本文发表在 rolia.net 枫下论坛LONDON — HSBC PLC, Europe's largest bank by market value, said Monday it will raise $17.7-billion (U.S.) in new capital through a share issue and cut 6,100 jobs in the U.S. after reporting a 70 per cent drop in profits in 2008.
Net profit fell to $5.7-billion last year from $19.1-billion a year earlier as the company wrote down the value of assets, particularly in the U.S.
Net interest income rose to $42.6-billion from $37.8-billion in 2007.
HSBC said it will scale back its consumer lending operations in the U.S., shutting down its HFC and Beneficial brands, causing a loss of 6,100 jobs. But the company said its retail bank branch business in the U.S. will not be affected by this decision.
HSBC is raising money through a rights offering
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HSBC's Tier 1 capital ratio — a key indicator of a bank's financial strength — fell to 8.3 per cent in 2008 from 9.3 per cent a year earlier, but it said the share issue would boost that to 9.8 per cent.
"This capital raising will enhance our ability to deal with the impact of an uncertain economic environment and to respond to unforeseen events," said chief executive Stephen Green in the earnings report.
The $17.7-billion will be raised in a rights issue and is meant to shore up the company's capital position without resorting to government handouts.
The company, which unlike rivals Royal Bank of Scotland PLC and Lloyds Banking Group PLC has avoided taking government bailout funds, cut its dividend to $0.64 per share, a 29 per cent decrease from 2007.
The market was not encouraged by HSBC's earnings report, sending the shares down 9 per cent in early morning trading Monday on the London Stock Exchange.更多精彩文章及讨论，请光临枫下论坛 rolia.net
Net profit fell to $5.7-billion last year from $19.1-billion a year earlier as the company wrote down the value of assets, particularly in the U.S.
Net interest income rose to $42.6-billion from $37.8-billion in 2007.
HSBC said it will scale back its consumer lending operations in the U.S., shutting down its HFC and Beneficial brands, causing a loss of 6,100 jobs. But the company said its retail bank branch business in the U.S. will not be affected by this decision.
HSBC is raising money through a rights offering
Related Articles
Recent
* AIG to get up to $30B more in aid: reports
The Globe and Mail
HSBC's Tier 1 capital ratio — a key indicator of a bank's financial strength — fell to 8.3 per cent in 2008 from 9.3 per cent a year earlier, but it said the share issue would boost that to 9.8 per cent.
"This capital raising will enhance our ability to deal with the impact of an uncertain economic environment and to respond to unforeseen events," said chief executive Stephen Green in the earnings report.
The $17.7-billion will be raised in a rights issue and is meant to shore up the company's capital position without resorting to government handouts.
The company, which unlike rivals Royal Bank of Scotland PLC and Lloyds Banking Group PLC has avoided taking government bailout funds, cut its dividend to $0.64 per share, a 29 per cent decrease from 2007.
The market was not encouraged by HSBC's earnings report, sending the shares down 9 per cent in early morning trading Monday on the London Stock Exchange.更多精彩文章及讨论，请光临枫下论坛 rolia.net