People wearing protective masks walk past a HSBC Holdings Plc logo at the bank's headquarters building in Hong Kong, China, Oct 22, 2020. (CHAN LONG HEI / BLOOMBERG)
LONDON – HSBC has kicked off its planned $1 billion share buyback on Wednesday, as it seeks to redeploy excess capital and reward shareholders.
The London-listed global lender has appointed Merrill Lynch International to conduct the process, which could see as many as 2 billion HSBC ordinary shares canceled in a move that should lead to a boost in average earnings per share.
The London-listed global lender has appointed Merrill Lynch International to conduct the process, which could see as many as 2 billion HSBC ordinary shares canceled in a move that should lead to a boost in average earnings per share
Merrill Lynch will make trading decisions in relation to the buyback independently of HSBC and will purchase shares 'on exchange', the bank said.
The process is due to end on Aug 31.
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Late last month, HSBC said it would put plans for a 2022 buyback program on ice after reporting a larger than expected hit to capital reserves driven by rising inflation and geopolitical tension.