Hsbc Holdings Plc · LSE:HSBA
Hsbc — HSBC Finance — Q3 2011 Earnings Presentation
17 slides from Hsbc's earnings presentation, Nov 9, 2011
Slide 1: HSBC Finance Corporation IFRS Management Basis
HSBC Finance Corporation IFRS Management Basis 9 November 2011 1
Slide 2: Disclosure Statement
Disclosure Statement This presentation, including the accompanying slides and subsequent discussion, may contain certain forward-looking information with respect to the financial condition, results of operations and business of HSBC Finance Corporation. Any forward-looking information represents exp
Slide 3: 3Q 2011 Financial Results
HSBC Finance Corporation 3Q 2011 Financial Results (1) 3Q 2010 2Q 2011 3Q 2011 US$m Card and Consumer Card and Consumer Card and Consumer Total Total Total Retail Svcs and Other(2) Retail Svcs and Other(2) Retail Svcs and Other(2) Net operating income before loan impairment charges excluding changes
Slide 4: 3Q 2011 Financial Results (year to date)
HSBC Finance Corporation 3Q 2011 Financial Results (1) 3Q 2010 YTD 3Q 2011 YTD US$m Card and Consumer Card and Consumer and Total Total Retail Svcs and Other(2) Retail Svcs Other(2) Net operating income before loan impairment charges excluding changes 4,696 1,495 6,191 4,114 1,343 5,457 in Fair Valu
Slide 5: Continued reduction of balance sheet in the US
HSBC Finance Corporation Continued reduction of balance sheet in the US Customer loans(1), (3), (4), US$bn 124.8 120.0 116.7 108.2 102.0 93.5 91.3 86.0 83.2 81.0 3Q09 4Q09 Pre 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 180 day 2+ Delinquency (1), (2), (3), (4), US$bn 20 16.8 17.1 25% 15 13.6 20% 12.1 1
Slide 6: US customer loans – Run-off portfolio and Label
HSBC Finance Corporation US customer loans – Run-off portfolio and Credit Card and Private Label Customer loans(1), (3) Run-off portfolio, US$bn 86.6 82.2 78.9 1.0( 2 ) 73.3 68.8 12.9 11.7 1.0( 2 ) 1.0( 2 ) 10.8 9.8 61.3 58.4 8.8 55.7 53.5 51.5 8.1 7.5 6.8 42.3 40.9 39.5 6.3 5.8 37.9 36.2 34.7 33.3
Slide 7: US Mortgages: Continuing to shrink the Mortgage Services portfolio
HSBC Finance Corporation US Mortgages: Continuing to shrink the Mortgage Services portfolio Mortgage Services Customer loans, US$bn 23.8 22.8 21.8 20.7 19.5 18.5 17.6 16.8 16.1 15.5 3Q09 4Q09 Pre 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 180 day Mortgage Services 2+ Delinquency(1), US$bn 18.1% 20.0% 1
Slide 8: US Mortgages: Continuing to shrink the Secured Consumer Lending mortgage portfolio
HSBC Finance Corporation US Mortgages: Continuing to shrink the Secured Consumer Lending mortgage portfolio Secured Consumer Lending Customer loans, US$bn 42.3 40.9 39.5 37.9 36.2 34.7 33.3 32.1 31.1 30.2 3Q09 4Q09 Pre 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 180 day Secured Consumer Lending 2+ Delin
Slide 9: Impairment allowance
