Political relations with HK and China dominate HSBC boss' time

The chairman of HSBC (0005), Mark Tucker, is said to spend 80 percent of his time handling political issues, hoping to improve the bank's relationship with Hong Kong and China, the Financial Times reports.

"The job for Tucker is 80 percent politics and 20 percent business at the moment," an HSBC executive said. "The Chinese have the potential to destroy them."

The British lender has been criticized by Chinese state-own media and netizens, accusing it of cooperating with the US investigation into Chinese tech giant Huawei Technologies.

It has been reprimanded in Washington and London also after its top executive in Asia publicly endorsed the controversial security law imposed on Hong Kong.

Chief executive Noel Quinn was summoned to testify to British lawmakers this month over the lender's decision to close the accounts of an exiled Hong Kong democracy activist.

Ahead of revealing the annual result, HSBC yesterday reshuffled several of its top regional executive roles. Meanwhile, it is considering the return of some global leaders to Hong Kong, reinforcing its "pivot to Asia" strategy, Bloomberg reported.

Quinn will begin marketing what's known internally as the "pivot to Asia" today when he announces 2020 earnings, the report said.

Moving the trio - Nuno Matos, new chief executive of its wealth and personal banking business; Greg Guyett, co-head of global banking and markets; and Barry O'Byrne, chief executive of global commercial banking - would mean businesses responsible in 2019 for 95 percent of net revenue will be run out of Hong Kong. Other roles are also being reshuffled as part of the latest strategy, according to an announcement yesterday.

Chief financial officer Ewen Stevenson will take on responsibility for the bank's transformation agenda and mergers and acquisitions strategy. Michael Roberts, head of its North American business, will now lead its businesses in the US, Canada and Latin America.

Colin Bell, group head of compliance, will become chief executive of HSBC Europe and HSBC Bank Plc, the British non-ring-fenced unit.

Stephen Moss, currently head of Europe, the Middle East, North Africa, Turkey, Latin America and Canada, will relocate from London to Dubai to head the Middle East, North Africa and Turkey business.

For operations beyond Asia, Britain and the Middle East, the future looks cloudy at best. HSBC is expected to announce a withdrawal from consumer banking in the US when it unveils the earnings, the Financial Times reported.

HSBC's pre-tax profits for 2020 are expected to fall 38 percent to US$8.3 billion (HK$64.74 billion), say analysts' estimates compiled by the bank, because of the impact of the Covid-19 pandemic.

Its Hong Kong shares, which tumbled last year, have gained about 15 percent in 2021, though they have lagged behind rivals such as JPMorgan and Banco Santander SA.

HSBC investors are looking at whether HSBC will announce it is resuming paying a dividend today. The lender has not announced a dividend since the third quarter of 2019, on instructions from the Bank of England.

British rival Barclays said it would pay a dividend of one penny a share last week after the British regulator lifted the ban.