HSBC's top executives are facing intense pressure from shareholders to restructure the bank, with some calling for a breakup of its Asian business. At an informal shareholder meeting in Hong Kong, Chairman Mark Tucker and CEO Noel Quinn defended their strategy, saying it is working and that the bank's current approach will move dividends up.
The bank has been under scrutiny over its performance, particularly in regions outside of Asia. Shareholders have complained that the London-based lender's businesses in other areas are dragging down profits, with some even arguing that a breakup would be beneficial for shareholders. However, Quinn dismissed these concerns, stating that HSBC's profits in Hong Kong and the UK are no longer being affected by underperformance elsewhere.
A resolution on the agenda of the bank's annual general meeting in May proposes that shareholders vote in favor of a plan to spin off or reorganize its Asian business. The proposal is supported by some large investors, including Ping An, China's biggest insurer, which holds an 8% stake in HSBC. However, not all of Ping An's views are aligned with the resolution.
The bank has also been criticized for its rapid acquisition of the British unit of Silicon Valley Bank following the collapse of its US parent in March. Critics have questioned whether HSBC did adequate due diligence on SVB UK's customers before completing the deal. Quinn and Tucker defended the acquisition, calling it a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers.
Despite these concerns, HSBC's leaders remain confident in their strategy and say they do not expect an "immediate impact" from recent turmoil in the banking industry. However, they also acknowledged that the sector is facing uncertainty and that there may be a period of volatility before nerves settle.
The bank has been under scrutiny over its performance, particularly in regions outside of Asia. Shareholders have complained that the London-based lender's businesses in other areas are dragging down profits, with some even arguing that a breakup would be beneficial for shareholders. However, Quinn dismissed these concerns, stating that HSBC's profits in Hong Kong and the UK are no longer being affected by underperformance elsewhere.
A resolution on the agenda of the bank's annual general meeting in May proposes that shareholders vote in favor of a plan to spin off or reorganize its Asian business. The proposal is supported by some large investors, including Ping An, China's biggest insurer, which holds an 8% stake in HSBC. However, not all of Ping An's views are aligned with the resolution.
The bank has also been criticized for its rapid acquisition of the British unit of Silicon Valley Bank following the collapse of its US parent in March. Critics have questioned whether HSBC did adequate due diligence on SVB UK's customers before completing the deal. Quinn and Tucker defended the acquisition, calling it a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers.
Despite these concerns, HSBC's leaders remain confident in their strategy and say they do not expect an "immediate impact" from recent turmoil in the banking industry. However, they also acknowledged that the sector is facing uncertainty and that there may be a period of volatility before nerves settle.
. The breakup idea might seem like a crazy way to boost profits but if it means getting rid of those underperforming areas then maybe it's worth considering... and what about the customers of that Silicon Valley Bank deal? I hope HSBC did their due diligence properly, don't wanna see anyone gettin' burned 
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I'm low-key worried about HSBC tbh their Asian business is literally dragging down profits everywhere else 
I mean come on, its been underperforming for ages & they're still trying to defend it 
Mark Tucker & Noel Quinn are just not hearing ppl 
The breakup proposal is a good idea IMHO 
ping An's backing it up 
but we need to see some concrete changes 
I'm all about innovation btw 
their SVB UK acquisition was a wild move tho 
what were they thinking? 
. Those regions have been dragging down profits for ages, and it doesn't make sense to keep throwing money at them when they're not showing any signs of improvement.
I mean, I get that they wanted to gain some new customers, but did they really do their due diligence on the existing customers before buying everything out? It seems like a recipe for disaster 
. Let's hope HSBC gets its act together and stops making excuses for their past mistakes 
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It's like the old debate between regulation vs. deregulation – do we prioritize stability or innovation? 
. I'm not saying it can't be done, but I think they need to have a more nuanced conversation about the potential risks and downsides.
I think their strategy is working and it's amazing to see them invest in hundreds of startups 
! Noel Quinn and Mark Tucker are total bosses 
for defending their approach and saying they're committed to making it work. The proposed plan to spin off or reorganize its Asian business might be a great idea, but I think it's also important to address the concerns from shareholders and make sure everyone is on board 
. I mean, HSBC's got some solid Asian businesses going on 
. It feels like shareholders are just trying to stir up trouble 
. And yeah, the acquisition of SVB UK was a bold move 
. I'm not saying everything is rainbows and unicorns, but let's give HSBC some time to settle in 
. Maybe we'll see some positive changes come out of this 
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... and yeah, they do have a good point about the UK & hk businesses no longer being held back by underperformance elsewhere 
... would make sense if the asian business is really dragging down profits 
... gotta wonder how it's gonna affect their bonuses 
I mean, come on, a breakup of the Asian business might not be such a bad idea if it's really dragging down profits elsewhere. The fact that they're defending it so strongly makes me think there's more to it than they're letting on.
. I get it, no one likes a drag on profits, but maybe we should give the CEO and Chairman a break? They're trying to navigate some tricky waters here 
. That acquisition of SVB UK was a risk, I'll give them that... but also a good opportunity for innovation and growth 
. And who knows, this spin-off plan might just breathe new life into the Asian business 
. Shareholders are always looking out for their own interests, but maybe we should consider the bigger picture here