HSBC (HSBA) Barclays 24th Annual Global Financial Services Conference summary

Leadership transition and strategic priorities

• CFO announced plans to retire after 14 years, emphasizing a strong financial and strategic position and a focus on orderly succession and continued advisory role.

• Ongoing commitment to cost discipline, simplification, and investment prioritization to drive value.

• No immediate plans for retirement; open to new leadership opportunities.

Growth focus and capital allocation

• All four business segments are growing, with particular emphasis on Hong Kong and wealth management, and ongoing multi-year investments in data, AI, SME, and transaction banking.

• Capital allocation prioritizes customer support within risk appetite and return thresholds.

• Revenue growth has outpaced medium-term targets, with 6% in H1 and a 5% annual target by 2028, though future growth rates may moderate due to a higher base and business exits.

• 15 business exits since 2025 have reduced costs by $1.1 billion and revenues by up to $2 billion, with most impact realized by end of next year.

Cost management and operating leverage

• Simplification Saves program target increased to $2 billion, with cost-to-income ratio at historic lows.

• Future cost base will reflect inflation, redeployment of savings, and potential for further investment if revenue outperforms.

• Aim to keep cost growth within a 3%-4% range while maintaining investment rigor.