#1HSBC Holdings plc 2023 Results Presentation to Investors and Analysts HSBC#2Strategic progress Noel Quinn Group Chief Executive HSBC#3Our purpose, values and ambition support the execution of our strategy Our purpose Opening up a world of opportunity Our ambition To be the preferred international financial partner for our clients Our values We value difference We succeed together We take responsibility We get it done Our strategy Focus on our strengths Digitise at scale Energise for growth Transition to net zero#4Strategy 2023 results Appendix Summary of our performance in 1H23 (vs. 1H22) 1H23 results Business performance | Reported PBT of $21.7bn, up $12.9bn. Up $13.3bn on a constant currency basis (158%) vs. 1H22 Revenue of $36.9bn, up $13.2bn (56%) on a constant currency basis. NII of $18.3bn, up $5.4bn (42%). Non-NII of $18.6bn, up $7.8bn (72%) Annualised RoTE of 22.4%, 18.5% excluding the provisional gain on acquisition of SVB UK and the reversal of France impairment Reported costs down $0.7bn (4.2%). On a FY23 cost target¹ basis, costs were up $0.6bn (4.3%), including severance of $0.2bn ECL charge of $1.3bn, with $0.3bn associated with our mainland China commercial real estate portfolio CMB revenue increased by 73% YoY²; WPB by 61%³; GBM by 14% (constant currency basis) CET1 ratio of 14.7%4 Capital and buybacks Revised RoTE guidance Second interim dividend per share of $0.10; total for 1H23 of $0.20 per share Completed $2bn buyback. Announced a further up to $2bn share buyback, with the intention to complete in around 3 months Targeting a RoTE in the mid-teens for 2023 and 2024, up from previous guidance of 12%+ from 20235 The remainder of the presentation unless otherwise stated, is presented on a constant currency 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 3#5Strategy 2Q23 results Appendix We are making good progress in delivering our strategy, supported by a strong balance sheet and capital generation International connectivity Grow and protect our leading position in international connectivity, leveraging our deep liquidity pools in the UK and HK Capital deployment Reposition our portfolio by exiting unprofitable, sub-scale or less internationally connected portfolios and investing in growth areas Diversification of revenue Diversify revenue streams with a focus on growing Wealth, fee income streams and collaborating across our businesses Cost discipline Retain strong cost discipline in a high inflationary environment, creating capacity for growth Investment in digitisation Continue to invest in digitisation to improve customer journeys, automate processes and deliver innovation Transition to net zero Build on our position as an enabler of the net zero transition by supporting our customers' transition St 4#6Strategy We continue to leverage our strong international connectivity Strong growth in Wholesale cross-border client business Sustained growth in WPB international business Wholesale cross-border client business, $bn International WPB customers, #m 2023 results Appendix Continued momentum in Transaction Banking revenue Wholesale transaction banking revenue, $bn Middle East Americas c.5 Europe Asia +c.50% c.7 Multi-Country Non-Resident Resident Foreigner 5.8 +8% 6.3 FX10 8.3 +63% 13.5 6% (1)% 140% GTRF 1H22 1H23 GPS c.2.5x International customer revenue vs. domestic customers 7,8 SSV 31% +34% 1H22 New-to-bank international customers7,9 1H23 YOY 1H22 1H23 LO 5#7Strategy 2Q23 results Appendix We continue to redeploy capital to further reposition our portfolio Disposals in the pipeline Planned sale of retail banking operations to My Money Group Portfolio repositioning France Aim to complete on 1 January 2024 Asia wealth Pre-tax loss of up to c.$2.2bn at the point of reclassification to held for sale; RWA reduction of c.$2.5bn Agreed sale to RBC under way Targeting closure in 1024 Canada SVB $5.3bn expected gain (including the recycling of the FX translation reserve loss of $0.4bn) Other markets Completed sale of our branch operations in Greece Planned sale of our business in Russia Planned divestment of our majority owned subsidiary, and establishment of a new wholesale banking branch in Oman Planned wind-down of our WPB business in New Zealand Innovation Banking Pinnacle: c.1.4k Personal Wealth planners now digitally enabled; positive momentum in VNB growth 11 India GPB: launched in July 2023 to serve high-net-worth (HNW) and ultra-high-net-worth (UHNW) clients onshore Diversification of business: continue to diversify with >35% of Asia NNIA originating outside Hong Kong Announced acquisition of SVB UK in March 2023 Acquisition strengthens our CMB franchise and enhances our ability to serve firms in New Economy sectors Build HSBC Innovation Banking into a global brand with over 800+ employees across the Group in the US, the UK, HK and Israel Bridge people, product and proposition across WPB, GBM, Innovation Banking to drive synergies and cross-sell 6#8Strategy 2Q23 results Appendix Our revenue base continues to be diversified with growth from fee income and collaboration revenues NNIA in Asia grew by 21%; NNIA in ROW lower due to liquidity outflows in the US Net new invested assets, $bn (13%) 39 Good momentum in CMB fee income Strong cross-sell of GBM products to WPB clients Outflows of $6.2bn in 1H23 vs. inflows of $9.6bn in 1H22 in AM liquidity products through third party CMB fee income, $bn GBM collaboration revenue, $bn +5% +6% 2.0 1.9 Product revenue 2.0 YoY, % distribution, mainly in the US 1.9 34 19% Rest of World 17 7 (57)% 27 21% Asia 22 1H22 1H23 1H22 1H23 between GBM and WPB12 Product revenue between GBM and CMB 13 1H22 1H23 (0)% 7#9Strategy 2023 results Appendix We have retained strong cost discipline whilst investing in digitisation Managed costs whilst increasing tech spend 1H22 to 1H23 cost movements, % Global businesses Technology14 Global Functions / Other (0.4)% +3.3% Mobile active WPB customers crossed half of our client base Mobile active WPB customers 15, % +6ppts 45% 51% 1H22 1H23 Digitally active CMB customers more than 80% of our client base Digitally active CMB customers 16,% +12.8% Tech spend % of total Opex: 23% +6ppts 76% 82% Total costs on +1.4% +4.3% a target basis¹ +2.9% Severance costs: $201m Total costs excl. severance Severance costs 1H22 1H23 Improvement in product release frequency, and more to come Product release frequency per year 17, # 111 42% 158 1H22 1H23 8#10Strategy 2Q23 results Continued to build on our position as an enabler of the net zero transition by supporting our customers' transition Appendix Sustainable finance and investments, $bn 18 Green Social Sustainable Sustainability Linked Investments (Asset management)\ Cumulative sustainable finance and investments, $bn Transition to net zero +2% 44.1 45.0 ◆ Top tier underwriter of GSSS bonds globally in 1H23, taking a 4.4% market share18 1H22 1H23 170.8 FY22 cumulative: $211bn 255.7 Played a leading role in the HKSAR Government's $5.75bn and $6.0bn Institutional Green Bond Offerings. Both multi-currency bonds were the largest ESG bond issuances in Asia at the time of issuance HSBC China launched RMB30bn Green Credit Fund with exclusive credit approval channels and preferential interest rates to help support the low-carbon transition of its CMB customers Played a leading role in the Abu Dhabi National Energy Company's ('TAQA') inaugural green bond offering, which was undertaken under the Company's newly established Green Finance Framework Deployed capital through HSBC's Climate Tech Venture Capital strategy, including investing in Chargetrip, a European start-up developing electric vehicle routing and range technology 9#112023 results update Georges Elhedery Group Chief Financial Officer HSBC#122Q23 results summary $m NII Non-NII Revenue ECL 2023 2022 A 9,305 6,758 38% 7,400 5,318 39% 16,705 12,076 38% (913) (442) >(100)% Costs (7,871) (7,821) Associates Constant currency PBT 850 8,771 754 4,567 (1)% 13% 92% FX translation - 69 Reported PBT 8,771 4,636 89% Tax (1,726) 863 Profit attributable to ordinary shareholders 6,639 5,211 Earnings per share, $ 0.34 0.26 >(100)% 27% $0.08 EPS excluding material notable items, $ 0.34 0.16 $0.18 Dividend per share, $ 0.10 0.09 $0.01 ROTE (YTD, annualised), % 22.4 10.6 11.8ppts Memo: notable items (251) (1,036) 76% $bn Customer loans Customer deposits Reported RWAS 2023 1023 960 969 A (1)% 1,596 1,614 (1)% 860 854 1% CET1 ratio4, % TNAV per share, $ 14.7 14.7 0.0ppts 7.84 8.08 $0.24 Variances on this slide are vs. 2022 unless otherwise stated