Q3 2024 Standard Chartered PLC Earnings Call
Good morning, and good afternoon, everyone today and picking our third quarter 2024 results call from Saudi Arabia attending the future investment initiatives and I'm joined by Diego from the London Office.
Yeah.
We delivered a strong performance in the third quarter with income up 12% and profit before tax up 41% driven by a record quarter in wealth solutions and double digit growth in global markets. As a result of the strong performance, we're upgrading our guidance for income growth this year towards 10%.
These results demonstrate that our strategy of offering cross border corporate and investment banking capabilities and leading wealth management for Epsilon clients is working.
We're not taking action to double down on that strategy concentrating capital and investment in our areas of greatest differentiation and competitive strengths to deliver sustainably higher returns.
In CIB, we will further sharpen the focus on serving the complex needs of our largest global clients and rely on our unique cross border capabilities.
In wealth of retail banking, we're doubling our investment plans and our fast growing and high returning wealth management business for affluent clients.
This incremental investment will be funded by reshaping our mass retail business to focus on building our strong pipeline for future excellent in international banking clients.
These actions will further simplify our business help us to generate high quality growth and improve our return on tangible equity over the medium term.
We're not targeting an R O T E approaching 13% in 2026.
We're also increasing our shareholder distribution target from at least $5 billion to at least $8 billion over the three years to 2026.
Speaker Change: Diego will now take you through our Q3 performance and I will then provide more detail on our strategy for CIB and W. RV will then both come back for the usual Q&A session. So over to you Jacob.
Diego: Thanks, Brandon Good morning, and good afternoon to everyone on the call in my remarks, I will be comparing year on year on an underlying basis and speaking to constant currency unless stated otherwise.
Jacob: The Gulf delivered topline growth of 12% with operating income of $4 $9 billion is the positive momentum we saw in the first half continued into the third quarter net.
Jacob: Net interest income was $2 $6 billion up 9%.
Jacob: Non net interest income was up 15% driven by a record quarter in our wealth solutions and a strong performance in global markets.
Jacob: Operating expenses were well controlled up only 2%.
Jacob: Credit impairment continues to trend well with a net release in CIB this quarter.
Jacob: That impairment included further charges related to the write off of software assets with no impact on capital.
Jacob: Profit before tax was up 41% and <unk> was 10, 8% in the quarter up four percentage points.
Jacob: Taxes were 38% for the first nine months of the year and we continue to expect the full year 2024 underlying effective tax rate to be around this level.
Jacob: It is also worth noting that the statutory tax rate is expected to be a few percentage points higher than the underlying for this year and should trend downwards in future years.
Jacob: Our CET one ratio of 14 points, 2% includes the $4 62 basis points impacted of the $1 $5 billion share buyback announced earlier in July.
Jacob: The tangible net asset value per share is up 65 cents in the quarter and is up 18% year on year in.
Jacob: As usual, we have provided a more detailed breakdown of the peanuts walk independence's.
Jacob: Turning now to the virus components of income.
Jacob: NII of $2 $6 billion was up 1% quarter on quarter from mix improvement and extra day count.
Jacob: We continue to expect NII of 10 210 in a quarter billion dollars for this year.
Jacob: Looking ahead, the current interest rate environment and outlook, we'll make it more challenging to grow NII in 2025.
Jacob: There are a number of factors at play here, most notably how the rate cycle unfolds and the impact this will have on liability pricing and asset growth.
Jacob: There is also an additional headwind of around 1% to NII in 2025 from the further actions we are taking in W. Arby, which bill will talk about in more detail later.
Jacob: Now turning to non NII, which as a reminder is around the half of our total income.
Jacob: When solutions had a record quarter with income up 32% driven by very strong growth in investment products up 40% and bank assurance income up 16%.
Jacob: Global markets also delivered double digit growth in global banking was up 7%.
Jacob: Given the combination of a stronger than expected the revenue out turning 2024, and NII uncertainty. We anticipate overall income growth in 2025 will be slightly below our medium term range of 5% to 7%.
Jacob: We remain confident that over the course of our 23 to 26 plan income will grow at a 5% to 7% CAGR.
Jacob: Expenses were up 2% year on year and down 3% versus Q2.
Jacob: We expect expenses in Q4 to be up quarter on quarter due to phasing in Q3 and following our usual investment spend profile, which is weighted towards the end of the year.
Jacob: We had over six months into our three year feed for girls program, and we are progressing well as per.
Previously communicated the majority of the $1 5 billion of savings are expected to ramp up from 2025 with a tail of efficiency effects continuing after 2026.
Jacob: And we expect to incur around 60% of the $1 $5 billion cost to achieve that by the end of 2025.
Jacob: We remain committed to delivering positive jaws, each year and the absolute cost cap of $12 billion in 2026.
Jacob: Looking now at credit impairment, which was down $116 million year on year.
Jacob: Credit impairment in CIB continues to be benign with a $10 million net release in the quarter. This benefited from more recoveries, partially offset by a $34 million overlay for clients, who have exposure to Hong Kong commercial real estate.
Jacob: The $177 million charging WR beef was up $31 million quarter on quarter, including a $21 million overlay in Korea relating to e-commerce platforms.
Jacob: Credit impairment reamer.
Jacob: It remained broadly stable and is in line with our recent run rate.
Jacob: Other impairment included a $68 million charge from software assets write offs.
Jacob: This is the latest installment of a proactive review of softer accounting, which you would have seen come through over the last couple of quarters. It is due to be completed by year end with another charge in Q4, which is likely to be higher than Q3.
Jacob: As a reminder, this has no impact on capital.
Jacob: Building on the underlying growth of loans and advances to customers in the first half of the year, we saw green shoots of growth in freight in Q3.
Jacob: However, total underlying customer loans and advances were down slightly in the quarter as we continue to be disciplined in originating WSB mortgages.
Jacob: In CIB strong origination volumes are driving the growth in global banking income, even though they are not always reflected in loan growth due to our originate to distribute model.
Jacob: Underlying customer deposits were up $3 billion in the quarter, driven by an increasing time deposits in W or beam related to affluent clients.
Jacob: Turning now to capital.
Jacob: Risk weighted assets were up $7 billion in the third quarter due to two main drivers first $3 billion of market risk risk weighted assets in CIB deployed to help clients capture market opportunities.
Jacob: Second a $3 billion increase from FX, which is broadly neutral from a capital ratio perspective.
Jacob: Following the Pra's clarification of the Basel 3.1, whose we now expect the RW a day, one impact will be less than previously thought and close to neutral.
Jacob: We continue to maintain a robust capital position with a CET one ratio of 14, 2% in Q3, including 62 basis points related to the $1 $5 billion share buyback, which is more than 60% completed to date.
