HSBC Holdings PLC · LSE:HSBA
HSBC — Investor Day (May 2012)
18 slides from HSBC's investor day presentation, May 17, 2012
Slide 1: HSBC Holdings plc Investor Day announcement
Abc 17 May 2012 HSBC HOLDINGS PLC INVESTOR DAY The presentation given today by Sean O’Sullivan, Group Chief Operating Officer, 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,
Slide 2: Simplifying HSBC – Investor Day
May 2012 Simplifying HSBC Investor Day Sean O’Sullivan Group Chief Operating Officer
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 fu
Slide 4: Simplifying HSBC – Key Messages
Simplifying HSBC – Key Messages A Making HSBC easier to manage and control B Significant momentum in reducing headcount and costs C Strong pipeline of actions to deliver established targets 2
Slide 5: Our overall objectives
Making HSBC easier to manage and control A Our overall objectives Reduce complexity and operational risk Become more dynamic and agile Support the achievement of positive jaws Improve our CER from the 2010 baseline of 55% to 48-52% 3
Slide 6: Our vision
Making HSBC easier to manage and control A Our vision Make HSBC easier to manage and control For our People For our Customers For our Shareholders HSBC Globally managed Efficient and Effective Lower risk 4
Slide 7: How HSBC will be different
Making HSBC easier to manage and control A How HSBC will be different Focus on 22 ‘Home’ and Growth Cohesive and Fragmented Priority markets Focused Complex 15 management layers to 8 Simplified Management Management Structures Span of control from 5.8 to 8 Structures Federated Global Business Target
Slide 8: Headcount reduced by c.8.4k FTE in 2011 and c.4.1k in 1Q2012
Momentum in reducing headcount and costs B Headcount – We have reduced headcount by c.8.4k FTE in 2011 and c.4.1k FTE in 1Q2012 2011 Achieved 1Q 2012 Achieved Four Programmes FTE (000) Implement 1 consistent business 2.0 2.0 4.0 models Re-engineer Global 2 2.6 0.9 3.5 Functions Re-engineer 3 operati
Slide 9: Overall headcount reduced by c.14k FTE over the last 12 months
Momentum in reducing headcount and costs 1 B Headcount – Overall headcount reduced by c.14k FTE over the last 12 months Group FTE ‘000s 299 296 294 288 285 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 (1) c.14k FTE reduction includes reduction of c.12.5K from the Four Programmes and c.1.5K from transactions and US
Slide 10: Sustainable cost savings of c.USD0.9bn in 2011 and c.USD0.3bn in 1Q 2012
Momentum in reducing headcount and costs B Costs – We delivered sustainable costs savings of c.USD0.9bn in 2011 and c.USD0.3bn in 1Q 2012 2011 Achieved 1Q 2012 Achieved Four Programmes USDbn Implement 1 consistent business 0.1 0.1 0.2 models Re-engineer Global 2 0.2 0.1 0.3 Functions Re-engineer 3 o
Slide 11: Recorded Sustainable Cost Saves of USD1.2bn
Momentum in reducing headcount and costs B Recorded Sustainable Cost Saves of USD1.2bn – annualised benefits of USD2bn USDbn Annualised benefits Sustainable savings from actions taken in 1.3 2011 Sustainable savings from actions taken in 0.7 1Q 2012 Total sustainable savings 2.0 9
Slide 12: Actions that transcend the Four Programmes
Momentum in reducing headcount and costs B Actions that transcend the Four Programmes – making us easier to manage and control Key Drivers 1 2 De-layering the Organisation Implementing ‘8x8’ model across the Implement Consistent Re-engineer organisation Global Business USD 1bn of cost reduction
Slide 13: B1 Implement Consistent Business Models
Momentum in reducing headcount and costs B1 Implement Consistent Business Models Results Future Actions Standard Global Business Models Implement in all markets Sustainable savings – USD 200m Realign resources to growth markets Reduced headcount by c.4k FTE Rationalise and standardise th
Slide 14: B2 Re-engineer Global Functions
Momentum in reducing headcount and costs B2 Re-engineer Global Functions Results Future Actions Simplified global structure in 8 Complete 8 x 8 in all key markets markets during 2012 Sustainable savings – USD 350m Process re-engineering programmes within Global Functions Reduced headcount
Slide 15: B3 Re-engineer Operational Processes
Momentum in reducing headcount and costs B3 Re-engineer Operational Processes Results Future Actions Sustainable savings – USD 430m Focus on 30 end to end re- engineering programmes Reduced headcount by c.3.3k FTE Contact Centre Optimisation – USD 80m Reduced paper consumption by 14% 13
Slide 16: B4 Streamline IT
Momentum in reducing headcount and costs B4 Streamline IT Results Future Actions Sustainable savings – USD 280m Total IT spend to reduce from more than 14% to 12% of total Group costs Reduced headcount by c.3.3k FTE (including c.1.8k contractors) Change the Bank re-engineering – USD 40m Of
Slide 17: A strong pipeline of actions to deliver on the USD2.5-3.5bn target
Strong pipeline of actions C A strong pipeline of actions to deliver on the USD2.5-3.5bn target USDbn Sustainable Total Savings Confirmed (Booked & Target Four Programmes (Booked)1 Pipeline Pipeline) by 2013 Implement consistent 0.2 0.6 0.8 0.9 business models Key actions in pipeline Re-engineer D
Slide 18: Simplifying HSBC – Key Messages
Simplifying HSBC – Key Messages A Making HSBC easier to manage and control B Significant momentum in reducing headcount and costs C Strong pipeline of actions to deliver established targets 16