HSBC Holdings plc with ticker (LON:HSBA) now has a potential upside of 36.7% according to Berenberg Bank.
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Berenberg Bank set a target price of 820 GBX for the company, which when compared to the HSBC Holdings plc share price of 600 GBX at opening today (09/11/2023) indicates a potential upside of 36.7%. Trading has ranged between 469 (52 week low) and 666 (52 week high) with an average of 30,082,704 shares exchanging hands daily. The market capitalisation at the time of writing is £117,147,878,662.
HSBC Holdings plc (HSBC) is a banking and financial services company. The Company’s segments include Wealth and Personal Banking (WPB), Commercial Banking (CMB) and Global Banking and Markets (GBM). WPB provides a range of retail banking and wealth management services, including insurance and investment products, global asset management services, investment management and private wealth solutions for customers. CMB offers a range of products and services to serve the needs of commercial customers, including small and medium-sized enterprises, mid-market enterprises and corporates. These include credit and lending, international trade and receivables finance, commercial insurance and investments. GBM provides tailored financial solutions to government, corporate and institutional clients and private investors worldwide. The Company operates across various geographical regions, which include Europe, Asia-Pacific, Middle East and North Africa, North America, and Latin America.
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Tag: HSBA
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HSBC delivers strong first half performance with revenue increasing to $36.9bn
HSBC Holdings plc (LON:HSBA) has announced its 2023 interim results.
Noel Quinn, Group Chief Executive, said:
“We have delivered a strong first half performance and are confident of achieving our revised mid-teens return on tangible equity target in 2023 and 2024. There was good broad-based profit generation around the world, higher revenue in our global businesses driven by strong net interest income, and continued tight cost control. I am also pleased that we can reward our shareholders with a second interim dividend of $0.10 per share and a second share buy-back in 2023 of up to $2bn, with substantial further distribution capacity still expected ahead.
There is still much work to do, especially given the many challenges in the global economy, but I am confident about the future as we move further into the next phase of our strategy and focus on opportunities to drive value creation, diversify our revenue and retain tight cost control.”
Financial performance (1H23 vs 1H22)
– Profit before tax rose by $12.9bn to $21.7bn. This included a $2.1bn reversal of an impairment relating to the planned sale of our retail banking operations in France and a provisional gain of $1.5bn on the acquisition of Silicon Valley Bank UK Limited (‘SVB UK’). On a constant currency basis, profit before tax increased by $13.3bn to $21.7bn. Reported profit after tax increased by $9.1bn to $18.1bn.
– Revenue increased by $12.3bn to $36.9bn. The increase was driven by higher net interest income in all of our global businesses due to interest rate rises. It also included the impacts related to the planned sale in France and the acquisition in the UK. On a constant currency basis, revenue rose by $13.2bn to $36.9bn.
– Net interest margin (‘NIM’) of 1.70% increased by 46 basis points (‘bps’).
– Expected credit losses and other credit impairment charges (‘ECL’) of $1.3bn reflected a more stable outlook in most markets, although inflationary pressures remain. The 1H23 charge included $0.3bn relating to the commercial real estate sector in mainland China and charges in Commercial Banking (‘CMB’) in the UK. The 1H22 charge of $1.1bn reflected heightened economic uncertainty, mainly due to the Russia-Ukraine war and inflationary pressures, and also included $0.3bn relating to the commercial real estate sector in mainland China, partly offset by releases of Covid-19-related allowances.
– Operating expenses of $15.5bn were $0.7bn or 4% lower than in 1H22, primarily due to lower restructuring and other related costs following the completion of our cost-saving programme at the end of 2022 and from a $0.2bn impact from a reversal of historical asset impairments. This was partly offset by higher technology costs, an increase in performance-related pay, severance of $0.2bn in 1H23 and the effects of rising inflation. Target basis operating expenses rose by 4.3%.
– Customer lending balances increased by $36bn since 31 December 2022. On a constant currency basis, lending balances grew by $23bn, mainly due to the reclassification of balances associated with our retail banking operations in France from held for sale during the period, and $7bn of additional balances following our acquisition of SVB UK during 1Q23. These were partly offset by the reclassification of our business in Oman as held for sale, which resulted in a $3bn reduction. Excluding these factors, customer lending fell, reflecting weaker customer demand for wholesale lending, notably in Hong Kong and Europe.
– Customer accounts increased by $25bn since 31 December 2022. On a constant currency basis, customer accounts increased by $3bn, mainly due to the reclassification of balances associated with our retail banking operations in France from held for sale during the period. In addition, our acquisition of SVB UK resulted in growth of $7bn, and in 1H23, we reclassified our business in Oman as held for sale, resulting in a $5bn reduction. Excluding these factors, deposits fell, reflecting reductions in Wealth and Personal Banking (‘WPB’) and CMB in HSBC UK, as well as in Global Banking and Markets (‘GBM’).
– Annualised return on average tangible equity (‘RoTE’) of 22.4% compared with 10.6% in 1H22. Excluding the annualised impacts related to the planned sale in France and the acquisition in the UK, annualised RoTE was 18.5%.
– Common equity tier 1 (‘CET1’) capital ratio of 14.7% increased by 0.5 percentage points compared with 4Q22, which was driven by capital generation net of the dividend accrual, and included an approximately 0.3 percentage point impact from the reversal of an impairment on the planned sale of our retail banking operations in France and the provisional gain on the acquisition of SVB UK. This was partly offset by increased risk-weighted assets (‘RWAs’) and the impact of the share buy-back announced with our 1Q23 results in May 2023.
– The Board has approved a second interim dividend of $0.10 per share. We also intend to initiate a further share buy-back of up to $2bn, which we expect to commence shortly and complete within three months.
Financial performance (2Q23 vs 2Q22)
– Reported profit before tax increased by $4.1bn to $8.8bn.
– Revenue rose by $4.5bn to $16.7bn, with growth across all of our global businesses, primarily reflecting interest rate rises. There were good performances in insurance in WPB and in Debt Capital Markets in GBM, which offset reductions in Global Foreign Exchange and Equities.
– NIM of 1.72% increased by 3bps, compared with 1Q23.
– ECL of $0.9bn increased by $0.5bn. ECL in 2Q23 included $0.3bn of charges in the commercial real estate sector in mainland China, and $0.3bn in the UK, mainly in CMB.
– Operating expenses of $7.9bn fell by $0.1bn. This was driven by lower restructuring and other related costs following the completion of our cost-saving programme at the end of 2022 and the reversal of historical asset impairments. This reduction was partly offset by $0.2bn of severance costs incurred in 2Q23, as well as higher technology spend, an increase in our performance-related pay accrual and the effects of rising inflation.
– Customer lending decreased by $9bn compared with 31 March 2023, which included a reduction of $3bn related to a reclassification of our business in Oman to held for sale. The remaining reduction was mainly in GBM in HSBC Bank plc, reflecting client deleveraging and weaker demand as interest rates rose.
– Customer accounts decreased by $18bn compared with 31 March 2023, which included a reduction of $5bn related to the reclassification of our business in Oman to held for sale. The remaining reduction was in GBM in Europe, as corporate customers used deposits to pay down their loans, and in HSBC UK, reflecting higher cost of living and competitive pressures.
Outlook for 2023
– Our strategy has enabled us to further strengthen our balance sheet, providing us with a good platform for growth in the current interest rate cycle, while maintaining cost discipline. This has given us the confidence to revise our returns guidance for 2023 and 2024. Based on the current path implied by the market for global policy rates, we are now targeting a RoTE in the mid-teens for 2023 and 2024, which excludes the impact of material acquisitions and disposals.
– Given the current market consensus for global central bank rates, we have raised our 2023 full-year guidance for net interest income to above $35bn. While the interest rate outlook remains positive, we expect continued migration to term deposits as short-term interest rates rise.
– We continue to expect ECL charges of around 40bps of average gross loans in 2023 (including lending balances transferred to held for sale). There remains a degree of uncertainty in the forward economic outlook, particularly in the UK, and we are monitoring risks related to our exposures in mainland China’s commercial real estate sector. Over the medium to long term, we continue to use a range of 30bps to 40bps of average loans for planning our ECL charges.
– We remain highly focused on maintaining cost discipline. We continue to target operating expense growth of approximately 3% for 2023, excluding the impact of foreign currency translation differences, notable items and the impact of retranslating the 2022 results of hyperinflationary economies at constant currency. Our target also excludes the impact of our acquisition of SVB UK, and the related investments internationally, which are expected to add approximately 1% to the Group’s operating expenses. In 2Q23, we incurred severance costs of $0.2bn, with the benefits expected to be realised towards the end of 2023 and into 2024.
– We intend to manage the CET1 ratio within our medium term target range of 14% to 14.5%, and we aim to manage this range down in the long term. In addition, our dividend payout ratio is 50% for 2023 and 2024, excluding material notable items. We have announced a second interim dividend of $0.10 per share and intend to initiate a further share buy-back of up to $2bn, which we expect to commence shortly and complete within three months. Further buy-backs for 2023 and beyond will be subject to appropriate capital levels.
Key financial metrics
Half-year to 30 Jun 30 Jun 2023 2022 Reported results Profit before tax ($m) 21,657 8,780 Profit after tax ($m) 18,071 8,931 Cost efficiency ratio (%) 41.9 65.7 Net interest margin (%) 1.70 1.24 Basic earnings per share ($) 0.86 0.40 Diluted earnings per share ($) 0.86 0.40 Dividend per ordinary share (in respect of the period) ($) 0.20 0.09 Alternative performance measures Constant currency profit before tax ($m) 21,657 8,404 Constant currency cost efficiency ratio (%) 41.9 65.7 Expected credit losses and other credit impairment charges (annualised) as % of average gross loans and advances to customers (%) 0.28 0.21 Expected credit losses and other credit impairment charges (‘ECL’) (annualised) as % of average gross loans and advances to customers, including held for sale (%) 0.26 0.21 Basic earnings per share excluding material notable items ($)1 0.70 0.29 Return on average ordinary shareholders’ equity (annualised) (%) 20.8 9.9 Return on average tangible equity (annualised) (%) 22.4 10.6 Return on average tangible equity excluding strategic transactions (annualised) (%)2 18.5 10.6 Target basis operating expenses ($m)3 15,319 14,683 At 30 Jun 31 Dec 2023 2022 Balance sheet Total assets ($m) 3,041,476 2,949,286 Net loans and advances to customers ($m) 959,558 923,561 Customer accounts ($m) 1,595,769 1,570,303 Average interest-earning assets, year to date ($m) 2,162,662 2,143,754 Loans and advances to customers as % of customer accounts (%) 60.1 58.8 Total shareholders’ equity ($m) 184,170 177,833 Tangible ordinary shareholders’ equity ($m) 153,234 146,927 Net asset value per ordinary share at period end ($) 8.44 8.01 Tangible net asset value per ordinary share at period end ($) 7.84 7.44 Capital, leverage and liquidity Common equity tier 1 capital ratio (%)4,5 14.7 14.2 Risk-weighted assets ($m)4,5 859,545 839,720 Total capital ratio (%)4,5 19.8 19.3 Leverage ratio (%)4,5 5.8 5.8 High-quality liquid assets (liquidity value, average) ($bn)5,6 631 647 Liquidity coverage ratio (average) (%)5,6 132 132 Share count Period end basic number of $0.50 ordinary shares outstanding (millions) 19,534 19,739 Period end basic number of $0.50 ordinary shares outstanding and dilutive potential ordinary shares (millions) 19,679 19,876 Average basic number of $0.50 ordinary shares outstanding (millions) 19,693 19,849 For reconciliations of our reported results to a constant currency basis, including lists of notable items, see page 39 of the Interim Report 2023. Definitions and calculations of other alternative performance measures are included in our ‘Reconciliation of alternative performance measures’ on page 57 of the Interim Report 2023.
1 At 2Q23, earnings per share included the impact of the provisional gain recognised in respect of the acquisition of SVB UK of $0.08 (2Q22: nil); the reversal of the impairment loss related to the planned sale of our retail banking operations in France of $0.08 (2Q22: nil); and the agreed sale of our banking business in Canada of $nil (2Q22: $nil). Additionally, the earnings per share at 2Q22 included the impact of the recognition of certain tax assets of $0.11.
2 Excludes impacts of the reversal of the impairment loss of $1.6bn (net of tax) relating to the planned sale of our retail banking operations in France, which is no longer classified as held for sale, and the provisional gain of $1.5bn recognised in respect of the acquisition of SVB UK, both recognised in 1Q23.
3 Excluding the impact of retranslating prior year costs of hyperinflationary economies at constant currency.
4 Unless otherwise stated, regulatory capital ratios and requirements are based on the transitional arrangements of the Capital Requirements Regulation in force at the time. At 30 June 2023, the IFRS 9 add-back to CET1 capital was immaterial. References to EU regulations and directives (including technical standards) should, as applicable, be read as references to the UK’s version of such regulation or directive, as onshored into UK law under the European Union (Withdrawal) Act 2018, and as may be subsequently amended under UK law.
