Hsbc Holdings Plc · LSE:HSBA
Hsbc — Investor Day (May 2023)
96 slides from Hsbc's investor day presentation, May 2023
Slide 1: HSBC Asia seminar for Investors and Analysts | Day One
Asia HSBC Asia seminar for Investors and Analysts | Day One May 2023
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: HSBC Asia seminar | Day One
HSBC Asia seminar | Day One Introduction to HSBC Asia 03 Asia finance 14 Asia transformation 23 Asia risk 30 HSBC Hong Kong 41 Mainland China 51 CMB Hong Kong and mainland China 62 WPB Hong Kong 74
Slide 4: Introduction to HSBC Asia
Introduction to HSBC Asia David Liao | Co-CEO, Asia Pacific Surendra Rosha | Co-CEO, Asia Pacific
Slide 5: HSBC Asia – key highlights
Asia intro HSBC Asia – key highlights Solid macroeconomic growth outlook particularly in India, China and South & South-East 1 Asia (S&SEA) 2 Growth opportunities aligned to HSBC’s competitive strengths Leading international bank in Asia with a distinct network to capture the largest growth 3 opport
Slide 6: Asia’s economic growth is diversifying
Asia intro Asia’s economic growth is diversifying Projected real GDP growth rate1 Asia projected banking revenue pool growth3 2023 CAGR, 2022-2025 India 5.9% China >9% India >8% China 5.2% ASEAN-52 4.5% Wholesale 8.2% World 2.8% Wealth4 9.0% 1. IMF World Economic Outlook, as of April 2023 3. Source:
Slide 7: HSBC Asia: distinct footprint, multiple engines of growth and profitability
Asia intro HSBC Asia: distinct footprint, multiple engines of growth and profitability Number 1 international bank in most of our 6 key markets FY22 #1 Trade Finance Bank in Mainland China Asia Pacific India $0.9bn PBT (excl. associates) Euromoney Trade Finance $0.9bn PBT Largest foreign bank1, 14
Slide 8: Leading client franchise and capabilities underpinning our growth
Asia intro Leading client franchise and capabilities underpinning our growth 2022 HSBC Asia PBT1 by business, $bn Highlights Growth vs. FY21 Leading retail bank in Hong Kong; wealth hubs in Hong Kong and Singapore Accelerating wealth business growth throughout the region with organic and WPB 5.0
Slide 9: Our international network
Asia intro Our international network c.60% of wholesale client business1 in Asia is cross-border Asia-linked wholesale cross-border client business1 by region 2022 HSBC Asia client business1 Europe c.25% c.$9bn c.$5bn Between Hong Kong c.5% North America MENA and mainland China c.30% c.25% Americas
Slide 10: Leading international bank in Asia for corporates and institutions
Asia intro Leading international bank in Asia for corporates and institutions Average client business3 per mastergroup4 c.95% coverage of Asia Pacific >5k non-Asia corporate clients 2022 client business3, by number of sites GDP, c.99% merchandise trade1 served in Asia >20x c.45% of the Group's whole
Slide 11: Investing and growing to serve Asia’s wealth needs
Asia intro Investing and growing to serve Asia’s wealth needs Asia continues to drive financial wealth creation HSBC is positioned to serve Asia’s wealth needs Total financial wealth1, $tn CAGR HSBC Asia wealth 5.2 5.7 4.5 2016-26 revenue, $bn Asia insurance market 355 0.2 0.2 (1.2) impacts, $bn Asi
Slide 12: Hong Kong – positive outlook for the future
Asia intro Hong Kong – positive outlook for the future Hong Kong key financial metrics Hong Kong revenue, $bn +12% 15.5 Hong Kong borders have reopened; getting back to business as 13.8 usual HSBC is the market leader across many products Strong track record of growth, positive outlook for the
Slide 13: HSBC in mainland China – leading international bank and a bridge for our clients
Asia intro HSBC in mainland China – leading international bank and a bridge for our clients Mainland China key financial metrics Revenue, $bn China’s economy is opening up, continued emphasis on increasing +12% international cooperation 2.8 2.5 Policy emphasis on safety, quality and stability of
