#1HSBC Holdings plc 4022 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 4Q22 results Appendix We have made good progress but there's so much more we can achieve Transformation journey Delivery in 2022 Growth and returns ◆ First phase of our strategy execution. complete Improved financial performance ◆ Strong foundation Good set of results ◆ Revenue growth Strong cost discipline Enhanced returns Value from international connectivity and customer centricity ◆ Multiple growth engines. Strong capital position Drive value creation A reconciliation of reported results to adjusted results can be found on slide 36, where FY22 reported PBT of $17.5bn is reconciled to adjusted PBT of $19.7bn. The remainder of the presentation unless otherwise stated, is presented on an adjusted basis. Figures throughout this presentation may be subject to rounding adjustments and therefore may not sum precisely to totals given in charts, tables or commentary 3#5Transformation journey Our transformation journey: Six components International connectivity Grown and protected our market leading position in international connectivity Portfolio repositioning Strategy 4022 results Appendix Whilst repositioning unprofitable and non-strategic portfolios, particularly in US and Europe Broad base of profit generation ◆ Which has resulted in an internationally connected client proposition underpinned by a broad base of geographically diverse profit generation Cost Supported by strong cost discipline, evidenced by an improving cost efficiency ratio discipline Dividend policy Supported by a sustainable dividend policy with strong capital and liquidity Platform for growth Resulting in a strong platform for growth and returns ◆ Upon which we will build new value creation opportunities St 4#6Transformation journey Strategy 4Q22 results Appendix International connectivity: We continue to maintain our market-leading position... Leading positions in Trade, Payments and FX 1 st Trade Finance globally1 Top 3 Processor of SWIFT payments² (>$600tn payments processed in FY22*) 3rd FX globally (excl. Commodities)¹ International connectivity is core to who we serve ~45% of wholesale client business is cross-border³ 6m (+7% YoY growth) WPB clients are international4 ~2x WPB international clients revenue vs. domestic clients5 * Total payments LO 5#7Transformation journey Strategy 4Q22 results Appendix International connectivity: ...and drive growth in revenue and market share Growth in revenue within payments franchise Global Payments Solutions (GPS) revenue, $bn 8.4 CAGR. +6% 10.0 2019 2022 Growth in our trade business Strong momentum within FX Global Trade and Receivables Finance revenue, $bn Global Foreign Exchange (Wholesale) revenue, $bn 2.5 2019 CAGR +5% 2.8 2022 3.7 CAGR +12% 5.1 2019 2022 Recorded Wholesale Transaction Banking revenue of $20.0bn, +7% CAGR since 2019 6#8Transformation journey Strategy 4Q22 results Appendix Portfolio repositioned: Exited markets and reduced RWAs while reallocating capital towards higher growth and more profitable opportunities RWA saves in excess of target Capital reallocation to Asia $bn Asia as a % of Group tangible equity⁹, % 24 128 43. Target: >110 2019 61 2020 2021 43% Invested in bolt-on acquisitions 2022 2020-22 AXA Singapore 2022 47% Reshaped portfolio with exits US mass market retail Planned sale of Canada banking business Planned sale of France retail Planned sale of Russia and Greece operations 4th largest health insurer in Singapore post acquisition 10 L&T Investment Management 14th largest fund house in India post acquisition 11 HSBC Life China Increased stake from 50% to 100% HSBC Qianhai Increased stake from 51% to 90% 7#9Transformation journey Strategy 4Q22 results Appendix Broad base of profit generation: We have multiple engines of growth and profitability Hong Kong $6.8bn PBT; (44)% vs. 2019 #1 market share in deposits 12, insurance 13 UK $5.0bn PBT; ◆ #1 Trade Finance Bank 14; 26.9% receivables finance market share23 ◆ #1 Trade Finance Bank 14 (UK RFB) +78% vs. 2019 ◆ 7.7% (stock) / 8.9% (gross) market share in mortgages24 Mainland China $1.0bn PBT excl. BoCom; +13% vs. 2019 #1 foreign bank by revenue 15 c.1.3k Pinnacle wealth planners Europe (NRFB) $2.1bn PBT; +181% vs. 2019 c.35% of Wholesale client business booked outside of Europe (excl. UK RFB)³ ◆ Top 3 in EMEA ECM22; #1 in IPO 22 Asia (excluding Hong Kong India, ($0.9n PBT17; +36% vs. 2019) ◆ Facilitate 9% of India's exports 18 ◆ Facilitate 9% of traded FX 19 $4.2bn PBT16: and mainland China) +23% vs. 2019 South East Asia (SEA), ($0.8bn PBT in Singapore; +69% vs. 2019) US +64% vs. 2019 PBT >$100m in 5 out of 6 SEA20 markets ◆ Best Cash Management and Trade Finance bank21 Middle East $1.8bn PBT; +20% vs. 2019 #1 in Capital Markets (DCM, ECM, Syndicated Loans) 22 ◆ #1 underwriter in GSSS bonds22 Red PBT figures relate to FY22 $1.0bn PBT; c.65% of wholesale client business booked outside of the US³ #1 Trade Finance Bank¹4 $0.7bn PBT; Mexico +9% vs. 2019 ◆18.0% ROTE25 8.5% WPB loans market share26 c.60% of WPB client acquisition through Wholesale to Personal referrals 27; referrals up 200k net 8#10Transformation journey Strategy 4022 results Appendix Cost management: We have maintained cost discipline and improved operational efficiency Managed costs whilst increasing tech spend 2019-22 adjusted cost movements, % Global businesses 28 Technology29 Operations 30 (19)% Other31 Total costs excl. UK bank levy CTA programme (2020-22) (3)% (3)% (0)% Further c.$1bn of cost saves are expected to flow through in FY23 Spend $6.5bn Saves $5.6bn Achieved improved operational efficiency Adjusted cost efficiency ratio % 2019 2022 59.2% 55.0% Office real estate sq. ft, m (37)% +19% 18.7 11.8 2022 Ambition 2019 Branches globally # (21)% 3,224 2,563 2019 2022 Ambition Operations FTE32 '000s (11)% 31.4 28.1 2019 2022 Ambition 9#11Transformation journey Strategy 4Q22 results Appendix Building platform for growth: Leveraging our balance sheet growth and driving fee income revenue streams... Balance sheet growth Deposits $bn Building our wealth franchise Wealth revenue Global, $bn CAGR +4% 1,570 1,380 2019 2022 Assets $bn CAGR +5% $116bn 2,967 2,598 Held-for-sale33 2019 2022 Insurance Total Wealth revenue 7.7 8.1 Insurance manufacturing market -0.1 impacts (1.0) CAGR +9% 9.1 Wealth revenue 7.6 (excl. insurance manufacturing market impacts) 2020 2022 Hong Kong market share 34, % 17.5 +7ppts 24.7 2019 2022 10#12Transformation journey Strategy 4Q22 results Building platform for growth: ...while investing in technology to scale-up our digital propositions and launch new propositions Growth in technology spend 29 Scaling up our digital propositions Launched new propositions $bn, P&L basis +19% 6.1 5.6 5.3 5.1 2019 2020 2021 Tech spend % of total Group adjusted operating expenses29 2022 16% 17% 19% 20% Appendix Mobile X; global multi-market mobile platform Present in 24 markets with around 13m active customers HSBC Orion Launched proprietary tokenisation platform to issue digital bonds based on distributed ledger technology HSBC Kinetic; digital business banking mobile channel for SMEs in the UK Now with c.53k customers International Credit Launched in Singapore: customers can gain access to credit in a new country based on credit history in home country Global Wallet; cloud enabled digital wallet Now in six markets (UK, SG, MY, US, HK, CA) and transaction turnover of over $3bn Embedded Banking Launched an industry-leading native bank account service with Oracle Netsuite Enterprise Resource Planning Global Money; multi-market mobile proposition to manage, spend, send and receive in major currencies Live in eight markets and enabled for 19 currencies Pentagreen Launched a sustainable infrastructure debt financing platform, in a joint venture with Temasek, based in South East Asia 11#13Delivery in 2022 Summary of our performance in 2022 (vs. 2021) Strategy 4022 results Appendix ☐☐ Reported PBT of $17.5bn, down $1.4bn (7%); adjusted PBT of $24.0bn, up $3.4bn (17%) Adjusted revenue of $55.3bn, up $8.3bn (18%). NII of $32.6bn, up $7.7bn (31%). Non-NII of $22.7bn, up $0.6bn (3%) Adjusted costs contained to c.1%, adjusted cost efficiency ratio of 55.0% ECL charge of $3.6bn, with $1.3bn associated with our mainland China commercial real estate (CRE) portfolio Dividend per share of $0.32; payout ratio of 44% CET1 ratio 35 of 14.2% Reported ROTE of 9.9% 36; ROTE excluding significant items of 11.6% 12#14Delivery in 2022 Focus on our strengths - CMB Revenue growth driven by Transaction Banking Revenue, $bn Trade 12.5 GPS Credit & Lending Markets With growth momentum in fee income Fee income, $bn +29% 16.2 14% 3.4 104% 1% +8% 3.7 products and other (7)% 2021 2022 2021 2022 Strategy 4022 results Appendix Strong growth delivered across all regions Geographical revenue breakdown, $bn Hong Kong 12.5 +29% 16.2 36% 27% HSBC UK 35% Asia excl. Hong Kong MENA Rest of World 2021 2022 17% 24% 13#15Delivery in 2022 Focus on our strengths - WPB Strategy 4022 results Appendix Double-digit revenue growth across Wealth and Personal banking Revenue, $bn Continued traction in NNIA following 21% growth in 2021 Net new invested assets, $bn All regions delivered robust growth Geographical revenue breakdown, $bn +16% +25% Total Revenue 21.0 24.4 80 Insurance manufacturing- -0.5 64 21 (1.0) market impacts Rest of World 28 25.4 20.5 59 Personal 16.3 banking & Other 12.2 Asia 36 Hong Kong Wealth 8.3 9.1 2021 2022 2021 2022 Lending balances growth Lending balances, $bn +3% 463 476 Held-for- 2 52 sale33 461 424 2021 2022 Strong growth in Asia insurance VNB Asia insurance VNB, $m 909 +24% 1,130 2021 2022 21.0 +16% YoY, % 24.4 9% 19% Asia ex. Hong Kong 28% HSBC UK Mexico MENA Rest of 17% 33% 12% World 2021 2022 14#16Delivery in 2022 Focus on our strengths - GBM Strategy 4022 results Appendix Double-digit revenue growth across MSS and Banking Revenue, $bn Good momentum from cross-sell of GBM products to WPB and CMB clients Collaboration revenue, $bn Growth in client business booked in the East from clients managed in the West 39 Client business³ booked in the East, $bn Markets and Securities Services (MSS) Banking 14.0 +10% 15.4 Other 2021 2022 14% 17% 3.5 Product revenue between GBM and WPB37 Product revenue between GBM and CMB 38 +6% 3.7 2021 2022 7% 5% Clients managed in Americas Clients managed in Europe c.2.0 +c.30% c.2.6 2021 2022 15#17Delivery in 2022 Digitise - Speed, Scale, Resilience Strategy 4022 results Appendix Improvement in product release frequency, and more to come Product release frequency per year 40, # Mobile active WPB customers approaching half of our client base Mobile active WPB customers 42, % 100 +42% 142 2021 2022 Cloud adoption increasing in a controlled manner Cloud adoption 41, % 27% +8.0ppts 1 7 35% 2021 2022 ୮ +6.1ppts 7 42.7% 48.8% 2021 2022 Digital WPB retail sales approaching 