Tuesday, June 2, 2015

Seeking Alpha: HSBC Has A Lot Of Work Left To Do

I had pretty equivocal feelings about HSBC (NYSE:HSBC) a year ago, and the stock's 10% decline since then fits that outlook. HSBC has done quite a bit better than other Euro banks like Societe Generale (OTCPK:SCGLY) and Santander (NYSE:SAN), but really doesn't hold up well compared to the performances of JPMorgan (NYSE:JPM) or DBS Group (OTCPK:DBSDY) - banks that I believe are superior models of what HSBC aspires to be in some respects.

As is, I'm still not sold on HSBC as a great investment today. Even if management can control costs and improve operations and lift the bank's ROE above 11% in 2019, I don't see a compelling value. On the other hand, if management is willing to be bolder and adopt a "be great or be gone" philosophy, the potential of a smaller, leaner, and better HSBC could be considerably more compelling.

Read more here:
HSBC Has A Lot Of Work Left To Do

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