Progress on our strategic priorities

In our June 2018 Strategy Update, we outlined eight strategic priorities to deliver growth, improve returns, empower our people, and enhance our customer experience.

Each priority has a target or set of outcomes that we aim to achieve by 2020. The following table shows the summary of progress and key highlights given in our Annual Report and Accounts 2018 (PDF 7MB), published in February 2019.

Summary of progress on our strategic priorities


Strategic priority Targets by end of 2020 Performance in 2018
(versus prior period)
Highlights
1. Accelerate growth from our Asia franchise; be the leading bank to support the China-led Belt and Road Initiative and the transition to a low-carbon economy High single-digit revenue growth each year from our Asia franchise

Market share gains in eight scale markets(1)

Number 1 international bank for the Belt and Road Initiative

Provide USD100bn in sustainable financing and investment by 2025
Asia adjusted revenue up 11 per cent:
* Hong Kong up 14 per cent
* Pearl River Delta up 31 per cent
* ASEAN up 3 per cent
* Wealth in Asia(2) up 1 per cent

Sustainable financing and investment (global): USD28.5 billion (cumulative), up USD17.4 billion in 2018
Wealth in Asia(2) revenue, excluding market impacts in Insurance(3), improved 13 per cent

Five of eight scale markets(1) gained loan and/or deposit market share(4)

Awarded 'Best Belt and Road Bank in Asia' for the second consecutive year by FinanceAsia

Pearl River Delta: launched co-branded credit card with JD Finance

Awarded 'Asia’s Best Bank for Sustainable Finance' by Euromoney
2. Complete the establishment of UK ring-fenced bank and grow market share Market share gains Market share in mortgages: 6.6 per cent (up 0.5 percentage points) Completed set-up of UK ring-fenced bank and opened new UK head office in Birmingham in October 2018

Launched dedicated SME fund with GBP12 billion of funding, including GBP1 billion of funding to help UK companies grow overseas

Launched Connected Money app to enable retail banking customers to view balances and transactions from their UK bank accounts, including those with other providers, in one place
3. Gain market share and deliver growth from our international network Mid to high single-digit revenue growth each year from our international network(5)

Market share gains in transaction banking
International client revenue up 7 per cent

Transaction banking revenue(6) up 14 per cent
GLCM revenue up 21 per cent; FX revenue up 10 per cent; Securities Services revenue up 11 per cent; GTRF revenue up 2 per cent despite subdued global trade environment

Market share gains in GLCM, GTRF and FX(7); GTRF market share in Singapore up by three cent, and in Hong Kong up by one per cent
4. Turn around our US business US return on tangible equity of more than 6 per cent US return on tangible equity: 2.7 per cent, up 1.8 percentage points US adjusted revenue of USD4.8 billion, up 1 per cent on 2017

Adjusted profit before tax of USD1.0 billion, up 32 per cent on 2017

Nearly 200,000 more active retail customers

Completed multi-year core banking system upgrade, paving the way for significantly enhanced client digital experience
5. Improve capital efficiency Increase in asset productivity Revenue/average RWA: 6.2 per cent, up 30 basis points Overall capital efficiency improvement driven by 4 per cent revenue growth

Continue to redeploy RWAs to higher-return businesses
6. Create capacity for increasing investments in growth and technology through efficiency gains Positive adjusted jaws on an annual basis each financial year Adjusted jaws: negative 1.2 per cent Jaws impacted by negative market environment in last quarter of 2018

Revenue growth helped support USD4.1 billion in investment for growth, productivity, regulatory and mandatory purposes
7. Enhance customer-centricity and customer service Improve customer satisfaction(8) in eight scale markets(1) Markets that sustained top-three rank and/or improved by two ranks in customer satisfaction(9):

* RBWM: six markets
* CMB: three markets
Improved digital capabilities and customer journeys:

* RBWM: about 45 per cent of customers are now digitally active and more than 30 per cent of sales are through digital channels(10)
* CMB: simplified journeys on HSBCnet for 41,000 clients across 36 countries and territories
8. Simplify the organisation and invest in future skills Improved employee engagement

ESG rating: 'outperformer'(11)
Employee engagement: 66 per cent, up 2 percentage points

ESG rating: 'average' performer
Made governance process more efficient, simplified policies, and streamlined processes

Actively promoted learning and development opportunities for employees with the set-up of the HSBC University online and additional online training courses

  1. Our eight scale markets are the UK, Hong Kong, Pearl River Delta (PRD), Singapore, Malaysia, Mexico, the UAE and Saudi Arabia
  2. Our wealth business in Asia includes our asset management business in Asia, our insurance business in Asia, our private banking business in Asia and the wealth portion of our RBWM business in Asia
  3. Market impacts in Insurance are P&L impacts resulting from changes in financial market factors as compared with economic conditions in place at the start of the year
  4. Market shares: Saudi Arabia as of September 2018; UAE as of October 2018; HK, Mexico, PRD and Singapore as of November 2018; UK and Malaysia as of December 2018
  5. Revenue growth from international network includes transaction banking revenue growth and international client revenue growth
  6. Transaction banking includes GLCM, GTRF, Securities Services and FX
  7. Market share data is as of 3Q 2018
  8. Top-three rank or improvement by two ranks; measured by customer recommendation for RBWM and customer satisfaction for CMB among relevant customers
  9. Customer satisfaction metrics for Pearl River Delta will be available from 2019, therefore they have been excluded from the assessment.
    1. RBWM: Surveys are based on a relevant and representative subset of the market. Data provided by Kantar
    2. CMB: In HK, Singapore, Malaysia, Mexico and UAE, 2017 CMB performance is based on the bank that the customer defines as their main bank, whereas 2018 CMB performance for these markets is based on the bank that the customer defines as the most important. Surveys are based on a relevant and representative subset of the market. Data provided by RFi Group, Kantar and another third party

  10. Both digital metrics include the following markets: the UK (excluding M&S Bank and John Lewis Finance customers), Hong Kong (excluding Hang Seng customers), Mexico, Malaysia, Singapore, UAE, mainland China, Canada, Australia, the US, France, India, Indonesia, Turkey, Egypt, Australia and Taiwan. Digital sales also include M&S Bank customers in the UK. Digitally active customers are defined as percentage of customers who have logged on to HSBC digital channels at least once in the past 90 days. Percent of sales include the sales of loans and deposits through digital channels
  11. Based on Sustainalytics

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