Hsbc Holdings Plc · LSE:HSBA

Hsbc — HSBC Mexico — Corporate Update (December 2017)

24 slides from Hsbc's corporate update, December 2017

  1. Slide 1: HSBC Mexico

    December 2017 HSBC Mexico Nuno A. Matos CEO HSBC México Martin Peusner CFO HSBC México & LAM PUBLIC

  2. Slide 2: Important notice and forward-looking statements

    HSBC Mexico Important notice and forward-looking statements The information set out in this presentation and subsequent discussion does 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 securities or other financial

  3. Slide 3: Our highlights

    HSBC Group Our highlights  Reported PBT of $4.6bn was $3.8bn higher than 3Q16 3rd Quarter 2017  Adjusted PBT of $5.4bn: 3Q17 – Revenue of $13.0bn up $0.3bn or 3% up in all three of our largest global businesses: Financial ▪ RBWM up $0.3bn or 6% primarily from increased deposit revenue and included

  4. Slide 4: 1. Mexico’s economic outlook

    1. Mexico’s economic outlook PUBLIC

  5. Slide 5: Macroeconomic highlights – Key fundamentals

    Mexico’s economic outlook Macroeconomic highlights – Key fundamentals GDP growth Central Bank policy rate % y-o-y % 4.0 4.0 7.0 6.5 2.9 2.5 5.8 2.2 2.5 2.1 4.5 4.5 1.3 3.5 3.3 3.0 2011 2012 2013 2014 2015 2016 2017F 2018F 2011 2012 2013 2014 2015 2016 2017F 2018F Inflation % Foreign Exchange End of

  6. Slide 6: Macroeconomic highlights – Financial depth and trade openness

    Mexico’s economic outlook Macroeconomic highlights – Financial depth and trade openness GDP per capita Domestic credit to private sector USDk3,4 As % of GDP2 10.1 10.1 10.6 10.8 32.7 9.4 10.2 30.6 31.0 8.5 9.3 25.7 27.5 2011 2012 2013 2014 2015 2016F 2017F 2018F 2011 2012 2013 2014 2015 Total Export

  7. Slide 7: Macroeconomic highlights - Public sector

    Mexico’s economic outlook Macroeconomic highlights - Public sector Central Government Budget Deficit Public Sector Borrowing Requirements % GDP % GDP 45.3 50.2 49.5 49.2 3.5 40.4 43.2 3.1 37.5 37.7 2.4 2.6 2.3 2.6 2.3 1.3 2011 2012 2013 2014 2015 2016F 2017F 2018F 2011 2012 2013 2014 2015 2016F 2017

  8. Slide 8: Mexico connected to key regions

    Mexico’s trade Mexico connected to key regions Mexico in key trade corridors1 2016 value of trade (exports and imports), USDbn Trade with Europe Germany 18 Spain 8 Other 40 Europe 66 Trade with NAFTA US 483 Trade with Asia Canada 20 China 75 503 Japan 21 NAFTA South Korea 16 Other 44 Asia 156 Trade

  9. Slide 9: NAFTA Opportunities

    Mexico’s trade NAFTA Opportunities  HSBC is the leading international bank and US-Mexico and US-Canada are amongst top trade corridors in the World and will be 1st and 2nd largest commodity corridors by 2020 HSBC Advantages  HSBC has significant presence in all three countries  International Trad

  10. Slide 10: 2. HSBC in Mexico

    2. HSBC in Mexico HSBC €&>

  11. Slide 11: Our Mexican business is strategically important to Group with significant potential to improve

    HSBC in Mexico Our Mexican business is strategically important to Group with significant potential to improve Ownership chart HSBC Mexico performance1 PBT USDbn HSBC Holdings plc +45% 0.3 0.2 HSBC Latin America 9M16 9M17 Holdings (UK) Limited 100% % of Group² 1.8% 1.5% HSBC Mexico, S.A. 99.99% 9M16

  12. Slide 12: Key executives bios

    HSBC in Mexico Key executives bios Joined HSBC in March 2015. Appointed CEO of HSBC Mexico in December 2015. Nuno A. Matos Experience: Worked for Santander since 1994 in a variety of retail banking, investment banking and CEO functional leadership roles across Europe, the US and Latin America. Also