Jacob: As a result of our continued strong performance and more certainty on the impact of Basel 3.1, we are upgrading our shareholder distribution target from at least $5 billion to at least $8 billion between 2024 and 2026.
Jacob: However, we will remind you that we still expect to face some headwinds in capital generation in 2025, owing to the cost to achieve for the fit for growth program.
Jacob: Now, let's look at the performance of CIB, which delivered a record third quarter income.
Jacob: As I mentioned earlier global marketing income was up 16% driven by a strong double digit performance in both flow and episodic income.
Jacob: The increase in floor was driven by higher volumes in effects, particularly with financial institution clients, including growth in renminbi related income as well as higher credit trading income and.
Jacob: And the growth in episodic was mainly driven by higher rates income.
Jacob: We are also seeing positive momentum in sentiment across our network with for example, encouraging growth in Africa, hence by Nigeria, and South Africa.
Jacob: Global banking was up 7% driven by favorable market conditions and capital markets and higher origination volumes the pipeline for the rest of the year is healthy and the focus remains on execution.
Jacob: Transaction services income was down 5% due to margin compression from higher pass through rates. However, we continue to see green shoots of asset growth with underlying trade assets up $2 billion in the quarter.
Jacob: We will be hosting a CIB investor seminar in March next year, and we will be providing more details of this event closer to the date.
Jacob: And with our retail banking income was up 11% to $2 billion. The record performance in wealth solutions was supported by continued strong quarterly momentum in new to bank clients with an additional 71000 clients on boarded in Q3, continuing a trend that is now being sustained over seven quarters.
Jacob: There was $10 billion of affluent net new money inflows in the quarter.
Jacob: And $34 billion. So far this year, which is equivalent to our strongest 16% annualized growth of affluent AUM coming from net new money.
Jacob: We are already a leading wealth manager for affluent clients across Asia Africa, and the Middle East and we continue to innovate our leading product offerings for.
Jacob: For example in Singapore, we have recently launched a BCC fund, which is a new fund structure that allows our affluent clients unique exposure to some leading global alternative asset managers. As a reminder, we are hosting an affluent and wealthy investor seminar on the third of December lastly, turning to our ventures business Mark.
Jacob: <unk> now has the largest market share across all digital banks in Hong Kong for customer loans and CASM.
Jacob: In Singapore trough as recently launched an additional cash but carbon to appeal to a broader customer base. We now expect both marks and trust to be profitable in 2026.
Jacob: Reflecting the maturing nature of our portfolio losses for the venture segment are expected to be less than $200 million cumulatively across 25, and 26 with a majority of these losses incurred next year.
Speaker Change: I will now hand back to bill to go through some details of the further actions we are taking to deliver sustainably higher returns.
Bill: Great. Thanks Diego.
As I mentioned in my opening comments, we've been successfully executing our strategy of offering cross border corporate and investment banking capabilities, and leading wealth management for affluent clients delivering around 100 basis points of growth in our OTT annually since 2015.
Bill: We continue to manage our portfolio of products and markets dynamically taking regular actions across our business to reallocate capital to the highest returning areas.
Bill: A couple of recent examples include our investments in Saudi Arabia, and Egypt, where we committed total capital of $175 million.
Bill: And an example of a divestment has been the sale of our personal loan book in India, which we made a couple of weeks ago.
Bill: Today, we're announcing a set of further actions to deliver sustainably higher returns simplify our business helped us generate high quality growth and improve our return on tangible equity over the medium term.
Bill: In WB, we're doubling down on our highly successful distinctive and profitable wealth management offering to affluent clients.
Bill: Over the next five years, we'll invest around $1 $5 billion and relationship managers and investment advisors as well as enhanced international and digital capabilities. This is double our previous investment plan.
Bill: We will grow the number of relationship managers by around 50% over the medium term and we also target to increase the annual flow of up tiered clients.
Bill: This incremental investment will be funded by reshaping our mass retail business and sharpening its focus on building a strong pipeline of future effluent and international banking clients.
Bill: The impact of this reshaping will vary across our network.
Bill: We'll continue to review single product lending relationships and portfolios in order to prioritize higher growth and higher returning segments.
Bill: And we are exploring the opportunity to sell all or part of a small number of businesses, where the strategic rationale is not sufficiently compelling.
Bill: These actions are expected to take effect over the next 18 to 24 months.
Bill: We're confident that our increased investment and focus will help us continue to outperform the market in terms of asset gathering and income growth, enabling us to deliver double digit percentage growth in wealth solutions income.
Bill: We therefore expect income from our affluent segment to increase from two thirds CW RB to around three quarters in the medium term now turning to CIB. We will further sharpen our focus on serving the cross border needs of our large global corporate and financial institution clients.
Bill: We will invest in relationship managers and the network corridors, showing the highest growth potential such as Asia to the middle East.
Bill: This will deepen our wallet share with these clients and deliver higher returns.
Bill: We're going to exit around 3000, or a quarter of our total CIB clients, whose needs do not play directly to our strengths.
Bill: And we will continue to redeploy our W. As into a higher returning businesses as part of our ongoing optimization activities.
Bill: We aim to grow income from financial institutions to around 60% of CIB over the medium term and to increase the percentage of cross border network income to around 70%.
Bill: These actions will enable us to improve both our returns and potential for growth in CIB by delivering our unique capabilities of our network can offer to clients who rely on them. The most.
Bill: Looking ahead, we're <unk>.
Bill: Substantially raising our shareholder distributions target from at least $5 billion to at least $8 billion between 2024, and 2026 and that we're upgrading our 2026 R. O T guidance from 12% to approaching 13% and to progress thereafter.
Bill: Now to conclude.
Bill: The group delivered a strong performance in the third quarter with income up 12% and profit before tax up 41% the positive momentum from the first half of the year has continued into Q3 and we're upgrading our 2020 for income growth guidance towards 10%. We're taking further action to deliver sustainably higher returns by doubling investment plans in our fab.
Bill: It's growing in high returning wealth management business and further sharpening our focus on serving the needs of our larger global corporate and institutional clients, who rely on our unique cross border capabilities with that I'll hand back to the operator, and Diego and I will be happy to take questions.
Speaker Change: Thank you Deanna participants as a reminder, if you wish to ask a question over the phone. Please press star one one on the telephone keypad and late finance will be announced to withdraw. Your question. Please press star one again missed and Bob will compile the cane that all studies will take a few moments.
Speaker Change: And now we will go and take our first question for today.
Speaker Change: And it comes from the line of Grace Duggan from Barclays. Your line is open. Please ask your question.
