#1HSBC Holdings plc FY21 and 4021 Results Presentation to Investors and Analysts#2Our purpose Our purpose, values and ambition support the execution of our strategy Opening up a world of opportunity Our ambition Our values Our strategy To be the preferred international financial partner for our clients We value difference Focus on strengths Strategy We succeed together Digitise at scale We take responsibility 4021 results Energise for growth We get it done Appendix Transition to net zero#3FY21 performance summary Strategy 4021 results Returned to growth 1 ◆ 4021 reported revenue up 2% vs. 4020; tailwinds expected from rates going forward Creating capacity through announced disposals in the US & France to facilitate wealth growth in Asia 3 Appendix Profits up, returns on an improved trajectory ◆ FY21 reported PBT of $18.9bn, up 115% year on year and profitable across all geographies; HSBC Bank plc (UK and Europe NRFB) adjusted PBT of $2.2bn and US adjusted PBT of $0.9bn 2 ◆ Cost stability despite inflationary pressure; cost saving programme ahead of plan to deliver at least $5.5bn of saves ◆ Expect a ROTE of at least 10%¹ for FY23, a year earlier than previous expectations FY21 dividends up 67% at $0.25 per share; we intend to initiate an incremental up to $1bn buyback over and above the up to $2bn buyback already in progress A reconciliation of reported results to adjusted results can be found on slide 31, the remainder of the presentation unless otherwise stated, is presented on an adjusted basis Figures throughout this presentation may be subject to rounding adjustments and therefore may not sum precisely to totals given in charts, tables or commentary 2#4Progress against our ambitions Revenue Costs Returns Capital Adjusted revenue growth, YoY Adjusted fee income + Insurance as a % of adjusted revenue Adjusted costs Reported ROTE Group CET1 ratio³ Cumulative RWA saves4 Asia as a % of Group TE5 WPB as a % of Group TE6 2020 (8.3)% 28% $32.4bn 3.1% 15.9% $61bn 42% 25% 2021 (3.2)% 33% $32.1bn 8.3% 15.8% $104bn 42% 27% Strategy 4021 results Key ambitions Mid single digits medium to long-term² Appendix c.35% medium to long-term FY22 adjusted costs in line with FY21 >10% by FY23 c. 14-14.5% medium term >$120bn by FY22 c.50% medium to long-term c.35% medium to long-term 3#5Focus: Wealth and Personal Banking Net New Invested Assets $bn 53 15 2020 1.59 0.54 21% 1.05 Asia 5% WPB Reported Wealth Balances8 $tn 2020 Invested Assets 64 ROW 36 2021 1.67 0.55 1.12 2021 Wealth Deposits YOY, % (27)% 138% YOY, % 2% 7% WPB Asset Management Funds under management, $bn 602 2020 WPB lending $bn 462 2020 5% 6% 630 2021 489 2021 Strategy 4021 results Asia WPB Wealth Revenue 10 $bn 5.2 2020 Asia WPB Insurance VNB11 $m 657 10% 2020 40% 5.8 2021 917 2021 Appendix 4#6Focus: Wholesale Banking Growth in wholesale fees $bn Other non-interest income Fees 15.3 +0.3% 2020 GBM fee income CMB fee income 15.4 2021 CMB other income GBM other income ¹2 YOY, % (8)% 7% 9% 9% GBM collaboration revenue $bn 3.5 1.3 2.2 8% 2020 3.8 1.4 2.5 2021 Product revenue between GBM and CMB13 Product revenue between GBM and WPB14 YOY, % 2% 12% Strategy GBM RWAs $bn 261 55% 45% 2020 4021 results (10)% East15 236 49% 51% 2021 West15 Appendix YOY, % (18)% 4% LO 5#7Focus: Repositioning for higher growth Restructuring US and Europe Reducing adjusted RWAs $bn ୮ 248 85 163 (12)% 2020 ] 219 78 141 Reductions before announced asset sales ¹6 of: c.1.3bn 2021 US c.7bn Reducing adjusted costs $bn Exit and wind-down c. 125 branches: End state is c.25 international wealth centres ◆ $8.8bn of deposits held for sale 10.9 3.6 2020 HSBC Bank plc (UK and Europe NRFB) Exit US mass retail ¹8 (completed Feb 2022) 7.3 (5)% 10.4 3.3 7.0 202117 Planned sale of France retail 19 Network of 244 retail branches $24.9bn in customer loan $22.6bn deposit balances Repositioning Asia for growth Recently announced acquisitions in Asia AXA Singapore20 (completed in Feb 2022) آیا Strategy L&T Investment Management²1 HSBC Life China HSBC Life 汇丰保险 4021 results ◆ Acquisition results in the combined group being the 4th largest health insurer and 7th largest life insurer in Singapore $10.8bn AUM 2.4m active portfolios 12th largest fund house in India Appendix HSBC Life stake increasing 50% to 100% ownership 6#8Digitise: Enhancing our technological capabilities for our clients Technology spend % of total adjusted operating expenses Total Tech Spend22, $bn 18 2020 c.$5.7 +1 ppt 19 2021 c.$6.0 HH >21 2025 ambition23 Technology agile workforce24 % 5 % 2020 Cloud adoption25 c.20 2020 3x +7ppts 15 2021 27 2021 Strategy % HSBC Trade e-penetration26 4021 results #m % 69 2020 2021 HSBCnet wholesale mobile app payments volume27 5.8 2020 +15ppts Mobile active retail customers 28 38 2020 58% 84 +5ppts 9.2 2021 43 Appendix 2021 7#9Energise: Empowering our talent across the organisation. Employee engagement index29 67% 2019 +5ppts 72% 2020 72% 2021 Female leaders30 [ 30.3% 2020 +1.4ppts 31.7% Strategy 2021 4021 results Average hours of training per FTE 16% [ 23 2020 27 2021 Appendix 8#10Transition: Continuing to build on our global leading position Supporting our customers in the transition to Net Zero and a sustainable future Ambition to provide and facilitate $750bn to $1tn of sustainable finance and investments by 2030, $bn Cumulative, $bn 44.1 2020 44.1 87% 82.6 2021 Strategy 126.731 Becoming a Net Zero Bank 686,000 4021 results Ambition to be net zero in our operations and supply chain by 2030 or sooner Greenhouse gas emissions, tonnes CO₂e³² 2019 c.(50)% 444,000 2020 341,000 Appendix 2021 9#114021 results summary $m NII Non-NII Revenue ECL Costs Associates Adjusted PBT Significant items and FX translation Reported PBT Profit attributable to ordinary shareholders Reported EPS, $ Impact of sig items on reported EPS, $ FY DPS33, $ Reported ROTE (YTD), % $bn Customer loans Customer deposits Reported RWAS CET1 ratio³, % TNAV per share, $ 4Q21 6,788 5,304 12,092 (450) (8,341) 669 3,970 (1,306) 2,664 1,788 0.09 (0.06) 0.25 8.3 4Q21 1,046 1,711 838 15.8 7.88 4Q20 6,585 5,213 11,798 (1,172) (9,092) 684 2,218 (833) 1,385 562 0.03 (0.01) 0.15 3.1 3Q21 1,040 1,687 839 15.9 7.81 3% 2% 2% 62% 8% (2)% 79 % (57)% 92 % >100% $0.06 $(0.05) $0.10 5.2ppt A 1% 1% (0)% (0.1)ppt $0.07 Strategy 4021 results Appendix 4021 reported PBT of $2.7bn, up $1.3bn (92%) vs. 4Q20; adjusted PBT of $4.0bn up $1.8bn (79%), primarily due to a lower ECL charge and lower bank levy NII of $6.8bn, up $0.2bn (3%) vs. 4Q20 due to volume growth Non-NII of $5.3bn, up $0.1bn (2%) vs. 4Q20, due to higher fee income 4021 ECL charge of $0.5bn, primarily reflecting recent developments in mainland China's CRE sector Costs of $8.3bn, down $0.8bn (8%) vs. 4Q20, primarily due to a $0.6bn lower bank levy and good cost control Lending up $6bn (1%) vs. 3Q21; good growth in WPB and CMB (up $11bn), offset by planned GBM reductions Second interim DPS of $0.18; FY21 dividends of $0.25 per share, up 67% vs. FY20 We intend to initiate an incremental up to $1bn buyback (over and above the up to $2bn buyback already in progress) 10#12Loan and fee growth Customer lending by global business, $bn 462 +$27bn 4Q20 489 4Q21 WPB +$11bn I ↓ 338 349 4Q20 4Q21 CMB34 Includes the impact of $30bn of gross RWA saves 221 $(14)bn 4Q20 ↓ 207 4Q21 GBM WPB and CMB combined lending up $38bn (5%) YoY, offset by planned GBM reductions Strong lending growth in WPB, up $27bn (6%), mainly from mortgages (up $23bn) CMB up $11bn (3%) largely in Asia across trade and term lending GBM down $14bn (6%), mainly in Europe in part due to the impact of strategic actions to focus our business on international clients 2,949 Net fee income by global business, $m 827 810 1,322 (10) 4Q20 WPB 5% Strategy CMB 3,101 823 928 1,356 (6) 4Q21 4021 results GBM Appendix Group net fee income up 5% YOY, mainly in CMB WPB fees up 3% vs. 4020 primarily in Personal Banking CMB fee income increased 15% vs. 4020, across all products, particularly GLCM GBM fees stable vs. 4020 as higher fees in Banking were offset by lower fees in MSS. FY21 GBM fees up 9% vs. FY20 Corporate Centre 11#13Adjusted revenue drivers Revenue by global business, $m 11,798 4Q20 Includes $(167)m of insurance market impacts (15) WPB 245 CMB 34 GBM 30 12,092 Corporate 4Q21 Centre WPB slightly down by $15m, as growth in Personal Banking and Wealth was offset by adverse insurance market impacts of $167m CMB revenue grew $245m (8%) across all revenue lines, mainly Trade and Credit and Lending GBM revenue up m (1%), mainly from good performance in FX and Capital Markets & Advisory 11,798 Strategy Revenue by income statement line, $m 4020 203 NII 4021 results 152 (61) Includes $(167)m of insurance market impacts Net fee income Other income Appendix 12,092 4Q21 Good NII growth (up $203m, 3%) vs. 4020 particularly in CMB (up $92m, 4%); WPB NII up $47m (1%) WPB Non-NII down 4% vs. 4020, with the adverse impact of insurance market impacts offsetting fee growth (up 3%) CMB Non-NII up 14% vs. 4020, primarily from higher fees GBM Non-NII up 2% as lower MSS was more than offset by higher Non-NII in Banking, notably fees 12#14Net interest income and