Hsbc Holdings Plc · LSE:HSBA
Hsbc — Debt Investor Presentation (September 2014)
17 slides from Hsbc's debt investor presentation, September 2014
Slide 1: Perpetual Subordinated Contingent Convertible Securities
HSBC Holdings plc Perpetual Subordinated Contingent Convertible Securities Presentation to Institutional Investors September 2014
Slide 2: Forward-looking statements
Forward-looking statements This presentation and subsequent discussion may contain certain forward-looking statements with respect to the financial condition, results of operations, capital position and business of the Group. These forward-looking statements represent the Group’s expectations or bel
Slide 3: Disclaimer
Disclaimer This presentation has been produced by HSBC Holdings plc (“HSBC”) solely for use at this presentation held in connection with the offering of the Securities and may not be reproduced or redistributed, in whole or in part, to any other person. HSBC has filed with the SEC a registration sta
Slide 4: Disclaimer (continued)
Disclaimer (continued) The Securities are not intended to be sold and should not be sold to “retail clients” (as defined in the Markets in Financial Instruments Directive 2004/39/EC and/or in the United Kingdom Financial Conduct Authority’s Conduct of Business Sourcebook (“COBS”), in each case, as a
Slide 5: Contents
Contents The HSBC Group 1 HSBC’s Perpetual Subordinated Contingent Convertible Securities 2 Conclusions 3 5
Slide 6: The HSBC Group
The HSBC Group HSBC €&>
Slide 7: Strategy: An unrivalled global position and platform for growth
The HSBC Group Strategy An unrivalled global position and platform for growth 2011-13: Clear strategic direction: identification of home and priority growth markets; 63 Leaner bank disposals announced and platform Leaner organisation managed by 4 Global Businesses and 11 Global Functions for gro
Slide 8: Strong profit generation 1H14
The HSBC Group Strong profit generation 1H14 Consolidated statement of income1 USDbn Revenue2 31.2 Loan impairment (1.8) charges Operating (18.3) expenses Associates3 1.3 Profit 12.3 before tax 0 5 10 15 20 25 30 1. On a reported basis 2. Net Operating Income before loan impairment charges and other
Slide 9: Conservative Balance Sheet 30 June 2014
The HSBC Group Conservative Balance Sheet Assets 30 June 2014 Other3 Insurance Liabilities and equity Equity Other5 Derivatives Loans to customers Repos Customer Total accounts Derivatives USD2.8trn Trading Trading assets liabilities5 Debt securities4 Assets managed Reverse Repos2,3 by Balance Sheet
Slide 10: Growing equity base driven by retained earnings
The HSBC Group Growing equity base driven by retained earnings With strong and increasing capital ratios Common Equity Tier 1 (end point basis)1 % risk weighted assets 12% 2.1% 0.3% 11.3% 0.4% 11% (1.0%) 10% 9.5% 9% 8% 0% 7% Dec12 Profits Dividends Risk Other Jun14 net of scrip weighted assets 1. On
Slide 11: Capital requirements
The HSBC Group Capital requirements Required common equity tier 1 ratio1 14% 11.3% 12% CET1% at 30 June (end-point) 10.4% 10.4% 10% 9.1% 7.9% 8% 7.0% 7.0% 7.0% 5.0% 5.0% 3.8% 2.5% 6% 1.3% 0.9% 0.9% 0.9% 0.9% 0.9% 0.9% 4% 2% 4.0% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 0% 2014 2015 2016 2017 2018 2019 2020 CET
Slide 12: HSBC's Perpetual Subordinated Contingent Convertible Securities
HSBC’s Perpetual Subordinated Contingent Convertible Securities
Slide 13: In overview: Targeted at institutional investors
HSBC’s Perpetual Subordinated Contingent Convertible Securities In overview Targeted at institutional investors: minimum denominations $200,000 Item Details Issuer HSBC Holdings plc Non-cumulative, discretionary, payable semi-annually Distributions [%] fixed with Reset on the 1st call date, and ever
Slide 14: Mitigating the key risks
HSBC’s Perpetual Subordinated Contingent Convertible Securities Mitigating the key risks Item Details Distributable items USD49.3bn at 31 Dec 13 Distributions - “It is the Board of Directors’ current intention that, whenever exercising its priority intention discretion to declare Ordinary Share divi
Slide 15: Likely volume of issuance
HSBC’s Perpetual Subordinated Contingent Convertible Securities Likely volume of issuance Transitional own funds disclosure US$m CRR At prescribed Final 30 June residual CRDIV 2014 amount text Additional tier 1 (AT1) capital: instruments Amount of qualifying items and the related share premium accou
Slide 16: Conclusions
Conclusions INTERNAL
Slide 17: Conclusions: Investment case
Conclusions HSBC’s Perpetual Subordinated Contingent Convertible Securities Investment case Grow both business and dividends Clear Implement Global Standards strategy Streamline processes and procedures Clear risk appetite Strong Strong profit generation credit Capital strength Investo
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