Grace Duggan: Hi, Good morning, Thank you very much for taking my questions and if I could ask two please.
Grace Duggan: Firstly on the income growth in 2025, I guess the upgrade at the updated guidance talking about the life of five to seven and maybe could just probe a little bit more on at least on current rate expectation how far below five seven you might be thinking I think consensus has been around about 3% year on year.
Is that kind of in the round me be thank you.
Grace Duggan: And then secondly, another really strong hoelscher them, while highlighting the investment today, which I think you'll be agile be over kind of 18 24 months. So I guess, probably income guidance of growing double digits, how should we be thinking about the shape of that from here.
Grace Duggan: Should we just be expecting that year on year is that phasing of the investment any help with that would be much appreciated. Thank you.
Speaker Change: Great great. Thanks for the question Grace a minute I'm going to send the income guidance question directed to Diego, but before doing that I'll just give a quick comment on the <unk>.
Speaker Change: And Ralph raising we've obviously had we've had good solid growth in wealth now.
Speaker Change: If you look at the be the leading indicators in terms of new clients migrations from our mass segment.
Speaker Change: The Fujian etcetera for for several years, and obviously thats been matched by good income growth over the past couple of years as market sentiment has changed as well.
Speaker Change: What we're looking to do now is to is to ramp up the pace of investment that we've been making absolute both in RMS, but also in digital channels.
Speaker Change: Just to provide an extra catalyst to what has been quite a good story and I think structurally very strong.
Speaker Change: <unk>.
Speaker Change: But there's an element of market dependent as we know that we have.
Speaker Change: Been in a pretty.
Speaker Change: Markets market environment, both in the U S. Certainly, but also more recently in China.
Speaker Change: And.
Speaker Change: We've been in a relatively fixed income environment as well and it's been a great environment Rebecca for US generally so we see those trends continuing but we're not.
Speaker Change: Suggested that somehow insensitive to to market movements.
Speaker Change: If they shifted from here, but structurally we think it's a great growth story into which we're very happy to continue to invest.
Speaker Change: But let me hand over to Diego I'm sure lots more comments on wealth and the phasing and also encumbrance.
Diego: So on wells nothing much more I mean, they minds at the kind of investment plan. We are outlining today is a plan that takes place over five years. So clearly we have a lot of confidence that this is a very structural theme that we are going to be tapping in.
Speaker Change: In terms of the.
Speaker Change: The growth for 2025, so Luca.
Speaker Change: What we are doing is we are reshaping the growth path that we are seeing there going forward that they did not.
Speaker Change: Downgrade the endpoint is the same what we're flagging is that we are growing this year at very substantially faster than the 5% to 7% range that we had indicated and we are now indicating towards 10%. So two to three points above the top end of the.
Speaker Change: Of the 5% to 7% debt.
Speaker Change: That is the main impact is the jumping off point.
Speaker Change: Add to that I would add and I am sure that we will have the opportunity to go further on pocket during the conversation today.
Speaker Change: There's some some additional uncertainty with the development on NII, but I'm sure we can tackle a little bit later.
Speaker Change: Okay.
Speaker Change: Great operator can we take the next question. Please yes of course and now we're going to take our next question.
Speaker Change: Okay.
Speaker Change: And the next question comes from the line of Joseph <unk> from Jefferies. Your line is open. Please ask your question.
Joseph: Hi, Good morning, guys. Thank you for taking my questions I just had.
Speaker Change: Two questions.
Joseph <unk>: When you look at the lower returning mass retail businesses and the 3000 reduction in CIB.
Clients, I guess either separately or together.
Joseph <unk>: How much if any.
Joseph <unk>: Is there a an <unk> drag.
Joseph <unk>: For the needs of that can be quantified.
Joseph <unk>: That would be very helpful and then.
Joseph <unk>: Secondly, I note that you are new to bank customers that accelerated in the third quarter.
Joseph <unk>: Is that something you at some as you've seen over the month of October has continued to see an acceleration.
Joseph <unk>: In new to bank customers into year end. Thank you.
Speaker Change: Again, I'll, just give you a better color upfront and then hand over to Diego.
The exercise, we're going through our slightly financially dilutive, but when we look at the value that we expect to generate through focus and the focus on in the retail side on this really very substantial fundamental pivot to world.
Speaker Change: Several years now.
Speaker Change: We intend to accelerate that.
Speaker Change: Everything is getting more than much more than make up for the disease.
Speaker Change: Very minor.
Speaker Change: Income in our Ot solution in the short term and same thing on the on the CIB side.
Speaker Change: Although I think I'd say on the JV side, the effect will be effective.
Speaker Change: But let me hand over to <unk>.
Speaker Change: To Diego actually maybe just on your second question about <unk>.
Speaker Change: Interbank accelerating.
Speaker Change: And we've seen a good steady flow of of new to bank clients in part because of the dynamics in the market obviously.
Speaker Change: In particular, our big source markets and in Asia, We've had a.
Speaker Change: An accumulation of wealth with a strong desire to diversify both portfolios.
Speaker Change: <unk> also significantly ramped up our own capabilities in international banking, so our ability to take a.
Speaker Change: Customer, that's an existing customer in India, or China, or Indonesia and of them.
Speaker Change: Pick up an account and someplace in Singapore Dubai.
Speaker Change: Goodbye et cetera.
Speaker Change: We've invested quite heavily in that as well so I wouldn't say that we've seen that particular acceleration, but we've seen a steady increases. So as you can see a steady acceleration over the past couple of years as we've as we've made these investments again, let me, let me hand back to Diego for for more color.
Diego: So on the two Joe on the first one.
Speaker Change: I'm, a simple man I'm, just the CFO I'll tell you I'll tell you a simple way that I think about it is that if you think about our increased guidance.
Diego: In terms of royalty that increased that isn't already comes from two things one the mechanical effect of course, all the higher distributions, but secondly, it exactly what bill said that we are focusing on businesses that are inherently higher returns.
Speaker Change: And that is where do you see the effect of the strategic measures the.
Speaker Change: Shifting focus the sharpening of the focus that we are announcing today.
Speaker Change: And on the new to bank and <unk> given you the circular answer I'll give you. The very short term answer if you think about the stimulus that we have been seeing coming from China and the fact that of course next week is going to be an important one because the standing committee of the MPC will be putting the final.
Speaker Change: The final part of the Arsenal, let market, which is the fiscal policy, but you can think about that stimulus led stimulus has started taking effect very much towards the end of Q3 and actually if anything the main results came out.
Speaker Change: Immediately after Golden week, So we've seen a very strong start in wealth management in October that has been moderated to slightly more natural.
Speaker Change: Evidence of growth so adding.
