Hsbc Holdings Plc · LSE:HSBA
Hsbc — Investor Day (April 2018)
94 slides from Hsbc's investor day presentation, Apr 11, 2018
Slide 1: HSBC Asia Seminar for Investors and Analysts Day 3 morning presentations
HSBC Asia Seminar for Investors and Analysts Day 3 morning presentations Date: 11 April 2018
Slide 2: Important notice and forward-looking statements
HSBC Asia Seminar for Investors and Analysts 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
Slide 3: Day 3 morning presentations
HSBC Asia Seminar for Investors and Analysts Day 3 morning presentations GB&M Asia 03 CMB Asia 21 Digital for corporates 34 Panel discussion and Q&A on collaboration 46 India 54 Australia 65 Appendix 81 Glossary 87
Slide 4: GB&M Asia
GB&M Asia 11 April 2018 Gordon French Head of Global Banking and Markets, Asia-Pacific
Slide 5: Agenda
GB&M Asia Agenda Introduction GB&M Asia positioning Client and business strategy Recap
Slide 6: GB&M Asia franchise – distinctive competitive advantages and well-positioned for growth
GB&M Asia: Introduction GB&M Asia franchise – distinctive competitive advantages and well- positioned for growth Distinctive competitive advantages… …and well-positioned for sustainable growth 2016 rank 2017 rank GLCM1 #1 #1 Diversified Transaction HSS2 #1 #1 Client Banking Base GTRF1 #1 #1 FX3 #1 #
Slide 7: Strategic actions – 2017 achievements
GB&M Asia: Introduction Strategic actions – 2017 achievements Group strategic GB&M Asia strategic actions focus areas Objectives Achievements • Grew GLCM revenue by 22% Y-o-Y1 Transaction Banking • Grow revenue • Grew HSS revenue by 12% Y-o-Y1 • Increase FIG revenue contribution • FIG client revenue
Slide 8: Asia – the engine of world growth
GB&M Asia: GB&M Asia positioning Asia – the engine of world growth Global real GDP1 Global trade2 USDtn USDtn 3% 83 CAGR% 40 CAGR% 7% 76 4% 33 30 15 8% Asia-Pacific 26 Asia-Pacific 12 4 4% 2 9% MENA 3 MENA 2 23 2% Europe 21 15 7% Europe 12 North America 19 21 2% North America 5 5 5% South America 6
Slide 9: Asia revenue is the fastest growing in the wholesale banking industry
GB&M Asia: GB&M Asia positioning Asia revenue is the fastest growing in the wholesale banking industry Wholesale banking industry revenue1 Asia Pacific Americas EMEA USDbn +3% +1% 558 CAGR% 499 506 179 4% 155 158 215 3% 193 196 164 2% 151 152 2016 2017E 2020E 1. Source: BCG, Wholesale Banking and Gl
Slide 10: GB&M Asia – strong financial performance with diversified product and geographic mix
GB&M Asia: GB&M Asia positioning GB&M Asia – strong financial performance with diversified product and geographic mix Strong financial performance1 Diversified revenue mix2 USDbn 2016 2017 Net operating income, 2017 Other +4% Net fee income 1% Revenue 22% 5.8 6.1 42% Net interest income 35% Net trad
Slide 11: Diversified client base – balanced mix of corporates and financial institutions
GB&M Asia: GB&M Asia positioning Diversified client base – balanced mix of corporates and financial institutions Asia booked client revenue1 mix, 2017 Corporate segments % of client revenue1 Consumer & Retail Product distribution2 from corporates2 Capital Goods & Automotives HSS Telecoms, Media & Te
Slide 12: Product breadth – top 3 ranked products drive c.90% of revenue
GB&M Asia: GB&M Asia positioning Product breadth – top 3 ranked products drive c.90% of revenue Revenue by product with market ranking (Asia ex-Japan) 100% c.60% League tables1 2017 rank FX 1 DCM 1 GLCM 1 HSS 1 GTRF 1 Rates 2 Syndicated lending 3 c.30% Credit 3 c.10% 2017 #1 #2 and #3 Outside top 3
Slide 13: International connectivity – our network drives c.70% of GB&M Asia client revenue
GB&M Asia: GB&M Asia positioning International connectivity – our network drives c.70% of GB&M Asia client revenue1 Asia booked client revenue1 by client region Asia booked GB&M cross-border client revenue1 by product 2017 2017 c.50% of GB&M Asia cross-border 1% client revenue1 is 3% 1% driven by Tr
Slide 14: Client-centric approach enables us to serve our clients with more products in more countries
