Hsbc Holdings Plc · LSE:HSBA
Hsbc — HSBC UK — Investor Presentation (November 2019)
14 slides from Hsbc's investor presentation, Nov 13, 2019
Slide 1: HSBC UK: Together we thrive, Q4 2019
HSBC UK Together we thrive Q4 2019
Slide 2: Important notice and forward looking statements
Important notice and forward looking statements Important notice The information, statements and opinions set out in this presentation and subsequent discussion do 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 se
Slide 3: An introduction to HSBC UK
An introduction to HSBC UK HSBC UK is a material part of the Group and one of HSBC’s scale markets FY18 Market shares as at JUN191 HSBC UK as a % of Group UK market shares CMB UK = 24% of Global CMB Share gain Total adjusted revenue RBWM UK = 20% of Global RBWM Market share in the UK (%) vs. FY17 HS
Slide 4: HSBC UK, a clear growth opportunity
An introduction to HSBC UK HSBC UK, a clear growth opportunity Key highlights 1 The UK is one of HSBC’s scale markets, and HSBC UK represents a material part of the Group 2 The UK represents a UK remains an attractive place to do business; HSBC UK has significant competitive advantages and opportuni
Slide 5: The UK remains an attractive place to do business
An introduction to HSBC UK The UK remains an attractive place to do business UK structural advantages Sound economics, but with Brexit uncertainty Annual GDP growth5 (%) CPI inflation5 (%) Total private wealth of c. £13tn, with 14% of 1.8 2.7 2.5 households having assets 1.4 >£1m1 1.9 1.9 1.1 1.0
Slide 6: HSBC UK has clear competitive advantages
An introduction to HSBC UK HSBC UK has clear competitive advantages Full banking capability and exceptional international connectivity Strong balance sheet with a low cost of funding and conservative risk appetite Branch footprint optimisation ahead of peers Significant growth potential – hi
Slide 7: Well-diversified business model
An introduction to HSBC UK Well-diversified business model FY18 Adjusted revenue Adjusted profit before tax GPB Corporate Centre GPB Corporate Centre GB&M GB&M 2% 1% 2% 2% RBWM 2% 3% 34% £6.4bn 52% RBWM £2.5bn CMB 42% 60% CMB Customer accounts Loans and advances to customers GPB GPB Corporate Centre
Slide 8: Key opportunities across our businesses
An introduction to HSBC UK Key opportunities across our businesses Leverage our exceptional global footprint to support commercial customers’ trade and overseas banking needs Commercial Improve penetration of mid market, through additional on-boarding capacity and Banking renewed focus on ‘fast
Slide 9: Clear plan to be a top UK financial institution
An introduction to HSBC UK Clear plan to be a top UK financial institution “Together we thrive” Our UK shared Top UK Financial ambition Institution “Simple, Safe and Sustainable” Customer Experience People Engagement Shareholder value growth Our 4 strategic priorities1 Top 3 for Customer Top 3 for B
Slide 10: Resilient revenue performance, offset by higher ECL and operating expenses
An introduction to HSBC UK Resilient revenue performance, offset by higher ECL and operating expenses Adjusted P&L, £m 2018 Performance Q319 YTD Performance 9M to 9M to 9M19 v 9M18 FY17 FY18 FY ∆ % % SEP18 SEP19 Net interest income 4,232 4,715 11% 3,487 3,673 5% Adjusted revenue grew 4% to £5.0bn
Slide 11: HSBC UK, a clear growth opportunity
An introduction to HSBC UK HSBC UK, a clear growth opportunity Key highlights 1 The UK is one of HSBC’s scale markets, and HSBC UK represents a material part of the Group 2 The UK represents a UK remains an attractive place to do business; HSBC UK has significant competitive advantages and opportuni
Slide 12: Appendix
Appendix ia HSBC UK 12
Slide 13: Reconciliation between reported and adjusted income statement items
Appendix Reconciliation between reported and adjusted income statement items £m 1Q19 2Q19 3Q19 FY17 FY18 Reported PBT 494 122 (18) 1,132 2,207 Revenue Customer redress programmes - - (96) (79) 39 Disposals, acquisitions and investment in new businesses - - - 66 - - - (96) (13) 39 Operating expenses
Slide 14: Reported consolidated income statement and note on pro forma information
Reported consolidated income statement and note on pro forma information Reported income statement, £m 20171 2018 Pro-forma reported income statement, £m 2017 2018 Net interest income - 2,456 Net interest income 4,153 4,754 Other income - 901 Other income 1,843 1,734 Total revenue - 3,357 Total reve