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Summary of HSBC FY Conference Call - September 09, 2025 Company Overview - **Company**: HSBC Holdings plc (NYSE: HSBC) - **Focus**: Banking and financial services with a strong emphasis on wealth management, commercial banking, and corporate investment banking (CIB) Key Points Strategic Focus and Business Performance - HSBC has refocused its business strategy under the new CEO, emphasizing growth in four key areas: Hong Kong, UK, Wealth Management, and CIB [1][2] - The company aims to simplify operations and reduce costs by eliminating duplicate expenses and exiting non-strategic businesses [2] - HSBC is on track to achieve $1.5 billion in cost savings from simplification by the end of 2026, with an accelerated benefit expected in 2026 [3][8] Financial Performance - HSBC reported an 18% return on tangible equity at the half-year mark, with all four key business segments achieving mid-teens returns or better [9][11] - Trade fees grew by 4% year-on-year, although trade remains a small contributor to overall revenues; the main revenue drivers are payments and foreign exchange (FX) [9][10] - The wealth management segment saw a revenue growth of 22% in Q2, primarily driven by strong inflows in Asia, particularly Hong Kong [29][34] Market Conditions and Growth Outlook - The operating environment is characterized by divergent growth trends and geopolitical complexities, but HSBC remains optimistic about its growth trajectory [9][10] - Loan growth has been subdued due to customer hesitance in capital expenditures, but there are pockets of growth in targeted sectors like new energy and biotech [17][18] - The company anticipates that asset growth will improve as macroeconomic conditions stabilize [18] Risk Management and Asset Quality - HSBC has increased its expected credit loss (ECL) guidance to approximately 40 basis points, primarily due to challenges in the Hong Kong commercial real estate market [42][43] - The residential real estate market in Hong Kong has shown signs of recovery, while commercial real estate faces structural issues [43][44] - The bank maintains a strong capital position, with 95% of its exposure to large developers rated investment grade [46] Capital Returns and Shareholder Value - HSBC has executed a series of share buybacks at a rate of approximately $1 billion per month, supported by a strong capital generation capacity [55][56] - The bank aims for a dividend payout ratio of 50% and remains focused on organic growth and strategic acquisitions [56][57] Regulatory Environment and Future Investments - HSBC is optimistic about potential deregulation in the UK and the U.S., which could enhance growth opportunities in the financial services sector [63][65] - The bank emphasizes the importance of predictable regulatory environments for sustainable business operations [65][66] Wealth Management Strategy - HSBC is focused on expanding its wealth management services, targeting market share gains and increasing the number of relationship managers [30][35] - The bank aims to double its premier customer base and achieve $100 billion in net new invested assets [32][53] Additional Insights - HSBC's strong deposit growth of 5% year-on-year, amounting to $83 billion, reflects its solid customer base and market position [13][15] - The bank is leveraging technology and AI to enhance productivity and streamline operations, aiming for higher efficiency without proportional increases in headcount [54] This summary encapsulates the key insights and strategic directions discussed during the HSBC FY Conference Call, highlighting the company's performance, growth strategies, and market outlook.

Core Insights - HSBC's oil market model predicts OPEC+ will gradually unwind 1.65 million barrels per day in voluntary production cuts over a 12-month period [1] - OPEC+ has decided to increase oil production by 137,000 barrels per day in October, ahead of schedule, despite expectations of a supply glut [2] - Analysts at Commerzbank have lowered their Brent price forecast for the coming year to $65 per barrel due to anticipated oversupply [3] Group 1: OPEC+ Production Decisions - HSBC's latest model indicates a phased unwinding of 1.65 million barrels per day in production cuts by OPEC+ [1] - OPEC+ has opted to increase production by 137,000 barrels per day in October, surprising analysts amid expectations of a winter supply glut [2] Group 2: Market Reactions and Price Forecasts - Commerzbank has revised its Brent price forecast down to $65 per barrel from $70, citing oversupply concerns [3] - As of the latest report, Brent crude rose to $66.49 per barrel, while U.S. West Texas Intermediate crude increased to $62.75 per barrel [4]

