FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the
month of April
HSBC Holdings plc
42nd
Floor, 8 Canada Square, London E14 5HQ, England
(Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F).
Form
20-F X Form 40-F
(Indicate
by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934).
Yes
No X
(If
"Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-
).
HSBC HOLDINGS PLC - AGM STATEMENTS
Following the Annual General Meeting of HSBC Holdings plc, held at
8 Canada Square, Canary Wharf, London, UK today, the following
statements were issued by Group Chairman, Mark Tucker and Group
Chief Executive, Noel Quinn.
Group Chairman's Statement:
Fellow shareholders,
We are living in difficult and challenging times, with the spread
of the COVID-19 virus globally and the resulting unprecedented
social and economic instability. Our thoughts are with all those
directly affected by the virus. We are both inspired and humbled by
the healthcare and other key workers who are protecting us and
working on the frontline. This includes HSBC colleagues, and our
primary concern is their health and wellbeing, as well as that of
our customers, shareholders, families and friends.
It is a matter of deep regret that we are unable to meet with
shareholders face-to-face at our 2020 Annual General Meeting
('AGM'). Our AGM is one of the most important dates in HSBC's
calendar, and the Board greatly values the discussions and
interactions that we have when we meet under normal circumstances.
However, the UK Government's introduction of social distancing
measures and prohibition of non-essential travel and public
gatherings have made it impossible for shareholders to attend this
year's meeting in person. The Board and I would like to thank
shareholders for their understanding and support.
The Board and I would also like to thank everyone who works for
HSBC for their unwavering commitment to one another and to our
clients. This unprecedented situation is testing our people
severely. We are immensely proud of how they are responding and of
the efforts they are making to help each other, support our
customers and maintain business continuity.
Dividend
There is clearly a great deal of economic uncertainty due to the
spread of COVID-19. On 31 March, HSBC, in line with all other
large UK-based banks and at the clear and direct request of the
Group's lead regulator (the UK Prudential Regulation Authority),
cancelled the fourth interim dividend of 2019. We also announced
that, until the end of 2020, we will make no quarterly or interim
dividend payments or accruals in respect of ordinary shares, or
undertake any share buy-backs in respect of ordinary
shares.
The impact on all of our stakeholders, including of course our
shareholders, was very carefully considered by the Board. We are
acutely aware of how important the dividend is to you.
Approximately 40% of our total shareholder base are retail
shareholders, primarily in Hong Kong and the UK, and many rely
directly or indirectly on the dividend as a stable source of
income. We recognise that many shareholders are deeply disappointed
by the cancellation of the dividend and we profoundly regret the
financial consequences that the cancellation will have on
shareholders, their families and their businesses. This action was
not taken lightly and reflects the view of our Group's lead
regulator that extra prudence is needed in these unprecedented
times, so that banks like ours can help support customers, both now
and in the long-term.
The Board will review our dividend policy at or ahead of the
year-end results for 2020, when the economic impact of the pandemic
is better understood. We will also take into account the views of
our shareholders, the interests of our other stakeholders and other
factors, including HSBC's financial performance and capital
position.
Group Chief Executive and Strategic Update
During the course of 2019, the Board determined that it had two
major priorities. One was to ensure the selection of a new Group
Chief Executive and the other was the need to enhance performance,
accelerate pace and improve our sustainable returns. We concluded
that both were urgent challenges and that we needed to tackle them
immediately and separately.
The process of searching for a new Group Chief Executive began in
August 2019 and was the subject of much interest. The Board was
determined to run a comprehensive and rigorous search, identifying
and evaluating world-class candidates from both inside and outside
the Bank.
Following this, the Board unanimously concluded that Noel Quinn was
the best candidate. The circumstances that have unfolded in the
first quarter of 2020 - and the way that HSBC is responding - make
it even clearer that Noel is the right person for the
job. Noel has a clear sense of where we need to go. He is
an outstanding leader who knows how to get us there. He knows the
Bank and has the energy we need to gain momentum. He has an
impressive track record over 30 years in financial services, is
client-oriented, builds strong relationships, and understands our
global customer base. He has a vision of what digital can do for us
and our customers in the future.
