Hsbc Holdings Plc · LSE:HSBA
Hsbc — Q1 2014 Earnings Presentation
13 slides from Hsbc's earnings presentation, May 7, 2014
Slide 1: Overseas Regulatory Announcement
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this document, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance
Slide 2: First Quarter 2014 Results Audio Webcast and Conference Call
Abc 7 May 2014 HSBC HOLDINGS PLC FIRST QUARTER 2014 RESULTS AUDIO WEBCAST AND CONFERENCE CALL There will be an audio webcast presentation and conference call today for investors and analysts. The speakers will be: Stuart Gulliver, Group Chief Executive; and Iain Mackay, Group Finance Director. A cop
Slide 3: HSBC Holdings plc 1Q 2014 Results Presentation
HSBC Holdings plc 1Q 2014 Results Presentation
Slide 4: 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, capital position and business of the Group. These forward-looking statements represent the Group’s expectations or bel
Slide 5: 1Q 2014 results Financial highlights
1Q 2014 results Financial highlights1 Summary financial highlights, USDbn Better/(worse) 1Q13 4Q13 1Q14 1Q14 vs 1Q13 1Q14 vs 4Q13 Reported PBT 8.4 4.0 6.8 (1.6) 2.8 Underlying2 PBT 7.6 3.5 6.6 (1.0) 3.1 Key ratios, % 1Q13 4Q13 1Q14 KPI Return on average ordinary shareholders’ equity3 14.9 5.9 11.7 1
Slide 6: Reconciliation of Reported to Underlying results
Financial overview Reconciliation of Reported to Underlying results USDm Variance 1Q14 1Q13 4Q13 1Q14 vs 1Q13 vs 4Q13 Reported profit before tax 8,434 3,964 6,785 (1,649) 2,821 Includes: FVOD1 (243) (652) 148 391 800 Gain on de-recognition of Industrial Bank as an associate 1,089 – – (1,089) – Gain
Slide 7: Significant items included in underlying profit before tax
Financial overview Significant items included in underlying profit before tax USDm Variance 1Q14 1Q13 4Q13 1Q14 vs 1Q13 vs 4Q13 Underlying profit before tax 7,589 3,500 6,621 (968) 3,121 Includes the following significant items (reported basis): Revenue Restructuring and repositioning: Net gain on c
Slide 8: Revenue Analysis: Global Business revenues
Revenue Analysis Global Business revenues: resilient GB&M, growth in CMB Reported revenue1 (USDbn) 1Q14 vs 1Q13 Global Business Global Business performance revenue2 (USDm) 18.4 % Principal RBWM better/(worse) – Run-off of our Canadian consumer finance business 1.3 Principal (117) (2)% – Lower fees
Slide 9: Operating expenses analysis: Effective management of costs
Operating expenses analysis Effective management of costs Reported operating expenses (USDbn) 1Q14 vs 1Q13 operating expenses1 Quarterly recurring costs Global Business (USDm) Drivers (USDbn) USD0.2bn up (better)/worse (better)/worse 10.6 Principal Inflation 0.2 163 RBWM 0.1 RBWM US Sustainable (0.3
Slide 10: Loan impairment charges
Loan impairment charges1 Lower loan impairment charges primarily from reductions in the US run-off portfolio Movements in loan impairment charges – 1Q14 vs 1Q13 Variance Variance USDm 1Q13 1Q14 better/(worse) USDm 1Q13 1Q14 better/(worse) Europe 190 116 74 RBWM 803 601 202 Asia2 75 104 (29) CMB 343
Slide 11: Capital adequacy: Strong capital generation
Capital adequacy Strong capital generation Movement in common equity tier 1 capital (USDbn) Common equity tier 1 ratio movement (%) CRD IV1 Yr1 Trans End point 0.1 0.3 At 31 December 2013 131.2 132.5 Profit for the quarter 5.1 5.1 0.1 10.9 (0.3) First interim dividend2, net of planned (1.7) (1.7) 10
Slide 12: Capital requirements
Capital requirements Required common equity tier 1 ratio1 Fully loaded CET1 requirements The fully loaded capital buffer position should 10.8% become clearer after PRA’s consultation in CET1% at 31 March (end-point) 10.4% 10.4% late 2014 on the Pillar 2A and “PRA buffer”3 9.1% framework Pillar 2
Slide 13: Issued by HSBC Holdings plc Group Investor Relations
The view from HSBC Building, 8 Century Avenue, Pudong, Shanghai The view from HSBC Main Building, 1 Queen’s Road Central, Hong Kong SAR The view from HSBC Group Head Office, 8 Canada Square, London Cover images: internationalisation of the renminbi The images show the views from HSBC’s head offices