Strategy 2023 results Appendix NII of $9.3bn, up $2.5bn (38%) vs. 2Q22 and up $0.3bn vs. 1Q23 due to rising interest rates Non-NII of $7.4bn, up $2.1bn (39%), primarily due to the revenue offset into non-NII from the central costs of funding GBM trading activity and a strong insurance performance in Hong Kong ECL of $0.9bn including $0.3bn relating to mainland China CRE and $0.3bn relating to the UK RFB Costs up 1%; up 6% on a cost target basis¹ including $0.2bn of severance costs Customer loans down $9bn (1%) vs. 1023 due to lower loan demand from GBM clients in HSBC Bank plc as a result of rising interest rates and $4bn of loans moved to held-for-sale (HFS) primarily in Oman Customer deposits down $18bn (1%) vs. 1Q23, primarily due to lower GBM balances in HSBC Bank plc as customers used deposits to pay down loans and $5bn of deposits in Oman moved to HFS CET1 ratio of 14.7%; TNAV per share of $7.84, down $0.24 including $6bn dividend payments ($0.33 per share impact) and the $2bn share buyback ($0.04 per share impact) 11#13Revenue performance Strategy 2023 results Appendix 2023 revenue 2023 vs. 2022 Wealth $1,960m 312 19% WPB $7,217m ▲ 41% Personal Banking $5,250m 1,783 51% Revenue by global business, $bn +38% 20.4 o/w notable items $3.7bn Other $7m 11 > 100% 16.7 GTRF $516m (18) (3)% 4.4 o/w notable items $(0.2)bn Credit and Lending $1,381m (95) (6)% 12.1 CMB $5,541m 49% 4.1 GPS $3,056m 1,693 > 100% o/w notable items $(0.4)bn 6.8 Other $588m 253 76% 3.8 5.5 MSS $2,205m (179) (8)% 3.7 of which: FX $1,006m (113) (10)% 9.1 7.2 Banking $2,141m 528 33% 5.1 GBM $4,061m ▲ 8% of which: GPS $1,122m 538 92% (0.5) 0.1 (0.1) of which: Capital Markets & Advisory $252m 103 69% 2022 1Q23 2Q23 Other $(285)m (44) (18)% Corp. Centre $(114)m ▲ 77% 385 Corporate Centre CMB WPB GBM Group $16,705m ▲ 38% 4,629 12#14Net interest income and margin NIM progression, bps 169 45 (42) 172 1Q23 Asset yields Liability costs 2023 Reported NII analysis +3bps Discrete quarterly 168bps 169bps 172bps NIM 151bps Group NII, $bn 129bps 9.3 Banking NII, $bn 19 9.0 9.0 Insurance NII, $bn 8.0 Central costs of 11.6 6.9 10.2 10.3 funding trading 8.7 income, $bn*, 20 .7.1 (0.3) 0.1 0.1 0.1 (0.8) 0.1 0.1 (1.3) (1.4) (2.4)* 2022 3022 4022 1023 2023 Average interest earning 2,149 2,110 2,116 2,153 assets (AIEAs)*, $bn: 2,172 * Funding is for trading and fair value income, primarily relating to GBM. 2023 includes $0.4bn reflecting the year-to-date impact of methodology changes #2023 includes: c.$19bn insurance AIEAs and c. $130bn trading, fair value and associated net asset balances Strategy 2023 results Appendix ♦ Reported NII of $9.3bn, up $0.3bn (4%) vs. 1023 due to rising interest rates and higher interest earning assets $11.6bn Banking NII19, up $1.3bn vs. 1023 ◆ $2.4bn interest expense representing centrally allocated funding costs primarily associated with funding GBM trading income*. This was offset by $2.4bn reported in Corporate Centre trading income NIM of 1.72%, up 3bps vs. 1Q23, primarily driven by the UK Group 1 year NII sensitivity to a 100bps downward parallel shift in rates has reduced from $4bn at 4Q22 to $2.6bn. See further detail on slide 24 There is further interest rate sensitivity in non-NII relating to the central costs of funding trading income. Simplistically, a 100bps parallel downshift would reduce Corporate Centre non- NII by $1.3bn Expect FY23 NII of >$35bn and the revenue offset into non-NII from the central costs of funding GBM trading activity to be at least $7bn 13#15Non-NII Group non-NII, $bn Constant currency non-NII: 5.3 11.4 7.4 Notable items and FX: (0.5) 3.7 (0.2) Offset from central costs of 0.3 1.4 2.4* funding trading income: 0.5 0.4 Global Payments Solutions 0.5 0.6 Global Trade and Receivables Finance 0.4 1.6 0.4 Wealth 1.3 1.6 2.4 Markets and Securities Services 2.3 1.6 Product splits are shown on a reported FX basis 1.3 Other 1.0 1.1 2022 1Q23 2Q23 vs. 2022 +39% Strategy 2023 results Appendix Constant currency non-NII up $2.1bn (39%) vs. 2Q22, primarily due to the offset into non-NII from the central costs of funding GBM trading activity ◆ Strong Wealth performance, up $0.3bn (19%) primarily due to a $0.2bn increase in life insurance income in Hong Kong ◆ MSS down $0.6bn due to lower client activity and a change in methodology for the central costs of funding trading income in 2023 which reduced non-NII by $0.4bn* Other up $0.1bn including FX gains in Corporate Centre ◆ Fees up $0.1bn (3%), primarily in Personal Banking and CMB * 2Q23 includes $0.4bn reflecting the year-to-date impact of methodology changes Other includes WPB Personal Banking, WPB Other, CMB Credit & Lending, CMB Other, GBM Banking (ex. GPS and GTRF), GBM Other and Corporate Centre (ex. offset from central costs of funding trading income) 14#16Credit performance ECL charge trend, $m 1,464 1,101 442 913 438 2022 3Q22 4022 1Q23 2023 0.17 0.42 0.56 0.17 0.35 151 363 598 62 259 ECL charge / (release) by entity, $m ECL charge by stage, $bn ECL ECL charge as a % of average gross loans and advances22 Mainland China CRE charge* 2023 1023 Stage 1-2 Stage 3 Total Asia (HBAP) 389 65 o/w: Hong Kong 450 44 Wholesale 0.1 0.5 0.7# UK RFB (HBUK) 257 166 HSBC Bank plc (HBEU) 55 19 Personal 0.1 0.1 0.2 USA (HNAH) 33 29 Total 0.2 0.7* 0.9 Canada (HBCA) 10 1 Mexico (HBMX) 136 136 HSBC Middle East (HBME) 7 (7) Other21 26 29 Total 913 438 * Mainland China CRE charge is on a reported basis and has not been currency adjusted in prior periods + Totals do not sum due to rounding. Stage 3 charge includes POCI Strategy 2023 results Appendix $0.9bn charge, including $0.3bn relating to mainland China CRE and $0.3bn relating to the UK RFB Stage 3 balances of $20bn (2.1% of total loans), stable vs. prior quarter FY23 ECL guidance unchanged at ~40bps22 15#17Mainland China commercial real estate update Strategy Mainland China CRE exposures by booking location and credit quality At 30 June 2023 Memo: Mainland $m Hong Kong Hong Kong ROW Total China at 4Q22 Total 9,378 8,076 5,164 1,039 14,279 Strong Good Satisfactory 1,425 1,161 1,836 205 3,202 697 747 908 355 2,010 1,269 973 1,756 252 2,981 Sub-standard 2,887 1,891¦ 456 214 2,561 Credit impaired 3,100 Allowance for ECL (1,746) 3,304 (1,981)¦ 208 13 (191) (5) 3,525 (2,177) Hong Kong booked sub-standard and credit impaired exposures Total $m exposure Of which not secured ECL allowance* c.68% Sub-standard 1,891 1,587 Credit impaired 3,304 2,549 (174) (1,742) Total 5,195 4,137 (1,915) coverage ratio against not secured, credit impaired exposures * On not secured exposures 2023 results Appendix Total mainland China CRE exposure $14.3bn, down $2.5bn vs. 4022, reflecting ongoing de-risking measures and repayments in the China onshore and Hong Kong booked portfolios Hong Kong booked exposures: $8.1bn, down $1.3bn vs. 4Q22; $7.8bn drawn loans & advances $5.2bn (c.65%) is classed as sub-standard and credit impaired: $4.1bn not secured; $1.1bn secured Total ECL allowance of $2.0bn, substantially all against the $4.1bn of not secured exposures; ECL allowance on secured exposures is minimal due to the nature of security held Our coverage ratio against not secured, credit impaired exposures is c.68% (FY22: c.55%) Our plausible downside scenario was c.$1bn as set out at FY22; this has reduced due to the 1H23 charge Property market stress has continued throughout 1H23, despite the policy measures introduced. We expect market and credit conditions to remain challenging throughout 2H23 16#18Costs Operating expenses trend, $m +1% +3% 7,821 7,927 9,029 7,644 588 -716- 1,219, 63 7,871 10 2022 3022 4022 1023 2023 o/w notable items 2023 vs. 2022 (constant currency), $m +1% 262 (208) 96 67 (578) 202 7,821 209 7,871 2022 Notable items Severance costs PRP Tech spend 14 Software Innovation Other* and lease Banking 2Q23 (primarily impairment CTA) write backs * Includes $92m for the FX re-translation of 2022 costs in hyperinflationary economies Strategy 2023 results Appendix Constant currency basis: 2Q23 constant currency costs of $7.9bn, up 1% vs. 2022. Lower notable items and impairment write- backs were offset by higher technology spending, higher performance-related pay accrual and severance costs Target basis: Continue to target c.3% cost growth in FY231. Reconciliation on slide 26. On this basis: 2023 costs up 6% vs. 2022, of which the severance costs flagged at 4Q22 accounted for 2.8ppts YTD costs up 4% vs. 1H22, of which severance costs accounted for 1.4ppts Expect the acquisition of SVB UK and related international investments to