HSBC Holdings plc Results

Transcription

1 HSBC Holdings plc!"#$

2 Forward-looking statements This presentation and subsequent discussion may contain certain forward-looking statements with respect to the financial condition, results of operations and business of the Group. These forwardlooking statements represent the Group s expectations or beliefs concerning future events and involve known and unknown risks and uncertainty that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Additional detailed information concerning important factors that could cause actual results to differ materially is available in our Annual Report and Accounts. 2

3 2000 results - overview Cash basis Reported US$m Operating profit before provisions 10,996 up 13% 10,486 up 9% Pre-tax profit 10,300 up 28% 9,775 up 22% Attributable profit 7,153 up 31% 6,628 up 23% Earnings per share (US$) 0.81 up 23% 0.76 up 17% Dividend per share (US$) Second interim Total up 28% 3

4 A year of Significant Progress Building for long-term growth! New businesses! Integration! Focusing on customer value 4

5 New Businesses Capital and revenue investment of US$1.6bn Mandatory Provident Fund E-commerce! Internet banking extended to 6 more countries over 1.5 million registered customers making over 4 million unique site visits per month! HSBC Bank International: online users in >150 countries Merrill Lynch HSBC! Full service launched December 2000 in Canada (over 60,000 clients) & Australia (over 20,000 clients)! Equity research launched December 2000 in UK UK investment & banking service Spring

6 Integration Update RNYC/SRH CCF! New York branches integrated and renamed! Costs on track! HSBC Republic established as our global private banking brand! Private banking clients retained! Integration going well! Synergy benefits on target at 150m after tax 6

7 Focusing on customer value Competitive pricing Transparency Value! UK mortgages! Mandatory Provident Fund Brand values! broaden & deepen customer relationships! attract new business 7

8 8 Growth in 2000 CCF 308 CCF 544 Average interest -earning assets + 23% Net interest margin - 20bp CCF 649 excluding restructuring US$m Net interest income + 1, % Other operating income + 1, % Operating income + 3, % Operating expenses + 2, % Goodwill HK Bad debts Rest of - 1, % Gains on disposal Asia-Pacific % Profit before tax + 1, % Tax Rate 22.9% % Minorities ( %) % Attributable profit - reported + 1, % - cash basis + 1, %

9 9 Significant financial impacts on Revenues! Hong Kong mortgage margin pricing - 171! Hong Kong mortgage bad debts First Direct - 101! UK Personal Financial Services 37% of transactions competitive positioning on line - 76 of which Mortgages 30% fall in call - 15 and Card and loan fees volumes with - 20 on Costs Hong Kong 40% of personal bank securities trades on line HSBC Bank plc 10% of standing order amendments & 35% of payments on demand on line internet service Internet customers US$m! Revenue investment within 35% more profitable Total Costs 700 including Internet 150! Mandatory Provident Fund 87! Restructuring charges: RNYC 74 CCF 47

10 Significant financial impacts (contd) within Subsidiaries ! HSBC Bank Malta profit before tax 35 3 in Joint ventures! Merrill Lynch HSBC and within Associates US$m! British Interactive Broadcasting ! Laiki Group (Cyprus)

11 2000 First Half/Second Half comparison (excluding CCF) Dealing profits Net fees inc. Brokerage Lower special general provision release 58 Higher bad debt charges: Rest of Asia-Pacific 59 Latin America 70 H1 H2 H2 variance Net interest income 6,684 6, higher Other operating income 5,334 4, lower Operating expenses (6,404) (6,521) 117 higher Goodwill (172) (170) 2 lower Bad debts (368) (568) 200 higher Joint ventures - (52) 52 lower Associates higher Gains on disposal lower Other (54) (5) 49 higher Profit before tax 5,206 4, lower 11

12 12 Fees and commissions receivable (excluding CCF) US$m Change in 2000 c/w 1999 Account services % Credit facilities % Remittances % Broking income Cards % Imports/Exports H1/H % Underwriting % H2/H2-24 Insurance % Mortgage servicing rights % Trust income % Broking income % Global custody % Operating leases % Other %

13 Estimated impact of acquisitions (on a cash basis) US$m RNYC/SRH CCF TOTAL Profit before tax * , Attributable profit * Funding costs (253) (90) (343) Contribution from acquisitions % Lower bad debts % Business growth, tax and other % Investment gains, associates and JVs (226) (4.1%) Increase in cash basis Attributable profits 1, % * (excluding restructuring)

14 Continuing financial strength Revenue mix improving! Non-funds income as % of Operating income Total non-funds income 44.2% 42.9% Fees and commissions 29.8% 28.6% Dealing profits 6.6% 6.2% Market risk-related revenues Operating margin Credit risk improving Capital generation 14

15 Market risk-related revenues in 2000 averaged US$10.0m a day 30 Daily distribution of Market Risk Revenues Group Treasury Centres Number of days ! P&L frequency 2000! P&L frequency Revenues in (US$m)

16 Number of days 16 Market risk-related revenues in 2000 H2 compared with H Daily distribution of Market Risk Revenues Group Treasury Centres Revenues in (US$m)! P&L frequency H2 2000! P&L frequency H

17 Operating margin (Operating profit before provisions, excluding goodwill amortisation as % of average risk-weighted assets) 4.0% Bad debt charge (Bad debt charge as % of average risk-weighted assets) 3.0% 2.0% 1.0% 0.0%

18 Non-performing customer loans US$m 1, Dec-97 Jun-98 Dec-98 Jun-99 Dec-99 Jun-00 Dec-00 Indonesia Thailand Malaysia South Korea 18

19 Tier 1 capital of US$2.3bn generated in excess of that applied Capital generated Scrip dividend Innovative Tier 1 capital Attributable profits (cash basis) Issue of capital & other Goodwill and intangibles Capital Dividends payable applied Increased RWAs in CCF Increased RWAs elsewhere Own shares held, FX & other US$bn 19

20 HSBC: Outlook US economy! rate of growth has slowed! external impact Competition! testing environment 20

21 Growing the Business Optional strategy! Grow or acquire where there is potential Winning new customers! 580,000 Mandatory Provident Fund investors! 1.1m more credit cards in Asia! First Direct reached 1 million customers Extending product reach! 4m insurance policies in issue 13% of personal customers buy insurance from us Wealth Management income growing! UK 14%, US 19%, Hong Kong 32%! Funds under management increased 32% to US$295bn IT spend US$2bn last year. US$2.6bn in

22 Growing the Business (contd) We will continue to - BUILD ON PROGRESS - INVEST IN GROWTH - MAINTAIN FINANCIAL STRENGTH 22

23 YOUR WORLD OF FINANCIAL SERVICES!"#$