HSBC targets Asia growth amid pressure from top shareholder
HSBC has unveiled plans to bolster revenues in its Asia business amid mounting pressure from its top shareholder to improve performance across the region.
The banking giant told investors it is aiming for revenues in Asia’s wealth business to grow by up to 9% in the next three to four years.
It also wants to grow lending by around 15% in the medium to long-term, which could take up to six years.
“All parts of HSBC Asia are now motoring,” group chief executive Noel Quinn stated.
Ping An Asset Management, a Chinese investment group with an 8% stake in HSBC, has called for an Asia-headquartered and Hong Kong-listed spin-off business.
Restructuring the bank would bring better growth opportunities and improve performance in Asia, making it more profitable in the long term, Ping An argued.
But the plan to split the company in two was rejected by shareholders at HSBC’s annual general meeting earlier this month, with investors voting by 80% against the proposals.
HSBC’s management argued the move would destroy value at the bank and upset its unique global standpoint.
On Monday, the lender said Asia has a “critical role” in its international growth ambitions.
Mr Quinn said: “We now have an unrivalled international proposition that supports our Asia customers looking to trade with and grow in markets across Europe, the Middle East and the Americas, and vice versa.
“As our client base has grown year on year, we have been with them at every step to support and guide them. We have proved that our globally interconnected offering is needed and valued now more than ever before.
“Today’s ambitions show the strategy is working, we are generating strong returns for our shareholders and we are confident there is more to come.”
Shares in HSBC were up by 1% on Monday morning.