Speaker Change: The very short term effects to the longer term secular effect that Ben just spoke about.
Speaker Change: Great can I just clarify my question on the LOE.
Speaker Change: Mass retail businesses with <unk> reduction in the CIB clients wasn't that it was it.
Speaker Change: So certainly a drag but it was I presume those are lower ROE businesses Ben.
Speaker Change: With the rest of the ones you want to grow and so I was just trying to.
Speaker Change: You can see what the difference might be in the row.
Happy to try to figure it out myself probably.
Speaker Change: Is that the broader point.
Speaker Change: Is that what that is.
Speaker Change: Point be correct.
Speaker Change: So youre right Directionally, it's difficult to quantify it in that way I go I will go back to my comment about us if youre thinking about data in terms of the impact the numbers in the higher R&D guidance, we're giving you if youre thinking about it in terms of how we operate the bank keeps very much in line with what's been said and the freeing up over it.
Speaker Change: Nation ship manager capacity, the ability to focus on the higher returning clients and the <unk>.
Speaker Change: Higher returning client cohort the two ways that we think about it.
Speaker Change: Many thanks.
Speaker Change: Justin to your point or to your direct question.
Speaker Change: These are lower returning client relationships, but still profitable so we're not.
Speaker Change: It is dilutive to earnings.
Speaker Change: Which we were more than offset by reallocating that capital into higher returning things and and.
Speaker Change: Generating value from focus.
Speaker Change: Great. Thanks.
Speaker Change: Thank you Joe.
Speaker Change: We will then take our next question for today.
Speaker Change: And the next question comes from the line of Jason Napier from UBS. Your line is open. Please ask your question.
Jason Napier: Good morning, Thank you for taking my questions too.
Jason Napier: Straightforward ones actually the first is <unk>.
Jason Napier: The increased payout.
Target can I just check is there any necessity to caveat any of those sorts of guys around exit costs from reshaping disposals and and so on.
Jason Napier: And then secondly, Diego thank you.
Jason Napier: More or less and back to the question of unpacking, the sort of position on rigs and I'm going to answer in.
Jason Napier: NII.
Jason Napier: I don't want to let you down.
Speaker Change: Okay do you presented your weighted average hasn't really changed all that much perhaps you could talk about what you've done.
Speaker Change: Sort of hedged dynamics reinvestment yields in the loan growth into next year. Please.
Speaker Change: Absolutely.
Speaker Change: I will definitely pick it up.
Speaker Change: So first of all on the first one very simple on the increased target. It's all worked out in the guidance everything we are providing you includes everything including will ever costly might include whatever benefit to the return on tangible equity as we have discussed before with the <unk>.
Speaker Change: With Joes question on et cetera, So no need to go do anything from our point of view other than what is inside the guidance.
Speaker Change: On the on the NII.
Speaker Change: Let's let to literally unpacking it let's divide for a second.
Let's start from this year.
Speaker Change: So for this year.
Speaker Change: In our $10 billion tend to turn in a quarter billion our range for NII for 2024.
Speaker Change: Combination of the slightly higher rates and also some FX impact lead us to think that the where we are going to end up. The Q4 is going to be closer to the middle of that range. So that will give you the jumping point into 2025.
Speaker Change: In 2025, it's a complex interplay of several factors.
Speaker Change: All of which by the way you have already mentioned yourself Unsurprisingly first of all if the level and the pace of the rate cuts that were going to be facing I mean direction wise, we're clear, but the volatility in terms of interest rates that have been very very substantial both on the downer and recently more on the up the second thing, which is probably the only one that.
Speaker Change: Actually you didn't mention is that while we expect the shape of the pass through rates to be very similar to the way upper there will be some lagging effect on the way down in CIB, how much TBD, but it but we will be experiencing some of that.
Speaker Change: The third is that we had some impact on NII from the reshaping of the activities in mass retail that we have quantified the in the in 1% of the NII in 2025.
Speaker Change: Debt.
Speaker Change: That comes into play in 2025 in all of these things together with the hedges, where you have seen that we have the increase the hedge to around $55 billion of the hedge is going to trend towards $60 million for the end of the year and we continue to believe that we're going to continue to grow it from there all of these things then in therapy.
Speaker Change: When the question of what that benefit with that.
Speaker Change: The credit demand growth, but that is the big that is the big million dollar question or more than the 1 million dollar question.
We do we think we would see credit amount goes absolutely we see thinking it will be a relatively subdued towards compared to the natural rate of credit demand growth, which in our regions in the regional five percentage and we believe it will be more in the single digits.
Speaker Change: We have seen some of it in the first half of the year, we are up $5 billion in terms of loan of underlying customer loans and advances, but this quarter for example, it's been slower.
Speaker Change: And as a consequence, it seeing when that comes into play that will tell us will end up telling us where do we go on the NII net net lots of moving pieces.
Speaker Change: Feels like the right thing to say that it is going to be more challenging, but what I can also flagged to you is that we're going to be continue to be disciplined on our BTR says, we will manage our says as well as we can and as soon as the credit demand will pick up the weather directly through deploying our WAM or through our originate to distribute that.
Speaker Change: Steve It is that we will pick up on it. So it is not impossible that we see growth in NII next year, it's just more challenging.
Speaker Change: How I would frame it.
Speaker Change: Thanks very much thank you.
Speaker Change: Thank you now we are going to take our next question.
Speaker Change: And the next question comes from the line of Robyn <unk> from HSBC. Your line is open please ask a question.
Speaker Change: Good morning, guys.
Speaker Change: Two questions if I may kind of come back to me the issue of kind of wealth management.
Speaker Change: Slightly alluded to this.
Speaker Change: A little bit earlier, but just how youre thinking about the.
Speaker Change: The seasonality of that business running into Q4.
Speaker Change: I mean, we don't really expect to see a step down in kind of a bank assurance.
Speaker Change: The investment of that services, but I'm, just wondering whether or not you.
Speaker Change: Your your perhaps come to the slightly more optimistic about that differently.
Speaker Change: Activity levels in October on the China stimulus.
Speaker Change: And then the second question is around what are their Jaguar hates me asking about the capital return targets, but.
Speaker Change: <unk> also revised up to kind of 8 billion plus.
Speaker Change: I'm conscious that consensus was or the kind of 8.4.
Speaker Change: Youre telling us.
Speaker Change: Basel III one is no longer can have an impact which is I think kind of saves you about $1 billion of Cc one.
Speaker Change: Im just trying to make sure I'm sorry.
Speaker Change: Is there anything we're missing in terms of.
Speaker Change: Of course capital dynamics as we run through.
Speaker Change: 25, the study of this kind of increased investment and wealth management principles going into the color of intangibles except for the.
