HSBC’s (HSBC) Wealth Business Is Growing 18%, but Can Hong Kong Keep Powering It?

What happened: HSBC plans to shift senior staff pay from fixed allowances to bonuses starting in 2028, per a Bloomberg report citing a memo. CEO Georges Elhedery has run a two-year rebuild including business sales, closures and job cuts. Key numbers: Wealth grew 18% on a constant-currency basis; group profit before tax rose 23% in the first Why it matters: A bonus-heavy pay model depends on continued profit, and more than a quarter of profit comes from Hong Kong. HSBC shares fell after Caixin Global reported China extending personal income tax to returns on Hong Kong insurance policies.

HSBC plans to shift senior staff pay from fixed allowances to bonuses starting in 2028, per a Bloomberg report citing a memo. CEO Georges Elhedery has run a two-year rebuild including business sales, closures and job cuts.

A bonus-heavy pay model depends on continued profit, and more than a quarter of profit comes from Hong Kong. HSBC shares fell after Caixin Global reported China extending personal income tax to returns on Hong Kong insurance policies.