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29 March 2024
(Hong Kong
Stock Code: 5)
HSBC HOLDINGS PLC
Completion of the sale of
HSBC Bank Canada to RBC
HSBC Holdings plc ('HSBC') completed
the sale of HSBC Bank Canada ('HSBC Canada') and its subsidiaries
to Royal Bank of Canada ('RBC') on 28 March 2024.
The sale followed a
strategic review of HSBC Canada which concluded the best course of
action strategically for the HSBC Group and HSBC Canada was to sell
the business. The transaction unlocks significant value for the
HSBC Group.
Commenting on the transaction, Noel
Quinn, Group CEO said, "I am grateful to the team
in Canada for their hard work over the last 18 months delivering
this transaction. This is a great business with exceptional
people and clients, and I have no doubt it will thrive as part of
RBC. Completing this deal is another important milestone in HSBC's
transformation, and it will provide capital that will enable us to
grow our core businesses and reward our shareholders for their
loyalty, including through an intended special dividend of US$0.21
per share."
Completion of the transaction will
result in the recognition of an estimated gain on sale of
US$4.9bn in the
first quarter of 2024, inclusive of the recycling of an estimated
US$0.6bn in foreign
currency translation reserve losses1. There is no tax on the estimated
gain recognised at completion. As a consequence of the gain on
sale, the disposal of HSBC Canada RWAs and the recognition of the
special dividend, the HSBC Group's CET1 ratio will be enhanced by
an estimated 0.7 percentage
points2.
Subject to finalisation of its
results for the first quarter of 2024 ('1Q24') and consideration
and approval by the Board, HSBC intends to announce a special
dividend of US$0.21 per share together with its 1Q24 earnings
release expected to be published on 30 April 2024. This would be in
addition to any proposed interim dividend to be considered by the
Board and would be expected to be paid at the same time in June
2024 if approved.
For and on behalf of
HSBC Holdings plc
Aileen Taylor
Group Company Secretary and Chief
Governance Officer
1
Estimates are as at 22 March 2024, and exclude fair value
gains or losses on related foreign exchange hedges to be recognised
in the quarter.
2
Based on HSBC Group RWAs of US$854bn and HSBC Canada RWAs on a PRA
basis (excluding operational risk RWAs) of US$28bn as at 31 December 2023. The
estimated CET1 ratio impact includes the impact of a US$0.21 per
share special dividend, and excludes impacts on foreign
currency-related RWAs at the HSBC Group level. The favourable CET1
impact arising from the disposal of HSBC Canada RWAs, reduced by
the impact of a foreseeable US$0.21 per share special dividend will
be recognised in the first quarter of 2024. The favourable impact
arising from the recognition of the gain on sale will be recognised
upon the verification of interim profits during the second quarter
of 2024.
Miscellaneous
The Board of Directors of HSBC
Holdings plc as at the date of this announcement
comprises:
Mark Edward Tucker*, Noel Paul
Quinn, Geraldine Joyce Buckingham†, Rachel
Duan†, Georges Bahjat Elhedery, Dame Carolyn Julie
Fairbairn†, James Anthony Forese†, Ann
Frances Godbehere†, Steven Craig
Guggenheimer†, Dr José Antonio Meade
Kuribreña†, Kalpana Jaisingh Morparia†,
Eileen K Murray†, Brendan Robert Nelson†,
David Thomas Nish† and Swee Lian
Teo†.
*
Non-executive Group Chairman
† Independent non-executive
Director
This announcement contains both historical and forward-looking
statements. All statements other than statements of historical fact
are, or may be deemed to be, forward-looking statements.
Forward-looking statements may be identified by the use of terms
such as 'expects,' 'targets,' 'believes,' 'seeks,' 'estimates,'
'may,' 'intends,' 'plan,' 'will,' 'should,' 'potential,'
'reasonably possible', 'anticipates,' 'project', or 'continue',
variation of these words, the negative thereof or similar
expressions or comparable terminology. HSBC has based the
forward-looking statements on current plans, information, data,
estimates, expectations and projections about, among other things,
results of operations, financial condition, prospects, strategies
and future events, and therefore undue reliance should not be
placed on them. These forward-looking statements are subject to
risks, uncertainties and assumptions about us, as described under
'Cautionary statement regarding forward-looking statements'
contained in the HSBC Holdings plc Annual Report on Form 20-F for
the year ended 31 December 2023, filed with the SEC on 22 February
2024 (the '2023 Form 20-F'). HSBC undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. In
light of these risks, uncertainties and assumptions, the
forward-looking events discussed herein might not occur. Investors
are cautioned not to place undue reliance on any forward-looking
statements, which speak only as of their dates. No representation
or warranty is made as to the achievement or reasonableness of and
no reliance should be placed on such forward-looking statements.
Additional information, including information on factors which may
affect the HSBC Group's business, is contained in the 2023 Form
20-F.
ends/more
Investor enquiries to:
Neil Sankoff
+44 (0) 20 7991 5072
investorrelations@hsbc.com
Yafei Tian
+852 2899 8909
yafei.tian@hsbc.com.hk
Media enquiries to:
HSBC press office
+44 (0) 20 79918096
pressoffice@hsbc.com
Note to editors:
HSBC Holdings plc, the parent
company of the HSBC, is headquartered in London. HSBC serves
customers worldwide from offices in 62 countries and territories.
With assets of US$3,039bn at 31 December 2023, HSBC is one of the
world's largest banking and financial services
organisations.
HSBC Holdings plc
Registered Office and Group Head Office:
8 Canada Square, London E14 5HQ,
United Kingdom
Web: www.hsbc.com
Incorporated in England with limited liability. Registered in
England: number 617987