Hsbc Holdings Plc · LSE:HSBA
Hsbc — HSBC Mexico — Corporate Update (September 2019)
18 slides from Hsbc's corporate update, September 2019
Slide 1: HSBC Mexico update 1H19
HSBC Mexico update 1H19 September 2019
Slide 2: Important notice and forward-looking statements
Important notice and forward-looking statements YOU MUST READ THE FOLLOWING BEFORE CONTINUING. THE FOLLOWING APPLIES TO THE PRESENTATION MATERIALS FOLLOWING THIS PAGE, AND YOU ARE THEREFORE ADVISED TO READ THIS CAREFULLY BEFORE READING, ACCESSING OR MAKING ANY OTHER USE OF THE PRESENTATION MATERIALS
Slide 3: 1. Mexico's economic outlook
1. Mexico’s economic outlook 3
Slide 4: Low growth but a stable outlook for macroeconomic fundamentals
Mexico’s economic outlook Low growth but a stable outlook for macroeconomic fundamentals GDP growth Central Bank policy rate % y-o-y % End of period 8.25 2.1 2.0 7.75 7.75 1.4 7.25 0.8 2017 2018 2019F 2020F 2017 2018 2019F 2020F Inflation Foreign exchange % End of period MXN / USD end-year 6.0 19.7
Slide 5: An open economy with significant opportunities for banking and trade
Mexico’s economic outlook An open economy with significant opportunities for banking and trade GDP per capita Domestic credit to private sector USDk1 As % of GDP2 9.9 9.9 10.1 34.0 35.5 36.0 9.4 32.0 2017 2018 2019F 2020F 2015 2016 2017 2018 Total exports Exports to USA As % of GDP1 As % of total ex
Slide 6: Macroeconomic highlights - public sector
Mexico’s economic outlook Macroeconomic highlights - public sector Central Government budget deficit Gross public sector debt % GDP1 % GDP1 2.7 2.7 46.9 46.8 47.2 47.1 2.1 1.1 2017 2018 2019F 2020F 2017 2018 2019F 2020F 1. Source: HSBC Global Research, Latin America Economics 2Q19 6
Slide 7: Trade: Mexico connected to key regions
Mexico’s economic outlook Trade: Mexico connected to key regions Mexico in key trade corridors1 2018 value of trade (exports and imports), USDbn Trade with Europe Germany 25 Spain 7 Other 49 Europe 81 Trade under NAFTA US 561 Trade with Asia Canada 25 China 91 Japan 22 NAFTA 586 South Korea 19 Other
Slide 8: 2. HSBC in Mexico
2. HSBC in Mexico 8
Slide 9: Our Mexican business is strategically important to Group with significant potential to improve
HSBC in Mexico Our Mexican business is strategically important to Group with significant potential to improve Ownership chart HSBC Mexico performance1 Reported revenue USDbn % of Group2 +15% HSBC Holdings plc 4.3% 1.3 1.1 4.1% 1H18 1H19 1H18 1H19 HSBC Latin America Holdings (UK) Limited Reported PBT
Slide 10: Key executives
HSBC in Mexico Key executives Joined HSBC in March 2015. Appointed CEO of HSBC Mexico in December 2015. Nuno A. Matos Experience: Worked for Santander between 1994 and 2015 in a variety of retail banking, investment banking CEO and functional leadership roles across Europe, the US and Latin America.
Slide 11: HSBC Mexico is a top bank with national presence and has been increasing its share and returns
HSBC in Mexico HSBC Mexico is a top 5 bank with national presence and has been increasing its share and returns in the market HSBC in Mexico1 5.4 million customers 961 branches 1H19 PBT Growth1: 31% vs 1H18 c. 16,000 FTEs 1H19 ROE: 13.5% 5,600 ATMs = market share var 2015-2018 vs Top 6 Banks Top 6 b
Slide 12: 2018-2020 Strategy
HSBC in Mexico _____________________________________________________________________________________________________________ 2018-2020 Strategy Two main strategic pillars… (i) Fully leverage our retail scale to reach a 10% fair market share (as our branch market share), (ii) Become the leading Whole
Slide 13: 3. HSBC Mexico financial performance
3. HSBC Mexico financial performance 13
Slide 14: Reported financial performance 1H19 – Mexico GAAP
HSBC Mexico financial performance Reported financial performance 1H19 – Mexico GAAP Loan impairment charges and other credit risk Revenue1 provisions MXNm MXNm +14.5% +3.0% 24,147 21,094 4,183 4,060 1H18 1H19 1H18 1H19 Operating expenses Profit before tax MXNm MXNm +11.3% +31.4% 13,575 12,197 6,449
Slide 15: Credit portfolio and Deposits
HSBC Mexico financial performance Credit portfolio and Deposits Loans and advances to customers, net MXNbn +20.6% 376.2 395.0 352.0 366.1 327.6 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Demand and Time Deposits1 MXNbn +5.8% 394.8 378.2 371.7 351.5 343.3 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 A/D ratio 93% 103%
Slide 16: 4. Bank peer review
4. Bank peer review 16
Slide 17: HBMX vs Industry
Bank Peer review HBMX vs Industry Total loans Retail loans Wholesale loans MXNbn MXNbn MXNbn +20% +20% +20% +8% +8% +7% 4,978 5,352 408 1,776 1,924 121 3,202 3,428 288 340 100 239 1H18 1H19 1H18 1H19 1H18 1H19 1H18 1H19 1H18 1H19 1H18 1H19 Banking Industry1 HSBC Mexico Banking Industry1 HSBC Mexico
Slide 18: 18
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