Speaker Change: Perhaps might have an impact on capital just how youre thinking about that would be great. Thank you.
Speaker Change: Well Robin I don't want to disappoint. So I'll just start you start to Diego questions.
Speaker Change: And by the way Robin never say I could never hate you are asking about anything but let me be very clear about that now first the first on your first on your first question on wealth management.
Speaker Change: We do expect seasonality into Q4, there is no doubt because of bank assurance because of the natural.
Speaker Change: The natural tendency of money that we put to work earlier in the year et cetera, No doubt, we had a particularly strong start to October but absolutely do expect the seasonality.
Speaker Change: Because we don't.
Speaker Change: The second thing on the capital return is definitely not any of the.
I used the word. He then obviously no kidney cannot any implicit type of investments that easing in the reshaping of our mass footprint or the doubling down and sharpened focus on investment in the wealth management for Affluenza.
Speaker Change: If there is one thing that still gives us a little bit of pause is that we do have the cta for fit for growth that they need to come into play in 2025 in particular in terms of the bulk of that cost to achieve being pulled through.
Speaker Change: And as a consequence said 2035 at the margin is more of a pinch points on the capital returns. That's all there is to it.
Speaker Change: Look I think we have.
Speaker Change: We are showing you with the $2 7 billion that we returned this year with the fact that we are we will continue failure before Bill tells you that we are going to run ourselves between 13 and 14% in the fact that we are at 14, 2% right now is because it's this time of the year and we will continue to generate capital and we will convene.
Speaker Change: <unk> to look at our distributions expansively.
Speaker Change: You want to add anything to it.
Speaker Change: No I think you captured it perfectly I mean.
Speaker Change: Not that it needs reinforcing but I'll reinforce it any way we can do.
Speaker Change: We intend to and want to operate dynamically within our 3% to 14% range.
Speaker Change: Alright, thank you.
Speaker Change: Thank you now we are going to take our next question.
Speaker Change: Jackie This amendment and.
Speaker Change: And the question comes from the line of Nick <unk> from Morgan Stanley. Your line is open. Please ask your question.
Speaker Change: Thank you very much and hopefully you can hear me.
Speaker Change: Just a question really back going back onto retail restrictions. So a couple of questions.
Speaker Change: First of all in terms of about $1 5 billion, but you're investing over the next five years how.
Speaker Change: How much of that would sort of be revenue investment and how much of that would be capital investments.
Speaker Change: The second question I have is just trying to understand sort of how youre thinking of the phasing of RM hiring and what is the period of time. It takes your RMS to become profitable.
Speaker Change: After you've hired them.
Speaker Change: And then the third question is I'm, just trying to understand a little bit better.
Speaker Change: What this reshaping of a retail business means no I understand sort of setting up a small loan book in India or whatever it might be but but obviously you have quite a large retail business in places like Singapore, and Hong Kong, Malaysia. So what are you imagining that those businesses look like as you got to the end of this process.
Speaker Change: Great. Thanks, Thanks for those questions.
Speaker Change: Very pertinent maybe I'll start with your third.
Speaker Change: Where we have a very strong presence in a market you mentioned Hong Kong, Singapore, I got a few other markets including.
Certainly Taiwan in some cases.
Speaker Change: In some ways Korea, and otherwise, India, and then many smaller markets, Bangladesh, Kenya et cetera, where we have a universal bank model today, that's very profitable very effective we think we're very well positioned and we don't want to.
Speaker Change: Do anything other than continue to expand that.
Speaker Change: In each of those cases, certainly Hong Kong, Singapore, where we have a very good cedar from our mass market business, where our market share is relatively small but by no means insignificant.
Speaker Change: Good feeder.
Speaker Change: Affluent part of our business and we want to continue to develop that quite strongly.
Speaker Change: So those those universal Universal Bank models.
Speaker Change: They work for us it worked very well and we have no intention of changing that.
Speaker Change: Any fundamental way.
Speaker Change: The digital banks in particular marks and trust.
Speaker Change: <unk>.
Speaker Change: It started in many ways as.
Investments with a view to generating profitable kind of Standalone operations, clearly competing with our own business to some degree but targeted at a very different segment than our typical segment as those.
Speaker Change: Businesses involved.
Speaker Change: Our confidence so they can become structurally very profitable is has increased.
Speaker Change: We bumped back the return.
Speaker Change: Treatment.
Speaker Change: Our strong profitability and marks by by a year or so.
Speaker Change: Our conviction that we can get very attractively returning and.
Speaker Change: And leverage business model in that mass market segment is there part of the way we're going to do that is also in its own way pivoting those businesses to a more affluent population so introducing bulk medical products.
Speaker Change: Perhaps down the road introducing.
Speaker Change: Things like mortgage products, which are more typical suited to.
Speaker Change: Middle or higher income.
Speaker Change: Yeah.
Speaker Change: So that.
Speaker Change: All part of our call it our Universal Bank approach in those markets, where we have an edge and other markets.
Speaker Change: That would include.
Speaker Change: Important parts of.
Speaker Change: Markets in India.
And.
Speaker Change: Also in some important parts.
Speaker Change: <unk>.
Speaker Change: Or Africa, where we.
Speaker Change: Our mass market business is either subscale or.
Speaker Change: Or where.
With whatever scale, we find that we're unable to offer a really differentiated product.
Speaker Change: What we need to do to restructure that it could be exiting a product line like credit card personal loans that we just did in India. It could be a more substantial exit of a of a mass market business. So call it a harder and more definitive pivots to affluent.
Speaker Change: In some very exceptional cases, it could mean.
Speaker Change: Getting the country entirely as we did with a number of African countries over the past couple of years.
Speaker Change: In those cases that would only be following the conclusion.
Speaker Change: There is somebody that's a better and more profitable owner.
Speaker Change: For those assets and we are and where we don't see it contributing materially to our broader strategy of having a world class.
Speaker Change: Affluent clients wealth management business and focusing on cross border business and our in our CIB franchise.
Speaker Change: I hope that gives you a little bit more color.
Speaker Change: No way are we exiting the mass market, we're just focusing on those things, where we can make a real difference.
Speaker Change: On the first part of your question the $1 5 billion of investment I think I understand the question.
Speaker Change: These are expense dollars that are going to be investing to generate returns. So it's not we're not making a loan capital in there.
Speaker Change: But I hope I hope that's clear that we made.
Speaker Change: Software cap.
Speaker Change: Next capex.
Speaker Change: Oh I see.
Speaker Change: Well, Okay, maybe I'll, let Diego I'll take a stab at it how much of our investment might be capitalized, but don't forget that.
Speaker Change: Is this primarily going to be that's all focused on generating revenue.
