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July 2021 EDITION 5

INVESTORBULLETIN BULLETIN GLOBAL MONEY and FOR MICROSOFT EDGE USERS GLOBAL WALLET

Your money, Strategic steps forward multiple currencies

From reshaping our US business to taking major strides in our ambition to transition to net zero, read the latest on HSBC’s strategic progress

News and Insights

Climate Solutions Partnership

We’re mobilising and accelerating innovation to help drive the transition to a global net zero economy

Interview with and HSBC and Climate 3

Michael Roberts Kavita Mahtani HSBC and Digital 6 CEO, US and Americas , Americas Awards 8 A glimpse into the future of HSBC in the US: Simpler and sustainably profitable HSBC Senior Management Changes Interview with

1. 3. 4. What is the vision for the US business five As for your commercial business, do you What role will the US play in HSBC’s to ten years out? now exclusively serve internationally- strategy of becoming a Top 5 global Michael Roberts: Going forward, HSBC focused clients? financing house? USA will be a more focused, simpler and Kavita: US Corporate Banking International Michael: The US is key to our ambition of sustainably profitable business. Our ambition clients increased to nearly 90% of our US becoming a Top 5 global financing house. We and is to be the leading international in the Corporate Banking clients last year. We’re have the largest and deepest capital markets Michael Roberts Kavita Mahtani US. We will primarily be an international able to support our US CMB clients as they in the world. CEO, US and Americas Chief Financial Officer, Americas client-oriented wholesale business that expand abroad and our international clients contributes a significant amount of outbound who operate in the US. We’re investing in “We are uniquely positioned to help revenue across HSBC’s unparalleled RM coverage in key markets with the highest global network. We will maintain a strong concentration of international clients, such our international wholesale clients and stable balance sheet and focus on as Los Angeles, San Francisco, Boston, Mr Roberts joined the bank as US CEO in Ms Mahtani joined the bank in 2019 and is consistently improving returns. Washington DC and City. by connecting US clients to HSBC’s 2019 and was given oversight of the Americas responsible for the financial operations of region in April 2021. Previously Mr Roberts HSBC Bank USA, HSBC Bank Canada, and 2. global network and global clients to was at , most recently as Global HSBC Latin America, overseeing the financial You’ve retained c. 300,000 “wealth” “Collaboration between Head of Corporate Banking and Capital functions of HSBC Americas operations, customers. What services do these US capital markets.” Management and Chief Lending Officer. including accounting, regulatory reporting, customers need that can’t be provided by CMB and GBM In these roles, he managed 1,500 bankers stress testing and capital management. domestic ? remains a significant The infrastructure and capabilities are across 100 countries, and was responsible Ms Mahtani has more than 25 years of Kavita Mahtani: We believe we can not already largely in place today but we are for lending to institutional, experience in and a broad only retain, but grow our wealth customer opportunity for us, simplifying the business and refocusing and retail customers globally. During his strategic knowledge of banking. She joined base by focusing on the US$5 trillion our resources on our areas of competitive 33-year career at Citi, he held various senior HSBC from Citigroup, where she most international wealth opportunity that exists so we are deepening strength – specifically Transaction Banking, leadership roles in the US and abroad, recently served as Head of Asset and Liability in the US. By capitalising on the strength Debt Capital Markets (DCM) and Leveraged including Head of Global Financial Institutions, Management for Citi Corporate Treasury. of HSBC’s network, we can deliver global sector coverage of and Acquisition Finance (LAF). For example, Head of Global Automotive and Industrials, coverage, holistic servicing and a seamless as our CMB clients grow, we’re able to CEO of Citibank Canada, and positions in cross-border experience. We’re continuing CMB clients in key work more closely with our Global Banking France, Belgium and Turkey to invest in products and services that meet business to offer the right products and the unique needs of our wealthy international sectors, namely TMT, services. We’ve seen significant successes client base. For example, we recently launched through this collaboration, particularly in LAF, Global Money, a multi-currency, mobile-only Industrials, Healthcare, where underwriting fees are up 50% year “We’re continuing to invest in products and account designed for globally mobile clients. and Consumer and over year. In LAF, partnership with CMB and services that meet the unique needs of Additionally, we offer unique services for with markets across our global network has international clients looking to buy Retail.” resulted in a number of deal wins, including our wealthy international client base.” in the US, such as the ability to apply for a with companies such as Samsonite and mortgage without a US credit history. Birkenstock.

