HSBC Holdings PLC · LSE:HSBA

HSBC — Investor Day (December 2013)

25 slides from HSBC's investor day presentation, Dec 3, 2013

  1. Slide 1: HSBC in Europe, Middle East and Africa – Strategy update

    HSBC in Europe, Middle East and Africa – Strategy update Alan KeirGroup Managing Director, Europe, Middle East and Africa, Chief Executive Officer, HSBC Bank plc 3 December 2013

  2. Slide 2: Forward-looking statements

    Forward-looking statements This presentation and subsequent discussion may contain certain forward-looking statements with respect to the financial condition, results of operations and business of the Group. These forward-looking statements represent the Group’s expectations or beliefs concerning fu

  3. Slide 3: Agenda

    Agenda HSBC in Europe and in the Middle East and North Africa (MENA) regions – Strategy update A Distinctive position in the new banking environment B Proven track record in delivering change – First phase C Clear plan for growth – Next phase 3

  4. Slide 4: A Distinctive position in the new banking environment

    Europe and MENA regions – Strategy update A Distinctive position in the new banking environment I What Europe and MENA represent II Still challenging macro / regulatory environment Attractive long term perspective, consistent with HSBC’s strategy III and position B Proven track record in delivering

  5. Slide 5: An extensive network: 1 home market and 7 priority growth markets

    I. What Europe and MENA represent An extensive network 1 Home market and 7 priority growth markets Europe MENA Home  United markets Kingdom  France  Egypt Priority  Germany  Saudi Growth  Switzerland Arabia markets  Turkey  UAE  Operations primarily focused on CMB and GBM international clie

  6. Slide 6: Strong contribution to Group profitability

    I. What Europe and MENA represent Strong contribution to Group profitability Significant contribution by Global Business… …and robust funding base Reported PBT YTD 3Q20131 Customer accounts, 1H2013, USDbn2 Total USDm % of Total A/D ratio Europe 556 42% 78% RBWM 27% 5% 68% 4,852 MENA 41 3% 68% CMB 24

  7. Slide 7: Slow economic recovery in Europe, and robust growth in the GCC

    II. Still challenging macro / regulatory environment Slow economic recovery in Europe, and robust growth in the GCC1 economies despite regional geopolitical risk in parts of MENA GDP growth2 in priority markets in Europe and MENA Europe % Year  Economic outlook improving and confidence increasing,

  8. Slide 8: Fragmented regulatory landscape and uncertain agenda create many challenges

    II. Still challenging macro / regulatory environment Fragmented regulatory landscape and uncertain agenda create many challenges  Multiple regulators and agendas Fragmented  Uncertainty regarding rules and implementation of future regulation regulatory  Increased regulatory oversight and in-depth

  9. Slide 9: Long-run growth anticipated in Europe and MENA

    III. Attractive long term perspective, consistent with HSBC’s strategy and position Long-run growth anticipated in Europe and MENA GDP of top 100 economies by 20501 USDtrn Share of 2050 Priority Markets Regional GDP1 (%) Europe Germany 14 Our priority UK 13 growth markets France 10 in Europe and MEN

  10. Slide 10: HSBC has access to the largest and fastest-growing international trade corridors

    III. Attractive long term perspective, consistent with HSBC’s strategy and position HSBC has access to the largest and fastest-growing international trade corridors Largest trade corridors by 2020 for Europe and MENA 1 CAGR USDbn % 0 50 100 150 200 250 300  HSBC covers both ends of the Germany-Fran

  11. Slide 11: Large wealth pools in both regions with fast growth expected in MENA

    III. Attractive long term perspective, consistent with HSBC’s strategy and position Large wealth pools in both regions with fast growth expected in MENA Wealth growth1 Key Drivers USDtrn CAGR % of Global 2012-2017E Wealth in 2017E Europe 4%  Priority markets ranked top 10 for high-net 6.3% worth in

  12. Slide 12: B Proven track record in delivering change – First phase

    Europe and MENA – Strategy update A Distinctive position in the new banking environment B Proven track record in delivering change – First phase I Financial Performance II Progress to date a. Global Standards Implementation b. Simplification c. Growth C Clear plan for growth – Next phase 12

  13. Slide 13: Europe performance – YTD 3Q 2013 results

    I. Financial performance Europe performance – YTD 3Q 2013 results Financial results Reported PBT2 by Global Business USDm YTD 3Q YTD 3Q % Better / Worse YTD 3Q2013 figures, USDm 2012 2013 YTD 13 vs YTD 12 Year-on-year Revenue 13,775 16,339 19% growth (%) Loan Impairment (1,409) (1,364) 3% Charges Op

