Boston, MA 08/05/2014 (wallstreetpr) – When the financial turmoil hit financial market globally, everybody left the hope that things would ever come back on track, but they did. Although past few months have brought quite a few uncertainties in the market due to issues going on in Arabian countries, but still the economy is inclining slowly and steadily. Stuart Gulliver, the chief executive officer of HSBC Holdings plc (ADR) (NYSE:HSBC) thinks that this upliftment in economy will bring positive results in the near future.
Although HSBC is the biggest bank of Europe, but it’s not unaffected by the global financial uncertainties, and therefore, it posted comparatively weaker financial performance in the first half of the year. Stuart Gulliver said, “The world economy is strengthening with each day and at the same time the interest rates are going up. If it continues in the future, then revenues will surely boost up in 2015.”
Financial Result:
According to reports, the earnings before tax of HSBC Holdings plc (ADR) (NYSE:HSBC) went down by 12%, from $14.1 billion to $12.3 billion a year. It is the first time since the global turmoil in 2009 when the earnings of HSBC have declined. The revenue of the company has also declined by 9.3% and comedown to $31.2 billion.
Bank’s strategy to overcome from negative financial outcomes:
Stuart Gulliver took over the CEO’s profile in HSBC Holdings plc (ADR) (NYSE:HSBC) in 2011, and since that he has bid adieu around 68 businesses. His main objective has been to invest in most profitable options amongst increased compliance costs and regulations. Interest rates in UK are likely to rise by the Q4 of 2014; therefore, he thinks that year 2015 will be full of positive outcomes in terms of revenues.
His views have been supported by Goldman Sachs’ analysts who think that HSBC will gain most advantage in case borrowing cost in Europe increase in the future. Stuart said in a press conference, “We expect a hike in borrowing cost by the end of Q4, which will result in higher revenues for the bank. It will take at least six months before increment in borrowing cost will result in higher revenues for the bank.”