margin Reported NIM progression, bps Discrete quarterly reported NIM Reported NII, $m Reported NIM trend of which: significant items 119 Average interest earning assets, $bn 3Q21 122bps 6,619 - 1| 4020 2,159 2 Asset yields 121bps 6,514 18 1Q21 2,179 (2) Asset mix 120bps 6,584 2Q21 2,199 119 4021 119bps 6,610 3Q21 2,208 Obp 119bps 6,781 -7 4Q21 2,251 Strategy 4021 results Appendix 4021 reported NII of $6.8bn, up $0.2bn (3%) vs. 3021; mainly driven by higher yields on customer loans as well as growth in AIEAS ◆ 4021 NIM of 1.19% was unchanged from 3Q21 as the impact from higher asset yields was offset by adverse changes in asset mix ◆ Significantly improved interest rate outlook 13#15Net interest income sensitivity - sensitivity - main drivers and assumptions NII sensitivity³5 to instantaneous change in yield curves (12 months) At 31 December 2021 Change from Jan 2022 to Dec 2022 +25bps parallel -25bps parallel +100bps parallel -100bps parallel NII sensitivity³5 to instantaneous change in yield curves (5 years), $m At 31 December 2021 Cumulative change from Jan 2022 to Dec 2026 Currency USD HKD $m $m 125 265 GBP EUR Other Total $m $m $m $m 420 106 393 1,309 (257) (536) (594) (170) (395) (1,952) 458 1,054 1,739 632 1,532 5,414 (466) (1,020) (2,070) (595) (1,610) (5,761) +25bps parallel -25bps parallel +100bps parallel -100bps parallel Year 2 Year 3 Year 4 Year 5 Total $m $m 1,309 (1,952) $m $m $m 1,758 1,896 2,002 2,141 9,106 (2,324) (2,593) (2,687) (2,845) (12,401) 5,414 6,738 7,492 7,937 8,359 35,941 (5,761) (7,664) (8,675) (9,354) (9,603) (41,057) Year 1 $m * Please refer to slide 35 for additional detail on deposits by type We have simplified the basis of preparation for our disclosure for FY21, and have made a simplified 50% pass-through assumption on deposits for illustration purposes, excluding non interest-bearing current accounts (average 4021 NIBCA balances of $331bn*) GBP Strategy HSBC remains most sensitive to movements in GBP and HKD rates due to high liquidity balances in GBP, as well as short re-pricing tenors and cash in the HKD denominated balance sheet USD The structure of our balance sheet makes us particularly sensitive to movements in short-term rates most assets reprice in under 1 year Market-implied path of overnight interest rates³6, bps 19 7 31/12/2021 4021 results 180 150 31/12/2022 Appendix 195 205 31/12/2023 14#16Credit performance. Adjusted ECL release/(charge) trend (1,172) 4Q20 (0.44) Hong Kong* Mainland China 424 Other Asia UK RFB HSBC Bank plc Mexico Other Total 1Q21 0.17 272 2021 ECL release/(charge) by geography, $m 4Q21 (480) (49) 1 230 46 (144) (54) (450) 0.10 3Q21 (37) (38) (30) 551 93 (12) 117 644 644 3Q21 0.24 Wholesale Personal Total (450) * 4021 charge largely relates to offshore China CRE exposures booked on Hong Kong balance sheets ** Total includes an additional $0.2bn ECL release attributed to other assets, which are not staged 4Q21 (0.17) ECL release/(charge) by stage, $bn 4Q21 Stage 1-2 Stage 3 (0.2) (0.2) (0.0) (0.1) ECL, $m ECL (0.3) release/(charge) as a % of average gross loans and advances (0.3) Strategy Total** (0.5) (0.1) (0.5) 4021 results Appendix 4021 ECL charge of $450m, primarily from Stage 2 charges reflecting recent developments in China's CRE market, offset by releases in the UK and Europe Mexico 4021 charge at a more normalised level and reflecting business growth Personal charges continue to be benign We retain $0.6bn of our Covid-19 related ECL uplift reserves on the balance sheet (c.15% of original Covid-19 reserve); down from $1.2bn at 30 ECL charge of $0.5bn includes $0.6bn Stage 2 charges, $0.3bn Stage 3 charges. and $0.3bn of Stage 1 reserve releases Stage 3 loans and advances to customers as a % of total loans is 1.8%; stable vs. 3Q21 FY21 ECL net release of $0.9bn Expect ECL charge to normalise towards 30bps of average loans in FY2237 15#17Adjusted costs Operating expenses trend, $m 9,092 802 1,424 6,866 4Q20 7,486 3Q21 8,043 1,547 6,496 (167) 1Q21 7,836 1,441 4021 vs. 3021 (excl. levy), $m 6,395 UK bank levy Technology22 76 2021 10% 159 Cost Marketing, PRP T&E saves 7,486 1,429 6,057 3Q21 Other Group costs 158 Tech spend 38 513 8,341 1,544 116 6,681 4Q21 8,225 4Q21 4021 costs (excl. levy) of $8.2bn modestly down vs. 4020, primarily due to cost saves of $0.6bn and lower performance-related pay (PRP), partially offset by increased technology spend 4021 costs (excl. levy) were up $0.7bn (10%) vs. 3Q21, from a variety of factors, including: seasonality, one-offs, increased PRP and technology spend 8,290 Strategy UK bank levy of $116m, lower than previously guided due to a credit of $112m relating to previous years; continue to expect c.$300m per annum going forward 4Q20 4021 cost saves of $0.6bn had associated CTA of $0.6bn; cost saves to date of $3.3bn and associated CTA spend of $3.6bn 4021 vs. 4Q20 (excl. levy), $m (635) Cost saves Other items incl. Inflation* * Other includes c.$290m of seasonality and timings of costs, c.$150m of one-offs and litigation charges and c.$60m of investment and business growth 47 4021 results Marketing, T&E (1)% (150) PRP Appendix 275 Tech spend 38 398 Other items incl. Inflation 8,225 4Q21 16#18Cost programme progress Adjusted costs, $bn FTE 33.6 2019 235.4k Investment Inflation (3.3) Cost programme saves Bank levy Other ◆ Programme cost saves to date of $3.3bn and associated CTA spend of $3.6bn; c.60% completion of announced cost programme Technology spend of $6.0bn22, up 6% vs. FY20 Strategy 32.1 2021 219.7k Expect CTA spend of c.$3.4bn over FY22, expected to generate >$2bn of cost saves; with total CTA programme spend of $7bn and cost saves of at least $5.5bn by FY22 Expect at least $0.5bn of further cost savings in 2023 from the 2022 CTA programme. The net impact of recent acquisitions and disposals on costs for 2023 is broadly neutral 4021 results Stable costs over FY22 Appendix 2022 Targeting FY22 adjusted costs in line with FY21 We intend to manage cost growth within a 0 - 2% range in FY2323, mitigating inflation with cost saves 17#19Capital adequacy CET1 ratio, % 15.9 3Q21 CET1, $bn 133.2 RWAS, $bn 839.2 Capital progression 0.2 Profits 1.4 Common equity tier 1 capital, $bn Reported risk-weighted assets, $bn CET1 ratio³, % Leverage ratio exposure, $bn Leverage ratio³, % (0.0) 0.0 Change FX translation in RWAS differences 0.5 (0.1) (1.4) (0.0) Other 39 (0.1) 4Q20 136.1 857.5 15.9 2,897.1 5.5 (0.2) Dividend and buyback (1.8) 3Q21 133.2 839.2 15.9 2,964.8 5.2 15.8 4Q21 132.6 838.3 4Q21 132.6 838.3 15.8 2,962.7 5.2 Strategy 4021 results Appendix CET1 ratio of 15.8% down 0.1 ppts vs. 3021 as profits were offset by capital returns: Includes second interim dividend for 2021, net of YTD dividend accruals Includes the impact of c.25bps from the share buyback of up to $2bn announced at 3021 Excludes intended up to $1bn incremental buyback impact of c.12bps Reported RWAs of $838bn down $1bn vs. 3Q21 Cumulative RWA saves of $104bn4, we expect to exceed our original FY22 target of >$110bn of saves Expect mid-single digit RWA growth during FY22 Dividend for capital purposes to be accrued at 55% of reported EPS over FY22, in line with PRA guidance and not to be interpreted as signalling 18#20Path to CET1 target CET1 ratio evolution 15.8% FY21 1022 mainly impacted by: I Incremental Software Regulatory I $1bn capitalisation RWA uplifts I buyback reversal I I Bars in chart are illustrative and not to scale * Profits are net of AT1 coupon payments and includes 1022 profits Profits* Organic Capital return France loss growth on disposal Recent acquisition impacts and other c.14 - 14.5% FY22 Strategy 4021 results Appendix Aim to transition to c.14 14.5% CET1 ratio planning range by FY22 Target CET1 ratio to be met primarily via organic and inorganic growth, capital return, and regulatory impacts Expect CET1 ratio to be adversely impacted in FY22 by a number of items: c.12bps from intended up to $1bn incremental buyback c.25bps from software capitalisation benefit reversal from 1-Jan-22 c.45bps impact from c.3% RWA inflation from other regulatory and policy changes during 1022 c.30bps loss on sale of France retail, during 3022 c.15bps impact from recent acquisitions (AXA Singapore, L&T Investment Management, HSBC Life China), of which roughly half are expected to occur in 1022 19#21Summary Strategy 5 4021 results A good set of results for 2021 and 4021; revenue growth returning (up 2.5% vs. 4020) and improved earnings diversity by business and geography Good business momentum, including lending growth of $38bn in WPB and CMB in FY21, Trade loan growth up 23% 4| On track with cost programme, expect stable costs in FY22 despite inflationary pressures Appendix Significantly improved interest rate environment; we expect to deliver a ROTE of at least 10%¹ for FY23, one year ahead of schedule Strong dividend growth, FY21 dividend of $0.25 per share, up 67%; we intend to initiate an incremental up to $1bn buyback (over and above the up to $2bn buyback already in progress) 20#22Appendix HSBC#23Guidance summary Costs Adjusted costs Cost saves ECL Effective Tax Rate Lending RWAS CET1 CTA ROTE Capital return FY21 $32.1bn $2.2bn $1.8bn $0.9bn 22% $1,046bn $838bn 15.8% 8.3% DPS of $0.25; up to $2bn buyback announced at 3021; intend to initiate further $1bn buyback Strategy Guidance 4021 results Stable adjusted costs over FY22; 0-2% cost inflation over FY2323; bank levy expected to be c.