SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
month of April
HSBC Holdings plc
Floor, 8 Canada Square, London E14 5HQ, England
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F).
20-F X Form 40-F
by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934).
"Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-
HSBC HOLDINGS PLC - AGM STATEMENTS
Annual General Meeting of HSBC Holdings plc, held at the Queen
Elizabeth II Conference Centre, London today, the following
speeches were given by Group Chairman, Mark Tucker and Group Chief
Executive, John Flint.
Group Chairman, Mark Tucker, said:
and gentlemen, good morning and a warm welcome to the 2018 Annual
General Meeting for HSBC Holdings plc.
my first opportunity to speak with you directly and I am very much
looking forward to talking to you about the Group's performance and
other areas of interest.
to begin by saying that it is an honour to stand before you today
as your Group Chairman.
as I have done in the financial services sector for over 35 years
with the greater part of my career spent in Asia, I have long had
enormous admiration for HSBC with its unrivalled network, great
people, exceptional brand and leading position supporting global
business and trade.
the consequence of the vision and hard work of all those who have
gone before us and in particular, I want to acknowledge my
predecessor, Douglas Flint, who retired from HSBC at the end of
September last year.
behalf of all shareholders, I would like to thank Douglas for his
dedicated service to HSBC over a long and distinguished
Gulliver stepped down as Group Chief Executive on 20 February. I
would also like to thank Stuart for his exceptional leadership
through some difficult and challenging times.
first responsibility as Group Chairman was to oversee the
appointment of a successor for Stuart who would be capable of
building on his achievements while further enhancing the qualities
that make HSBC unique.
exceptional record of managing a diverse range of international
businesses and a deep understanding of HSBC's heritage and culture,
John Flint was the outstanding candidate.
Board is very much looking forward to working closely with John to
continue the Group's success and in a few minutes, I will ask John
to say a few words.
saw three other Board changes as we said goodbye to Rachel Lomax,
Sam Laidlaw and Paul Walsh, all of whom provided valuable service
and wise counsel to the Board.
grateful to Rachel for her excellent work as the Senior Independent
Director, Sam for his thoughtful leadership of the Nominations
Committee, and Paul for his important and valuable
committed to simplifying, strengthening and clarifying our
governance arrangements and a number of further changes take effect
today as part of this ongoing work.
announced in February, Phillip Ameen, Joachim Faber and John Lipsky
have all decided to retire from the Board at the conclusion of the
served HSBC with distinction and I am very grateful to them for
their valuable insights and important contributions to the Board
and the Committees on which they have served.
customary, John Flint and I will stand for election for the first
time today and all of the other continuing Directors will stand for
means that, subject to the election and re-election of Directors as
recommended, your Board will comprise a non-executive Chairman,
three executive Directors and 10 independent non-executive
also announcing that we are reducing the number of Board committees
from seven to five.
result, the responsibilities of the Conduct and Values Committee
and the Philanthropic and Community Investment Oversight Committee
will be reassigned.
the Conduct and Philanthropic agendas remain of vital importance to
that both are embedded within the Group's governance structure we
can continue to advance these agendas through the Board and other
Committees whilst also reducing complexity and strengthening
addition, responsibility for cyber-crime and information security
risk will be transferred from the Financial System Vulnerabilities
Committee to the Group Risk Committee.
will enable us to better consider cyber-crime and information
security risk as part of a holistic view of strategic issues
to your Group's performance, our 2017 results demonstrated both the
strength and the potential of HSBC.
increase in reported profit before tax reflected both a healthy
business and the non-recurrence of significant items, compared to
our global businesses grew adjusted profits and our three main
global businesses generated improved adjusted
revenue growth more than covered the cost of business investment
and increased lending laid a foundation for future
history and privileged access in Asia continue to serve us well as
the region again contributed a substantial proportion of these
this delivered an adjusted Group profit before tax of US$21bn, up
11% on 2016.
performance enabled the Board to approve an unchanged fourth
interim dividend of 21 cents.
like to remind shareholders that the authority granted to the Board
to pay interim dividends ensures that they are processed more
quickly than if there was a need to seek further approvals at
total dividend for 2017 is 51 cents.