GB&M Asia: Client and business strategy Client-centric approach enables us to serve our clients with more products in more countries Client-centric approach Asia-managed client revenue3 multiplier by type of products 2017, revenue multiplier vs. type of products >10x Securities Financing & Global Se
Slide 15: Leverage product strength in Hong Kong to serve our international clients
GB&M Asia: Client and business strategy Leverage product strength in Hong Kong to serve our international clients League table (Hong Kong)1 Growth initiatives 2016 rank 2017 rank 1 FIG: leverage Financial Institution client base to grow revenue M&A #6 #1 Financial sponsors: grow market ECM #5 #3
Slide 16: Corporate example – our international network enables us to build stronger client relationships
GB&M Asia: Client and business strategy Corporate example – our international network enables us to build stronger client relationships >40 31 30 17 years of countries countries countries banking with banking with GLCM with GTRF relationship relationships business business Debt financing in 2017 7 B
Slide 17: Corporate example – our broad product offering and international network
GB&M Asia: Client and business strategy Corporate example – our broad product offering and international network enables us to support clients in their expansion Product penetration Geographic penetration Type of products1 100% 8 4 Before 2014 Added 2014-16 2015 20172 Added 2017 (mainland China, Hon
Slide 18: FIG example – our client-centric approach and breadth of product capabilities
GB&M Asia: Client and business strategy FIG example – our client-centric approach and breadth of product capabilities enables us to meet basic to sophisticated client needs Client needs matched with product solutions Strategic analysis of funding and Sophisticated MLA for balance sheet CLSA’s next s
Slide 19: Transaction banking capabilities continue to drive revenue growth
GB&M Asia: Client and business strategy Transaction banking capabilities continue to drive revenue growth GB&M Asia – revenue performance1 Industry – revenue outlook2 Growth initiatives 2016 2017 2017E 2020E Focus Real Time Payment Systems, mobile payments and collection tools, solutions for liqui
Slide 20: Enhanced capabilities in China to accelerate revenue growth
GB&M Asia: Client and business strategy Enhanced capabilities in China to accelerate revenue growth League table HSBC Qianhai Securities – enhanced capabilities 2016 Market share 2017 Market share Current Future RQFII 1 52% 53% Underwriting and Sponsoring Financial Advisory4 Licence Brokerage
Slide 21: GB&M Asia franchise is well-positioned for growth
GB&M Asia: Conclusion GB&M Asia franchise is well-positioned for growth Well positioned for growth… 1 Proven financial performance Opportunities in Asia The engine of world 2 growth Diversified client base The fastest revenue 3 growth in the wholesale Leading product capabilities banking industr
Slide 22: CMB Asia
CMB Asia 11 April 2018 Stuart Tait Head of Commercial Banking, Asia Pacific
Slide 23: Agenda
CMB Asia Agenda CMB Asia overview Financial performance Key opportunities and enablers Summary
Slide 24: Serving breadth and depth of customers across Asia
CMB Asia: Overview Serving breadth and depth of customers across Asia CMB Asia customer segmentation CMB Asia participation model (USD#-#) Denotes customer turnover1 # Number of customers2 Global South Korea Banking China Japan Large Bangladesh Corporate c.1.9k3 Taiwan Macau (USD500m-5bn) India Hong
Slide 25: Each market plays a different but critical role
CMB Asia: Overview Each market plays a different but critical role Incountry Inbound Outbound Corporate revenue split between Focus areas Reported revenue domestic and cross-border2 2017, USDbn 2017, % of total corporate revenue Y-o-Y growth Support both international and Hong Kong domestic custom
Slide 26: Broad product suite available to CMB customers
CMB Asia: Overview Broad product suite available to CMB customers, with c.13% of CMB revenue generated from products from other global businesses Securities Services Global Liquidity and Cash Management (GLCM) Mid-Market Corporates offered the same treasury solutions as large Multi-Nationals Global
