Latest news with #Asia-focused
Yahoo
2 days ago
- Business
- Yahoo
2 dirt cheap FTSE 100 shares! Which should investors consider in June?
There's no shortage of undervalued FTSE 100 stocks to choose from today. But which of these two banking giants could be the better share to consider as summer kicks off? Let's take a look. Lloyds' (LSE:LLOY) share price has rocketed more than 40% since the start of 2025. Yet concerns over weak economic conditions and multi-billion-pound misconduct charges means it still looks dirt cheap on paper. The bank trades on a forward price-to-earnings growth (PEG) ratio of 0.6. A figure below 1 indicates a share is undervalued. Meanwhile, a 4.4% dividend yield beats the Footsie average by around a percentage point. Hopes over sustained interest rate cuts continue to propel Lloyds' shares higher. Further Bank of England-induced interest rate reductions might help kick-start economic growth, boosting credit demand from businesses and consumers. Its effect could be especially beneficial for homes sales and therefore mortgage uptake, a key area for the company. Lloyds' market share here stands at around 19%. Despite a recent inflationary uptick, I'm confident interest rates will keep falling over the year and into 2026. But this doesn't necessarily mean a 'net win' for the banks. Falling rates are a double-edged sword, as they also weigh on net interest margins (NIMs). This is the difference between what the likes of Lloyds charge borrowers and pay to savers. The Black Horse Bank's margins are already under threat as competition rises across its product lines. I'm also concerned about the prospect of rising impairments as the UK economy struggles. During Q1, the company's underlying impairments soared to £309m from £57m the year before. My biggest fear however, relates to the possibility of crushing penalties if the bank's found guilty of mis-selling car finance. Some believe the £1.2bn it's set aside for such a scenario could be a drop in the ocean. A crisis on the scale of the historical PPI scandal could prove catastrophic for Lloyds' share price along with its dividend. Largely speaking, Asia-focused HSBC (LSE:HSBA) faces the same opportunities and threats as Lloyds right now. While it's not dependent on the UK to drive earnings, it has considerable exposure to China where economic conditions remain tough and is vulnerable to escalating trade wars. However, I think the emerging market bank is a far more attractive proposition to consider. Despite difficulties on the ground, the performance of its core units remain resolute. Underlying revenues and pre-tax profit increased 7% and 11% respectively in the opening quarter. Profits beat forecasts by mid-teen percentages, even though impairments ticked up year on year. Today, HSBC shares trade on a forward price-to-earnings (P/E) ratio of 8.8 times, beating Lloyds' shares (10.9 times) by a healthy margin. The bank's dividend yield is 5.7%, also a healthy distance above its FTSE 100 peer. However, its PEG ratio of 1.3 is less impressive. But, on balance, I think it's the more attractive blue-chip bank to consider today. Its share price is up 11% in 2025 so far and has further scope to rise, driven by surging banking product penetration from current low levels. And unlike Lloyds, it doesn't have a potentially costly motor finance investigation to tackle. Of the two, I much prefer it. The post 2 dirt cheap FTSE 100 shares! Which should investors consider in June? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool HSBC Holdings is an advertising partner of Motley Fool Money. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended HSBC Holdings and Lloyds Banking Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
HSBC vs. SAN: Which Global Bank Deserves a Spot in Your Portfolio?
