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HSBC Holdings P L CHSBCCOMMENTNov 08, 2013Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
HSBC vs. ING. HSBC is a global bank, strong in Asia and the UK. ING is already restructured, more of a retail bank. Neither is expensive. But you can buy US banks at cheap multiples today. US banks are in better shape, more capital, fewer issues to worry about like negative interest rates. (Analysts’ price target is $45.90)
ING vs. HSBC Neither. He won't touch any European bank given negative interest rates. Period. HSBC does a lot of international lending and international flows aren't well-received by regulators; and they lend to the Far East. HSBC isn't a leader in many categories. ING, at least, leads in online banking in Europe, but they have loaned heavily to energy.
Have been doing a lot of cost cutting because they have been caught in the Libor scandal. Been trying to find ways to raise cash for paying expected future fines. Standard Charter (STAN-LSE) and this one are the 2 international banks that he could live with as an investment. Their earnings are growing a little bit faster than North American or European banks because of their global exposure. It’s okay as an investment. Doesn’t think the dividend yield is going to hang around at 8% too much longer. Will probably have to reduce the dividend payout in the near-term.