HSBC Holdings, plc. (HSBC) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to the Analyst and Investor presentation for HSBC Holdings PLC First Quarter 2026 Earnings. This webinar is being recorded. I will now hand over to Pam Kerr, Group Chief Financial Officer. Welcome, everyone. Thank you for joining. We have had another quarter of positive performance, which reflects further progress towards creating a simple, More agile, growing HSBC. Annualized return on tangible equity, excluding notable items, was 18.7%. We are confident in achieving the targets we set out to you at the full year. We are updating two pieces of guidance today. Banking NII to around 46 billion dollars. and our expected ECL charge to around 45 basis points. I'll talk to the drivers of both shortly. In the quarter, we continued to make disciplined progress in simplifying the group to unlock HSBC's growth potential. We actioned a further $0.2 billion of simplification saves and remain well on course to deliver the $1.5 billion target. We completed the privatization of Hang Seng Bank, the sale of UK Life Insurance, Sri Lanka Retail Banking, and South Africa. And as you will have seen, we have agreed the sale of our retail banking business in Indonesia. we expect to realize an up to $0.4 billion gain on completion anticipated in the first half of 2027. Our CIB business in Indonesia is unaffected. On outlook, the economic landscape remains complex and uncertainty will persist. Our thoughts are with all those affected by current events in the Middle East. We are fully engaged in supporting our colleagues, customers and partners across the region. We are well positioned to work with our customers and manage the uncertainties in the global environment from a position of financial strength. Let's turn first to the income statement, where I will focus on year-on-year com...