50% Digital WPB retail sales 43, % ୮ +2.2ppts 7 46.2% 48.4% 2021 2022 Digitally active CMB customers more than 75% of our client base Digitally active CMB customers 44,% ୮ +6.1ppts 7 71.0% 77.1% 2021 2022 16#18Delivery in 2022 Energise - Inspiring a dynamic culture Key highlights ♦ Simplification - through delayering and de-duplication of management structures; focus on improving employee efficiency by rewiring work processes (+6% vs. sector benchmark45) Diversity - we are delivering on our commitments but striving for more; 36% of enterprise critical roles 46 are now held in Asia Employee engagement index48 % ୮ +1.0ppts 7 72.0 73.0 Strategy 4022 results Appendix Female leaders 50 In senior leadership roles, % ୮ 31.7% +1.6ppts 7 33.3% ◆ Learning - significant focus on sustainability, digital, and data Strategy and values - confidence amongst our colleagues in our future has increased by 3 ppts since 2021 to 77%47 Hybrid working - getting the balance right for our people and businesses 2021 2022 Total learning hours - Future Skills 49 Across Sustainability, Digital, and Data, '000s +13% 378 335 2021 Black heritage leaders51 2022 In senior leadership roles in the UK and US, % ୮ 2.2% +0.3ppts 7 2.5% - Colleague engagement – more opportunities for two-way dialogue due to our new social intranet live in 27 markets 2021 2022 2021 2022 17#19Delivery in 2022 Strategy 4Q22 results Appendix Transitioning to net zero - Continuing to build a leading position through active client engagement Supporting our customers in the transition to net zero Becoming a net zero bank Ambition to provide and facilitate $750bn to $1tn of sustainable finance and investments by 203052, cumulative $bn 211 28 Ambition to be net zero in our operations and supply chain by 2030 or sooner Greenhouse gas emissions, '000 tonnes CO2e 686 (58.5)% 126 Social 21 56 Sustainable 31 52 52 Travel emissions 272 444 81 341 -12- 285 42 Sustainability Linked 28 Energy emissions 414 363 329 75 243 Green 46 2021 2022 Sustainable finance and 82 84 investments, $bn per year 2019 2020 2021 2022 18#20Growth and returns Strategy 4022 results Appendix We are focused on driving value creation and delivering sustainable growth Next phase of strategy execution will focus on our strengths... ...while continuing to deliver on improved performance and higher returns Higher growth and returns Build on our areas of strength, leveraging our international connectivity and geographical diversification spanning every region ◆ Continue to drive our transaction banking, wealth and digital platforms in order to grow fee income Retain strong cost discipline while driving investment in technology to increase productivity and growth 12%+ ROTE guidance from FY23 onwards Substantial distribution capacity: Establishing a 50% dividend payout ratio for FY23 and FY2453 Returning to quarterly dividends from 1023 ◆ Consideration of buybacks brought forward to 1023 Incremental special dividend of $0.21 per share in FY24, subject to completion of our Canada transaction and necessary approvals* * Any remaining additional surplus capital is expected to be allocated towards opportunities for organic growth and investment alongside share buybacks, which would be in addition to any existing share buyback programme 19#214Q22 results update Georges Elhedery Group Chief Financial Officer HSBC#224Q22 results summary $m NII Non-NII Revenue ECL 4022 4Q21 Δ 9,573 6,255 53% 5,779 4,835 20% 15,352 11,090 38% (1,427) (482) >(100)% Costs Associates (7,790) (7,658) (2)% 693 608 14% Adjusted PBT 6,828 3,558 92% Significant items and FX translation (1,623) Reported PBT 5,205 (894) 2,664 (82)% Tax (311) Profit attributable to ordinary shareholders 4,620 Reported earnings per share, $ 0.23 0.09 Impact of sig items on reported EPS, $ (0.04) (0.06) 95% (635) ▼ 51% 1,788 >100% $0.14 $(0.02) FY DPS, $ 0.32 0.25 Reported ROTE36 (YTD), % 9.9 8.3 $0.07 1.6ppts $bn Customer loans Customer deposits 4022 3022 925 1,005 A (8)% 1,570 1,629 (4)% Reported RWAS 840 828 1% CET1 ratio 35, % 14.2 13.4 0.8ppts TNAV per share, $ 7.57 7.13 $0.44 Strategy 4Q22 results Appendix Reported PBT of $5.2bn (up 95%); adjusted PBT of $6.8bn, up $3.3bn (92%) vs. 4Q21, reflecting strong NII growth (up $3.3bn, 53%) and higher non-NII in Corporate Centre related to revenue earned from GBM to fund their trading books, partly offset by lower fees ECL charge of $1.4bn, up $0.9bn vs. 4Q21, primarily relating to our mainland China CRE portfolio and a more normalised charge in the UK RFB Costs of $7.8bn, up 2% vs. 4Q21 due to higher technology spend and higher performance-related pay Customer lending down $80bn (8%) vs. 3Q22, largely due to $55bn of Canada loans moved to HFS. Excl. this impact, lending was down $25bn (2%) primarily due to softer economic conditions in Hong Kong Customer deposits down $58bn (4%) vs. 3Q22 due to $61bn of Canada deposits moved to HFS. Excl. this impact, deposits up $2bn FY22 dividend per share of $0.32, with a second interim dividend of $0.23 per share CET1 ratio of 14.2%, up 0.8ppts vs. 3Q22 due to higher capital generation and lower currency adjusted RWAs FY22 effective tax rate of 5%, including $2.5bn of tax credits, primarily DTAs; expect a normalised effective tax rate of c.20% going forward TNAV per share of $7.57, up $0.44 vs. 3022 due to profits and favourable FX 21#23Adjusted revenue performance Revenue by global business, $m Strategy 4Q22 results Appendix Net fee income by global business, $m +38%* (11)% 15,352 (6)% 516 (55) 2,920 2,766 1,587 2,604 Growth since 4021 11,090 2,214 7,159 1,282 1,264 WPB 1,143 (11)% WPB 4,945 CMB CMB GBM 4,689 GBM 853 903 863 1% 3,102 Corporate Corporate Centre Centre 3,179 3,695 791 621 610 (23)% (136) 4Q21 (191) (6) (22) (12) WPB CMB GBM Corporate Centre 4Q22 4Q21 3022 4022 WPB up $2.2bn (45%). Personal Banking up $2.1bn (72%) primarily due to higher interest rates and balance sheet growth in most regions. Wealth up $0.1bn (7%), due to higher Private Banking NII CMB up $1.6bn (51%); Global Payments Solutions (GPS) up $1.7bn, primarily due to higher interest rates GBM up $0.5bn (16%). Banking up $0.5bn (34%); GPS up $0.7bn, Capital Markets & Advisory down $0.2bn. MSS up $0.3bn (18%), benefitting from continued market volatility Group net fee income down 11% vs. 4Q21, mainly due to reductions in broader market activity levels WPB fees down 11% vs. 4Q21, mainly lower equity and mutual fund sales due to muted customer sentiment CMB fees up 1% vs. 4021 due to repricing initiatives in GPS GBM fees down 23% vs. 4Q21, predominantly driven by lower Capital Markets & Advisory activity 22 22#24Net interest income and margin Reported NIM progression, bps Strategy 4Q22 results Appendix 88 (71) 174 157 3022 Asset yields Liability costs 4022 Reported NIM trend +17bps Discrete quarterly 157bps 174bps reported NIM 119bps 126bps 135bps Reported NII, $m o/w: 9,578 significant items 8,581 Average interest 7,454 6,781 6,997 earning assets (AIEAs), $bn 4022 reported NII of $9.6bn, up $2.8bn (41%) vs. 4021 (up $3.3bn / 53% adjusted) and $1.0bn (12%) vs. 3022 (up $1.1bn / 13% adjusted), primarily due to interest rate rises 4Q22 reported NIM of 1.74%, up 17bps vs. 3Q22 We continue to guide to FY23 NII of ≥$36bn54, which we view as conservative given current FX rates and the strong 4Q22 performance. Guidance considers: ◆ Lagged deposit pass through impacts and migration to time deposits Volume of trading book assets funded by liabilities accounted for in interest expense Cautious outlook on loan growth in the short term; continue to expect mid-single digit percentage annual loan growth in the medium to long term (7) (2) (12) 17 4Q21 1Q22 2022 3Q22 5 4022 We have taken and continue to take action to improve our NII stability 2,251 2,259 2,208 2,171 2,178 Further NII analysis is included on slide 40 23#25Credit performance Adjusted ECL charge trend, $m 4021 and 1Q22 benefitted from releases of Covid-19 related provisions 1,427 ECL 1,071 598 363 482* 621 424 196 628 151 4Q21 1Q22 2022 3Q22 4Q22 0.19 0.25 0.17 0.41 0.55 Strategy 4Q22 results Appendix o/w: mainland China CRE ECL charge as a % of average gross loans and advances 55 FY22 ECL charge of $3.6bn was 35bps of average gross loans and advances 55 4Q22 ECL charge of $1.4bn: ◆ This includes $0.6bn for mainland China CRE exposures ◆ The remaining $0.8bn charge represents c.30bps of average loans, comprised of a $0.5bn Wholesale charge and $0.3bn Personal charge Given current macroeconomic headwinds, whilst we retain our through-the-cycle planning range of 30-40bps, we expect a FY23 ECL charge of around 40bps55 ECL charge (release) by geography, $m 4Q22 ECL charge by stage, $bn 4Q22 3022 Stage 1-2 Stage 3 Total Hong Kong* 758 505 Mainland China 100 87 Wholesale 0.2 0.9 1.1 Other Asia 36 71 Personal 0.1 0.2 0.3 UK RFB 236 278 HSBC Bank plc 55 (14) Total 0.3 1.1 1.4 Mexico 173 94 Other 69 50 Total 1,427 1,071 * Total charge was $482m. China CRE ECL charge of $628m was partly offset by the release of Covid-19 related provisions Charges largely relate to offshore China CRE exposures booked on Hong Kong balance sheets 24 24#26Mainland China commercial real estate update Strategy 4Q22 results Appendix Memo: Mainland Hong Kong Hong Kong ROW China at 2022 11,734 9,378 6,507 878 16,763 2,095 1,425 2,118 220 2,429 697 1,087 370 Mainland China CRE exposures by booking location and credit quality At 31 December 2022 $m Total Strong Good Total mainland China CRE exposure $16.8bn, down $3.0bn vs. 2022, primarily due to repayments in the Hong Kong booked portfolio Hong Kong booked exposures: $9.4bn, down $2.4bn vs. 2Q22 primarily due to repayments; $9.1bn drawn loans & advances Total 3,763 2,154 Satisfactory 3,104 1,269 2,248 77 3,594 Sub-standard 1,946 2,887 779 193 3,859 Credit impaired 2,160 3,100 275 18 3,393 $6bn (c.60%) is classed as sub-standard and credit impaired: $4.9bn not secured; $1.1bn secured Allowance for ECL (884) (1,746) (241) (4) (1,991) Hong Kong booked sub-standard and credit impaired exposures Total $m exposure Of which not secured ECL allowance Sub-standard 2,887 2,581 (458) Credit impaired 3,100 2,347 (1,268) Total 5,987 4,928 (1,726) Total ECL allowance of $1.7bn, substantially all against the $4.9bn 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 (Stage 3) exposures is c.50-55% Management assessed a plausible downside scenario for the Hong Kong booked exposure to be around $1bn of additional ECL at 31 December 2022 We have seen recent positive policy developments in mainland China's commercial real estate sector and continue to monitor developments closely 25#27Adjusted costs Operating expenses trend, $m 69% 63% 57% 51% 51% 7,658 7,255 116 7,187 7,217 7,790 13 1,389 1,484 1,464 1,461 1,434 6,153 5,791 5,726 5,783 6,293 4Q21 1Q22 2022 3Q22 Adjusted cost efficiency ratio UK bank levy Technology29 4Q22 Other Group costs 4022 vs. 3Q22, $m $190m PRP, $41m marketing, $21m T&E 252 (137) 7,217 +8% 288 Strategy 4Q22 results Appendix 4Q22 costs of $7.8bn, up $0.1bn (2%) vs. 4Q21. $0.7bn of cost saves were offset by $0.3bn higher technology spend and $0.3bn higher performance-related pay (PRP) due to accrual timing differences FY22 costs of $30.5bn, up $0.4bn (1%) vs. FY21* UK bank levy lower than guided due to credits relating to previous years; expect c.