Hsbc Holdings Plc · LSE:HSBA
Hsbc — Debt Investor Presentation (March 2015)
16 slides from Hsbc's debt investor presentation, March 2015
Slide 1: Perpetual Subordinated Contingent Convertible Securities: Presentation to Institutional Investors
HSBC Holdings plc Perpetual Subordinated Contingent Convertible Securities Presentation to Institutional Investors March 2015
Slide 2: Important notice and Forward-looking statements
Important notice and Forward-looking statements 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 financial instruments
Slide 3: Disclaimer
Disclaimer This presentation has been produced by HSBC Holdings plc (“HSBC”) solely for use at this presentation held in connection with the offering of the Securities and may not be reproduced or redistributed, in whole or in part, to any other person. HSBC has filed with the SEC a registration sta
Slide 4: Disclaimer (continued)
Disclaimer (continued) The Securities are complex financial instruments and are not a suitable or appropriate investment for all investors. In some jurisdictions, regulatory authorities have adopted or published laws, regulations or guidance with respect to the offer or sale of securities such as th
Slide 5: Contents
Contents The HSBC Group 1 HSBC’s Perpetual Subordinated Contingent Convertible Securities 2 Conclusions 3 5
Slide 6: The HSBC Group
The HSBC Group HSBC €&>
Slide 7: An unrivalled global position and platform for growth
The HSBC Group Strategy An unrivalled global position and platform for growth • A leading international bank with a presence in 73 countries and territories HSBC • Balanced global business model with universal banks in key global geographies today • Strong capital position and resilient results in 2
Slide 8: Strong profit generation FY14
The HSBC Group Strong profit generation FY14 Consolidated statement of income1,2 USDbn Revenue3 61.2 Loan impairment (3.9) charges Operating (41.2) expenses Associates4 2.5 Profit 18.7 before tax 0 10 20 30 40 50 60 1. Source: HSBC Holdings plc Annual Report and Accounts 2014 2. On a reported basis
Slide 9: Conservative Balance Sheet
The HSBC Group Conservative Balance Sheet1 Assets 31 December 2014 Other4 Assets managed by Balance Sheet Insurance Management2 Liabilities and equity Other6 Equity Debt securities5 Derivatives Derivatives Repos Total USD2.6trn Trading liabilities6 Reverse Repos3,4 Customer accounts Loans to Trading
Slide 10: Growing equity base driven by retained earnings
The HSBC Group Growing equity base driven by retained earnings With strong and increasing capital ratios Common equity tier 1 ratio (end-point) movement (%)1 USDbn 1.0 0.8 11.1 (0.6) 10.9 (0.6) (0.4) 4 31 December 2013 Profit for the period Dividends Corporate lending Regulatory change: Management i
Slide 11: Future Regulatory Capital Developments
The HSBC Group Future Regulatory Capital Developments Required common equity tier 1 ratio, % § We exceed known, quantifiable, CET1 regulatory 11.1% CET1 ratio at Regulatory requirements on an end point basis (10.6%) 31 Dec 2014 (end-point) uncertainty § Inherent uncertainty will be a continuing feat
Slide 12: HSBC's Perpetual Subordinated Contingent Convertible Securities
HSBC’s Perpetual Subordinated Contingent Convertible Securities
Slide 13: In overview: Targeted at institutional investors
HSBC’s Perpetual Subordinated Contingent Convertible Securities In overview Targeted at institutional investors: minimum denominations $200,000 Item Details Issuer HSBC Holdings plc Non-cumulative, discretionary, payable semi-annually Distributions [%] fixed with Reset on the 1st call date, and ever
Slide 14: Mitigating the key risks
HSBC’s Perpetual Subordinated Contingent Convertible Securities Mitigating the key risks Item Details Distributable items USD48.9bn at 31 Dec 14 Distributions - “It is the current intention of our board of directors to take into account the priority intention relative ranking in our capital structur
Slide 15: Conclusions
Conclusions HSBC €&>
Slide 16: Investment case
Conclusions HSBC’s Perpetual Subordinated Contingent Convertible Securities Investment case • Grow business and dividends Clear • Implement Global Standards strategy • Streamline processes and procedures Assuming a 12-13% CET1 ratio (end point basis): Clear • Return on Equity >10% financial targets
HSBC Holdings — Debt Investor Presentation (March 2015) on 6ix