HSBC Holdings plc (NYSE:HSBC) Q4 2021 Earnings Conference Call February 22, 2022 3:30 AM ET Company Participants Richard O'Connor - Head of Global Investor Relations Noel Quinn - Group Chief Executive Officer Ewen Stevenson - Group Chief Financial Officer Conference Call Participants Raul Sinha - JPMorgan Joseph Dickerson - Jefferies Omar Keenan - Credit Suisse Tom Rayner - Numis Jason Napier - UBS Ben Tom - RBC Aman Rakkar - Barclays Guy Stebbings - Exane BNP Paribas Noel Quinn Good morning in London, it's ...

HSBC Holdings plc 3Q21 Results Presentation to Investors and Analysts 3Q21 results Appendix To be the preferred international financial partner for our clients Our ambition Our strategy Focus on our strengths Digitise at scale Energise for growth Transition to net zero Our purpose, values and ambition support the execution of our strategy Opening up a world of opportunity Our purpose Our values We value difference We succeed together We take responsibility We get it done 1 3Q21 results Appendix 3Q21 highlig ...

Financial Data and Key Metrics Changes - The company reported pre-tax profits of $5.4 billion, up 76% from the previous year's third quarter, with an annualized return on tangible equity of 9.1% for the year to date [9] - Adjusted revenues were down 1% year-on-year but up 1% excluding certain volatile items, indicating a return to more consistent top-line growth across most business lines [9][10] - Expected credit losses (ECL) were a net release of $659 million, marking the third consecutive quarter of net releases, with total net releases for the year to date amounting to approximately $1.4 billion [9][10] Business Line Data and Key Metrics Changes - In Wealth and Personal Banking, revenues were down 3% year-on-year, but excluding insurance market impacts, revenues grew by 7% due to higher fee income in Asset Management and Private Banking [14] - Commercial Banking revenues increased by 4%, driven by higher fee income across all products and growth in trade lending and deposit balances [14] - Global Banking and Markets saw revenues decrease by 3% due to slower customer activity in fixed income markets, although equities benefited from higher client activity and volatility in Asia [15] Market Data and Key Metrics Changes - In Asia, revenues were up 7% quarter-on-quarter and 5% year-on-year, indicating strong underlying revenue trends [13] - In the UK, ringfenced bank revenues increased by 2% quarter-on-quarter and 6% year-on-year, with fee income up 25% compared to the third quarter of the previous year [13] - Trade balances grew approximately 18% to 20% year-on-year, reflecting strong demand for trade finance amid global economic uncertainty [50] Company Strategy and Development Direction - The company announced a $2 billion share buyback, reflecting a commitment to return capital to shareholders as revenue normalizes [5][11] - The acquisition of AXA Singapore was highlighted as a strategic move to enhance product and distribution capabilities in a key market [5] - The company is focused on sustainable finance initiatives, including partnerships aimed at accelerating the low carbon transition [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about turning the corner on revenue growth, with expectations of interest rate rises contributing positively to net interest income [8][16] - The outlook for 2022 includes sustained revenue growth driven by loan growth and improved net interest margins, despite inflationary pressures on costs [19][22] - Management remains cautious about potential second-order risks from the Chinese real estate market but is confident in the overall exposure [46][51] Other Important Information - The company expects adjusted costs for 2021 and 2022 to remain stable at around $32 billion, influenced by inflationary pressures and ongoing investments [19] - The core Tier 1 ratio improved to 15.9%, with a target to normalize it to 14% to 14.5% by the end of 2022 [20][22] - The company has helped issue $170 billion in green bonds year-to-date, reinforcing its commitment to sustainability [13] Q&A Session Summary Question: Buyback metrics and future buybacks - Management indicated that the $2 billion buyback reflects a stronger capital position than anticipated, driven by higher profitability and lower ECLs [30] Question: Cost outlook and M&A impact - The increase in costs includes approximately $300 million related to M&A, with inflationary pressures and higher compensation being significant factors [32] Question: Revenue outlook and net interest margin - Management noted that while interest rate rises are expected to boost revenue, the core business is already experiencing strong growth [64] Question: Trade performance and global trade outlook - Management highlighted strong growth in trade finance, driven by increased demand amid global economic uncertainty [50] Question: China real estate exposure - Management reassured that direct exposure to troubled developers is limited, and they are closely monitoring potential second-order risks [46][51]

