HSBC's Mackay Says Lower U.S. Taxes Beneficial Long-Term

The transcript discusses HSBC's financial performance, leadership changes, and strategic decisions. It covers the fourth quarter's weaker performance due to impairments and provisions, the decision to delay buybacks in favor of issuing alternative tier one instruments, and the impact of US tax reforms. The discussion also highlights HSBC's growth strategy, particularly its focus on Asia, and the positive effects of rising interest rates on its business.

What was a significant factor affecting HSBC's fourth quarter performance?

• Increased global banking market revenues

• Higher loan impairment charges

• Successful corporate buybacks

• Decreased provisions for corporate exposures

Why did HSBC decide against conducting a buyback at this time?

• Lack of sufficient capital

• Regulatory restrictions on buybacks and capital instruments

• Desire to increase tier one capital ratio

• Focus on reducing corporate exposures

How did the US tax changes impact HSBC's financials?

• Higher interest rates

• Impairment of deferred tax assets

• Increased corporate tax rate

• Reduction in global banking revenues

What is one expected benefit for HSBC from the US tax rate reduction?

• Higher loan impairment charges

• Decreased interest rates

• Increased corporate tax payments

• Improved future profitability

What is a key focus of HSBC's strategy in Asia?

• Investing in high-growth Asian markets

• Pivoting to European markets

• Reducing investments in Hong Kong

• Decreasing presence in the NAFTA region

How does HSBC view the current market environment in the US and Europe?

• Stable with no significant changes

• Declining with high risks

• Encouraging with strong presence

• Challenging with limited growth opportunities

What is the expected impact of rising interest rates on HSBC's business?

• Negative impact on earnings

• No significant effect

• Decrease in liquidity surplus

• Positive tailwinds for earnings