The buyback is on top of an existing $2 billion program the global bank announced last October.
On Tuesday, the lender said it may be able to hit a key profitability goal in 2022 — a year earlier than expected — if central bank policies “follow the current implied market consensus.”
HSBC shares in Hong Kong fell more than 3% on Tuesday, in line with a broader market sell-off triggered by Russia’s decision to send troops into parts of eastern Ukraine.
But the bank has been staging a comeback in recent months as the global economic recovery continues to improve. On Tuesday, CEO Noel Quinn noted in a statement that “all of our regions were profitable and we saw growth in the fourth quarter of 2021 in many of our business lines.”
“We have good momentum coming into 2022,” he said.
Still, Quinn added that HSBC was “cognizant of the potential impact that further Covid-19-related uncertainty and continued inflation might have on us and our clients.”
The firm also flagged specific headwinds in Asia, where it generates the bulk of its profit.
“Uncertainty [also] remains given recent developments in China’s commercial real estate sector, while inflationary pressures persist in many of our markets,” the lender said.