HSBC UK Retail Financial Essay

HSBC UK Selling Banking

HSBC UK Full Banking

Sustained growth in RBWM and CMB

Antonio Simoes

eighteenth March 2013

Head of UK Lender, Deputy Chief Executive HSBC Traditional bank plc and Head of RBWM The european union

Forward-looking assertions

This business presentation and succeeding discussion may contain certain forward-looking assertions with respect to the finances, results of operations and business from the crew. These forward-looking statements represent the Group's expectations or perhaps beliefs with regards to future situations and involve known and unknown dangers and doubt that could trigger actual results, performance or perhaps events to vary materially coming from those expressed or implied in this sort of statements. Additional detailed details concerning critical factors that could cause actual leads to differ materially is available in each of our Annual Report and Accounts 2012. Earlier performance cannot be relied about as a guide to future overall performance.

This presentation contains non-GAAP financial information. Reconciliations of nonGAAP monetary information for the most straight comparable measures under GAAP are provided inside the ‘Reconciliation of reported and underlying earnings before tax' supplement offered by www.hsbc.com.

two

Scope from the presentation

Business segments in Europe

UK Retail Financial

Retail Banking and

Wealth

Management

(RBWM) in the UK

Industrial

Banking (CMB) in

the united kingdom

Continental European countries

Retail Financial

Global Banking and

Markets (GBM)

Global Private

Bank (GPB)

В· Retail bank and prosperity management supplier to UK personal consumers

В· Operating through a variety of distribution channels and underneath various brands including HSBC, first immediate and M& S Bank

В· Business banking supplier to UK Small and Medium sized

Companies (‘SMEs') and Corporates

a few

Agenda

В·

Economic summary and key trends intended for the UK

Section 1

В·

Performance in UK Price tag Banking

Section 2

В·

Vision and position of HSBC

Section 3

В·

Progress against strategic way in the UK

Section 4

В·

Concluding feedback

Section 5

4

Financial overview and key developments for great britain

Challenging economical and regulating backdrop

Insufficient visibility in the short term

Subdued macro

environment

В§ Weak growth prospects inside the shortterm

В§ Small and continuous rise in buyer

spending predicted

В§ Money tightening to drag on future

growth

В§ Base prices to remain by a record low

(0. 5%1) despite " sticky” pumpiing

UK GDP growth1

GROSS DOMESTIC PRODUCT year-on-year modify (%)

8%

6%

4%

2%

0%

-2%

-4%

-6%

2006

2007

08

2009

2010

2011

2012

2013f

2014f

2006

В§ Increasingly " intensive and intrusive

supervision” by regulators2

В§ Newly formed Financial Conduct

Authority in the UK

Pace and quantum of

regulatory change

В§ Higher focus on perform risk, and wider

classification

В§ Bigger capital requirements

В§ Have to adapt and enforce greatest

standards

В§ Financial steadiness and framework

debate: ring-fencing in the UK

В§ Downward pressure on comes back

В§ Global co-ordination of Recovery

and Resolution Strategies

1 Output in 2013-2014. Source: HSBC UK Economics 14 January 2013 a couple of Source: FSA Business Plan

6

В§ Even more uncertainty about corporate composition,

banks very likely to operate by higher cost

Long lasting prospects stay attractive

Powerful fundamentals in britain will fully support HSBC's RBWM and CMB businesses

International transact and capital flows

Aging population

Top rated 6 operate countries in 2020 - Imports and exports, USDbn

UK human population aged 66 and over, %

Share of

world control

10% 13%

CAGR

Cina

4. a few

3. 6th

16. 6%

2011

on the lookout for. 5%

nineteen. 1%

2020

11% 9%

United

Claims

8% 7%

Germany

several. 7

5%

2 . 0

22. 0%

2030

Source: Office of National Figures

2 . 9

5. five per cent

1 . eight

Growing prosperity

Mass affluent individuals, millions

5% 4%

Japan

1 ) 6

5. 5%

zero. 8

zero. 7

2010

8. 8

CAGR

2% 3%

India

1 . your five

13%

4%

2015...