#1HSBC Asia 19 AKE66022CI AKE 63888 CAKE64884CI HAS 32 HSBC JATE#2Forward-looking statements This presentation and subsequent discussion may contain certain forward-looking statements with respect to the financial condition, results of operations and business of the Group. These forward- looking statements represent the Group's expectations or beliefs concerning future events and involve known and unknown risks and uncertainty that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Additional detailed information concerning important factors that could cause actual results to differ materially is available in our 2012 Annual Report and Accounts and 1Q 2013 Interim Management Statement. Past performance cannot be relied on as a guide to future performance. This presentation contains non-GAAP financial information. Reconciliation of non-GAAP financial information to the most directly comparable measures under GAAP are provided in the 'constant currency and underlying reconciliations' supplement available at www.hsbc.com. 2#3HSBC Asia Financial Results and Highlights The Group Asia Strategic Priorities and Progress • Expand Leadership in Greater China Scale in other Priority Growth Markets Other Markets: Focus resources and maintain leadership in connectivity Global Business Performance and Achievements Commercial Banking Global Banking and Markets • Retail Banking and Wealth Management 3#4AKE66022CI AKE 63888 CAKE64884CI Financial Results and Highlights HAS 32 HSBC JATE#5The HSBC Group Results Financial highlights1 Summary financial highlights 2011 2012 % Better/(worse) 1Q13 Reported PBT (USDbn) 21.9 20.6 (6) 8.4 Underlying PBT (USDbn) 13.9 16.4 18 7.6 EPS (USD) 0.92 0.74 (20) 0.34 Dividends (USD)² 0.41 0.45 10 0.10 Key ratios % 2011 2012 ΚΡΙ 1Q13 Return on average ordinary shareholders' equity 10.9 8.4 12-15 14.9 Cost efficiency ratio 57.5 62.8 48-524 50.8 Advances-to-deposits ratio 75.0 74.4 <90 73.3 Core tier 1 ratio 10.1 12.3 9.5-10.54 12.7 Common equity tier 1 ratio³ na 9.0 9.5-10.54 9.7 Common equity tier 1 ratio, post management actions³ na 10.3 9.5-10.54 10.1 Notes: 1 All figures are as reported unless otherwise stated 2 Declared in respect of the period 3 Estimated Basel III end point CET1 ratio based on our interpretation of the July 2011 draft CRD IV regulation, supplemented by FSA guidance 4 New KPIs introduced in May 2013 Investor Update: Cost efficiency ratio Mid-50s, Common equity tier 1 ratio > 10% 5#6The HSBC Group 2012 results Regional and country profit contributions Geographical regions Country highlights Underlying PBT 2011 2012 (USDbn) % Better/(worse) (Underlying PBT USDm, 2012 vs 2011) Hong Kong 7,162 +24% India 809 +14% Hong Kong 5.8 7.2 24 China HSBC1 792 +10% Hong Kong Singapore 668 +12% and Rest of Asia-Pacific Malaysia 564 +8% Indonesia 306 +28% Rest of Asia-Pacific 6.3 6.4 2 Australia 278 -9% Taiwan 234 +12% Vietnam 120 -23% MENA 1.4 1.4 (3) UAE 455 -19% MENA Saudi Arabia 377 +13% Egypt 290 +31% Latam 1.9 2.2 19 Brazil 1,123 +6% Latin America Mexico 699 +47% Argentina 384 +39% Europe 1.6 0.7 (57) France 730 +1,337% Germany 344 +6% North America (3.1) (1.5) 51 Europe Turkey Switzerland 144 -1% 136 -38% UK (1,084) Total Note: 13.9 16.4 18 1 Also excludes mainland China associates and the fair value movements of USD553m on the contingent forward sale contract related to the Ping An sale, the effect of which was offset in 2013 on completion of the transaction Canada North America 6 USA (2,529) +39% 1,027 +7%#7Asia: First Quarter 2013 Results Highlights Reported PBT (USDbn) Global Business Reported PBT (USDbn) 5.5 3.9 Hong Kong 1Q12 1Q13 2.2 % Better/ (worse) 1.9 3.4 2.0 Commercial Banking 0.5 0.5 5 1Q12 1Q131 Global Banking and 0.4 0.6 34 Markets Hong Kong ROAP Retail Banking and Wealth 0.9 1.0 4 Underlying PBT (USDbn) Management 4.3 Global Private Banking 0.1 0.1 9 3.5 2.2 1.9 Other (0.0) 1.6 2.1 Total 1.9 2.2 14 1Q12 1Q13 Hong Kong ROAP Reported ROAP 1Q12 1Q13 1Q12 1Q13 % Better/ (worse) CER (%) Commercial Banking 0.6 0.6 2 Hong Kong 39.0 35.2 Global Banking and 0.9 