HSBC Investor Relations
21 July 2021
HSBC Group financial estimates
As at 21 July 2021
1
1. Consensus estimates are based on the mean average of brokers providing estimates for the specific item, calculated on a line-by-line basis and may not be additive. Where brokers do not provide estimates for specific items, these are excluded from the average 2. Change in expected credit losses and other credit impairment charges
3. Adjusted income statement excludes significant items
2Q21 2021 2022 2023
Group reported income statement, $m
Net interest income 6,530 26,367 27,484 28,965
Other income 6,001 23,680 24,222 25,221
Net operating income 12,530 50,047 51,706 54,186
ECL2 (552) (2,015) (3,077) (3,445)
Operating expenses excl. bank levy (8,887) (35,365) (33,485) (32,185)
Bank levy - (335) (334) (340)
Total operating expenses (8,887) (35,700) (33,819) (32,526)
Share of profit in associates and joint ventures 582 2,554 2,390 2,567
Profit/(loss) before tax 3,673 14,886 17,200 20,782
Tax expense (816) (3,349) (3,857) (4,472)
Profit/(loss) for the period 2,857 11,537 13,343 16,310
Profit attributable to non-controlling interests 234 943 1,005 1,054
Dividends / coupons on preference shares / capital securities 210 1,340 1,378 1,394 Profit attributable to the ordinary shareholders of the parent company 2,414 9,254 10,960 13,862
Group adjusted income statement3, $m
Net interest income 6,530 26,366 27,484 28,965
Other income 6,044 24,074 24,446 25,242
Net operating income 12,574 50,440 51,930 54,207
ECL2 (552) (2,015) (3,077) (3,445)
Operating expenses excl. bank levy (7,874) (31,699) (31,015) (31,442)
Bank levy - (335) (334) (340)
Total operating expenses (7,874) (32,034) (31,349) (31,782)
Share of profit in associates and joint ventures 582 2,543 2,390 2,567
Profit/(loss) before tax 4,730 18,932 19,894 21,547
Significant items, $m
Revenue (44) (392) (224) (21)
ECL - - - -
Costs (1,013) (3,666) (2,470) (744)
Associates - 12 - -
Total (1,057) (4,046) (2,694) (765)
2Q21 2021 2022 2023
Group balance sheet and capital, $bn
Customer accounts 1,656.2 1,680.1 1,728.1 1,785.2
Loans and advances to customers (net) 1,048.1 1,071.4 1,109.9 1,149.6
Total assets 2,989.8 2,991.6 3,065.1 3,157.3
Risk-weighted assets 858.5 875.2 901.9 931.8
Total leverage ratio exposure 2,940.6 2,976.6 3,050.1 3,136.1
Common equity tier 1 capital 135.5 135.2 137.2 140.6
Tier 1 capital (end point) 160.4 159.8 161.9 165.3
Tangible net asset value 158.0 159.4 163.1 168.4
Net asset value 175.6 177.7 181.6 187.3
Key financial metrics
Net Interest Margin, % 1.20% 1.21% 1.22% 1.25%
Basic earnings per ordinary share, $ 0.12 0.46 0.54 0.69
Dividends per ordinary share, $ 0.08 0.23 0.28 0.34
Return on average tangible equity, % 6.3% 5.8% 6.7% 8.4%
Return on average ordinary shareholders' equity, % 5.7% 5.3% 5.9% 7.5%
Common equity tier 1 ratio, % 15.8% 15.5% 15.2% 15.1%
Leverage ratio, % 5.4% 5.4% 5.3% 5.3%
Tangible net asset value per ordinary share, $ 7.80 7.85 8.10 8.50
Net asset value per ordinary share, $ 8.68 8.76 9.03 9.48
Number of shares (excl. treasury shares), bn 20.24 20.30 20.14 19.83
Weighted average number of ordinary shares outstanding, bn 20.24 20.28 20.22 19.99
2
HSBC Group financial estimates
As at 21 July 2021
