
HSBC boosts reserves after court backs capital cancellation
It cancelled US$1.8b from its capital redemption reserve.
HSBC Holdings has received court approval to reduce its capital to increase distributable reserves.
The reduction comprises the cancellation of US$14.8b from the company’s share premium account and US$1.8b from its capital redemption reserve.
HSBC said the reduction will also enhance its ability to return value to shareholders over time via dividends and share buybacks.