Hsbc Holdings Plc · LSE:HSBA
Hsbc — Debt Investor Presentation (December 2011)
25 slides from Hsbc's debt investor presentation, December 2011
Slide 1: Credit Update
Credit Update HSBC BANK CANADA and HSBC HOLDINGS PLC Presentation to Fixed Income Investors December 2011
Slide 2: Forward-looking statements
Forward-looking statements This presentation, including the accompanying slides and subsequent discussion, contains certain forward- looking information with respect to the financial condition, results of operations and business of HSBC Holdings plc, together with its direct and indirect subsidiarie
Slide 3: Contents
Contents 1. HSBC Bank Canada 2. HSBC Bank Canada - Financial Performance 9M11 3. The HSBC Group 4. HSBC Holdings – Financial Performance 9M11 5. Contacts 3
Slide 4: HSBC Bank Canada
HSBC Bank Canada HSBC &>
Slide 5: Leading international bank in Canada
HSBC Bank Canada Overview Leading international bank in Canada History and development of HSBC Bank Canada HSBC Bank Canada at September 30th, 2011 Incorporated Hongkong Bank of Canada 1999 Renamed HSBC Bank Canada Total assets CAD80,630m Banking Total shareholders‟ equity CAD4,933m 1986 Assumed Ban
Slide 6: Clear Strategy & Execution Focus
Clear Strategy & Execution Focus HSBC’s 5 Strategic Filters – Canada’s Place Canada is a significant player in global trade (11th largest importer, 12th largest STRATEGIC RELEVANCE Connectivity exporter) Trade is diversifying from US to emerging markets Strong cultural ties with Asian and Sout
Slide 7: Strategic Update
Strategic Update To be the leading international financial services company in Canada – no Canadian bank has HSBC‟s international network, no international bank has HSBC‟s Canadian presence Global Banking & Markets Global partner for global clients Local products distributed globally; global pro
Slide 8: HSBC Bank Canada Financial Performance 9M11
HSBC Bank Canada Financial Performance 9M11
Slide 9: Financial overview
HSBC Bank Canada Financial Performance, 9M11 Financial overview Reported results – strong and consistent profits IFRS – CAD(m) 9M10 9M11 % Change Net operating income1 1,933 1,923 (1) Loan impairment charges2 (244) (143) +41 Operating expenses (987) (1,013) (3) Associates and joint ventures 4 4 n/a
Slide 10: All businesses profitable
HSBC Bank Canada Financial Performance, 9M11 All businesses profitable Profit before tax IFRS - CAD(m) 9M10 9M11 % Change Commercial Banking 422 422 0 Global Banking and Markets 174 207 +19 Retail Banking and Wealth Management 54 81 +50 Consumer Finance 48 44 -8 Other1 8 17 +113 Total 706 771 +9 Sou
Slide 11: Customer lending and funding
HSBC Bank Canada Financial Performance, 9M11 Customer lending and funding Funding strength supports customer lending growth IFRS –CAD(bn)1 31 Dec 2010 30 Sep 2011 45.2 -3% 43.7 Customer loans and advances2 0% 45.5 45.5 Customer accounts2 Advances-to- 99.3% 96.0% deposits ratio2 Source – HSBC Bank Ca
Slide 12: Strong credit quality
HSBC Bank Canada Financial Performance, 9M11 HSBC Bank Canada – Strong credit quality Impaired Credit Exposures2 IFRS - CAD(m) 858 879 Improving trend in impaired credit 783 746 exposures Impaired credit exposures have decreased by 13% from CAD858 million 741 763 in 2010 to CAD746 million as at
Slide 13: Further strengthening the capital base
HSBC Bank Canada Financial Performance, 9M11 Further strengthening the capital base Risk-weighted assets CAD(bn) Tier 1 ratio1 (%) 13.3 13.4 3.3 3.9 10.1 9.4 31-Dec-10 30-Sep-11 Core tier 1 Other tier 1 Source – HSBC Bank Canada Q3 2011 Interim Report Notes: 13 (1) Calculation based on Canadian GAAP
Slide 14: HSBC Bank Canada
HSBC Bank Canada Core component of HSBC strategy, bridging developed and emerging markets Focused on redeploying assets for growth – sale of retail brokerage division Resilient profit history, even through credit crisis Favourable credit loss provisions Low cost base with highly engaged wo
Slide 15: The HSBC Group
The HSBC Group HSBC &>
Slide 16: Why should you own HSBC?
