Hsbc Holdings Plc · LSE:HSBA
Hsbc — Q4 2020 Earnings Presentation
86 slides from Hsbc's earnings presentation, Feb 23, 2021
Slide 1: HSBC Holdings plc 4Q20 Results
HSBC Holdings plc 4Q20 Results Opening up a world of opportunity Presentation to Investors and Analysts
Slide 2: Agenda
Agenda Results FY20 highlights and achievements Noel Quinn FY20 and 4Q20 results Ewen Stevenson Opening up a world of opportunity Our Strategy Noel Quinn Driving growth in Asia Peter Wong Pivot to Wealth Nuno Matos Digital Business Services John Hinshaw Financial snapshot Ewen Stevenson Conclusion N
Slide 3: Noel Quinn, Group Chief Executive
Noel Quinn Group Chief Executive 2
Slide 4: FY20: A strong base to deliver future growth
Results FY20 highlights FY20 & 4Q20 results FY20: A strong base to deliver future growth Continued support for customers and communities through Covid-19 restrictions 1 >$52bn of wholesale lending support through government schemes and moratoria, with >$26bn of additional relief granted to personal
Slide 5: Opening up a world of opportunity
Results FY20 highlights FY20 & 4Q20 results A refreshed purpose, values and ambition to support the execution of our strategy Our purpose Opening up a world of opportunity Our ambition To be the preferred international financial partner for our clients Our values We value difference We succeed t
Slide 6: Delivering against our February 2020 Update
Results FY20 highlights FY20 & 4Q20 results Delivering against our February 2020 Update Progress against our financial targets FY22 target FY20 progress4 (as announced at Feb20) Costs Adjusted costs ≤$31bn; $4.5bn of cost programme saves $1bn cost saves RWAs >$100bn gross RWA reduction $52bn gro
Slide 7: Ewen Stevenson, Group Chief Financial Officer
Ewen Stevenson Group Chief Financial Officer 6
Slide 8: FY20 results summary
Results FY20 highlights FY20 & 4Q20 results FY20 results summary $m FY20 FY19 Δ NII 27,599 30,339 (9)% Non interest income 22,767 24,605 (7)% Revenue 50,366 54,944 (8)% Reported PBT of $8.8bn down $4.6bn (34%) vs. ECL (8,817) (2,627) >(100)% FY19, primarily from lower revenue and higher ECL, offse
Slide 9: 4Q20 results summary
Results FY20 highlights FY20 & 4Q20 results 4Q20 results summary $m 4Q20 4Q19 Δ NII 6,620 7,751 (15)% Non interest income 5,204 6,031 (14)% Adjusted revenue down $2.0bn (14%) vs. 4Q19, Revenue 11,824 13,782 (14)% primarily due to lower global interest rates, partly offset by ECL (1,174) (696) (69)
Slide 10: 4Q20 adjusted revenue performance
Results FY20 highlights FY20 & 4Q20 results 4Q20 adjusted revenue performance 4Q20 revenue 4Q20 vs. 4Q19 Revenue by global business, $bn Retail Banking $3,043m (972) (14)% WPB $5,321m (18)% Wealth Management $2,053m o/w insurance market impacts: $98m (91) 13.8 12.2 Other $225m (89) 11.8 3.8 GTRF $42
Slide 11: Net interest income
Results FY20 highlights FY20 & 4Q20 results Net interest income Reported NIM progression, bps 120 122 1 (3) (1) 5 FY20 reported NII of $27.6bn was down $2.9bn (9%) vs. FY19 due to global reductions in interest rates, partly offset by increases in AIEAs 3Q20 Asset yields Asset volumes Liability cos
Slide 12: Non-NII
Results FY20 highlights FY20 & 4Q20 results Non-NII Group, $m WPB, $m CMB, $m GBM, $m Net fees Net fees Net fees Net fees (1)% (2)% (3)% (6)% 2,989 3,017 2,966 1,372 1,406 1,327 0% 1% 1% 1% 828 828 840 804 797 808 4Q19 3Q20 4Q20 4Q19 3Q20 4Q20 4Q19 3Q20 4Q20 4Q19 3Q20 4Q20 WM RB Other GLCM GTRF C&L
Slide 13: Credit performance
Results FY20 highlights FY20 & 4Q20 results Credit performance Adjusted ECL charge trend FY20 ECL charge of $8.8bn, up 0.25 0.81 ECL as a % of $6.2bn vs. FY19, due to deteriorations in 1.47 average gross forward economic outlook from the global 1.13 loans and advances impact of the Covid-19 pandem
