HSBC Holdings PLC · LSE:HSBA
HSBC — Goldman Sachs conference June 2017
14 slides from HSBC's conference presentation, Jun 5, 2017
Slide 1: Retail Banking and Wealth Management
Retail Banking and Wealth Management Goldman Sachs conference June 2017 John Flint, Chief Executive Officer, RBWM HIGHLY RESTRICTED 1
Slide 2: Important notice and forward-looking statements
Important notice and forward-looking statements Important notice The information set out in this presentation and subsequent discussion does not constitute a public offer for the purposes of any applicable law or an offer to sell or solicitation of any offer to purchase any securities or other finan
Slide 3: Good 1Q17 performance, supported by rising interest rates and strong sales
Good 1Q17 performance, supported by rising interest rates, customer investment appetite, market impact on life insurance, and strong sales Quarterly revenue performance1 ($m) Balance sheet1 ($bn) RBWM +15% highlights Customer lending: 4,357 4,524 4,757 4,563 5,009 138 Adjusted PBT 14 4% (1Q16: $1.2b
Slide 4: RBWM business models – full range of propositions and products
RBWM business models – full range of propositions and products RBWM Proposition RBWM Products Global Private Serving clients of all Banking Global Businesses Jade Premier Advance Personal Jade by Invitation only offering for our most Premier valuable clients Premier Flagship proposition providing gl
Slide 5: Our Retail Banking business delivers consistent high quality revenue
Our Retail Banking business delivers consistent high quality revenue from markets with high savings rates… Strong retail banking franchise Quarterly retail banking revenue1 ($m) Strong retail banking franchise1 RBWM 3,213 3,125 highlights 3,114 3,075 3,120 A/D ratio 51% Adjusted PBT (1Q16: $1.2bn)
Slide 6: Maintaining our credit discipline – Example RBWM UK
… and we are maintaining our credit discipline – Example RBWM UK PRA stress tests: Projected cumulative five-year PRA stress tests: Projected cumulative five-year impairment charge rates on UK individuals impairment charge rates on UK individuals non- mortgage lending in the stress1,2 (%) mortgage l
Slide 7: Our Wealth business drives strong returns for RBWM
Our Wealth business drives strong returns for RBWM, but with higher revenue volatility linked to market conditions Quarterly wealth management revenue ($m)1 Revenue drivers Quarterly wealth management revenue, $m 1,652 1,511 Investor confidence RBWM highlights 1,297 1,280 Equity markets Adjusted
Slide 8: Investment distribution revenue is correlated with investor confidence
Investment distribution revenue is correlated with investor confidence, notably in Hong-Kong Quarterly investment distribution revenue1 ($m) Revenue1 ($m) HSI Index 28,000 26,000 24,000 22,000 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 HS
Slide 9: Insurance manufacturing revenue is subject to market adjustments
Insurance manufacturing revenue is subject to market adjustments Quarterly Quarterly wealth insurance managementrevenue manufacturing revenue, $m 1 ($m) Revenue drivers Main revenue drivers Revenue1 ($m) Equity prices RBWM highlights Adjusted PBT Yield curve (1Q16: $1.2bn) $1.8bn Adjusted revenu
Slide 10: Assets under management are the main driver of asset management revenue
The volume of assets under our management is the main driver of asset management revenue Quarterly asset management revenue1 ($m) Main AuM drivers Quarterly wealth management revenue, $m Revenue drivers Revenue1 ($m) AuM1 ($bn) RBWM RBWM highlights highlights Adjusted PBT (1Q16: $1.2bn) Adjusted PBT
Slide 11: Our digital transformation has led to significant sustainable cost savings
Our digital transformation has led to significant sustainable cost savings as our clients make increasing use of our digital channels Operating expenses1 ($m) Digital sales volumes2,3 (million) Investment brings 2017 exit costs to 2014 levels +59% Without investment, inflation drives rising costs Ac
Slide 12: Our Digital investments are improving experience for customers and employees
Our Digital investments are improving experience for our customers and our employees, and improving the productivity of our service delivery Examples of Digital investments by theme Simplifying digital access to our platforms Biometrics (Touch ID, Voice ID), digital secure keys without loss of secur
Slide 13: Conduct risk is redefining how retail banks engage with customers
Conduct risk is redefining how retail banks engage with and serve their customers. We have proactively repositioned the business for this UK customer redress and CCA provisions at their lowest since 2010 (USDm) RBWM Loan Impairment Charges (LICs)1 LICS/Average Loans and Advances UK customer redress
Slide 14: Good 1Q17 performance, supported by rising interest rates and strong sales
Good 1Q17 performance, supported by rising interest rates, customer investment appetite, market impact on life insurance, and strong sales Quarterly revenue performance1 ($m) Balance sheet1 ($bn) RBWM +15% highlights Customer lending: 4,357 4,524 4,757 4,563 5,009 138 Adjusted PBT 14 4% (1Q16: $1.2b