$0.2bn for FY23 Delivered FY20-22 cost savings of $5.6bn, with an associated CTA of $6.5bn. A further c. $1bn of cost saves are expected to flow through in FY23 ◆ Targeting c.3% adjusted cost growth in FY2357, including up to $0.3bn severance costs that are expected to generate efficiencies into 2024 4022 vs. 4021, $m +2% 266 82 88 (654) 260 Includes $31m of hyperinflation 7,790 260 Includes $64m of hyperinflation 7,658 7,790 3Q22 Cost Saves Discretionary spending Tech spend 56 BAU Other items litigation 4022 4021 Cost PRP Tech Other items 4Q22 saves spend 56 * Impact of retranslating prior year costs of hyperinflationary economies at constant currency $(0.2)bn Other items includes $0.1bn inflation and $0.1bn business and volume growth 26#28Capital adequacy CET1 ratio, % 0.1 14.2 0.2 0.0 0.6 (0.1) 13.4 3022 Profits 58 Dividend accrual Change FX Other 4022 in RWAs translation differences CET1, $bn 110.8 4.7 (0.5) 3.3 1.0 119.3 RWAs, $bn 828.3 (8.4) 19.8 839.7 Capital progression 35 4022 3022 4021 Common equity tier 1 capital, $bn 119 111 133 Reported risk-weighted assets, $bn 840 828 838 CET1 ratio, % 14.2 13.4 15.8 Leverage exposure, $bn 2,417 2,415 2,963 Leverage ratio, % 5.8 5.4 5.2 Strategy 4Q22 results Appendix CET1 ratio of 14.2%, up 0.8ppts vs. 3Q22 CET1 capital increased by $8.5bn, mainly due to profits and favourable FX moves, partly offset by the dividend accrual Reported RWAs of $840bn, up $11bn (1%) vs. 3Q22; FX translation differences of $20bn were partly offset by lower lending in CMB and GBM CET1 ratio target range remains 14-14.5% in the medium term, with the intention of managing this range down further longer term Establishing a dividend payout ratio of 50% for 2023 and 202453; consideration of buybacks brought forward to 1023 22 27#29Guidance summary NII Lending FY22 Strategy 4Q22 results Appendix Guidance $32.6bn FY23 NII $36bn 54; intend to update target for IFRS 17 at or before 1023 +1%55 Cautious outlook on loan growth in the short term; expect mid-single digit percentage annual loan growth in the medium to long term Costs $30.5bn ECL 35bps of average gross loans & advances 55 ROTE 9.9% Asia as a % of Group TE⁹ 47% CET1 14.2% Capital and Dividends 44% payout ratio distributions Buybacks N/A Approximately 3% adjusted cost growth in FY2357, including up to $300m severance costs FY23 ECL charge of around 40bps 55, increase of 4-5bps due to HFS assets; through-the-cycle planning range of 30-40bps Targeting 12%+ from FY23 c.50% medium to long term 59 Manage in 14-14.5% target range in the medium term; aim to manage range down further longer term Establishing a dividend payout ratio of 50% for 2023 and 202453; intend to reinstate quarterly dividends from 1023 Consideration of buybacks brought forward to 1023 Increasing fee-based revenue and growing our WPB franchise remain important priorities for the Group. However, given the changes to the macroeconomic environment, together with the implementation of IFRS 17, 'insurance and fees as a % of Group adjusted revenue' and 'WPB as a % of Group tangible equity' are no longer appropriate to measure our progress in these areas 28#30Summary Strategy 4Q22 results Appendix 1 4022 revenue up $4.3bn (38%), PBT up $3.3bn (92%) vs. 4Q21; FY22 revenue up $8.3bn and PBT up $3.4bn vs. FY21 2 FY22 ECL charge $3.6bn. Expect a charge of around 40bps of loans in FY2355 Continued cost control. FY22 costs were up 1% vs. 3 FY21, despite the inflationary environment. Targeting 3% adjusted cost growth in FY2357 4 Strong capital and liquidity; CET1 ratio of 14.2% 12%+ ROTE from FY23 Substantial distribution capacity: ♦ $0.32 FY22 dividend per share Establishing a 50% payout ratio for FY23 and FY2453 ◆ Returning to quarterly dividends from 1023 Consideration of buybacks brought forward to 1Q23 ♦ Incremental special dividend of $0.21 per share in FY24, subject to completion of our Canada transaction and necessary approvals* * Any remaining additional surplus capital is expected to be allocated towards opportunities for organic growth and investment alongside share buybacks, which would be in addition to any existing share buyback programme 29#31Appendix HSBC#32Strategy 4022 results Appendix International connectivity is our core value proposition for clients and employees; it's the foundation of our strategy and a driver behind improving returns ~45% of wholesale client business is cross-border³ 2022 Wholesale client business, $bn Domestic c.$24bn c. $11bn MENA Americas Europe In WPB, International is the most attractive client segment International WPB customers4, #m Multi-Country Non-Resident Resident Foreigner Cross-border ~45% ~45% Asia 2022 2022 booking location³ 5.6 +7% 7 6.0 2021 2022 c.2x International customer revenue60 vs. domestic customers Business booked domestically includes the home market of international clients c.650k New-to-bank international customers 31#33Changes to presentation of financial results from 1023 Strategy Current Reported performance (IFRS) Adjust for FX, significant items I Adjusted performance61 I New Reported performance (IFRS) Key changes Adjust for FX Adjusted performance61 Memo: Notable items 4022 results Appendix X X × × × × × × × X X We are making several changes to the presentation of the Group's financial results with effect from 1 January 2023: ◆ Changing definition of 'adjusted performance': we will no longer exclude the impact of significant items when deriving 'adjusted performance' ◆ Notable items: we will separately disclose 'notable items', those components of our income statement which would be considered as outside the normal course of business and generally non-recurring in nature Reporting by legal entity: we will replace reporting by geographical region with reporting by main legal entity, to better reflect the Group's structure Impact on targets and guidance As part of our 1Q23 results, we intend to recalibrate financial targets and guidance to reflect the impact of: the above changes, and the implementation of IFRS 17 'Insurance Contracts' with effect from 1 January 2023 Region WPB CMB GBM CC Total Entity WPB CMB GBM CC Total Asia X X X X X The Hongkong and Shanghai Banking Corporation (Asia) X X o/w HK ✗ ✗ Х X X MENA ✗ X I Grupo Financiero HSBC (Mexico) Europe62 X Х Х ☑ HSBC UK Bank plc (UK) ✗ ✗ X I HSBC Bank plc (UK / Europe) ✗ X Х ✗ North America ✗ Х ☑ X HSBC N. America Holdings (USA) X ✗ Latin America ✗ Х Х X HSBC Bank Canada ✗ X X X I HSBC Middle East (UAE) ✗ ✗ ✗ Х Total X X X X X Other Trading Entities* X ✗ I Holding companies, shared service centres and intra-group eliminations Total ✗ ✗ X X X *Including "of which Other Middle East Entities (Oman, Turkey, Egypt and Saudi Arabia)" and "of which SABB" 32#34ESG update Environmental Social Strategy 4022 results Appendix Governance Our net zero transition will be challenging but is an opportunity to make an impact. We plan to publish our transition plan in FY23, bringing together how we intend to embed net zero targets into our strategy, processes, policies and governance. We continue to invest in our climate resources and skills. To deliver on our ambition, we require enhanced processes, systems, controls, governance and new sources of data Net zero in our operations by 2030 Cumulatively reduced absolute greenhouse gas emissions by 58.5% vs. 2019 baseline Net zero in our financed emissions by 2050 Published an updated energy policy and thermal coal phase-out policy Set on-balance sheet financed emissions targets for 8 high-emitting sectors Our percentage of female leaders was 33.3%, up 1.6ppts vs. FY2150 37% increase in Black colleagues in senior leadership roles from 2020 baseline 51 Employee engagement increased 6ppts vs. FY19 to 73% 48 Launched $1bn Female Entrepreneur Fund १६१ 4/6 WPB markets and 5/6 CMB markets sustained top 3 rank and/or improved in customer satisfaction 98% of employees completed conduct training 63 36% of enterprise critical roles are based in Asia 46 Review of salient human rights issues following the methodology set out in the UNGPS 33 33#35Sustainable finance update Sustainable finance ◆ We have provided and facilitated a cumulative $211bn of sustainable finance and investment against our 2030 ambition of $750bn - $1tn Global GSSS bond issuance²², $bn 519 Strategy 4022 results Appendix 941 751 34 Financing by type 2015 2020 2021 2022 211 78 Global Green Global Social Global Sustainability Global Sustainability-linked 126 36 44 132 10- 90 34 2020 2021 2022 On balance sheet Off balance sheet HSBC was a top 5 underwriter of GSSS bonds globally in FY22, taking a 4.3% market share (5.0% market share in FY21) 64 ◆ Apportioned volume of $32.4bn vs. $46.8bn in FY2164 Global GSSS bond issuance was down 20% in 2022 vs. 2021 in the context of a broader 30% decline in overall DCM issuance 34 ==#36Key financial metrics Strategy 4022 results Appendix Reported results, $m NII 4Q22 3022 4021 Alternative performance measures, $m 4022 3022 4Q21 9,578 8,581 6,781 Adjusted NII 9,573 8,455 6,255 Other Income Revenue ECL Costs Associate income 5,297 3,035 5,208 Adjusted other income 5,779 5,698 4,835 14,875 11,616 11,989 Adjusted revenue 15,352 14,153 11,090 (1,427) (1,075) (450) Adjusted ECL (1,427) (1,071) (482) (8,936) (7,975) (9,544) Adjusted costs (7,790) (7,217) (7,658) 693 581 Profit before tax 5,205 3,147 669 2,664 Adjusted associate income 693 563 608 Adjusted profit before tax 6,828 6,428 3,558 Tax (311) (586) (635) Profit after tax 4,894 2,561 2,029 PAOS excl. goodwill and other intangible impairment and PVIF Return on average tangible equity (annualised), % 4,590 2,865 2,373 12.6 7.8 6.0 Profit attributable to ordinary shareholders ('PAOS') 4,620 1,913 1,788 Basic EPS, $ 0.23 0.10 0.09 Diluted EPS, $ 0.23 0.10 0.09 DPS (in respect of the period), $ 0.23 0.18 Return on average equity (annualised), % Adjusted net loans and advances to customers, $bn Adjusted customer accounts, $bn Adjusted cost efficiency ratio, % 11.3 4.7 4.0 925 1,005 991 1,570 1,629 1,623 50.7 51.0 69.1 Net interest margin (annualised), % 1.74 1.57 1.19 ECL charge as a % of average gross loans and advances to customers, annualised (including held-for-sale balances) 0.58 (0.55) 0.41 (0.41) 0.19 (0.19) Capital, leverage and liquidity35 4022 3022 4021 Reported risk-weighted assets, $bn 840 828 838 CET1 ratio, % 14.2 13.4 15.8 Total capital ratio (transitional), % 19.3 18.1 21.2 Reported balance sheet, $bn 4022 3022 4021 Leverage ratio, % 5.8 5.4 5.2 Total assets 2,967 2,992 