Investor Presentaiton
Appendix
Commercial Banking
4Q20 financial highlights
Balance sheet89, $bn
Revenue
$3.1bn
(15)%
(4019: $3.7bn)
Customer lending
ECL
$(0.9)bn
>(100)%
(4019: $(0.3)bn)
354
(3)% — (3)%
354
343
2%
Costs
$(1.8)bn
(4019: $(1.8)bn)
PBT
$0.5bn
(69)%
(4019: $1.6bn)
ROTE88
1.3%
(11.7)ppt
(2019: 13.0%)
4019
3Q20
4Q20
Revenue performance83, $m
(15)%
(2)%
3,717
3,794
Customer accounts
3,392
494
566
3,209
3,147
500
438
475
368
372
437
434
423
18%
6%
470
445
1,349
1,408
397
1,412
1,461
1,457
1,436
1,345
1,043
946
895
4019
1Q20
2020
3Q20
4Q20
Markets products, Insurance
GTRF
and Investments and Other*
Credit and Lending
GLCM
4Q19
3Q20
4Q20
*Other includes MT, Holdings interest expense and Argentina hyperinflation
Strategy
Results
4020 vs. 4019
Revenue down $570m (15%), reflecting the impact of lower global
interest rates in GLCM and other products partially offset by higher
deposits
ECL up $592m reflecting a small number of specific client charges in
Asia and updated forward economic guidance in the UK
◆ Costs down $42m (2%) due to controlled discretionary spend, while
continuing to invest in digital and transaction banking capabilities
◆ Customer lending down $11bn (3%) primarily due to lower trade
and overdraft balances, partly offset by government scheme lending
◆ Customer accounts up $73bn (18%) as customers raised and
retained liquidity across all regions
4020 vs. 3020
Revenue down $62m (2%), reflecting the impact of lower interest
rates partially offset by higher balances and fees in GLCM
♦ ECL up $515m reflecting a small number of specific client charges in
Asia and updated forward economic guidance in the UK
Costs up $106m (6%) mainly due to increased investment and
performance-related pay
Customer lending down $11bn (3%) from the repayment of short-
term IPO related loans and reductions in the US and Europe
♦ Customer accounts up $26bn (6%) as customers raised and
retained liquidity notably in Hong Kong and the UK
Commentary above is based on unrounded figures
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