HSBC Finance Corporation Impairment allowance Mortgage Services Real Estate Secured, US$m 3,467 451 460 (530) 353 463 1,885 304 56 417 398 384 1,830 (960) (640) (23) (650) (506) (452) (353) (337) (472) Sep- 4Q 4Q 4Q LIC 1Q 1Q LIC 2Q 2Q LIC 3Q 3Q LIC Other Sep- 4Q 4Q LIC 1Q 1Q LIC 2Q 2Q LIC 3Q 3Q LIC
Slide 10: Managing risk: Credit Card
HSBC Finance Corporation Managing risk: Credit Card(1) Credit Card Customer Loans, US$bn 23.9 23.2 20.9 20.0 19.3 19.3 17.9 17.7 17.6 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Credit Card 2+ Delinquencies(2), US$bn 2 1.8 1.8 16% 1.5 12% 1.2 1.0 0.9 1 8% 0.7 0.7 0.6 7.6% 7.7% 7.0% 5.9% 4% 5.3% 4.8
Slide 11: Managing risk: Private Label
HSBC Finance Corporation Managing risk: Private Label(1) Private Label Customer Loans, US$bn 15.3 15.6 14.0 13.2 13.6 12.9 12.4 12.0 11.9 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 Private Label 2+ Delinquencies(2), US$bn 1 12% 0.7 0.6 8% 0.5 0.5 0.5 0.4 0.4 0.3 0.3 4% 4.4% 4.2% 3.9% 3.8% 3.6% 3.1
Slide 12: Impairment allowance
HSBC Finance Corporation Impairment allowance Credit Card and Private Label(1), US$m 4,122 1,170 536 782 485 2,581 (1,301) (1,213) (25) 371 (1,095) (880) 257 446 452 1,632 (738) (32) (703) (558) (444) Sep- 4Q 4Q 1Q 1Q 2Q 2Q 3Q 3Q Other Sep- 4Q 4Q 1Q 1Q 2Q 2Q 3Q 3Q Other Sep- 09 W/O LIC W/O LIC W/O L
Slide 13: Managing personal non-credit card run-off
HSBC Finance Corporation Managing personal non-credit card run-off Personal Non-Credit Card and Other Unsecured Customer Loans, US$bn 12.9 11.7 10.8 9.8 8.8 8.1 7.5 6.8 6.3 5.8 3Q09 4Q09 Pre 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 180 day Personal Non-Credit Card and Other Unsecured 2+ Delinquencies
Slide 14: Loan impairment charges
HSBC Finance Corporation Loan impairment charges(1), (2), (3), (4) Credit Card and Private Label, US$bn Total HSBC Finance Corp, US$bn 25% 4 25% 1.2 1.2 20% 1 0.8 15% 3.2 0.5 0.5 0.5 10% 20% 11.6 % 12 .1% 0.4 0.4 3.0 9 .2 % 0.3 3 6 .2 % 5% 5 .8 % 5 .9 % 5 .9 % 4 .6 % 3 .3 % 0 0% 3Q09 4Q09 1Q10 2Q10
Slide 15: Amount written-off
HSBC Finance Corporation Amount written-off (1), (2), (3), (4) Credit Card and Private Label, US$bn Total HSBC Finance Corp, US$bn 2 30% 7 40% 6.5 25% 1.3 1.3 1.2 20% 35% 1.1 6 1 0.9 15% 0.7 0.7 13 .3 % 13 .4 % 13 .1% 12 .8 % 0.6 0.5 10% 10 .7 % 30% 9 .2 % 8 .9 % 7 .4 % 5% 5 6 .1% 0 0% 3Q09 4Q09 1Q1
Slide 16: 2+ Delinquency
HSBC Finance Corporation 2+ Delinquency(1), (2), (3), (4) Credit Card and Private Label, US$bn Total HSBC Finance Corp, US$bn 3 15% 20 30% 2.5 2.4 2.0 2 1.7 10% 17.1 1.5 16.8 1.3 25% 1.1 0.9 1.0 1 6 .4 % 6 .3 % 5% 5 .8 % 15 5 .0 % 4 .6 % 4 .1% 13.6 3 .5 % 3 .3 % 3 .0 % 0 0% 20% 3Q09 4Q09 1Q10 2Q10 3
Slide 17: Impairment allowance
HSBC Finance Corporation Impairment allowance(1), (2), (3), (4) Credit Card and Private Label, US$bn Total HSBC Finance Corp, US$bn 5 20% 16 20% 4.1 4.0 14.8 14.8 3.3 15% 3.0 2.6 2.2 10% 10 .5 % 1.8 16% 10 .3 % 9 .5 % 1.6 1.6 9 .0 % 8 .0 % 6 .7 % 5% 12 11.5 5 .8 % 5 .5 % 5 .5 % 10.3 0 0% 3Q09 4Q09 1