HSBC Holdings PLC · LSE:HSBA
HSBC — H1 2008 Earnings Presentation
68 slides from HSBC's earnings presentation, Aug 5, 2008
Slide 1: HSBC Holdings plc Interim Results 2008
HSBC Holdings plc Interim Results 2008 Presentation to Investors and Analysts
Slide 2: 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 3: Reported results
Reported results Profit before tax Attributable profit US$10.2bn, down 28% US$7.7bn, down 29% (down 22% excl. dilution gains in 1H07) (down 22%, excl. dilution gains in 1H07) Earnings per share Return on total shareholders’ equity US$0.65, down 32% 12.1% compared to 19.1% (down 24% excl. dilution ga
Slide 4: Performance in 1H08
Performance in 1H08 • Resilient performance in most difficult market for several decades • Balance of earnings between markets and businesses helped cushion market turmoil • Profitable in all our Customer Groups, including Global Banking and Markets • Profitable across all our Geographies, with the
Slide 5: Douglas Flint: Financial performance in first half 2008
Douglas Flint Financial performance in first half 2008
Slide 6: Summary of results
Summary of results % Change (US$m) 1H07 1H08 vs 1H07 Net operating income before loan impairment charges 38,493 39,475 +3 Loan impairment charges (6,346) (10,058) +58 Net operating income 32,147 29,417 -8 Total operating expenses (18,611) (20,140) +8 Profit before tax 14,159 10,247 -28 Profit attrib
Slide 7: Underlying growth, 1H08 vs 1H07
Underlying growth, 1H08 vs 1H07 1H07 1H07 Dilution gains2 restated, excl Rest of % US$m restated1 and disposals dilution gains 1H08 Acquisitions HSBC Change Net operating income before loan impairment charges 39,824 1,114 38,710 39,475 68 39,407 +2 Loan impairment charges (6,470) - (6,470) (10,058)
Slide 8: Underlying growth, 1H08 vs 2H07
Underlying growth, 1H08 vs 2H07 2H07 2H07 Dilution gains2 restated, excl Rest of % US$m restated1 and disposals dilution gains 1H08 Acquisitions HSBC Change Net operating income before loan impairment charges 40,827 72 40,755 39,475 13 39,462 -3 Loan impairment charges (10,918) - (10,918) (10,058) -
Slide 9: Special factors
Special factors US$m 1H07 2H07 1H08 Profit before tax 14,159 10,053 10,247 Dilution gains1 1,076 16 - Fair value of own debt – change in credit spread 172 2,883 824 Goodwill impairment (North America PFS) - - (527) Global Banking and Markets write-downs - (2,135) (3,931) Profit before tax, adjusting
Slide 10: Balance sheet growth
Balance sheet growth US$bn 1,400 +6% % 2 +6% +12 $1,231 % +7% 2 1,200 $1,165 +12 $1,162 1 +6% $1,096 $1,042 $1,049 $982 $981 1,000 $928 800 600 400 200 0 30-Jun-07 31-Dec-07 30-Jun-08 30-Jun-07 31-Dec-07 30-Jun-08 30-Jun-07 31-Dec-07 30-Jun-08 Risk weighted assets Customer loans and advances Custome
Slide 11: Capital strength continues
Capital strength continues Tier 1 capital ratios (%), Basel II 10% 8.7% 8.8% 9% 0.9% 1.1% 8% 0.3% 0.2% 7% 6% 5% 4% 7.5% 7.5% 3% 2% 1% 0% 31-Dec-07 30-Jun-08 Core Equity Tier 1 Preference share capital Innovative Tier 1 capital 11
Slide 12: Credit quality
Credit quality US$m % of avg advances annualised Loan impairment charges 1H07 2H07 1H08 1H07 2H07 1H08 Personal Financial Services Europe 1,127 917 963 1.53 1.21 1.28 Hong Kong 74 101 34 0.40 0.51 0.17 Rest of Asia-Pacific 252 300 375 1.68 1.80 2.09 North America 3,774 8,135 6,952 3.46 7.35 6.68 Lat
Slide 13: Credit quality
Credit quality US$m % of avg advances annualised Loan impairment charges 1H07 2H07 1H08 1H07 2H07 1H08 Commercial Banking Europe 256 259 285 0.61 0.53 0.53 Hong Kong 1 27 28 0.01 0.21 0.20 Rest of Asia-Pacific 54 7 (16) 0.46 0.05 (0.09) North America 46 145 156 0.27 0.77 0.81 Latin America 74 138 11
