Two-thirds of HSBC’s revenues are generated in Asia, while the bank’s headquarters are in the United Kingdom. Some major investors in Asia believe they would do better if the bank’s Asian operation was separated.
HSBC has resisted requests for a spin-off or demerger of its Asian operations.
Ping An Insurance Group Co., China, a major shareholder, encouraged the London-based bank to explore splitting its Asian division to unleash additional shareholder value.
Several retail investors in Hong Kong and Hong Kong legislator Christine Fong, stated on Sunday: “We support this notion.” “Restoring the main listing in Hong Kong is the greatest approach to defend minority shareholders’ interests.
We learned our lesson from the 2020 dividend cancellation, which is why we enthusiastically support Ping An’s nomination to the HSBC board of directors.
HSBC stated that its strategy had been evaluated by external consultants, and while the conclusions were discussed with the board, they would not be made public.
Monday, CEO Noel Quinn stated to Reuters, “Look at the half-year results and you’ll see the worth of the existing strategy.”
Monday, the bank announced a pre-tax profit of $9.2 billion for the six months ending 30 June, down from $10.84 billion a year earlier but exceeding the $8.15 billion average analyst projection.
HSBC stated that it would expedite the reorganization of its U.S. and European companies and rely on its global network to generate profits.
Restore dividends to pre-COVID levels “immediately.”
In the group’s half-year results, Mr. Quinn stated that the bank’s “internationalism remains the most distinguishing aspect of our identity.”
He added: “We excel at serving customers across boundaries. It is the best method for us to help them expand, and the quickest way, we feel, to increase shareholder returns.”
HSBC acquired 10 percent of Ping An before selling the share in 2012 for a significant profit.
Now, Ping An owns over 10 percent of the bank and is the most valuable publicly-traded insurer in China.
However, a portion of its income is derived from the HSBC dividend, and the Bank of England has stopped UK lenders from paying dividends beginning in early 2020 because of the COVID-19 epidemic.
Even when the dividend was reinstated in July of last year, the rate was just half of what the bank had been paying before 2018.
Asia accounted for 69 percent of the bank’s profits in the first half of 2022, up from 64 percent a year earlier, as reported by the bank’s financial reports on Monday.
The bank plans to resume quarterly dividend payments in 2023, according to Mr. Quinn, who added: “We recognize and value the significance of dividends to all of our shareholders.
We will work as quickly as possible to restore the dividend to pre-COVID-19 levels.
