HSBC's top executives faced intense scrutiny from shareholders Monday, with many calling for the bank to be broken up. The lender's Asian business is seen as its main source of profits, but critics argue that it has dragged down the rest of the bank.
Chairman Mark Tucker and CEO Noel Quinn defended the current strategy, saying it was working and dividends were on the rise. However, they also acknowledged that the board had previously reviewed options for restructuring the bank, and concluded that alternatives would destroy value for shareholders.
The opposition to breaking up the bank comes from a range of stakeholders, including individual investors who have seen their dividend payments reduced or canceled in recent years. Small investors, including street hawkers, taxi drivers, and teachers, are particularly affected, as they rely on these payments to make ends meet.
Activist shareholder Ken Lui has called for support among institutional shareholders to present a case for the bank's structure. He plans to canvass 18 districts of Hong Kong to tell shareholders that they have a chance to speak out and protect their rights through voting.
HSBC's largest shareholder, China's Ping An Insurance Group, has backed calls for the bank to rethink its structure. The insurance giant has supported initiatives, including a spinoff of its Asian business, which could boost stock performance or value.
The bank's recent purchase of the UK arm of Silicon Valley Bank has also raised questions about due diligence and risk management. Critics argue that HSBC may not have carried out adequate checks on SVB UK's customers before completing the deal.
Tucker downplayed concerns about immediate impacts from recent turmoil in the banking industry, saying share prices had been suppressed by the collapse of smaller regional banks and the takeover of Credit Suisse. However, he also noted that such developments were not a systemic risk to the sector, but rather a period of uncertainty before nerves settled.
Chairman Mark Tucker and CEO Noel Quinn defended the current strategy, saying it was working and dividends were on the rise. However, they also acknowledged that the board had previously reviewed options for restructuring the bank, and concluded that alternatives would destroy value for shareholders.
The opposition to breaking up the bank comes from a range of stakeholders, including individual investors who have seen their dividend payments reduced or canceled in recent years. Small investors, including street hawkers, taxi drivers, and teachers, are particularly affected, as they rely on these payments to make ends meet.
Activist shareholder Ken Lui has called for support among institutional shareholders to present a case for the bank's structure. He plans to canvass 18 districts of Hong Kong to tell shareholders that they have a chance to speak out and protect their rights through voting.
HSBC's largest shareholder, China's Ping An Insurance Group, has backed calls for the bank to rethink its structure. The insurance giant has supported initiatives, including a spinoff of its Asian business, which could boost stock performance or value.
The bank's recent purchase of the UK arm of Silicon Valley Bank has also raised questions about due diligence and risk management. Critics argue that HSBC may not have carried out adequate checks on SVB UK's customers before completing the deal.
Tucker downplayed concerns about immediate impacts from recent turmoil in the banking industry, saying share prices had been suppressed by the collapse of smaller regional banks and the takeover of Credit Suisse. However, he also noted that such developments were not a systemic risk to the sector, but rather a period of uncertainty before nerves settled.
I'm really skeptical about HSBC's top executives saying their strategy is working when they're getting hammered by shareholders 
. Like, how can you justify keeping this whole Asian business as one unit when it's dragging down the rest of the bank? 
It sounds like a classic case of "don't fix what ain't broke"... or in this case, don't break up what's broken 
. And what about all these small investors who are getting hurt by reduced or canceled dividend payments? Have they even been considered in all this? 
I need some actual data and sources to back up these claims before I can believe anything. Sources, people! 
i mean its obvious why people wanna break it up, small investors are getting F'd by reduced/divided payouts 
what about their livelihoods? and dont even get me started on the whole SVB UK thing, like how can u just buy a struggling bank without doing ur due diligence? 
mark tucker needs to step up his game or get out 
. I'm all for reform and accountability, not just for the shareholders but for the everyday people who are affected by these decisions 
.
Small investors are really hit hard because they rely on those payments to survive. Street hawkers, taxi drivers, teachers... it's not just about the money, it's about being able to provide for their families.
. We need more voices speaking out against this bank's structure. And Ping An Insurance Group's support for restructuring is interesting... maybe they know something we don't? 
... they're just prioritizing profits from their asian biz over the rest of the bank 
. I drew a simple diagram to show my thoughts:
. And when it comes to small investors, they're already struggling to make ends meet, so any changes could be really tough for them 
.
. Ken Lui is onto something with his canvassing effort - institutional shareholders do have a chance to speak out and protect their rights through voting 
I guess that's why we need more discussion and debate about this 
but Mark Tucker says their current strategy is working and dividends are rising... 
how do you see this whole thing playing out? 
. Asian business is doin well, but rest of bank sufferin 
. Need 2 make changes, maybe even break it up 
. Small investors like street hawkers, taxi drivers, teachers... they can't afford to lose out 
. Ken Lui's right, we need institutional shareholders to speak out and protect their rights 
. China's Ping An Insurance Group backing this initiative, so hope that helps 
. I don't think we want to see another major banking crisis on our hands.
. But seriously, if HSBC can't figure out how to make their current structure work, maybe it's time for a change 
.
. We need to know what they're doing and why 
.
. It's not just individual investors, but street hawkers and taxi drivers too! They're the ones who will be hit hard if the bank is broken up or its Asian business is spun off. I think it's great that Ken Lui is trying to mobilize institutional shareholders to make their voices heard 
This whole thing is like, totally fishy, you know? I mean, HSBC's Asian business is doing great, so why are people trying to break up the bank? It sounds like they're just trying to get rid of some unwanted assets or something 
.
Chairman Tucker and CEO Quinn seem like they're doin' their thing, tryin' to make the best of it. 
and then theres the risk management concerns w/ SVB UK... i mean, how did they not do due diligence on that purchase? 
. They're tryin' to brush off all these calls for breakin' up the bank, but I think it's 'cause they know there's some bad stuff cookin' under the surface. Like, what's goin' on with China's Ping An Insurance Group? Are they just tryin' to protect their own interests or is somethin' more sinister at play? 
But seriously, folks, it's not that simple. Shareholders are feeling the pinch and want some changes. I mean, who doesn't love a good dividend check? 
.
, waiting for the inevitable crash 
. Mark Tucker and Noel Quinn think they're doing the right thing? Please, they've got it all wrong 
... mark tucker saying share prices were suppressed by the industry turmoil? sure, but i think there's more to it than that