Investor Presentaiton
Appendix
Update on guidance versus Feb-20 update
Adjusted costs
Feb-20 guidance
<$31bn in FY22
$6bn FY19-22
(phasing: 40%/>50%/<10% in 2020-22)
CTA
Costs
$4.5bn
Cost saves
(cumulative phasing: c.$1bn / c. $3bn / c.$4.5bn in 2020-22)
Investments
Disposal losses
Increase from FY19 base
New guidance
<$31bn in FY22 on Dec 2020 average FX rates*
<$30bn using average FY20 FX rates
$7bn FY19-22
(phasing: 25%/50%/25% in 2020-22)
$5-5.5bn FY19-22
(cumulative phasing: c. $1bn / c. $3bn / c. $5-5.5bn in 2020-22)
c.7-10% CAGR in investments
FY19-22
Strategy
Results
As at FY20
$31.5bn
$1.8bn
$1.0bn
n.a.
$1.2bn
$1.2bn
$0.3bn
(phasing: c.40% / c.40% / c.20% in 2020-22)
(phasing: 25% c.50% / c.25% in 2020-22)
RWAs
CET1
Dividends/buybacks
>$100bn gross RWA reduction FY19-22
CET1 ratio >14%;
manage in 14-15% range over the medium-term
Sustain the dividend
($0.51 annually)
>$100bn gross RWA reduction FY19-22
CET1 ratio ≥14%;
manage in 14-14.5% range medium-term
manage range down further long-term
$52bn
15.9%
Transition towards a payout ratio of
40-55% from 2022 onwards³
$0.15
ROTE
10-12% in FY22
≥10% over the medium-term
(defined as 3-4 years)
*Note: Impact of the weakening USD at end-2020. Target of <$30bn is based on average FX in FY20 (consistent with the results presented); using the average December 2020 FX rates, the target would be retranslated to <$31bn. Using average
December 2020 FX rates, 2020 adjusted revenue would increase by c.$1.5bn)
3.1%
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