5 Regulatory numbers and ratios are as presented at the date of reporting. Small changes may exist between these numbers and ratios and those subsequently submitted in regulatory filings. Where differences are significant, we will restate in subsequent periods.
6 The liquidity coverage ratio is based on the average month-end value over the preceding 12 months.
Highlights
Half-year to 30 Jun 30 Jun 2023 2022 $m $m Reported Revenue1,2,3 36,876 24,545 Change in expected credit losses and other credit impairment charges (1,345) (1,087) Operating expenses (15,457) (16,127) Share of profit in associates and joint ventures 1,583 1,449 Profit before tax 21,657 8,780 Tax (charge)/credit (3,586) 151 Profit after tax 18,071 8,931 Constant currency4 Revenue1,2,3 36,876 23,647 Change in expected credit losses and other credit impairment charges (1,345) (1,074) Operating expenses (15,457) (15,532) Share of profit in associates and joint ventures 1,583 1,363 Profit before tax 21,657 8,404 Tax (charge)/credit (3,586) 227 Profit after tax 18,071 8,631 Notable items Revenue Disposals, acquisitions and related costs2,3 3,321 (288) Fair value movements on financial instruments5 15 (371) Restructuring and other related costs6 – 68 Operating expenses Disposals, acquisitions and related costs (118) – Restructuring and other related costs7 47 (1,040) Tax Tax (charge)/credit on notable items (500) 242 Recognition of losses – 2,082 Uncertain tax positions 427 (317) 1 Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue.
2 Includes the reversal of $2.1bn impairment loss relating to the planned sale of our retail banking operations in France, which is no longer classified as held for sale.
3 Includes the provisional gain of $1.5bn recognised in respect of the acquisition of SVB UK in 1Q23.
4 Constant currency performance is computed by adjusting reported results of comparative periods for the effects of foreign currency translation differences, which distort period-on-period comparisons.
5 Fair value movements on non-qualifying hedges in HSBC Holdings.
6 Comprises gains and losses relating to the business update in February 2020, including losses associated with the RWA reduction programme.
7 In 2Q23, we recognised $47m of reversals relating to restructuring provisions recognised during 2022.
Review by Noel Quinn, Group Chief Executive
By the time we completed the first phase of our strategy at the end of 2022, the changes we had made were delivering an improved financial performance. Six months into 2023, our financial performance has continued to improve, aided by the interest rate environment. As we move further into the next phase of our strategy focused on value creation, I am optimistic about our ability to continue to deliver strong returns for our investors.
Our purpose of ‘opening up a world of opportunity’ underpins everything we do for our customers, colleagues and the communities we serve. In the first half of 2023, we continued to deliver on that promise by launching new products and services, and developing our capabilities to meet the international needs of our diverse customer base. From the new international proposition for Wealth and Personal Banking customers launched in March and the continued development of our Global Money and Global Wallet products, to the digitisation of international account opening and the globally connected HSBC Innovation Banking business launched in June, there are many examples of how my colleagues are truly living our purpose.
Many of these achievements contributed to our strong first-half performance, as we saw continued good revenue growth across all our global businesses, supported by higher interest rates. We delivered a strong annualised return on tangible equity of 22.4%, including the reversal of an impairment relating to the planned sale of our retail banking operations in France and a provisional gain on the acquisition of SVB UK, both of which were reported in the first quarter. Excluding them, we achieved an annualised return on tangible equity of 18.5%. Our strategy is working. The Board, my colleagues and our shareholders are all focused on the shared objectives of supporting our customers, driving stronger performance and creating more value for our investors.
The biggest challenge we all face remains the uncertainty within the external environment. High inflation remains a significant concern for many of our customers. Even though headline inflation rates are now falling in most countries, they remain persistently high in some markets. In the UK, we have seen limited signs of stress in the mortgage book, although we are acutely aware of the day-to-day financial challenges that some of our customers face. With more mortgage customers due to roll off fixed-term deals in the next six months, and further rate rises expected, tougher times are ahead. We will continue to communicate regularly with our customers, listen to their concerns, seek to offer them help should they want it and ensure they are aware of the range of products available to them.
Across the global economy, growth remains uneven. China’s reopening at the start of the year lifted both its economy and the prospects for global GDP growth in 2023, although weaker recent data underlines that its recovery may be slower than previously expected. Other parts of Asia, such as India and the ASEAN region, are growing robustly, as is the Middle East.
From transformation to value creation
At the end of 2022, we completed the first phase of our strategy. As a result of the work done to transform HSBC, including to reposition our portfolio, create broad-based profit generation, maintain strong cost discipline and introduce a sustainable dividend, we built a strong platform for growth. This work helped to put HSBC on track to achieve a return on tangible equity of 12%+ in 2023.
In the first half of 2023, our strategic approach has changed from transformation to value creation. While there have been – and will continue to be – opportunities to further simplify HSBC, we have shifted our focus to driving growth, while maintaining strong returns.
First, we have further leveraged our international connectivity. Our ability to connect the world’s major trading and investment blocs has always been, and remains, our greatest strength. In the first-half, our wholesale cross-border client business increased by around 50%, with growth across all regions, due mainly to rising interest rates. In Wealth and Personal Banking, we now have 6.3 million international customers, which is up 8% on the same period last year. There was also strong revenue growth in global transaction banking, which was up by 63%. Within global transaction banking, there were good performances in Foreign Exchange and in Global Payments Solutions, due to higher rates. Trade was slightly down in line with global trade volumes, although HSBC was recently named ‘Best Bank for Trade Finance’ by Euromoney for the second year in a row, while also being named ‘Best Bank in Asia’.
Second, we made further progress towards the redeployment of capital from less strategic or low-connectivity businesses into high-growth international opportunities. We are pleased to have agreed revised terms for the sale of our French retail banking operations, which we now expect to complete in early 2024. The sale of our banking operations in Canada also remains on track to complete in early 2024. We have also completed the disposal of our Greek business, and announced the planned exit of Russia, a change to the nature of our presence in Oman, and the wind-down of Wealth and Personal Banking in New Zealand.
At the same time, we are investing in growth in a strategic and targeted way. We have invested further in our Wealth business in Asia. We now have a total of 1,400 digitally enabled wealth planners in our Pinnacle business in mainland China, while we launched Global Private Banking in India in July. In June, following our acquisition of SVB UK, we also launched a new strengthened, globally connected proposition – HSBC Innovation Banking. Through it, we are building similar businesses to the former SVB UK in the US, Hong Kong and Israel, and using our international network and balance sheet strength to offer new opportunities to expand globally to our clients in the technology and life sciences sectors.
Third, we are working to diversify our revenue. A key strategic priority has been to grow fee income by investing in our Wealth business, especially in Asia. We saw the continuing benefit of this in the first-half as we grew net new invested assets by $34bn, of which $27bn were in Asia. Fee income in Commercial Banking, which is another priority area, was also up in the first-half by 6%, while collaboration revenue from referrals between our global businesses also increased by 5%.
Fourth, we have maintained tight cost discipline. Costs of $15.5bn in the first-half were $0.7bn or 4% lower than the same period last year, primarily due to lower restructuring costs following the end of our cost-saving programme at the end of 2022. On the basis of our target to limit cost growth to around 3% in 2023, operating expenses increased by 4% in the first-half, including the expected severance costs booked in the second quarter. We remain committed to disciplined cost management.
Fifth, we have reinvested cost savings in technology. Spending on technology increased by 12.8% in the first-half, and now accounts for almost a quarter of total operating expenses. Delivering faster services, reducing friction and offering more competitive products has been critical to improving the customer experience. For example, we have now migrated over 26,000 business customers in Hong Kong and the UK to our next generation digital trade platform, which is enabling us to future-proof a market-leading business.
Investing in technology is also key to enhancing our capabilities and building the bank of the future. We now have a range of ‘test and learn’ use cases for generative AI across HSBC, and are in the process of scaling those up. Last month, HSBC became the first bank to join BT’s and Toshiba’s quantum-secured metro network employing quantum technology for secure transmission of data, which will enable us to evaluate how best to use this technology against future cyber threats. We are also pleased to be working with the Hong Kong Monetary Authority on two pilots to test the e-HKD in a new payments ecosystem and to trial tokenised deposits.
Finally, we continued to build on our position as an enabler of the net zero transition by supporting our customers’ transition plans. In the first-half, we provided and facilitated $45bn of sustainable finance and investments, which consisted of capital markets financing and lending to clients as we continued to work closely with them on their transitions. This included a number of key deals in Asia and the Middle East. We have also continued to help unlock new climate solutions, including through our Climate Tech Venture Capital strategy. HSBC was named ‘Best Bank for Sustainable Finance in Asia’ by Euromoney for the sixth consecutive year.
Translating into strong financial performance
Our strong first-half featured good broad-based profit generation around the world. There was also higher revenue in our global businesses driven by strong net interest income, supported by continued tight cost control. We achieved an annualised return on tangible equity of 22.4%, or 18.5% excluding the two material notable items reported with our first quarter results.
Profit before tax for the first half of 2023 was $21.7bn, which was an increase of $12.9bn on the first half of 2022. This included a $2.1bn reversal of an impairment relating to the planned sale of our retail banking operations in France and a provisional gain of $1.5bn on the acquisition of SVB UK. Profit after tax increased by $9.1bn to $18.1bn.
Revenue increased by $12.3bn to $36.9bn, driven mainly by higher net interest income in all three global businesses due to interest rate rises. It also included gains related to the two aforementioned transactions in the first quarter.
Expected credit losses and other credit impairment charges were $1.3bn, which was a $0.3bn increase on the first half of 2022.
Our CET1 ratio at the end of the first-half was 14.7%. We have announced a second interim dividend of $0.10 per share, further to the $0.10 per share dividend already paid in respect of the first quarter. We are also announcing a second share buy-back of up to $2bn. We continue to expect to have substantial distribution capacity going forward.
Our strong performance in the first half of 2023 and our continued strategic progress mean that we now expect to achieve a return on tangible equity in the mid-teens for 2023 and 2024.
Thank you to my colleagues
Over the last six months, I had the opportunity to spend time with colleagues in France, Hong Kong, mainland China, Mexico, Saudi Arabia, the United Arab Emirates and the UK. I have been constantly impressed by their commitment, dedication and tireless efforts to support our customers – all of which are evident in our many achievements. I am especially grateful to those colleagues who have faced serious challenges so far this year, including the earthquakes in Türkiye in February and, of course, the ongoing cost of living crisis in many markets.
Overall, we have delivered a strong first-half performance and are confident of delivering our revised return on tangible equity target for 2023 and 2024. I am also pleased that we can reward our shareholders with strong capital returns, with substantial further distribution capacity still expected ahead.
There is still much work to do, especially given the many challenges in the global economy, but I am confident about our future as we move further into the next phase of our strategy and focus on opportunities to drive value creation, diversify our revenue and retain tight cost control.
Noel Quinn
Group Chief Executive, HSBC Holdings plc
1 August 2023
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HSBC updates investors on its Asia growth outlook
HSBC Holdings plc (LON:HSBA) will today update investors on its Asia growth outlook, underlining the critical role the region plays in the bank’s international growth ambitions. The insight into HSBC’s Asia business is part of a week-long seminar for investors and analysts, held in Hong Kong and Singapore.
During the week, HSBC will discuss the following medium-term[1] ambitions for its Asia business:
· High-single digit percentage Wealth revenue growth;
· Mid-single digit percentage lending growth over the medium-to-long-term, more cautious in the short-term and;
· Mid-teens RoTE.
“In addition to our core strength in Hong Kong, we now have growth engines in mainland China, India, Singapore and beyond,” said Group Chief Executive Noel Quinn. “We have spent the last three years transforming the Asia business, fine-tuning the portfolio and investing in technology to provide an integrated international offering for our customers, and ultimately generating strong returns for our shareholders.
“All parts of HSBC Asia are now motoring. In mainland China, we are ideally positioned to facilitate business with the rest of the world; in South and Southeast Asia, we have invested heavily in Singapore, and we have significantly bolstered our growing business in India.
“We have continued to invest in our digital capabilities, which help us serve customers more efficiently and at scale, and we are supporting clients as they manage their transition to a low-carbon economy.
“We now have an unrivalled international proposition that supports our Asia customers looking to trade with and grow in markets across Europe, the Middle East and the Americas, and vice versa. As our client base has grown year on year, we have been with them at every step to support and guide them. We have proved that our globally interconnected offering is needed and valued now more than ever before.
“Today’s ambitions show the strategy is working, we are generating strong returns for our shareholders and we are confident there is more to come.”
The HSBC Group ambition remains a RoTE of at least 12% from 2023.
Today’s session will include presentations and Q&A on HSBC’s overall Asia business, its operations in Hong Kong and mainland China, and the strategic focus of its Commercial Banking and Wealth & Personal Banking businesses in those two markets. The Hang Seng Bank management team will also make a presentation.
