Solid market making at HSBC highlights the company as one of the few banks that have performed well in a challenging quarterץ
Reuters
HSBC’s Global Markets division has posted a solid quarter despite industry-wide headwinds. A number of investment banks have already reported significant declines in revenue this year due to low Volatility. Fixed income and currencies have been particularly hard hit in an environment of continually compressing client activity.
Adjusted revenues at the Global Markets division increased by 7 percent to $5.4 billion. Trading at the Fixed Income, Currencies and Commodities unit generated $4.4 billion which is higher by 2 percent year-on-year. Foreign exchange declined 3 percent to account for $1.95 billion.
Compensation at HSBC Remains Competitive
Many peers of HSBC in the UK, Europe, and the US have materially underperformed when compared to last year, losing between 20 and 40 percent of revenues on a year-on-year basis. The London-headquartered bank has managed to hold its positions solid.
Not only that but the company marked an increase in costs which was primarily driven by higher compensation. HSBC’s operating expenses were higher by 4 percent, reflecting higher performance-based pay, pension and severance costs. The company also continued strategic investment into its foreign exchange business. A broader synopsis of the institutional and retail industry will be a marquee topic of discussion at the 2017 Finance Magnates London Summit this November.
Commenting on the results during the company’s earnings call, CFO Iain James Mackay said: “Global Banking & Markets continued to grow revenue despite a challenging quarter for the industry, demonstrating the benefits of its differentiated business model.”
“It achieved this largely through growth in Global Liquidity and Cash Management, Equities and Securities Services, which exceeded the impact of subdued market activity on our banking and fixed income businesses,” he elaborated.
Despite subdued market activity, HSBC’s continuing market share gains contributed to a very positive quarter when compared to industry peers. A material, 25% increase in equities revenue was all but eliminated from the impact of lower fixed income revenues.
HSBC’s Global Markets division has posted a solid quarter despite industry-wide headwinds. A number of investment banks have already reported significant declines in revenue this year due to low Volatility. Fixed income and currencies have been particularly hard hit in an environment of continually compressing client activity.
Adjusted revenues at the Global Markets division increased by 7 percent to $5.4 billion. Trading at the Fixed Income, Currencies and Commodities unit generated $4.4 billion which is higher by 2 percent year-on-year. Foreign exchange declined 3 percent to account for $1.95 billion.
Compensation at HSBC Remains Competitive
Many peers of HSBC in the UK, Europe, and the US have materially underperformed when compared to last year, losing between 20 and 40 percent of revenues on a year-on-year basis. The London-headquartered bank has managed to hold its positions solid.
Not only that but the company marked an increase in costs which was primarily driven by higher compensation. HSBC’s operating expenses were higher by 4 percent, reflecting higher performance-based pay, pension and severance costs. The company also continued strategic investment into its foreign exchange business. A broader synopsis of the institutional and retail industry will be a marquee topic of discussion at the 2017 Finance Magnates London Summit this November.
Commenting on the results during the company’s earnings call, CFO Iain James Mackay said: “Global Banking & Markets continued to grow revenue despite a challenging quarter for the industry, demonstrating the benefits of its differentiated business model.”
“It achieved this largely through growth in Global Liquidity and Cash Management, Equities and Securities Services, which exceeded the impact of subdued market activity on our banking and fixed income businesses,” he elaborated.
Despite subdued market activity, HSBC’s continuing market share gains contributed to a very positive quarter when compared to industry peers. A material, 25% increase in equities revenue was all but eliminated from the impact of lower fixed income revenues.
GCEX Secures MiCA Licence in Denmark as EU Crypto Regulation Takes Shape
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
