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
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