Slide 14: Adjusted costs
Results FY20 highlights FY20 & 4Q20 results Adjusted costs Operating expenses trend, $m FY20 costs of $31.5bn down $1.1bn (3%) vs. FY19 primarily from cost programme saves and reductions in performance-related pay (PRP), partially 9,176 9,106 offset by increases in technology spend and inflation 9
Slide 15: Transformation programme – RWA saves
Results FY20 highlights FY20 & 4Q20 results Transformation programme – RWA saves FY20 RWA savings, $bn $51.5bn of saves over FY20*, primarily in GBM 51.5 NRFB saves of $24.4bn, with $17.0bn in Global Markets. UK 7.8 NRFB reductions of $16.5bn includes $15.6bn related to Global Markets. 9.4 US
Slide 16: Capital adequacy
Results FY20 highlights FY20 & 4Q20 results Capital adequacy CET1 ratio, % 0.2 (0.0) 0.1 (0.4) 15.9 CET1 ratio of 15.9%, up 0.3ppts vs. 3Q20; 15.6 0.4 including the impact of software capitalisation benefits and favourable FX movements CET1 ratio increased 1.2ppts from 14.7% 3Q20 Change FX trans
Slide 17: Agenda
Agenda Results FY20 highlights and achievements Noel Quinn FY20 and 4Q20 results Ewen Stevenson Opening up a world of opportunity Our Strategy Noel Quinn Driving growth in Asia Peter Wong Pivot to Wealth Nuno Matos Digital Business Services John Hinshaw Financial snapshot Ewen Stevenson Conclusion N
Slide 18: Noel Quinn, Group Chief Executive
Noel Quinn Group Chief Executive 17
Slide 19: We recognise some fundamental shifts and have aligned our strategy accordingly
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services We recognise some fundamental shifts and have aligned our strategy accordingly Lower for longer interest rates globally The digital experience economy as a new norm Increased focus on sustainability Evolu
Slide 20: A refreshed purpose, values and ambition to support execution of our strategy
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services A refreshed purpose, values and ambition to support the execution of our strategy Our purpose Opening up a world of opportunity Our values We value difference We succeed together We take responsibil
Slide 21: Focus on our strengths: Drivers of growth
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Focus on our strengths: Drivers of growth Wealth and Personal Banking (WPB) Commercial Banking (CMB) Global Banking & Markets (GBM) Lead in Wealth with a particular focus on Accelerate international clien
Slide 22: Focus on our strengths: A focused international business in the US and NRFB
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Focus on our strengths: A focused international business in the US and NRFB US: leading international corporate business and a new Non Ring-Fenced Bank in Europe and the UK: a leaner, wealth management pl
Slide 23: Digitise at scale: by unlocking investment capacity
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Digitise at scale: by unlocking investment capacity Accelerating technology investment Driving down our cost base Adjusted costs Investment22 $bn ≤$30bn based on BAU costs FY20 average FX rates We plan to
Slide 24: Energise for growth: to be 'fit for the future'
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Energise for growth: to be ‘fit for the future’ Inspire a dynamic culture Champion inclusion Develop future skills Reenergise our culture to succeed with purpose Increase diverse representation, parti
Slide 25: Transition to net zero: we have set out an ambitious plan
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Transition to net zero: we have set out an ambitious plan Our ambitions Our actions Become a net zero bank Set out clear and measurable pathways to net zero, using the Paris Align our financed emissio
Slide 26: Accelerating the shift to our highest return and growth opportunities
