HSBC : 1Q21 EARNINGS RELEASE AUDIO WEBCAST AND CONFERENCE CALL

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HSBC Holdings plc

Overseas Regulatory Announcement

The attached announcement has been released to the other stock exchanges on which HSBC Holdings plc is listed.

The Board of Directors of HSBC Holdings plc as at the date of this announcement comprises: Mark Tucker*, Noel Quinn, Laura Cha† , Henri de Castries† , James Anthony Forese† , Steven Guggenheimer† , Irene Lee† , José Antonio Meade Kuribreña† , Heidi Miller† , Eileen K Murray† , David Nish† , Ewen Stevenson, Jackson Tai† and Pauline van der Meer Mohr† .

* Non-executive Group Chairman

• Independent non-executive Director
  Hong Kong Stock Code: 5

HSBC Holdings plc

Registered Office and Group Head Office:

8 Canada Square, London E14 5HQ, United Kingdom Web: www.hsbc.com

Incorporated in England with limited liability. Registered in England: number 617987

27 April 2021

HSBC HOLDINGS PLC

1Q21 EARNINGS RELEASE

AUDIO WEBCAST AND CONFERENCE CALL

HSBC will be holding an audio webcast presentation and conference call today for investors and analysts. The speakers will be Noel Quinn (Group Chief Executive) and Ewen Stevenson (Group Chief Financial Officer).

A copy of the presentation to investors and analysts is attached and is also available to view and download at https://www.hsbc.com/investors/results-and-announcements/all-reporting/group.

Full details of how to access the conference call appear below and details of how to access the webcast can also be found at www.hsbc.com/investors/results-and-announcements.

Time: 7.30am (London); 2.30pm (Hong Kong); and 2.30am (New York).

Webcast:https://streamstudio.world-television.com/CCUIv3/registration.aspx?ticket=768-1956-28182&target=en-default-&status=preview&browser=ns-0-1-0-0-0

Conference call access numbers:

Restrictions may exist when accessing freephone/toll-free numbers using a mobile telephone.

Passcode: 8373996
	Toll-free	Toll
UK	0808 238 1616
US	1 866 551 9263
Hong Kong	800 967 131
International		[phone]

Replay access details from 27 April 2021 1:00pm BST - 27 May 2021 1:00pm BST

Passcode: 8373996
	Toll-free	Toll
UK	0808 238 0667
US	1 866 331 1332
Hong Kong	58085596
International		[phone]

Note to editors:

HSBC Holdings plc

HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 64 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,959bn at 31 March 2021, HSBC is one of the world's largest banking and financial services organisations.

ends/all

Registered Office and Group Head Office:

8 Canada Square, London E14 5HQ, United Kingdom Web: www.hsbc.com

Incorporated in England with limited liability. Registered number 617987

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

1

	1Q21 results	Appendix

1Q21 highlights

1

2

3

4

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

2

	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

1

2

3

4

5

6

7

8

9

10 11 12

1

2

3

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

3

	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

4

	1Q21 results	Appendix

1Q21 results summary

$m	1Q21	1Q20
NII	6,496	7,817	(17)%
Non interest income	6,777	5,896	15 %
Revenue	13,273	13,713	(3)%
ECL	435	(3,117)	>100%
Costs	(8,203)	(7,983)	(3)%
Associates	885	450	97 %
Adjusted PBT	6,390	3,063	>100%
Significant items and FX translation	(611)	166	>(100)%
Reported PBT	5,779	3,229	79 %
Reported profit after tax	4,568	2,508	82 %
Profit attributable to ordinary shareholders	3,880	1,785	>100%
Reported EPS, $	0.19	0.09	$0.10
Impact of sig items on reported EPS, $	(0.03)	0.01	$(0.04)
$bn	1Q21	4Q20
Customer loans	1,040	1,034	1%
Customer deposits	1,650	1,638	1%
Reported RWAs	847	858	(1)%
CET1 ratio, %	15.9	15.9		0.0ppt
TNAV per share, $	7.78	7.75	$0.03
RoTE11, %	10.2	1.9		8.3ppt

• Adjusted PBT of $6.4bn up $3.3bn (109%) vs. 1Q20, primarily due to favourable ECL performance
• Revenue of $13.3bn down $0.4bn (3%) vs. 1Q20 due to the impact of lower interest rates, partially offset by favourable movements in volatile items. Good performance in Global Debt Markets, Equities and Wealth
• Net ECL release of $0.4bn, vs. $3.1bn charge in 1Q20, reflecting improvements in the forward economic outlook and non-repeatof a significant charge relating to a corporate exposure in Singapore in 1Q20
• Low 1Q21 Stage 3 charges of $0.3bn, release of Stage 1 - 2 reserves of $0.7bn
• Costs of $8.2bn, up $0.2bn (3%) vs. 1Q20, primarily due to increased technology spend (+$0.1bn) and performance related pay (+$0.5bn), partially offset by programme saves ($0.4bn)
• Associate income increased $435m (97%) vs. 1Q20; of which BoCom: $198m; of which a UK Associate: $236m
• 1Q21 effective tax rate of 21%, down 1.3ppt vs. 1Q20
• TNAV per share up to $7.78 due to increases in retained profits, offset by adverse reserve movements in OCI

5

	1Q21 results	Appendix

1Q21 adjusted revenue performance

1Q21 revenue

1Q21 vs. 1Q20

Wealth

$2,382m

o/w insurance market

934

impacts: $790m

WPB

$5,694m

(1)%

Personal Banking

$3,051m

(890)

Other

$261m

(122)

GTRF

$455m

(27)

CMB

$3,331m

(14)%

Credit and Lending

$1,468m

(495)

32

GLCM

$862m

Other

$546m

(37)

MSS

$2,492m

143

o/w XVAs and bid-offer

adjustment: $725m

Banking

$1,630m

(155)

GBM

$4,292m

10%

of which: GLCM

$444m

(171)

Principal Investments

$173m

413

Other

$(3)m

(5)

$(44)m

(231)

differences: $(287)m

Corp. Centre

o/w valuation

Group

$13,273m

(3)%

(440)

