If you are seeking software outsourcing, mobile app development, server development, technology maintenance, and other technology development activities, look no further than our awesome company that provides complete software development activities utilizing nearshore and offshore resources.
HSBC’s top brass defended their strategy on Monday in front of frustrated shareholders in the lender’s largest market, as Europe’s biggest bank continued to face calls to be split up. At an informal shareholder gathering in Hong Kong, Chairman Mark Tucker and CEO Noel Quinn responded to investor questions, covering topics from the bank’s approach to demands for a business overhaul to its recent acquisition of Silicon Valley Bank’s UK arm.
Tucker and Quinn reiterated their adherence to the board’s stance against a resolution scheduled for the bank’s annual general meeting in May, which would require a plan to spin off or reorganize its Asian business – the primary source of profits. They maintained that splitting the bank would not be beneficial to the shareholders.
HSBC has been urged to separate its Asian business from the rest of the bank over the past year, as some shareholders claim that the bank’s other regions are weighing down its performance. Quinn directly addressed these concerns by emphasizing that the profits in Hong Kong and the UK are now on solid ground. An advocate of the breakup of the bank cited significant revenue loss due to reliance on cross-border transactions.
The institution has resumed paying dividends in 2021 after the suspension in 2020. However, the dividend cut adversely impacted shareholders in Hong Kong. Shareholders are hopeful for the bank to spin off its Asian business despite the dividend’s return at a lower level in 2021.
An activist shareholder and HK district council member are rallying support and have orchestrated resolutions to vote on in May, requiring 75% in favor to pass. The largest shareholder of HSBC, Ping An, has also urged the bank to rethink its structure, including possible spinoff options, with an eye on improving performance and value.
HSBC leaders recently defended acquiring SVB UK shortly after its parent company’s collapse in the US, to gain access to innovative startups. While critics questioned the due diligence process, Tucker and Quinn assured it was a good business opportunity. Finally, facing recent turmoil in the banking industry, Tucker expressed confidence, noting an expected period of uncertainty before nerves settle.