combined with share price appreciation during the calendar year of
2017, this represents a total shareholder return of
intend to maintain the annual dividend at the current level for the
look ahead, we expect the current economic momentum to continue
growth is robust by post-crisis standards, all regions of the world
are participating, although some are benefiting more than others,
and unemployment is falling.
we believe growth might have peaked in Europe, we raised our US
growth forecasts after its recent tax and spending plans and we
expect emerging markets to pick up further.
economies in particular look set for another strong
renewed commitment to reform and opening up, demonstrated by
President Xi Jinping's speech at the National People's Congress
last month, is particularly significant.
conclusion of the Comprehensive and Progressive Agreement for
Trans-Pacific Partnership, alongside other trade liberalisation
initiatives like the Regional Comprehensive Economic Partnership,
ASEAN 2025 and Belt and Road initiative, also provide cause for
international network covering 90% of global trade flows and a
leading presence in the world's fastest-growing region, these
trends play to HSBC's strengths and we are in prime position to
help our customers to capitalise on them.
we are optimistic about the short-term prospects for the global
economy, risks remain.
monetary tightening and the threat of protectionism could act as a
drag on growth.
international tensions could yet have wider economic implications,
in particular the tariffs recently imposed on trade by the US and
continue to model and anticipate a wide range of scenarios as part
of our day-to-day risk management to cover unlikely but not
well-diversified business underpinned by historically stable
revenue generation and significant capital strength, we are
confident that HSBC is well equipped to manage the risks and
uncertainty in today's world.
lasting relationships we are building with our stakeholders
strengthen HSBC to meet the challenges of tomorrow.
year, for the first time, we published a range of environmental,
social and governance metrics - ESG for short - to enable investors
and customers to assess our non-financial performance.
latest ESG update, published earlier this month, shows that we are
making progress in a number of areas. It also makes it clear that
we still need to do better in others and one such area is diversity
employs a diverse group of 229,000 people, we serve a diverse group
of 38 million customers, and we have a diverse group of 200,000
is a fundamental part of who we are.
despite the progress we have made we still have a long way to
and his management team have the Board's full support in ensuring
all our people are able to do their jobs to the best of their
abilities, and fulfil their potential.
note, I want to end by thanking all of the people who work for HSBC
around the world.
six months as Group Chairman, I have been enormously impressed by
their effort, their energy, their commitment and their
It is a
cliché to say that we could not do it without them but the
truth is that we could not.
want to thank you - our very loyal shareholders - for your
continued trust and support.
Group Chief Executive, John Flint, said:
start by saying what a privilege it is to address my first Annual
General Meeting as your Group Chief Executive.
spent my entire career with HSBC, I'm very much aware of the
responsibility this role brings, and I am humbled and excited by
want to thank Stuart Gulliver for his extraordinary contribution to
successfully reshaped the organisation through an acutely
this, we all owe him a huge debt of gratitude.
was a good year for HSBC.
profit before tax of US$17.2bn was US$10.1bn higher than the
previous year, due mainly to the non-recurrence of a number of
large one-off items.
adjusted basis, profit before tax was US$21bn, an increase of
US$2.1bn on the prior year.
included increases in all four global businesses and four out of
five geographical regions.
revenue at a faster rate than costs, and maintained a strong common
equity tier one ratio of 14.5%.
returned a total of US$3bn to shareholders through share buy-backs
last year, and we paid more in dividends than any other European or
policy on share buy-backs remains unchanged, and we will consider
them where appropriate.
and foremost, where there is an opportunity to invest capital to
support the growth of the business, we will do so.
intend to maintain the dividend at the current level for the
the provision of capital to support the growth of the business and
maintaining our dividend, we will then consider share buy-backs,
subject to regulatory approval.
of last year also saw the conclusion of the programme of strategic
actions announced at our Investor Update in June 2015.
completed eight out of 10 actions on time, and on or above
included actions to reduce Group risk-weighted assets, deliver cost
savings, accelerate our pivot to Asia, and to implement Global
bank profitability and RMB internationalisation revenue targets
remain outstanding, although we have made significant progress with
includes completing the run-off of our legacy US consumer and
mortgage lending portfolio, bringing an end to a difficult chapter
in HSBC's recent history.
remain on course to complete the set-up of the UK ring-fenced
an overall consequence of the programme of strategic actions, HSBC
is simpler, stronger and more secure than it was a few years
business is now more capital-efficient and capable of producing
stronger returns for investors.
