HSBC Holdings PLC · LSE:HSBA
HSBC — Investor Day (May 2011)
22 slides from HSBC's investor day presentation, May 12, 2011
Slide 1: HSBC Holdings plc Investor Day
Abc 11 May 2011 HSBC HOLDINGS PLC INVESTOR DAY The presentation given today by Brian Robertson, Chief Executive HSBC Bank plc, is attached and will be available to view at www.hsbc.com. ends/all Registered Office and Group Head Office: This news release is issued by 8 Canada Square, London E14 5HQ,
Slide 2: Europe Investor Day
11 May 2011 Europe Investor Day Brian Robertson Chief Executive HSBC Bank plc
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: Key trends for Europe
Key trends for Europe Key trends for Europe Overview Long-term trends 31% of world GDP in 2010 Europe remains material Region accounts for c.40% of global Economic 24% of World GDP in 2030 trade flows relevance 10 of top 30 markets in 2050 Top region globally for FDI inflows and outflows
Slide 5: International connectivity – Europe is the global hub for trade flows
Key trends for Europe International connectivity – Europe is the global hub for trade flows European exports by destination USDtn CAGR 2000-20E 11.6 CAGR 2.7 11% 8% 5.6 4.7 7% 1.3 Faster Growing Markets 2.7 2.3 Other Mature 0.3 1.3 4.2 7% UK, France & 2.0 1.1 Germany 2000 2010 2020E Share of world e
Slide 6: Wealth – An ageing population and increasing number of mass affluent
Key trends for Europe Wealth – An ageing population and increasing number of mass affluent Ageing population Wealth Europe population aged 65 and over1, % Europe mass affluent individuals2, millions CAGR 2009-13 29.3 77 70 65 +14% 61 17.5 58 Central and Eastern Europe +7% Western Europe 2010 2050 20
Slide 7: Robust business franchise
HSBC position and competitive advantages Robust business franchise Europe PBT per customer group1 Europe PBT per geography Reported, USDbn Reported, 2010, USDbn Total: USD4.3bn 7.0 0.3 5.8 Malta Others 5.6 1.3 3% 1.3 Turkey 5% 0.9 PFS (going 1.7 6% forward 1.2 Switzerland 6% RBWM)2 0.6 Germany 8% 56
Slide 8: Our International Network is a distinctive advantage
HSBC position and competitive advantages Our International Network is a distinctive advantage HSBC presence in Europe Retail Banking and Wealth Management Commercial Banking Established positions in 19 countries leveraging the UK, France, international connectivity Turkey and Malta Key markets
Slide 9: Strategic direction and actions overview
Strategic directions and actions Strategic direction and actions overview Europe Be the leading international bank connecting Europe with the rest of the world and capturing Europe’s wealth opportunity 1 RBWM 2 CMB 3 GBM 4 GPB Focus on selected Drive international Expand franchise Optimise market ma
Slide 10: RBWM: Continue to invest in UK, France and Turkey and rationalise unprofitable businesses
Strategic directions and actions 1 RBWM: Continue to invest in UK, France and Turkey and rationalise unprofitable businesses HSBC position Strategic actions 2010 PBT1 of USD1,289m, over 2,000 branches Strong franchise in UK and France Focus investments in UK, France and Turkey and Strong card
Slide 11: UK RBWM: Deliver market leading propositions so that customers trust us
Strategic directions and actions 1a UK RBWM: Deliver market leading propositions so that customers trust us with their banking and future HSBC position Strategic actions 2010 PBT1 of USD1,223m, over 1,300 branches Continue to develop wealth management and 60% of customers are A, B or C1 social g
Slide 12: France RBWM: Accelerate Wealth Management strategy
Strategic directions and actions 1b France RBWM: Accelerate Wealth Management strategy HSBC position Strategic actions 2010 PBT of USD109m. Over 300 branches Strong wealth management franchise: +39% Premier Strengthen long-term investment solutions customer acquisition on 2009 (e.g., discretiona
Slide 13: CMB: Build upon proven LIB strategy through investment in developed and growth markets
Strategic directions and actions 2 CMB: Build upon proven LIB strategy through investment in developed and growth markets HSBC position Strategic actions 2010 PBT of USD1,205m Presence in 19 countries leveraging pan-European Focus investments to capture regional and global solutions FDI and trad
Slide 14: UK CMB: Become the UK's leading international bank
Strategic directions and actions 2a UK CMB: Become the UK’s leading international bank and deliver targeted domestic growth HSBC position Strategic actions 2010 PBT of USD827m Market share of international business above domestic Leverage previous investments in segmentation footprint1 strategy
Slide 15: France, Turkey and Germany CMB
Strategic directions and actions 2b France, Turkey and Germany CMB HSBC position Strategic actions Competitive distribution network Position HSBC France as the International focus and strong product international bank of choice for France offering driving CMB performance MMEs3 and larger corpo
Slide 16: GBM Europe: Global connectivity backed by core product capabilities
Strategic directions and actions 3 GBM Europe: Global connectivity backed by core product capabilities HSBC position Strategic actions 2010 PBT1 of USD2,726m Optimise market coverage: Build on London and Hub and spoke pan-European geographical coverage Paris hubs, develop FIG and Multinational (
Slide 17: GPB Europe: Optimise market coverage and create synergies across Europe
Strategic directions and actions 4 GPB Europe: Optimise market coverage and create synergies across Europe HSBC position Strategic actions 2010 PBT of USD640m, global hub for GPB Leading international private bank in Switzerland and Leverage intragroup strengths and connectivity Monaco with grow
Slide 18: Increase Operational Effectiveness
Strategic directions and actions 5 Increase Operational Effectiveness Key cost levers Full cost review in progress. Examples of initiatives: Estimated savings USDm Portfolio Exit underperforming businesses (e.g., RBWM in Russia) 90 rationalisation Ongoing Service Delivery operational transform
Slide 19: Key take-aways
Key take-aways Europe Competitive Advantages Resilient banking franchise Unique network to connect Mature and Faster Growing Markets Well-positioned to unlock the wealth management opportunity Target RoRWA 1.3%-1.8% Strategic Actions Consolidate existing strong positions (incl. UK, France, Germany)
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