The presentations from today’s seminar will be available shortly before 8:15am HKT at:
· hsbc.com/investors/investor-events-and-presentations
· hangseng.com/en-hk/about-us/investor-relations
[1] Medium term is defined as to 3-4 years from 1 January 2023; long term is defined as 5-6 years from 1 January 2023
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HSBC strong first quarter performance with revenue up 64% to $20.2bn
HSBC Holdings plc (LON:HSBA) has announced its Q1 2023 earnings release.
Noel Quinn, Group Chief Executive, said:
“Our strong first quarter performance provides further evidence that our strategy is working. Our profits were spread across our major geographies, and all three global businesses performed well as we continued to meet our customers’ needs through our internationally connected franchises. Our return on tangible equity was 19.3%, excluding the impact of strategic transactions. As a result, we have announced our first quarterly dividend since 2019 of $0.10 per share, as well as a share buy-back of up to $2bn. With the good momentum we have in our business, we expect to have substantial future distribution capacity for dividends and share buy-backs.
We remain focused on continuing to improve our performance and maintaining tight cost discipline, but we also saw an opportunity to invest in SVB UK to accelerate our growth plans. For 158 years, HSBC has banked the entrepreneurs who have created today’s industrial base. With the SVB UK acquisition, we have access to more of the entrepreneurs in the technology and life sciences sectors who will create the businesses of tomorrow. We believe they’re a natural fit for HSBC, and that we’re uniquely placed to take them global.”
Financial performance (1Q23 vs. 1Q22)
• Profit before tax rose by $8.7bn to $12.9bn. This included a $2.1bn reversal of an impairment relating to the planned sale of our retail banking operations in France, as the completion of the transaction has become less certain, and a provisional gain of $1.5bn on the acquisition of Silicon Valley Bank UK Limited (‘SVB UK’) in March. On a constant currency basis, profit before tax increased by $9.0bn to $12.9bn. Profit after tax increased by $7.6bn to $11.0bn.
• Revenue increased by 64% to $20.2bn. The increase was driven by higher net interest income in all of our global businesses due to interest rate rises. It also included the gains related to the transactions in France and the UK. On a constant currency basis, revenue rose by 74% to $20.2bn.
• Net interest margin (‘NIM’) of 1.69% increased by 50 basis points (‘bps’) compared with 1Q22, and by 1bps compared with 4Q22.
• Expected credit losses and other credit impairment charges (‘ECL’) of $0.4bn were down by $0.2bn. The reduced 1Q23 charge reflected a favourable change in the probability weightings of economic scenarios and a low stage 3 charge of $0.4bn. The 1Q22 charge reflected economic uncertainty mainly due to the Russia-Ukraine war and inflationary pressures.
• Operating expenses of $7.6bn were $0.6bn or 7% lower than in 1Q22. The reduction was primarily due to lower restructuring and other related costs following the completion of our cost-saving programme at the end of 2022, and ongoing cost discipline. Higher technology costs and the impacts of rising inflation continued to affect our operating expenses. On a constant currency basis, and excluding notable items and the impact of retranslating the 1Q22 results of hyperinflationary economies at constant currency, operating expenses rose by 2%.
• Customer lending balances increased by $40bn in the quarter. On a constant currency basis, lending balances grew by $32bn, mainly as $25bn of balances associated with our retail banking operations in France were reclassified from held for sale during the period. In addition, the growth included $7bn of additional balances following our acquisition of SVB UK during the quarter. Excluding these factors, customer lending was stable.
• Customer accounts increased by $34bn in the quarter. On a constant currency basis, customer accounts increased by $21bn, mainly as $23bn of balances associated with our retail banking operations in France were reclassified from held for sale during the period. In addition, our acquisition of SVB UK resulted in growth of $8bn. Excluding these factors, deposits fell by $10bn or 0.6%, reflecting outflows in HSBC UK as customers utilised surplus deposits, as well as in Commercial Banking (‘CMB’) and Global Banking and Markets (‘GBM’) in Hong Kong.
• Common equity tier 1 (‘CET1’) capital ratio of 14.7% increased by 0.5 percentage points compared with 4Q22, which was driven by capital generation net of the dividend accrual and included an approximately 25bps impact from the reversal of an impairment on the planned sale of our retail banking operations in France. The acquisition of SVB UK had a minimal impact on the CET1 ratio.
• The Board has approved a first interim dividend of $0.10 per share. We also intend to initiate a share buy-back of up to $2bn, which we expect to commence following our 2023 Annual General Meeting (‘AGM’). The share buy-back is expected to have an approximately 25bps impact on the CET1 capital ratio.
• From 1 January 2023, we adopted IFRS 17 ‘Insurance Contracts’, which replaced IFRS 4 ‘Insurance Contracts’. Comparative data have been restated. For further details of our adoption of IFRS 17, see page 3.
Outlook
• We remain confident of achieving our return on average tangible equity (‘RoTE’) target of at least 12% for 2023 onwards, which is not dependent on the impact of material acquisitions and disposals. Our 1Q23 annualised RoTE of 27.4% included the annualised impact of our provisional gain on the acquisition of SVB UK and the reversal of an impairment on the planned sale of our retail banking operations in France. After excluding these transactions, annualised RoTE was 19.3%. The annualised RoTE in the first quarter is likely to be higher than in other quarters due to revenue seasonality, and as we do not expect certain favourable tax impacts to recur in subsequent quarters.
• Based on the current market consensus for global central bank rates, our net interest income expectations are unchanged from our full-year guidance. After including an approximately $2bn reduction due to the implementation of IFRS 17 ‘Insurance Contracts’, we expect to achieve net interest income of at least $34bn in 2023. While the interest rate outlook remains positive, we expect continued pressure from increased migration to term deposits as interest rates rise.
• We continue to use a range of 30bps to 40bps of average loans for planning our ECL charges over the medium to long term. While the ECL charge in 1Q23 was relatively benign, given current macroeconomic uncertainty we maintain the guidance provided at our full-year 2022 results of around 40bps of average gross loans in 2023 (including lending balances transferred to held for sale). We continue to monitor risks related to our exposures in mainland China’s commercial real estate sector.
• We remain highly focused on maintaining cost discipline. Our acquisition of SVB UK, and the related investments internationally, are expected to add approximately 1% to the Group’s operating expenses. This is in addition to our 2023 target of keeping cost growth to approximately 3%, excluding the impact of foreign currency translation differences, notable items and the impact of retranslating the 2022 results of hyperinflationary economies at constant currency. We expect the up to $300m severance costs announced at our 2022 full-year results to be concentrated in the second quarter of 2023, with the benefits expected to be realised towards the end of 2023 and into 2024.
• Our current intention is to manage the CET1 ratio within our medium-term target range of 14% to 14.5%, with a dividend payout ratio of 50% for 2023 and 2024, excluding material notable items. Given the strength of our capital position, we have announced a first interim dividend of $0.10 per share and intend to initiate a share buy-back of up to $2bn, which we expect to commence following our 2023 AGM, subject to approval of the relevant resolutions. Our intention is for this to be completed in around three months, although with an expected contractual term of five months. Further buy-backs for 2023 and beyond will be subject to appropriate capital levels. Our capital distributions are independent of both the reversal of the impairment of our retail banking operations in France and our provisional gain on the acquisition of SVB UK.
Business highlights
Our strategy
HSBC’s purpose is ‘Opening up a world of opportunity’. Our strategy, announced in February 2021, aims to deliver against our purpose and our ambition of being the preferred international financial partner for our clients. It has four key pillars:
• focus on our strengths – investing in the areas where we see significant opportunities for growth;
• digitise at scale – increasing our investment in technology to improve how we serve customers and increase efficiency;
• energise for growth – building a strong culture, introducing simpler ways of working, and by equipping staff with the future skills they need; and
• transition to net zero – becoming a net zero bank and helping our customers capture the opportunities presented by the transition to a net zero future.
Our strategy is based on transforming our business and services to customers to create a strengthened platform for enhanced growth and returns on a sustainable basis, across the interest rate cycle. We have taken actions to grow non-interest revenue, increase capital allocation to Asia-Pacific, exit non-core businesses in the West, reduce risk-weighted assets ahead of target, and maintain strict cost discipline despite inflation and significant investment in technology. We are committed to ensuring that shareholders share the benefits of improved performance. We have established a dividend payout ratio of 50% for 2023 and 2024, excluding material significant items, and are confident that we will return the dividend per share to pre-Covid-19 levels.
While interest rates remain elevated in most of our major markets, current market expectations indicate that policy tightening may be close to its peak, and global inflation appears to be levelling out. Notwithstanding these factors, during the first quarter of 2023 the banking industry experienced a period of turbulence, although we continued to demonstrate a strong capital and liquidity position, which resulted in the interim dividend we have announced and the buy-back we expect to commence following our 2023 AGM.
Strategic transactions
During 1Q23, the unexpected interest rate rises in France resulted in the completion of the planned sale of our retail operations in France becoming less certain, as the capital required to be held by the purchaser at completion of the transaction will increase significantly. If the transaction does proceed, it is expected that the closing will be delayed. As a result we are required to change the accounting classification of our retail banking operations in France to no longer be classified as held for sale. We remain committed to pursuing the sale, providing appropriate terms can be agreed, and to supporting our clients and colleagues in France at all times.
In March 2023, we acquired SVB UK. This acquisition strengthens our CMB franchise and enhances our ability to serve innovative and fast-growing firms in the technology and life science sectors in the UK, and internationally.
The plan to sell our banking business in Canada remains a key priority, as we reshape the organisation to focus on our international customer base. The transaction is now expected to complete in the first quarter of 2024 to ensure a smooth transition, and we continue to classify these operations as held for sale. We remain committed to consider the payment of a special dividend of $0.21 per share as a priority use of the proceeds in the first half of 2024. The remaining proceeds will accrue into CET1 capital, we intend to use excess capital to supplement share buy-backs.
For further details of the financial impacts of these transactions, see ‘Strategic transactions’ on page 4.
ESG highlights
We continue to make progress on our net zero ambition, including on our net zero transition plan which we expect to publish in 2023. This plan will provide further details of our strategic approach to net zero, and how we plan to transform our organisation and execute on our commercial ambition.
In December 2022, we published an updated energy policy, which covers our approach for the wider energy sector. We also updated our thermal coal phase-out policy with new financed emissions targets, and extended the policy to exclude finance for the specific purposes of new metallurgical coal mines.
In 2022, we requested and assessed transition plans for EU and OECD managed clients in scope of our thermal coal phase-out policy. We also requested and are assessing transition plans for our major oil and gas clients. In 2023, we expect to complete assessments for remaining clients in scope of our thermal coal phase-out policy and for major oil and gas, and power and utilities clients globally, as well as other clients in EU and OECD markets in scope of our energy policy.
We have set on-balance sheet 2030 financed emissions targets for the following sectors: oil and gas; power and utilities; cement; iron, steel and aluminium; aviation; automotive; and thermal coal. We also plan to extend our analysis to four new sectors – shipping, agriculture, commercial real estate and residential real estate – and set baselines and targets for those in future disclosures.
We have made progress on our disclosures related to thermal coal exposures and facilitated emissions. We expect that our updated thermal coal exposures will be made available for reporting as soon as practicable in 2023, although this remains dependent on the availability and quality of data. We plan to publish our facilitated emissions from our capital markets activities, through our underwriting in debt and equity capital markets and syndicated lending, for the oil and gas, and power and utilities sectors for 2019 and 2020, as soon as practicable in 2023. We also plan to set targets for facilitated emissions once the PCAF standard for capital markets is published, which is expected in 2023.
Basis of preparation
IFRS 17 ‘Insurance Contracts’
On 1 January 2023, HSBC adopted IFRS 17 ‘Insurance Contracts’. As required by the standard, the Group applied the requirements retrospectively with comparative data previously published under IFRS 4 ‘Insurance Contracts’ restated from the 1 January 2022 transition date. Under IFRS 17 there is no present value of in-force business (‘PVIF’) asset recognised up front. Instead the measurement of the insurance contract liability takes into account fulfilment cash flows and a contractual service margin representing the unearned profit. In contrast to the Group’s previous IFRS 4 accounting where profits are recognised up front, under IFRS 17 they are deferred and systematically recognised in revenue as services are provided over the life of the contract. The contractual service margin also includes attributable cost, which had previously been expensed as incurred and which is now incorporated within the insurance liability measurement and recognised over the life of the contract.
The impact of the transition was a reduction of $159m on the Group’s 1Q22 reported revenue and a reduction of $22m to reported profit before tax. Revenue in 1Q22 included adverse market impacts in Wealth and Personal Banking (‘WPB’) of $275m, which are largely absorbed by the contractual service margin under IFRS 17. The Group’s total equity reduced by $10.5bn to $196.3bn on the transition at 1 January 2022 and tangible equity reduced by $2.4bn to $155.8bn. For further details, see our Report on Transition to IFRS 17 ‘Insurance Contracts’ at www.hsbc.com/investors.
