Hsbc Holdings Plc · LSE:HSBA
Hsbc — H1 2014 Earnings Presentation
23 slides from Hsbc's earnings presentation, Aug 4, 2014
Slide 1: Overseas Regulatory Announcement
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Slide 2: Interim Results 2014 Audio Webcast and Conference Call
Abc 4 August 2014 HSBC HOLDINGS PLC INTERIM RESULTS 2014 AUDIO WEBCAST AND CONFERENCE CALL There will be an audio webcast presentation and conference call today for investors and analysts. The speakers will be: Douglas Flint, Group Chairman; Stuart Gulliver, Group Chief Executive; and Iain Mackay, G
Slide 3: HSBC Holdings plc Interim Results 2014 Presentation to Investors and Analysts
HSBC Holdings plc Interim Results 2014 Presentation to Investors and Analysts
Slide 4: 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 5: 2011-2013: Created a stronger bank with platform for growth
2011-2013: Created a stronger bank with platform for growth Achievements 2011-2013 Achievements 2011-2013 Key financials5 2010-13 Re-defined the strategic core of HSBC 72.3 Revenue, 68.2 68.3 64.6 741 disposals/exits announced since 2011, reduction of USDbn 1.4 10.4 14.5 6.8 c.USD97bn RWAs2 and
Slide 6: Revenue development 2011-2013
Revenue development 2011-2013 Growth in Global Business revenues Reported revenue (USDbn) Revenue drivers 2010-13 (USDbn) 2013 vs. 2010 Global Business revenue4 (USDbn) CAGR % 72.3 better/(worse) 2010 58.9 9.3 68.2 68.2 68.3 64.6 Principal 14.5 Revenue associated 1.9 3% 6.8 1.4 (7.8) RBWM 10.4 0.6 w
Slide 7: Value of the network
Value of the network Created unrivalled network to support global trade and capital flows HSBC network coverage1 (USDtrn) HSBC is present in all the major trade corridors 2013 CAGR Strong 2020 trade growth forecasts3 (USDbn) 2013-2020 % presence 74 19 1.4 Mainland China - Hong Kong 1,363 12 Rest o
Slide 8: Leveraging the international network to improve market position
Value of the network Leveraging the international network and HSBC client franchise to improve our market position in strategic products Key products of international and business connectivity (selected examples) Products1 2013 Revenues Measure Market growth, CAGR% HSBC’s market share, % USDbn 2011-
Slide 9: 2014-2016: Executing three equally weighted priorities
2014-2016: Executing three equally weighted priorities Strategic priorities Investment priorities for the Group Continue to recycle RWAs from low Global Trade Reinforce HSBC’s leading position in trade into high performing businesses & Receivables Strengthen position in high growth products/co
Slide 10: 1H14 results
1H14 results 8
Slide 11: Interim results 2014 Financial highlights
Interim results 2014 Financial highlights1 Summary financial highlights, USDbn Better/(worse) 1H13 2H13 1H14 1H14 vs 1H13 1H14 vs 2H13 Reported PBT 14.1 8.5 12.3 (12)% 45% Underlying2 PBT 13.0 8.6 12.6 (4)% 46% Key ratios, % 1H13 2H13 1H14 KPI Return on average ordinary shareholders’ equity3 12.0 6.
