HSBC boss sees Pearl River profit

Business | Janice Huang 8 Dec 2017

The chief executive of HSBC Holdings (0005) said the group will not change its share holding in Bank of Communications (3328), and he predicted the group will add US$1 billion (HK$7.8 billion) more to its profit in the next five years from the Pearl River region.

Stuart Gulliver said the group has a good partnership with Bank of Communications and an unchanged holding shows HSBC's commitment to investment in China as most foreign capital has withdrawn from mainland banking. On the other hand, Gulliver added HSBC will not increase its holding in Bank of Communications in the future. Gulliver, who will retire next February, said the business strategies of the group are expected to continue under the new management. He rejected reports that said HSBC will acquire a US credit card company, saying that the group has no such plans.

Meanwhile, Gulliver said HSBC will make major investments in mainland China, especially in the Pearl River region, and forecast earnings of US$1 billion more in the next five years from the region.

HSBC announced earlier that John Flint, the head of retail banking and wealth management at the bank, will succeed Stuart Gulliver as chief executive next year.

Share of HSBC rose 0.2 percent yesterday after Ping An announced it has become the second-largest shareholder of HSBC.

The Chinese insurer increased its stake in HSBC above 5 percent.

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