HSBC said today that thanks to a strong showing in Asia, and its commitment to fixing that small $600 million pickle it got itself into, things are looking pretty okay. Chief Executive Michael Geoghegan gave a somewhat convincing speech to shareholders this morning:
Some commentators have asked, 'Should we be in this business?' We paid $14.8 billion for this business in 2003, and it has already generated profits for your group totaling over $9 billion. In my book, this is a good business for us.
[Wouldn't a simple "yes" have been a bit more believable? "For sure" seems out of the question, and "Definitely" just sounds silly but next time, we'd appreciate a little more enthusiasm.]
The bank noted that the subprime situation did not “deteriorate” during the first months of 2007 and that “underlying credit impairment experience in the UK bank was broadly in line with the previous quarter.”
Putting a damper on Geoghegan’s excitement is Deutsche Bank AG analyst Krista Yue, who said, of the “non deterioration”: “That’s not fully encouraging. There could be redefaults on the restructured loans, which will hit profitability. Our concern is the duration in which the deteriorations will persist.” [Germans, always with their nay saying and negativity, their god damn negativity].
Anyway. HSBC also announced that in Hong Kong, thriving equity markets boosted investment-related fees and brokering income, and in Latin America, revenue growth is “encouraging.” Private banking delivered “excellent results.”
On a more personal note, today marks the first anniversary of HSBC’s Chairman Stephen Green-Chief Executive Geoghegan management of the bank. We here at DealBreaker always knew they could do it. Call-girls and ice cream sandwiches on us.
In other news, high returns in the exploitative banking sector have boosted Satan’s Portfolio by 25 percent this quarter.
HSBC says makes good start to 2007 [Reuters]
Subprime troubles contained, HSBC says [Buffalo News]