$300m p.a. Expect >$2bn of cost saves in FY22; expect total programme saves of at least $5.5bn by FY22; expect at least $0.5bn of further cost saves in FY23 c.$3.4bn of CTA spend over FY22; no CTA thereafter Expect ECL to normalise towards 30bps of average loans in FY2237 Medium-term planning rate of 19 - 20% Appendix Mid-single digit growth in FY22 Mid-single digit growth in FY22 Intend to normalise to c.14.0 14.5% range in FY22, and manage within range over medium-term; manage range down further long term At least 10% for FY23, if policy rates were to follow the current implied market consensus Sustainable dividend payout ratio range of 40 - 55%, supplemented by additional distributions if appropriate; no current intention to pay quarterly dividends during 2022; regulatory dividend accrual of 55% of reported EPS, in line with PRA guidance and not to be interpreted as signalling 22#24Business highlights Global business highlights WPB CMB GBM ◆ Reported wealth balances of $1.7tn up 2% QoQ ◆ Strong FY21 mortgage performance, balances up $23bn, particularly in the UK and HK Q1 FY21 international account openings up 13% ◆ CMB Asia loans up 9% YoY; up 20% YoY in mainland China ◆ Trade balances of $58bn, up 30% YoY; HK trade market share of 23%, up 4ppts YoY40 Strong FY21 Capital Markets & Advisory revenue growth, up 17% YoY ◆ Strong AUC growth in Securities Services, average balances up 18% YoY to $10tn Global CMB value of approved limits*, $bn 2020 quarterly average: $28.7bn II Q2 Q3 Q4 56.4 Transformation highlights KOX Strategy Recently announced acquisitions HSBC Life China L&T Investment Management AXA Singapore Exit of US and France mass retail $705tn of payments processed in 2021, up 3% vs. 2020 Around 96% of applicable transactions41 now fully automated Invested $6.0bn in technology Real estate footprint down 18% since FY20, or c.3.4 million sq. feet 4021 results Geographic highlights Adjusted PBT by region, $bn FY20 0.4 (0.3) 13.2 8.3 4.9 0.5 0.8 0.4 0.4 UK RFB HSBC Bank plc Asia o/w: Hong Kong o/w: Asia ex-HK ΜΕΝΑ North America o/w: US o/w: Canada Latin America o/w: Mexico Appendix (0.0) (0.2) FY21 5.2 2.2 Asia PBT 57% of group PBT in FY21, down from 107% in FY20 Q2 Q3 Q4 Q1 2020 2021 * Includes renewal and refinancing activity. Note, clients may elect not to draw down on approved limits; from 3021 we have chosen to exclude past approvals from the same client within 60 calendar days from approved limit analysis, comparative data have been re-presented accordingly 12.6 6.2 6.4 1.5 1.8 0.9 0.8 0.8 0.6 Asia loan growth of 5% in FY21 Asia excl. Hong Kong 4021 revenue up 11% YoY; lending up $13bn (7%) vs. 4Q20 23#25ESG update Environmental We plan to publish our own climate transition plan in FY23 bringing together how we intend to embed net zero targets into our strategy, processes, policies and governance Net zero in our operations Reduced absolute greenhouse gas emissions by 50.3% vs. 2019 baseline Ambition to source 100% of our electricity from renewables by 2030; in FY21 this was 37.5%, up 1.7ppts vs. FY19 and stable vs. FY20 Net zero in our financed emissions Disclosed 2030 emissions targets for the oil and gas, and power and utilities sectors: ◆ 34% reduction in oil and gas absolute on- balance sheet financed emissions vs. 2019 baseline42 Power and utilities on-balance sheet financed emissions intensity target of 0.14MtCO₂e/TWh, or a 75% reduction vs. 2019 baseline42 Social Strategy Our percentage of female leaders was 31.7%, up 1.4ppts vs. FY2030 Employee engagement increased 5ppts vs. FY19 to 72%2⁹; stable vs. FY20 We grew our number of Black senior leaders by 17.5% in 2021 6/10 WPB markets and 4/13 CMB markets sustained a top 3 rank or improved in customer satisfaction Our colleagues gave over 79,000 hours to community activities during work time 4021 results H Appendix Governance Over 1.1 billion transactions screened per month for signs of financial crime ◆ 99% of employees received anti- corruption training 43 ◆ 2,224 whistleblowing concerns raised 24#26Sustainable finance / ESG update Sustainable finance We have provided and facilitated a cumulative $126.7bn of sustainable finance and investment against our 2030 ambition of $750bn - $1tn ($44.1bn in 2020; $82.6bn in 2021) Global GSSS bond issuance 44, $bn -3.1x- 34 2015 298 2019 Global Green Global Social 537 937 2020 Global Sustainability Global Sustainability-linked 2021 HSBC attained a 5% market share of GSSS bonds over FY21; apportioned volume of $46.8bn, up 2.9x vs. FY1944 Global GSSS bond issuance increased 74% YoY Oil and gas - absolute emissions MtCO₂e Net zero emissions pathways for Oil & Gas and Power & Utilities sectors 40 35 30 25 20 15 10 5 0 2020 Target 34% reduction by 2030 from 2019 2030 2040 Strategy HSBC 2019 baseline 2050 MtCO₂e/TWh 4021 results Power and utilities - emissions intensity IEA reference scenario 0.6 0.5 0.4 0.3 0.2 0.1 0.0 Appendix 2020 Target of 0.14MtCO2e/TWh by 2030, a reduction of 75% 2030 2040 On-balance sheet financed emissions reduction target 2050 We have defined targets to 2030 for the on-balance sheet financed emissions of our oil and gas and power and utilities portfolios These are aligned with the decarbonisation pathways set out by the IEA in its net zero emissions by 2050 scenario 25#27Capital allocation progress Tangible Equity allocation to Asia and WPB Tangible Equity,% of Group By legal entity5 41% 19% 13% 14% 13% 2018 Asia 42% 17% 12% 15% 14% 2020 HSBC Bank plc US 42% 17% 11% 16% 14% 2021 UK RFB c.50% Medium to long-term² Others By global business6 24% 36% 41% 2018 Strategy 25% 36% 39% 2020 WPB CMB 4021 results 27% 37% 36% 2021 GBM Appendix c.35% Medium to long-term² 26#28The value of our international network FY21 Wholesale client value45 c.77% of CMB and Global Banking client revenue is linked to HSBC's international network, up 2ppt vs. FY20 International clients46 (incl. domestic and cross-border revenue47) c.77% c.13% Domestic clients: other c.10% Strategy Domestic clients: HK, UK 4021 results Appendix HSBC franchise is highly connected and focused on international clients This focus enables leading positions in transaction banking and cross- border transactions Domestic clients have decreased vs. FY20 as we refocus on serving our international client base West-East connectivity is a key differentiator; we provide access to Western capital flows and markets and USD clearing Access to product, technology and innovation expertise in the West, enables strength in our higher return Eastern franchise ♦ Our network helps position us to be the international bank of choice and also serve high-value Retail and Wealth clients 27#29GBM: Building from our plans announced in February 2020 Delivering our restructuring plan Reposition our capital base Improve efficiency Deliver returns (14)% (2)% 30bps FY19 vs. FY21 GBM RWAs down from $273bn to $236bn48 Total Costs FTE down from 48.9k to 46.2k; Cost-Income-Ratio from 65% to 67% Strategy RoRWA up from 1.8% to 2.1% Return on Tangible Equity 49 down from 9.8% to 8.6% Focusing on growth 4021 results Appendix Grow Transaction Banking revenues in key corridors Become top 5 Global Financing house; significantly grow Investment Banking revenues in targeted markets Deepen business with institutional clients; facilitate capital flows between East and West Support the Group's Wealth business with financing and investment solutions Maintain leadership in ESG, helping clients transition to a low carbon economy 28#30GBM: Differentiating from our competitors Deep roots in Asia The leading international bank in Asia and the Middle East 50 Asia market positioning 5⁰ GLCM #2 Securities Services #1 FX #2 Global Debt Markets #3 DCM #1 Loans #1 East vs. West revenue pools growth forecast51 (indexed 00) Asia Rest of world 2019 2020 2021 2022 2023 2024 2025 Globally connected c.50% of revenues booked in the East are from Western Clients Client value 52 Client location East West c.50% East West Revenue booking location Leading Transaction bank with strength in Asia Strategy Diversified revenues and well placed for rising rates GBM Revenues by product offering Rank 50 Global FX #3 #7 SSV GLCM #4 GTRF #1 HSBC 2021 IB FI & Equities TXB53 & Lending Peers 202152 4021 results Broad and diverse client base Collaboration revenue serving clients across the bank GBM Products with Group clients, $bn54 15.0 Appendix GBM 2.5 1.4 CMB and WPB revenue booked in GBM CMB Gross GBM product revenue from WPB and CMB clients WPB 29#31Key financial metrics Reported results, $m NII Other Income Revenue ECL Costs Associates Profit before tax Tax Profit after tax Profit attributable to ordinary shareholders Profit attributable to ordinary shareholders excl. goodwill and other intangible impairment and PVIF Basic earnings per share, $ Diluted earnings per share, $ Dividend per share (in respect of the