Changes to our reporting framework
On 1 January 2023, we updated our financial reporting framework. We no longer report ‘adjusted’ results, which exclude the impact of both foreign currency translation differences and significant items. Instead, we compute constant currency performance by adjusting comparative reported results only for the effects of foreign currency translation differences between the relevant periods. This will enable users to understand the impact of foreign currency translation differences on the Group’s performance. We separately disclose ‘notable items’, which are components of our income statement that management would consider as outside the normal course of business and generally non-recurring in nature. While our primary segmental reporting by global business remains unchanged, effective from 1 January 2023, the Group changed the supplementary presentation of results from geographical regions to main legal entities to better reflect the Group’s structure.
Cost target
At our full-year 2022 results, we set a target for our ‘adjusted’ operating expenses of approximately 3% growth for 2023 compared with 2022. Under our new reporting framework we no longer present ‘adjusted’ results. The exception to this is for operating expenses, where we will adjust reported results for notable items and the period-on-period effects of foreign currency translation differences. We also exclude the impact of re-translating comparative period financial information at the latest rates of foreign exchange in hyperinflationary economies, which is not within our control. We consider that this measure provides useful information to investors by quantifying and excluding the items that management considered when setting and assessing cost-related targets.
Resegmentation
In the first quarter of 2023, following an internal review to assess which global businesses were best suited to serve our customers’ respective needs, a portfolio of our Global Banking customers within our entities in Latin America was transferred from GBM to CMB for reporting purposes. Comparative data have been re-presented accordingly. Similar smaller transfers from GBM to CMB were also undertaken within our entities in Australia and Indonesia, where comparative data have not been re-presented.
Notes
• Income statement comparisons, unless stated otherwise, are between the quarter ended 31 March 2023 and the quarter ended 31 March 2022. Balance sheet comparisons, unless otherwise stated, are between balances at 31 March 2023 and the corresponding balances at 31 December 2022.
• The financial information on which this Earnings Release is based is unaudited. Other than the adoption of IFRS 17 described above, it has been prepared in accordance with our significant accounting policies as described on pages 335 to 348 of our Annual Report and Accounts 2022.
Strategic transactions
France
During 1Q23, the completion of the planned transaction to sell our retail banking operations in France became less certain. This was due to an unexpected rise in interest rates in France, which will increase the amount of capital required by the buyer on completion of the transaction. Given the completion of the sale has become less certain, we are required to change the accounting classification of our retail banking operations in France to be no longer classified as held for sale. This has resulted in a $2.1bn reversal of the previously recognised impairment in respect of the sale of our retail banking operations in France. The previously recognised $0.4bn impairment of goodwill has not been reversed.
Silicon Valley Bank UK Limited
In March 2023, HSBC UK acquired SVB UK. The acquisition will be funded from existing resources and brings the staff, assets and liabilities of SVB UK into the HSBC portfolio.
On acquisition, we performed a preliminary assessment of the fair value of the assets and liabilities purchased. We established an opening balance sheet on 13 March 2023 and applied the result of the fair value assessment, which resulted in a reduction in net assets of $0.2bn. The provisional gain on acquisition of $1,511m represents the difference between the consideration paid of £1 and the net assets acquired. This gain could change as further due diligence is performed. At 31 March 2023, the funding provided to SVB UK by HSBC UK was $2.8bn. After initial deposit outflows following our acquisition of SVB UK, deposits are now stabilising, and client exits have been minimal.
Gain on acquisition At
13 Mar
2023$m Assets acquired 11,490 Liabilities acquired (9,747) Fair value and other revaluation adjustments on acquisition (232) Fair value of net assets acquired 1,511 Amounts above have been translated at rates of foreign exchange on 13 March 2023.
Canada
In November 2022, we announced the planned sale of our banking business in Canada. We regularly reassess the progress of our strategic transactions and continue to classify this business as held for sale. However, we now expect the transaction to complete in 1Q24.
Key financial metrics
Quarter ended
31 Mar
2023Quarter ended
31 Dec
2022Quarter ended
31 Mar
2022Reported results Profit before tax ($m) 12,886 5,049 4,144 Profit after tax ($m) 11,026 4,661 3,432 Cost efficiency ratio (%) 37.6 60.3 66.5 Net interest margin (%) 1.69 1.68 1.19 Basic earnings per share ($)1 0.52 0.22 0.14 Diluted earnings per share ($)1 0.52 0.22 0.14 Dividend per ordinary share (in respect of the period) ($) 0.10 0.23 – Alternative performance measures Constant currency profit before tax ($m) 12,886 5,146 3,838 Constant currency cost efficiency ratio (%) 37.6 60.4 66.6 Expected credit losses and other credit impairment charges (annualised) as % of average gross loans and advances to customers (%) 0.18 0.59 0.25 Expected credit losses and other credit impairment charges (annualised) as % of average gross loans and advances to customers, including held for sale (%)2 0.17 0.56 0.25 Return on average ordinary shareholders’ equity (annualised) (%) 25.5 11.3 6.7 Return on average tangible equity (annualised) (%) 27.4 12.3 7.2 Return on average tangible equity excluding strategic transactions (annualised) (%)3 19.3 12.3 7.2 Constant currency operating expenses excluding notable items ($m)4 (7,525) (7,798) (7,351) At
31 Mar
2023At
31 Dec
2022At
31 Mar
2022Balance sheet Total assets ($m) 2,989,696 2,949,286 3,011,588 Net loans and advances to customers ($m) 963,394 923,561 1,054,073 Customer accounts ($m) 1,604,099 1,570,303 1,709,685 Average interest-earning assets, year to date ($m)5 2,152,893 2,143,754 2,200,896 Loans and advances to customers as % of customer accounts (%) 60.1 58.8 61.7 Total shareholders’ equity ($m) 190,095 177,833 187,076 Tangible ordinary shareholders’ equity ($m) 159,458 146,927 153,747 Net asset value per ordinary share at period end ($) 8.65 8.01 8.25 Tangible net asset value per ordinary share at period end ($) 8.08 7.44 7.70 Capital, leverage and liquidity Common equity tier 1 capital ratio (%)6 14.7 14.2 14.1 Risk-weighted assets ($m)6,7 854,434 839,720 862,318 Total capital ratio (%)6,7 19.8 19.3 19.2 Leverage ratio (%)6,7 5.8 5.8 5.7 High-quality liquid assets (liquidity value) ($bn)7,8 634.9 647.0 688.3 Liquidity coverage ratio (%)7,8 132 132 137 Share count Period end basic number of $0.50 ordinary shares outstanding (millions) 19,736 19,739 19,968 Period end basic number of $0.50 ordinary shares outstanding and dilutive potential ordinary shares (millions) 19,903 19,878 20,134 Average basic number of $0.50 ordinary shares outstanding (millions) 19,724 19,738 20,024 For reconciliation and analysis of our reported results on a constant currency basis, including lists of notable items, see page 34. Definitions and calculations of other alternative performance measures are included in ‘Alternative performance measures’ on page 31.
1 At 1Q23, earnings per share included the impact of the provisional gain recognised in respect of the acquisition of SVB UK of $0.08 (4Q22: nil; 1Q22: nil); the reversal of the impairment loss related to the planned sale of the retail banking operations in France of $0.08 (4Q22: nil; 1Q22: nil); and gains in relation to the planned sale of the banking business in Canada of $0.01 (4Q22: $0.01; 1Q22 nil). Additionally, the earnings per share at 4Q22 included the impact of recognition of certain tax assets of $0.01 (1Q23: nil; 1Q22: nil).
2 Includes average gross loans and advances to customers reported within ‘assets held for sale’.
3 Excludes impacts of the reversal of the impairment loss of $1.6bn (net of tax) relating to the planned sale of the retail banking operations in France, recognised in 3Q22, which is no longer classified as held for sale, and the provisional gain of $1.5bn recognised in respect of the acquisition of SVB UK.
4 Excluding the impact of retranslating prior year costs of hyperinflationary economies at constant currency FX.
5 Average interest earning assets for 31 December 2022 are stated on a year-to-date basis, which differs from the quarter-to-date basis of $2,116,018m presented in the ‘net interest margin’ section on page 12.
6 Unless otherwise stated, regulatory capital ratios and requirements are based on the transitional arrangements of the Capital Requirements Regulation in force at the time. Leverage metrics exclude central bank claims in accordance with the Prudential Regulation Authority’s (‘PRA’) UK leverage framework. References to EU regulations and directives (including technical standards) should, as applicable, be read as references to the UK’s version of such regulation or directive, as onshored into UK law under the European Union (Withdrawal) Act 2018, and as may be subsequently amended under UK law.
7 Regulatory numbers and ratios are as presented at the date of reporting. Small changes may exist between these numbers and ratios and those subsequently submitted in regulatory filings. Where differences are significant, we will restate in subsequent periods.
8 The liquidity coverage ratio is based on the average month-end value over the preceding 12 months.
HSBC Holdings plc will be conducting a trading update conference call with analysts and investors today to coincide with the publication of its Earnings Release. The call will take place at 07.30am BST. Details of how to participate in the call and the live audio webcast can be found at www.hsbc.com/investors.
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HSBC UK Bank acquires Silicon Valley Bank UK Limited
HSBC Holdings plc (LON:HSBA) has announced that its UK ring-fenced subsidiary, HSBC UK Bank plc, is acquiring Silicon Valley Bank UK Limited (SVB UK) for £1.
As at 10 March 2023, SVB UK had loans of around £5.5bn and deposits of around £6.7bn. For the financial year ending 31 December 2022, SVB UK recorded a profit before tax of £88m. SVB UK’s tangible equity is expected to be around £1.4bn. Final calculation of the gain arising from the acquisition will be provided in due course. The assets and liabilities of the parent companies of SVB UK are excluded from the transaction. The transaction completes immediately. The acquisition will be funded from existing resources.
Noel Quinn, Group CEO, said, “This acquisition makes excellent strategic sense for our business in the UK. It strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science sectors, in the UK and internationally.
“We welcome SVB UK’s customers to HSBC and look forward to helping them grow in the UK and around the world. SVB UK customers can continue to bank as usual, safe in the knowledge that their deposits are backed by the strength, safety and security of HSBC. We warmly welcome SVB UK colleagues to HSBC, we are excited to start working with them.”
HSBC will update shareholders on the acquisition at its 1Q 2023 results on 2 May 2023.
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HSBC on track to deliver higher returns in 2023
HSBC Holdings plc (LON:HSBA) has announced its 2022 results.
Noel Quinn, Group Chief Executive, said:
“2022 was another good year for HSBC. We completed the first phase of our transformation and our international connectivity is now underpinned by good, broad-based profit generation around the world. This contributed to a strong overall financial performance. We are on track to deliver higher returns in 2023 and have built a platform for further value creation. With the delivery of higher returns, we will have increased distribution capacity, and we will also consider a special dividend once the sale of HSBC Canada is completed.”
2022 financial performance (vs 2021)
• Reported profit before tax fell by $1.4bn to $17.5bn, including an impairment on the planned sale of our retail banking operations in France of $2.4bn. Adjusted profit before tax increased by $3.4bn to $24.0bn. Reported profit after tax increased by $2.0bn to $16.7bn, including a $2.2bn credit arising from the recognition of a deferred tax asset.
• Reported revenue increased by 4% to $51.7bn, driven by strong growth in net interest income, with increases in all of our global businesses, and higher revenue from Global Foreign Exchange in Global Banking and Markets (‘GBM’). This was in part offset by a $3.1bn adverse impact of foreign currency translation differences, the impairment on the planned sale of our retail banking operations in France and adverse movements in market impacts in insurance manufacturing in Wealth and Personal Banking (‘WPB’). In addition, fee income fell in both WPB and GBM. Adjusted revenue increased by 18% to $55.3bn.
• Net interest margin (‘NIM’) of 1.48% increased by 28 basis points (‘bps’), reflecting interest rate rises.
• Reported expected credit losses and other credit impairment charges (‘ECL’) were $3.6bn, including allowances to reflect increased economic uncertainty, inflation, rising interest rates and supply chain risks, as well as the ongoing developments in mainland China’s commercial real estate sector. These factors were in part offset by the release of most of our remaining Covid-19-related reserves. This compared with releases of $0.9bn in 2021. ECL charges were 36bps of average gross loans and advances to customers.
• Reported operating expenses decreased by $1.3bn or 4% to $33.3bn, reflecting the favourable impact of foreign currency translation differences of $2.2bn and ongoing cost discipline, which were in part offset by higher restructuring and other related costs, increased investment in technology and inflation. Adjusted operating expenses increased by $0.4bn or 1.2% to $30.5bn, including a $0.2bn adverse impact from retranslating the 2022 results of hyperinflationary economies at constant currency.
• Customer lending balances fell by $121bn on a reported basis. On an adjusted basis, lending balances fell by $66bn, reflecting an $81bn reclassification of loans, primarily relating to the planned sale of our retail banking operations in France and the planned sale of our banking business in Canada, to assets held for sale. Growth in mortgage balances in the UK and Hong Kong mitigated a reduction in term lending in Commercial Banking (‘CMB’) in Hong Kong.