investment in Global Standards and risk and compliance helped pave
the way for our exit from the 2012 Deferred Prosecution Agreement
with the US Department of Justice, although financial crime
prevention and strong compliance remain a daily focus for us
improved international connectivity has strengthened our market
invested in our network so we can better deliver the kind of
cross-border service that our clients want, while many of our
competitors have exited the markets at the same time.
also simplified the business to improve control while retaining the
benefits of our scale.
has enabled us to increase the proportion of revenue that comes
from international clients from 50% in 2015, to 53% last
we've refocused the business back towards the bank's heartland in
presence in Asia's biggest growth markets and privileged access
have given HSBC a uniquely strong position in the
rapidly grown lending in the Pearl River Delta, launched new
products and established new businesses.
include HSBC Qianhai Securities, the first securities joint-venture
in mainland China to be majority-owned by an international
fantastic work being done by our team continues to enhance our very
strong competitive position in the region.
was recognised by a number of major awards in 2017.
was named 'Asia's Best Bank' and 'Hong Kong's Best Bank' at the
Euromoney Awards for
received 'Best Overall International Bank for Belt and Road' from
Asiamoney, and 'Best Belt
and Road Bank' from FinanceAsia.
the Group was honoured to be recognised as the 'World's Best Bank'
by Euromoney in July last
clearly have a great platform to build on, and we will be looking
to do just that in the months and years ahead.
already doing a lot of work to refresh our strategy and accelerate
strategy we have is working. But we now need to keep evolving it,
and to deliver at pace.
update shareholders on how we intend to do this at or before our
today, it is important to note that we're now in a very different
environment to the one we've been navigating since the global
tailwinds as opposed to headwinds, we're going to be better able to
invest in growing the business…
we will not be loosening our grip on costs.
in the business requires revenue growth and efficiencies across the
traditional disciplines of good capital management and positive
jaws remain essential to achieving our return on equity
have served us well recently, and throughout our
also going to maintain a strong focus on risk and
investment that we have made in our financial crime risk management
capabilities has considerably strengthened our ability to protect
the integrity of the financial system.
work will continue as we seek to ensure that the changes we have
made are effective and sustainable.
a clear aim to be the industry leader in combating financial crime,
and believe that this can be a powerful competitive advantage as a
leading international bank.
do business will be as important to me as Group Chief Executive as
what business we choose to do.
this right is absolutely critical.
future success will be determined by our ability to meet all of our
obligations to society, and by our impact on people and the planet
Group Chief Executive, I am going to have open and honest
discussions about our progress.
to mention three specific areas today.
we have a lot more work to do to keep our customers
bank, HSBC exists to serve.
been investing to speed-up approval times, simplify processes and
significantly reduce bureaucracy.
know that we need to do more.
our people and culture are HSBC's most important long-term
therefore vital that we create an environment that is diverse and
inclusive, where everyone is able to fulfil their
balance is an extremely important part of this.
set some ambitious goals to ensure we continue to make the progress
needed - but let me be clear, we have a long way to go to get to
where we want to be, and we're going to keep looking for ways to
get there faster.
we want to do more to support sustainable growth.
taken genuine strides forward, including by setting out a series of
commitments to assist in the global transition to a low-carbon
we reach another milestone with the publication of our revised
leading international bank, we have a vital role to play in
supporting countries and clients to transition from a high-carbon
to a low-carbon economy.
understand that we need to meet our obligation to protect the
revised energy policy strengthens our ability to achieve both of
these objectives - and enables HSBC to play a leading role in
creating a sustainable future that everyone can be part
conclude, I believe that we have a great platform to build
earlier that I'm aware of the responsibility that my new role
that responsibility is to repay the trust that you, our loyal
shareholders, have placed in us.
you for your support so far.
views are of paramount importance to me as we carry out our
Media enquiries to:
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Note to editors:
HSBC Holdings plc
Holdings plc, the parent company of the HSBC Group, is
headquartered in London. The Group serves customers worldwide from
around 3,900 offices in 67 countries and territories in Europe,
Asia, North and Latin America, and the Middle East and North
Africa. With assets of US$2,522bn at 31 December 2017, HSBC is
one of the world's largest banking and financial services
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
Ben J S Mathews
Group Company Secretary
20 April 2018