Hsbc Holdings Plc · LSE:HSBA
Hsbc — Investor Day (May 2023)
80 slides from Hsbc's investor day presentation, May 2023
Slide 1: HSBC Asia seminar for Investors and Analysts | Day Three
Asia HSBC Asia seminar for Investors and Analysts | Day Three May 2023
Slide 2: Disclaimer
Disclaimer Important notice The information, statements and opinions set out in this presentation and accompanying discussion (this “Presentation”) are for informational and reference purposes only and do not constitute a public offer for the purposes of any applicable law or an offer to sell or sol
Slide 3: HSBC Asia seminar | Day Three
HSBC Asia seminar | Day Three Singapore 3 India 14 Rest of Asia 26 CMB South and South-East Asia 38 GBM Asia 51 Sustainable Finance 65
Slide 4: Singapore
Singapore Kee Joo Wong | CEO, HSBC Singapore
Slide 5: Overview
Singapore Overview HSBC Singapore is well positioned to capture opportunities in one of the fastest growing 1 regions in the world Singapore is a priority market for the Group; we are investing in our people, propositions and 2 digital to build a regional wholesale hub and international Wealth centr
Slide 6: Singapore: positioned to capture opportunities as an international financial centre
Singapore Singapore: positioned to capture opportunities as an international financial centre Gateway to South & South-East Fast growing hub for Wealth and Asset Hub for tech & innovation Asia for corporates Management and leading green finance centre ASEAN is the #5 largest economy in the Some of t
Slide 7: We were one of the earliest banks in Singapore, a prominent player today
Singapore We were one of the earliest banks in Singapore, a prominent player today 1800-1900s Today Universal banking coverage Key statistics Wealth and Personal Banking (WPB) c.4k employees 1877: Established as one of the first Commercial Banking (CMB) c.460k customers banks in Singapore 6 branches
Slide 8: We are delivering on our Singapore strategy
Singapore We are delivering on our Singapore strategy Growing PBT contribution in Asia Key drivers of growth PBT by global business Revenue by global business Personal Wholesale $m FY22, $bn Mass Affluent / HNW customers Customers by segment +64% 772 +23% +41% (2)% 48% 22% 32% 2.0 Onshore Offshore W
Slide 9: Our ambition
Our ambition
Slide 10: Our 2027 ambition is buoyed by Singapore's financial sector roadmap
Singapore Our 2027 ambition is buoyed by Singapore’s financial sector roadmap HSBC Singapore 2027 ambitions #1 Wholesale Leading Health Leading ESG Bank for Digital and Wealth Hub bank $3.3bn invested1 in 23 Industry Transformation Maps (ITMs) across 7 clusters Health and Advanced Transport Modern s
Slide 11: Wholesale: investing in people, propositions and digital to serve our customers
Singapore Wholesale: investing in people, propositions and digital to serve our customers Aim to be the #1 What we have achieved Wholesale Bank for Digital by… Head of Commercial Banking, South and South-East Asia and Head of Global Banking, South Asia Growing market share Head of Global Payment
Slide 12: Wealth: investing to build a borderless Wealth continuum
Singapore Wealth: investing to build a borderless Wealth continuum Aim to be a leading What we have achieved Health and Wealth Hub by… Regional Head of Wealth and Personal Banking (incoming) Growing market share in priority Global Head of Capital Markets and Investment & Wealth Solutions Platfor
Slide 13: We are at the forefront of new opportunities in sustainability and technology
Singapore We are at the forefront of new opportunities in sustainability and technology Aim to be a leading ESG bank Pioneering new technologies Support Singapore’s Green Plan 2030 Partnerships with regulators and industry on new technology Lead in regulatory engagements and adoption of standards Di
Slide 14: Key messages
Singapore Key messages HSBC Singapore 2027 ambitions #1 Wholesale Leading Health Leading ESG Bank for Digital and Wealth Hub bank We’re delivering on our strategy as a regional wholesale hub and international wealth centre, 1 having doubled our share of PBT contribution for Asia since 2019 We’ve ach
Slide 15: India
India Hitendra Dave | CEO, HSBC India
Slide 16: Overview
