We spoke to our Quinn HSPs is outgoing CEO, who told us it has been a strong performance.
Really please that we've delivered a return on tangible equity of seventeen percent excluding notable items. So listen, I'm pleased not only for our shareholders, but also for the two hundred thousand colleagues around the world who have made this
possible to deliver a financial performance this strong. I'm pleased with the way that they've handled the past five years, the work they've done, the transformation and the results today are testaments of the work that they've they've put in and you know, match the heritage of HSBC and the strategic promise of HSBC. The financial results now match that, and that's why I'm also very pleased today that we've announced a three billion dollar buyback program, having completed three
billion dollars over the last three months. And just your manor just one thing that sometimes we tend to get is quarter by quarter. But in the last eighteen months, we've distributed to our shareholders thirty four billion dollars of capital either via dividends or buybacks and us in eighteen months and fifty four billion dollars over the past five years.
So let's talk more about the earnings and specifically that share buyback number three billion dollars higher than what the market was anticipating. How do you square up the market's expectations of what you can offer in terms of shared buybacks versus say, the need to continue investing in the business or in other areas or M and A for example.
Well, we said this year and last year as well that we would operate a fifty percent dividend payer ratio, So fifty percent goes in dividends, fifty percent is retained in the bank, and that it can be retained either to fund growth and or additional buybacks additional distribution to shareholders by in the way of buybacks. That second fifty
percent can do both and is doing both. We're retaining sufficient to drive growth, and we're distributing any excess because we've still got a very strong capital ratio CET one ratio work quite well above our target range. Therefore, we're able to both grow and distribute via buybacks. We do not re announced buybacks. We do we are on a
quarter by quarter basis. But I'm pleased that we've announced three billion dollars today and it's a function of the high returns that we generate in and the good profit performance we generate in, and our confidence for the future. The other thing we announced today is a new target, a new guidance of mid teens returns for twenty twenty five. That's a new piece of information we've put into the market.
That is evidence of our confidence of our ability to continue to deliver good, strong financial performance even if in tress rates come down. We built alternative revenue growth resugees to provide us with the sustainability of returns going forward as interest rates come down.
Okay, HSBC is outgoing CEO no Quinn talking to Jamana Pisci down