Slide 14: HSBC Asia - conclusion
Asia intro HSBC Asia - conclusion Solid macroeconomic growth outlook particularly in India, China and South & South-East 1 Asia (S&SEA) 2 Growth opportunities aligned to HSBC’s competitive strengths Leading international bank in Asia with a distinct network to capture the largest growth 3 opportunit
Slide 15: Asia finance
Asia finance Ming Lau | Chief Financial Officer, Asia Pacific and Global CMB
Slide 16: Asia: HSBC’s home and core to Group growth ambitions
Asia finance Asia: HSBC’s home and core to Group growth ambitions Good HSBC Asia FY22 performance, delivering a RoTE1 of 12.3%, up 1.7ppts vs. FY21; strong 1 start to FY23, 1Q23 PBT up >100% vs. 1Q22 Strong balance sheet; well capitalised with 1Q23 CET1 ratio2 of 16.1%, highly liquid with 2 1Q23 LCR
Slide 17: HSBC Asia represents c.50% of the Group across key financial metrics
Asia finance HSBC Asia represents c.50% of the Group across key financial metrics HSBC Asia dividend trend, $bn HSBC Asia as a proportion of Group Ordinary dividends paid in the period1 FY22 $53.7bn $19.4bn $924.9bn $1,570.3bn $839.7bn 8.5 7.3 6.7 33% HSBC Asia as a proportion of 5.9 51% 49% 50% 5
Slide 18: FY22 and 1Q23 HSBC Asia financial performance
Asia finance FY22 and 1Q23 HSBC Asia financial performance Diversified across businesses $bn 1Q231 1Q221 Δ FY22 FY21 Δ FY22 NII 4.2 2.8 51% 16.2 12.6 28% Non-NII 4.1 2.8 49% 10.1 10.4 (3)% Revenue (1)% 45% 27% 28% $26.3bn Revenue 8.3 5.6 50% 26.3 23.0 14% ECL (0.1) (0.3) 74% (2.1) (0.8) >(100)% PBT
Slide 19: Historical performance
Asia finance Historical performance HSBC Asia financial performance, $bn HSBC Asia NIM and key rate averages 57% 49% 52% IFRS 4 IFRS 17 41% 2.06% 2.02% 1.95% 28.0 1.88% 1.84% 26.3 1.75% 24.4 23.0 1.67% 1.62% 11.3 10.1 462 17.9 10.0 10.4 1.37% 367 390 12.1 11.6 13.0 301 202 189 222 192 16.7 14.4 16.2
Slide 20: Differentiated balance sheet with stable and diversified deposits
Asia finance Differentiated balance sheet with stable and diversified deposits HSBC Asia loans and deposits, $bn HSBC Asia deposit surplus trend, $bn Hong Kong deposit mix, $bn FY22 1Q23 784 784 309 310 533 1,977 300 TMD 25% 242 342 289 53% 475 475 232 164 278 CASA 75% 91 442 47% 311 197 221 220 Loa
Slide 21: Capital and liquidity
Asia finance Capital and liquidity HSBC Asia CET1 ratio trend, % Funding and liquidity2 Highly liquid balance sheet with 4Q22 weighted HQLA of $242bn, equivalent 17.2 17.2 16.1 to 31% of customer deposits 15.4 15.3 Liquidity ratios well above regulatory requirements FY22 FY21 Δ LCR3 157.8% 154.3
Slide 22: Outlook
Asia finance Outlook $bn 1Q231 FY22 1Q221 Outlook Current interest rate environment is positive for HSBC Asia; (2yr) further growth expected as wealth and capital market activity NII 4.2 16.2 2.8 levels and sentiment normalise Non-NII 4.1 10.1 2.8 Credit environment improved and mainland China C
Slide 23: HSBC Asia has distinctive strengths and is positioned to grow in a diversified way
Asia finance HSBC Asia has distinctive strengths and is positioned to grow in a diversified way 1 Strong deposit franchise and surplus liquidity, well positioned to benefit from higher rates 2 Well capitalised, supporting self-funding of Asia business growth aspirations Continued significant dividen
Slide 24: Asia transformation
Asia transformation David Grimme | COO, Asia Pacific
Slide 25: Asia transformation – today we will cover
Asia transformation Asia transformation – today we will cover: 1 $1.1bn gross savings realised in Asia through the Group Transformation Programme (GTP) 2 Investing c.$6bn in Asia between 2021-25 Vision 27 Technology Strategic Plan will enable digitisation at scale, delivering through four 3 pillars:
