HSBC’s chairman says Asia business spinoff ‘will not happen’

HSBC chairman Mark Tucker told the bank’s shareholders in Hong Kong on Wednesday (Apr 3) a spinoff of its Asian business will not happen.

“There is no appetite amongst our shareholder base, as demonstrated by last year’s AGM results, to vote for a spinoff. That will not happen,” Tucker said at the meeting in response to a shareholder’s question.

HSBC defeated a resolution last year from Hong Kong-based shareholders and backed by major investor Ping An to potentially spinoff its lucrative Asia business.

At the time, the company said the majority of its institutional and retail investor base backed the board and the structure of the bank.

The bank in February reported its 2023 pretax profit jumped 78 per cent to US$30.3 billion, but still missed a consensus estimate of US$34.1 billion, largely due to a US$3 billion impairment on its stake in China’s Bank of Communications.

HSBC had also announced a new US$2 billion buyback, an annual dividend of US$0.61 per share and the intention to pay a special dividend of US$0.21 per share once it completes the sale of its Canada business. REUTERS