1,306

Positive impact of volatile items

Revenue by global business, $bn

				(3)%
13.7
	13.3
	0.2		12.0
3.9		4.3
				3.6

3.9 3.2 3.3

5.8 5.4 5.7

		(0.2)			0.0
1Q20	4Q20	1Q21
WPB		GBM
CMB		Corporate Centre

Totals may not cast due to rounding

6

	1Q21 results	Appendix

Net interest income

Reported NIM progression, bps

	122						121
		(3)			(1)
		2

4Q20

Asset yields

Liability

Change in mix

1Q21

costs

Totals may not cast due to rounding

Reported NIM trend

Discrete quarterly

154bps

133bps

(1)bp

reported NIM

120bps

122bps

121bps

Reported NII, $m

of which:

7,612

6,897

6,450

6,619

6,514

significant items

Average interest

earning assets,

$bn

26

18

(48)

1

1Q20

2Q20

3Q20

4Q20

1Q21

1,992

2,078

2,141

2,159

2,179

• 1Q21 reported NII of $6.5bn down $1.1bn
  (14%) vs. 1Q20 from lower global interest rates, partially offset by increased AIEAs; 1Q21 NII down modestly ($0.1bn, 2%) vs. 4Q20
• 1Q21 NIM of 1.21% down 1bp vs. 4Q20; mainly due to a further shift in the asset mix towards lower-yieldingassets and falling rates causing further compression between asset and liability pricing in some entities
• FY21 NII expectations unchanged

7

	1Q21 results	Appendix

Non interest income

WPB, $m	Net fees	Other income
				208	(30)	(51)	2,188
1,294		767
					1,629
1,507
						559
(213)
1Q20	Insurance	Other	Personal	Other	1Q21
			Wealth	banking	WPB

• WPB non-NII up $894m (69%) vs. 1Q20, primarily from positive movement in market impacts in Insurance ($0.8bn total), and also supported by strong equity and mutual fund sales in Wealth in 1Q21
• Lower fees in Personal Banking due primarily to a change in charging structure on UK overdrafts

 1Q21 Group non-NII was

$6.8bn, up $0.9bn (15%) vs.

1Q20; up $1.5bn (28%) vs.

4Q20

CMB, $m

1,191													1,169
	(17)			(9)			(9)			13
934											888
		257																281
	1Q20	GLCM	GTRF	C&L	Other	1Q21
														CMB

• CMB non-NII modestly down ($22m, 2%) vs. 1Q20
• Net fees decreased $46m (5%), reflecting the continued impact of Covid-19 on trade and payment volumes

 1Q20 non-NII negatively

impacted by volatile items

totalling $1.2bn, primarily

market impacts in Insurance

and XVAs and bid-offer

adjustments in GBM

 Corporate Centre down $0.6bn

vs. 1Q20 mainly due to

GBM, $m
2,625		6	4	29	213	3,267
390	949
791
1,834						2,318
1Q20	MSS	GLCM	GTRF	Other	Other	1Q21
				Banking	GBM

• GBM non-NII up $642m (24%) vs. 1Q20, primarily from the absence of MTM impacts and increased volatility
• Fees increased by $158m (20%), notably in Securities Services and Banking due to higher volumes
• Trading and other income increased by $484m (26%). Strong performance in Global Debt Markets and Equities reflecting robust client activity, partially offset by Global FX, lower against an exceptionally strong 1Q20

valuation differences on long

term debt and associated

swaps

8

	1Q21 results	Appendix

Credit performance

Adjusted ECL charge/(release) trend

0.81

1.15	1.51
			Net release
		0.30	0.45
			(0.17)
3,117	4,134
		819	1,201	(435)
1Q20	2Q20	3Q20	4Q20	1Q21

ECL as a % of average gross loans and advances (annualised)

ECL, $m

FY ECL as a % of average gross loans and advances

 1Q21 net ECL release of $0.4bn; Stage

3 charge of $0.3bn, with Stage 1 - 2

releases of $0.7bn

 Benign quarter with respect to Stage 3

charges (Wholesale: $0.2bn; Personal:

$0.1bn)

 Stage 3 loans and advances to customers

as a % of total loans was 1.8%, stable vs.

ECL charge/(release) by geography, $m			ECL charge/(release) by stage, $bn
	519			4Q20	1Q21		1Q21	Stage 1-2	Stage 3	Total
			259
218	103	220					Wholesale	(0.6)	0.2	(0.4)
85		35
					Personal	(0.2)	0.1	(0.0)
	(53)	(46)			(118)	(168)		Total	(0.7)	0.3	(0.4)
	(288)
Hong	Asia UK RFB	NRFB	Mexico	Other
Kong	ex. HK

31 December 2020

 Group credit quality indicators stable

 1Q21 Stage 1 - 2 ECL allowance was

$6.9bn, $1.0bn lower vs. 4Q20

 Based on current economic trajectory,

expect FY21 ECL charge to be below

medium-term12 planning range of 30-

40bps

9

	1Q21 results	Appendix

Adjusted costs

Operating expenses trend, $m

			9,255	8,203
7,983	7,689	7,663		802
1,554	1,450	1,573
1,355	1,342
6,429	6,334	6,321	7,003	6,630

1Q20	2Q20	3Q20	4Q20	1Q21
	UK bank levy	Technology13	Other Group costs

• 1Q21 costs of $8.2bn up $0.2bn (3%) vs. 1Q20. Cost saves were offset primarily by increased performance-related pay (PRP) (+$0.5bn, of which $0.4bn is due to a change in the quarterly phasing of the 2021 PRP pool)
• 1Q21 costs down $0.3bn (3%) vs. 4Q20 (ex. levy) primarily from the non- recurrence of certain charges in 4Q20 and cost saves made in the quarter, partly offset by higher technology spend
• Benefit of cost saves in 1Q21 of $0.4bn; CTA of $0.3bn, still expect $3.5bn of CTA spend for FY21
• Expect FY21 costs (ex. levy) to be broadly stable vs. FY20, but reserve the option to adjust our performance-related pay accrual to reflect the performance of the Group

1Q21 vs. 4Q20 (ex. levy), $m				1Q21 vs. 1Q20, $m
			(3)%								3%
	(10)			157									157
		(142)		(284)			25			(97)	104
		29
							(443)	474
8,453												8,203
					8,203	7,983
4Q20	Inflation	Cost	Discretionary	Tech	Other	1Q21	1Q20	Inflation	Cost	PRP	Other	Tech	Other	1Q21
		saves	spend	spend14	items				saves		discretionary	spend14	items
*Other discretionary spend includes Marketing, Travel and Entertainment							spend*			10

