Date
25 September 2017
HSBC chairman Douglas Flint (left) and group chief executive Stuart Gulliver field questions. Photo: HKEJ
HSBC chairman Douglas Flint (left) and group chief executive Stuart Gulliver field questions. Photo: HKEJ

HSBC sees more impairment charges, levies on banks

HSBC Holdings Plc. (00005.HK) expects more surprises in the banking sector in the next few years, the Hong Kong Economic Journal reported Tuesday, citing chairman Douglas Flint. 

Flint was responding to concern that the lender may face impairment charges, fines and levies as banking regulators around the world press their investigations into alleged malpractice.  

There are no estimates of the potential impact of such investigations, especially on dividends.

Last year, British authorities slapped lenders a combined US$900 million in penalties and other charges, up 58 percent from 2012, the report said.

Chief executive Stuart Gulliver said the bank’s business in Europe will be affected by impairment charges and other claims related to mis-selling of credit protection insurance and interest swaps products. Also, US levies will be booked under the UK business.

Gulliver said HSBC is planning to raise its dividend payout in the fourth quarter, a practice that has been in place since 2009.

He said the group has achieved its return-on-equity target for the first quarter, which came in above 12 percent after adjustment.

Meanwhile, the group has shelved a planned spin-off of certain businesses for a separate listing, saying it will not create value for shareholders.

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