HSBC Holdings PLC (HSBC) Q2 2023 Earnings Call Transcript

HSBC Holdings PLC (NYSE:HSBC) Q2 2023 Earnings Conference Call August 1, 2023 2:30 AM ET

Company Participants

Richard O'Connor - Global Head, IR

Noel Quinn - Group CEO

Georges Elhedery - Group CFO

Conference Call Participants

Manus Costello - Autonomous

Aman Rakkar - Barclays Bank

Raul Sinha - JPMorgan Chase & Co.

Nicholas Lord - Morgan Stanley

Perlie Mong - KBW

Guy Stebbings - BNP Paribas Exane

Tom Rayner - Numis Securities

Katherine Lei - JPMorgan Chase & Co.

Joseph Dickerson - Jefferies

Andrew Coombs - Citigroup

Operator

Good morning, ladies and gentlemen, and welcome to the Investor and Analyst Conference Call for HSBC Holdings plc's Interim Results for 2023. For your information, this conference is being recorded. At this time, I will hand the call over to your host, Mr. Noel Quinn, Group Chief Executive.

Richard O'Connor

Good afternoon to those joining us here in Hong Kong, and good morning to those in London elsewhere. Noel and Georges will present the strategy and the results, and we will allow plenty of time for questions from the telephone lines and the live audience here in Hong Kong. With that, over to Noel, who will host the conference.

Noel Quinn

Thank you, Richard, and good afternoon to everyone in the room here in Hong Kong. Thank you for joining us, and great to see you again. And good morning to everyone watching from London and elsewhere. Before Georges takes you through the second quarter numbers, I'll start with a summary of the first half performance and progress.

First, I show this slide every quarter. It's critical in that it summarizes our strategy, and our strategy remains unchanged. It is summarized by the 4 pillars at the bottom of the slide. Let me take you through the latest outcomes of that strategy. We had a good first 6 months. I'm pleased with the broad-based profit and revenue generated by our global businesses and geographies. I'm also pleased with our strong capital generation and returns. We delivered an annualized return on tangible equity of 22.4%, including the 2 material notable items reported in the first quarter or 18.5% if you exclude those notable items. And we've announced a second interim dividend of $0.10 per share and a second share buyback of up to $2 billion.

Today, we're also upgrading our guidance. Now we expect to achieve a return on tangible equity in the mid-teens for 2023 and 2024. Prior to 2023, we were very focused on transforming the business. Now while still continuing to improve operational efficiency, we are very focused on driving growth, diversifying revenue and creating incremental value.