Premarket London: HSBC 3Q Profit Falls 24%; Ferrexpo CEO Steps Aside

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© Reuters. © Reuters. — Here are the highlights of the regulatory news releases from the London Stock Exchange on Monday, 28th October. Please refresh for updates

  • HSBC abandoned its profitability target for 2020 and said it could face “substantial” restructuring charges in the current quarter as it accelerates a shake-up of underperforming divisions. It singled out continental Europe, the U.S. and its non-retail activities in the U.K. for “remodeling.
  • Net profit fell 24% on the year in the third quarter, while revenue fell 3.2%, due to “challenging market conditions”.
  • The bank no longer expects a return on tangible equity of over 11% next year, but it is maintaining its dividend and will still target a core tier 1 equity ratio, a key measure of financial strength, of over 14%.
  • oil and gas group Cairn Energy said it had drilled a dry hole in Alom-1 well off the Mexican coast, its first operated exploration well in Mexico.
  • The licence was awarded in Round 2.1 in 2017. Cairn holds a 50% working interest (WI) with JV partners Citla Energy (35%) and ENI (MI:) (15%)
    • Cairn had better news in India, where it said it expects the arbitration tribunal overseeing its claim for damages to issue an award by the summer of 2020.
    • Cairn said it “continues to have a high level of confidence in the merits of its claims in the arbitration and is seeking full restitution for losses of more than $1.4 billion.”
    • Ferrexpo said its controlling shareholder Konstantin Zhevago is to “step aside temporarily” as chief executive “to focus on resolving certain matters in Ukraine relating to one of the businesses he owned until 2015.”
    • Ukrainian media had reported earlier in the month that local authorities suspected him of embezzling up to $100 million from Finance & Credit, a bank that was declared insolvent in 2015. The company has said it had no knowledge of any formal steps against Zhevago.
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