increase costs by an additional 1% 17#19Capital adequacy CET1 ratio 23, % 14.7 0.8 0.0 (0.4) (0.1) (0.3) 0.0 14.7 1Q23 PAOS Dividend Change in FX accrual RWAs 1Q23 translation buyback Other 2023 differences Strategy 2023 results Appendix 116 CET1 ratio remained stable as profit generation was offset by dividend accrual and the share buyback announced at 1Q23 Dividend accrued in respect of 1H23 $6.9bn ($0.35 per share) of which $2.0bn paid out ($0.10 per share) Completed the $2bn buyback announced at 1Q23. Announced a further buyback of up to $2bn with an intention to complete this in around 3 months We anticipate the further share buyback to impact the CET1 ratio by c.25bps in 3023 CET1, $bn 125.7 6.6 (3.3) 0.0 (2.0) (0.6) 126.4 RWAs, $bn 854.4 4.1 1.0 859.5 Capital progression4 Common equity tier 1 capital, $bn Risk-weighted assets, $bn CET1 ratio, % Leverage exposure, $bn Leverage ratio, % 2023 1023 2022 126 126 860 854 852 14.7 14.7 13.6 2,498 2,486 2,484 5.8 5.8 5.5 18#20Summary 3 PBT up 92% vs. 2022, NII up $0.3bn vs. 1023 Strategy 2023 results Appendix $0.9bn ECL charge, of which $0.3bn relates China CRE. FY23 guidance of c.40bps of average loans22 unchanged On track to meet FY23 cost growth target of 3%¹ 4 Revised guidance: now expect FY23 NII >$35bn and targeting a mid-teens RoTE for 2023 and 20245 5 Completed $2bn buyback. Announced a further share buyback of up to $2bn with an intention to complete this in around 3 months. 19#21Appendix HSBC#22Group guidance summary Revised guidance NII ROTE Other Group guidance CET1 Lending Costs ECL Asia as a % of Group TE24 Dividends Strategy 2023 results Appendix Previous guidance FY23 NII ≥$34bn. NII guidance assumes the interest expense for centrally allocated funding costs associated with funding GBM's trading activities will be around the annualised 4Q22/1Q23 run-rate Targeting 12%+ from FY23 Revised guidance FY23 NII>$35bn and the revenue offset into non-NII from the central costs of funding GBM trading activities to be at least $7bn Targeting a RoOTE in the mid-teens for 2023 and 20245 Manage in 14-14.5% target range in the medium term; aim to manage range down further longer term Cautious outlook on loan growth in the short term; expect mid-single digit percentage annual loan growth in the medium to long term Targeting c.3% cost growth vs. FY23 on a target basis, full reconciliation on slide 261. The target does not include the acquisition of SVB UK and related international investments which are expected to add c.1% to Group operating expenses FY23 ECL charge of around 40bps 22; through-the-cycle planning range of 30-40bps c.50% medium to long term25 Dividend payout ratio of 50% for 2023 and 202426 21#23Key financial metrics Strategy 2023 results Appendix Reported results, $m 2023 1023 2022 Alternative performance measures, $m 2023 1Q23 2022 NII Other Income Revenue ECL Costs Associate income 9,305 8,959 6,910 Constant currency NII 9,305 8,999 6,758 7,400 11,212 5,330 Constant currency other income 7,400 11,355 5,318 16,705 20,171 12,240 Constant currency revenue 16,705 20,354 12,076 (913) (7,871) (432) (7,586) (447) Constant currency ECL (913) (438) (442) (7,949) Constant currency costs (7,871) (7,644) (7,821) 850 733 Profit before tax 8,771 12,886 792 4,636 Constant currency associate income 850 717 754 Constant currency profit before tax 8,771 12,989 4,567 Tax (1,726) (1,860) 863 Profit after tax 7,045 11,026 5,499 PAOS excl. goodwill and other intangible impairment Return on average tangible equity (annualised), % 6,650 10,345 5,244 17.1 27.4 14.0 Profit attributable to ordinary shareholders ('PAOS') 6,639 10,327 5,211 Return on average equity (annualised), % 15.9 25.5 13.0 Basic EPS, $ 0.34 0.52 0.26 Diluted EPS, $ 0.34 0.52 0.26 Constant currency net loans and advances to customers, $bn Constant currency customer accounts, $bn 960 969 1,038 1,596 1,614 1,671 DPS (in respect of the period), $ 0.10 0.10 0.09 Cost efficiency ratio, % 47.1 37.6 64.8 Net interest margin (annualised), % 1.72 1.69 1.29 ECL charge as a % of average gross loans and advances to customers, annualised (including held-for-sale balances) 0.38 (0.35) 0.18 (0.17) 0.17 (0.17) Capital, leverage and liquidity4 2023 1023 2022 Risk-weighted assets, $bn 860 854 852 CET1 ratio, % 14.7 14.7 13.6 Reported balance sheet, $bn Total assets Total capital ratio (transitional), % 19.8 19.8 18.6 2023 1023 2022 Leverage ratio, % 5.8 5.8 5.5 3,041 2,990 2,970 High-quality liquid assets (liquidity value), $bn 631 635 676 Net loans and advances to customers 960 963 1,027 Liquidity coverage ratio, % 132 132 135 Customer accounts 1,596 1,604 1,651 Quarterly average interest-earning assets 2,172 2,153 2,149 Share count, m 2023 1023 2022 Reported loan/deposit ratio, % 60.1 60.1 62.2 Basic number of ordinary shares outstanding 19,534 19,736 19,819 Ordinary shareholders' equity ('NAV') 165 171 157 Tangible ordinary shareholders' equity ('TNAV') 153 159 146 NAV per share, $ Basic number of ordinary shares outstanding and dilutive potential ordinary shares 19,679 19,903 19,949 8.44 8.65 7.94 TNAV per share, $ 7.84 8.08 7.39 Quarterly average basic number of ordinary shares outstanding 19,662 19,724 19,884 22#24Notable items (reported basis) Strategy 2023 results Appendix $m 2023 1023 4022 3022 2022 Revenue (241) 3,577 (320) (2,691) (471) o/w: Disposals, acquisitions and related costs (241) 3,562 (71) (2,378) (288) o/w: Fair value movements on financial instruments o/w: Restructuring and other related costs 15 35 (282) (171) (284) (31) (12) Costs o/w: Disposals, acquisitions and related costs o/w: Restructuring and other related costs Total (10) (61) (1,169) (691) (589) (57) (61) (9) (9) 47 - (1,160) (682) (589) (251) 3,516 (1,489) (3,382) (1,060) Memo: Notable items on a constant currency basis (251) 3,591 (1,535) (3,535) (1,036) Tax notable items: 1023 included a $0.5bn tax charge recorded on the $2.1bn reversal of impairment loss relating to the planned sale of our retail banking operations in France and the release of a $0.4bn uncertain tax provision relating to the UK 23#25Interest rate sensitivity Strategy 2023 results Appendix 1 year NII sensitivity At 30 June 2023, assumes a static balance sheet (no assumed migration from current account to time deposits), no management actions from Global Treasury and a simplified 50% pass-through The reduction in NII sensitivity to a (100)bps parallel shift in interest rates, from $(4.0)bn at FY22 to $(2.6)bn at 2Q23 is due to balance sheet evolution, increased structural interest rate hedging and model improvements Currency USD HKD GBP EUR Other $m $m $m $m $m Total $m +25bps (187) 125 140 147 325 550 -25bps 187 (132) (173) (165) +100bps (747) 471 575 -100bps 695 (556) (703) (332) 596 1,273 2,168 (657) (1,383) (2,604) (615) 5 year NII sensitivity At 30 June 2023, assumes a static balance sheet (no assumed migration from current account to time deposits), no management actions from Global Treasury and a simplified 50% pass-through +25bps -25bps +100bps -100bps $m 550 (615) (892) 2,168 3,307 (2,604) (3,909) Year 1 Year 2 Year 3 Year 4 $m 854 1,172 (1,221) 4,523 (5,310) Year 5 Total $m $m 1,409 (1,450) 5,444 (6,188) $m $m 1,595 5,580 (1,647) (5,825) 6,185 21,627 (6,936) (24,947) Revenue offset into non-NII from the central costs of funding trading income The interest expense associated with the central costs of funding trading income is fully offset by trading and fair value income reported in Corporate Centre The NII sensitivity tables incorporate changes in this interest expense relating to the central costs of funding (i.e. the expense incurred by the banking book in funding trading and fair value activities) Not included are the offsetting changes in trading income reported in Corporate Centre, adding additional interest rate sensitivity in non-NII (shown in Banking NII 19 on slide 13) At 2023, c.