Slide 26: Asia Global Transformation Programme 2020-2022
Asia transformation Asia Global Transformation Programme 2020-2022 Asia GTP was a large-scale operational transformation that has driven a sustainable increase in productivity, efficiency and process simplification. The $1.1bn of savings and c.11k reduction in gross positions have funded c.8k growth
Slide 27: A five-year strategic transformation programme investing in people and technology
Asia transformation A five-year strategic transformation programme investing in people and technology Commitment Ambition Strategic themes To become the leading bank for Asian Growth acceleration 1 wealth management To invest c.$6bn1 in Asia Enhanced returns between 2021-25 To be the leading commerc
Slide 28: Enabling growth across our businesses
Asia transformation Enabling growth across our businesses Levers Outcomes1 Expanding our presence Private Bank - launched Thailand Private Banking and expanded our presence in mainland China and enhancing our Launched >35 products through our asset management in-house manufacturing Wealth & prop
Slide 29: HSBC Technology Strategy Vision ’27
Asia transformation HSBC Technology Strategy Vision ’27 – a five-year plan to create and deliver fast, easy, digital customer experiences Deliver outcomes for Simplifying our core banking platforms, demising legacy digital platforms in Asia, rewriting our code to bring Speed customers much faster
Slide 30: Asia transformation – summary
Asia transformation Asia transformation – summary 1 Maintaining our focus on cost efficiency through our transformation programme 2 Enhancing our digital proposition to make banking with us easier for our customers Upgrading our core architecture and increasing cloud adoption to increase speed and 3
Slide 31: Asia risk
Asia risk Martin Haythorne | Chief Risk Officer, Asia Pacific
Slide 32: Key risks
Asia risk Key risks IT and operational Credit risk resilience ESG risk Macroeconomic risk Financial crime risk Model risk Digitisation and IBOR transition technological advances Geopolitical risk Treasury risk 31
Slide 33: Key risks
Asia risk Key risks IT and operational Credit risk resilience ESG risk Macroeconomic risk Financial crime risk Model risk Digitisation and IBOR transition technological advances Geopolitical risk Treasury risk 32
Slide 34: Balanced and diversified product and sector portfolio in Asia
Asia risk Balanced and diversified product and sector portfolio in Asia Gross loans and advances to customers Corporate and commercial credit exposure At 31 December 2022 At 31 December 2022, by sector By booking location By product 10% 7% 3% 19% 26% 6% 7% 31% $480bn $480bn 51% $246bn 20% 11% 63% 3%
Slide 35: Loan Impairment Charges / Expected Credit Losses
Asia risk Loan Impairment Charges / Expected Credit Losses IAS 39 IFRS 9 1.11% 497 480 477 480 453 Asia loan growth slowed to 1% CAGR 428 since 2018, from 7% post-global financial crisis (2010-2018 period), with growth in 364 358 367 Rest of Asia (2.4%) outpacing Hong Kong 0.76% 345 (0.5%) between
Slide 36: Asia corporate and commercial portfolio overview
Asia risk Asia corporate and commercial portfolio overview Corporate and commercial Sub-standard and credit impaired exposure portfolio by credit quality, $bn trend, $bn FY22 Asia CRE exposures 9.2 ECL allowance Stable credit quality over the past 3 years, excl. mainland China CRE exposure 91 Sub-
Slide 37: Hong Kong commercial real estate
Asia risk Hong Kong commercial real estate Gross Hong Kong CRE exposures at 31 December 2022 By credit quality By LTV band of collateralised exposure 5% 4% Hong Kong accounts for 75% of total Asia CRE 9% 2% exposures 24% 69% of collateralised exposures have an LTV 25% ratio below 50% Excluding m