2,958 High-quality liquid assets (liquidity value), $bn 644 606 717 Net loans and advances to customers 925 968 1,046 Liquidity coverage ratio, % 132 127 139 Customer accounts 1,570 1,567 1,711 Quarterly average interest-earning assets 2,178 2,171 2,251 Share count, m 4022 3022 4021 Reported loan/deposit ratio 58.9 61.7 61.1 Total shareholders' equity (NAV) Basic number of ordinary shares outstanding 19,739 19,738 20,073 187 178 198 Tangible ordinary shareholders' equity (TNAV) 149 141 158 NAV per share, $ Basic number of ordinary shares outstanding and dilutive potential ordinary shares 19,876 19,857 20,189 8.50 8.00 8.76 TNAV per share, $ 7.57 7.13 7.88 Quarterly average basic number of ordinary shares outstanding 19,738 19,752 20,152 35#37Reconciliation of reported PBT and adjusted profit after tax Strategy 4022 results Appendix $m 4022 3022 4021 FY22 FY21 Revenue ECL Fair value movements on financial instruments Currency translation of significant items Currency translation Currency translation Customer redress programmes Reported PBT (B) Currency translation Customer redress programmes Disposal, acquisitions and investment in new businesses Restructuring and other related costs* 5,205 3,147 2,664 17,528 18,906 (174) (1,004) - (3,074) (5) (17) 7 (8) (11) 71 2,440 2,799 127 232 (16) 579 242 284 32 112 248 307 24 2 4 4 (32) (174) 87 727 2,181 (10) (15) 25 (31) 49 Operating expenses Disposals, acquisitions and investment in new businesses 9 9 18 Impairment of goodwill and other intangibles (13) 587 (4) 587 Restructuring and other related costs 1,160 681 591 2,881 1,836 o/w: costs to achieve 1,159 676 574 2,853 1,782 Currency translation of significant items (4) (44) (137) Share of profit in associates and JVs Currency translation (18) (61) (113) Adjusted PBT 6,828 6,428 3,558 24,010 20,603 Currency translation 22 58 279 Reported tax charge (311) (586) (635) Tax Tax significant items (961) (645) (104) (858) (3,429) (4,213) Currency translation on significant items (5) 6 (324) 17 Adjusted profit after tax (A) 5,556 5,214 Total tax, currency translation and significant items (A-B) 351 2,067 2,883 219 19,723 16,362 2,195 (2,544) * Primarily comprises losses associated with our RWA reduction programme 36#38Certain items included in adjusted revenue Strategy 4022 results Appendix Certain items included in adjusted revenue highlighted in management commentary, $m Insurance manufacturing market impacts in WPB of which: Asia WPB insurance manufacturing market impacts 4022 3022 2022 1022 4021 FY22 FY21 107 (421) (382) (279) 126 (964) 479 (18) (443) (402) (361) 88 (1,228) 224 Gain on Insurance policyholder funds on deposit in WPB Credit and funding valuation adjustments in GBM Legacy Credit in Corporate Centre 294 294 10 3 24 (29) 38 6 32 (15) (6) 23 (18) (12) (17) (31) Valuation differences on long-term debt and associated (1) (48) (32) 5 (10) (77) (99) swaps in Corporate Centre Türkiye hyperinflation65 (20) (27) (113) (161) Argentina hyperinflation 65 (119) (106) (86) (69) (18) (380) (130) Total (38) (605) (272) (390) 124 (1,299) 251 32 37#394Q22 adjusted revenue performance Strategy 4022 results Appendix 4022 revenue 4022 vs. 4021 Revenue by global business, $bn Wealth $2,078m 144 o/w: insurance market impacts: $(19)m +38% WPB $7,159m 45% Personal Banking $4,991m 2,097 15.4 14.2 Other $90m (27) 3.7 GTRF $488m 17 3.8 11.1 Credit and Lending $1,344m (97) CMB $4,689m ▲ 51% 3.2 GPS 4.7 $2,571m 1,710 4.3 Other $286m (43) 3.1 MSS $2,017m 303 o/w: XVAS: $(28)m Banking $2,057m 517 GBM $3,695m A 16% of which: GPS $1,108m 666 Principal Investments $(3)m (53) Other $(376)m (251) Corp. Centre $(191)m Group $15,352m ▲ 38% (55) o/w: valuation differences: $9m (162) 4,262 Impact of certain items 7.2 6.2 4.9 (0.1) (0.1) (0.2) 4021 3022 4022 GBM CMB WPB Corporate Centre 38 88#40Net interest margin supporting information Strategy 4022 results Appendix 1 year NII sensitivity At 31 December 2022, 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 Quarterly NIM by key legal entity 4Q21 1022 2022 3Q22 4Q22 % of 4022 % of 4022 Group NII Group AIEA Currency USD HKD GBP EUR $m $m $m $m Other $m Total $m The Hongkong and Shanghai Banking Corporation (HBAP) 1.35% 1.39% 1.46% 1.79% 2.05% 52% 44% +25bps (66) 107 245 167 431 884 HSBC Bank plc 0.52% 0.55% 0.57% 0.41% 0.52% 6% 21% -25bps 64 (115) (289) (194) (439) (973) +100bps (267) -100bps 236 413 (476) 1,026 (1,177) 674 1,689 (765) (1,787) 3,535 HSBC UK Bank plc (UK RFB) 1.48% 1.63% 1.77% 1.99% 2.19% 22% 17% (3,969) HSBC North America Holdings, Inc 0.87% 0.90% 1.05% 1.16% 1.16% 5% 8% 5 year NII sensitivity At 31 December 2022, 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 Key rates (quarter averages), bps Currency 1M HIBOR USD $m HKD $m GBP +25bps 192 668 -25bps (282) +100bps 673 -100bps (1,522) $m 2,315 (688) (2,336) 2,401 9,254 (3,004) (9,454) $m EUR Other $m Total Fed effective rate 924 2,500 $m 6,599 (1,044) (2,498) (6,848) 3,764 9,765 25,857 (4,173) (10,317) (28,470) BoE Bank rate 442 368 366 368 283 292 219 1641 162 77 95 45 11 8 13 20 12 31 4Q21 1022 2022 3022 4Q22 1Q23 QTD* Source: Bloomberg * At 20 Feb 2023 39#41Further NII analysis Reported NII trend, $bn 32.6 26.5 9.6 8.6 6.8 7.0 7.5 0.6 0.6; 0.6- 0.7 0.7 2.5 [2.6] H 4Q21 1022 2022 3022 4022 FY21 FY22 o/w: Insurance NII Central costs of funding trading income, $bn 2.5 1.3 0.8 0.1 4021 0.1 0.3 0.4 нн 1022 2022 3022 4Q22 FY21 FY22 Strategy 4022 results Appendix IFRS 17 NII in our insurance manufacturing business* ($2.6bn in FY22) will reduce under IFRS 17 which came into force on 1st January 2023 as a result of related asset reclassifications. Associated income will now be reported in other income 1H22 insurance NII, if reported on an IFRS 17 basis, would have fallen from $1.3bn to $0.2bn*, with an offsetting credit to non-NII due to asset reclassifications Funding of the trading book Included within FY22 NII was a $2.5bn interest expense representing centrally allocated funding costs associated with generating trading income+, offset by $2.5bn of trading income reported in Corporate Centre Up $2.1bn vs. FY21, primarily due to higher interest rates Our NII guidance for 2023 incorporates the annualised run-rate of this expense ($1.3bn in 4Q22) reflecting higher average interest rates than in FY22 and our net trading assets funding position FY22 Group AIEAs of $2.2tn, of which insurance AIEAs $73bn. Average trading assets and financial assets designated and otherwise mandatorily measured at fair value through profit or loss $151bn Primarily interest earned on investment portfolios, e.g. government and corporate bonds, other securities and cash Estimate based on certain judgements and is subject to change # Net income from financial instruments held for trading or managed on a fair value basis 40 40#42Net fee income by global business Strategy 4022 results Appendix $m FY22 FY21 A $m FY22 FY21 Δ Personal Banking 1,259 1,277 (1)% MSS 468 931 (50)% Wealth Management 3,648 4,281 (15)% o/w: Securities Services 1,201 1,257 (4)% WPB Other WPB 123 91 35% o/w: Other MSS (733) (326) >(100)% Total WPB 5,030 5,649 (11)% Banking 2,318 2,560 (9)% GBM o/w: GPS 670 601 11% GTRF 989 947 4% o/w: GTRF 452 431 5% Credit & Lending 708 700 1% o/w: Other Banking 1,196 1,528 (22)% CMB GPS 1,375 1,156 19% Other GBM (26) (31) 16% Other CMB 621 611 2% Total GBM 2,760 3,460 (20)% Total CMB 3,693 3,414 8% Corporate Centre (32) (35) 9% Group net fee income 11,451 12,488 (8)% 11111 41#43Wealth and Personal Banking Strategy 4022 results Appendix 836 57 4Q22 financial highlights Balance sheet, $bn 45% Revenue $7.2bn 828 830 (4Q21: $4.9bn) 9 -24- ECL $(0.3)bn >(100)% 463 476 476 (4021: $(0.0)bn) 2 26- 52 819 806 0% 779 Costs $(3.7)bn (4021: $(3.7)bn) 461 450 424 > 100% PBT $3.2bn ROTE66 18.5% (4021: $1.2bn) 3.3ppts (FY21: 15.2%) 4Q21 3Q22 4Q22 Customer lending HFS Portfolio67 Customer accounts Revenue performance, $m +45% Reported Wealth Balances, $bn 1,670 1,592 +15% 1,492 18 73 551 4,945 4,895 5,497 6,245 7,159 503 506 126 (279) (382) (421) 107 112 90 117 84 3,352 4,240 4,991 1,119 2,894 2,972 968 1,016 1,808 2,118 2,532 2,314 1,971 4Q21 1022 2022 3022 4Q22 4Q21 3022 4Q22 Wealth excl. market impacts Other Personal banking Insurance manufacturing market impacts Wealth deposits 68 Invested assets HFS Portfolio 67 4022 vs. 4021 Revenue up $2.2bn (45%). Personal Banking up $2.1bn (72%) primarily due to interest rate rises and balance sheet growth in the UK, Asia, Mexico and MENA. Wealth up $144m primarily due to higher Private Banking and Insurance Customer lending and accounts of $424bn and $779bn were down 8% and 5% respectively due to HFS transfers, excl. impact of HFS and disposed portfolios: ◆ Lending up $15bn (3%). Mortgages up $15bn (4%), unsecured up $2bn (5%), partly offset by the run-off of the $1bn John Lewis card portfolio Deposits up $17bn (2%) with growth particularly in the UK, Asia, Mexico and MENA ♦ Wealth balances down 9%. Excl. HFS, down $78bn (5%). FY NNIA of $80bn was more than offset by lower market levels ($116bn) and adverse FX and other impacts of $42bn 4022 vs. 3Q22 Revenue up $914m (15%). Personal Banking up $751m (18%) primarily due to rate rises. Wealth up $185m due to favourable movement in market impacts of $528m, partly offset by lower Investment distribution and Insurance VNB Customer lending and accounts were down 6% and 3% respectively due to HFS transfers, excl. which: ◆ Lending stable; Personal Banking up, offset by GPB deleveraging and seasonal reduction in balances ◆ Deposits up $6bn, mainly in Hong Kong Wealth balances up 3%. Excl. HFS, up $100bn (7%) due to NNIA of $9bn, higher market levels ($29bn) and $62bn favourable FX and other impacts 42#44Commercial Banking 4Q22 financial highlights Balance sheet, $bn 51% Revenue $4.7bn (4Q21: $3.1bn) Customer lending 347 ECL $(0.9)bn > (100)% 331 0 (4021: $(0.2)bn) 333 25. Costs $(1.7)bn (5)% (4021: $(1.6)bn) 69% 347 308 PBT $2.1bn (4Q21: $1.2bn) ROTE66 14.2% 3.4ppts (FY21: 10.8%) 4Q21 3022 4Q22 Revenue performance, $m +51% Customer accounts +10% 480 479 481 4,263 4,689 286 1 -22: 3,522 476 488 3,102 3,258 302 511 1,344 329 433 512 471 500 1,393 479 459 1,415 1,441 1,381 2,571 1,883 861 944 1,293 4Q21 1022 2022 3022 4Q22 4Q21 3Q22 4Q22 GPS (formerly GLCM) GTRF HFS portfolio69 Credit & Lending Markets products, Insurance and Investments and Other Strategy 4022 results Appendix 4022 vs. 4021 Revenue up $1.6bn (51%) with double digit growth in all regions notably in Asia and the UK. GPS revenue up 199% driven by higher rates, higher average balances and 12% fee growth; coupled with growth in GBM collaboration income (up 7%) ECLs up $0.7bn due to the impact of stage 3 charges in Hong Kong (mainland China CRE exposures) and the UK Customer lending and accounts of $308bn and $459bn are down 7% and 4% respectively due to Canada HFS transfer, excluding which: ◆ Lending up $2.5bn (1%), driven by Credit & Lending, growth in Asia excluding Hong Kong, North America and the UK Deposits broadly stable 4022 vs. 3022 Revenue up $0.4bn (10%) with growth across all regions notably in Asia, continued growth in GPS (up 37%) partly offset by lower Trade (down 5%) and Credit & Lending (down 4%) notably in Hong Kong Customer lending and accounts were down 11% and 4% respectively due to Canada HFS transfer, excluding which: ◆ Lending down $14bn (4%), reflecting softer economic conditions notably in Hong Kong and the UK in both Credit & Lending and Trade ◆ Deposits up $2bn, with growth in Hong Kong and the USA, partly offset by a market wide reduction in the UK 43#45Global Banking and Markets 4022 financial highlights View of adjusted revenue 16% Revenue $3.7bn $m 4Q22 A4Q21 (4021: $3.2bn) MSS 2,017 18% ECL $(0.3)bn (19)% Securities Services 574 32% (4021: $(0.2)bn) Global Debt Markets 158 >100% Global FX 934 13% Costs $(2.4)bn (2)% Equities 132 (39)% (4021: $(2.4)bn) Securities Financing 209 4% 100% XVAs 10 PBT $1.0bn (4021: $0.5bn) Banking 2,057 GTRF ROTE66 10.7% 2.1ppts (FY21: 8.6%) GPS (formerly GLCM) Credit & Lending 184 1,108 559 (74)% 34% 13% >100% (9)% Capital Markets & Strategy 4022 results Appendix 124 (57)% 82 >100% (379) >(100)% (3) >(100)% (376)>(100)% 16% 4022 vs. 4021 Revenue of $3.7bn up $0.5bn (16%) MSS revenue of $2.0bn up $0.3bn (18%): • Continued strong Global FX performance due to elevated client flows and disciplined risk management • Global Debt Markets up substantially due to G10 rates and a • better trading performance compared to a weak 4021 Equities down due to reduced client derivative activity compared to a strong 4021 and continued muted primary market Global interest rate increases, partially offset by the effect of lower market levels, drove good Securities Services performance Banking revenue of $2.1bn up $0.5bn (34%): • GPS growth, reflecting higher global interest rates and fees Capital Markets & Advisory down $0.2bn in line with industry fee pool Revenue performance, $m +16% (2)% Advisory Other GBM Other 3,680 3,653 3,776 3,695 Principal Investments Other 3,179 Net operating income 3,695 1,541 1,681 1,801 2,057 1,540 Adjusted RWAs70, $bn +3% (4)% 2,211 2,237 2,188 2,017 1,714 227 243 234 (75)- (72) (265) (213) (379) 4Q21 1Q22 2022 3022 4022 MSS Banking Other 4Q21 3022 4022 4022 vs. 3022 Revenue down 2% • MSS down 8% against a strong 3Q22 Banking up 14%, as rising interest rates supported strong GPS results 44#46Corporate Centre 4022 financial highlights Revenue performance, $m Strategy 4022 results Appendix Revenue $(191)m (40)% (4Q21: $(136)m) 4Q21 1022 2022 3022 4Q22 ECL $(8)m >(100)% (4021: $(3)m) Central Treasury (10) 5 (32) (48) (1) Legacy Credit (12) (18) 23 (6) (15) Costs $47m (70)% Other (114) (234) (85) (77) (175) (4Q21: $156m) 15% Total (136) (247) (94) (131) (191) Associates $686m (4Q21: $598m) PBT $534m (13)% Not included in Corporate Centre revenue: Markets Treasury revenue allocated to global businesses 448 464 348 353 312 (4Q21: $615m) ROTE 66 5.4% (0.2)ppts Adjusted RWAs70, $bn 4022 vs. 4Q21 (FY21: 5.6%) (1)% Associate income detail, $m 89 T +12% 89 99 79 +25% 36 745 38 686 32 598 578 119 70-12 550 133 93 600 624 53 516 556 47 51 460 (2) (20) (3) (3) 4021 3022 4Q22 4Q21 1Q22 2022 3Q22 4022 BoCom SABB Others Associates Other ♦ Revenue down $55m (40%), primarily due to higher funding costs on Group assets, an increase in hedging costs and adverse valuations on investment properties ◆ Associates up $88m (15%), primarily SABB and BoCom 4022 vs. 3022 ♦ Revenue down $60m (46%), primarily due to FX movements and higher funding costs on Group assets, partly offset by favourable valuation differences in Central Treasury ◆ Associates up $136m (25%), primarily BoCom and SABB ♦ RWAs up $10bn; primarily $4bn relating to the FX hedges on the planned sale of our Canada business and $3bn due to changes in threshold amounts 45#47Insurance Strategy 4022 results Appendix Key financial metrics* Reported Embedded Value, $bn Strategic highlights +4% Adjusted income statement, $m FY22 FY21 FY20 Revenue 2,006 2,683 1,934 17.0 17.7 Of which: NII 2,595 2,430 2,352 7.5 7.8 Market impacts (988) 491 86 Funds on deposit 294 9.5 9.9 PVIF 324 69 377 ECL (18) (22) (72) 4Q21 4022 Operating expenses (918) (590) (492) Other net assets PVIF Associates 18 17 Profit before tax 1,088 2,088 1,370 Memo: distribution income* 823 795 781 FY22 VNB & ANP, $m FY22 financial highlights: ANP VNB VNB margin VNB of $1.3bn, up $0.3bn (24%) vs. FY21 Adverse market impacts of $1.0bn (FY21: $0.5bn favourable) Revenue included a $0.3bn gain from a policyholder funds on deposit pricing update, to reflect the cost of provision of these services and a $0.1bn gain on completion of our acquisition of AXA Singapore Costs of $0.9bn, up $0.3bn (56%) vs. FY21 reflected the acquisition of AXA Singapore and investment in Pinnacle Reduction in ANP and increase in VNB margin reflected high 1H22 sales of single premium products in Hong Kong 38% 56% +24% ◆ #1 ranked with a market share of 25% 13 in Hong Kong for 9M22, up 2.4ppts vs. 9M21 ◆ Pinnacle has been expanded to cover 6 major cities in mainland China with c.1,300 Personal Wealth Planners and 1m registered users of our Pinnacle River App (HSBC c.190k member registrations on our digital health and wellness platforms in Hong Kong71 Successfully integrated AXA Singapore with our existing Singapore business and commenced combined operations Increased ownership in mainland China from 50% to 100%, established BrokerCo in mainland China to support Pinnacle expansion 2,830 2,354 Extended partnerships with Allianz in six key Asian markets for 15 years 1,322 1,070 FY21 FY22 * Financial results for the Insurance business are prepared on the current IFRS 4 basis and, as such, do not reflect any potential impacts of IFRS 17 'Insurance Contracts', which is effective from 1 January 2023 Distribution income (HSBC Life and partnerships) through HSBC bank channels 46#48Wealth and Personal Banking: Global invested assets Global reported invested assets Asia reported invested assets Strategy $bn $bn 4022 results Appendix Reported invested assets managed by AM $bn (9)% 1,119 968 1,016 334 306 340 351 +2% 472 484 437 (6)% 630 595 567 32 58 43 147 141 127 450 399 391 291 312 293 268 285 434 370 364 180 176 196 4Q21 3Q22 4Q22 4Q21 3022 4Q22 4Q21 3022 4Q22 Retail GPB AM 3rd party distribution Retail GPB AM 3rd party distribution Asia Rest of World Global reported invested assets evolution Asia reported invested assets evolution GPB reported client balances $bn 80 $bn 59 $bn 26 26 18 1,119 36 (116) 15 (57) 484 472 18 10 (9)% 423 383 359 (36) (31) 1,016 (67) 351 291 312 4Q21 NNIA Net market FX and movements other AM 3rd party distribution Retail GPB HFS 4Q21 NNIA 4022 Net market FX and movements other 4Q22 73 68 4Q21 3022 71 4022 Retail GPB AM 3rd party distribution GPB deposits GPB invested assets 47#49Balance sheet - customer lending Balances by global business, $bn Balances by region Growth since 3Q22 1,005 994 1,031 Europe $344bn 81 $(6)bn (2)% -2- 26 $(3)bn o/w: UK $286bn (1)% 991 1,005 925 Asia $475bn 199 207 $(14)bn (3)% 193 o/w: Hong $(10)bn $296bn Kong (3)% 331 347 308 MENA $26bn $(1)bn (3)% North $56bn 461 450 424 America $(58)bn (51)% o/w: US $54bn 1 0 0 $(3)bn (5)% 4Q21 3Q22 4Q22 Latin $(0)bn $24bn America (2)% Held for sale WPB GBM Corporate Centre $(80)bn Total $925bn (8)% CMB Strategy 4022 results Appendix Adjusted customer lending of $925bn, down $80bn (8%) vs. 3Q22, primarily due to the reclassification of $55bn of Canada loans to held- for-sale (HFS). Including HFS balances, lending down $25bn (2%) WPB down $27bn (6%) due to $27bn of Canada loans moved to HFS. Including HFS balances, lending stable CMB down $39bn (11%), of which $25bn of Canada loans moved to HFS. Including HFS balances, lending down $14bn (4%) driven by softer economic activity in Hong Kong GBM down $15bn (7%) due to seasonality in Europe 48#50Balance sheet - customer accounts Strategy 4022 results Appendix Balances by global business, $bn Balances by region Growth since 3Q22 1,656 1,631 9 1,655 85 Europe $601bn 26. $(18)bn (3)% 1,623 1,629 o/w: UK $493bn 1,570 $(17)bn (3)% 322 343 332 Asia $784bn $15bn 2% Adjusted customer accounts of $1,570bn, down $58bn (4%) vs. 3022 primarily due to the reclassification of $61bn of Canada deposits to held-for-sale (HFS). Including HFS balances, deposits stable o/w: Hong $11bn 480 479 $543bn WPB down $27bn (3%) due to $33bn of Canada deposits moved to HFS. Including HFS balances, deposits up $6bn 459 Kong 2% MENA $44bn $1bn 3% North 819 806 779 $109bn America $(58)bn (35)% o/w: US $100bn 1 0 0 $2bn 2% 4Q21 3Q22 4022 GBM Corporate Centre Latin America $32bn $1bn 3% CMB down $20bn (4%) due to $22bn of Canada deposits moved to HFS. Including HFS balances, deposits up $2bn GBM down $11bn (3%) Average GPS balances of $753bn were down $4bn vs. 3022 (up $2bn vs. 4Q21) CMB Held for sale $(58)bn Total $1,570bn WPB (4)% 49 49#51Balance sheet analysis Group customer accounts by type, $bn* Average balances Strategy 4022 results Appendix Group loans, deposits and RWAs by currency* 1,056 1,024 898 823 840 795 $1,570bn $925bn $840bn 15% 16% 25% -4% -5%] 7% 6% [6%] 20% 7% 24% 18% 27% 29% 17% 279 272 290 323 315 202 204 213 229 230 255 263 68 70 75 66 51 55 2017 2018 2019 2020 2021 2022 27% 27% 20% Customer Loans and RWAs+ accounts advances to customers USD GBP HKD EUR CNY Others Demand & other - non-interest bearing Savings Demand interest bearing Time and other Hong Kong system deposits by currency at 31 December 2022: 48% HKD; 38% USD; 13% Non-US foreign currencies. Source: HKMA * As reported in our SEC specific disclosures. Does not include held-for-sale balances Loans and advances and customer accounts do not include held-for-sale balances. RWAs represent the functional currency of the entity. #RWAS of $840bn includes credit risk, market risk and operational risk RWAs 50 60#524Q22 vs. 3Q22 equity drivers Strategy 4022 results Appendix Shareholders' Tangible equity, TNAV per share, equity, $bn $bn $ At 30 September 2022 Profit attributable to: Ordinary shareholders72 Other equity holders Dividends FX72 On ordinary shares On other equity instruments 177.7 140.7 7.13 4.7 5.1 0.26 4.6 5.1 0.26 0.1 (0.1) (0.1) 4.9 4.4 0.22 Actuarial gains/(losses) on defined benefit plans (0.7) (0.7) (0.03) Cash flow hedge reserves 1.1 1.1 0.06 Fair value movements through 'Other Comprehensive Income' (0.7) (0.7) (0.04) Of which: changes in fair value arising from changes in own credit risk Of which: Debt and Equity instruments at fair value through OCI (1.1) (1.1) (0.06) 0.4 0.4 0.02 Other72 At 31 December 2022 0.6 (0.5) (0.03) 187.5 149.4 7.57 Average basic number of shares outstanding during 4Q22: 19,738 ♦ 4Q22 TNAV per share increased by $0.44 to $7.57 per share, mainly due to higher profits and