HSBC INVESTOR BULLETIN | July 2021 2 HSBC and Climate IN BRIEF Since setting out a clear strategy for the NZBA AGM transition to net zero – with ambitious targets Net Zero Shareholder climate to reach net zero carbon both in our own Banking resolution operations and in our financed portfolios – we’ve We’ve completed the first-ever end-to-end paperless made significant strides. Here are just a few. Alliance At the Annual General Meeting in May, shareholders supported steel trade between the UAE and India. The live trade our climate resolution with 99.7% of votes in favour. The resolution finance transaction between the UAE’s Universal Tubes (NZBA) commits HSBC to set short and medium-term targets to align its and Plastic Industries, and India’s Tata Steel, involved provision of finance to the Paris Agreement goals, and to publish a end-to-end digitisation of the documentation on blockchain SMI In April, we joined 42 other policy to phase out the financing of coal-fired power and thermal coal trade finance network Contour. banks from 23 countries as mining by 2030 in EU and OECD markets, and by 2040 in the rest of a founding signatory of the the world. Financial Services NZBA. The banks, with a combined total of USD28.5 Canada has joined a growing list of markets where HSBC Taskforce (FSTF) trillion in assets, have has led sovereign green bond programmes by selecting founded the NZBA to bring us as joint structural adviser for the country’s first federal The FSTF operates as an industry sub-group of the Sustainable collaboration and consistency government green bond issuance. We’ll help design the Markets Initiative (SMI) and is chaired by HSBC Chief Executive to collective efforts to reach green bond framework and support the inaugural issuance . FSTF members are drawn from across the banking the Paris Agreement goals. as part of Canada’s programme to achieve its climate industry to work on meaningful and actionable plans to help ambitions. accelerate the world’s transition to a sustainable future. The group played a significant role in climate discussions at the G7 summit in Cornwall, UK. The Greater Bay Area’s pipeline of bankable, investment- ready green projects offers a huge opportunity to our clients, according to a Climate Bonds Initiative report we HSBC UK helped to produce. Investors who think only solar and wind projects qualify for green finance could miss out on the Shaping the UK’s new green financing PCAF hundreds of billions that GBA local governments plan to pour into a range of sustainability projects. As joint structuring adviser, we’ve helped shape the UK government’s new green financing framework — Partnership for Carbon unveiled ahead of its inaugural green bond issuance this year. Accounting Financials (PCAF) We held lead roles as German vehicle giant BMW raised In March, we became the largest financial institution to date, RMB3.5 billion through a Panda bond issued into the China The UK is expected to issue at least £15 billion in measured by total financed assets, to commit to using the PCAF Interbank Bond Market. It’s the first publicly syndicated green gilts during this financial year standard for calculating financed emissions. Panda bond issuance from a foreign multinational alone and the framework sets out corporation – and a big statement about our capabilities in the projects eligible for funding. China and .

