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HSBC CEO Gulliver Says Lower Bank Profitability Here to Stay

Investors still view 10 percent as the minimum acceptable level for return on equity, a closely watched measure of bank profitability, Gulliver said. Once regulators finish tweaking capital rules, that expectation -- known as cost of equity -- should fall to 8 percent. Gulliver said global banks like his own will eventually produce a return of 10 percent, a dividend yield of 4 to 5 percent and will trade at about 1.1 to 1.2 times book value.

"That’s probably your kind of new framework," he said in the interview at the World Economic Forum in Davos, Switzerland.