$130bn of net trading assets* were centrally funded, predominantly at proxy overnight and short term interest rates in our major currencies. Simplistically, a 100bps parallel shift upwards in interest rates would result in +$1.3bn in funding costs, with an offsetting benefit in Corporate Centre non-NII* of +$1.3bn and vice versa for a 100bps parallel downward shift We expect to enhance our Banking NII 19 sensitivity disclosure in due course Trading, fair value and associated net asset balances Trading and fair value income 24#26Net interest margin Quarterly NIM by key legal entity Strategy 2023 results Appendix Key rates (quarter averages), bps Source: Bloomberg * At 31 July 2023 % of 2023 2022 3022 4022 1023 2023 % of 2023 Group NII Group AIEA The Hongkong and Shanghai Banking Corporation (HBAP)* HSBC Bank plc 1.32% 1.66% 1.94% 1.83% 1.83% 45% 43% 499 512 507 500 452 445 392 400 385 368 303 283 219 0.57% 0.44% 0.50% 0.59% 0.60% 8% 22% 164 162 HSBC UK Bank plc (UK RFB) 1.77% 1.99% 2.19% 2.33% 2.49% 27% 19% 95 77 31 HSBC North America Holdings, Inc 1.05% 1.16% 1.16% 1.15% 1.01% 5% 8% 2022 3Q22 4022 1Q23 2023 3Q23 QTD* *In 1H23, c.60% of the interest expense relating to the central costs of trading income was booked in HBAP 1M HIBOR Fed effective rate BoE Bank rate 25#27Cost target basis reconciliation Strategy 2023 results Appendix $m 2023 1023 4Q22 3022 2022 1H23 Reported 7,871 7,586 8,781 7,793 7,949 15,457 1H22 16,127 FY22 32,701 Currency impact 58 248 134 (128) (595) (195) Constant currency 7,871 7,644 9,029 7,927 7,821 15,457 15,532 32,506 Notable items (10) (63) (1,219) (716) (588) (71) (1,009) (2,948) Impact of retranslating 2022 results of hyperinflationary 78 95 95 92 160 347 economies at constant currency SVB UK and related (67) (67) investments Target basis 7,794 7,581 7,888 7,306 7,325 15,319 14,683 29,905 Note: Table uses 2023 average FX rates for all quarters, 1H23 average rates for 1H22 and FY22 FY23 cost target basis: Targeting c.3% cost growth on a constant currency basis, excluding notable items and the impact of retranslating 2022 results in hyperinflationary economies at constant currency. The target also does not include the acquisition of SVB UK and related international investments which are expected to add c.1% to Group operating expenses. On this basis, the FY22 comparative is $29.9bn 26#28Wealth and Personal Banking Strategy 2023 results Appendix 2023 financial highlights Balance sheet, $bn Revenue $7.2bn 41% 848 850 845 (2022: $5.1bn) 1 35- =35= ECL $(0.3)bn (5)% 483 488 493 (2022: $(0.2)bn) 28 -29 847 Costs $(3.7)bn (5)% 815 810 (2022: $(3.5)bn) 483 460 464 PBT $3.3bn > 100% ROTE27 43.1% (2022: $1.4bn) 31.6ppts (2022: 11.5%) 2022 1Q23 2023 Customer lending Customer accounts HFS Portfolio* Revenue performance, $m Reported Wealth Balances, $bn +41% 1,650 ୮ (20)% 1,557 50 1,680 50 9,063 526 533 542* 6,985 7,217 3,929 2,050 65 -31 141 5,111 131 4,363 5,121 5,016 5,250 3,467 1,014 1,074 1,097 1,648 1,786 1,807 1,966 1,960 (4) (8) (7). (2,351) 2022 3022 4022 1Q23 2Q23 2022 1023 2023 Wealth Management Other Personal Banking France disposal Wealth deposits 28 Invested assets HFS Portfolio* 2023 vs. 2022 Revenue up $2.1bn (41%). Personal Banking up $1.8bn (51%) primarily due to higher NII. Wealth up $0.3bn (19%) due to growth across all products, particularly Life Insurance (up $0.2bn) ◆ Customer lending and accounts were both down 4%, mainly due to HFS transfers*, excl. the impact of HFS: Lending up $10bn (2%). Mortgages up $10bn ($5bn Asia, $5bn UK), unsecured lending up 7% ($3bn split between $2bn Asia, $1bn Mexico) partially offset by deleveraging in Private Banking ($4bn) Deposits down $3bn. Outflows in the UK (impact of increasing cost of living) and US partially offset by growth in Asia, Mexico and the Middle East Wealth balances up 5%. Excl. HFS impact, balances up 8% supported by NNIA of $75bn since 2022, wealth deposit growth of $15bn and favourable market level and FX impacts of $33bn 2023 vs. 1023 Revenue down $1.8bn (20%) due to $2.0bn France impairment reversal in 1Q23. Excluding this, revenue was up $0.2bn due to higher NII in Personal Banking Customer lending and accounts excl. impact of HFS*: ♦ Lending up $5bn. Mortgages up $4bn ($3bn Asia, $1bn UK) and unsecured lending up $1bn Deposits down $5bn with outflows in Asia, the UK and US Wealth balances up 2% supported by NNIA of $12bn, wealth deposit growth of $7bn and favourable market level and FX impacts of $11bn * Held-for-sale transfers relate to the agreed sale of businesses in Canada and Oman and the sale of our branch operations in Greece o/w Canada $22bn 27#29Commercial Banking Strategy 2023 results Appendix 2023 financial highlights Balance sheet, $bn 49% Revenue $5.5bn (2022: $3.7bn) Customer lending 354 ECL $(0.6)bn (94)% 350 346 (2022: $(0.3)bn) 0 26 ·27- Costs $(1.9)bn (12)%* (2022: $(1.7)bn) 354 324 319 77% PBT $3.1bn (2022: $1.8bn) ROTE29 28.8% 16.6ppts (2022: 12.2%) 2022 1Q23 Revenue performance, $m o/w SVB UK: 7.6 2Q23 7.0 +49% (18)% Customer accounts 491 497 496 0 23 24: 6,756 5,541 4,885 1,943* 4,451 588 -278: 3,708 489. [507 −511■ 516 491 474 472 335 [530 1,407 1,374 1,381 534 1,456 1,476 2,693 2,928 3,056 1,976 1,363 2022 1Q23 2022 3022 4022 1Q23 2023 o/w SVB UK: 8.7 2023 7.2 GPS GTRF 2023 vs. 2022 ♦ Revenue up $1.8bn (49%) 31 with growth across all our main legal entities, notably in Asia and the UK RFB. GPS was up $1.7bn due to higher interest rates and business repricing actions, GBM Collaboration revenue was up 10% and fees were up 8%. This was partly offset by lower C&L due to lower balances and higher funding costs Customer lending and accounts of $319bn and $472bn were down 10% and 4%, mainly due to HFS transfers, excl. which: Lending down $8bn (2%), as higher interest rates and softening economic conditions led to reduced loan demand in Hong Kong, the UK and mainland China. This was partly offset by the acquisition of SVB UK Deposits up $5bn (1%) as market-wide reductions in the UK were offset by the acquisition of SVB UK and inflows in the US Balance sheet movements also included the transfer of clients and balances from GBM to CMB in Asia 32 2023 vs. 1023 Revenue: 1023 included a $1.5bn provisional gain on the acquisition of SVB UK. Excluding this, revenue was up $0.3bn (6%), mainly in GPS due to higher interest rates and business repricing actions Customer lending down $4bn (1%) due to lower C&L balances in Hong Kong and UK RFB and the transfer of Oman balances to HFS Credit & Lending Markets products, Insurance o/w: HFS portfolio 30 and Investments and Other ◆ Customer accounts broadly stable outside the UK RFB * Costs were up $201m due to higher performance-related pay accrual, SVB UK and higher technology costs o/w $1.5bn provisional gain on acquisition of SVB UK 28#30Global Banking and Markets Strategy 2023 results Appendix Revenue of $4.1bn, up $0.3bn (8%) 31 MSS revenue of $2.2bn, down $0.2bn (8%): Global FX continued to perform well, with strong client and trading activity, despite being down YoY due to exceptional market volatility driving client flows in 2022 Securities Services growth driven by global interest rate increases Equities down due to lower client activity as a result of low market volatility Banking revenue of $2.1bn, up $0.5bn (33%): GPS up from higher global interest rate environment Credit and Lending revenue down largely due to weaker client demand and a focus on returns Capital Markets and Advisory up primarily due to higher debt capital markets volume and growth in Issuer Services from higher interest rates 2Q23 financial highlights Management view of revenue 2023 vs. 2022 Revenue $4.1bn 8% $m 2023 A2022 (2022: $3.8bn) MSS 2,205 Securities Services 635 ECL $(0.1)bn >(100)% (2022: $0.1bn) Global Debt Markets 238 (8)% 34% 5% Global FX 1,006 Costs $(2.4)bn (8)% Equities 93 (10)% (53)% (2022: $(2.2)bn) Securities Financing 252 2% XVAs (19) >(100)% PBT $1.5bn (4)% (2022: $1.6bn) Banking 2,141 33% GTRF 162 (4)% ROTE33 14.2% 2.7ppts GPS 1,122 92% (2022: 11.5%) Credit & Lending 489 (20)% Capital Markets & Revenue performance, $m 252 69% Advisory Other 116 +8% (9)% GBM Other (285) 4,448 Principal Investments 17 4,061 3,756 3,815 Other 3,411 Revenue (302) 4,061 21% (18)% (19)% (15)% 8% 2,138 1,613 1,712 2,142 1,943 Key indicators 2,384 2,310 2,559 1,958 2,205 Cost-income ratio, % (241); (207); (490) (249) (286) Gross Capital Markets and Advisory revenue34, $m 2023 A2022 60 Oppts 374 38% Customer lending 35, $bn 2022 3Q22 4Q22 1Q23 2023 Customer deposits 36, $bn 313 MSS Banking Other Assets under custody, $tn RWAs, $bn 8.7 176 (12)% (6)% 1.6% 227 (2)% 2023 vs. 1023 Revenue down $0.4bn (9%) MSS down $0.4bn (14%) vs. a strong 1Q23, largely due to Global FX as market conditions normalised ◆ Banking revenue stable. Higher NII in GPS was offset by lower Capital Markets & Advisory activity 29#31Corporate Centre 2023 financial highlights Revenue performance, $m Strategy 2023 results Appendix 2022 3022 4022 1023 2023 (189) (352) (12) 101 (20) 25 (7) (175) (2) (9) (335) (236) (195) (12) (85) (499) (595) (382) 87 (114) 350 343 288 233 207 Revenue $(114)m (77)% (2022: $(499)m) 0% Central Treasury ECL $0m (2022: $(0)m) Legacy Portfolios > 100% Costs $64m Other (2022: $(430)m) 10% Total Associates $833m (2022: $754m) > 100% PBT $783m (2022: $(175)m) Not included in Corporate Centre revenue: Markets Treasury revenue allocated to global businesses RWAs (constant currency), $bn 2023 vs. 2022 ROTE33 8.0% 0.7ppts (2022: 7.3%) Associate income detail, $m +12% (2)% 94 92 +19% 88 82 43 38 833 32 754 700 3 695 162 119 110 555 133 93 632 633 668 50 50 52 52 ..... 