HSBC Holdings PLC · LSE:HSBA
HSBC — Q1 2011 Earnings Presentation
20 slides from HSBC's earnings presentation, May 11, 2011
Slide 1: HKEX announcement: HSBC Finance Corporation and HSBC USA Inc. results presentation
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this document, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance
Slide 2: HSBC Finance Corporation and HSBC USA Inc.
HSBC Finance Corporation and HSBC USA Inc. Card and Retail Services and US Bank Operations IFRS Management Basis May 11, 2011 1
Slide 3: Disclosure Statement
Disclosure Statement This presentation, including the accompanying slides and subsequent discussion, may contain certain forward-looking information with respect to the financial condition, results of operations and business of HSBC Holdings plc, HSBC USA Inc. and HSBC Finance Corporation. Any forwa
Slide 4: Card and Retail Services and US Bank Operations 1Q 2011 Financial Results
Card and Retail Services and US Bank Operations 1Q 2011 Financial Results 1Q 2010 1Q 2011 US$m Card and Card and US Bank US Bank Retail Total Retail Total Operations Operations Services Services Net operating income before loan impairment charges excluding changes in 1,669 1,257 2,926 1,361 1,132 2,
Slide 5: HSBC Finance Corporation IFRS Management Basis
HSBC Finance Corporation IFRS Management Basis May 11, 2011 4
Slide 6: HSBC Finance Corporation 1Q 2011 Financial Results
HSBC Finance Corporation 1Q 2011 Financial Results 1Q 2010 1Q 2011 US$m Card and Consumer Card and Consumer Total Total Retail Svcs and Other(1) Retail Svcs and Other(1) Net operating income before loan impairment charges excluding changes 1,669 764 2,433 1,361 757 2,118 in Fair Value of Own Debt du
Slide 7: Continued reduction of balance sheet in the US
HSBC Finance Corporation Continued reduction of balance sheet in the US Customer loans(1), (3), US$bn 138.6 131.3 124.8 120.0 116.7 108.2 102.0 93.5 91.3 86.0 1Q09 2Q09 3Q09 4Q09 Pre 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 180 day 2+ Delinquency (1), (2), (3), US$bn 20 25% 17.1 20% 15 16.6 16.3 16.8 13.6 12.1
Slide 8: US customer loans – Run-off portfolio and Credit Card and Private Label
HSBC Finance Corporation US customer loans – Run-off portfolio and Credit Card and Private Label Customer loans(1), (3) Run-off portfolio, US$bn 95.9 91.2 86.6 82.2 15.0 0.8( 2 ) 78.9 14.0 12.9 1.0( 2 ) 1.0( 2 ) 73.3 68.8 11.7 10.8 1.0( 2 ) 61.3 9.8 58.4 55.7 8.8 45.1 43.7 8.1 7.5 42.3 40.9 6.8 39.5
Slide 9: US Mortgages: Continuing to shrink the Mortgage Services portfolio
HSBC Finance Corporation US Mortgages: Continuing to shrink the Mortgage Services portfolio Mortgage Services Customer loans, US$bn 26.3 25.0 23.8 22.8 21.8 20.7 19.5 18.5 17.6 16.8 1Q09 2Q09 3Q09 4Q09 Pre 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 180 day Mortgage Services 2+ Delinquency(1), US$bn 18.1% 20.0% 1
Slide 10: US Mortgages: Continuing to shrink the Secured Consumer Lending mortgage portfolio
HSBC Finance Corporation US Mortgages: Continuing to shrink the Secured Consumer Lending mortgage portfolio Secured Consumer Lending Customer loans, US$bn 45.1 43.7 42.3 40.9 39.5 37.9 36.2 34.7 33.3 32.1 1Q09 2Q09 3Q09 4Q09 Pre 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 180 day Secured Consumer Lending 2+ Delin
Slide 11: Impairment allowance
