HSBC Backs Dividend, Returns Targets Despite Gloomy Economic Outlook
April 12 2019 - 6:06AM
Dow Jones News
By Adam Clark
HSBC Holdings PLC (HSBA.LN) on Friday committed to maintaining
its dividend payout at its current level and stuck to its returns
targets, despite its bosses warning of a slowdown in global
growth.
"Looking at the current environment, the global economy is much
less predictable now than it was a year ago. Global growth is
slowing, largely as a result of weakness in Europe although the
economic outlook is also softer in the U.S. and in Asia," Chairman
Mark Tucker said, speaking at HSBC's annual general meeting in
Birmingham, England.
Chief Executive John Flint also said the global economic outlook
had worsened since late 2018. He said HSBC is yet to take higher
credit losses, but warned that could change in a downturn.
Despite the pessimistic tone, Mr. Flint said HSBC is still
aiming for its previously announced targets of making a return on
tangible equity higher than 11% by 2020, up from 8.6% in 2018. The
Asia-focused lender also still expects "positive jaws"--where
revenue grows faster than costs--in 2019, after falling short last
year due to a weak fourth quarter.
Mr. Tucker said HSBC would keep its dividend at the 51 cents a
share it paid out in 2018 for the foreseeable future.
Write to Adam Clark at adam.clark@dowjones.com;
@AdamDowJones
(END) Dow Jones Newswires
April 12, 2019 06:51 ET (10:51 GMT)
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