favourable FX impacts At 31 December 2022, tangible equity included financial investments at FVOCI reserve of $(6.0)bn and cash flow hedging reserve of $(3.8)bn Basic number of ordinary shares, millions 19,738 1 19,739 $7.51 on a fully diluted basis 19,876 million on a fully diluted basis 51 I#53FY22 vs. FY21 equity drivers Strategy 4022 results Appendix Shareholders' Tangible equity, TNAV per share, equity, $bn $bn $ Basic number of ordinary shares, millions At 31 December 2021 Profit attributable to: Ordinary shareholders72 Other equity holders Dividends On ordinary shares On other equity instruments 198.3 158.2 7.88 20,073 16.0 16.1 0.80 14.8 16.1 0.80 1.2 (6.5) (5.3) (0.27) I (5.3) (5.3) (0.27) (1.2) FX72 (9.8) (9.2) (0.46) Cancellation of shares / buybacks (1.0) (1.0) 0.09 (348) Actuarial gains/(losses) on defined benefit plans (1.0) (1.0) (0.05) Cash flow hedge reserves (3.6) (3.6) (0.18) Fair value movements through 'Other Comprehensive Income' (3.4) (3.4) (0.17) Of which: changes in fair value arising from changes in own credit risk Of which: Debt and Equity instruments at fair value through OCI 1.9 1.9 0.10 (5.3) (5.3) (0.27) (1.5) (1.4) (0.07) 187.5 149.4 7.57 14 19,739 Other72 At 31 December 2022 ◆ Average basic number of shares outstanding during FY22: 19,849 FY22 TNAV per share decreased by $0.31 to $7.57 per share; mainly due to adverse FX impacts, cash flow hedge reserve movements and dividends paid, partly offset by higher profit At 31 December 2022, tangible equity included financial investments at FVOCI reserve of $(6.0)bn and cash flow hedging reserve of $(3.8)bn $7.51 on a fully diluted basis 19,876 million on a fully diluted basis 52#54Total shareholders' equity to CET1 capital Total equity to CET1 capital, at 31 December 2022, $m Total equity to CET1 capital walk, $m Strategy 4022 results Appendix 4022 Total equity Non-controlling interests Total shareholders' equity 196,028 Total equity (per balance sheet) Non-controlling interests 196,028 3022 185,993 (8,544) (8,335) 2022 196,690 (8,308) 4Q21 206,777 (8,527) (8,544) Total shareholders' equity 187,484 177,658 188,382 198,250 Additional Tier 1 (19,746) (19,746) (21,691) (22,414) 187,484 Total ordinary shareholders' equity 167,738 157,912 166,691 175,836 Foreseeable dividend (4,436) (3,926) (3,548) (3,655) Additional Tier 1 (19,746) Adjustment for insurance / SPE's *.73 (3) 4 Allowable NCI in CET1 4,444 4,272 Total ordinary shareholders' equity Foreseeable dividend insurance / SPE'S 167,738 CET1 before regulatory adjustments 167,743 158,262 (12,881) 4,392 154,654 (13,449) 4,186 162,918 Prudential valuation adjustment (1,171) (1,334) (1,299) (1,217) Intangible assets (12,141) (11,082) (11,746) (9,123) (4,436) Deferred tax asset deduction (4,235) (3,528) (3,274) (1,520) Deconsolidation of Cash flow hedge adjustment 3,601 4,669 2,124 170 (3) Excess of expected loss (1,248) (1,992) (2,373) (2,020) Allowable NCI in CET1 4,444 Own credit spread and debit valuation adjustment Defined benefit pension fund assets (412) (1,589) (778) 1,571 (5,448) (5,639) (6,638) (7,146) CET1 before 167,743 regulatory adjustments Direct and indirect holdings of CET1 instruments Other regulatory adjustments to CET1 capital (including IFRS 9 transitional adjustments when relevant) (40) (40) (40) (40) (220) (340) (235) 766 Regulatory adjustments (48,452) CET1 capital 119,291 Threshold deductions* Regulatory adjustments CET1 capital (27,138) (48,452) 119,291 (26,630) (14,615) (11,794) (47,505) (38,874) (30,353) 110,757 115,780 132,565 * These rows include offsetting entries of $12,660m for 3Q22 and $13,200m for 4Q22 relating to the start of equity accounting for our insurance subsidiaries with effect from 3Q22 53#55Hong Kong business performance FY22 financial performance $m FY22 FY21 Δ NII 9,928 7,216 Non-NII 6,390 Revenue 16,318 7,204 14,420 38% (11)% 13% o/w: market (1,066) 237 n.m. impacts ECL (1,680) (605) >(100)% Costs (7,882) (7,676) (3)% Associates 5 16 (69)% PBT 6,761 6,155 10% Strategy 4022 results Appendix Rising interest rates and market share gains drove PBT of $6.8bn, up $0.6bn (10%) vs. FY21 ◆ Strong 4022 performance: revenue $5.1bn, PBT $2.3bn ECL up, largely due to offshore mainland China CRE exposures booked on Hong Kong balance sheets Customer lending down 5% vs. FY21 due to subdued loan demand in 2H22 Customer accounts down 1% vs. FY21 Time deposits as a % of customer accounts* 4 #1 retail NPS amongst major bank74 #1 in card spend; market share 49%75 #1 in trade finance; 23.3% market share76 #1 in life insurance ANP; market share 24.7%13 Balance sheet, $bn 312 550 40% 543 30% 296 20% 34% 22% 18% 10% FY21 FY22 0% Customer loans Customer accounts FY20 FY21 FY22 HSBC Hong Kong - Hang Seng Bank - Total 77 *As at the end of the period CASAS are 78% of customer accounts Time deposits are 22% of customer accounts, up 16ppts vs. FY21 due to greater spread between CASA and TMD pricing ◆ HSBC Hong Kong up 13ppts; Hang Seng Bank up 22ppts Time deposits represent c.50% of system deposits (up 15ppts YoY) 78 54#56Hong Kong loans and advances Hong Kong loans and advances 10% 7% $322bn 52% 31% Corporate Mortgages Other retail Banks Wholesale credit quality Strategy 4022 results Appendix Total gross loans and advances to customers and banks of $322bn (4Q21: $329bn) by booking location (wholesale: $189bn; personal: $133bn) FY22 ECL charge of $1,680m (CMB: $1,276m, WPB: $139m, GBM $267m), vs. $608m in FY21 (CMB $241m, WPB: $112m, GBM: $255m) 4022 average LTV on new retail mortgage lending was 59% (4Q21: 62%); average LTV for the overall retail mortgage portfolio was 57% (4Q21: 47%) Gross loans and advances to customers and banks by IFRS 9 stage, $bn Corporate lending by sector, $bn 3% 2% 4Q22 4021 CRR 1-3 L&A ECL allowance ECL % L&A ECL ECL % L&A 32.5 allowance L&A 31% CRR 4-6 56.2 $189bn Stage 1 283.7 0.2 0.1% 291.3 0.2 0.1% CRR 7-8 64% Stage 2 32.8 1.0 3.1% 35.3 0.9 2.5% 6.3 Impaired Stage 3* 5.6 2.2 39.0% 2.2 0.9 40.1% 8.7 $166bn POCI 0.1 Total 322.2 0.0 38.6% 3.4 0.2 328.9 0.0 13.2% 1.9 17.2 Personal credit quality Stage 2 loans as a % of total L&As to customers and banks 24.6 5% 20.8 10% Band 1-3 20% 18% 15% 15% Band 4-6 12% 12% Wholesale $133bn 10% Real estate activities Wholesale and retail Transporting and storage Power/utility supply Band 7 4% 4% 4% 4% 3% Personal trade NBFI Other 0% 95% 4Q21 1022 2022 3Q22 4Q22 Manufacturing * Stage 3 loans includes c. $3bn of exposure relating to mainland China CRE 55#57Mainland China business performance FY22 financial performance Regional highlights $m FY22 FY21 A NII 1,794 1,604 12% Non-NII 2,379 1,932 23% Revenue 4,173 3,536 18% مرا FY22 revenue up 18% vs. FY21; PBT excluding associates of $1bn ECL (328) (80) >(100)% Costs (2,836) (2,622) (8)% Associates 2,386 2,372▲ 1% PBT 3,395 3,206 6% Balance sheet, $bn 50 55 57 50 FY21 FY22 Customer loans Customer accounts Strategy 4022 results Appendix D 1m registered users on the Pinnacle River app. c.1,300 wealth planners are now digitally enabled in mainland China Private Banking expansion: launched new offices in Hangzhou and Chengdu Launched $5bn GBA sustainability fund to provide financing for businesses to capture sustainable opportunities while transitioning to a low-carbon economy Launched a new initiative to provide financing to SMEs in strategic emerging industries worth RMB3 billion Launched Trade Connect to offer faster, more efficient and digitised trade financing services for businesses trading in the Greater Bay Area 56#58Mainland China risk exposure Mainland China risk exposure, $bn Wholesale lending analysis, $bn Strategy 4022 results Appendix Corporate lending by sector, $bn 178.8 178.4 176.0 176 1.9 2.1 2.2 34.7 33.9 40.1 Automotive Wholesale 36.6 36.1 34.0 Mortgages $186bn Transportation Consumer Goods & Retail Metals & Mining 4.43.9 Other Sectors Credit cards 4.7 4.5 35.0 and other 105.6 106.2 99.7 Public Utilities 6.4 consumer 19 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 $186bn comprising: Wholesale $176bn* (of which 52% is onshore); Retail: $10bn. These amounts exclude MSS financing Wholesale lending by counterparty type and CRR NBFI $99.7bn 4Q21 2022 4022 Construction, 10.5 Materials NBFI Banks Sovereign & public sector Corporates & Engineering 13.5 16.8 IT & Electronics Real Estate 79 Customer risk 1-3 4-6 7-8 9+ Total rating 2.1 0.1 2.2 c.16% of corporate lending is to foreign-owned enterprises Banks 39.9 0.2 40.1 ◆ c.38% of lending is to state-owned enterprises Sovereign & 34.0 34.0 public sector ◆ c.46% of lending is to private sector owned enterprises Gross loans and advances to customers of $51bn booked in mainland China (Wholesale: $41bn; Retail $10bn) Corporates 63.4 29.5 2.8 4.0 99.7 Total 139.4 29.7 2.8 4.0 176.0 * Wholesale drawn risk exposure of $176bn includes on balance sheet lending as well as issued off balance sheet exposures, excludes unutilised commitments 57#59UK ring-fenced bank Strategy 4022 results Appendix 01/20 01/21 01/22 01/23 FY22 financial performance WPB CMB Revenue £7.9bn 27% (FY21: £6.2bn) 28% Personal gross mortgage balances, £bn Mortgages: Wholesale gross customer loans, £bn 110.7 118.1 125.5 o/w: WPB £4.3bn 90+ day delinquency trend 82, % 0.23 o/w: CMB £3.5bn (FY21: £3.4bn) 28% 0.25 +2%* 0.20 0.17 70.2 66.1 67.4 (FY21: £2.7bn) FY20 FY21 FY22 ECL ₤(0.5)bn >(100)% 0.15 0.17 (FY21: £1.0bn) 1% c.£24bn c.£28bn c.£28bn 0.10 Costs £(3.4)bn (FY21: £(3.5)bn) 7% PBT £4.0bn (FY21: £3.8bn) o/w: WPB £1.8bn 11% (FY21: £1.6bn) 3% o/w: CMB £2.2bn FY20 FY21 FY22 (FY21: £2.1bn) 4% Customer loans £204.1bn Reported RWAS £92.4bn (FY21: £83.7bn) (FY21: £195.5bn) 10% ♦ Revenue up 27% vs. FY21, reflecting rising interest rates and lending growth WPB up 28% primarily due to rates and higher deposit balances ◆ CMB up 28%, primarily due to rates, re-pricing initiatives in GPS and higher balances ◆ More normalised FY22 ECL charge of 24bps of average loans ◆ Costs down 1% as increased technology investments and one-off cost of living payments made to staff were more than offset by management cost control action RWAs up 10%, primarily due to regulatory changes CYTD gross lending Continued strength in mortgage lending through FY22: 7.7% mortgage stock market share 80; gross new lending share 80 of 8.9% Buy-to-let mortgages of £3.8bn, up £0.8bn vs. FY21 Mortgages on a standard variable rate of £2.4bn Interest-only mortgages of £18.7bn81 New originations average LTV of 67%; average portfolio LTV of 50% Personal gross unsecured lending balances, £bn Mortgage delinquencies are in line with pre-pandemic levels. Customers continue to show good resilience and notable stress has not been observed in this portfolio Credit cards: 90-179 day delinquency trend 82, % 0.89 1.0 5.9 6.0 7.7 7.2 7.7 5.4 0.5 0.57 Credit cards FY20 Other personal lending FY21 FY22 0.0 01/20 01/21 01/22 01/23 Credit cards: despite higher spending than pre-pandemic, balances are down YoY due to the run-off of the John Lewis card portfolio and increased repayments Other personal lending up £0.5bn vs. FY21, despite subdued loan demand in 4Q22 0.42 Card delinquencies remain below pre-pandemic levels. Uptick in delinquencies in 2H22 due to the run-off of the relatively lower risk John Lewis portfolio Gross customer loans up 2%. Underlying growth more than offset Covid-19 related lending repayments of c.