first three months, Allianz’s total revenues rose by
6.6% to “around e1/432bn ($41.8bn)”. Underlying or operating
profit increased by 20% to about e1/42.8bn. Net income rose by 24% to
about e1/41.7bn. “The improvement in our results comes from all of
our business segments, so it is broad-based. Thus, the start into this
fiscal year can be described as truly successful,” Diekmann said.

Societe Generale French bank Societe Generale reported yesterday
that first-quarter net profit fell by half to e1/4364mn ($476mn) and
said it would save e1/4900mn by 2015 with the loss of more than 1,000
jobs worldwide. The cost cuts are in addition to cuts of e1/4550mn
effected last year. General manager Jean-Francois Sammarcelli, when
asked on French

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BFM British Furniture Manufacturers
BFM Bonded Fiber Matrix  
 Business radio if the bank expected to shed more
than 1,000 jobs, replied that the figure would be substantially higher.
He said that the cuts would include the loss of about 550 jobs at the
bank’s headquarters in Paris. The bank employed about 154,000
people throughout the world of whom 60,000 were employed in France, he
said. The price of shares in the banking group rose by 4.0% in initial
trading, with analysts welcoming the cost-cutting strategy. In the first
three months of the year, net profit fell by half from the equivalent
figure last year,
owing to

Because of; on account of:

 prep → ,  
 exceptional cost factors totalling e1/4488mn.
And the outcome fell short of the net result broadly expected by
analysts polled by
Dow Jones Newswires

 who had foreseen about e1/4370mn.
However, net banking income, a key measure of performance by a bank
regarding the margin between the cost of taking in deposits and the
price of lending them out, fell by 19.4% to e1/45.1bn. This exceeded the
expectations of analysts who had forecast e1/44.94bn. The bank said in a
statement that it had decided to apply a programme to improve efficiency
with three objectives: “Reduce costs and strengthen
competitiveness, simplify the way the group functions and to strengthen
synergy between the resources used by the different activities of the
bank.” The full effect of the programme would be achieved at the
end of 2015 when total savings of e1/41.45bn would have been made
compared with figures at the beginning of 2012, the statement said. This
programme would involve restructuring and
investment costs

 of e1/4600mn.
This would enable the bank to achieve a
return on capital employed

10.0%, chief executive Frederic Oudea said. Credit Agricole French bank
Credit Agricole raised net profit by more than half in the first
quarter, it said yesterday, noting that it had cleaned up its balance
sheet at the end of last year. In the first three months of the year,
the bank, which is the quoted arm of the Credit Agricole holding group,
raised net profit by 50.7% to e1/4469mn ($613.5mn). The results of the
bank had been hit hard for several quarters by exceptional charges and
particularly by the costs of withdrawing from its investment in

 in Greece. Chief executive Jean-Paul Chifflet remarked during a
telephone press conference that the results reflected the decisions
taken in 2012, and the absence of exceptional items apart from usual
charges under auditing rules. Excluding such charges, net profit was
e1/4726mn, an increase of 122.0% from the figure 12 months ago. Net
profit of the parent holding group, which is also responsible for
regional savings banks in the wide-reaching Credit Agricole network,
rose by 18.7% to e1/41.03bn. The group said that the ratio of
shareholder funds to loans made was 9.6% at the end of March, under the
rules of the Basel III standards which take full effect at the beginning
of 2019. The bank said its target was to achieve a ratio of 10.0% by the
end of 2013. But net banking income, a key measure of a bank’s
performance relating to the cost of taking in deposits and the price of
lending them out, fell by 26.2% to e1/43.85bn. However, this reflected a
boost to the figure 12 months ago when the bank made an exceptional
profit of e1/4864mn. Adecco Adecco, the world’s largest staffing
company, said revenues started to stabilise towards the end of the first
quarter, falling an underlying 4% in March with a similar trend observed
in April. In Adecco’s biggest market, France, where revenues fell
17%, the group said it was starting to close recent underperformance to
the rest of the market, although conditions remained challenging.
Adecco, which also competes with US-based ManpowerGroup, said
first-quarter net profit fell to e1/467mn, undershooting the average
poll forecast of e1/480.1mn. It reiterated a target for an earnings
before income tax and amortisation (

) margin of 5.5% by 2015. In
the first quarter, the EBITA margin fell 80 basis points to 3.0%. Adecco
shares, which trade at 13.7 times forecast earnings for the next 12
months, similar to Randstad’s 13.8, were up 0.1% at 50.75 Swiss
francs in early trade. Adecco said there were signs austerity-ravaged
markets in southern Europe were starting to stabilise as big drops in
wages make workers there more competitive. The eurozone’s debt
crisis has paralysed job markets, sending unemployment in the
single-currency bloc to a new record of 12.1% in March, meaning more
than 19mn eurozone citizens are out of work. Recent economic data offer
little hope for a quick recovery. However staffing firms — which act as
a bellwether for wider labour markets because companies typically hire
temporary workers at the start of a recovery and let them go when a
downturn looms — are offering a ray of hope.

Gulf Times Newspaper 2013

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