The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Thomas Andrew John Rayner - Numis Securities Limited, Research Division - Analyst
: Good morning Bill and Andy, can I have a couple of questions, please? They're both related to sustainability of revenue growth, I guess. The first is
on the margin outlook. No change in your guidance versus where you were at Q1, but we have seen since then a further increase in market implied
rates in both the U.S. and for Hong Kong. So I'm just wondering, does that suggest you are now building in greater deposit migration, perhaps a
further increase in betas into your thinking about margin? And if so, how far from what you would view as I say, a normal deposit mix and normal
beta situation for the rate environment today? And how close to that normal do you think we are?
And the second question was on FM revenue. I don't know if you want that now or to wait.
Question: Thomas Andrew John Rayner - Numis Securities Limited, Research Division - Analyst
: Okay. And so you think where you are today on both the mix and the beta is pretty much where you would be for today's interest rate environment
because clearly it's changed significantly in the last 12 months, but you're happy you're not going to see a further shift, material shift from where
we are.
Question: Thomas Andrew John Rayner - Numis Securities Limited, Research Division - Analyst
: Okay, thanks. The second question was on the Financial Markets revenue. I mean I'd just like to explore the split down between the Episodic and
the Flow revenue. So I'm sure that what you mean by Episodic. I mean this is revenue, which is much more directly linked to market conditions and
volatility rather than customer flow. I mean that's the way I'm interpreting it. And I just wonder if you could put that specifically against the macro
trading line because when you look at the macro trading in the first half of this year at over $1.6 billion, that is 60% higher than it was in first half
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JULY 28, 2023 / 7:00AM, STAN.L - Half Year 2023 Standard Chartered PLC Earnings Call
of 2019, a pre-pandemic type of level. And that, in terms of sustainability, that would possibly be the biggest question mark is can you continue
to deliver that level of Macro Trading revenue or even grow from there. That's the the point, please.
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