HSBC's top executives faced intense scrutiny from shareholders on Monday, as the bank's largest market continued to push for a breakup. The lender's chairman Mark Tucker and CEO Noel Quinn defended their strategy, stating that it was working and that dividends were increasing.
However, shareholders in Hong Kong, where HSBC is a mainstay of many retail investors' portfolios, have been unhappy with the bank's performance in other regions. They argue that the London-based lender's businesses outside Asia are dragging down its profits.
Quinn acknowledged this, saying that the group is performing well as a whole and that the bank's profits in Hong Kong and the UK are no longer being dragged down by underperformance elsewhere. He also pushed back on concerns about due diligence on the bank's acquisition of SVB UK's customers, stating that management had carried out proper procedures.
Despite this, HSBC faces pressure from its largest shareholder, Ping An, which holds an 8% stake in the bank and has backed calls for a reorganization. The insurance giant's chairman, Huang Yong, said it would support any initiatives that could boost HSBC's performance and value.
However, Ken Lui, an activist shareholder who put the resolution to separate the Asian business from the rest of the bank together, remains optimistic about winning over other shareholders. He has been canvassing 18 districts of Hong Kong to tell investors that they finally have a chance to speak for themselves and protect their rights through voting.
The resolution will require 75% of votes to be passed in May, but Lui is confident that nothing is impossible. Ping An did not immediately respond to a request for comment on how it planned to vote at the upcoming general meeting.
HSBC's executives also faced questions about recent turmoil in the banking industry, including the collapse of smaller regional banks and the takeover of Credit Suisse. Tucker said he did not expect an "immediate impact" on HSBC, but acknowledged that there was a period of uncertainty before nerves settled.
Overall, the intense questioning from shareholders highlights the ongoing tensions within HSBC's largest market and underscores the need for the bank to address its performance in other regions.
However, shareholders in Hong Kong, where HSBC is a mainstay of many retail investors' portfolios, have been unhappy with the bank's performance in other regions. They argue that the London-based lender's businesses outside Asia are dragging down its profits.
Quinn acknowledged this, saying that the group is performing well as a whole and that the bank's profits in Hong Kong and the UK are no longer being dragged down by underperformance elsewhere. He also pushed back on concerns about due diligence on the bank's acquisition of SVB UK's customers, stating that management had carried out proper procedures.
Despite this, HSBC faces pressure from its largest shareholder, Ping An, which holds an 8% stake in the bank and has backed calls for a reorganization. The insurance giant's chairman, Huang Yong, said it would support any initiatives that could boost HSBC's performance and value.
However, Ken Lui, an activist shareholder who put the resolution to separate the Asian business from the rest of the bank together, remains optimistic about winning over other shareholders. He has been canvassing 18 districts of Hong Kong to tell investors that they finally have a chance to speak for themselves and protect their rights through voting.
The resolution will require 75% of votes to be passed in May, but Lui is confident that nothing is impossible. Ping An did not immediately respond to a request for comment on how it planned to vote at the upcoming general meeting.
HSBC's executives also faced questions about recent turmoil in the banking industry, including the collapse of smaller regional banks and the takeover of Credit Suisse. Tucker said he did not expect an "immediate impact" on HSBC, but acknowledged that there was a period of uncertainty before nerves settled.
Overall, the intense questioning from shareholders highlights the ongoing tensions within HSBC's largest market and underscores the need for the bank to address its performance in other regions.
. I mean, 8% stake from Ping An is a pretty big deal, and if they're backing the breakup resolution, that's gotta count for something 
. It's not all doom and gloom, though - Noel Quinn seems like a decent CEO, and he's trying to reassure everyone that the strategy's working... but shareholders just won't let him have it their way 
. It's weird to think about how the banking industry's changed so much since then 
. Anyway, I guess we'll just have to wait and see what happens at that general meeting in May 
, right? and shareholders are all like "hey nope, we don't want our cash tied up in a struggling bank branch" 
. but what's weird is how Ping An is all like "hey let's reorganize this thing" 
, and Ken Lui is all like "yaaas we can make it happen!" 
. but hey, at least they're having an open conversation about it? 
I gotta say, HSBC is having some serious issues with their shareholders. It's like they're trying to break up the Asian business but nobody wants it 
. And it's not just about performance – the whole banking industry is shook right now 
. Ken Lui's been out there pushing for change and I gotta give him props 
. But Ping An's got some serious muscle on their side 
. I mean, it's like, a simple majority, right? But hey, I'm no expert, just a productivity preacher tryin' to stay on top of the game 
. One thing's for sure, though: HSBC gotta shape up and start performin' better in all its regions 
. It's hard to see how they can move forward with the old strategy, knowing that it's dragging down profits elsewhere. Ping An's got 8% stake, but even if they're on board, there are still plenty of other shareholders who aren't convinced 
. I'm kinda curious to see how this whole thing plays out, but it seems like a lot of people are counting on HSBC's Asian business to turn things around 
. Those top execs just denying it won't make it go away... Ping An knows what they're talking about 
. Lui's got a point, HK investors deserve more transparency 
. If management really did carry out proper procedures, then why are there still concerns? And what exactly does Ken Lui mean by "rights through voting"? Is he talking about some kind of shareholder protection act? I need to see the details before I can get on board with this.
. It's not like HSBC is immune to that. If there was a period of uncertainty, how did they prepare for it? Shouldn't we be seeing more transparency from their side?
. I get it tho, the Asian business is doin great and all, but the rest of Europe/US r bringin down the whole fam 
.
! He's out there campaignin' hard 4 shareholders 2 demand change 
...but it's all still kinda sus 
!
. It's def goin 2 be interestin 2 see how dis whole scenario plays out esp when it comes 2 da 75% vote threshold 
now that ken lui's out there pushing for a breakup, i'm kinda curious to see how this all plays out 