HSBC Post Huge Profits
In a very obvious sign that they have somewhat turned the corner in regards to their operating profits, HSBC have just posted a huge 32% increase in profits, which did take many traders by surprise yesterday,
That increase saw that 32 percent increase in profits resulting in a $6.1billion profit for the three months up to September of this year which was considerably more than $5.2billion most industry experts and commentators had been expecting.
One of the main reasons for that sharp jump in profits was down to HSBC going on something of a cost cutting exercise, and also the fact that fines they had been expecting to pay for misdemeanours in the past was not as high as they had been expecting.
What did happen yesterday however even with those higher than expected profits, was that shares in HSBC actually dipped in value by some 1.1 per cent, which saw their shares losing or 5.4p on the London Stock Exchange meaning each share is now valued at 502.2p!
It is often the case that when any banking institution in particular declares much higher than expected profits their share values increase immediately after such an announcement. However, with HSBC seeing an overall downturn in revenues of some 4 percent the long term profitability may not be as high as many traders and investors were hoping for.
However, by declaring an increase in profits and with the likelihood of any additional and ongoing fines from regularity bodies now looking slim it may be worth you considering placing a few well throughout Binary Options trades on HSBC.
Whilst other banking institutions are still suffering quite badly due to various different reasons including losses caused by huge fines and a loss of business, there are certainly plenty of profitable trades that you can place. We mentioned that shares in Lloyds Bank were worth watching in October due to the UK Government selling.
Be aware that many trading houses and experts are listing HSBC shares as a buy option for their customers and that is a good indication that over the mid to long term there may be something of an increase in their share price likely to happen, so do keep that in mind if you are tempted to place any type of Binary Option trades on HSBC.
One other aspect regarding HSBC worth keeping in mind is that a decision is expected by the end of the year whether they will move their head office out of London and relocate it to Hong Kong.
