HSBC Holdings PLC · LSE:HSBA
HSBC — Investor Day (November 2003)
30 slides from HSBC's investor day presentation, Nov 27, 2003
Slide 1: Corporate, Investment Banking & Markets
Corporate, Investment Banking & Markets
Slide 2: Forward-looking statements
Forward-looking Forward-looking statements statements This This presentation presentation and and subsequent subsequent discussion discussion may may contain contain certain certain forward-looking forward-looking statements statements with with respect respect to to the the financial financial cond
Slide 3: CIBM generates over 30% of Group profits
Corporate, Investment Banking and Markets generates over 30% of Group profits Total Group pre-tax profits 1H2003 Private Banking (US$268m) 4% Personal Financial Corporate, Investment Services Banking & Markets (US$2,082m) 33% (US$2,237m) 30% 9% 24% Consumer Finance (US$649m) Commercial Banking (US$1
Slide 4: We have a strong management team
We have a strong management team ... CIBM Co-Heads Stuart T. Gulliver John J. Studzinski ➣ HSBC – 23 years ➣ Joined HSBC June 2003 ➣ Experienced Global ➣ Morgan Stanley – 23 years Treasury & Capital ➣ Leader in M&A and client Markets business leader relationship management ➣ Built up HSBC Asian ➣ Ex
Slide 5: A management structure recognising primary and secondary markets
… and a management structure that recognises both the primary and secondary markets ... CIBM Co-Heads – Stuart Gulliver and John Studzinski Corporate and Global Markets Investment Banking Debt and Credit and Equity Balance Secondary Sector Transaction Investment Foreign Sheet and Relationship Origin
Slide 6: Coverage model emphasises our relationship approach to client servicing
… but our coverage model emphasises our relationship approach to client servicing Client ➣ Understanding totality of client requirements Banking Advisory and Risk Investor Services Financing Management Services ➣ Sector based approach Relationship Management ➣ A full range of value added Transaction
Slide 7: Our management structure is still relatively new but evolving
Our management structure is still relatively new but evolving ... ➣ Integration of Corporate & Institutional Banking (CIB) and Investment Banking & Markets (IB&M) only one year ago ➣ Formation of Global Markets in November 2002 ➣ Consolidation of Transaction Banking under Iain Stewart in April 2003
Slide 8: A clear set of strategic objectives
… but we have a clear set of strategic objectives ... ➣ Build a seamless business focused on Group clients ➣ Ensure a client facing organisation, unifying and strengthening relationship management and origination ➣ Provide comprehensive coverage of our client base ➣ Deliver group expertise in select
Slide 9: Embedded principles
… and embedded principles ➣ Understanding and supporting our clients long-term financial and commercial aspirations • Conducting a two way global client relationship and dialogue based on integrity, trust and partnership • Acting as a trusted industry advisor and market expert to support our clients
Slide 10: Our businesses are at different stages of development: Global Markets
Our businesses are at different stages of development High Markets Asia Pacific Recognition/Profitability Markets America Markets Europe Lo Lo Market Share High Global Markets Investor Day - 27 November 2003 10
Slide 11: Our businesses are at different stages of development: Debt Financing
Our businesses are at different stages of development High Debt Financing Recognition/Profitability Asia Pacific Debt Financing Europe Debt Financing Americas Lo Lo Market Share High Global Markets Debt Financing Investor Day - 27 November 2003 11
Slide 12: Our businesses are at different stages of development: Transaction Banking
Our businesses are at different stages of development High Recognition/Profitability Transaction Banking Asia Transaction Pacific Banking Europe Transaction Banking Americas Lo Lo Market Share High Global Markets Debt Financing Transaction Banking Investor Day - 27 November 2003 12
Slide 13: Our businesses are at different stages of development: Credit and Lending
Our businesses are at different stages of development High Recognition/Profitability Credit & Lending Asia Pacific Credit & Lending Europe Credit & Lending Americas Lo Lo Market Share High Global Markets Debt Financing Transaction Banking Credit and Lending Investor Day - 27 November 2003 13
Slide 14: Our businesses are at different stages of development: Investment Banking
Our businesses are at different stages of development High Recognition/Profitability Investment Banking Europe Investment Banking Asia Pacific Investment Banking Americas Lo Lo Market Share High Global Markets Debt Financing Transaction Banking Credit and Lending Investment Banking Investor Day - 27
Slide 15: Our business goals are clear
