According to media reports, shareholders have urged HSBC to move to Asia where it could avoid a heavy UK bank tax and other costs. Asia makes up more than 78% of the bank’s profit.
The strategic review was initiated after the bank’s board requested that management look at where the best place is for HSBC to be headquartered following “regulatory and structural reforms”.
“It is essential that we position HSBC in the best way to support the markets and customer bases critical to our future success,” said chief executive Douglas Flint in a statement issued ahead of the bank’s annual general meeting on Friday.
“The question is a complex one and it is too soon to say how long this will take or what the conclusion will be; but the work is underway.”
“Heavy price”
This news comes after HSBC came under fire for allegations of tax evasion linked to its Swiss private banking arm.
“The recent past has been very difficult for HSBC,” Flint said, referring to the bank’s “failings” caused by a “small number of individuals who broke our rules and circumvented our controls”.
“HSBC has paid a heavy price. Our reputation has been damaged and the financial burden of the unacceptable behaviour has been borne by our shareholders in fines, penalties, and additional costs – this is clearly wrong.
“I and my colleagues apologise for the inadequacies in controls that allowed unacceptable behaviours to occur undetected.”
HSBC’s network covers 73 countries across five geographical regions: Europe, Asia, Middle East and North Africa, North America and Latin America.
