Hsbc Holdings Plc · LSE:HSBA
Hsbc — Investor Day (March 2019)
20 slides from Hsbc's investor day presentation, Mar 18, 2019
Slide 1: Global Trade and Receivables Finance
Global Trade and Receivables Finance 18 March 2019
Slide 2: Disclaimer
Disclaimer Important notice The information, statements and opinions set out in this presentation and accompanying discussion (“this Presentation”) are f or 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 so
Slide 3: Agenda
Agenda 1 Background: what is trade finance 2 Safe and profitable growth 3 Navigating short term uncertainty 4 Investing to transform our business 2
Slide 4: What is trade finance
Background 1 What is trade finance % of 2018 GTRF revenue 1 % of 2016 GTRF revenue 1 What we do Solutions for our customers’ trade finance Safer and more efficient form of lending2 and risk mitigation needs Traditional Trade 80% 78% Structured Trade 20% 22% Documentary Supply chain Guarantees Tr
Slide 5: Driving safe and profitable growth
Safe and profitable growth 2 Driving safe and profitable growth Back to growth Cost and capital efficiency GTRF adjusted revenue, $bn (CMB and GB&M combined) Driving efficiency 14% reduction in FTE1 over past 4 years +4% 2.7 Focus on Elimination, Standardisation, 2.6 Automation and Digitisation
Slide 6: Outperforming the market
Safe and profitable growth 2 Outperforming the market GTRF by numbers: GTRF growing faster than market Global market share grew from 5.7% to 6.0%2 $740bn Trade facilitated annually 1 Structured Trade: share grew from 2.2% to 2.4%2 Increased share in key markets during 2018 Trade bank2 : #1 Rev
Slide 7: Step change in how we engage with our clients
Safe and profitable growth 2 Step change in how we engage with our clients Landmark Commodity deals Supporting tech distributors Client need: Reduce outstanding receivables in support Client need: Provide Dell distributors & partners with key of Egypt’s IMF obligations credit capacity to facilit
Slide 8: Supporting sustainable supply chains
Safe and profitable growth 2 Supporting sustainable supply chains Untapped business opportunity Supporting key sustainable deals $660 billion Supporting Sustainable Supporting solar power Potential sustainable supply Supply Chains plant projects chain finance market, which will reach one third of th
Slide 9: Window to the trade outlook
Navigating short term uncertainty 3 Window to the trade outlook Short and medium term opportunities… Trade volume growth as a multiple of GDP growth1 Trade agreements 3 : CPTPP, EU-Japan, RCEP Eurozone China: fiscal stimulus China joins WTO Growth in intra-Asian flows and ASEAN Trade > Large
Slide 10: Fundamentals of global trade are changing significantly (1/3)
Navigating short term uncertainty 3 Fundamentals of global trade are changing significantly (1/3) WHAT is traded WHERE trade takes place HOW trade is conducted Key facts Trade in services is expected to more than double by 2030: accounting for 25% of all trade 1 Cross-border data flows worth $2.
Slide 11: Fundamentals of global trade are changing significantly (2/3)
Navigating short term uncertainty 3 Fundamentals of global trade are changing significantly (2/3) WHAT is traded WHERE trade takes place HOW trade is conducted Key facts Shift from West to East Middle income population in Asia to grow to 3.5bn by 20301 Intra-region trade will account for over
Slide 12: Fundamentals of global trade are changing significantly (3/3)
Navigating short term uncertainty 3 Fundamentals of global trade are changing significantly (3/3) WHAT is traded WHERE trade takes place HOW trade is conducted Key facts Internet democratising trade, giving SMEs same access as multinationals Emergence of Internet of Things, 5G and cloud services
Slide 13: Transforming our business for the future
Trade transformation 4 Transforming our business for the future Extend leadership position and future-proof business Key customer and business outcomes by 2021 Today Post-investment >$600m investment1 to achieve the Convergent, flexible and Out of date, siloed and following: modular IT architecture
Slide 14: Tangible progress in the transformation journey
Trade transformation 4 Tangible progress in the transformation journey Improved digital capabilities Scaling growth through Enhancing Structured Trade electronic solutions capabilities Mobile app for clients to track In China, connection to PBOC e- >10% annual asset growth since Growth and real time
Slide 15: Appendix
Appendix
Slide 16: Leading indicators for world trade
Appendix 1 Leading indicators for world trade Trade Values are expected to moderate their growth in the short term… …and trade volumes are expected to soften in the medium term 1.5 1 104 4 156 DC issuances value indexed (4Q 15 = 1) WTOI (LHS) 2 103 5 1.4 World export value indexed (4Q 15 = 1) Exp Vo
Slide 17: Summary of key trade agreements
Appendix 2 Summary of key trade agreements Comprehensive and progressive agreement for trans-pacific partnership (CPTPP) Pacific Basin trade agreement among 11 advanced and emerging markets, representing 13% of global GDP and 500m population Aims to remove 95% of the current tariffs on trade amo
Slide 18: HSBC is leading key trade DLT projects
Appendix 3 HSBC is leading key trade DLT projects Doc Trade Open Account Platform and tech vendor Network ownership Coverage Products Participants HSBC key participant 17
Slide 19: Risk characteristics of trade finance
Appendix 4 Risk characteristics of trade Expected loss of trade finance and other asset classes, 2008–20162 finance Trade Finance Non Trade Finance Drivers Short-tenor asset class Average time to recovery between trade finance and other asset classes, 2008–20162 Linked to real economy (working c
Slide 20: Glossary
Appendix 5 Glossary ASEAN Association of Southeast Asian Nations API Application Program Interface BRI Belt and Road Initiative CPTPP Comprehensive and Progressive Agreement for Trans-pacific Partnership NAFTA North American Free Trade Agreement OEM Original Equipment Manufacturer RCEP Regional Comp