Slide 14: Write-downs in Global Banking and Markets
Write-downs in Global Banking and Markets A. Trading 1H08 Net exposure at 2H07 Net exposure at US$bn write-downs 30 June 08 write-downs 31 Dec 07 Sub-prime mortgage-related assets 1.0 2.9 1.0 3.7 Non-sub-prime credit trading assets 1.4 8.9 0.6 9.8 Leveraged loans 0.3 8.3 0.2 8.7 Fair value of deriva
Slide 15: Write-downs in Global Banking and Markets
Write-downs in Global Banking and Markets B. Available for sale ‘Asset Backed Securities’ exposure Available for sale reserve relating Impairment to Balance Subprime to subprime subprime sheet HELOC HELOC HELOC exposure Alt-A exposure Alt-A exposure Alt-A exposure US$bn 30 June 2008 30 June 2008 30
Slide 16: Market risk management
Market risk management Daily Group VAR (trading and non-trading) (US$m) Daily distribution of Global Markets' revenues (US$m) 250 25 20 200 20 16 14 No of days 150 15 12 11 100 10 8 7 7 6 4 5 4 4 50 5 3 2 2 1 1 1 1 0 0 -174-162 -106 -94 -82 -70 -58 -46 -34 -22 -10 2 14 26 38 50 62 74 86 98 110122 De
Slide 17: Michael Geoghegan: Business performance in first half 2008
Michael Geoghegan Business performance in first half 2008
Slide 18: Measuring our success
Measuring our success Good progress on key metrics Financial measures Target range 1H08 Return on total shareholders’ equity 15-19% through the cycle 12.1% Cost efficiency ratio 48-52% 51.0% Tier 1 capital (Basel II) 7.5-9.0% 8.8% Total shareholder return Above peer group average Top 5 18
Slide 19: Profitable in all Geographies – with the continuing exception of the US
Profitable in all Geographies – with the continuing exception of the US Profit (loss) before tax % change Geography % share 1H08 vs 1H07 1H08 vs 2H07 Asia 65% +0 +0 Latin America 12% +27 +7 Europe 51% +28 +14 North America (28%) -219 -23 -250 -200 0 50 100 -40 -20 0 20 Profit before tax % change Cus
Slide 20: Strong growth across Asia
Strong growth across Asia1 Profit before tax of US$6.7bn Profit before tax % change Customer Group US$m 1H08 vs 1H072 1H08 vs 2H072 Other -623 (-9%) Personal Financial Services +14 -6 177 (3%) Commercial Banking +35 +14 2,742 (41%) 2,571 (38%) Global Banking and Markets +53 +22 Private Banking -18 -
Slide 21: Solid results in Hong Kong against exceptional 2007
Solid results in Hong Kong against exceptional 2007 Profit before tax of US$3.1bn Profit before tax % change Customer Group US$m 1H08 vs 1H07 1H08 vs 2H07 Other -725 (-23%) Personal Financial Services +7 -12 123 (4%) Commercial Banking +14 +1 Global Banking and Markets +10 -13 770 (25%) Private Bank
Slide 22: Record performance in Rest of Asia-Pacific, excluding Middle East
Record performance in Rest of Asia-Pacific, excluding Middle East Profit before tax of US$2.6bn Profit before tax % change Customer Group US$m 1H08 vs 1H071 1H08 vs 2H071 Personal Financial Services +44 +13 57 (2%) 326 (12%) Commercial Banking +73 +33 52 (2%) Global Banking and Markets +75 +42 653 (
Slide 23: Rest of Asia-Pacific footprint delivers strong growth
Rest of Asia-Pacific footprint delivers strong growth1 Profit before tax 1H08 by country % change 2 Profit before tax , US$m 1H07 2H07 1H08 1H08 vs 1H07 1H08 vs 2H07 Rest of Asia-Pacific, excluding Middle East 1,662 1,959 2,634 +58 +34 Australia 51 73 100 +96 +37 India 299 230 371 +24 +61 Indonesia
Slide 24: Exceptional growth in the Middle East
Exceptional growth in the Middle East Profit before tax of US$990m Profit before tax % change Customer Group US$m 1H08 vs 1H07 1H08 vs 2H07 Personal Financial Services +67 +74 2 (0%) 45 (5%) 209 (21%) Commercial Banking +40 +18 Global Banking and Markets +97 +53 426 (43%) Private Banking +100 Other
Slide 25: Balance sheet driven growth in Latin America
