Page 29 - HSBC (D) Case Study

The Future

Today HSBC tagline now, ‘HSBC helps you unlock the

world’s potential’ is a smaller, more manageable

operation. It is coming out of a period of extensive

restructuring, having exited more than half the countries

where it had branches and made more than 87,000 job

cuts.

These developments should allow HSBC to return more

capital to shareholders either by paying higher dividends

or extending its share buy-back programme.

On this basis John Flint (head of the bank’s Retail Bank

and Wealth Management divisions) who took over from

Stuart Gulliver on 21 February 2018 may have a freer

hand than his predecessor.

However, a number of outstanding misconduct issues still
remain unresolved. HSBC is expecting a $1bn-plus fine in

the coming months for its role in mis-selling toxic

mortgage products in the US ahead of the financial crisis.

In February 2018 HSBC warned “that it could pay at least

$1.5bn in penalties over alleged tax evasion and money

laundering at its Swiss private bank” casting a shadow

over Stuart Gulliver’s final day as chief executive. (13)

The February warning about further penalties came after

HSBC agreed to pay €300m in November to settle an

investigation by the French public prosecutor into

allegations it helped clients evade taxes in 2006 and 2007.

(13)