HSBC Holdings PLC · LSE:HSBA
HSBC — 1H 2010 Earnings Presentation
20 slides from HSBC's earnings presentation, Aug 2, 2010
Slide 1: HSBC Finance Corporation and HSBC USA Inc. Core Operations
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Slide 2: US Core Operations – 1H 2010 Financial Results
US Core Operations – HSBC Finance Corporation and HSBC USA Inc. 1H 2010 Financial Results 1H 2009 2H 2009 1H 2010 US$m Card and HUSI excl Card and HUSI excl Card and HUSI excl Retail Consumer Total Retail Consumer Total Retail Consumer Total Services Finance Services Finance Services Finance Net ope
Slide 3: HSBC Finance Corporation IFRS Management Basis
HSBC Finance Corporation IFRS Management Basis August 2, 2010 3
Slide 4: HSBC Finance Corporation 1H 2010 Financial Results
HSBC Finance Corporation 1H 2010 Financial Results1 % Better/(worse) US$m 1H 2009 2H 2009 1H 2010 1H 10 vs 1H 09 1H 10 vs 2H 09 Net operating income before loan impairment charges ex changes in net income from financial instruments 6,734 5,750 4,569 (32) (21) at Fair Value (FVO) Loan impairment char
Slide 5: HSBC Finance Corporation – Non-core Operations 1H 2010 Financial Results
HSBC Finance Corporation – Non-core Operations1 1H 2010 Financial Results US$m 1H 2009 2H 2009 1H 2010 Net operating income before loan impairment charges ex changes in net income from financial instruments 2,868 2,048 1,368 at Fair Value (FVO) Loan impairment charges and other credit risk (4,589) (
Slide 6: Continued reduction of balance sheet in the US
HSBC Finance Corporation Continued reduction of balance sheet in the US Customer loans1, US$bn 156.6 150.8 147.0 138.6 131.3 124.8 120.0 116.7 108.2 102.0 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 Pre 4Q09 1Q10 2Q10 180 day 2+ Delinquency1, 2, US$bn 20 20% 16.5 16.6 16.3 16.8 17.1 13.8 13.6 15 12.1 15% 12.
Slide 7: US customer loans – Run-off portfolio: Down 6% from March 2010
HSBC Finance Corporation US customer loans – Run-off portfolio: Down 6% from March 2010 Customer loans1 Run-off portfolio, US$bn 109.9 104.3 100.4 95.9 16.9 91.2 86.6 16.2 15.9 82.2 78.9 15.0 14.0 73.3 68.8 12.9 11.7 10.8 49.0 47.3 9.8 8.8 46.2 45.1 43.7 42.3 40.9 39.5 12.5 0.8² 1.0² 1.0² 1.0² 37.9
Slide 8: US Mortgages: Continuing to shrink the Mortgage Services portfolio
HSBC Finance Corporation US Mortgages: Continuing to shrink the Mortgage Services portfolio Mortgages Services Customer loans, US$bn 31.5 29.0 27.6 26.3 25.0 23.8 22.8 21.8 20.7 19.5 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 Pre 4Q09 1Q10 2Q10 180 day Mortgages Services 2+ Delinquency1, US$bn 15 18.1% 20.0
Slide 9: US Mortgages: Continuing to shrink the Consumer Lending mortgage portfolio
HSBC Finance Corporation US Mortgages: Continuing to shrink the Consumer Lending mortgage portfolio Consumer Lending Customer loans, US$bn 49.0 47.3 46.2 45.1 43.7 42.3 40.9 39.5 37.9 36.2 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 Pre 4Q09 1Q10 2Q10 180 day Consumer Lending 2+ Delinquency1, US$bn 6.2 6.5 7
Slide 10: Impairment allowance
HSBC Finance Corporation Impairment allowance Mortgage Services Real Estate Secured, US$m 3,819 723 3,508 572 360 (24) 451 (723) (647) 460 (602) (530) 353 1,931 (960) (640) (31) (650) Dec-08 1Q W/O 1Q LIC 2Q W/O 2Q LIC Other 09-Jun 3Q W/O 3Q LIC 4Q W/O 4Q W/O 4Q LIC 1Q W/O 1Q LIC 2Q W/O 2Q LIC Other
Slide 11: Managing risk: Credit Card