The HSBC Group Why should you own HSBC? Network of countries relevant for international connectivity Distinctive Access and exposure to high growth markets and businesses position Strong balance sheet generating resilient stream of earnings International connectivity; markets & businesses St
Slide 17: Progress on strategy
The HSBC Group Progress on strategy To become the world‟s leading international bank… Key execution elements Achievements Disposal of US cards business and branches in New York Disposal of Canadian investment advisory, Chilean and Polish retail, UK motor insurance Capital deployment Disposal o
Slide 18: Key Trends for North America
HSBC in North America Key Trends for North America Why does HSBC need to be in North America? Overview Long-term trends US and Canada accounted for 26% of ■ The region remains materially world GDP in 2010 relevant: In 2050, the combined GDP forecast for US and Canada is International trade hubs
Slide 19: Global Organizational Chart
The HSBC Group Global Organizational Chart HSBC Holdings plc UK HSBC Mexico Holding company HSBC Latin SA, Institucion de HSBC Overseas 99% HSBC Bank HSBC 99% HSBC HSBC Bank 94% HSBC Intermediate holding company America Holdings Ban- ca Multiple, Holdings (UK) Canada Bank plc France Egypt S.A.E. Hol
Slide 20: HSBC Holdings Financial Performance 9M11
HSBC Holdings Financial Performance 9M11
Slide 21: Financial overview
HSBC Holdings Financial Performance, 9M11 Financial overview Reported results – strong recovery in profit USD(m) 9M10 9M11 % Change Net operating income1 50,925 55,641 +9 Loan impairment charges2 (10,669) (9,156) +14 Operating expenses (27,489) (30,379) (11) Associates and joint ventures 1,862 2,523
Slide 22: All regions and businesses profitable
HSBC Holdings Financial Performance, 9M11 All regions and businesses profitable Profit before tax USD(m) Latin North Middle Hong Asia- America America Europe East1 Kong Pacific2 Total Commercial Banking 713 756 1,359 425 1,216 1,674 6,143 Global Banking and Markets 840 738 493 509 940 2,297 5,817 RB
Slide 23: Exposure to selected eurozone countries
HSBC Holdings Financial Performance, 9M11 Exposure to selected eurozone countries 30 September 2011 USD(bn) Greece Ireland Italy Portugal Spain Total Sovereign and Agencies 0.7 0.2 2.5 0.6 1.5 5.5 Banks 0.6 1.8 2.8 0.4 2.6 8.2 Total 1.3 2.0 5.3 1.0 4.1 13.7 Total off balance 0.2 - 0.2 - 1.5 1.9 shee
Slide 24: Customer lending and funding
HSBC Holdings Financial Performance, 9M11 Customer lending and funding Funding strength supports customer lending growth USD(bn)1 31 Dec 2010 30 Sep 2011 958.4 +1% 964.7 Customer loans and advances 1,227.7 +4% 1,271.0 Customer accounts Advances-to- 78.1% 75.9% deposits ratio Source – HSBC Holdings p
Slide 25: Remaining resilient with a strong balance sheet
HSBC Holdings Financial Performance, 9M11 Remaining resilient with a strong balance sheet Risk-weighted assets USD(bn) Tier 1 ratio (%) 12.1 12.1 1,160 1.6 1.5 1,103 10.5 10.6 31-Dec-10 30-Sep-11 31-Dec-10 30-Sep-11 Core tier 1 Other tier 1 Source – HSBC Holdings plc 2011 Interim Management Statemen
HSBC Holdings — Debt Investor Presentation (December 2011) on 6ix