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

Feb 26, 2013, 08:00 ET from

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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