In the midst of ongoing profit pressures from Chinese insurer and shareholder Ping An, HSBC said it would target returns in the «mid-teens» for its Asia business.
HSBC reiterated its ambitions to generate a return on tangible equity of at least 12 percent from 2023 onwards, according to an exchange filing.
This includes targets of high single-digit percentage wealth revenue growth and mid-single-digit percentage lending growth over the medium to long term.
Ping An Pressures
Ping An has continuously applied pressure on HSBC, criticizing its existing model as inefficient while pushing for a spin-off of its Asia business. According to the Chinese insurer, HSBC’s return on tangible equity in Asia stands at 10.5 percent in 2022, lagging behind the peer average of 13.8 percent.
In response, HSBC has repeatedly stood its ground and defended the bank’s global connectivity as a key competitive advantage.
«We now have an unrivalled international proposition that supports our Asia customers looking to trade with and grow in markets across Europe, the Middle East and the Americas, and vice versa,” said chief executive Noel Quinn. «In addition to our core strength in Hong Kong, we now have growth engines in mainland China, India, Singapore and beyond.»
