HSBC Holdings PLC · LSE:HSBA
HSBC — FY1999 Earnings Presentation
37 slides from HSBC's earnings presentation, 2000
Slide 1: HSBC Holdings plc 1999 Results
HSBC Holdings plc 1999 Results abde
Slide 2: 1999 results - overview
1999 results - overview 1999 1998 US$m Operating profit before provisions 9,653 9,051 up 7% Attributable profit 5,408 4,318 up 25% - excluding restructuring charges 5,523 Return on shareholders’ funds 17.5% 15.5% Dividends per share (US$) Second interim 0.207 0.185 Total for year 0.340 0.308 up 10.3
Slide 3: 1999 results
1999 results Latin Latin North Rest of Asia- North Rest of America America America Pacific America Asia- 4.5% 4.0% 12.0% 11.0% 10.9% Pacific 4.1% Hong Kong Hong Europe SAR Europe 38.5% Kong 35.1% 41.6% SAR 38.3% Operating profit before provisions Pre-tax profit US$9,653 million US$7,982 million 3 ab
Slide 4: Shareholder value
Shareholder value US$m 1999 1998 Average invested capital 37,063 33,086 Annual return on capital 5,929 4,774 Cost of capital @12.5% 4,633 4,136 Group economic profit 1,296 638 4 abde
Slide 5: Total shareholder return in 1999
Total shareholder return in 1999 180% 180% 170% 170% 160% 160% 150% 150% 140% 140% 130% 130% 120% 120% 110% 110% 100% 100% 90% 90% 31-Dec-98 21-Feb-99 14-Apr-99 05-Jun-99 27-Jul-99 17-Sep-99 08-Nov-99 30-Dec-99 TSR Benchmark 9 Bank Peer Group HSBC 5 abde
Slide 6: Group Balance Sheet - Assets
Group Balance Sheet - Assets Customer advances as a % of Total Assets 600,000 70% 500,000 65% 400,000 60% USDm 300,000 55% 200,000 50% 100,000 45% 0 40% DEC93 DEC94 DEC95 DEC96 DEC97 DEC98 DEC99 Other Assets Loans and Advances to Customers Debt and Equity Security Investments Loans and Advances to B
Slide 7: Group Balance Sheet - Liabilities
Group Balance Sheet - Liabilities Customer Accounts as a % of Total Liabilities 600,000 70% 500,000 65% 400,000 60% 300,000 55% USDm 200,000 50% 100,000 45% 0 40% DEC93 DEC94 DEC95 DEC96 DEC97 DEC98 DEC99 Capital Other Liabilities Debt Security Liabilities Customer Accounts Deposits by Banks 7 abde
Slide 8: Net interest income & margin
Net interest income & margin US$m % 12,000 3.00 2.80 10,000 2.60 8,000 2.40 6,000 2.20 4,000 2.00 1993 1994 1995 1996 1997 1998 1999 Net interest income Margin 8 abde
Slide 9: Other operating income
Other operating income US$m 10,000 50.0% 8,000 45.0% 6,000 40.0% 4,000 35.0% 2,000 0 30.0% 1993 1994 1995 1996 1997 1998 1999 Other operating income Other income as % of total income Dealing profits 9 abde
Slide 10: Market risk-related revenues in 1999
Market risk-related revenues in 1999 averaged US$8.2m a day Daily distribution of Market Risk Revenues 30 Group Treasury Centres 25 Number of days P&L frequency 20 15 10 5 0 -6 -5 -6-4 -5-3 -4-2-3-1-2 0 -1 1 0 2 1 3 2 4 3 5 4 6 5 7 6 8 7 9 8 109 111012111312141315141615171618171918201921202221232224
Slide 11: Operating expenses & cost:income ratio
Operating expenses & cost:income ratio US$m 12,000 60.0% 10,000 8,000 55.0% 6,000 4,000 50.0% 1993 1994 1995 1996 1997 1998 1999 Operating expenses Cost : income ratio 11 abde
Slide 12: Specific provisions charge against customer loans and advances
Specific provisions charge against customer loans and advances US$m % 2,000 1.6 1,500 1.2 1,000 0.8 500 0.4 0 0.0 -500 -0.4 H1 97 H2 97 H1 98 H2 98 H1 99 H2 99 New specific Releases & recoveries Net specific charge as % of Gross loans 12 abde
Slide 13: Operating margin and bad debt charge
Operating margin Bad debt charge (Operating profit before (Bad debt charge as % of provisions as % of risk-weighted assets) risk-weighted assets) 4.0% 3.0% 2.0% 1.0% 0.0% 1993 1994 1995 1996 1997 1998 1999 13 abde
Slide 14: Movements in Tier 1 capital
