Hsbc Holdings Plc · LSE:HSBA
Hsbc — Investor Day (June 2015)
17 slides from Hsbc's investor day presentation, June 2015
Slide 1: RBWM Investor Presentation - Investor Update 2015
June 2015 RBWM Investor Presentation Investor Update 2015
Slide 2: Important notice and forward-looking statements
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 securities or other finan
Slide 3: Key strategic priorities
RBWM Key strategic priorities Key messages Principal RBWM financial outlook1 RoRWA excl. 6.3% Capital 5.4% § Consistently strong returns, accretive to Group RoE Associates 4.8% accretive Sustainable § Client base positioned towards affluent customers high quality § High quality asset book with low L
Slide 4: RBWM is now a simpler business, delivering sustainable, diversified revenues
RBWM Investment Case RBWM is now a simpler business, delivering sustainable, diversified revenues. Business transformation Principal RBWM Revenue and PBT1 Principal RBWM Revenue by region1 USDbn § Simplified our portfolio with 59 disposals / closures of Revenue PBT Simpler business lines or markets
Slide 5: Through Premier and Advance, we attract an affluent client base
RBWM Investment Case Through Premier and Advance, we are able to attract an affluent client base, with higher revenue per customer. Customers and markets Positioned towards affluent customers Premier Advance Personal Selected markets4 HSBC GPB % Premier Market5 customer base 8% 18% China 2% c. 80% R
Slide 6: Conduct risk is redefining how retail banks engage with customers
RBWM Investment Case Conduct risk is redefining how retail banks engage with and serve their customers. We have proactively repositioned the business for this… UK customer redress and CCA provisions have grown to a similar size as Numerous actions to significantly reduce credit losses on our lending
Slide 7: We are maintaining our credit discipline – Example RBWM UK
RBWM Investment Case … and we are maintaining our credit discipline – Example RBWM UK. PRA 2014 stress tests: Projected cumulative three-year PRA 2014 stress tests: Projected cumulative three-year impairment charge rates on UK household mortgage lending impairment charge rates on UK household non-mo
Slide 8: Repositioning impacted revenue growth in 2013 and 2014
RBWM Investment Case The repositioning impacted the rate of revenue growth in 2013 and 2014, but we are confident the quality of revenues is improving… Principal RBWM revenue progress 1Q11 to 1Q151 USD Design and policy (2012) Implementation (2013) Implementation (2014) • Business Risk Review • Glob
Slide 9: Signs repositioning is improving customer experience – Example RBWM Mexico
RBWM Investment Case ... and there are signs that the repositioning is leading to improved customer experience – Example RBWM Mexico. Conduct Agenda Business performance Q1 2014 Q1 2015 § In 2013-2014, a new incentive framework was Revenues1 Sales Volumes2 implemented across the Group, remunerating
Slide 10: Our growth priorities have not changed
Growth Priorities Our growth priorities have not changed and we continue to optimise our portfolio of markets and businesses. Strategic actions Targeted outcome 2014 - 2017 1 Relationship-led Personal Lending § Invest in marketing, customer relationship management, § Principal RBWM lending balance1
Slide 11: Relationship-led Personal Lending
Relationship-led Personal Lending We have the capacity to take more credit risk in RBWM and the business is showing signs of volume growth. Principal RBWM lending balances and sales volume growth Actions to date § Global analytics capability improving the identification of +3% customer needs § New t
Slide 12: Wealth Management
Wealth Management Our investment in a differentiated Wealth offering is driving improved performance, with further opportunities for growth. Strong customer satisfaction with improving sales momentum We have built a clearly differentiated Wealth offering Appointments Financial reviews § We operate a
Slide 13: Asset Management
Asset Management Our Asset Management business delivers attractive returns, and is positioned to benefit from managed asset growth in Asia. Managed asset pools are forecast to grow strongly This growth provides opportunities for us USD Total § Distribution footprint aligned to forecast growth of Glo
Slide 14: Insurance
Insurance Insurance is accretive to the Group, with very strong exposure to high growth markets across Asia. Profitable and accretive returns for Group Significant growth opportunity, particularly in Asia USD § Asia’s share of the global middle class will almost double by Gross premium Emerging Asia
Slide 15: Digital
Digital Digital transformation will enable process simplification and accelerate channel migration, improving productivity and customer experience. Changing customer behaviour The Group’s streamlining programme will sustainably reduce RBWM’s costs Investment brings 2017 exit costs to 2014 levels c.7
Slide 16: Portfolio
Portfolio Within our portfolio of businesses, returns are driven by a combination of domestic scale and focus on affluent customers… Scale and returns for RBWM priority markets1 RBWM revenue2 x% of customers are Premier Strategic actions RoRWA3 Premier Premier § Maintain and increase In larger or we
Slide 17: Conclusion
Conclusion RBWM is focused on growth, and will invest to offset rising costs while optimising our portfolio of businesses. 2014 – 2017 Principal RBWM RoRWA walk1 Achieving the 2017 RoRWA § Our growth priorities have not changed. We will 6.3 continue to focus our investment on relationship-led lendin