period), $ Return on avg. tangible equity (annualised), % Return on avg. equity (annualised), % Net interest margin (annualised), % Adjusted results, $m NII Other Income Revenue ECL Costs Associates Profit before tax Cost efficiency ratio, % ECL charge/(release) as a % of average gross loans and advances to customers (annualised) 4Q21 6,781 5,208 11,989 (450) (9,544) 669 2,664 (635) 2,029 1,788 2,373 0.09 0.09 0.18 6.0 4.0 1.19 4Q21 3Q21 4Q20 6,610 6,619 5,138 5,402 12,012 11,757 659 (1,174) (7,989) (9,864) 721 5,403 (1,161) 666 1,385 (450) 935 562 4,242 3,543 3,492 751 0.18 0.03 0.17 0.03 0.15 8.7 8.0 1.19 3Q21 6,788 6,531 5,304 5,518 12,092 12,049 (450) (8,341) 644 (7,486) 725 5,932 669 3,970 69.0 62.1 0.17 (0.24) 1.9 1.3 1.22 4Q20 6,585 5,213 11,798 (1,172) (9,092) 684 2,218 77.1 0.44 Strategy Balance sheet, $m Total assets Net loans and advances to customers Adjusted net loans and advances to customers Customer accounts Adjusted customer accounts Quarterly average interest-earning assets Reported loans and advances to customers as % of customer accounts Total shareholders' equity Tangible ordinary shareholders' equity Net asset value per ordinary share at period end, $ Tangible net asset value per ordinary share at period end, $ Capital, leverage and liquidity Reported risk-weighted assets, $bn 4021 results CET1 ratio, % Total capital ratio (transitional), % Leverage ratio, % High-quality liquid assets (liquidity value), $bn Liquidity coverage ratio, % Share count, m Basic number of ordinary shares outstanding Basic number of ordinary shares outstanding and dilutive potential ordinary shares Quarterly average basic number of ordinary shares outstanding 4Q20 4Q21 3Q21 2,957,939 2,968,791 2,984,164 1,045,814 1,039,677 1,037,987 1,045,814 1,039,581 1,022,402 1,710,574 1,687,982 1,642,780 1,710,574 1,687,004 1,620,128 2,251,433 2,207,960 2,159,003 61.1 198,250 158,193 8.76 7.88 4Q21 838.3 15.8 21.2 5.2 717 138 4021 20,073 20,189 Appendix 20,152 61.6 198,144 157,711 8.70 7.81 3Q21 839.2 15.9 21.3 5.2 664 135 3Q21 20,201 20,296 20,213 63.2 196,443 156,423 8.62 7.75 4Q20 857.5 15.9 21.5 5.5 678 139 4Q20 20,184 20,272 20,179 30#32Reconciliation of reported and adjusted PBT $m Reported PBT Revenue Currency translation Customer redress programmes Disposals, acquisitions and investment in new businesses Fair value movements on financial instruments Restructuring and other related costs* Currency translation of significant items ECL Currency translation Operating expenses Currency translation Customer redress programmes Impairment of goodwill and other intangibles Restructuring and other related costs o/w: costs to achieve Past service costs of guaranteed minimum pension benefits equalisation Settlements and provisions in connection with legal and regulatory matters Currency translation of significant items Share of profit in associates and joint ventures Currency translation Impairment of goodwill 4Q21 2,664 7 (16) 112 103 25 587 591 574 1,203 1,306 3,970 (101) 3Q21 5,403 (150) 64 125 (2) 37 (15) 106 7 397 390 (7) 503 4 4 529 Strategy 4Q20 1,385 (27) (1) 2 46 20 1 41 25 (107) 8 836 810 17 4 (11) 772 18 18 833 4021 results 2,218 (381) FY21 18,906 (11) 242 307 538 49 587 1,836 1,782 2,472 Total currency translation and significant items Adjusted PBT 5,932 (71) Memo: tax on significant items (at reported FX rates) 4021 goodwill impairment of $587m related to our WPB business in Latin America, reflecting a subdued macroeconomic outlook * Primarily comprises losses associated with RWA reduction commitments 3,010 21,916 (323) FY20 8,777 1,393 21 10 (264) 170 11 1,341 (465) (1,072) (54) 1,090 1,908 1,839 17 12 122 2,023 133 462 595 3,494 12,271 (660) Appendix 31#33Certain items included in adjusted revenue Certain items included in adjusted revenue highlighted in management commentary, $m Insurance manufacturing market impacts in WPB of which: Asia WPB insurance manufacturing market impacts Credit and funding valuation adjustments in GBM Legacy Credit in Corporate Centre Valuation differences on long-term debt and associated swaps in Corporate Centre Argentina hyperinflation 55* Bid-offer adjustment in GBM* Total Comparative figures have not been retranslated for foreign exchange movements 4Q21 130 88 44 (14) (9) (18) (2) 131 3Q21 (41) (52) (48) (35) (35) (24) 30 (153) 2Q21 333 271 3 6 (27) (42) 35 308 Strategy 1021 70 (81) 32 9 (28) (46) 18 55 4021 results 4Q20 297 249 71 3 (12) (42) 7 324 FY21 504 226 30 (33) (99) (130) 81 353 Appendix FY20 70 236 (271) (20) 151 (124) (19) (213) 32#344021 adjusted revenue performance WPB CMB GBM Corp. Centre Group $5,292m $3,389m $3,520m 4021 revenue (0)% Personal Banking Other 8% Wealth $(109)m $12,092m ▲ 2% GTRF Credit and Lending GLCM Other MSS Banking 1% of which: GLCM Principal Investments Other $2,042m $3,094m $156m $512m $1,567m $938m $372m $1,871m $1,660m $481m $53m $(64)m (13) (48) 4021 vs. 4020 (32) (19) (17) (193) 9 46 40 22 30 Impact of certain items 90 106 Strategy 102 o/w insurance market impacts: $(167)m o/w XVAs and bid-offer adjustment: $(36)m o/w valuation differences: $3m 295 4021 results Revenue by global business, $bn 2% 12.0 11.8 3.5 3.1 5.3 (0.1) 4Q20 WPB CMB 3.6 3.3 Appendix 5.4 12.1 3.5 3.4 5.3 (0.1) 4Q21 (0.2) 3Q21 GBM Corporate Centre 33#35Net interest margin supporting information Market-implied path of overnight interest rates³6, bps GBP 19 USD 7 31/12/2021 Source: Bloomberg 180 150 31/12/2022 195 205 31/12/2023 Quarterly NIM by key legal entity The Hongkong and Shanghai Banking Corporation (HBAP) HSBC Bank plc (NRFB) HSBC UK Bank plc (UK RFB) HSBC North America Holdings, Inc 27 9 10 4Q20 * At 18 February 2022 14 Key rates (quarter averages), basis points 8 4Q20 1021 2021 3Q21 4Q21 1.42% 1.40% 1.37% 1.35% Strategy 0.53% 0.51% 0.48% 0.47% 0.52% 0.95% 0.96% 0.97% 0.90% 1.60% 1.59% 1.56% 1.51% 1.48% 1Q21 1M HIBOR 10 9 7 Fed effective rate 2Q21 4021 results 10 1.35% 7 0.87% 3Q21 10 9 % of 4Q21 Group NII BOE Base Rate 11 8 4Q21 47% 9% 24% 6% 13 Appendix % of 4Q21 Group AIEA 16 8 42% 22% 19% 9% 34 1Q22 QTD* Source: Bloomberg 34#36Balance sheet analysis Group customer accounts by type, $bn Average balances at 31 December 2021 202 823 204 2017 68 213 229 230 70 840 Liquidity pool at 31 Dec 2021 Liquidity pool by currency Liquidity pool at 31 Dec 2020 - 2018 2019 Demand and other - Non-interest bearing Demand interest bearing $bn 189 795 218 £ $bn 211 279 176 75 272 290 898 117 2020 Currency € $bn 104 66 1,056 Savings Time and other 74 323 HK$ Other $bn $bn 56 157 93 255 2021 51 Total $bn 717 678 At 31 December 2021 Group loans and deposits by currency Loans and advances to customers Others CNY 4% EUR 8% 24% Strategy $1.0tn 21% HKD USD 16% 27% 4021 results GBP Customer accounts CNY Others 4% EUR 8% HKD 15% 19% $1.7tn Appendix 27% 27% USD GBP Hong Kong system deposits by currency at 31 December 2021: 49% HKD; 37% USD; 14% Non-US foreign currencies. Source: HKMA 35#37Net fee income by global business WPB CMB $m Personal Banking Wealth Management Other WPB Total WPB GTRF Credit & Lending GLCM Other CMB Total CMB Corporate Centre 2021 1,341 4,449 104 5,894 1,008 748 1,233 650 3,639 (39) 2020 1,203 4,099 217 5,519 936 685 1,114 599 3,334 (27) A 11% 9% (52)% 7% 8% 9% 11% 9% 9% (44)% GBM Strategy $m MSS o/w HSS o/w Other MSS Banking o/w GLCM o/w GTRF o/w Other Banking Other GBM Total GBM Group net fee income 4021 results 2021 939 1,332 (393) 2,696 631 456 1,609 (32) 3,603 2020 859 1,185 (326) 2,515 544 451 1,520 (58) 3,316 13,097 12,142 Appendix A 9% 12% (21)% 7% 16% 1% 6% 45% 9% 8% 36#38Wealth and Personal Banking 4021 financial highlights Revenue ECL Costs PBT ROTE 49 5,307 297 Revenue performance, $m -204 3,048 1,758 4020 5,593 -70- -237! 2,976 2,310 $5.3bn $0.0bn $(4.0)bn $1.3bn 1Q21 15.2% (0)% 5,589 333 135 3,004 2,117 2021 Wealth excl. market impacts Personal banking (0)% (4020: $5.3bn) >100% (4020: $(0.3)bn) (1)% (4020: $(4.0)bn) 25% (4020: $1.0bn) 6.1ppt (FY20: 9.1%) 5,351 (41) - 165 3,011 2,216 3Q21 5,292 130 -156! 