Slide 27: Delivering sustainable revenue and balance sheet growth
CMB Asia: Financial performance Delivering sustainable revenue and balance sheet growth Select financial performance Performance highlights Reported basis CMB Asia CMB Hong Kong USDbn 2016 2017 Y-o-Y 2016 2017 Y-o-Y Revenue growth of 12% in 2017, driven primarily by GLCM; demonstrates ability to c
Slide 28: Footprint enables capture of international connectivity opportunities
CMB Asia: Key opportunities and enablers Footprint enables capture of international connectivity opportunities 2016-17 growth in international Focus areas in capturing international connectivity client revenues1 Inter-and intra-region Greater Bay 15% 15% Further penetrate existing Develop integr
Slide 29: Supporting customers like VPower Group International Holdings Ltd in their expansion
CMB Asia: Case study Supporting customers like VPower Group International Holdings Ltd in their expansion As of June 2017, VPower operated 9 Distributive Company background Bangladesh Power Generation Stations across Southeast Asia’s leading owner and operator of distributed power Hong Kong Indone
Slide 30: Market-leading GTRF capabilities well-positioned to capture further trade growth
CMB Asia: Key opportunities and enablers Market-leading GTRF capabilities well-positioned to capture further trade growth and to adapt to evolving market dynamics Initiatives in place to maintain market-leading Trade volume in Asia is expected to grow further1 position Merchandise trade, USDtn Impor
Slide 31: Transaction banking a core value proposition for our customers
CMB Asia: Key opportunities and enablers Transaction banking a core value proposition for our customers and a key revenue contributor Continued progress to further drive penetration GTRF and GLCM key contributors to CMB Asia revenue across both products Represents c.55% of CMB Asia revenue Initiativ
Slide 32: Business Banking fundamental to capturing Asian growth opportunities
CMB Asia: Key opportunities and enablers Business Banking (BB) fundamental to capturing Asian growth opportunities Significant opportunity in other markets to Improving capabilities to protect position in Hong Kong replicate success in Hong Kong and further capture scale in other markets 2017 Busine
Slide 33: Driving improvements in customer experience through digital investments and innovation
CMB Asia: Key opportunities and enablers Driving improvements in customer experience and operational efficiency through digital investments and innovation Overview Example: Fast paced delivery of Digital Business Banking in Hong Kong during 2017 Direct bank feed to Digital investments and innova
Slide 34: Key takeaways: focused on delivering quality and sustainable growth
CMB Asia: Summary Key takeaways: focused on delivering quality and sustainable growth Well-positioned to capture Asia growth opportunities CMB Asia highlights 1 Leverage our footprint and customer base to capture trade and financial connectivity opportunities Customer centric model with a deep cus
Slide 35: Digital for Corporates
Digital for Corporates 11 April 2018 Niall Cameron Head of Corporate & Institutional Digital
Slide 36: Why digital is important
Digital for corporates Why digital is important Increased revenue Customer USD2.3bn Business Digital investment between satisfaction efficiencies 2015 and 2017 Cost savings 35
Slide 37: Corporate and Institutional digital
Digital for corporates Corporate and Institutional digital Set up in July 2016 Team covers Commercial Banking and Global Banking and Markets Our Programmes Digital Transformation for Corporates (DTC) Digital for Global Markets Best SME Banking Services Award February 2018: ET Net FinTech Awards Best
Slide 38: Our digital principles
Digital for corporates Our digital principles We are client- We iterate at We are future- led pace proofing We are efficient We seek out because simplicity we collaborate 37