Movements in Tier 1 capital Capital Scrip dividend 0.7 generated Issue of capital 3.3 Attributable profit 5.4 Capital Goodwill 6.5 applied Dividends 2.9 FX & other movements 0.8 Increased RWAs from RNYC/SRH 3.5 Released by reduced RWAs -0.4 US$bn -1 0 1 3 5 7 9 11 13 14 abde
Slide 15: RNYC/SRH acquisition - summary
RNYC/SRH acquisition - summary As announced Present May 1999 position Transaction Value (US$ billion) Consideration 10.3 9.7 Goodwill 6.6 6.2 Net Assets acquired 3.7 3.5 Financing (US$ billion) Common equity 3.0 3.00 New Tier 2 Debt and Fixed Price Tier 1 instruments 3.0 - 4.0 1.65 Existing Group re
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Slide 17: Your World of Financial Services
Abc YOUR WORLD OF FINANCIAL SERVICES 17 abde
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Slide 21: Changing the Fabric: HSBC and e-commerce
Changing the Fabric HSBC and e-commerce v Opportunity to attract new customers; serve existing customers better v Re-configure business to provide higher quality service & more efficiency v Link customers internationally v Manage processing globally v hsbc.com = multi-product, multi-geography, multi
Slide 22: Middleware - IFS
Middleware - IFS Product Customer Utilities Processing Management identification financial planning Systems System risk scoring bill payment 21 abde
Slide 23: HSBC Bank personal internet banking
HSBC «> HSBC Bank ple PERSONAL BUSINESS NEWS. Gelting started ‘Ty Benking.on Open Diotaslette wyyv vy vryvvy vr BEL CErcuieeacontro! of your MONey e+ « 22 HSBC €X>
Slide 24: Online account balance screen
make a choice choose your account choose what you'd like to do: STUDENT A/C view your balance your balance account name MS T JOHNSON 40-05-30 78451298 balance £ 78.26 at 20 FEB 2000 d overdraft £ 500 23 HSBC €X>
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Slide 26: HSBC International Guaranteed Capital Investment Bonds
HSBC <p YOUR WORLD OF FINANCIAL SERVICES HSBC ational Limit IMPORTANT NOTE HOME > Banking Offshore HSBC International Guaranteed Capital > Credit Cords Investment Bonds Limited > Debit Cards > Firercitintermesisies Set your si > bnvestiment Products ts on higher returns. ‘Stock market linked growth
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Slide 28: first direct online banking
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Slide 29: HSBC trade services website
> Aboutls: > import Serdces > Export Services > Bisk Management > Ecommerce & Supply Chain > Trade Tools Trade Services > Tradetnfomnation Centre > Seoch > Contest Us {s avaiable, ensuring that yourimport documents are processed without delay. pe) Import Services DV Aullrange of import services hand
Slide 30: HSBC capital raising and risk management site
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Slide 31: identrus: B2B E-Commerce Framework
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Slide 32: Joint venture with Cheung Kong
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Slide 33: Compaq Windows 2000 solutions
COMPA EEE solutions fc Windows 2000. Designed, Tested and Deployed on Compaq Compaq CEO Michael Capellas gave the keynote address at the Windows 2000 Conference and Expo. See the replayed webcast. Headlines Compaq Forms Custam Faye Subsidiary as it Completes Insoom Transsotion > Compaq, Unisys Partn
Slide 34: SPECTRUM
SPECTRUM 33 abde
Slide 35: Investors in Financial Tech
Investors in Financial Tech FTV adds value to its Portfolio Companies portfolio companies by providing strategic advice To date, Financial Technology Ventures has invested in the following companies: and market knowledge, copied Menctal financial Service echackey Aton po engines: 2eTVice/sott portfo
Slide 36: Your World of Financial Services
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