None
EN
HSBC sets aside US$1 billion for first share buy-back since October
['Enoch Yiu']
South China Morning Post
The share price of HSBC Holdings fell 2.5 per cent on Tuesday afternoon following the lender’s announcement of a lower-than-expected share buy-back.
The bank said in October it would have 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 widely expected HSBC to resume repurchases in the July-to-September quarter, with estimates ranging from US$1.5 billion to US$2 billion.
The share buy-back, which fell short of expectations, led HSBC’s share price to fall 2.5 per cent to HK$164 in the early afternoon on Tuesday, following the announcement.
Therefore, the residual excess capital for share buy-back is at a reduced number than what the analysts call up,” she said in a media briefing on Tuesday.