ob presentation hsbc

7/31/2019 OB Presentation HSBC

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Who is this gentleman?

Roger Federer


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Michael Schumacher


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THEN THE CHAMPIONWILL BE

If Banking were to be a sport


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WHAT IS HSBC?

HSBC Holdings is a public limited company incorporated in Englandand Wales in 1990, and headquartered in London since 1993

The group was founded from The Hong Kong and Shanghai BankingCorporation based in Hong Kong.

As of 2009, it is both the world's largest banking group and the world's6th largest company according to a composite measure by Forbesmagazine.

No single geographical area (China) dominates the group's earnings.

Hong Kong still continues to be a significant source of our income.


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SOME FACTS

Revenue: $142.05 billion

Net Income: $3,541 million

312,000 employees across the globe

9,500 offices in 85 countries and territories

Our current share price is87.65HKD per share


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What is the purpose of today?


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HSBC Global Strategy


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Our focus for 2009

HSBC Bank

Continue to provide vital banking and financial services to ourpersonal and commercial customers.

Expansion of International branch network. Additional growth efforts in HSBC Direct, HSBC Premiere and

commercial banking

Ensure effective implementation of a realignment of personal andcommercial business lines.

Leveraging our strength in Commercial Banking and maximizingopportunities in PFS, Wealth Management, Private Banking andGlobal Banking and Markets.

Leveraging the global strength ofHSBC locally to offer marketleading products and increase efficiency.

Expanding HSBC Finance


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THE FALL


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After the fall

The world suffered after the sub prime crisis, leading to a globalrecession.

We too, along with every major bank in the world, were responsible.

Although we were at the centre of the subprime storm, the economiccrisis of our bank is much better than other global banks.

In November 2002 HSBC expanded in the United States, spendingUS$15.5bn to acquire Household Finance Corporation (HFC), a UScredit card issuer and subprime lender.

The business indeed turned sour, costing HSBC some US$62bn.


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WE ARE BACK BABY!!!


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Us Versus Sub Prime menace


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A pessimist sees the difficulty in every opportunity; an optimist seesthe opportunity in every difficulty. - Winston Churchill


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Steps we took after the fall

We shut down the branch network of HSBC Finance in the U.S.leaving only the credit card business to continue operating, which will generateprofits in the future

We transferred 750 million to London within hours

We had just lent 4 billion to other UK banks.

The global recession has created a wide gap as many banks have shut down.

We made US$9.3bn of profit in 2008 and announced a 12.5bn rights issue to enable usto buy other banks that were struggling to survive.

When the eagles are silent, the parrots begin to jabber.


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HSBC finance

In November 2002 HSBC expanded in the United States, spending9bn (US$15.5bn) to acquire Household Finance Corporation (HFC), aUS credit card issuer and subprime lender.

The business indeed turned sour, costing HSBC some US$62bn

We have closed HSBC finance leaving only the credit card business tocontinue operating

It will generate US $5 billion in this year alone.

In five years time, US $66 billion


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SO WHAT?

You guys screwed up, whats in it for me?

US $4 billion dollars profits from credit card

business

The profits will be for the investors

No general reserve.


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Michael Geoghegan

HSBC Group'sChief Executive


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WHY SHOULD YOU INVEST IN HSBC?


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Our Focus graph:

s

10

Ancillary

Functions

Calendering

Efficiency

Zone

Ability to Drive

Dissatisfaction

Ability to Drive

Satisfaction

Zone of Competitive

Opportunity

Zone of CompetitiveIntensity

Zone of CompetitiveNecessity

Strategic

Focus

Quicken Support

Internal Account

Aggregation

Ease of use

Competence

Responsiveness

Aesthetics

Courtesy

External Account

Aggregation

Personalisation

OtherChannel Access

Real Time

Availability

Security

Reliability

Accuracy

Source - Compass


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Net Income, Operating income and Revenue (IN BILLIONS)


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TOTAL ASSET (In Trillions)

0 0.5 1 1.5 2 2.5 3

HSBC

RBS

Deutsche Bank

BNP Paribas

Total asset


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Offshoring processing work to lower cost economies.


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We opened up CHINA!


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We are entering new markets, example Vietnam, Chile andCroatia.


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We are also helping towards opening up of the Russian market to its fullpotential.


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We were and still are the dominant foreign bank in non EU countries


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We are already there!!!


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We are always excited to work in different countries.


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And also new sectors

We are the only international bank to have enteredthe rural industry.

HSBC provides financial services to small,medium-sized and middle-market enterprises.

HSBC is not just a competitor but a true championin the banking industry.


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THANK

YOU

ob presentation hsbc

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