Jeremy Hugh's questions to HSBC Holdings PLC (HSBC) leadership • Q1 2024
Question
Jeremy Hugh asked about the Q1 deposit outflow in Hong Kong, questioning if it represented a strategic trade-off between deposit growth and cost. He also requested details on the structural hedge, including its reinvestment benefit and run rate.
Answer
Georges Elhedery, Group CFO, clarified that the deposit movement was largely seasonal and reflected a successful strategic shift of deposits into wealth products, evidenced by $19 billion of net new invested assets in Asia. Regarding the structural hedge, he noted its size increased to $487 billion and that the net effect of new hedging and reinvestments will be a tailwind to 2024 banking NII, which is factored into guidance.