India Overview 1 Indian financial system is on the cusp of a multi-year run of revenue growth 2 We already have a significant wholesale business; poised to expand into higher yielding segments 3 From a private bank for UHNWIs to unsecured loans – WPB is core to our future plans 4 Digital development
Slide 17: The India opportunity
India The India opportunity Megatrends Key developments HSBC positioning $3.4tn GDP in 2022 and expected to exceed $5tn by 20271; favourable demographic trends Supportive Strong in Payments, Trade and FX9 Low credit to GDP ratio: households and small businesses macroeconomics Strong balance
Slide 18: The largest global bank in India, with deep roots and longstanding heritage
India The largest global bank in India1, with deep roots and longstanding heritage Significant presence Strategic focus segments 170 years6 of heritage Payments Employees Wholesale: HSBC’s 4th branch globally Global and local MNCs; banks; SMEs; startups Active member of regulatory FX Trade com
Slide 19: Competitive environment
India Competitive environment HSBC1 Local peer 1 Local peer 2 Local peer 3 Local peer 4 FY22 revenue $1.3bn $3.5bn $7.1bn $9.7bn $14.3bn Indian bank impairments (GNPA, %)3 FY18-FY22 revenue For financial years ending 31 March 10% 9% 14% 16% 16% CAGR Indian NPA crisis Retail PBT as a % <5% 20% 29% 44
Slide 20: HSBC India's starting position
India HSBC India’s starting position Revenue, $bn PBT, $bn +10% +12% CAGR CAGR 1.4 1.5 0.9 1.3 0.8 0.8 1.2 0.7 1.0 0.6 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 ECL charge, $m (20) (10) (123) (1) (2) Lending, $bn Deposits, $bn +12% +8% CAGR CAGR 14.9 24.5 22.6 13.6 20.2 10.8 10.8 11.6 14.2 1
Slide 21: International connectivity
India International connectivity #IndiasGlobalBank Well balanced client business1 across regions Client managed location view, FY22 North America Capture larger share of the fast-growing international customer wallet Latin America MENA Plan to increase the existing strength of India's linkages w
Slide 22: Leveraging India's digital ecosystem to help enable customer acquisition and balance sheet expansion
India Leveraging India’s digital ecosystem to help enable customer acquisition and balance sheet expansion Themes Key opportunities Actions Partnerships Digital Public Real-time, consent-based journeys Join Account Aggregator, ONDC Account aggregator Infrastructure (DPI) New base of customers
Slide 23: Integrate with corporate ecosystems to help fortify leading wholesale proposition
India Integrate with corporate ecosystems to help fortify leading wholesale proposition Themes Actions 2022 highlights Help enable a ‘soft landing’ in India and around the world Inbound / employee banking new customer growth +21% outbound vs. 2021 Generate second-order leads for WPB and CMB AP
Slide 24: Tapping into DPI and leveraging wholesale to capture opportunities for WPB
India Tapping into DPI and leveraging wholesale to capture opportunities for WPB Themes Actions 2022 highlights1 +26% Private Bank expected to launch in July 2023; bringing the full wealth continuum in- Wealth 1,723 country 1,365 Retail lending, $m Retail credit ‘AnytimeCredit’ expected to launc
Slide 25: India
India 24
Slide 26: Key messages
India Key messages 1 There is a clear opportunity for international banks to compete with local banks in India 2 We are favourably positioned to benefit from external developments and our global network 3 Early signs indicate that our strategy is working; we are looking to increase investment and fo
Slide 27: Rest of Asia
Rest of Asia Surendra Rosha | Co-CEO, Asia Pacific Philip Fellowes | Chief of Staff, Asia Pacific
Slide 28: Rest of Asia is attractive for HSBC
Rest of Asia Rest of Asia is attractive for HSBC Rest of Asia GDP $12.2tn1, c.33% of Asia >10% of the adult population in Australia Pacific total and Taiwan are forecast to have >$1m Rest of Asia trade $7.5tn2, c.44% of Asia wealth by 2030 (USA c. 8.5%)6 GDP & trade Pacific total Adults with
Slide 29: Strengthening our position and franchise in Rest of Asia
Rest of Asia Strengthening our position and franchise in Rest of Asia Rest of Asia PBT contribution to Asia, $bn Euromoney Survey 11.6 13.0 By business, $bn Growth vs. #1 Cash Manager for FY21 Corporates Asia Pacific, 2022 WPB 0.3 +40% Hong Kong, 11.0 CMB 0.8 +89% #1 Euromoney Trade mainland China,
