HSBC is working hard to convince its largest shareholder, Ping An, that it is better off as a single company. Other investors are unlikely to object to its means of persuasion, which include higher cash returns.
The Anglo-Asian bank pushed back hard on Monday against Ping An’s suggestion that it should be split into Eastern and Western parts. It had the useful platform of better-than-expected second-quarter results. Profit after tax of $5.8 billion was up over the same period last year on higher revenue, lower costs and a deferred-tax gain of $1.8 billion, though its core capital ratio was slightly disappointing. The bank’s shares rose about 7% in morning trading.