Speaker Change: And then third on the on the phasing of RM hiring and the return.
Speaker Change: Hundreds and thousands of trends over the past five years.
Speaker Change: We've had attrition, which is quite a bit lower to the market.
Speaker Change: We have paid.
Speaker Change: On market not above market. So we've never we've never been the guy that attracted to the RMS because we paid a little bit more.
Speaker Change: <unk> been the ones, who are attracted to <unk>, because we have a very strong platform.
Speaker Change: On which from which to deliver including the fact that we're open architecture.
Speaker Change: We are not encouraging Rms or sell any of our own.
Speaker Change: Our ancestors and.
Speaker Change: So we see.
Speaker Change: That we can ramp up our RM hiring.
Speaker Change: Exactly as we phased it in terms of our intended investment.
Speaker Change: And.
Speaker Change: <unk>.
Speaker Change: Payback time, obviously varies from market to market and will vary from cycle to cycle as well.
But we expect to get a decent payback on these investments in 2018 to 24 months.
Speaker Change: Diego feel free to elaborate contradicts.
Speaker Change: Spans go to Hulu.
Speaker Change: This is not enough we spent a lot of.
Speaker Change: Two very quick things that I would to the point that bill just made on RM hiring.
Please do not forget that it sounds like we are starting high and guidance I mean, we've been hiring our emphasis on the J curve that Bill described there is a lot of rins that are already on that J curve. So if your question. If I interpret your question Nina do I need to build in a lag between the moment when you start investments in a moment. It shows results yesterday, no because it's a continuation.
Speaker Change: Well the strategy that we have been having on the point on the one 5 billion of the investments in wealth very largely expenses current expenses, a small amount of the amounts will be capitalized, but I mean, the mall versus mall.
Speaker Change: And.
Speaker Change: I'm just trying to work out how we should think about that so as you build up to $1 5 billion over five years ore bodies.
Speaker Change: Cumulative cumulative side, it's a cumulative so we're talking about.
Speaker Change: $300 million on now for a few hundred a year.
Yes, it probably pushed back into year, two and three or something like that it's about the way we should be thinking about it.
Not sure that I would say that in any particular way other than thinking that this is as more progression on one of our own a gem of a business that is producing great returns that you can think that we're going to be investing at sometimes in certain geographical areas and sometimes in others.
Speaker Change: Sometimes a little bit more towards the upper end, sometimes a bit more towards the Midland, but I mean look.
No great science, there in terms of how to face it.
Speaker Change: Okay perfect. That's great. Thank you very much.
Speaker Change: Thank you Nick Thank you operator.
Speaker Change: Now we're going to go next question.
Speaker Change: Yes.
Speaker Change: And the question comes from the line of <unk> Peng from China Securities. Your line is open. Please ask your question.
Speaker Change: Okay. Thank you Mani builds among Diego.
Speaker Change: In Canada.
Thanks for taking my question I've got one question for Bill.
Speaker Change: Jim mentioned, just now that one of our CIP a key strength.
Speaker Change: The clients' complex needs.
Speaker Change: So we've got a.
Speaker Change: We had that election.
Speaker Change: Forward.
Speaker Change: A lot of changes after that.
Speaker Change: Yes.
Speaker Change: Much more.
Speaker Change: Complexity much more than what our business going forward, but I think sometimes but I think at the end of town.
Speaker Change: It means it's.
Speaker Change: Business opportunities pullback right.
Speaker Change: Could you give us some thoughts.
All of those.
Speaker Change: Collectively.
Speaker Change: Ball going forward and also.
Speaker Change: The platform.
Speaker Change: So opportunity for standard chartered going forward. Thank you.
That's great. Thanks, very much for the question Kevin.
Speaker Change: And you're right.
Speaker Change: Things are complex today and things could get more complex.
Speaker Change: The coming months.
Speaker Change: Or they could get more complex I think the likelihood the things youre going to get simpler story, though.
Speaker Change: It's just a question how do they get more complex.
Speaker Change: As things have gotten more complex in China. Our business has performed better and there was just a very simple reason, which is that our clients both in China and outside of China.
Relying on intermediaries or connectors like us to help them navigate that complexity.
Speaker Change: Who is going backwards, if trade flows, we're reducing or cross border investment.
Speaker Change: That was reducing that might have an impact on our business, but we're seeing the opposite.
Speaker Change: The reconfiguration of supply chains, and we are seeing ongoing very strong investment from Chinese corporations outside of China, and we're continuing to see meaningful investments from international companies or offshore Chinese companies back into China.
Obviously as has tapered off.
In the in the less.
Speaker Change: <unk>.
Speaker Change: Chinese economic environment.
Speaker Change: As for the outlook for China GDP growth is clearly the stimulus as has had a short term effect.
Speaker Change: The market is keen to see how they follow through with the broader structural fiscal and other reforms.
Speaker Change: Having spent a bit of time in China last week, and they're spending more time.
Speaker Change: Before the end of the year I sense, a very strong resolve or something you could share with us how strong it resolved as youre seeing it firsthand.
Speaker Change: It's a very strong resolve to to get the economy back on the right track, including a range of structural steps that will pass through in due course.
Speaker Change: So on.
Speaker Change: On the one hand things, we will certainly get more complex I'm happy.
Speaker Change: To say that we are coping with that well and I think there'll be a little bit of economic tailwind as we as we come through this difficult time.
Speaker Change: I would note I noticed that the second bank. The second International Bank has been added to the China interbank payment system as both an onshore and offshore participant we've been there for over two years and it's the kind of thing.
Speaker Change: Put standard chartered and a very very strong position to satisfy our customers cross border needs is that we have.
Speaker Change: It positioned ourselves vis vis the licensing agencies in China, and then outside of China in such a way that we can provide solutions frequently.
Speaker Change: In a unique way and we will continue to try to maintain that lead as we build this business out in the years to come.
Speaker Change: Yeah.
Speaker Change: Okay. Thank you for your analyst or anything else.
Speaker Change: Thanks, Jacob maybe we move to the next question.
Speaker Change: Thank you.
Speaker Change: Participants as a reminder, if you wish to ask a question over the phone. Please press star one on your telephone keypad and finance to be announced can we do have a question. Please press star one again and now we're going to take over next question.
Speaker Change: Okay.
Speaker Change: And it comes from the line of Jeremy <unk> from CIBC. Your line is open. Please ask your question.
Jeremy: Thank you Hi, Bill Hi, Diego My first question is another question on the strategic updates I think bill sort of answered that but just to confirm you talked about the reshaping master batesville business and exploring opportunities to sell some of them, but will you continue to add.
