Investor Presentaiton

HSBC SFH Funding Strategy Rationale for covered bonds issuance ■ Fund asset growth and refinance maturing debt ■ Manage HSBC France's consolidated liability maturity profile HSBC SFH year end covered bonds balances 34 EUR bn, as at 30 June 2018 4.5 ☐ ■ Diversify investor base ■ Reduce overall cost of funds 4.3 4.3 3.3 3.3 2.3 1.0 0.2 ■ Use as collateral for refinancing operations 2018 2019 2020 2021 2022 2023 Covered bonds issuance strategy Mainly public benchmark series on various medium and long term maturities ■ Issuance mainly in EUR denominated units, with the ability to issue in other major currencies HSBC SFH covered bonds redemption profile 34 EUR bn, as at 30 June 2018 1.3 1.0 1.0 ■ Hard or soft bullets 0.2 0.2 ■ Public issuance, private placement or retained series 2018 2019 2020 2021 2022 2023 37 EUR CHF

View entire presentation