Category Archives: HSBC

Boots says it will ‘draw lessons’ from research into links to slavery

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Report looked into donations to Nottingham universities by Jesse Boot, who expanded pharmacy chain

The high-street pharmacy Boots’s links to the transatlantic slave trade have been revealed in new research that shows how the proceeds of enslavement became entangled with British capitalism.

Jesse Boot, the son of the company’s founder, expanded the chemist with the help of banks and premises linked to slavery. He was not identified as involved in the enslavement of people, the trade of enslaved people or trade in goods made by enslaved people.

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HSBC denies breakup plan as it launches $3bn share buyback

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London-headquartered bank says profits beat forecasts as it prepares to split eastern and western operations

The boss of HSBC has said moves to separate its eastern and western operations are not part of a plan to break up the banking group, as he announced a $3bn share buyback amid better-than-expected profits.

Georges Elhedery pushed back against rumours that a huge restructuring plan announced last week was a sign he was considering hiving off parts of the banking group, which had been under pressure to do so by its largest shareholder, the Chinese insurer Ping An. Investors last year rejected Ping An’s proposals.

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HSBC on hiring spree to drive UK wealth division ambitions

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Exclusive: Europe’s biggest bank hopes to double UK arm of its wealth and private banking operations

HSBC is recruiting hundreds of bankers to serve rich clients in the UK as it looks to head off growing competition from British rivals and take a larger slice of the wealth management market.

Europe’s biggest bank is hoping to fortify the UK arm of its wealth and private banking operations by bulking up its team of relationship managers, who offer bespoke services and advice to rich clients in exchange for lucrative fees.

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Exiled pro-democracy Hong Kong activists blocked from accessing pensions

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Case raises questions about complicity of western financial institutions in persecution of Chinese government critics

Two exiled pro-democracy Hong Kong activists have been blocked from accessing their pensions, depriving them of tens of thousands of US dollars of their savings and raising questions about the complicity of western financial institutions in the persecution of Chinese government critics.

Assets, including pension savings, belonging to Ted Hui, a former pro-democracy legislator who is now based in Australia, were frozen shortly after he fled from Hong Kong in December 2020. The assets are held by HSBC, a British bank.

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Canary Wharf Group to carve chunks out of HSBC tower after bank’s exit

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Revamp of 42-storey block when bank moves out in 2027 will include new terraces and leisure facilities

Canary Wharf Group has unveiled plans to remove large chunks from the HSBC tower as part of a revamp of the 42-storey office block when the bank moves out in 2027.

The property company said it would carve out sections of the tower’s facade to create terraces as part of plans to transform the office block – a skyscraper in the east London financial district – into a mixed-use building that would include leisure facilities and a public viewing gallery.

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HSBC’s Swiss private banking arm breached money-laundering rules, regulator finds

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Finma watchdog says bank failed to carry out adequate checks of two high-risk business relationships

HSBC’s Swiss private banking arm breached money-laundering rules by failing to carry out adequate checks on the high-risk accounts of two politically exposed individuals, Switzerland’s banking regulator has found.

HSBC Private Bank (Suisse) has been banned from taking on any new high-risk customers until it has completed a full review of its business relationships, Switzerland’s Financial Market Supervisory Authority (Finma) said.

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London Stock Exchange CEO honoured in king’s birthday list

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Julia Hoggett awarded damehood for services to business, while HSBC chair Mark Tucker receives knighthood

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The head of the London Stock Exchange (LSE) and the chair of HSBC are among the business leaders to be recognised this year in King Charles’s birthday honours list.

Julia Hoggett, a former banker who has been the chief executive of the London Stock Exchange since 2021, has been awarded a damehood for her services to business and finance.

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HSBC fined £57m over ‘serious’ deposit protection failings

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Regulator says bank failed to properly implement Financial Services Compensation Scheme

HSBC has been fined £57m by the Bank of England’s financial stability arm for failing to protect customer deposits in the event of a banking collapse.

It is the second-highest fine imposed by the Bank’s Prudential Regulation Authority (PRA) and reflects the seriousness of the failings, the watchdog said. The highest fine was £87m, imposed on Credit Suisse last July.

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Thousands of HSBC customers in UK unable to access online banking services

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Consumers report problems using bank’s app on one of the busiest shopping days of year, Black Friday

Thousands of HSBC customers reported they were unable to access its online and mobile banking services on one of the busiest online shopping days of the year – Black Friday.

More than 4,000 customers said they could not access their accounts via the HSBC app on Friday, according to Downdetector, which tracks and collates website outages and complaints.

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Higher interest rates help HSBC to more than double profits

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Bank criticised by MPs for being too slow to reward savers as it announces 15% rise in net interest income and $3bn share buyback

Higher interest rates helped HSBC to more than double its profits and hand over $3bn (£2.5bn) to shareholders, as MPs criticised the largest UK banks for being too slow to reward savers.

The London-headquartered bank said it was launching a share buyback, and paying a dividend worth 10 cents a share, after what its chief executive, Noel Quinn, hailed as “three consecutive quarters of strong financial performance”.

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HSBC more than doubles profits as interest rates soar

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Bank says it earned £17bn in first half and will hand more money back to shareholders

HSBC more than doubled its profits in the first half of the year, as rising interest rates increased returns for the London-headquartered lender.

