HSBC Holdings PLC · LSE:HSBA
HSBC — Debt Investor Presentation (August 2016)
23 slides from HSBC's debt investor presentation, August 2016
Slide 1: HSBC Holdings plc – Fixed Income Update
August 2016 HSBC Holdings plc – Fixed Income Update
Slide 2: Important notice and forward-looking statements
Fixed Income Update Important notice and forward-looking statements Important notice The information set out in this presentation and subsequent discussion does not constitute a public offer for the purposes of any applicable law or an offer to sell or solicitation of any offer to purchase any secur
Slide 3: Contents
Fixed Income Update Contents 1 HSBC Group 2016 Interim Performance 4 2 HSBC’s Approach to Debt Issuance 12 3 HSBC’s Capital Structure 16 4 In Summary 19 5 Appendix 21 3
Slide 4: HSBC Group 2016 Interim Performance
HSBC Group 2016 Interim Performance
Slide 5: Our highlights
HSBC Group 2016 Interim Performance Our highlights 1st Half 2016 ‒ Reported PBT of $9.7bn down $3.9bn ‒ Adjusted PBT of $10.8bn down $1.8bn; a reasonable performance in the face of considerable uncertainty: 1H16 ‒ Revenue down $1.3bn or 4% versus a strong 1H15: Client-facing GB&M and BSM down Report
Slide 6: 1H16 Key metrics
HSBC Group 2016 Interim Performance 1H16 Key metrics 2015 Full Year Key financial metrics 1H15 1H16 Return on average ordinary shareholders’ equity1 10.6% 7.4% Return on average tangible equity1 12.0% 9.3% Jaws (adjusted) - (0.5)% Dividends per ordinary share in respect of the period $0.20 $0.20 Ear
Slide 7: 2Q16 Profit before tax performance
HSBC Group 2016 Interim Performance 2Q16 Profit before tax performance Reduced costs more than offset by a fall in revenue and increased LICs 2Q16 vs 2Q15 PBT analysis1 USDm Adjusted PBT by global 2Q15 2Q16 vs. 2Q15 % business, $m RBWM 1,908 1,480 (428) (22)% CMB 2,140 2,052 (88) (4)% 2Q15 2Q16 vs.
Slide 8: 2Q16 Loan impairment charges
HSBC Group 2016 Interim Performance 2Q16 Loan impairment charges Higher specific LICs vs. 2Q15; LICs broadly unchanged compared with 1Q16 LICs analysis1 by type USDm 2Q15 1Q16 2Q16 vs. 2Q15 vs. 1Q16 2Q16 vs. 1Q16 by region Group (811) (1,209) (1,205) (394) 4 Adverse Favourable Brazil (226) (373) (41
Slide 9: Capital adequacy
HSBC Group 2016 Interim Performance Capital adequacy Strong capital base: common equity tier 1 ratio1 – 12.1% Regulatory capital and RWAs 1H16 CET1 ratio movement USDbn % 12.8 31 Dec 31 Mar 30 Jun 2015 2016 2016 0.5 (0.4) 12.1 11.9 0.2 (0.1) Common equity tier 1 capital 130.9 132.9 130.7 Total regul
Slide 10: Conservative Balance Sheet
HSBC Group 2016 Interim Performance Conservative Balance Sheet1 Mainly deposit funded with an Assets to Deposits ratio of 69% Assets Liabilities and equity USDbn USDbn 2.6tn 2.6tn Trading Assets 278 10.7% Other7 281 10.8% Derivatives 370 14.2% Derivatives 368 14.1% Reverse Repos3,4 142 5.4% Repos 98
Slide 11: Key Credit Metrics
HSBC Group 2016 Interim Performance Key Credit Metrics 1H16 demonstrated the fundamental strength of our business HSBC came through 1H16 securely as our diversified business model and geographic profile again demonstrated resilience in difficult market conditions In total we generated USD5.4bn
Slide 12: HSBC’s Approach to Debt Issuance
HSBC’s Approach to Debt Issuance
Slide 13: HSBC’s Approach to TLAC
HSBC’s Approach to Debt Issuance HSBC’s Approach to TLAC In 2016 HSBC Holdings plc will be the sole issuer of external TLAC debt for the Group TLAC debt will be downstreamed in a form compliant with local regulations Issuing Entity Once regulatory rules have been clarified TLAC debt could be i
Slide 14: HSBC’s Creditor Loss Hierarchy
HSBC’s Approach to Debt Issuance HSBC’s Creditor Loss Hierarchy 2 Impact of Banking Subsidiary Resolution on HSBC Holdings Consolidated CET1 ratio would be eroded by any losses in Banking Subsidiaries HSBC External NCC1 and • But CET1 ratio has substantial buffers versus regulatory minima Holdings
Slide 15: HSBC Maturities and issuance of long-term debt
HSBC’s Approach to Debt Issuance HSBC Maturities and issuance of long-term debt HSBC Group Debt Redemption profile1,2 USDbn 2016-21: USD76bn senior funding redemptions 25,000 20,000 15,000 10,000 5,000 0 1H16 1H16 2H16 2H16 2017 2017 2018 2018 2019 2019 2020 2020 2021 2021 2022 2022 2023 2023 Non Co
Slide 16: HSBC’s Capital Structure
HSBC’s Capital Structure HSBC >
Slide 17: Group Capital Requirements to 2020
HSBC’s Capital Structure – Maximum Distributable Amount (MDA) Requirements Group Capital Requirements to 2020 Common equity tier 1 ratio1 % of RWA Buffer to MDA2 CET1 CRD IV minimum 3 Pillar 2A (56% CET1) 4 Combined Buffer (CCB+G-SII+CCyB) 14% USD53bn USD39bn USD26bn USD12bn USD12bn 12% 12.1% 10% 5.
Slide 18: Progressing to end state Group capital structure
HSBC’s Capital Structure – Total Capital Requirements Progressing to end state Group capital structure Evolution of Group capital structure in % of RWA1 TLAC issuance CET1 AT1 T2 TLAC debt > 1 Year Based on TLAC finalised principles from November TLAC ratio + buffers 2015, HSBC's TLAC requirement
Slide 19: In Summary
In Summary HSBC >
Slide 20: Summary
In Summary Summary Investment case Unrivalled global presence, with access to more than 90% of global GDP Distinctive advantages Universal banking model with four global businesses which serve the full range of banking customers Develop our international network of businesses to support connec
Slide 21: Appendix
Appendix HSBC >
Slide 22: High level structure chart
Appendix High level structure chart Principal subsidiaries in priority markets Holding company HSBC Holdings plc Intermediate holding company UK Operating company Associate HSBC HSBC HSBC Private HSBC HSBC Latin America Overseas HSBC Bank HSBC Banking HSBC Bank 94% Latin Holdings Holdings Holdings H
Slide 23: Temporary cover
The view from HSBC Building, 8 Century Avenue, Pudong, Shanghai The view from HSBC Main Building, 1 Queen’s Road Central, Hong Kong SAR The view from HSBC Group Head Office, 8 Canada Square, London Temporary cover Cover images: internationalisation of the renminbi The images show the views from HSBC
HSBC Holdings — Debt Investor Presentation (August 2016) on 6ix