HSBC Highlights Serious Trade Risks to Global Growth
By Lawrence White and Sinead Cruise
LONDON (Reuters) -Shifting global trade relations have increased economic uncertainty with serious risks to growth, making it difficult for international banks to read the medium term outlook effectively, HSBC Chairman Mark Tucker said on Friday.
Speaking at the bank's annual shareholder meeting in London, a day after it was announced he will leave the lender by the end of the year, Tucker said he was confident HSBC can meet targets and deliver another year of healthy returns in 2025.
HSBC was among major European lenders that this week retained ambitious performance targets after bumper first quarter profits, despite threats to their earnings from a possible global recession and shaky business confidence.
Asia and trade-focused HSBC is potentially more exposed than some peers to the fallout from U.S. President Trump's sweeping tariffs, as they threaten to disrupt global trade corridors and hurt China and Asia-based businesses that import or export.
The bank also said it remains committed to its ambition of becoming a net zero bank by 2050 and has begun a review of interim financed emissions targets and associated policies.
HSBC had alarmed campaigners earlier this year by ditching its target of reaching net-zero carbon emissions across its business by 2030, blaming slow change in the economy.
Some campaigners mounted a modest protest at the event on Friday, voicing concerns that banks like HSBC are capitalising on a shift in the political climate surrounding sustainability and climate matters.
Climate-sceptic U.S. President Donald Trump has signalled he plans to scale back U.S. climate commitments, which Trump says can impede business opportunities for multinational companies, especially those active in developing economies.
(Reporting by Lawrence White and Sinead Cruise; Editing by Susan Fenton)