HSBC Holdings PLC · LSE:HSBA
HSBC — H1 2013 Earnings Presentation
23 slides from HSBC's earnings presentation, Aug 5, 2013
Slide 1: HSBC Holdings plc Interim Results 2013 Presentation to Investors and Analysts
HSBC Holdings plc Interim Results 2013 Presentation to Investors and Analysts
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, capital position and business of the Group. These forward-looking statements represent the Group’s expectations or bel
Slide 3: Interim results 2013 Highlights
Interim results 2013 Highlights Reported profit before tax ('PBT') in 1H13 increased by 10% to USD14.1bn. Underlying1 PBT increased by 47% to USD13.1bn ROE 12% for 1H13 Continued progress on delivering our strategy: – Revenue growth in key areas – Achieved additional sustainable cost savings –
Slide 4: Financial highlights
Interim results 2013 Financial highlights1 Summary financial highlights % better/(worse) 1H12 2H12 1H13 1H13 vs 1H12 1H13 vs 2H12 Reported PBT (USDbn) 12.7 7.9 14.1 10 78 Underlying PBT (USDbn) 8.9 6.5 13.1 47 100 EPS (USD) 0.45 0.29 0.54 20 86 Dividends2 (USD) 0.18 0.27 0.20 11 n/a Key ratio % 1H12
Slide 5: Regional, country and business profit contributions
Interim results 2013 Regional, country and business profit contributions Geographical regions Country highlights Underlying PBT % better/(worse) Underlying PBT USDm, 1H13 vs 1H121 (USDbn) 1H12 2H12 1H13 1H13 vs 1H12 Hong Kong 4,205 13% Hong Kong 3.7 3.4 4.2 13 India 414 (15%) Rest of Asia-Pacific 3.
Slide 6: Financial overview: Summary of reported results
Financial overview Summary of reported results Summary of reported results % better/(worse) (USDbn) 1H12 2H12 1H13 1H13 vs 1H12 1H13 vs 2H12 Revenue1 excluding FVOD2 39.1 34.4 34.4 (12) − LICs3 (4.8) (3.5) (3.1) 35 11 Net operating income, excluding FVOD 34.3 30.9 31.3 (9) 1 Operating expenses (21.2
Slide 7: Financial overview: Underlying performance
Financial overview Underlying performance1 % better/(worse) (USDbn) 1H12 2H12 1H13 1H13 vs 1H12 1H13 vs 2H12 Revenue2 32.1 30.4 33.3 4 10 LICs3 (4.4) (3.5) (3.1) 29 11 Operating expenses (19.9) (21.4) (18.3) 8 14 Profit before tax 8.9 6.5 13.1 47 100 Notable items4 (USDbn) 1H12 2H12 1H13 Revenue Pin
Slide 8: Revenues
Revenues1,2 Commercial Banking Movement in underlying revenue Total Balance sheet growth primarily from term and trade related lending partially 1H12 underlying revenue 32.1 offset by spread compression. NII up 1% Fee income up 6% reflecting increased lending fees and collaboration with Net favo
Slide 9: Operating expenses
Operating expenses1 Better/(worse) (USDbn) 1H12 1H13 USDbn % Sustainable cost savings in 1H13 (USD0.8bn) Underlying operating expenses 19.9 18.3 1.6 8 Ill-health benefits credit in UK (USD0.4bn) and lower UK customer redress programmes 1.3 0.4 performance related pay (USD0.3bn) partly offset by
Slide 10: Credit quality: Loan impairment charges
Credit quality Loan impairment charges1 Group – geographic regions Group – global businesses (USDbn) (USDbn) 5 5 4.4 4.4 0.1 4 0.3 4 0.6 3.5 3.5 1.1 0.1 0.9 0.1 3.1 0.2 3.1 3 0.2 3 0.2 1.0 1.2 1.2 1.4 2 2 1.8 1.3 2.9 0.7 2.2 1 1 1.8 1.0 0.9 0.8 0 0 1H12 2H12 1H13 1H12 2H12 1H13 Europe North America
Slide 11: Capital adequacy
Capital adequacy Movement in Core tier 1 capital (USDbn) Basel ‘2.5’ Core tier 1 ratio movement (%) At 31 December 2012 138.8 0.6 12.9 0.8 12.7 12.3 (0.4) (0.2) (0.4) Profit 10.3 Dividend, net of scrip (4.8) Other (3.4) FX and other post management Movements Profit 31-Dec-12 net of scrip Management
Slide 12: Profitability: Drivers of returns
Profitability Drivers of returns Group RoE1 Group RoRWA (%) (%) 1.8 1H12 2H12 1H13 2.0 2.3 12.0 10.5 (1.8) (0.9) Reported 2.1 1.4 2.6 (1.9) Underlying 1.6 1.2 2.4 Underlying, ex run-off portfolios 2.3 1.5 2.8 1H12 1H13 + Industrial Bank Other profits FVOD increase Fines and on disposals/ customer ac
