StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Financial Markets and Bank Management - Essay Example

Cite this document
Summary
Banking industry in the UK and other parts of the world continues to have average returns on equity (ROEs) in single digits that is lower than the cost of capital (KPMG, 2015). However, globalization has increased the scope of large banks to expand its operations beyond national…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.9% of users find it useful
Financial Markets and Bank Management
Read Text Preview

Extract of sample "Financial Markets and Bank Management"

Download file to see previous pages

The paper attempts to explore how HSBC Bank has performed on these parameters in year 2012 and 2013. The paper will also make specific recommendations for improving bank’s performance in the years ahead. HSBCs balance sheets for year 2012 and 2013 report its income from six sources: Net interest income, Net fee income, trading income, Net income from financial instruments at fair value, net earned insurance premiums, and other operating income. Of these, interest income is the largest component followed by income from fee.

On comparing HSBCs performance in year 2013 with its previous year (2012), it can be seen that its interest income has gone up by (£6,961-£6,519)/£6,519 = 6.7%. While there is a marginal rise in fee income from £3,309 million to £3,336 million, there is a significant rise in its trading income from £1,587m to 2,373m. In percentage terms, this amounts to nearly 50%. Income from financial instruments has increased by almost 660% from £118m to £900m; however, the banks earned insurance premium income has declined by around 10% from £2,286m to £2022m (HSBC Bank, 2013 p.10). While Banks net operating income has increased by almost 17% from £10,133m to £11,869m in year 2012 and 2013 respectively, the most noteworthy aspect is that its operating expense has reduced significantly from £9,506m to £8,575m.

In percentage terms, expense reduction is almost 10% (HSBC Bank, 2013 p. 10). This had indeed a very positive impact on bank’s financial performance in 2013. With HSBC bank, deposits have increased from £39,571m in 2012 to £50,683m in 2013. Even loans and advances have increased from £32,286 to £53,228 – an increase of over 60% (HSBC Bank Plc., 2013 p.95). This reveals a full confidence of the customers on HSBC bank. Pre-tax profit is derived after making loan-loss provisions, and operating income is the

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Financial Markets and Bank Management Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1678789-financial-markets-and-bank-management
(Financial Markets and Bank Management Essay Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/miscellaneous/1678789-financial-markets-and-bank-management.
“Financial Markets and Bank Management Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/miscellaneous/1678789-financial-markets-and-bank-management.
  • Cited: 0 times

CHECK THESE SAMPLES OF Financial Markets and Bank Management

Close examination of global financial systems

… Then the essay goes through examples, such as pragmatic study on the relative values of bank-based as well as market-based financial systems has focused on “Germany and Japan as bank-based systems and the United States and the United Kingdom as market-based systems” (World bank, 2012, p.... Pragmatic study on the relative values of bank-based as well as market-based financial systems has focused on “Germany and Japan as bank-based systems and the United States and the United Kingdom as market-based systems” (World bank, 2012, p....
6 Pages (1500 words) Essay

Financial Markets and Institutions

financial markets and Institutions Table of Contents financial markets and Institutions 1 Part 1: Warnings about the financial crisis 3 Part 2: Parties culpable for the “crime” 5 Effect on Germany 6 Part 3: US financial crisis responsible for failure of financial institutions around the world 7 Reference List 9 Part 1: Warnings about the financial crisis The financial crisis of 2008-2009 has affected and deformed the financial system of the United States and Euro zone countries and also many other countries in the world....
7 Pages (1750 words) Essay

Main activities of commercial and investment banks in the capital markets

Commercial banks provide capital market related services, depository services, advises on portfolio management or investment counseling, etc.... Commercial banks provide capital market related services, depository services, advises on portfolio management or investment counseling, etc.... Other activities are credit extension, risk management and risk advice.... he classification of the types of services that are offered by a commercial bank is as follows:• Discretionary Services – Decisions are taken on behalf of the clients/customers by a portfolio manager keeping in view the different parameters of asset allocation....
5 Pages (1250 words) Essay

The Sub Prime Market

The bank since it was mostly based in England failed to exploit her Irish outlet to get funds from the European Central Bank due to negligence from management since it thought that the wholesale market was to exist forever.... hellip; Northern rock had failed to strictly implement stress tests and create avenues for lending from the Central bank in case of illiquidity.... But this form of borrowing led to bank abusing that incentive to carefully check mortgages they issued....
9 Pages (2250 words) Case Study

Role and Importance of Capital Market

The new securities are issued in the primary markets and the trading of these securities takes place in the secondary markets.... With the advancement in the financial markets many businesses can access the overseas markets for the issue of their shares (DUKE The Fuqua School of Business, n.... This also leads efficiency in firm management.... As the market price of a firm's security reflects its fundamentals, the management pays special attention to business activities....
11 Pages (2750 words) Essay

Financial Markets and Risk

The author of the paper "financial markets and Risk" comments on the marketing issues.... The cost of finance or the product depends on the terms of finance, nature and size of the business, availability of the product, the nature of security, growth stage of the company and government influences through the central bank.... The major sources of long term finance in the capital markets are actually the products provided to the consumer for long term investment....
4 Pages (1000 words) Essay

Money Markets, Bonds Market, Mortgages

Normally people obtain such type of loan from state-owned institutions, where each mortgage has its criteria depending upon the market situation, normally company acquire loans through mortgages where they pledge there asset with a bank or a financial institute in order to obtain loan for their expenses and in that case company have to register these loan as well with registrar of the company, otherwise these loan would not be secured.... The paper "Money markets, Bonds Market, Mortgages" states that Bonds market is a market where debt securities are issued and traded, the instruments of bond market include govt-issued securities (like saving bonds, treasury bills and notes),  and corporate debt securities....
9 Pages (2250 words) Coursework

Elements in Financial Services and Markets

This paper 'Elements in Financial Services and Markets" focuses on the fact that financial markets play a regulatory role in determining the present, as well as the future conditions, that might prevail in an economy.... In fact, it is the individual activities in both domestic and international spheres, which when aggregated play a major role in driving the operations of the financial markets.... The argument in support of the above fact is that the banks, as well as financial institutions, deal with private money of individuals who often respond to the changes in financial markets through mobilising their funds which might result to a further ruckus in the same....
10 Pages (2500 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us