HSBC CEO Turns Down Ping An's Spinoff Proposal Following 'Net Negative' Outcome In Strategic Analysis

MT Newswires · 09/21/2022 11:56

11:55 PM EDT, 09/20/2022 (MT Newswires) -- HSBC (HSBA.L, HSB.PA) Chief Executive Officer Noel Quinn on Tuesday confirmed that the bank does not intend to split its business operations as a detailed analysis of its strategic options confirmed that the move would be "a net negative," The Telegraph reported the same day.

According to Quinn, HSBC sought advice from Goldman Sachs and Robey Warshaw after its largest shareholder Ping An and other Hong Kong-based retailer investors urged for a break-up of its Asian business to unlock greater value for shareholders.

However, following the review, the British lender plans to retain its strategy in order to generate greater "returns, dividends, and profitability" for its business, Quinn added.

HSBC shares rose nearly 1% at the close of trading on Tuesday.

Price (GBP): £534.10, Change: £+4.50, Percent Change: +0.85%

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