HSBC INVESTOR BULLETIN | July 2021 3 Climate Solutions Partnership IN BRIEF

HSBC has helped the University of Cambridge publish a new handbook aimed at understanding and identifying nature-related financial risks. We’ve joined up with World Together with other financial institutions, we’re working with the university’s Cambridge Institute for Sustainability Resources Institute (WRI) Leadership to create methodologies that assess specific and WWF to form a five-year ‘use cases’ to help the wider financial industry avoid risks. philanthropic partnership to help climate solutions become Influential ratings agency MSCI has given us a commercial reality and have ‘leader’ AA rating for environmental, social, and governance issues – up from an ’average’ BBB rating in real-world impact. 2020. Fewer than three in 10 banks globally currently hold The Climate Solutions significant impact in the mission an AA or AAA rating on ESG. MSCI said “HSBC leads peers Partnership is powered by to achieve a net zero, resilient on most assessed key issues”. US$100 million of philanthropic and sustainable future. funding from HSBC and, with a network of local partners, We have plenty of assets to aims to scale up a wide range bring the partnership to life on of potential breakthroughs, our website, including videos by combining our resources, that explain each workstream knowledge and insight. in detail and examples of how the Partnership is making a The Partnership is focusing difference including through its collective efforts on three a programme to plant two FAST-Infra has developed a new Sustainable global themes: climate-related million trees in the UK, a Infrastructure Label (SI Label) that aims to attract innovation, nature-based challenge to entrepreneurs to investors to the trillion-dollar sustainable infrastructure solutions and energy efficiency smash greenhouse gases, and investment opportunity by highlighting projects that have initiatives in Asia. We see these improvements to soil health for a sustainability criteria at their core. The consultation is as having the potential to make a more resilient US food system. under way and all interested parties are encouraged to participate by 30 July.

HSBC INVESTOR BULLETIN | July 2021 4 HSBC and Digital

WPB MENAT GLOBAL RESEARCH IN BRIEF Central Bank Digital Born in the UAE HSBC Private Banking clients in Asia can now link-up with the latest market opportunities through a newly Introducing Global Money – our new Currencies (CBDCs) launched Online Trading Platform offering access to 10 key financial markets in Asia, Europe and the US. multi-currency digital account CBDCs could replace cash and transform the banking Our new mobile account that enables retail system globally within a customers to hold up to 21 currencies and generation. make free, real-time international payments has SBC US launched the AI Powered Multi Asset Index launched in the UAE. The benefits could include (AiMAX), the first rules-based multi-asset investment increased growth and reduced strategy to use artificial intelligence (AI) as a method for Global Money takes the hassle out of sending poverty in the emerging constructing a diversified growth portfolio. money abroad, and removes the need for world – and even tastier drinks customers to turn to third-party providers for in your local coffee shop, people can spend ‘on the high international transactions. Its functionality will according to HSBC Global street’ – owing to their volatility, Hold, send and convert launch in further markets this year. Economist James Pomeroy. as well as the intensive energy money in up to 21 usage and expense of the system currencies, including HSBC UK has launched a Fraud and Cyber Awareness AED, USD, EUR, GBP, JPY, CBDCs are like a ‘distant that supports them. But CBDCs app that arms firms with information about new and HKD, SGD, AUD, SAR cousin’ of cryptocurrencies are likely to become mainstream emerging scam types and sends users notifications of like . Despite being methods of payment in the not- what to look out for. The app is available free of charge around for a number of years too-distant future. With the launch of EZInvest Customers and software to all businesses in the UK. though, cryptocurrencies in , we’ve delivered developers can now use our are not currently something a new unit trust investment API Developer Portal app for the growing market (Application Programming of younger, digital-savvy Interface) to find and securely Our multi-currency digital wallet investors. test potential solutions for for businesses has launched in Deeper digital interactions HSBC Life, our arm, launched the largest global partnership of its kind to integrate dacadoo’s issues such as payment Singapore, the UK and US. Customers expect us to help them complete their everyday Digital Health Engagement Platform into our own health The millennial and Gen-Z initiation. The portal provides HSBC Global Wallet customers banking tasks digitally with ease, but increasingly they’re also and wellbeing platforms, which we make available to cohort is especially drawn to mock customer data and can hold money in at least six seeking broader and deeper digital interactions. low-deposit, low-fee digital technical documentation for currencies, including USD, EUR both corporate and retail customers. Using AI, data analytics and user gamification methods, HSBC Life’s platforms like EZInvest, which testing – part of our drive to and GBP, and ‘pay like a local’ A range of HSBC voices, including Jen Flowers, Head of ASP Well+ and Benefits+ platforms hope to motivate people uses the same technology make customers’ businesses to some destinations – meaning Partnership & Innovation, Wealth and Personal Banking, outline to shift towards and maintain healthier and ‘financially fit’ as our popular FlexInvest more resilient and less limited money will usually arrive within how we’re building our network to respond to these lifestyles. platform in Kong. by their own technology. minutes of being sent. customer trends, especially in Asia-Pacific markets.

