Hsbc Holdings Plc · LSE:HSBA
Hsbc — Debt Investor Presentation (July 2025)
40 slides from Hsbc's debt investor presentation, Jul 30, 2025
Slide 1: HSBC Holdings plc 2025 results: Fixed income investor presentation
HSBC Holdings plc 2025 results Fixed income investor presentation
Slide 2: Results & strategy
Results & strategy
Slide 3: A diversified and capital-generative business
Results and strategy A diversified and capital-generative business 1H25 revenue Balance sheet & issuance Appendix & Balance sheet strength $34.1bn revenue / $35.4bn excl. notable items Corporate Centre Strong 1H25 IWPB business Hong Kong business capital Highly liquid; $3 5.4bn well funded 14.6% | 3
Slide 4: Navigating this period of economic uncertainty from a position of strength
Results and strategy Balance sheet & issuance Appendix = Navigating this period of economic uncertainty from a position of strength Putting the changing needs of our customers at the heart of everything we do Hallmark financial strength Unique deposit franchise; deep customer relationships * Strong
Slide 5: Simple and agile — organisational simplification with discipline and at pace
Results and strategy Balance sheet & issuance Appendix & Simple and agile — focused on delivering organisational simplification with discipline and at pace We are on track to deliver ~$1.5bn cost saves by YE26* February 2025 announcement: c.8% of payroll cost saves, to be achieved by YE26*. Immateri
Slide 6: Simple and agile — exit of non-strategic activities
Results and strategy Balance sheet & issuance Simple and agile — exit of non-strategic activities We are progressing at pace to exit non-strategic and low return activities February 2025 announcement: Over the medium term, we aim to exit non-strategic activities which have costs of ~$1.5bn Costs to
Slide 7: 2025 summary: $9.2bn PBT excl. notable items
2025 summary: $9.2bn PBT excl. notable items Income statement ¢@ $17.7bn revenue excl. notables +5% YoY, driven by fee and other income $6.3bn PBT / $9.2bn excl. notable items, stable YoY @ 17.7% RoTE excl. notable items in 2025 / 18.2% YTD, +1.2ppts YoY Notable items @ $(2.8)bn, including: $(2.1)bn
Slide 8: Revenue
Results and strategy Balance sheet & issuance Appendix & Revenue +5% YoY growth driven by fee and other income* $bn 2024 2025 A @ +$0.5bn ‘Other’ includes: Banking NI 11.0 10.7 (0.2) = +$0.1bn IB, Debt and Equity markets = +$0.1bn Markets Treasury income Fee and other income 5.9 6.9 1.0 = +$0.2bn no
Slide 9: Banking NII
Banking NII Continue to expect ~$42bn for FY25 Banking NIl, $bn 11.1 11.0 10.6 10.9 10.7 2024 3024 4024 1025 2025 Hi Argentina Ml Notable items* * 3024 and 4024 included notable items related to the early redemption of legacy securities Results and strategy Balance sheet & issuance Appendix & ¢@ $(0
Slide 10: Wholesale Transaction Banking
Results and strategy Balance sheet & issuance Appendix & Wholesale Transaction Banking Growth across all products Fee and other income, $bn +5% 29 1 vs. 2024 * +7% FX, capturing elevated client activity due to 27 . 2.8 - market volatility and geopolitical events 2.7 . 2.6 GTS +4% (Trade) * 44% GTS,
Slide 11: Wealth
Results and strategy Balance sheet & issuance Appendix & Wealth +22% YoY, with broad-based growth across products and markets Fee and other income, $bn ¢@ Strong performance as we captured high levels of client activity during the quarter +22% 7 | 2.3 2.3 vs. 2024 Executing at pace to deliver our st
Slide 12: Gross customer lending
Gross customer lending Personal loan book, $bn At 30 Jun 2025 Other Credit cards a Other secured personal lending Mortgages Retail mortgage average LTVs (portfolio, indexed FY24) UK: 53% HK: 63% New lending: 69% New lending: 67% * Other’ comprises 14 individual sectors Results and strategy Balance s
Slide 13: Credit performance
Results and strategy Balance sheet & issuance Appendix & Credit performance Revising FY25 guidance to ~(40)bps* ECL charge trend, $bn 1H25: $(1.9)bn ECL charge / (40)bps -—.__—_ . . ¢@ $(1.1)bn 2025 ECL charge includes: (40}ops (37)bps (48)bps = $(0.4)bn Hong Kong CRE, reflecting: $(0.1)bn (13)bps —
