HSBC Holdings plc (HSBC - Free Report) seeks to waive some banking fees beginning November 2020, with an aim to better compete with rival virtual banks. The news was first reported by South China Morning Post.
Per the article, the lender would scrap fees for about 26 general banking and transaction services, such as deposit and withdrawal of foreign currency banknotes, requests for banker's reports and documents, passbook replacement, global fund transfers and remittances. Previously, in August 2019, HSBC had removed minimum balance fee. With this move, the company is likely to benefit from 4 million client base in Hong Kong.
The U.K. based lender will retain fees for annual paper statements, penalty for late payment of credit card bills, annual fees for certain credit cards, and commissions related to sale of stocks, insurance and wealth management products.
"Today's cut reflects our commitment to making sure that everyone has the tools they need to thrive financially," the article quoted Greg Hingston, regional head of wealth and personal banking for Asia-Pacific. "We hope it will also help customers who have been hit hard by Covid-19's economic fallout." he added.
By waiving fees, HSBC seeks to support customers who have been hit hard by the pandemic. Also, the move will help it attract more new customers while keeping existing clients happy and will help cross-sell loans and other financial products.
The article further reported that HSBC plans to move all its HSBC Advance account holders to a new integrated product called HSBC One, effective Oct 27. Other retail accounts, which offer banking and investment services, will also be converted to HSBC One at a later date.
Post this change, HSBC One will no longer require clients to keep a minimum balance in their account, while HSBC Advance will be requiring them to hold at least HK$200,000 in their deposit account or take out a loan of the same amount.
The global economic slowdown, a low interest rate environment and the Brexit-related uncertainties are likely to keep dampening HSBC’s financials. Further, expenses might flare up in the near term on the bank’s growth initiatives in China and digital-capability boosting efforts.
Shares of HSBC have lost 33% over the past six months compared with 5% decline recorded by the industry.
Currently, HSBC carries a Zacks Rank #5 (Strong Sell).
Old Second Bancorp (OSBC - Free Report) has witnessed upward earnings estimate revisions for 2020 over the past 60 days. Also, this Zacks #2 Ranked (Buy) stock has lost 6.4% over the past six months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Independent Bank Corporation (IBCP - Free Report) ongoing-year earnings estimates have moved up in the past 60 days. Further, the company’s shares have declined 13.7% over the past six months. At present, it carries a Zacks Rank of 2.
Community Bank System, Inc. (CBU - Free Report) current-year earnings estimates have moved north in 60 days’ time. Additionally, the stock has gained 7.4% over the past six months. It currently carries a Zacks Rank #2.
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