£1.8bn during the year (FY22 Covid-19 lending balances are £7.4bn) Launched £15bn SME fund to provide support for British businesses to grow Launched £250m growth lending proposition to support high-growth, tech scale-ups which have a clear path to profitability HSBC Kinetic now has >50k active customers 58#60Held-for-sale businesses FY22 Canada and France retail performance $bn* Canada Revenue 1.9 France retail 0.6 ECL (0.1) Operating expenses (1.0) (0.5) Reported PBT 0.8 0.1 Customer loans+ 55.2 25.0 Customer accounts+ 60.6 22.3 RWAs 31.9 5.0 Strategy 4022 results Appendix In 2022, we reclassified our Canada, France retail, Greece and Russia businesses as held-for-sale. During the year we recognised a $2.4bn impairment loss on France and a $0.4bn loss associated with Greece and Russia. All sales are expected to complete in 2023 The sale of HSBC Canada for a cash consideration of CAD13.5bn is expected to generate a pre-tax gain of $5.6bn on completion based on 4Q22 figures83 Our Group 4022 CET1 ratio of 14.2% includes a c.(5)bps impact from FX hedges relating to the proceeds from the planned sale of our Canada business; potential for a further c.(5)bps of impact as hedges move to deal contingent Completion of the Canada sale is expected to generate around 1.4ppts favourable impact on CET1 ratio in 2023 and the France retail sale 0.1ppts favourable impact Around $0.4bn of operating expenses from the businesses ($0.3bn Canada, $0.1bn France) relate to Group recharges and other costs and will not transfer as part of the planned transactions. We have plans to reduce up to 50% of these costs starting from 2024 * On a reported basis Of which $1.3bn NII * Balances included in held-for-sale are 'assets held-for-sale' and 'liabilities of disposal groups held-for-sale'; Greece and Russia balances in HFS: loans $0.3bn, accounts $2.3bn 59#61Impacts of financial investments Hold-to-collect-and-sell ('HTC&S') portfolio, $bn 347 (27)% 255 FY21 FY22 Strategy 4022 results Appendix As part of our interest rate hedging strategy, we hold a debt portfolio of financial investments measured at fair value through other comprehensive income (FVOCI), which are classified as hold-to-collect-and-sell. This portfolio totalled $255bn at FY22, down $92bn (27%) vs. FY21 The increase in term market yield curves in FY22 drove a $5.5bn fall in the fair value of securities through OCI (0.7ppts of CET1). Over time, these adverse OCI movements will unwind as the instruments reach maturity, although not all instruments will necessarily be held to maturity We have taken actions in FY22 to reduce the duration risk of this portfolio and the overall capital volatility of our hedging instruments, including decreasing the amount of securities held under HTC&S (measured at FVOCI) and prospectively increased those held under to hold-to-collect (measured at amortised cost) Risk reduction has lowered the HTC&S stressed value at risk exposure of this portfolio from $3.6bn at the end of 2021 to $2.2bn at the end of 2022 60#62PBT by region and dividends by subsidiary Strategy 4022 results Appendix Profit/(loss) before tax by region, $bn Dividends paid by subsidiary in period, $m FY22 FY19 FY22 FY19 Europe 4.8 (0.3) HSBC UK Bank plc 2,192 424 o/w UK RFB 5.0 2.8 HSBC Bank plc* 3,689 o/w HSBC Bank plc 2.1 0.7 The Hongkong and Shanghai Asia 14.3 18.5 Banking Corporation Ltd 4,092 8,529 o/w Hong Kong 6.8 12.1 Other 2,362 1,755 MENA 1.8 1.5 Total ordinary dividends paid 8,646 14,397 North America 2.1 1.4 AT1 and preference dividends 832 720 o/w US Latin America o/w Mexico 1.0 0.6 1.0 0.6 Total dividends paid to HSBC Holdings Plc 9,478 15,117 0.7 0.7 Memo: ordinary dividend to Group PBT 6.3 6.1 24.0 21.7 shareholders declared, $bn84 Asia FY22 contribution to Group adjusted profits of 60%, vs. 85% in FY19 FY22 Asia subsidiary dividends were 47% of ordinary dividends paid by subsidiaries, vs. 59% in FY19 ◆ FY19 Asia subsidiary dividends paid during 2019 related to both FY18 and FY19 reporting periods *In 2022, HSBC Bank plc paid a special dividend of £850m to Group, recorded as a return of capital; 2019 HSBC Bank plc dividend figure includes a return of capital of £1,277m to Group classed as dividend payment 61#63Glossary Strategy 4022 results Appendix AIEA AM ANP Average interest earning assets Asset Management Annualised new business premiums AT1 BoCom Additional Tier 1 Bank of Communications Co. Limited, an associate of HSBC LTV MENA Bps Basis points. One basis point is equal to one-hundredth of a percentage point MSS CASA Current accounts and savings accounts NAV CET1 Common Equity Tier 1 NBFI Corporate Centre (CC) Corporate Centre comprises Central Treasury, our legacy businesses, interests in our associates and joint ventures and central stewardship costs NCI NIM CMB CRE CRR Commercial Banking, a global business Commercial Real Estate Customer risk rating NNIA CTA Costs to achieve C&L Credit & Lending PAOS DBS DCM Digital Business Services Debt Capital Markets PBT PD DPS Dividend per share Ppt DTA Deferred tax asset PRP ECL 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 PVIF SABB ECM EMEA EPS FVOCI GBA GBM Global Banking and Markets, a global business GPB Global Private Banking GPS Group GTRF GSSS HFS HTC&S Equity Capital Markets Europe, the Middle East and Africa Earnings per share Fair value through other comprehensive income Greater Bay Area SEA SPE ROTE RWA T&E IFRS Legacy credit NPS NRFB OCI International Financial Reporting Standard A portfolio of assets including securities investment conduits, asset-backed securities, trading portfolios, credit correlation portfolios and derivative transactions entered into directly with monoline insurers Loan to value Middle East and North Africa, including Türkiye Markets and Securities Services Net asset value Non-bank financial institution Non-controlling interests Net interest margin Net new invested assets Net promoter score Non ring-fenced bank in Europe and the UK Other Comprehensive Income Profit attributable to ordinary shareholders Profit before tax Probability of default Percentage points Performance related pay Present value of in-force insurance contracts The Saudi British Bank, an associate of HSBC Southeast Asia, includes Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam Special purpose entity Return on average tangible equity Risk-weighted asset Travel and entertainment TMD Time deposits TNAV Global Payments Solutions (formerly GLCM: Global Liquidity and Cash Management) HSBC Holdings plc and its subsidiary undertakings Global Trade and Receivables Finance Green, social, sustainability and sustainability-linked Held-for-sale Hold to collect and sell UK RFB / RFB UNGP VNB WPB Tangible net asset value HSBC UK, the UK ring-fenced bank, established July 2018 as part of ring fenced bank legislation United Nations Guiding Principles Value of new business written Wealth and Personal Banking, a global business XVAS Credit and Funding Valuation Adjustments 62#64Footnotes Strategy 4022 results Appendix 1. Source: Coalition Greenwich Competitor Analytics. Based on HSBC's internal business structure and internal revenue numbers. Global Trade Finance rank at 1H22 and based on the following peer group: BAC, BARC, BNPP, CITI, DB, JPM, SG, SCB, WF; Global Foreign Exchange rank at 3Q22 YTD and based on the following peer group: BAC, BARC, BNPP, CITI, CS, DB, GS, JPM, MS, SG, UBS In respect of FY22 23 4. 5. 6. 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. 'Booking location' represents the geography of the client's entity or transaction booking location where this is different from where the client group's global relationship is managed. 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 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 in more than one market; Non-Resident customers are those whose address is different from market; Resident Foreigners are customers whose nationality, or country of birth for non-resident Indians and overseas Chinese is different to market we bank them in. Note, customers may be counted more than once when banked in multiple countries. Total WPB clients of c.38m Based on 10 markets (Hong Kong excl. Hang Seng, mainland China, the UK, UAE, Malaysia, India, Singapore, Australia, Channel Islands and Isle of Man and the US), based on 9M22 data 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 7. Wholesale transaction banking includes GPS, GTRF, FX and Securities Services 781 Cumulative RWA saves under our transformation programs includes $9.6bn of accelerated saves made over 4Q19 10. 4th largest health insurer based on gross premiums. GIAS data as of September 2022 23. Trade association UK. Data as of 30 September 2022 24. Bank of England. Data as of 31 December 2022 25. Legal entity basis. HSBC Mexico 26. Comision Nacional Bancaria y de Valores. Data as of 30 November 2022 27. Through Employee Banking Solutions, primarily payroll lending proposition 28. Global business cost excludes technology spend 29. Technology costs in operating expenses trends include transformation saves and are presented on a net basis Operations cost within DBS 30. 31. Includes Global Functions, centrally managed costs and other DBS 32. Operations personnel within DBS 33. 34. Primarily comprises the assets relating to the planned sale of our retail banking operations in France and our banking business in Canada reported on the Group balance sheet under "assets held for sale" Hong Kong Insurance Authority Statistics. Includes Hang Seng. 2022 data as of 30 September 2022 35. Unless otherwise stated, regulatory capital ratios and requirements are based on the transitional arrangements of the Capital Requirements Regulation in force at the time. These include the regulatory transitional arrangements for IFRS 9 'Financial Instruments'. The leverage ratio is calculated using the end point definition of capital and the IFRS 9 regulatory transitional arrangements, in line with the UK leverage rules that were implemented on 1 January 2022, and excludes central bank claims. Comparatives for 2021 are reported based on the disclosure rules in force at that time, and include claims on central banks. References to EU regulations and directives (including technical standards) should, as applicable, be read as references to the UK's version of such regulation and/or directive, as onshored into UK law under the European Union (Withdrawal) Act 2018, and subsequently amended under UK law 36. Reported ROTE is computed by adjusting annualised reported results for PVIF and for impairment of goodwill and other intangible assets (net of tax), divided by average reported equity adjusted for goodwill, intangibles and PVIF for the period 37. Revenue from the sale of Global Markets products to WPB customers Revenue from the sale of Global Markets and Global Banking products to CMB customers Amount of Software Releases for a Notional team of 10 People on a bank wide basis. Stats are November 2021 and November 2022 38. 