{"id":802,"date":"2007-04-26T19:19:03","date_gmt":"2007-04-26T23:19:03","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=802"},"modified":"2007-04-26T19:19:03","modified_gmt":"2007-04-26T23:19:03","slug":"hsbc-tier-1-capital","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=802","title":{"rendered":"HSBC Tier 1 Capital"},"content":{"rendered":"<p>HSBC has released its <a href=\"http:\/\/www.hsbc.ca\/1\/PA_1_1_S5\/content\/canada2\/assets\/corporate\/2006_AnnualReport.pdf\">2006 Annual Report<\/a>, so I thought I&#8217;d take a look at their regulatory capital to see if any issues can be hoped for from that direction. I&#8217;ve discussed Tier 1 Capital before in a mini-series of posts:\u00a0<a href=\"http:\/\/www.prefblog.com\/?p=547\">Part 1<\/a>, <a href=\"http:\/\/www.prefblog.com\/?p=558\">Part 2<\/a> &#038; <a href=\"http:\/\/www.prefblog.com\/?p=561\">Part 3<\/a>.<\/p>\n<div align=\"center\">\n<table border=\"1\">\n<tr>\n<td colspan=\"2\">HSBC Tier One Capital\u00a0\u00a0<\/p>\n<p>(From\u00a0December 31, 2006 Financial Statements)<\/td>\n<\/tr>\n<tr>\n<td>Total Tier 1 Capital (millions)<\/td>\n<td>3,283<\/td>\n<\/tr>\n<tr>\n<td>Common Shareholders&#8217; Equity<\/td>\n<td>76.7%<\/td>\n<\/tr>\n<tr>\n<td>Preferred Shares<\/td>\n<td>10.7%<\/td>\n<\/tr>\n<tr>\n<td>Innovative Tier 1 Capital Instruments<\/td>\n<td>12.2%<\/td>\n<\/tr>\n<tr>\n<td>Non-controlling interests in subsidiaries<\/td>\n<td>0.9%<\/td>\n<\/tr>\n<tr>\n<td>Goodwill<\/td>\n<td>-0.5%<\/td>\n<\/tr>\n<\/table>\n<\/div>\n<p>So if they wished, they could issue addition non-cumulative perpetuals to a total of 2.1% of capital, or $69-million worth, and have them all included in Tier 1 Capital &#8211; unfortunately, such a small issue scarcely seems worthwhile.<\/p>\n<p>And, unfortunately, not only do their two outstanding issues (HSB.PR.C &#038; HSB.PR.D) pay a dividend that&#8217;s not a lot more than market rates, but they&#8217;re not redeemable until 2010, either.<\/p>\n<p>So &#8230; probably not much issuance from that quarter! Unless, of course, Canada&#8217;s banking laws triumphantly enter the 19th century, and HSBC developes an appetite for one of the big five!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>HSBC has released its 2006 Annual Report, so I thought I&#8217;d take a look at their regulatory capital to see if any issues can be hoped for from that direction. I&#8217;ve discussed Tier 1 Capital &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[],"class_list":["post-802","post","type-post","status-publish","format-standard","hentry","category-regulatory-capital"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/802","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=802"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/802\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=802"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}