HSBC holds fire on expansion plans

by Gill Montia

Story link: HSBC holds fire on expansion plans

The group chief executive of Europe’s largest bank is holding fire on expansion plans for fear of a “W” rather than a “V” shaped recession.

Michael Geoghegan of HSBC is braced for a second economic downturn, telling The Financial Times he is cautious about “growing too fast” before signs of a recovery can be confirmed.

Last week, HSBC announced that Mr Geoghegan will be based in Hong Kong from February of next year and at the same time gave details of a major reshuffle across the group’s boards.

However, chairman Stephen Green said there was “absolutely no question” of HSBC pulling out of the City.

Mr Geoghegan’s relocation was explained as in line with the group’s stated strategy of focusing on emerging markets and positioning the bank “for the shift in the world’s centre of economic gravity from West to East”.