HSBC INVESTOR BULLETIN | July 2021 5 People Moves

David Liao and Surendra Rosha Kee Joo Wong Matt Lobner Molly Chowdhury Laura Geiger-Pancera Lisa McGeough have taken over as co-Chief Executives of HSBC Asia Pacific. has taken over as CEO has been appointed as is rejoining HSBC as US Chief has joined as the UHNW has taken over as Head of David, formerly Head of Global Banking Asia Pacific, and Surendra for HSBC Singapore. Group Chief Transformation Information Officer after a Family Office Director. Global Banking Europe and (known widely as Rosha), formerly CEO of HSBC India, will be based Mr Wong has more than 26 years Officer, a role he will take up in short spell away. Ms Choudhury Based in Switzerland, Ms the Institutional Client Group. in and share pan-regional leadership responsibilities that of banking experience across August. Mr Lobner has extensive spent more than 16 years at Geiger-Pancera takes on a Ms McGeough will spearhead include jointly leading regional businesses and functions, embedding different markets, including the experience of setting direction HSBC before leaving last summer newly-created role, reporting to client coverage across Europe purpose, values and culture, developing leadership and talent and UK, Thailand, Hong Kong and for strategic initiatives since to head up Digital Technology Tom Cerboni, overseeing and and oversee regional product overseeing risk, capital and liquidity levels. China, and moves from a six-year first joining HSBC in 2005. He is for Citibank’s Global Commercial driving growth in the wealth teams, as well as tackling first- tenure as HSBC’s Regional Head currently Head of International, Cards business. Most recently management division serving line , specifically They succeed Peter Wong, who steps into the role of non-executive of Global Payments and Cash Asia-Pacific. In his new role at HSBC, she was Head of clients with ultra-high net worth. credit, reputational, compliance Chairman of HSBC Asia-Pacific, and adviser to Group Chairman Mark Management for Asia-Pacific. he will accelerate the delivery Architecture, US and Americas, She previously led the Global and financial crime. She joins Tucker and CEO Noel Quinn. He succeeds Tony Cripps who of HSBC’s strategy through and over her career she has UHNW Client Strategy Office at from , where she joined Saudi British Bank. transformation, working closely delivered numerous business-led UBS, the culmination of a 20- held a wide range of senior Hitendra Dave succeeds Rosha as Interim CEO of HSBC India. He with Chief Financial Officer Ewen transformation projects to update year career at the Swiss lender. positions over 15 years, including brings nearly 30 years of experience in financial services, and was Stevenson and the rest of the our US bank’s core systems. Head of Financial Institutions most recently the Head of Global Banking & Markets in India. bank’s executive board. and Head of International. She succeeds Philippe Henry, who is retiring after 32 years.

HSBC INVESTOR BULLETIN | July 2021 6 Awards

No. 1 We were named as the No 1 bank for Best Overall RMB Products and Services for the 10th straight year in the Asiamoney Global RMB Poll.