Financial Performance - Adjusted profit after tax for the first half of 2021 was $8.4 billion, with basic earnings per share of $0.36, compared to $3.1 billion and $0.10 in the first half of 2020[9]. - The reported profit before tax for the first half of 2021 increased by $6.5 billion to $10.8 billion, while the reported profit after tax rose by $5.3 billion to $8.4 billion[14]. - Reported revenue decreased by 4% to $25.6 billion, primarily due to lower interest rates and reduced capital markets and securities services income[14]. - The company reported a pre-tax profit of $10.8 billion for the first half of 2021, an increase of 151% compared to the same period in 2020[25]. - Adjusted profit reached $12 billion, reflecting an increase of 111% year-on-year[25]. - The reported net profit after tax for the first half of 2021 was $8.422 billion, an increase of $5.297 billion compared to the first half of 2020[54]. - The company reported a pre-tax profit of $4.459 billion on a reported basis, with adjusted pre-tax profit at $6.680 billion, indicating a strong performance[127]. Loan and Deposit Growth - Loans increased by $21.5 billion, driven by growth in wealth management and personal banking, while deposits grew by $26.3 billion across all global businesses[14]. - Customer loans increased by 2% to $351 billion in the first half of 2021, driven primarily by an 8% growth in Asia, including a net increase of $6.7 billion in trade finance loans from Hong Kong and mainland China[35]. - The bank's total deposits increased by $27 billion, driven by growth across all global businesses[25]. - Customer loans (net) reached $1,059,511 million as of June 30, 2021, up from $1,018,681 million a year earlier[141]. Cost Management and Efficiency - The cost-to-income ratio improved to 62.9%, down from 56.9% in the previous year[18]. - The company achieved cost-saving measures resulting in $900 million in benefits, offsetting part of the expense increase[114]. - Adjusted operating expenses for the first half of 2021 were $16.2 billion, a 3% increase from $15.7 billion in the first half of 2020[50]. - The company has saved $2 billion as part of its cost-saving plan, with a target to save $5 billion to $5.5 billion by 2022[50]. Digital Banking and Technology Investments - The bank is making progress in digital banking services and has announced plans to potentially sell its retail banking operations in France and exit the U.S. mass market retail banking[9]. - The company has launched a new digital wallet service, HSBC Global Wallet, allowing businesses to hold, send, and receive multiple currencies[27]. - The bank's technology investment reached approximately $3 billion, an increase from the previous year, aimed at enhancing customer experience[25]. - The company is investing resources to improve the reliability and resilience of IT systems and critical services across various business areas[96]. Environmental, Social, and Governance (ESG) Initiatives - The bank's commitment to environmental, social, and governance (ESG) initiatives continues to progress, aligning with its climate commitments made in October 2020[9]. - HSBC's environmental, social, and governance rating was upgraded to "Leader" by MSCI, reflecting improvements in employee engagement and talent development[23]. - HSBC committed $100 million to the "HSBC Climate Solutions Partnership Program" to support companies and projects addressing climate change over five years[30]. - The company aims to achieve net-zero carbon emissions by 2050, with a commitment to exit coal financing in OECD countries by 2040 and report progress annually[43]. Economic Outlook and Market Conditions - Economic outlook has improved as countries emerge from the pandemic, despite ongoing uncertainties due to varying responses and new virus strains[8]. - The ongoing COVID-19 pandemic has led to significant operational challenges, with varying economic recovery rates across regions depending on government support and vaccination efforts[97]. - Geopolitical tensions and macroeconomic risks remain significant, with potential increases in tax liabilities if global minimum tax rates are implemented[98]. Strategic Business Changes - The bank is expanding its digital wealth management services in mainland China, hiring over 350 wealth managers to support growth[25]. - The company has initiated agreements to divest its retail banking operations in the U.S. and France, marking a strategic shift in its business portfolio[25]. - HSBC plans to reduce global office space by approximately 20%, equating to a reduction of about 3.6 million square feet by the end of 2021[27]. - The company is focusing on market expansion and new product development to drive future growth[122].

