HSBC HOLDINGS(HSBC) - 2022 Q2 - Earnings Call Presentation

Financial Performance - HSBC's reported revenue for 2Q22 was $12.8 billion, a 2% increase, while adjusted revenue reached $13.1 billion, up 12% compared to 2Q21[3] - The company's reported PBT for 2Q22 was $5.0 billion, a 1% decrease, but adjusted PBT rose to $6.0 billion, a 13% increase compared to 2Q21[3] - Net Interest Income (NII) for 2Q22 was $7.5 billion, up 20% compared to 2Q21, driven by interest rate rises and lending growth[23, 26] - The company is targeting a RoTE of 12%+ from FY23 onwards and expects a payout ratio of approximately 50% for FY23 and FY24, reinstating quarterly dividends from 2023[3, 49, 55] Business Segment Performance - Commercial Banking (CMB) revenue increased by 19% to $3.7 billion, driven by interest rate rises, balance sheet growth, and higher fees[27, 77] - Global Banking and Markets (GBM) revenue increased by 15% to $3.8 billion, primarily driven by Markets and Securities Services (MSS), which was up 27%[27, 78] - Wealth and Personal Banking (WPB) revenue increased by 5% to $5.7 billion, and up 19% excluding adverse insurance market impacts of $0.7 billion[27, 76] Capital and Costs - The Group CET1 ratio was 13.6%, down 0.5 percentage points vs 1Q22[4, 24, 48] - Adjusted costs remained stable at $7.5 billion compared to 2Q21, with cost savings offsetting increased technology spending and investment[23, 26, 42] - The company is on track to achieve the high end of its $5 billion-$5.5 billion cost saves target and spend the remaining CTA of $2.4 billion in 2H22[42] Digital Transformation - Technology spend increased, with total tech spend reaching approximately $3.1 billion[12] - HSBCnet wholesale mobile app payments volume increased by 60.8%[15] - Mobile active retail customers increased by 5.5 percentage points[16] Guidance - The company upgraded its revenue guidance, expecting at least $31 billion in NII for FY22 and at least $37 billion in FY23[20, 34] - Adjusted cost growth is expected to be stable in 2022, with approximately 2% annual growth in FY23[20, 42]