HSBC's top executives faced a tense meeting with shareholders in Hong Kong on Monday, where they defended their strategy amid growing calls for the bank to be broken up. The London-based lender has been facing increasing pressure from investors and regulators over its Asian business, which is seen as the main source of profits.
Chairman Mark Tucker and CEO Noel Quinn addressed concerns about the bank's performance in regions outside Asia, saying that the group's profits were no longer being dragged down by underperformance elsewhere. They also defended their acquisition of Silicon Valley Bank's UK arm, which was made just days after the parent company collapsed in the US.
Shareholders have been unhappy with HSBC's decision to scrap its dividend in 2020 at the request of British regulators, arguing that it would protect Hong Kong shareholders from requests in other jurisdictions. However, the bank has brought back its dividend in 2021, albeit at a lower level.
A resolution on the agenda for the annual general meeting in May would force the bank to come up with a plan to spin off or reorganize its Asian business. Shareholders have been calling for this, citing concerns that the bank's performance in Asia is dragging down profits elsewhere.
HSBC's largest shareholder, Ping An Insurance Group, has backed calls for the bank to rethink its structure. The Chinese insurer holds an 8% stake in HSBC and has stated that it will support any initiatives that could boost its stock performance or value.
The acquisition of SVB UK was also questioned by shareholders, with some criticizing HSBC's ability to perform adequate due diligence on the customers of the failed bank. However, executives defended the deal, saying it was a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers.
Despite the pressure, Tucker and Quinn expressed confidence in their strategy, saying that their current approach is working and dividends are moving upwards. They also downplayed concerns about systemic risk in the banking sector, citing the recent collapse of Credit Suisse but arguing that this was not a cause for concern.
Chairman Mark Tucker and CEO Noel Quinn addressed concerns about the bank's performance in regions outside Asia, saying that the group's profits were no longer being dragged down by underperformance elsewhere. They also defended their acquisition of Silicon Valley Bank's UK arm, which was made just days after the parent company collapsed in the US.
Shareholders have been unhappy with HSBC's decision to scrap its dividend in 2020 at the request of British regulators, arguing that it would protect Hong Kong shareholders from requests in other jurisdictions. However, the bank has brought back its dividend in 2021, albeit at a lower level.
A resolution on the agenda for the annual general meeting in May would force the bank to come up with a plan to spin off or reorganize its Asian business. Shareholders have been calling for this, citing concerns that the bank's performance in Asia is dragging down profits elsewhere.
HSBC's largest shareholder, Ping An Insurance Group, has backed calls for the bank to rethink its structure. The Chinese insurer holds an 8% stake in HSBC and has stated that it will support any initiatives that could boost its stock performance or value.
The acquisition of SVB UK was also questioned by shareholders, with some criticizing HSBC's ability to perform adequate due diligence on the customers of the failed bank. However, executives defended the deal, saying it was a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers.
Despite the pressure, Tucker and Quinn expressed confidence in their strategy, saying that their current approach is working and dividends are moving upwards. They also downplayed concerns about systemic risk in the banking sector, citing the recent collapse of Credit Suisse but arguing that this was not a cause for concern.
. It's like they're not even listening to the shareholders who are trying to hold them accountable. I mean, come on, you scrap your dividend for Hong Kong shareholders only, and now you're re-introducing it? It's just a PR move, if you ask me. And don't even get me started on the acquisition of SVB UK... how could they not do due diligence on those customers?! 
Their largest shareholder Ping An Insurance Group is trying to get some sense into them, saying they need to rethink their structure if they wanna boost stock performance 
. I'm not surprised, though - banks are all about short-term gains these days 
. The London-based lender thinks its Asian business is the main source of profits? Please, that's just not true 
. They should be focusing on diversifying their portfolio and reducing systemic risk, but nope, they're too busy trying to make a quick buck 
. I mean, Credit Suisse just collapsed and everyone's like "oh, it's fine" 
... give me a break!
. Execs say it was a good business opportunity, but some shareholders aren't so sure... maybe due diligence wasn't as thorough as they thought? Anyway, HSBC's dividend has been a hot topic lately too 
. Shareholders are pushing for a plan to reorganize the Asian biz, but execs seem confident in their strategy 
. Only time will tell if that confidence translates into higher profits & dividends 
. And come on, a 8% stake from Ping An Insurance Group is a big deal! The Chinese insurer knows what it's talking about when it comes to HSBC's value 
. That sounds like a recipe for disaster, if you ask me. I think Tucker and Quinn know what they're doing, and their strategy is working... mostly 
.
. I mean, yeah, there were some issues with due diligence and all that, but come on, it's not like they're gonna let those little problems bring them down 
.
. They just need to keep doing what they're doing and the profits will follow 
i mean, i get it, asia is important for profits and all that, but can't we just have a clear plan on how to make our europe/america businesses thrive too? 
The profits are indeed there and investors want to see some action taken! 
. One thing's for sure: if they can't get their act together, some shareholders might just decide to take matters into their own hands 
I mean, they're facing so much pressure from shareholders and regulators, it's crazy! And those executives are like "Hey, we've got our plan, and it's working"... I get that they want to defend their strategy, but at the same time, can't they just listen to what everyone else is saying? 
Like, the whole Asian business thing... isn't that a bit of a problem? 
That's some solid news right there!
. Like, the bank's profits aren't all coming from Asia or anything - it's got businesses in Europe and elsewhere too. And yeah, maybe the Asian division isn't performing as well as everyone wants it to, but that doesn't mean it needs to be split up or sold off to some random investor. I mean, what would even happen to all those jobs and customers? It'd just cause chaos for no reason 
. A couple of bank failures don't mean we need to be worried about the entire system collapsing - it's just a normal part of the market, I guess 
. Investors and regulators are breathing down their necks, but they're still confident in their strategy 
. Ping An Insurance Group is backing the calls to rethink HSBC's structure 
, so maybe we'll see some changes soon? 
... anyway i think its crazy how shareholders are pushing for HSBC to break up their Asian business it makes sense given how much pressure they're under but also I feel bad for the employees who would be affected by such a move 
. i dont know if Noel Quinn and Mark Tucker have anything to prove with these numbers, 1 billion profit is still 1 billion profit 
. The pressure from shareholders and regulators is real, and they need to address these concerns ASAP. I mean, who wouldn't want to see their Asian business performance separate from the rest of the bank? It makes sense for Ping An Insurance Group to back calls for restructuring - it's gotta be good for them, right?