Hsbc Holdings Plc · LSE:HSBA
Hsbc — HSBC Mexico — Debt Investor Presentation (March 2020)
19 slides from Hsbc's debt investor presentation, March 2020
Slide 1: HSBC Mexico 1Q20
HSBC Mexico 1Q20 March 2020 PUBLIC
Slide 2: Important notice and forward-looking statements
Important notice and forward-looking statements YOU MUST READ THE FOLLOWING BEFORE CONTINUING. THE FOLLOWING APPLIES TO THE PRESENTATION MATERIALS FOLLOWING THIS PAGE, AND YOU ARE THEREFORE ADVISED TO READ THIS CAREFULLY BEFORE READING, ACCESSING OR MAKING ANY OTHER USE OF THE PRESENTATION MATERIALS
Slide 3: 1. HSBC in Mexico
1. HSBC in Mexico PUBLIC 3
Slide 4: Our Mexican business is strategically important to the Group
HSBC in Mexico Our Mexican business is strategically important to the Group Ownership chart HSBC Mexico performance1 Reported revenue USDbn % of Group2 +11% HSBC Holdings plc 4.6% 2.6 2.3 4.3% FY18 FY19 FY18 FY19 HSBC Latin America Holdings (UK) Limited Reported profit before tax3 USDbn 100% % of Gr
Slide 5: All lines of business grew profit before tax in FY19
HSBC in Mexico All lines of business grew profit before tax in FY19 HSBC Mexico - reported profit before tax USDm +44% +46% +10% 279 166 217 194 197 114 FY18 FY19 FY18 FY19 FY18 FY19 Retail Banking Commercial Global Banking and Wealth Banking and Markets Management 1. Source: HSBC Holdings plc Annua
Slide 6: 2018-2020 strategy remains in place
HSBC in Mexico 2018-2020 strategy remains in place Two main strategic pillars… (i) Fully leverage our retail scale to reach a 10% market share (to match our branch market share), (ii) Become the leading wholesale bank for international customers and local customers with transaction banking needs. …a
Slide 7: HSBC Mexico: Latin America's best bank
HSBC in Mexico Euromoney awards: a successful strategy HSBC Mexico: Latin America’s best bank transformation 2018 Best Bank in Mexico 2019 PUBLIC 7
Slide 8: Covid-19
HSBC in Mexico Covid-19 Support measures Employee measures • HSBC has donated MXN15million for the Temporary Hospital Unit • Most GBM, CMB and Private Banking employees are working of the Citibanamex Convention Center, and for the Mexican Red from home, with the necessary technology at their disposa
Slide 9: 3. HSBC Mexico financial performance
3. HSBC Mexico financial performance PUBLIC 9
Slide 10: Reported financial performance 1Q20 – Mexico GAAP
HSBC Mexico financial performance Reported financial performance 1Q20 – Mexico GAAP Loan impairment charges and other credit risk Revenue1,2,3,4,5 provisions3,4,5 MXNm MXNm -62% -5% +29% +28% -21% +7% +26% +4% 11,890 12,407 4,809 11,078 8,806 9,464 2,906 2,263 1,846 1,754 Mar16 Mar17 Mar18 Mar19 Mar
Slide 11: Reported financial performance 1Q20 – Mexico GAAP
HSBC Mexico financial performance Reported financial performance 1Q20 – Mexico GAAP Net Loans advances to customers1,2 LICs1,2 / loans % MXNm MXNm +16% +7% +19% +4% +26% +22% +11% 7.5 415,900 376,210 308,500 242,020 259,989 2.7 2.7 2.2 2.3 Mar16 Mar17 Mar18 Mar19 Mar20 Mar16 Mar17 Mar18 Mar19 Mar20
Slide 12: Credit portfolio and deposits
HSBC Mexico financial performance Credit portfolio and deposits Deposits1 MXNbn +13% +20% +6% +12% 418.4 394.9 328.1 290.0 258.0 Mar16 Mar17 Mar18 Mar19 Mar20 Advances to deposits ratio (ADR) %2 MXNbn 99.4% 95.3% 93.7% 94.0% 89.7% Mar16 Mar17 Mar18 Mar19 Mar20 1. Source: HSBC Mexico 1Q20 press relea
Slide 13: HSBC Mexico Bank – capital
HSBC Mexico financial performance HSBC Mexico Bank – capital Total capital adequacy ratio at 1Q20 was 13.0%, 190bps above regulatory requirements Capitalisation %1 Total capital adequacy ratio 12.8% 12.9% 13.0% At 31 March 2020, the bank’s total capital adequacy ratio was 12.4% 12.9% 13.0% and the
Slide 14: 4. Peer bank review
4. Peer bank review PUBLIC 14
Slide 15: HBMX vs Industry
Peer Bank review HBMX vs Industry Total loans1 Retail loans Wholesale loans MXNbn MXNbn MXNbn Banking Industry2 HSBC Mexico Banking Industry2 HSBC Mexico Banking Industry2 HSBC Mexico Lending rates (NIM) Credit Cost (3 months rolling average) (Annualized LICs/avg. loans) Coverage index (loan reserve
Slide 16: HBMX vs Industry – Liquidity coverage ratio
Peer Bank review HBMX vs Industry – Liquidity coverage ratio Banking Industry1 HSBC Mexico Source: CNBV 1. Banking industry average of the six largest banks in Mexico including HSBC PUBLIC 16
Slide 17: 5. Characteristics of the offer
5. Characteristics of the offer PUBLIC 17
Slide 18: Medium term notes
5. Characteristics of the offer Medium term notes Issuance of medium term notes (Certificados Bursátiles bancarios) up to MXN10,000 million Issuer HSBC México, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC Type of Security Certificados Bursátiles Bancarios de largo plazo Issuance amount
Slide 19: PUBLIC
PUBLIC 19
HSBC Mexico — Debt Investor Presentation (March 2020) on 6ix