0.8 Markets (9) ROAP 49.8 31.7 Retail Banking and Wealth 0.5 0.3 Reported Management (44) 1Q12 1Q13 RoRWA(%) Global Private Banking 0.0 0.0 (15) Hong Kong 7.3 7.6 Other 0.1 1.7 ROAP 2.8 4.7 Total 2.0 3.4 66 99 Note: 1 The 1Q13 Reported PBT numbers are not additive due to rounding 7#8Asia: 2012 Results Highlights Key Priorities Growth • Simplifying and restructuring the business Progress/Achievements • Underlying revenue growth of 13% in Hong Kong, 1% in ROAP • RBWM underlying PBT growth of 16% in Hong Kong, 17% in ROAP . • CMB underlying PBT growth of 26% in Hong Kong, 12% in ROAP GBM underlying PBT growth of 14% in Hong Kong, 11% in RoAP Gross loans and advances to customers increased 10% in Hong Kong, 9% in ROAP Addressing fragmentation: six filters • Over US$4bn net gains recognised since May 2011 following 8 strategic disposals • 2013: Ping An stake sale completed Improving organisational efficiency • Sustainable annual saves of c. USD 390m in 2012 • Financial results . Note: 1 Includes disposal gains JAWS: +14% reported, +11% underlying in Hong Kong, +27% reported, -2% underlying in ROAP • Reduction of 7.3k FTE (6%) to 112.8k since May 11 • • Hong Kong reported PBT increased 30% to USD 7.6bn ROAP reported PBT increased 40% to USD 10.4bn RORWA¹ of 7.0% for Hong Kong and 3.5% for ROAP 8#9AKE66022CI AKE 63888 CAKE64884CI HAS 32 Strategic Priorities and Progress HSBC JATE#10HSBC Asia Strategic Priorities Connecting Asia and the world 1 Expand leadership in Greater China • Maintain leadership in Hong Kong Continued leadership as mainland China's top foreign bank¹ Be the leading international bank for RMB worldwide • Taiwan as a key component of the Greater China leadership proposition 2 Scale in other priority growth markets Focus on ASEAN presence and keep pace with fast moving development of the socio-economic regional integration within the ASEAN region Continue to invest to build scale in other priority markets - India - Singapore Malaysia - Indonesia - Australia - Vietnam 3 Other Markets: Focus resources to maintain leadership in connectivity Focus resources in non-priority markets to maintain leadership in intermediating Trade, Capital and Wealth flows • Reshaped the business by announcing / completing the disposal of a number of non-strategic businesses Note: 1 Measured by size of network and PBT 10#111 Expand Leadership in Greater China Maintain leadership in Hong Kong Continue leadership as mainland China's top foreign bank¹ International connectivity Capture the increasing connectivity (in business, trade and investments) between China and the world, including Chinese enterprises "going out" and Hong Kong / international companies "going into China" Taiwan as a key component of the Greater China market leadership proposition Position HSBC as the Leading International RMB Bank Focus on core RMB products: Advances, Deposits, Bonds, Trade, FX ■ Leverage on first mover advantage and Hong Kong's position as leading offshore RMB centre ☐ Capitalise on international connectivity to increase market share (e.g. 24% share in 2012 Bloomberg CNH Bond League Table) ☐ Leverage global capabilities: RMB capabilities established in over 50 markets ☐ Recognition: 'RMB House of the Year' in the 2012 Asia Risk Awards, ‘Best for overall products/services' and 'Most likely RMB products/services provider' in the 2012 Asiamoney Offshore RMB Services survey ■ Maintain market leadership Best Commercial Bank in Hong Kong 2012 (FinanceAsia) Consolidate market position across core products Market leader in life insurance manufacturing, deposits, MPF, mortgages, credit cards and offshore RMB bond Maintain scale in other strategic businesses ☐ Sustain market presence through network leadership Largest foreign bank in mainland China: Outlets²: 145 HSBC China, 21 HSBC Rural Bank, 46 Hang Seng 'Best international Trade Bank in China' award by Trade Finance Magazine Strategic investments in China associate: Invested a further USD 1.7bn in 2012 in BoCom to maintain 19.03% stake Notes: 1 Measured by size of network and PBT 