HSBC Investor Day Presentation Deck

We are well prepared to manage key external risks Conflict The current and potential risks to HSBC UK arising from the war in Ukraine are being closely managed Second- and third-order risks being proactively monitored Particular focus on cyber risks and ongoing compliance with sanctions Credit Monitoring impact of rising inflation and higher cost of living on our customers Strong inflationary headwinds had been building prior to the war in Ukraine Continued volatility in commodity prices expected throughout 2022 Intro Stagflation fears have worsened for both the UK and Europe CMB Covid-19 WPB Impact continues to reduce, with all restrictions being removed by the UK Government Consumer confidence remains low, driven. primarily by the inflationary environment We are maintaining heightened monitoring activities to identify sectors and customers experiencing financial difficulties COO Risk Climate Finance Increasing focus for HSBC and our regulators ◆ Assessment of transition risk for wholesale clients, and continuing work on Energy Performance Certificate ratings are key focus areas ◆ Climate risk being built into wholesale credit risk. processes to ensure embedded in risk assessments Risks are managed through monitoring and controls, including Early Warning Indicators and stress testing, with a range of risk management actions available to deploy as required. 58

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