HSBC raises key profitability goal, seeks to rebuff call for break-up

HSBC raises key profitability goal, seeks to rebuff call for break-up

HSBC sought to woo investors on Monday with a higher profitability target and bullish dividend outlook, as Europe’s biggest bank pushed back on a proposal by top shareholder Ping An Insurance Group Co of China to split itself.The London-headquartered bank raised its near-term return on tangible equity goal to at least 12 percent from 2023 onwards from an earlier flagged 10 percent minimum. HSBC also said that it intends to revert to paying quarterly dividends from the start of 2023.

For the latest headlines, follow our Google News channel online or via the app.“We understand and appreciate the importance of dividends to all of our shareholders. We will aim to restore the dividend to pre-COVID-19 levels as soon as possible,” Chief Executive Noel Quinn, who has been running HSBC for more than two years, said in the results statement.HSBC said it would pay an interim dividend of 9 cents per share. It also said stock buybacks remain unlikely this year.The bank’s Hong Kong-listed shares reversed early losses and rose 3.7 percent in afternoon trade in a weak broader marketHSBC has come under pressure from Ping An to explore strategic options such as spinning off its mainstay Asian business to unlock greater