	1Q21 results	Appendix

Capital adequacy

CET1 ratio, %

0.1 (0.0)

	15.9		0.4	(0.4)			15.9
			(0.1)

4Q20	Capital	Change	FX translation	Other	Dividend	1Q21
	generation	in RWAs	differences		deduction*

CET1, $bn

136.1

3.5

(1.1)

(3.2)

(0.8)

134.5

RWAs, $bn 857.5

(6.0)

(4.7)

846.8

Capital progression

		1Q20	2Q20	3Q20	4Q20	1Q21
Common equity tier 1 capital, $bn	125.2	128.4	133.4	136.1	134.5
Reported risk-weighted assets, $bn	857.1	854.6	857.0	857.5	846.8
CET1 ratio, %	14.6	15.0	15.6	15.9	15.9
Leverage ratio exposure, $bn	2,782.7	2,801.4	2,857.4	2,897.1	2,930.2
Leverage ratio2, %	5.3	5.3	5.4	5.5	5.4

• CET1 ratio of 15.9% was stable vs. 4Q20, with retained profits offset by fair value movements and other deductions
• Reported RWAs decreased by $10.7bn (1%), of which $4.7bn was due to FX movements. Reductions, primarily from GBM management actions, were partially offset by lending growth in CMB and WPB
• 1Q21 cumulative RWA saves of $61bn (FY20: $52bn)**; on track to deliver >$100bn saves by end-2022

*Foreseeable dividend deduction of 3.75¢ per share, 25% of FY20 dividend of $0.15. Please see page 28 of the HSBC Holdings plc 1Q21 Earnings Release for further detail	11
**Cumulative RWA saves under our transformation programme as measured from 1 January 2020 to 31 March 2021. In addition, we made $9.6bn of accelerated RWA saves over 4Q19

	1Q21 results	Appendix

Summary

1

2

3

4

A strong quarter, given the persistence of ultra-low interest rates; net release of ECL reserves supported improved profitability vs. 1Q20

We saw good business growth in areas of strategic focus and continue to deliver against our strategic ambitions

Strong lending pipeline build in Personal Banking and CMB

Cautiously optimistic on the remainder of 2021; we maintain conservative positions on capital, funding, liquidity and credit

12

Appendix

1Q21 results	Appendix

Key financial metrics

Reported results, $m	1Q21	4Q20	1Q20
NII	6,514	6,619	7,612
Other Income	6,472	5,138	6,074
Revenue	12,986	11,757	13,686
ECL	435	(1,174)	(3,026)
Costs	(8,527)	(9,864)	(7,852)
Associates	885	666	421
Profit before tax	5,779	1,385	3,229
Tax	(1,211)	(450)	(721)
Profit after tax	4,568	935	2,508
Profit attributable to ordinary shareholders	3,880	562	1,785
Profit attributable to ordinary shareholders excl.	3,940	751	1,531
goodwill and other intangible impairment and PVIF
Basic earnings per share, $	0.19	0.03	0.09
Diluted earnings per share, $	0.19	0.03	0.09
Dividend per share (in respect of the period), $	-	0.15	-
Return on avg. tangible equity (annualised), %	10.2	1.9	4.2
Return on avg. equity (annualised), %	9.0	1.3	4.4
Net interest margin (annualised), %	1.21	1.22	1.54
Adjusted results, $m	1Q21	4Q20	1Q20
NII	6,496	6,718	7,817
Other Income	6,777	5,307	5,896
Revenue	13,273	12,025	13,713
ECL	435	(1,201)	(3,117)
Costs	(8,203)	(9,255)	(7,983)
Associates	885	679	450
Profit before tax	6,390	2,248	3,063
Cost efficiency ratio, %	61.8	77.0	58.2
ECL charge/(release) as a % of average gross loans	(0.17)	0.45	1.15
and advances to customers (annualised)

Balance sheet, $m	1Q21	4Q20	1Q20
Total assets	2,958,629	2,984,164	2,917,810
Net loans and advances to customers	1,040,207	1,037,987	1,040,282
Adjusted net loans and advances to customers	1,040,207	1,033,926	1,101,170
Customer accounts	1,650,019	1,642,780	1,440,529
Adjusted customer accounts	1,650,019	1,637,593	1,515,555
Average interest-earning assets, QTD	2,178,918	2,159,003	1,991,702
Reported loans and advances to customers as % of customer	63.0	63.2	72.2
accounts
Total shareholders' equity	199,210	196,443	189,771
Tangible ordinary shareholders' equity	157,357	156,423	150,019
Net asset value per ordinary share at period end, $	8.64	8.62	8.30
Tangible net asset value per ordinary share at period end, $	7.78	7.75	7.44

Capital, leverage and liquidity	1Q21	4Q20	1Q20
Reported risk-weighted assets, $bn	846.8	857.5	857.1
CET1 ratio, %	15.9	15.9	14.6
Total capital ratio (transitional), %	21.6	21.5	20.3
Leverage ratio, %	5.4	5.5	5.3
High-quality liquid assets (liquidity value), $bn	695.1	677.9	617.2
Liquidity coverage ratio, %	143	139	156

Share count, m	1Q21	4Q20	1Q20
Basic number of ordinary shares outstanding	20,226	20,184	20,172
Basic number of ordinary shares outstanding and dilutive	20,335	20,272	20,245
potential ordinary shares
Average basic number of ordinary shares outstanding, QTD	20,191	20,179	20,161

14

				1Q21 results	Appendix
Reconciliation of reported and adjusted PBT
	$m	1Q21	4Q20	1Q20
	Reported PBT	5,779	1,385	3,229
	Revenue
	Currency translation	-	204	393
	Customer redress programmes	(18)	(1)	-
	Disposals, acquisitions and investment in new businesses	-	2	7
	Fair value movements on financial instruments	239	46	(357)
	Restructuring and other related costs	66	20	(9)
	Currency translation of significant items	-	(3)	(7)
		287	268	27
	ECL
	Currency translation	-	(27)	(91)
	Operating expenses
	Currency translation		(165)	(307)
	-
	Customer redress programmes	(10)	(107)	1
	Impairment of goodwill and other intangibles	-	8	-
	Past service costs of guaranteed minimum pension benefits equalisation	-	17	-
	Restructuring and other related costs	334	836	170
	o/w: costs to achieve	319	810	125
	Settlements and provisions in connection with legal and regulatory matters	-	4	1
	Currency translation of significant items	-	16	4
		324	609	(131)
	Share of profit in associates and joint ventures
	Currency translation	-	13	29
	Impairment of goodwill	-	-	-
		-	13	29
	Total currency translation and significant items	611	863	(166)
	Adjusted PBT	6,390	2,248	3,063
	Memo: tax on significant items15 (at reported FX rates)	(74)	(381)	4