2 March 2013 11#12I 1 In Mainland China c.70% of the international opportunity in the top-10 city clusters Mainland China city clusters % of Mainland China total Top-10 city clusters c.30 c.70 c.70 c.70 c.30 c.30 Example: Guangzhou-Shenzhen city cluster Major cities of cluster Conghua Zengcheng Guangzhou Huizhou Foshan Dongguan Heshar Hes Jiangmen Kaiping Taishan Population GDP growth 2010-25 Int'l commercial banking revenue growth 2010-25 Enping Source: McKinsey & Company 12 Zhongshan Zhuhai Shenzhen Hong Kong Hub city Spoke city High income city (household income >RMB100k) Mid-High income city (household income >national average)#13• 2 Scale in other Priority Growth Markets Focus on ASEAN presence and keep pace with the socio-economic regional integration within the ASEAN region · Expansion of customer base, distribution channel, and supply chain penetration with ASEAN, India and Australia Country Key HSBC ASEAN Markets Strategic Priorities 2012 Advances¹ (USDbn); CAGR 2009-12 India Grow target segments tapping domestic growth and international connectivity India 7.3 +12% Singapore Leverage Singapore's aspirations as a Regional Wealth and Trading hub Singapore 28.7 +25% Indonesia 6.0 + 29% Indonesia Position to tap the growth potential in Indonesia Malaysia 14.9 +17% Malaysia Maintain the leading foreign bank position in Malaysia and Vietnam Vietnam 2.1 + 18% Vietnam Australia Note: 1 Gross Loans and Advances to customers Connecting Australia to China and ASEAN Australia 21.0 + 20% 13#143 › Focus resources to maintain leadership in connectivity Cost Efficiency and Sustainable Cost savings • • Implement consistent business models, streamline IT functions regionally and re-engineer processes globally Achieve positive JAWS across global businesses and countries . Target CER mid-50s% Five Filters: Reduced fragmentation in Asia-Pacific Footprint simplification Disposal of non-core businesses Country Japan Thailand Japan Country Hong Kong Singapore Hong Kong India Philippines 11 countries China Transaction Sale of Japan private banking operations Sale of RBWM operations in Thailand Discontinuation of Premier banking in Japan Transaction Sale of HSBC general and medical insurance business in Hong Kong Sale of HSBC insurance businesses in Singapore Sale of Hang Seng general insurance business in Hong Kong Sale of our non-core investments in banks in India Sale of shareholding in a property company in the Philippines Sale of 44% shareholding in Global Payments Asia-Pacific Sale of stake in Ping An 14#15AKE66022CI AKE 63888 CAKE64884CI HAS 32 Global Business Performance and Achievements HSBC JATE#16Commercial Banking Leading international trade and business bank CMB Reported PBT (USDbn) Strategic Direction and Highlights Focus on faster-growing markets while connecting revenue and investment flows with developed markets HSBC Global Trade Finance market share up from 9% to 10% +24% 4.8 3.9 2.2 1.6 2.2 2.6 • Number one Global Trade Finance Bank in the world2 20111 2012 . Hong Kong ROAP CMB Reported Revenue (USDbn) Trade-related revenue growth of 10% in Hong Kong in 2012 Continue build out of Commodities and Structured Trade Finance Implementing a consistent global operating model to capture growth in international SMEs and corporate businesses, and improve controls • • +16% 5.1 4.4 . 2.9 2.4 2.0 2.2 2011 2012 Hong Kong ROAP CER (%) 2011 2012 Hong Kong 29.7 24.8 ROAP 46.6 45.2 Notes: 1 2 The 2011 Reported PBT numbers are not additive due to rounding Oliver Wyman Global Transaction Banking Survey 2012 Globally consistent customer segmentation Repositioned Business Banking and global rollout of international SME proposition underway Expanded global network of dedicated China desks to cover our top markets representing about half of the world's GDP Enhance collaboration across all global businesses to provide our customers with access to the full range of the Group's services . Revenues from the CMB-GBM collaboration increased in 2012, most notably through FX products to our corporate customers 16#17Global Banking and Markets Connecting clients to global growth opportunities GBM Reported PBT (USDbn) +10% 4.8 4.4 1.3 1.5 . 