HSBC’s long-term Asian bet is proving an uphill struggle
CEO John Flint received a lukewarm reception earlier this year when he said he planned to invest $17bn to build HSBC’s presence in the region and improve technology
Hong Kong/London — HSBC is struggling to produce any significant revenue growth from its long-term bet on Asian markets. Second-quarter adjusted revenue advanced 2% from a year earlier to $13.7bn, HSBC said on Monday. That was below the average estimate among three analysts surveyed by Bloomberg. Costs, meanwhile, increased 7% as CEO John Flint stepped up investments in areas such as technology. The shares gave up some earlier gains after the results were announced. Flint, promoted to CEO in February, plans to grow the global behemoth by expanding in key Asian markets including China and establishing the lender as a top-tier wealth manager. Flint’s plan earlier this year to invest $17bn to build its presence in the region and improving technology was met with a lukewarm reception, amid concern about how long cost growth would outpace revenue and hold back the dividend. HSBC shares were up 0.5% at 1.37pm in Hong Kong, after rising 1.5% ahead of the midday trading break. The stock has...
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