HSBC (HSBA) Investor update summary

Strategy and operating model

• Ambition to be the most trusted bank globally, prioritizing simplicity, agility, customer centricity, and focused, sustainable growth.

• Reorganized into Hong Kong and U.K. home-market businesses, Corporate and Institutional Banking, and International Wealth and Premier Banking network businesses; Group Operating Committee reduced from 18 to 12 members.

• 60% of revenue has single-line accountability; managing director roles fell 15% (~300) without business impact.

• $1.5bn annualized simplification-savings target, with $1.4bn actioned and $600m delivered in 2025, associated with ~4,400 FTE; full program expected by H1 2026, six months early.

• $1.8bn cost-reallocation program: 12 exits representing $0.8bn of costs decisioned, with $0.5bn under execution.

AI and process redesign

• Multi-year operating-model overhaul targets legacy applications, products, spreadsheets, URLs and cost centers; more than 50 processes and procedures are being simplified and automated.

• Generative AI vision: equip 200,000 colleagues with training and tools for personalized service at scale, retaining human judgment, decision-making and accountability; over 85% of staff have AI productivity tools and 66%+ of engineers use coding assistants.

• Corporate KYC onboarding delivered 55% productivity improvement and 50% lower onboarding time; financial-crime monitoring achieved 4x detection, 2x faster investigations and 70% fewer false positives.

• AI priorities include near-real-time onboarding, credit approvals and capital allocation; frontline tools support personalized service, customer acquisition and revenue growth.

Financial foundations and performance

• Excluding notables, revenue grew 5% and EPS 11% on a 2-year CAGR basis; ROTE rose 1.2% to its highest level in 20 years.

• Deposits totaled $1.8tn, including $1.2tn of instant-access relationship balances; deposits grew at a 4% CAGR, instant-access balances were 70% of deposits and funded 124% of the loan book, and the loan-to-deposit ratio was 55%.

• Q1 2026 ROTE exceeded 17% in each of the four businesses; each delivered returns above mid-teens in 2025.

• Asia contributed 53% of revenue, with 7% CAGR in deposits and 5% CAGR in revenue from FY23 to FY25.

• Holds #1 positions in Hong Kong banking, Asia wealth management and Asia wholesale transaction banking; Hong Kong business delivered $9.3bn PBT in FY25.