Investor Presentaiton
Credit 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:
ā This includes $0.6bn for mainland China
CRE exposures
ā 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
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