54 563 466 (4) 2022 3Q22 BoCom 4Q22 Saudi Awwal Bank (SAB) (43) 1Q23 2022 1023 2023 2023 Others Associates Other Revenue up $385m, primarily in Central Treasury reflecting the non-recurrence of adverse FV movements on non-qualifying hedges in 2022, FX valuation gains and the non-recurrence of losses related to the planned disposal of Russia and the disposal of our branch operations in Greece. This was partly offset by FV losses on FX hedges related to the agreed sale of our banking business in Canada RWAS up $10bn (12%), including RWAS on FX hedges related to the agreed Canada sale and higher associate RWAs 2023 vs. 1023 Revenue down $201m, reflecting adverse valuation differences in Central Treasury, adverse FV movements on FX hedges related to the agreed sale of our banking business in Canada and a 1Q23 reversal of the France impairment. This was partly offset by FX valuation gains 30#32Insurance manufacturing Strategy 2023 results Appendix Insurance manufacturing* Reported CSM liability walk, $bn Income statement, $m 1H23 1H22 Δ +17% Revenue 780 556 40% Of which: NII 155 187 (17)% (0.5) 10.6 1.3 CSM unwind 524 431 22% 9.1 0.7 ANP and NB CSM, $m +25% +44% 1,890 Onerous contracts 13 (104) >100% Net investment returns (128) 100% 1,314 599 ANP 747 NB CSM ECL (3) (4) 25% Operating expenses (270) (250) (8)% FY22 Associates 28 3 > 100% NB CSM Profit before tax 535 305 75% Other incl. CSM share of FV unwind /assumption changes 1H23 1H22 1H23 Memo: Insurance equity + CSM 16.3 14.7 11% liability (net of tax), $bn 1H23 NB CSM to VNB walk, $m Hong Kong reopening 37 1H23 highlights: 1H23 revenue of $0.8bn, up $0.2bn (40%) vs. 1H22, primarily due to higher CSM unwind, onerous contract loss reversals and higher net investment return 1H23 ANP up 44% and 1H23 new business (NB) CSM up 25%, supported by border reopening in Hong Kong Further growth in insurance distribution: c.1,400 Personal Wealth Planners in Pinnacle, expansion of agency in Singapore and the introduction of an insurance specialist model in Mexico c.260k member registrations on our digital health and wellness platforms in Hong Kong vs. c.50k at FY21 Insurance manufacturing results are presented for all global businesses 792 740 Monthly mainland visitor arrivals, '000s HK onshore ANP, $bn HK offshore ANP, $bn 6,000 (143) 195 1.7 5,000 1.4 4,000 0.6 1.2 1.1 1.0 1.0 0.4 3,000 0.9 23 0.1 0.8 0.6 2,000 1.2 1,000 0.8 0.9 0.8 1.0 0.9 1.0 0.6 0 NB CSM Non- and loss attributable component expenses Long term asset VNB 1H19 1H20 1H21 1H22 1H23 spreads 31#33Wealth and Personal Banking: Global invested assets Global reported invested assets Asia reported invested assets Strategy $bn $bn 2023 results Appendix Reported invested assets managed by AM $bn +8% +13% 1,097 503 1,014 1,015 443 470 +7% 628 585 595 384 23 46 72 310 340 137 141 151 419 411 440 311 312 341 283 284 280 393 363 372 2022 4Q22 2Q23 Retail GPB AM 3rd party distribution 2Q22 4Q22 2023 Retail GPB AM 3rd party distribution 166 184 188 2022 4Q22 2023 Asia Rest of World Global reported invested assets evolution $bn Asia reported invested assets evolution 1,097 $bn 19 34 14 29 29 1,015 17 3 27 3 3 14 470 13 GPB reported client balances 503 $bn +10% 419 382 383 311 312 341 4Q22 NNIA Net market movements FX and other 2023 4022 NNIA Net market FX and movements 2023 71 other 2022 71 4Q22 78 2Q23 Retail GPB AM 3rd party distribution Retail GPB AM 3rd party distribution GPB deposits GPB invested assets Asia refers to our primary legal entity in Asia, The Hongkong and Shanghai Banking Corporation (HBAP) 32#342Q23 vs. 1023 equity drivers Strategy 2023 results Appendix Shareholders' Tangible equity, TNAV per share, equity, $bn $bn $ Basic number of ordinary shares, millions At 31 March 2023 Profit attributable to: Ordinary shareholders38 Other equity holders Dividends FX 38 On ordinary shares On other equity instruments 190.1 159.5 8.08 19,736 6.8 7.0 0.35 6.6 7.0 0.35 0.1 (6.7) (6.6) (0.33) (6.6) (6.6) (0.33) ☐ (0.1) (1.1) (1.2) (0.06) Buyback (2.0) (2.0) (0.04) (158) Purchase of shares Cancellation of shares bought back up to 30th June 2023 (2.0) (2.0) (0.10) 0.06 (158) Actuarial gains/(losses) on defined benefit plans (0.4) (0.4) (0.02) Cash flow hedge reserves (1.8) (1.8) (0.09) Fair value movements through 'Other Comprehensive Income' (0.7) (0.7) (0.03) Of which: changes in fair value arising from changes in own credit risk Of which: Debt and Equity instruments at fair value through OCI (0.6) (0.6) (0.03) (0.1) (0.1) Other38 (0.6) (0.02) 184.2 153.2 7.84 (44) 19,534 At 30 June 2023 Average basic number of shares outstanding during 2Q23: 19,662 ◆ TNAV per share decreased to $7.84 per share, including a reduction of $0.33 per share due to dividends paid and a net reduction of $0.04 per share from the share buyback As at 30 June 2023, HSBC Holdings plc held 325,273,407 shares in treasury which were repurchased during the 2016 buy-back and were not cancelled at the time. All shares repurchased pursuant to subsequent buybacks have been cancelled. The Board intends to consider the cancellation of the treasury shares in due course 33#35Total shareholders' equity to CET1 capital 2023 total equity to CET1 capital, $m Total equity to CET1 capital walk4, $m Strategy 2023 results Appendix Total equity Non-controlling interests 191,651 Total equity (per balance sheet) 2023 191,651 1023 197,523 4022 185,197 Non-controlling interests (7,481) (7,428) (7,364) (7,481) Total shareholders' equity 184,170 190,095 177,833 Total shareholders' Additional Tier 1 (19,392) (19,392) (19,746) 184,170 equity Total ordinary shareholders' equity 164,778 170,703 158,087 Foreseeable dividend (4,887) (8,132) (4,436) Additional Tier 1 (19,392) Adjustment for insurance / SPE'S (3) (3) (3) Allowable NCI in CET1 4,127 4,192 Total ordinary shareholders' equity Foreseeable dividend 164,778 CET1 before regulatory adjustments 164,015 166,760 4,444 158,092* Prudential valuation adjustment (1,076) (1,147) (1,171) (4,887) Intangible assets (12,875) (12,593) (12,141) Deferred tax asset deduction (3,947) (4,343) (4,235) Adjustment of (3) Cash flow hedge adjustment 4,686 2,904 3,601 insurance / SPE'S Excess of expected loss (1,813) (1,618) (1,248) Own credit spread and debit valuation adjustment 290 (369) (412) Allowable NCI in CET1 4,127 Defined benefit pension fund assets (5,790) (5,948) (5,448) CET1 before 164,015 regulatory adjustments Regulatory adjustments CET1 capital (37,597) Direct and indirect holdings of CET1 instruments Other regulatory adjustments to CET1 capital (including IFRS 9 transitional adjustments when relevant) Threshold deductions (40) (40) (40) (724) (720) (220) (16,308) (17,200) (17,487) 126,418 Regulatory adjustments CET1 capital (37,597) (41,074) (38,801)* 126,418 125,686 119,291 * On adoption of IFRS 17 'Insurance Contracts', comparative data previously published under IFRS 4 'Insurance Contracts' have been restated from the 1 January 2022 transition date, with no impact on CET1 and total capital 34#36Balance sheet 2Q23 funding mix $1.6tn Deposits (1023: $1.6tn) 60% Loan to deposit ratio (1Q23: 60%) FY22 deposit mix, $bn 1,339 Strong liquidity base 132% Group liquidity coverage ratio (1Q23: 132%) Other 6% Cash $0.8tn 41% HQLA* in entities Central and 53% local government bonds 263 55 Demand Savings Time Strategy 2023 results Appendix Debt instruments measured at amortised cost, $bn 255.7 +8% 276.7 Cumulative financial assets at FVOCI reserve of $(6.5)bn vs. $(7.0)bn at FY22 Group HQLA equivalent to 50% of customer deposits Cash and cash equivalents make up over 40% of our HQLA* 4022 2Q23 Financial investments measured at amortised cost As part of our interest rate hedging strategy, we hold a portfolio of debt instruments measured at amortised cost classified as hold-to- collect. These exclude insurance assets At 30 June 2023, there was a cumulative unrealised loss of $2.8bn related to this portfolio, excluding insurance assets. During 1H23 there was a $0.9bn deterioration in the unrealised loss balance FY22 average *HQLA is the period end value before the application of the Group adjustment for restrictions