Slide 13: Outlook
Outlook Signs of improvement in Eurozone. US economy growing well. Faster growing markets will continue to account for majority of global growth over long term Next phase of delivering strategy to focus on – Grow business and dividends – Implement global standards – Streamline our processes and
Slide 14: Issued by HSBC Holdings plc Group Investor Relations
Photography: Matthew Mawson Issued by HSBC Holdings plc Group Investor Relations Cover: Financing trade has always been at the heart of HSBC’s business, especially in 8 Canada Square our home market of Hong Kong. Today, Hong Kong International Airport is the world’s London E14 5HQ busiest air cargo
Slide 15: Appendix to the Presentation to Investors and Analysts June 2013
HSBC HOLDINGS PLC APPENDIX TO THE PRESENTATION TO INVESTORS AND ANALYSTS 30 June 2013
Slide 16: Consolidated summary income statement
HSBC HOLDINGS PLC Appendix to Investor Presentation Consolidated summary income statement Quarter ended 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar 2013 2013 2012 2012 2012 2012 US$m US$m US$m US$m US$m US$m Revenue1 (excluding FVOD) .............................. 15,732 18,659 18,179 16,299 20,222 18
Slide 17: Profit/(loss) before tax by global business
HSBC HOLDINGS PLC Appendix to Investor Presentation Profit/(loss) before tax by global business Quarter ended 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar 2013 2013 2012 2012 2012 2012 US$m US$m US$m US$m US$m US$m Retail Banking and Wealth Management ............. 1,700 1,567 1,654 1,511 4,228 2,182 C
Slide 18: Global Banking and Markets
HSBC HOLDINGS PLC Appendix to Investor Presentation Global Banking and Markets Management view of revenue1 Quarter ended 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar 2013 2013 2012 2012 2012 2012 US$m US$m US$m US$m US$m US$m Global Markets ...................................................... 2,481 2
Slide 19: Notable items
HSBC HOLDINGS PLC Appendix to Investor Presentation Notable items Quarter ended 31 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar 2013 2013 2012 2012 2012 2012 US$m US$m US$m US$m US$m US$m Revenue Net gain on completion of Ping An disposal ........ − 553 – – – – Other ......................................
Slide 20: US run-off portfolios
HSBC HOLDINGS PLC Appendix to Investor Presentation US run-off portfolios Quarter ended 30 Jun 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar 2013 20131 2012 2012 2012 2012 US$m US$m US$m US$m US$m US$m Net operating income before loan impairment charges and other credit risk provisions2 .... 394 399 809 587 15
Slide 21: Retail Banking and Wealth Management
HSBC HOLDINGS PLC Appendix to Investor Presentation Retail Banking and Wealth Management Half-year to 30 Jun 30 Jun Change 31 Dec Change 2013 2012 % 2012 % US$m US$m US$m Underlying profit before tax RBWM excluding US CRS and US run-off portfolio .................. 3,454 2,299 50 3,125 11 US CRS ...
Slide 22: Commercial Banking
HSBC HOLDINGS PLC Appendix to Investor Presentation Commercial Banking Half-year to 30 Jun 30 Jun Change 31 Dec Change 2013 2012 % 2012 % US$m US$m US$m Underlying profit before tax Asia ................................................................................................ 2,310 2,085 11 2
Slide 23: Global Banking and Markets
HSBC HOLDINGS PLC Appendix to Investor Presentation Global Banking and Markets Half-year to 30 June 30 June Change 31 Dec Change 2013 2012 % 2012 % US$m US$m US$m Underlying profit before tax Asia ................................................................................................ 2,606