HSBC : 3Q 2021 Presentation to Investors and Analysts

HSBC Holdings plc 3Q21 Results

Presentation to Investors and Analysts

	3Q21 results	Appendix

Our purpose, values and ambition support the execution of our strategy

Our purpose	Opening up a world of opportunity

Our ambition

To be the preferred international financial partner for our clients

Our values	 We value difference	 We succeed together	 We take responsibility	 We get it done

Our strategy

Focus on our strengths		Digitise at scale		Energise for growth		Transition to net zero

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	3Q21 results	Appendix

3Q21 highlights

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2

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Reported PBT of $5.4bn up 76% vs. 3Q20; adjusted PBT of $6.0bn up 36% vs. 3Q20, primarily due to net ECL release of $0.7bn

Execution of strategy continues at pace

NII stabilising; strong reported fee growth, up 11% vs. 3Q20; good growth in Asia revenue despite adverse insurance market impacts; good profit contribution from all regions

4 Liquidity remains strong; CET1 ratio1 of 15.9%; share buyback of $2bn announced

A reconciliation of reported results to adjusted results can be found on slide 16, the remainder of the presentation unless otherwise stated, is presented on an adjusted basis	2
Figures throughout this presentation may be subject to rounding adjustments and therefore may not sum precisely to totals given in charts, tables or commentary

	3Q21 results	Appendix

3Q21 results summary

$m	3Q21	3Q20
NII	6,610	6,646	(1)%
Non interest income	5,591	5,728	(2)%
Revenue	12,201	12,374	(1)%
ECL	659	(823)	>100%
Costs	(7,585)	(7,612)	0 %
Associates	721	459	57 %
Adjusted PBT	5,996	4,398	36 %
Significant items and FX translation	(593)	(1,324)	55 %
Reported PBT	5,403	3,074	76 %
Profit attributable to ordinary shareholders	3,543	1,359	>100%
Reported EPS, $	0.18	0.07	$0.11
Impact of sig items on reported EPS, $	(0.02)	(0.05)	$0.03
Reported RoTE2 (YTD, annualised), %	9.1	3.5		5.6ppt
$bn	3Q21	2Q21
Customer loans	1,040	1,045	(1)%
Customer deposits	1,688	1,647	2 %
Reported RWAs	839	862	(3)%
CET1 ratio, %	15.9	15.6		0.3ppt
TNAV per share, $	7.81	7.81		-

• Adjusted PBT of $6.0bn up $1.6bn (36%) vs. 3Q20, primarily due to a net ECL release of $0.7bn vs. $0.8bn charge in 3Q20
• Net interest income stable vs. 3Q20, with the global interest rate outlook improving
• Non-interestincome down 2% vs. 3Q20, primarily due to the impact of certain volatile items; strong fee income growth of $0.3bn (10%) vs. 3Q20 across all businesses3
• Net ECL release of $0.7bn reflecting continued stability in economic conditions and better than expected levels of credit performance
• Costs of $7.6bn stable vs. 3Q20, with continued investment and increased tech spend offset by cost saves and lower performance related pay accrual
• Associate income of $0.7bn up $0.3bn (57%) vs. 3Q20, primarily due to higher profits from BoCom
• Lending down $6bn vs. 2Q21, including the repayment of $14bn of short-term IPO loans and mortgage growth of $7bn
• TNAV per share of $7.81, with profits offsetting dividends paid and adverse FX movements

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	3Q21 results	Appendix

Business revenue growth drivers

WPB

CMB & GBM	Geographic performance

• 3Q21 Private Bank NNM of $3.9bn, with $3.1bn in Asia; AMG NNM of $4.3bn, with $1.3bn in Asia; reported Wealth Balances4 of $1.6tn, up 10% YoY
• Insurance VNB up 8% QoQ and 59% YoY due to strong growth in Hong Kong onshore business
• Over 450 Pinnacle Wealth Planners in-force5
• UK YTD gross mortgage market share of 8.6%; stock mortgage market share of 7.4%6
• Good new to bank customer acquisition e.g. in Premier

YTD global WPB new-to-bank Premier customers, '000s

• Encouraging trends in global trade visible; 3Q21 trade balances of $79bn up $3bn (4%) QoQ and up $13bn (20%) YoY, with share gains in key markets:
• • Hong Kong trade market share up 2.2ppt to 18.8%7
  • Singapore trade market share up 1.9ppt to 12.9%8
• GBM revenue stabilising, comparing well against strong 2020 performance
• • 3Q21 equities revenue of $0.3bn up $0.1bn (49%) YoY
  • 3Q21 Securities Services Assets Under Custody up
    23% YoY
• 3Q21 GBM RWAs decreased $20bn (7%) to $249bn YoY, with only a $105m (3%) decrease in revenue*

• Pivot to Asia: strong revenue trends; 3Q21 revenue up $99m (2%) QoQ including adverse market impacts of $331m; up $143m (2%) YoY, including adverse insurance market impacts of $194m
• Good UK RFB performance; 3Q21 revenue up 6% YoY and up 2% QoQ; strong 3Q21 fee growth, fees up 25% YoY, up 13% QoQ

Sustainability

• Helped our clients raise c.$170bn YTD in Green, Social and Sustainable bonds9, up 58% YoY

23%

260

211

Global CMB value of approved limits**, $bn

2020 quarterly average: $34.5bn

• Joint lead manager on £10bn UK Debt Management Office inaugural green gilt
• Partnership announced with Temasek to

64.4establish sustainable infrastructure debt financing platform

9M20

9M21

										 Work underway on May 2021 AGM
	Q1	Q2	Q3	Q4	Q1	Q2	Q3
	special resolution on climate
		2020				2021			commitments

* Including adverse XVAs of $84m	4
** Includes renewal and refinancing activity. Note, clients may elect not to draw down on approved limits