HSBC Holdings plc (NYSE:HSBC) Q2 2021 Earnings Conference Call August 2, 2021 2:30 AM ET Company Participants Noel Quinn - Group CEO Ewen Stevenson - Group CFO Conference Call Participants Martin Leitgeb - Goldman Sachs Raul Sinha - JPMorgan Tom Rayner - Numis Omar Keenan - Crédit Suisse Aman Rakkar - Barclays Andrew Coombs - Citi Guy Stebbings - Exane BNP Paribas Manus Costello - Autonomous Noel Quinn Good morning in London, and good afternoon in Hong Kong. I've got Ewen with me today, and I'll hand over t ...

HSBC Holdings plc 2Q21 Results Presentation to Investors and Analysts To be the preferred international financial partner for our clients Our ambition Our values We value difference We succeed together We take responsibility We get it done Our strategy Focus on our strengths Digitise at scale Energise for growth Transition to net zero Strategy 2Q21 results Appendix Our purpose, values and ambition support the execution of our strategy Opening up a world of opportunity Our purpose 1 Strategy 2Q21 results App ...

HSBC Holdings plc (NYSE:HSBC) Q1 2021 Earnings Conference Call April 27, 2021 2:30 AM ET Company Participants Ewen Stevenson - Group CFO Noel Quinn - Group CEO Conference Call Participants Edward Firth - KBW Fahed Kunwar - Redburn Omar Keenan - Credit Suisse Tom Rayner - Numis Securities Guy Stebbings - Exane BNP Paribas Manus Costello - Autonomous Raul Sinha - JPMorgan Martin Leitgeb - Goldman Sachs Operator This presentation and subsequent discussion may contain certain forward-looking statements with res ...

HSBC Holdings plc 1Q21 Results Presentation to Investors and Analysts 1Q21 results Appendix Opening up a world of opportunity Our purpose To be the preferred international financial partner for our clients Our ambition Our values We value difference We succeed together We take responsibility We get it done Our strategy Focus on our strengths Digitise at scale Energise for growth Transition to net zero Our purpose, values and ambition support the execution of our strategy 1 1Q21 results Appendix 1Q21 highlig ...