Slide 38: Mainland China commercial real estate
Asia risk Mainland China commercial real estate Mainland China CRE exposures by booking location and credit quality At 31 December 2022 Total mainland China CRE exposure $16.8bn, down $3.0bn vs. 2Q22, primarily due to repayments in the Hong Kong booked Memo: portfolio Mainland $m Hong Kong Hong Ko
Slide 39: Mainland China risk exposure
Asia risk Mainland China risk exposure Mainland China risk exposure, $bn Wholesale lending analysis, $bn Corporate lending by sector, $bn 178.8 178.4 176.0 176 1.9 2.1 2.2 Transportation Automotive 34.7 33.9 40.1 Consumer Goods & Retail Wholesale 4.4 3.9 Other Sectors Metals & Mining 4.7 Mortgages 3
Slide 40: Hong Kong residential mortgage portfolio
Asia risk Hong Kong residential mortgage portfolio Asia retail exposures Hong Kong mortgage exposures Stable and resilient credit performance in 2022, 98 101 early signs of positive outlook in 2023 86 91 2% 79 High quality portfolio with low delinquencies; low LTV and predominantly owner-occupie
Slide 41: Key messages
Asia risk Key messages 1 Diversified portfolio – by geography, industry sector and business type Stable financial risk performance across wholesale and retail; mainland China CRE has been 2 challenging but is evolving 3 Strong capital and liquidity foundations helping enable future growth 4 Hong Kon
Slide 42: HSBC Hong Kong
HSBC Hong Kong Luanne Lim | CEO, HSBC Hong Kong
Slide 43: Introduction
HSBC Hong Kong Introduction 1 Hong Kong has a track record of growth and resilience, with a positive outlook Founded in Hong Kong, we are the city’s largest financial institution, participating across the economy and 2 society 3 We have a strong strategic position and an attractive financial profile
Slide 44: Hong Kong: a scale financial centre, uniquely placed in Asia
HSBC Hong Kong Hong Kong: a scale financial centre, uniquely placed in Asia Strong fundamentals Track record of growth and resilience 2010-2022 CAGR $4.8tn equity market cap1 Total banking 1,980 Deep capital 1,767 sector deposits, 7.0% markets #4 globally for FX turnover2 $bn8 880 2010 2015 2019 202
Slide 45: Positive outlook for continued growth
HSBC Hong Kong Positive outlook for continued growth Rapid return to normal post-Covid-19 Positive future outlook Ramp-up in visitors Strengthening economy2 Reaffirmation of One Country Two Systems 2.5m in March 20231 1Q GDP +5.3% qoq Retail sales +24% yoy Active government policy agenda3
Slide 46: HSBC: a pillar of Hong Kong’s economy and society
HSBC Hong Kong HSBC: a pillar of Hong Kong’s economy and society Founded in Hong Kong in 1865, HSBC has been a permanent presence in Hong Kong over our 157-year history Today, we continue to play an integral role in the city’s growth and community 5.4m >300k Sole USD Clearing Settlement Bank Bank no
Slide 47: HSBC in Hong Kong—significant scale and market leadership
HSBC Hong Kong HSBC in Hong Kong—significant scale and market leadership FY22 Hong Kong PBT, $bn Leading market positions (HSBC Hong Kong only) Total deposits1 19% #1 Balance Sheet Total 6% 4.5 1.4 1.0 (0.8) $6.1bn vs. FY21 Total assets1 19% #1 Mutual funds2 32% #1 Product Market Share WPB CMB GBM C
Slide 48: Strong strategic positioning
HSBC Hong Kong Strong strategic positioning Franchise strengths (HSBC Hong Kong) Customer base: 5.4m WPB, >300k corporate Referrals of executives from GBM and CMB Scale Private Significant balance sheet Banking clients are a significant source of net new invested assets ‘One-stop shop’ across
Slide 49: Continuing to accelerate and innovate
