HSBC Holdings PLC · LSE:HSBA
HSBC — Investor Day (May 2011)
24 slides from HSBC's investor day presentation, May 12, 2011
Slide 1: HSBC Holdings plc Investor Day
Abc 11 May 2011 HSBC HOLDINGS PLC INVESTOR DAY The presentation given today by Peter Wong, Chief Executive Asia; Helen Wong, Chief Executive China; and Mark McCombe, Chief Executive Hong Kong, is attached and will be available to view at www.hsbc.com. ends/all Registered Office and Group Head Office
Slide 2: Asia Investor Day
11 May 2011 Asia Investor Day Peter Wong Chief Executive Asia Helen Wong Chief Executive China Mark McCombe Chief Executive Hong Kong
Slide 3: Forward-looking statements
Forward-looking statements This presentation and subsequent discussion may contain certain forward-looking statements with respect to the financial condition, results of operations and business of the Group. These forward- looking statements represent the Group’s expectations or beliefs concerning f
Slide 4: Emerging Asia is the growth engine of the world
Key trends for Asia Emerging Asia is the growth engine of the world Emerging Asia population in 2010: 3.8bn (55% of world population) Share of World GDP 1990 2010 2030E 8% 18% 39% Source: Global Insights, UN. Population Reference Bureau 2010. Emerging Asia defined as Asia excluding Japan, Middle Eas
Slide 5: Increasing domestic consumption across Emerging Asia
Key trends for Asia Increasing domestic consumption across Emerging Asia Middle class households Domestic Consumption Millions USDbn 369 600 CAGR Total US population in +12% 2025 425 401 Indonesia CAGR 280 Mainland +11% China 275 76 114 Malaysia 85 55 89 India 84 65 Singapore 21 2010 2025E 2007 2010
Slide 6: Growing intra-regional and inter-regional flows
Key trends for Asia Growing intra-regional and inter-regional flows Asia global merchandise trade flow Intra Asia trade flow Trade flow to Rest of the World USD3.7tn (2009) USD3.0tn (2009) USD10.8tn (2020) USD5.5tn (2020) (CAGR +10%) (CAGR +6%) Source: WTO 2010 intra/inter regional merchandise t
Slide 7: Asia will be home to three financial centres
Key trends for Asia Asia will be home to three financial centres Expected to have World’s Top 5 IPO markets1 FX market daily turnover2 75% share of USDbn, 2010 USDbn, Apr 2010 Shanghai3 mainland China’s equity market in terms of liquidity Hong Kong 57 UK 1,854 by 2020 # 1 global IPO US 904 centr
Slide 8: A very sizeable presence and strong delivery vs. competitors in Asia
HSBC position and competitive advantages A very sizeable presence and strong delivery vs. competitors in Asia HSBC – Asia 11.6 Scale 25.6% PBT growth PBT, 2010 2009-2010 USDbn 49.0 Efficiency CER, 2010 Lower CER than % major international competitors Source: Major competitors’ annual reports and ear
Slide 9: Breadth and depth and the ability to connect the world
HSBC position and competitive advantages Breadth and depth and the ability to connect the world Finance Asia: Best Trade Finance Bank in Asia (1997–2010) Leadership in Euromoney: No.1 Cash Management Provider in Asia (2009–2010) Trade, Capital… FX week: “Best Bank for FX in Asia-Pacific” (1993
Slide 10: Strategic direction and actions overview
Strategic direction and actions Strategic direction and actions overview Asia Connecting Asia and the world Expand leadership in Build scale in other key Maintain leadership in 1 2 3 Greater China markets connectivity Maintain leadership in Hong Continue to invest to build Focus resources in o
Slide 11: Investing in building a leading domestic franchise
Strategic direction and actions for mainland China Investing in building a leading domestic franchise Key opportunities Key actions Corporate banking profits projected to grow at CAGR Continue to invest in a comprehensive 9% to 20151 distribution network and technologies Middle class household n
Slide 12: Connecting China to the rest of Asia
Strategic direction and actions for mainland China Connecting China to the rest of Asia Capturing the intra Greater China flows Capturing mainland China and intra-Asia flows Mainland China - Asia trade flow 2 USDtn 7.5 CAGR Mainland +17% China: 124 outlets1 3.4 Taiwan: 42 branches 1.6 Macau: Hong Ko