Increasing numbers of global clients are looking to transact with RMB for international trade and cross-border investment 7 Gongs There’s no way we could – and corporations, financial institutions and investors who We carried off seven gongs at the prestigiousBond Connect responded to the poll recognised our Awards, a joint venture between the CEFTS and HKEX. reflect all of the awards won consistent delivery of offshore and Our wins ranged from Top Market Maker to Outstanding onshore support. FX Settlement Bank and our very own across the bank in the past Nathan Jin was named Bond Connect few months – but here’s a few Top Trader. Provider of the Year we’ve picked as our favourites. 8 Accolades won Current Account Provider of the Year 2021 at the UK Moneyfacts Consumer Awards. HSBC received eight accolades for outstanding digital Michele Monck, Head of Digital at Moneyfacts.co.uk, said: customer experiences, innovative services and robo- advisory experience in Singapore, mainland China “This is the second year that first direct has and Canada, at The Digital Banker’s won this award. It was recognised by its Digital CX Awards 2021. customers for excellent customer service and the competitive rates it offered for those Best Collab needing to borrow using an overdraft.” The Asset Triple A named HSBC, SGX and Temasek ‘Best Digital Collaboration’ for Singapore’s first ever fully digitalised bond issuance in its 2021 Digital Awards.

Issued by Group Communications HSBC Holdings plc 8 E14 5HQ HSBC INVESTOR BULLETIN | July 2021 7 www..com Putting you in the picture: How our strategy is visible in your everyday life

Explore the illustration to learn more about the unique value we bring to 7 our customers and the communities 6 we serve. Find out about our focus on technology and how we are helping to lead the transition to a more sustainable world. 3

Select the numbered red diamonds 4 to discover more. For the best 2 5 experience please view fullscreen.

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9 Keeping Hong Kong’s waterways clean

Supporting local communities through We’ve partnered with the Clean action and advocacy is part of our Waterways Initiative in Hong Kong commitment to be the leading bank to build four solar powered boats - in the transition to a net zero-carbon each capable of collecting and sorting global economy. more than 2,500 litres of plastic waste per load. World’s first corporate bonds to tackle plastic waste

Supporting our customers to transition The firm behind products such as Persil to a low carbon future, especially in detergent and Schwarzkopf shampoo carbon challenged industries, is part of will use the equivalent of $100m raised our commitment to transition to net zero. for projects including the development of reusable and recyclable packaging. Our green expertise and global We were sole green structuring adviser connectivity helped Henkel, a leading and sole lead manager on the five-year consumer goods and industrial fixed-rate bonds, which were issued company, to issue the first ever in two tranches. The bonds generated corporate bonds aimed at tackling interest from international investors from plastic waste. Japanese insurers to German banks. Threading connections

Ever since HSBC was founded in and enables clothing manufacturers to 1865 with an ambition to facilitate fulfil their sustainability commitments. international trade, we have used our Serai helps businesses to build trusted global network to connect customers relationships so that they can grow to opportunities around the world. and connect globally. It also enables the traceability of cotton and other Digitising what we’ve been doing raw materials that are used to make for over 155 years, we developed the clothes you wear. Serai - a digital platform that simplifies global trade for clothing businesses Becoming a simpler, more agile and effective organisation

As we energise for growth, we want to We’re also supporting our colleagues inspire a dynamic and inclusive culture to achieve a better work-life balance where the best want to work. with a hybrid working model across HSBC. This helps our colleagues be at As our lives are transformed by digital their best for our customers whenever technologies and sustainable practices, and wherever they need us, as the way we are helping all colleagues develop they bank with us changes. future-ready skills to ensure they can support and create opportunities for our customers. Our digital aim: ‘Our bank in your pocket’

Creating and delivering fast, easy, than a billion log-ins a year, from digital customer experiences is the personal banking customers alone. passion that drives our focus to digitise at scale. In 2020, 92.7% of our global personal banking transactions were digital Our digital innovations are putting and 54% of our retail customers the full power of our bank in every were digitally active. Our mobile customer’s pocket, whether you’re banking apps let you manage your a first-time saver, a budding start-up accounts easily and securely from or a multi-national business. Demand a time and a place that suits you. for our apps is rocketing. We get more Financing green power for your home

