HSBC Holdings PLC · LSE:HSBA
HSBC — Investor Presentation (May 2010)
19 slides from HSBC's investor presentation, May 2010
Slide 1: Growth in the new normal
HSBC Holdings plc Michael Geoghegan, Group Chief Executive May 2010 Growth in the new normal www.hsbc.com
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 and business of the Group. These forward-looking statements represent the Group’s expectations or beliefs concerning fu
Slide 3: Contents
Contents Shaping the business The old normal The new normal Strategic focus Financial targets Positioning for growth Serving connectivity between markets and geographies Building on strong regional presence for growth in local businesses 3
Slide 4: The old normal
The old normal Macro global trends continue to underpin Group vision as the world's leading international emerging markets bank World GDP forecast, based on PPP, % of total1 100 Emerging markets 75 36 36 36 36 37 41 47 52 growing faster than rich 50 25 countries 0 1980 1985 1990 1995 2000 2005 2010
Slide 5: The new normal
The new normal The crisis has created more focus on the right approach to banking Industry issue Capital Liquidity Resolution Strengthening through Strong AD ratio HSBC Group structure capital generation Based on a principle of subsidiarity HSBC position Tier 1 ratio (%) 31 Dec 2009 11.1 Locally cap
Slide 6: Strategic focus
Strategic focus Build on our heritage Positioning for growth Operational transformation Leading international Responding to global OneHSBC network trends Leading presence in Serving global People engagement faster growing markets connectivity International Building our regional management culture an
Slide 7: Financial targets
Financial targets ROE at lower end of the range Key performance indicators Cost efficiency ratio1 Revenues Target 2009 Return on total Costs shareholders’ equity2 48 – 52% 47.5% Target 2009 Tier 1 ratios (Basel II) Risk Weighted Assets 15 – 19% over medium term 9.2% Target 2009 Capital 7.5 – 10.0% 1
Slide 8: Positioning for growth
Positioning for growth Serving connectivity between markets and geographies
Slide 9: Global Banking and Markets
Global Banking and Markets Strengthening its position in emerging markets-led and financing-focused business Diversified by geography and product PBT, 2009 by Hong Kong Total operating Credit 712 1,507 3.0 2.3 Rates geography, Rest of Asia-Pacific income1, 2009 by 2.6 Foreign Exchange Middle East un
Slide 10: Private Banking and Asset Management
Private Banking and Asset Management International business refocused towards growth markets Fastest wealth creation in emerging markets Total emerging markets – assets under HNWI wealth – growth by region1 management, US$bn2 50 1.0 100 1.9 90 90 7.6 40 73.0% Global HNWIs Wealth (US$tr) CAGR 80 0.8
Slide 11: Connectivity driving growth in retail businesses
Connectivity driving growth in retail businesses Personal Financial Services Commercial Banking World selection AUM, US$m Increased revenues from international customers2 4,000 Up to 3x Revenue multiplier – 300 domestic = 100 3,000 200 2,000 $3.8bn 100 1,000 0 0 Business Banking Business Banking Cor
Slide 12: Positioning for growth
Positioning for growth Building on strong regional presence for growth in local businesses
Slide 13: Asia – growing opportunity in financial markets
Asia – growing opportunity in financial markets Scope for growth: emerging markets vs. mature markets1 130x Potential asset growth based on 81x Scope for growth in 2050 forecasts 62x financial markets 20x 14x 11x 9x 10x 1x Indonesia India China Malaysia Korea Singapore Hong Australia Japan Kong Fast
Slide 14: Asia – leading position at heart of fastest growing region
Asia – leading position at heart of fastest growing region Maintain and protect leadership position in Hong Kong Strong focus on being the international bank of choice to service local and international financial service needs A network presence in selected markets Special focus on China and India J
Slide 15: Middle East – the leading international bank in the region
Middle East – the leading international bank in the region Long term economic potential generates 61% of world 45% of world 700m OIL reserves GAS reserves Population Capital recycling Scalable demographics 1. Capital Recycling Emerging connectivity Providing opportunities for participation by 2. Sca
Slide 16: Latin America – strong network and connectivity in a fast growing region
Latin America – strong network and connectivity in a fast growing region1 54,000 staff2 3,000 branches 18 countries Investments Strategy Mexico Mexico 2002: Grupo Financiero Bital Honduras Drive profitable growth Nicaragua 2003: Seguros Bital, Afore Allianz – Dresdner Guatemala through: 2004: Allian
Slide 17: North America – important core businesses in the US
North America – important core businesses in the US Legacy business Core business Successfully managing the run down of assets The US remains the largest economy and is a and the cost base; opportunistic about core business to HSBC portfolio disposals Focus our business where we have core strengths
Slide 18: UK retail – focus on premium personal customers and businesses
UK retail – focus on premium personal customers and businesses with international needs Personal Financial Services customer age profile High quality, young, affluent, premium Customer Vols (000s) HSBC customer Annual Income HSBC Average personal customer base number (left hand HSBC Ave Annual Incom
Slide 19: The leading banking brand
The leading banking brand Brand Finance – Banking Brand Value 2010, (US$m) Move from disparate set of 30,000 brands to one common brand 22,500 15,000 The HSBC brand is stronger and 7,500 more valuable than it has ever 0 been HSBC Bank of Santander Wells Citi America Fargo Brand Finance and Interbran