22nd Apr 2016 10:46
LONDON (Alliance News) - Douglas Flint, the chairman of HSBC Holdings PLC, the biggest bank by market value in the FTSE 100, on Friday warned shareholders that the bank and its customers would probably suffer in the event the UK votes to leave the European Union.
Speaking at HSBC's annual meeting of shareholders, Flint said the bank's own economic research has been "very clear" about the advantages of EU membership for the UK.
"From our own narrow perspective, a decision to leave could require a restructuring of some of HSBC's wholesale operations based in the UK. This would clearly depend upon the terms on which the UK would have access prospectively to European markets should the UK vote to leave. We have a major bank in France so have the option to move some staff currently in London to Paris if required," Flint told the meeting.
He said the "more important and unquantifiable risk" of the June 23 referendum concerns the bank's customers
"We believe that the UK would enter a period of great economic uncertainty in the event of a vote to leave and should the UK economy slow and economic conditions deteriorate as our research suggests, in at least the short to medium term, this would affect many of our customers in the UK and the economic environment we operate in. This is likely to have a negative impact on HSBC," Flint said.
How to vote is a matter for the British people, Flint said: "HSBC is not affiliated to either campaign. Nor will we be making a donation to either side. It is not appropriate for us to be drawn into a political debate that goes far beyond economics."
Shares in HSBC were down 0.5% at 469.80 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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