1. Consensus estimates are based on the mean average of brokers providing estimates for the specific item, calculated on a line-by-line basis and may not be additive. Where brokers do not provide estimates for specific items, these are excluded from the average 2. Change in expected credit losses and other credit impairment charges
3. Adjusted income statement excludes significant items
2Q21 FY21 FY22 FY23
Group adjusted income statement, $m Low Average High Low Average High Low Average High Low Average High
Net interest income 6,459 6,530 6,598 26,084 26,366 26,659 26,873 27,484 28,294 27,751 28,965 30,527
Other income 5,759 6,044 6,879 23,327 24,074 25,473 23,302 24,446 26,687 23,875 25,242 27,529
Net operating income 12,269 12,574 13,338 49,675 50,440 51,871 50,774 51,930 54,671 52,266 54,207 57,445
ECL2 (1,068) (552) (48) (3,053) (2,015) (1,288) (3,486) (3,077) (2,360) (3,774) (3,445) (2,839)
Operating expenses excl. bank levy (8,152) (7,874) (7,453) (31,966) (31,699) (31,133) (32,034) (31,015) (28,311) (33,008) (31,442) (30,743)
Bank levy - - - (502) (335) (300) (502) (334) (279) (502) (340) (285)
Total operating expenses (8,152) (7,874) (7,453) (32,323) (32,034) (31,533) (32,334) (31,349) (28,611) (33,308) (31,782) (31,043)
Share of profit in associates and joint ventures 462 582 739 2,143 2,543 3,018 178 2,390 3,207 1,496 2,567 3,363
Profit/(loss) before tax 3,995 4,730 5,455 17,554 18,932 20,405 16,523 19,894 22,587 18,759 21,547 23,992
Total significant items (1,259) (1,057) (607) (4,601) (4,046) (2,718) (5,130) (2,694) (1,700) (2,000) (765) -
Reported profit/(loss) before tax 3,102 3,673 4,580 13,147 14,886 16,568 13,981 17,200 20,537 17,909 20,782 23,328
Tax expense (1,020) (816) (598) (4,299) (3,349) (2,378) (4,360) (3,857) (3,216) (5,132) (4,472) (4,025)
Profit/(loss) for the period 2,368 2,857 3,560 9,691 11,537 12,724 10,311 13,343 16,225 13,881 16,310 18,196
Profit attributable to non-controlling interests 211 234 297 837 943 1,314 868 1,005 1,380 868 1,054 1,449
Dividends / coupons on preference shares / capital securities 176 210 355 997 1,340 1,531 1,047 1,378 1,838 1,099 1,394 1,811
Profit attributable to the ordinary shareholders of the parent company 1,955 2,414 3,118 7,466 9,254 10,541 8,098 10,960 13,477 11,333 13,862 15,974
Significant items, $m Low Average High Low Average High Low Average High Low Average High
Revenue (201) (44) - (888) (392) - (2,224) (224) - (300) (21) 19
ECL - - - - - - - - - - - -
Costs (1,259) (1,013) (607) (4,200) (3,666) (2,500) (5,130) (2,470) (1,700) (2,000) (744) -
Associates - - - - 12 200 - - - - - -
Total (1,259) (1,057) (607) (4,601) (4,046) (2,718) (5,130) (2,694) (1,700) (2,000) (765) -
Group balance sheet and capital, $bn Low Average High Low Average High Low Average High Low Average High
Customer accounts 1,637.9 1,656.2 1,666.2 1,632.9 1,680.1 1,741.4 1,635.7 1,728.1 1,826.3 1,652.8 1,785.2 1,931.3
Loans and advances to customers (net) 1,040.5 1,048.1 1,053.1 1,053.7 1,071.4 1,095.7 1,076.2 1,109.9 1,146.9 1,108.3 1,149.6 1,200.4
Total assets 2,951.0 2,989.8 3,073.7 2,784.6 2,991.6 3,116.5 2,873.3 3,065.1 3,262.0 2,971.3 3,157.3 3,414.2
Risk-weighted assets 851.2 858.5 877.6 842.3 875.2 897.8 836.2 901.9 931.0 881.6 931.8 980.2
Key financial metrics Low Average High Low Average High Low Average High Low Average High
