HSBC Holdings PLC · LSE:HSBA
HSBC — Barclays Capital Conference 2011
20 slides from HSBC's conference presentation, Sep 12, 2011
Slide 1: HSBC in North America
September 12, 2011 HSBC in North America Barclays Capital Conference Niall Booker - Chief Executive Officer, HSBC North America Holdings Inc.
Slide 2: Forward-looking statements
Forward-looking statements This presentation, including the accompanying slides and subsequent discussion, contains certain forward-looking information with respect to the financial condition, results of operations and business of HSBC Holdings plc, HSBC Finance Corporation, HSBC USA Inc., HSBC Bank
Slide 3: Content
Content Key trends for North America North America Results by Business Position and Competitive Advantage in North America North America Looking Forward Significant North America Entities – Canada Businesses – US Bank Businesses – Commercial Banking US – Global Banking and Markets Americas – Retail
Slide 4: Key Trends for North America
Key Trends for North America Why we need to be in North America as discussed on Investor Day Overview Long-term trends US and Canada account for 26% of ■ The region remains materially relevant: world GDP in 2010 In 2050, the combined GDP forecast for US and Canada is comparable to International trad
Slide 5: HSBC Position in North America
HSBC Position in North America North America results(1) Reported PBT, $bn, 1H 2011 North America PBT increased Bermuda 0.7 slightly in 1H 2011 as significantly 0.6 improved results at RBWM were Canada 0.1 0.5 0.1 largely offset by lower profit in 0.6 0.3 -0.5 -0.2 US 0.1 0.5 Other resulting from gai
Slide 6: HSBC Position and Competitive Advantage in North America
HSBC Position and Competitive Advantage in North America Contrasting performance, opportunities and challenges across North American businesses as discussed on Investor Day HSBC Canada HSBC Bank USA HSBC Finance A good record of satisfactory A record of underperformance Cards has been profitable ret
Slide 7: North America Looking Forward
North America Looking Forward Strategic direction Target RoRWA of 0.8% - 1.3% (Reported 0.4%(1) in 1H 2011) – RWAs ($335.8bn at June 30, 2011) will continue to decline in the future as the Consumer and Mortgage Lending loan portfolios and legacy GBM assets continue to run-off and the sale of the Car
Slide 8: North America Looking Forward
North America Looking Forward Debt repayment and cost initiatives HSBC Finance Corporation debt repayment At June 30, 2011, $47.8bn of long-term debt was outstanding with maturities of approximately $5bn for remainder of 2011 and with further maturities of $11bn in 2012 and $7bn in 2013 We currently
Slide 9: Significant North America Entities
Significant North America Entities Ongoing areas of focus in 2011 HSBC Bank Canada HSBC Bank USA HSBC Finance Continue to be a leading international Additional growth efforts in HSBC Continue to effectively manage our bank in Canada, building a sustainable Premier, Commercial Banking and run-off por
Slide 10: Canada – Business Highlights
Canada – Business Highlights No other international bank has our domestic presence, no Canadian bank has our international reach Overview Largest international and seventh-largest bank in Canada Over 140 bank branches and over 76 finance branch offices in 10 provinces Over 6,800 full-time equivalent
Slide 11: Canada – Invest in Internationally Connected Growth
Canada – Invest in Internationally Connected Growth No other international bank has our domestic presence, no Canadian bank has our international reach CMB RBWM GBM Pursue sizeable opportunity Pursue growth in Premier Refocus efforts on Mining for revenue growth in proposition and Energy in order to
Slide 12: US Bank Businesses Strategy – Summary
US Bank Businesses Strategy – Summary Boost international connectivity and satisfy the international needs of clients. Focus on sustainable growth across the Americas region for our global businesses Opportunities Faster Growing Markets Cross-border Wealth CMB RBWM GBM GPB Be the leading internation
Slide 13: Commercial Banking US
Commercial Banking US A growing business with substantial opportunities Executing the US strategy provides market coverage for 48% of the US GDP, 45% of the US export opportunity (Brookings) and 52% of the international HQ opportunities Our opportunities Research has indicated, 11% of domestic only
Slide 14: Global Banking and Markets Americas
Global Banking and Markets Americas Initiatives in place to capture significant cross-selling opportunities Cross-sale FX solutions Global Banking and Markets to Payments & Cash Align HSBC Security Increase derivatives Leverage corporate Management and Services customer base cross-sale from Debt acc
Slide 15: Retail Banking and Wealth Management US
Retail Banking and Wealth Management US Strategic focus and objectives Focus on internationally connected markets – Target internationally connected customers (e.g. Asian diaspora) in providing global wealth management and banking needs in locations where HSBC has a presence World class banking and
Slide 16: Global Private Banking US
Global Private Banking US Strategic priorities/initiatives Build on international strength and global capabilities – with an increased focus on the higher net worth Sustainable client segments Business Continue to increase profitability in a low interest rate environment by generating net new money
Slide 17: HSBC Finance Strategy Summary
HSBC Finance Strategy Summary Despite actions we cannot control all factors Risk and Strategy Alignment Closure of businesses Pending sale of Cards business Keeping people in their homes where it makes economic sense to do so Compliance, including addressing deficiencies in foreclosure processes Foc
Slide 18: Run-Off Consumer and Mortgage Lending
Run-Off Consumer and Mortgage Lending Key areas of focus going forward Mitigating delinquency and maximizing cash flow Maximizing cash collection in a responsible and ethical manner Shifting volume from foreclosures to short sale and deed-in-lieu, where appropriate Exploring opportunities for loan s
Slide 19: North America Progress on strategy
North America Progress on strategy Key execution elements Achievements Announced disposal of 195 branches in Upstate New York; expected to be Capital completed in early 2012 Deployment Announced sale of US Cards business with closing expected in the first half of 2012 Reduced staff numbers by 4%, or
Slide 20: Question and Answer
Question and Answer 19