Slide 13: Connecting China and the rest of the World
Strategic direction and actions for mainland China Connecting China and the rest of the World Example: facilitating outbound and inbound flows Key actions Mainland China World Expand China desks to capture cross-border opportunities AEI Investment in (US client) HSBC structured Expand and deepen rel
Slide 14: Sustained leadership through the economic cycle
Strategic direction and actions for Hong Kong Sustained leadership through the economic cycle HSBC position Key actions Leading player with # 1 market shares Continue to invest to maintain leadership1 HSBC only1 Hong Kong ■ Top advertising spend (15% of industry) with # 1 in Deposits (Dec 10) 25% 34
Slide 15: Ideally positioned to capture cross-border opportunities
Strategic direction and actions for Hong Kong Ideally positioned to capture cross-border opportunities Chinese diaspora: a major source of new customers1 Key actions3 Premier Business Leveraging on cross-border connectivity to capture Total new accounts Total new accounts Chinese commercial clients
Slide 16: HSBC – The leading international RMB Bank
Strategic direction and actions for Hong Kong HSBC – The leading international RMB Bank Hong Kong RMB deposits vs. RMB trade settlement1 Key actions RMBbn, cumulative 681 Leveraging on first mover advantage 371 451 ■ Joint-Listing Agent on HK’s first RMB IPO 315 ■ First RMB structured deposits. Laun
Slide 17: Strategic direction and actions overview
Strategic direction and actions Strategic direction and actions overview Asia Connecting Asia and the world Expand leadership in Build scale in other key Maintain leadership in 1 2 3 Greater China markets connectivity Maintain leadership in Continue to invest to build Focus resources in other
Slide 18: India strategy – Well positioned to reach USD1bn PBT
Strategic direction and actions for Rest of Asia India strategy – Well positioned across business lines to reach USD1bn PBT PBT aspiration Key actions USDm 1bn CAGR Corporate: Financing led strategy to build +26% 679 domestic corporate franchise serving our local and international customers’ needs 2
Slide 19: Singapore strategy – Wealth and Trading hub opportunity
Strategic direction and actions for Rest of Asia Singapore strategy – Wealth and Trading hub opportunity to provide USD1bn PBT PBT aspiration Key actions USDm 1bn CAGR Wealth: Investing in Relationship Managers for +13% Premier and Private Banking, and enhancing 524 distribution 289 Trade: Enhancing
Slide 20: Other key markets strategy – Malaysia and Indonesia
Strategic direction and actions for Rest of Asia Other key markets strategy – Malaysia and Indonesia positioned for strong growth to generate USD1bn combined PBT aspiration Key actions USDm 1bn CAGR Malaysia: Invest in distribution and Islamic +12% Finance capabilities 219 Indonesia 113 401 Indonesi
Slide 21: Key take-aways
Key take-aways Asia Competitive advantages Cross-border leadership in trade, capital and wealth flows Network to connect Asia and the rest of the world #1 brand in Asia Target RoRWA ■ 3.4-4.2% Well-funded subsidiaries business model New USD1bn+ PBT markets Strategic actions India Singapore Grow
Slide 22: Basis of preparation (1/2)
Basis of preparation (1/2) Actuals Actual numbers presented are on a reported basis and include the effect of movements in the fair value of HSBC’s own debt related to credit spreads AMG The Global Asset Management business formed part of GBM in 2010, but has been included in RBWM for the RoRWA targ
Slide 23: Basis of preparation (2/2)
Basis of preparation (2/2) RoE Return on equity (‘RoE’) is profit attributable to ordinary shareholders of the parent company divided by average ordinary shareholders’ equity RoRWA The metric, return on risk weighted assets (‘RoRWA’), is the profit before tax divided by average RWAs. The RWAs have b
Slide 24: Acronyms and definitions
Acronyms and definitions A/D ratio Ratio of customer advances to customer deposits ETF Exchange traded funds NYSE New York Stock Exchange Advance HSBC Advance, a global banking proposition for the EU European Union OCC Office of the Comptroller of Currency mass-affluent segment of customers AFS Avai