HSBC Holdings PLC · LSE:HSBA
HSBC — Investor Day (November 2003)
17 slides from HSBC's investor day presentation, Nov 27, 2003
Slide 1: Managing For Growth: The Financial Model
Managing For Growth The Financial Model =>@ =>@A
Slide 2: Forward-looking statements
Forward-looking Forward-looking statements statements This This presentation presentation and and subsequent subsequent discussion discussion may may contain contain certain certain forward-looking forward-looking statements statements with with respect respect to to the the financial financial cond
Slide 3: Maintaining our proven financial framework
➣ In order to fully pursue the opportunities our platform for growth offers we plan to maintain our proven financial framework: • Strong Capital • Sound Liquidity • Diversified Risk • Debt Capital Market Confidence • Progressive Dividends 3 Investor Day - 27 November 2003 =>? =>
Slide 4: Strong Capital - Tier 1 Capital
Strong Capital - Tier 1 Capital 9.7 10.0 9.0 9.0 9.0 8.5 8.5 9.0 8.0 7.0 6.0 % 5.0 4.0 3.0 2.0 1.0 - 1998 1999 2000 2001 2002 H103 4 Investor Day - 27 November 2003 =>? =>
Slide 5: Source and Application of Tier 1 Capital
Source and Application of Tier 1 Capital US$m US$m Opening tier 1 capital at 1 January 1999 29,352 Attributable profits 27,786 add back: Goodwill amortisation 2,996 Cash Profits 30,782 Dividends (18,939) add back: Shares issued in lieu of dividends 3,956 (14,983) Equity capital issuance 26,384 Innov
Slide 6: How has equity been rewarded
How has equity been rewarded From TSR* 1 January 1999 209 1 January 2000 122 1 January 2001 103 1 January 2002 121 1 January 2003 135 * TSR measured to 21 Nov. 2003 6 Investor Day - 27 November 2003 =>? =>
Slide 7: Revenue, Operating and Attributable Profit per share
Revenue, Operating and Attributable Profit per share 200 180 160 Index 140 120 100 80 1998 1999 2000 2001 2002 H1 2003* Revenue Operating Profit before provisions Attributable Profit * Annualised 7 Investor Day - 27 November 2003 =>? =>
Slide 8: Liquidity
Liquidity 400,000 350,000 300,000 US$ 99 bn 250,000 US$ m 200,000 150,000 US$ 106 bn 100,000 50,000 0 DEC98 DEC99 DEC00 DEC01 DEC02 June 2003 Loans & Advances to Banks and Liquid Securities Deposits by Banks and Debt Security Liabilities 8 Investor Day - 27 November 2003 =>? =>
Slide 9: Advances to Deposits ratio
Advances to Deposits ratio 92.0% 100% 76.2% 70.4% 71.1% 80% 67.9% 68.6% 60% 40% 20% 0% 1998 1999 2000 2001 2002 H1 2003 9 Investor Day - 27 November 2003 =>? =>
Slide 10: Diversified Risk
Diversified Risk Profit Before Tax 1998 June 2003 cash basis 3.6% 15.0% 1.0% 26.6% Europe 0.6% 34.7% 43.9% Hong Kong Asia - Pacific North America 10.9% 36.9% South America 26.8% Loans & Advances June 2003 1998 Residential Mortgages 6.9% 11.6% 15.6% 25.7% 10.1% 28.4% Other Personal Commercial Trade 9
Slide 11: Risk-adjusted operating margin increased
Risk-adjusted operating margin increased 6 6 5 5 4 4 %3 %3 2 2 1 1 0 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 1H03 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 1H03 As a % of average risk weighted assets Operating profit before provisions, excluding goodwill amortisation Bad Debt Cha
Slide 12: Debt Capital Markets Performance
Debt Capital Markets Performance June 1999 June 2003 Subordinated debt (US$ bn) 11 21 Debt Securities in issue (US$ bn) 29 145 Lower tier 2 spreads June 1999 June 2003 - HSBC Holdings plc T + 158 T + 108 - RBS T + 133 T + 98 Lower tier 2 spreads following Household acquisition 13 Nov 2002 Nov 2003 -
Slide 13: Progressive Dividends
Progressive Dividends EPS Growth Dividend Growth Over 4 years 8.9% 14.5% Over 10 years 9.4% 18.5% Financial record to December 2002 Investor Day - 27 November 2003 13 =>? =>
Slide 14: Financial Model
Financial Model As % of Average RWA Cash Basis H1 2003 % Revenue 7.54% 100.0 Costs 3.86% -51.3 Operating Profit before provisions 3.68% 48.7 Provisions 1.01% -13.5 Operating Profit after provisions 2.67% 35.2 Attributable Profit 1.98% 26.3 Return on net tangible equity 24.5% Investor Day - 27 Novemb
Slide 15: Dividend Payout
Dividend Payout Dividend Payout Payout ratio Payout ratio before scrip after scrip 1998 57.0% 44.3% 1999 51.5% 39.0% 2000 54.4% 37.9% 2001 76.2% 59.4% 2002 69.7% 61.2% 2003 June 50.0% 31.1% Average for 5 years to 2002 61.8% 48.4% Investor Day - 27 November 2003 15 =>? =>
Slide 16: Scrip dividend take-up
Scrip dividend take-up 40 35 30 25 % 20 Average 15 10 5 - 1998 1st 1998 2nd 1999 1st 1999 2nd 2000 1st 2000 2nd 2001 1st 2001 2nd 2002 1st 2002 2nd 2003 1st interim interim interim interim interim interim interim interim interim interim interim Investor Day - 27 November 2003 16 =>? =>
Slide 17: Slide 17