Group
HSBC Holdings plc
1H22 Group factbook
30 June 2022
Our purpose: Opening up a world of opportunity
Our ambition: To be the preferred international financial partner for our clients
Our strategy: | Our values: |
Focus on our strengths | We value difference |
Digitise at scale | We succeed together |
Energise for growth | We take responsibility |
Transition to net zero | We get it done |
1H22 key financial metrics | |||||||||
Revenue | ECL | Costs | PBT | EPS | |||||
$25.7bn | $1.1bn | $15.4bn | $9.2bn | $0.42 | |||||
Customer | Customer | CET1 ratio1 | Reported | DPS | ||||
loans | deposits | RoTE2 | ||||||
$1.0tn | $1.7tn | 13.6% | 9.9% | $0.09 | ||||
Denotes an alternative performance measure presented on an adjusted basis. For a reconciliation of reported to alternative performance measures, see the HSBC Holdings plc Interim Report 2022
For definitions, refer to the HSBC Holdings plc Annual Report and Accounts 2021
1
HSBC at a glance
63 | $3tn |
countries and | |
territories | in assets |
c.40m | 3 |
customers | global |
businesses | |
Our 3 global businesses
Wealth and Personal Banking
We help over 38m of our customers look after their day-to-day finances and
WPB | manage, protect and grow their wealth | |
We provide insurance, investment management, advisory and wealth | ||
solutions to those with more sophisticated requirements | ||
Commercial Banking | ||
CMB | Our global reach and expertise help domestic and international businesses | |
around the world unlock their potential | ||
We help businesses grow by supporting their financial needs and facilitating | ||
cross-border trade and payment services | ||
GBM | Global Banking and Markets | |
We provide a comprehensive range of financial services and products to | ||
corporates, governments and institutions | ||
Diversified across businesses and geographies
1H22 Business performance, $bn | 1H22 Geographic performance, $bn | ||||||||||
Revenue3 | RWAs | Revenue4 | RWAs5 | ||||||||
10% | 22% | 6% | 16% | 13% | 12% | ||||||
30% | 11% | 4% | |||||||||
5% | 7% | 17% | |||||||||
25.7 42% | 25.7 15% | ||||||||||
28% | 852 | 852 | |||||||||
3% | 0% | ||||||||||
28% | 40% | 44% | 47% | ||||||||
WPB | GBM | UK RFB6 | Asia | LATAM | |||||||
NRFB6 | MENA | ||||||||||
CMB | Corporate Centre | ||||||||||
Europe - Other | NAM | ||||||||||
Denotes an alternative performance measure | 2 |
Progress on our 2021 commitments
We have made good progress across our four strategic pillars since the announcement of our transformation programme
Focus on our strengths: delivering growth in areas where we are strongest and have opportunities to grow, including to Asia and our higher-returning WPB business
Digitise at scale: to adapt our operating model for the future
Energise for growth: empowering and energising our employees is crucial for building a more effective workforce
Support the transition to a net zero global economy
The impact of our growth and transformation programmes over the last two years has given us the confidence to update our returns guidance. We are now targeting a RoTE of 12%+ from FY237, and aim to revert to paying quarterly dividends in 20238 with a dividend payout ratio of around 50%.
Updated guidance*
Revenue
Costs
Capital
Dividends
NII growth
- NII of at least $31bn in FY22; at least $37bn in FY237,9
Tight cost discipline
- Stable adjusted costs in 2022
- Aiming for c.2% adjusted growth in FY23 with tight cost discipline thereafter9
- Manage CET1 ratio in a 14-14.5% range over medium-term; aim to manage range down further longer term10
- Dividend payout ratio expected to be c.50% for FY23 and FY24
- Reinstate quarterly dividends from 2023 onwards8
RoTE
Targeting 12%+ from FY23 onwards
Progress on capital allocation
Asia as a % of Group tangible equity11 | WPB as a % of Group tangible equity12 | |||||
1H21 | 27% | |||||
1H21 | 42% | |||||
1H22 | 44% | 1H22 | 29% | |||
Medium | c.50% | Medium | c.35% | |||
to long-term10 | to long-term10 | |||||
* Full guidance can be found in the HSBC Holdings plc Interim Report 2022
3
Digitise at scale
Technology spend13 | Cloud adoption14 | ||||||||||||
% of total adjusted operating expenses | % | ||||||||||||
1H21 | 19% | 25% | |||||||||||
+1ppt | 1H21 | ||||||||||||
1H22 | 20% | +6ppts | |||||||||||
1H22 | |||||||||||||
2025 | >21% | 31% | |||||||||||
ambition | |||||||||||||
We continue to invest in our technology and operational capabilities to drive operating productivity and to offer a better client experience across businesses and geographies. At the end of 1H22, 46% of our retail customers active on our mobile services had logged onto a HSBC mobile app at least once in the last 30 days, compared with 41% at the end of 1H21. Our wholesale clients executed c.6.3 million payments on HSBCnet's mobile banking app, a 61% increase compared with 1H21.
ESG update
Aim to be net zero in our operations | |
and supply chain by 2030 and net | |
zero in our financed emissions by | |
2050 | |
We plan to publish our own climate | |
transition plan in FY23 bringing | |
together how we intend to embed net | |
zero targets into our strategy, | |
Environmental | processes, policies and governance |
We have provided and facilitated | |
$171bn of sustainable finance and | |
investment towards our ambition of | |
$750bn to $1tn by 203015 | |
Cumulative sustainable finance & investments15, $bn
1H21 87
1H22 171
2030 | 1,000 |
ambition | |
- We have an ambition to increase our gender and ethnicity representation in senior leadership by 2025:
- 35% of senior leaders to be female
- Double the number of Black colleagues in senior leadership
- Opened >5,000 bank accounts for Ukrainian refugees in the UK to support them with accessing required financial services
Percentage of female senior leaders17
1H21 31.1
+1.4ppts
1H22 32.5
202535.0 ambition
4
Balance sheet strength
At 30 June 2022
Loan/deposit | High quality | Liquidity | CET1 ratio | Leverage | ||||
ratio | liquid | coverage | ratio1 | |||||
assets18 | ratio | |||||||
62.3% | $657bn | 134% | 13.6% | 5.5% | ||||
Unsecured as % of retail loan book | Gross customer lending by type, $bn | |||
16.0% 15.6% | 14.7% 14.4% | |||
11.1% 10.6% | 10.5% | 575 | ||
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 1H22 |
1,039
361
82 21
Mortgages | Other personal | |
Business Banking Loans & Advances and | Credit cards | Wholesale |
Deposits, $bn | ||
UK RFB6 | Hong Kong | ||
32.5% | 17.1% | ||
90.6 | |||
54.7 | |||
17.8 | 15.5 | ||
L&A | Deposits | L&A | Deposits |
Loan/Deposit ratio |
- UK mortgages: $153bn
- Average LTV: 49%; new lending: 67%
- HK mortgages: $99bn
- Average LTV: 50%; new lending: 59%
Lending quality at 30 June 2022
- 73% of loans are rated 'Strong' or 'Good'
- 1.8% of gross loans and advances in Stage 3
5
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HSBC Holdings plc published this content on 10 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2022 14:30:02 UTC.