on the transfer of entity liquidity around the Group 1H23 HQLA shown on this slide differs from the HSBC Holdings plc Interim Report 2023 of $631bn, which is a 12 month average after the impact of the above restrictions 35#37Balance sheet - customer lending Balances by global business, $bn Balances by entity Total 1,038 1,026 1,020 Asia (HBAP) $465bn Growth since 1Q23 $(0)bn (0)% HFS 57 60 o/w: Hong Kong $289bn $(3)bn (1)% 1,038 969 960 UK RFB (HBUK) $267bn $1bn 0% GBM 200 184 176 HSBC Bank plc $112bn (HBEU) $(7)bn (6)% CMB 354 324 319 USA (HNAH) $53bn $(1)bn (2)% Mexico (HBMX) $25bn Strategy 2023 results Appendix $1bn 3% $0bn (0)% Customer lending of $960bn, down $9bn (1%) vs. 1023, including the impact of $4bn loans moved to held-for-sale (HFS) in Oman and the US WPB up $4bn (1%) due primarily to growth in Hong Kong and the UK CMB down $5bn (2%), primarily due to softer loan demand in Hong Kong and the UK as a result of rising interest rates, and the transfer of $2bn loans to HFS GBM down $8bn (4%), primarily due to softer loan demand in Europe as a result of higher interest rates Cautious outlook on loan growth in the short term; expect mid-single digit percentage annual loan growth in the medium to long term WPB 483 460 464 HSBC Middle $19bn East (HBME) CC- 1 0 0 $(2)bn Other21 $19bn $(3)bn 2022 1023 2023 (10)% $(9)bn o/w: Total $960bn $(3)bn (1)% Oman HFS 36#38Balance sheet - customer accounts Strategy 2023 results Appendix Balances by global business, $bn Balances by entity Growth since 1Q23 Total 1,673 1,677 1,662 Asia (HBAP) $775bn $2bn 0% HFS 63 66 -2- o/w: Hong Kong $530bn $(5)bn (1)% 1,671 1,614 1,596 $(8)bn UK RFB (HBUK) $346bn (2)% GBM 332 324 313 HSBC Bank plc $(5)bn $282bn (HBEU) (2)% CMB 491 474 472 $(2)bn USA (HNAH) $99bn (2)% $(0)bn Mexico (HBMX) $28bn (1)% $0bn 1% Customer accounts of $1,596bn, down $18bn (1%) vs. 1Q23, including the impact of $5bn of deposits in Oman moved to held-for- sale (HFS) WPB down $5bn with modest reductions in Asia, the UK and the US CMB down $2bn, including the impact of $2bn deposits in Oman moved to HFS GBM down $10bn (3%) as customers in Europe used excess deposits to pay down loan balances Average GPS balances of $727bn were down $7bn (1%) vs. 1Q23 WPB 847 815 810 HSBC Middle $31bn East (HBME) CC 1 1 1 Other21 $33bn 2022 1Q23 2023 $(5)bn (13)% $(5)bn $(18)bn o/w: Total $1,596bn $(5)bn (1)% Oman HFS 37 32#39Hong Kong loans and advances Hong Kong loans and advances Strategy 2023 results Appendix 8% 10% $318bn 49% 33% Corporate Mortgages Other retail Banks Total gross loans and advances to customers and banks of $318bn (2022: $332bn) by booking location (wholesale: $181bn; personal: $137bn) 2023 average LTV on new retail mortgage lending was 67% (2022: 59%); average LTV for the overall retail mortgage portfolio was 54% (2022: 50%) Gross loans and advances to customers and banks by IFRS 9 stage, $bn Corporate lending by sector, $bn 2023 2022 Wholesale credit quality 2% L&A ECL allowance ECL % L&A L&A ECL allowance ECL % L&A 30.7 3% CRR 1-3 Stage 1 282.0 0.2 0.1% 297.7 0.1 0.0% 49.3 31% CRR 4-6 $181bn Stage 2 29.6 0.8 2.5% 29.8 0.7 2.3% 5.2 CRR 7-8 64% Stage 3* 5.9 2.6 44.0% 4.1 1.4 34.3% 8.4 $156bn Impaired POCI 0.2 0.1 52.2% 0.0 0.0 45.0% Total 317.7 3.6 331.6 2.2 15.9 Personal credit quality Stage 2 loans as a % of total L&As to customers and banks 23.6 22.8 5% 0%. Band 1-3 20% 18% 12% 15% 14% 14% Band 4-6 Wholesale $137bn 10% Real estate activities Wholesale and retail Transporting and storage Power/utility supply Band 7 4% 4% 3% 4% 4% Personal trade NBFI Other 0% 95% 2022 3022 4Q22 1Q23 2023 Manufacturing Stage 3 loans includes c. $3.3bn of exposure relating to mainland China CRE 38 88#40Mainland China risk exposure Strategy 2023 results Appendix Mainland China risk exposure, $bn 165 $174bn Wholesale Mortgages Credit cards 178.4 176.8 and other 2.133.9 2.2 40.1 164.7 2.035.6 Mainland China risk exposure is defined as lending booked in mainland China plus wholesale lending booked offshore where the ultimate parent and beneficial owner is in mainland China Mainland China risk exposure (including Sovereign and public sector, Banks and NBFI and Corporates) of $174bn comprising: Wholesale $165bn* (of which 50% is onshore); Retail: $9bn. These amounts exclude MSS financing Gross loans and advances to customers of $46bn booked in mainland China (Wholesale: $37bn; Retail $9bn) Wholesale lending analysis, $bn Corporate lending by sector, $bn Transportation Automotive Consumer Goods consumer 36.1 34.0 34.0 & Retail 4.1 18 106.2 100.6 93.1 Metals & Mining 4.2 3.6 Other Sectors 4.8 32.5 2022 4Q22 2023 Public Utilities Reported gross loans and advances Reported customer 5.2 NBFI to customers, $bn deposits, $bn Sovereign & public sector Banks Corporates $93.1bn Construction, 11.3 Wholesale lending by counterparty type and credit Materials 53 56 57 50 54 quality, $bn & Engineering 46 13.1 14.3 Customer Satisfact Strong Good risk rating Sub- Credit ory standard impaired Total IT & Electronics Real Estate 39 NBFI 0 2 0 0 2 Banks 34 1 0 0 36 Sovereign & c.15% of corporate lending is to foreign-owned enterprises 34 0 0 0 34 public sector Corporates 34 28 24 4 4 93 Total 102 31 24 4 4 165 ◆ c.40% of lending is to state-owned enterprises c.45% of lending is to private sector owned enterprises 2022 4022 2023 2022 4022 2023 * Wholesale drawn risk exposure of $165bn includes on balance sheet lending as well as issued off balance sheet exposures, excludes unutilised commitments 39#41Global CRE exposures Commercial real estate exposure, $m40 HBAP o/w HK HBUK HBEU HNAH HBMX HBME Other Total Gross loans and advances 59,560 44,068 14,805 5,045 4,643 976 1,604 928 87,561 o/w stage 1 42,242 30,218 12,827 4,181 1,918 877 1,118 o/w stage 2 o/w stage 3* Stage 3 as a % of loans 3,730 13,588 10,447 1,385 3,403 593 650 2,662 65 313 214 63 34 173 839 64,002 44 18,707 45 4,852 6% 8% 4% 4% 1% 3% 11% 5% 6% FY22 LTV analysis (fully collateralised exposure)41 Hong Kong *Includes POCI UK 28% 69% 62% 2% 25% 4% 4% 6% <50% 51-75% 76-90% 91-100% Strategy 2023 results Appendix Actively reducing exposure in the USA; exposure of $4.6bn plus $0.5bn classified as held-for-sale In more developed markets such as the UK and Hong Kong, our exposure mainly comprises the financing of investment assets, the redevelopment of existing stock and the augmentation of both commercial and residential markets to support economic and population growth Hong Kong exposure includes exposure to mainland China CRE of $8.1bn, which accounts for $3.3bn of the $3.4bn stage 3 exposure In less developed commercial real estate markets, our exposures comprise lending for development assets on relatively short tenors with a particular focus on supporting larger, better capitalised developers involved in residential construction or assets supporting economic expansion 40 40#42Hong Kong 1H23 financial performance $m 1H23 1H22 NII 4,955 3,036 Non-NII Revenue A 63% 5,298 3,230 ▲ 64% 10,253 6,266 64% ECL (494) (418) (18)% Costs (3,750) (3,642) Associates 16 PBT 6,025 (1) 2,207 (3)% > 100% >100% Balance sheet, $bn 544 540 530 Strategy 2023 results Appendix ♦ Revenue up 64% vs. 1H22. Non-NII up $2.1bn, including $1.9bn offset into non-NII from the central costs of funding GBM trading activity and higher life insurance manufacturing revenue Muted balance sheet in context of higher USD rates; customer lending down $4bn vs. $4Q22 (WPB up $2bn, wholesale down $5bn), customer deposits down $10bn #1 retail NPS amongst major banks42 c.2x new-to-bank non- resident Chinese onboarding vs. 201944 D #1 in card spend; market share 48.4%, up 1.4ppts vs. 402243 ANP share 19.1%; NBP share of 30.5%45 #1 in trade finance; 22.3% market share46 310 293 289 2022 Customer loans Time deposits as a % of customer accounts 134 35 33 4022 2023 179 18 22 22 25 25 27 HE Customer accounts 2022 HSBC Hong Kong 4022 1023 2Q23 Hang Seng Bank Total ◆ CASAS are 73% of customer accounts ◆ Time deposits are 27% of customer accounts, up 2ppts vs. 1023 Compared to 1Q23, HSBC Hong Kong up 3ppts; Hang Seng Bank down 2ppts Time deposits represent 54% of system deposits, up 16ppts vs. May-2246 41#43UK ring-fenced bank Strategy 2023 results Appendix 1H23 financial performance WPB CMB Revenue £6.0bn 67% (1H22: £3.6bn) 24% Personal gross mortgage balances, £bn 90+ day mortgages delinquency Wholesale gross customer loans, £bn 125.5 126.4 trend 47, % 122.5 o/w: WPB £2.4bn 0.23 (1H22: £2.0bn) 0.25 o/w: CMB £3.5bn 98% 0.20 (1H22: £1.6bn) 1H22 FY22 1H23 ECL £(0.3)bn >(100)% (1H22: £(0.0)bn) 2% 0.15 0.17 +6%* 0.20 0.17 71.6 67.2 67.4 c.