HSBC sets aside US$1 billion for first share buy-back since October
HSBC, the top lender in Hong Kong, on Tuesday resumed its share repurchase programme, earmarking US$1 billion to buy back shares over the next three months, its first since October, according to a stock exchange filing. The bank said in October it had to pause share buy-backs for three quarters to conserve capital for its US$14 billion acquisition of subsidiary Hang Seng Bank. The market had…
HSBC has announced a US$1 billion share buy-back program, marking its first repurchase since October. The decision comes after the bank reported a 60% increase in its second-quarter pre-tax profit to US$10.15 billion, surpassing analysts' estimates of US$9.5 billion. The bank had previously paused share buy-backs in October to conserve capital for its US$14 billion acquisition of subsidiary Hang Seng Bank.
The buy-back was expected as the market anticipated HSBC to resume repurchases in the July-to-September quarter, with estimates ranging from US$1.5 billion to US$2 billion. The bank will also pay a quarterly dividend of 10 US cents per share, maintaining the same amount declared a year earlier.
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