15

1Q21 results	Appendix

Certain items included in adjusted revenue

Certain items included in adjusted revenue highlighted in	1Q21	4Q20	3Q20	2Q20	1Q20
management commentary, $m
Insurance manufacturing market impacts in WPB	76	299	126	364	(714)
Credit and funding valuation adjustments in GBM	33	72	35	(12)	(364)
Legacy Credit in Corporate Centre	9	3	28	42	(93)
Valuation differences on long-term debt and associated swaps in	(28)	(12)	(32)	(64)	259
Corporate Centre
Argentina hyperinflation16*	(46)	(42)	(31)	(29)	(22)
Bid-offer adjustment in GBM*	18	7	35	249	(310)
Total	62	327	161	550	(1,244)

*Comparative figures have not been retranslated for foreign exchange movements	16

1Q21 results	Appendix

Global business management view of adjusted revenue

Group, $m	1Q20	2Q20	3Q20	4Q20	1Q21	∆1Q20
Total Group revenue	13,713	13,838	12,453	12,025	13,273	(3)%
Adjusted revenue reported at original FX rates	13,327	13,150	12,065	11,824
WPB17, $m	1Q20	2Q20	3Q20	4Q20	1Q21	∆1Q20
Wealth	1,448	2,249	2,195	2,070	2,382	65 %
Investment distribution	900	738	885	742	1,025	14 %
Life insurance manufacturing	(224)	807	607	630	568	>100%
Private banking	530	429	427	412	488	(8)%
Net interest income	221	166	145	158	156	(29)%
Non-interest income	309	263	282	254	332	7 %
Asset management	242	275	276	286	301	24 %
Personal Banking	3,941	3,238	3,109	3,101	3,051	(23)%
Net interest income	3,583	2,978	2,787	2,773	2,703	(25)%
Non-interest income	358	260	322	328	348	(3)%
Other	383	415	295	226	261	(32)%
Total	5,772	5,902	5,599	5,397	5,694	(1)%
Adjusted revenue reported at original FX rates	5,621	5,630	5,441	5,321
CMB, $m	1Q20	2Q20	3Q20	4Q20	1Q21	∆1Q20
GTRF	482	443	439	429	455	(6)%
Credit and Lending	1,436	1,441	1,490	1,490	1,468	2 %
GLCM	1,357	1,048	947	912	862	(36)%
Markets products, Insurance and Investments and other	583	520	391	375	546	(6)%
of which: share of revenue from MSS and Banking products	268	223	229	235	259	(3)%
Total	3,858	3,452	3,267	3,206	3,331	(14)%
Adjusted revenue reported at original FX rates	3,733	3,267	3,165	3,147

GBM18, $m	1Q20	2Q20	3Q20	4Q20	1Q21	∆1Q20
Markets and Securities Services	2,349	2,676	2,082	1,945	2,492	6 %
Securities Services	528	457	421	442	452	(14)%
Global Debt Markets	261	774	307	119	396	52 %
Global Foreign Exchange	1,390	1,097	850	830	952	(32)%
Equities	270	45	235	304	419	55 %
Securities Financing	264	315	234	178	240	(9)%
Credit and Funding Valuation Adjustments	(364)	(12)	35	72	33	>100%
Banking	1,785	1,774	1,639	1,590	1,630	(9)%
GTRF	173	191	178	169	178	3 %
GLCM	615	501	464	469	444	(28)%
Credit and Lending	669	682	691	658	654	(2)%
Capital Markets & Advisory	145	386	287	256	291	>100%
Other	183	14	19	38	63	(66)%
GBM Other	(238)	216	22	39	170	>100%
Principal Investments	(240)	229	54	72	173	>100%
Other	2	(13)	(32)	(33)	(3)	>(100)%
Total	3,896	4,666	3,743	3,574	4,292	10 %
Adjusted revenue reported at original FX rates	3,759	4,419	3,614	3,511
Corporate Centre, $m	1Q20	2Q20	3Q20	4Q20	1Q21	∆1Q20
Central Treasury	265	(64)	(32)	(12)	(28)	>(100)%
Of which: Valuation differences on long-term debt and	259	(64)	(32)	(12)	(28)	>(100)%
associated swaps
Legacy Credit	(93)	42	28	3	9	>100%
Other	15	(160)	(152)	(143)	(25)	>(100)%
Total	187	(182)	(156)	(152)	(44)	>(100)%
Adjusted revenue reported at original FX rates	214	(166)	(155)	(155)

17

1Q21 results	Appendix

Wealth and Personal Banking

1Q21 financial highlights

Revenue				$5.7bn	(1)%
				(1Q20: $5.8bn)
ECL				$0.0bn	>100%
				(1Q20: $(1.1)bn)
Costs				$(3.8)bn	4%
				(1Q20: $(3.9)bn)
PBT				$1.9bn	>100%
				(1Q20: $0.7bn)
RoTE19				18.8%			16.7ppt
													(1Q20: 2.1%)
Revenue performance, $m
									(1)%
5,772	5,902	5,599	5,397	5,694
							364
									126			299				76
	(714)
383
														261
							415			295
3,941							226
	3,238	3,109			3,051
	3,101
2,162		1,885	2,069	1,771	2,306
	1Q20	2Q20	3Q20	4Q20	1Q21
				Wealth excl. market impacts	Other
				Personal banking				Insurance manufacturing
												market impacts

Balance sheet, $bn
		8%
	4%	833	843
783
454	468		474
1Q20	4Q20	1Q21
	Customer		Customer
	lending		accounts

