Investor Presentaiton
Footnotes
Strategy
2023 results
Appendix
1.
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9.
Our cost target reflects costs on constant currency, excluding notable items and the effect of re-translating prior
periods in hyperinflationary economies. The target also excludes costs associated with our acquisition of SVB UK 17.
and related international investments. See reconciliation on slide 26
Includes a provisional gain on acquisition of SVB UK
Includes the reversal of France impairment
Unless otherwise stated, regulatory capital ratios and requirements are on a reported basis, and are based on the
transitional arrangements of the Capital Requirements Regulation in force at the time. Leverage metrics exclude
central bank claims in accordance with the Prudential Regulation Authority's ('PRA') UK leverage framework.
References to EU regulations and directives (including technical standards) should, as applicable, be read as
references to the UK's version of such regulation or directive, as onshored into UK law under the European
Union (Withdrawal) Act 2018, and as may be subsequently amended under UK law
18.
YTD 2023
Amount of software releases for a notional team of 10 people on a bank wide basis
The volume of sustainable finance and investments amounts stated include; capital markets/advisory activities,
balance sheet related transactions that capture the limit of the facility at the time it was provided and the net
new flows of sustainable investments (Assets under Management); Green, Social, Sustainability and
Sustainability Linked labelled bonds that align to the International Capital Markets Association (ICMA) principles.
Capital markets/advisory volumes are recorded as HSBC's proportional bookrunner value. GSSS market share
sourced from Dealogic. Apportioned volume represents the portion of deal volume assigned to HSBC in deals
where HSBC is marked as a lender. Market shares exclude self-mandated deals
19. Banking NII is defined as Group NII excluding the central costs of funding trading and fair value income and third
party insurance NII. For full analysis, please see HSBC Holdings plc Interim Report
ROTE target is subject to the current market-implied path for global policy rates. Excludes the impact of material 20. The centrally allocated funding costs associated with funding net income from financial instruments held for
acquisitions and disposals
Client business differs from reported revenue as it relates to certain client specific income, and excludes certain
products (including Principal Investments, GBM "other" and asset management), Group allocations, recoveries
and other non-client related and portfolio level revenue. It also excludes Hang Seng. GBM client business
includes an estimation of client-specific day one trade specific revenue from MSS products, which excludes
ongoing mark-to-market revenue and portfolio level revenue such as hedging. Cross-border client business
represents the income earned from a client's entity domiciled in a different geography than where the client
group's global relationship is managed.
WPB international customers comprises customers who are either multi-country, non-resident or resident
foreigners within our International markets in the UK, Hong Kong, Canada, the US, India, Singapore, Malaysia,
UAE, Australia, mainland China and CIIOM. Multi-country are those customers who bank with HSBC in more
than one market; Non-Resident customers are those whose address is different from the market we bank them
in; Resident Foreigners are customers whose nationality, or country of birth is different to the market we bank
them in. Note, customers may be counted more than once when banked in multiple markets
Multiple as of May YTD
New to the bank customers: May YTD 2022 vs. May YTD 2023
10. GFX in GBM management view of income and GFX in CMB from cross sale of FX to CMB clients includes within
'Markets products, Insurance and Investments and Other'. GFX includes our emerging markets business
11. Regulatory approvals received for insurance broker branches in Shanghai, Guangdong and Beijing
12. GBM and WPB: Includes GM products to WPB customers
13. Between CMB and GBM: Includes Global Markets products to CMB customers and Global Banking products to
CMB Customers
trading or managed on a fair value basis results in an interest expense to Group NII which is fully offset by non-
NII which is reported in Corporate Centre
21. Including "of which Other Middle East Entities (Oman, Turkiye, Egypt and Saudi Arabia)" which do not
consolidate into HSBC Bank Middle East Limited
22. Including held-for-sale balances
23. The CET1 ratio itemised movement presented on the graph includes the impact of threshold deductions,
whereas the CET1 movement break-down in $bn excludes the impact of threshold deductions
24. Based on tangible equity ('TE') of the Group's major legal entities excluding associates, holding companies and
consolidation adjustments. Asia refers to The Hongkong and Shanghai Banking Corporation (HBAP)
25. Medium term is defined as 3-4 years from 1 January 2020; long term is defined as 5-6 years from 1 January
2020
26. In determining our dividend payout ratio we will exclude material notable items (including the agreed sale of our
banking business in Canada) from reported earnings per share
27. ROTE (YTD annualised) for 2Q23 includes a 10.5 percentage point favourable impact of the reversal of the
impairment losses relating to the planned sale of our retail banking operations in France
28.
Wealth deposits include Premier, Jade and Global Private Banking deposits, which include Prestige deposits in
Hang Seng Bank, and form part of the total WPB customer accounts balance
29.
ROTE (YTD annualised) for 2Q23 included a 6.2 percentage point favourable impact of the provisional gain on the
acquisition of SVB UK
30. CMB HFS includes balances relating to Canada, Oman and US CRE
31. Comparative data in 2022 has been re-presented to reflect the transfer of a portfolio of Global Banking
customers in Latin America from GBM to CMB in the first quarter of 2023
32. Balance sheet reductions 2023 vs. 2Q22 were partly offset by transfer of GBM clients into CMB in Australia and
Indonesia ($3.4bn loans, $4.3bn deposits)
14. Difference in technology cost growth on a reported and target basis partially driven by non-inclusion of CTA
spend in 1H22 on a target basis. Technology spending includes tech spend in the global business lines
15. % of WPB customers who have logged into a HSBC Mobile App at least once in the last 30 days; May YTD 2022 33.
vs. May YTD 2023. The number disclosed at 1H22 results was 46.2% which related to June 2022 YTD
16. % of CMB customers who are active on Internet Banking Channels in the last 3 months; May YTD 2022 vs. May
ROTE is YTD annualised
34. Includes revenue shared with Markets and Securities Services and CMB
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