Hong Kong: HSBC’s finance chief said the banking giant will not require a British government bailout even if economic conditions in Britain or the United States worsen, a report said Monday.
Douglas Flint, the chief financial officer of HSBC holdings, said the company’s recently-announced rights issue would provide more than enough capital, the South China Morning Post said.
“The 17.7 billion US dollars we are raising seemed to be an amount that made us extremely robust in any set of circumstances we could foresee,” he said, according to the Post.
Flint said HSBC would not have to follow Lloyds TSB and Royal Bank of Scotland (RBS) into taxpayer-funded bailouts.
“We are in a totally different position. We were one of the few banks in the world that were profitable last year. It is unthinkable,” he told the paper.
Both RBS and Lloyds TSB have needed huge bailout packages from the British government in the past 12 months.
Flint added that troubled American lender Household Financial Corporation would stop needing extra financial help from the parent group by the end of next year, the English-language daily said.
HSBC reported a 70% tumble in annual net profit for 2008 earlier this month, mainly due to a huge write-off linked to the dire performance of its US unit.
It also said it hoped to raise the $17.7 billion in a rights issue to fund new business opportunities, insisting it did not need the cash to shore.