Slide 39: Our 2017 footprint
Digital for corporates Our 2017 footprint 128,000 USD200bn global authorised 53 clients USD9tn of since 2011 transactions each year 48 87 million instructions each month USD5tn of transactions 67 each year 38
Slide 40: Digital for corporates - video
Digital for corporates Digital for corporates - video 39
Slide 41: Growth journey
Digital for corporates Growth journey 2017 +17% customers 2017 +25% customers 2017 +118% overall $ authorized +25% users +35% files processed per +364% payments +35% transaction month made volumes +41% +215% +38% transaction instructions per downloads of values month app +29% transaction +150% value
Slide 42: Key DTC initiatives
Digital for corporates Key DTC1 initiatives HSBCnet New UI Move Money HSBCnet Track Payments Import Documentary Credits HSBC GTRF Trade Transaction Tracker End To End Visibility Tracker Get Rate & Quick Quote ConnectTransformation 1. Digital transformation for Corporates 41
Slide 43: Client innovation
Digital for corporates Client innovation Client innovation Pivot to revenues Podium Alerts MyDeal GoldenSource 42
Slide 44: Digital information
Digital for corporates Digital information Internal Internal & External External Digital Marketplace net Plus DigitalDownload 43
Slide 45: FinTech partnerships
Digital for corporates FinTech partnerships Heckyl Tradeshift Silobreaker Kyriba 44
Slide 46: The future
Digital for corporates In summary Combining the strength of digital with the power of our Catalysing transformation global network Expertise – we have the Competitive advantage – knowledge, skills and being first experience to create and deliver more The future 45
Slide 47: Panel discussion and Q&A on collaboration
Panel discussion and Q&A on collaboration 11th April 2018 Matthew Lobner Head of International and Head of Strategy and Planning, Asia-Pacific Gordon French Head of Global Banking and Markets, Asia-Pacific Kevin Martin Head of Retail Banking and Wealth Management, Asia-Pacific Siew Meng Tan Head of
Slide 48: Collaboration remains core to our strategy
Panel discussion - Collaboration Collaboration remains core to our strategy What is collaboration? Bringing HSBC’s end-to-end franchise, across four global business to our customers Benefits of RBWM provides payroll and banking GB&M helps CMB clients with FX, collaboration services to employees of C
Slide 49: Material contributor to revenue – c.USD6.4bn
Panel discussion - Collaboration Material contributor to revenue – c.USD6.4bn Revenue synergies, Asia, USDbn Key observations Note: Revenue from collaboration captured as “revenue synergies” 18% 6.4 Revenue generated from Revenue synergies booked in separately managed operations Asia accounts for
Slide 50: Collaboration: Bringing this to life through a client example
Panel discussion - Collaboration Collaboration: Bringing this to life through a client example CLIENT EXAMPLE Products / services Evolution of relationship provided by HSBC Client overview over past 12 years CMB: Agile Group – Integrated Credit & Lending: Offshore & onshore loan conglomerate •
Slide 51: Cross-business synergies - GB&M and CMB
Panel discussion - Collaboration Cross-business synergies - GB&M and CMB GB&M revenue synergies1, Asia CMB revenue synergies3, Asia USDbn USDbn 16% 2.3 2.0 In-business 1.0 0.9 5% synergies (HSS) 0.9 1.0 GLCM, GTRF solutions 1.3 GB&M products to GB&M clients 1.1 to CMB clients 2016 2017 2016 2017 Key
Slide 52: Cross-business synergies - RBWM perspectives
Panel discussion - Collaboration Cross-business synergies - RBWM perspectives RBWM revenue synergies, Asia GM products for RBWM investment solutions USDbn What do we offer? Investment products and execution via GM (spanning Equities, FX, 25% Structured Products) 2.9 Examples of collaboration? Jo
Slide 53: Cross-business synergies: GPB perspectives
Panel discussion - Collaboration Cross-business synergies: GPB perspectives GPB revenue synergies1, Asia 68% (USD5.2bn) of Net New Money (NNM) in GPB Asia from referrals USDbn % of total GPB NNM from referrals by Global business, Asia, 2017 68% 32% 20% 0.23 30% 17% 0.17 GB&M CMB RBWM Total Referrals
