Investor Presentaiton
Opening up a world of opportunity
Our Strategy
Asia
Wealth
Digital Business
Services
Financials
Rebuilding equity returns above the cost of capital
Drivers to achieve ROTE target
1
Expect normalisation of ECL charge from $8.8bn
(81bps) in FY20 to at or below the lower end of 30-
40bps normalised range by 2022
Indicative reported ROTE walk by driver
≥10%
Revenue growth
2
3
NII growth driven by mid-single digit volume growth, and a
better mix of higher returning lending relationships; with
no base rate changes assumed before 2024
Incremental Non-NII growth driven by Wealth Management
and Transaction Banking; Non-NII expected to grow mid
single-digit CAGR in the medium-term
Increased commitment on costs, with a $1bn increased cost
4 reduction target and plan to keep costs stable from 2022, while
increasing the proportion of investment and technology spend
LO
5
Active capital management to allocate more capital
towards Asia and WPB, reduce levels of stress, and reduce
"trapped capital" in subsidiaries (e.g. US)
3.1%
Cost efficiency
Capital actions
ECL
Bank levy
2020
ECL normalisation
& lower bank levy
Management
actions
Medium-term 20
Interest
rate rise*
*Year 1 impact of 100bps increase globally. In year 1 the impact is +$5.3bn, in year 2 +$6.5bn, in year 3 +$7.1bn, in year 4 +$7.4bn. For further detail please refer to the NII sensitivity on p69
Bars in the chart are illustrative
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