What next for HSBC after preventing Ping An from carving up Hong Kong’s largest bank, quelling shareholder revolt?

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HSBC’s Asia operations are ‘motoring’ as lender looks to future growth from its biggest revenue driver, CEO Noel Quinn says

Bank recently prevailed in a shareholder vote that sought to force its management to split the Asian arm

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Chad Brayin LondonandEnoch Yiuin Hong Kong

Published: 6:00am, 3 Jun 2023Updated: 6:43am, 3 Jun 2023

For much of the past year, HSBC, the largest of Hong Kong’s three currency-issuing banks, has faced pressure from its biggest shareholder, Ping An Insurance Group, and a vocal contingent of frustrated retail investors in the city to break up the bank.

The London-based bank’s management argued that its core strategy centred around its international network, driven by its strength in growth markets in Asia, and said a spin-off of the Asian business suggested by some shareholders would be too costly and not drive higher returns.

Last month, HSBC prevailed in a contentious shareholder vote at its annual meeting in Birmingham, England, where no major shareholder other than Ping An voted in favour of splitting the lender’s Asian business.

HSBC executives have pointed to its improved profits and greater ability to return capital to investors as signs its strategy is paying off, but will its recent performance, a US$2 billion share buy-back this year and promises of a higher dividend payout in the future be enough to placate Ping An and other frustrated shareholders?

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“We have spent the last three years transforming the Asia business, fine-tuning the portfolio and investing in technology to provide an integrated international offering for our customers, and ultimately generating strong returns for our shareholders,” HSBC CEO Noel Quinn said as part of an investor and analyst seminar in Hong Kong and in Singapore in late May. “All parts of HSBC Asia are now motoring.

“We have proved that our globally interconnected offering is needed and valued now more than ever before.”

What next for HSBC after preventing Ping An from carving up Hong Kong’s largest bank, quelling shareholder revolt?

HSBC’s Asia operations are ‘motoring’ as lender looks to future growth from its biggest revenue driver, CEO Noel Quinn says Bank recently prevailed in a shareholder vote that sought to force its management to split the Asian arm

HSBC’s Asia operations are ‘motoring’ as lender looks to future growth from its biggest revenue driver, CEO Noel Quinn says

Bank recently prevailed in a shareholder vote that sought to force its management to split the Asian arm