HSBC Holdings PLC · LSE:HSBA
HSBC — Investor Presentation (March 2015)
20 slides from HSBC's investor presentation, March 2015
Slide 1: Commercial Banking Investor Update
Commercial Banking Investor Update Simon Cooper – Group Managing Director, CEO of Global Commercial Banking March 2015
Slide 2: Important notice and forward-looking statements
Important notice and forward-looking statements Important notice The information set out in this presentation and subsequent discussion does not constitute a public offer for the purposes of any applicable law or an offer to sell or solicitation of any offer to purchase any securities or other finan
Slide 3: Contents
Contents 2014 Financial Results 2015 CMB Priorities Appendix 3
Slide 4: Group key messages for 2014
Group key messages for 2014 Highlights Reported and Adjusted2 PBT (USDm) § Reported PBT of USD18,680m included fines, settlements, UK customer redress, and associated provisions of USD3,709m Adjusted2 PBT § 2014 adjusted revenue1 of USD62,002m and adjusted2 PBT of broadly unchanged USD22,829m broadl
Slide 5: Group annual results 2014 Financial highlights
Group annual results 2014 Financial highlights1 Summary financial highlights, USDbn Better/(worse) 2013 2014 2014 vs 2013 Reported PBT 22.6 18.7 (17)% Adjusted2 PBT 23.0 22.8 (1)% Key ratios, % 2013 2014 KPI Return on average ordinary shareholders’ equity 9.2% 7.3% 12-15% Return on average tangible
Slide 6: Group revenue analysis
Group revenue analysis Adjusted revenue1 broadly unchanged, growth in CMB Reported and Adjusted1 revenue 2014 vs 2013 Adjusted1 revenue by 2014 vs 2013 Adjusted1 revenue by (USDm) Global Business (USDm) Global Business (USDm) Adjusted revenue1 Personal broadly Principal lending unchanged (212) (1)%
Slide 7: Global CMB financials: Reconciliation of Reported to Adjusted
Global CMB financials: Reconciliation of Reported to Adjusted1 Record Reported profit before tax of USD8.7bn Reported and Adjusted1 PBT (USDm) Reported and Adjusted revenue2 Reported and Adjusted1 operating (USDm) expenses (USDm) Adjusted Adjusted1 revenue2 Adjusted1 PBT up USD833m operating expense
Slide 8: Detailed Global CMB financials
Detailed Global CMB financials1 2013 2014 2014 vs 2013 2014 vs 2013 comments (USDbn) § Growth primarily in Credit & Lending in Asia reflecting demand for credit, and also in Europe where balances increased in the UK. In addition, CRE and 10% corporate balances were higher in the US from continued bu
Slide 9: Revenue evolution by Product and Region
Revenue evolution by Product and Region1 Revenue growth, notably in our home markets of Hong Kong and the UK Revenue2 by product (USDm) Revenue by region (USDm) 2013 2014 2014 vs 2013 2013 2014 2014 vs 2013 Markets products, Insurance & 4% -3% 2,298 MENA Investments & Other 2,207 North 7% 2% America
Slide 10: Operating environment: Strong lending growth of 10% year on year
Operating environment Strong lending growth of 10% year on year Global GDP forecast to grow … However, external factors remain challenging 4% Real GDP growth (%)1 3% • Macro: • Mixed global economic picture 2% • Interest rates remain low 1% 2011 2012 2013 2014 2015 • Oil price slowdown • Impact of s
Slide 11: Operating environment: Signs of recovery in asset spreads and lower LICs
Operating environment Signs of recovery in asset spreads and lower year on year LICs Spread compression slowed Portfolio quality remains strong Total CMB Assets Spread Total CMB LICs1 (USDm) 0 1,200 1.4% 0 1,000 1.2% 1.0% 0 800 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 0.8% 600 0.6% GTRF Asset Spreads
Slide 12: Global Trade and Receivables Finance
Global Trade and Receivables Finance HSBC continues to be the world’s leading Trade Finance Bank Challenging external environment GTRF lending growth offsets spread compression2 165 USD USD 135 2.6bn 2.7bn Overall merchandise exports remained broadly flat over the last 3 years 105 2009 2010 2011 201
Slide 13: Payments and Cash Management
Payments and Cash Management PCM growing liabilities to support the CMB balance sheet Liability balances continue to grow despite low PCM Liabilities Balances1 interest rate environment +12%2 PCM Liabilities Balances (USDbn) USD 12-m Libor Rates 350 1.0 LATAM CAGR 9%2 NAM 0.8 MENA 300 HK 0.6 Asia ex
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Slide 15: Contents
Contents 2014 Financial Results 2015 CMB Priorities Appendix 15
Slide 16: Group Strategy 2015-2016
Group Strategy 2015-2016 Executing the three equally weighted priorities in CMB CMB Strategic priorities Investment priorities for CMB • Providing consistency and efficiency for our § Roll-out a consistent International RM model Business customers through a business model organised in top 12 priorit
Slide 17: Contents
Contents 2014 Financial Results 2015 CMB Priorities Appendix 17
Slide 18: Group other significant items excluded from adjusted profit before tax
Appendix Group other significant items1 excluded from adjusted profit before tax USDm For the year-ending 31 December 2013 2014 Includes the following significant items (reported basis): Revenue Restructuring and repositioning: Net gain on completion of Ping An disposal 553 - FX gains relating to th
Slide 19: CMB Income Statement
CMB Income Statement1 USDm For the year-ending 31 December 2013 2014 Net interest income 9,900 10,515 Net fee income 4,643 4,733 Net trading income 621 617 Other income 315 447 Net operating income before loan impairment charges and other credit risk provisions 15,479 16,312 Loan impairment charges
Slide 20: Cover images: HSBC – then and now
Cover images: HSBC – then and now It is 150 years since HSBC was founded in Hong Kong to finance trade between Asia and Europe. Much has changed since then, as our cover photos demonstrate. The left photo shows Hong Kong harbour, with the HSBC office (extreme left) a few years after it was establish