  14. Slide 14: MENA performance – YTD 3Q 2013 results

    I. Financial performance MENA performance – YTD 3Q 2013 results Financial results Reported PBT3 by Global Business YTD 3Q YTD 3Q % Better / Worse YTD 3Q2013 figures, USDm USDm 2012 2013 YTD13 vs YTD 12 Year-on-year Revenue 1,813 1,896 5% growth (%) Loan Impairment (217) (6) 97% Charges Operating (80

  15. Slide 15: Established a simplified, more focused and easier to manage organisation

    II. Progress to date Established a simplified, more focused and easier to manage organisation Progress  Developed global strategies  Defined and implemented consistent business and operating model Created four Global  Focus on clear portfolio of activities Businesses  Oversight by Holdings Board

  16. Slide 16: Capital deployment - Disposals & Acquisitions to date

    II. Progress to date Europe, MENA Capital deployment - Disposals & Acquisitions to date 18 announced transactions in Europe and 9 in MENA since May 2011 Ireland: HSBC Private Bank UK: Disposal of Montagu Private Slovakia: Full exit Poland, Russia, (UK) Ltd. branch closed, Equity stake, Motor Insuran

  17. Slide 17: Simplifying Europe and MENA

    II. Progress to date Simplifying Europe and MENA Transformation Sustainable saves Employees  Reshaped portfolio USDm Year-end FTE, thousands  Simplified organisation  Established Four Programmes 1. Implement consistent business 69 models 8.4 2. Re-engineer operational 8.8 processes 8.7 3. Re-engi

  18. Slide 18: Significant progress growing the business

    II. Progress to date Significant progress growing the business Material progress in Europe and MENA… …leading to growth  RBWM ‒ Continued growth in mortgage portfolios in UK and Mortgage lending3, USDbn Europe MENA France, with lower delinquencies in MENA through CAGR targeted growth ‒ Transformed

  19. Slide 19: Significant progress growing the business

    II. Progress to date Significant progress growing the business Material progress in Europe and MENA… Selected transactions  GBM ‒ Strong performance connecting international clients to faster-growing markets May 2013 May 2013 February 2013 ‒ Increased collaboration with CMB and cross-sell contribut

  20. Slide 20: C Clear plan for growth – Next phase

    Europe and MENA – Strategy update A Distinctive position in the new banking environment B Proven track record in delivering change – First phase C Clear plan for growth – Next phase I Priorities going forward II Targets for Europe and MENA 20

  21. Slide 21: Regional strategic direction fully aligned to Group's priorities

    I. Priorities going forward Regional strategic direction fully aligned to Group’s priorities Actions and priorities By 2016 in Europe and MENA  Continue to recycle RWAs from  Continue to grow RWAs in line with our organic low into high performing investment criteria in our priority markets opportu

  22. Slide 22: Global Standards and conduct risk

    I. Priorities going forward Global Standards and conduct risk Source of competitive advantage Strengthen  Robust global governance in place, supported by regional committees in Europe and MENA governance &  Ensure robust oversight and controls are in place to mitigate conduct risk oversight  Cont

  23. Slide 23: Growth priorities for Europe and MENA

    I. Priorities going forward Growth priorities for Europe and MENA Growth priorities to 2016 2016 Global Business targets  Grow number of customers in target segments in home and priority markets Financial RoRWA3, % 5.0-5.5  Deepen customer relationships by: – Acquiring new wealth in faster growing

  24. Slide 24: Growth priorities for Europe and MENA

    I. Priorities going forward Growth priorities for Europe and MENA Growth priorities to 2016 2016 Global Business targets  Greater focus on priority markets; focus on 2.0-2.2 Financial RoRWA1, % south-south and east-east corridors  Continue to grow in strategic products, notably Debt Capital Market

  25. Slide 25: Next phase 2014-16

    II. Targets for Europe and MENA Next phase 2014-16 Strategy remains unchanged  Grow both, business and dividends  Implement Global Standards  Streamline processes and procedures Significantly contributing to Group targets  RoRWA 1.4-1.7% for Europe and 2.3-2.7% for MENA1  Positive jaws  CER mi

HSBC Holdings — Investor Day (December 2013) on 6ix