24th Apr 2020 12:41
(Alliance News) - HSBC Holdings PLC on Friday said the progress of its restructuring effort has slowed amid coronavirus pandemic.
In statements to its annual general meeting, held remotely due to the health crisis, the bank said its transformation programme to create a leaner, simpler and more competitive business that is better positioned to deliver higher returns for investors is now underway. However, given the Covid-19 pandemic, HSBC said it has suspended some of those plans, saying that it is "not appropriate" to proceed with some of its job reduction programmes in the middle of the current crisis.
Instead, HSBC said it continues to progress other elements of its plan that will position the London-headquartered, Asia-focused bank well for life after Covid-19.
In addition, HSBC said it has continued to invest in some of its key digital transformation programmes, and it intends to continue to plan the entire programme in detail so that it is able to execute at pace when the time is right.
"We will need to consider what additional actions we need to take in response to the new economic circumstances that will emerge post Covid-19," Chief Executive Noel Quinn said Friday.
HSBC highlighted that the global economic environment has become considerably more uncertain in 2020 due to the spread of Covid-19.
The bank said it will report its first-quarter performance next week, at which point it will provide an update on how its performance has been impacted by Covid-19.
Under pressure from the UK Prudential Regulation Authority, HSBC cancelled payment of its fourth interim dividend for 2019. Chair Mark Tucker said "we profoundly regret the financial consequences that the cancellation will have on shareholders, their families and their businesses." He said the board will review its dividend policy at or ahead of its year-end results for 2020.
HSBC shares were trading 0.1% lower in London on Friday at 409.90 pence each.
By Evelina Grecenko; [email protected]
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