Slide 54: Summary: Collaboration remains a key growth priority
Panel discussion - Collaboration Summary: Collaboration remains a key growth priority Sizeable contributor to HSBC Distinctive capabilities to Asia Revenues deliver collaboration Key priorities Relationship-led approach, Seamless customer Revenue synergies in Asia starting from client needs expe
Slide 55: India
India 11 April 2018 Hitendra Dave Acting Chief Executive and Head of Global Banking and Markets, India
Slide 56: Key messages
India: Introduction Key messages 1 Stable macro story 2 HSBC India’s heritage and business presence 3 Material opportunity for HSBC in the market 4 Strategy for growth in India
Slide 57: Stable macro story
India: Macroeconomic update Stable macro story Key Indicators1 GDP USD 2.26 tn External debt / GDP 21% FX reserves / GDP 19% Fiscal deficit / GDP 3.50% Exports (2016-17) USD 275 bn Remittances + Net service exports USD 112 bn Current account deficit / GDP 1 – 2% Local debt / GDP 63%
Slide 58: Impact of macro stability
India: Macroeconomic update Impact of macro stability Robust growth in FDI1 – 2017 highest across EMs Policy support provided USDbn 1 FDI and portfolio investor reforms 40 43 36 2 Digital JAM trinity – Jandhan, Aadhar and Mobile 31 24 22 3 ‘Make in India’ initiative 4 Modern bankruptcy law FY13
Slide 59: 165 years of presence
India: Introduction to HSBC 165 years of presence Full suite coverage4; 26 branches across 14 cities Rich heritage 26% of new Foreign Portfolio Investors (FPIs) registered in 2017 7% of India’s FX is traded by HSBC (SPOT FCY–INR) Asia’s 2nd branch outside Hong Kong & Shanghai 2018 - #1 Trade Finan
Slide 60: HSBC India - a consistent contributor to Group
India: Financials HSBC India - a consistent contributor to Group c.4-5% consistent PBT contribution to Group1 Contribution across metrics PBT contribution to Group 5% 4% 4% 4% 3% 4% 4% 10% 5% India Group1 916 813 809 679 743 653 700 606 374 LICs / (0.2)% 0.2% Loans % 2009 2010 2011 2012 2013 2014 20
Slide 61: Peer comparison
India: Financials Peer comparison Profit before tax Commentary USDm Diversified base of multinational clients – 954 891 Europe, US and Asia 615 592 523 Opportunity to leverage retail franchise 173 Risk management reflected by low and FY16 FY17 FY16 FY17 FY16 FY17 stable LICs (Gross NPAs) Bank
Slide 62: Performance metrics
India: Financials Performance metrics Key financials1 USDm 2017 2016 Balances composition2, December 2017 2017 Loans and advances to Customer accounts Growth % customers (net) 2,397 Revenue 18% 20% 2,026 25% 916 Profit 23% before tax 743 80% 75% Highlights PBT growth across all entities 13,228 Cus
Slide 63: Opportunity for HSBC in India
India: Opportunity and Strategy Opportunity for HSBC in India Corporate Retail FDI tailwind Rapid growth in affluent Indian population Outbound India Inbound investments by Non Resident Indians Indian capital markets Corporate employee proposition Growth of MNCs Underleveraged consum
Slide 64: India strategy: maintain wholesale banking leadership, and grow retail franchise
India: Opportunity and Strategy India strategy: maintain wholesale banking leadership, and grow retail franchise Objective Drivers Strategy 1 Grow key international corridors: US, UK, China and Germany Increasing FDI and long-term investor interest Leadership in Maintain leadership in transact
Slide 65: Key messages
India: Conclusion Key messages 1 Stable macro story 2 HSBC India’s heritage and business presence 3 Material opportunity for HSBC in the market 4 Strategy for growth in India 64
Slide 66: Australia
Australia 11 April 2018 Martin Tricaud Chief Executive Officer, Australia
Slide 67: Agenda
Australia Agenda Key messages Overview of the operating environment HSBC position in Australia HSBC Australia financials HSBC strategic priorities 66
Slide 68: Key messages
