HSBC took advice from investment banks over break-up

HSBC chief executive Noel Quinn has said he was “challenged” by external advisers about a potential break-up of the bank but ultimately concluded it would be “a net negative”.

Mr Quinn said HSBC carried out “detailed analysis of strategic options” after pressure from its largest shareholder, the Chinese insurer Ping An, and Hong Kong-based retailer investors to split the bank in two.

“When one of your largest shareholders presents a view of the strategy that is different to your view as a management team, you’ve got to take that seriously – and as you’d expect, we have,” he said at a conference hosted by Bank of America in New York yesterday.

“I wanted to be challenged. I wanted some analysis. I wanted external parties – investment banks and legal advisers – to make sure we’d done a good job.”

HSBC received advice from Goldman Sachs and Robey Warshaw, a boutique investment bank. Mr Quinn said management had “taken the board through all that work” but concluded a break-up was “a net negative”.