HSBC Holdings PLC · LSE:HSBA
HSBC — Investor Day (May 2011)
20 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 Emilson Alonso, Chief Executive Latin America and Caribbean, 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, Lon
Slide 2: Latin America Investor Day
11 May 2011 Latin America Investor Day Emilson Alonso Chief Executive Latin America and Caribbean
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: Key trends for Latin America
Key trends for Latin America Key trends for Latin America1 Overview Long-term trends Market relevance Growth supported by strong demographics and social mobility: – 540m people (8% of world population) Economic ■ Forecast increase of 48million in economically growth active population by 2020 – 17
Slide 5: Strong historical growth in banking with sizeable future potential
Key trends for Latin America Strong historical growth in banking with sizeable future potential Strong historical numbers… … and significant potential for further growth CAGR 2006-10 % of GDP, 2010 214 184 21 20 Credit1 15 52 19 14 19 338 360 16 15 Deposits2 43 21 22 Brazil Mexico Argentina Brazil M
Slide 6: HSBC: Significant presence in relevant markets
HSBC position and competitive advantages HSBC: Significant presence in relevant markets Share of Latin America GDP Growth Share of HSBC Latin America Assets %, 2010-2020 %, 2010 Brazil 61 53 Mexico 16 27 87 86 Argentina 6 5 Colombia 4 1 Chile 3 2 Peru 2 1 Other HSBC1 6 4 Other Non HSBC 2 0 Panama 1
Slide 7: HSBC: Relevant footprint / scalable platform
HSBC position and competitive advantages HSBC: Relevant footprint / scalable platform Latin America1 Latin America vs. rest of the Group - Strong cost challenge RBWM Customers >16m 2010 CMB Customers >719k Relevant and scalable footprint in the region Branches >2.4k That implies a significant in
Slide 8: HSBC: 2010 Financials
HSBC position and competitive advantages HSBC: 2010 Financials PBT composition Financial indicators %, 2010 USDm 2010 1,795 1,795 Loan impairment charges / advances of 2.7% represents significant improvement versus previous Panama 8 3 Other 3 years Argentina 16 Strong capital position 50 GBM Mex
Slide 9: Strategic direction and actions overview
Strategic direction and actions Strategic direction and actions overview Latin America Become the leading international bank serving key growth segments and markets RBWM - Positioned to CMB - The leading GBM - Connecting Latin 1 capture social mobility and 2 commercial bank for 3 America and the wor
Slide 10: RBWM – Positioned to capture social mobility and wealth creation
Strategic direction and actions 1 RBWM – Positioned to capture social mobility and wealth creation Key opportunities Key actions Demographics and upward social mobility Move from a product oriented approach to a Wealth Management proposition as key client centric strategy differentiator: “one-st
Slide 11: Examples: Increased sales productivity and consistency
Strategic direction and actions Examples: Increased sales productivity and consistency Sales monitoring and coaching process and incentive programme1 Sales team performance progress: over 20% net revenues increase in Brazil In March 2010 37% of Relationship Managers reached Best Practice; in 201
Slide 12: CMB – The leading commercial bank for international businesses
Strategic direction and actions 2 CMB – The leading commercial bank for international businesses Key opportunities Key Actions Clear internationalisation trend amongst small and mid-size businesses Dedicated inter-regional desks in Asia, North America and in Latin America Customers with internat
Slide 13: Examples: Recognition and partner of choice for top Latin American issuers
Strategic direction and actions Examples: Recognition and partner of choice for top Latin American issuers Capabilities in place to lead in CMB Business Banking in Latin America HSBC active customers, thousands CMB and GBM joint efforts: +10% – Casa Saba (Mexico): 673 – USD637m deal - Financing, A
Slide 14: GBM – Connecting Latin America and the world
Strategic direction and actions 3 GBM – Connecting Latin America and the world Key opportunities Key Actions Supporting global customers in Latin America Cross-selling between segments, products and Increasingly local customers require international geographies Trade services and Cash Management
Slide 15: Examples: Global banking and markets achievements
Strategic direction and actions Examples: Global banking and markets achievements Unique capabilities to connect our clients Top positions in Latin America league tables1 2010 - 2011 significant transactions: DCM, 2009 DCM, 2010 – Camargo Correa (BRA): Adviser in a USD1.7bn Rank USDbn Rank USDbn c
Slide 16: Increase capital and cost efficiency
Strategic direction and actions 4 Increase capital and cost efficiency Key levers Example of initiatives Cost saving USDm Exit underperforming/non-strategic businesses Savings to fund (e.g., Pension Business in Mexico and Costa Portfolio Hiring of RMs to Rica) 180-200 rationalisation boost sal
Slide 17: Key take-aways
Key take-aways Latin America Competitive Advantages Significant player in relevant markets Strongly connected business internationally and regionally Business platform integrated across business lines Scalable operational platform to support efficiency and growth Target RoRWA 2.6%-3.3% Strategic Act
Slide 18: 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 19: 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 20: 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