Investor Presentaiton
2Q23 results summary
$m
NII
Non-NII
Revenue
ECL
2023
2022
A
9,305
6,758
38%
7,400
5,318
39%
16,705
12,076
38%
(913)
(442)
>(100)%
Costs
(7,871)
(7,821)
Associates
Constant currency PBT
850
8,771
754
4,567
(1)%
13%
92%
FX translation
-
69
Reported PBT
8,771
4,636
89%
Tax
(1,726)
863
Profit attributable to ordinary shareholders
6,639
5,211
Earnings per share, $
0.34
0.26
>(100)%
27%
$0.08
EPS excluding material notable items, $
0.34
0.16
$0.18
Dividend per share, $
0.10
0.09
$0.01
ROTE (YTD, annualised), %
22.4
10.6
11.8ppts
Memo: notable items
(251)
(1,036)
76%
$bn
Customer loans
Customer deposits
Reported RWAS
2023
1023
960
969
A
(1)%
1,596
1,614
(1)%
860
854
1%
CET1 ratio4, %
TNAV per share, $
14.7
14.7
0.0ppts
7.84
8.08
$0.24
Variances on this slide are vs. 2022 unless otherwise stated
Strategy
2023 results
Appendix
NII of $9.3bn, up $2.5bn (38%) vs. 2Q22 and up $0.3bn vs.
1Q23 due to rising interest rates
Non-NII of $7.4bn, up $2.1bn (39%), primarily due to the revenue
offset into non-NII from the central costs of funding GBM trading
activity and a strong insurance performance in Hong Kong
ECL of $0.9bn including $0.3bn relating to mainland China CRE and
$0.3bn relating to the UK RFB
Costs up 1%; up 6% on a cost target basis¹ including $0.2bn of
severance costs
Customer loans down $9bn (1%) vs. 1023 due to lower loan
demand from GBM clients in HSBC Bank plc as a result of rising
interest rates and $4bn of loans moved to held-for-sale (HFS)
primarily in Oman
Customer deposits down $18bn (1%) vs. 1Q23, primarily due to
lower GBM balances in HSBC Bank plc as customers used deposits
to pay down loans and $5bn of deposits in Oman moved to HFS
CET1 ratio of 14.7%; TNAV per share of $7.84, down $0.24 including
$6bn dividend payments ($0.33 per share impact) and the $2bn
share buyback ($0.04 per share impact)
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