Slide 30: Pan-regional wholesale capabilities to serve clients
Rest of Asia Pan-regional wholesale capabilities to serve clients Capabilities across markets ASEAN Australasia North Asia South Asia MY ID PH TH VN AU NZ JP KR TW LK BD MU Cash & Product capability in all markets payments Leading cash manager in 6 markets1 Transaction Banking Product capability in
Slide 31: WPB capabilities focused on high potential markets
Rest of Asia WPB capabilities focused on high potential markets Asia continues to drive financial wealth Strategic focus creation Large and diversified client base, c.1m total customers, Total financial wealth for Asia ex. Japan1, $tn Malaysia including >100k Premier customers Wealth manager wit
Slide 32: Malaysia opportunities
Rest of Asia Malaysia opportunities Economic significance HSBC relevance >25% per annum export growth in c.$500bn foreign merchandise Presence in the country since 1884 2021 and 20221 trade2 First locally incorporated foreign bank to be awarded an Islamic banking subsidiary licence in Malaysia
Slide 33: HSBC Malaysia: a full-service international bank, strong global connectivity
Rest of Asia HSBC Malaysia: a full-service international bank, strong global connectivity Revenue, $bn Franchise +11% HSBC Bank Malaysia is a full-service bank 0.7 HSBC Amanah is the largest International Islamic bank by assets1 0.7 Onshore and offshore wholesale capabilities in Trade, Payment
Slide 34: Australia opportunities
Rest of Asia Australia opportunities Economic significance HSBC relevance High GDP per capita (ranked 10th 4th destination country in Asia Pacific Presence in Australia since 1965 globally and 2nd in APAC)1 for Foreign Direct Investments2 Capturing opportunities across all segments: retail, corp
Slide 35: HSBC Australia: a full-service international bank, strong global connectivity
Rest of Asia HSBC Australia: a full-service international bank, strong global connectivity Revenue, $bn Franchise +6% HSBC Australia is a full-service bank 0.9 1.0 A leading international bank with onshore and offshore trade, payments, markets, custody and capital markets product capabilities
Slide 36: International markets and other: significant economies with relevant HSBC presence
Rest of Asia International markets and other: significant economies with relevant HSBC presence Economic significance HSBC relevance HSBC operates in 12 international markets7 with >100 years 28% of Asia-Pacific GDP Number of millionaires to increase by average presence ($10.1tn in 2022)1 55% by 2
Slide 37: International markets and other: profitable and growing franchise
Rest of Asia International markets and other: profitable and growing franchise Revenue, $bn Franchise +17% Wholesale-led franchise across 12 markets – c.11k corporate and institutional clients; c.180k private, wealth and affluent customers 2.8 2.4 Diversified franchise with >$100m revenue in 9 m
Slide 38: Key messages
Rest of Asia Key messages 1 Strong GDP growth outlook, favourable demographics, increasing wealth pools 2 Solid FY22 financial contribution, representing 15% of total Asia PBT Franchise intrinsically linked to Asia and the rest of the world; wholesale capabilities are part of 3 an integrated pan-reg
Slide 39: CMB South & South-East Asia
CMB South & South-East Asia Amanda Murphy | Head of CMB, South & South-East Asia
Slide 40: Overview
CMB S&SEA Overview Fresh focus and targeted investment since 2022 1 Specialist support in Singapore covering S&SEA, including Sustainable Finance and Structured Finance teams Clear strategy to focus on previously under-penetrated opportunities around S&SEA A diversified business with scale in Co
Slide 41: S&SEA represents one of the most exciting growth opportunities for CMB
CMB S&SEA S&SEA represents one of the most exciting growth opportunities for CMB S&SEA has strong growth characteristics …with significant potential for further growth >2bn potential consumers across India and Regional GDP growth will outpace global growth figures8 ASEAN1…with a population media
Slide 42: Our business is diversified across markets, with a clear coverage strategy