HSBC Hong Kong Continuing to accelerate and innovate WPB Digital Improving digitisation and customer experience Asian Wealth Increasing wealth penetration of customer base Greater adoption Agile improvement Strong performance Increasing penetration PayMe 2x +1 Net New Invested of customers with HK’s
Slide 50: Accelerating financial profile
HSBC Hong Kong Accelerating financial profile Hong Kong PBT Market share (HSBC Hong Kong) YoY Δ +6% #1 Total Deposits2 1ppts Balance Sheet (982) (322) #1 Total Assets2 1ppts 2,674 Includes insurance (1,011) insurance 6,111 5,763 manufacturing (11) #1 Mutual Funds3 2ppts Product Market Share market i
Slide 51: Key messages
HSBC Hong Kong Key messages 1 Hong Kong remains a key international financial centre, with strong Central Government support 2 HSBC is an integral part of Hong Kong’s history, growth and community 3 We have a strong strategic position, an attractive financial profile and scale 4 From a position of m
Slide 52: Mainland China
Mainland China Mark Wang | President and CEO, HSBC Bank China
Slide 53: Introduction
Mainland China Introduction 1 Our business has shown great resilience in difficult times Mainland China’s economy is in rebound with positive growth outlook and growth 2 opportunities aligned to our competitive strengths HSBC is the leading international bank in mainland China1 with strong client fr
Slide 54: World’s second-largest economy; intrinsically connected to the rest of world
Mainland China World’s second-largest economy; intrinsically connected to the rest of world A global front-runner of GDP growth1 Strong growth in banking revenue pool2 6,778 10 GDP, $tn 18 118 $bn 5,597 102 5,090 2,146 87 22 18 RoW 1,309 1,646 RoW 14 25 831 17 21 668 685 Asia-Pacific, Asia-Pacific,
Slide 55: YRD, GBA and JJJ: regional and mega city growth drivers
Mainland China YRD, GBA and JJJ: regional and mega city growth drivers… advanced and internationally oriented Leading in advanced and emerging growth industries, and with a concentration of …internationally oriented; economic scale comparable affluent families… to some leading advanced economies Key
Slide 56: HSBC is the leading foreign bank in mainland China
Mainland China HSBC is the leading foreign bank in mainland China, underpinned by a strong client franchise and capabilities Market positioning Differentiators Largest foreign bank by assets, >2x nearest competitor1 141 outlets with >80% located in GBA, YRD, JJJ and c.90% Global network capabili
Slide 57: Mainland China’s wholesale client business is primarily cross-border
Mainland China Mainland China’s wholesale client business is primarily cross-border; WPB outbound momentum also strong Wholesale FY22 wholesale cross-border client business1 by corridor Corridor business recovering to pre- pandemic levels Cross-border business landscape is North America reshapin
Slide 58: FY22 PBT of $3.2bn
Mainland China FY22 PBT of $3.2bn Revenue Revenue by by type global business PBT Lending Deposits $bn $bn $bn $bn $bn +6% +6% +4% +7% +6% CAGR CAGR CAGR CAGR CAGR 2.8 2.8 3.2 50.5 56.9 2.8 10.2 2.3 2.3 0.7 45.7 15.3 39.0 0.5 10.8 1.8 9.8 2.4 0.9 22.3 2.0 20.2 0.7 13.9 1.8 16.0 0.9 1.1 1.0 17.9 21.0
Slide 59: Wholesale: our leading role as the bridge for international business
Mainland China Wholesale: our leading role as the bridge for international business Overview Our strengths Focused on serving international business and International connectivity Universal banking model Coverage and expertise offering specialist coverage in growth sectors We serve 25% of foreign
Slide 60: Wealth and Personal Banking: progressing our vision of being a leading international bank and wealth manager
Mainland China Wealth and Personal Banking: progressing our vision of being a leading international bank and wealth manager Strategic focus Key pillars Wealth capabilities and strengths Expansion of Pinnacle’s No.1 Qualified Domestic Institutional reach by development of U/HNW solutions in wealth
