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Investor Presentaiton

Appendix Global Banking and Markets 4Q20 financial highlights View of adjusted revenue Revenue $3.5bn (7)% $m 4Q20 A4Q19 (4019: $3.8bn) Global Markets 1,430 ECL $0.0bn >100% FICC 1,069 (4019: $(0.0)bn) - FX 689 13% (1)% 2 %i - Rates 151 (45)% Costs $(2.5)bn 2% - Credit 229 76% (4019: $(2.5)bn) Equities 361 > 100% PBT $1.1bn (13)% Securities Services 439 (17)% (4019: $1.2bn) Global Banking 907 (9)% GLCM 469 (31)% ROTE88 6.7% (3.1)ppt (FY19: 9.8%) GTRF 185 (8)% Principal Investments 74 61 % Revenue performance83, $m Credit and Funding Valuation 70 (64)% Adjustments (7)% (4)% Other (121) (6)% 3,765 3,830 4,591 3,672 3,511 194 (354) (9) 33 -70- MT, Holdings interest expense and Argentina hyperinflation 58 > 100% Total 3,511 (7)% (5)% 2,656 Adjusted RWAs⁹0, $bn 1,787 2,685 2,024 1,869 (4)% (3)% 1,784 1,499 1,944 1,615 1,572 277 273 265 4019 1Q20 2Q20 3Q20 4Q20 Global Markets Global Banking, and Securities Services GLCM, GTRF, PI and Other* Credit and funding valuation adjustments 4019 3Q20 4Q20 *Other includes MT, Holdings interest expense and Argentina hyperinflation Strategy Results 4020 vs. 4019 ◆ Management have delivered net RWA reductions of $12bn (4%) and lower costs ♦ Revenue down $254m (7%) driven by lower global interest rates: Global Markets up $170m (13%) with the best fourth quarter since 2016 as a result of volatility and increased client activity with stable trading VaR; FICC performance driven by strong Credit performance, with Equities also benefitting from increased derivatives trading; GLCM and Securities Services negatively impacted by lower global interest rates, but both grew average balances and Securities Services grew fees; • Global Banking impacted by lower investment banking fees, compared with strong prior period, and tightening credit spreads on portfolio hedges. ◆ ECL in 4Q20 included a small number of specific Stage 3 client charges offset by release in Stage 1&2 ECL from a marginal recovery in economic outlook in Asia ◆ Costs down $46m (2%) primarily driven by managed cost reduction initiatives, more than offsetting higher investments in technology, regulatory costs and performance costs 4020 vs. 3020 • Revenue down $161m (4%): Global Markets revenue lower primarily due to seasonality Global Banking down driven by seasonal decline in fees, mostly in DCM and Advisory and decline in corporate lending NII due to lower balances ECL down $110m as 3Q20 ECL included a small number of specific client charges. ♦ RWAs down $8bn (3%), from active management actions, with lower trading VaR Commentary above is based on unrounded figures 63
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