HSBC Holdings PLC · LSE:HSBA
HSBC — Investor Day (May 2011)
22 slides from HSBC's investor day presentation, May 11, 2011
Slide 1: HSBC Holdings plc Investor Day
Abc 11 May 2011 HSBC HOLDINGS PLC INVESTOR DAY The presentation given today by Paul Thurston, Chief Executive Retail Banking and Wealth Management; David Fried, Chief Executive Insurance; and John Flint, Chief Executive Asset Management, is attached and will be available to view at www.hsbc.com. end
Slide 2: Retail Banking and Wealth Management Investor Day
11 May 2011 Retail Banking and Wealth Management Investor Day Paul Thurston Chief Executive Retail Banking and Wealth Management David Fried Chief Executive Insurance John Flint Chief Executive Asset Management
Slide 3: 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 and business of the Group. These forward- looking statements represent the Group’s expectations or beliefs concerning f
Slide 4: Retail Banking and Wealth Management – Overview
RBWM Overview Retail Banking and Wealth Management – Overview Overview PFS key historical financials (going forward RBWM)1 PBT, USDbn Operations in 61 markets 92 million customers 5.9 1.0 China Associates 3.5 4.8 Remainder of Business -2.3 US Drag on global results from -2.1 HSBC Finance USA r
Slide 5: Changing shape of the Business
RBWM Overview Changing shape of the Business Balance sheet mix Drivers USDbn Attracted strong growth in deposits (USD75bn), but +17% -16% revenues lower from significant reduction in deposit 525 450 465 spreads 391 Higher wealth revenues – e.g., Life, Pensions and Investments (LPI) +16% 2008-10
Slide 6: Key trends for Retail Banking & Wealth Management
Key trends for RBWM Key trends for Retail Banking & Wealth Management Pricing and Deposit spreads will be slow to recover regulation Regulatory and social pressure on pricing structures Technology increases access, straight through processing and customer experience Under 50s are more than t
Slide 7: Significant wealth creation in Faster Growing Markets, large pools of wealth in Mature Markets
Key trends for RBWM Significant wealth creation in Faster Growing Markets, large pools of wealth in Mature Markets Revenue growth by region Faster Growing Markets 2009 Global Wealth Management Market USDtn, total:USD101tn Wealth insurance premium growth (CAGR 2000-2009) US 29.0 9 UK 3.4 (1) Canada 2
Slide 8: Substantial potential for expansion in Faster Growing Markets
Key trends for RBWM Substantial potential for expansion in Faster Growing Markets Investible assets breakdown Life premiums Breakdown of investible assets by type, 2009 Life premiums as % of GDP 14% Taiwan 12% Hong Kong 10% SAR 8% 6% Singapore India Thailand 4% Malaysia Mainland 2% China Vietnam 0%
Slide 9: HSBC competitive advantages
HSBC position and competitive advantages HSBC competitive advantages Strong brand and recognised financial strength Financial and brand strength Strong funding position gives growth capacity and continuity Global propositions: HSBC Premier, HSBC Advance – 4m+ Premier customers Global – Growth
Slide 10: Opportunities and challenges in the portfolio
HSBC position and competitive advantages Opportunities and challenges in the portfolio Number of Description PBT USDm, 20101 branches Large scale Significant scale in Hong Kong and the UK 4,141 1,514 positions Significant presence in 13 markets with high Major growth potential including: Brazil,
Slide 11: Strategic direction and actions overview
Strategic direction and actions Strategic direction and actions overview Retail Banking and Wealth Management World class banking and wealth solutions Develop world class Leverage global expertise Portfolio management to 1 wealth management for 2 3 in retail banking drive superior returns retail con
Slide 12: Develop world class wealth management for retail consumers
Strategic direction and actions 1 Develop world class wealth management for retail consumers Key actions Description Build on existing capabilities Drive global wealth management structure Drive globally consistent investment strategies, asset allocation models, propositions and product solution
Slide 13: Leverage global expertise in retail banking
Strategic direction and actions 2 Leverage global expertise in retail banking Key actions Description Grow retail banking in key markets where Acquire and build relationships we have or can achieve scale Shared distribution platform Move our retail business to a global Global strategy and stan
Slide 14: Portfolio management to drive superior returns
Strategic direction and actions 3 Portfolio management to drive superior returns Key actions Description Build out wealth management where we already have Focus capital and resources where we can scale presence build businesses with attractive returns Continue to build scale in attractive growth
Slide 15: Insurance – current position
HSBC position and competitive advantages Insurance – current position Profile Business Mix1 Contribution by region Insurance in HSBC USDbn Operating in 54 countries and territories 2.0 Manufacturing life, non-life and pensions in 1.0 more than 20 markets c.20 million policyholders as at end De
Slide 16: Insurance – Leverage our winning Bancassurance model
Strategic direction and actions Insurance – Leverage our winning Bancassurance model Key opportunities Key actions Growth market focused with favourable trends Capture growth opportunities driven by longevity trends, – Ageing population wealth creation and accumulation – Increasing propensity to
Slide 17: Asset Management – current position
HSBC position and competitive advantages Asset Management – current position Profile Business mix Distribution By Region, 2010 AMG in HSBC Approx. 400 investment professionals in 19 Asia countries Europe USD439bn AUM (as at end 2010) USD145bn AUM in Faster Growing Markets related Latin America
Slide 18: Asset Management – Leverage capabilities and expertise
Strategic direction and actions Asset Management – Leverage capabilities and expertise Key opportunities Key actions RBWM’s customer opportunity Investments as a percentage of total relationship Deliver HSBC branded core product set relevant for balances are 20%, below industry norms each of pri
Slide 19: Key take-aways
Key take-aways Retail Banking and Wealth Management Competitive Advantages Financial and brand strength Universal banking model Global capabilities including HSBC Premier Successful Bancassurance model Strong and focused Asset Management business Target RoRWA Strategic Actions 2.0%- 3.0% Develop wor
Slide 20: Basis of preparation (1/2)
Basis of preparation (1/2) Actuals Actual numbers presented are on a reported basis and include the effect of movements in the fair value of HSBC’s own debt related to credit spreads AMG The Global Asset Management business formed part of GBM in 2010, but has been included in RBWM for the RoRWA targ
Slide 21: Basis of preparation (2/2)
Basis of preparation (2/2) RoE Return on equity (‘RoE’) is profit attributable to ordinary shareholders of the parent company divided by average ordinary shareholders’ equity RoRWA The metric, return on risk weighted assets (‘RoRWA’), is the profit before tax divided by average RWAs. The RWAs have b
Slide 22: Acronyms and definitions
Acronyms and definitions A/D ratio Ratio of customer advances to customer deposits ETF Exchange traded funds NYSE New York Stock Exchange Advance HSBC Advance, a global banking proposition for the EU European Union OCC Office of the Comptroller of Currency mass-affluent segment of customers AFS Avai