Hsbc Holdings Plc · LSE:HSBA
Hsbc — HSBC Finance — Q1 2009 Earnings Presentation
7 slides from Hsbc's earnings presentation, May 2009
Slide 1: HSBC Finance Corporation - Q1 2009 Financial Results
HSBC Finance Corporation - Q1 2009 Financial Results US$ millions % Better (Worse) US$ m Q1 2008 Q4 2008 Q1 2009 vs Q1 2008 vs Q4 2008 Net operating income before loan impairment charges excluding FVO 3,702 2,781 3,284 (11.3%) 18.1% FVO 1,193 1,045 3,991 234.5% 281.9% Loan impairment and other relat
Slide 2: Run-off portfolio: below US$100bn
HSBC Finance Corporation Run-off portfolio: below US$100bn Customer loans1, US $bn 121.6 120.3 117.6 114.2 109.9 Run-off portfolio 104.3 100.4 18.5 18.5 18.1 17.5 95.9 16.8 16.2 15.7 15.0 • The run-off portfolio decreased $4.5 48.8 49.9 50.2 49.9 49.0 billion or 4 percent from December 47.3 46.2 45.
Slide 3: Continued reduction of balance sheet in the U.S.
HSBC Finance Corporation Continued reduction of balance sheet in the U.S. 180 168.3 167.9 167.3 Customer Loans1, 2 170 • Total customer loans decreased 6 percent from Q4 2008 161.0 reflecting normal seasonal runoff in the card portfolio and US$bn 160 156.6 150.8 continued actions to reduce risk and
Slide 4: U.S. Mortgages – continuing to shrink the mortgage portfolio
HSBC Finance Corporation U.S. Mortgages – continuing to shrink the mortgage portfolio Mortgage Services Consumer Lending 60 60 48.8 49.9 50.2 49.9 49.0 Customer Loans 50 50 47.3 46.2 45.1 41.5 US$bn US$bn 38.9 40 36.2 40 33.9 31.5 29.0 27.6 30 26.3 30 20 20 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q
Slide 5: Managing risk in CRS
HSBC Finance Corporation Managing risk in CRS Credit Card Private Label 40 20 18.7 17.7 18.0 17.4 17.4 17.4 17.5 31.0 Customer Loans 29.3 29.9 29.4 29.3 29.0 28.6 16.4 30 26.3 US$bn US$bn 20 10 10 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 14% 3 14% 2 12% 2.1 12%
Slide 6: Manage personal non-credit card and motor vehicle finance run-off
HSBC Finance Corporation Manage personal non-credit card and motor vehicle finance run-off Personal Non-Credit Card and Other Unsecured Motor Vehicle Finance 30 20 Customer Loans 12.7 12.9 12.9 12.8 12.5 11.8 18.5 18.5 18.1 17.5 16.8 10.7 20 US$bn 16.2 15.7 9.5 US$bn 15.0 10 10 0 0 2Q07 3Q07 4Q07 1Q
Slide 7: Impairment allowance
HSBC Finance Corporation Impairment allowance US$m Mortgage Services – Real Estate Secured Consumer Lending – Real Estate Secured $m $m 854 3,865 4500 4000 937 664 3,826 722 3,813 1,318 3,403 4000 3,756 912 3500 3500 (48) (3) (12) 3000 (392) 3000 (650) (723) 2500 992 (876) (869) 2500 2000 1,622 440