Investor Presentaiton
Appendix
February 2020 Business Update progress and business highlights
Detail on progress against our FY22 financial targets
Other business highlights
Strategy
Results
Costs
Wealth balances increased $0.2tn (12%) to $1.6tn vs. FY19
FY22 target
FY20 progress4
WPB
(as announced at Feb20)
Adjusted costs <$31bn; $4.5bn of
cost programme saves
$1.0bn
cost saves
RWAS
>$100bn gross RWA reduction
$52bn gross
reduction
15.9%
Capital
CET1 ratio >14%;
manage in 14-15% range
×
3.1%
ROTE
10% -12%
◆ $1.0bn of cost programme saves delivered in FY20
FY20 costs in the US decreased by $302m (8%) vs. FY19
Global number of branches reduced by c.5%; US retail branch footprint reduced by
over 30%, exceeding 2020 reduction target
◆ FTE and contractors down by c.11k, from c.243k to c.232k, despite pauses in our
redundancy programme in 1H20; US FTE down by c.1,400 and NRFB FTE down
C. 1,100
◆ Gross RWA reductions of $51.5bn; $24.4bn of reductions in the NRFB; $37.4bn in
GBM
Asset Management AUM of $602bn grew by $96bn (19%) YoY; Net New Money of
$53bn over FY20, with 75% of NNM coming from collaboration with GBM and CMB
◆ Premier customer numbers up by 124k (3%) to 4.2m and Jade client numbers up by
18k (12%) to 175k
5 minute wealth account opening now live in Hong Kong
Wholesale (CMB and GBM)
HSBC has helped raise $1.9tn of financing for clients over FY20, including $125bn of
Social and Covid-19 relief bonds75
Solid GBM performance, notably in FICC and Capital Markets; best GM 4Q20 performance
since 2016 with revenue of $1.4bn; FY20 Capital Markets gross revenue of $1.8bn, up
21% vs. FY1976
FY20 international customer account openings up 8% YoY
Asia
Asia Trade market share of 9.3% at 9M2077, up 0.3ppt YoY
GBM retained #1 rank in Asia Transaction Banking 69
◆ PayMe has been the leading P2P wallet in Hong Kong for 3 years running 78; PayMe
customer numbers grew 25% to 2.3m over FY20
UK RFB
Strong mortgage lending: FY20 gross market share of 10.3%, leading to a YoY increase
in stock market share of 0.4ppts to 7.47⁹%; mortgage balances up $13bn (9%) vs. FY19
◆ First Direct named 'Best British brand'80 out of 271 companies in the 2020 Institute of
Customer Service Customer Satisfaction Index with a score of 85.1 vs. 76.8 average
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