The bank, however, is going on the offense amid the macro pullback. announced a new $3 billion share buyback program, in addition to the existing one of similar value, along with a declaration of a second interim dividend of 10 cents per share. Keeping investor confidence high is the objective as the bank grapples with the ongoing .
CEO Georges Elhedery remains focused on simplifying operations and adjusting the structure of the group. The bank is reviewing retail banking operations in Australia, Indonesia, and Sri Lanka, while the winding down of its Bangladesh operation is already underway. Corporate and institutional banking, the sturdiest wing of the group, put up a 4% increase in pretax profit, flashing signs of strength amid volatile market conditions.
HSBC shares fell 4.5% in London and more than 3% in following the earnings report. Although the bank benefited from higher returns in 2024, this year’s pressure from China has cast doubt over its Asia-centric strategy.
In the fourth quarter (Q4), the group still expects to report a loss of about $1.4 billion on the sale of a mortgage portfolio in France. On the other hand, shifting macroeconomic forces, ranging from trade disruptions to potentially new tariff sets, may impact in the quarters ahead.
As Europe’s largest lender looks for a new chairman, the spotlight remains on whether its current business model, which is heavily tied to China, can withstand prolonged disturbance.
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