3,094 1,912 4Q21 Other Insurance manufacturing market impacts Balance sheet, $bn 4% 462 824 4Q20 1,588 538 1,050 6% 4Q20 482 844 3Q21 Customer lending Reported Wealth Balances8, $bn 5% 1,639 542 489 1,097 859 4Q21 Customer accounts 3Q21 Invested assets Wealth deposits 1,670 551 1,119 4Q21 Strategy 4021 results Appendix 4021 vs. 4Q20 Revenue down $15m (<1%) driven by adverse insurance market impacts of $167m, lower interest rates and lower Markets Treasury revenue, partially offset by balance sheet growth, higher VNB in Insurance, and growth in Private Banking and Asset Management revenue ◆ Customer lending up $27bn (6%), mainly mortgages ($23bn, net of $3bn US HFS reclassification) and other Private Banking ($1bn) ◆ Customer accounts up $35bn (4%) across most markets, particularly in the UK ($26bn), partially offset by reclassification of customer accounts to liabilities held for sale in the US ($10bn) Wealth balances up $82bn (5%) with invested assets up 7%. Growth across all segments, particularly in Private Banking/Retail invested assets, driven by inflows and higher market levels 4021 vs. 3Q21 ◆ Revenue down $59m (1%) driven by lower Wealth revenue of $133m, including $171m of positive insurance market impacts due to seasonality of sales, partly offset by higher Personal Banking of $83m due to balance sheet growth ◆ Customer lending up $7bn (1%), mainly mortgages ($6bn) across most markets, particularly in the UK ($3bn); retail unsecured lending up $2bn driven largely by Asia ($1bn) ◆ Customer accounts up $15bn (2%), driven by growth across most markets, particularly in Hong Kong ($7bn) and the UK ($5bn) ◆ Wealth balances up $31bn (2%) with invested assets up 2% driven largely by inflows particularly in Asset Management 37#39Commercial Banking 4021 financial highlights Revenue ECL Costs PBT 3,144 363 422 ROTE4⁹ Revenue performance, $m 1,461 898 4Q20 3,269 534 448 1,440 $3.4bn $(0.2)bn $(1.8)bn $1.4bn 847 1Q21 10.8% 8% 3,239 451 469 1,460 859 2021 Markets products, Insurance and Investments and Other GTRF 8% 4020: $3.1bn 75% 4020: $(0.9) bn (1)% 4020: $(1.8)bn GLCM >100% 4020: $0.5bn 9.5ppt (FY20: 1.3%) 3,331 450 495 1,501 2% 3,389 372 512 1,567 885 3Q21 Credit and Lending 938 4Q21 Balance sheet, $bn Customer lending - 3% 338 4Q20 464 345 Customer accounts 4020 3Q21 9% 488 3Q21 1% 4% 349 4Q21 507 4Q21 Strategy 4021 results Appendix 4Q21 vs. 4Q20 Revenue up $245m (8%), driven by higher fees across all products, growth in trade and deposit balances notably in Asia partially offset by the impact of lower rates ◆ Costs up $13m (1%), including a $47m impact of UK bank levy allocations beginning in 4021 ◆ Customer lending up $11bn (3%) largely in Asia across trade and term lending Customer accounts up $42bn (9%) as customers raised and retained liquidity, notably in Asia, the UK and the US 4021 vs. 3Q21 Revenue up $58m (2%), growth in interest income across all products, higher fees in GLCM partly offset by lower markets product revenue and seasonality in insurance revenue ◆ Customer lending up $4bn (1%) with continued growth in trade across all regions ($3bn) and growth in term lending notably in Asia Customer accounts up $19bn (4%) reflecting continued liquidity in the market, notably in Asia 38#40Global Banking and Markets 4021 financial highlights Revenue ECL Costs PBT ROTE 49 3,486 25 1,558 Revenue performance, $m 1,903 4Q20 4,201 159 1,598 2,444 1Q21 $3.5bn $(0.2)bn $(2.7)bn $0.6bn 8.6% MSS 1% 3,496 1,627 1,899 (30) 2Q21 Banking 1% (4020: $3.5bn) >(100)% (4020: $0.0bn) (9)% (4020: $(2.5)bn) (41)% (4020: $1.0bn) Other 1.9ppt (FY20: 6.7%) 3,557 1,641 1,963 (47) 3Q21 (1)% 3,520 1,660 1,871 (11) 4Q21 View of adjusted revenue $m MSS Securities Services Global Debt Markets Global FX Equities Securities Financing XVAS Banking GTRF GLCM Credit & Lending Capital Markets & Advisory Other GBM Other Principal Investments Other Net operating income Adjusted RWAs 56, $bn (10)% ୮ T 249 261 4Q20 4021 A4020 1,871 (2)% 471 9% 1 (99)% 903 11% 234 (21)% 218 25% 44 (38)% 1,660 7% 6% 176 481 5% 657 1% 309 23 % 12% 37 (11)>(100)% 53 (26)% (64) (36)% 3,520 1% 3Q21 (5)% 236 4Q21 ● ● 4Q21 vs. 4Q20 ◆ Revenue higher by $34m (1%): Global FX and Securities Financing grew revenue from a recovery in FX Options and improved financing opportunities ● Strategy ● 4021 results Appendix Securities Services continued to grow fees from client and market growth, with record assets under custody and administration of $10tn Global Debt Markets adversely impacted by market conditions and subdued client activity Equities lower against elevated activity in 4020 Banking Capital Markets & Advisory up 23% from elevated financing activity and strong Advisory performance Banking Credit & Lending impacted by strategic actions taken to reduce RWAS ◆ Costs up $217m (9%), including $159m from a first-time allocation of the UK bank levy ◆We continue to reduce RWAS in line with our strategic objectives; we have now achieved cumulative gross RWA reductions of $77bn as part of our transformation programme 4021 vs. 3Q21 ◆ Revenue lower by $37m (1%): MSS down 5%, primarily from Global Debt Markets and Equities, offset by growth in Global FX Banking stable, with continued strong performance in Capital Markets and Advisory 39#41Corporate Centre 4021 financial highlights $(109)m $(4)m $136m $659m Revenue ECL Costs Associates PBT ROTE4⁹ 679 46 150 Associate income detail, $m 483 4Q20 882 38 $682m 711 5.6% 133 1Q21 775 102 20 653 2Q21 Bank of Communications [66 22% (4020: $(139)m) >(100)% (4020: $1m) >100% (4020: $(885)m) (3)% (4020: $679m) SABB >100% (4020: $(344)m) 711 2.5ppt (FY20: 3.1%) 100 545 3Q21 (7)% 659 70 15 574 4021 Others Revenue performance, $m Central Treasury Legacy Credit Other Total Not included in Corporate Centre revenue: Markets Treasury revenue allocated to global businesses Adjusted RWAS 56, $bn (0)% 91 39 52 4020 86 33 53 3Q21 Associates 6% 91 Other 38 53 4Q21 Strategy 4Q20 (12) 3 (130) (139) 596 1Q21 (28) 9 (15) (34) 4021 results 788 2Q21 (27) 6 (60) (81) 504 Appendix 3Q21 (35) (35) (120) (190) 518 4Q21 (9) (14) (86) (109) 4021 vs. 4Q20 ◆ Revenue up $30m, largely due to gain on revaluation of properties, FX revaluation gains and favourable valuation differences 495 ◆ Associates down $20m (3%), primarily due to lower share of profits from associates in MENA and the UK, partly offset by Asia Costs down $1,021m due to reallocation of the UK bank levy charge to global business, also benefited by a $112m credit relating to previous years 4021 vs. 3021 ◆ Revenue up $81m, largely due to FX revaluation gains, favourable valuation differences and lower losses on Legacy Portfolios Holdings retained costs of c.$1.6bn, vs. c.$1.4bn in FY20 and c.$2.2bn in FY19 ◆ Associates down $52m (7%), primarily due to lower share of profit from associates in the UK, partly offset by Asia Central costs 40#42Wealth and Personal Banking: Global invested assets Global reported invested assets, $bn 7% 1,097 437 1,050 407 326 317 4Q20 Retail 1,050 4Q20 Retail GPB Global reported invested assets evolution, $bn 64 26 19 19 NNIA 345 315 3Q21 GPB AM 3rd party distribution 33 1,119 434 (28) Net market FX and other movements 351 334 4Q21 1,119 4Q21 AM 3rd party distribution Asia reported invested assets, $bn 459 281 147 30: 4Q20 Retail 459 4Q20 Retail 36 GPB 24 -2- Asia reported invested assets evolution, $bn 10 NNIA 3% 481 298 GPB 151 :32 3Q21 147 32 4Q21 AM 3rd party distribution [(14)] 472 Net market movements 293 (9) 472 FX and other AM 3rd party distribution 4Q21 Strategy 602 Reported invested assets managed by AM, $bn 176 4Q20 394 4021 results 326 68 4Q20 5% 610 Global GPB reported client assets, $bn 181 3021 GPB deposits 7% 418 345 Asia 73 3Q21 Appendix 630 180 4021 423 351 72 4Q21 GPB invested assets 41#43Insurance Key financial metrics* Adjusted income statement, $m Revenue Of which: NII Of which: market impacts ECL Operating expenses Share of profit in associates and JVs Profit before tax Memo: distribution income** FY21 2,761 2,492 516 (20) (618) 18 2,141 832 FY20 FY19 1,973 2,741 2,414 2,318 82 127 (78) (70) (506) (514) 1 43 1,382 2,208 816 1,057 Financial highlights: FY21 reported VNB of $1,090m, up $314m (40%) vs. FY20 ◆ PBT of $2.1bn up $0.8bn vs. FY20; revenue up $788m vs. FY20, with $434m higher favourable market impacts, driven by equities ◆ Manufacturing operating expenses of $0.6bn, up 20% vs. FY20 reflecting investment in Pinnacle and broader business growth Reported Embedded value, $bn 11% CAGR 13.9 4.9 9.0 FY19 ANP 36% 3,382 FY19 15.4 6.0 FY20 Other net assets PVIF Reported ANP and VNB, $m VNB margin VNB 1,225 9.4 34% 2,307 FY20 FY21 VNB by region 82% 776 17.0 7.5 9.5 Other Asia FY21 38% 2,892 1,090 FY21 6% 4% 8% Strategy LATAM Insurance HK quarterly ANP, $m 948 751 722 1 2 3 2019 4021 results 434 Offshore 589 466 501 4 1 2 3 2020 Hong Kong Europe * Financial results for the Insurance business are prepared on the current IFRS 4 basis and, as such, do not reflect any potential impacts of IFRS 17 'Insurance Contracts', which is effective from 1 January 2023 ** Distribution income (HSBC Life and partnerships) through HSBC bank channels Onshore 336 Appendix 599 628 4 1 561 418 2 3 4 2021 #1 ranked with a combined market share of 22.3% in Hong Kong for 9M2157, +3.2%ppt vs. 9M20, driven by strong domestic sales supported by over 50k user registrations on our Health Platforms Expanded Pinnacle, now present in 5 cities in China with nearly 700 wealth planners and 135k monthly users of the HSBC River app Completed acquisition of AXA Singapore on 11 February 2022, and received regulatory approval to move to 100% ownership of HSBC Life China 42#44Total shareholders' equity to CET1 capital Total equity to CET1 capital, at 31 December 2021, $m Total equity Non-controlling interests Total shareholder's equity Other equity instruments Total ordinary shareholder's equity Foreseeable dividend Deconsolidation of insurance / SPES Allowable NCI in CET1 CET1 before regulatory adjustments Regulatory adjustments CET1 capital (13,449) 4,186 (30,353) 132,565 (3,655) (22,414) 175,836 (8,527) 162,918 206,777 198,250 Strategy Total equity to CET1 capital walk, $m Total equity (per balance sheet) Non-controlling interests Total shareholders' equity Additional Tier 1 4021 results Total ordinary