CMB S&SEA Our business is diversified across 13 markets, with a clear coverage strategy FY22 CMB Asia revenue, $bn Customer segment coverage1 2.3 4.9 7.2 Turnover threshold Customers Global >$5bn Banking S&SEA Hong Kong and mainland China Large $500m-5bn c.1k S&SEA revenue contribution by market Cor
Slide 43: The leading international bank in S&SEA with opportunity to grow further
CMB S&SEA The leading international bank in S&SEA1 with opportunity to grow further HSBC is already the leading international bank across S&SEA1, and we are now targeting to do more with our clients in each market “Most Important Bank” in our scale markets1 “Most Important Bank” in our international
Slide 44: Strong growth in FY22 across the business and region
CMB S&SEA Strong growth in FY22 across the business and region Asia CMB FY22 financials, $bn S&SEA FY22 financials FY22 S&SEA highlights Revenue $2.3bn 2.3 4.9 7.2 revenue Double-digit revenue growth across all +35% vs. FY21 segments, with non-NII growth of 11% Loans Acquired >5,000 new customer
Slide 45: Our aspiration is to significantly scale our business across S&SEA
CMB S&SEA Our aspiration is to significantly scale our business across S&SEA To achieve this, CMB aims to do three things… 1 Deepen share of wallet from our customers Scale up cross-border revenue Increase revenue from strategic clients (via Corporate Finance capabilities) Deliver a material i
Slide 46: Scale up cross-border revenue through highly connected global network
CMB S&SEA Scale up cross-border revenue through highly connected global network CMB S&SEA is highly international A dedicated client-centric offering AsiaMoney 2022 Best International Bank Significant portion of client business1 booked in Leverage Singapore as an emerging regional hub Indonesia,
Slide 47: Increase revenue from strategic clients
CMB S&SEA Increase revenue from strategic clients Structured Banking Private Capital CMB Origination Focus Focus Focus Executing bespoke “first-of-its-kind” Dedicated financial sponsor origination Drive Capital Markets & Advisory revenue financing in emerging sectors and execution team support
Slide 48: Deepen share of wallet by capturing collaboration opportunities across the firm
CMB S&SEA Deepen share of wallet by capturing collaboration opportunities across the firm Positive momentum with collaboration revenue FY22 highlights Further opportunities Global Banking & Markets (GBM) >250 referrals Grow market share of Capital Finance revenue Double digit from CMB to Increas
Slide 49: Aim to be the leading New Economy Bank across S&SEA
CMB S&SEA Aim to be the leading New Economy Bank across S&SEA What is the opportunity? How are we delivering the opportunity? What is our ambition by 2025? ASEAN ‘new economy’ sector projected to We are growing our New Economy business Increase the number of unicorns banked grow to $300bn by 202
Slide 50: We are capturing new opportunities through our Sustainable Finance strategy
CMB S&SEA We are capturing new opportunities through our Sustainable Finance strategy Strong momentum in deploying SF assets Case studies Key priorities Support the net zero transition of our customers Mar-23 Mar-23 Australia, Singapore India, Philippines Capture sustainable infrastructure needs
Slide 51: Key messages
CMB S&SEA Key messages 1 South and South-East Asia represents one of the most exciting growth opportunities for CMB 2 We are well positioned to capture this opportunity and have already invested to unlock this growth 3 Our strategy and investment is working – and we delivered substantial growth in a
Slide 52: GBM Asia
GBM Asia Stuart Lea | Head of Global Banking, South Asia Monish Tahilramani | Head of Markets and Securities Services, Asia Pacific
Slide 53: Key highlights
GBM Key highlights Diversified business delivering resilient revenue growth with market leading capabilities across our core product 1 suite 2 With a track record of execution and a business positioned for continued growth Highly relevant to clients doing business in Asia as they increasingly look t
Slide 54: Asia GBM at a glance
GBM Asia GBM at a glance We are a diversified business delivering revenue growth and market share gains… …with market leading product capabilities 2022 revenue split, booked basis 2022 client business, booked basis Product Client1 Global Foreign Exchange Asian clients #1 Cash #1 Trade Finance Global
