Gurpreet Singh Sahi's questions to HSBC Holdings PLC (HSBC) leadership • Q1 2025
Question
Gurpreet Singh Sahi requested a breakdown of the factors that kept Q-on-Q banking NII flat despite interest rate headwinds. He also asked about the assumed growth in average interest-earning assets within the ~$42 billion banking NII guidance for 2025.
Answer
Manveen Kaur (executive) explained that headwinds from fewer days and lower rates were offset by tailwinds from reinvesting maturing hedge assets at higher yields, changes in asset mix, and the delayed benefit of deposit pass-throughs, particularly in the U.K. She reiterated that the ~$42 billion NII guidance is the current best estimate based on various factors, including deposit flows, but did not provide a specific asset growth figure.