Standard Chartered PLC at Bank of America Financials CEO Conference Transcript

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

Question: Perlie Mong - Bank of America - Analyst : Diego. Thank you so much for joining us. Can I just start with a question on the NII, given that to the Fed has just cut rates for the first time last week. So on NII development, how do you see the current rate backdrop impacting loan growth, deposit pass-throughs, and how are you progressing relative to your '24 guidance?

Question: Perlie Mong - Bank of America - Analyst : Yes, that's very clear. And I guess part of the discussion around NII will always have to come to the structural hedge, which has substantially reduced your interest rate sensitivity and will continue to do so. So could you talk us through what has changed in your approach to interest rate management? Is there more to do? And what are the limitations, if any?

Question: Perlie Mong - Bank of America - Analyst : Very clear. One more question on what happens in a falling rate environment. I guess that's related to credit. So credit quality is held up incredibly well in this cycle, and that's perhaps the price of a lot of people. But their macro environment remains challenging in some of your markets, are there any pockets of risk that you're watching? And how do you see that changing now that rates are coming down?

Question: Perlie Mong - Bank of America - Analyst : Great. Thank you very much. That's very clear. Should we look a little further into the medium term. So in February, you talked about strategic plans to increase royalty from 10% to 12% by 2026. So there are a number of moving parts to that strategy across the P&L and the balance sheet. Can you start with recapping some of the main elements for us and talk about the initial progress that you made so far?

Question: Perlie Mong - Bank of America - Analyst : That is very clear. And my questions from here are basically going into each of the areas that you've just talked about. So should we start with wealth management. So recent performance has been very strong. As you said, how much do you think that reflects the market conditions because obviously there's the context of Hong Kong and China rate differential and with US rates and by the default Hong Kong rates coming down. How do you see that coming along in developing from here?

Question: Perlie Mong - Bank of America - Analyst : I'm staying on this topic. Obviously, the China macroenvironment has been quite challenged and there's a lot of talk about with house prices leading to the middle class being feeling quite squeezed, et cetera. And I think if you look at data like luxury sales in China, that has not been super encouraging either. So how do you think about that context? And do you think that is going to become a drag to your growth ambitions in your wealth business?

Question: Perlie Mong - Bank of America - Analyst : Okay, that's very clear. Should we move onto the CIB? So what are the main growth areas within the CIB space? And like you said you've managed to grow revenue while keeping capital and cost relatively stable. So how are you achieving that in terms of exactly what you're doing on the ground?

Question: Perlie Mong - Bank of America - Analyst : I'm thinking of the episodic revenues, what's that like on the front-end?

Question: Perlie Mong - Bank of America - Analyst : Of course, and I'll move you back to the third pillar of your strategy, which is cost the $1.5 billion cost savings from the Fit-for-Growth program. So how far are you in that? Because I know last time not maybe a lot in the last time a while ago, you're talking about identifying 200 initiative. So how is that shaping up? And I guess another related question is that given that these are all quite grassroot in nature. Why would that stop in 2026? Why would you not spend another $1.5 billion in and identify another 200 initiatives to work on?

Question: Perlie Mong - Bank of America - Analyst : Okay. That's very clear. And then finally, turning to capital. Like you've said you've already done [$2.7 billion] of your greater than [$5 billion] capital distribution over three years, and you've done that in just six months. So should we expect an increase in that target? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 24, 2024 / 9:15AM, STAN.L - Standard Chartered PLC at Bank of America Financials CEO Conference

Question: Perlie Mong - Bank of America - Analyst : Well, we look forward to that, I think this is a good time to open the floor up for questions. I mean, obviously, I have more, but I'll let them the audience have a chance asking questions --

Question: Perlie Mong - Bank of America - Analyst : so if you have a question, please raise your hand.

Question: Perlie Mong - Bank of America - Analyst : Please. Unidentified Participant 1 (inaudible) just mathematically, you talked about complexity. I mean, if you go into one of de-dollarization, I mean different currencies taking more of a challenge. How do you think some charters placed for that and obviously have been recently increasing India overtake China and MSCI again, I know you touched upon it, but do you feel that balance of power shifting out of that support or not support (inaudible) dispositions.

Question: Perlie Mong - Bank of America - Analyst : Any more questions from the floor? Well, I think you're subject to have it will meet us. So Standard Chartered has made a number of disposals and exits in the last few years. So is that footprint optimization done or is there more to do?

Question: Perlie Mong - Bank of America - Analyst : That's very clear. Any more questions from the floor? Of course. Unidentified Participant 2 I want to talk to you about this crazy situation with your perpetual bond that you're going to court about. I don't want to talk to a spend. Why do you love that security so much that you're going to these extraordinary lengths to keep it alive and everybody else has very debt.

Question: Perlie Mong - Bank of America - Analyst : And I think you have another question? Unidentified Participant 2 I'm probably not going to comment on this one either, (multiple speakers) probably prior to your time as well. You've seen interest in the papers from Middle Eastern banks wanting to sort of take over Standard Chartered was first goes the question here is it hasn't been a distraction internally? Or has it been a bit more of internal ambition to come out with your growth targets? What impact has it had to lay out the growth story of Standard Chartered, if any. So just internal and external impacts from what you can comment on. Thanks.

Question: Perlie Mong - Bank of America - Analyst : Great. And to end the conversation on a good note, can I ask you a final question on your thinking and your progress on the ventures business. What's happening with mox and trust? That's obviously been something that you've invested a lot in and have very good initial progress, though. Can you comment on the progress there?

Question: Perlie Mong - Bank of America - Analyst : Thank you very much for your time. It's been a pleasure to host you.