Technical Research on Credit Suisse and HSBC: Foreign Banks Provide Attractive Investment Opportunity

Tue Feb 26, 2013 8:01am EST

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LONDON,  February 26, 2013  /PRNewswire/ --

The banking sector is finally coming out of the shadows of the financial
meltdown. However, it still faces the aftermath as many of the industry
stalwarts are being made to pay for their lax security measures and consequent
errors. HSBC Holdings plc (NYSE: HBC) agreed to settle its foreclosure issues in
the U.S. by paying multi-million dollar fines. At the very same time, it faced
charges for failing to control money laundering actions in the U.S. Credit
Suisse Group (NYSE: CS), on the other hand, reported strong results for its
fourth quarter. Overall, banking sector is poised to do well but is required to
take care of the regulatory issues. StockCall has posted free technical research
reports on Credit Suisse and HSBC Holdings and these can be accessed by signing
up at

HSBC Holdings plc Settles Foreclosure Case

HSBC Holdings plc is undertaking major business restructuring efforts as it
divested its  Panama  business. The deal is likely to be worth  $2.1 billion 
and the unit will be taken over by Bancolombia SA. Both parties expect the deal
to be finalized by the third quarter of this year. HSBC sold the unit to focus
on more lucrative markets such as  Argentina  and  Mexico. The banking company
earlier disposed of its units in  El Salvador  and  Costa Rica. The bank also
divested its stake in Chinese insurance company Ping An Insurance. At the very
same time, it has augmented its business in  Latin America  by boosting its
research team in the region. HSBC Holdings plc technical report can be accessed
for free by signing up at   

The banking company is facing its own set of regulatory issues as it is
currently embroiled in money laundering scandal. HSBC Holdings plc will pay 
$1.9 billion  in fines for failing to implement proper anti-money laundering
controls. The banking company also dealt with foreclosure issues by reaching a
settlement deal in the U.S. For this purpose, the company would be paying fines
worth  $249 million. Despite these negative occurrences, HSBC Holdings plc stock
grew 21 percent in the past 12 months and is expected to perform well. The stock
also offers 3.31 percent dividend yield, making it an attractive stock for
income investors.

Credit Suisse Group Sells European ETF Business

Credit Suisse Group reported its fourth quarter results. The company
successfully curtailed its costs to boost margins. Credit Suisse Group's net
profit for the quarter stood at  $435 million, up from the net loss of  $698
million  it had incurred for the corresponding quarter of the last year. For
fiscal year 2012, it earned  $1.62 billion  in net income, down 24 percent. The
bank is striving to cut its costs by year 2015. It also reported strong
performance of its wealth management unit. Download the free report on Credit
Suisse Group upon registration at   

Credit Suisse Group's stock is up 15 percent on YTD basis and it offers 2.91
percent dividend yield. The stock offers good investment opportunity with its
strong capital growth and robust dividend. It is expected to perform better as
the banking company goes ahead with its cost-cutting measures. It is also
divesting its businesses to streamline the operations. The company's European
ETF business is being bought by BlackRock. The unit was put on the block by
Credit Suisse Group in October last year. Overall, the Swiss-based bank is set
to provide good returns to its investors.

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