• Common equity tier 1 (‘CET1’) capital ratio of 14.2% reduced by 1.6 percentage points, primarily driven by a decrease of a 0.8 percentage point from new regulatory requirements, a reduction of a 0.7 percentage point from the fall in the fair value through other comprehensive income (‘FVOCI’) and a 0.3 percentage point fall from the impairment following the reclassification of our retail banking operations in France to held for sale. Capital generation was mostly offset by an increase in risk-weighted assets (‘RWAs’) net of foreign exchange translation movements.
• The Board has approved a second interim dividend of $0.23 per share, making a total for 2022 of $0.32 per share.
4Q22 financial performance (vs 4Q21)
• Reported profit before tax up $2.5bn to $5.2bn, reflecting strong reported revenue growth and lower reported operating expenses, while reported ECL increased. Adjusted profit before tax up 92% to $6.8bn. Reported profit after tax up $2.9bn to $4.9bn.
• Reported revenue up 24% to $14.9bn, due to strong growth in net interest income and an increase in revenue from Markets and Securities Services (‘MSS’), partly offset by the adverse impact of foreign currency translation differences. Adjusted revenue up 38% to $15.4bn.
• Reported ECL were $1.4bn in 4Q22 and included stage 3 charges relating to exposures in the mainland China commercial real estate sector, as well as corporate exposures in the UK. This compared with charges of $0.5bn in 4Q21.
• Reported operating expenses down 6% to $8.9bn due to the favourable impact of foreign currency translation differences and ongoing cost discipline, which more than offset increases in technology investment and performance-related pay. Adjusted operating expenses up 2% to $7.8bn.
Outlook
• The impact of our growth and transformation programmes, as well as higher global interest rates, give us confidence in achieving our return on average tangible equity (‘RoTE’) target of at least 12% for 2023 onwards.
• Our revenue outlook remains positive. Based on the current market consensus for global central bank rates, we expect net interest income of at least $36bn in 2023 (on an IFRS 4 basis and retranslated for foreign exchange movements). We intend to update our net interest income guidance at or before our first quarter results to incorporate the expected impact of IFRS 17 ‘Insurance Contracts’.
• While we continue to use a range of 30bps to 40bps of average loans for planning our ECL charge over the medium to long term, given current macroeconomic headwinds, we expect ECL charges to be around 40bps in 2023 (including lending balances transferred to held for sale). We note recent favourable policy developments in mainland China’s commercial real estate sector and continue to monitor events closely.
• We retain our focus on cost discipline and will target 2023 adjusted cost growth of approximately 3% on an IFRS 4 basis. This includes up to $300m of severance costs in 2023, which we expect to generate further efficiencies into 2024. There may also be an incremental adverse impact from retranslating the 2022 results of hyperinflationary economies at constant currency.
• We expect to manage the CET1 ratio within our medium-term target range of 14% to 14.5%. We intend to continue to manage capital efficiently, returning excess capital to shareholders where appropriate.
• Given our current returns trajectory, we are establishing a dividend payout ratio of 50% for 2023 and 2024, excluding material significant items, with consideration of buy-backs brought forward to our first quarter results in May 2023, subject to appropriate capital levels. We also intend to revert to paying quarterly dividends from the first quarter of 2023.
• Subject to the completion of the sale of our banking business in Canada, the Board’s intention is to consider the payment of a special dividend of $0.21 per share as a priority use of the proceeds generated by completion of the transaction. A decision in relation to any potential dividend would be made following the completion of the transaction, currently expected in late 2023, with payment following in early 2024. Further details in relation to record date and other relevant information will be published at that time. Any remaining additional surplus capital is expected to be allocated towards opportunities for organic growth and investment alongside potential share buy-backs, which would be in addition to any existing share buy-back programme.
Key financial metrics
For the year ended Reported results 2022 2021 2020 Reported profit before tax ($m) 17,528 18,906 8,777 Reported profit after tax ($m) 16,670 14,693 6,099 Cost efficiency ratio (%) 64.4 69.9 68.3 Net interest margin (%) 1.48 1.20 1.32 Basic earnings per share ($) 0.75 0.62 0.19 Diluted earnings per share ($) 0.74 0.62 0.19 Dividend per ordinary share (in respect of the period) ($) 0.32 0.25 0.15 Dividend payout ratio (%)1 44 40 79 Alternative performance measures Adjusted profit before tax ($m) 24,010 20,603 11,695 Adjusted cost efficiency ratio (%) 55.0 64.0 62.3 Expected credit losses and other credit impairment charges (‘ECL’) as % of average gross loans and advances to customers (%) 0.36 (0.08) 0.87 Expected credit losses and other credit impairment charges (‘ECL’) as % of average gross loans and advances to customers, including held for sale (%)2 0.35 (0.08) 0.87 Return on average ordinary shareholders’ equity (%) 8.7 7.1 2.3 Return on average tangible equity (%) 9.9 8.3 3.1
At 31 DecemberBalance sheet 2022 2021 2020 Total assets ($m) 2,966,530 2,957,939 2,984,164 Net loans and advances to customers ($m) 924,854 1,045,814 1,037,987 Customer accounts ($m) 1,570,303 1,710,574 1,642,780 Average interest-earning assets ($m) 2,203,639 2,209,513 2,092,900 Loans and advances to customers as % of customer accounts (%) 58.9 61.1 63.2 Total shareholders’ equity ($m) 187,484 198,250 196,443 Tangible ordinary shareholders’ equity ($m) 149,355 158,193 156,423 Net asset value per ordinary share at period end ($) 8.50 8.76 8.62 Tangible net asset value per ordinary share at period end ($) 7.57 7.88 7.75 Capital, leverage and liquidity Common equity tier 1 capital ratio (%)3 14.2 15.8 15.9 Risk-weighted assets ($m)3,4 839,720 838,263 857,520 Total capital ratio (%)3,4 19.3 21.2 21.5 Leverage ratio (%)3,4 5.8 5.2 5.5 High-quality liquid assets (liquidity value) ($bn)4,5 647 688 678 Liquidity coverage ratio (%)4,5 132 139 139 Net stable funding ratio (%)4,5 136 N/A N/A Share count Period end basic number of $0.50 ordinary shares outstanding (millions) 19,739 20,073 20,184 Period end basic number of $0.50 ordinary shares outstanding and dilutive potential ordinary shares (millions) 19,876 20,189 20,272 Average basic number of $0.50 ordinary shares outstanding (millions) 19,849 20,197 20,169 For reconciliations of our reported results to an adjusted basis, including lists of significant items, see page 109 of the Annual Report and Accounts 2022. Definitions and calculations of other alternative performance measures are included in our ‘Reconciliation of alternative performance measures’ on page 128 of the Annual Report and Accounts 2022.
1 Dividend per share, in respect of the period, as a percentage of earnings per share adjusted for certain items (recognition of certain deferred tax assets: $0.11 reduction in EPS; planned sales of the retail banking operations in France and banking business in Canada: $0.09 increase in EPS). No items were adjusted in 2021 or 2020.
2 Includes average gross loans and advances to customers reported within ‘assets held for sale’.
3 Unless otherwise stated, regulatory capital ratios and requirements are based on the transitional arrangements of the Capital Requirements Regulation in force at the time. These include the regulatory transitional arrangements for IFRS 9 ‘Financial Instruments’, which are explained further on page 208 of the Annual Report and Accounts 2022. Leverage ratios are reported based on the disclosure rules in force at that time, and include claims on central banks. Current period leverage metrics exclude central bank claims in accordance with the UK leverage rules that were implemented on 1 January 2022. References to EU regulations and directives (including technical standards) should, as applicable, be read as references to the UK’s version of such regulation or directive, as onshored into UK law under the European Union (Withdrawal) Act 2018, and as may be subsequently amended under UK law.
4 Regulatory numbers and ratios are as presented at the date of reporting. Small changes may exist between these numbers and ratios and those subsequently submitted in regulatory filings. Where differences are significant, we will restate in subsequent periods.
5 The liquidity coverage ratio is based on the average value of the preceding 12 months. The net stable funding ratio is based on the average value of four preceding quarters. December 2021 LCR has been restated for consistency. We have not restated the prior periods for NSFR as no comparatives are available.
Statement by Mark E Tucker, Group Chairman
At the start of 2022, the ongoing impact of Covid-19 was the most dominant factor within the external environment. While further outbreaks in Hong Kong and mainland China significantly impacted economic growth, the Russia-Ukraine war and rising inflation and interest rates had an even greater impact on the global economy in 2022. They are also likely to continue to have a greater economic impact than the pandemic in 2023, as we are already seeing with a cost of living crisis affecting many of our customers and colleagues.
Strong financial performance and higher capital distributions
We supported our customers through the challenges that they faced at the same time as executing our strategic plan. The first phase of our transformation is now complete. The work that we have done has enabled us to emerge from the pandemic a stronger bank, better aligned to the international needs of our customers.
The reshaping of our portfolio continued with the announcement of the planned sale of our banking business in Canada. We continued to develop our Wealth capabilities, especially in Asia, and this strategy gained traction in 2022. Our increased investment in technology has improved the customer experience and made our processes more efficient. Meanwhile, we continued to support our clients to transition to net zero, and also took further important steps towards our ambition of aligning our financed emissions to net zero by 2050. Given the urgency of today’s global energy crisis, it is now even more important that we continue to actively engage our clients on how they intend to prepare their businesses for a low-carbon future.
In 2022, reported profit before tax was $17.5bn, a decrease of $1.4bn compared with 2021 due to the $2.4bn impairment on the planned sale of our French retail banking operations. Adjusted profit before tax was $24.0bn, an increase of $3.4bn on last year. All of our businesses grew profits in 2022, and we maintained our strong capital, funding and liquidity positions.
As we signalled at our interim results, we are committed to ensuring our shareholders share the benefits of our improved performance. The Board approved a second interim dividend for 2022 of $0.23 per share, bringing the full year dividend for 2022 to $0.32 per share. We are establishing a dividend payout ratio of 50% of reported earnings per share for 2023 and 2024, excluding material significant items, and we aim to restore the dividend to pre-Covid-19 levels as soon as possible. We also intend to return to paying quarterly dividends from the start of 2023.
Subject to completion of the planned sale of our banking business in Canada, the Board’s intention is to consider the payment of a special dividend of $0.21 per share as a priority use of the proceeds generated. A decision in relation to any potential dividend would be made following the completion of the transaction, currently expected in late 2023, with payment following in early 2024. Any remaining additional surplus capital is expected to be allocated towards opportunities for organic growth and investment alongside share buy-backs, which would be in addition to any existing share buy-back programme.
Board operations
In 2022, the Board met in person in London, Hong Kong, New York and Riyadh – on each occasion also undertaking a wide range of engagements with clients, colleagues, government officials and regulators. The importance of engaging with our teams was also underlined by the appointment of José (Pepe) Meade as Board member with specific responsibility for employee liaison. At the same time as holding some in-person meetings, the continued use of virtual meetings enabled us to retain the benefits of greater efficiency and reduced costs.
At the 2022 Annual General Meeting, Irene Lee and Pauline van der Meer Mohr stepped down from the Board. I am enormously grateful to them for their important and valuable contributions to the Board, the committees and the subsidiary entities on which they have served. Irene remains an independent non-executive Director of The Hongkong and Shanghai Banking Corporation Limited and independent non-executive chair of Hang Seng Bank Limited. Geraldine Buckingham joined the Board as an independent non-executive Director on 1 May.
Following Ewen Stevenson’s departure, Georges Elhedery became Group Chief Financial Officer and joined the Board on 1 January 2023. On behalf of the Board, I would like to again thank Ewen for all that he has done for the bank. His leadership, financial expertise and operational rigour have been invaluable to HSBC, and he leaves with our very best wishes.
We also recently announced some changes to the Board. Kalpana Morparia will join the Board as an independent non-executive Director on 1 March. Jack Tai will retire from the Board at the conclusion of the 2023 AGM, and will be succeeded as Chair of the Group Risk Committee by Jamie Forese. Jack has made a significant and important contribution during his time on the Board, particularly in the strengthening of risk and conduct governance and oversight through a period of major change. We wish him very well in his future endeavours.
Noel and I were delighted to meet face-to-face with our loyal Hong Kong shareholders at our Informal Shareholders Meeting in August. We have always greatly valued their feedback and engagement, and this meeting was as well attended as ever. We were pleased to discuss how our business has performed, our continued support of Hong Kong, and our commitment to growing shareholder value. We look forward to continuing these discussions in person in 2023.
Our strategy is working
There were reports over the course of last year about ideas for alternative structures for HSBC. The Board has been fully engaged in examining these alternatives in depth, with the benefit of independent third-party financial and legal advice. It has been, and remains, our judgement that alternative structural options would not deliver increased value for shareholders. Rather, they would have a material negative impact on value.