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Accelerating the shift to our highest return and growth opportunities, to deliver above cost of capital returns Fees + Revenue Capital allocation Insurance growth rate Group targets, dividend and capital
Slide 27: Peter Wong, CEO Asia-Pacific
Peter Wong Chief Executive Officer, Asia-Pacific 26
Slide 28: Economic growth and wealth creation make Asia the largest banking opportunity
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Economic growth and wealth creation make Asia the largest banking opportunity in the world Asia forecasted to represent c.50% of global economy by 202530 Trade flows in Asia growing faster than world aver
Slide 29: Over the past 10 years, we have a strong track record of growth in Asia
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Over the past 10 years, we have a strong track record of growth in Asia Asia reported revenue, $bn Recent growth drivers Greater Bay Area (GBA) Covid-19 related Sustained market leadership34: #1 in depo
Slide 30: Greater China, Southeast Asia, and India will be key drivers of future growth
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Greater China, Southeast Asia, and India will be key drivers of our future growth Hong Kong $16.4bn Mainland China $3.1bn $1.8bn adjusted revenue adjusted associate Defend and grow from our Develop mainla
Slide 31: Future growth in Asia driven by c.$6bn of additional growth investment
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Future growth in Asia will be driven by c.$6bn of additional growth investment in Wealth and International Wholesale over the next 5 years Leading bank for Asian Wealth Management Leverage the network Lea
Slide 32: Nuno Matos, CEO Wealth and Personal Banking
Nuno Matos Chief Executive Officer, Wealth and Personal Banking 31
Slide 33: Strongly positioned to capture the wealth opportunity
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Strongly positioned to capture the wealth opportunity Wealth is the most attractive segment for growth and Significant potential to accelerate growth of our c.$8bn Wealth profitability Management revenues
Slide 34: Our wealth ambition
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Our wealth ambition Enabled by significant >$3.5bn grow th investment, including in technology and hiring >5,000 53 client facing w ealth planners over the next 3-5 years Premier Jade $780bn wealth balanc
Slide 35: Building on our strength in Hong Kong to grow onshore and offshore Asian Wealth
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Building on our strength in Hong Kong to grow onshore and offshore Asian Wealth in mainland China and internationally Hong Kong Mainland China International Strengthen our leadership Become a leading
Slide 36: John Hinshaw, Group Chief Operating Officer
John Hinshaw Group Chief Operating Officer 35
Slide 37: Investing to digitise, automate and innovate
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Investing to digitise, automate and innovate Accelerating investments in technology Investing and digitising at scale Technology spend, $bn Investments BAU Delivering excellent customer experience through
Slide 38: Driving customer experience through our global platforms and partnerships
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Driving customer experience through our global platforms and partnerships Mobile X, our flagship banking app Global Money Account without borders Kinetic, mobile-first, cloud-first business banking Stan
Slide 39: Driving operational efficiency through automation and innovation
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Driving operational efficiency through automation and innovation Example outcomes47 Reduction in Technology headcount63 Reduction in Operations headcount64 74k Drive STP with a target for 99% 49k of payme
