HSBC annual results: Bank pushes even harder for Asia and wants to return dividend

HSBC annual results: Bank pushes even harder for Asia and wants to return dividend

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The bank – which still has its head office in London, although it earns most of its money in Asia – told investors on Tuesday that it intends to increase its investments in the region by about $ 6 billion. It is also moving more resources there, including moving key personnel.

HSBC (HSBC) set out China, Southeast Asia and India as the ‘key drivers’ of its future growth. It specifically wants to build its presence on the mainland of China, defend its leading position in Hong Kong and establish Singapore as a hub for wealth management.
It is a plan that focuses on a continent that delivered more than 80% of HSBC’s profits before the pandemic. Last year, Asia was “once again the best profitable region,” President Mark Tucker said in a statement.

The continued focus on Asia came when HSBC announced that pre-tax profit fell to $ 8.8 billion last year, a 34% drop from the previous year. Revenue, meanwhile, fell 10% to $ 50.4 billion.

It was still better than analysts expected. And the bank said Tuesday it intends to reinstate its dividend at the earliest opportunity, at 15 cents a share.

Like other lenders, HSBC was forced to scrap its dividend last year at the request of UK regulators. The Bank of England relaxed part of the lead in December.

“It was a difficult decision and we regret the impact it has had on our shareholders,” Tucker said in his statement, adding that the board “has adopted a policy designed to provide sustainable dividends in the future. ‘

HSBC’s share rose 2.2% in Hong Kong on Tuesday before retreating slightly.

It is also increasingly speculated that the company will leave parts of its business in other regions as it tries to save costs. This week, for example, the Financial Times reported that HSBC would shake off its U.S. retail banking network. HSBC did not confirm the report in its earnings presentation, saying that “we continue to explore strategic options with respect to our US retail franchise.”

However, during its results, the bank announced that it was in talks to sell its retail arm in France.

“[We] “there are negotiations on a potential sale, although no decision has been made yet,” he said. If there is a sale, given the underlying performance of the French retail business, a loss on sale is expected. “

– This is an evolving story and will be updated.

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