Investor Presentaiton
UK ring-fenced bank
Strategy
4022 results
Appendix
01/20 01/21 01/22 01/23
FY22 financial performance
WPB
CMB
Revenue
£7.9bn
27%
(FY21: £6.2bn)
28%
Personal gross mortgage balances, £bn
Mortgages:
Wholesale gross customer loans, £bn
110.7
118.1
125.5
o/w: WPB
£4.3bn
90+ day delinquency trend 82, %
0.23
o/w: CMB
£3.5bn
(FY21: £3.4bn)
28%
0.25
+2%*
0.20
0.17
70.2
66.1
67.4
(FY21: £2.7bn)
FY20
FY21
FY22
ECL
₤(0.5)bn
>(100)%
0.15
0.17
(FY21: £1.0bn)
1%
c.£24bn
c.£28bn
c.£28bn
0.10
Costs
£(3.4)bn
(FY21: £(3.5)bn)
7%
PBT
£4.0bn
(FY21: £3.8bn)
o/w: WPB
£1.8bn
11%
(FY21: £1.6bn)
3%
o/w: CMB
£2.2bn
FY20
FY21
FY22
(FY21: £2.1bn)
4%
Customer loans
£204.1bn
Reported RWAS
£92.4bn
(FY21: £83.7bn)
(FY21: £195.5bn)
10%
♦ Revenue up 27% vs. FY21, reflecting rising
interest rates and lending growth
WPB up 28% primarily due to rates and higher
deposit balances
◆ CMB up 28%, primarily due to rates, re-pricing
initiatives in GPS and higher balances
◆ More normalised FY22 ECL charge of 24bps of
average loans
◆ Costs down 1% as increased technology
investments and one-off cost of living payments
made to staff were more than offset by
management cost control action
RWAs up 10%, primarily due to regulatory changes
CYTD gross lending
Continued strength in mortgage lending through
FY22: 7.7% mortgage stock market share 80; gross
new lending share 80 of 8.9%
Buy-to-let mortgages of £3.8bn, up £0.8bn vs. FY21
Mortgages on a standard variable rate of £2.4bn
Interest-only mortgages of £18.7bn81
New originations average LTV of 67%; average
portfolio LTV of 50%
Personal gross unsecured lending
balances, £bn
Mortgage delinquencies are in line
with pre-pandemic levels.
Customers continue to show good
resilience and notable stress has
not been observed in this portfolio
Credit cards:
90-179 day delinquency trend 82, %
0.89
1.0
5.9 6.0
7.7 7.2 7.7
5.4
0.5
0.57
Credit cards
FY20
Other personal lending
FY21
FY22
0.0
01/20
01/21 01/22 01/23
Credit cards: despite higher spending than
pre-pandemic, balances are down YoY due to
the run-off of the John Lewis card portfolio and
increased repayments
Other personal lending up £0.5bn vs. FY21,
despite subdued loan demand in 4Q22
0.42
Card delinquencies remain below
pre-pandemic levels. Uptick in
delinquencies in 2H22 due to the
run-off of the relatively lower risk
John Lewis portfolio
Gross customer loans up 2%.
Underlying growth more than offset
Covid-19 related lending repayments of
c.£1.8bn during the year (FY22 Covid-19
lending balances are £7.4bn)
Launched £15bn SME fund to provide
support for British businesses to grow
Launched £250m growth lending
proposition to support high-growth,
tech scale-ups which have a clear path to
profitability
HSBC Kinetic now has >50k active
customers
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