… but our business goals are clear ... CIBM Goals ➣ Top Relationship Banker to largest companies globally ➣ Recognised Industry and Sector Experts ➣ Leading player in Global Markets Transaction Banking Research ➣ Global Leader in Trade, Payments and Cash ➣ Recognised Leader in Management and Securit
Slide 16: Strong momentum: Euro Market Bonds
… and our business has strong momentum Euro Market Bonds 6 + HSBC 4 Change in Market share 01-03 2 SocGen BofA Barc Cap ABN 0 UBS CSFB Citi BNP Deutsche Morgan Stanley Goldmans Merrill JPM - -2 2003 Market share Source: Bloomberg Investor Day - 27 November 2003 16
Slide 17: Strong momentum: Asia Market Bonds
… and our business has strong momentum Asia Market Bonds 7 Merrill + 5 HSBC 3 Morgan Stanley Change in Market share Deutsche ABN Barc Cap 1 BofA CSFB 01-03 -1 Goldmans UBS -3 Citi -5 JPM - -7 2003 Market share Source: Bloomberg Investor Day - 27 November 2003 17
Slide 18: Strong momentum: International Bonds
… and our business has strong momentum International Bonds 3 + HSBC Change in Market share SocGen 1 Barc Cap BNP ABN 01-03 Deutsche BofA Citi CSFB Morgan Stanley -1 UBS Goldmans Merrill JPM - -3 2003 Market share Source: Bloomberg Investor Day - 27 November 2003 18
Slide 19: Strong momentum: Global M&A
… and our business has strong momentum Global M&A 6 + 4 HSBC Change in Market share 2 Goldmans 01-03 Citi 0 UBS Deutsche JPM -2 Morgan Stanley -4 CSFB Merrill - -6 2003 Market share Source: Thompson Financial Investor Day - 27 November 2003 19
Slide 20: Specific plans: Global Client Relationship Management
Specific plans are in place to achieve our objectives Business Area Global Client ➣ Implement sector segmentation Relationship ➣ Develop CIBM sector head role with defined accountability Management ➣ Strengthen business with high-level recruitment in key areas ➣ Produce annual plans for top clients
Slide 21: Specific plans: Global Transaction Banking
Specific plans are in place to achieve our objectives Business Area Global Client Relationship Management Global ➣ Position Transaction Banking as a single business line Transaction ➣ Strengthen the relationship management function and actively target financial institutions Banking ➣ Increase cross-
Slide 22: Specific plans: Global Investment Banking
Specific plans are in place to achieve our objectives Business Area Global Client Relationship Management Global Transaction Banking Global ➣ Develop global focused advisory business and establish core M&A and advisory group in US Investment ➣ Review professional staff talent and fill key sector gap
Slide 23: Specific plans: Global Credit & Lending
Specific plans are in place to achieve our objectives Business Area Global Client Relationship Management Global Transaction Banking Global Investment Banking ➣ Manage HSBC balance sheet in terms of a global service proposition Global Credit & Lending ➣ Match quarterly pipeline reviews to interim an
Slide 24: Specific plans: Global Financing
Specific plans are in place to achieve our objectives Business Area Global Client Relationship Management Global Transaction Banking Global Investment Banking Global Credit & Lending ➣ Develop Convertibles, Term Asset-Backed Securities and Mortgage-Backed Securities Global capabilities Financing ➣ S
Slide 25: Specific plans: Global Markets
Specific plans are in place to achieve our objectives Business Area Global Client Relationship Management Global Transaction Banking Global Investment Banking Global Credit & Lending Global Financing ➣ Strengthen global Currency Option capabilities ➣ Develop Convertibles & Equity Derivatives product
Slide 26: Rebuilding our Equities business with a client-led model
We are rebuilding our Equities business, reshaping our existing operations to develop a client-led model for the new activity Sector/Client Selection Market Making Research and Execution Retail and Trading Classical Corporates Private Banking Clients Institutions Investor Day - 27 November 2003 26
Slide 27: North America is a top market priority
North America is a top market priority ➣ Strengthening Relationship Management with appointment of key sector heads ➣ Strengthen US Debt Capital Markets platform ➣ Develop key product capabilities • Term Asset-Backed Securities • Mortgage-Backed Securities ➣ Establish core M&A and Advisory group Inv
Slide 28: Achievement of our objectives is not without risk
Achievement of our objectives is not without risk – but we are well positioned to succeed Risk Risk Mitigation ➣ Short term profits squeeze as we invest for ➣ Clear timeframe and accountability for growth investment ➣ Failure to attract key industry product and ➣ A number of key hires already secure
Slide 29: HSBC is committed to a relationship driven, client facing bank
HSBC is committed to a relationship driven, client facing Corporate and Investment Bank. Our core values are integrity and trust. We understand our clients’ aspirations and strategic objectives globally and locally and create long-term value for clients and our shareholders alike – so that when our
Slide 30: Slide 30