Reported Wealth Balances20, $bn

				23%
				1,588	1,633
1,333
394	413
329
	407	425
336
	470	473
429
	317	322
239
1Q20	4Q20	1Q21

Global Private Banking Client Assets

Retail Wealth Balances

Premier and Jade deposits

Asset Management third party distribution

1Q21 vs. 1Q20

• Revenue down $78m (1%) driven by lower Personal Banking (down $890m) following interest rate cuts, partially offset by favourable insurance market impacts of $790m as 1Q20 markets reacted sharply to the Covid-19 outbreak
• ECL release of $18m vs. $1.1bn charge in 1Q20, reflecting a release of allowances, notably in the UK, compared to a significant build up of allowances in 1Q20 following the Covid-19 outbreak
• Costs down $140m (4%) with reductions in discretionary spend more than offsetting inflation and investment in digital & Wealth
• Customer lending up $20bn (4%) driven by mortgages ($22bn), Lombard lending ($2bn) and short term IPO loans ($1bn), partially offset by lower card spend and unsecured lending in the UK ($5bn)
• Customer accounts up $59bn (8%) mainly from higher inflows and reduced spending across all markets and most notably UK / Hong Kong
• Wealth balances up $300bn (23%) driven by inflows into both liquidity and long-term products as well as higher market levels

1Q21 vs. 4Q20

• Revenue up $297m (6%) driven by a strong start to the year in Wealth excl. market impacts (up $535m), particularly in Asia, and seasonality; partially offset by lower insurance market impacts (down $223m)
• ECL down $333m, reflecting an improved forward economic outlook
• Costs down $253m (6%) following a real estate impairment and seasonal costs incurred in 4Q20 including targeted marketing campaigns
• Customer lending up $6bn (1%) with underlying growth in mortgages ($4bn), Lombard Lending ($3bn) and short term IPO loans in Hong Kong ($1bn) partially offset by reduction in card balances ($2bn)
• Customer accounts up $10bn (1%) particularly in the UK following lockdown extension

18

1Q21 results	Appendix

Commercial Banking

1Q21 financial highlights

Revenue	$3.3bn	(14)%
(1Q20: $3.9bn)
ECL	$0.2bn	>100%
(1Q20: $(1.4)bn)
Costs	$(1.8)bn	0%
(1Q20: $(1.8)bn)
PBT	$1.8bn	>100%
(1Q20: $0.7bn)
RoTE19	11.5%	8.8ppt
		(1Q20: 2.7%)

Revenue performance, $m

			(14)%			4%
3,858	3,452
			3,331
583	3,267	3,206
482	520	391	375	546
1,436	443	439	429	455
1,441	1,490	1,490	1,468
1,357	1,048	947	912	862
1Q20	2Q20	3Q20	4Q20	1Q21

Markets products, Insurance	GTRF
and Investments and Other
Credit and Lending	GLCM

Balance sheet, $bn

Customer lending

(7)%

1%

370 342 344

1Q20 4Q20 1Q21

Customer accounts

17%

0%

469 471

401

1Q20 4Q20 1Q21

1Q21 vs. 1Q20

• Revenue down $527m (14%), reflecting the impact of lower global interest rates in GLCM and other products partially offset by higher deposits
• ECL down $1.7bn due to release of stage 1 - 2 allowances in the UK and Asia, and the prior year included a material stage 3 charge in Singapore
• Costs are stable driven by continued cost discipline partly offset by higher performance-related pay
• Customer lending down $26bn (7%) due to impact of Covid-19 on lending and trade balances partly offset by government schemes
• Customer accounts up $70bn (17%) as customers raised and retained liquidity across all regions

1Q21 vs. 4Q20

• Revenue up $125m (4%), reflecting higher markets and treasury, insurance revenue, higher trade balances and seasonality in fees.
• ECL down $1.1bn reflecting release of stage 1 - 2 allowances and lower stage 3 charges notably in Asia and the UK
• Costs down $38m (2%) due to continued cost discipline while we continued to invest in our digital and transaction banking capabilities
• Customer lending up $2bn (1%) mainly trade balances in Asia (up $3bn) with lending pipeline up 49%
• Customer accounts broadly stable (up $2bn) as customers continue to retain liquidity

19

1Q21 results	Appendix

Global Banking and Markets

1Q21 financial highlights

Revenue	$4.3bn	10%
(1Q20: $3.9bn)
ECL	$0.2bn	>100%
(1Q20: $(0.6)bn)
Costs	$(2.5)bn	(3)%
(1Q20: $(2.5)bn)
PBT	$1.9bn	>100%
(1Q20: $0.9bn)
RoTE19	12.1%	5.8ppt
		(1Q20: 6.3%)

Revenue performance, $m

				10%								20%
				4,666									4,292
3,896	216
3,743	3,574		170
				1,774		22
1,785					39		1,630
	1,639
				1,590
2,349		2,676	2,082	1,945	2,492
	(238)
								4Q20	1Q21
	1Q20	2Q20	3Q20
					MSS	Banking	Other

View of adjusted revenue

$m	1Q21 ∆1Q20
MSS	2,492	6 %
Securities Services	452	(14)%
Global Debt Markets	396	52 %
Global FX	952	(32)%
Equities	419	55 %
Securities Financing	240	(9)%
XVAs	33	>100%
Banking	1,630	(9)%
GTRF	178	3 %
GLCM	444	(28)%
Credit & Lending	654	(2) %
Capital Markets &	291	>100%
Advisory
Other	63	(66)%
GBM Other	170	>100%
Principal Investments	173	>100%
Other	(3)	>(100)%
Net operating income	4,292	10 %

Adjusted RWAs21, $bn

(14)% (3)%

295 263 255

1Q20 4Q20 1Q21

1Q21 vs. 1Q20

• Revenue up $396m (10%):
• Markets and Securities Services up $143m (6%) against an exceptionally strong 1Q20 performance, particularly in Global Forex. Revenue in Global Debt Markets and Equities increased, particularly in wealth and private credit, reflecting robust client activity
• Banking down $155m (9%), reflecting impact of lower global interest rates in GLCM and the effect of widening credit spreads on portfolio hedges in 1Q20, partially offset by a strong performance in Capital Markets & Advisory as we grew our Investment Banking fees
• GBM Other up $408m (>100%) primarily from Principal Investments reflecting revaluation gains across multiple funds
• ECL in 1Q21 of $190m credit reflects releases across regions, compared to Covid-19 related allowances in 1Q20
• Costs were 3% higher as the impact of transformational initiatives were more than offset by higher performance-related pay and regulatory costs of $150m

