HSBC defeats proposal to split bank
HSBC on Friday comfortably defeated a proposal supported by its largest stakeholder, insurer Ping An, that sought to split the bank in a search for better returns. Shareholders voted overwhelmingly to reject the move, in line with the Asia-focused lender's recommendation, the group said at its annual general meeting in Birmingham, central England. The vote came at the end of a week in which the London-headquartered bank posted a surge in quarterly net profit, boosted by rising interest rates and its rescue of the UK arm of failed US lender Silicon Valley Bank. "A large majority of HSBC shareholders voted overwhelmingly to support the board," HSBC chairman Mark Tucker told the AGM. "That draws a line [under] the debate over the structure of the bank." Speaking earlier at the meeting, which faced disruption by climate protesters, Tucker insisted that the proposal to split the bank would not be beneficial. "We concluded that the alternative structural options would materially destroy value for shareholders, including putting your dividends at risk. This remains our unanimous view today," he said. But Ping An, which owns more than eight percent of HSBC, argued that the lender lags behind international peers and that a recent improvement in performance was tied mainly to rising interest rates, which it claims have peaked. The US Federal Reserve this week hinted that it would pause a policy of lifting borrowing costs aimed at cooling inflation. "It is necessary for HSBC to push for structural reform to fundamentally address HSBC's underlying market competitiveness issues," Michael Huang, chairman and CEO of Ping An Asset Management, said recently. (AFP)