For 157 years, we have followed trade and investment flows to support our customers as they fulfil their financial ambitions. We have used our experience, expertise and relationships to help our customers to navigate the world.
Today, we remain steadfastly focused on our core purpose of ‘opening up a world of opportunity’. Our model is particularly relevant to individuals and companies of all sizes whose financial ambitions span multiple countries and regions. Very few, if any, other banks can rival our ability to connect capital, ideas and people through a global network that facilitates the international access and collaboration required to succeed in today’s world.
Our performance in 2022 demonstrates that our current strategy is working and improving returns. We are also confident that it will deliver good returns for our shareholders over the coming years. The Board and management team are fully focused on delivering it.
An uneven macroeconomic outlook
We will need to maintain this focus against an uneven macroeconomic outlook. The pandemic, high inflation and interest rates, and the Russia-Ukraine war all have implications for the global economy, including volatility in markets, supply chain disruption, pressure on small and medium-sized business and squeezes on the cost of living. Different economies also now face different challenges and have different opportunities in 2023.
China’s reopening and package of measures to stabilise the property market should provide a significant boost for its economy and the global economy, albeit with some near-term volatility. Our economists forecast China’s GDP will grow 5% in 2023. The reopening of the border means that Hong Kong, and the entire Greater Bay Area, are likely to be major beneficiaries, and I expect to see a strong recovery.
More broadly, Asia as a whole has proven resilient and there is the prospect of a strong rebound later in the year. Virtually all economies in the region have now recovered the output losses incurred during the pandemic and are above 2019 levels.
The Middle East economies enjoyed a strong 2022, and we expect this momentum to continue in 2023 on the back of the important reforms underway to transform, diversify and grow the region’s economies. We see strong and growing demand to connect clients in the Middle East with Asia’s economies, and vice versa.
In contrast, Europe, including the UK, face challenges from higher energy prices fuelling inflation and necessitating higher interest rates, driven in part by the Russia-Ukraine war. All of these factors are contributing to a cost of living crisis and more economic uncertainty. We expect that any recession, if there is one at all, will be relatively shallow.
The US economy is proving resilient and a hard landing appears unlikely. Some economists believe that inflation may now have peaked in the US, and there is consensus that the US will avoid recession. I expect the US to make an important contribution to global GDP growth in 2023.
Overall, I am optimistic about the global economy in the second half of 2023, but there is still a high level of uncertainty due to the Russia-Ukraine war and recessionary fears may yet dominate much of the year ahead.
Navigating geopolitics remains challenging
The geopolitical environment remains challenging for our clients to navigate. There is sadly no end in sight to the Russia-Ukraine war. However, the West’s relationship with China appears to be relatively stable. The renewed, constructive dialogue between President Xi and President Biden at the G20 in November was clearly important. While further US sanctions are expected this year, capital flows between China and the West increased during the pandemic, even with reciprocal tariffs in place. China is also taking an active approach to diplomatic engagement with European nations, including the UK. China’s reopening will also allow for the resumption of face-to-face visits, which will support greater dialogue between China and important partners such as Germany, France and the UK. We also naturally continue to engage with governments around the world.
One of the key trends of the past three years has been supply chain disruption, due largely to a combination of geopolitics, pandemic and war-related factors. Businesses are seeking to build greater resilience into their supply chains, reduce their dependence on sole suppliers or regions, and take the opportunity to digitise. I expect these trends all to continue throughout 2023. HSBC’s global network means we are well placed to adapt to regional diversification that takes place within supply chains.
Thank you to my colleagues
Finally, my colleagues have once again shown great dedication, energy and care in serving our customers and working together over the past year. They have exemplified our purpose of ‘opening up a world of opportunity’ and our core values. While we want to achieve even more in 2023 and beyond, I am very proud of what they achieved in 2022 – and I am extremely grateful to each of them.
Mark E Tucker
Group Chairman
21 February 2023
Review by Noel Quinn, Group Chief Executive
We have completed the first phase of our transformation. Our international connectivity is now underpinned by good, broad-based profit generation around the world. Our focus is now on continuing to grow our core business, while also capitalising on the new sources of value creation that we have built.
When we embarked on our transformation programme in February 2020, our aim was to address the fundamental issues that had contributed to a decade of low returns. It was clear to me that too much of our capital was being used inefficiently, too many of our businesses were loss-making and sub-scale, and too many of our clients were low returning and purely domestic in nature. Over the last three years, while responding to the challenges of the pandemic, we have structurally repositioned our businesses and operating model to achieve higher returns.
The most significant changes to our portfolio have been the exit and wind-down of non-strategic assets and clients in the Americas and Europe, and the investment in technology and in organic and inorganic growth in Asia, especially in Wealth and Personal Banking. We have completed the sale of our US mass market retail business, and announced the planned exit of our French retail banking operations and the planned sale of our banking business in Canada. We have also announced exits in other smaller businesses, including Greece and Russia. A key factor in assessing the strategic value of our businesses has been whether they capitalise on the distinct advantages that we have, especially those derived from our global network.
Our work to increase capital efficiency resulted in cumulative risk-weighted asset savings of $128bn by the end of 2022, in excess of our original target as we accelerated restructuring in the US and Europe. This enabled us to reallocate capital towards Asia and the Middle East.
Finally, we have transformed our cost base and restored tight cost discipline across the organisation. Our cost to achieve programme concluded at the end of 2022, but it enabled us to take multiple layers of inefficiency out of the business and embed changes that we expect to provide flow-through benefits for years to come.
Building a good platform for future growth
At the same time, we have invested in new sources of value creation that provide a good platform for future growth. Developing our capabilities in Wealth, particularly in Asia, has been a strategic priority as we have sought to diversify our revenues. We have done this organically through the build-out of our Pinnacle business in mainland China, and inorganically through the purchases of AXA Singapore and L&T Investment Management in India, by increasing our stake to 90% in HSBC Qianhai Securities, and by taking full ownership of our HSBC Life China insurance business. The traction that we are gaining in Wealth is reflected by the $80bn of net new invested assets that we attracted in 2022, $59bn of which were in Asia.
Our core purpose is ‘opening up a world of opportunity’ and that, in essence, is what we do by helping our personal and corporate customers to move money between countries and do business across borders. This is still the best way for us to create value, and what makes us a world leading bank for international and mid-market customers. We are the number one trade finance bank, and trade revenue was up 13% in 2022, surpassing the good level of growth in the previous year. Trade also increased in all regions.
We are also one of the leading global foreign exchange houses and a leading payments company globally, with over $600tn of payments processed in 2022. Our global connectivity has made international our fastest-growing revenue segment in Wealth and Personal Banking. Products like Global Money and our Wealth platforms are specifically designed to meet the international needs of our retail and wealth customers. These customers also provide around double the average revenue of domestic-only customers.
The difference compared with three years ago is that our international connectivity is now underpinned by good broad-based profit generation around the world. Already the leading bank in Hong Kong, we gained market share last year in key products including customer deposits, insurance and trade finance. We are also the leading foreign bank in mainland China by revenue and are pleased to have received seven main licence approvals since 2020. Our business in India delivered $0.9bn of profit before tax last year and facilitated the equivalent of around 9% of India’s exports. In the Middle East, we delivered $1.8bn of profits and were the number one bank in capital markets league tables. HSBC UK delivered $5bn of profits and was the number one bank for trade finance, while our non-ring-fenced bank in Europe delivered $2.1bn of profits and around 35% of its client business was booked outside the region. Our US business has now had nine consecutive quarters of profitability after its turnaround, while our business in Mexico delivered a return on tangible equity of 18%.
The cost savings that we have made have been reinvested in technology, which has in turn enabled us to change the way we operate as a business. Technology spending was 19% higher in 2022 than in 2019. Much of this investment has been used to rebuild and upgrade platforms, which we have then rolled out globally. Our upgraded mobile banking app is available in 24 markets and has around 13 million active users, while our upgraded digital trade finance platform has been rolled out in the UK and Hong Kong, ensuring that market-leading businesses are well positioned for the next 10 years. In 2022, we launched HSBC Orion, our new proprietary tokenisation platform using blockchain technology for bond issuances. We’re also partnering with fintechs around the world to use their capabilities in our products. Finally, we are investing in greater automation, which we expect to reap the benefits from for years to come.
Empowering our people has underpinned everything that we have achieved over the past three years – and it will underpin the next phase of our strategy too. Reducing management layers has helped to increase our speed and agility. In our last staff survey, the number of colleagues who report that work processes allow them to work efficiently was 6 percentage points above the sector benchmark. Confidence within the organisation has also increased. 77% of colleagues told us they are confident about our future, which is 3 percentage points up on 2021. We have continued to make steady progress against our medium-term targets on gender and ethnicity representation, while the number of hours that colleagues spent learning about digital and data, and sustainability also increased by 13% last year, underlining the importance of these critical future skills.
The transition to net zero will offer increasingly significant commercial opportunities in the future. We have continued to make good progress towards our ambition of providing and facilitating $750bn to $1tn of sustainable financing and investment by 2030. At the end of 2022, the cumulative total for sustainable financing and investment since 2020 had reached more than $210bn. We published an updated energy policy, which commits us to no longer provide new finance or advisory services for the specific purpose of projects pertaining to new oil and gas fields and related infrastructure whose primary use is in conjunction with new fields. As per our policy, we will continue to provide finance to maintain supplies of oil and gas in line with declining current and future global demand, while accelerating our activities in support of clean energy. We have also set interim 2030 targets for on-balance sheet financed emissions for eight sectors. These include six sectors for which we have reported 2019 and 2020 emissions. We recognise that methodologies and data for measuring emissions will continue to evolve, and our own disclosures will therefore continue to develop as a result. In 2023, we will publish our first bank-wide climate transition plan.
Strong overall financial performance in 2022
The progress that we have made transforming HSBC and investing in growth has helped to drive an improved financial performance in 2022. A strong net interest income performance reflected higher global interest rates, but there was also good underlying growth across the business in key areas, particularly those linked to our international network.
Overall, the Group delivered $17.5bn of reported profit before tax, which was $1.4bn lower than in 2021. This was due to a net expected credit loss charge of $3.6bn compared with a net release of $0.9bn last year, as well as the impairment of $2.4bn relating to the planned sale of our retail banking operations in France. Adjusted profit before tax was $24bn, up $3.4bn.
Adjusted revenue was 18% higher than the same period last year, as net interest income grew strongly in all of our global businesses. There was also a strong performance in Global Foreign Exchange. Our reported return on tangible equity for 2022 was 9.9%. Excluding significant items, we delivered a return on tangible equity of 11.6%.
There was a good performance across our global businesses. In Commercial Banking, adjusted profit before tax was up by 24% to $7.7bn, driven by revenue increases across all products and in all regions, most notably Asia and the UK. Within this, Global Payments Solutions revenue grew by 104% on the back of higher interest rates, while trade revenue was up 14% with growth in all regions.
Global Banking and Markets delivered adjusted profit before tax of $5.4bn, up 8% compared with 2021. Global Payments Solutions was again the main driver, with 119% growth in net interest income from higher interest rates, and a strong performance in Global Foreign Exchange. In Wealth and Personal Banking, adjusted profit before tax of $8.5bn was 27% higher than 2021. Net interest income growth drove a good performance in Personal Banking, while there was also balance sheet growth in the UK, Asia outside Hong Kong, and Mexico.
We restricted adjusted cost growth to 1% in 2022 as a result of the significant cost-saving actions that we have taken. This represents a good outcome given the high inflation environment. After good capital generation in the fourth quarter, our CET1 ratio at the end of 2022 was 14.2% and back within our target range of 14% to 14.5%. We are able to pay a second interim dividend of $0.23 per share, bringing the total 2022 dividend to $0.32 per share.
Improved returns and substantial distribution capacity
We are firmly on track to achieve our target of a return on tangible equity of at least 12% from 2023 onwards. We have built up a good level of expected credit loss provisions, and we also expect the headwinds associated with macroeconomic uncertainty and the ongoing challenges within the China commercial real estate sector to subside, enabling expected credit losses to start to normalise.
There will be no easing off at all on costs. Our cost to achieve programme has now ended, but we will continue to seek and find opportunities to create efficiencies that will deliver sustainable cost savings in future years. We are now considering up to $300m of additional costs for severance in 2023. These costs will need to be reported in our costs line. Taking this into account, we will aim for approximately 3% cost growth in 2023. Tight cost discipline will remain a priority for the whole Group.
As a result of the improving quality of our returns, we are establishing a dividend payout ratio of 50% of reported earnings per share for 2023 and 2024, excluding material significant items. We will aim to restore the dividend to pre-Covid-19 levels as soon as possible. We also intend to revert to paying quarterly dividends from the start of 2023. Given the capital generation at the end of 2022, we will bring forward the consideration of buy-backs to the announcement of our results for the first quarter of 2023.