Slide 14: Asset quality
Results and strategy Balance sheet & issuance Appendix &»> Asset quality Gross loans to customers by credit quality classification trend, $bn > Stage 3 loans to customers > 936 950 940 992 22.6 23.6 HH impaired MM Sub-standard Hl Satisfactory MB Good HM Strong 2.0 2022 2023 2024 1H25 2022 2023 2024
Slide 15: Costs
Costs On track for FY25 cost guidance; now expect ~$0.4bn of simplification savings in FY25 P&L Target basis costs, $bn +3% 1 0.5 1H24 Inflation, Simplification 1H25 investment savings &other from our re- organisation Refer to 2025 Presentation to investors and analysts - slide 27 for a reconciliati
Slide 16: Customer loans and deposits
Customer loans and deposits +$83bn deposits vs. 2024 / +5% incl. held-for-sale balances Loans, $bn | 1025 HK UK CIB IWPB 2025 QoQ: ¢@ +$6bn UK driven by commercial banking in targeted sectors, as well as growth in mortgages ¢* +$2bn IWPB driven by wealth lending in the Private Bank, notably in Hong
Slide 17: Targets and guidance
Results and strategy Balance sheet & issuance Appendix & Targets and guidance Target Mid-teens RoTE in each of 2025 to 2027, excluding notable items Banking NII = Around $42bn (market dependent) ECL charge = ~(40) bps! + Revised guidance FY25 guidance Costs Growth of ~3%, on a target basis? Dividend
Slide 18: Balance sheet & issuance
Balance sheet & issuance
Slide 19: Capital position
Results and strategy Balance sheet & issuance Appendix & Capital position CET1 ratio, %' ¢@ No material impact from BoCom impairment or dilution loss due to a compensating release of threshold deductions ¢# RWA drivers: corporate lending in UK and CIB; methodology and policy Upcoming impacts @ 3025:
Slide 20: CET1 ratio as a % of RWAs, vs. target and MDA hurdle
CET1 ratio as a % of RWAs, vs. target and MDA hurdle Buffer to MDA hurdle $30.1bn ¥--, (3.4ppts) Combined buffer of 5.2% CET1 capital requirements? CET1 ratio CET1 target! MM Pillar 1 MM Pillar 20 CCB GsIB Ml CCyB ¢ Pillar 2A set at 2.6% of RWAs, of which 1.5% was met by CET1 capital Results and str
Slide 21: MREL / TLAC position
MREL / TLAC position MREL / TLAC position versus requirements! as a % of Group RWAs 32.6% Current binding requirement Other* US Resolution Group Asian Group European Resolution Group Nombinding r 23.2% CET1 buffers? | 5 90% 18.0% Results and strategy uirements 26.4% 5.2% HSBC Group TLAC as at 30 Jun
Slide 22: Funding and liquidity
Funding and liquidity Reported loans to deposits ratio, % 61.1 58.8 58.2 56.2 57.1 Results and strategy Operating entities Balance sheet & issuance Appendix Average LCR = 2021 2022 2023 2024 High-quality liquid assets', $bn 795 833 HOLA not [~ — ~] available for Group LCR 790 = r CI Group LCR HOLA (
Slide 23: 2025 issuance plan
Results and strategy Balance sheet & issuance Appendix & 2025 issuance plan Planned 2025 gros: juance 1H25 gross issuance HoldCo senior $16-18bn $7.9bn $17.4bn $2-3bn $1bn $2.4bn $3-4bn - $4.1bn Expect certain subsidiaries to issue modest senior / secured - debt in local markets = HSBC USA: $1.25bn
Slide 24: Portfolio instruments
Results and strategy Balance sheet & issuance Appendix &»> Portfolio instruments Maturity profile at 1H25' Outstanding instruments by currency (notional) at 1H25 $bn-equivalent Subordinated notes Additional Tier 1 273 Other EUR 20.4 GBP 17.9 16.2 21.1 13.7 SGD 11.8 9.0 12.9 HoldCo senior 2H25 2026 2
Slide 25: Appendix
Appendix
Slide 26: MREL / TLAC position
MREL / TLAC position MREL/ TLAC position at 1H25 Balance sheet at 1H25 Requirement HSBC Group US Resolution Group Total MREL / TLAC: $289.0bn Of which: non-regulatory capital: $109.4bn Results and strategy Total TLAC: $26.1bn Of which: non-regulatory capital (long-term debt): $12.3bn Europe Resolu (
Slide 27: Approach to issuance