Slide 12: Reconciliation of Reported to Underlying results
Financial overview Reconciliation of Reported to Underlying results USDm Variance 1H14 1H13 2H13 1H14 vs 1H13 vs 2H13 Reported profit before tax 14,071 8,494 12,340 (1,731) 3,846 Includes: FVOD1 (19) (1,227) (215) (196) 1,012 Gain on de-recognition of Industrial Bank as an associate 1,089 - - (1,089
Slide 13: Significant items included in underlying profit before tax
Financial overview Significant items included in underlying profit before tax USDm Variance 1H14 1H13 2H13 1H14 vs 1H13 vs 2H13 Underlying profit before tax 13,017 8,627 12,560 (457) 3,933 Includes the following significant items (reported basis): Revenue Restructuring and repositioning: Net gain on
Slide 14: Regional profit contributions
Profit before tax analysis Regional profit contributions1: growth in four out of five regions compared with 1H13 Geographical regions’ reported PBT (USDm) 9,262 1,227 7,894 646 369 6,591 2,258 2,768 (943) 7,389 7,562 6,933 989 1,506 909 785 666 3,093 3,248 825 555 466 374 2,202 18 5 17 1,200 987 1,2
Slide 15: Global Business profit contributions
Profit before tax analysis Global Business profit contributions1 Global Businesses reported PBT (USDm) 5,723 61 5,033 208 4,771 9 4,133 4,308 13 3,267 3,382 3,718 3,045 35 477 278 6 138 411 5,454 5,158 4,798 4,183 3,960 3,988 3,811 3,858 3,791 108 85 364 1 524 - 382 366 (40) (484) (405) (298) (2) (8
Slide 16: Revenue analysis
Revenue analysis Global Business revenues broadly unchanged, growth in CMB Reported revenue1 (USDm) 1H14 vs 1H13 Global Business revenue2 1H14 vs 1H13 Global Business revenue2 (USDm) (USDm) better/(worse) 34,372 Global Business % revenue better/(worse) Personal down USD79m lending Principal 1,652 (1
Slide 17: Operating expenses analysis
Operating expenses analysis Continued investment in Risk, Compliance and Global Standards Reported operating expenses (USDm) 1H14 vs 1H13 operating expenses1 Global Business operating expenses Global Business (USDm) Drivers (USDbn) up USD756m % % better/(worse) better/(worse) 20,157 Principal (463)
Slide 18: Loan impairment charges
Loan impairment charges1 Lower loan impairment charges primarily in Europe, North America and Latin America Loan impairment charges (USDm) 2,966 2,966 2,719 2,719 15 18 190 1256 1,839 38 1,839 1206 1,143 1,241 6 49 685 996 563 501 1,619 186 8 1,422 300 1,222 411 Of which is US 889 396 309 180 704 21
Slide 19: Capital adequacy: Strong capital generation
Capital adequacy Strong capital generation Movement in common equity tier 1 capital (USDbn) Common equity tier 1 ratio movement (%) CRD IV1 Yr1 Trans End point 0.6 At 31 December 2013 131.2 132.5 11.3 0.1 0.2 11.2 Profit for the half year 10.0 10.0 (0.3) (0.1) Dividends net of scrip2 (0.6) (0.6) Sec
Slide 20: Profitability: Drivers of returns
Profitability Drivers of returns Group RoE1 Group RoRWA % 1H13 2H13 1H14 Reported 2.6 1.5 2.1 Underlying 2.4 1.6 2.1 12.0 10.7 6.5 Underlying, excluding legacy 2.8 1.7 2.3 businesses2 1H13 2H13 1H14 - of which significant items 0.0 (0.5) (0.1) RoRWA by global business3 (%) 4.6 4.0 3.9 2.8 3.0 3.3 2.
Slide 21: Appendix
Appendix 19
Slide 22: Global Business overview
Global Business overview RBWM 2010 to 2013 reported revenue1 CMB 2010 to 2013 reported revenue1 GB&M 2010 to 2013 reported revenue1 (USDbn) (USDbn) (USDbn) 33.6 33.5 33.9 18.9 18.3 19.2 17.1 26.7 16.6 16.4 1.1 0.5 15.6 0.5 8.0 8.1 7.1 0.9 0.5 13.8 1.1 0.6 0.1 1.3 0.5 0.9 0.1 0.1 18.1 17.3 18.6 26.2
Slide 23: Issued by HSBC Holdings plc Group Investor Relations
The view from HSBC Building, 8 Century Avenue, Pudong, Shanghai The view from HSBC Main Building, 1 Queen’s Road Central, Hong Kong SAR The view from HSBC Group Head Office, 8 Canada Square, London Cover images: internationalisation of the renminbi The images show the views from HSBC’s head offices