When Noel was appointed interim Group Chief Executive in August
2019, the Board saw a pressing need to reallocate capital away from
underperforming businesses to support the growth of higher return
businesses where we had competitive advantage. The Board and
Executive were also acutely aware of the need to improve
efficiency, reduce costs and inject pace. Noel worked closely with
the Board to formulate and determine a strategic plan with the aim
of achieving these objectives. The plan was endorsed by the Board
and announced in February 2020. We believe that it amounts to a
very significant shift in the allocation of the Bank's capital and
resources, builds on our inherent strengths and is designed to
significantly improve sustainable returns for our shareholders.
Good progress is already being made, as Noel will set out in his
statement. Despite everything that has happened in the first
quarter of 2020, we remain intent on delivering the necessary
change at pace.
Resolutions
With regard to the formal business of the meeting, I can confirm
that resolutions 1 to 7, 10, 12 and 14 to 16 have passed as
ordinary resolutions; resolutions 8, 9, 11, 13 and
17 have passed as special resolutions; and resolution 18 has
not passed.
The detailed results of the voting on each and every
resolution will be published shortly, alongside responses to the
most frequently asked questions by theme that shareholders have
submitted.
Our people
2019 was a challenging year in which the external environment
became more complex and uncertain. 2020 has already brought truly
exceptional new challenges. Throughout all of this, the commitment,
ability and expertise of our people have continued to shine
through. They are the driving force behind our success and the
Board and I want to thank them for their continued dedication, care
and immense professionalism.
I strongly believe that banks will continue to play a critical role
in helping individuals, businesses and communities through the
difficulties they are facing during the COVID-19 pandemic. They
will provide essential support for the subsequent economic
recovery. The positive impact of our industry has not always been
widely understood. I hope our collective action makes absolutely
clear the many societal and economic benefits that banks and our
employees provide.
Our challenge is to strive to be worthy of the trust that society
in general, and our shareholders in particular, have placed in us.
Thank you for your continued support and please take good care of
yourselves.
Group Chief Executive's Statement:
Dear Shareholders,
It is an honour to have been asked to lead HSBC, an organisation
that I care deeply about and that serves millions of people around
the world.
The COVID-19 pandemic has underlined the central role our bank
plays in the lives of so many. The challenges we face as a global
community are unprecedented, and I echo the tribute paid by Mark to
the healthcare and other key workers around the world who are
putting themselves in harm's way each day to care for the sick,
protect the vulnerable, and maintain essential services. This
includes the many staff across the financial services industry who
are doing so much to keep the economy moving.
I am immensely proud of the significant efforts that colleagues
across HSBC have made and are making to support each other, look
after our customers and enable business continuity. Many of my
colleagues are providing critical services to maintain day-to-day
operations in branches, service centres, offices and back-up sites
around the world. I know the pressure that many of them are facing
and I thank them sincerely for their work.
I am also aware of the strain being placed on our shareholders,
particularly our retail shareholders, following the request from
our lead regulator to cancel our fourth quarter dividend payment
for 2019. I share the deep regret that Mark expresses in his
statement about the impact that this will have on you, your
families and your businesses. While circumstances mean we cannot
discuss this and other issues in person today, I look forward to
continuing our engagement as soon as is practicable. This is your
Bank, and your views will always be of great importance to
me.
COVID-19
We are working hard to provide our customers and the communities we
serve with the support they need both during and after the COVID-19
pandemic. This includes working closely with governments to ensure
that stimulus measures reach the real economy quickly and
efficiently.
For personal customers, where appropriate, we have offered payment
holidays on products such as mortgages, personal loans and credit
cards, waived fees and charges, and facilitated access to physical
cash. For business customers, we are offering loan repayment
holidays, extensions to trade and working capital loans, and fee
waivers on certain products. To date, we have allocated £8bn
to support business customers in the UK, and approved more than
HK$30bn in immediate liquidity relief for businesses facing market
uncertainty and supply chain pressures in Hong Kong. We are
constantly reviewing and updating our support packages as the
pandemic continues to unfold.
We have also announced a US$25m COVID-19 charitable fund to support
the international medical response, protect vulnerable people and
ensure food security. Within this, we have already pledged US$1m to
the International Red Cross and Red Crescent Societies' COVID-19
Emergency Appeal; US$1m to the COVID-19 Solidarity Response Fund
for the World Health Organisation through The United Nations
Foundation and Swiss Philanthropy Foundation; and US$15m to relief
and recovery efforts around the world, including US$8.8m across the
Asia-Pacific region and US$2.6m to causes in the UK, such as the
National Emergencies Trust and the British Red Cross.
