HSBC Holdings PLC · LSE:HSBA
HSBC — H1 2011 Earnings Presentation
14 slides from HSBC's earnings presentation, Sep 6, 2011
Slide 1: HSBC UK Retail Banking – RBWM & CMB 2011 Interim Results
HSBC Holdings plc 6 September 2011 Interim Results HSBC UK Retail Banking – RBWM & CMB 2011 Interim Results Joe Garner Deputy Chief Executive, HSBC Bank plc
Slide 2: 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 fu
Slide 3: Agenda
Agenda X Economic overview – Macro economic trends – International connectivity and changing demographics – Industry issues X UK Retail Banking strategy and performance – Financial performance – RBWM – CMB X Outlook and conclusions – Investor day strategic actions – Outlook and conclusions 3
Slide 4: Economic overview: Macro economic trends
Economic overview Macro economic trends Present economic climate GDP growth Inflation, Consumer Price Index X The UK economy appears to be losing momentum – failure of the recovery raising the 3% 6% threat that growth might stall 2% 5% 1% 4% X Inflation above 2% target – driven by increases in VAT,
Slide 5: Economic overview: International connectivity and changing demographics
Economic overview International connectivity and changing demographics Trade flows – International connectivity UK merchandise imports and exports, USDbn X UK trade growth between 2000-10 below Europe and the World 1.0 (CAGR: 8-9%) CAGR CAGR 10% X Pace of UK growth 2010-20 expected to increase and o
Slide 6: Economic overview: Industry issues
Economic overview Industry issues Eurozone crisis and sluggish domestic growth increasing risk of recession Consumers and businesses beginning to adapt but uncomfortable times lie ahead – Fragile Economy need to balance support for customers with responsible banking Economic recovery losing mome
Slide 7: UK Retail Banking – robust business franchise
UK Retail Banking strategy and performance UK Retail Banking – robust business franchise Significant PBT contribution UK is one of the Group’s cornerstones UK Retail Banking, % of Reported PBT for 1H11 X HSBC UK Retail Banking is a significant contributor to overall Group 1H10 profit and key to the
Slide 8: Financial performance: Key movements
UK Retail Banking strategy and performance Financial performance Key movements GBPm 1H10 2H10 1H11 Underlying PBT, GBPm 843 212 5 12 Net operating 2,841 2,827 2,818 income1 Loan impairment (616) (606) (404) charges2 56 598 Net operating 2,225 2,221 2,414 (40) income Operating expenses (1,576) (1,552
Slide 9: Financial performance: PBT and balance sheet growth
UK Retail Banking strategy and performance Financial performance PBT (reported and underlying) GBPm 1,452 1,237 X Resilient PBT performance 843 687 666 649 669 843 X Impairments back to 2007 levels in 2011, down 34% 1H11 vs 1H10 687 322 598 675 480 311 X Adjusted costs held flat since 20081 1H08 2H0
Slide 10: RBWM: deliver market leading propositions so that customers trust us
UK Retail Banking strategy and performance RBWM: deliver market leading propositions so that customers trust us with their banking and future Target customer base Current position Customers base, ’000s Customer recommendation, £30k+ X Customer value-led focus: target customer acquisition +13% 10 1H1
Slide 11: CMB: become the UK's leading international bank
UK Retail Banking strategy and performance CMB: become the UK’s leading international bank and deliver targeted domestic growth Lending performance Current position Loans and advances, GBPbn X CMB lending up 7.4% 1H11 vs 1H10 despite market contraction of 4%1 X On target to meet Merlin lending commi
Slide 12: Outlook and conclusions: Investor Day strategic actions
Outlook and conclusions Investor Day strategic actions RBWM strategic actions Continue to develop wealth management and insurance capabilities, New structured investment products launched I innovating new propositions, increasing customer penetration Enhancements to capabilities underway including p
Slide 13: Outlook and conclusions
Outlook and conclusions Outlook and conclusions External pressures HSBC response Eurozone crisis – long term impacts for UK Continue lending growth in mortgages at Economic economy prudent LTVs outlook weak, Continue House prices to undergo long term structural Investment in international bu
Slide 14: Contacts and further information
Contacts and further information HSBC Holdings plc Bloomberg / Website Alastair Brown, Manager, Investor HSBA LN <EQUITY> <GO> Relations HSBC <CORP> <GO> alastair.brown@hsbc.com HSBC <PFD> <GO> www.hsbc.com/1/2/investor-relations + 44 (0) 207 992 1938 www.hsbc.ca/1/2/en/about-us/financial-reports 14