HSBC Holdings (LON:HSBA) - Stirring beneath

Mar 15th 2013 - Edison Investment Research today published a report on HSBC Holdings (HSBA.L, LSE:HSBA, LON:HSBA) entitled "Stirring Beneath". In summary, the report says:

HSBC reported PBT of $20.6bn for 2012, down 6%, with EPS down 20% at $0.74 after a higher tax rate. However, beneath the accounting noise, there is evidence of significant progress. Stripping out items such as revaluation of own debt (an irrelevant $9.2bn adverse swing y-o-y) and regulatory charges, we estimate normalised revenue growth of 6% and normalised cost growth of 2%. On the same basis, normalised PBT grew 33% to $22.6bn. Good progress on capital management allowed the group to increase declared dividends for the year by 10% to $0.45, while appearing to meet more stringent Basel III capital rules (yet to be completely finalised) a year early. This leaves the bank well placed to accelerate organic growth, while...