HSBC (0005) will buy back up to US$2 billion (HK$15.6 billion) of shares by April 20 next year, with Morgan Stanley acting as principal, according to an exchange filing yesterday.
The UK-based lender said it has entered into an irrevocable, non-discretionary agreement with Morgan Stanley to allow Morgan Stanley, acting as principal, to purchase its ordinary shares up to US$2 billion with the US investment bank simultaneously selling the shares it buys to HSBC.
The period, which began yesterday, runs through April 20, 2022.
Morgan Stanley will make trading decisions regarding share buyback independently of HSBC.
Any purchases of shares will be carried out on the London Stock Exchange, Aquis Exchange, BATS, Chi-X and/or Turquoise.
This came after HSBC reported a 74 percent rise in third-quarter profit. The bank recorded a pre-tax profit of US$5.4 billion for the quarter to September versus US$3.1 billion 12 months earlier.
Its Asia business contributed US$3.3 billion to the total pre-tax profits.
In other news, The Hong Kong Shanghai Banking Corporation said yesterday it has issued nearly 4 million credit cards in Hong Kong.