Hsbc Holdings Plc · LSE:HSBA
Hsbc — Goldman Sachs conference 2021
39 slides from Hsbc's conference presentation, June 2021
Slide 1: HSBC Wealth and Personal Banking
HSBC Wealth and Personal Banking Nuno Matos, WPB CEO June 2021 0
Slide 2: WPB overview
VW/PB overview
Slide 3: WPB provides retail banking and wealth products across 37 markets
Overview Retail Wealth Private Bank Insurance Asset Management WPB provides retail banking and wealth products and services across the customer spectrum in 37 markets worldwide As at FY20 Anchored by our scale markets WPB client base Eligibility criteria1 UHNW 2k2 Other Hong Kong >$30m Active High n
Slide 4: A high-return business, with a strategy to accelerate growth
Overview Retail Wealth Private Bank Insurance Asset Management A high-return business, with a strategy to accelerate growth Our strategy A high-return business WPB 2020 9.1% RoTE1 ‘Opening Up a World of Opportunity’ 2019 19.7% 1 2 3 4 5 % of HSBC Group (FY20) WPB Rest of Group Expand our Strategic c
Slide 5: Wealth is a meaningful part of WPB
Overview Retail Wealth Private Bank Insurance Asset Management Wealth is a meaningful part of WPB A meaningful part of WPB revenue Largely driven by Asia WPB adjusted revenue, FY20 Asia Wealth – adjusted Rest of $7.8bn revenue by region world 67% $5.2bn 36% Wealth $22.0bn $7.8bn 1.0 Investment distr
Slide 6: Manufacturing and distribution capabilities supporting customers' wealth needs
Overview Retail Wealth Private Bank Insurance Asset Management With manufacturing and distribution capabilities supporting our customers’ wealth needs HSBC client spectrum External WPB distribution Personal UHNW & CMB and Institutional / Premier Jade GBM clients third parties banking HNW WPB manufac
Slide 7: Asian Wealth: an exciting growth opportunity where we have a right to win
Overview Retail Wealth Private Bank Insurance Asset Management Asian Wealth: an exciting growth opportunity where we have a right to win Strong structural growth Distinct competitive advantages Global Wealth AUM1 CAGR 4.7% CAGR Our full ‘client continuum’ >4m Mass affluent to UHNW clients 8.5% of GP
Slide 8: Asian Wealth: a plan to grow, backed by a bold investment programme
Overview Retail Wealth Private Bank Insurance Asset Management Asian Wealth: a plan to grow, backed by a bold investment programme Our growth ambitions1 Backed by a bold investment programme Grow Asian wealth AUM faster than the market >$3.5bn Growth investment in WPB 2 Planned hires for client faci
Slide 9: Key growth opportunities in Asian Wealth
Overview Retail Wealth Private Bank Insurance Asset Management Key growth opportunities in Asian Wealth Retail Wealth Private Banking Insurance Asset Management 8
Slide 10: Retail Wealth
Retail Wealth
Slide 11: Retail Wealth is a competitive differentiator for HSBC
Overview Retail Wealth Private Bank Insurance Asset Management Retail Wealth is a competitive differentiator for HSBC Retail Wealth is the largest revenue contributor to our Wealth franchise Our strategy to capture growth Retail Wealth covers Personal Banking, Premier and Jade $3.2bn of investme
Slide 12: Making investing easy: full wealth proposition in your mobile banking app
Overview Retail Wealth Private Bank Insurance Asset Management Making investing easy: our vision for a full wealth proposition in your mobile banking app Full digital investment account opening in your mobile app Journeys tailored to your level of sophistication View all of your portfolio — funds, e
Slide 13: Journeys tailored to your level of sophistication
Overview Retail Wealth Private Bank Insurance Asset Management Journeys tailored to your level of sophistication Whether you are just starting your journey… Tell us your And we will create investment needs personalised and goals recommendations for you 12
Slide 14: Journeys tailored to your level of sophistication
Overview Retail Wealth Private Bank Insurance Asset Management Journeys tailored to your level of sophistication Or know exactly what you want ! Would you like to see how your portfolio performs in our Covid-19 scenario? Click and And optimise your transact portfolio with individual advanced analyti
Slide 15: Supported by our people when our customers need us
Overview Retail Wealth Private Bank Insurance Asset Management Supported by our people when our customers need us In-app chat messaging 24/7 contact centre Video chat via Zoom In-branch meeting 14
Slide 16: Deploying these capabilities into more markets
Overview Retail Wealth Private Bank Insurance Asset Management Deploying these capabilities into more markets Our scalable technology stack will enable us to deploy our retail wealth capabilities to more markets Deploying in our top markets from 2021 - 2023 >1,400 planned new frontline colleagues in
Slide 17: Private Banking
Private Banking
Slide 18: A truly global private bank with opportunities to capture share
Overview Retail Wealth Private Bank Insurance Asset Management A truly global private bank with opportunities to capture share A truly global private bank Opportunities to capture share Presence in 11 booking centres covering all key wealth hubs $1.7bn of revenue in FY20, with Asia contributing
Slide 19: Stepping up our UHNW capabilities
