HSBC Holdings PLC · LSE:HSBA
HSBC — Investor Day (May 2011)
24 slides from HSBC's investor day presentation, May 11, 2011
Slide 1: HSBC Holdings plc Investor Day
Abc 11 May 2011 HSBC HOLDINGS PLC INVESTOR DAY The presentation given today by Samir Assaf, Chief Executive Global Banking and Markets, 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
Slide 2: Global Banking and Markets Investor Day
11 May 2011 Global Banking and Markets Investor Day Samir Assaf Chief Executive Global Banking and Markets
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 f
Slide 4: Faster Growing Markets will support global growth
Key trends for GBM Faster Growing Markets will support global growth Asia represents 25% of current …but constitutes > 45% of revenue pools… absolute growth out to 2013 Global Wholesale Banking Revenue Global Wholesale Banking Revenue Asia growth of 8.3%1 built on capital Pools USDbn1, 2010 Pool G
Slide 5: GBM competitive advantages
HSBC position and competitive advantages GBM competitive advantages HSBC Position Competitive advantages ■ Hub-and-spoke model with global reach across over 65 countries Strategic geographical and ■ Top 5 global wholesale bank with reach and scale1 I client footprint with global reach ■ Strong prese
Slide 6: Global network connects Mature and Faster Growing Markets
HSBC position and competitive advantages I Global network connects Mature and Faster Growing Markets London Paris New York Dubai Shanghai Mexico City Hong Kong Mumbai Singapore ■ 2010 PBT of USD9.5bn1 ■ Headcount: over 20,000 Sao Paulo ■ Presence in over 65 Main hubs (4) countries Other strategic hu
Slide 7: Top global wholesale bank with reach and scale
HSBC position and competitive advantages I Top 5 global wholesale bank with reach and scale Global Transaction Banking Coverage / Clients Over 4,200 managed client mastergroups Global Markets (Revenues, 2010 in USDbn) Global Banking (Revenues, 2010 in USDbn) ■ FX 2.8 ■ Credit & Lending ■ Credit 1.6
Slide 8: Sustainable business model with future growth potential
HSBC position and competitive advantages II Sustainable business model with future growth potential GBM Net Operating Income and Profit Before Tax USDbn CAGR (2007–2010) 2007- 2010: Cumulative GBM PBT c.USD30bn PBT: 15.9% Net operating income: 9.4% 21.8 19.9 15.2 13.5 10.5 9.5 6.1 3.5 2007 2008
Slide 9: Strong financial performance in 2010 diversified by product and geography
HSBC position and competitive advantages II Strong financial performance in 2010 diversified by product and geography Managed View of Total Operating Income Profit Before Tax1 %, 2010 %, 2010 Total: USD19.9bn Total: USD9.5bn Europe (29) Global Markets (46) 46% North America (17) Global Banking (23)
Slide 10: BSM revenues stabilising after two exceptional years
HSBC position and competitive advantages II BSM revenues stabilising after two exceptional years Balance Sheet Management Revenues USDm 3,500 3,350 3,000 2,500 2,269 2009 and 2010 have seen 1,988 2,040 exceptional BSM revenues, 2,000 1,833 following policy rate cuts in 1,630 2008 1,500 1,000 705 5
Slide 11: Diversified, stable and sustainable revenue base
HSBC position and competitive advantages II Diversified, stable and sustainable revenue base Global Banking and Markets Relationship revenue by Customer Segment1 Government Other Consumer & Retail Hedge Funds Insurance Metals, Energy Corporates Industrials Fund Managers Other Banks 1 Source: HSBC in
Slide 12: Strength in core product capabilities – transactional
HSBC position and competitive advantages III Strength in core product capabilities – transactional Market leadership in our product suite ■ Top 3 in cash management across 30 countries1 PCM ■ “Sticky” revenues with over 3,000 GBM clients globally Best Cash Management Bank in Middle East and Asia 201
Slide 13: Strength in core product capabilities – Market related flow products
HSBC position and competitive advantages III Strength in core product capabilities – Market related flow products DCM Rankings1 2010 Market leadership in our product suite All International Bonds 4 Euromarket Corporates 4 Strength in vanilla flow, G10 FX, Credit, Rates Sterling 1 Top tier primar
Slide 14: Strength in core product capabilities – Event products
HSBC position and competitive advantages III Strength in core product capabilities – Event products Landmark transactions Rankings 2010 Cross-border, cross-product capability (e.g., Diageo, Equity Capital Markets1 9 Reynolds) Export Finance (MLA for all ECA backed Developing equity franchise (e.
