#1Global Banking & Markets Investor Relations Roadshow June 2021 CAUTION 96 HIGH CONTAINER HSBC 1380827 DMP 186 27770 6874 9886#2Agenda 1 Global Banking & Markets overview 2 Strategy update 3 Appendix GBM overview Strategy update Appendix 3 7 12 2#3Global Banking & Markets overview HSBC 3#4GBM overview Strategy update Appendix Our ambition is to be the leading international bank in Asia and the Middle East, supported by a global network that promotes trade and capital flows GBM strategic priorities 1. Grow Transaction banking revenues in key corridors capitalising on our broad product strength Performance ambition #1 2. Become a top 5 Global Financing house and significantly grow our event revenues in targeted markets with GBM and CMB clients¹ Corporate & Investment Bank (CIB) in Asia² 3. Provide financing and investment solutions to underpin the growth of the Group's wealth business 4. Maintain our leadership in ESG, helping issuer and investor clients manage the transition to a low carbon economy Top 3 Global transaction bank³ 5. Deepen business with institutional clients by enhancing distribution capabilities and facilitating capital flows between East and West Key enablers a. Reposition capital and cost base to focus resources on delivering our strategic priorities Invest in technology to improve client experience, efficiency and scalability whilst reducing operational risk C. 123 Do the right thing - maintain high conduct standards, invest in talent and uplift culture Based on Dealogic revenue rankings 1. 2. The leading international Corporate & Investment Bank in Asia 3. Transaction Banking defined as GLCM, GTRF, Securities Services & FX #1 Global CIB for low carbon- transition & sustainable economy Attractive returns fully consistent with Group targets over the medium term 4#5GBM overview Strategy update Appendix Our global network is the key to extracting value from our market leading platforms A strategy built on our global network¹ West-East connectivity is a key differentiator # Countries Banked 1-2 3-7 8+ Higher GBM clients² FY20 ~50% ~75% Our franchise is highly ~30% connected and focused on international clients ~20% ~20% ~5% Lower Clients Client RoRWA³ revenue Eastern revenues originating from Western clients for selected products Eastern GBM client revenue³ FY20 ~65% ~55% ~40% of Eastern revenues are inbound from the West, with >2x the returns of intra- regional business4 ~50% A& The West providing access to talent, large institutional clients, deep liquidity pools and USD clearing The East supporting Western supply-chains, working capital and access to local markets Volumes in the West enable competitiveness and scale to invest in the East Securities Services GLCM FX All data from FY20; client revenue is based on HSBC internal client management information and differs from reported revenue. Client revenue excludes MSS trading revenue, Principal Investments and non-customer revenue, including allocations from Corporate Centre FY20 client revenue data includes Corporate clients only (excludes Institutional clients) 1. -234 2. 3. 4. Client returns based on Return over Risk Weighted Assets (RoRWA), measured by client profit before tax over average risk-weighted assets (excluding market risk RWAs) FY20 client revenue from transactions booked in the East where client relationships are managed in the West;, "East" defined as Asia and Middle East; West as remaining regions 5#6GBM overview Strategy update Appendix Our role and value to the Group Supporting the Group Positioned for growth Aligned to strengths Client revenue delivered to other businesses underpins Group profitability Majority of adjusted revenue booked in high growth markets1 Transaction Banking franchise delivers stable, recurring revenue² 123 FX Wealth & Risk Mgmt East West Cap Mkts & Advisory Referrals ~$4bn (+7% YoY) $15.3bn East defined as Asia & Middle East; West as Europe, & Americas Peers include a mix of 11 US and European banks Peers include a mix of 5 US and European banks with confidence intervals between 95%-99% Transaction Banking & Lending FI & Equities IB HSBC 2020 Peers 20202 Financial stability Expert risk management and diversified trading portfolio (VAR)³ HSBC vs. quarterly peer average VaR 2020 99% confidence interval 위 48 95% confidence ~35 interval 66 HSBC Peers 6#7Strategy update HSBC 7#8GBM overview Strategy update Appendix Building from our plans announced in February 2020 GBM commitments Align resources to areas of growth Delivered $54bn of gross RWA reductions to 10211 Reduced capital deployed to G10 Rates business, exiting G10 long-term rates derivatives market- making Delivering against the plan 1020 vs. 1021 GBM RWAs (14)% from $295bn to $255bn Improve efficiency Merged Global Markets and Securities Services Created single middle and back office to support wholesale clients Cost-Income-Ratio (4)ppt from 63% to 59% Demised central structures Invest in areas of competitive strength 2. 