HSBC Holdings PLC · LSE:HSBA
HSBC — Debt Investor Presentation (September 2013)
21 slides from HSBC's debt investor presentation, September 2013
Slide 1: Presentation to Fixed Income Investors
HSBC Holdings plc and HSBC Bank Canada Presentation to Fixed Income Investors September 2013
Slide 2: Forward-looking statements
Forward-looking statements This presentation, including the accompanying slides and subsequent discussion, contains certain forward-looking information with respect to the financial condition, results of operations and business of HSBC Holdings plc, together with its direct and indirect subsidiaries
Slide 3: Contents
Contents Section The HSBC Group 1 HSBC Bank Canada 2 Conclusions 3 3
Slide 4: The HSBC Group
The HSBC Group HSBC >
Slide 5: Four Global businesses supported by global functions
The HSBC Group Four Global businesses Supported by global functions Commun- ications Sustain- Company ability Secretary Strategy and Commercial Finance Planning Banking Retail HSBC Global Banking Technology Private and Wealth and Banking Manage- Global Services ment Human Risk Banking and Resources
Slide 6: Home and Priority Growth markets
The HSBC Group 22 Home and Priority Growth markets With further Network and Small markets Asia Pacific Europe Middle East and North Latin North Africa America America Hong Kong1 United Kingdom Home markets Australia France Egypt Canada Argentina Mainland China Germany Saudi Arabia USA Brazil India S
Slide 7: Simplified structure chart
The HSBC Group Simplified structure chart Principal entities in Home and Priority Growth markets1 HSBC Holdings plc UK HSBC HSBC HSBC Private Holding company HSBC HSBC Latin America Overseas HSBC Bank HSBC Banking HSBC Bank 94% Latin Holdings Holdings Holdings Holdings Canada Bank plc Egypt S.A.E. I
Slide 8: Reported Profit before tax increased by 10%
HSBC Holdings plc Reported Profit before tax Increased by 10% 1H13 vs 1H12 USDm +2,805 -629 14,071 12,737 -2,525 +1,683 1H12 Revenue¹ Loan Operating Associates³ 1H13 Impairment Expenses Charges² 1 Revenue is net operating income before loan impairment charges and other credit risk positions 8 2 Loan
Slide 9: Canada is a top 5 market for HSBC
The HSBC Group Canada is a top 5 market for HSBC Profit contributions by largest five markets Underlying1 PBT 1H13 (USDm) Hong Kong 4,205 United Kingdom 2,231 France 486 Canada 452 India 414 1. Underlying basis eliminates effects of foreign currency translation differences, acquisitions, disposals a
Slide 10: Capital Strength Now and under CRD IV
HSBC Holdings plc Capital Strength Now and under CRD IV Core / Common Equity Tier 1 ratio USDbn 1H13 Estimated impact of CRD IV1 +2.1bn -19.2bn -15.5bn +136.5bn 0.2% 12.7% 0.2% 12.3% (1.4%) 10.1% (1.2%) 31-Dec-12 Capital RWAs 30-Jun-13 Capital RWAs 30-Jun-13 (Basel 2.5) (Basel 2.5) (CRD IV) 1 Estima
Slide 11: Customer deposits are the principal source of funding
HSBC Holdings Customer deposits are the principal source of funding With over $300bn excess deposits compared to customer loans Advances to deposits ratio USDbn Advances: -28.2bn Deposits: -23.8bn +0.8bn -7.7bn -21.4bn -10.8bn +15.6bn -28.6bn 0.1% 74.4% 1.7% 73.7% (0.6%) 0.6% (1.6%) (0.9%) 31-Dec-12
Slide 12: HSBC Bank Canada
HSBC Bank Canada HSBC >
Slide 13: Executing the Canadian Strategy
HSBC Bank Canada Executing the Canadian Strategy HSBC HBCA is a top 5 PBT contributor Canada Canada is a priority market for HSBC and remains amongst top 10 economies in the world through to 20501 Position HSBC is a leading international bank in Canada Execute HSBC Group strategy into Canada
Slide 14: Financial overview: Summary of reported results 1H13
HSBC Bank Canada Financial overview Summary of reported results 1H13 CADm 1H12 1H13 % better/(worse) Revenue1 1,295 1,115 (14) Loan impairment charges2 (107) (140) (31) Operating expenses (623) (529) 15 Shares of profit in associates 2 5 150 Profit before tax 567 451 (20) Profit after tax 420 319 (2
Slide 15: Profit before tax: Continuing cost control
HSBC Bank Canada Profit before tax Continuing cost control in challenging interest rate and risk environments 1H13 vs 1H12 CADm 567 -48 -96 58 3 451 -33 1H12 Gain on disposal Revenue² Loan Operating Associates 1H13 and restructuring Impairment Expenses costs¹ Charges³ 1 Includes 2012 gain on sale of
Slide 16: Strong capital base
HSBC Bank Canada Strong capital base Capital generated supports business and dividend growth Core1 / Common Equity Tier 1 ratio CADm Capital: +44m Risk Weighted Assets4: -201m +284m -180m -60m -198m - -3m (0.5%) (0.1%) 0.7% 0.1% 0.0% 0.0% 10.8% 10.6% 31-Dec-12 Profit² Dividend Other³ Credit risk Mar
Slide 17: Repositioning loan book while growing the deposit base
HSBC Bank Canada Repositioning (de-risking) loan book while growing the deposit base Growth in both Commercial Banking and Global Banking and Markets Advances to deposits ratio CADm Advances: -626m Deposits: +1,201m -559m 731m -798m -24m +258m +967m 1.5% 94.3% (1.1%) (1.6%) (0.5%) 90.8% 0.0% (1.8%)
Slide 18: Consistent and growing public issuance
HSBC Bank Canada Consistent and growing public issuance HSBC Bank Canada has issued CAD6.75bn since 2009 (CADbn) Issuer HSBC Bank Canada Senior Debt Fixed FRN Maturity 1-3 years 3.5-years 5-years 7-years Issue year ‘09 2010 2012 2013 0 1 2 3 4 5 6 Source: HSBC Excludes minor amount of retail focused
Slide 19: Conclusions
Conclusions HSBC >
Slide 20: Investment case
The HSBC Group Investment case Privileged access to growth opportunities Distinctive Four global businesses sharing strong commercial linkages position Lean and values driven organisation fit for the new environment Strong balance sheet generating resilient stream of earnings To be the wor
Slide 21: Contacts and further information
Contacts and further information HSBC Bank Canada HSBC Securities (Canada) Inc. Jacques Fleurant Andrew Porter Chief Financial Officer Head of Debt Capital Markets [email protected] [email protected] +1 604 641 1915 +1 416 868 7758 Jason Henderson Bob Buttke Treasurer, Head of Global Ba
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