Investor Presentaiton

Appendix Footnotes 1. 2. 3. A number of our clients were in need of financial relief as a result of the economic slowdown brought on by the Covid-19 pandemic, which we sought to address in a responsible way. This included extending our own relief measures such as payment holidays and loan moratoria, in addition to other market-wide and government-backed schemes to our customers. As reported at 2020, over 898 thousand accounts were impacted by these measures in 17 major markets, including over $52bn of relief extended to wholesale customers and over $26bn extended to personal customers 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'. Following the end of the transition period after the UK's withdrawal from the EU, any reference to EU regulations and directives (including technical standards) should be read as a reference to the UK's version of such regulation and/or directive, as onshored into UK law under the European Union (Withdrawal) Act 2018 We intend to transition towards a target payout ratio of between 40% and 55% of reported earnings per ordinary share ('EPS') from 2022 onwards, with the flexibility to adjust EPS for non-cash significant items, such as goodwill or intangibles impairments 4. Ticks and crosses refer to progress in FY20 against the FY20 plans, as communicated in the Feb-20 Update 5. Cost saves include 2020-22 cost programme saves as announced at Feb-20 and 2019 cost initiatives 4569% 6. 7. 8. 9. Technology costs in operating expenses trends include transformation saves and are presented on a net basis Technology cost increases in full-year and quarterly walks are presented on a gross basis (excl. saves) Global Infrastructure Facility (World Bank), and Climate Policy Initiative under the auspices of the One Planet Lab 27. Based on tangible equity of the Group's major legal entities excluding Associates, Holdings Companies, consolidation adjustments, and any potential inorganic actions 28. WPB TE as a share of TE allocated to the Global Businesses (excluding Corporate Centre). Excludes Holdings Companies, consolidation adjustments any potential inorganic actions 29. 2015-19 adjusted revenue CAGR 30. Source: IMF, October 2020 31. Source: internal and external benchmarks, data and industry experts. CAGR from 2019 to 2025 32. Source: IHS Markit Comparative World Overview, October 2020 33. Source: PwC, January 2019. Total client assets include pension funds, insurance companies, sovereign wealth funds, high net worth individual and mass affluent. AUM represents estimated share of total client assets managed on behalf of clients 34. Deposits: including HASE; Source HKMA, December 2020. Mortgage by Legal mortgage units, Source: mReferral, Nov 2020 YTD; Credit Card market share in terms of Receivables; September 2020 35. HK Trade Financing market share of 19.1% (including HASE); December 2020, Source: HKMA; Rank #1 based on other banks' disclosures in their annual reports 36. Source: Dealogic, including M&A, ECM, DCM and Loans for years 2018, 2019, 2020 Ultimate Parent Companies i.e. 'Mastergroups' 37. 38. HSBC presence in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. Reported Revenue FY19, including revenue from recoveries by the Group's Service and Technology centres from other Group entities 39. HK Wealth includes Mandatory Provident Fund and Mutual Funds AUM, incl. HASE. source: Mercer October 2020; Insurance: including HASE. Source: Hong Kong Insurance Authority; September 2020 40. By AUM. Source: Asian Private Banker; 2019 Includes $1.1bn of gross RWA saves recognised following the transfer of certain customers to CMB. These saves have not been includes as part of the Group's gross RWA saves The PRA has published a consultation on the reversal of the revised regulatory treatment of software assets; as such we have not considered these related capital benefits in our distributions 10. Leverage ratio at 31 December 2020 is calculated using the CRR II end-point basis for additional tier 1 capital and the CRR regulatory transitional arrangements for IFRS9; Leverage ratio includes CET1 benefit from the change in treatment of software assets, however the impact is immaterial Source: Datastream. 3 month interbank offered rates Source: Bain Covid-19 Pulse Survey, July 2020; Overall sample = 10k 11. 12. 13. 4Q20 v 4Q19 14. Source: Dealogic 15. Number of companies that have set or committed targets under the Science Based Targets Initiative (SBTi) Expected. 'Growth investment': investment in strategic business growth (including build-out of front line staff). Over 5 years, 2020 2025 16. 17. CMB platforms will be tested in Asia and rolled out across globally thereafter 18. Including GLCM and GTRF revenue 19. Excludes any inorganic actions 20. 21. Medium-term defined as 3-4 years; long-term is defined as 5-6 years Gross RWA saves of $24.4bn achieved in 2020, largely offset by changes in asset size and quality, and updates to models, methodology and policy. 2020 costs included a number of adverse items including real estate asset impairments, litigation costs, an increase in the Single Resolution Fund contribution and reduced capitalisation following the write-off of intangible assets 'Investment' includes strategic business growth (including build-out of front line staff), and other strategic, regulatory, and technology investment (including amortisation) 22. 23. 24. The carbon emissions associated with our portfolio of our customers Source: Environmental Finance Bond Database 25. Key initiatives of philanthropic programme include scaling climate innovation, renewable energy in emerging markets and nature-based solutions 26. Finance to Accelerate the Sustainable Transition-Infrastructure ('FAST-Infra') in partnership with the IFC, the OECD, the 41. Excluding HASE; December 2020 42. Includes revenue from recoveries by the Group's Service and Technology centres from other Group entities 43. Statistics Bureau of Guangdong Province, Guangdong Sub-Administration of Customs General Administration, Census and Statistics Department of the Government of Hong Kong SAR, Statistics and Census Service of Macao SAR Boston Consulting Group, 2017 / Scorpio; 2019 44. 45. Singapore Economic Development Board / Cushman Wakefield analysis; 2016 46. 47. 48. Client revenue is based on HSBC internal client management information and differs from reported revenue. Client revenue is the revenue from banking clients in GBM and CMB and excludes Global Markets trading revenue, Principal Investments, Business Banking and non-customer revenue, for example allocations from Corporate Centre. Inbound revenue, which is client revenue booked in a country where the relationship is managed in a different country, as a percentage of total client revenue booked in Asia To be achieved over the medium to long term. Medium-term defined as 3-4 years; long-term is defined as 5-6 years Source: internal and external benchmarks, data and industry experts, 2019. N. America and Japan only include Private Banking; AuM number are inclusive of Insurance 49. Includes APAC ex-Japan onshore and offshore (booked in HK, Singapore and global centres) Inclusive of Premier & Jade deposits and AUM, GPB client assets and AMG AUM 50. 51. On a wealth AUM and GPB client assets basis 52. Of target client base within CMB 53. Comprised of 3K Pinnacle wealth planners and >2K client facing wealth managers 54. Wealth balances include Premier & Jade deposits and AUM 55. AMG AUM also included as part of Premier, Jade and GPB balances 56. 57. To be achieved over the medium to long term, including doubling GPB PBT and ROTE By AUM in the medium to long-term 58. With presence in 10 cities (3 hubs and 7 satellite cities) 82