HSBC Holdings plc HSBC and Banco Santander S.A. SAN are two of Europe's leading multinational banks, with an extensive global footprint. While HSBC is intensifying its pivot toward Asia (seeking to capitalize on the region's faster economic growth), SAN is reinforcing its position in its core markets across Europe and the Americas, with primary focus on retail and commercial banking. The key question is: Can HSBC's Asia-focused growth strategy outperform Santander's Europe and Americas-centric approach? To find out which stock presents the better investment opportunity, let's examine the underlying factors driving each bank's performance. London-based HSBC is doubling down on its Asia-focused strategy as the core of its long-term growth plan. It aims to become a leading wealth manager for high-net-worth and ultra-high-net-worth clients in Asia, which now accounts for more than half of its operations. In mainland China, HSBC is rapidly expanding its wealth business by launching integrated lifestyle-based wealth centers in key cities, acquiring Citigroup's retail wealth portfolio, investing in digital capabilities and hiring talent to strengthen its Premier Banking, Private Banking and Asset Management India, HSBC is aggressively scaling its presence. The bank received approval from the Reserve Bank of India to open 20 new branches, significantly expanding beyond its current footprint of 26 branches in 14 cities. With India's ultra-high-net-worth population projected to surge 50% by 2028, HSBC is positioning itself to capture this growth through its Global Private Banking platform (launched in 2023), the acquisition of L&T Investment Management (2022) and ongoing enhancements to its Premier Banking Asia, HSBC is taking steps to streamline and refocus its global operations. In early 2025, it announced a $1.5 billion cost-saving plan tied to organizational simplification, with estimated upfront charges of $1.8 billion by 2026. The bank is redeploying another $1.5 billion from underperforming or non-core areas into strategic part of its global restructuring, HSBC has exited or divested operations in the United States, Canada, Argentina, Russia, Greece, New Zealand, Armenia and retail banking in France and Mauritius. It is also winding down certain investment banking activities in the U.K., Europe and the United States, and reviewing its operations in markets like Germany, South Africa, Bahrain and Malta to sharpen its focus and improve revenue generation at HSBC has been subdued over the past several quarters. While the interest rate environment across the world improved, the financial impact of the challenging macroeconomic backdrop continues to weigh on the company's top-line growth. Not-so-impressive loan demand and a tough macroeconomic environment in many of its markets are concerning. Santander, one of Spain's largest lenders, is actively streamlining operations and reallocating resources to strengthen its presence in high-growth markets across Europe and the Americas. In May 2025, it announced the sale of a 49% stake in its Polish banking unit, part of a broader effort to focus on more profitable markets. Following this transaction, Santander expects its CET1 capital ratio to temporarily exceed its 12–13% target, with plans to reinvest strategically and maintain financial €3.2 billion in capital released from the sale will be returned to shareholders through share buybacks, supporting Santander's €10 billion buyback target for 2025–2026. The redeployment of capital is also expected to be earnings-accretive by 2027–2028, driving growth via a mix of organic expansion, acquisitions and continued shareholder returns. This approach will enhance the bank's flexibility to scale in key regions, including Western Europe and the the United States, Santander plans to close around 20 retail branches—5% of its network—by August 2025, aligning with a growing customer shift to digital banking. This supports the rapid expansion of Openbank, SAN's digital banking platform. Openbank, originally launched in 2017, is now Europe's largest fully digital bank by deposits and operates in several countries, including Spain, Germany and these initiatives is the One Transformation program, launched in 2014, to drive digitalization, operational efficiency and customer-centric growth. The program has unified the operating model for Retail and Commercial Banking, reduced costs and improved service delivery. These efforts have kept Santander on track to hit its 2025 targets, including €62 billion in revenues and solid growth in fee income. The Zacks Consensus Estimate for HSBC's 2025 and 2026 earnings indicates 5.1% and 3% growth, respectively. Over the past month, earnings estimates for 2025 have moved north, while for 2026, it has been revised lower. Earnings Trend Image Source: Zacks Investment Research On the contrary, analysts are more optimistic about SAN's prospects. The consensus mark for 2025 and 2026 earnings suggests an increase of 15.7% and 7%, respectively. Also, over the past 30 days, earnings estimates for 2025 and 2026 have been revised upward. Earnings Trend Image Source: Zacks Investment Research This year, Santander's shares have performed extremely well on the bourses compared with HSBC. The SAN stock has soared 76.6% on the NYSE, while HSBC gained 19.6%. Further, the industry has rallied 23.2% in the same time frame. YTD Price Performance Image Source: Zacks Investment Research Valuation-wise, HSBC is currently trading at a 12-month trailing price/tangible book (P/TB) of 1.06X, higher than its five-year median of 0.75X. The SAN stock, on the other