HSBC Investor Day Presentation Deck

Margin evolution, % 2.45 NIM is expected to increase in 2022 following base rate increases 4021 annualised NII / L&A Deposits % NIM NII / L&A Retail mortgages CMB assets FY21 1.53 2.42 Other FY21 NII / L&A decreased 3bps vs. FY20 from base rate impacts on customer deposit margins, largely offset by increased margins on mortgages 2.69 The inclusion of cash and equivalent balances generates a 15bps reduction in NIM FY20 FY19 1.71 2.05 2.45 2.71 1Q22 annualised NII / L&A Intro FY21 vs. 1022 4021 FY20 (0.18)ppts 1.63 1.48 (0.03)ppts 2.69 2.45 CMB WPB COO HSBC UK NII sensitivity, £m At 31 December 2021. Change from 1 Jan 2022 to 31 December 2022 +25bps parallel -25bps parallel Risk Finance Total Sensitivity table uses an illustrative pass-through rate of 50%, net of 230 (329) hedging impacts +100bps parallel 958 HSBC UK balance sheet sensitivity is -100bps parallel (1,154) substantially all GBP Up-shock is primarily driven by over £100bn of cash (c.1/3rd of HSBC UK's balance sheet) positioned at the Bank of England repricing overnight Hedging We hedge a proportion of our deposit balances and equity to reduce the sensitivity of earnings to interest rate shocks Liabilities that do not have a defined contractual maturity are modelled and "behaviouralised" to define their interest rate risk tenor Natural offsets to this exposure are primarily provided by fixed rate residential mortgage loans The net residual position is transferred into Markets Treasury to manage through interest rate swaps under Macro Cash Flow Hedge accounting and securities held under Hold to Collect and Hold to Collect and Sell accounting 64

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