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Investor Presentaiton

HSBC Mexico financial performance HSBC Mexico Bank - capital Total capital adequacy ratio at 1Q20 was 13.0%, 190bps above regulatory requirements Capitalisation %1 12.4% Total capital adequacy ratio 12.9% 12.8% 12.9% 13.0% 1.9 1.0 1.9 1.8 2.1 10:3 110 112 Mar16 Mar17 Mar18 Mar19 Mar20 Tier 1 ■Tier 2 CET1: Common Equity Tier 1 DSIB: Domestic Systemically Important Bank 1. ■ At 31 March 2020, the bank's total capital adequacy ratio was 13.0% and the tier 1 capital ratio was 11.2% ■ The minimum capital ratios for HSBC Mexico under local rules as of March 2020 are: • CET1 Ratio: CET1 ≥7% + DSIB • 7.60% Tier 1 Capital Ratio ≥ 8.5% + DSIB 9.10% • Total Capital Ratio ≥ 10.5% + DSIB 11.10% DSIB 60 bps In April 20, CNBV issued a press release allowing the banks to use up to 50% of their capital conservation buffer (2.5% of RWA's). Source: CNBV for figures from March 2016 to March 2019. March 2020 figures according to HSBC Mexico 1Q20 press release. PUBLIC 13
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