Slide 61: Wealth and Personal Banking: comprehensive wealth management matrix
Mainland China Wealth and Personal Banking: comprehensive wealth management matrix A new era of wealth customisation 158 year Premium Product Content Bespoke heritage Service Engine Tools Wealth 60
Slide 62: Summary
Mainland China Summary Largest foreign bank in mainland China1 with strong franchise capabilities and a 1 commitment to the market 2 Our strategic focus areas are aligned to capture growth opportunities in mainland China In wholesale, we are focused on internationally oriented, innovative and enviro
Slide 63: CMB Hong Kong and mainland China
CMB Hong Kong and mainland China Frank Fang | Head of CMB, HSBC Hong Kong
Slide 64: Key highlights
CMB HK & mainland China Key highlights Our Commercial Banking franchise in Asia caters to the needs of clients, leveraging our 1 international connectivity and wide suite of products We are a market leader in Hong Kong, with a diversified business of >300k customers and have 2 shown strong growth in
Slide 65: Our Commercial Banking franchise serves the international banking needs of clients in Asia
CMB HK & mainland China Our Commercial Banking franchise serves the international banking needs of clients in Asia and provides a strong suite of products We serve client needs across various stages of their lifecycle and across 16 markets in Asia Pacific Key product rankings Customer Business Banki
Slide 66: CMB Asia financial performance
CMB HK & mainland China CMB Asia financial performance CMB Asia $bn FY22 FY21 Δ Rising interest rates and resilient fees contributed to CMB Asia’s strong growth in FY22 NII 5.5 3.7 47% Non-NII 1.7 1.7 (2)% Revenue up 31% vs. FY21, with growth driven by transaction banking Revenue 7.2 5.5 31% and
Slide 67: CMB Hong Kong and mainland China financial performance
CMB HK & mainland China CMB Hong Kong and mainland China financial performance CMB Hong Kong CMB mainland China $bn FY22 FY21 Δ $bn FY22 FY21 Δ NII 3.1 2.0 57% NII 0.7 0.6 13% Non-NII 0.9 1.0 (10)% Non-NII 0.2 0.2 (2)% Revenue 4.0 3.0 35% Revenue 0.9 0.8 10% ECL (1.2) (0.2) >(100)% ECL (0.1) (0.0) >
Slide 68: We are a market leader in Hong Kong, with a diversified business
CMB HK & mainland China We are a market leader in Hong Kong, with a diversified business and supporting customers across all segments We support customers across their entire lifecycle We are a market leader Robust liquidity with strong deposit base Market share in Trade Finance at 83% 15% 2% Custom
Slide 69: Mainland China: Capture sustainable growth, focusing on international connectivity
CMB HK & mainland China Mainland China: Capture sustainable growth, focusing on international connectivity, growth sectors and digitised client journeys FY22 financial performance c.50% international3 customer base Strategic priorities International Domestic Mainland China contributed 12% of Asia
Slide 70: Greater Bay Area (GBA): Positioned to connect customers with opportunities
CMB HK & mainland China Greater Bay Area (GBA): Positioned to connect customers with opportunities across the integrated area GBA is the growth engine of mainland China Building our capabilities in the region GBA and rest of China GDP growth1, % GBA Business Connect: Provide 5 integrated product o
Slide 71: Digital capabilities built across customer journeys
CMB HK & mainland China Digital capabilities built across customer journeys Our simpler and faster digital banking services in Hong Kong have led to an improved customer experience Capabilities to be replicated to rest of Asia Open an account Channel NPS ranking improved to 2nd in First remote accou