Financial strength
HSBC has always been there for our customers in times of crisis,
and we are confronting the present economic situation from a
position of financial strength. In 2019, our adjusted profit before
tax increased by 5% on the prior year, reflecting good revenue
growth in three of our four global businesses. Group reported
profit before tax was down 33% compared with 2018, due to a
goodwill impairment of US$7.3bn. Disciplined cost management helped
secure positive adjusted jaws of 3.1%, despite continued heavy
investment in growth and technology. Our Group return on average
tangible equity - our headline measure - fell from 8.6% in 2018 to
8.4%. Our common equity tier 1 capital ratio remained strong at
14.7%.
We invested more than US$4.5bn during 2019 to connect more
customers to our international network, provide a better service
through improved digital capabilities, and make it easier for our
customers to bank with us. This has enhanced the service we offer,
helping to attract new customers and capture market share in our
major markets and from our international network.
The global economic environment has become considerably more
uncertain in 2020 due to the spread of COVID-19. We will report our
first quarter performance next week, at which point we will provide
an update on how our performance has been impacted by
COVID-19.
Business update
In February, I announced a programme to create a leaner, simpler
and more competitive Group that is better positioned to deliver
higher returns for investors.
There are three main parts to this plan.
First, we intend to materially reshape underperforming areas of the
Group. Around 30% of our capital is currently allocated to parts of
the business that deliver returns below their cost of equity,
largely in Global Banking & Markets in Europe and the US. We
intend to focus these businesses on our strengths as a leading
international bank and to simplify our footprint, exiting
businesses where necessary and reducing both risk-weighted assets
and costs.
Second, we aim to reduce Group costs by increasing efficiencies,
sharing capabilities and investing in automation and
digitisation.
Third, we intend to simplify HSBC to accelerate the pace of
execution and make the Group more agile. This includes simplifying
the geographical organisation of the Group, and moving from four
global businesses to three by combining Retail Banking & Wealth
Management and Global Private Banking to create one of the world's
largest wealth management businesses.
Taken together, our intention is to create the capacity to invest
in higher-growth, higher-returning opportunities in the areas in
which we are strongest.
Many of our transformation plans are now underway, but given the
COVID-19 pandemic, we have suspended some of those plans in the
interests of our people and our customers. It would not have been
appropriate to proceed with some of our job reduction programmes in
the middle of the current crisis. It would have created an
unwarranted operational risk for the business at a time when we
want our colleagues focused on supporting our customers, and it
would have created further uncertainty for our people during what
is already a challenging time. Those directly affected would also
have been put in a very difficult personal situation with regard to
seeking new employment. We have therefore paused the vast majority
of redundancies associated with this programme where notices have
not already been issued.
We have continued to progress other elements of our plan that will
position the Bank well for life after COVID-19. We have made a
number of key appointments to the Group Executive Committee and
other senior leadership positions to refresh the executive team and
increase the focus on execution. We now have the right team with
the right mix of skills and experience to drive the change we need
at pace. Work has started to combine the back and middle office
functions across our wholesale businesses, and we are making good
progress in combining Retail Banking and Wealth Management and
Global Private Banking to create a single Wealth and Personal
Banking business. We have continued to invest in some of our key
digital transformation programmes, and we will continue to plan our
entire programme in detail so that we are able to execute at pace
when the time is right.
Of course, we are now operating in a very different context to that
we faced in February. Therefore, 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.
The consequences of the COVID-19 pandemic, and our role in helping
our customers succeed in the recovery still to come, increase the
need to press ahead with our transformation wherever possible. We
will continue to do so thoughtfully and purposefully, while doing
everything necessary to safeguard the wellbeing of our customers
and our people.
Our people
Our success has always depended on our exceptional colleagues
staying close to our customers, looking out for one another and
going the extra mile in the service of both. The care,
determination and energy that they are showing day in, day out
makes me even more proud to lead HSBC. I offer them all my
heartfelt thanks.
Thank you to all our shareholders for your support. Please continue
to stay safe.
Media enquiries to:
Investor enquiries to:
Note to editors:
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is
headquartered in London. HSBC serves customers worldwide from
offices in 64 countries and territories in our geographical
regions: Europe, Asia, North America, Latin America, and Middle
East and North Africa. With assets of US$2,715bn at 31
December 2019, HSBC is one of the world's largest banking and
financial services organisations.
ends/all
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
HSBC
Holdings plc
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By:
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Name:
Aileen Taylor
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Title:
Group Company Secretary and Chief Governance Officer
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Date:
24 April 2020
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