HSBC has no current plans to sell more assets, its chairman Mark Tucker said on Friday (May 3) at the annual shareholder meeting of the bank, which has scaled back its presence in Western markets in recent years as part of a sweeping overhaul.
HSBC shareholders met in London days after the bank’s CEO Noel Quinn announced his surprise retirement following a five-year tenure which saw HSBC sell retail banking operations in France and the US, and its entire Canadian unit, as it pivots towards Asia.
The chairman’s comments hint at a likely shift in direction for whomever succeeds Quinn, as the bank turns its focus away from shrinking its global empire to trying to grow its business in its remaining markets.
The bank is also in a strong position to continue paying robust dividends despite an uncertain global economic outlook and central bank policy moves, Tucker told the shareholder meeting.
The bank, which returned US$19 billion to shareholders in 2023 through dividends and share buybacks, has announced a further US$8.8 billion so far for 2024, and is targeting a dividend payout ratio of 50 per cent this year, Tucker said.
HSBC has been able to splash out on such shareholder rewards in recent years as rising central bank interest rates have boosted its lending income, turbo-charging its profits.
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Inflation remains key to the global interest rate outlook, Tucker said. HSBC economists forecast that global inflation will fall gradually to 5.8 per cent in 2024 and 3.8 per cent in 2025, having climbed as high as 6.3 per cent in 2023.
The bank expects the European Central Bank and Bank of England to cut rates in June, both lowering by 150 basis points by the end of 2025, and expects the US Federal Reserve to cut in September, cutting by 100 basis points by the same time. REUTERS