Balance sheet driven growth in Latin America Profit before tax of US$1.3bn Profit before tax % change Customer group US$m 1H081H08 vs 1H07 vs 1H07 1H08 vs 2H07 Other -4 (0%) Personal Financial Services +21 -7 8 (1%) Commercial Banking +17 +6 383 (30%) 468 (37%) Global Banking and Markets +51 +45 Pri
Slide 26: Tight cost control and brand strength help grow profit in Europe
Tight cost control and brand strength help grow profit in Europe – Profit before tax of US$5.2bn Profit before tax % change Customer Group US$m 1H08 vs 1H07 1H08 vs 2H07 Personal Financial Services +119 +36 144 (3%) 579 (11%) 1,324 (26%) Commercial Banking +57 +52 Global Banking and Markets -29 +40
Slide 27: North America continues to suffer from weak economy and market turmoil
North America continues to suffer from weak economy and market turmoil – Loss before tax of US$2.9bn Profit (loss) before tax % change Customer Group US$m 1H08 vs 1H07 1H08 vs 2H07 Personal Financial Services (2,050) -238 +32 Commercial Banking 430 -10 -3 Global Banking and Markets (1,625) -473 -16
Slide 28: Personal Financial Services
Personal Financial Services Weak US performance offsets good growth in other Geographies % chg US PFS Rest of Group PFS US$m 1H08 vs 1H07 vs 2H07 Net operating income before 1H08-2.2bn 1H08 4.5bn loan impairment charges 22,422 +7 - +33% 1H07 1.3bn 1H07 3.4bn Loan impairment charges (9,384) +58 -8 -3
Slide 29: HSBC Finance Corporation: Continued reduction of exposure in the US
HSBC Finance Corporation Continued reduction of exposure in the US • Delinquencies continued to rise broadly in line 180 170.6 168.3 with expectations Customer loans1 167.9 167.3 170 • Continued to tighten underwriting standards in 161.0 US$bn 160 156.6 all businesses 150 • Reduced size of loan port
Slide 30: HSBC Finance Corporation: US Mortgages
HSBC Finance Corporation US Mortgages – continuing to shrink the Mortgages Services portfolio Mortgage Services Consumer Lending 60 60 50.2 47.6 48.8 49.9 49.9 49.0 46.7 50 50 41.5 US$bn US$bn 38.9 Loans 36.2 33.9 40 40 31.4 30 30 20 20 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 14%
Slide 31: HSBC Finance Corporation: Management action helps trends in cards
HSBC Finance Corporation Management action helps trends in cards Cards Private Label 40 40 29.3 29.9 31.0 29.4 29.3 27.8 US$bn US$bn 30 30 Loans 17.3 17.4 17.7 18.7 17.4 17.4 20 20 10 10 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 8% 1.8 1.8 1.7 2 4% 3.2% 3.4% 3.6% 3.6% 1 1.6 2+ deli
Slide 32: HSBC US Finance Corporation: Vehicle Finance will be run off
HSBC US Finance Corporation Vehicle Finance will be run off Unsecured Personal Credit Vehicle Finance 30 20 18.4 18.5 18.5 18.1 17.5 12.6 12.7 12.9 12.9 12.8 12.5 20 16.8 US$bn US$bn Loans 10 10 0 0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 20% 2.6 2.6 2.6 3 4% 3.5% 3.7% 3.5% 1 2+
Slide 33: Commercial Banking
Commercial Banking Another strong performance from a core business % chg • Strong profit growth (+35%), even excluding US$m 1H08 vs 1H07 vs 2H07 card acquiring gain (+22%) Net operating income before • Growth strong in the Middle East, Asia-Pacific loan impairment charges 8,156 +24 +11 and Brazil. S
Slide 34: Global Banking and Markets
Global Banking and Markets Emerging markets strength helped business remain profitable in difficult market conditions % chg • 35% decline in PBT after write-downs of US$m 1H08 vs 1H 07 vs 2H07 US$3.9bn. Improved performance since 2H07 Net operating income before • ‘Emerging markets-led and financing
Slide 35: Global Banking and Markets
