HSBC Holdings PLC · LSE:HSBA
HSBC — Morgan Stanley European Financials Conference 2017
14 slides from HSBC's conference presentation, Mar 22, 2017
Slide 1: HSBC Holdings plc
HSBC Holdings plc Morgan Stanley, European Financials Conference 1
Slide 2: HSBC is a leading universal and global bank
HSBC is a leading universal and global bank Our global footprint Diversified global businesses and regions1 Priority Network Rep office 2016: by global business RBWM CMB GB&M GPB Adjusted revenue $18.9bn $12.9bn $14.9bn $1.7bn $50.2bn RWAs $115bn $276bn $300bn $15bn $857bn Adjusted PBT $5.3bn $6.1bn
Slide 3: Our universal banking model connects customers to opportunities
Our universal banking model connects customers to opportunities… Total revenue synergies by Global Business Revenue1 2016, USDbn Global Liquidity and Cash Management from CMB2 GB&M clients GTRF solutions from CMB 3.0 Asset management products from RBWM FX, derivatives, and capital financing
Slide 4: …as does our global footprint
…as does our global footprint Breakdown of international revenues by Global Group revenue classification Business Adjusted revenue Growth % of GB 2015-16 revenue Examples 2016 Revenue from Inter- clients with an Total national international >45% of client revenue + presence Client represents Liq
Slide 5: Gained market share
Gained market share CMB and GB&M market shares RBWM market shares Global FICC Hong Kong market 6.2% 6.5% 33.5% 34.1% mortgages6 share1 Dec-15 Aug-16 GB&M Dec-15 Dec-16 Hong Kong UK 8.2% Trade 10.8% 13.0% 7.3% mortgages7 Finance2 Improving Dec-15 Dec-16 Dec-15 Dec-16 market shares RBWM Singapore Hong
Slide 6: Revenue growth
Revenue growth Adjusted revenue by global business 2014-16 Corporate Centre USDm USDbn 51,129 During 2016, we established the Corporate Centre, 50,153 to better reflect the way we manage our businesses. Corporate centre includes Central Treasury (which 3,899 (57)% 1,665 includes Balance Sheet Manage
Slide 7: Strong balance sheet
Strong balance sheet Strong leverage ratio, % Strong Common equity tier 1 capital ratio, % Conservative Advances to deposits ratio, % 72.2 71.7 13.6 5.4 67.7 11.9 5.0 11.1 4.8 2014 2015 2016 2014 2015 2016 2014 2015 2016 7
Slide 8: Delivered consistent earnings and a stable dividend
Delivered consistent earnings and a stable dividend Consistency of profitability, 2007 to 2016 Consistency of dividends, 2007 to 2016 65% 80% In addition we completed $2.5bn share repurchases in the second half of 2016 and announced a further repurchase of up to $1.0bn to be completed in the first 4
Slide 9: Conclusion
Conclusion Group financial targets Medium term prospects remain promising Despite geopolitical uncertainties, medium term prospects ROE >10% remain promising − 3% to 4% loan growth in 2017 Positive jaws Costs (adjusted) − Rising rates and steepening yield curves in USD and HKD will benefit the Group
Slide 10: Appendix
A ppendix ects Ses
Slide 11: Appendix: 2016 Key financial metrics
Appendix: 2016 Key financial metrics Key financial metrics 2015 2016 Return on average ordinary shareholders’ equity 7.2% 0.8% Return on average tangible equity 8.1% 2.6% Jaws (adjusted) (3.7)% 1.2% Dividends per ordinary share in respect of the period $0.51 $0.51 Earnings per share $0.65 $0.07 Comm
Slide 12: Appendix: Key financial performance
Appendix: Key financial performance 4Q16 and full year ROE impacted by GPB goodwill write-off, cost to achieve investment (CTA) and FVOD; Adjusted PBT up 39% on 4Q15 Quarterly 4Q15 4Q16 Includes: $(858)m $(3,445)m $2.4bn write- We have written off the remaining goodwill in the European private banki
Slide 13: Appendix: Financial overview
Appendix: Financial overview Reconciliation of Reported to Adjusted PBT Discrete quarter 2016 4Q15 4Q16 vs. 4Q15 2015 2016 vs. 2015 Reported profit before tax (858) (3,445) (2,587) 18,867 7,112 (11,755) Includes: Currency translation 139 - (139) 840 - (840) Significant items: FVOD Fair value gains /
Slide 14: Important notice and forward-looking statements
Appendix 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 ot
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