Katherine Lai's questions to HSBC Holdings PLC (HSBC) leadership • Q1 2024
Question
Katherine Lai asked for the reason behind the weakness in Transaction Banking non-interest income, the potential impact of relaxed LTV ratios on Hong Kong mortgage growth, and how the bank will meet its 5% cost growth target given the 8% rise in Q1.
Answer
Georges Elhedery, Group CFO, explained the transaction banking weakness was due to a tough comparison with a record Q1 2023 for foreign exchange, with current levels normalized. He also affirmed confidence in the 5% cost target, attributing the Q1 increase to timing of pay accruals, acquisition base effects, and one-off levies. Noel Quinn, Group CEO, noted that while Hong Kong's property market changes are positive, it's too early to call a trend.