Global Banking and Markets Strength in emerging markets, improvement in profit from 2H07 and resilient revenues across our businesses Regional mix Growth in profit before tax (%) Profit (loss) before tax 1H08 US$m % 1H08 vs 1H07 Asia 2,742 102 Asia +53 Latin America 383 14 Latin America +51 Europe 1
Slide 36: Private Banking
Private Banking Continued profit growth % chg • PBT up 5% with strong performances in US$m 1H08 vs 1H07 vs 2H07 Switzerland and Monaco Net operating income before • Success with inward referrals from other loan impairment charges 1,916 +12 +5 Customer Groups resulted in US$3.4bn of Loan impairment r
Slide 37: Insurance
Insurance Continued success in difficult market conditions PBT by region • Insurance contributed US$1.6bn, 16% of Group 0.6 profit before tax, up 4% on 1H07 • Strong bancassurance performance: US$bn 0.3 – Net earned premiums up 30% to US$5.2bn – Europe up 54% (excl. acquisition & disposals up 21%) –
Slide 38: Growing revenue and improving efficiency through Joining Up the Company
Growing revenue and improving efficiency through Joining Up the Company • HSBC Premier: 2.4m customers each generating more than US$2,000 annualised revenues. 208,000 new customers in 1H08 Revenue • Global Links: Cross border referrals increased by 126% in number and 83% in value to US$5.6bn • Globa
Slide 39: Key highlights of first half performance
Key highlights of first half performance Geographic performance Customer Group performance • Europe benefited from good cost control • Good growth in Personal Finance Services, excl. (PBT +28%) US (PBT +33%) • Exceptional growth in Middle East (PBT +63%) • Commercial Banking, strong performance (PBT
Slide 40: Stephen Green: Outlook
Stephen Green Outlook HSBC <> The world’s local bank
Slide 41: Outlook
Outlook The World HSBC • Near-term outlook remains negative • Our strategy continues to be aligned with significant uncertainty with global trends • Pressure from inflation on growth in • Advantages: some fast-growing economies – Strong brand • Decline in credit availability as – Capital and liquidi
Slide 42: Appendix
Appendix HSBC <> The world’s local bank
Slide 43: Appendix contents
Appendix contents Asia 44 Hong Kong 45 Rest of Asia-Pacific (excl. Middle East) 46 Middle East 47 Latin America 48 North America 49 Europe 50 Profit (loss) before tax by country 51-52 Personal Financial Services 53 Commercial Banking 54 Global Banking and Markets 55 Private Banking 56 HSBC Finance C
Slide 44: Asia
Asia Business mix Growth in profit before tax (%)1 Profit before tax, 1H08, US$m 1H08 vs 1H07 Other -623 (-9%) Personal Financial Services +14 177 (3%) Commercial Banking +35 Global Banking and Markets +53 2,742 (41%) 2,571 (38%) Private Banking -18 Other n/a Total +20 1,830 (27%) US$6,697m -40 -20
Slide 45: Hong Kong
Hong Kong Business mix Growth in profit before tax (%) Profit before tax, 1H081, US$m 1H08 vs 1H07 Personal Financial Services +7 123 (4% ) Other -725 (-23%) Commercial Banking +14 Global Banking and Markets +10 770 (25% ) 3 Private Banking -24 2,036 (66% ) 1 Other -290 869 (28% ) Total -8 US$3,073m
Slide 46: Rest of Asia-Pacific (excl. Middle East)
Rest of Asia-Pacific (excl. Middle East) Business mix Growth in profit before tax (%)1 Profit before tax, 1H08, US$m 1H08 vs 1H07 Personal Financial Services +44 57 (2% ) 52 (2% ) 326 (12% ) Commercial Banking +73 Global Banking and Markets +75 653 (25% ) Private Banking -5 Other-53 1,546 (59% ) Tot
Slide 47: Middle East
Middle East Business mix Growth in profit before tax (%) Profit before tax, 1H08, US$m 1H08 vs 1H07 Personal Financial Services +67 45 (5% ) 2 (0% ) 209 (21% ) Commercial Banking +40 Global Banking and Markets +97 Private Banking +100 426(43% ) Other +2 308 (31% ) Total +63 US$990m 0 20 40 60 80 100
Slide 48: Latin America
