HSBC annual results: the bank pushes even further towards Asia and wants to recover its dividend

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The bank, which is still headquartered in London, despite earning most of its money in Asia, told investors on Tuesday that it plans to “intensify” its investments in the region by about $ 6 billion. It also moves more resources, including the relocation of key personnel.

HSBC (HSBC) has pointed to major China, Southeast Asia and India as the “key engines” of its future growth. It specifically wants to consolidate its presence in mainland China, defend its leadership position in Hong Kong and establish Singapore as a wealth management center.
It is a plan that focuses on a continent that distributes more than 80% of HSBC’s profits before the pandemic. Last year, Asia “was once again the most profitable region,” President Mark Tucker said in a statement.

Continued attention in Asia came when HSBC announced that its pre-tax profit fell to $ 8.8 billion last year, a drop of 34% compared to the previous year. Meanwhile, revenue fell 10% to $ 50.4 billion.

Still, this was even better than analysts had expected. And the bank said Tuesday it intends to restore its dividend “as soon as possible,” starting at 15 cents a share.

Like other lenders, HSBC was forced to undo its dividend last year at the request of UK regulators. The Bank of England relaxed some of these guidelines in December.

“This was a difficult decision and we deeply regret the impact it has had on our shareholders,” Tucker said in his statement, adding that the board had “adopted a policy designed to provide sustainable dividends in the future.” .

Shares of HSBC rose 2.2% in Hong Kong on Tuesday before retreating slightly.

It is also increasingly speculated that the company will abandon parts of its business in other regions while working to reduce costs. This week, for example, the Financial Times reported that HSBC would eliminate its U.S. retail banking network. HSBC did not confirm this report in its earnings presentation, saying it “continues to explore strategic options with respect to our US retail franchise.”

However, during its results, the bank revealed that it was in talks to sell its retail business in France.

“[We] “They are in negotiations regarding a possible sale, although no decision has been made yet,” he said. “If a sale is implemented, given the underlying performance of the French retail business, a loss on the sale is expected.”

– This is a developing story and will be updated.

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