SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

HSBC reported that it more than doubled its Q4 profits. Q4 2021 net profits were up $1.1bn to $2bn and its annual net profits were up $8.6bn to $14.7bn. Revenue for the quarter rose 2% YoY to $12bn but was down 2% annually to $49.6bn. Annual results were boosted by a net release of $900mn in credit provisions as compared to a massive $8.8bn charge in 2020 as economic conditions improved. However, during Q4, the banking major made net provisions of $500mn including for “uncertainty” in China’s property sector. During the quarter, reported operating expenses were down 3% to $9.5bn and were nearly unchanged annually, at $34.6bn. During the year, all regions were profitable with its Asia operations contributing $12.2bn to reported profit before tax. Overall, its net interest margins for 2021 were down 12bp to 1.2%. The bank also announced a dividend of $0.18/share along with a $1bn buyback of shares. The group’s CET1 ratio stood at 15.8%, down 10bp YoY.

HSBC’s dollar bonds were stable with its 4% Perp at 95.99, yielding 5.11%.

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