3.1 3.3 2011 2012 Hong Kong ROAP GBM Reported Revenue (USDbn) +5% 6.8 6.4 2.5 3.9 2.8 4.0 2012 2011 Hong Kong ROAP CER (%) 2011 2012 Hong Kong 49.2 45.7 ROAP 32.8 32.0 Strategic Direction and Highlights Reinforce client coverage and client-led solutions for major government, corporate and institutional clients • • Build on leading positions in DCM, ECM and Asian local currency Lead the market in HKD bond issuance; leading book runner for corporate high yield bonds in Asia excluding Japan Reinforce leading position in offshore RMB products and services Continue to selectively invest in the business to support the delivery of an integrated suite of products and services • • • In Rest of Asia-Pacific, advisory, DCM and credit and lending businesses. have been enhanced through senior appointments in the Resources and Energy and the Financial Institutions groups RMB capabilities: Enhanced PCM systems, #1 in Dim Sum bonds with 24% market share, first bank to issue RMB bond outside Chinese territory, first ever RMB repo trade First foreign bank to gain approval to establish an automated, cross-border pooling structure in mainland China Enhance collaboration with other global businesses, particularly CMB, to appropriately service needs of our international clients . Revenues from the CMB-GBM collaboration increased in 2012, most notably through FX products to our corporate customers 17#18Retail Banking and Wealth Management Strengthening our position in priority markets RBWM Reported PBT (USDbn) Strategic Direction and Highlights Building a consistent, high standard, customer needs-driven wealth management service drawing on Insurance and Asset Management businesses • • Launched three managed solutions in Singapore and Hong Kong, including the Global High Yield Bond Fund (over US$1bn of subscriptions in 2012) Established Global Wealth Incentive Framework (GWIF) in Q1 2013 Leveraging global expertise to improve customer service and productivity, to provide a high standard of banking solutions and efficient customer service • +12% 5.2 4.7 3.0 3.7 1.6 1.5 20111 2012 Hong Kong ROAP RBWM Reported Revenue (USDbn) +8% 8.7 8.0 4.9 3.1 3.1 2011 2012 Hong Kong ROAP CER (%) 2011 2012 Hong Kong ROAP 36.9 32.7 • 78.1 72.3 Note: 5.6 1 The 2011 Reported PBT numbers are not additive due to rounding Infrastructure: Web-enabled foreign currency system, online launch of dual- currency deposits, improved market access for FX trading. Tools: Piloted new Wealth Dashboard in Taiwan and Singapore for improved customer service Digital banking: First mobile payment solution in Hong Kong (contactless card transactions), mortgage digital sales tools in India and Malaysia. Simplifying and re-shaping the RBWM portfolio of businesses to focus our capital and resources on key markets • Exits from RBWM business in Thailand, Japan, our life insurance businesses in Taiwan and South Korea, and our general insurance business in Hong Kong / Macau and Singapore Focus on secured lending, with mortgage growth in mainland China, Singapore, Australia and Malaysia Market leadership in deposits, mortgages, MPF, life insurance and credit cards in Hong Kong 18#19HSBC Asia - Breadth, depth and the ability to connect the world Leadership in Trade, Capital... and Wealth flows ■ Finance Asia: Best Trade Finance Bank in Asia (1997-2011) Euromoney: No.1 Cash Management Provider in Asia (2009-2011) ■ FX week: "Best Bank for FX in Asia-Pacific" (1993-2010) Euromoney: Best Private Bank in Asia (2009-2012) Strength in premium banking (1.3m Premier customers +32% vs. 2009) Network to connect Asia, and Asia to the Rest of the World Asia 20 Markets No.1 brand in Asia Well funded subsidiary model TNS: No.1 Bank in Asia's Top 1,000 Brands 2010 survey Strong Asian heritage with over 146 years of presence ■Model in-line with possible regulation Ability to raise local funding Source: Finance Asia, Euromoney, FX week, TNS 19 Rest of the World 60+ Markets