HSBC Sets in Motion Its Planned $1 Billion Share Buyback

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Photo: Reuters

HSBC kicked off its planned $1 billion share buyback on Wednesday as it aims to redeploy excess capital and reward shareholders.

The London-listed global lender has appointed Merrill Lynch International to conduct the process, which could see as many as two billion HSBC ordinary shares canceled in a decision that should boost average earnings per share.

Merrill Lynch said it will make trading decisions related to the buyback separate from HSBC and purchase shares “on exchange.”

The process is due to end on August 31.

Last month, HSBC said it would postpone plans for a 2022 buyback program after reporting a larger than expected hit to capital reserves due to rising inflation and geopolitical tension.

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James Blunt

James Blunt is an Economics Journalist. He is well-equipped with research and investigation. For the past 8 years, he has been covering all economic and personal finance-related content that identifies with and topically relates to businesses' vision/target demographic.

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