Hsbc Holdings Plc · LSE:HSBA
Hsbc — Investor Presentation (November 2013)
35 slides from Hsbc's investor presentation, November 2013
Slide 1: Global Banking and Markets Investor update
Global Banking and Markets Investor update Prepared by: Samir Assaf – Group Managing Director, Chief Executive, Global Banking and Markets Date: November 2013
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, capital position and business of the Group. These forward-looking statements represent the Group’s expectations or bel
Slide 3: Introduction
Introduction HSBC's Global Banking and Markets’ business model and strategy are well established: • We are emerging markets led, financing focused and internationally connected • By executing our strategy we are delivering resilient financial results • We are positioned for future growth, thanks to
Slide 4: GBM core to HSBC strategy
GBM core to HSBC strategy
Slide 5: HSBC 3Q 2013 results financial highlights
GBM core to HSBC strategy HSBC 3Q 2013 results financial highlights1 HSBC Group summary financial highlights 2011 2012 3Q 2013 YTD Reported PBT (USDbn) 21.9 20.6 18.6 Underlying PBT (USDbn) 13.9 16.4 18.1 EPS (USD) 0.92 0.74 0.71 Dividends (USD)2 0.41 0.45 0.30 Key ratios % 2011 2012 3Q 2013 YTD Ret
Slide 6: Franchise of four global businesses offering an integrated service
GBM core to HSBC strategy1 Franchise of four global businesses offering an integrated service Rest of Asia- Middle East and Europe Hong Kong North America Latin America Pacific North Africa RBWM 3Q13 YTD PBT 3Q13 YTD RWAs USD4,852m Retail Banking and Wealth Management (RBWM) USD239.7bn CMB 3Q13 YTD
Slide 7: Group strategy delivered through GBM
GBM core to HSBC strategy Group strategy delivered through GBM Group strategy GBM strategy International • International network in markets Emerging • International network connecting emerging trade and that matter markets led and mature markets, covering key growth areas capital flows • Build on in
Slide 8: Diverse range of products aligned with client need
GBM core to HSBC strategy Diverse range of products aligned with client need Global Banking and Markets Coverage Groups Clients – more than 4,000 mastergroups1 • Asset-Backed Finance • Credit • Payments and Cash • Balance Sheet Management Management • Asset & Structured Finance • Equities • Securiti
Slide 9: Delivering the strategy
Delivering the strategy
Slide 10: GBM 3Q13 YTD results were USD7.6bn PBT with RoRWA of 2.4%
Delivering the strategy GBM 3Q13 YTD results were USD7.6bn PBT with RoRWA of 2.4%1 GBM Revenue2 (USDbn) GBM PBT3 (USDbn) 7.6 7.3 14.9 14.7 5.8 13.2 3Q11 YTD 3Q12 YTD 3Q13 YTD 3Q11 YTD 3Q12 YTD 3Q13 YTD GBM CER% GBM RWA (USDbn) & RoRWA4% 54.7 402 417 50.3 RoRWAs: 49.6 3Q11 YTD 2.1% 3Q12 YTD 2.3% 3Q13
Slide 11: 3Q13 YTD Results
Delivering the strategy 3Q13 YTD Results1 • Revenue growth in the majority of our customer-facing businesses • Global Banking revenue increased in Financing and Equity Capital Markets, reflecting a rise in lending spreads Achieving growth • Higher customer activity in Credit, in both primary and sec
Slide 12: Stable and predictable performance, diversified by business line and geography
Delivering the strategy Stable and predictable performance, diversified by business line and geography Management view of operating income1, 4, 6 Profit before tax2 % average 2010-2012 % average 2010-2012 Total: USD18.1bn Total: USD8.3bn Credit (5%) Rates (10%) Europe (15%) FX (17%) Equities (4%) Ho
Slide 13: Performance diversified by business line and geography
Delivering the strategy Performance diversified by business line and geography Management view of operating income1 Profit before tax1 % 3Q13 YTD % 3Q13 YTD Total: USD14.9bn Total: USD7.6bn Credit (6%) Rates (12%) Europe (23%) FX (17%) Equities (5%) Hong Kong (20%) Securities Services (8%) RoAP (29%
Slide 14: Financial institutions' revenues are well diversified
Delivering the strategy Financial institutions’ revenues are well diversified Financial institutions relationship revenue – diversified by product1 Securities Services Payments and Cash Management FX Credit and Lending Financial Institutions Trade Governments Asset Management Corporates Equities Rat
Slide 15: BSM revenues
Delivering the strategy BSM revenues Balance Sheet Management Revenues (USDm)1 5,000 • Within each operating entity, BSM is 4,492 responsible for managing liquidity, funding 4,500 and structural interest rate risk 4,000 3,500 • BSM reinvests excess liquidity into highly 3,247 3,041 rated liquid asse
Slide 16: GBM legacy portfolio managed to protect shareholder value
Delivering the strategy GBM legacy portfolio managed to protect shareholder value ABS portfolio carrying value1 (USDbn) § Portfolio reduced by USD18bn since 2010 47 -38% § Hold versus dispose decisions based on a clear economic framework (considering cost of capital and funding) 32 29 § Strong capit
Slide 17: Market leaders by both product and region
Delivering the strategy Market leaders by both product and region Global Markets Transaction Banking Capital Financing Project Trade and and Securities Receivable Export FX1 Rates2 Credit3 Equities4 PCM5 Services6 Finance7 Finance8 DCM9 ECM10 M&A11 Hong Kong #1 #1 #1 #1 #1 #1 #1 #2 RoAP ex #3 #1 #1
Slide 18: GBM has a distinctive business model