Approach to issuance External Investors External equity, AT1, T2 & ‘bailin’ senior HSBC Holdings plc Internal provision of equity, AT1, Tier 2 and MREL/TLAC by downstreaming Results and strategy Balance sheet & issuance Appendix & HSBC Holdings plc Since 2015, HSBC Holdings has been the Group’s issu
Slide 28: Notable items
Results and strategy Balance sheet & issuance Notable items Appendix sin zara 2025p 1H25 Restructuring and other related costs 0.0 (0.5) (0.6) BoCom _ (2.1) (2.1) Of which: Dilution loss of interest in associate _ (1.1) (1.1) Of which: impairment loss of interest in associate _ (7.0) (7.0) Disposals
Slide 29: Banking NII — key drivers
Banking NII — key Balance sheet Average customer loans, $bn > 944 940 974 2024 1025 2025 Structural hedge $bn Notional balance — o/w: 3025-4025 reinvestment — o/w: FY26 reinvestment — o/w: FY27 reinvestment drivers Average customer deposits, $bn' > 1,577 1,648 2024 1025 Balance 578 ~55 ~105 ~105 1,7
Slide 30: Banking NII — HKD supplementary information
Results and strategy Balance sheet & issuance Appendix & Banking NII — HKD supplementary information HKD Banking NII sensitivity to a (100)bps down-shock', $m (634) ~ a Published Dec-24 — Published Jun-25 @ Relative to December 2024, the June 2025 sensitivity has primarily increased due to deposit m
Slide 31: Hong Kong commercial real estate
Hong Kong commercial real estate Excluding exposure to mainland China borrowers Loans and advances to customers by credit quality, $bn FY24 1H25 Strong 45 4.0 Good 9.8 9.1 Satisfactory 10.7 10.3 Sub-standard 3.7 3.4 — Of which: >70% LTV 0.1 0.0 Credit impaired 46 5.1 — Of which: >70% LTV 1.2 1.4 Tot
Slide 32: Wealth metrics
Wealth metrics Invested assets, $bn > +12% ——_{ 1,424 1,331 1,271 2 Rest of Grou 665 655 p . 2024 1025 2025 Results and strategy Invested assets evolution, $bn > 1025 NNIA Market FX and 2025 impact other WB Asia Ml Rest of Group * In 4024, the CSM relating to our French life insurance business was r
Slide 33: BoCom
Results and strategy Balance sheet & issuance Appendix &»> BoCom Dilution loss ¢ The Group's interest in BoCom reduced from 19.03% to 16.00% following the completion of a capital issuance by BoCom on 17 June 2025. The dilution of the Group’s interest resulted in a pre-tax loss of $(1.1)bn recognised
Slide 34: Total shareholders' equity to CET1 capital
Total shareholders’ equity to CET1 capital 2025 total equity to CET1 capital (reported FX), $m Total equity Non-controlling interests Total shareholders’ equity Additional Tier 1 Total ordinary shareholders’ equity Foreseeable dividend Adjustment of insurance / SPE’s Allowable NCI in CET1 CET1 befor
Slide 35: Credit ratings for main issuing entities
Credit ratings for main issuing entities Results and strategy Balance sheet & issuance Appendix = Long term senior ratings as at 29 2025 S&P Moody’s Rating Outlook Rating Outlook Rating Outlook HSBC Holdings plc A- STABLE A3 STABLE At STABLE The Hongkong and Shanghai Banking Corporation Ltd AA- STAB
Slide 36: Simplified structure chart
Results and strategy Balance sheet & issuance Simplified structure chart EE Holding company [Bl intermediate holding company HSBC Operating company Holdings pic a ° Appendix &»> Bl Associate solution entity HSBC Asia Holdings Ltd 99.9% HSBC North America Holdings Inc. ankin poration Ltd k (China) Lt
Slide 37: Glossary
Glossary Results and strategy Balance sheet & issuance Appendix = AIEA Average interest earning assets HIBOR Hong Kong Interbank Offered Rate ‘APAC Asia Pacific HoldCo Holding Company ATI Additional Tier 1 HOLA High-quality liquid assets Banking net interest income is an alternative performance meas
Slide 38: Footnotes
Footnotes Results and strategy Slide 2: A diversified and capital-generative business 1. Unless otherwise stated, regulatory capital ratios and requirements are based on the Capital Requirements Regulation in force at the time 2. Secured lending comprises ‘first lien residential mortgages’ and ‘othe
Slide 39: Disclaimer
Results and strategy Balance sheet & issuance 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 th
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