Slide 55: Track record of execution and positioned for continued growth
GBM Track record of execution and positioned for continued growth Revenue, $bn Portfolio repositioning Reshaped and growing client base FY21 6.9 Repositioned capital to Asia +6% Build out of capabilities in strategic activities FY22 7.4 Cost discipline whilst optimising Asia footprint PBT, $
Slide 56: We are well positioned to capture growth opportunities connected with trends and changes
GBM We are well positioned to capture growth opportunities connected with trends and changes we see in the external environment Supply chain Rapidly growing 1 reorientation 2 Wealth pool 3 Market evolution Asia positioning Asia positioning Asia positioning Leading bank in Asia with c.7% revenue
Slide 57: International clients are at the centre of our Asia revenues driving stable, sticky flows
GBM International clients are at the centre of our Asia revenues driving stable, sticky flows c.45% of client business booked in Asia from clients managed outside Asia 2022 client business1, $bn Inbound flows primarily driven by Payments, Trade, FX and Securities Services Non-Asian clients booking c
Slide 58: Our capabilities drive growth across other business lines through collaboration
GBM Our capabilities drive growth across other business lines through collaboration GBM’s broad and diverse franchise, drive …which has delivered a strong history of …and we are positioned to capture revenues for other client businesses… collaboration revenue… further growth opportunities Collaborat
Slide 59: Capturing the rapid growing wealth pool in Asia
GBM Capturing the rapid growing wealth pool in Asia Our strategy to accelerate growth Strong market position in Asia Wealth Management Platform of the Fixed Income ESG Year, Excellence Performance in ESG Investing Products1 Private Credit & Solutions QIS Digital Assets FX Overlay Product s
Slide 60: Playing to our strengths: Foreign Exchange
GBM Playing to our strengths: Foreign Exchange Market Leadership in Asia Our strategy to accelerate growth A leading bank in Asia with ~12% FX revenue market share1 including ~14% with institutional clients in EM FX2 Our Hong Kong presence, while being a leading international bank in mainland Chin
Slide 61: Playing to our strengths: Securities Services
GBM Playing to our strengths: Securities Services Market Leadership in Asia Our strategy to accelerate growth #1 Bank in Asia with c.15% revenue market share1 Enhance our offering by building capabilities for global institutional clients innovating and going digital Enhance our Won 40 awards d
Slide 62: Playing to our strengths: Global Payments Solutions
GBM Playing to our strengths: Global Payments Solutions Market leadership in Asia Our strategy to accelerate growth #1 Bank in Asia with c.4% revenue market share, up c.2% YoY1 Build digital ‘one stop shop’ payments solutions 34% Market Penetration2 Modularise our offering and support Support ou
Slide 63: Managing ESG risk whilst commercialising the opportunity
GBM Managing ESG risk whilst commercialising the opportunity Market leadership in Asia Commercialisation of the ESG opportunity Asia's Best Bank for North Asia Best Bond Advisor2 Proactive engagement with clients to support their Sustainable Finance transition, delivering client and shareholder va
Slide 64: Key messages
GBM Key messages Diversification across the business by geography and product delivers resilient revenue growth and market 1 share gains Asia is critical to GBM globally; Asia GBM also relies on EMEA / Americas for inbound revenue as markets 2 open up, and for access to deeper capital markets Our in
Slide 65: Asia GBM at a glance (footnotes)
GBM Asia GBM at a glance (footnotes) 1. Client managed location view. Refer to glossary for definition of client business 2. Source: Coalition Greenwich Competitor Analytics – FY22. Based on HSBC’s internal business structure and internal revenue numbers, and the following peer group: BofA, BARC, BN
Slide 66: Sustainable Finance
Sustainable Finance Justin Wu | Co-Head of Climate Change, Asia Pacific
