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Opinions Darren Sissons
HSBC Holdings P L CHSBCBUYJul 31, 2018
Darren SissonsStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Darren SissonsDarren Sissons
Darren SissonsHSBC 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.
After the global financial crisis, all banks under-earned because interest rates came down so far. As interest rates come back up, financials are starting to approach their historical earnings range. Banks in the US and Canada are leaders in this pack. European banks are a bit behind. 40% of HSBC’s business is in Europe, which has yet to see higher interest rates. 40% is in Hong Kong, which is the booking point for Asian business. Because the Hong Kong dollar is pegged to the US dollar, this part of HSBC’s business is pegged to the US interest rate cycle. Higher interest rates in the US are good for HSBC in Asia. He thinks the global banks are undervalued, and are good buys, especially for people with a multi-year horizon. This is not a good trade for 3-to-6 months but he thinks it will do well for someone willing to hold it for 3-to-5 years.