Jeremy: Some of the peripheral markets like what you have done over the years more you evaluate on some of the big relatively underperforming retail markets mainly.
Jeremy: Indonesia, and Korea and the second question is just a follow up on the revenue I think.
Jeremy: Mentioned that given the current interest rate outlook is more challenging to grow NII in 2025 overall do you think standard chartered.
Jeremy: Top line will benefit from a mildly lower interest rate environment. Thank you.
Speaker Change: Okay, great Jamie Thanks for both those questions.
Speaker Change: So the answer to your first question.
Speaker Change: Just focusing on some smaller markets on the periphery or are we focus on the big markets as well. The answer is we're focused on both absolutely.
Speaker Change: You should not expect to see us.
Speaker Change: Exiting bid.
Big markets at this point.
Speaker Change: You would expect.
Speaker Change: So you should always expect us to focus extraordinarily on improving the performance in any market that isn't covering its cost of capital and generating growth leveraging some strategic strength that we have as a bank.
Speaker Change: And we know that there is about what we have substantially.
Speaker Change: Very substantially improved our Korean business.
Speaker Change: There is more to do on the on the retail side of the business on the wholesale side of our Korean business.
Speaker Change: It's exceptionally profitable.
Speaker Change: There's been good growth over a period of time and we expect growth to continue.
Speaker Change: Yes, we do look at that as a franchise as an integrated franchises.
Speaker Change: You can't completely separate the two things.
Speaker Change: In Indonesia, we have.
Speaker Change: Executed some central pivot into.
Speaker Change: The affluent part of our business already and will continue that and we should expect.
Speaker Change: Performance improvements in that regard.
Speaker Change: The peripheral markets, obviously, we exited.
Speaker Change: Few of those and in recent years and to the extent that we identify market that as I mentioned earlier.
Speaker Change: Isn't playing to our strengths.
Speaker Change: And there isn't consistent or isn't isn't necessary for the broader part of our strategy.
Speaker Change: Then there may be a better owner for all or some parts of those businesses, but those are decisions that we take after a very very very thoughtful consideration because sometimes the.
Speaker Change: The interim linkages with other parts of our business.
Speaker Change: <unk> are not so obvious on the surface, but nevertheless substantial below the surface. So I think we're quite we're quite thoughtful about that.
Diego feel free to.
Speaker Change: And on that one because we've obviously spent a lot of time thinking about well.
Diego: No no no I think nothing nothing to add on that one do you want me to take the second of the top line benefits from the moderate environment.
Speaker Change: Yes.
Speaker Change: So that's one on that one Jeremy.
Jeremy: Borrow a turn from the fed.
Jeremy: If you think about the war of the with the higher our stock rate than what the award is expected before so lower but not too low that is there is not a bad word in which to operate right. That's a world in which demand for credit comes back.
Jeremy: And.
Jeremy: Counterbalances the effect on the margins in terms of NII, but more importantly that is a world in which the engines of non NII work, particularly well our wealth management would see an increasing shift from deposits into web solution business, our market business will benefit from the fact that within.
Jeremy: That kind of environment, if will remain somewhat volatile because of geopolitical rather events and we benefit from it in our banking business again, whether we end up retaining those origination in the form of our <unk> or whether we originate to distribute our banking business line. The non NII will also benefit strongly from it.
Jeremy: So it's clear that that's the ease.
Jeremy: Very conducive environment for our business across NII and non NII.
Speaker Change: Thank you very much thank you Jeremy.
Speaker Change: Yes of course, and now we're going to take our next question.
Speaker Change: Yes give us amendment today's speakers. The next question comes from the line of <unk> from Bank of America. Your line is open. Please ask your question.
Speaker Change: Hello, and thank you for taking my questions.
Speaker Change: Just one on NII and then one on ventures, so on NII I guess this.
Speaker Change: This quarter does it quite a large benefit from mix and others. So just can you unpack that a little bit and how much mix improvement et cetera from sort of treasury operations and can we expect next year and and I guess the other sort of related question is structural hedge and I.
Speaker Change: And forgive me, if I Miss anything, but Tim I don't think Theres any update on the structural hedge so am I.
I think previously you've talked about continue to wanting to build them and but also just noting that one of your peers yesterday.
Speaker Change: The days of <unk>.
We're really building the hedges is sort of behind US is that the same for you or are you still thinking to ramp up and and <unk> and to what extent, Ken great sensitivity, but use as a result of that.
Speaker Change: Yeah.
Speaker Change: Then just noting possibly over reading this but to just noting that the cost income ratio jaws guidance isn't ex notable items. So does that suggest that there is a risk of an all in.
Speaker Change: And number not being not not positive.
Speaker Change: If the income environment proved to be a little bit more tricky.
Speaker Change: So sorry, it's a little bit.
Speaker Change: Moving bits into NII question, and then four benches and thank you for guidance.
Speaker Change: Breaking even broadly speaking in 2006.
Speaker Change: So is that coming from <unk> or is it more coming from cost because it looks to me, especially the last couple of years, it's about.
Speaker Change: 300 million income and maybe four or $500 million of call. So.
Speaker Change: Income going up or is it are you done on the cost investment side of things.
Speaker Change: Thanks for the thanks for the questions shortly but let me take your ventures question, then hand back to Jake.
Speaker Change: Sort of an ironic question.
Speaker Change: <unk>.
Speaker Change: Yeah.
Speaker Change: The biggest components of the venture segment, our marks and trust.
Speaker Change: The story there is entirely income.
Speaker Change: The income growth is picking up as customer numbers have grown as the balance sheet has grown and as we layer on new products, including most recently Wilson.
Speaker Change: And in.
Speaker Change: Remarks, and then well.
Speaker Change: Uh huh.
Speaker Change: Wealth later and trust.
Speaker Change: So thats largely an income story and for the other ventures, which are smaller it is.
Speaker Change: Also virtually an income story, but we've also reached.
Speaker Change: Effectively moved from from from infancy driver license in this segment.
Where many of our ventures are maturing and we're beginning to harvest ventures. So.
Several smaller ventures.
Nice gains, but not noticeable to you on the bottom line, but nevertheless, if you could sort of proof.
Speaker Change: But is it worth it that some of the things that we're building our value valuable to other people in addition to be valuable to us and.
Speaker Change: And we will move some of our larger ventures to the more mature phase, where we'll be looking at that increasing numbers of partial or complete.
Speaker Change: Exits, which obviously reduces the these are businesses that have not yet reached.
Speaker Change: Operating profit, but which are very valuable to third parties as we know it was often in that space.
Speaker Change: Usually when you exit.
Speaker Change: Like that.
Speaker Change: Reducing our operating profit drag reducing expenses, so I wouldn't say, it's an expense story.