hand, is currently trading at a 12-month trailing P/TB of 1.36X, which is higher than its five-year median of 0.71X. Further, both are trading at a discount to the industry average of 2.29X. P/TB TTM Image Source: Zacks Investment Research Thus, HSBC is inexpensive compared to HSBC's return on equity (ROE) of 12.55% is slightly above SAN's 12.26%. This reflects HSBC's efficient use of shareholder funds to generate profits. ROE Image Source: Zacks Investment Research Santander appears to be the better investment opportunity, given its stronger near-term earnings outlook and superior stock performance. The company's strategic capital redeployment and digital transformation via Openbank provide strong catalysts for sustained profitability. Furthermore, its year-to-date stock rally demonstrates solid investor confidence relative to HSBC's modest HSBC's pivot to Asia and high-net-worth wealth management could yield significant long-term gains, especially as India and China's affluent classes expand. Its disciplined global exit strategy and cost-saving plan may improve returns. Yet, muted revenue growth and weak earnings performance raise near-term concerns. While HSBC trades at a more attractive valuation and has a slightly better ROE, Santander's higher growth momentum and aggressive capital return strategy make it the better bet present, HSBC and SAN carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Banco Santander, S.A. (SAN) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Business Wire
26-05-2025
- Business
- Business Wire
Shareholder Activism in Asia Reaches Record High, Driving Corporate Governance Reforms, According to Diligent
SINGAPORE--(BUSINESS WIRE)--Shareholder activism in Asia has reached a record high, with over 200 companies targeted in both 2023 and 2024, up from 134 in 2021, reflecting the growing importance of corporate governance and shareholder engagement across the Asia-Pacific region. The Diligent Market Intelligence: Shareholder Activism in Asia 2025 report from Diligent provides a comprehensive analysis of key activism trends across the region. According to the report, Japan has emerged as the most active force in the wider Asian market, with 108 campaigns advanced by activists in 2024, a 74% increase from 2018. Despite the market turbulence that abruptly changed the course of the season for many other global markets in the opening quarter of 2025, Japan has remained largely insulated from such upheaval with 19 new campaigns launched in the three-month period. South Korea has also been a busy market for activists, with 78 public campaigns in 2024, a year many considered to be a watershed moment. This represented a significant increase from 16 campaigns in 2018 and just eight in 2019, although a changing political landscape appears to have weighed on overall activity in Q1 2025. 'This increasing interest in the Asia market continues to be fueled by governments prioritizing corporate governance reform and activists bolstering their teams to capitalize on emerging opportunities,' said Josh Black, Editor-in-Chief at Diligent Market Intelligence. 'In Japan, the largely domestic focus has meant activism continues to thrive in spite of geo-political tensions and other headwinds.' The report also examines three other themes that both Asia-focused boards and investors should have on their radar: Governance Reforms: A Top Priority for Activists Elevating governance and related disclosures are priority focus areas for activists operating in Asia. In the first three months of 2025, 17 such demands were advanced at Japan-based companies, and 16 in South Korea. Key Players in the Activist Landscape Japan-focused Strategic Capital was ranked as the top activist player in the region on the Diligent Market Intelligence dedicated watchlist, followed by Align Partners Capital Management, operating in South Korea. In joint-third place are Hong-Kong based Oasis Management Company and Dalton Investments, both with a focus on Japan. Rising Activism in Emerging Markets As Asia continues to attract the attention of foreign investors, Hong Kong has emerged as the third-most active market in the region, with the volume of public campaigns peaking in 2024. Singapore also saw a peak in activity last year. Demands to appoint or remove personnel were most common in both countries during this period. To download the full Diligent Market Intelligence report, which also features data sets examining activism trends in China, Malaysia and Taiwan, click here. About the Report The report contains full year data range from 2018 to 2024, as well as 2025 Q1 trends from Diligent Market Intelligence's Activism, Voting, Governance and Shorts module. Further data with bespoke analysis is available on request. For more information, email About Diligent Market Intelligence Diligent Market Intelligence (DMI) is a market-leading provider of shareholder activism, investor voting, and corporate governance data. Through its web application and data feeds, clients can access the most complete solution for listed company intelligence on the market, with broader and deeper insights than ever before. About Diligent Diligent is the AI leader in governance, risk and compliance (GRC) SaaS solutions, helping more than 1 million users and 700,000 board members to clarify risk and elevate governance. The Diligent One Platform gives practitioners, the C-Suite and the board a consolidated view of their entire GRC practice so they can more effectively manage risk, build greater resilience and make better decisions, faster. Learn more at Follow Diligent on LinkedIn and Facebook.
