Hsbc Holdings Plc · LSE:HSBA

Hsbc — HSBC México — Debt Investor Presentation (September 2020)

19 slides from Hsbc's debt investor presentation, September 2020

  1. Slide 1: HSBC Mexico 1H20

    HSBC Mexico 1H20 September 2020

  2. Slide 2: Important notice and forward-looking statements

    Important notice and forward-looking statements YOU MUST READ THE FOLLOWING BEFORE CONTINUING. THE FOLLOWING APPLIES TO THE PRESENTATION MATERIALS FOLLOWING THIS PAGE, AND YOU ARE THEREFORE ADVISED TO READ THIS CAREFULLY BEFORE READING, ACCESSING OR MAKING ANY OTHER USE OF THE PRESENTATION MATERIALS

  3. Slide 3: 1. HSBC in Mexico

    1. HSBC in Mexico 3

  4. Slide 4: Despite the shock from Covid-19, the Mexican economy is forecast to recover gradually in 2021

    HSBC in Mexico Despite the shock from Covid-19, the Mexican economy is forecast to recover gradually in 2021 within a stable macroeconomic environment GDP growth1 Central Bank policy rate1 Gross public sector debt1 % y-o-y % End of period % GDP1 3.0 8.3 55.2 55.0 2.1 7.3 45.3 44.9 (0.3) 4.5 4.5 (9.0

  5. Slide 5: Mexico is one of the most open economies in the world with important trade corridors

    HSBC in Mexico Mexico is one of the most open economies in the world with important trade corridors Mexico in key trade corridors1 Mexico’s trade agreements2 2019 value of trade (exports and imports), USDbn  USMCA was ratified and came into effect in June 2020 Trade with Europe  Trade agreements i

  6. Slide 6: Mexico presents numerous investment opportunities for banking and trade finance

    HSBC in Mexico Mexico presents numerous investment opportunities for banking and trade finance Social / economic environment Main sectors in Mexico Domestic credit to private sector (% of GDP)1 34.0 35.3 34.6 36.9 Tech, Auto, Media and Telecom, Healthcare, Industrials, Chemicals Professional 2016 20

  7. Slide 7: Mexico is a systemic bank in the country, ranked within the top 5 major banks

    HSBC in Mexico HSBC Mexico is a systemic bank in the country, ranked within the top 5 major banks1 with a universal banking offer Key Figures as of June 2020 Business segments and products Our Wealth and • Payroll Personal Banking • Global Asset Management Wealth and customers have access to a full

  8. Slide 8: HSBC in Mexico

    HSBC in Mexico HSBC in Mexico Ownership chart HSBC Mexico performance1 Reported revenue USDbn FY18 FY19 HSBC Mexico 2.3 2.6 HSBC Holdings plc Rest of Group $52.3bn $53.4bn 50.0 50.9 HSBC Latin America Reported profit before tax2 Holdings (UK) Limited USDbn FY18 FY19 100% HSBC Mexico 0.5 0.7 Rest of

  9. Slide 9: Strategy remains in place

    HSBC in Mexico Strategy remains in place Two main strategic pillars… i. Seek to leverage our retail scale to reach at least 10% market share (to match our branch market share) ii. Aim to become the leading wholesale bank in Mexico for international and local customers with transaction banking needs.

  10. Slide 10: Covid-19: Support measures for customers

    HSBC in Mexico Covid-19: Support measures for customers Retail  Relief plans and liquidity benefits include repayments without interest from three to six months, or payment holidays of up to six months for certain customers  Branch network and ATMs frequently sanitized and properly signaled to pro

  11. Slide 11: 2. HSBC Mexico financial performance

    2. HSBC Mexico financial performance 11

  12. Slide 12: Reported financial performance 1H20 – Mexico GAAP

    HSBC Mexico financial performance Reported financial performance 1H20 – Mexico GAAP Loan impairment charges and other credit risk Revenue1,2,3 provisions2 MXNm MXNm +10% +14% +3% +38% 23,037 23,642 5,787 19,530 16,276 17,709 4,303 4,060 4,183 3,458 1H16 1H17 1H18 1H19 1H20 1H16 1H17 1H18 1H19 1H20 O

  13. Slide 13: Reported financial performance 1H20 – Mexico GAAP

    HSBC Mexico financial performance Reported financial performance 1H20 – Mexico GAAP Net loans advances to customers1 LICs1,2 / loans % MXNbn +13% +3% 395.0 406.9 2.9% 2.6% 2.7% 327.6 2.4% 284.3 2.0% 253.3 1H16 1H17 1H18 1H19 1H20 1H16 1H17 1H18 1H19 1H20 Non performing loan ratio1, 3 % LLR1, 4 / loa

  14. Slide 14: Credit portfolio and deposits

    HSBC Mexico financial performance Credit portfolio and deposits Deposits1 MXNbn +13% +21% 450.5 351.6 371.9 275.2 299.5 1H16 1H17 1H18 1H19 1H20 Advances to deposits ratio (ADR) %2 106.2% 92.1% 94.9% 93.2% 90.3% 1H16 1H17 1H18 1H19 1H20 1. Source: HSBC Mexico 2Q20 press release. Reported figures und

  15. Slide 15: HSBC Mexico Bank – capital

    HSBC Mexico financial performance HSBC Mexico Bank – capital Total capital adequacy ratio at 2Q20 was 13.8%, 270bps above regulatory requirements Capitalisation %1 Total capital adequacy ratio 12.7% 12.7% 13.8%  At 30 June 2020, the bank’s total capital adequacy ratio was 11.9% 12.7% 13.8% and the

  16. Slide 16: 3. Peer bank review

    3. Peer bank review 16

  17. Slide 17: HSBC México vs Industry

    Peer bank review HSBC México vs Industry Total gross loans1 Retail loans Wholesale loans MXNbn MXNbn MXNbn +5.4% +1.7% +7.5% +10.9% +3.1% (0.1)% 5,352 5,640 1,924 1,957 3,428 3,684 408 421 121 134 288 288 1H19 1H20 1H19 1H20 1H19 1H20 1H19 1H20 1H19 1H20 1H19 ` Banking Industry2 HSBC Mexico Banking

  18. Slide 18: HSBC México vs Industry – Liquidity coverage ratio

    Peer bank review HSBC México vs Industry – Liquidity coverage ratio 224% 196% 178% 152% 1H19 1H20 1H19 1H20 Banking Industry1 HSBC Mexico Source: CNBV 1. Banking industry average for all banks in Mexico including HSBC Mexico 18

  19. Slide 19: 19

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