HSBC Holdings PLC · LSE:HSBA
HSBC — Corporate Update (March 2017)
16 slides from HSBC's corporate update, March 2017
Slide 1: US Business Update
March 2017 US Business Update
Slide 2: Important notice and forward-looking statements
US Business Update 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 securi
Slide 3: Key Messages
US Business Update Key Messages 1 US remains a strong and growing contributor to the Group Network 2 The US turnaround strategy is in process 3 Consumer and Mortgage Lending (‘CML’) asset sales progress has exceeded expectations, with near complete exit expected by year-end 2017; potential capital a
Slide 4: Agenda
US Business Update Agenda A US and the HSBC Network B HSBC US market position C HSBC US performance 4
Slide 5: The US economy remains globally significant
US and the HSBC Network The US economy remains globally significant Largest economy globally in 2015 Strong trade fundamentals Top 5 economies by GDP1, 2015, USDtrn % of world total US Exports/Imports1, 2020, USDbn 2015-20 17.9 CAGR 10.8 US-NAFTA 1,550 6.3% 4.1 3.4 2.8 US China Japan Germany UK US-C
Slide 6: The US is highly connected with other regions with largest trade volume across NAFTA
US and the HSBC Network The US is highly connected with other regions with largest trade volume across NAFTA US key trade corridors 2016 value of exports1, USDbn Trade with Europe Germany 49 UK 55 France 31 Europe (EU) 270 Trade within NAFTA Trade with Asia Canada 267 India 21 Mexico 231 China 116 S
Slide 7: Agenda
US Business Update Agenda A US and the HSBC Network B HSBC US market position C HSBC US performance 7
Slide 8: HSBC US Overview
HSBC US Market Position HSBC US Overview HSBC presence in US (ex-CML) HSBC US1 Strategy: National universal bank operating across four GB&M, CMB, PB GB&M, CMB CMB, PB CMB Global Businesses focused on international connectivity, and Corporate Center2 RBWM Branches 12th largest US bank by assets3
Slide 9: Agenda
US Business Update Agenda A US and the HSBC Network B HSBC US market position C HSBC US performance 9
Slide 10: North America Geographic Results
HSBC US Performance North America Geographic Results1 Group Reporting Basis (‘GRB’) Highlights North America Excl ($m) North America CML CML • Principal North American businesses are located in Year Ended December 31, 2015 2016 2015 2016 2015 2016 the US and Canada. Operations in the US are primaril
Slide 11: 2016 Reported results
HSBC US Performance 2016 Reported results HUSI1 2016 FY Results GRB Highlights Year Ended December 31, 2016 ($m) RBWM CMB GB&M PB Other(2) Total • HUSI is the US bank holding company for HSBC Bank USA, National Association. HUSI Legal Entity Revenue 1,177 962 1,546 291 18 3,994 LICs (60) (50) (384)
Slide 12: CML wind down continues to generate surplus capital
HSBC US Performance CML wind down continues to generate surplus capital Capital calculations in accordance with US banking regulations Highlights Capital Metrics 2015 2016 • HSBC North America Holdings (‘HSBC North America’), HSBC USA and HSBC Bank USA are HSBC North America Holdings Inc.1 Common Eq
Slide 13: CML portfolio reduction continues
HSBC US Performance CML portfolio reduction continues IFRS CML Wind Down Strategy Loan sales have been pursued actively since 2013. Recent investor appetite has enabled this sell down to accelerate The whole of the remaining portfolio was designated as held for sale at the end of 3Q16 under US G
Slide 14: Appendix
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Slide 15: Recap: 2015 Investor Day commitment to improve US Principal Business returns
Appendix: HSBC US Performance Recap: 2015 Investor Day commitment to improve US Principal Business1 returns 2015 Investor Day target RoRWA Key return improvement actions Leverage Group network to capture 2014 Adjusted 0.4% inbound growth and continue to support outbound GB&M Drive commercial cli
Slide 16: Simplified Structure of North America primary entities as of December 31, 2016
Appendix: HSBC US Performance Simplified Structure of North America primary entities as of December 31, 2016 HSBC Holdings plc HSBC Overseas Holdings (UK) Ltd HSBC North HSBC Bank America Canada Holdings Inc. HSBC Finance HSBC Securities HSBC USA Inc. Corporation (USA) Inc. HSBC Bank USA, N.A. 16