Our investment case

HSBC is one of the world’s leading international banks. We aim to deliver long-term value for our shareholders through our extensive international network, access to high-growth markets and balance sheet strength.

Who we are

40m

CUSTOMERS

US$18.9bn

REPORTED PROFIT BEFORE TAX IN 2021

63

COUNTRIES AND TERRITORIES

With assets of $3.0tn and operations in 63 countries and territories at 30 June 2022, HSBC is one of the largest banking and financial services organisations in the world. We serve approximately 40 million personal, wealth and corporate customers through three global businesses. We have around 182,000 shareholders in 128 countries and territories. We continue to maintain a strong capital, funding and liquidity position with a diversified business model.

Opening up a world of opportunity

Our ambition is to be the preferred international financial partner for our clients. In February 2021, we aligned our strategy in response to changes in the operating environment. We intend to increase our focus on areas where we are strongest.

We are accelerating the shift of capital to areas that have demonstrated the highest returns and where we have sustainable advantage through scale - principally Asia and wealth. Our international network remains a key competitive advantage and we will continue to support cross-border banking flows between major trade corridors. Supported by these shifts, we are aiming to reach mid single-digit revenue growth in the medium to long term, with a higher proportion of our revenue from fee and insurance income.

In addition, we aim to digitise at scale to adapt our operating model for the future, energise our organisation for growth, and lead the transition to net zero.

Find out more about our purpose, values and strategy.

Everything that we plan to do over the next decade is designed to unlock opportunity for our stakeholders, whether customers, colleagues, shareholders or communities

Noel Quinn, Group Chief Executive, HSBC

Adjusted revenue by region in FY21, %

TOTAL: US$50.1bn

Asia 45%

Europe 35%

North America 11%

Latin America 5%

Middle East and North Africa 4%

Note: Regional percentage composition calculated with regional figures that include intra-Group revenue. Intra-Group revenue is excluded from the total Group revenue number

Our businesses

Our three global businesses work together to meet customers’ needs, manage risk, and provide sustainable returns for our shareholders.

Adjusted profit before tax per business for FY21 (US$billion)

TOTAL: US$21.9bn

Commercial Banking $6.7bn

Corporate Centre $2.8bn

Global Banking & Markets $5.3bn

Wealth and Personal Banking $7.0bn

Balance sheet strength

We continue to maintain a strong capital, funding and liquidity position with a diversified business model and low earnings volatility. We take a conservative approach to credit risk and liquidity management.

Our capital base supports our ability to invest in business growth, meet current and future regulatory requirements, and sustain returns for shareholders.

At the end of December 2021, HSBC held US$3 trillion in total assets – the same as at the end of December 2020.

Over recent years we have taken an active approach to allocating Group capital into areas of higher growth and return, such as Asia.

HSBC common equity tier 1 ratio, %

We actively manage our capital position to support our business strategy and meet our regulatory requirements at all times, while optimising our capital efficiency. Our common equity tier 1 ratio is a key measure of capital strength.

31 Dec 2021 15.8%

31 Dec 2020 15.9%

31 Dec 2019 14.7%

31 Dec 2018 14.0%

Financial information last updated: 22 February 2022