The Star
26-05-2025
- Business
- The Star
Asian hedge funds regain lost ground in May, increasing leverage
A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 8, 2025. REUTERS/Brendan McDermid/File Photo HONG KONG: Asian equity-focused hedge funds have risen in May, erasing April's tariff-driven losses and returning to year-to-date highs on the back of broad market gains. Asia-focused fundamental long-short hedge funds have posted a gain of 1.6% so far this month, bringing year-to-date performance back to the first-quarter high of 6.1%, according to a Goldman Sachs note citing data as of May 22. A strong stock market rebound, fueled by the U.S.-China agreement to temporarily slash tariffs, helped regional managers recover from early April losses, the bank said. By country, China-focused fundamental managers have returned 1.3% in May, while Japan-focused peers are up 0.8%, Goldman Sachs estimated. However, the gains lag major benchmarks, as many funds had aggressively cut positions amid extreme volatility in early April. The MSCI Asia-Pacific Index has advanced more than 4% this month. "The V-shaped recovery was hard to trade for some," said Patrick Ghali, managing partner of hedge fund advisory firm Sussex Partners. Depending on positioning, Asian hedge funds' performance has diverged since April and "we will see a lot more dispersion of returns", he added. Goldman Sachs noted dispersion is particularly high in hedge funds trading Japanese shares. Despite ongoing tariff and geopolitical uncertainties, most hedge funds appear more willing to take on risk. Net exposure among Asian equity hedge funds jumped to 50.8% as of May 22, up from 46% at the end of April, Goldman Sachs says. - Reuters
The Print
23-05-2025
- Business
- The Print
2025 Asia Grassroots Forum in Bali Draws Global Investor Interest in the Grassroots Economy
Bali [Indonesia], May 23: The 2025 Asia Grassroots Forum hosted by Amartha in collaboration with Accion, Women's World Banking and Maj Invest concluded today in Bali. Themed 'Scaling Impact, Pioneering an Entrepreneurial Society,' the event brought together over 700 investors, policymakers, changemakers, and innovators from more than 15 countries to spotlight the potential of Asia's grassroots economy. * Robust attendance at the 2025 Asia Grassroots Forum in Bali on May 22, 2025 reflects growing global interest in impact investing in Asia, and highlights the potential of the grassroots economy. 'The grassroots economy holds immense untapped possibilities in ASEAN and the Global South,' said Amartha Founder and CEO Andi Taufan Garuda Putra. 'We know this from our experience at Amartha, empowering over 3.3 million rural borrowers in Indonesia over the past 15 years. Together with our partners and the delegates here today, it is inspiring to see that so many stakeholders, including global players, are increasingly aware and willing to take action.' According to the 2024 Impact Investing in Asia Report, global investors are increasing their focus to Southeast Asia, with 49 percent planning to expand their allocations throughout 2025. The report also reported that 89 percent of Asia-focused impact investors surveyed reported that their financial returns were outperforming or performing in line with expectation.