Slide 15: GBM strategic direction to deliver future growth… an evolution
Strategic direction and actions GBM strategic direction to deliver future growth… an evolution Global Banking and Markets “Emerging Markets-Led, Financing-Focused” + Greater emphasis on Connectivity 1 2 3 4 Reinforce Reinforce client client Enhance Enhance core core Collaborate Collaborate with with
Slide 16: GBM Client Coverage Groups
Strategic direction and actions 1 Reinforce client coverage and client-led solutions Key initiatives Corporate Sector ■ Strategic investment in resources: 60+ coverage MD/Ds hired in the last 18 months and will continue selective hiring GBM Client Coverage Groups Resources and Energy ■ Multinational
Slide 17: Enhance core product strengths
Strategic direction and actions 2 Enhance core product strengths… 2010 Commodities ■ New e-Platform and FX Prime Services offering FX and European Refinery ■ Broaden FX distribution channels (e.g., “Get-Rate”, e-Commerce, Wealth Cross-border, integrated Management Solutions) solution involving physi
Slide 18: …and selectively develop new capabilities
Strategic direction and actions 2 …and selectively develop new capabilities Our ambition ■ Enhance capabilities in coverage, origination, sales, trading and research Hong Kong, India, Top 5 Middle East, Brazil ■ Deliver scalable equity finance business to support and Mexico Equities Prime Services B
Slide 19: Collaborate with other customer groups to deliver incremental revenues
Strategic direction and actions 3 Collaborate with other customer groups to deliver incremental revenues Size of opportunity Initiatives ■ Aspiration: increase revenues by USD1bn in the near to medium Over 52,000 term Commercial mastergroup ■ Global initiative for FX and Derivatives Banking corporat
Slide 20: Strategic re-engineering to deliver sustainable cost savings
Strategic direction and actions 4 Strategic re-engineering to deliver sustainable cost savings Continually optimise resources Efficient management Increase off-shoring target for staff in technology, operations and finance to of headcount 35%, 40% and 25% respectively Trading platforms reduced
Slide 21: Key Take-aways
Key Take-aways Global Banking and Markets Competitive Advantages Strategic geographical and client footprint with global reach Sustainable business model with future growth potential Integrated wholesale bank with strength in core product capabilities Target RoRWA 2.0%-2.2% Strategic Actions Reinfor
Slide 22: Basis of preparation (1/2)
Basis of preparation (1/2) Actuals Actual numbers presented are on a reported basis and include the effect of movements in the fair value of HSBC’s own debt related to credit spreads AMG The Global Asset Management business formed part of GBM in 2010, but has been included in RBWM for the RoRWA targ
Slide 23: Basis of preparation (2/2)
Basis of preparation (2/2) RoE Return on equity (‘RoE’) is profit attributable to ordinary shareholders of the parent company divided by average ordinary shareholders’ equity RoRWA The metric, return on risk weighted assets (‘RoRWA’), is the profit before tax divided by average RWAs. The RWAs have b
Slide 24: Acronyms and definitions
Acronyms and definitions A/D ratio Ratio of customer advances to customer deposits ETF Exchange traded funds NYSE New York Stock Exchange Advance HSBC Advance, a global banking proposition for the EU European Union OCC Office of the Comptroller of Currency mass-affluent segment of customers AFS Avai