HSBC Facing Limited Operational Impact From Madoff Case Litigation -- Market Talk

Dow Jones
10/27

0613 GMT - HSBC's booking of a $1.1 billion provision for a lawsuit related to the Madoff Ponzi scheme isn't entirely surprising, says Morningstar's Lorraine Tan. HSBC is appealing the amount, and though the additional charge to earnings this year could weigh on sentiment slightly, the impact should be limited, writes Tan, director of equity research (Asia). HSBC had already announced the suspension of shares buybacks for the next three quarters due to its acquisition of Hang Seng Bank, she notes. The bank guides that the impact to its CET1 ratio is going to be around 15 basis points. Morningstar's assumption is that HSBC's CET1 ratio will hover around 14% over the next 10 years. (fabiana.negrinochoa@wsj.com)

 

(END) Dow Jones Newswires

October 27, 2025 02:13 ET (06:13 GMT)

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