Hsbc Holdings Plc · LSE:HSBA

Hsbc — Q1 2025 Earnings Presentation

27 slides from Hsbc's earnings presentation, Apr 29, 2025

  1. Slide 1: HSBC Holdings plc 1Q25 results

    HSBC Holdings plc 1Q25 results Presentation to investors and analysts

  2. Slide 2: CEO remarks

    CEO remarks Georges Elhedery Group CEO

  3. Slide 3: CEO remarks

    CEO remarks 1Q25 results Appendix CEO remarks Strong Q1 performance, continued momentum in our business  $9.5bn PBT / $9.8bn excl. notable items, +11% YoY  18.4% RoTE excl. notable items (annualised), +2.0ppts YoY  $0.10 DPS; up to $3bn share buyback Disciplined in our execution  On track with o

  4. Slide 4: 1Q25 results

    1Q25 results Pam Kaur Group CFO

  5. Slide 5: 1Q25 summary

    CEO remarks 1Q25 results Appendix 1Q25 summary Income statement Income statement, $bn 1Q24 1Q25 Δ, $ Δ, % Revenue 20.4 17.6 (2.7) (13)%  18.4% RoTE excl. notable items (annualised), +2.0ppts YoY ECL (0.7) (0.9) (0.2) (30)% Costs (7.9) (8.1) (0.2) (2)%  $9.5bn PBT / $9.8bn excl. notable items, +11%

  6. Slide 6: Revenue

    CEO remarks 1Q25 results Appendix Revenue Strong fee and other income growth $bn 1Q24 1Q25 Δ Banking NII 10.9 10.6 (0.3) Fee and other income 5.7 7.1 1.4 — Wholesale Transaction Banking 2.5 2.9 0.3 — Wealth 1.9 2.3 0.4 +$0.7bn ‘Other’ includes: — Other 1.3 2.0 0.7  +$0.3bn Debt and Equity markets R

  7. Slide 7: Banking NII

    CEO remarks 1Q25 results Appendix Banking NII Run-rate stable QoQ Banking NII, $bn 10.9 10.8 10.7 10.3 10.6 0.4 0.4 0.2 0.0 0.3 0.3  Run-rate stable QoQ, as the impact of 10.3 10.4 10.6 10.6 rate cuts and a lower day count were offset by the repricing of liabilities and 10.2 structural hedge assets

  8. Slide 8: Wholesale Transaction Banking

    CEO remarks 1Q25 results Appendix Wholesale Transaction Banking YoY growth driven by a strong performance in FX Fee and other income, $bn +13% 2.9 vs. 1Q24 2.5 2.6 2.6 GTS +2% 2.5 (Trade)  Strong performance in FX (up $0.3bn), as volatility GPS (1)% drove higher volumes and client demand for (Payme

  9. Slide 9: Wealth

    CEO remarks 1Q25 results Appendix Wealth YoY growth driven by client activity in Asia, primarily Hong Kong Fee and other income, $bn +23%  High levels of client activity in Asia, primarily Hong 2.3 vs. 1Q24 Kong, drove double-digit growth across Investment 2.0 Asset Distribution, Private Banking an

  10. Slide 10: Credit performance

    CEO remarks 1Q25 results Appendix Credit performance Performance in line with medium-term guidance ECL charge trend, $bn (56)bps (40)bps (37)bps (28)bps (13)bps  $(0.9)bn 1Q25 ECL charge, including $(150)m to reflect the heightened economic (1.3) uncertainty (1.0) (0.9) Macroeconomic environment (0

  11. Slide 11: Costs

    CEO remarks 1Q25 results Appendix Costs On track for ~(3)% target basis cost growth in FY25 Target basis costs, $bn (3.5)% (7.9) 0.0 (0.3)  On track for ~(3)% target basis cost growth in FY25 (7.6)  To date, we have taken actions to realise $0.3bn annualised simplification savings  Expect ~$0.3bn

  12. Slide 12: Customer loans and deposits

    CEO remarks 1Q25 results Appendix Customer loans and deposits Broadly stable QoQ Loans, $bn Deposits, $bn +0% (1)% 2 1,675 (7) 945 (1) 943 7 0 (12) 1,666 (2) 2 5 4Q24 HK UK CIB IWPB Corporate 1Q25 4Q24 HK UK CIB IWPB 1Q25 Centre QoQ: QoQ:  +$7bn CIB, primarily in Asia  $(12)bn CIB driven by season

  13. Slide 13: Capital

    CEO remarks 1Q25 results Appendix Capital Strong capital base CET1 ratio, %1 +0.9 CET1 ratio QoQ (0.5)  French home loans re-classified in 14.9 1Q25: $(1.3)bn loss recognised (0.3) 0.0 (0.2) 14.7 through FVOCI* (0.1) (0.1) Upcoming impacts  Buyback announced 1Q25: ~(0.4)ppts CET1 ratio in 2Q25 4Q2

