The giant global franchises of Standard Chartered (OTCPK:SCBFF), Citigroup (C), Deutsche Bank (DB), and HSBC (HSBC)
definitely didn't live up to the notion that a global footprint would
insulate them in tougher times. In the particular case of HSBC, it got
to a point where some started asking whether it was actually a good
global bank or just a very good Hong Kong bank with a lot of foreign
market albatrosses dragging it down.
The truth, as is often the
case, is somewhere between. HSBC certainly made some big mistakes in
markets like the U.S., and the China operation has its challenges today,
but Hong Kong continues to be exceptionally profitable and the large
low-cost deposit bases in the U.K. and U.S. give the company attractive
leverage to rising rates.
Read more here:
HSBC Has A Valuable Core Franchise, But A Lot Of Work To Do
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