HSBC lifts investment plan in Hong Kong, other high-growth markets to US$1.8 billion
HSBC reported a 7 per cent profit drop, but shares rose on its CEO’s comments on higher return goals, steady dividends and new growth plans
HSBC Holdings unveiled a range of new growth targets and strategies on Wednesday, including plans to boost investment in Hong Kong and other high-growth markets to US$1.8 billion in the coming years.
CEO Georges Elhedery said the bank would raise its return target to 17 per cent or higher from 2026 to 2028, while maintaining a sustainable dividend policy. The forward-looking commitments helped lift HSBC’s share price despite a 7 per cent decline in annual profit.
Among the expansion plans, the bank would increase investment in high-growth markets in the coming years to US$1.8 billion, up from US$1.5 billion announced in 2025, Elhedery said in a post-results media briefing.
The increase comes as the bank’s global restructuring and its privatisation of Hang Seng Bank delivered cost savings ahead of schedule. HSBC completed a US$14 billion buyout of its subsidiary Hang Seng Bank in January. HSBC has already achieved US$1.2 billion in cost savings and expects to complete its US$1.5 billion savings target by mid-2026, six months ahead of plan.
“The reported cost synergies across HSBC and Hang Seng Bank will release US$300 million in the coming years, which we will reinvest for growth in Hong Kong,” Elhedery said, adding the investment will go to technology, products and staff training. “Our ambition really is to be able to capture the growth opportunities available for us in Hong Kong, across both HSBC and Hang Seng brands.”
The new return target for the next three years, excluding one-off items, improves upon the “mid-teens” goal the bank set in 2025. Elhedery said HSBC would aim for 5 per cent annual revenue growth and maintain a dividend payout ratio of 50 per cent over the same period.