Overview Retail Wealth Private Bank Insurance Asset Management Stepping up our UHNW capabilities New specialist client Bespoke products leveraging World-class platforms and digital coverage model strength of HSBC manufacturing Newly-created team of specialist Exclusive access to institutional-st
Slide 20: Planning to nearly double our front office bankers in Asia
Overview Retail Wealth Private Bank Insurance Asset Management Planning to nearly double our front office bankers in Asia over the next five years, to deepen footprint and expand into new markets Hong Kong Singapore Mainland China Taiwan Grow UHNW and capture Scale-up Singapore as a Develop an advis
Slide 21: Insurance manufacturing
Insurance manufacturing
Slide 22: Insurance manufacturing: a key component of HSBC's Wealth offering
Overview Retail Wealth Private Bank Insurance Asset Management Insurance manufacturing: a key component of HSBC’s Wealth offering, with opportunities for significant growth A key component of HSBC Wealth Opportunities for significant growth Manufacturing savings & investment, health and protection
Slide 23: Mainland China: Pinnacle is our engine of growth
Overview Retail Wealth Private Bank Insurance Asset Management Mainland China: Pinnacle is our engine of growth A 10x increase in physical distribution (VNB1, $m) China Insurance and Wealth expansion through Pinnacle Select international peers Holistic financial planning, addressing a critical gap i
Slide 24: Pinnacle: advanced digital capabilities
Overview Retail Wealth Private Bank Insurance Asset Management Pinnacle: advanced digital capabilities, maximising convenience and productivity Connect with customer Engaging mobile content through WeChat Advanced AI guides the wealth planner to achieve optimal client outcomes 23
Slide 25: Hong Kong: a fast-growing market where we plan to take further share
Overview Retail Wealth Private Bank Insurance Asset Management Hong Kong: a fast-growing market where we plan to take further share Hong Kong continues to be a fast-growing market With a plan to take further share Hong Kong life insurance market (ANP)1 +11% ~$30bn Well+, our digitally-integrated ret
Slide 26: Global Asset Management
Global Asset Management
Slide 27: A global asset manager, with a focus on Asia
Overview Retail Wealth Private Bank Insurance Asset Management A global asset manager, with a focus on Asia A top 50 global asset manager1 Strategy to drive growth $602bn AUM (+19% YoY) $1bn revenue contribution to WPB in FY20 Increase our focus on high-value-add products and Presence in 24 co
Slide 28: Increase our focus on high-value-add products and solutions
Overview Retail Wealth Private Bank Insurance Asset Management Increase our focus on high-value-add products and solutions and deepen the product shelf High-value-add products and solutions Initiatives in Retail Wealth, Private Banking and Insurance will increase demand for Asset Management products
Slide 29: Conclusion
Conclusion
Slide 30: Conclusion
Conclusion Our opportunity in Asian Wealth is We plan to grow wealth revenues the most compelling in WPB >10% CAGR — faster than market We are putting the right With >$3.5bn growth investment capabilities in place – people and and an additional 5k client-facing platforms – to capture this opportunit
Slide 31: Appendix
Appendix
Slide 32: WPB FY20 adjusted financial performance
Appendix WPB FY20 adjusted financial performance $m FY20 FY19 Δ Wealth 7,818 8,633 (9)% Investment distribution 3,209 3,268 (2)% Life insurance manufacturing 1,816 2,464 (26)% Private Banking 1,746 1,878 (7)% Asset Management 1,047 1,023 2% Personal Banking 12,938 15,655 (17)% Other1 1,257 1,277 (2)
Slide 33: Wealth: additional detail
Appendix Wealth: additional detail A meaningful part of WPB Growing Wealth balances Adjusted revenue, $bn Global reported Wealth balances, $bn 25.6 12% 1.0 1,588 1.9 22.0 1,421 2.5 1.0 o/w managed by HSBC 394 $7.8bn Wealth revenue* Asset Management 1.7 3.3 361 $66bn 1.8 3.2 o/w $5.2bn is from Asia o
Slide 34: Private bank: additional detail
Appendix Private bank: additional detail Our product suite A fast growing market1 Wealth Market ($1m+ net worth), $tn $20m+ $5-20m $1-5m Annuities Global Wealth Asia (ex-Japan) Brokerage & trading +5% CAGR CAGR +12% 146 2019-2024 +8% 2019-2024 24 Lending (incl. Lombard lending and specialised asset)
Slide 35: HSBC Life: additional detail
Appendix HSBC Life: additional detail HSBC Life today Key Performance Metrics $2.0bn of manufacturing revenue in FY20, of which: $1.9bn generated in WPB FY20 manufacturing revenue Reported ANP and VNB2, $m by region 33% 34% 36% 34% In addition, WPB generated $0.8bn of Other insurance distributio
Slide 36: HSBC Life: Hong Kong Health and Wellness platforms
Appendix HSBC Life: Hong Kong Health and Wellness platforms Direct-to-customer: Well+ Employee wellbeing and benefits: Benefits+ Launched Well+, our retail health and wellbeing Launched Benefits+ in November 2020 platform, in December 2020 Digitally-integrated life and health solutions for F
Slide 37: Asset Management: additional detail
Appendix Asset Management: additional detail Balanced business across geographies, products & clients FY20 FUM by region FY20 product mix FY20 client mix Equity 1% Liquidity 11% 1% 29% $602bn Other AMG Fixed Income Alternatives 58% Multi-asset Asia North America Retail External wholesale Europe Lati
Slide 38: 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
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