1Q21 vs. 4Q20

• Revenue up $718m (20%):
• Markets and Securities Services up $547m (28%) due to increased client activity levels compared to 4Q20
• Banking performance in line with prior quarter driven by increase in Capital Markets & Advisory fees and impact of tightening credit spreads on portfolio hedges in the prior quarter, offset by reduction in Credit & Lending NII due to lower balances
• ECL favourable by $183m (>100%) compared to 4Q20 reflecting releases in 1Q21 across regions
• RWAs down $9bn (3%) primarily driven by management actions

20

1Q21 results	Appendix

Corporate Centre

1Q21 financial highlights

Revenue	$(44)m	>(100)%
(1Q20: $187m)
ECL	$(3)m	>(100)%
(1Q20: $2m)
Costs	$(94)m	>(100)%
(1Q20: $185m)
Associates	$876m	93%
(1Q20: $454m)
PBT	$735m	(11)%
(1Q20: $828m)
RoTE19	7.4%	2.6ppt
		(1Q20: 4.8%)
Associate income detail, $m

Revenue performance, $m

	1Q20	2Q20	3Q20	4Q20	1Q21
Central Treasury	265	(64)	(32)	(12)	(28)
Of which:
Valuation differences on long-term debt and	259	(64)	(32)	(12)	(28)
associated swaps
Other central treasury	6	-	-	-	-
Legacy Credit	(93)	42	28	3	9
Other	15	(160)	(152)	(143)	(25)
Of which: FX revaluation on Holdings balance	105	23	(26)	(4)	11
sheet and net investment hedge
Total	187	(182)	(156)	(152)	(44)
Not included in Corporate Centre revenue: Markets	781	801	678	609	805
Treasury revenue allocated to global businesses

								93%							30%
															876
				601					674				137
454				58		448				48		38
					150
	56
										8
503		630		78	476	701
		362
(105)		(87)
			3Q20						1Q21
1Q20	2Q20			4Q20
				Bank of Communications	SABB	Others

Corporate Centre RWAs21, $bn

		10%			2%
					93
		92
85
37	40	41
48	52	52
1Q20	4Q20	1Q21
		Associates	Other

1Q21 vs. 1Q20

• Revenue down $231m, largely due to unfavourable valuation differences on long term debt and associated swaps
• Associates up $422m (93%), primarily due to higher income and share of profit from associates in Asia and a recovery in asset valuations in a UK associate

1Q21 vs. 4Q20

• Revenue up $108m, largely due to gain on revaluation of properties in Asia, lower intersegment eliminations related to movement in own shares and FX gain on revaluation
• Associates up $202m (30%), primarily due to higher income and share of profits associates in Asia

21

1Q21 results	Appendix

Net interest margin supporting information

NII sensitivity to instantaneous change in yield curves (12 months)

At 31 December 2020

Change in Jan			Currency
USD	HKD	GBP	EUR	Other	Total
2021 to Dec 2021
	$m	$m	$m	$m	$m	$m
+25bps parallel	223	423	555	126	320	1,647
-25bps parallel	(227)	(343)	(548)	(88)	(302)	(1,508)
+100bps parallel	546	1,267	1,811	502	1,222	5,348
-100bps parallel	(565)	(749)	(1,906)	(299)	(1,335)	(4,854)

NII sensitivity to instantaneous change in yield curves (5 years), $m

At 31 December 2020

Change in Jan	Year 1	Year 2	Year 3	Year 4	Year 5	Total
2021 to Dec 2021
+25bps parallel	1,647	1,866	1,930	2,028	2,100	9,571
-25bps parallel	(1,508)	(1,986)	(2,307)	(2,045)	(2,113)	(9,959)
+100bps parallel	5,348	6,538	7,083	7,444	7,736	34,149
-100bps parallel	(4,854)	(6,174)	(7,087)	(7,660)	(8,323)	(34,098)

Quarterly NIM by key legal entity

	1Q20 2Q20 3Q20 4Q20 1Q21	% of 1Q21	% of 1Q21
	Group NII Group AIEA
The Hongkong and
Shanghai Banking	1.96%	1.69%	1.44%	1.42%	1.40%		49%	42%
Corporation (HBAP)
HSBC Bank plc	0.48%	0.54%	0.50%	0.53%	0.51%		9%	22%
(NRFB)
HSBC UK Bank plc	2.01%	1.68%	1.60%	1.60%	1.59%		24%	18%
(UK RFB)
HSBC North
America Holdings,	0.91%	0.85%	0.83%	0.95%	0.96%		7%	9%
Inc

Key rates (quarter averages), basis points

183										1M HIBOR
125										Fed effective rate
102									BoE Base Rate
61			34
		10	10	27		10		14	10		11	10
	6	9	9	8	7
1Q20	2Q20	3Q20	4Q20		1Q21	2Q21 QTD*
*At 23 April 2021											Source: Bloomberg

22

1Q21 results	Appendix

1Q21 vs. 4Q20 equity drivers

	Shareholders'	Tangible Equity,	TNAV per share,	Basic number of ordinary
	Equity, $bn	$bn	$	shares, million
As at 31 December 2020	196.4	156.4	7.75	20,184
Profit attributable to:	4.3	4.2	0.21	-
Ordinary shareholders22	3.9	4.2	0.21	-
Other equity holders	0.5	-	-	-
Dividends	(0.5)	-	-	-
On ordinary shares	-	-	-	-
On other equity instruments	(0.5)	-	-	-
FX22	(1.3)	(1.1)	(0.05)	-
Actuarial gains/(losses) on defined benefit plans	(0.7)	(0.7)	(0.03)	-
Fair value movements through 'Other Comprehensive Income'	(1.1)	(1.1)	(0.06)	-
Of which: changes in fair value arising from changes in own credit risk	0.2	0.2	0.01	-
Of which: Debt and Equity instruments at fair value through OCI	(1.3)	(1.3)	(0.07)	-
Other22	2.1	(0.3)	(0.04)	42
As at 31 March 2021	199.2	157.4	7.78	20,226

• Average basic number of shares outstanding during 1Q21: 20,191 million
• 1Q21 TNAV per share increased by $0.03 to $7.78 per share mainly due to higher profits driven by net ECL releases, offset by adverse reserve movements in OCI
• There will be a $0.15 per share reduction in TNAV in 2Q21 from payment of the 4Q20 dividend in April 2021