£13bn c.£28bn c.£11bn 0.10 Costs £(1.8)bn PBT (1H22: £(1.8)bn) >100% YTD gross lending 01/20 01/21 01/22 01/23 £3.9bn (1H22: £1.8bn) o/w: WPB £1.2bn 89% 7.8% mortgage stock market share 48; gross new lending share of 9.7% 49 Buy-to-let mortgages of £3.9bn, up £0.1bn vs. FY22 (1H22: £0.7bn) o/w: CMB £2.6bn >100% Customer loans Reported RWAS (1H22: £1.2bn) 3% Mortgages on a standard variable rate of £2.6bn Interest-only mortgages of £18.8bn 50 £209.6bn £99.1bn (FY22: £204.1bn) 7% (FY22: £92.4bn) New originations average LTV of 64%; average portfolio LTV of 52% ◆ Mortgage delinquencies remain low in absolute terms 1H22 FY22 1H23 Revenue up £2.4bn. WPB up £0.5bn (24%) vs. 1H22 and CMB up £2.0bn (>100%), including the £1.2bn provisional gain on the acquisition of SVB UK ◆ ECL up £0.3bn, primarily in CMB, split between stage 1-2 and stage 3 charges Costs down 2%, primarily due to the end of our restructuring programme, offset by technology spending, wage inflation and costs associated with HSBC Innovation Banking Personal gross unsecured lending balances, £bn Credit cards 90-179 day delinquency trend 47, % 0.89 1.0 7.5 7.7 7.9 6.1 5.4 5.8 0.5 0.57 Credit cards 1H22 FY22 Other personal lending 1H23 0.0 01/20 Credit card balances down £0.3bn vs. 1H22. Excluding the roll-off from the John Lewis Portfolio, balances up c.£0.8bn 01/21 01/22 01/23 Customers continue to show financial resilience, card delinquencies remain below pre-pandemic levels with only modest increases vs. the floor in 2022 0.41 Gross customer loans up ₤4.2bn, including loans acquired from SVB UK Continued strength in transaction banking: Receivables Finance Turnover market share of 27.8%, up 0.8ppts vs. FY22 GPS revenue up +118% vs. 1H22, in part supported by 12% fee income growth 42#44* Net of deferred tax of $501m EPS excluding material notable items reconciliation Strategy 2023 results Appendix $m PAOS 2023 1023 2022 1H23 6,639 10,327 5,211 16,966 Impact of acquisition of SVB UK 4 (1,511) (1,507) Reversal of impairment loss relating to France (1,629)* (1,629)* Impact of agreed Canada sale 54 (108) (54) Recognition of a deferred tax asset from (2,082) historical tax losses in HSBC Holdings PAOS excluding material notable items 6,697 7,079 3,129 13,776 Basic number of ordinary shares (m) 19,662 19,724 19,884 19,693 Basic EPS 0.34 0.52 0.26 0.86 Basic EPS excluding material notable items 0.34 0.36 0.16 0.70 43 33#45Legal entity financials Reported PBT by legal entity, $m Strategy 2023 results Appendix Group 1H23 profit of $21.7bn 1H23 2023 1023 2022 HSBC UK Bank plc (HBUK) 4,791 1,660 3,131 1,100 HSBC Bank plc (HBEU) 3,498 784 2,714 275 The Hongkong and Shanghai Banking 10,917 5,068 5,849 2,969 Corporation Limited (HBAP) Asia HSBC Bank Middle East Limited 673 296 377 196 (HBME) $10.9bn PBT, o/w $6bn in Hong Kong, c.$5bn outside Hong Kong c.$2bn mainland China c.$0.7bn Singapore HSBC Bank plc $3.5bn PBT, incl. $2.1bn from reversal of France impairment HSBC North America Holdings Inc. 701 394 307 114 (HNAH) c.$0.6bn India HSBC Bank Canada (HBCA) 475 236 239 154 Mexico $0.4bn PBT Grupo Financiero HSBC, S.A. de C.V. 436 221 215 126 (HBMX) $4.8bn PBT, incl. Other trading entities21 1,282 789 493 270 UK RFB - of which: other Middle East $1.5bn SVB UK provisional acquisition gain entities (Oman, Türkiye, Egypt, 420 281 139 55 Saudi Arabia) of which: Saudi Awwal Bank Holding companies, shared service centres and intra-group eliminations Total 272 162 110 119 USA $0.7bn PBT (1,116) (677) (439) (568) Middle East51 $1.3bn PBT 21,657 8,771 12,886 4,636 44#46Glossary Strategy 2023 results Appendix AIEA AM ANP Banking NII BoCom Bps CET1 Corporate Centre Average interest earning assets Asset management Annualised new business premiums Banking net interest income is defined as Group net interest income after deducting: (1) the internal cost to fund trading and fair value net assets for which associated revenue is reported in 'Net income from financial instruments held for trading or managed on a fair value basis', also referred to as 'trading and fair value income'. These funding costs reflect proxy overnight or term interest rates as applied by internal funds transfer pricing; (2) the funding cost of foreign exchange swaps in Markets Treasury, where an offsetting income or loss is recorded in trading and fair value income. These instruments are used to manage foreign currency deployment and funding in our entities; (3) third-party net interest income in our insurance business 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 HFS HKSAR HOLA IFRS IFRS 4 Held-for-sale Hong Kong Special Administrative Region High-quality liquid assets International Financial Reporting Standard IFRS 4 'Insurance Contracts' IFRS 17 LTV IFRS 17 'Insurance Contracts' Loan to value MSS NAV Markets and Securities Services Net asset value NBFI NBP Non-bank financial institution New business premium NCI Non-controlling interests (CC) Corporate Centre comprises Central Treasury, our legacy businesses, interests in our associates and joint ventures and central stewardship costs NII Net interest income CMB Commercial Banking, a global business NIM Net interest margin CSM CRE Contractual Service Margin, a component of the carrying amount of a group of insurance contract assets or liabilities which represents the unearned profit which the Group will recognise as it provides insurance contract services under the insurance contracts in the Group Commercial Real Estate NNIA Net new invested assets PAOS PBT Profit attributable to ordinary shareholders Profit before tax DPS ECL EPS FVOCI GBM GPS Group GSSS GTRF Dividend per share 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 Earnings per share Fair value through other comprehensive income Global Banking and Markets, a global business Global Payments Solutions (formerly GLCM: Global Liquidity and Cash Management) HSBC Holdings plc and its subsidiary undertakings Green, social, sustainability and sustainability-linked Global Trade and Receivables Finance POCI Ppt PRP SAB SVB UK ROTE RWA TNAV UK RFB / RFB WPB XVAS Purchased originated credit impaired Percentage points Performance related pay Saudi Awwal Bank, an associate of HSBC Silicon Valley Bank UK Return on average tangible equity Risk-weighted asset Tangible net asset value HSBC UK, the UK ring-fenced bank, established July 2018 as part of ring fenced bank legislation Wealth and Personal Banking, a global business Credit and Funding Valuation Adjustments 445#47Footnotes Strategy 2023 results Appendix 1. 234 5. 6. 7. 8. 9. Our cost target reflects costs on constant currency, excluding notable items and the effect of re-translating prior periods in hyperinflationary economies. The target also excludes costs associated with our acquisition of SVB UK 17. and related international investments. See reconciliation on slide 26 Includes a provisional gain on acquisition of SVB UK Includes the reversal of France impairment Unless otherwise stated, regulatory capital ratios and requirements are on a reported basis, and are based on the transitional arrangements of the Capital Requirements Regulation in force at the time. Leverage metrics exclude central bank claims in accordance with the Prudential Regulation Authority's ('PRA') UK leverage framework. References to EU regulations and directives (including technical standards) should, as applicable, be read as references to the UK's version of such regulation or directive, as onshored into UK law under the European Union (Withdrawal) Act 2018, and as may be subsequently amended under UK law 18. YTD 2023 Amount of software releases for a notional team of 10 people on a bank wide basis The volume of sustainable finance and investments 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); Green, Social, Sustainability and Sustainability Linked labelled bonds that align to the International Capital Markets Association (ICMA) principles. Capital markets/advisory volumes are recorded as HSBC's proportional bookrunner value. GSSS market share sourced from Dealogic. Apportioned volume represents the portion of deal volume assigned to HSBC in deals where HSBC is marked as a lender. Market shares exclude self-mandated deals 19. Banking NII is defined as Group NII excluding the central costs of funding trading and fair value income and third party insurance NII. For full analysis, please see HSBC Holdings plc Interim Report ROTE target is subject to the current market-implied path for global policy