HSBC Holdings PLC · LSE:HSBA
HSBC — Investor Day (May 2011)
17 slides from HSBC's investor day presentation, May 11, 2011
Slide 1: HSBC Holdings plc Investor Day announcement
Abc 11 May 2011 HSBC HOLDINGS PLC INVESTOR DAY The presentation given today by Niall Booker, Chief Executive North America, is attached and will be available to view at www.hsbc.com. ends/all Registered Office and Group Head Office: This news release is issued by 8 Canada Square, London E14 5HQ, Uni
Slide 2: North America Investor Day
11 May 2011 North America Investor Day Niall Booker Chief Executive North America
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: Why we need to be in North America
Key trends for North America Why we need to be in North America Overview Long-term trends US and Canada account for 26% of ■ The region remains materially world GDP in 2010 relevant: In 2050, the combined International trade hubs with c.11% of GDP forecast for US and Canada is Economic comparabl
Slide 5: US trade with key Faster Growing Markets expanding rapidly
Key trends for North America US trade with key Faster Growing Markets expanding rapidly CAGR US Trade with NAFTA US Trade with mainland China US Trade with Brazil USDbn USDbn USDbn +3% 918 +15% 653 457 +7% 59 116 29 2000 2010 2000 2010 2000 2010 Source: US Census Bureau 132
Slide 6: HSBC position in North America
HSBC position and competitive advantages HSBC position in North America North America results1 Reported PBT, USDbn, 2010 Bermuda 1.6 0.2 Canada US loss of USD545m is 0.9 significantly reduced 1.3 0.5 0.5 US from 2009 due to 0.1 0.4 0.1 improvements in loan impairment charges Canada contributed U
Slide 7: HSBC Position in North America
HSBC position and competitive advantages HSBC Position in North America Contrasting performance, opportunities and challenges across North American businesses A HSBC Canada B HSBC Bank USA C HSBC Finance A good record of satisfactory A record of underperformance Cards has been profitable retur
Slide 8: Canada – Invest in internationally connected growth
Strategic directions and actions A Canada – Invest in internationally connected growth No other international bank has our domestic presence, no Canadian bank has our international reach CMB RBWM Pursue sizeable opportunity for revenue growth Pursue growth in Premier proposition in Eastern Canad
Slide 9: HSBC Bank USA – Boost international connectivity
Strategic directions and actions B HSBC Bank USA – Boost international connectivity Satisfy the international needs of US clients and the US needs of international clients CMB RBWM Continue expansion in metropolitan areas with Reposition and right-size branch network to strong international conn
Slide 10: Focus US branch network on internationally connected metro areas
Strategic directions and actions B Focus US branch network on internationally connected metro areas Eighteen metro areas exported more than USD10bn in merchandise in 2009 HSBC’s US network increasingly aligned with internationally connected metro areas Since 2003, 125 branches have been opened i
Slide 11: HSBC Finance – Focus on reducing RWAs
Strategic directions and actions C HSBC Finance – Focus on reducing RWAs Committed to reviewing opportunities to release & reallocate capital to internationally connected businesses Cards Consumer and Mortgage Lending Strong performance throughout the cycle, but Continue to run-off ethically and
Slide 12: Integrated Americas platform for Global Businesses
Strategic directions and actions D Integrated Americas platform for Global Businesses Focus on sustainable growth across the Americas region GBM GPB Strengthen New York as a hub for the GBM Sell Faster Growing Markets products to business across the Americas domestic and international clients
Slide 13: Refocus and rationalise cost base to support strategic businesses
Strategic directions and actions Refocus and rationalise cost base to support strategic businesses US restructuring programme Sustainable cost savings Example initiatives, USDm Maintain strong focus on compliance and Implement consistent business models risk management – Redesign organisation 15
Slide 14: North America Key take-aways
Key take-aways North America Competitive advantages Ability to connect Mature and Faster Growing Markets Leverage global network and skill sets in CMB and GBM Focus on companies conducting international trade, diasporas and internationally connected individuals with wealth Target RoRWA 0.8%-1.3% Str
Slide 15: 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 16: 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 17: 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