HSBC : 1Q 2021 Presentation to Investors and Analysts

HSBC Holdings plc 1Q21 Results

Presentation to Investors and Analysts

	1Q21 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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	1Q21 results	Appendix

1Q21 highlights

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Reported PBT of $5.8bn up 79% vs. 1Q20; adjusted PBT of $6.4bn up 109% vs. 1Q20 due to net ECL releases, offset by lower adjusted NII (down $1.3bn)

Good performance supported by $0.4bn net release of ECL; modest Stage 3 charges of $0.3bn incurred in the quarter, offset by Stage 1 - 2 releases of $0.7bn

On-track with cost and RWA reduction programmes; achieved $0.4bn of cost saves, cumulative RWA saves of $61bn1 (FY20: $52bn)

Strong capital, liquidity and funding; CET1 ratio2 of 15.9%, customer deposit surplus of $610bn increased by $5bn (1%) vs. 4Q20, 1Q21 adjusted lending growth of $6bn (1%)

A reconciliation of reported results to adjusted results can be found on slide 15, the remainder of the presentation unless otherwise stated, is presented on an adjusted basis

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	1Q21 results	Appendix

Business highlights

WPB

• Hong Kong card spend up 12% vs. 1Q20; Hong Kong mortgage drawdowns up 37% vs. 1Q20; UK mortgage drawdowns up 60% vs. 1Q20; UK mortgage market shares: 7.4% stock, 8.6% gross3
• Total Wealth balances of $1,633bn up 23% vs. 1Q20. Good quarter in NNM accumulation in Private Banking and Asset Management

Card spend and mortgage drawdowns, $bn

		1Q19	1Q20	1Q21
Hong Kong	Cards	5.8	5.9	6.6
Mortgages	2.8	1.7	2.4
UK	Cards	10.5	10.3	8.3
Mortgages	6.4	6.2	9.8

Private Bank and Asset Management NNM, $bn

14.5	20.2
	13.1	9.2	13.1 11.2
5.3		4.1
(0.0)
				(3.1)
1Q20	2Q20	3Q20		4Q20	1Q21
		PB	AMG

Wholesale

• Strong CMB pipeline of lending in place as we support clients in positioning themselves for economic recovery; 1Q21 approved lending volumes up 49% vs. 4Q20
• 1Q21 Capital Markets gross revenue of $451m4 (up 6% vs. 1Q20)
• Led more than $567bn of financing in 1Q21 (stable vs. 1Q20) for clients in the capital markets globally across DCM, ECM & Syndicated loans5, including c.$40bn raised through Social and Covid-19 response bonds5

Global CMB value of lending approved but not yet drawn down, $bn

25.4

2020 monthly average: $11.5bn

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20202021

Geographies

• Good performance across all regions

PBT by region, $bn	1Q20	1Q21
Asia	3.7	3.8
Europe	(0.7)	1.5
of which: UK RFB	0.4	1.1
of which: NRFB	(0.8)	0.9
North America	(0.0)	0.5
of which: US	(0.1)	0.3
MENA	0.0	0.3
LATAM	0.0	0.2
Total	3.1	6.4

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	1Q21 results	Appendix

Delivery against our strategy

Focus on our strengths

• Transformation continues at pace with cumulative gross RWA reductions of $61bn and $1.5bn of cumulative cost saves to date
• Strong start to our Asia Wealth strategy with Asia Wealth balances up
  18% vs. 1Q20; over 600 Asia Wealth FTE recruited in 1Q21, including c.100 client facing wealth planners in China
• c.$3bn net lending growth in trade finance in Asia over 1Q21, primarily in mainland China and Hong Kong
• Voted as world's top trade finance bank, and best trade bank in 13 markets in Asia6

Digitise at scale

• Partnering with Global Payments in Hong Kong to integrate PayMe into merchant checkouts
• HSBC Reward+ credit card rewards app in Hong Kong reached milestone of
  1 million downloads
• HSBCnet mobile downloads up 73% vs. 1Q20; volume of payments up 320% over same period
• HSBC Kinetic, our mobile-only UK SME banking proposition, now has c.6k users
• Launched first direct 'Straight Through Banking' in the UK; new customers can open an account on mobile, with a selfie, in minutes

Energise for growth

• New ways of working being piloted across the Group, increasing flexibility for all of our people, while being mindful of our customers' evolving needs
• We are rationalising our office presence and reducing our global office footprint by 3.6 million sqft (c.20%) in 2021; reflecting new ways of working
• Relocating key business heads from London to Hong Kong to better support clients and the business
• $6bn growth investment plan firmly on track

Transition to net zero

• Climate resolution to be tabled at May 2021 AGM
• HSBC is a founding signatory of the Net Zero Banking Alliance7
• c.90% of $621bn of Global Asset Management AUM classed as Responsible Investments8
• Launched UK pilot of new sustainability assessment tool to help SMEs understand their current ESG performance and help them take action
• Record quarter for global GSSS bond issuance, with 1Q21 issuance reaching c.50% of FY20 levels9; HSBC raised $68bn of GSSS financing for clients in 1Q219
• Awarded Environmental Finance Bond Awards in seven categories in 202110

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