Hsbc Holdings Plc · LSE:HSBA
Hsbc — Corporate Update (March 2018)
17 slides from Hsbc's corporate update, March 2018
Slide 1: US Business Update
March 2018 US Business Update
Slide 2: Key messages
Key messages 1 Consumer and Mortgage Lending ‘CML’ (run-off portfolio) sales completed by YE 2017 2 $4.5bn dividends paid from HSBC North America Holdings (HNAH) to Group in 2017 3 The US is the largest contributor of cross-border revenue in the Group, and this is growing1 Improved US Principal Busi
Slide 3: Agenda
Agenda 1 Executive Summary 2 Strategic role of the US for HSBC’s global network 3 US Global Business update 3
Slide 4: Executive Summary
Executive Summary 2017 Full Year Highlights 2012 DPA with US DoJ has expired; with respect to 2010 and 2012 Consent 2017 Orders against HBUS and HNAH, we believe we have taken the appropriate steps Adjusted Principal Business Completed to bring ourselves into compliance with the corresponding requ
Slide 5: US Principal Business: 2017 Financial Overview
US Principal Business: 2017 Financial Overview Key Metrics (on an adjusted basis) Adjusted PBT by Global Business $m $m Δ2016 Growth, +138% +427% +27% 2016 2017 2017 Adverse Favourable YoY Revenue 4,737 39 1% 920 527 -4% 387 432 341 Loan impairment charges 118 621 100 67 64 Operating expenses (3,936
Slide 6: Agenda
Agenda 1 Executive Summary 2 Strategic role of the US for HSBC’s global network 3 US Global Business update 6
Slide 7: Global role of the US economy
Strategic role of the US for HSBC’s global network Global role of the US economy US is the world’s largest economy Strong trade fundamentals Top 5 economies by GDP1, 2016, $trn % of world total Forecast US exports and imports3, 2020, $bn Forecast 18.6 2016-20 CAGR 11.2 US-NAFTA 1,246 3.2% 4.9 3.5 2.
Slide 8: US continues to be a top contributor of cross border revenue to the Group
Strategic role of the US for HSBC’s global network US continues to be a top contributor of cross border revenue to the Group Top 5 contributors to Group US inbound and outbound client revenues showed double-digit growth in 20171,2,3 Outbound Inbound Outbound US ↔ Europe US US ↔ North America 35% US
Slide 9: Agenda
Agenda 1 Executive Summary 2 Strategic role of the US for HSBC’s global network 3 US Global Business update 9
Slide 10: US GB&M connects multinational clients to international markets and delivers profitable growth to HSBC
US Global Business update A US GB&M connects multinational clients to international markets and delivers profitable growth to HSBC Group US-related GB&M Income Mix by Source Business Overview Inbound Domestic Outbound Growth 2015-2017 GB&M serves top multinational clients with collective knowledge
Slide 11: US CMB shifting focus from returns improvement to disciplined and profitable revenue growth
US Global Business update B US CMB shifting focus from returns improvement to disciplined and profitable revenue growth Focus on returns improvement resulting in improved PBT; driven by cost and RWA saves and LICs improvement Ambition: Leading International Commercial Bank in the US Revenue growth
Slide 12: Sizeable opportunity to grow the CMB business in the US
US Global Business update B Sizeable opportunity to grow the CMB business in the US Over 70k internationally-connected CMB has offices and bankers in the majority of cities / MSAs 2 with the highest companies operating in the US concentration of international companies # of companies in US with annu
Slide 13: US RBWM: Achieved key milestones and is ready for growth
US Global Business update C US RBWM: Achieved key milestones and is ready for growth $m RBWM has improved profitability, grown +3% revenue and deposits while transforming 1,161 1,194 its core banking platform for an enhanced customer value proposition Successfully in-sourced residential Key mort
Slide 14: US GPB and Corporate Center
US Global Business update D US GPB and Corporate Center GPB De-risking of portfolio nearly complete $m Key Optimized US locations Milestones Adjusted Revenue Adjusted PBT Achieved Up-tier, transfer or exit of small clients ongoing 303 317 Focus on optimizing investment products, platforms an
Slide 15: Appendix
Appendix 15
Slide 16: Reconciliation of Adjusted US Principal Business PBT to Reported US PBT
Reconciliation of Adjusted1 US Principal Business PBT to Reported US PBT PBT ($m) 2017 2016 Adjusted Reported US Adjusted Reported US Significant CML run-off Significant CML run-off US Principal Principal Reported US US Principal Principal Reported US items portfolio items portfolio Business Busines
Slide 17: 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