HSBC Holdings PLC · LSE:HSBA
HSBC — Credit Suisse Conference 2013
20 slides from HSBC's conference presentation, March 2013
Slide 1: Credit Suisse Conference
Credit Suisse Conference HSBC Group Finance Director Iain Mackay March 2013
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 f
Slide 3: 2012: Delivering the strategy
2012: Delivering the strategy Financial results Achieving growth Simplifying and restructuring the business Strengthening capital and growing dividend 3
Slide 4: Financial results
Financial results HSBC €>
Slide 5: Financial results: Highlights
Financial results Highlights1 Summary financial highlights 2011 2012 % Better/(worse) Reported PBT (USDbn) 21.9 20.6 (6) Underlying PBT (USDbn) 13.9 16.4 18 EPS (USD) 0.92 0.74 (20) Dividends (USD)2 0.41 0.45 10 Key ratios % 2011 2012 KPI Return on average ordinary shareholders’ equity 10.9 8.4 12-1
Slide 6: Regional and country profit contributions
Financial results Regional and country profit contributions Geographical regions Country highlights Underlying PBT (Underlying PBT USDm, 2012 vs 2011) 2011 2012 % Better/(worse) (USDbn) +24% +14% Hong Kong 5.8 7.2 24 +10% Hong Kong +12% and Rest of +8% Asia-Pacific +28% Rest of Asia-Pacific 6.3 6.4
Slide 7: Achieving growth
Achieving growth HSBC €>
Slide 8: Achieving growth - Commercial Banking
Achieving growth - Commercial Banking1 Strengthened our position as the leading international trade and business bank CMB PBT Achievements and developments (USDbn) • Focus on faster-growing markets - 55% of revenues from faster growing regions where revenue up 10% - HSBC Global trade finance revenue
Slide 9: Achieving growth - Global Banking and Markets
Achieving growth - Global Banking and Markets1 Emerging-markets led, financing focused with greater emphasis on connectivity GBM PBT Achievements and developments (USDbn) • Enhance core product strengths and selectively develop new capabilities - Faster growing regions 51% of revenues; record report
Slide 10: Achieving growth - Retail Banking and Wealth Management
Achieving growth - Retail Banking and Wealth Management1 Reshaping to fit for purpose business model RBWM PBT Achievements and developments (USDbn) • Reshaping and transforming RBWM to drive superior returns - Revenues in faster growing markets, +7%, led by Hong Kong and Latin America RBWM revenue (
Slide 11: Achieving growth - HSBC Asia-Pacific strategy
Achieving growth - HSBC Asia-Pacific strategy 2012: Building on a strong foundation Connecting Asia and the world 1 • Maintain leadership in Hong Kong: - 33% market share of mortgages in Hong Kong Expand leadership in • Continued leadership as mainland China’s top foreign bank: Greater China - 141 H
Slide 12: Simplifying and restructuring the business
Simplifying and restructuring the business
Slide 13: Delivering USD3.6bn of annualised sustainable saves
Simplifying and restructuring the business Four Programmes • 4 Global Businesses, global 1 2 • 11 Global Functions: Control, consistency Governance, Support Implement Re-engineer Consistent Global • 47 portfolio shaping Business • Organisational layers; Span Functions transactions Models of Control
Slide 14: CER and FTE
Simplifying and restructuring the business CER and FTE Underlying CER (%) • Focus on cost discipline – Strong pipeline of sustainable cost savings – Exceeded top end of target range for cost savings – Continued focus on achieving positive jaws Notable items FTE (000s) • FTE down 27K to 261K during 2
Slide 15: Strengthening capital and growing dividend
Strengthening capital and growing dividend
Slide 16: Strong capital generation
Strengthening capital and growing dividend Strong capital generation Core tier 1 ratio (Basel 2.5) (%) • Core tier 1 ratio of 12.3% at 31 Dec 2012 • Core tier 1 capital increased by Movement in core tier 1 capital USD17bn (+14%) of which USD12bn from capital (USDbn) generation net of dividends • Mod
Slide 17: Basel III
Strengthening capital and growing dividend Basel III1 Core / common equity tier 1 (USDbn) RWAs (USDbn) CT1 / CET1 : 12.3% 9.0% 9.8% 10.3% ratio2 • Capital capacity - organic growth • CRD IV clarity in 2013? • Investment discipline - 6 filter criteria • UK reform and FPC? Notes: 1 CRD IV is unfinalis
Slide 18: Pro-forma post-tax profits allocation
Strengthening capital and growing dividend Pro-forma post-tax profits allocation1 2011 2012 (USDbn) (USDbn) Retained earnings/capital Dividends net of scrip Variable pay2 Growing ordinary dividends3 USD 2011 2012 2013 Per share 1Q 0.09 0.09 0.10 2Q 0.09 0.09 0.10 3Q 0.09 0.09 0.10 4Q 0.14 0.18 0.41
Slide 19: Conclusion
Conclusion HSBC €>
Slide 20: Conclusion: Delivering the strategy
Conclusion Delivering the strategy 4 Global Businesses; 11 Global Functions 47 portfolio shaping transactions Achieving profitable growth Delivering sustainable saves and simplifying the business Capital strength and progressive dividend policy 20