HSBC Holdings plc Strategy Update 2018 quick read

 

Platform for growth

We are the world’s leading international bank with unparalleled access to high-growth markets and a strong balance sheet.

Our international network covers 67 countries and territories accounting for more than 90 per cent of global GDP, trade and capital flows.

Around
38 million
customers

Total capital(i)
USD182 billion

#1
global transaction bank(ii)

Top 3
FTSE dividend payer(iii)

Strategic strengths

  • Leading international bank: our international network generates more than half of the Group’s client revenue

  • Access to high-growth markets: our unrivalled geographical footprint offers access to high-growth, developing markets in Asia, the Middle East and Latin America

  • Balance sheet strength: HSBC’s strong capital, funding and liquidity provide the foundation for our sustained dividend and capacity for distribution to shareholders

Group Chief Executive

John Flint, HSBC Group Chief Executive

Strategic priorities

We will focus on eight priority areas between now and the end of 2020 to deliver growth, improve returns, and enhance the experience of our customers and employees.

Deliver growth from areas of strength

1. Accelerate growth from our Asian businesses, including in Hong Kong, the Pearl River Delta, ASEAN, and Wealth in Asia, including Insurance and Asset Management; and be the leading bank to support the transition to a low-carbon economy and the China-led Belt and Road Initiative

2. Complete the establishment of our UK ring-fenced bank, increase mortgage market share, grow our commercial customer base, and improve customer service

3. Gain market share and deliver growth from our international network

Turnaround of low-return businesses

4. Turn around our US business

5. Improve capital efficiency and redeploy capital into higher-return businesses

Build a bank for the future that puts the customer at the centre

6. Create capacity for increasing investments in growth and technology through efficiency gains

7. Improve our customer service by investing further in technology and our digital capabilities, increasing our reach, and delivering industry-leading financial crime standards

Empower our people

8. Simplify the organisation and invest in future skills

Financial targets

Return on tangible equity

>11% by 2020

Return on tangible equity

We aim to deliver a return on tangible equity (RoTE) of greater than 11 per cent by 2020.

Jaws

Adjusted jaws graph; Adjusted revenue down 2.5 per cent; Adjusted costs down 3.7 per cent; Adjusted jaws total positive 1.2 per cent

Positive adjusted jaws each financial year

Our target is to achieve positive adjusted jaws on an annual basis. This means growing adjusted revenue faster than adjusted costs.

Dividend

US$

Sustaining the dividend

We aim to sustain dividends at current levels and undertake, as appropriate, share buybacks to neutralise any share issuance as a result of scrip dividends, subject to regulatory approval.