HSBC cuts back on deals to concentrate on the divi

HSBC promised dividends rather than deals at an investor day this morning.

Chief executive Stuart Gulliver told investors that when the bank can be certain it has enough capital to meet new regulations, it will start to raise its dividend.

“Previously we would have gone out and done 10 acquisitions a year,” said Gulliver, pictured. “We’re not going to do that.”

HSBC has in fact been shedding businesses announcing 28 disposals under Gulliver which he said could release up to $55 billion (£35 billion) of risk-weighted assets to firm up the bank’s finances. About 15,000 employees have gone though many have been transferred to new owners.

Gulliver also said HSBC has achieved $2 billion of cost savings on an annualised basis. He said this had been verified by KPMG — one of the big four accountancy firms. “We’re not just making this up.”

HSBC has pulled out of several countries including South Korea and Thailand. But he said this was only as a retail bank. It has kept its commercial operations.

The bank is expecting to be at the top of its $2.5 billion to $3.5 billion cost-savings target by the end of 2013.

Gulliver again highlighted Asia as its key market. He said the engine of economic growth has shifted from “West to East and North to South”.

He added that it was “important” for the bank to pay more to its shareholders than in bonuses.

Top executives are now also evaluated on personal behaviour and “integrity” before their business skills are considered. This follows a series of scandals which he described as “unacceptable”.