Slide 40: Ewen Stevenson, Group Chief Financial Officer
Ewen Stevenson Group Chief Financial Officer 39
Slide 41: Rebuilding equity returns above the cost of capital
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Rebuilding equity returns above the cost of capital Drivers to achieve RoTE target Indicative reported RoTE walk by driver Expect normalisation of ECL charge from $8.8bn 1 (81bps) in FY20 to at or below t
Slide 42: Group targets, dividend and capital policy
Digital Business Opening up a world of opportunity Our Strategy Asia Wealth Financials Services Group targets, dividend and capital policy Adjusted costs of ≤$31bn in 2022 on Dec 2020 average FX rates Costs ≤$30bn using FY20 average FX rates, a $1bn increase in our cost reduction target Plan to
Slide 43: Noel Quinn, Group Chief Executive
Noel Quinn Group Chief Executive 42
Slide 44: In summary
Digital Business Conclusion Our Strategy Asia Wealth Financials Services In summary • In 2020, we set our strategy in motion and supported our customers and communities through the Covid-19 pandemic • We will significantly increase the Group’s capital and resource allocation to faster growing market
Slide 45: Appendix
Appendix XP usec
Slide 46: Assumptions and basis of preparation
Appendix Strategy Results Assumptions and basis of preparation Medium term is defined as 3-4 years; long term is defined as 5-6 years ‘Wholesale’ refers to CMB plus GBM Assumed no changes from 2020 in IFRS accounting rules, and excludes the potential impact of IFRS17 Losses on asset disposal
Slide 47: Update on guidance versus Feb-20 update
Appendix Strategy Results Update on guidance versus Feb-20 update Feb-20 guidance New guidance As at FY20 ≤$31bn in FY22 on Dec 2020 average FX rates* Adjusted costs ≤$31bn in FY22 $31.5bn ≤$30bn using average FY20 FX rates $6bn FY19-22 $7bn FY19-22 CTA $1.8bn (phasing: 40%/>50%/<10% in 2020-22) (ph
Slide 48: How we will succeed
Appendix Strategy Results How we will succeed Driven by a renewed operating model Significant capital and funding strength A strategy already in motion and a fresh leadership team to drive high returns growth in Asia Key initiatives already kicked off in 2020 Simplified organisation empowered to exe
Slide 49: A GBM refocused on the high-growth East
Appendix Strategy Results A GBM refocused on the high-growth East Reallocating resources Accelerate investment in Asia Leverage network and serve clients across the Group RWAs Asia market positioning69 Global revenues East68 West68 GLCM #1 East West GTRF #1 Prioritise serving clients into and with
Slide 50: The value of our international network
Appendix Strategy Results The value of our international network CMB and Global Banking client revenue72 FY20 HSBC franchise is highly connected International clients73 and focused on international clients (incl. domestic and cross-border revenue74) c.75% This focus enables leading positions in tr
Slide 51: Taking further action to reduce the Group's cost base, whilst increasing investment
Appendix Strategy Results Taking further action to reduce the Group’s cost base, whilst increasing investment Adjusted costs, $bn Expect to keep costs broadly stable c.7-10% from 2022 onwards CAGR increase 32.5 Stable 5 – 5.5 ≤31* costs ≤30 2019 Investment Inflation Cost Bank levy Other 2022 Impact
Slide 52: Increasing capital allocation to higher returning and higher growth franchises
Appendix Strategy Results Increasing capital allocation to higher returning and higher growth franchises Accelerating pace of Tangible Equity allocation to Asia and WPB Tangible Equity, % of Group By legal entity27 Asia NRFB US UK RFB Others By global business28 WPB CMB GBM Expect to double 24% 25%
