[LONDON] Shifting global trade relations have increased economic uncertainty with serious risks to growth, making it difficult for international banks to provide the medium term outlook effectively, HSBC chairman Mark Tucker said on Friday (May 2).
Speaking at the bank’s annual shareholder meeting in London, a day after it announced he would retire by the end of this year, Tucker said he was confident HSBC can meet targets and deliver another year of healthy returns in 2025.
HSBC was among major European banks that this week retained ambitious performance targets after bumper first quarter profits, despite threats to their earnings from a possible global recession and shaky business confidence.
Asia and trade-focused HSBC is potentially more exposed than some rivals to the fallout from sweeping US tariffs, as they threaten to disrupt global trade and hurt China and Asia-based exporters and importers.
The bank also said it remained committed to its ambition of accomplishing net zero carbon emissions by 2050 and has begun a review of interim financed emissions targets and associated policies.
HSBC had alarmed campaigners earlier this year by ditching its target of reaching net-zero emissions across its business by 2030, blaming slow change in the economy.
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Some campaigners protested at the event on Friday, handing out flyers and challenging the bank’s board to review their support of fossil fuel producers and projects including the East Africa crude oil pipeline.
Climate activists are concerned that banks like HSBC could be influenced by a shift in the political rhetoric surrounding sustainability and climate matters.
US President Donald Trump has signalled his intention to scale back US climate commitments, which he says can impede business opportunities for multinational companies, especially those active in developing economies.
HSBC also faced harsh criticism from members of workplace pension schemes at Midland Bank, which HSBC acquired in 1992, who repeated pleas to reverse clawback policies that have shaved millions of pounds off payouts to former staff.
Clawback is a legal deduction from a pension provided by an employer when members reach the age that also entitles them to a state pension.
The bank’s shareholders have in recent years overwhelmingly voted against a resolution proposed by campaigners on the issue, but Tucker said he would review the members’ plight more fully.
“I’m not giving you a sense of hope, but we will go back to see that what we have said and what we understand remains the case,” he told lead campaigner Nancy Ball.
Indicative voting showed all HSBC AGM resolutions passed in line with board recommendations, Tucker said, as he closed the meeting with a note of thanks to investors for their support over his tenure. REUTERS