[1] Over a full day of dynamic discussions among thought leaders, policymakers, investors, startups, NGOs, innovators and academics, participants explored how to catalyze bottom-up growth, along with its opportunities and challenges. Speakers at the 2025 Asia Grassroots Investments included impact investing representatives from Accion, Women World's Banking, Maj Invest, BEENEXT, LeapFrog, Abler Nordic, UOB Venture Management and Teja Ventures, as well as global banks such as Standard Chartered and Deutsche Bank. Also in attendance were policymakers, venture capital firms, BNI Ventures, Mandiri Capital Indonesia, microfinance, fintechs, academics, changemakers and innovators, and more. Njord Andrewes, Managing Partner, Accion Digital Transformation, said, 'Companies like Amartha are unlocking the potential of the grassroots economy in a sustainable way, showing that serving this segment can deliver social impact and financial returns. With small businesses vital for the continued growth of emerging markets, there is now global interest in the potential of the grassroots economy. We are partnering with Amartha to provide both strategic support and growth capital, as they connect businesses across Indonesia to responsible financial services for the first time using digital technologies.' Within the ASEAN grassroots economy, MSMEs make up 97% of the private sector, contributing to 85% of the labor force, 45% of regional GDP, and 10-30% of exports. [2] However, many MSMEs In emerging economies and developing countries still face significant barriers, the more so for women. For example, women-owned businesses in these areas face an $1.9 trillion financing gap, highlighting the significant barriers women entrepreneurs face in accessing financing. [3] Sanjay Sehgal, Managing Director & CIO of Women's World Banking noted, 'We believe gender-lens investment is essential to promoting inclusive growth. Partnering with organizations like Amartha, which shares our commitment to reaching women in underserved rural areas, allows us to design and scale solutions that are truly inclusive. By embedding gender-intentional strategies into financial services, we can close the gender gap and build more resilient, equitable economies for all'. Addressing this gap, Amartha's success in using tech to serve rural female micro-entrepreneurs at scale has attracted the support of global institutional investors including IFC, Women's World Banking, Accion, Community Investment Management, and many more. 'The aim of the 2025 Asia Grassroots Forum is to build interest and cross-sector partnership from investors and other stakeholders, including policymakers and innovators, to harness technology and capital towards inclusive growth for all,' finished Taufan. [1] In Focus: Impact Investing in Asia 2024 [2] Investing in ASEAN: Investment Report [3] MSME Finance Gap Report About Amartha PT Amartha Mikro Fintek (Amartha) has a mission to improve the welfare of the grassroots segment, through digital financial services for the grassroots segment. Founded in 2010, Amartha is now growing to build a microfinance ecosystem through capital loan, risk segmentation and payment services. Amartha advances the bottom of the pyramid by increasing the competitiveness of MSMEs. Thus, we empower more women's MSMEs, create jobs and build more inclusive economic growth. As of September 30, 2024, Amartha, which is licensed and supervised by the Financial Services Authority (OJK), has disbursed working capital loans of more than 35 trillion rupiah to 3.3 million MSMEs, of which more than 90 percent are led by women, spread across more than 50,000 villages throughout Indonesia. About The 2025 Asia Grassroots Forum The 2025 Asia Grassroots Forum, hosted by Amartha, is a critical meeting place for entrepreneurs, investors, policymakers and innovators across Asia to address the most pressing challenges in emerging markets. The forum will be held on 21 – 23 May 2025 at the Grand Hyatt Nusa Dua Bali, with the aim of accommodating concrete ideas from stakeholders to generate innovations that drive the progress of the grassroots economy in Asia. Visit (ADVERTORIAL DISCLAIMER: The above press release has been provided by PRNewswire. ANI will not be responsible in any way for the content of the same) This story is auto-generated from a syndicated feed. ThePrint holds no responsibility for its content.
