HSBC

Ticker HSBA

Today's data summary

Market closed
% change
-0.27%
Price Pence
592.40
Change
-1.60
As of 00:30 21 Jan 2020
Market cap. Pound sterling
120,335.63 million
As of 00:30 21 Jan 2020

Latest updates

HSBC and First Direct online banking issues continue

HSBC sign
Getty Images

It would seem HSBC and its online and telephone bank First Direct are still having problems with their online banking systems, despite saying the issues had been fixed overnight.

Users on Twitter are complaining that they cannot log into their accounts.

HSBC has not provided an explanation for the issues other than to say: "The elves had just got out in our server rooms and run amok."

On Twitter, the company wrote: "However we've put them all back in their pen now, and everything is sorted."

But just minutes later, it acknowledged: "We are currently experiencing issues with our whole online banking system."

Labour promises to 'look at' overdraft fees

BBC Radio 5 Live

HSBC bank card
Getty Images

Shadow Business Secretary Rebecca-Long-Bailey has told BBC Radio 5 Live a Labour Government would look at interest rates on bank overdrafts and whether to cap them.

It comes after HSBC set all its overdraft fees at aninterest rate of nearly 40% - four times higher than some of its customers are currently charged. But it will scrap a daily £5 charge for unarranged overdrafts

She says: “It’s not fair and it’s why John McDonnell has talked about the rates charged on credit cards and overdrafts. Once you’re in your overdraft it’s difficult to come out of it.

"It’s something we certainly need to look at”

HSBC customers to face up to fourfold increase in overdraft charges

HSBC sign
Getty Images

All HSBC customers will see their arranged overdraft interest rates shoot up from next March following a similar move from Nationwide earlier this year, MoneySavingExpert has warned.

Current rates are between 9.9% and 19.9% but all account holders will be charged 39.9% after legislation has forced banks to charge a single interest rate for arranged overdrafts.

"With both of the first banks to announce changes moving overdraft interest rates to around 40%, we have to wonder if this is the new normal," said Helen Saxon, banking editor at MSE."While it's a step forward to cut punishing over-limit fees and to make overdraft costs more transparent, this change will actually make everyone who is in their arranged overdraft and owes more than £25, worse off - whichever HSBC account they hold."

HSBC 'warned on financial crime risks'

HSBC logo
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Banking giant HSBC has been warned twice by the Bank of England that it's not doing enough to address concerns about it handles risks such as financial crime and staff conduct, Bloomberg reports.

HSBC's top investment banker Samir Assaf considers it "an emergency" that needs attention, the news agency said.

Bank shares fall after HSBC news

HSBC shares have been hit by this morning's news of restructuring plans.

The bank is the worst performer in the blue-chip index today, falling 3.84% to 593.70.

Other banks have been hit with Lloyds down 2.08% at 58.75 and RBS falling 1.33% at 222.80.

HSBC 'too big, too slow'

Today Programme

BBC Radio 4

HSBC building
Getty Images

HSBC, Europe's largest bank, has just put out its third-quarter results. It saw an 18% drop in pre-tax profit during the third quarter to $4.8bn (£3.8bn) and it's warning of challenges ahead.

HSBC has been navigating uncertainty arising from Brexit, the US-China trade war and continuing unrest in Hong Kong.

Mouhammed Choukeir, chief investment officer at Kleinwort Hambros, told the Today programme that HSBC had been "too big, too slow" and needed to "wield the axe" in terms of its cost base. That means more job cuts to come, with reports suggesting the bank intends to slash up to 10,000 more posts.

Despite the turbulence in Hong Kong, the bank's performance in Asia had been a "shining light", Mr Choukeir said. Its global diversification was a strength, he added, but its performance in the UK and Europe was less impressive. "That's the area they want to focus on in terms of cost reduction."