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HSBC to be branded with new name

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Comments

  • Scarpacci
    Scarpacci Posts: 1,017 Forumite
    Although the requirements to ring fence the UK retail bank will alter its attractiveness to HSBC as a group, the UK retail operations are still better than HSBC's operations in number of other markets. This is one of the few countries where it truly has scale in retail banking and is achieving a return on equity well above the group average, though not as strong as its Hong Kong operations.

    After all, HSBC is a banking group which has negative returns in a number of markets. It is aiming to exit Turkey and Brazil, but its US and Mexican operations are being kept. It would be quite wrong-headed if HSBC management divest themselves of a reasonably well performing section of the business while they're still lumbered with problem banks elsewhere in the world. So perhaps it's political posturing again?
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  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Scarpacci wrote: »
    So perhaps it's political posturing again?

    HSBC's biggest markets are in Asia. There's where the growth is. Banks are shrinking in size (balance sheet). So focus on profitability is key. Retail banking is increasingly unprofitable particularly where it is free (i.e, the UK).
  • Scarpacci
    Scarpacci Posts: 1,017 Forumite
    edited 14 June 2015 at 12:42AM
    Thrugelmir wrote: »
    HSBC's biggest markets are in Asia. There's where the growth is. Banks are shrinking in size (balance sheet). So focus on profitability is key. Retail banking is increasingly unprofitable particularly where it is free (i.e, the UK).
    That's all true, but it ignores the fact the UK retail operation is more profitable than the group average. If HSBC was slimming down to be a truly Asian bank it would make sense, but they have retail operations in continental Europe, the United States and Mexico, on top of Brazil and Turkey which they're hoping to exit, where the returns are less than the UK - and in some cases even negative. Even with free banking, HSBC's UK bank manages to be one of its more profitable segments, and a market where they do have the scale to be profitable.

    As a formerly frustrated shareholder, it just doesn't make sense to me to hive the UK bank with so many sub-par operations abroad left behind.
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  • planteria
    planteria Posts: 5,322 Forumite
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    Lith wrote: »
    It will be First Diect, or M&S Bank,

    I'll be surprised if it was actually Midland bank lol....

    Several websites report, that they will move hsbc account holders to First Direct.

    you think the whole of HSBC Business and Consumer banking might be re-branded as M&S Bank??

    First Direct has a chance, but i'll be very surprised.
  • planteria
    planteria Posts: 5,322 Forumite
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    Thrugelmir wrote: »
    The wider trend of downsizing and consolidation though would have an impact on Scotlands financial services sector. One wonders ultimately what will be left of RBS. A Williams and Glyns branch network in Scotland?

    i would guess that will be the part that is sold off.. and that RBS retains the RBS-branded branches in Scotland, along with NatWest and Private banking. unless i've missed something..
  • planteria
    planteria Posts: 5,322 Forumite
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    interesting points Scarpacci..
    WestonDave wrote: »
    So my guess is that it will either be a revived Midland or a completely new brand - either way it will then be sold off as a seperate entity as from what I hear HSBC don't really want it any more.

    i am Midlands-biased, so am hoping that the Midland brand will be revived, but more importantly that the new UK HQ proceeds as planned..as seems to be the case. whether 'Midland' Bank will remain part of HSBC Bank plc or finish up as a separate bank will be interesting. Perhaps the Birmingham-based Midland Bank plc will be a separate listed entity fairly soon:think:
  • System
    System Posts: 178,371 Community Admin
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    IMO HSBC / Midland, if anything, will expand in Scotland.

    Williams and Glyn will operate in handful of branches that NatWest have in Scotland and almost all RBS in England / Wales.

    Barclays leapfrogged (HSBC) overnight by converting the Woolwich branches to increase it's Scottish footprint.
    Thrugelmir wrote: »
    The wider trend of downsizing and consolidation though would have an impact on Scotland's financial services sector. One wonders ultimately what will be left of RBS. A Williams and Glyn branch network in Scotland?
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  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Scarpacci wrote: »
    That's all true, but it ignores the fact the UK retail operation is more profitable than the group average.

    The banking levy imposed on the Group as a whole wipes out this contribution. So isn't being ignored. Just makes little commercial sense. As the capital employed would earn a better return elsewhere.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    planteria wrote: »
    i would guess that will be the part that is sold off.. and that RBS retains the RBS-branded branches in Scotland, along with NatWest and Private banking. unless i've missed something..

    Float the Natwest off. Again to meet the requirements of ring fencing.
  • planteria
    planteria Posts: 5,322 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Thrugelmir wrote: »
    Float the Natwest off. Again to meet the requirements of ring fencing.

    Do you mean just NatWest or the Retail Bank of NatWest, RBS and the private banks?

    It will strange if there is a complete split with both HSBC and RBS having no retail banking divisions in the UK.
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