shareholders' equity Foreseeable dividend Deconsolidation of insurance/SPE's Allowable NCI in CET1 CET1 before regulatory adjustments Prudential valuation adjustment Intangible assets Deferred tax asset deduction Cash flow hedge adjustment Excess of expected loss Own credit spread and debit valuation adjustment Defined benefit pension fund assets Direct and indirect holdings of CET1 instruments Other regulatory adjustments to CET1 capital (including IFRS 9 transitional adjustments when relevant) Threshold deductions Regulatory adjustments CET1 capital 4Q21 206,777 (8,527) 198,250 (22,414) 175,836 (3,655) (13,449) 4,186 162,918 (1,217) (9,123) (1,520) 170 (2,020) 1,571 (7,146) (40) 766 (11,794) (30,353) 132,565 Appendix 2Q21 206,764 (8,546) 198,218 (22,414) 175,804 (3,493) (12,856) 4,250 163,705 (1,337) (9,484 (1,727) (184) (1,816) 1,959 (6,770) (40) 1,168 (10,868) (29,099) 134,606 43#454021 vs. 3Q21 equity drivers As at 30 September 2021 Profit attributable to: Ordinary shareholders58 Other equity holders Dividends On ordinary shares On other equity instruments Cancellation of shares FX58 Actuarial gains/(losses) on defined benefit plans Fair value movements through 'Other Comprehensive Income' Of which: changes in fair value arising from changes in own credit risk Of which: Debt and Equity instruments at fair value through OCI Other58 As at 31 December 2021 Average basic number of shares outstanding during 4021: 20,152 ◆ 4021 TNAV per share increased by $0.07 to $7.88 per share mainly due to profit generation, offset by share buybacks Shareholders' Tangible Equity, TNAV per share, Equity, $bn $bn $ 198.1 1.9 1.8 0.1 (0.1) (0.1) (2.0) 0.1 0.5 (0.2) Strategy 0.2 (0.5) (0.0) 198.3 157.7 2.7 2.7 (2.0) 0.2 0.5 (0.2) 0.2 4021 results (0.5) (0.7) 158.2 7.81 0.13 0.13 (0.05) 0.01 0.02 (0.01) 0.01 (0.02) (0.03) 7.88 $7.84 on a fully diluted basis Appendix Basic number of ordinary shares, million 20,201 T T 20,189 million on a fully diluted basis T (120) I T 1 T (8) 20,073 44#46FY21 vs. FY20 equity drivers As at 31 December 2020 Profit attributable to: Ordinary shareholders58 Other equity holders Dividends On ordinary shares On other equity instruments Cancellation of shares FX58 Actuarial gains/(losses) on defined benefit plans Fair value movements through 'Other Comprehensive Income' Of which: changes in fair value arising from changes in own credit risk Of which: Debt and Equity instruments at fair value through OCI Other58 As at 31 December 2021 196.4 13.9 12.6 1.3 (5.8) (4.5) (1.3) (2.0) (2.4) (0.3) (1.9) 0.5 Shareholders' Tangible Equity, TNAV per share, Equity, $bn $bn $ (2.5) 0.4 198.3 Strategy Average basic number of shares outstanding during FY21: 20,197 ◆ FY21 TNAV per share increased by $0.13 to $7.88 per share mainly due to profit generation, driven by lower ECL, offset by share buybacks and dividends paid during the year 156.4 14.3 14.3 (4.5) (4.5) (2.0) (1.9) (0.3) (1.9) 0.5 4021 results (2.5) (1.9) 158.2 7.75 0.71 0.71 (0.22) (0.22) (0.05) (0.10) (0.01) (0.09) 0.03 (0.12) (0.11) 7.88 $7.84 on a fully diluted basis Appendix Basic number of ordinary shares, million 20,184 T T 20,189 million on a fully diluted basis T (120) T T T T 9 20,073 45#47Balance sheet - customer lending Balances by global business, $bn 1,022 1 221 338 462 4Q20 WPB 2% 1,040 1 212 CMB 345 482 3Q21 1% 1,046 1 207 349 489 4Q21 Growth since 4Q20 (6)% 3% 6% GBM Corporate Centre Balances by region, $bn Europe o/w: UK Asia o/w: Hong Kong ΜΕΝΑ North America o/w: US Latin America Total $397bn $306bn $493bn $312bn $26bn $109bn $53bn $21bn $1,046bn Growth since 3Q21 $(6)bn (2)% $(1)bn (0)% 3 o/w: mortgages $(1)bn (0)% $4bn 1% $0bn 0% Strategy o/w: mortgages $2bn 2% $1bn 2% $1bn 4% $6bn 1% 4021 results Appendix Adjusted customer lending of $1,046bn, up $6bn (1%) vs. 3021 ◆ WPB lending increased by $7bn (1%), primarily growth in mortgages across most markets; cards and personal lending up $2bn ◆ CMB lending increased by $4bn (1%), primarily from continued growth in trade balances and increases in term lending, particularly in Asia ◆ Overall lending growth partly offset by planned reductions in GBM, mainly in the UK 46#48Personal and Wholesale lending analysis Reported net personal lending balances, $bn 456.1 22.9 21.3 37.9 22.5 351.5' 4Q20 475.2 23.4 21.7 37.8 21.6 370.7 4Q21 2% 2% 0% (4)% 5% Other Credit cards Other secured personal lending Guaranteed loans in respect of residential property First lien residential mortgages Seeing a recovery in consumer credit vs. 3Q21; cards up 7% with growth in most regions, personal lending up 3%, primarily in Asia 558.9 Net CMB and GBM lending balances, $bn 490.8 68.1 Strategy 4Q20 556.3 472.4 4021 results 83.8 (4)% 23% Appendix Other wholesale lending Trade balances 4Q21 4021 trade balances of $83.8bn up 23% vs. 4Q20, and up 6% vs. 4019 ◆ CMB lending of $349bn at 4021, up 3% vs. 4020 47#49Balance sheet - customer accounts Balances by global business, $bn 1,620 1 331 464 824 4Q20 WPB CMB 6% 1,687 354 488 844 1% 1,711 344 507 859 3Q21 4Q21 GBM Corporate Centre Balances by region, $bn Europe o/w: UK Asia o/w: Hong Kong ΜΕΝΑ North America o/w: US Latin America Total $668bn $536bn $792bn $549bn $43bn $179bn $112bn $30bn $1,711bn Growth since 3Q21 $(1)bn (0)% $(2)bn (2)% $1bn 0% $1bn 0% $2bn 5% $1bn 4% Strategy $20bn 3% $13bn 2% $24bn 1% 4021 results Appendix Adjusted customer accounts of $1,711bn increased by $24bn (1%) vs. 3021 ◆ WPB customer accounts up $15bn (2%), with broad-based growth across markets, particularly in Hong Kong and the UK CMB customer accounts up $19bn (4%) reflecting elevated liquidity, particularly in Asia. GBM customer accounts down $10bn (3%) from planned reductions as clients paid down advances, mainly in the UK ◆4021 GLCM average balances were up 8% ($54bn) to $758bn vs. 4020 48#50Mainland China drawn risk exposure Mainland China drawn risk exposure5⁹ $bn 179 O $191bn 1 11 Reported net loans and advances to customers $bn 54 42 46 Wholesale Mortgages Credit cards and other consumer Reported customer deposits $bn 48 57 59 167.4 -2.4- 28.8 Mainland China drawn risk exposure is defined as lending booked in mainland China and wholesale lending booked offshore where the ultimate parent and beneficial owner is in mainland China 49.3 Mainland China drawn risk exposure (including Sovereigns, Banks and NBFI and Corporates) of $191bn comprising: Wholesale $179bn* (of which 54% is onshore); Retail: $12bn. These amounts exclude MSS financing Gross loans and advances to customers of $55bn booked in mainland China (Wholesale: $43bn; Retail $12bn) Wholesale lending analysis 59, $bn 86.8 4020 182.8 -3.5- 32.9 Sovereigns Banks NBFI Corporates Total 47.2 99.3 2Q21 1-3 36.6 34.7 1.6 69.1 142.0 4-6 0.0 0.0 0.3 33.7 34.0 178.8 1.9 34.7 36.6 Wholesale lending by counterparty type and credit risk rating: CRRs 7-8 9+ Total 36.6 34.7 1.9 1.3 105.6 1.3 178.8 11 4019 4020 4Q21 4019 4020 4Q21 *Wholesale drawn risk exposure of $179bn includes on balance sheet lending as well as issued off balance sheet exposures 105.6 4Q21 - 0.0 Strategy NBFI Banks Sovereigns Corporates 1.5 1.5 4021 results Corporate lending by sector Transportation Automotive Consumer Goods & Retail Metals & Mining Public Utilities Construction, Materials & Engineering 4.1 4.6 3.4 4.9 6.6 10.2 IT & Electronics $105.6bn 13.3 Appendix 21.3 37.1 Other Sectors Real Estate 60 c.18% of corporate lending is to Foreign-owned Enterprises c.36% of lending is to mainland China State Owned Enterprises c.45% to mainland China Private sector owned Enterprises 49#51Mainland China commercial real estate update Mainland China commercial real estate exposures 60 Mainland China commercial real estate exposures by location of parent company, $bn Exposure to mainland China ultimate parent companies Exposure to non-mainland China ultimate parent companies* Total mainland China real estate exposures Mainland China drawn risk exposure is defined as lending booked in mainland China and wholesale lending booked offshore where the ultimate parent and beneficial owner is in mainland China Our mainland China real estate exposures at 31 December 2021 were $21.3bn; comprising $17.1bn of loans and $4.2bn of guarantees Mainland China commercial real estate exposures by booking centre, $bn Mainland China Hong Kong 9.9 1.7 6.8 2.4 11.6 9.2 4Q21 16.5 4.8 21.3 ◆ 43% ($9.2bn) of exposures are onshore (booked in mainland China); 57% ($12.1bn) of exposures are offshore (booked outside of mainland China, substantially in Hong Kong) Loans and advances to customers61 Guarantees issued and others61 Total 2Q21 14.7 4.9 19.6 * Substantially all Hong Kong based multinational corporates RoW 0.4 0.1 0.5 Total 17.1 4.2 21.3 Strategy 4021 results Appendix Market conditions update Uncertainty exists for real estate developers following recent market developments in mainland China's real estate market that have reduced liquidity and increased refinancing risk ◆ This resulted in the downgrade of some previously highly-rated borrowers Downgrades have been notably concentrated amongst offshore exposures in Hong Kong; offshore exposures are typically higher risk than onshore