Finally, subject to the completion of the sale of our banking business in Canada, I am pleased that the Board will consider payment of a special dividend of $0.21 per share in early 2024 as a priority use of the surplus capital generated by the transaction. We understand the importance of dividends to our shareholders and expect them to benefit from improved capital distributions ahead.
My colleagues are getting it done
I would like to end by thanking my colleagues around the world. Over the last three years, they have managed a period of substantial change, embraced the opportunities that our transformation has presented and gone the extra mile to support our customers – all while living through a global pandemic. More recently, there have also been the Russia-Ukraine war, the real-life financial strains caused by high inflation and the devastating earthquakes in Türkiye for them to deal with. We have only made the progress that we have because of their efforts. They are exemplifying our value of getting it done, and I am proud to lead them.
Overall, 2022 was another good year for HSBC. We completed the first phase of our transformation and our international connectivity is now underpinned by good, broad-based profit generation around the world. This contributed to a strong overall financial performance. We are on track to deliver higher returns in 2023 and have built a platform for further value creation. With the delivery of higher returns, we will have increased distribution capacity, and we will also consider a special dividend once the sale of HSBC Canada is completed.
Noel Quinn
Group Chief Executive
21 February 2023
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HSBC to hold video webcast presentation and conference call today
HSBC Holdings plc (LON:HSBA) will be holding a video webcast presentation and conference call today for investors and analysts. The speakers will be Noel Quinn (Group Chief Executive) and Ewen Stevenson (Group Chief Financial Officer).
A copy of the presentation to investors and analysts is attached and is also available to view and download at https://www.hsbc.com/investors/results-and-announcements/all-reporting/group.
http://www.rns-pdf.londonstockexchange.com/rns/3483U_1-2022-7-31.pdf
Full details of how to access the conference call appear below and details of how to access the webcast can also be found at www.hsbc.com/investors/results-and-announcements.
Time: 7.30am (London); 2.30pm (Hong Kong); and 2.30am (New York).
Webcast: https://streamstudio.world-television.com/768-1961-33211/en
Conference call access numbers:
Restrictions may exist when accessing freephone/toll-free numbers using a mobile telephone.
Passcode: 9489657
Toll-free Toll UK 0800 917 6808 US 866 844 9413 Hong Kong +852 3001 3802 International +1 210 795 0512 Replay access details from 1 August 2022 10.00am BST – 31 August 2022 11.00am BST
Passcode: 9489657
Toll-free Toll UK 0800 376 1127 +44 20 3430 7153 US +1 866 393 0865 +1 203 369 0432 Hong Kong +852 3018 4150 International +1 203 369 0432 HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 63 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa.
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Market Risers: Ethernity Networks Ltd, Experian, HSBC Holdings
Shares of Ethernity Networks Ltd with ticker code: LON:ENET has increased 6.71% or 3.57 points during the course of today’s session so far. Market buyers seem confident during the trading session. The period high was 58 dipping to 53.2. The total volume of shares exchanged so far has reached 302,281 whilst the daily average number of shares exchanged is just 299,889. A 52 week share price high is 58 some 4.8 points in difference on the previous days close and a 52 week low being 11.16 which is a variance of 42.04 points. Ethernity Networks Ltd now has a 20 simple moving average of 39.01 with a 50 day moving average at 35.91. Market capitalisation for the company is £29.28m at the time of this report. All share prices mentioned for this stock are traded in GBX. Mcap is measured in GBP. This article was written with the last trade for Ethernity Networks Ltd being recorded at Tuesday, April 27, 2021 at 12:15:10 PM GMT with the stock price trading at 56.77 GBX.
Stock in Experian company symbol: LON:EXPN has risen 1.48% or 40.59 points during today’s session so far. Traders have remained optimistic throughout the trading session. Range high for the period so far is 2785 dipping to 2733. The volume total for shares traded up to this point was 465,290 with the daily average number around 2,301,531. A 52 week high for the stock is 3192 some 448 points difference from the previous days close and the 52 week low at 2265 is a variance of 479 points. Experian now has a 20 moving average of 2667.33 and now a 50 day moving average now at 2539.07. Market capitalisation is now £25,507.33m at the time of this report. The stock is traded in GBX. Mcap is measured in GBP. This article was written with the last trade for Experian being recorded at Tuesday, April 27, 2021 at 12:20:43 PM GMT with the stock price trading at 2784.59 GBX.
Shares of HSBC Holdings ticker code: LON:HSBA has risen 3.16% or 13.35 points during today’s session so far. Buyers seem confident while the stock has been in play. The periods high has reached 436.5 meanwhile the session low reached 422. The number of shares traded by this point in time totalled 10,984,532 with the daily average at 25,172,667. A 52 week share price high is 456.8 some 34.05 points difference from the previous close and the 52 week low at 281.5 is a variance of 141.25 points. HSBC Holdings has a 20 SMA of 429.72 and also a 50 day moving average of 432.98. This puts the market cap at £88,927.46m at the time of this report. The share price is in Great British pence. Mcap is measured in GBP. This article was written with the last trade for HSBC Holdings being recorded at Tuesday, April 27, 2021 at 12:22:28 PM GMT with the stock price trading at 436.1 GBX.
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HSBC to propose a special resolution on climate change at the AGM
HSBC Holdings plc (LON:HSBA) has announced it will propose a special resolution on climate change at the Annual General Meeting on 28 May 2021. The resolution will set out the next phase of HSBC’s strategy to support its customers on the transition to net zero carbon emissions.
HSBC’s resolution will be the sole resolution on climate change at this year’s AGM. HSBC is pleased that ShareAction and a number of shareholders who had originally proposed a separate shareholder resolution on climate change, have agreed to withdraw this and support HSBC’s resolution, following constructive and positive discussions based on a common goal of helping to build a net zero global economy.
In October 2020, HSBC set out its ambition to reduce emissions in its operations and supply chain to net zero by 2030, and to align the bank’s financed emissions at a portfolio level to net zero by 2050 or sooner.
The HSBC resolution outlines the next phase of the bank’s net zero strategy, with a particular emphasis on how it will support its customers on their own transition journeys. The bank expects to provide between US$750bn and US$1trn in financing and investment to support its customers to progressively decarbonise and help realise the opportunity for long-term, sustainable growth.
The resolution and supporting statement will set out the detail of HSBC’s plan to pursue its ambition.
It commits to:
1. Set a clear, science-based strategy with short and medium term targets to align HSBC’s provision of finance1 to the Paris Agreement goals2:
“This… would see HSBC work with customers in all sectors to support their transition. … We intend to perform this analysis by industry sector, beginning in 2021 with Oil & Gas and Power & Utilities, and extending to other sectors in 2022 (for example Automotive, Building Materials, Construction). We believe this approach will allow us to identify opportunities for constructive engagement with customers, while also helping to ensure progress on aligning our financing activities at a sector and portfolio level with the goals of the Paris Agreement.
We intend to set clear, measurable short and medium term targets on a sector by sector basis that are consistent with net zero outcomes by 2050. In relation to short and medium term, we expect this to mean targets for the next five to ten years. We plan to use science-based scenarios that follow 1.5 degrees Celsius warming pathways, and which are not overly reliant on negative emissions technologies, to assess alignment of our financing activities. We plan to provide further detail on this approach by the end of 2021, starting with the Oil & Gas and Power & Utilities sectors, and including methodology, scenarios, treatment of negative emissions and core assumptions used.”
2. Publish and implement a policy to phase out the financing1 of coal-fired power and thermal coal mining by 2030 in markets in the European Union / Organisation for Economic Cooperation and Development, and by 2040 in other markets:
“Our current policies prohibit financing by HSBC of new coal-fired power plant projects and new thermal coal mines or new customers dependent on thermal coal mining. However, although thermal coal is currently used widely as a source of power generation in many markets, we recognise that the expansion of coal-fired power is incompatible with the goals of the Paris Agreement. Reliance on coal-fired power will need to reduce rapidly in order to achieve net zero aims. Failure to do so will heighten risks posed by climate change to society, as well as transition risk for HSBC’s own business. We also appreciate that emerging markets, in which we have a strong presence, are significantly more reliant on coal as a source of energy and will need more time to transition.
We are therefore committing to publish by the end of 2021 a policy that will phase out financing of coal-fired power and thermal coal mining in the European Union and Organisation for Economic Cooperation and Development markets by 2030, and in all other markets by 2040. The policy will provide further detail on the phase out plan, its scope and interim targets; we will engage with ShareAction, representatives of the group of co-filing institutions and other stakeholders in the development of this policy… During this process, we will work with our customers to help them develop their individual decarbonisation plans aligned to the Paris Agreement goals.”
3. Report on progress against that strategy and policy on an annual basis, starting with the 2021 Annual Report and Accounts:
“We will report progress on our net zero aligned finance strategy and on reducing our exposures to coal-fired power and thermal coal mining on an annual basis, starting with the 2021 Annual Report and Accounts which is to be published in February 2022. We plan to use our 2020 Task Force on Climate-related Financial Disclosures (TCFD) as our baseline for this disclosure.”
HSBC believes its approach sets a leading standard for the financial services sector as it collectively works to tackle climate change, and, crucially, recognises the importance of working in partnership with customers on their transition.
Noel Quinn, Group Chief Executive said:
“We are delighted to be setting out the next phase of our net zero strategy in this resolution, and invite our shareholders to support us on this journey. We are pleased that ShareAction and a group of shareholders have agreed to support the resolution and would like to thank them for their positive ongoing engagement and constructive challenge and input as we have shaped the detail of our plans to support the direct financing requirements of our corporate clients in the low carbon transition. This represents an unprecedented level of co-operation between a bank, shareholders, and NGOs on a critical issue, with a positive outcome for all.”
The resolution and supporting statement will be published in the forthcoming AGM Notice of Meeting on 24 March.
Footnotes:
1 ‘Finance’ and ‘financing’ means providing project finance or direct lending to, or underwriting capital markets transactions for, corporate clients of our Global Banking and Commercial Banking businesses.
2 As set out by Article 2.1(a) and Article 4.1 of the Paris Agreement: https://unfccc.int/files/essential_background/convention/application/pdf/english_paris_agreement.pdf
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Market Risers: HSBC Holdings, ITV, KRM22, Lloyds Banking Group
The stock price for HSBC Holdings with company EPIC: LON:HSBA has stepped up 3.74% or 16.35 points during today’s session so far. Investors have stayed positive throughout the trading session. The periods high has already touched 456.8 dipping to 443.3. The total volume traded so far comes to 9,361,116 while the average shares exchanged is 25,852,745. The 52 week high for the share price is 523 amounting to 85.4 points difference from the previous days close and putting the 52 week low at 281.5 a difference of some 156.1 points. HSBC Holdings has a 20 SMA of 424.98 and now its 50 day moving average now of 412.11. Market capitalisation is now £92,464.03m at the time of this report. The currency for this stock is GBX. Market cap is measured in GBP. This article was written with the last trade for HSBC Holdings being recorded at Monday, March 8, 2021 at 12:32:01 PM GMT with the stock price trading at 453.95 GBX.
Shares in ITV company symbol: LON:ITV has increased 3% or 3.5 points in today’s trading session so far. Investors seem confident while the stock has been in play. The period high was 121.05 while the low for the session was 117.6. Volume total for shares traded at this point reached 4,032,298 while the daily average number of shares exchanged is 11,743,743. A 52 week high for the stock is 121.05 amounting to 4.4 points different to the previous business close and a 52 week low sitting at 50.06 a difference of some 66.59 points. ITV now has a 20 SMA of 113.87 and the 50 day simple moving average now at 111.49. This puts the market cap at £4,836.53m at the time of this report. Share price is traded in GBX. Mcap is measured in GBP. This article was written with the last trade for ITV being recorded at Monday, March 8, 2021 at 12:32:03 PM GMT with the stock price trading at 120.15 GBX.
Shares of KRM22 ticker code: LON:KRM has stepped up 4.76% or 2 points throughout the session so far. Buyers have so far held a positive outlook throughout the trading session. The periods high has already touched 44 meanwhile the session low reached 44. The total volume of shares exchanged through this period comes to 2,000 with the daily average number around 2,495. The stock 52 week high is 51.5 which is 9.5 points difference from the previous days close and the 52 week low at 20 making a difference of 22 points. KRM22 has a 20 day moving average of 41.2 and now a 50 day moving average now at 41.66. The current market capitalisation is £11.76m at the time of this report. The currency for this stock is Great British pence.Market cap is measured in GBP. This article was written with the last trade for KRM22 being recorded at Monday, March 8, 2021 at 10:47:32 AM GMT with the stock price trading at 44 GBX.