8. 39. West refers to Americas and Europe. East refers to Asia and the Middle East 9. Based on tangible equity ('TE') of the Group's major legal entities excluding associates, holding companies and consolidation adjustments 40. 41. % of the Group's technology services that are on the private or public cloud 12. Hong Kong Monetary Authority system deposits. Data as of 30 November 2022 43. 13. Hong Kong Insurance Authority Statistics. Market shares and ranking based on ANP, HSBC Life Hong Kong and Hang Seng Insurance combined. Data as of 30 September 2022 44. Total number of digital sales (# units) as a percentage of the total WPB sales (# units) across retail % of CMB customers who are active on Internet Banking Channels in the last 3 months 45. Euromoney Trade Finance Survey, 2022 11. Data at 31 December 2022. AUM source: Association of Mutual Funds in India (Average AUM) 42. % of WPB customers who have logged into a HSBC Mobile App at least once in the last 30 days 14. 15. HSBC internal analysis on 2021 annual reports of foreign banks operating in mainland China (Citi, Bank of East Asia, Siam Commercial Bank, Deutsche Bank, DBS, United Overseas Bank, OCBC, Agricultural Bank of China) 16. Asia adjusted PBT of $14,334m excl. Hong Kong adjusted PBT of $6,761m and mainland China adjusted PBT of $3,395m 17. Excludes Global Service Centres 18. HSBC internal analysis, based on internal MI compared with data from the Ministry of Commerce. Data as of 30 November 2022 19. HSBC internal analysis, based on internal MI compared with RBI FX Market Turnover Data. Data as of 31 December 2022 20. Includes: Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam 21. Corporate Treasury Awards, 2022. Countries include Indonesia, Malaysia, Philippines, Singapore and Thailand 22. Dealogic, as of December 2022 Refers to employee Snapshot survey response to the question 'The work processes in this organisation allow employees to work efficiently'; the global FS benchmark includes data from a number of financial organisations and is calculated based on a rolling two-year average 46. Includes all Group General Managers, as well as roles meeting the following criteria: critical in delivery of business strategy; regulator identified as critical; responsible for largest growth opportunities; significant impact on risk position of the Group; responsible for enterprise wide transformational change programmes; significant barriers to entry into the role Refers to employee Snapshot survey response to the question 'I feel confident about this company's future' Employee engagement index represents the average % of respondents who would recommend HSBC as a great place to work, are proud to say they work for HSBC and feel valued at HSBC 47. 48. 49. Total learning hours as recorded in Degreed (Learning Experience Platform) in terms of individual learning content consumption across content items that are tagged with Sustainability, Digital or Data skills 63 33#65Footnotes 50. Senior leadership is classified as those at Band 3 and above in our global career band structure. Employees with an 'Undeclared' or 'Unknown' gender have been incorporated into the 'Male' category Strategy 4022 results Appendix 73. A revised approach to insurance-related adjustments has been effective from 30 September 2022. This has had no impact on overall CET1 capital 51. Individuals at Band 3 and above in our global career band structure who identify as being of black heritage in the US and the UK 52. The volume amounts stated include; capital markets/advisory activities, balance sheet related transactions that capture the limit of the facility at the time it was provided and the net new flows of sustainable investments (Assets under Management); 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 53. In determining our dividend payout ratio we will exclude material significant items (including the planned disposal of our retail banking operations in France and the planned sale of our banking business in Canada) from reported earnings per share 54. On an IFRS 4 basis and retranslated for foreign exchange movements. We intend to update our NII guidance at or before our 1Q23 results to incorporate the expected impact of IFRS 17 Includes held-for-sale balances 55. 56. Technology cost increases in quarterly walks are presented on a gross basis (excl. saves) 57. On an IFRS 4 basis and retranslated for foreign exchange movements. There may also be an incremental adverse impact from retranslating the 2022 results of hyperinflationary economies at constant currency 58. Regulatory profits 59. Medium term is defined as 3-4 years from 1 January 2020; long term is defined as 5-6 years from 1 January 2020 60. Based on 10 markets (Hong Kong excl. Hang Seng, mainland China, the UK, UAE, Malaysia, India, Singapore, Australia, Channel Islands and Isle of Man and the US), based on 9M22 data 61. Alternative Performance Measure (APM) 62. Currently includes "Holdings and Other" 63. Less than 1% of employees will not yet have completed due to new joiners to the bank being given 45 days to complete their mandatory training 64. Source: 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 65. For accounting purposes, Argentina was deemed a hyperinflationary economy from 1 July 2018 and Türkiye from 1 June 2022 66. YTD ROTE by Global Business excludes significant items. RoTE methodology annualises Profits Attributable to Shareholders, including ECL, in order to provide a returns metric. ROTE by Global Business considers AT1 Coupons on an accruals basis, vs. Reported RoTE where it is treated on a cash basis 67. Included within held for sale at 4021 were balances associated with our US mass market retail banking business, which were disposed of during 1Q22. Included within assets held for sale at 3Q22 were balances primarily related to our retail banking operations in France. Included within held for sale at 4022 were balances primarily relating to our retail banking operations in France and our banking business in Canada 68. 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 69. Included within held for sale at 4Q22 were balances relating to our banking business in Canada, as well as balances relating to planned sale of our businesses in Greece and Russia. 3022 included balances relating to the planned sale of our businesses Greece and Russia 70. A reconciliation of reported RWAs to adjusted RWAs can be found in the 'HSBC Holdings plc 4Q 2022 Datapack' 71. Data as of 31 Dec 2022 72. Differences between shareholders' equity and tangible equity drivers primarily reflect goodwill and other intangible impairment, PVIF movements and amortisation expense within 'Profit Attributable to Ordinary shareholders', FX on goodwill and intangibles within 'FX', and intangible additions and other movements within 'Other' 74. Excludes Hang Seng 75. Source: HKMA. Statistics of Payment Cards issued in Hong Kong 76. November 2022. Source: Hong Kong Monetary Authority 77. 78. Total includes HSBC Hong Kong, Hang Seng and other Hong Kong entities Source: HKMA. December 2022 data 79. 80. 81. 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 Source: Bank of England Includes offset mortgages in first direct, endowment mortgages and other products 82. Excludes Private Bank 83. Inclusive of recycling of c.$0.5bn in foreign currency translation reserve losses. The estimated pre-tax profit on the sale will be recognised through a combination of the consolidation of HSBC Canada's results into the Group's financial statements until completion, and the remaining gain on sale recognised at completion. There would be no tax on the gain recognised at completion 84. Approximate distribution for dividends declared in respect of FY22 ht 64#66Disclaimer Important notice Strategy 4022 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, geopolitical tensions such as the Russia-Ukraine war, the impact of the Covid-19 pandemic or as a result of data limitations and changes in applicable methodologies in relation to ESG related matters). Any such forward-looking statements are based on the beliefs, expectations and opinions of the Group at the date the statements are made, and the Group does not assume, and hereby disclaims, any obligation or duty to update, revise or supplement them if circumstances or management's beliefs, expectations 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 2021 filed with the Securities and Exchange Commission (the "SEC") on Form 20-F on 23 February 2022 (the "2021 Form 20-F"), our 1Q 2022 Earning Release furnished to the SEC on Form 6-K on 26 April 2022 (the "1Q 2022 Earnings Release"), our Interim Financial Report for the six months ended 30 June 2022, furnished to the SEC on Form 6-K on 1 August 2022 (the "2022 Interim Report"), our 3Q 2022 Earnings Release, furnished to the SEC on Form 6-K on 25 October 2022 (the "3Q 2022 Earnings Release") and our Annual Report and Accounts for the fiscal year ended 31 December 2022 available at www.hsbc.com and which we expect to file with the SEC on Form 20-F on 22 February 2023 (the "2022 Form 20-F"). Alternative Performance Measures This Presentation contains non-IFRS measures used by management internally that constitute alternative performance measures under European Securities and Markets Authority guidance and non-GAAP financial measures defined in and presented in accordance with SEC rules and regulations ("Alternative Performance Measures"). The primary Alternative Performance Measures we use are presented on an "adjusted performance" basis which is computed by adjusting reported results for the period-on-period effects of foreign currency translation differences and significant items which distort period-on-period comparisons. Significant items are those items which management and investors would ordinarily identify and consider separately when assessing performance in order to better understand the underlying trends in the business. Reconciliations between Alternative Performance Measures and the most directly comparable measures under IFRS are provided in our 2021 Form 20-F, our 1Q 2022 Earnings Release, our 2022 Interim Report, our 3Q 2022 Earnings Release and our 2022 Form 20-F, when filed, each of which are available at www.hsbc.com. Information in this Presentation was prepared as at 21 February 2023. 65#67Empty