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Appendix Glossary AIEA ANP B2B2C Average interest earning assets Annualised new business premiums Business to Business to Customer Business as usual BAU Bps Basis points. One basis point is equal to one-hundredth of a percentage point CAGR Compound annual growth rate CET1 Common Equity Tier 1 MENA MT NCI LCR LDR Legacy credit Liquidity coverage ratio Loan-to-deposit ratio 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 Middle East and North Africa Markets Treasury. Formerly known as Balance Sheet Management (BSM) Non-controlling interests Corporate Centre Corporate Centre comprises Central Treasury, our legacy businesses, interests in our associates and joint ventures, central stewardship costs and the UK bank levy NII Net interest income NIM Net interest margin CMB Commercial Banking, a global business NRFB CRD IV Capital Requirements Directive IV PBT Non ring-fenced bank in Europe and the UK Profit before tax CRR Customer risk rating. CRR 1-3 considered Strong to Good credit quality (roughly equivalent to an external credit rating of AAA to BBB-); CRR 4-5 considered Satisfactory (BB+ to BB-); CRR 6+ considered Sub-standard, broadly equivalent to an external rating of B- or below PD Probability of default POCI CRR II The amending Regulation to the CRD IV package which implements changes to the own funds regime and to MREL and elements of the Basel III Reforms in EU legislation. These changes follow a phased implementation from June 2019 Ppt PVIF CTA Costs to achieve RBWM C&L Credit and Lending ECL FICC 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. Fixed Income, Currencies and Commodities UK RFB ROEV Purchased or originated credit-impaired Percentage points Present value of in-force insurance contracts Retail Banking and Wealth Management, a former global business now part of Wealth and Personal Banking HSBC UK, the UK ring-fenced bank, established July 2018 as part of ring fenced bank legislation Return on Embedded Value ROTE Return on average tangible equity GBM Global Banking and Markets, a global business RWA Risk-weighted asset GLCM Global Liquidity and Cash Management TNAV Tangible net asset value GPB Global Private Banking, a former global business now part of Wealth and Personal Banking VNB Value of new business written Group HSBC Holdings plc and its subsidiary undertakings WPB GTRF Global Trade and Receivables Finance XVAs HIBOR IFRS IRB Hong Kong Interbank Offered Rate International Financial Reporting Standard Internal ratings-based Wealth and Personal Banking. A global business created from the consolidation of RBWM and GPB Credit and Funding Valuation Adjustments 81

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