- Bank to invest $15billion to $17billion in ‘growth and technology’
- HSBC will continue with programme of share buybacks and maintain dividend
HSBC’s new boss John Flint said the bank will invest $15billion to $17billion in ‘growth and technology’ as he unveiled an updated strategy for the bank.
Flint, who took over in February from Stuart Gulliver, said he will bring the bank ‘back into growth mode’ after nearly a decade of declining revenues.
The bank reassured investors that dividends will be kept at current levels and said it will continue with its programme of share buybacks.
HSBC boss John Flint said the bank will invest $15 to $17billion in ‘growth and technology’
It will also continue to pursue its expansion into Asia and China in particular, HSBC said, as per a plan launched in 2015 by his predecessor.
Such plans include growing further its Hong Kong business and invest in the Pearl River Delta in the Guangdong province. It also looks to expand its insurance and wealth management business in Asia.
In an eight-point plan, the lender also committed to complete the ring-fencing of its UK bank, boost its share of the mortgage market, improve customer service, complete the turnaround of its US business and gain market share across its international network.
Shares in HSBC, which is listed on the FTSE 100 but makes about 75 per cent of its profits in Asia, fell this morning.
Flint said: ‘After a period of restructuring, it is now time for HSBC to get back into growth mode.
‘The existing strategy is working and provides a strong platform for future profitable growth. In the next phase of our strategy we will accelerate growth in areas of strength, in particular in Asia and from our international network.’
HSBC said it expects to report mid-single digit growth in revenue between 2018 and 2020 and is likely to see low to mid-single digit growth in operating expenses.