HSBC Holdings PLC · LSE:HSBA
HSBC — Investor Day (September 2020)
24 slides from HSBC's investor day presentation, Sep 28, 2020
Slide 1: Global Trade and Receivables Finance
Global Trade and Receivables Finance 28 September 2020
Slide 2: Disclaimer
Disclaimer Important notice The information, statements and opinions set out in this presentation and accompanying discussion (“this Presentation”) are for informational and reference purposes only and do not constitute a public offer for the purposes of any applicable law or an offer to sell or sol
Slide 3: Agenda
Agenda 1 Why trade matters: relevance and evolution of trade 2 Resilient performance in a challenging environment 3 Transforming our business for the future of trade 2 |PUBLIC|
Slide 4: Trade: essential service, now more than ever
Why trade matters: relevance and evolution of trade 1 Trade: essential service, now more than ever The role of trade Trade in HSBC HSBC in Trade Trade in society Multinationals to SMEs; footprint Revenue c.2x of top 2 peers3 Flow of critical goods covers 90% of trade/ capital flows1 #1 Globa
Slide 5: Trade in the age of Covid
Why trade matters: relevance and evolution of trade 1 Trade in the age of Covid Exports from Asian economies1 Purchasing Manager Index2 $bn Index 240 55 220 1 4 50 200 180 1 45 The four phases of trade 160 China 3 4 during the Covid crisis Taiwan Global 140 40 Germany Vietnam 120 3 China 1 Supply s
Slide 6: Resilient financial performance in 1H20, while gaining market share
Resilient performance in a challenging environment 2 Resilient financial performance in 1H20, while gaining market share GTRF: resilient performance in 1H20 Doing more with less Gaining market share6 GTRF adjusted revenue, $bn (CMB and GBM)1 GTRF; 1H20 vs 1H191 GTRF market share 1H19 1H20 +1.5 1.3 1
Slide 7: Supporting our customers when they have needed us most
Resilient performance in a challenging environment 2 Supporting our customers when they have needed us most Operational resilience Outstanding business contingency plans; no down times or impact on SLAs Enabled clients to transact digitally overnight1 Fast track approvals Mobilising full power
Slide 8: Delivering Trade Transformation outcomes
Transforming our business for the future of trade 3 Delivering Trade Transformation outcomes Progress so far Trade Transformation: Key customer and business outcomes by 2021 ePenetration1, % 59 45 Digitisation 251 +34 Substantial elimination of manual paper 2018E1 2019 July ’20 handling Accumulate
Slide 9: NextGen trade: our vision
Transforming our business for the future of trade 3 NextGen trade: our vision Trade today: not easy, siloed and fragmented The future of trade Many platforms service everyday transactions from financing, The next generation of trade will build a digital invoicing, logistics, insurance to payments
Slide 10: Recap of key messages
Recap of key messages 1 HSBC is the largest and leading trade bank1 Resilient performance during Covid; doing more with less, while gaining 2 market share 3 Record high NPS, as we supported our clients when they’ve needed us most 4 Reaping the rewards from the Trade Transformation investment The fut
Slide 11: Appendix
Appendix
Slide 12: GTRF by numbers
Appendix 1 Why trade matters: relevance and evolution of trade 1 GTRF by numbers GTRF by numbers GTRF gained market share2 Global market share grew from 6.1% to 6.2% in 1H20 $760bn Trade facilitated annually1 Traditional Trade: share increased to 12.4% from 10.9% in 1H19 $84bn Funded assets1 S
Slide 13: Competitive landscape
Appendix 2 Why trade matters: relevance and evolution of trade 1 Competitive landscape Full year 2019 Trade finance revenue, $bn 2.6 x1.9 1.4 1.2 0.8 0.5 0.3 HSBC Top 2 peers Next 3 peers Subsequent Subsequent Subsequent 3 peers 3 peers 3 peers Source: Outside-in view; Coalition GTB Revenue pools, H
Slide 14: GTRF in Asia – Continued leadership in market penetration and quality perception
Appendix 3 Why trade matters: relevance and evolution of trade 1 GTRF in Asia – Continued leadership in market penetration and quality perception HSBC extended its leadership in market penetration Clear leadership in quality perception Bank penetration as All, Top 3 & Lead provider1 Greenwich Qualit
Slide 15: Risk characteristics of trade finance
Appendix 4 Why trade matters: relevance and evolution of trade 1 Risk characteristics of trade finance Default rate, Expected Loss & Time to recovery of trade finance and other asset classes, 2008–20181 Trade Finance Drivers Short-tenor asset class Linked to real economy (working capital needs o
Slide 16: Historical evolution of global trade
Appendix 5 Why trade matters: relevance and evolution of trade 1 Historical evolution of global trade Global merchandise trade, $tn 6.5% 11.4% 1.8% CAGR 2012- 2018- Global trade (Merchandise) $T 1994 - 2001 2008 US-China China enters "new WTO established China Global reciprocal 1989 normal" slowdow
Slide 17: The outlook for global trade
Appendix 6 Why trade matters: relevance and evolution of trade 1 The outlook for global trade The $10tn case for trade1 Expanding the trade finance supply2 Open trade scenario: +$10tn GDP in 2025 vs “Baseline” The correct capital treatment for trade finance would release $1.2-2.4tn of additional
Slide 18: Key trends reshaping trade
Appendix 7 Why trade matters: relevance and evolution of trade 1 Key trends reshaping trade Shift from West to East Business model/ sector transformation Middle Income population growth in Asia (3.5bn by 20301) Sector transformation (e.g. real estate, retail, tourism) Growth in intra-Asian tra
Slide 19: Leading the industry and supporting our customers during Covid-19
Appendix 8 Resilient performance in a challenging environment 2 Leading the industry1 and supporting our customers during Covid-19 Supporting customers Leading the industry in the response to Covid-19 5 Record high Net Promoter Scores (+682) As Co-Chair of the B20 Trade & Investment Task Force, HSBC
Slide 20: Tangible progress in the transformation journey
Appendix 9 Transforming our business for the future of trade 3 Tangible progress in the transformation journey Full Digital Offering New data-enabled solutions Blockchain Omni-channels across all products; Real time credit decisioning using Progress in commercialising 100% STP1 Trade Loans launched;
Slide 21: The future of trade (1/3) – Tech and Services trade
Appendix 10 Transforming our business for the future of trade 3 The future of trade (1/3) – Tech and Services trade Cloud services E-Commerce Opportunity Cloud services: +20% CAGR in 2020-22; $350bn in eCommerce sales of $25.6tn in 20183; turnover by 20221 c.40% of consumers will be digital na
Slide 22: The future of trade (2/3) – Sustainability
Appendix 11 Transforming our business for the future of trade 3 The future of trade (2/3) – Sustainability Opportunity 85% of businesses see environmental sustainability as a priority1 91% of businesses agree on the need to rebuild their business on firmer environmental foundations1 $660 billi
Slide 23: The future of trade (3/3) – Asia
Appendix 12 Transforming our business for the future of trade 3 The future of trade (3/3) – Asia The Asia growth opportunity Shift in wealth and innovation Supply chains pivoting to Asia7 Asia-Pacific is forecasted to comprise 66% of the world’s middle income population by 20301 Asia’s share of
Slide 24: Glossary
Appendix 13 Glossary ADB Asian Development Bank ESG Environmental, Social and Corporate Governance AI Artificial Intelligence FTE Full-time Equivalent AML Anti Money Laundering GHG Greenhouse Gases IFC International Finance Corporation API Application Program Interface IOT Internet of Things ASEAN A