Offshore Capitalist

HSBC chief warns of second downturn

The group chief executive of HSBC, Michael Geoghegan, has warned a second downturn could be on the horizon and has reacted by limiting the bank’s expansion.

In an interview with the Financial Times, Geoghegan – a career banker who has been with HSBC for more than three decades – said he believed the recovery was more likely a ‘W’ shape rather than a ‘V’, indicating another move downwards is on the cards.

Geoghegan said given his view, the banking giant was therefore treading carefully so as to avoid getting caught out by any upcoming pull back in markets or economies.

He said: ‘We have to be very careful we don’t grow the balance sheet so far before the recovery has come only to write it back into the impairment line later on. I’m cautious about growing too fast.’

via HSBC chief warns of second downturn | Personal Investor | Citywire.

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