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Investor Presentaiton

1. HSBC Group Strategic differentiators enable a strategy focused on growth, improving returns, and enhancing customer and employee experience Strategic differentiators 1 Leading international bank ■ >50% of Group client revenue connected to the network Strategic priorities Financial targets 1 Accelerate growth from our Asian franchise ROTE1 2 ■ No 1 global transaction bank, gaining market share 2 Unparalleled access to high growth markets ■ Access to high growth developing markets in Asia, Middle East and Latin America ■ Investment aligned to high growth markets to deliver shareholder value Complete establishment of UK ring- fenced bank, increase mortgage market share, grow commercial customer base, and improve customer service ■ >11% by 2020 Gain market share and deliver 3 growth from our international network Costs ■ Positive jaws (adjusted, on an annual basis) 4 Turn around our US business 5 Improve capital efficiency; redeploy capital into higher return businesses ☐ 3 Signature balance sheet strength Strong capital, funding and liquidity position with diversified business model ■ Conservative approach to credit risk and liquidity management ■ Low earnings volatility 6 Create capacity for increasing investments in growth and technology through efficiency gains Capital and 7 Enhance customer centricity and customer service dividend through investments in technology Strong capital position and intrinsic capital generation 80 Simplify the organisation and invest in future skills ■ Sustain dividends through long- term earnings capacity of the businesses ■ Share buy- backs subject to regulatory approval 1. A targeted reported ROTE of 11% is broadly equivalent to a reported return on equity of 10%; assumes a Group CET1 ratio greater than 14%. Return on tangible equity ('ROTE') is calculated as reported profit attributable to ordinary shareholders less changes in goodwill and present value of in-force long term insurance business divided by average tangible shareholders' equity. 5

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