123 Investing over $1.3bn in platforms, technology and coverage² Return on Tangible Equity³ +5.8ppt from 6.3% to 12.1% Since 3Q19, which included accelerated saves in 4Q19 $1.3bn refers to 2021 cash CTB in 2021 Excluding Significant Items & Bank Levy 8#9GBM overview Strategy update Appendix Leveraging our strengths to deliver growth A universal banking proposition Supporting the Group's clients with product expertise Positioning for growth Asset light, fee-driven business model, proactively distributing risk for clients across the Group GBM Corporate clients Enabling financing Extending positions of leadership GBM Institutional clients solutions, CMB clients structuring & distributing risk WPB clients Capital markets and advisory; payments and cash management; FX and financing solutions; wealth and risk management products Transaction Banking Fixed Income ESG Ambition for growth Investment banking Products for wealth clients Risk management and distribution capabilities 9#10GBM overview Strategy update Appendix Investment in technology enables better client service, growth and efficiency Digitising the client experience HSBCnet and Connect ◆ Secure, resilient and future-proof digital platforms and capabilities allowing customers to transfer large quantities of payments Award winning mobile app gives quick and convenient 24/7 access with best-in-class biometrics HSBC Menu Account information D Welcome to HSBCnet >154k Customers Welcome to the start of your new HSBCnet Here's a quick tour of the footuros that will help you do things faster and more easily. US Demo Use US Engl Layoff Tasks Delivering digital services HSBC SmartServe A secure, digitised customer User Interface for Wholesale clients to request entity onboarding and access to products and services ◆ Dynamic questionnaires replace paper forms to provide a simple journey which includes eSign, document exchange and Virtual Assistant ♦ Integrations to regional corporate registries and data providers to minimise client effort when onboarding 200 >20k Client Interactions $16.8tn Annual Payments 3.3k Transactions per minute Account information EURUSD 10MN TY Show all courts Grey Lion Ceny Currency FX Apps * Account SPOT Execution CADCANADIAN Dolan 020-12220150 Forward Execution 2013 00:00 STARDUSTRIES Current Subrocal Swap Execution CNV Min SPOT Liquidity Ladder 37000047001 31 Oct 2010 19:32 Обво со C FX Option Execution Volatility Grid 720m payments processed YTD April 21 (+36% on same period last year) Historical HSBC Indicative Mid-Rates EURUSD 13:02 1.17259 Max 1.17006 1.1766 Related Searches Q EURUSD 10MN 1Y QEURGAP Q EURAUD QEURCNY eve Open App> >1.4k Internal users 19 Countries live HSBC SmartServe Overview Carevie Tarki Add gr ल x New sutreach Products & Servic dard F Ogat KIC CUR-01 302020 A AUM KIC K to:8000 Actos d KIC հարցուր դաս bk Og bkAwes UK KAF OgChat KC pro que H Ontine ser Live dut N 10#11GBM overview Strategy update Appendix GBM's ambition in 2025 is to deliver improved returns, with a simplified structure and a material shift of resources to Asia GBM in 2025 Return Levers Serving clients with an aspiration into and/or within Asia and the Middle East, and a strong global institutional client base Focused on areas of strength in transaction banking, financing and ESG; well connected with Group priorities Simplified operating model delivering growth in the East, supported by expertise, talent and client relationships from the West Asset light, fee-driven business model, proactively distributing risk for clients across the Group A capital efficient, profitable business, aligned to areas of growth and competitive strengths seeking to deliver attractive returns in the medium term 한 RWA reduction and accelerated shift to Asia Revenues driven by non-interest income and Transaction Banking products Cost reduction enabled by investments in technology and, wholesale support model 11#12Appendix HSBC 12#13Global Banking & Markets financial highlights Adjusted Financial Performance FY19-FY20 GBM overview Strategy update Appendix Adjusted Financial Performance 1020-1021 $m FY20 FY19 Δ RWAs $bn Markets and Securities Services 8,797 7,795 13% Banking 6,599 7,399 (11)% Г (14)% Revenue $bn +10% Other¹ (93) (325) 63% Revenue 15,303 14,869 3% ECL (1,209) (153) >(200)% 295 4.3 255 3.9 Costs (9,264) (9,544) (3)% Share of profits in associates and JVs - Adjusted PBT 4,830 5,172 (7)% 1Q20 1Q21 Significant items and FX translation (1,214) (4,230) (72%) Costs $bn Reported PBT 1Q20 ECL charge / (release) $m 1Q21 3,616 942 >200% +3% $bn Customer loans Customer deposits RWAs ROTE, %2 1. Other includes Pl and Markets treasury allocations 2. Excluding Significant Items & Bank Levy FY20 FY19 A 224 252 (11)% 560 337 304 11% 2.5 2.5 265 277 (4)% 6.7% 9.8% (3.1)ppts 1Q20 1Q21 1Q20 (190) 1Q21 13#14Global Banking & Markets returns GBM ROTE Evolution¹ % 10.5% 9.8% GBM overview 6.7% 6.3% Strategy update Appendix 12.1% 2018 2019 2020 1Q20 1Q21 1. Excluding Significant Items & Bank Levy 14#15Disclaimer Important notice The information, statements and opinions set out in this presentation and accompanying discussion ("this Presentation") are for informational and reference purposes only and do not constitute a public offer for the purposes of any applicable law or an offer to sell or solicitation of any offer to purchase any securities or other financial instruments or any advice or recommendation in respect of such securities or other financial instruments. This Presentation, which does not purport to be comprehensive nor render any form of legal, tax, investment, accounting, financial or other advice, has been provided by HSBC Holdings plc (together with its consolidated subsidiaries, the "Group") and has not been independently verified by any person. You should consult your own advisers as to legal, tax investment, accounting, financial