exposures ◆ Since year end there has been more positive sentiment, however uncertainty remains ◆ A partial recovery in debt and equity prices has been observed, helped by a reduction in the PBOC policy lending rate ◆ At 31 December 2021, we have no exposure to companies in the Red category of the 3 red lines framework Lending is generally focused on Tier 1 and Tier 2 cities ◆ We continue to monitor the potential second order impacts of recent developments 50#52Group real estate ECL analysis Total real estate allowances for ECL by stage $m Total 1 2 3 $m Mainland China Hong Kong“ UK Other Total 4Q21 132 737 775 1,644 Total real estate allowances for ECL by booking location* ** 4Q21 3021 163 286 697 1,146 41 624 489 490 1,644 A (31) 451 78 498 2Q21 28 54 533 494 1,109 A 13 570 (44) (4) 535 Strategy * Allowance for ECL by country/territory only disclosed at each half-year. Total real estate allowances show minimal movements between 2021 and 3021 Primarily exposures to mainland China ultimate parent companies booked on Hong Kong balance sheets 4021 results Appendix Group real estate allowances for ECL ◆ Group Stage 2 allowances for real estate increased $451m in 4021, primarily due to exposures to mainland China ultimate parent companies Group 4021 real estate allowances for ECL were $1.6bn; c.38% related to exposures booked on Hong Kong** balance sheets and c.30% related to exposures in the UK 51#53UK RFB disclosures Business performance FY21 financial highlights Revenue o/w: WPB o/w: CMB ECL Costs PBT o/w: WPB o/w: CMB Customer loans Reported RWAS £6.2bn £3.4bn £2.7bn £1.0bn £(3.5)bn £3.8bn £1.6bn £2.1bn £195.5bn £83.7bn 3% (FY20: £6.0bn) 3% (FY20: £3.3bn) 5% (FY20: £2.6bn) >100% (FY20: £(2.1)bn) 4% (FY20: £(3.6)bn) >100% (FY20: £0.3bn) >100% (FY20: £0.1bn) >100% (FY20: £0.2bn) 2% (FY20: £191.2bn) (2)% (FY20: £85.5bn) Revenue up 3% vs. FY20 ◆ WPB revenue up 3% from higher mortgage volume, partly offset by lower rates ◆ CMB revenue up 5% from higher volumes and fee income Costs down 4% from lower headcount, partly offset by the first-time allocation of the UK bank levy WPB Personal gross mortgage balances, £bn 118.1 101.5 110.7 FY19 ic.£21bn¹ • FY20 ic.£24bn 7.4 FY21 ic.£28bn¹ CYTD gross lending62 Continued strength in mortgage lending: 7.5% mortgage stock market share63; 4021 gross new lending share of 9.3%; FY21 gross new lending share of 8.8%63 r ◆ Buy-to-let mortgages of £3.0bn ◆ Mortgages on a standard variable rate of £2.9bn Personal unsecured lending balances, £bn 5.9 6.0 8.8 7.7 7.2 Credit cards Other personal lending FY19 FY20 FY21 Card balances up 4% vs. 3021, with FY21 card spend up 13% vs. FY20 as consumer confidence improves Other personal lending down 6% vs. FY20 primarily due to the impact of restrictions on customer behaviour 0.25 0.20 0.15 0.10 Mortgages: 90+ day delinquency trend62, % 0.5 0.16 01/19 01/20 01/21 Interest-only mortgages of £18.6bn64 ◆ New originations average LTV of 67%; average portfolio LTV of 51%, stable vs. FY20 1.0 0.0 Strategy 0.23 → Mortgage delinquencies remain slightly elevated vs. pre-pandemic as a result of a market-wide pause in litigation activities, now restarted 0.19 0.63 Credit cards: 90-179 day delinquency trend 62, % 0.89 01/22 0.40 01/19 01/20 01/21 01/22 Credit Card delinquencies remain below pre- pandemic, reflecting lower utilisation and customers deleveraging through the pandemic 4021 results CMB Wholesale gross customer loans, £bn 67.1 FY19 70.2 Appendix FY20 66.1 FY21 FY21 GTRF assets of c.£6bn, up >40% vs. FY20 following a recovery in trade activity Provided £12.3bn of government- backed lending to businesses since March 2020 FY21 government lending balances of £9.2bn, down £0.7bn vs. FY20 as customers began repayment 52#54Glossary AIEA AM AT1 BoCom Bps CET1 Corporate Centre CMB CRE CRR CTA C&L DCM ECL GBM GLCM GPB Group GSSS GTRF HIBOR IEA Average interest earning assets Asset Management Additional Tier 1 Bank of Communications Co. Limited, an associate of HSBC Basis points. One basis point is equal to one-hundredth of a percentage point Common Equity Tier 1 Corporate Centre comprises Central Treasury, our legacy businesses, interests in our associates and joint ventures and central stewardship costs Commercial Banking, a global business Commercial Real Estate Customer Risk Rating Costs to achieve Credit and Lending Debt Capital Markets Expected credit losses. In the income statement, ECL is recorded as a change in expected credit losses 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 Global Banking and Markets, a global business Global Liquidity and Cash Management Global Private Banking HSBC Holdings plc and its subsidiary undertakings Green, Social, Sustainability and Sustainability-linked Global Trade and Receivables Finance Hong Kong Interbank Offered Rate. International Energy Agency IFRS LCR Legacy credit ΜΕΝΑ MSS NCI NII NIM NNIA NRFB OCI PBT Ppt PVIF SABB UK RFB ROTE ROW RWA TNAV WPB XVAS Strategy Non-controlling interests Net interest income Net interest margin International Financial Reporting Standard Liquidity coverage ratio 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 Middle East and North Africa Markets and Securities Services Net new invested assets Non ring-fenced bank in Europe and the UK Other Comprehensive Income Profit before tax 4021 results Percentage points Present value of in-force insurance contracts The Saudi British Bank, an associate of HSBC Appendix HSBC UK, the UK ring-fenced bank, established July 2018 as part of ring fenced bank legislation Return on average tangible equity Rest of world Risk-weighted asset Tangible net asset value Wealth and Personal Banking, a global business Credit and Funding Valuation Adjustments 53#55Footnotes 1. If policy rates were to follow the current implied market consensus 2. Medium-term is defined as 3-4 years from 1 January 2020; long-term is defined as 5-6 years 3. 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'. References to EU regulations and directives (including technical standards) should, as applicable, be read as references to the UK's version of such regulation and/or directive, as onshored into UK law under the European Union (Withdrawal) Act 2018, and as may be subsequently amended under UK law 4. Cumulative RWA saves under our transformation programs as measured from 1 January 2020, including $9.6bn of accelerated saves made over 4019 Based on tangible equity of the Group's major legal entities excluding associates, holding companies and consolidation adjustments 6. WPB TE as a share of TE allocated to the global businesses (excluding Corporate Centre). Excludes holding companies, and consolidation adjustments NNIA: Net New Invested Assets. Includes Retail Wealth (excl. deposits), GPB (excl. deposits), and AM 3rd party. Asia Retail Wealth NNIA includes only China/HK/HASE/Singapore/Malaysia - representing 96% of invested assets in Asia. Prepared on a reported basis 5. 7. 8. Wealth deposits include Premier, Jade and Global Private Banking deposits, which include Prestige deposits in Hang Seng Bank, and form part of the total WPB customer accounts balance 9. Assets managed by HSBC Asset Management. Excludes associates and joint ventures. Prepared on a reported basis 10. Asia WPB Wealth Revenue: WPB Wealth, WPB Insurance, GPB, and Asset Management 11. Asia WPB Insurance Value of New Business includes Singapore, China and HK (AMH and HASE) 12. Primarily Markets income, down vs. prior year due to strong comparative period 13. Between CMB and GBM: Includes Global Markets products to CMB customers and Global Banking products to CMB Customers 14. GBM and WPB: Includes GM products to WPB customers 15. East refers to Asia, Middle East, North Africa and Turkey (MENAT). West refers to Europe, North America and Latin America. Calculation is based on GBM RWAS by region, as stated in the external datapack, which exclude the impact of market risk diversification and inter-regional eliminations 16. Exit of US mass retail and planned sale of France Retail 17. FY21 adjusted costs for HSBC Bank plc includes a first-time allocation of the UK bank levy of $171m 18. Data is as of 31 March 2021 and as quoted in HSBC press release dated 26 May 2021 19. Data is as of 31 December 2020 and as quoted in HSBC press release dated 18 June 2021 20. 