Investor Presentaiton
UK ring-fenced bank
Strategy
2023 results
Appendix
1H23 financial performance
WPB
CMB
Revenue
£6.0bn
67%
(1H22: £3.6bn)
24%
Personal gross mortgage balances, £bn
90+ day mortgages delinquency
Wholesale gross customer loans, £bn
125.5
126.4
trend 47, %
122.5
o/w: WPB
£2.4bn
0.23
(1H22: £2.0bn)
0.25
o/w: CMB
£3.5bn
98%
0.20
(1H22: £1.6bn)
1H22
FY22
1H23
ECL
£(0.3)bn
>(100)%
(1H22: £(0.0)bn)
2%
0.15
0.17
+6%*
0.20
0.17
71.6
67.2
67.4
c.£13bn
c.£28bn
c.£11bn
0.10
Costs
£(1.8)bn
PBT
(1H22: £(1.8)bn)
>100%
YTD gross lending
01/20
01/21
01/22
01/23
£3.9bn
(1H22: £1.8bn)
o/w: WPB
£1.2bn
89%
7.8% mortgage stock market share 48; gross new lending share of 9.7% 49
Buy-to-let mortgages of £3.9bn, up £0.1bn vs. FY22
(1H22: £0.7bn)
o/w: CMB
£2.6bn
>100%
Customer loans
Reported RWAS
(1H22: £1.2bn)
3%
Mortgages on a standard variable rate of £2.6bn
Interest-only mortgages of £18.8bn 50
£209.6bn
£99.1bn
(FY22: £204.1bn)
7%
(FY22: £92.4bn)
New originations average LTV of 64%; average portfolio LTV of 52%
◆ Mortgage delinquencies remain low in absolute terms
1H22
FY22
1H23
Revenue up £2.4bn. WPB up £0.5bn (24%) vs.
1H22 and CMB up £2.0bn (>100%), including the
£1.2bn provisional gain on the acquisition of SVB
UK
◆ ECL up £0.3bn, primarily in CMB, split between
stage 1-2 and stage 3 charges
Costs down 2%, primarily due to the end of our
restructuring programme, offset by technology
spending, wage inflation and costs associated with
HSBC Innovation Banking
Personal gross unsecured lending
balances, £bn
Credit cards 90-179 day delinquency
trend 47, %
0.89
1.0
7.5 7.7 7.9
6.1 5.4 5.8
0.5
0.57
Credit cards
1H22
FY22
Other personal
lending
1H23
0.0
01/20
Credit card balances down £0.3bn vs.
1H22. Excluding the roll-off from the John
Lewis Portfolio, balances up c.£0.8bn
01/21
01/22
01/23
Customers continue to show financial
resilience, card delinquencies remain
below pre-pandemic levels with only
modest increases vs. the floor in 2022
0.41
Gross customer loans up ₤4.2bn,
including loans acquired from SVB UK
Continued strength in transaction
banking:
Receivables Finance Turnover market
share of 27.8%, up 0.8ppts vs. FY22
GPS revenue up +118% vs. 1H22, in
part supported by 12% fee income
growth
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