Hsbc Holdings Plc · LSE:HSBA
Hsbc — Deutsche Bank conference 2018
20 slides from Hsbc's conference presentation, Mar 9, 2018
Slide 1: UK Retail Banking and Wealth Management
UK Retail Banking and Wealth Management Stuart Haire, Head of RBWM, UK 09 March, 2018 1
Slide 2: Important notice and forward-looking statements
Important notice and forward-looking statements Important notice The information, statements and opinions set out in this presentation and subsequent discussion do not constitute a public offer for the purposes of any applicable law or an offer to sell or solicitation of any offer to purchase any se
Slide 3: HSBC RBWM in the UK
HSBC RBWM in the UK Balance sheet highlights1 Customer relationships FY17 Balances ~13 Million customers… 4 • Customer advances $134.3bn Served by 627 branches5 and digital • Customer deposits $181.6bn customer experiences A/D Ratio 74% Market share2 (%) of YE17 balances Sales mix of new business vo
Slide 4: Brands
Brands Four market leading brands deliver: ~8m customers Diversified revenue streams Full banking relationships, innovative ~13m1 customer relationships proposition improvements % share of UK RBWM revenue 2017FY ~1m customers Full banking relationships, leading on customer service entirely through o
Slide 5: Propositions
Propositions Jade by HSBC Premier is an exclusive membership programme that caters for Relationship balance1 Average product holding its members’ complex financial needs (Multiple of Personal Banking) per customer2 and high expectations For customers holding balances of £500k & above 110x Jade 4
Slide 6: UK RBWM investment portfolio
UK RBWM investment portfolio Delivering UK RBWM’s strategic priorities Priorities Examples Outcomes Digitise journeys and Open Banking apps for HSBC and first direct Increased digital channel sales and Digital build immersive brands, website journey improvements and customer activity experiences dig
Slide 7: Digital journeys, immersive experiences and innovation
Digital journeys, immersive experiences and innovation We have built the foundations to drive further digital growth and support our strategic ambition Making it easier for customers, keeping people in the online channel, growing customer satisfaction and retention Digitising processes to remove man
Slide 8: Making it easier for customers
Making it easier for customers A brand new, faster and simpler mobile app that dramatically improves customer experience Where we were: Where we are today: Mobile X Mobile 1.5 1.9 4.8 * App store rating as per January 2018 and may be subject to change. 8
Slide 9: Digitising processes
Digitising processes Significantly improving journeys, making them easier and faster, and removing the need for manual activity Key initiatives delivered: What’s next? Account opening time reduced to 10 All core journeys STP Advance customer onboarding mins compared to 3-4 days in 2016 .>25% a
Slide 10: Digitising processes
Digitising processes Significantly improving journeys, making them easier and faster, and removing the need for manual activity Key initiatives delivered – account servicing: What’s next? Made more information available online and improved main servicing features Push notifications to (e.g. change
Slide 11: Harnessing the power of data
Harnessing the power of data Developing a best-in-class technology foundation that will allow us to deliver a timely, relevant and personalised experience to customers Key initiatives: Initiative outcomes We can better segment and target Personalised content customers to provide a more Enabling
Slide 12: Responding to Open Banking
Responding to Open Banking From January 2018, Open Banking came into effect, enabling customers to share their current account information securely with other third party providers. This creates a number of commercial opportunities. We are responding to this with a number of initiatives Connected Mo
Slide 13: Responding to Open Banking
Responding to Open Banking HSBC is partnering with fintech start-up Bud to create Artha, a financial marketplace app, for first direct customers What? Like Connected Money, Artha will allow customers to connect accounts from different providers. Artha will also make personalised product recommendati
Slide 14: Residential mortgages
Residential mortgages HSBC is a deposit-led lender with a conservative approach to credit 1 HSBC market share1 of total YE17 balances by buyer type 2 HSBC market share2 of owner occupier total YE17 balances by LTV 7.3% HSBC’s average LTV 6.3% ratios: 10.4% 9.4% 2016 2017 Total book 40% 7.0% 7.3% 8
Slide 15: Mortgage broker channel
Mortgage broker channel Our opportunity to grow balances by continued expansion into the broker channel HSBC mortgage balances grew 7.4% during 2017, vs 3.4%1 … driven largely by HSBC’s expansion into the broker 1 2 for the overall market… market… +7.4% Broker 8% 43% 70% coverage2 85.6 c. £19bn 83.8
Slide 16: Wealth
Wealth Building new, low-cost channels to make wealth advice available to all our customers 2017 Building into 2018 Completing by 2022 Circa 11% of our customers currently have access to financial Online advice: Advice hubs: advice with HSBC low-cost, available simple advice by to all phone / video
Slide 17: Customer satisfaction
Customer satisfaction In 2018, we will continue to deliver initiatives which will embed a customer centric culture Customers want… Examples of what we are doing …staff to be knowledgeable Giving branch staff tablets, and Empowering our training, to answer most customer people to deliver the person t
Slide 18: Summary
Summary HSBC has a solid platform to build on: – UK ring fenced bank in final delivery phase – Investment in digital to improve customer experience, meet the strategic ambition to digitise our key customer journeys, and create new immersive digital experiences – Strong balance sheet growth driven by
Slide 19: Appendix
Appendix 19
Slide 20: PRA stress test
PRA stress test … maintaining strong credit discipline relative to peers PRA stress tests: Projected cumulative five-year PRA stress tests: Projected cumulative five-year impairment charge rates on UK individuals – mortgage impairment charge rates on UK individuals – non- lending1,2 (%) mortgage len