Emma Dunkley Author Rss

The Chinese insurer is going public with its frustrations ahead of the bank’s annual meeting next week

Emma Dunkley — Wed, 26 Apr 2023 19:38:39 +0000

Over the past few years, Ping An has operated behind the scenes in attempting to persuade HSBC to spin off its businesses in Asia. The Chinese insurer seems to be changing tack.

Until now, Ping An has focused on private talks with the bank over a structural revamp, in the hope that unshackling Asia from the rest of the global group will unlock higher returns. The bank’s largest shareholder made a rare public comment last November to back its case.

Perhaps HSBC could avoid an escalation of the argument should returns consistently improve and Ping An’s annual dividend income once again reach $1bn. HSBC has benefited from rising interest rates with its vast $1.3tn worth of customer deposits. But even this tailwind might be temporary.

If Ping An is insistent upon structural reform of some sort to shift more capital to Asia, the chances are there will be a protracted battle that stretches far beyond HSBC’s annual meeting. And it will not be behind closed doors.

This story originally appeared on: Financial Times - Author:Emma Dunkley

Chinese insurer and bank’s largest shareholder will tell lender at its AGM next month to spin off Asian business

Emma Dunkley — Mon, 17 Apr 2023 09:36:38 +0000

Chinese insurer Ping An will demand HSBC boost dividends to pre-Covid levels and commit to regularly reviewing its structure at its annual meeting next month, following calls to break off its Asian business.

HSBC’s largest shareholder is planning to support resolutions proposed by a group of retail investors on dividends and structural reform, which includes spinning off operations in Asia to boost returns, according to people familiar with the situation. Ping An declined to comment.

This story originally appeared on: Financial Times - Author:Emma Dunkley

Sir Nigel Wilson is pushing for policy change to encourage investment outside the capital

Emma Dunkley — Sun, 26 Mar 2023 19:01:08 +0000

The outgoing boss of Legal and General has said that the UK government’s flagship regional development policy of levelling up is “failing” and that the recent banking turmoil will make the situation worse.

In an interview with the Financial Times, Sir Nigel Wilson said: “Are we freeing enough capital to get on [with levelling up]? No. Are we building enough affordable housing, social housing, build-to-rent housing? No.

This story originally appeared on: Financial Times - Author:Emma Dunkley

Change to Solvency II rule book sharply cuts the capital requirements of insurers

Emma Dunkley — Thu, 17 Nov 2022 11:18:11 +0000

Jeremy Hunt has overruled the Bank of England on a key part of insurance reforms intended to unlock tens of billions of pounds of investment into the real economy.

In a range of measures in the Autumn Statement intended to boost the UK’s financial sector, the chancellor made a long-awaited decision on revising the so-called Solvency II regime, which governs how insurers are run, including how much capital they must hold and where they can invest.

Speaking to MPs, Hunt invoked the Big Bang, a sweeping financial deregulation in the 1980s under his predecessor Nigel Lawson, saying: “We must stay true to its mission to make the UK the world’s most innovative and competitive global financial centre.”

The reduction to 3 per cent means banks will pay an effective tax rate of 28 per cent — still higher than its current level due to an increase in general corporation tax to 25 per cent from 19 per cent in April 2023

This story originally appeared on: Financial Times - Author:Emma Dunkley

UK lender looks for ways to boost returns over next four years

Emma Dunkley — Wed, 16 Nov 2022 01:00:48 +0000

Lloyds Banking Group is considering plans to prioritise wealthier customers by offering them better service and more compensation for problems in an attempt to boost returns over the next four years.

In an internal presentation, seen by the Financial Times, the bank suggested the top 5 per cent of customers it regards as most valuable could have their phone calls sent to the “most experienced colleagues” and be awarded “higher . . . complaint payments” when they had grievances.

Customers in the next 20 per cent in terms of the money they held with the bank would be given branch appointments on the same day, shorter call answer times, and a more flexible approach to borrowing decisions under the proposals.

This story originally appeared on: Financial Times - Author:Emma Dunkley