The trading price for Lloyds Banking Group company symbol: LON:LLOY has moved up 3.82% or 1.53 points throughout the session so far. Traders have remained optimistic throughout the trading session. The high for the period has reached 41.77 meanwhile the session low reached 40.29. The total volume traded so far comes to 133,535,693 with the daily average number around 248,154,390. The 52 week high is 59.94 amounting to 19.86 points difference from the previous close and the 52 week low at 23.59 which is a difference of 16.49 points. Lloyds Banking Group now has a 20 simple moving average of 39.29 and now a 50 day moving average now of 37.5. The market capitalisation is now £29,477.30m at the time of this report. Share price is traded in GBX. Mcap is measured in GBP. This article was written with the last trade for Lloyds Banking Group being recorded at Monday, March 8, 2021 at 12:31:59 PM GMT with the stock price trading at 41.61 GBX.
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HSBC holding a video webcast presentation and conference call today
HSBC Holdings plc (LON:HSBA) will be holding a video webcast presentation and conference call today for investors and analysts.
The speakers will be Noel Quinn (Group Chief Executive), Ewen Stevenson (Group Chief Financial Officer), Peter Wong (Deputy Chairman and Chief Executive, The Hongkong and Shanghai Banking Corporation Limited), Nuno Matos (Chief Executive of Wealth and Personal Banking) and John Hinshaw (Group Chief Operating Officer).
Full details of how to access the conference call appear below and details of how to access the webcast can also be found at www.hsbc.com/investors/results-and-announcements.
Time: 7.30am (London); 3.30pm (Hong Kong); and 2.30am (New York).
Webcast: https://streamstudio.world-television.com/CCUIv3/registration.aspx?ticket=768-1956-27204&target=en-kontiki-&status=preview&browser=ns-0-1-0-0-0
Click on, or paste the following link into your web browser, to view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/9665P_1-2021-2-23.pdfConference call access numbers:
Restrictions may exist when accessing freephone/toll-free numbers using a mobile telephone.
Passcode: 8647018
Toll-free Toll UK 0808 238 1616 US 1 866 551 9263 Hong Kong 800 967 131 International +44 (0)20 7192 8727 Replay access details from 23 February 1:00pm GMT – 23 March 2020 1:00pm GMT
Passcode: 8647018
Toll-free Toll UK 0808 238 0667 US 1 866 331 1332 Hong Kong 58085596 International +44 (0) 333 300 9785 A copy of the presentation to investors and analysts is attached and is also available to view and download at https://www.hsbc.com/investors/results-and-announcements/all-reporting/group.
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Market Fallers: Berkeley Group Holdings, easyJet, HSBC Holdings, Rolls-Royce Holding
The share price for Berkeley Group Holdings with EPIC code: LON:BKG has decreased -2.42% or -107 points throughout the session so far. Investors were not positive during the session. The period high has peaked at 4512 and a low of 4274. The total volume of shares exchanged through this period comes to 243,497 while the daily average number of shares exchanged is 473,393. The 52 week high for the share price is 5562 some 1141 points difference from the previous days close and the 52 week low at 3041 is a variance of 1380 points. Berkeley Group Holdings now has a 20 SMA at 4798.35 and also a 50 day moving average at 4548.26. The current market capitalisation is £5,398.60m at the time of this report. All share prices mentioned for this stock are traded in GBX. Mcap is measured in GBP. This article was written with the last trade for Berkeley Group Holdings being recorded at Tuesday, December 8, 2020 at 2:02:05 PM GMT with the stock price trading at 4314 GBX.
The share price for easyJet ticker code: LON:EZJ has moved down -3.23% or -29 points throughout today’s trading session so far. Market sellers were far from a positive bunch while the stock has been in play. The periods high has already touched 890 dropping as low as 855. The number of shares traded by this point in time totalled 2,468,824 while the average shares exchanged is 5,805,624. The 52 week high is 1570 around 672.8 points difference from the previous days close and the 52 week low at 410 is a variance of 487.2 points. easyJet now has a 20 simple moving average of 824.37 and also a 50 day moving average now of 647.97. Market capitalisation is now £3,964.59m at the time of this report. The share price is in Great British pence. Mcap is measured in GBP. This article was written with the last trade for easyJet being recorded at Tuesday, December 8, 2020 at 2:02:18 PM GMT with the stock price trading at 868.2 GBX.
Stock in HSBC Holdings EPIC code: LON:HSBA has declined -3.44% or -14.15 points during today’s session so far. Sellers have not remained optimistic while the stock has been in play. The periods high has already touched 403.25 and hitting a low of 395.9. Volume total for shares traded during this period was 11,020,838 with the daily average number around 40,508,760. The 52 week high is 602.9 around 191.35 points in difference on the previous days close and a 52 week low being 281.5 a difference of some 130.05 points. HSBC Holdings now has a 20 SMA of 398.26 and a 50 day moving average of 351.94. The market capitalisation is now £80,943.39m at the time of this report. The stock is traded in GBX. Mcap is measured in GBP. This article was written with the last trade for HSBC Holdings being recorded at Tuesday, December 8, 2020 at 2:02:20 PM GMT with the stock price trading at 397.4 GBX.
Shares of Rolls-Royce Holding with ticker code: LON:RR has slid -3.21% or -4.2 points during today’s session so far. Market sellers were far from a positive bunch during this period. The high for the period has peaked at 130.4 while the low for the session was 125.1. Volume total for shares traded during this period was 23,191,951 with the daily average traded share volume around 97,691,302. A 52 week high for the stock is 249.14 about 118.29 points different to the previous business close and a 52 week low sitting at 34.59 a difference of some 96.26 points. Rolls-Royce Holding now has a 20 moving average of 114.04 and now its 50 day moving average now of 89.95. Market capitalisation for the company is £10,597.56m at the time of this report. All share prices mentioned for this stock are traded in GBX. Mcap is measured in GBP. This article was written with the last trade for Rolls-Royce Holding being recorded at Tuesday, December 8, 2020 at 2:02:13 PM GMT with the stock price trading at 126.65 GBX.
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Market Risers: Centralnic Group, easyJet, HSBC Holdings, Imperial Brands
The trading price for Centralnic Group found using EPIC: LON:CNIC has increased 7.3% or 5.91 points during today’s session so far. Market buyers seem confident while the stock has been in play. The periods high has already touched 87 and a low of 81.95. Volume total for shares traded during this period was 70,453 with the average number of shares traded daily being 220,312. The 52 week high for the share price is 97.99 equating to 16.99 points in difference to the previous days close of business and a 52 week low sitting at 47.5 making a difference of 33.5 points. Centralnic Group now has a 20 SMA at 79.95 and now a 50 day moving average now at 84.03. Market capitalisation for the company is £203.14m at the time of this report. All share prices mentioned for this stock are traded in GBX. Mcap is measured in GBP. This article was written with the last trade for Centralnic Group being recorded at Monday, November 16, 2020 at 11:08:47 AM GMT with the stock price trading at 86.91 GBX.
Shares of easyJet found using EPIC: LON:EZJ has risen 4.64% or 34.2 points during today’s session so far. Buyers have so far held a positive outlook throughout the trading session. The high for the period has peaked at 775.8 while the low for the session was 752.67. The amount of shares exchanged has so far reached 1,402,679 with the average number of shares traded daily being 5,143,216. The 52 week high for the share price is 1570 around 833.6 points difference from the previous close and the 52 week low at 410 which is a difference of 326.4 points. easyJet now has a 20 moving average of 586.65 and also a 50 day moving average now of 562.3. The current market capitalisation is £3,519.71m at the time of this report. Share price is traded in GBX. Mcap is measured in GBP. This article was written with the last trade for easyJet being recorded at Monday, November 16, 2020 at 11:45:50 AM GMT with the stock price trading at 770.6 GBX.
Shares in HSBC Holdings ticker code: LON:HSBA has moved up 2.29% or 8.55 points throughout today’s trading session so far. Buyers have remained optimistic during this period. The periods high has already touched 383.4 while the low for the session was 376.05. The total volume of shares traded by this point was 7,019,104 with the average number of shares traded daily being 31,982,509. The 52 week high is 602.9 around 230.2 points difference from the previous days close and the 52 week low at 281.5 which is a difference of 91.2 points. HSBC Holdings now has a 20 SMA at 340.43 and now a 50 day moving average now of 323.14. The market capitalisation is now £77,641.26m at the time of this report. The share price is in Great British pence. Mcap is measured in GBP. This article was written with the last trade for HSBC Holdings being recorded at Monday, November 16, 2020 at 11:45:53 AM GMT with the stock price trading at 381.25 GBX.
Shares of Imperial Brands ticker code: LON:IMB has increased 2.58% or 35 points during the course of today’s session so far. Traders seem confident throughout the trading session. The high for the period has peaked at 1393.5 meanwhile the session low reached 1352. The number of shares traded by this point in time totalled 483,212 with the daily average traded share volume around 2,078,169. A 52 week share price high is 2072 some 716 points in difference to the previous days close of business and a 52 week low sitting at 1203 which is a variance of 153 points. Imperial Brands now has a 20 moving average of 1293.93 and the 50 day simple moving average now at 1344.88. The market capitalisation currently stands at £13,164.54m at the time of this report. The currency for this stock is Great British pence.Market cap is measured in GBP. This article was written with the last trade for Imperial Brands being recorded at Monday, November 16, 2020 at 11:45:46 AM GMT with the stock price trading at 1391 GBX.
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HSBC to hold audio webcast presentation for investors and analysts today
HSBC Holdings plc (LON:HSBA) will be holding an audio webcast presentation and conference call today for investors and analysts. The speakers will be Noel Quinn, Group Chief Executive and Ewen Stevenson, Group Chief Financial Officer.
A copy of the presentation to investors and analysts is attached and is also available to view and download at https://www.hsbc.com/investors/results-and-announcements/all-reporting/group’.
http://www.rns-pdf.londonstockexchange.com/rns/3078D_1-2020-10-27.pdf
Full details of how to access the conference call appear below and details of how to access the webcast can also be found at www.hsbc.com/investors/results-and-announcements.
Time: 7.30am (London); 3.30pm (Hong Kong); and 3.30am (New York).
Conference call access numbers:
Restrictions may exist when accessing freephone/toll-free numbers using a mobile telephone.
Passcode: 5197402
Toll-free Toll UK 0808 238 1616 US 1 866 551 9263 Hong Kong 800 967 131 International +44 (0)20 7192 8727 Replay access details from 27 October 2020 1:00pm GMT – 27 November 2020 1:00pm GMT
Passcode: 5197402
Toll-free Toll UK 0808 238 0667 US 1 866 331 1332 Hong Kong 58085596 International 44 0333 300 9785 -
HSBC to hold Q2 audio webcast and conference call today
HSBC Holdings plc (LON:HSBA) will be holding an audio webcast presentation and conference call today for investors and analysts. The speakers will be Noel Quinn, Group Chief Executive and Ewen Stevenson, Group Chief Financial Officer.
A copy of the presentation to investors and analysts is attached and is also available to view and download at
https://www.hsbc.com/investors/results-and-announcements/all-reporting/group’.http://www.rns-pdf.londonstockexchange.com/rns/8497U_1-2020-8-2.pdf
Full details of how to access the conference call appear below.
Time: 7.30am (London); 2.30pm (Hong Kong); and 2.30am (New York).
Conference call access numbers:
Restrictions may exist when accessing freephone/toll-free numbers using a mobile telephone.
Passcode: 7746836
Toll-free Toll UK 0808 238 1616 US 1 866 551 9263 Hong Kong 800 967 131 International +44 (0)20 7192 8727 Replay access details from 3 August 2020 11.45 BST – 3 September 2020 11:45 BST
Passcode: 7746836
Toll-free Toll UK 0808 238 0667 US 1 866 331 1332 Hong Kong 58085596 International 44 0333 300 9785 Details of how to access the webcast can also be found on the HSBC website: www.hsbc.com/investors/results-and-announcements.
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HSBC Holdings: Audio webcast presentation and conference call today following 1Q20 earnings release
HSBC Holdings PLC (LON:HSBA) will today be holding an audio webcast presentation and conference call for investors and analysts. The speaker will be Noel Quinn, Group Chief Executive and Ewen Stevenson, Group Chief Financial Officer.
A copy of the presentation to investors and analysts is attached and is also available to view and download at https://www.hsbc.com/investors/results-and-announcements/all-reporting/group’.
Full details of how to access the conference call appear below and details of how to access the webcast can also be found at www.hsbc.com/investors/results-and-announcements.
Click on, or paste the following link into your web browser, to view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/0456L_1-2020-4-27.pdf
Time: 7.30am (London); 2.30pm (Hong Kong); and 2.30am (New York).
Conference call access numbers:
Restrictions may exist when accessing freephone/toll-free numbers using a mobile telephone.
Passcode: HSBC
Toll-free Toll UK 0808 238 1616 US 1 866 551 9263 Hong Kong 800 967 131 International +44 207 192 8727 Replay access details from 28 April 2020 11.45 BST – 28 May 2020 11:45 BST
Passcode: 5988933
Toll-free Toll UK 08082380667 US 1 866 331 1332 Hong Kong 58085596 International 44 0333 300 9785 Note to editors:
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers worldwide from offices in 64 countries and territories in our geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,918bn at 31 March 2020, HSBC is one of the world’s largest banking and financial services organisations.