GBM has a distinctive business model
Slide 19: Connecting clients to global growth opportunities
A distinctive business model Connecting clients to global growth opportunities GBM competitive advantages Example areas of focus • Active in approximately 60 markets Global FX and Rates Top 52 International network • Able to serve multi-national clients • Serve 89 of the Fortune 100 Global companies
Slide 20: Enabling a multiplicity of touchpoints on every transaction
A distinctive business model Enabling a multiplicity of touchpoints on every transaction What has HSBC done? Client Examples of recent transactions Why HSBC? § 100 year relationship, across 25+ countries Advised on increasing stake in Indian subsidiary to 72.5%, USD900m deal, second largest stake §
Slide 21: Well equipped for regulatory changes
A distinctive business model Well equipped for regulatory changes Impact Concerns Strengths • Precise composition of ring- • Leverage in ring-fenced bank fenced bank Structural • Geographic reach • Minimum loss absorbing capital • Ability to service customers Reform – ICB/Volcker requirements • Liqu
Slide 22: Positioned for growth
Positioned for growth
Slide 23: GBM growth priorities
Positioned for growth GBM growth priorities Connecting clients to global growth opportunities Growth priorities to 2016 2016 targets Well-positioned in products that will benefit from global trends §Debt Capital Markets – Corporates in Europe and Asia shifting financing mix Financial RoRWA1, % 2.0-2
Slide 24: Leading position to capture capital market growth in Europe and Asia
Positioned for growth Leading position to capture capital market growth in Europe and Asia Global variation in composition of debt financing1 Market trends % GDP • Bank balance sheet constraints will force corporates to replace bank financing 160 with capital markets debt financing 140 34 12 • If We
Slide 25: Market leader in fast-growing project and export finance market
Positioned for growth Market leader in fast-growing project and export finance market Global Infrastructure Market Global project finance volumes2 • Global annual spending on infrastructure continues at high levels (est. USD2.4 trillion1) USDbn No. of deals 450 1200 • Project financing (est. USD0.4
Slide 26: World's largest global trade finance bank, increasing market share
Positioned for growth World’s largest global trade finance bank1, increasing market share Trade grows faster than GDP2 Globalisation drives trade 1,400 • Between 1990 and 2010, the average annual growth rate in world trade was 1.9 times that of GDP2 1,200 1,000 • Trade is predicted to continue to gr
Slide 27: Number one cash management bank, growing faster than the market
Positioned for growth Number one cash management bank1, growing faster than the market Foundation of the global economy Global payment volumes growing rapidly2 • Payments and Cash Management underpins the world’s financial system • It moves money around the globe for investment and trade CAGR +8% •
Slide 28: The leading international bank for RMB products and services
Positioned for growth The leading international bank for RMB products and services RMB usage is growing Global RMB trade settlement1 • China initiated the internationalisation of RMB in July 2009 by permitting some RMB (bn) % cross-border transactions 10,000 35 • RMB Qualified Foreign Institutional
Slide 29: Continuing to target opportunities in Equities and Event business
Positioned for growth Continuing to target opportunities in Equities and Event business Equities - business highlights Event products - business highlights • Cash Equities has been refocused on Emerging Markets where we are • Our Equity Capital Markets business continues its momentum in emerging gai
Slide 30: Increasing collaborative revenues by connecting HSBC's global businesses
Positioned for growth Increasing collaborative revenues by connecting HSBC’s global businesses Potential upside Initiatives in the medium term • Aspiration: increase incremental CMB collaboration revenues in the medium term – Delivered nearly USD0.7bn in incremental gross revenue since 20101 Commerc
Slide 31: Summary
Summary
Slide 32: Committed to delivering on our financial targets
Summary Committed to delivering on our financial targets • GBM business model and strategy are well established • GBM is delivering resilient results – Continue to make good progress in year to date in 2013 – Good pipeline of sustainable cost saving opportunities • Well positioned for growth with a
Slide 33: Why you should own HSBC
Summary Why you should own HSBC The world is changing . . . HSBC’s distinctive position GBM’s competitive advantage Long-term trends 1. Privileged access to growth 1. International network • Increasing imbalances in opportunities (cohesive portfolio) concentrating 85-90% of international trade and c
Slide 34: Appendix
Appendix
Slide 35: GBM financials
GBM financials1 (USDm) 3Q124 2Q13 3Q13 3Q12 YTD 3Q13 YTD Credit 285 261 219 655 889 Rates 363 422 546 2,168 1,782 Foreign Exchange 736 962 660 2,469 2,493 Equities 140 265 218 536 749 Securities Services 371 442 408 1,170 1,255 Asset and Structured Finance 297 129 69 509 281 Global Markets 2,192 2,4
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