Financial Data and Key Metrics Changes - Operating income increased by 2% on a reported basis and 4% on a constant currency basis, with underlying operating profit at $4.2 billion, an increase of 8% reported or 10% on a constant currency basis [12][13] - Underlying earnings per share rose by 23%, with a proposed dividend per share of $0.27, reflecting a 29% year-on-year increase [13][14] - The CET1 ratio stood at 13.8%, at the higher end of the 13% to 14% range, with a RoTE of 6.4%, up 1.3 percentage points from the previous year [14][15] Business Line Data and Key Metrics Changes - Corporate and Institutional Banking reported a 5% income growth, with a RoTE of 8.5%, while Retail Banking saw a 3% increase in income and maintained a RoTE of 12.6% [23][24] - Wealth Management experienced a 12% increase in income, with assets under management growing by 14% [25] - Financial Markets had a strong year, with a reported income increase of 12% [15][20] Market Data and Key Metrics Changes - Greater China and North Asia saw flat top-line growth, with a 3% increase in profits despite macro challenges [26] - The ASEAN & Southern Asia region contributed $1 billion in operating profit, with a 6% growth in income [27] - Africa & Middle East reported a 2% decrease in income on a reported basis but a 4% increase on a constant currency basis [28] Company Strategy and Development Direction - The company is focused on digitization, having completed the rollout of digital banks across Africa and is expanding in Hong Kong [4][5] - Sustainability is a key focus, with a commitment to help clients transition to a low-carbon economy, viewing it as a significant profit opportunity [5][9] - The company aims to double its dividend by 2021 and is committed to maintaining a strong capital base [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the impact of the coronavirus on income growth in 2020, expecting it to be slower than previously anticipated [6][44] - The company remains optimistic about its strategic positioning and underlying earnings momentum despite external challenges [78][71] - Management emphasized the importance of reskilling and developing the workforce to drive future growth [7][63] Other Important Information - The company completed a share buyback program and announced a second tranche to continue managing its capital aggressively [4][14] - The focus on climate change financing is highlighted, with a commitment of $35 billion towards climate-related investments [61][62] Q&A Session Summary Question: Impact of the virus outbreak on P&L - Management acknowledged uncertainty regarding the P&L impact from the virus, emphasizing a strong capital and liquidity position to weather the storm [76][78] Question: Revenue guidance for 2020 - Management indicated that achieving the 5% to 7% revenue growth target for 2020 would be challenging, citing strong underlying business momentum and benefits from legal entity restructuring [80] Question: Asset quality and RWAs - Management noted that the increase in CG 12 accounts was driven by sovereign downgrades, and overall credit quality remains stable despite monitoring for potential impacts from the coronavirus [82][84]
STANCHART(SCBFY) - 2019 Q4 - Earnings Call Transcript