HSBC Holdings plc Group Chief Executive John Flint announced today that he intends to speed up the growth of their business in Asia, and improve the international business. He mentioned this at the “Return to Growth and Value Creation,” an update for investors and analysts.
“After a period of restructuring, it is now time for HSBC to get back into growth mode. The existing strategy is working and provides a strong platform for future profitable growth. In the next phase of our strategy we will accelerate growth in areas of strength, in particular in Asia and from our international network. We will leverage our size and strength to embrace new technologies, investing USD15-17bn primarily in growth and technology, subject to achieving positive adjusted jaws each financial year,” Flint said according to the HSBC Strategy Update released today.
According to the update, HSBC plans to achieve a return on tangible equity greater than 11% by 2020 while investing USD15-17bn. To achieve the target HSBC has outlined eight strategic priorities.
One main priority in the list to build on the strength of being based in Hong Kong and invest in some leading entities in the region such as Pearl River Delta (‘PRD’), Association of Southeast Asian Nations (‘ASEAN’), Wealth in Asia, and Belt and Road Initiative led by China.
Another major target would be to revamp HSBC businesses in the USA and redirect the HSBC investments in to businesses with higher profitability.
Providing a better service to the customers through additional investments in the department and using newer technologies is another target of the new development plans revealed by Mr. Flint.
The Targeted Financial Outcomes would be
- A RoTE greater than 11% by 2020
- Positive adjusted jaws each financial year
- Sustain dividends at current levels and undertake, as appropriate, share buybacks to neutralise any share issuance as a result of scrip dividends
Mr. Flint who was appointed as the Group Chief Executive from 21 February 2018, has been working at HSBC since 1989 and has extensive experience in the company and the business. Having joined as an International Officer, he has held the offices of Group Treasurer, Head of Global Markets, Chief Executive of HSBC Global Asset Management, and Group Managing Director among many other positions.