HSBC's top executives faced intense scrutiny from shareholders on Monday, with some calling for the bank to be broken up over concerns about its performance in regions outside Asia.
Chairman Mark Tucker and CEO Noel Quinn defended their strategy, saying it was working and that the bank's Asian business was a key contributor to its success. However, they also acknowledged that there had been underperformance elsewhere, and that the board had previously reviewed options for restructuring the bank.
Shareholders in Hong Kong, where HSBC is a mainstay of many retail investors' portfolios, have been pressing for the bank to split its Asian business from the rest of the company, citing concerns about performance and profitability. They argue that the London-based lender's businesses in other regions are dragging down the overall performance of the bank.
CEO Quinn addressed these concerns directly on Monday, saying that profits in Hong Kong and the UK were no longer being dragged down by underperformance elsewhere. He also pointed out that a breakup of the bank would result in significant revenue loss, as much of its business relies on cross-border transactions.
HSBC is facing pressure from its largest shareholder, Ping An, China's biggest insurer, which holds an 8% stake in the bank and has backed calls for the bank to rethink its structure. Ping An's chairman, Huang Yong, has said that he will support any initiatives that are conducive to improving HSBC's performance and value.
The bank's acquisition of the British unit of Silicon Valley Bank (SVB) UK was also a topic of discussion on Monday. Critics have questioned whether the bank carried out adequate due diligence on SVB UK's customers before making the purchase, which was made for £1 ($1.20) just days after SVB had collapsed in the US.
Despite these concerns, Quinn and Tucker defended the acquisition, saying it was a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers. They pushed back on the notion that management hadn't had time to carry out proper due diligence.
Chairman Mark Tucker and CEO Noel Quinn defended their strategy, saying it was working and that the bank's Asian business was a key contributor to its success. However, they also acknowledged that there had been underperformance elsewhere, and that the board had previously reviewed options for restructuring the bank.
Shareholders in Hong Kong, where HSBC is a mainstay of many retail investors' portfolios, have been pressing for the bank to split its Asian business from the rest of the company, citing concerns about performance and profitability. They argue that the London-based lender's businesses in other regions are dragging down the overall performance of the bank.
CEO Quinn addressed these concerns directly on Monday, saying that profits in Hong Kong and the UK were no longer being dragged down by underperformance elsewhere. He also pointed out that a breakup of the bank would result in significant revenue loss, as much of its business relies on cross-border transactions.
HSBC is facing pressure from its largest shareholder, Ping An, China's biggest insurer, which holds an 8% stake in the bank and has backed calls for the bank to rethink its structure. Ping An's chairman, Huang Yong, has said that he will support any initiatives that are conducive to improving HSBC's performance and value.
The bank's acquisition of the British unit of Silicon Valley Bank (SVB) UK was also a topic of discussion on Monday. Critics have questioned whether the bank carried out adequate due diligence on SVB UK's customers before making the purchase, which was made for £1 ($1.20) just days after SVB had collapsed in the US.
Despite these concerns, Quinn and Tucker defended the acquisition, saying it was a good business opportunity that allowed the bank to gain hundreds of innovative startups as customers. They pushed back on the notion that management hadn't had time to carry out proper due diligence.
i mean id rather see some restructuring happen than have them drag out the same old strategy forever. and what with ping an backing these changes, maybe we'll get to see some real change around here 
. I mean, come on, that region is a massive contributor to their profits and it's always getting a bad rap. The critics say they're dragging down the rest of the company, but what if that's just not true? It sounds like there's a lot of pressure from shareholders in Hong Kong who are worried about performance and profitability in those markets.
. I mean, what about all those startups they bought from SVB UK? Were they really that innovative? Or was it just a way for the bank to cover up their own mistakes? 
. but honestly, i'm just glad they're tryin to bring in those startups and innovate or whatever 
.
... all this talk about breaking up HSBC is having me worried! I mean, what's wrong with the bank's strategy? It sounds like they've got their Asian business on track and are doing well in that department 
. But then there are concerns about underperformance elsewhere and some people wanting to split it off from the rest of the company... isn't that just going to create more problems than solutions? 
.
It's like, come on guys, you're not even trying to hide your intentions anymore! And what's up with the SVB UK acquisition? £1? Are they for real?! 
I think its crazy how shareholders are all about splitting HSBC into two separate companies if its underperforming elsewhere, but they're not thinking about the bigger picture. What about the impact on employees and customers? Wouldnt that be more expensive for them to deal with multiple banks? And whats wrong with a bit of restructuring if its gonna help the bank as a whole? 
what's ur take on the silicon valley bank acquisition tho? did dey really do enuf due diligence or was it just a hasty move? 
hopefully ping an's influence can help steer hsbc in the right direction 
. ceo quinn & chairman tucker are like, really not convincing us with their "its working" claims. i mean, come on, profits in hk & uk r not being dragged down by other regions? how is that even possible? 