Slide 72: New Economy Sectors: leveraging our innovating capabilities
CMB HK & mainland China New Economy Sectors: leveraging our innovating capabilities to support shifting customer needs and new business models New Economy Sectors are an attractive and growing opportunity Well positioned to incubate New Economy businesses Green Technology and Digital Health market s
Slide 73: Sustainability vision: Be the leading ESG bank for commercial banking clients
CMB HK & mainland China Sustainability vision: Be the leading ESG bank for commercial banking clients in Hong Kong and mainland China GBA ESG Index: First-in-market index to track ESG performance in the GBA c.$2.5bn of incremental sustainable HSBC ESG Academy: Free ESG education targeting SMEs finan
Slide 74: Summary
CMB HK & mainland China Summary Hong Kong CMB is a market leader across client segments and supported by a wide range of 1 products and robust liquidity with strong deposit base 2 We are the largest foreign commercial bank in mainland China1 3 We continue to focus on customer experience as a priorit
Slide 75: WPB Hong Kong
WPB Hong Kong Maggie Ng | Head of WPB, HSBC Hong Kong
Slide 76: Key messages
WPB Hong Kong Key messages 1 FY22 PBT of $4.5bn, equivalent to c.25% of Group PBT 2 We continue to differentiate our product offering and grow market share 3 Well positioned for future sustainable growth 75
Slide 77: Solid financial performance despite market headwinds in 2022
WPB Hong Kong Solid financial performance despite market headwinds in 2022 $bn FY22 FY21 Δ NII 6.9 4.6 49% Non-NII 1.8 3.4 (47)% o/w: Insurance market impacts (1.1) 0.2 >(100)% Strong growth in NII, driven by higher interest rates and Revenue 8.6 8.0 8% margin optimisation ECL (0.1) (0.1) (24)% Co
Slide 78: Maintained #1 market position in 2022; continue to grow market share
WPB Hong Kong Maintained #1 market position in 2022; continue to grow market share HSBC Hong Kong 2022 rank YoY 31.0 48.3% #1 0.2ppts Card spending volume1 30.8 49.4% 30.9 41.0% #1 1.3ppts Mutual funds turnover2 29.5 39.4% 25.1 39.1% #1 0.1ppts Mortgage balances3 25.2 39.2% Unsecured lending4 20.0 3
Slide 79: HSBC Hong Kong WPB
HSBC Hong Kong WPB
Slide 80: Well positioned for future sustainable growth
WPB Hong Kong Well positioned for future sustainable growth Diversified revenue mix Strong pipeline of customers to move up the continuum % of total, excluding insurance manufacturing market impacts1 Customers Revenue factor (% of total) per customer c.5% c.5% 0.3% 153x GPB c.45% 2% Jade 43x c.65% 6
Slide 81: Pull on four core levers to further anchor our growth
WPB Hong Kong Pull on four core levers to further anchor our growth Our customers Our core competencies Our distinct advantage Digital & customer Lending Wealth International experience & payments 80
Slide 82: Digital and customer experience: mobile first and always on
WPB Hong Kong Digital and customer experience: mobile first and always on Co-create our solutions with our customers, putting them at the centre Doubled mobile active customers 2022 2021 2020 2019 Mobile active customers, m 2.0 1.6 1.4 1.0 Control to customer Mobile X active, % 40% 31% 27% 20% New-t
Slide 83: Digital and customer experience: futureproofing our business
WPB Hong Kong Digital and customer experience: futureproofing our business #1 customer advocacy in banking in 20221 Creating the pipeline for the future 2022 2020 Market penetration among Average customer age, years Millennials HSBC sNPS Ranking #1 #4 +5ppts Brand awareness 93% 92% 51 49 55% 60% Bra
Slide 84: Wealth: unleash the wealth opportunities across our client base
WPB Hong Kong Wealth: unleash the wealth opportunities across our client base Deepen wealth penetration across the customer continuum Wealth products and channels 23% insurance & investment penetration (2020: 20%) Product Availability Mobile Accessibility Wealth revenue Wealth penetration factor per
