Hsbc Holdings Plc · LSE:HSBA
Hsbc — Investor Presentation (June 2013)
21 slides from Hsbc's investor presentation, Jun 19, 2013
Slide 1: Retail Banking and Wealth Management Investor Update
Retail Banking and Wealth Management Investor Update
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 f
Slide 3: HSBC's four integrated Global Businesses
HSBC’s four integrated Global Businesses RBWM is a significant component of the Group Directional 2016 2016 target Distribution of net operating income1, 2012, % PBT contribution RoRWA2 % of Group total % GPB Other 4% 3% CMB 30-40 2.2-2.5 GBM RBWM RBWM 25-35 5.0-5.53 25% 46% 22% GBM 25-35 2.0-2.2 CM
Slide 4: Agenda
Agenda I Strategic Execution II Growth priorities III RBWM 1Q 2013 Results IV Summary 4
Slide 5: RBWM Vision and Strategy
I. Strategic Execution RBWM Vision and Strategy Securing customers’ future prosperity and realising their ambitions Strategy remains unchanged Portfolio management to drive superior returns RBWM transformation to improve customer service and productivity Developing a high standard of wealth ma
Slide 6: Portfolio Management: Cohesive portfolio of markets
I. Strategic Execution Portfolio Management Cohesive portfolio of markets Hong Kong and Middle East and North Latin Rest of Asia Pacific Europe North Africa America America RBWM Strategy ‘Home United Hong Kong1 markets’ Kingdom2 Build scale and/or Australia capture wealth Mainland China op
Slide 7: Portfolio Management: Reduce fragmentation through closures and disposals
I. Strategic Execution Portfolio Management Reduce fragmentation through closures and disposals North America Europe Line of Business Market Exits Line of Business Insurance Mgt services (Bermuda), Investment Georgia, CF (Hungary), Non- Life & Re- Advisory, Consumer Finance, Private Label Poland, in
Slide 8: Portfolio Management: Home and Priority markets
I. Strategic Execution Portfolio Management Home and Priority markets Indonesia Taiwan India Hong Kong Singapore Argentina Steady progression Saudi Arabia Egypt Australia Malaysia Mexico UAE Invest for medium to long term Re-engineer Turkey Vietnam Mainland China France Brazil Management’s Fix and r
Slide 9: RBWM Transformation: Improving efficiency and customer experience
I. Strategic Execution RBWM Transformation Improving efficiency and customer experience Approach Examples Redesigning customer journeys, including Identify inconsistent RBWM account opening and complaints handling, processes re-engineering to improve customer experience and efficiency whilst red
Slide 10: RBWM Transformation: Distribution evolution
I. Strategic Execution RBWM Transformation Execution example: Distribution evolution Full Service Branch Customer behaviour increasingly shifting from branch- RM Centre based to multiple channel service and distribution we are driving this migration reviewing our physical footprint to make fit
Slide 11: RBWM Transformation: Other specific initiatives
I. Strategic Execution RBWM Transformation Execution example: Other specific initiatives Launched new online illustration tools and application process UK Mortgage Re-engineering: Delivered "mortgage switcher" functionality in the UK Delivering simultaneous improvements in: Launched "live unde
Slide 12: RBWM Transformation: Driving simplicity and consistency
I. Strategic Execution RBWM Transformation Execution example: Driving simplicity and consistency Organisational Blueprint Products Range Review Consistent design deployed globally Deliver a simple and consistent set of products – Globally set standards and policies Making it easier for our custo
Slide 13: Operational efficiency: Transformation activities delivering results
I. Strategic Execution Operational efficiency Transformation activities delivering results Revenue1 per FTE FTE Revenue per FTE (000s) ($’000) 120 275 250 100 225 80 200 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 11 11 11 11 12 12 12 12 FTE Rev / FTE FTE decrease of more than 13,500 during 2012 driven by Organisatio
Slide 14: RBWM growth priorities
II. Growth priorities RBWM growth priorities Securing customers’ future prosperity and realising their ambitions Growth priorities to 2016 2016 targets Growth in priority markets RoRWA1, % 3.8-4.3 Grow number of customers in target segments RoRWA1, Financial 5.0-5.5 Deepen customer relationships e
Slide 15: RBWM growth priorities: Distribution evolution and digital solution
II. Growth priorities RBWM growth priorities Execution example: Distribution evolution and digital solution Example investments Mobile Banking App – iOS and Android versions Mobile Payments – Progressive deployment of Mobile simple and secure contactless payments Advanced capabilities – Mobile
Slide 16: Wealth management: Building our Wealth business
II. Growth priorities Wealth management Building our Wealth business Material progress Wealth target Significant platform upgrading in terms of customer self-service solutions and RM platform 0.6 0.3 Building out managed solutions 6.4 6.4 5.5 5.5 5.8 5.8 Developing RMB offerings 2010 2011 2012
Slide 17: Premier: Flagship proposition with strong contribution to revenues
II. Growth priorities Premier “Flagship” proposition with strong contribution to revenues Opportunity for Growth Home and priority markets represent 64% of the total Global Financial Wealth Management Market1 Premier generates significantly higher revenue per customer than other RBWM segments
Slide 18: 1Q13 Results: Reported Global Business Contribution
III. RBWM 1Q 2013 Results 1Q13 Results Reported Global Business Contribution % Better / (worse) PBT1, (USDbn) 1Q12 1Q13 1Q12 vs 1Q13 Retail Banking Wealth Management 2.2 1.6 (28) Of Which RBWM excluding US CRS and US run-off portfolio 1.7 1.9 9 US Card and Retail Services 0.7 - (100) US run-off port
Slide 19: CRS and US run-off portfolio
III. RBWM 1Q 2013 Results CRS and US run-off portfolio Progress in running down and de-risking US legacy portfolio (USDbn) US run-off portfolio 2 3 Reduction in balances in the run-off portfolio to USD41bn at 1Q 2013 (USD58bn at December 2010). Non-real estate portfolio sale completed 1 April 2013
Slide 20: RBWM excluding US CRS and US run-off portfolio
III. RBWM 1Q 2013 Results RBWM excluding US CRS and US run-off portfolio Management actions delivering results (USDbn) 1 2.0 Profit before tax 1.5 1.0 Increase in Europe and North America driven by lower customer redress (USD0.1bn in Q1 2013 0.5 compared to USD0.5bn Q1 2012) 0.0 2 2 Europe + North
Slide 21: RBWM Vision and Strategy
I. Strategic Execution RBWM Vision and Strategy Securing customers’ future prosperity and realising their ambitions Strategy remains unchanged Portfolio management to drive superior returns RBWM transformation to improve customer service and productivity Developing a high standard of wealth ma