or other related matters concerning any investment in any securities. No responsibility, liability or obligation (whether in tort, contract or otherwise) is accepted by the Group or any member of the Group or any of their affiliates or any of its or their officers, employees, agents or advisers (each an "Identified Person") as to or in relation to this Presentation (including the accuracy, completeness or sufficiency thereof) or any other written or oral information made available or any errors contained therein or omissions therefrom, and any such liability is expressly disclaimed. No representations or warranties, express or implied, are given by any Identified Person as to, and no reliance should be placed on, the accuracy or completeness of any information contained in this Presentation, any other written or oral information provided in connection therewith or any data which such information generates. No Identified Person undertakes, or is under any obligation, to provide the recipient with access to any additional information, to update, revise or supplement this Presentation or any additional information or to remedy any inaccuracies in or omissions from this Presentation. Past performance is not necessarily indicative of future results. Differences between past performance and actual results may be material and adverse. Forward-looking statements This Presentation may contain projections, estimates, forecasts, targets, commitments, opinions, prospects, results, returns and forward-looking statements with respect to the financial condition, results of operations, capital position, strategy and business of the Group which can be identified by the use of forward-looking terminology such as "may", "will", "should", "expect", "anticipate", "project", "plan", "estimate", "seek", "intend", "target" or "believe" or the negatives thereof or other variations thereon or comparable terminology (together, "forward-looking statements"), including the strategic priorities, any financial, investment and capital targets and ESG targets/commitments described herein. Any such forward-looking statements are not a reliable indicator of future performance, as they may involve significant stated or implied assumptions and subjective judgements which may or may not prove to be correct. There can be no assurance that any of the matters set out in forward-looking statements are attainable, will actually occur or will be realised or are complete or accurate. The assumptions and judgments may prove to be incorrect and involve known and unknown risks, uncertainties, contingencies and other important factors, many of which are outside the control of the Group. Actual achievements, results, performance or other future events or conditions may differ materially from those stated, implied and/or reflected in any forward-looking statements due to a variety of risks, uncertainties and other factors (including without limitation those which are referable to general market conditions, regulatory changes or due to the impact of the Covid-19 outbreak). Any such forward-looking statements are based on the beliefs, expectations and opinions of the Group at the date the statements are made, and the Group does not assume, and hereby disclaims, any obligation or duty to update, revise or supplement them if circumstances or management's beliefs, expectations or opinions should change. For these reasons, recipients should not place reliance on, and are cautioned about relying on, any forward-looking statements. No representations or warranties, expressed or implied, are given by or on behalf of the Group as to the achievement or reasonableness of any projections, estimates, forecasts, targets, commitments, prospects or returns contained herein. Additional detailed information concerning important factors that could cause actual results to differ materially from this Presentation is available in our Annual Report and Accounts for the fiscal year ended 31 December 2020 filed with the Securities and Exchange Commission (the "SEC") on Form 20-F on 24 February 2021 (the "2020 Form 20-F") and our 1Q 2021 Earnings Release which was furnished to the SEC on Form 6-K on 27 April 2021 (the "1Q 2021 Earnings Release"). Alternative Performance Measures This Presentation contains non-IFRS measures used by management internally that constitute alternative performance measures under European Securities and Markets Authority guidance and non-GAAP financial measures defined in and presented in accordance with SEC rules and regulations ("Alternative Performance Measures"). The primary Alternative Performance Measures we use are presented on an "adjusted performance" basis which is computed by adjusting reported results for the period-on-period effects of foreign currency translation differences and significant items which distort period-on-period comparisons. Significant items are those items which management and investors would ordinarily identify and consider separately when assessing performance in order to better understand the underlying trends in the business. Reconciliations between Alternative Performance Measures and the most directly comparable measures under IFRS are provided in our 2020 Form 20-F and our 1Q 2021 Earnings Release each of which are available at www.hsbc.com. Information in this Presentation was prepared as at 21 June 2021. 15#16Opening up a world of opportunity