Hsbc Holdings Plc · LSE:HSBA
Hsbc — Bank of America Merrill Lynch 22nd Annual Financials CEO Conference (September 2017)
16 slides from Hsbc's conference presentation, Sep 26, 2017
Slide 1: World's Best Bank
World’s Best Bank HSBC Holdings plc Bank of America Merrill Lynch 22nd Annual Financials CEO conference Iain J Mackay, Group Finance Director 26th September 2017
Slide 2: HSBC is a leading universal and global bank
HSBC is a leading universal and global bank Our global footprint Priority Network Rep office 67 markets 90 Our network covers % countries accounting for more than 90% of global GDP, trade and capital flows 49 4 Inter- > connected global % businesses share balance sheets Our international and liquidi
Slide 3: Diversified global businesses and regions
HSBC is a leading universal and global bank Diversified global businesses and regions1 1H17 performance by global business, $bn 1H17 performance by region2, $bn RBWM CMB GB&M GPB Europe Asia MENA NAM LAM Adjusted revenue $26.1bn Adjusted revenue $26.1bn 10.0 6.4 7.8 0.8 8.9 12.9 Reported RWAs 117 28
Slide 4: Low volatility GB&M business
Low volatility GB&M business Quarterly GB&M revenue1 c.30% Revenue Total ‒ Equities GB&M ‒ M&A revenue ‒ Rates & Credit quarterly ‒ ECM average ‒ Principal Investments Stable ‒ Other Revenue GB&M revenue c.70% Revenue quarterly ‒ FX average ‒ Lending ‒ DCM ‒ Global Liquidity & Cash Management ‒ Glob
Slide 5: Conservative approach to risk
Conservative approach to risk We operate deposit surpluses in all Long track record of disciplined credit risk Strong capital and leverage position businesses and regions management Customer advances Customer deposits x% A/D ratio By global business, $bn: Reported LICs, $bn CET1 ratio, % >300bps inc
Slide 6: Consistent earnings and a stable dividend
Consistent earnings and a stable dividend Consistency of profitability, 2007 to 2016 Consistency of dividends, 2007 to 2016 65% 80% HSBC also completed $3.5bn of share buybacks between August 2016 and April 2017, and is in the process of executing a further buyback of up to $2bn, which is expected t
Slide 7: Good progress on key strategic actions
Good progress on key strategic actions RWA reduction target achieved Cost discipline Group Reported RWAs, $bn Group Operating Expenses, $bn -27% -2% 1,193 14.9 14.6 876 1H15 1H17 1H15 1H17 GB&M RWAs 377 306 FTE 240k 233k US CML1 Loans & Advances 23 1.6 CER 57% 56% − Annualised run-rate savings of $4
Slide 8: Momentum in loan and revenue growth
Momentum in loan and revenue growth Strong lending growth ($bn) … …and improved revenue performance ($bn) +3% 920 5% 26.1 876 0.9 25.2 1.9 837 899 25.1 7% 7% 23.4 1H16 1H17 1H16 1H17 Total on a constant Balances excl. red-inked Corporate Centre RBWM, CMB, GB&M & GPB currency basis and US CML balance
Slide 9: Continued cost discipline will help drive positive Jaws
Continued cost discipline will help drive positive Jaws Investment Cost Deliver circa $6bn of run-rate efficiency savings savings by the end of 2017; more than the $4.5bn to Inflation $5bn we promised in June 20151 On track to achieve positive Jaws in 2017 Transforming the Group’s ability to d
Slide 10: Conclusion
Conclusion Group financial targets Medium term prospects remain promising Despite geopolitical risks, medium term prospects remain ROE promising >10% ♦ Delivered organic growth in 1H17; 3% revenue growth and 7% or $62bn loan growth (excluding CML run-off and red-inked balances) Positive jaws Costs c
Slide 11: Appendix
Appendix 11
Slide 12: 1H17 Key financial metrics
Appendix 1H17 Key financial metrics Key financial metrics 1H16 1H17 Return on average ordinary shareholders’ equity1 7.4% 8.8% Return on average tangible equity1 9.3% 9.9% Jaws (adjusted)2, 3 (0.5)% 0.5% Dividends per ordinary share in respect of the period $0.20 $0.20 Earnings per share $0.32 $0.35
Slide 13: Reconciliation of Reported to Adjusted PBT
Appendix Reconciliation of Reported to Adjusted PBT Discrete quarter Half year 2Q16 2Q17 ∆ 2Q16 1H16 1H17 ∆ 1H16 Reported profit before tax 3,608 5,282 1,674 9,714 10,243 529 Includes: Currency translation 245 - (245) 520 - (520) Significant items: FVOD5 Fair value gains / losses on own debt 75 - (7
Slide 14: Important notice and forward-looking statements
Appendix 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 ot
Slide 15: Forward looking statements
Appendix Important notice and forward-looking statements Forward looking statements Past performance of HSBC cannot be relied on as a guide to future performance. This presentation and subsequent discussion may contain projections, estimates, forecasts, targets, opinions, prospects, results, returns
Slide 16: Issued by HSBC Holdings plc
Issued by HSBC Holdings plc Group Investor Relations 8 Canada Square London E14 5HQ Cover image: The Hong Kong-Zhuhai-Macau Bridge: one of the most ambitious United Kingdom infrastructure projects in the Pearl River. 16 www.hsbc.com Photography: courtesy of Dragages-China Harbour-VSL JV