Slide 53: February 2020 Business Update progress and business highlights
Appendix Strategy Results February 2020 Business Update progress and business highlights Detail on progress against our FY22 financial targets Other business highlights FY22 target FY20 progress4 WPB (as announced at Feb20) Wealth balances increased $0.2tn (12%) to $1.6tn vs. FY19 Asset Manageme
Slide 54: ESG highlights
Appendix Strategy Results ESG highlights81 Environmental Social Governance Target Progress Target Progress Target Progress Sustainable finance Customer satisfaction Conduct outcomes Provide and facilitate $93bn Customer satisfaction 7WPB and 5 CMB 98% of staff to 93% of staff $100bn by the end impro
Slide 55: Key financial metrics
Appendix Strategy Results Key financial metrics Reported results, $m 4Q20 3Q20 4Q19 Balance sheet, $m 4Q20 3Q20 4Q19 NII 6,619 6,450 7,654 Total assets 2,984,164 2,955,935 2,715,152 Other Income 5,138 5,477 5,717 Net loans and advances to customers 1,037,987 1,041,340 1,036,743 Revenue 11,757 11,927
Slide 56: Reconciliation of reported and adjusted results
Appendix Strategy Results Reconciliation of reported and adjusted results $m 4Q20 3Q20 4Q19 FY20 FY19 Reported PBT 1,385 3,074 (3,897) 8,777 13,347 Revenue Currency translation — 178 134 — (471) Customer redress programmes (1) 48 45 21 163 Disposals, acquisitions and investment in new businesses 2 —
Slide 57: Tax impacts of significant items
Appendix Strategy Results Tax impacts of significant items FY20 $m PBT Tax ETR Reported 8,777 2,678 30.5% Less: Significant items 3,372 660 — Tax-only significant items — 117 — Adjusted basis 12,149 3,455 28.4% Adjusted tax charge includes: Impact of tax rate and law changes — 58 — Write-off/write-b
Slide 58: Certain items and Argentina hyperinflation
Appendix Strategy Results Certain items and Argentina hyperinflation Certain items included in adjusted revenue 4Q20 3Q20 2Q20 1Q20 4Q19 FY20 FY19 highlighted in management commentary83, $m Insurance manufacturing market impacts in WPB 298 126 362 (710) 200 90 128 Credit and funding valuation adjust
Slide 59: Certain volatile items analysis
Appendix Strategy Results Certain volatile items analysis WPB: Insurance manufacturing market impacts GBM: Credit and funding valuation adjustments Corporate Centre: Valuation differences on long- revenue, $m revenue and bid-offer adjustment, $m term debt and associated swaps, $m 362 209 240 259 298
Slide 60: FY20 adjusted revenue performance
Appendix Strategy Results FY20 adjusted revenue performance FY20 revenue FY20 vs. FY19 Revenue by global business, $bn Retail Banking $12,938m (2,717) (8)% WPB $22,013m (14)% Wealth Management $7,818m o/w insurance market impacts: $(38)m (815) 54.9 52.1 50.4 Other $1,257m (20) 14.9 GTRF $1,744m (82)
Slide 61: Global business management view of adjusted revenue
Appendix Strategy Results Global business management view of adjusted revenue Group, $m 4Q19 1Q20 2Q20 3Q20 4Q20 ∆4Q19 GBM, $m 4Q19 1Q20 2Q20 3Q20 4Q20 ∆4Q19 Total Group revenue 13,782 13,508 13,625 12,245 11,824 (14)% Global Markets 1,260 2,164 2,204 1,608 1,430 13 % Adjusted revenue reported at or
Slide 62: Wealth and Personal Banking
Appendix Strategy Results Wealth and Personal Banking 4Q20 financial highlights Balance sheet89 $bn 4Q20 vs. 4Q19 Revenue $5.3bn (18)% 9% Revenue down $1,152m (18%) driven by lower Retail Banking (down (4Q19: $6.5bn) 3% $972m) following interest rate cuts, lower Insurance Manufacturing 814 835 (do
Slide 63: Commercial Banking
Appendix Strategy Results Commercial Banking 4Q20 financial highlights Balance sheet89, $bn 4Q20 vs. 4Q19 Revenue $3.1bn (15)% Revenue down $570m (15%), reflecting the impact of lower global (4Q19: $3.7bn) Customer lending interest rates in GLCM and other products partially offset by higher >(100)