Net Interest Margin, % 1.18% 1.20% 1.28% 1.17% 1.21% 1.24% 1.17% 1.22% 1.30% 1.18% 1.25% 1.34%
Basic earnings per ordinary share, $ 0.10 0.12 0.15 0.37 0.46 0.52 0.40 0.54 0.67 0.55 0.69 0.81
Dividends per ordinary share, $ 0.03 0.08 0.11 0.17 0.23 0.32 0.24 0.28 0.36 0.27 0.34 0.41
Return on average tangible equity, % 5.7% 6.3% 7.9% 4.7% 5.8% 6.5% 5.0% 6.7% 8.4% 6.9% 8.4% 9.3%
Return on average ordinary shareholders' equity, % 4.3% 5.7% 7.1% 4.7% 5.3% 6.0% 4.5% 5.9% 7.1% 6.2% 7.5% 8.6%
Common equity tier 1 ratio, % 15.4% 15.8% 16.2% 14.6% 15.5% 16.3% 14.1% 15.2% 16.5% 14.2% 15.1% 16.1%
Leverage ratio, % 5.3% 5.4% 5.6% 5.1% 5.4% 5.7% 4.9% 5.3% 5.9% 4.8% 5.3% 5.9%
Tangible net asset value per ordinary share, $ 7.72 7.80 7.92 7.57 7.85 8.02 7.77 8.10 8.51 8.03 8.50 9.06
Net asset value per ordinary share, $ 8.60 8.68 8.78 8.53 8.76 8.91 8.71 9.03 9.40 9.02 9.48 9.96
3
Average and spot foreign currency rates
1. LCY: local currency 2. Source: Bloomberg
Avg FX Rates (US$ per 1 LCY) Spot FX Rates (US$ per 1 LCY) Spot FX1
Country 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 FY20 20 Jul
UK 1.278 1.242 1.291 1.320 1.379 1.399 1.244 1.233 1.291 1.365 1.380 1.382 1.283 1.363
France 1.102 1.102 1.169 1.192 1.204 1.206 1.097 1.122 1.173 1.226 1.175 1.186 1.140 1.178
Germany 1.102 1.102 1.169 1.192 1.204 1.206 1.097 1.122 1.173 1.226 1.175 1.186 1.140 1.178
Turkey 0.164 0.146 0.138 0.127 0.135 0.119 0.152 0.146 0.129 0.135 0.121 0.115 0.142 0.117
Switzerland 1.033 1.038 1.087 1.106 1.104 1.099 1.038 1.053 1.085 1.135 1.063 1.080 1.066 1.085
Hong Kong 0.129 0.129 0.129 0.129 0.129 0.129 0.129 0.129 0.129 0.129 0.129 0.129 0.129 0.129
Australia 0.657 0.657 0.715 0.730 0.772 0.770 0.611 0.687 0.715 0.773 0.763 0.750 0.689 0.733
India 0.014 0.013 0.013 0.014 0.014 0.014 0.013 0.013 0.014 0.014 0.014 0.013 0.013 0.013
China 0.143 0.141 0.145 0.151 0.154 0.155 0.141 0.141 0.147 0.153 0.153 0.155 0.145 0.154
Malaysia 0.239 0.231 0.238 0.243 0.246 0.242 0.231 0.233 0.239 0.249 0.241 0.241 0.238 0.237
Singapore 0.722 0.709 0.727 0.743 0.750 0.751 0.702 0.716 0.732 0.757 0.745 0.744 0.725 0.732
Taiwan 0.033 0.033 0.034 0.035 0.036 0.036 0.033 0.034 0.035 0.036 0.035 0.036 0.034 0.036
Egypt 0.063 0.063 0.063 0.064 0.064 0.064 0.063 0.062 0.063 0.064 0.064 0.064 0.063 0.064
UAE 0.272 0.272 0.272 0.272 0.272 0.272 0.272 0.272 0.272 0.272 0.272 0.272 0.272 0.272
Saudi Arabia 0.266 0.266 0.267 0.267 0.267 0.267 0.266 0.267 0.267 0.267 0.267 0.267 0.266 0.267
Canada 0.744 0.722 0.750 0.767 0.790 0.815 0.703 0.732 0.748 0.786 0.797 0.808 0.746 0.789
Argentina 0.016 0.015 0.014 0.013 0.011 0.011 0.016 0.014 0.013 0.012 0.011 0.010 0.014 0.010
Mexico 0.050 0.043 0.045 0.049 0.049 0.050 0.042 0.043 0.045 0.050 0.049 0.050 0.047 0.050
Brazil 0.224 0.186 0.186 0.185 0.182 0.189 0.193 0.182 0.178 0.193 0.176 0.200 0.194 0.192
Foreign exchange exposures
4
Structural foreign exchange exposures as at 31 December 2020, $m
Structural foreign exchange exposures represent net investments
in subsidiaries, branches and associates, the functional
currencies of which are currencies other than the US dollar.
Exchange differences on structural exposures are recognised in
‘Other comprehensive income’.
