Hsbc Holdings Plc · LSE:HSBA
Hsbc — FY2000 Earnings Presentation
23 slides from Hsbc's earnings presentation, 2001
Slide 1: HSBC Holdings plc 2000 Results
HSBC Holdings plc 2000 Results !"# !"#$
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: 2000 results - overview
2000 results - overview Cash Cash basis basis Reported Reported US$m US$m Operating Operating profit profit before before provisions provisions 10,996 up 13% 10,486 10,486 up up 9% 9% Pre-tax Pre-tax profit profit 10,300 up 28% 28% 9,775 9,775 up up 22% 22% Attributable Attributable profit profit 7,
Slide 4: A year of Significant Progress
A year of Significant Progress • Building for long-term growth ! New ! New businesses businesses ! Integration ! Integration ! Focusing ! Focusing on on customer customer value value 2000 Results 4 !"% !"
Slide 5: New Businesses
New Businesses • Capital and revenue investment of US$1.6bn • Mandatory Provident Fund • E-commerce ! Internet ! Internet banking banking extended extended toto 66 more more countries countries ▲ over ▲ over 1.5 1.5 million million registered registered customers customers ▲ making ▲ making over ove
Slide 6: Integration Update
Integration Update • RNYC/SRH ! New ! New York York branches branches integrated integrated and and renamed renamed ! Costs ! Costs on on track track ! HSBC ! HSBC Republic Republic established established as as our our global global private private banking banking brand brand ! Private ! Private ba
Slide 7: Focusing on customer value
Focusing on customer value • Competitive pricing • Transparency • Value ! UK ! UK mortgages mortgages ! Mandatory ! Mandatory Provident Provident Fund Fund • Brand values ! broaden ! broaden & & deepen deepen customer customer relationships relationships ! attract ! attract new new business business
Slide 8: Growth in 2000
Growth in 2000 CCF 308 CCF 544 Average interest -earning assets + 23% CCF 649 excluding restructuring US$m US$m Net interest margin - 20bp Net Net interest interest income income ++ 1,733 1,733 14.5% 14.5% Other Other operating operating income income ++ 1,838 1,838 20.4% 20.4% Operating Operating i
Slide 9: Significant financial impacts
HSBC Bank plc 10% of standing order Significant financial impacts amendments & 35% of payments on demand Hong Kong on line 40% of personal bank • on Revenues securities trades on line US$m ! Hong Kong mortgage margin pricing - 171 ! Hong Kong mortgage bad debts First Direct - 101 ! UK Personal Finan
Slide 10: Significant financial impacts (contd)
Significant financial impacts (contd) (contd) US$m 2000 1999 US$m • within Subsidiaries ! HSBC ! HSBC Bank Bank Malta Malta profit profit before before tax tax 35 35 33 • in Joint ventures ! Merrill ! Merrill Lynch Lynch HSBC HSBC -- 52 52 00 • and within Associates ! British ! British Interactive I
Slide 11: 2000 First Half/Second Half comparison (excluding CCF)
2000 First Half/Second Half Lower special general comparison (excluding (excluding CCF) CCF) provision release 58 Dealing profits - 215 Higher bad debt charges: Net fees - 181 H1 H1 H2 H2 Rest ofH2 H2 variance variance 59 Asia-Pacific inc. Brokerage - 216 Latin America 70 Net Net interest interest i
Slide 12: Fees and commissions receivable
Fees and commissions receivable (excluding (excluding CCF) CCF) US$m US$m Change Change in in 2000 2000 c/w c/w 1999 1999 Account Account services services ++ 151 151 11.4% 11.4% Credit Credit facilities facilities ++ 81 81 15.5% 15.5% Remittances Remittances ++ 11 0.5% 0.5% Broking income Cards Car
Slide 13: Estimated impact of acquisitions
Estimated impact of acquisitions (on (on aa cash cash basis) basis) US$m US$m RNYC/SRH RNYC/SRH CCF CCF TOTAL TOTAL Profit Profit before before tax tax ** 850 850 244 244 1,094 1,094 Attributable Attributable profit profit ** 629 629 176 176 805 805 Funding Funding costs costs (253) (253) (90) (90)
Slide 14: Continuing financial strength
Continuing financial strength • Revenue mix improving ! Non-funds ! Non-funds income income as as %% of of Operating Operating income income 2000 2000 1999 1999 ▲ Total ▲ Total non-funds non-funds income income 44.2% 44.2% 42.9% 42.9% ▲ ▲ Fees Fees and and commissions commissions 29.8% 29.8% 28.6% 2
Slide 15: Market risk-related revenues in 2000
Market risk-related revenues in 2000 averaged US$10.0m a day Daily Daily distribution distribution of of Market Market Risk Risk Revenues Revenues 30 30 Group Group Treasury Treasury Centres Centres 25 25 ! P&L ! P&L frequency frequency 2000 2000 days of days 20 20 ! P&L ! P&L frequency frequency 19
Slide 16: Market risk-related revenues in 2000: H2 compared with H1
Market risk-related revenues in 2000 H2 compared with H1 Daily Daily distribution distribution of of Market Market Risk Risk Revenues Revenues Group Group Treasury Treasury Centres Centres 16 16 14 14 ! P&L ! P&L frequency frequency H2 H2 2000 2000 12 12 days of days ! P&L ! P&L frequency frequency
Slide 17: Operating margin
Operating margin (Operating (Operating profit profit before before provisions, provisions, excluding excluding goodwill goodwill amortisation amortisation as as % % of of average average risk-weighted risk-weighted assets) assets) Bad debt charge (Bad (Bad debt debt charge charge as as % % of of 4.0
Slide 18: Non-performing customer loans
Non-performing customer loans US$m US$m 1,000 1,000 800 800 600 600 400 400 200 200 00 Dec-97 Dec-97 Jun-98 Jun-98 Dec-98 Dec-98 Jun-99 Jun-99 Dec-99 Dec-99 Jun-00 Jun-00 Dec-00 Dec-00 Indonesia Indonesia Thailand Thailand Malaysia Malaysia South South Korea Korea 2000 Results 18 !"% !"
Slide 19: Tier 1 capital of US$2.3bn generated in excess of that applied
Tier 1 capital of US$2.3bn generated in excess of that applied Capital Capital generated generated Scrip Scrip dividend dividend 0.9 0.9 Innovative Innovative Tier Tier 1 1 capital capital 3.5 3.5 Attributable Attributable profits profits (cash (cash basis) basis) 7.2 7.2 Issue Issue of of capital c
Slide 20: HSBC: Outlook
HSBC: Outlook • US economy ! rate ! rate of of growth growth has has slowed slowed ! external ! external impact impact • Competition ! testing ! testing environment environment 2000 Results 20 !"% !"
Slide 21: Growing the Business
Growing the Business • Optional strategy ! Grow ! Grow or or acquire acquire where where there there is is potential potential • Winning new customers ! 580,000 ! 580,000 Mandatory Mandatory Provident Provident Fund Fund investors investors ! 1.1m ! 1.1m more more credit credit cards cards in in Asi
Slide 22: Growing the Business (contd)
Growing the Business (contd) (contd) We will continue to - BUILD ON PROGRESS - INVEST IN GROWTH - MAINTAIN FINANCIAL STRENGTH 2000 Results 22 !"% !"
Slide 23: Your world of financial services
YOUR WORLD OF FINANCIAL SERVICES !"# !"#$