HSBC sees RoTE in mid-teens for 2024, banking NII at least $41B

HSBC said: “While our outlook for loan growth remains cautious for the first half of 2024, we continue to expect year-on-year customer lending percentage growth in the mid-single digits over the medium to long term. Given continued uncertainty in the forward economic outlook, we expect ECL charges as a percentage of average gross loans to be around 40bps in 2024. We are targeting cost growth of approximately 5% for 2024 compared with 2023, on a target basis. We intend to continue to manage the CET1 capital ratio within our medium-term target range of 14% to 14.5%. Our dividend payout ratio target remains at 50% for 2024.”