Latin America Business mix Growth in profit before tax (%) Profit before tax, 1H08, US$m 1H08 vs 1H07 Personal Financial Services +21 Other -4 (0%) 8 (1% ) Commercial Banking +17 383 (30% ) Global Banking and Markets +51 468 (37% ) Private Banking -20 Other n/a Total +27 411 (32% ) US$1,266m -40 -20
Slide 49: North America
North America Business mix Growth in profit before tax (%) Profit (loss) before tax, US$m 1H07 1H08 1H08 vs 1H07 Personal Financial Services -238 Personal Financial Services 1,488 (2,050) Commercial Banking -10 Commercial Banking 477 430 Global Banking and Markets 436 (1,625) Global Banking and Mark
Slide 50: Europe
Europe Business mix Growth in profit before tax (%) Profit before tax, 1H08, US$m 1H08 vs 1H07 Personal Financial Services +119 144 (3% ) Commercial Banking +57 579 (11% ) 1,324 (26% ) Global Banking and Markets -29 Private Banking +17 1,190 (23% ) Other +235 Total +28 1,940 (37% ) US$5,177m -100 0
Slide 51: Profit (loss) before tax by country
Profit (loss) before tax by country % change US$m 1H07 2H07 1H08 1H08 vs 1H07 1H08 vs 2H07 Hong Kong 3,330 4,009 3,073 -8 -23 Rest of Asia-Pacific 3,344 2,665 3,624 +8 +36 Australia 51 73 100 +96 +37 India 299 230 371 +24 +61 Indonesia 58 46 66 +14 +43 Japan 18 25 4 -78 -84 Mainland China 1,549 812
Slide 52: Profit (loss) before tax by country
Profit (loss) before tax by country % change US$m 1H07 2H07 1H08 1H08 vs 1H07 1H08 vs 2H07 Latin America 1,000 1,178 1,266 +27 +7 Mexico 475 505 385 -19 -24 Brazil 360 519 660 +83 +27 Argentina 95 106 119 +25 +12 Panama 39 47 63 +62 +34 Other Latin America 31 1 39 +26 n/a North America 2,435 (2,344)
Slide 53: Personal Financial Services
Personal Financial Services Regional mix Growth in profit before tax (%) Profit (loss) before tax, 1H08 US$m % 1H08 vs 1H07 Asia +14 Asia 2,571 111 Latin America +21 Latin America 468 20 Europe +119 Europe 1,324 57 North America -238 North America (2,050) (88) Total -51 Total 2,313 100 -300 -200 -10
Slide 54: Commercial Banking
Commercial Banking Regional mix Growth in profit before tax (%) Profit before tax, 1H08, US$m 1H08 vs 1H07 Asia +35 430 (9% ) Latin America +17 1,830 (40% ) Europe +57 North America -10 1,940 (42% ) Total +35 411 (9% ) US$4,611m -20 0 20 40 60 80 Customer lending, 30 June 2008, US$bn 1H08 vs 2H07 As
Slide 55: Global Banking and Markets
Global Banking and Markets Regional mix Growth in profit before tax (%) Profit (loss) before tax, 1H08 US$m % 1H08 vs 1H07 Asia 2,742 102 Asia +53 Latin America 383 14 Latin America +51 Europe 1,190 44 Europe -29 North America (1,625) (60) North America -473 Total 2,690 100 Total -35 -500 -50 0 50 1
Slide 56: Private Banking
Private Banking Regional mix Growth in profit before tax (%) Profit before tax, 1H08, US$m 1H08 vs 1H07 Asia -18 58 (7% ) Latin America -20 177 (22% ) Europe +17 8 (1% ) North America -3 Total +5 579 (70% ) US$822m -30 -20 -10 0 10 20 Customer lending, 30 June 2008, US$bn 1H08 vs 2H07 Asia -2 5.7 (1
Slide 57: HSBC Finance Corporation: Key developments
HSBC Finance Corporation Key developments • Continued focus on positioning businesses for the future – Launched a new program through our Consumer Lending (CL) business along with an affiliate, HSBC Bank USA, to sell real estate secured receivables to the Federal Home Loan Mortgage Corporation (“Fre
Slide 58: HSBC Finance Corporation: Key developments, continued
HSBC Finance Corporation Key developments, continued • Continued focus on managing risks, delinquencies and right sizing strategies of our businesses and product offerings to enhance value to our customers and reduce risk for our stakeholders – Decreased the size of overall customer loans and advanc
