WEBVTT - Noel Quinn HSBC CEO Talks Equity

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<v Speaker 1>We spoke to our Quinn HSPs is outgoing CEO, who

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<v Speaker 1>told us it has been a strong performance.

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<v Speaker 2>Really please that we've delivered a return on tangible equity

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<v Speaker 2>of seventeen percent excluding notable items. So listen, I'm pleased

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<v Speaker 2>not only for our shareholders, but also for the two

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<v Speaker 2>hundred thousand colleagues around the world who have made this

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<v Speaker 2>possible to deliver a financial performance this strong. I'm pleased

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<v Speaker 2>with the way that they've handled the past five years,

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<v Speaker 2>the work they've done, the transformation and the results today

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<v Speaker 2>are testaments of the work that they've they've put in

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<v Speaker 2>and you know, match the heritage of HSBC and the

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<v Speaker 2>strategic promise of HSBC. The financial results now match that,

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<v Speaker 2>and that's why I'm also very pleased today that we've

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<v Speaker 2>announced a three billion dollar buyback program, having completed three

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<v Speaker 2>billion dollars over the last three months. And just your

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<v Speaker 2>manor just one thing that sometimes we tend to get

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<v Speaker 2>is quarter by quarter. But in the last eighteen months,

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<v Speaker 2>we've distributed to our shareholders thirty four billion dollars of

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<v Speaker 2>capital either via dividends or buybacks and us in eighteen

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<v Speaker 2>months and fifty four billion dollars over the past five years.

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<v Speaker 3>So let's talk more about the earnings and specifically that

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<v Speaker 3>share buyback number three billion dollars higher than what the

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<v Speaker 3>market was anticipating. How do you square up the market's

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<v Speaker 3>expectations of what you can offer in terms of shared

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<v Speaker 3>buybacks versus say, the need to continue investing in the

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<v Speaker 3>business or in other areas or M and A for example.

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<v Speaker 2>Well, we said this year and last year as well

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<v Speaker 2>that we would operate a fifty percent dividend payer ratio,

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<v Speaker 2>So fifty percent goes in dividends, fifty percent is retained

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<v Speaker 2>in the bank, and that it can be retained either

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<v Speaker 2>to fund growth and or additional buybacks additional distribution to

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<v Speaker 2>shareholders by in the way of buybacks. That second fifty

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<v Speaker 2>percent can do both and is doing both. We're retaining

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<v Speaker 2>sufficient to drive growth, and we're distributing any excess because

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<v Speaker 2>we've still got a very strong capital ratio CET one

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<v Speaker 2>ratio work quite well above our target range. Therefore, we're

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<v Speaker 2>able to both grow and distribute via buybacks. We do

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<v Speaker 2>not re announced buybacks. We do we are on a

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<v Speaker 2>quarter by quarter basis. But I'm pleased that we've announced

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<v Speaker 2>three billion dollars today and it's a function of the

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<v Speaker 2>high returns that we generate in and the good profit

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<v Speaker 2>performance we generate in, and our confidence for the future.

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<v Speaker 2>The other thing we announced today is a new target,

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<v Speaker 2>a new guidance of mid teens returns for twenty twenty five.

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<v Speaker 2>That's a new piece of information we've put into the market.

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<v Speaker 2>That is evidence of our confidence of our ability to

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<v Speaker 2>continue to deliver good, strong financial performance even if in

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<v Speaker 2>tress rates come down. We built alternative revenue growth resugees

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<v Speaker 2>to provide us with the sustainability of returns going forward

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<v Speaker 2>as interest rates come down.

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<v Speaker 1>Okay, HSBC is outgoing CEO no Quinn talking to Jamana

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<v Speaker 1>Pisci down