Slide 67: Decarbonisation investment has topped the first $1tn, with Asia leading the way
Sustainability Decarbonisation investment has topped the first $1tn, with Asia leading the way Asia Pacific (APAC) accounted for 59% of the global energy transition investment in 2022, representing a 53% YoY growth Renewables and Electrified transport together accounted for 91% of the $654bn inv
Slide 68: But a lot more investment is needed to be on track for net zero emissions
Sustainability But a lot more investment is needed to be on track for net zero emissions The global annual investment requirement is significant, averaging $3.5tn per year to 2050, more than half of that needs to come from Asia Power: $2,400bn Buildings: $500bn Removals: $130bn Renewables, networks,
Slide 69: Asian companies are expected to supply climate technology to the world
Sustainability Asian companies are expected to supply climate technology to the world, a growing opportunity for trade and investment Component supply by location Hydrogen Wind Source: BloombergNEF 68
Slide 70: HSBC is focused on helping to deliver a net zero global economy
Sustainability HSBC is focused on helping to deliver a net zero global economy Our Group ambitions Key outcomes Become a net zero bank Reduced greenhouse emissions in Asian operations by 41% vs 2020 baseline Be net zero in our operations and supply Published supply chain emissions as part of sco
Slide 71: HSBC is recognised as a leader in sustainable finance
Sustainability HSBC is recognised as a leader in sustainable finance Our ambition is to be the preferred financial partner for our clients, with sustainable finance and net zero transition being a key focus With our net zero and climate transition ambitions we have made progress in Asia with a track
Slide 72: Working with stakeholders to shape green finance policy discussions in Asia
Sustainability Working with stakeholders to shape green finance policy discussions in Asia Business and industry forums Policy-maker engagement and multilateral partnerships Just Energy Transition Partnership Energy Transition Mechanism Shaping industry and policy discussions in Asia Partnerships wi
Slide 73: Supporting our customers to transition
Sustainability Supporting our customers to transition Our biggest impact is by working with our customers to support their transition We’ll engage closely with clients on their transition plans, helping to finance and invest in the technologies and infrastructure needed to succeed in the transit
Slide 74: Financed emissions targets to guide our ambition
Sustainability Financed emissions targets to guide our ambition Date of disclosure/ Sector planned disclosure date Oil & Gas Feb 2022 Power Thermal Coal Dec 2022 Cement Iron, Steel & Feb 2023 Aluminum Automotive & Aviation Agriculture Commercial Real Estate 2024 Residential Real Estate Shipping 73
Slide 75: Embedding sustainability into HSBC
Sustainability Embedding sustainability into HSBC Our sustainability target operating model is being implemented to embed sustainability into all business and functions Sustainability Centre of Excellence established to activate commercial opportunities and enable strategy execution Enhance sustaina
Slide 76: Key messages
Sustainability Key messages 1 Transition to net zero is a significant opportunity for Asia HSBC is well positioned to capture this opportunity; we bank some of the largest companies in 2 Asia and can help to finance their transition journey Our international connectivity will help enable Asia’s new
Slide 77: Appendix
Appendix Zp usec
Slide 78: Glossary
Glossary AI Artificial Intelligence ECM Equity capital markets AM Asset Management EMEA Europe, Middle East, and Africa APAC Asia Pacific FDI Foreign direct investment API Application Programming Interface FI Financial insitution The Association of Southeast Asian Nations (ASEAN) is a trade bloc of
Slide 79: Glossary
Glossary RHQ Regional headquarters RWA Risk-weighted asset South and South-East Asia. HSBC financials for S&SEA represent HSBC Asia, S&SEA excluding Hong Kong and mainland China SF Sustainable finance SG / SGP Singapore SME Small and medium sized enterprises UHNW Ultra high net worth UHNWI Untra hig
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