HSBC Finance Corporation Impairment allowance Mortgage Services Real Estate Secured, US$m 3,807 360 572 451 460 2,233 (647) 353 463 417 398 1,856 (602) (530) (38) (47) (960) (640) (650) (506) (452) (353) Mar- 2Q 2Q LIC 3Q 3Q LIC 4Q 4Q 4Q LIC 1Q 1Q LIC Other Mar- 2Q 2Q LIC 3Q 3Q LIC 4Q 4Q LIC 1Q 1Q L
Slide 12: Managing risk: Credit Card
HSBC Finance Corporation Managing risk: Credit Card Credit Card Customer Loans, US$bn 26.3 25.1 23.9 23.2 20.9 20.0 19.3 19.3 17.9 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Credit Card 2+ Delinquencies(1), US$bn 3 16% 2.1 1.8 1.8 1.8 12% 2 1.5 1.2 8% 1.0 0.9 1 8.0% 7.4% 7.6% 7.7% 0.7 7.0% 5.9% 4%
Slide 13: Managing risk: Private Label
HSBC Finance Corporation Managing risk: Private Label Private Label Customer Loans, US$bn 16.4 15.8 15.6 15.3 14.0 13.2 13.6 12.9 12.4 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 Private Label 2+ Delinquencies(1), US$bn 1 12% 0.7 0.7 0.7 0.6 8% 0.5 0.5 0.5 0.4 0.4 4% 4.3% 4.3% 4.4% 4.2% 3.9% 3.8% 3
Slide 14: Impairment allowance
HSBC Finance Corporation Impairment allowance Credit Card and Private Label, US$m 4,567 1,205 1,170 1,170 536 3,304 782 (24) (1,467) 485 (1,339) (1,301) (1,213) 371 (1,095) 1,752 (880) 257 (738) (31) (703) Mar- 2Q 2Q 3Q 3Q 4Q 4Q 1Q 1Q Other Mar- 2Q 2Q 3Q 3Q 4Q 4Q 1Q 1Q Other Mar- 09 W/O LIC W/O LIC
Slide 15: Managing personal non-credit card run-off
HSBC Finance Corporation Managing personal non-credit card run-off Personal Non-Credit Card and Other Unsecured Customer Loans, US$bn 15.0 13.8 12.9 11.7 10.8 9.8 8.8 8.1 7.5 6.8 1Q09 2Q09 3Q09 4Q09 Pre 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 180 day Personal Non-Credit Card and Other Unsecured 2+ Delinquenci
Slide 16: Loan impairment charges
HSBC Finance Corporation Loan impairment charges(1), (2), (3) Credit Card and Private Label, US$bn Total HSBC Finance Corp, US$bn 2 30% 5 30% 1.5 25% 1.2 1.2 1.2 20% 1 15% 25% 0.8 3.9 4 13 .4 % 0.5 10% 11.5 % 11.6 % 12 .1% 0.5 0.4 9 .2 % 0.3 5% 3.4 5 .8 % 5 .9 % 4 .6 % 3 .3 % 3.2 20% 0 0% 1Q09 2Q09
Slide 17: Amount written-off
HSBC Finance Corporation Amount written-off (1), (2), (3) Credit Card and Private Label, US$bn Total HSBC Finance Corp, US$bn 2 30% 7 30% 6.5 1.5 25% 1.3 1.3 1.3 1.2 20% 1.1 6 1 0.9 15% 25% 0.7 0.7 14 .0 % 13 .3 % 13 .4 % 13 .1% 12 .8 % 10% 11.6 % 10 .7 % 9 .2 % 8 .9 % 2 1.2 % 5% 5 0 0% 20% 1Q09 2Q0
Slide 18: 2+ Delinquency
HSBC Finance Corporation 2+ Delinquency(1), (2), (3) Credit Card and Private Label, US$bn Total HSBC Finance Corp, US$bn 3 2.8 15% 20 30% 2.5 2.5 2.4 2.0 2 1.7 10% 17.1 1.5 16.6 16.8 1.3 16.3 25% 1.1 1 6 .6 % 6 .2 % 6 .4 % 6 .3 % 5% 5 .8 % 15 5 .0 % 4 .6 % 4 .1% 13.6 3 .5 % 0 0% 20% 1Q09 2Q09 3Q09 4
Slide 19: Impairment allowance
HSBC Finance Corporation Impairment allowance(1), (2), (3) Credit Card and Private Label, US$bn Total HSBC Finance Corp, US$bn 5 4.6 20% 16 20% 4.3 15.2 15.1 4.1 4.0 14.8 14.8 3.3 15% 3.0 2.6 2.2 10% 10 .7 % 10 .5 % 10 .5 % 10 .3 % 1.8 16% 9 .5 % 9 .0 % 8 .0 % 6 .7 % 5% 12 11.5 5 .8 % 10.3 0 0% 1Q09
Slide 20: Board of Directors of HSBC Holdings plc
The Board of Directors of HSBC Holdings plc as at the date of this announcement are: D J Flint, S T Gulliver, S A Catz†, L M L Cha†, V H C Cheng, M K T Cheung†, J D Coombe†, R A Fairhead†, A A Flockhart, J W J Hughes-Hallett†, W S H Laidlaw†, J R Lomax†, I J Mackay, G Morgan†, N R N Murthy†, Sir Sim