Slide 64: Global Banking and Markets
Appendix Strategy Results Global Banking and Markets 4Q20 financial highlights View of adjusted revenue 4Q20 vs. 4Q19 (7)% $m 4Q20 ∆4Q19 Management have delivered net RWA reductions of $12bn (4%) and Revenue $3.5bn (4Q19: $3.8bn) lower costs Global Markets 1,430 13 % FICC 1,069 (1)% Revenue down
Slide 65: Corporate Centre
Appendix Strategy Results Corporate Centre 4Q20 financial highlights Revenue performance83, $m Revenue $(155)m 10% 4Q19 1Q20 2Q20 3Q20 4Q20 (4Q19: $(173)m) Central Treasury (47) 265 (64) (32) (12) ECL $1m (94)% Of which: (4Q19: $16m) Valuation differences on long-term debt and 3% (73) 259 (64) (32)
Slide 66: Insurance
Appendix Strategy Results Insurance Key financial metrics Reported Embedded value91, $bn Adjusted income statement, $m FY20 FY19 FY18 8% Strategic delivery in 2020: CAGR Net operating income 1,977 2,720 2,020 Announced agreement to acquire the remaining 50% 13.9 15.4 Of which: Net interest income
Slide 67: Hong Kong and UK WPB customer activity data
Appendix Strategy Results Hong Kong and UK WPB customer activity data Hong Kong* We continue to support home Credit card spend** Mortgage drawdowns** buyers and have seen a pickup in 4Q20; the UK RFB increased its 150 250 gross mortgage market share to 200 10.3% over FY20, up from 8.1% in 100 FY19
Slide 68: GBM and CMB IRB RWA inflation and mitigating actions
Appendix Strategy Results GBM and CMB IRB RWA inflation and mitigating actions Wholesale counterparty IRB RWAs and exposures All CRR Bands FY19 FY20 ∆ RWA, $bn 341 346 EAD, $bn 695 680 GBM & CMB wholesale performing IRB book: RWA density, % 49.0 50.8 1.8ppt • includes: corporates, sovereigns and f
Slide 69: ECL and personal lending relief
Appendix Strategy Results ECL and personal lending relief ECL charge by geography, $m Analysis by stage Stage 3 499 Reported basis, $bn Stage 1 Stage 2 Stage 3 Total95 as a % 3Q20 4Q20 of Total 4Q20 237 256 271 219 216 Gross loans and advances to customers 869.9 163.2 19.1 1,052.5 1.8% 164 89 103 Al
Slide 70: Net interest margin supporting information
Appendix Strategy Results Net interest margin supporting information NII sensitivity to instantaneous change in yield curves (12 months) Quarterly NIM by key legal entity % of 4Q20 % of 4Q20 Currency 4Q19 1Q20 2Q20 3Q20 4Q20 Group NII Group AIEA Change in Jan 2021 to Dec 2021 USD HKD GBP EUR Other T
Slide 71: RoTE by global business excluding significant items and UK bank levy
Appendix Strategy Results RoTE by global business excluding significant items and UK bank levy FY20 $m Corporate WPB CMB GBM Group Centre Reported profit before tax 3,704 1,639 3,616 (182) 8,777 Tax expense (509) (661) (977) (531) (2,678) Reported profit after tax 3,195 978 2,639 (713) 6,099 less at
Slide 72: 4Q20 vs. 3Q20 equity drivers
Appendix Strategy Results 4Q20 vs. 3Q20 equity drivers Shareholders’ Tangible Equity, TNAV per share, Basic number of ordinary Equity, $bn $bn $ shares, million As at 30 September 2020 191.9 152.3 7.55 20,173 Profit attributable to: 0.8 1.0 0.05 — Ordinary shareholders98 0.6 1.0 0.05 — Other equity
Slide 73: FY20 vs. FY19 equity drivers
Appendix Strategy Results FY20 vs. FY19 equity drivers Shareholders’ Tangible Equity, TNAV per share, Basic number of ordinary Equity, $bn $bn $ shares, million As at 31 December 2019 184.0 144.1 7.13 20,206 Profit attributable to: 5.2 5.6 0.28 — Ordinary shareholders98 3.9 5.6 0.28 — Other equity h
Slide 74: Total shareholders' equity to CET1 capital
Appendix Strategy Results Total shareholders’ equity to CET1 capital Total equity to CET1 capital, as at 31 December 2020, $m Total equity to CET1 capital walk, $m 4Q20 4Q19 Total equity (per balance sheet) 204,995 192,668 Total equity 204,995 - Non-controlling interests (8,552) (8,713) Total shareh
