Name of opportunity: 👀
HSBC Holdings Inc
Ambitious plan to target the ‘mass affluent’: 🫰
Earlier this week, HSBC told the news agency Reuters, known for its coverage of financial matters, that it aimed to double the assets under management in its wealth business to reach US$131 billion in the next 5 years. The bank’s head of wealth and personal banking UK, Jose Carvalho, indicated that HSBC would now be targeting the ‘mass affluent’ - high net worth individuals and households who are not as wealthy as the super rich but who have enough money that they might consider seeking wealth management services.
How hot is this investment opportunity? 🔥🔥🔥🔥
HSBC is currently considered a ‘Strong Buy’ by analysts. Analysts predict the price of HSBC Holdings plc will increase from $44.11 to $51.25 in the next 12 months. If you invested $1000, you might profit $160.31.
In the bank’s interim report at the end of July, it shared that revenue was up 1.1% year-on-year to $37.3 billion. HSBC said that this was partly due to the success of Wealth and Personal Banking services - the same services it hopes to target the ‘mass affluent’ with. HSBC emphasised that it wanted to maintain a focus on customers in its key markets, the UK and Hong Kong, where the bank is highly successful and has shown a good track record of attracting new customers year-on-year.
The bank also announced a share buyback of up to $3 billion, which it aims will be completed within the next two months. By reducing the supply of available shares, this move typically gives share value a boost. This share buyback scheme also serves as a show of confidence and optimism from HSBC - demonstrating that management believe the shares are undervalued and should be priced higher.
Straight to the bank: 🏦
HSBC Holdings plc (HSBC) is a banking and financial services company. The Company’s segments include Wealth and Personal Banking (WPB), Commercial Banking (CMB) and Global Banking and Markets (GBM). Its roots go back to The Hongkong and Shanghai Bank founded in Hong Kong in 1865. In 1991 HSBC Holdings plc was established in London, becoming the parent company of the bank. The company has offices, branches and subsidiaries in 60 countries, and serves 41 million customers worldwide.
Which neme?: 🔍
‘Banks’, ‘What Analysts Say’, ‘Analyst Recommended’ and ‘Made in the UK’
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