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HSBC launches $1 billion planned share buyback

Published 05/04/2022, 02:22 AM
Updated 05/04/2022, 02:41 AM
© Reuters. FILE PHOTO: HSBC logo is seen on a branch bank in the financial district in New York, U.S., August 7, 2019. REUTERS/Brendan McDermid

LONDON (Reuters) -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 cancelled 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.

© Reuters. FILE PHOTO: HSBC logo is seen on a branch bank in the financial district in New York, U.S., August 7, 2019. REUTERS/Brendan McDermid

The process is due to end on Aug. 31.

Late last month, HSBC said it would put plans for a 2022 buyback programme on ice after reporting a larger than expected hit to capital reserves driven by rising inflation and geopolitical tension.

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