HSBC

Ticker HSBA

Today's data summary

Market open
% change
-0.11%
Price Pence
656.80
Change
-0.70
As of 14:27 23 May 2019
Market cap. Pound sterling
133,052.94 million
As of 14:27 23 May 2019

Latest updates

HSBC good sign for markets

BBC Radio 5 Live

Wake Up To Money

HSBC cash points
Reuters

What do HSBC's results tell us?

Macquarie economist Eimear Daly tells Radio 5's Wake Up To Money that "it's a good sign for markets that Asia is still growing".

"There's a been a lot of concern about what's going on China," she said.

"[HSBC] indicate strong growth in Asia - it may be a slower growth environment but China is still growing around 6%," she said.

HSBC profits rise

HSBC
Getty Images

HSBC has reported a 30% rise in profits in the first quarter of the year after a strong performance from Asia.

The bank - which is based in London but reports in dollars - said pre-tax profits were $6.2bn, higher than expectations.

John Flint, chief executive, said: “These are an encouraging set of results, particularly in the context of heightened economic uncertainty globally. We remain focused on executing the strategy we outlined last June, while also being alert to risks in the global economy.”

Former workers demonstrate over pensions row

A hundred former workers from HSBC have been taking part in a protest over their pensions at the bank's AGM in Birmingham this morning.

Protest
BBC

They say £2,500 of their company pension is being taken off them annually when they receive a state pension.

The long-running dispute relates to "clawback" applied to the pension payout when a member reaches retirement age and also receives a state pension.

The bank said the scheme is not "unfair, disproportionate or discriminatory" and argues that describing it as "clawback" is not justified as the sums are not withheld or clawed-back.

Another bank facing pension row?

Standard Chartered logo
Getty Images

Pensions for boardroom executives have been in focus of late at banking groups HSBC and Lloyds Banking Group.

As we mentioned earlier, the Times is reporting that Standard Chartered is also facing concerns from investors about the pension arrangements for its chief executive Bill Winters.

Mirza Berg, global head of governance at Aviva Investors, says pension will be a "hot button topic topic" at this year's annual general meeting season.

Standard Chartered is quoted as saying that the pensions policy had been drawn up in consultation with shareholders.

HSBC changes pension policies

HSBC
Getty Images

HSBC says it has issued "an important clarification" of its pay policies, reducing the contributions to its board directors' pensions.

The issue has been covered by The Times which has reported that chief executive John Flint receives a £372,000 cash payment in lieu of a conventional pension fund contribution.

This is 30% of his base salary, less than the contribution to ordinary staff, which can reach 16%. The bank had told shareholders that because Mr Flint pays tax and national insurance on the sum he is only getting a contribution of 16% of his salary.

The bank has been speaking to shareholders and says that the cash in lieu of pension will reduce to 10% from 30% for new directors - and that the existing directors have "asked that their own arrangements in respect of the pension allowance are also brought into line" with the new policy.

Its annual general meeting, where shareholders vote on pay policies, is next month.