HSBC Holdings PLC · LSE:HSBA
HSBC — Debt Investor Presentation (February 2016)
23 slides from HSBC's debt investor presentation, February 2016
Slide 1: HSBC Holdings plc - Fixed Income Update
February 2016 HSBC Holdings plc - Fixed Income Update
Slide 2: Important notice and forward-looking statements
Presentation to Fixed Income Investors 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
Slide 3: Contents
Presentation to Fixed Income Investors Contents HSBC Group 2015 Performance 4 HSBC’s Approach to Debt Issuance 12 HSBC’s Capital Structure 16 In Summary 19 Appendix 21 3
Slide 4: Group 2015 Performance
HSBC Group 2015 Performance HSBC >
Slide 5: Our highlights
HSBC Group 2015 Performance Our highlights 2015 Full Year ‒ Reported PBT up 1%: net favourable movement in significant items ‒ Adjusted PBT fell 7%: 2015 ‒ Higher revenue of $0.5bn (1%) from growth in client-facing GB&M (7%), CMB (3%) Reported PBT Financial and Principal RBWM (2%) (2014: $18.7bn) Pe
Slide 6: 2015 Key metrics
HSBC Group 2015 Performance 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.
Slide 7: 2015 Profit before tax performance
HSBC Group 2015 Performance 2015 Profit before tax performance Progress on revenue and LICs remain at low levels; investments in growth, regulatory programmes and compliance and higher bank levy drive costs Full year PBT analysis Adjusted PBT by account line PBT by global business, $m 2014 2015 vs.
Slide 8: Loan impairment charges and other credit risk provisions
HSBC Group 2015 Performance Loan impairment charges and other credit risk provisions LICs remain at low levels; diversified portfolio LICs progress Reported LICs and coverage %: Loan impairments remain low 2015 gross loans and advances: Diversified lending portfolio HSBC Finance Corporation ($bn) Wh
Slide 9: Capital adequacy
HSBC Group 2015 Performance Capital adequacy Strong capital base: common equity tier 1 ratio – 11.9% Quarterly CET1 ratio1 end-point basis progression, % CET1 ratio1 movement % 4Q15 movement in common equity tier 1 ratio 11.9 11.8 11.9 11.8 0.1 11.6 (0.1) 0.4 (0.3) 11.2 11.1 30 Sep 2015 Loss for the
Slide 10: Conservative Balance Sheet
HSBC Group 2015 Performance Conservative Balance Sheet1 Mainly deposit funded with an A/D ratio of 72% Assets Liabilities and equity USDm USDm 2.4tn 2.4tn 224 Trading Assets 9% Other6,7 248 10% 288 Derivatives 12% Derivatives 281 12% 116 Reverse Repos3,4 5% Repos 80 3% Trading liabilities6 111 5% 37
Slide 11: Key Credit Metrics
HSBC Group 2015 Performance Key Credit Metrics 2015 demonstrated the fundamental strength of our business Targeted investment, prudent lending and our diversified, universal business model helped us achieve revenue growth in a tough market In total we generated $11.3bn of capital from profit i
Slide 12: HSBC's Approach to Debt Issuance
HSBC’s Approach to Debt Issuance
Slide 13: HSBC's Approach to TLAC
HSBC’s Approach to Debt Issuance HSBC’s Approach to TLAC In 2016 HSBC Holdings plc will be the sole issuer of external TLAC debt for the Group Issuing Entity TLAC debt will be downstreamed in a form compliant with local regulations Once regulatory rules have been clarified and the Group's reso
Slide 14: HSBC's Approach to TLAC (continued)
HSBC’s Approach to Debt Issuance HSBC’s Approach to TLAC (continued) HSBC plans to issue approximately USD60 - 80bn1 of TLAC debt between 2016 and 2018 HSBC has approximately USD51bn2 of senior funding securities that will mature by year Volume end 2018, and approximately USD76bn2 that will matu
Slide 15: HSBC Maturities and issuance of long-term debt since 2012
HSBC Capital and Senior Funding Strategy HSBC Maturities and issuance of long-term debt since 2012 HSBC Group Debt Redemption profile1,2 USDbn 35 2012-15: USD25bn net redemptions3 2016-21: USD76bn senior funding redemptions 30 Non Core Capital Issued 25 Senior Funding Issued Non-Core Capital Redempt
Slide 16: HSBC's Capital Structure
HSBC’s Capital Structure HSBC >
Slide 17: Group Capital Requirements to 2020
HSBC’s Capital Structure – Maximum Distributable Amount (MDA) Requirements Group Capital Requirements to 2020 Required common equity tier 1 ratio1 % of RWA CET1 CRD IV minimum Pillar 2A (56% CET1) 3 4 Combined Buffer (CCB+G-SII+CCyB) PRA CET1 guidance/ CRDIV min plus combined buffer 5 14% Buffer to
Slide 18: Progressing to end state Group capital structure
HSBC’s Capital Structure – Total Capital Requirements Progressing to end state Group capital structure Evolution of Group capital structure in % of RWA1 TLAC issuance CET1 AT1 T2 TLAC debt > 1 Year Based on TLAC finalised principles from November TLAC ratio + buffers 2015, HSBC's TLAC requirement
Slide 19: In Summary
In Summary HSBC >
Slide 20: Summary Investment case
In Summary Summary Investment case Unrivalled global presence, with access to more than 90% of global GDP Distinctive advantages Universal banking model with four global businesses which serve the full range of banking customers Develop our international network of businesses to support connec
Slide 21: Appendix
Appendix HSBC >
Slide 22: Simplified structure chart Principal entities
Appendix – Organisation Structure Simplified structure chart Principal entities1 Holding company HSBC Holdings plc Intermediate holding company UK Operating company Associate HSBC HSBC HSBC Private HSBC HSBC Latin America Overseas HSBC Bank HSBC Banking HSBC Bank 94% Latin Holdings Holdings Holdings
Slide 23: Temporary cover
The view from HSBC Building, 8 Century Avenue, Pudong, Shanghai The view from HSBC Main Building, 1 Queen’s Road Central, Hong Kong SAR The view from HSBC Group Head Office, 8 Canada Square, London Temporary cover Cover images: internationalisation of the renminbi The images show the views from HSBC
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