Jon VialouxHSBC Holdings P L CHSBCCOMMENTSep 29, 2017

Reset mode for last few years. You have to consider net interest margin, efficiency ratios, capital ratios, ROA, loan-to-deposit ratios. On those metrics, HSBC has been performing better than expected. Cleaned up balance sheet.

No reason to sell. If we return to better markets, should continue to grow. EMs have been doing a whole lot better, and that's its focus.

Instead, he owns SVNLY.

When you think of banks, it's kind of like "tastes like chicken" or "tomayto/tomahto". Is this name all that different from other banks such as JPM or RY in a global context? Not really. Probably no need to take gains and invest elsewhere.

Is a leading bank in Europe. He missed the rally in bank stocks this year which benefited from falling interest rates. Valuations in Europe are better than in North America.

The question is why are banks running as hard as they are. Could they be expecting rates not to be cut. If interest rates move higher you would want to be in banks.. HSBC is a good quality bank with some issues from time to time. He prefers JP Morgan.

Banks tend to move on the same macro variables. It's too painful on your taxes to sell this one only to buy another similar one. You're better off just holding on.

Not a compelling barn-burner buy today, at best it's a hold. European banks are tactically more attractive than the US and, especially, the Canadian banks.

They operate in Asia where there is serious growth, but also it's very competitive. Better to buy a Canadian bank which enjoys an oligopoly.

Well run, deposit footprint's OK. Probably more domestic options available that are equally high quality. Beneficiary of globalization, which is starting to move in a different direction. In the US, try JPM or BAC, or BNP in Europe.

Their focus is less Europe, more Asia and Middle East. To do this, they are laying off a lot of staff. Return on invested capital is only 6%, but the cost of that capital is 7%. Negative, despite a 5% dividend that won't rise.

A great bank, but prefers other European banks. Not as well run as Canadian banks, and has less growth.

It is going through a very big re-structuring but he's not sure what they want to do, They have a big franchise in Asia and the UK. They sold the Canadian side of the business to Royal Bank which did well with it.