$7.74 on a fully diluted		20,335 million on a
basis		fully diluted basis

23

1Q21 results	Appendix

Balance sheet - customer lending

Balances by global business, $bn	Balances by region, $bn

				(6)%	1%
1,101
				1,040
1,034
	1
									1
276		1
223	221

370 342 344

454 468 474

1Q20 4Q20 1Q21

WPB CMB GBM Corporate Centre

Europe

o/w: UK

Asia

o/w: Hong Kong

MENA

North America

o/w: US

Latin America

Total

$405bn

$315bn

$478bn

$307bn

$28bn

$109bn

$57bn

$19bn

$1,040bn

Growth since 4Q20

$(2)bn
(1)%	o/w: mortgages
$(3)bn	2
(1)%
		$8bn
		2%
	1	$6bn
	2%
$(0)bn	o/w: mortgages
(1)%
	$0bn
	0%
$(1)bn
(2)%
	$0bn
	2%
		$6bn
		1%

Adjusted customer lending of $1,040bn increased by $6bn (1%) vs. 4Q20

• WPB lending increased $6bn, driven by growth in UK mortgages ($2bn), Asia mortgages ($1bn) and short term IPO lending ($1bn), partially offset by lower unsecured lending (down $2bn)
• CMB lending increased by $2bn, notably in Asia. Asia lending increased c.$4bn, of which c.$3bn from increased trade balances
• GBM balances decreased modestly, primarily due to deleveraging (down $2bn)

Totals may not cast due to rounding	24

1Q21 results	Appendix

Balance sheet - customer accounts

Balances by global business, $bn

Balances by region, $bn

Growth since 4Q20

				9%	1%
								1,650
				1,638
									1
1,516	1
0		335	336
331
401	469	471

783 833 843

1Q20 4Q20 1Q21

WPB CMB GBM Corporate centre

Europe

o/w: UK

Asia

o/w: Hong Kong

MENA

North America

o/w: US

Latin America

Total

$643bn

$514bn

$756bn

$527bn

$42bn

$183bn

$119bn

$26bn

$1,650bn

$14bn

2%

$5bn

1%

$(1)bn

(0)%

$(3)bn

(1)%

$1bn

3%

$(0)bn (0)%

$2bn

2%

$(1)bn (2)%

$12bn

1%

Adjusted customer accounts of $1,650bn increased by $12bn (1%) vs. 4Q20; $134bn (9%) growth vs.

1Q20

• WPB increased $10bn vs. 4Q20, particularly in the UK due to lockdown

Totals may not cast due to rounding	25

1Q21 results	Appendix

Glossary

AIEA	Average interest earning assets
BAU	Business as usual
BoCom	Bank of Communications Co. Limited, an associate of HSBC
Bps	Basis points. One basis point is equal to one-hundredth of a percentage point
CET1	Common Equity Tier 1
Corporate Centre	Corporate Centre comprises Central Treasury, our legacy businesses, interests in our associates and joint
ventures, central stewardship costs and the UK bank levy
CMB	Commercial Banking, a global business
CRD IV	Capital Requirements Directive IV
	The amending Regulation to the CRD IV package which implements changes to the own funds regime
CRR II	and to MREL and elements of the Basel III Reforms in EU legislation. These changes follow a phased
	implementation from June 2019
CTA	Costs to achieve
C&L	Credit and Lending
DCM	Debt Capital Markets
	Expected credit losses. In the income statement, ECL is recorded as a change in expected credit losses
ECL	and other credit impairment charges. In the balance sheet, ECL is recorded as an allowance for financial
	instruments to which only the impairment requirements in IFRS 9 are applied
ECM	Equity Capital Markets
GBM	Global Banking and Markets, a global business
GLCM	Global Liquidity and Cash Management
GPB	Global Private Banking, a former global business now part of Wealth and Personal Banking
Group	HSBC Holdings plc and its subsidiary undertakings
GSSS	Green, Social, Sustainability and Sustainability-linked
GTRF	Global Trade and Receivables Finance
HIBOR	Hong Kong Interbank Offered Rate
IFRS	International Financial Reporting Standard

LATAM	Latin America
LCR	Liquidity coverage ratio
Legacy credit	A portfolio of assets including securities investment conduits, asset-backed securities, trading portfolios,
credit correlation portfolios and derivative transactions entered into directly with monoline insurers
MENA	Middle East and North Africa
MSS	Markets and Securities Services
NCI	Non-controlling interests
NII	Net interest income
NIM	Net interest margin
NNM	Net new money
NRFB	Non ring-fenced bank in Europe and the UK
OCI	Other Comprehensive Income
PBT	Profit before tax
Ppt	Percentage points
PVIF	Present value of in-force insurance contracts
RBWM	Retail Banking and Wealth Management, a former global business now part of Wealth and Personal
Banking
SABB	The Saudi British Bank, an associate of HSBC
UK RFB	HSBC UK, the UK ring-fenced bank, established July 2018 as part of ring fenced bank legislation
RoTE	Return on average tangible equity
RWA	Risk-weighted asset
TNAV	Tangible net asset value
WPB	Wealth and Personal Banking, a global business created from the consolidation of RBWM and GPB
XVAs	Credit and Funding Valuation Adjustments

