HSBC Woos Investors Big and Small - WSJ

HSBC Woos Investors Big and Small

Generous shareholder payouts are on their way as the Asian-focused, U.K.-regulated bank rebuffs pressure for a split

HSBC pushed back against Ping An’s suggestion that it should be split into Eastern and Western parts.Photo: Chris J. Ratcliffe/Bloomberg News

HSBC is working hard to convince its largest shareholder, Ping An, that it is better off as a single company. Other investors are unlikely to object to its means of persuasion, which include higher cash returns.

The Anglo-Asian bank pushed back hard on Monday against Ping An’s suggestion that it should be split into Eastern and Western parts. It had the useful platform of better-than-expected second-quarter results. Profit after tax of $5.8 billion was up over the same period last year on higher revenue, lower costs and a deferred-tax gain of $1.8 billion, though its core capital ratio was slightly disappointing. The bank's shares rose about 7% in morning trading.

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