HSBC Holdings PLC · LSE:HSBA
HSBC — Q3 2014 Earnings Presentation
19 slides from HSBC's earnings presentation, Nov 3, 2014
Slide 1: Overseas Regulatory Announcement
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Slide 2: Third Quarter 2014 Results Audio Webcast and Conference Call
Abc 3 November 2014 HSBC HOLDINGS PLC THIRD QUARTER 2014 RESULTS AUDIO WEBCAST AND CONFERENCE CALL There will be an audio webcast presentation and conference call today for investors and analysts. The speakers will be: Stuart Gulliver, Group Chief Executive; and Iain Mackay, Group Finance Director.
Slide 3: HSBC Holdings plc 3Q 2014 Results
HSBC Holdings plc 3Q 2014 Results Presentation to Investors and Analysts
Slide 4: 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, capital position and business of the Group. These forward-looking statements represent the Group’s expectations or bel
Slide 5: Key messages
Key messages 3Q14 highlights Reported PBT 9M14 vs 9M13 (US$m) Global Business Reported PBT of US$4,609m up US$79m on prior year and included PBT1 up US$1,230m fines, settlements and UK customer redress of US$1.8bn 16,949 Global Business PBT1 of US$6,641m up US$873m versus 3Q13 18,601 587 Conti
Slide 6: 3Q 2014 results Financial highlights
3Q 2014 results Financial highlights1 Summary financial highlights, US$m Better / (worse) Better / (worse) 3Q13 3Q14 3Q14 vs 3Q13 9M13 9M14 9M14 vs 9M13 Reported PBT 4,530 4,609 79 18,601 16,949 (1,652) Underlying2 PBT 5,004 4,409 (595) 18,014 16,969 (1,045) Significant items3 included in underlying
Slide 7: Profit before tax analysis
Profit before tax analysis Increase in Global Business PBT1 in 3Q14 compared with 3Q13 Reported PBT (US$m) 3Q14 vs 3Q13 Global Business PBT1 (US$m) % Global Business PBT1 up US$873m 8,434 4,609 2 6,785 Revenue 547 4% 831 477 5,637 160 5,555 200 4,530 3,964 252 LICs 842 53% 365 Risk, 7,126 compliance
Slide 8: Revenue analysis
Revenue analysis Global Business revenues1 increased from growth in CMB and GB&M Reported revenue2 (US$m) 9M14 vs 9M13 Global Business revenue1 9M14 vs 9M13 Global Business revenue1 (US$m) (US$m) Global Business % Revenue1 up US$476m Personal lending 49,450 Principal RBWM (81) - Current accounts, 46
Slide 9: Balance sheet analysis
Balance sheet analysis Sustained growth in customer lending Loans and advances to customers1 (US$bn) 3Q14 vs 4Q13 Loans and advances to customers (US$bn) 1,013 1,029 % 926 946 962 973 988 Principal RBWM 4 1% 280 293 298 244 256 263 267 RBWM US run-off portfolio (4) (14)% 276 290 292 295 307 317 286
Slide 10: Loan impairment charges
Loan impairment charges1 Lower loan impairment charges primarily in Europe, North America and Latin America. Stable in Asia Loan impairment charges (US$m) 4,562 4,562 315 1,851 2,599 2,599 1,839 185 949 1,482 971 328 2,374 356 1,469 1,430 387 Of which is US 545 57 404 run-off portfolio 9M13 9M14 9M1
Slide 11: Operating expenses analysis
Operating expenses analysis Higher Global Business operating expenses1 driven by inflation and increases in risk, compliance and related costs Reported operating expenses (US$m) 9M14 vs 9M13 operating expenses1 Global Business operating expenses1 Global Business (US$m) % Drivers (US$bn) up US$1,329m
Slide 12: Capital adequacy
Capital adequacy Movement in common equity tier 1 capital (US$bn) Common equity tier 1 ratio movement (%) CRD IV Yr1 Trans End point 0.3 At 30 June 2014 140.1 141.6 0.1 11.4 0.1 11.3 (0.2) 0.1 Profit for the period 3.4 3.4 11.2 (0.1) 11.2 Foreseeable third interim dividend net (0.1) (0.2) (1.7) (1.7
Slide 13: 11
11
Slide 14: Appendix
Appendix 12
Slide 15: Reconciliation of Reported to Underlying results
Financial overview Reconciliation of Reported to Underlying results US$m 9M14 9M13 3Q14 3Q13 Reported profit before tax 16,949 18,601 4,609 4,530 FVOD1 15 594 (200) 575 Gain on de-recognition of Industrial Bank as an associate - (1,089) - - Gain on sale of associate shareholding in Bao Viet Holdings
Slide 16: Significant items included in underlying profit before tax
Financial overview Significant items included in underlying profit before tax US$m 9M14 9M13 3Q14 3Q13 Underlying profit before tax 16,969 18,014 4,409 5,004 Includes the following significant items (reported basis): Revenue Volatility: Debit valuation adjustment on derivative contracts (278) 300 (1
Slide 17: Income statement
Income statement US$m 9M14 9M13 3Q14 3Q13 Net interest income 26,158 26,533 8,753 8,714 Net fee income 12,239 12,441 4,062 4,037 Net trading income 5,570 7,645 2,295 1,283 Net income / (expense) from financial instruments designated at fair value 1,916 250 256 1,447 Gains less losses from financial
Slide 18: Balance sheet
Balance sheet US$m 30 Sept 2014 30 Jun 2014 31 Dec 2013 Assets Cash and balances at central banks 133,424 132,137 166,599 Trading assets 331,642 347,106 303,192 Financial assets designated at fair value 29,729 31,823 38,430 Derivatives 308,611 269,839 282,265 Loans and advances to banks 124,756 127,
Slide 19: The view from HSBC
The view from HSBC Building, 8 Century Avenue, Pudong, Shanghai The view from HSBC Main Building, 1 Queen’s Road Central, Hong Kong SAR The view from HSBC Group Head Office, 8 Canada Square, London Cover images: internationalisation of the renminbi The images show the views from HSBC’s head offices