Hsbc Holdings Plc · LSE:HSBA
Hsbc — Q3 2015 Earnings Presentation
22 slides from Hsbc's earnings presentation, Nov 27, 2015
Slide 1: Commercial Banking – November 2015 Q3 Update
November 2015 – Q3 Update Commercial Banking Simon Cooper Chief Executive Officer, Global Commercial Banking
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: Agenda
Commercial Banking Agenda 1 HSBC Group Overview 2 CMB: Solid foundation, good performance 3 Capturing value from global presence 4 Investing for growth 5 Summary: Advantages driving improved returns 22
Slide 4: 2015 Financial Highlights
HSBC Group Overview 2015 Financial Highlights Financial highlights 3Q15 vs 3Q15 vs 9M15 vs 3Q14 2Q15 3Q15 9M14 9M15 3Q14 2Q15 9M14 Reported PBT, 4.6 6.6 6.1 1.5 (0.5) 16.9 19.7 2.8 USDbn Adjusted PBT, 6.4 6.0 5.5 (0.9) (0.5) 19.1 18.5 (0.6) USDbn Target (if 9M14 9M15 applicable) Return on average or
Slide 5: 9M15 Profit before tax
HSBC Group Overview 9M15 Profit before tax Revenue growth more than offset by investment in growth initiatives and regulatory programmes and compliance Reported and adjusted PBT Adjusted PBT growth by account line Adjusted PBT growth by global business USDm USDm USDm RBWM (569) (10)% Adjusted PBT de
Slide 6: Progress on our actions to capture value
HSBC Group Overview Progress on our actions to capture value Actions Key achievements Highlights Reduce Group RWAs by USD32bn reduction during the third quarter, 1 RWAs reduced by USD32bn in the quarter; 1 c.USD290bn notably in GB&M USD82bn YTD 290 275 (15) Re-size and simplify Disposal of our
Slide 7: Progress on our actions to capture value – YTD progress
HSBC Group Overview Progress on our actions to capture value – YTD progress Actions Key metrics 30 Sept 2015 performance Investor Update Target 9M15, USDbn vs. Dec-14 Group RWA reduction RWA initiatives (82) (82) Reduce Group RWAs by USD290bn 1 Business growth RWAs 27 27 c.USD290bn GB&M <1/3 of Gr
Slide 8: Agenda
Commercial Banking Agenda 1 HSBC Group Overview 2 CMB: Solid foundation, good performance 3 Capturing value from global presence 4 Investing for growth 5 Summary: Advantages driving improved returns 7
Slide 9: CMB will deliver faster-than-market growth and improved returns
CMB: Solid foundation, good performance CMB will deliver faster-than-market growth and improved returns Key messages Strong performance1 Good track record of growth – with positive revenue and 9M15, USDbn Solid return expectations Revenue 11.2 foundation, Pivotal role in growth of cross-business
Slide 10: CMB: 25% of Group revenue, 37% of Group PBT and 38% of Group RWAs
CMB: Solid foundation, good performance CMB: 25% of Group revenue, 37% of Group PBT and 38% of Group RWAs in 9M15 CMB has delivered revenue and balance sheet growth1 Revenue diversified by region and product USD bn 9M14 9M15 9M15 vs 9M14 Share of 9M15 Revenue by Region and Product 11.2 10.9 PCM 30%
Slide 11: Performance enabled by global client segments aligned to needs and revenue potential
CMB: Solid foundation, good performance Performance enabled by global client segments aligned to needs and revenue potential Client Country Global segments Product needs coverage3 coverage4 % Revenue5 Large Bespoke event and Corporate 1:15 56 35% c. 7k flow solutions (LC) clients2 Complexity & Reven
Slide 12: Agenda
Commercial Banking Agenda 1 HSBC Group Overview 2 CMB: Solid foundation, good performance 3 Capturing value from global presence 4 Investing for growth 5 Summary: Advantages driving improved returns 11
Slide 13: Harnessing the global network advantage is the key to growth
Capturing value from global presence Harnessing the global network advantage is the key to growth Supplier Multinational client End customer Client subsidiary Our network and relationships with Strength of position in Asia enables Success opens door to support SMEs up to multinationals enables penet
Slide 14: Our Network supports subsidiaries, buyers and suppliers
Capturing value from global presence Our Network supports subsidiaries, buyers and suppliers HSBC CMB footprint We provide payments, FX and cash We enable SMRP BV to optimise its We issue LCs in both USD and RMB to management solutions to TomTom’s cashflows by providing non-recourse Grupo Cuprum’s i
Slide 15: Disciplined, global approach addresses the International Subsidiary Banking opportunity
Capturing value from global presence Disciplined, global approach addresses the International Subsidiary Banking opportunity Subsidiary banking accelerates growth Deployed a solution which is delivering results Average revenue multiplier1 11x Created global International Subsidiary Banking structu
Slide 16: CMB central to Global Business revenue synergies: c.USD4.7bn
Capturing value from global presence CMB central to Global Business revenue synergies1: c.USD4.7bn Provide trade finance, working capital solutions and Offer Asset liquidity management to GB&M clients $0.5bn Management, Example: Leveraging our global connectivity to issue Insurance and standard guar
Slide 17: Agenda
Commercial Banking Agenda 1 HSBC Group Overview 2 CMB: Solid foundation, good performance 3 Capturing value from global presence 4 Investing for growth 5 Summary: Advantages driving improved returns 16
Slide 18: Cities focus in global hubs drives international revenue growth
Investing for growth Cities focus in global hubs drives international revenue growth Investment Focus MME & LC Client Revenue3,4 c. 1751 additional RMs and dedicated Connect global buyers to Chinese Domestic P&L product support since 2011 suppliers and help MME clients 42% Focused presence in
Slide 19: PCM and GTRF: helping clients globalise
Investing for growth PCM and GTRF: helping clients globalise PCM and GTRF core to revenue Investing to fuel organic growth Revenue percent of total Invest to increase client coverage Build a dedicated sales and distribution engine aligned to segments To date, c. 490 new FTE in internationally-co
Slide 20: Agenda
Commercial Banking Agenda 1 HSBC Group Overview 2 CMB: Solid foundation, good performance 3 Capturing value from global presence 4 Investing for growth 5 Summary: Advantages driving improved returns 19
Slide 21: Three distinct advantages
Summary: Advantages driving improved returns Three distinct advantages CMB organised around clients Globally-managed model tailored to client needs Global segment coverage Globally-managed product coverage aligned with segments Truly global reach and universal client base Unrivalled global
Slide 22: Disciplined execution will deliver improved returns
Summary: Advantages driving improved returns Disciplined execution will deliver improved returns Key Priorities 2014 – 2017 RoRWA walk (excl. associates)2 Maximise advantage of our unrivalled global network to deliver the international value proposition Leverage scale in Hong Kong and the UK to