HSBC shares slump as finance chief set to exit

HSBC (NYSE: HSBC) appointed Hannes Hofmann to lead its global family office and Cayman Wills to oversee U.S. private banking. The bank offers a 3.57% dividend yield but is deemed overvalued with a GF Value of $63.22 vs. current price of $105.05. HSBC's GF Score is 58/100, indicating mixed financial performance.

FCNR(B) deposits in India reached $136.4 billion. ICICI Bank led with $17.88 billion (18% share), while RBL Bank and foreign banks like HSBC and Standard Chartered also saw significant inflows. Competitive rates and international operations drove success.

ICICI Bank, HSBC, and RBL Bank were major beneficiaries of India's FCNR(B) deposit scheme, according to brokerage reports. ICICI Bank captured 14-18% of the $136.4 billion inflows, while HSBC secured 22%. RBL Bank also exceeded its typical market share. Banks with aggressive pricing and overseas balance sheets saw significant gains.

Hong Kong's Monetary Authority (HKMA) issued its first stablecoin licenses to Anchorpoint Financial and HSBC's Hong Kong entity, under a new regulatory framework. Anchorpoint is a joint venture involving Standard Chartered Bank Hong Kong. The approvals follow a delayed timeline, with the regime taking effect in August 2025. The framework mandates reserve backing, redemption rights, and AML controls for issuers.

HSBC has appointed a former Northern Trust executive as the head of its securities services in Luxembourg. The executive previously held senior roles at several financial institutions, including FundBank, IKANO Advisory Management, Chase Manhattan Bank, and Price Waterhouse.

Shore Capital reiterated a 'sell' rating on HSBC (HSBA, HSBC), citing a high valuation and a 1,335p target price, implying 13% downside. HSBC management reported strong trading across most businesses, healthy wealth client acquisition, and growing fee income. However, Shore Capital warned of potential future profitability challenges and an optimal but unsustainable interest rate environment.