Finweek English Edition - - INVESTMENT -


BUY In­vestec Se­cu­ri­ties says that f or i nve s t or s l o ok i ng f or ex­po­sure to off­shore bank­ing groups, its pre­ferred en­try is ei­ther Bar­clays or Stan­dard Char­tered but it prefers HSBC over the l ikes of RBS and Lloyds. Ian Gor­don from In­vestec told clients: “HSBC has made progress with its North Amer­i­can r un- off, where im­pair­ments have fallen sharply, and there is some un­der­ly­ing cost im­prove­ment. How­ever, we con­tinue to see a ‘miss’ against the FY13 tar­gets of 12% RoE and 52% cost:eff iciency ra­tio, and this con­strains our ab­so­lute en­thu­si­asm for the stock which year to date has out­per­formed against Lloyds/ RBS (both ‘Sells’), but un­der­per­formed vs BARC/ STAN (both ‘Buys’).”

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