HSBC Holdings PLC · LSE:HSBA
HSBC — Investor Presentation (June 2015)
21 slides from HSBC's investor presentation, June 2015
Slide 1: Commercial Banking
June 2015 Commercial Banking Simon Cooper Chief Executive Officer, Global Commercial Banking
Slide 2: Important notice and forward-looking statements
Commercial Banking Important notice and forward-looking statements Important notice The information set out in this presentation and subsequent discussion does not constitute a public offer for the purposes of any applicable law or an offer to sell or solicitation of any offer to purchase any securi
Slide 3: Agenda
Commercial Banking Agenda 1 Overview 2 Solid foundation, strong performance 3 Capturing value from global presence 4 Investing for growth 5 Summary: Advantages driving improved returns 22
Slide 4: CMB will deliver faster-than-market growth and improved returns
Commercial Banking – Overview CMB will deliver faster-than-market growth and improved returns Key messages Strong performance1 § Strong track record of profitable growth – with positive 2014, USDbn Solid revenue and return expectations Revenue 16.3 foundation, § Pivotal role in growth of cross-busin
Slide 5: Agenda
Commercial Banking Agenda 1 Overview 2 Solid foundation, strong performance 3 Capturing value from global presence 4 Investing for growth 5 Summary: Advantages driving improved returns 4
Slide 6: CMB: 26% of Group revenue, 39% of Group PBT and 35% of Group RWAs
Commercial Banking – Solid foundation, strong performance CMB: 26% of Group revenue, 39% of Group PBT and 35% of Group RWAs in 2014 CMB has delivered consistent, profitable growth1 Revenue diversified by region and product USD bn 2013 2014 CAGR Share of 2014 Revenue by Region and Product 16.3 15.5 A
Slide 7: Performance enabled by global client segments aligned to needs and revenue potential
Commercial Banking – Solid foundation, strong performance Performance enabled by global client segments aligned to needs and revenue potential Client Country Global segments Product needs coverage2 coverage3 % Revenue4 Large Bespoke event and Corporate 1:15 56 33% c. 8k flow solutions (LC) clients1
Slide 8: CMB central to Global Business revenue synergies
Commercial Banking – Solid foundation, strong performance CMB central to Global Business revenue synergies1: c.USD6bn in 2014 Payroll services – 1.7m RBWM Provide trade finance, working capital solutions and accounts in Mexico as of 1Q15 liquidity management to GB&M clients Example: Leveraging our g
Slide 9: Agenda
Commercial Banking Agenda 1 Overview 2 Solid foundation, strong performance 3 Capturing value from global presence 4 Investing for growth 5 Summary: Advantages driving improved returns 8
Slide 10: Harnessing the global network advantage is the key to growth
Commercial Banking – Capturing value from global presence Harnessing the global network advantage is the key to growth Our network and relationships with Strength of position in Asia enables Success opens door to support SMEs up to multinationals enables penetration of large Western buyers multinati
Slide 11: The Network in action
Commercial Banking – Capturing value from global presence The Network in action HSBC CMB footprint Cosmo Supply Labs (CSL) needed a bank to support its We support Samsonite’s global subsidiaries through our end-to-end supply chain from its primarily Chinese payments, FX, trade and cash management so
Slide 12: Our Network supports subsidiaries, buyers and suppliers
Commercial Banking – Capturing value from global presence Our Network supports subsidiaries, buyers and suppliers HSBC CMB footprint We provide payments, FX and cash We enable SMRP BV to optimise its We issue LCs in both USD and RMB to management solutions to TomTom’s cashflows by providing non-reco
Slide 13: Disciplined, global approach addresses the International Subsidiary Banking opportunity
Commercial Banking – Capturing value from global presence Disciplined, global approach addresses the International Subsidiary Banking opportunity Subsidiary banking accelerates growth Deployed a solution which is delivering results Average revenue multiplier1 11x § Created global International Subsi
Slide 14: Cities focus in global hubs drives international revenue growth
Commercial Banking – Capturing value from global presence Cities focus in global hubs drives international revenue growth Investment Focus MME & LC Client Revenue3,4 § c. 1751 additional RMs and dedicated § Connect global buyers to Chinese 32% 30% Growth product support since 2011 suppliers and help
Slide 15: Agenda
Commercial Banking Agenda 1 Overview 2 Solid foundation, strong performance 3 Capturing value from global presence 4 Investing for growth 5 Summary: Advantages driving improved returns 14
Slide 16: PCM and GTRF: helping clients globalise
Commercial Banking – Investing for growth PCM and GTRF: helping clients globalise PCM and GTRF core to revenue Investing over USD700m3 to fuel organic growth Revenue percent of total c.USD40m invested of c.USD400m 3-year plan to increase client coverage § Build a dedicated sales and distribution eng
Slide 17: Capitalising on rapid growth in Pearl River Delta
Commercial Banking – Investing for growth Capitalising on rapid growth in Pearl River Delta Global exports1 Pearl River Delta (PRD) is an engine of growth for China1 2013, USDtn § China generates 12% of world exports – PRD accounts for 27% of China’s exports § PRD has compelling links with key HSBC
Slide 18: Agenda
Commercial Banking Agenda 1 Overview 2 Solid foundation, strong performance 3 Capturing value from global presence 4 Investing for growth 5 Summary: Advantages driving improved returns 17
Slide 19: Three distinct advantages
Commercial Banking – Summary : Advantages driving improved returns Three distinct advantages § CMB organised around clients Global segment § Globally-managed model tailored to client needs coverage § Globally-managed product coverage aligned with segments § Truly global reach and universal client ba
Slide 20: Disciplined execution will deliver improved returns
Commercial Banking – Summary : Advantages driving improved returns Disciplined execution will deliver improved returns Key Priorities 2014 – 2017 RoRWA walk (excl. associates) § Maximise advantage of our unrivalled global network to deliver the international value proposition § Leverage scale in Hon
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