Hsbc Holdings Plc · LSE:HSBA
Hsbc — Investor Presentation (March 2016)
15 slides from Hsbc's investor presentation, March 2016
Slide 1: Commercial Banking Investor update
March 2016 Commercial Banking Investor update 1 Noel Quinn Chief Executive Officer, Global Commercial Banking
Slide 2: Important notice and forward-looking statements
Important notice and forward-looking statements Important notice 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 finan
Slide 3: HSBC Group highlights
HSBC Group highlights 2015 Full Year – Reported PBT up 1%: net favourable movement in significant items – Adjusted PBT fell 7%: – Higher revenue of $0.5bn (1%) from growth in client-facing GB&M (7%), CMB (3%) and 2015 Principal RBWM (2%) Reported PBT Financial (2014: $18.7bn) – Higher costs (up $1.6
Slide 4: HSBC Group 2015 key metrics
HSBC Group 2015 key metrics 2015 Full Year Key financial metrics FY14 FY15 Target Return on average ordinary shareholders’ equity 7.3% 7.2% >10% Jaws (adjusted) - (3.7)% Positive Dividends per ordinary share in respect of the year $0.50 $0.51 Progressive Earnings per share $0.69 $0.65 n/a Common equ
Slide 5: Commercial Banking Overview
Commercial Banking Overview Commercial Banking continues to focus on international growth and returns Key messages 2015 Financial performance2 ($bn unless stated otherwise) ‒ Achieved 3% YoY revenue growth in 2015 despite challenging market conditions – Credit & Lending and PCM driving Revenue 14.9
Slide 6: Financial Performance
Financial Performance Solid business performance in challenged environment CMB continues to grow revenues despite headwinds1 Strong balance sheet growth and effective RWA management1 ($bn) ($bn) 2014 2015 Growth Brazil 2014 2015 Growth 14.9 295 302 Revenue 3% 8 Excl. Brazil 14.5 Loans3 287 5% 1.8 LI
Slide 7: Revenues
Revenues Revenue growth driven Credit & Lending and PCM CMB revenue performance Revenue1 by Product 2015 ($bn): Growth driven by vs. 2014 Revenue1 by Region 2015 (% of total): Revenue remains regionally Credit & Lending and PCM (% growth) diversified Middle East & 5% 5% 9% 10% North Africa 14% Payme
Slide 8: Risk management
Risk management Quality of assets remain robust – increase in LICs primarily driven by global economic challenges CMB LICs remain below historical performance Increase in 2015 driven by global oil and commodity prices as well as local economic environments Reported LICs as % of average gross loans a
Slide 9: Cost
Cost CMB made good progress on key cost management actions in 2015 2Q15 actions begin to stabilise and reduce cost base Cost management actions CMB adjusted operating expenses ($m) – Actions taken to achieve more than $100m cost savings towards our $200m target ‒ Rationalised RM coverage based on cl
Slide 10: RWA management
RWA management $23bn of managed RWA reduction in 2015 – negligible impact on revenue RWA management alongside growth and regulation Majority of RWAs relate to Europe and Asia RWAs excluding associates ($bn) Regional RWA distribution, excluding associates (% of total) 318 11 Europe 36% 307 23 23 Asia
Slide 11: International Network
International Network CMB is central to the Group’s revenue synergies Collaboration with CMB accounted for CMB-enabled revenue synergies grew 5% over half of the Group’s revenue synergies Revenue synergies 2015 ($bn) Revenue synergies with CMB clients and products 2015 ($bn) Revenue ($bn) Definition
Slide 12: International Network
International Network International Subsidiary Banking network – supports clients as they expand globally International Subsidiary Banking delivered c.12% revenue growth from CMB’s cross-border revenue driven by clients c.400 RMs1 across 44 markets headquartered in key hubs ISB by region 2015 Corpor
Slide 13: International Network
International Network PCM and GTRF – helping CMB’s clients globalise CMB revenue as a % of total Transaction banking core to revenue and CMB’s strategy ($bn) 14.9 ‒ PCM revenue up 3% YoY reflecting average deposit growth (+8% YoY) ‒ Significantly increased client mandates won (+29% YoY) Payments & ‒
Slide 14: Summary
Summary Capitalise on Commercial Banking’s network advantage to drive growth With more than 2 million customers in 55 countries and territories, CMB is able to engage in all aspects of the supply chain ‒ Grow revenue by maximising our own global network and the networks of our clients: ‒ Deepen rela
Slide 15: Issued by HSBC Holdings plc Group Investor Relations
Issued by HSBC Holdings plc Group Investor Relations 8 Canada Square London E14 5HQ United Kingdom Cover image: Tsing Ma Bridge carries road and rail traffic to Hong Kong International Airport and accommodates large Telephone: 44 020 7991 3643 container ships. At HSBC, we help customers across the w