2020
Hong Kong dollars 47,623
Pound sterling
135,285
Chinese renminbi 32,165
Euros 15,672
Canadian dollars 5,123
Indian rupees 4,833
Mexican pesos 4,139
Saudi riyals 3,892
UAE dirhams 3,867
Malaysian ringgit 2,771
Singapore dollars 2,473
Australian dollars 2,357
Taiwanese dollars 2,036
Indonesian rupiah 1,726
Swiss francs 1,444
Korean won 1,368
Thai baht 991
Egyptian pound 889
Others, each less than $700m 6,858
At 31 December 175,512
1. At 31 December 2020, we had forward foreign exchange contracts of $11.2bn (2019: $10.5bn) in order to manage our sterling structural foreign exchange exposure.
Disclaimer
Consensus figures in the tables above are line-by-line averages based on the estimates received by HSBC Holdings plc (“HSBC”) from analysts covering HSBC.
HSBC Investor Relations requested sell-side analysts that, to the best of HSBC’s knowledge, cover HSBC via written research reports on a regular basis to provide their estimates for each of the line items appearing in the tables above. In the tables above, estimates from 17 analysts have been used to calculate the full year consensus figures, and 15 analysts have been used to calculate the 2Q consensus figures. HSBC excluded submissions where estimates have not been updated following the last reported quarterly results, have not been updated to reflect significant announcements or events or contain a manifest error. The selection of the analysts included in the consensus figures has not been made on the basis of the analysts’
opinions, forecasts, estimates, projections, predictions or recommendations in respect of HSBC.
HSBC has obtained the permission from each analyst included in the consensus figures to include their estimates on a non-disclosed basis. From time to time, the firms that analysts represent, or their partners or associates, may be involved in transactions as a manager, co-manager or participant, involving securities issued by HSBC, its subsidiaries or affiliates. At such times, analysts may be required to suspend or restrict coverage on HSBC in terms of published opinions, forecasts, estimates, projections, predictions or recommendations. Such analysts' opinions, forecasts, estimates, projections, predictions or recommendations, if unavailable, will not be included in consensus figures. Such analysts may be included in future consensus figures prepared by HSBC.
The opinions, forecasts, estimates, projections, predictions or recommendations regarding HSBC’s performance or financial position made by the aforementioned analysts (and, therefore, the aggregated consensus estimate numbers that result from the individual estimates) are those of the analysts alone and do not represent the opinions, forecasts, estimates, predictions or recommendations of HSBC or its management and HSBC does not endorse or concur with any of such analysts’
opinions, forecasts, estimates, projections, predictions or recommendations. HSBC accepts no liability for the selection, accuracy or completeness of the analysts’ opinions, forecasts, estimates, projections, predictions or recommendations.
Consensus estimate presented as at: 21 July 2021.
HSBC has not verified any of the forecasts received, nor does it intend to do so in the future, and none of HSBC, its subsidiaries or affiliates or their respective directors, officers and employees makes any representation or warranty, express or implied, as to, or accepts any responsibility for, the accuracy or completeness of the consensus information, the reasonableness of any assumptions or projections or the likelihood of achieving the consensus figures. HSBC assumes no responsibility to update or supplement the consensus figures.
HSBC will not provide any commentary on the consensus figures. The circulation of consensus figures by HSBC is not mandatory and HSBC may amend its practice on this, or cease to provide consensus estimates at any time.
HSBC is not aware of, nor has it investigated, the existence of any interests or conflicts of interest of the contributors that could compromise the objectivity of the contributed information.
The consensus figures are being provided for information purposes only and are not intended to, nor do they, constitute investment advice, promotional material for services offered by HSBC, its subsidiaries or affiliates, or any solicitation to buy, hold or sell securities or other financial instruments of HSBC, its subsidiaries or affiliates. None of HSBC, its subsidiaries or affiliates or their respective directors, officers and employees shall accept any liability whatsoever for the consequences of any reliance upon, or actions taken based on, any of the information provided in the consensus figures.
Where analysts, investors or other parties wish to include or refer to the HSBC consensus information in other documents, including published research, it must be appropriately cited as “company compiled consensus” with the relevant “as at” date of publication.
Investor relations contacts
Name Role Phone Email
Richard O’Connor Global Head of Investor Relations +44 (0) 20 7991 6590 richard.j.oconnor@hsbc.com
Mark Phin Head of Investor Relations, Asia-Pacific +852 2822 4908 mark.j.phin@hsbc.com
Neil Sankoff Head of Equity Investor Relations +44 (0) 20 7991 5072 neil.sankoff@hsbc.com
Tim Fradin Head of Sell-side Investor Relations +44 (0) 20 7992 4834 tim.fradin@hsbc.com