Full Year 2020 Standard Chartered PLC Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Thomas Andrew John Rayner - Numis Securities Limited, Research Division - Analyst : Yes. 2 questions [from me], please. Firstly, on the sort of shape of revenue as we go through 2021. You're indicating obviously flattish on a constant currency basis for the full year but down, yes, in the first half and recovering in the second half. I wonder if you could give us an idea on what the annualized pace of revenue growth you're expecting by the end of 2021, please. My second question is on the RoTE guidance of at least 7% by 2023. I mean obviously you will have done some fairly detailed modeling of alternative outcomes here. I wonder if you could give us an indication on, at the sort of 7%, the bottom end of the RoTE range, if you like, where you're pitching revenue within the 5% to 7% impairments within the 35 to 40 and where you're sort of modeling the equity Tier 1 ratio to be within your 13% to 14% range. So can we just get a bit of an idea about sort of what is built into that 7% assumption?

Question: Thomas Andrew John Rayner - Numis Securities Limited, Research Division - Analyst : Okay. Just a very final, quick follow-up, if I may. The 5% to 7% is -- I know it is a CAGR, but I mean I think it -- that does imply that your modeling for '22 will be a minimum of 5%. It's not like it -- you might be expecting much stronger revenue further out to get you there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 25, 2021 / 8:00AM, STAN.L - Full Year 2020 Standard Chartered PLC Earnings Call

Question: Edward Hugo Anson Firth - Keefe, Bruyette & Woods Limited, Research Division - Analyst : Can I just bring you back to a sort of slightly broader question not so much this year but more out to sort of 2023 and beyond? Because when I look at your key dynamics at the moment, I mean, your capital ratios are towards the low end of peers. Your growth prospects, you're signaling at really high end of peers, probably off the top end at the high end of peers. And yet your profitability is at the low end. And yes, we're trying to square all that at the same time as talking about buybacks. And I really don't understand why this obsession with buying back shares when you -- if you really believe you can deliver 5% to 7% growth -- and I accept we can play around with the risk-weighted assets and stuff, but if we are coming out of a pandemic and there's massive growth opportunities and you're in -- right in the center of it, why would you risk missing that in order to buy back 250 million of shares or whatever?

Question: Edward Hugo Anson Firth - Keefe, Bruyette & Woods Limited, Research Division - Analyst : It just seems to me that, if you're going to deliver 5% to 7% growth in a sustainable manner, it's absolutely imperative for you. It's not like an option to get to 10%. If you can't, then you're not going to be able to generate enough capital to support it.