Slide 75: Sectors particularly affected by Covid-19
Appendix Strategy Results Sectors particularly affected by Covid-19 At 31 December 2020 Oil and Gas99 Aviation101 Restaurants and leisure Retail CRR 1-3 CRR 4-6 CRR 7-8 Defaulted 4% 8% 2% 3% 8% 3% 3% 4% 30% 27% $23.0bn $10.5bn 47% $3.3bn $25.4bn 48% 62% 46% 46% 59% Drawn risk exposure100 by region,
Slide 76: Balance sheet
Appendix Strategy Results Balance sheet Customer lending, $bn Customer accounts, $bn 12% (2)% 2% (3)% 1,615 1,643 1,063 1,074 1 1,038 1,470 1 1 1 4Q20 customer lending decreased $25bn 1 1 337 355 (2%) vs. 4Q19 despite mortgage growth in WPB, 252 244 224 304 particularly in the UK and Hong Kong 445
Slide 77: Balance sheet – customer lending
Appendix Strategy Results Balance sheet – customer lending Adjusted customer lending (on a constant currency basis), $bn 4Q20 adjusted customer lending growth by global business and region, $bn 1,037 1,040 1,019 1,041 1,038 Growth since 3Q20 Growth since 3Q20 Hong Kong UK mortgages mortgages 1,063 1
Slide 78: Balance sheet – customer accounts
Appendix Strategy Results Balance sheet – customer accounts Adjusted customer accounts (on a constant currency basis), $bn 4Q20 adjusted customer accounts growth by global business and region, $bn 1,439 1,441 1,532 1,569 1,643 Growth since 3Q20 Growth since 3Q20 1,611 1,615 1,643 1,470 1,521 Europe
Slide 79: Balance sheet – deposits by type
Appendix Strategy Results Balance sheet – deposits by type Group customer accounts by type, $bn Group loans and deposits by currency Average balances At 31 December 2020 At 31 December 2020 1,170 Loans and advances to customers Customer accounts 989 1,025 1,054 1,026 969 USD Others Others 17% 17% US
Slide 80: Asset quality
Appendix Strategy Results Asset quality Gross loans and advances to Loans and advances to customers Stage 3 and impaired loans and Reported LICs/ECL customers of ‘Strong’ or ‘Good’ credit advances to customers By credit quality classification quality At 31 December 2020 783 IAS 39 IFRS 9 IAS 39 IFRS
Slide 81: UK RFB disclosures
Appendix Strategy Results UK RFB disclosures Total RFB lending to customers, £bn Personal At 31 December 2020 Residential mortgage balances, £bn Unsecured lending balances, £bn 101.5 102.4 104.2 108.1 110.7 Wholesale 94.7 96.0 97.7 99.4 67.4 8.2 8.8 7.7 7.3 7.4 5.9 £192bn 110.7 Personal 12/18 03/19
Slide 82: Glossary
Appendix Glossary AIEA Average interest earning assets LCR Liquidity coverage ratio ANP Annualised new business premiums LDR Loan-to-deposit ratio B2B2C Business to Business to Customer A portfolio of assets including securities investment conduits, asset-backed securities, trading Legacy credit por
Slide 83: Footnotes
Appendix Footnotes 1. A number of our clients were in need of financial relief as a result of the economic slowdown brought on by the Covid-19 Global Infrastructure Facility (World Bank), and Climate Policy Initiative under the auspices of the One Planet Lab pandemic, which we sought to address in a
Slide 84: Footnotes
Appendix Footnotes 59. International market share calculated using RfI Group - 20H1 International Banking Report. Mass affluent proportion refers to 79. Source: Bank of England Jade and Premier 80. Source: The Institute of Customer Service 60. Source: World Bank, 2019 81. For a number of the metrics
Slide 85: Disclaimer
Appendix Disclaimer Important notice The information, statements and opinions set out in this presentation and accompanying discussion (“this Presentation”) are for informational and reference purposes only and do not constitute a public offer for the purposes of any applicable law or an offer to se
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