Australia: Key messages Key messages 1 Strong macroeconomic fundamentals. 26 years of continued GDP growth and robust demographic growth1 2 Australia’s strong international connectivity positions HSBC well for future growth. 71% of Australian exports go to Asia and half of Australia’s population gro
Slide 69: Macroeconomic highlights
Australia: Overview of the operating environment Macroeconomic highlights One of the world’s longest GDP booms Australia has just recorded 26 years of continuous GDP 3.9 growth without a technical recession, one of the world’s 3.2 longest booms 2.7 2.6 2.6 2.8 Much of that has been driven by Aus
Slide 70: Asian countries account for 71% of Australia's merchandise trade
Australia: Overview of the operating environment - macroeconomic trends Asian countries account for 71% of Australia’s merchandise trade; China is lead trade partner, accounting for 28% of overall trade % of region total Australia total merchandise trade (exports+imports) by key corridors, 2016 % of
Slide 71: Australia's banking sector is one of the most attractive amongst developed countries in Asia
Australia: Overview of the operating environment Australia’s banking sector is one of the most attractive amongst the developed countries in Asia 2016 banking ROEs in developed markets in Asia1 Commentary Australia’s banking sector is one of the most mature and competitive in Asia, but 15.2% at th
Slide 72: HSBC in Australia: Key facts and figures
Australia: HSBC’s position in Australia HSBC in Australia Key facts and figures 1965 HSBC started 40 HSBC branches and offices across Australia Brisbane Northern operations in Territory Australia Queensland Western Australia 1986 Universal Banking Model South Australia Sydney New South HSBC serves b
Slide 73: Competitive landscape remains dominated by domestic banks; HSBC is one of the largest foreign banks
Australia: HSBC’s position in Australia Competitive landscape remains dominated by domestic banks; HSBC is one of the largest foreign banks Australia banking industry market share Commentary Challenges faced by competitors 2017 Slowing demand for housing credit (highly leveraged households, tighte
Slide 74: HSBC has consolidated its position as the fifth commercial bank
Australia: HSBC’s position in Australia HSBC has consolidated its position as the “fifth commercial bank” as well as being recognised as the “leading international bank” in Australia1 Selected achievements of the affluent market has a DCM house between 2016- 2017 for international bonds Retail relat
Slide 75: Financial performance
Australia: Financial performance Financial performance1 Key financials USDm 2017 financials by global business 2017 2016 2017 Growth 6% 37% 28% 30% 892 8% Adjusted 3% revenue 868 Revenue PBT Loans 45% 50% 21% 30% 20% 25% Adjusted 409 PBT 380 8% RBWM CMB GB&M Corp Centre Achievements Loans and 26,852
Slide 76: Customer lending / credit quality
Australia: Financial performance Customer lending / credit quality Customer lending1 90 days past due / Gross Loans3 USDm USDm 26,852 0.5 21,387 0.4 Loans and 0.3 advances to customers 0.2 0.1 0.0 2016 2017 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 Market 0.9% 1.0% HSBC Major Domestic Peer 3 share 13,
Slide 77: Strategic priorities
Australia: Strategic priorities Strategic priorities 1 RBWM: become the leading bank in Australia for affluent and mass affluent customers, whilst continuing to grow PBT and assets Accelerate market share growth by increasing wallet share Invest in distribution to grow assets 2 CMB: grow market
Slide 78: HSBC Australia RBWM: leading bank for affluent and mass affluent customers
Australia: Strategic priorities HSBC Australia RBWM: To be the leading bank in Australia for affluent and mass affluent customers, whilst continuing to grow PBT and assets Current position / Why are we here? Strategic initiatives RBWM in Australia is an important contributor to the Group Expanding
Slide 79: HSBC Australia CMB: Investing in coverage model to drive asset and customer growth