Financial Performance - Adjusted profit before tax for 2020 was $6.1 billion, down from $8.7 billion in 2019, with basic earnings per share at $0.19 compared to $0.30 in 2019[11]. - Reported revenue for 2020 was $50.429 billion, a decrease of 10% compared to $56.098 billion in 2019[18]. - Reported profit before tax was $8.777 billion, down 34% from $13.347 billion in 2019[18]. - Reported profit after tax was $6.099 billion, a decline of 30% from $8.708 billion in 2019[18]. - Adjusted pre-tax profit was $12.1 billion, down 45% from the previous year[17]. - Adjusted revenue for the year was $50,366 million, a decrease from $54,944 million in the previous year[19]. - Adjusted pre-tax profit was $12,149 million, down from $22,149 million year-over-year[19]. - The average tangible equity return was 3.1%, down from 8.4% in the previous year[19]. - The group's reported pre-tax profit decreased by 34% to $8 billion, while adjusted pre-tax profit fell by 45% to $12.1 billion due to increased expected credit losses and reduced income[122]. - The average tangible equity return for 2020 was 3.1%, down 530 basis points from 2019, primarily due to expected credit losses and reduced income[123]. Capital and Liquidity - The common equity tier 1 capital ratio stood at 15.9%[11]. - The common equity tier 1 ratio increased to 15.9%, up 1.2 percentage points from 14.7% at the end of 2019[17]. - The total capital ratio increased to 21.5%, up from 20.4% last year[19]. - Total assets reached $2,984,164 million, up from $2,715,152 million in the previous year[19]. - The group held $678 billion in high-quality liquid assets as of December 31, 2020, demonstrating strong liquidity management[140]. - The common equity tier 1 ratio was 15.9% as of December 31, 2020, up from 14.7% at the end of 2019, reflecting the cancellation of the fourth dividend in 2019 and changes in software asset capital treatment[139]. Credit Losses and Provisions - Expected credit losses increased to $8.8 billion, reflecting a rise of $6.1 billion due to the impact of the COVID-19 pandemic[17]. - Customer loans' expected credit loss provisions rose from $8.7 billion at the end of 2019 to $14.5 billion by the end of 2020[17]. - The expected credit loss as a percentage of total customer loans rose to 0.81%, significantly higher than 0.25% last year[19]. - The expected credit losses for 2020 amounted to $8.8 billion, an increase of $6.1 billion compared to 2019, reflecting the impact of the COVID-19 pandemic on the global economic outlook[124]. Sustainable Financing and Investment - The total sustainable financing and investment provided since 2017 reached $93 billion, up from $52.4 billion in 2019[11]. - The company plans to provide $750 billion to $1 trillion in sustainable financing and investment over the next decade to support sustainable development[41]. - HSBC aims to achieve net-zero emissions in its financing portfolio by 2050, reflecting its commitment to sustainable value creation[33]. - The company aims to achieve net-zero carbon emissions in its operations and supply chain by 2030, aligning with the Paris Agreement goals[81]. - The group aims to provide and facilitate $100 billion in sustainable financing and investment by the end of 2025, with cumulative progress since 2017 reaching $93 billion[87]. Customer Support and Satisfaction - The company continues to support customers through relief measures during the pandemic, indicating a commitment to client support[8]. - Customer satisfaction improved, with 30.3% of senior leadership positions held by women, up from 29.4% in 2019[11]. - HSBC provided loan support to over 237,000 wholesale customers globally, amounting to $35.3 billion, through government programs and its own measures by the end of 2020[84]. - HSBC maintained operations in most branches while ensuring the health and safety of customers and employees during the pandemic[84]. Strategic Initiatives and Reforms - The company has made good progress on its reform plans and is preparing for the next phase of its strategic initiatives[9]. - The board confirmed the appointment of the new CEO, who will focus on implementing priority strategies in 2021[31]. - The company is focused on building a strong corporate culture and simplifying work processes to drive growth and innovation[41]. - The company is committed to capturing opportunities in cross-border trade services and aims to be a leading provider of international banking services for medium-sized enterprises[41]. Technology and Digital Transformation - The company has shifted its focus to technology investments, emphasizing the acceleration of digitalization to enhance service efficiency[41]. - Digital banking usage increased by approximately 30% compared to pre-pandemic levels, with a significant rise in mobile and online banking customers[48]. - The company plans to invest in technology even if it requires cutting other expenditures, ensuring continued investment throughout the investment period[41]. - The company is enhancing technology investments across customer platforms to improve cost efficiency and increase fee income from wealth management and wholesale banking products[52]. Diversity and Inclusion - The company has set a target to increase the percentage of women in senior leadership roles from over 30% to at least 35% by 2025[43]. - Approximately 71% of employees consider the company an ideal workplace, an increase from 66% in 2019[43]. - The company has implemented a global racial inclusion plan to promote career development and advancement opportunities for minority employees[43]. - The company achieved a 30.3% representation of women in senior leadership roles by the end of 2020, surpassing its 30% target set for that year, and aims for 35% by 2025[98]. Risk Management and Geopolitical Concerns - Geopolitical risks, including tensions between the US and China, are being closely monitored as they affect business and investment sentiment[13]. - The company is actively monitoring emerging geopolitical, economic, and environmental risks affecting capital adequacy and liquidity[179]. - The company is facing potential impacts from extreme weather events on its assets and operations, which could affect clients' ability to repay loans[91]. - The company is enhancing its cybersecurity measures to protect against advanced network threats, focusing on data-driven strategies for threat detection and recovery[188]. Community Engagement and Corporate Responsibility - In 2020, the company donated $112.7 million to various charitable programs and employees contributed 82,000 hours to community volunteer activities[99]. - The group established a COVID-19 relief fund of $25 million to support recovery efforts globally, including immediate medical aid and food provision for vulnerable communities[86]. - The company emphasized its commitment to supporting customers and communities during the pandemic, particularly in Hong Kong and the UK[112].

As filed with the Securities and Exchange Commission on February 24, 2021. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 Or þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 Or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Or SHELL COMPANY REPORT PURSUANT ...