  13. Slide 13: HSBC Mexico is a key player in the Mexican Financial System with room to grow

    HSBC in Mexico HSBC Mexico is a key player in the Mexican Financial System with room to grow HSBC Mexico position Key businesses  Competitive top-5 universal bank with scale1 Contribution to HSBC Mexico results as of 3Q17 YTD5  Leading trade and cash management bank2 Corporate RBWM CMB GB&M Total

  14. Slide 14: Our Strategy – The Right Strategy…

    HSBC in Mexico Our Strategy – The Right Strategy… + Clients + Revenue + Profitability + Financial Crime Risk Management RBWM CMB GB&M + Clients + Client base diversification + Profitable clients + Retail Business Banking + Fee Income (GLCM & GTRF) + Fee Income (GLCM & GTRF) + Lending to our market s

  15. Slide 15: 3. Financial performance

    3. Financial performance PUBLIC

  16. Slide 16: Reported financial performance 9M17

    HSBC Mexico Reported financial performance 9M17 Revenues1 Loan impairment charges MXNm MXNm +7.9% +32.9% 29,446 7,639 27,287 5,750 9M16 9M17 9M16 9M17 Expenses Profit before taxes MXNm MXNm -2.6% +17.8% 4,653 17,630 17,179 3,951 9M16 9M17 9M16 9M17 Source: HSBC Mexico 3Q17 press release. Figures und

  17. Slide 17: Financial performance 9M17 – excluding non-recurrent items

    HSBC Mexico Financial performance 9M172 – excluding non-recurrent items Revenues1 Loan impairment charges MXNm MXNm +9.4% +32.9% 29,446 7,639 26,918 5,750 9M16 9M17 9M16 9M17 Expenses Profit before taxes MXNm MXNm -1.0% +20.8% 17,179 4,653 17,361 3,851 9M16 9M17 9M16 9M17 Source: HSBC Mexico 3Q17 pr

  18. Slide 18: Credit portfolio increasing vs prior year, whilst deposits being managed

    HSBC Mexico Credit portfolio increasing vs prior year, whilst deposits being managed with a view to reach an effective A/D ratio Loans and advances, net MXNbn +6.7% 284.3 275.0 257.8 265.7 260.0 Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Demand and Time Deposits1 MXNbn +0.8% 285.4 297.9 290.0 299.4 288.0 Se

  19. Slide 19: HSBC Credit growth (gross loans) below market for wholesale

    HSBC Mexico HSBC Credit growth (gross loans), as of Sep 2017, is below market for wholesale, while retail credit growth is in similar levels as of Market Total loans Retail loans MXNbn MXNbn +10% +6% +9% +8% +6% +3% +6% +4% 4,578 288 4,339 1,681 96 4,168 1,542 1,584 89 93 278 271 Sep 16 Dec 16 Sep 1

  20. Slide 20: HSBC margins increased and credit costs were lower

    HSBC Mexico HSBC margins increased and credit costs were lower, closing the gap with the market Lending rates (NIM) Lending rates (NIM adjusted by LICs) (%) (%) 7.6 8.0 7.9 5.8 6.5 6.6 5.4 5.6 6.2 4.2 4.0 4.3 Sep 16 Dec 16 Sep 17 Sep 16 Dec 16 Sep 17 Sep 16 Dec 16 Sep 17 Sep 16 Dec 16 Sep 17 Total S

  21. Slide 21: NPL Ratio converging with the Market

    HSBC Mexico NPL Ratio converging with the Market Total NPL ratio NPL ratio - Wholesale (%) (%) 3.9 4.0 3.0 2.9 3.0 2.4 2.6 2.1 2.1 1.6 1.3 1.2 Sep 16 Dec 16 Sep 17 Sep 16 Dec 16 Sep 17 Sep 16 Dec 16 Sep 17 Sep 16 Dec 16 Sep 17 Total System HSBC Mexico Total System HSBC Mexico NPL ratio – Retail (exc

  22. Slide 22: 4. Final remarks

    4. Final remarks HSBC €&>

  23. Slide 23: Final remarks

    HSBC Mexico Final remarks  Continue turnaround financial performance  Increase new to bank customer base in RBWM through CMB/GB payroll collaboration  Increase market share of wallet of existing customers across all businesses, and become a player commensurate with our retail scale  Grow CMB/GB

  24. Slide 24: PUBLIC

    PUBLIC 24

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