Australia: Strategic priorities HSBC Australia CMB: Investing in coverage model to drive asset and customer growth and improve wallet share Current position / Why are we here? Strategic initiatives Business is on a growth cycle facilitated by Group investment Growth DEC15 to DEC17: Expand our co
Slide 80: HSBC Australia GB&M: Strong growth in assets whilst improving efficiency
Australia: Strategic priorities HSBC Australia GB&M: Strong growth in assets whilst improving efficiency and profitability, through investment in front-line resources Current Position / Why are we here? Strategic Initiatives HSBC Australia’s Global Banking business is embarking on a growth cycle
Slide 81: Key messages
Australia: Key messages Key messages 1 Strong macroeconomic fundamentals. 26 years of continued GDP growth and robust demographic growth1 2 Australia’s strong international connectivity positions HSBC well for future growth. 71% of Australian exports go to Asia and half of Australia’s population gro
Slide 82: Appendix
Appendix
Slide 83: GB&M Asia selected financial performance
Appendix: GB&M GB&M Asia selected financial performance USDm 2017 2016 Adjusted revenue 6,082 5,837 Adjusted PBT 3,389 3,217 Significant items & foreign currency translation (254) (6) Reported PBT 3,135 3,211 82
Slide 84: India macro - Real GDP at market prices
Appendix: India India macro - Real GDP at market prices Real GDP at market prices (% change)1 10 9 8.8 8 8 7.5 7.4 7.1 7 6.5 6 5 4 3 2 1 0 Avg 5 year pre financial Avg 5 year post financial 2014-15 2015-16 2016-17 2017-18 Est. crisis (03-08) crisis (09-14) 1. Source: Bloomberg 83
Slide 85: India macro - Gross fiscal deficit
Appendix: India India macro - Gross fiscal deficit Gross Fiscal Deficit (as a % of GDP)1 7 5.9 6 4.9 5 4.5 4.1 3.9 4 3.5 3.5 3.3 3 2 1 0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 (Est) 2018-19 (Est) 1. Source: Bloomberg 84
Slide 86: India macro – Current account deficit / GDP
Appendix: India India macro – Current account deficit / GDP Current Account Balances / GDP (%)1 Avg 5 year pre financial Avg 5 year post crisis (03-08) financial crisis (09-14) 2014-15 2015-16 2016-17 2017-18 Est. 0 -0.5 -0.3 -0.7 -1 -1.1 -1.5 -1.3 -2 -1.9 -2.5 -3 -3.5 -3.3 1. Source: Bloomberg 85
Slide 87: Reconciliation of financials - Australia
Appendix: Australia Reconciliation of financials - Australia USDm 2017 2016 Reported revenue 852 842 Significant items & foreign currency translation (40) (26) Adjusted revenue 892 868 Reported operating expenses (460) (414) Significant items & foreign currency translation (4) 12 Adjusted operating
Slide 88: Glossary
Glossary
Slide 89: Glossary of terms
Glossary Glossary of terms Term Definition Term Definition Ratio of loans and advances to customers to A/D ratio AUM Assets under management customer accounts ADB Asian Development Bank BARC Barclays Bank PLC Adjusted performance excludes the year-on- year effects of foreign currency translation BCG
Slide 90: Glossary of terms
Glossary Glossary of terms Term Definition Term Definition Client revenue data sourced HSBC internal 1.Estimated Market share is calculated by client MI, which differs from reported revenue. taking HSS’s Asia Pacific AUC (provided by Client revenue Excludes synergies with other global HSS) divided b
Slide 91: Glossary of terms
Glossary Glossary of terms Term Definition Term Definition GB Global Banking Industrial and Commercial Bank of China IDBC Limited GB&M Global Banking and Markets IMF International Monetary Fund GBA Greater Bay Area Client revenue booked in Country A where the Inbound revenue primary relationship is
Slide 92: Glossary of terms
Glossary Glossary of terms Term Definition Term Definition MENA Middle East and North Africa QFII Qualified Foreign Institutional Investor MLA Mandated Lead Arranger RBWM Retail Banking and Wealth Management MNCs Multi-national corporations RCF Revolving Credit Facility MS Morgan Stanley Reported vi
Slide 93: Glossary of terms
Glossary Glossary of terms Term Definition TLA Term Loan A tn trillion United Nations Conference on Trade and UNCTAD Development USD US Dollar VNB Value of new business Y-o-Y Year-on-year YTD Year-to-Date 92
Slide 94: Slide 94