HSBC Results Presentation Deck slide image

HSBC Results Presentation Deck

UK RFB disclosures Business performance FY21 financial highlights Revenue o/w: WPB o/w: CMB ECL Costs PBT o/w: WPB o/w: CMB Customer loans Reported RWAS £6.2bn £3.4bn £2.7bn £1.0bn £(3.5)bn £3.8bn £1.6bn £2.1bn £195.5bn £83.7bn 3% (FY20: £6.0bn) 3% (FY20: £3.3bn) 5% (FY20: £2.6bn) >100% (FY20: £(2.1)bn) 4% (FY20: £(3.6)bn) >100% (FY20: £0.3bn) >100% (FY20: £0.1bn) >100% (FY20: £0.2bn) 2% (FY20: £191.2bn) (2)% (FY20: £85.5bn) Revenue up 3% vs. FY20 ◆ WPB revenue up 3% from higher mortgage volume, partly offset by lower rates ◆ CMB revenue up 5% from higher volumes and fee income Costs down 4% from lower headcount, partly offset by the first-time allocation of the UK bank levy WPB Personal gross mortgage balances, £bn 118.1 101.5 110.7 FY19 ic.£21bn¹ • FY20 ic.£24bn 7.4 FY21 ic.£28bn¹ CYTD gross lending62 Continued strength in mortgage lending: 7.5% mortgage stock market share63; 4021 gross new lending share of 9.3%; FY21 gross new lending share of 8.8%63 r ◆ Buy-to-let mortgages of £3.0bn ◆ Mortgages on a standard variable rate of £2.9bn Personal unsecured lending balances, £bn 5.9 6.0 8.8 7.7 7.2 Credit cards Other personal lending FY19 FY20 FY21 Card balances up 4% vs. 3021, with FY21 card spend up 13% vs. FY20 as consumer confidence improves Other personal lending down 6% vs. FY20 primarily due to the impact of restrictions on customer behaviour 0.25 0.20 0.15 0.10 Mortgages: 90+ day delinquency trend62, % 0.5 0.16 01/19 01/20 01/21 Interest-only mortgages of £18.6bn64 ◆ New originations average LTV of 67%; average portfolio LTV of 51%, stable vs. FY20 1.0 0.0 Strategy 0.23 → Mortgage delinquencies remain slightly elevated vs. pre-pandemic as a result of a market-wide pause in litigation activities, now restarted 0.19 0.63 Credit cards: 90-179 day delinquency trend 62, % 0.89 01/22 0.40 01/19 01/20 01/21 01/22 Credit Card delinquencies remain below pre- pandemic, reflecting lower utilisation and customers deleveraging through the pandemic 4021 results CMB Wholesale gross customer loans, £bn 67.1 FY19 70.2 Appendix FY20 66.1 FY21 FY21 GTRF assets of c.£6bn, up >40% vs. FY20 following a recovery in trade activity Provided £12.3bn of government- backed lending to businesses since March 2020 FY21 government lending balances of £9.2bn, down £0.7bn vs. FY20 as customers began repayment 52
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