Financial Data and Key Metrics Changes - Group revenues grew by 5% year-on-year, reaching $71 billion, while profit before tax rose by 7% to a record $36.6 billion [4][16][27] - Return on tangible equity was reported at 17.2%, achieving the mid-teens target [4][16][27] - Customer deposit balances increased by $78 billion to $1.8 trillion, reflecting a 5% growth [14][16] Business Line Data and Key Metrics Changes - Transaction banking revenues grew by 4%, driven by elevated market activity [4] - Wealth management revenues surged by 24%, indicating strong performance in fast-growing markets [5] - Banking net interest income (NII) for the full year was $44.1 billion, with a fourth-quarter NII of $11.7 billion, reflecting a $0.7 billion increase [19][20] Market Data and Key Metrics Changes - The U.K. business banking lending grew by 13% year-on-year, excluding COVID loan run-off [9] - In Asia and the Middle East, structural growth opportunities are being captured, with significant trade volumes and shipments [10][35] - The privatization of Hang Seng Bank is expected to enhance growth opportunities in Hong Kong [5][17] Company Strategy and Development Direction - The company is focused on three strategic priorities: simplifying operations, driving customer centricity, and delivering sustainable growth [6][10] - The privatization of Hang Seng Bank is seen as a strategic move to consolidate capabilities and drive growth [5][17] - New growth targets have been set for 2026 to 2028, aiming for year-on-year revenue growth rising to 5% by 2028 [12][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainty from a position of strength, emphasizing the importance of disciplined execution of strategy [13] - The company anticipates continued strong deposit growth and a positive outlook for Banking NII in 2026, despite potential rate changes [19][68] - The management highlighted the importance of investing in technology and customer relationships to enhance competitiveness [11][55] Other Important Information - The company announced a full-year ordinary dividend of $0.75 per share, a 14% increase from the previous year [5][16] - The CET1 capital ratio improved to 14.9%, reflecting strong organic capital generation [16][66] - The company is committed to maintaining a 50% dividend payout ratio while focusing on growth investments [66] Q&A Session Summary Question: Revenue growth target by 2028 - Management discussed the components of achieving the 5% revenue growth target, emphasizing the role of wealth management and market growth in Asia [33][34] Question: Cost growth and HIBOR assumptions - Management clarified that the 1% cost growth guidance includes investments in technology and that HIBOR rates have stabilized, impacting Banking NII positively [40][44] Question: Sustainability of RoTE guidance - Management indicated that the 17% RoTE target is ambitious and reflects ongoing investments in growth, with no specific trajectory provided beyond the planning horizon [70][73] Question: Hang Seng Bank synergies - Management explained the distinction between reported synergies and additional upside, noting that the latter involves some uncertainty related to market conditions [48][74]

Presentation to Investors and Analysts HSBC Holdings plc 4Q24 Results Business update Georges Elhedery Group CEO Our FY24 performance Business update 4Q24 results Appendix FY24 performance $26.9bn of distributions to shareholders1, on the back of our strong performance Record PBT Earnings Return on tangible equity Distributions Unless otherwise stated, this presentation is presented on a constant currency basis. denotes a measure shown on a reported FX basis. In this presentation, % changes relating to ECL ...