HSBC Holdings PLC · LSE:HSBA
HSBC — HSBC Finance — Q1 2012 Earnings Presentation
16 slides from HSBC's earnings presentation, May 8, 2012
Slide 1: HSBC Finance Corporation – Presentation
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this document, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance
Slide 2: HSBC Finance Corporation IFRS Management Basis
HSBC Finance Corporation IFRS Management Basis 8 May 2012 1
Slide 3: Disclosure Statement
Disclosure Statement This presentation, including the accompanying slides and subsequent discussion, may contain certain forward-looking information with respect to the financial condition, results of operations and business of HSBC Finance Corporation. Any forward-looking information represents exp
Slide 4: 2012 Financial Results
HSBC Finance Corporation 2012 Financial Results (1) 1Q 2011 1Q 2012 US$m Card and Consumer Card and Consumer Total Total Retail Svcs and Other(2)(3) Retail Svcs and Other(2)(3) Net operating income before loan impairment charges excluding changes 1,359 760 2,119 1,272 814 2,086 in Fair Value of Own
Slide 5: Continued reduction of balance sheet in the US
HSBC Finance Corporation Continued reduction of balance sheet in the US Customer loans(1), (3), (4), US$bn 108.2 102.0 93.5 91.3 86.0 83.2 81.0 80.3 75.9 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2+ Delinquency (1), (2), (3), (4), US$bn 15 25% 12.1 11.1 11.0 10.4 9.9 20% 9.0 9.6 9.3 10 8.7 15% 12
Slide 6: US customer loans – Run-off portfolio and Label
HSBC Finance Corporation US customer loans – Run-off portfolio and Credit Card and Private Label Customer loans(1), (2) Run-off portfolio, US$bn 73.3 68.8 61.3 58.4 9.8 8.8 55.7 53.5 7.1 51.5 49.5 47.5 6.5 8.1 7.5 6.8 4.9 4.3 6.0 5.6 6.3 5.8 5.3 5.0 5.4 5.0 4.8 4.5 4.2 51.5 49.2 47.2 45.3 43.6 42.2
Slide 7: US Mortgages: Continuing to shrink the Consumer & Mortgage Lending portfolio
HSBC Finance Corporation US Mortgages: Continuing to shrink the Consumer & Mortgage Lending portfolio Consumer & Mortgage Lending Real Estate Secured loans, US$bn 58.6 55.7 53.2 7.1 50.9 48.9 6.5 47.2 45.7 6.0 5.6 44.1 42.5 5.3 5.0 4.8 4.5 4.2 51.5 49.2 47.2 45.3 43.6 42.2 40.9 39.6 38.3 1Q10 2Q10 3
Slide 8: Impairment allowance
HSBC Finance Corporation Impairment allowance Consumer & Mortgage Lending Real Estate Secured(1), US$m 1,638 5,132 863 730 4,949 113 100 1,198 91 997 4,610 769 1,079 5 924 97 5 108 10 831 778 767 1,498 873 830 1,230 1,045 4Q IC 1Q IC 1Q LIC 2Q IC 3Q IC 3Q IC 4Q LIC 2Q IC 2 2Q 1 2Q 0 1Q r M r 4Q r M
Slide 9: Managing risk: Credit Card
HSBC Finance Corporation Managing risk: Credit Card(1) Credit Card Customer Loans, US$bn 20.9 20.0 19.3 19.3 17.9 17.9 17.7 17.6 16.8 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Credit Card 2+ Delinquencies(2), US$bn 2 16% 1.5 12% 1.2 1.0 0.9 1 8% 0.7 0.7 0.7 0.6 0.6 7.0% 5.9% 4% 5.3% 4.8% 4.0% 3.4
Slide 10: Managing risk: Private Label
HSBC Finance Corporation Managing risk: Private Label(1) Private Label Customer Loans, US$bn 14.0 13.2 13.6 12.9 12.4 12.0 11.9 12.9 11.6 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Private Label 2+ Delinquencies(2), US$bn 1 12% 8% 0.5 0.5 0.5 0.4 0.4 0.3 0.3 0.3 0.3 4% 3.9% 3.8% 3.6% 3.1% 2.8% 2.6
Slide 11: Impairment allowance
HSBC Finance Corporation Impairment allowance Credit Card and Private Label(1), US$m 3,304 782 7 485 8 371 1,095 8 880 257 1,752 738 446 452 446 8 8 8 8 208 1,348 703 9 558 444 472 449 4Q IC 1Q IC 3Q IC 1Q IC 2Q LIC 2Q IC 3Q LIC 4Q LIC 2 2Q 1 2Q 0 M r 4Q r 1Q r 3Q r 1Q r M r 3Q r 4Q r /O /O /O /O /O
Slide 12: Managing personal non-credit card run-off
HSBC Finance Corporation Managing personal non-credit card run-off Personal Non-Credit Card and Other Unsecured Customer Loans, US$bn 9.8 8.8 8.1 7.5 6.8 6.3 5.8 5.4 5.0 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Personal Non-Credit Card and Other Unsecured 2+ Delinquencies(1), US$bn 2 15% 11.9% 1
Slide 13: Loan impairment charges
HSBC Finance Corporation Loan impairment charges(1), (2), (3), (4) Credit Card and Private Label, US$bn Total HSBC Finance Corp, US$bn 1 20% 3 25% 0.8 15% 0.5 0.5 0.5 0.4 0.4 0.4 10% 0.3 2.3 2.3 20% 9 .2 % 0.2 2.2 5 .9 % 6 .2 % 5% 5 .8 % 5 .9 % 6 .0 % 4 .6 % 3 .3 % 2 .8 % 0 0% 2 1.9 1Q10 2Q10 3Q10 4
Slide 14: Amount written-off
HSBC Finance Corporation Amount written-off (1), (2), (3), (4) Credit Card and Private Label, US$bn Total HSBC Finance Corp, US$bn 30% 4 25% 1.2 1.1 25% 3.5 1 0.9 20% 0.7 0.7 0.6 15% 3.2 0.5 0.5 20% 13 .1% 12 .8 % 0.4 10% 10 .7 % 3 9 .2 % 8 .9 % 7 .4 % 5% 6 .1% 6 .3 % 6 .1% 2.6 0 0% 1Q10 2Q10 3Q10 4
Slide 15: 2+ Delinquency
HSBC Finance Corporation 2+ Delinquency(1), (2), (3), (4) Credit Card and Private Label, US$bn Total HSBC Finance Corp, US$bn 10% 15 20% 2.0 2 1.7 1.5 1.3 1.1 1.0 1.0 5% 12.1 5 .8 % 0.9 0.9 1 5 .0 % 4 .6 % 4 .1% 11.1 11.0 3 .5 % 3 .3 % 15% 3 .0 % 3 .2 % 3 .0 % 10.4 9.9 0 0% 10 9.6 9.3 1Q10 2Q10 3Q10
Slide 16: Impairment allowance
HSBC Finance Corporation Impairment allowance(1), (2), (3), (4) Credit Card and Private Label, US$bn Total HSBC Finance Corp, US$bn 4 20% 12 20% 3.3 3.0 2.6 15% 10.3 2.2 1.8 2 1.6 1.6 1.6 10% 1.3 9.3 9 .5 % 9 .0 % 8 .0 % 6 .7 % 5% 15% 5 .8 % 5 .5 % 5 .5 % 5 .2 % 8.4 4 .8 % 8 7.8 7.8 0 0% 7.5 7.4 1Q1