Speaker Change: As we shape the portfolio, we would expect that the income growth combined with.
Speaker Change: With the deal related costs.
Speaker Change: Things that we exit.
Speaker Change: To be the drivers of improvement of profitability. The third thing to keep in mind is while we are always reporting an operating profit.
Speaker Change: In the segment the significant portion of the gain that we expect to generate is coming from capital gains and as this.
Speaker Change: This portfolio matures.
Speaker Change: We will be generating capital gains, which will contribute to the return to steady profitability of the business. So a little bit lumpier as we know.
Speaker Change: But we would expect to see a steady stream of games coming into the country portfolio in the coming years, both from the minority Stakes that we've taken them such as I just point to a couple of things high single digit percentage investments in Postbank in Korea line Bank in Taiwan are very valuable very valuable franchises, neither of which has gone public yet.
Speaker Change: All of which are likely to over the coming years, one would expect since or some of the predecessor entities have.
Speaker Change: And then many of the other minority stakes that we have in our Fintech portfolio are also sitting on unreasonable embedded gains which are.
Speaker Change: Which will be able to monetize through time, and then of course, those debentures that we built ourselves so.
Speaker Change: A little bit of all of the above in terms of getting to profitability and generating what we continue to expect to be a very good return on that portfolio overall.
Speaker Change: Dig obviously feel free to comment on that or go back to the first set of questions.
Speaker Change: I jumped to NII.
Speaker Change: One on the NII so this quarter.
Speaker Change: Quarter benefit to think about it this way I would say about half is really higher day counter.
There is a small tailwind of FX.
Speaker Change: The rest is an asset mix benefit as we have reduced treasury assets.
Speaker Change: To fund the the customer balance sheet. So that is the contract for this quarter.
Speaker Change: Can you extrapolate from this going forward, yes, you can.
Speaker Change: Things that we continue to find opportunity to look for opportunities to reduce our treasury balance is in favour of customer balances. We continue to shift the quality of our liabilities by reducing the importance of customer of them corporate time deposits.
Speaker Change: In favor of other sources of liquidity and in this particular case you will have seen for example, this quarter that our casualty the ratio in the <unk> has gone down a bit that is not because of that.
Speaker Change: <unk> actually has a has increased but the time deposits have increased even more because our net new money strategy in wealth management that has been very effective so that's on the.
Speaker Change: Broad question about mix it on the structural hedge although we don't have a slide we have indicated that the hedges continued to grow in line with what we were guiding Youtube. We are at about $55 billion of hedge and of structural hedge and we expect to finish the year in the region of $60 billion, we intend to grow into in 2020 states.
Speaker Change: Very similar rates to the rates that we have grown into in 2025 other than thats, some very minor.
Speaker Change: Change is a slight uptick in the in the yield but nothing nothing major there to report on the cost income guidance. The only thing I would say is that.
Speaker Change: We guide to income on an ex notables item basis. So the thing the two things are very consistent and that's how we think of it nothing particular to see that.
Speaker Change: Okay. Thank you.
Speaker Change: Thank you.
Speaker Change: Operator.
Speaker Change: Thank you.
Now I would like to handover to management team for any retail questions. Please go ahead.
Speaker Change: Thank you we have one question online comes from guys stepping.
Speaker Change: Zone.
Speaker Change: And well, perhaps the 32% growth rate is a little flattering given some of the stimulus, but the underlying drivers look favorable and it sounds like the progress on wealth and investment is playing an important role in upgrading the 2026 royalty guidance. So could you share in broad terms what are your expectations for wealth.
Speaker Change: Some growth, but now help show helped shape the 2026 guide.
Speaker Change: Yes, just a couple of quick thoughts on that in addition to what we've already said.
Speaker Change: It would say, who but we'll see what everybody else comes out with their numbers, we reassess the market, but it would appear that we're picking up a little bit of share.
Speaker Change: As we have.
Speaker Change: Over the past couple of years I think it's because we've been focused of course it's.
Speaker Change: It's not because we've been spending a lot more money we haven't.
Speaker Change: The investment phase of our growth growth is really beginning over the course of this year and into next year.
Speaker Change: We've been pretty focused and because I think we have a somewhat different with your proposition is on the margin.
Speaker Change: So I think there's the ability to continue to to pick up some share in this space feels like a pretty good proposition to us.
Speaker Change: The things that differentiate us which are desperate balanced product offering across.
Speaker Change: The more sophisticated online access points for for self directed investors versus what are the spectrum bank assurance at the other.
Speaker Change: We're well spread across the piece, we've got excellent partners.
Speaker Change: And certainly the former Prudential, but also.
Speaker Change: The asset managers that we deal with.
Speaker Change: And we've built some good technology that is that's enduring so I think for all those reasons were.
Speaker Change: So we feel pretty good about the ongoing growth.
Clearly, it's been it's been a favorable market environment as I pointed out right up front and we don't want to suggest.
Speaker Change: But the market environment also looks reasonably supportive.
Speaker Change: At this at this point and equity markets have been stable I think we've absorbed a lot of.
Speaker Change: What could have been body blows to market sentiment that the market has seen through and investor confidence has returned its not back to its peak by any means but it has some further room to improve and it's got a little bit about that.
Speaker Change: Overall, I think the growth opportunities restructuring.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Julia.
Speaker Change: Okay.
Speaker Change: And yet no nothing nothing nothing to add on this do we have any any more question menno.
Speaker Change: Back to the operator.
Speaker Change: There are no further questions I would now like to hand, the conference over to Bill winters for any closing remarks. Please go ahead.
Bill Winters: Thank you very much operator, and thank you all of you for a really good set of questions. Thanks as always for us.
Speaker Change: Joining us.
Speaker Change: And building into us and trying to understand us.
Speaker Change: As always are available to follow up with questions or comments after the fact.
Speaker Change: Please have a good rest of the week.
Speaker Change: Thank you all and goodbye.
Speaker Change: That does conclude our conference for today. Thank you for participating you may all disconnect have a nice day.
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Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Thank you.
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Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Thanks.
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Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Thank you.
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Speaker Change: Yes.
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Speaker Change: Sure.
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Speaker Change: Yes.
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Speaker Change: Yes.
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Speaker Change: Yes.
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Speaker Change: Okay.
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Speaker Change: Yes.
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Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Thanks.
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Speaker Change: Yes.
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Speaker Change: Sure.
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Speaker Change: Yes.
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Speaker Change: Thanks.
Speaker Change: Yes.
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Speaker Change: Yes.
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Speaker Change: Yes.
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Speaker Change: Yes.
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Speaker Change: Yes.
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Speaker Change: Yeah.
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