The bank reported pre-tax profits of $21.7bn (£17bn) in the first six months of 2023, up from $8.8bn during the same period last year, despiteputting aside more money to protect against potential defaults, as rising living costs put pressure on customers’ finances.

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HSBC increases interest rates on some savings accounts

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Rises of up to 0.75 percentage points follow increases at First Direct

Customers of HSBC will receive a boost to their savings after the bank announced an increase to interest rates, as Britons enjoy some of the highest rates in more than a decade.

The lender is increasing rates on some of its savings accounts, with increases of up to 0.75 percentage points.

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UK MPs urge minister to do more to free Hongkongers’ trapped savings

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First British ministerial visit to Hong Kong since Chinese crackdown focused on attracting investment

The first British ministerial visit to Hong Kong since the introduction of draconian Chinese security laws five years ago was a chance to demand that China unlock more than £2bn in pensions belonging to British overseas passport holders who fled for the UK, former cabinet ministers have told the Foreign Office.

A letter signed by more than 90 MPs, including 10 former ministers, urges the trade minister Dominic Johnson to do more to release frozen savings belonging to thousands of Hongkongers.

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Labour criticised for giving global banks access to parliament

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Exclusive: HSBC and NatWest staffers seconded to shadow business secretary Jonathan Reynolds’s team

Labour has been criticised for giving global banks access to parliament after taking an HSBC staffer into its shadow business team, despite the financial giant coming under fire over its links with China.

One senior policy manager from HSBC has been seconded to the team of Jonathan Reynolds, the shadow business secretary, and has been given a parliamentary pass since February.

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Filipino activists appeal to British banks over region devastated by oil spill

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Environmentalists from the Philippines urge investors to avoid LNG projects which they say threaten the Verde Island Passage

Campaigners from the Philippines have urged British banks not to fund the expansion of fossil fuel use in their country. It follows a huge oil spill that threatened a globally important marine biodiversity hotspot.

Filipino environmentalists have travelled to the UK to meet representatives from Barclays, Standard Chartered and HSBC as part of efforts to stop the expansion of liquefied natural gas (LNG) power plants and terminals in and around the Verde Island Passage, a global marine biodiversity hotspot known for its whale sharks, corals, turtles and rich fisheries, which was badly affected by the oil spill this year.

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HSBC rules out banking crisis as profits triple after Silicon Valley Bank deal

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Failure of four banks in six weeks is purely a sign of poor risk management, says chief executive

HSBC’s chief executive has denied the possibility of a fresh banking crisis, saying the failure of four banks in six weeks was a merely a sign of poor risk management, as the lender tripled its own first quarter profits to $13bn (£10bn) after its rescue of Silicon Valley Bank UK.

Noel Quinn’s comments came a day after JP Morgan stepped in to buy most of the collapsed lender First Republic in a $10.6bn takeover, as part of regulators’ efforts to draw a line under lingering turmoil across the banking sector.

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HSBC shareholders urged to vote against break-up of business

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Bank warns spinning off more profitable Asia business would be complex and would lower dividends

HSBC’s board has urged shareholders to vote against a proposed break-up of its business at its annual meeting, arguing that a split would result in a “material loss” and lower dividends.

In response to calls for the split from its largest shareholder, the Chinese insurer Ping An, HSBC warned on Wednesday that spinning off its more profitable Asian business from the rest of the bank would also require approval from regulators in approximately 25 jurisdictions, and force it to make changes to customer services.

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Investors force HSBC shareholder vote on structural overhaul

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Minority shareholder Ken Lui leads campaign seeking to split bank’s Asian and western businesses

Hong Kong investors have forced HSBC into a shareholder vote on its structure and strategy, including a potential spin-off of its Asian arm.

An investor group, led by the minority shareholder Ken Lui, said the bank’s Asian activities were “effectively subsidising the western businesses, to the detriment of HSBC’s global shareholders” in a way that undermines efforts to increase the bank’s value and growth.

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UK and US shares climb as banks and ministers aim to calm Credit Suisse fears

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FTSE 100 rises and European banking shares are up after early jitters over what UBS takeover deal means for bondholders

Stocks climbed on Monday in London and New York after central bankers and politicians sought to soothe jitters triggered by the emergency rescue of Credit Suisse during the weekend.

Central banks in the UK and eurozone issued statements aimed at reassuring investors that – unlike the controversial approach taken by the Swiss authorities in the Credit Suisse deal – their jurisdictions would follow a hierarchy in which equity holders would lose out before bond holders.

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TechScape: How Silicon Valley Bank UK was saved

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In this week’s newsletter: While its quick slip into financial hardship has left American bankers reeling, its UK division is surprisingly fine. But the tech sector isn’t out of trouble yet

Last week, if you had heard of Silicon Valley Bank UK, you probably worked in tech. The bank had only been spun out in to a separate entity last summer, after its few thousand corporate customers pushed it over a regulatory threshold, and while SVB had grown to almost hold £10bn of deposits, with £5.5bn of outstanding loans, it was very much a specialist player.

The bank’s selling point was that it understood the needs of the “innovation economy”, something that high street banks frequently failed to acknowledge. A startup might have zero revenue, yet hold £5m in the bank and have 10 employees, a profile fundamentally different from a typical small business. As a result, trying to get something as simple as a corporate credit card could be a surprising hassle, and when SVB arrived on the UK scene, it was enthusiastically adopted by founders and venture capitalists alike.

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