Sign in

    Aman Rakkar • Barclays

    Aman Rakkar's questions to HSBC Holdings PLC (HSBC) leadership

    Aman Rakkar's questions to HSBC Holdings PLC (HSBC) leadership • Q2 2025

    Question

    Aman Rakkar of Barclays questioned if the ~$42 billion NII guidance was conservative, as it implies an H2 slowdown, and asked about levers to offset HIBOR pressure. He also asked about the intensity of the cost-saving program and the outlook for flat costs in 2026.

    Answer

    Group CEO Georges Elhedery emphasized the commitment to cost discipline and reinvesting savings from non-strategic exits into growth areas. Group CFO Pam Kaur acknowledged the NII guidance could be seen as conservative but reflects uncertainty around HIBOR normalization and dollar movements. She highlighted the structural hedge and deposit growth as offsetting levers, but did not comment on 2026 costs.

    Ask Fintool Equity Research AI

    Aman Rakkar's questions to HSBC Holdings PLC (HSBC) leadership • Q2 2025

    Question

    Aman Rakkar of Barclays Investment Bank questioned the circa $42 billion NII guidance, noting it implies a slowdown in H2, and asked about levers to offset HIBOR declines. He also inquired about the intensity of the cost-saving push, the potential for further savings, and whether to model flattish costs for 2026.

    Answer

    Group CFO Pam Kaur acknowledged the NII guidance may seem conservative but accounts for HIBOR uncertainty, offset by a weaker USD and structural hedge reinvestments. Group CEO Georges Elhedery highlighted the $1.5 billion in simplification savings and another $1.5 billion from non-strategic exits, but declined to give 2026 cost guidance. He emphasized that the $83 billion growth in deposits is a key lever for future NII.

    Ask Fintool Equity Research AI

    Aman Rakkar's questions to HSBC Holdings PLC (HSBC) leadership • Q1 2025

    Question

    Aman Rakkar asked about shifts in customer behavior, such as derisking or deleveraging, particularly among corporate clients affected by trade tariffs. He also questioned the commitment to capital returns amid uncertainty and whether the bank might delay the redeployment of cost savings.

    Answer

    Georges Elhedery, an executive, noted that corporate clients are in a 'wait-and-see' mode with some investments on hold, but there is no panic, while personal banking and wealth activity remains strong. Manveen Kaur, an executive, affirmed the commitment to capital returns, with buybacks decided quarterly based on capital generation. She stated the cost redeployment timeline is unchanged, though minor delays are possible.

    Ask Fintool Equity Research AI

    Aman Rakkar's questions to NatWest Group PLC (NWG) leadership

    Aman Rakkar's questions to NatWest Group PLC (NWG) leadership • Q1 2025

    Question

    Aman Rakkar of Barclays questioned the sustainability of the impressive deposit margin expansion given various factors like the structural hedge and rate cuts. He also commented that the company's guidance appears conservative given the strong Q1 results.

    Answer

    Executive Paul Thwaite acknowledged the strong start to the year but cited wider global uncertainty as the reason for maintaining current guidance. He confirmed the bank has executed well on deposit pass-through rates. CFO Katie Murray added that the deposit margin has benefited from the structural hedge, and future performance will depend on the level of pass-through on expected rate cuts and competitive behavior.

    Ask Fintool Equity Research AI

    Aman Rakkar's questions to NatWest Group PLC (NWG) leadership • Q1 2024

    Question

    Aman Rakkar of Barclays inquired about the volatility in the Corporate Center, specifically a 4 basis point funding cost benefit to Net Interest Margin (NIM). He asked if this benefit was sustainable and whether the reported 205 bps NIM is a reliable baseline for future quarters, particularly in a scenario with no rate cuts.

    Answer

    CFO Katie Murray explained that while the Corporate Center can have volatility between NII and non-interest income, its total income impact is roughly zero over time. She advised analysts to model the center as a zero-sum item and focus on the broadly stable NIM across the three main businesses, which she noted is a positive outcome. She reiterated that the bank provides total income guidance, not specific NIM guidance.

    Ask Fintool Equity Research AI