Slide 59: HSBC Finance Corporation – financial results
HSBC Finance Corporation – financial results % Better/(Worse) US$m 1H07 2H07 1H08 vs.1H07 vs.2H07 Net operating income before loan impairment charges $8,001 $9,508 $7,970 -0.40% -16.20% Loan impairment and other related charges (3,734) (7,996) (6,686) (79.10%) 16.40% Net operating income 4,267 1,512
Slide 60: HSBC Finance Corporation – H108 Highlights
HSBC Finance Corporation – H108 Highlights • 1H08 loss before tax from continuing operations of US$1,174 million was US$2,570 million below prior year, primarily due to higher loan impairment charges of US$3.0 billion partially offset by lower operating expenses (US$0.4 billion) • Net operating inco
Slide 61: HSBC Finance Corporation: 2+ delinquency ratio
HSBC Finance Corporation 2+ delinquency ratio 16.0% 15.4% 14.0% 12.0% 12.5% 10.0% 8.0% 7.8% 7.7% 6.0% 5.7% 4.8% 4.0% 3.6% 3.5% 2.0% Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 R/E Secured - 1st Lien R/E Secured - 2nd Lien Credit Card Private Label Motor Vehicle Finance Personal Non-Credit Card Non - U.S. To
Slide 62: HSBC Finance Corporation: U.S. Real estate secured 2+ delinquency
HSBC Finance Corporation U.S. Real estate secured 2+ delinquency 2+ delinquencies (US$ billions) 18 5.0 16.9 16.6 4.1 4.2 4.1 16 15.4 2+ delinquencies (%) 14 4.0 3.2 1.1 1.0 0.9 12 11.6 12.2 2.8 11.2 2.6 2.5 10 10.3 3.0 2.3 0.8 9.0 2.1 0.6 8 7.9 7.5 8.0 0.7 1.6 0.5 7.0 2.0 0.6 0.5 6 6.4 5.8 1.1 1.1
Slide 63: HSBC Finance Corporation: Impairment allowance – MS and CL real estate secured
HSBC Finance Corporation Impairment allowance – MS and CL real estate secured Mortgage Services Consumer Lending Real Estate Secured US$m $3,780 US$m 4,000 $969 $919 2,000 $1,751 $1,634 $478 $440 $18 3,500 ( $36) 3,000 1,500 $543 $670 ( $722) ( $876) 2,500 $2,096 ($311) $659 ($259) 2,000 1,000 1,500
Slide 64: HSBC Finance Corporation: Impairment allowance – Card and Retail Services
HSBC Finance Corporation Impairment allowance – Card and Retail Services Card and Retail Services • CRS reserves increased from prior year as a result of higher delinquency US$m 4,000 $1,236 $3,610 and loss estimates from higher levels $1,382 $1,024 3,500 ($17) of non-prime receivables, portfolio 3,
Slide 65: HSBC Finance Corporation: Customer loans and advances
HSBC Finance Corporation Customer loans and advances US$bn 200.0 180.1 178.2 178.3 177.7 170.9 9.5 160.9 9.9 10.4 10.4 9.9 160.0 18.6 18.6 18.6 18.3 4.3 12.6 12.7 17.6 16.9 12.9 12.9 12.8 12.5 17.3 17.4 17.7 18.7 17.4 120.0 17.4 27.8 29.3 29.9 31.0 29.4 29.3 80.0 47.6 48.8 49.9 50.2 49.9 49.0 40.0 4
Slide 66: Consumer Lending: Real Estate Loans by vintage and type
Consumer Lending Real Estate Loans by vintage and type December 2007 June 2008 Second Lien ARM $0.3 bn 7% 8% 85% 86% 8% 6% $0.4 bn Second Lien Fixed $6.5 bn 35% 33% 19% 13% 11% 18% 32% 36% 3% $6.1 bn First Lien ARM $2.7 bn 12% 48% 21% 19% 13% 22% 52% 13% $2.3 bn First Lien Fixed $40.7 bn 26% 25% 19%
Slide 67: Mortgage Services: Real Estate Loans by vintage and type
Mortgage Services Real Estate Loans by vintage and type December 2007 June 2008 Second Lien ARM $1.8 bn 51% 36% 5% 8% 10% 5% 35% 50% $1.5 bn Second Lien Fixed $4.9 bn 1% 36% 54% 4%5% 6% 4% 52% 37% 1% $4.0 bn First Lien ARM $14.3 bn 36% 46% 11% 7% 7% 10% 45% 38% $11.8 bn First Lien Fixed $15.2 bn 9%
Slide 68: HSBC Finance Corporation: Ongoing areas of focus
HSBC Finance Corporation Ongoing areas of focus • Recreate the value of our core Consumer Lending business and reposition for long-term success • Deliver high brand values and strong customer value proposition in our products and services • Manage collection resources and evolve collection strategie