Hsbc Holdings Plc · LSE:HSBA
Hsbc — H1 2016 Earnings Presentation
13 slides from Hsbc's earnings presentation, August 2016
Slide 1: Global Banking and Markets Investor Update
August 2016 Global Banking and Markets Investor Update 1 Samir Assaf Group Managing Director, Chief Executive, Global Banking and Markets
Slide 2: Important notice and forward-looking statements
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 securities or other finan
Slide 3: HSBC Group highlights
HSBC Group highlights 1st Half 2016 ‒ Reported PBT of $9.7bn down $3.9bn ‒ Adjusted PBT of $10.8bn down $1.8bn; a reasonable performance in the face of considerable uncertainty: 1H16 ‒ Revenue down $1.3bn or 4% versus a strong 1H15: Client-facing GB&M and BSM down Reported PBT (1H15: $13.6bn) Financ
Slide 4: HSBC Group 1H16 Key metrics
HSBC Group 1H16 Key metrics 2015 Full Year Key financial metrics 1H15 1H16 Return on average ordinary shareholders’ equity1 10.6% 7.4% Return on average tangible equity1 12.0% 9.3% Jaws (adjusted) - (0.5)% Dividends per ordinary share in respect of the period $0.20 $0.20 Earnings per share $0.48 $0.
Slide 5: GB&M Investor day targets
GB&M Investor day targets1 RWAs, ($bn) Operating expenses2, ($bn) Revenue2, ($bn) RoRWA, (%) Translated at GB&M ex- 465 399 350 281 8.83 8.3 16.34 13.6 Associates and 2Q16 rates ex-Legacy: 485 GB&M ex- 2.7% Associates and ex- 44 415 Legacy: 1.7% 2.6% 2.5% 360 18.1 44 5 285 9.1 8.5 9.1 8.5 15.1 5 1.6
Slide 6: Progress to date: RWAs
GB&M Progress to date: RWAs Investor day target1, $bn Update on progress1 GB&M ex Associates RWAs: GB&M ex. Associates, ($bn) RWAs: Client facing and Legacy, ($bn) Legacy Credit Client Facing GB&M 492 41 456 4652 3992 3502 2812 30 424 415 424 404 401 390 29 30 25 23 41 359 353 485 30 345 342 29 30 2
Slide 7: Progress to date: Operating expenses
GB&M Progress to date: Operating expenses Investor day target1,3 $bn Update on progress GB&M ex Associates Client Facing GB&M Operating Expense: GB&M ex. Associates,1 ($bn) 8.82,4 8.34 -5% 9.1 9.1 4.7 8.5 8.5 4.5 ‒ Adjusted Costs are down 5% primarily due to lower performance related costs and the i
Slide 8: Progress to date: Revenues
GB&M Progress to date: Revenues Investor day target1, $bn Update on progress1,3 Client Facing revenues are down 8% against 1H15 Client Facing GB&M ex Associates GB&M Client Facing GB&M Significant deals in 2Q16 including: ‒ Lead Sell-Side Adviser to Groupe Casino on the disposal of its Vietnamese su
Slide 9: Appendix
Appendix GB&M Investor Update Appendix 9
Slide 10: GB&M financials
GB&M financials Reported Adjusted 1H 15 1H 16 1H 16 Total Total Total Assoc. Legacy Assoc. Legacy Assoc. GB&M Legacy GB&M GB&M Legacy Credit 97 97 (100) (100) (100) (100) Credit 492 506 506 Rates 1,005 1,116 1,116 Foreign Exchange 1,670 1,491 1,491 Equities 1,108 575 575 Markets 4,372 97 3,587 (100)
Slide 11: GB&M financial overview: Reconciliation of Reported to Adjusted PBT
GB&M financial overview Reconciliation of Reported to Adjusted PBT 2015 Full Year Half year $m 1H15 1H16 vs. 1H15 Reported profit before tax 4,754 4,006 (748) Includes Currency translation (223) - 223 Significant items: Debit value adjustment (‘DVA’) on derivative contracts (165) (151) 14 Fair value
Slide 12: Group financial overview: Reconciliation of Reported to Adjusted PBT
Group financial overview Reconciliation of Reported to Adjusted PBT 2015 Full Year Discrete quarter Half year $m 2Q15 2Q16 vs. 2Q15 1H15 1H16 vs. 1H15 Reported profit before tax 6,569 3,608 (2,961) 13,628 9,714 (3,914) Includes Currency translation 142 - (142) 452 - (452) Significant items: Fair val
Slide 13: Issued by HSBC Holdings plc Group Investor Relations
Issued by HSBC Holdings plc Group Investor Relations 8 Canada Square London E14 5HQ United Kingdom Cover image: Tsing Ma Bridge carries road and rail traffic to Hong Kong International Airport and accommodates large Email: investorrelations@hsbc.com container ships. At HSBC, we help customers across