rates. Excludes the impact of material 20. The centrally allocated funding costs associated with funding net income from financial instruments held for acquisitions and disposals Client business differs from reported revenue as it relates to certain client specific income, and excludes certain products (including Principal Investments, GBM "other" and asset management), Group allocations, recoveries and other non-client related and portfolio level revenue. It also excludes Hang Seng. GBM client business includes an estimation of client-specific day one trade specific revenue from MSS products, which excludes ongoing mark-to-market revenue and portfolio level revenue such as hedging. Cross-border client business represents the income earned from a client's entity domiciled in a different geography than where the client group's global relationship is managed. WPB international customers comprises customers who are either multi-country, non-resident or resident foreigners within our International markets in the UK, Hong Kong, Canada, the US, India, Singapore, Malaysia, UAE, Australia, mainland China and CIIOM. Multi-country are those customers who bank with HSBC in more than one market; Non-Resident customers are those whose address is different from the market we bank them in; Resident Foreigners are customers whose nationality, or country of birth is different to the market we bank them in. Note, customers may be counted more than once when banked in multiple markets Multiple as of May YTD New to the bank customers: May YTD 2022 vs. May YTD 2023 10. GFX in GBM management view of income and GFX in CMB from cross sale of FX to CMB clients includes within 'Markets products, Insurance and Investments and Other'. GFX includes our emerging markets business 11. Regulatory approvals received for insurance broker branches in Shanghai, Guangdong and Beijing 12. GBM and WPB: Includes GM products to WPB customers 13. Between CMB and GBM: Includes Global Markets products to CMB customers and Global Banking products to CMB Customers trading or managed on a fair value basis results in an interest expense to Group NII which is fully offset by non- NII which is reported in Corporate Centre 21. Including "of which Other Middle East Entities (Oman, Turkiye, Egypt and Saudi Arabia)" which do not consolidate into HSBC Bank Middle East Limited 22. Including held-for-sale balances 23. The CET1 ratio itemised movement presented on the graph includes the impact of threshold deductions, whereas the CET1 movement break-down in $bn excludes the impact of threshold deductions 24. Based on tangible equity ('TE') of the Group's major legal entities excluding associates, holding companies and consolidation adjustments. Asia refers to The Hongkong and Shanghai Banking Corporation (HBAP) 25. Medium term is defined as 3-4 years from 1 January 2020; long term is defined as 5-6 years from 1 January 2020 26. In determining our dividend payout ratio we will exclude material notable items (including the agreed sale of our banking business in Canada) from reported earnings per share 27. ROTE (YTD annualised) for 2Q23 includes a 10.5 percentage point favourable impact of the reversal of the impairment losses relating to the planned sale of our retail banking operations in France 28. 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 29. ROTE (YTD annualised) for 2Q23 included a 6.2 percentage point favourable impact of the provisional gain on the acquisition of SVB UK 30. CMB HFS includes balances relating to Canada, Oman and US CRE 31. Comparative data in 2022 has been re-presented to reflect the transfer of a portfolio of Global Banking customers in Latin America from GBM to CMB in the first quarter of 2023 32. Balance sheet reductions 2023 vs. 2Q22 were partly offset by transfer of GBM clients into CMB in Australia and Indonesia ($3.4bn loans, $4.3bn deposits) 14. Difference in technology cost growth on a reported and target basis partially driven by non-inclusion of CTA spend in 1H22 on a target basis. Technology spending includes tech spend in the global business lines 15. % of WPB customers who have logged into a HSBC Mobile App at least once in the last 30 days; May YTD 2022 33. vs. May YTD 2023. The number disclosed at 1H22 results was 46.2% which related to June 2022 YTD 16. % of CMB customers who are active on Internet Banking Channels in the last 3 months; May YTD 2022 vs. May ROTE is YTD annualised 34. Includes revenue shared with Markets and Securities Services and CMB 46 46#48Footnotes Strategy 2023 results Appendix 35. Customer lending shown is as reported in loans and advances to external customers and does not include lending to financial institutions 36. Between 4Q22 and 1Q23, $4.3bn deposits were transferred from GBM to CMB in Australia and Indonesia. At 2023, c. $5bn GBM deposits were in held-for-sale relating to Canada 37. Source: Insurance Authority and Hong Kong Tourism Board 38. Differences between shareholders' equity and tangible equity drivers primarily reflect goodwill and other intangible impairment and amortisation expense within 'Profit Attributable to Ordinary shareholders', FX on goodwill and intangibles within 'FX', and intangible additions and other movements within 'Other' 39. 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 40. Based on the loan purpose for on balance sheet exposures only 41. This disclosure is updated on an annual basis and is correct for FY22. Figures are based on the industry sector of the obligor / borrower including both on and off balance sheet exposures. Total for Hong Kong $36.2bn, UK $12.7bn 42. For HSBC Hong Kong 1H23. Peers include Citibank, Standard Chartered, Bank of China (Hong Kong), DBS, China Construction Bank (CCB), BEA / Bank of East Asia 43. Source: HKMA. Statistics of Payment Cards issued in Hong Kong, 1023 44. Internal MI based on the daily average of walk-in acquisitions for new-to-bank non-resident Chinese customers. Data compared is 2023 vs. 2019 45. Source: Hong Kong Insurance Authority 1Q23. NBP is a measure of new business written in the period, comprising annualised new business regular premiums plus new business single premiums. ANP is a measure of new business written in the period, comprising annualised new business regular premiums plus 10% of new business single premiums. Our difference in market share is largely due to HSBC underwriting more single premium policies 46. Data as at May 2023. Source: Hong Kong Monetary Authority 47. Excludes Private Bank 48. As at May 2023. Source: Bank of England. 49. Share for April and May 2023. Source: Bank of England 50. Includes offset mortgages in first direct, endowment mortgages and other products 51. Based on a regional view which includes the results of all the legal entities operating in the Middle East, North Africa and Türkiye, including our share of the results of Saudi Awwal Bank 47#49Disclaimer Important information Strategy 2023 results Appendix 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, 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 or economic conditions, regulatory changes, increased volatility in interest rates and inflation levels and other macroeconomic risks, geopolitical tensions such as the Russia-Ukraine war 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 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, ambitions, prospects or returns contained herein. Additional detailed information concerning important factors, including but not limited to ESG related 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 2022 filed with the Securities and Exchange Commission (the "SEC") on Form 20-F on 22 February 2023 (the "2022 Form 20-F"), our 1Q 2023 Earnings Release furnished with the SEC on Form 6-K on 2 May 2023 (the "1Q 2023 Earnings Release") and our Interim Financial Report for the six months ended 30 June 2023, which we expect to furnish with the SEC on Form 6-K on 1 August 2023 (the "2023 Interim Report"). 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 a "constant currency" basis which is computed by adjusting comparative period reported results for the effects of foreign currency translation differences, which distort period-on-period comparisons. Reconciliations between Alternative Performance Measures and the most directly comparable measures under IFRS are provided in our 1Q 2023 Earnings Release and our 2023 Interim Report, when filed, which is available at www.hsbc.com. Information in this Presentation was prepared as at 1 August 2023. 48 42#50Empty