HSBC (HSBA) Investor update summary

Strategic priorities and transformation

• Focused on simplicity, agility, customer centricity, and sustainable growth to become the most trusted global bank.

• Reorganized into four businesses: Hong Kong, UK, Corporate & Institutional Banking, and Wealth & Premier Banking.

• Reduced complexity by cutting duplicated roles, shrinking the Group Operating Committee, and reducing managing directors by 15%.

• Achieved $1.4bn of $1.5bn targeted cost savings ahead of schedule, with further cost reallocation and exits underway.

• Upgrading the operating model through process simplification, automation, and generative AI, aiming for real-time operations and hyper-personalized customer experiences.

Market opportunity and positioning

• Asia is the largest and fastest-growing wealth market, with global personal financial assets expected to rise by $93tn by 2030, and the region accounting for ~70% of group wealth balances in FY25.

• Holds #1 position in Asia for wealth management, with $1.6tn in group wealth balances and 5 million Premier accounts.

• Significant opportunity remains, as nearly two-thirds of Premier clients do not yet have a wealth product.

• Access to ~1 million wholesale clients provides a strong feeder pipeline for Premier, Private Bank, and Employee Workplace Solutions.

• Enhanced Premier proposition and international capabilities, with 9% YoY growth in Premier accounts and >3.5x revenue multiplier for international vs. domestic clients.

Growth drivers and market leadership

• Hong Kong business is a market leader, with a deposit base nearly double its closest peer and rapid customer acquisition.

• Asia wealth business is the largest in the region, with over $1 trillion in balances and 25% of group revenue from wealth.

• Corporate & Institutional Banking benefits from intra-Asia trade flows and global network connectivity, holding top market share in trade and transaction banking.

• UK business generates $19bn in revenue and $570bn in deposits, positioning as the leading international bank in the UK.