Slide 85: Wealth: segmentation analytics to better serve our customer needs
WPB Hong Kong Wealth: segmentation analytics to better serve our customer needs Conser Buy-and- Dividend Advice Securities Trading Asset Observer Accumulator vatives Hold Earner Taker Guru Veteran Allocator Security Low Low Medium Low High High Low Low Low Investment Low Medium Low Medium Low Low Lo
Slide 86: Wealth: improved front line productivity and KPIs
WPB Hong Kong Wealth: improved front line productivity and KPIs Relationship manager Contact centre sales Branch iNPS: 78 Client meetings productivity productivity +11% +17% +30% +21pts vs. 2020 vs. 2020 vs. 2020 vs. 2020 Digital Capabilities Learning & Development Wealth shopping RM chat INSEAD p
Slide 87: Lending and payments: continuously innovate to excite the market
WPB Hong Kong Lending and payments: continuously innovate to excite the market Credit card spending New unsecured lending drawdowns Wealth lending balances +11% CAGR +32% CAGR +116% CAGR 2020 2021 2022 2020 2021 2022 2020 2021 2022 Deposit balances Mortgage drawdowns FX daily average turnover +2% +2
Slide 88: Lending and payments: credit cards
WPB Hong Kong Lending and payments: credit cards Need-based cards product range Integrated loyalty and rewards platform with scalability HSBC Reward+ app as a dedicated Day-to-day F&B & Card offers hub, connecting 1.5m+ Travel Lovers Online Shoppers users to external partners & Gourmet Lovers merc
Slide 89: Lending and payments: PayMe is the #1 wallet in Hong Kong
WPB Hong Kong Lending and payments: PayMe is the #1 wallet in Hong Kong Customers Active customers +25% +12% CAGR CAGR P2P market leadership with >75% market share1 2.9m PayMe users >60% Millennials and Gen Z base 2020 2021 2022 2020 2021 2022 Pay friends, family & 50k+ Peer-to-merchant (P2M
Slide 90: International: “Opening up a world of opportunity”
WPB Hong Kong International: “Opening up a world of opportunity” c.30% of our customers are international1 Favorable macro environment for international business Strong financial hub in Asia with scale financial infrastructure 100% International customer revenue is #1 in IPO fundraising worldwid
Slide 91: International: capturing the International Chinese opportunity
WPB Hong Kong International: capturing the International Chinese opportunity Three-pronged engagement approach Recapture our stronghold of international Chinese customers Daily average mainland visitor arrivals1 International Chinese NTB 1 Pre-arrival account opening (% of 2019)2 1 + 1 HSBC Premie
Slide 92: Summary: delivering increased market share, with a strong pipeline for future growth
WPB Hong Kong Summary: delivering increased market share, with a strong pipeline for future growth by… 1 Enhancing the customer experience; mobile first 2 Deepening and widening our wealth penetration 3 Innovating retail and payment products 4 Delivering our international customer proposition, looki
Slide 93: Appendix
Appendix Zp usec
Slide 94: Glossary
Appendix Glossary ANP Annualised new business premiums GDP Gross domestic product The Association of Southeast Asian Nations (ASEAN) is a trade bloc of 10 member states: Brunei, GPB Global Private Banking ASEAN Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and
Slide 95: Glossary
Appendix Glossary LICs Loan impairment charges and other credit risk provisions Mastergroup The consolidated client relationships of the ultimate parent company MENA Middle East and North Africa MME Mid-Market Enterprises, a CMB customer segment MSS Markets and Securities Services NBP New Business P
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