Hsbc Holdings Plc · LSE:HSBA
Hsbc — Q1 2015 Earnings Presentation
17 slides from Hsbc's earnings presentation, May 5, 2015
Slide 1: First Quarter 2015 Earnings Release: Audio Webcast and Conference Call
5 May 2015 HSBC HOLDINGS PLC FIRST QUARTER 2015 EARNINGS RELEASE AUDIO WEBCAST AND CONFERENCE CALL There will be an audio webcast presentation and conference call today for investors and analysts. The speakers will be: Stuart Gulliver, Group Chief Executive; and Iain Mackay, Group Finance Direct
Slide 2: HSBC Holdings plc 1Q 2015 Results
HSBC Holdings plc 1Q 2015 Results Presentation to Investors and Analysts
Slide 3: 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 4: Key messages
Key messages Highlights Reported and Adjusted2 PBT (USDm) 1Q15 reported PBT of USD7,059m up 4% compared Adjusted2 PBT with 1Q14. increased by Increase in adjusted revenue1 of USD661m or 4% USD349m and an increase in adjusted2 PBT of USD349m or 5% 6,785 7,059 Financial Adjusted2 revenue and PBT
Slide 5: 1Q 2015 results Financial highlights
1Q 2015 results Financial highlights1 Summary financial highlights, USDbn Better/(worse) 1Q14 4Q14 1Q15 1Q15 vs 4Q14 1Q15 vs 1Q14 Reported PBT 6.8 1.7 7.1 5.4 0.3 Adjusted2 PBT 6.5 2.9 6.9 4.0 0.4 Key ratios, % 1Q14 4Q14 1Q15 Target (if applicable) Return on average ordinary shareholders’ equity3 11
Slide 6: Profit before tax analysis
Profit before tax analysis Increased adjusted1 PBT in 3 out of 4 global businesses Reported and Adjusted1 PBT (USDm) Adjusted1 PBT Analysis 1Q15 vs 1Q14 Adjusted1 PBT by region 1Q15 vs 1Q14 (USDm) (USDm) Adjusted1 PBT Adverse Favourable Adverse Favourable increased by Europe 16% USD349m 241 7,059 Re
Slide 7: Revenue analysis
Revenue analysis Higher adjusted revenue1 in GB&M, CMB and Principal RBWM Reported and Adjusted revenue1 1Q15 vs 1Q14 Adjusted revenue1 by 1Q15 vs 1Q14 Adjusted revenue1 by (USDm) global business (USDm) global business (USDm) Adjusted Adverse Favourable Adverse Favourable revenue1 increased by Perso
Slide 8: Balance sheet analysis
Balance sheet analysis Continued growth in customer lending Loans and advances to customers1 (USDbn) 1Q15 vs 4Q14 Loans and advances USD16bn to customers1 excl. red-inked increase balances2 (USDbn) Adverse Favourable 951 965 939 956 924 Principal RBWM 1% 5 89 95 52 53 RBWM US 83 (1) (4)% run-off por
Slide 9: Operating expenses analysis
Operating expenses analysis Higher staff costs and increased marketing spend Reported and adjusted1 operating expenses (USDm) 1Q15 vs 1Q14 Adjusted1 operating expenses Adjusted1 operating By global business (USDm) expenses increased by USD483m Adverse Favourable 11,892 Principal RBWM (220) (7)% 11,0
Slide 10: Loan impairment charges
Loan impairment charges1 Lower LICs compared with 1Q14, primarily in North America and Europe Loan impairment charges (USDm) Loan impairment charges / average gross loans 2,500 0.48% and advances to customers1,2 (%) 0.31% 0.38% 0.26% 0.24% Geographical regions 2,000 % 1Q14 1Q15 Europe4 0.10 0.01 Asi
Slide 11: Profitability: Drivers of returns
Profitability Drivers of returns Group RoE1 Group RoRWA2, % Reported 0.2 2.3 2.4 (0.9) 1Q14 1Q15 1.2 Adjusted3 11.7 (0.3) 11.5 (0.3) (0.1) 2.4 2.3 1Q14 1Q15 Adjusted ex run-off4 1Q14 Currency Adjusted Adjusted LICs Adjusted Dividend to Other 1Q15 translation revenue operating preference 2.5 2.4 and
Slide 12: Capital adequacy
Capital adequacy Movement in common equity tier 1 capital (USDbn) Common equity tier 1 ratio movement (%) CRD IV End point1 0.1 At 31 December 2014 136.0 (0.2) Capital generation 4.1 Profit for the period (including regulatory adjustments) 4.6 (0.1) 0.4 of which USD0.4bn gain on the partial sale of
Slide 13: Appendix
Appendix HSBC «> |
Slide 14: Currency translations and significant items
Appendix Currency translations and significant items USDm 1Q14 4Q14 1Q15 Currency translation 336 (22) - Significant items: Revenue (Loss) / gain on sale of several tranches of real estate secured accounts in the US (30) 92 - Gain on sale arising from HSBC Latin America Holdings UK Limited’s disposa
Slide 15: Consolidated Income Statement
Appendix Consolidated Income Statement1 USDm 1Q14 4Q14 1Q15 Net interest income 8,721 8,547 8,274 Net fee income 4,046 3,718 3,684 Net trading income 2,280 1,190 2,583 Net income from financial instruments designated at fair value 508 557 1,596 Gains less losses from financial investments 184 420 64
Slide 16: Consolidated Balance Sheet
Appendix Consolidated Balance Sheet1 USDm 31 Dec 2014 31 Mar 2015 Assets Cash and balances at central banks 129,957 133,025 Trading assets 304,193 334,261 Financial assets designated at fair value 29,037 28,181 Derivatives 345,008 378,815 Loans and advances to banks 112,149 116,267 Loans and advance
Slide 17: Cover images: HSBC – then and now
Cover images: HSBC – then and now It is 150 years since HSBC was founded in Hong Kong to finance trade between Asia and Europe. Much has changed since then, as our cover photos demonstrate. The left photo shows Hong Kong harbour, with the HSBC office (extreme left) a few years after it was establish