HSBC Finance Corporation Managing risk: Credit Card Credit Card Customer Loans, US$bn 29.3 29.0 28.6 26.3 25.1 23.9 23.2 20.9 20.0 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Credit Card 2+ Delinquencies1, US$bn 3 16% 2.0 2.1 1.8 1.8 1.8 1.8 12% 2 1.7 1.5 1.2 8% 1 8.0% 7.4% 7.6% 7.7% 6.9% 7.0% 5.7%
Slide 12: Managing risk: Private Label
HSBC Finance Corporation Managing risk: Private Label Private Label Customer Loans, US$bn 17.4 17.5 18.0 16.4 15.8 15.6 15.3 14.0 13.2 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Private Label 2+ Delinquencies1, US$bn 1 12% 0.7 0.7 0.7 0.7 0.7 0.6 0.6 8% 0.5 0.5 4% 4.1% 4.3% 4.3% 4.4% 4.2% 3.9% 3.6
Slide 13: Impairment allowance
HSBC Finance Corporation Impairment allowance Credit Card and Private Label, US$m 1,508 4,371 1,205 4,297 1,170 1,170 (15) 536 782 2,984 (1,305) (1,467) (1,339) (23) (1,301) (1,213) (1,095) Dec-08 Q1 W/0 Q1 LIC 2Q 2Q LIC Other Jun-09 3Q 3Q LIC 4Q 4Q LIC 1Q 1Q LIC 2Q 2Q LIC Other Jun-10 W/O W/O W/O W
Slide 14: Managing personal non-credit card run-off
HSBC Finance Corporation Managing personal non-credit card run-off Personal Non-Credit Card and Other Unsecured Customer Loans, US$bn 16.8 16.2 15.7 15.0 13.8 12.9 11.7 10.8 9.8 8.8 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 Pre 4Q09 1Q10 2Q10 180 day Personal Non-Credit Card and Other Unsecured 2+ Delinque
Slide 15: Managing vehicle finance run-off
HSBC Finance Corporation Managing vehicle finance run-off1 Vehicle Finance Customer Loans(2), US$bn 12.5 11.8 10.7 9.5 7.7 6.6 5.8 4.9 4.3 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 Vehicle Finance 2+ Delinquencies(1)(2), US$bn 0.6 15% 0.5 0.5 0.4 0.4 10% 0.3 0.3 0.3 0.3 0.2 0.2 0.2 5% 4.3% 5.0% 4
Slide 16: Loan impairment charges
HSBC Finance Corporation Loan impairment charges1,2 Core Portfolio, US$bn Total HSBC Finance Corp, US$bn 2 20% 5 20% 1.5 1.5 1.5 4.5 1.3 15% 1.2 1.2 1.2 0.8 4.2 12 .8 % 13 .3 % 13 .4 % 1 11.5 % 11.6 % 12 .1% 10% 10 .6 % 0.5 4 3.9 9 .2 % 5% 15% 5 .8 % 3.4 3.4 0 0% 3.2 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q
Slide 17: Amount written-off
HSBC Finance Corporation Amount written-off 1,2 Core Portfolio, US$bn Total HSBC Finance Corp, US$bn 2 20% 7 30% 6.5 1.5 1.3 1.3 1.3 1.2 15% 1.1 1.1 14 .0 % 1.0 1.0 13 .3 % 13 .4 % 6 13 .1% 25% 1 11.6 % 12 .8 % 10% 9 .9 % 8 .9 % 8 .8 % 5% 5 2 1.2 % 20% 0 0% 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q
Slide 18: 2+ Delinquency
HSBC Finance Corporation 2+ Delinquency1,2 Core Portfolio, US$bn Total HSBC Finance Corp, US$bn 3 2.7 2.8 15% 20 20% 2.5 2.5 2.5 2.4 2.3 2.0 2 1.7 10% 17.1 16.6 16.8 16.5 16.3 1 6 .6 % 6 .2 % 6 .4 % 6 .3 % 5% 5 .4 % 5 .8 % 5 .8 % 15 15% 4 .9 % 5 .0 % 13.8 13.6 14 .3 % 0 0% 12.4 13 .5 % 12.1 2Q08 3Q0
Slide 19: Impairment allowance
HSBC Finance Corporation Impairment allowance1,2 Core Portfolio, US$bn Total HSBC Finance Corp, US$bn 4.4 4.6 15% 16 16% 4.3 15.2 15.1 4.1 4.1 4.0 14.8 14.8 14.7 4 3.6 3.3 3.0 10% 10 .7 % 10 .5 % 10 .5 % 10 .3 % 9 .4 % 9 .5 % 13.1 8 .8 % 9 .0 % 7 .7 % 12.1 5% 12 11.5 12% 12 .3 % 11.8 % 11.5 % 10.3 0
Slide 20: Hong Kong Stock Code: 5
The Board of Directors of HSBC Holdings plc as at the date of this announcement are: S K Green, M F Geoghegan, S A Catz†, V H C Cheng, M K T Cheung†, J D Coombe†, R A Fairhead†, D J Flint, A A Flockhart, S T Gulliver, J W J Hughes-Hallett†, W S H Laidlaw†, J R Lomax†, G Morgan†, N R N Murthy†, Sir S