Core Insights - Foreign investment in China is undergoing a significant structural transformation as multinational companies (MNCs) shift capital towards new-economy industries [1][2] - MNCs are increasing investments in high-end manufacturing, healthcare, and pharmaceuticals, while also remaining optimistic about consumption-related sectors like fast-moving consumer goods [2][3] - China is being positioned as a global market for innovation, consumption, and growth by global companies [3] Investment Trends - According to HSBC's Global Trade Pulse Survey, 44% of MNCs view China as the top target market for enhancing global trade capabilities, with around 40% planning to increase manufacturing in China over the next two years [5] - China's vast market size, comprehensive industrial facilities, dynamic innovation ecosystem, and abundant talent continue to attract international investment [6] Financial Instruments - The accumulated issuance of panda bonds, which are yuan-denominated securities from overseas institutions operating in China, has surpassed 1 trillion yuan (approximately US$140 billion) since 2005 [7] - The availability of domestic fundraising tools in China reduces financing costs and enhances the expansion of MNCs, optimizing their asset-liability structures and improving capital allocation efficiency [8]

Core Insights - HSBC Holdings has opened a 23,000-square-foot wealth management center in the International Commerce Centre (ICC), aimed at enhancing its service to wealthy clients and revitalizing Hong Kong's office market [1][4]. Group 1: Wealth Management Center Details - The new center is located on the 99th floor of the ICC, making it HSBC's largest wealth management office globally, featuring 51 meeting rooms and two event spaces [2][4]. - The center can accommodate up to 220 clients for banquets and is recognized as the highest-altitude bank in the world [2]. - Rental costs for the ICC are estimated between HK$1.5 million (US$192,307) and HK$1.6 million per month [3]. Group 2: Strategic Importance - HSBC aims to position Hong Kong as the world's largest cross-border wealth hub by 2030, catering to high-net-worth customers who value privacy and scenic views [4]. - The ICC center is the fourth large wealth management facility in Hong Kong, with plans for a fifth location in the International Finance Centre by the end of 2025 [5]. - Despite the rise of digital banking, there remains a strong demand for face-to-face interactions with wealth management experts among high-net-worth clients [6]. Group 3: Investment Strategy - HSBC's CEO has announced a strategic shift to redirect US$1.5 billion from low-return markets to high-growth areas, including Hong Kong, with a focus on wealth management [7].

Group 1 - HSBC Holdings announced a share buyback of 1.52 billion HKD for 1.496 million shares at a price range of 100.9 to 101.7 HKD per share [1] - On the same day, the company spent 21.6562 million GBP to repurchase 2.244 million shares [1] - HSBC also canceled 2.2884 million shares that had been repurchased [1]

Group 1 - HSBC Holdings announced a share buyback program, spending HKD 152 million to repurchase 1.496 million shares at a price range of HKD 100.9 to 101.7 per share [1] - On the same day, the company also repurchased 2.16562 million pounds worth of shares, totaling 2.244 million shares [1] - Additionally, HSBC Holdings canceled 2.2884 million shares that had been repurchased [1]

Core Viewpoint - HSBC Holdings announced a share buyback program, indicating confidence in its financial position and commitment to returning value to shareholders [1] Group 1: Share Buyback Details - The company spent HKD 152 million to repurchase 1.496 million shares [1] - The buyback price ranged from HKD 100.9 to HKD 101.7 per share [1]

FF305 第 1 頁 共 9 頁 v 1.3.0 | | | | | FF305 | | --- | --- | --- | --- | --- | | 2,248,042 | 0.012978 % | GBP | 9.7176 | | | 2,244,009 | 0.012954 % | GBP | 9.6507 | | | 1,414,400 | 0.008165 % | HKD | 100.6947 | | | 1,434,400 | 0.008281 % | HKD | 101.0207 | | | 1,370,400 | 0.007911 % | HKD | 101.7775 | | | 1,547,200 | 0.008932 % | HKD | 100.9342 | | | 1,508,400 | 0.008708 % | HKD | 100.4941 | | 1). 在英國購回以作註銷但尚未註銷之股份 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： HSBC Holdings plc 滙豐控股有限公 ...

Group 1 - Morgan Stanley has raised the target price for HSBC Holdings to 940 pence from a previous 870 pence [1] - Barclays Bank's target price has been increased to 500 pence from 420 pence [1]