  14. Slide 14: Targets and guidance

    CEO remarks 1Q25 results Appendix Targets and guidance Heightened macroeconomic uncertainty; targets and guidance unchanged Target Mid-teens RoTE in each of 2025 to 2027, excluding notable items Banking NII Around $42bn (market dependent) ECL charge (30) to (40)bps1 FY25 guidance Costs Growth of ~(3

  15. Slide 15: Appendix

    Appendix

  16. Slide 16: Quarterly financial performance summary

    CEO remarks 1Q25 results Appendix Quarterly financial performance summary $bn 1Q24 2Q24 3Q24 4Q24 1Q25 vs. 1Q24 Income statement metrics: <blank> <blank> <blank> <blank> <blank> <blank> Revenue 20.4 16.3 16.6 11.4 17.6 (2.7) (13)% ECL (0.7) (0.3) (1.0) (1.3) (0.9) (0.2) (30)% Costs (7.9) (8.0) (7.9)

  17. Slide 17: Banking NII — key drivers

    CEO remarks 1Q25 results Appendix Banking NII — key drivers Balance sheet Interest rates Average customer loans, $bn Average customer deposits, $bn1 Key rates — quarterly averages, bps 943 952 940 1,577 1,649 1,648 Source: Bloomberg, as at 28 April 20252 Fed effective rate 5.0 4.9% 4.5% 1M HIBOR 4.7

  18. Slide 18: Wealth metrics

    CEO remarks 1Q25 results Appendix Wealth metrics Invested assets, $bn Invested assets evolution, $bn Insurance CSM balance, $bn +7% 1,331 +7% 1,293 1,331 6 12.8 1,242 11.9 12.1 Of which 10 France* 1.0 22 Rest of 648 655 Group 16 672 11.0 1,293 6 645 676 Asia 570 4Q24 NNIA Market FX and 1Q25 1Q24 4Q2

  19. Slide 19: Costs — supplementary information

    CEO remarks 1Q25 results Appendix Costs — supplementary information Target basis costs $m FY24 1Q24 1Q25 Costs* (32,665) (7,945) (8,102) Less: Notable items 224 47 191 Add: Impact of retranslating prior period results in (34) (10) — hyperinflationary economies at constant currency Less: Canada direc

  20. Slide 20: EPS excluding material notable items and related impacts

    CEO remarks 1Q25 results Appendix EPS excluding material notable items and related impacts Reported FX, $m 1Q24 2Q24 3Q24 4Q24 1Q25 Profit attributable to ordinary shareholders (PAOS) 10,183 6,403 6,134 197 6,932 Impact of acquisition of SVB UK — (2) — (3) — Impact of the sale of our retail banking

  21. Slide 21: Argentina (sale completed December 2024)

    CEO remarks 1Q25 results Appendix Argentina (sale completed 6 December 2024) Reported FX, $m 1Q24 2Q24 3Q24 4Q24 FY24 NII 488 434 264 142 1,328 Non-NII (290) (125) (52) (18) (486) Revenue 197 309 211 125 842 ECL (61) 26 (5) (9) (48) Costs (160) (163) (169) (112) (604) PBT (23) 173 37 4 190 Constant

  22. Slide 22: 1Q25 vs. 4Q24 equity drivers

    CEO remarks 1Q25 results Appendix 1Q25 vs. 4Q24 equity drivers Basic number of ordinary Shareholders’ Tangible equity, TNAV per share, shares outstanding after Reported FX equity, $bn $bn $ deducting own shares held, millions At 31 December 2024 185.0 154.3 8.61 17,918 Profit attributable to: 7.3 7.

  23. Slide 23: Total shareholders' equity to CET1 capital

    CEO remarks 1Q25 results Appendix Total shareholders’ equity to CET1 capital 1Q25 total equity to CET1 capital (reported FX), $m Total equity to CET1 capital walk (reported FX), $m 3Q24 4Q24 1Q25 Total equity 198,117 Total equity (per balance sheet) 200,025 192,273 198,117 Non-controlling interests

  24. Slide 24: Glossary

    CEO remarks 1Q25 results Appendix Glossary AT1 Additional Tier 1 NCI Non-controlling interests Banking net interest income is an alternative performance measure, and is defined as NNIA Net new invested assets Group net interest income after deducting: (1) the internal cost to fund trading and fair P

  25. Slide 25: Footnotes

    CEO remarks 1Q25 results Appendix Footnotes 1Q25 results Slide 2: CEO remarks 1. Our plausible trade downside scenario involves significant increases in tariffs by the world’s largest trading blocs vs. 1 April 2025 levels, resulting in a notable slowdown in global trade, and a slowdown in global GDP

  26. Slide 26: Disclaimer

    CEO remarks 1Q25 results Appendix 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 applica

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HSBC Holdings — Q1 2025 Earnings Presentation on 6ix