4th largest health insurer based on gross premiums and 7th largest life insurer based on annualised new premiums based on MAS and LIAS data as of December 2020 21. Data at 30 September 2021. AUM source: Association of Mutual Funds in India (Average AUM) 22. Technology costs in operating expenses trends include transformation saves and are presented on a net basis 23. On an IFRS 4 basis 24. % of total Technology workforce in the global businesses and functions are aligned to at least one agile team per Strategy 4021 results Appendix agile blueprint 25. % of the Group's technology services that are on the private or public cloud; 2020 cloud adoption is based on an estimate of private cloud usage 26. % of transactions initiated digitally by our customers on our HSBC digital channels 27. HSBCnet is HSBC's global internet banking platform for wholesale clients 28. % of WPB customers who have logged into a HSBC Mobile App at least once in the last 30 days. Percentages are for the month of December in their respective years 29. Employee engagement index represents the average % of respondents who would recommend HSBC as a great place to work, are proud to say they work for HSBC and feel valued at HSBC 30. Senior leadership is classified as those at Band 3 and above in our global career band structure. Employees with an 'Undeclared' or 'Unknown' gender have been incorporated into the 'Male' category 31. Contribution in 2021 towards the Group's $750bn to $1tn sustainable finance and investment ambition. The volume amounts stated include; capital markets/advisory activities, balance sheet related transactions that capture the limit of the facility at the time it was provided and the net new flows of sustainable investments (Assets under Management) 32. This absolute greenhouse gas emission figure covers scope 1, scope 2 and scope 3 (business travel) emissions; data for 2019 and 2020 has been revised as we have updated our air travel reporting methodology to include the cabin class travel and the impact of radiative forces. The emissions of HSBC's vehicle fleet were reported under scope 3 for these two years. Please see CO2 Emissions Reporting Guideline and PwC Assurance Report (available at www.hsbc.com/our-approach/esg-information/esg-reporting-and-policies) for 2019 and 2020 33. 4021 DPS in respect of FY21; 4020 DPS in respect of FY20 34. CMB lending growth during FY21 includes the impact of $13bn of gross RWA reductions 35. NII sensitivity reflects the impact of immediate rate shocks on NII to a hypothetical base case projection, which already incorporates forward rates (as at 31 December 2021), assuming a constant balance sheet as of 31 December 2021 36. Source: Bloomberg. GBP: Sterling Overnight Index Average (SONIA); USD: Fed funds. Implied rates for 31 December 2022 and 2023 based on the following as of 18 February 2022: 30 day Fed Funds futures and one month SONIA index future 37. Based on current consensus economic forecasts and default experience, noting we retain $0.6bn of Covid-19-related allowances as at the end of 2021. Uncertainty remains given recent developments in China's commercial real estate sector, while inflationary pressures persist in many of our markets 38. Technology cost increases in quarterly walks are presented on a gross basis (excl. saves) 39. Includes movements in fair value through other comprehensive income reserve, deductions for excess expected loss and investments in financial sector entities 40. Source: HKMA at 31 December 2021; Hong Kong market share includes HASE 41. Applicable transactions cover 34 markets (including the UK and Hong Kong) and exclude payments that are cancelled, low value or batched payments, transactions that require intervention due to regulation and manual payments 54#56Footnotes 42. For further details on our financed emissions scope, methodology and terminology see pages 47 - 50 of the HSBC Holdings Annual Report and Accounts 2021 43. Less than 1% of employees will not yet have completed due to new joiners to the bank being given 45 days to complete their mandatory training 44. Source: Dealogic. Apportioned volume represents the portion of deal volume assigned to HSBC in deals where HSBC is marked as a lender 45. Client value is based on HSBC internal client management information and differs from reported revenue. Client value is the revenue from banking clients in GBM and CMB and excludes Global Markets trading revenue, Principal Investments, Business Banking and non-customer revenue, for example allocations from Corporate Centre. Analysis considers all CMB Business Banking clients to be domestic clients 46. For GBM, a client is considered as international if they hold a relationship with HSBC in two or more markets, and generate over $10k annually in client revenue across all products; for CMB, a client is considered as international if they either hold a relationship with HSBC in two or more markets, or provide GTRF and FX product revenue greater than or equal to $10k annually 47. Domestic client value is client revenue that is booked in the same market in which the primary client relationship is managed. Cross-border client value is client revenue that is booked in a different market from where the primary client relationship is managed 48. FY19 RWAs are as reported and includes accelerated saves of $9.6bn achieved in 4019 49. YTD. ROTE by Global Business excludes significant items. ROTE methodology annualises Profits Attributable to Shareholders, including ECL, in order to provide a returns metric. ROTE by Global Business considers AT1 Coupons on an accruals basis, vs. Reported ROTE where it is treated on a cash basis. Since 1 January 2021, the UK bank levy has been included in the calculation of this measure, comparative data have not been re-presented 50. Asia market position: FX, GLCM, Securities Services (SSV) and Debt rankings are Asia ex Japan, source: Oliver Wyman/Coalition report 1H21; Loans is Asia ex Japan and onshore mainland China, source: Dealogic 1H21; DCM is Asia ex Japan, source: Dealogic 1H21; Global market position: FX, SSV, GLCM and GTRF, source: Oliver Wyman/Coalition report 1H21 51. Source: McKinsey Panorama, release date 20 September 2021. Forecasts do not currently include impact of Covid-19 and oil price drop in Q1 2020 52. East defined as Asia & Middle East; West as Europe & Americas; Client value, as defined in footnote 45, excludes Global Markets products here 53. Transaction banking (TXB) includes GLCM, GTRF & Securities Services to have like to like comparison as Global Forex is not disclosed separately by peer banks; Peers include US banks 54. Revenue synergies include revenues generated from GBM products across the Group (WPB, CMB) and vice versa 55. From 1st July 2018, Argentina was deemed a hyperinflationary economy for accounting purposes 56. Data to reconcile components of reported RWAS to adjusted RWAS can be found in the 'HSBC Holdings plc 4Q 2021 Datapack' Strategy 4021 results Appendix 57. Source: Hong Kong Insurance Authority Quarterly Release of Provisional Statistics for Long Term Business up to 3Q21 58. 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' 59. Mainland China drawn risk exposure. Retail drawn exposures represent retail lending booked in mainland China; Wholesale lending where the exposure is booked in mainland China or the ultimate parent/beneficial owner is in mainland China 60. Mainland China reported Real Estate exposures comprises exposures booked in mainland China and offshore where the ultimate parent is based in mainland China, and all exposures booked on mainland China balance sheets; Commercial Real Estate refers to lending that focuses on commercial development and investment in real estate and covers commercial, residential and industrial assets; Real Estate for Self Use refers to lending to a corporate or financial entity for the purchase or financing of a property which supports overall operations of a business i.e. a warehouse for an e-commerce firm 61. Loans and advances amounts represent gross carrying amount. Guarantees amounts represent nominal amount 62. Excludes Private Bank 63. Source: Bank of England 64. Includes offset mortgages in first direct, endowment mortgages and other products 55#57Disclaimer Strategy 4021 results Appendix 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 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, 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", "believe", "potential" and "reasonably possible" or the negatives thereof or other variations thereon or comparable terminology (together, "forward-looking statements"), including the strategic priorities and any financial, investment and capital targets and any ESG related targets, commitments and ambitions 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, the impact of the Covid-19 pandemic or as a result of data limitations and changes in applicable methodologies in relation to ESG related matters). 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 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"), our 1Q 2021 Earnings Release furnished to the SEC on Form 6-K on 27 April 2021 (the "1Q 2021 Earnings Release"), our Interim Financial Report for the six months ended 30 June 2021 furnished to the SEC on Form 6-K on 2 August 2021 (the "2021 Interim Report"), our 3Q 2021 Earnings Release furnished to the SEC on Form 6-K on 25 October 2021 (the "3Q 2021 Earnings Release") and in our Annual Report and Accounts for the fiscal year ended 31 December 2021 available at www.hsbc.com and which we expect to file with the SEC on Form 20-F on 23 February 2022 (the "2021 Form 20-F"). 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, our 1Q 2021 Earnings Release, our 2021 Interim Report, our 3Q 2021 Earnings Release and our 2021 Form 20-F, when filed, each of which are available at www.hsbc.com. Information in this Presentation was prepared as at 22 February 2022. 56#58