26

1Q21 results	Appendix

Footnotes

1. Cumulative RWA saves under our transformation programme as measured from 1 January 2020 to 31 March 2021. In addition, we made $9.6bn of accelerated RWA saves over 4Q19
2. Unless otherwise stated, regulatory capital ratios and requirements are based on the transitional arrangements of the Capital Requirements Regulation in force at the time. These include the regulatory transitional arrangements for IFRS 9 'Financial Instruments'. Following the end of the transition period after the UK's withdrawal from the EU, any reference to EU regulations and directives (including technical standards) should be read as a reference to the UK's version of such regulation and/or directive, as onshored into UK law under the European Union (Withdrawal) Act 2018
3. Source: BoE. Gross market share over the year-to-date to 28 February 2021. Stock mortgage market share at 28 February 2021
4. Excludes Corporate Risk Solutions revenue
5. Source: Dealogic. Volume shows the full (non-apportioned) amount of financing raised in transactions in which HSBC led or co-led
6. Euromoney Trade Finance Survey 2021
7. The Net Zero Banking Alliance is an industry-led,UN-convened alliance of 42 banks with a combined $28.5tn in assets to bring collaboration and consistency to collective efforts to reach the Paris Agreement goals
8. Responsible Investments are a broader category of Sustainable Investments (funds managed with a specific sustainability objective) which include ESG considerations in our company and project research
9. Source: Bloomberg, Dealogic. HSBC Volume shows the total proceeds raised from bonds where HSBC was a bookrunner
10. Environmental Finance Bond Awards 2021
11. YTD, annualised. RoTE methodology annualises Profits Attributable to Shareholders, including ECL, in order to provide a returns metric. Expected Credit Losses "ECL" is a forward looking estimate of losses expected in the current year based on current market conditions
12. Medium term is defined as 3 to 4 years
13. Technology costs in operating expenses trends include transformation saves and are presented on a net basis
14. Technology cost increases in quarterly walks are presented on a gross basis (excl. saves)
15. 4Q20 also included tax-only significant item charges of $117m.
16. From 1st July 2018, Argentina was deemed a hyperinflationary economy for accounting purposes
17. With effect from the first quarter of 2021, certain items within the management view of adjusted revenue have been renamed. 'Wealth Management' has been renamed 'Wealth' and 'Retail Banking' has been renamed 'Personal Banking'
18. With effect from the first quarter of 2021, management view of adjusted revenue has been revised to align with changes to the management responsibilities of the business and how we assess business performance. Comparative data have been re-presented accordingly
19. YTD, annualised. RoTE by Global Business excludes significant items and the UK bank levy. RoTE methodology annualises Profits Attributable to Shareholders, including ECL, in order to provide a returns metric. RoTE by Global Business for 1Q21 considers AT1 Coupons on an accruals basis, vs. Reported RoTE where it is treated on a cash basis
20. Inclusive of Premier & Jade deposits and AUM, GPB client assets and AMG AUM
21. Data to reconcile components of reported RWAs to adjusted RWAs can be found in the 'HSBC Holdings plc 1Q 2021 Datapack'
22. Differences between shareholders' equity and tangible equity drivers primarily reflect goodwill and other intangible impairment, PVIF movements and amortisation expense within 'Profit Attributable to Ordinary shareholders', FX on goodwill and intangibles within 'FX', and intangible additions and other movements within 'Other'

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1Q21 results	Appendix

Disclaimer

Important notice

The information, statements and opinions set out in this presentation and accompanying discussion ("this Presentation") are for informational and reference purposes only and do 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 financial instruments or any advice or recommendation in respect of such securities or other financial instruments.

This Presentation, which does not purport to be comprehensive nor render any form of legal, tax, investment, accounting, financial or other advice, has been provided by HSBC Holdings plc (together with its consolidated subsidiaries, the "Group") and has not been independently verified by any person. You should consult your own advisers as to legal, tax investment, accounting, financial or other related matters concerning any investment in any securities. No responsibility, liability or obligation (whether in tort, contract or otherwise) is accepted by the Group or any member of the Group or any of their affiliates or any of its or their officers, employees, agents or advisers (each an "Identified Person") as to or in relation to this Presentation (including the accuracy, completeness or sufficiency thereof) or any other written or oral information made available or any errors contained therein or omissions therefrom, and any such liability is expressly disclaimed.

No representations or warranties, express or implied, are given by any Identified Person as to, and no reliance should be placed on, the accuracy or completeness of any information contained in this Presentation, any other written or oral information provided in connection therewith or any data which such information generates. No Identified Person undertakes, or is under any obligation, to provide the recipient with access to any additional information, to update, revise or supplement this Presentation or any additional information or to remedy any inaccuracies in or omissions from this Presentation. Past performance is not necessarily indicative of future results. Differences between past performance and actual results may be material and adverse.

Forward-looking statements

This Presentation may contain projections, estimates, forecasts, targets, commitments, opinions, prospects, results, returns and forward-looking statements with respect to the financial condition, results of operations, capital position, strategy and business of the Group which can be identified by the use of forward-looking terminology such as "may", "will", "should", "expect", "anticipate", "project", "plan", "estimate", "seek", "intend", "target" or "believe" or the negatives thereof or other variations thereon or comparable terminology (together, "forward-looking statements"), including the strategic priorities, any financial, investment and capital targets and ESG targets/commitments described herein. Any such forward-looking statements are not a reliable indicator of future performance, as they may involve significant stated or implied assumptions and subjective judgements which may or may not prove to be correct. There can be no assurance that any of the matters set out in forward-looking statements are attainable, will actually occur or will be realised or are complete or accurate. The assumptions and judgments may prove to be incorrect and involve known and unknown risks, uncertainties, contingencies and other important factors, many of which are outside the control of the Group. Actual achievements, results, performance or other future events or conditions may differ materially from those stated, implied and/or reflected in any forward-looking statements due to a variety of risks, uncertainties and other factors (including without limitation those which are referable to general market conditions, regulatory changes or due to the impact of the Covid-19 outbreak). Any such forward-looking statements are based on the beliefs, expectations and opinions of the Group at the date the statements are made, and the Group does not assume, and hereby disclaims, any obligation or duty to update, revise or supplement them if circumstances or management's beliefs, expectations or opinions should change. For these reasons, recipients should not place reliance on, and are cautioned about relying on, any forward-looking statements. No representations or warranties, expressed or implied, are given by or on behalf of the Group as to the achievement or reasonableness of any projections, estimates, forecasts, targets, commitments, prospects or returns contained herein.

Additional detailed information concerning important factors that could cause actual results to differ materially from this Presentation is available in our Annual Report and Accounts for the fiscal year ended 31 December 2020 filed with the Securities and Exchange Commission (the "SEC") on Form 20-F on 24 February 2021 (the "2020 Form 20-F") and our 1Q 2021 Earnings Release which we expect to furnish to the SEC on Form 6-K on 27 April 2021 (the "1Q 2021 Earnings Release").

Alternative Performance Measures

This Presentation contains non-IFRS measures used by management internally that constitute alternative performance measures under European Securities and Markets Authority guidance and non-GAAP financial measures defined in and presented in accordance with SEC rules and regulations ("Alternative Performance Measures"). The primary Alternative Performance Measures we use are presented on an "adjusted performance" basis which is computed by adjusting reported results for the period-on-period effects of foreign currency translation differences and significant items which distort period-on-period comparisons. Significant items are those items which management and investors would ordinarily identify and consider separately when assessing performance in order to better understand the underlying trends in the business.

Reconciliations between Alternative Performance Measures and the most directly comparable measures under IFRS are provided in our 2020 Form 20-F and our 1Q 2021 Earnings Release, when filed, each of which are available at www.hsbc.com. Information in this Presentation was prepared as at 27 April 2021.

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