Analyst Views: How is HSBC doing underneath all of its one-off gains?

 
Marion Dakers

IAN GORDON | INVESTEC
Profit before tax is $4.5bn vs Investec $5.1bn and consensus $5.5bn. However, after adjusting for conduct costs ($0.4bn) and own credit ($0.6bn) quarter three appears roughly “in-line”. Hong Kong is a stand-out performer [and] constant currency customer loans are marginally up quarter-on-quarter too.

RICHARD HUNTER | HARGREAVES LANSDOWN
The key metrics were, on the whole, progressive. An improvement in return on capital and a reduction in operating expenses was accompanied by a strong increase in profit before tax... There are, of course, other matters to consider, not least of which is the ongoing prospect of regulatory censure.

CHINTAN JOSHI | NOMURA
HSBC’s results have been cleaner than usual with only five one-offs that we have identified so far. Results are ahead of expectations driven by revenue beat. More importantly, the [core tier one] ratio of 10.6 per cent is ahead of our estimate of 10.4 per cent, and helps contains concerns on capital.