Supporting our customers to transition in Egypt and a solar rooftop in France to lower carbon emissions is a key that’s as large as seven football pitches. priority alongside our pledge to accelerate new climate solutions. Financing wind power farms in Australia and hydroelectric plants in We’re advising and helping to finance Chile also form part of our commitment some of the world’s biggest solar power to support our customers on their projects across the globe, including the journey to net zero. fourth-largest solar park in the world Blue-sky thinking, Greener skies

We’re committed to helping our We also played a key role in the world’s customers transition to low carbon first transition sukuk. It enables Etihad operations with up to USD1 trillion in Airways to raise funds from investors sustainable financing and investment. for sustainability goals in accordance with Islamic finance principles. We provided Cargolux, one of the Etihad will use the USD600 million world’s biggest cargo-only airlines, with proceeds for energy-efficient aircraft its first ESG-linked investment. This and research and development into innovative investment solution helped sustainable aviation fuel, supporting Cargolux manage its money while also their commitments to cut carbon. addressing its carbon footprint as it continues to transport vital supplies around the world, including PPE and vaccines to help fight COVID-19. As nature intended

Our ‘Plan for the Planet’ shows our The joint venture with Pollination, determination to lead the way in a specialist climate change advisory sustainable finance and accelerate and investment firm, intends to set new climate solutions with up to up funds that will invest in a range USD1 trillion of finance investment. of nature-based projects that protect and enhance nature over the long term, In August 2020 we launched HSBC and reduce greenhouse emissions. Pollination Climate Asset Management, with the vision to create the world’s largest dedicated natural capital investment manager. Helping you realise your home-buying dream

Opening up a world of opportunity for One home at a time, we’re also our customers is the reason we exist. supporting our customers to transition to a low carbon future. In April 2021 we re-introduced 95% Loan to Value mortgages in the UK, We issued our first ever green mortgages supporting the UK Government’s new in the UAE this year, meaning customers mortgage guarantee scheme and can make sustainable decisions with their making more people’s home-buying money, through green retail finance for dreams a reality. that meet eco standards. Quick clicks

As people lead increasingly digital lives, Throughout the Covid-19 outbreak, an important part of our strategy is to we continued to invest in technology to deliver faster, easier and more secure help our customers to do more of their digital banking. everyday banking online, and we rolled out new functionality to support them In the UK, Singapore and Hong Kong through the pandemic and provide digital we now offer 100% online account solutions for their growth ambitions. opening, meaning it’s now easier and quicker for you and millions of others to open an account with us. Chipping in

What we do has a real impact on HSBC provides low-cost, collateral people’s lives, communities and the free loans to small farming businesses planet. We take this responsibility based on their past transaction records seriously. with established foodmakers, including global conglomerates. Providing Small businesses are a key support to essential financing to these small local economies and the communities businesses enables them to grow and who depend on them. We’ve helped connect to new opportunities whilst the rural economy in Inner Mongolia putting your favourite products on the to overcome supply chain uncertainty dinner table. and secure production of high-quality potatoes through our Pre-shipment finance programme. Helping to fight COVID

Succeeding together is just one of the The targeted financing will inject values that guides us in our strategy. much-needed liquidity into the vaccine Together, we make possible what we supply chain – from sourcing and cannot do alone. through to distribution – to overcome shortages and establish We have partnered with the Asian durable mass inoculation programmes. Development Bank (ADB) to provide up to USD1.2bn of supply chain Helping to build robust supply chains finance to companies providing will enable a regular flow of vaccines COVID related supplies. and help prevent developing economies from falling behind, while delivering We are also providing USD300 economic benefits to Asia Pacific million to help Asia’s supply chains and beyond. boost manufacturing capacity for COVID-19 vaccines. Easy, helpful mobile banking

We’re developing and deploying some businesses with just a tap, both online of the industry’s most advanced and and in store. innovative technology to make your banking easier and more secure. We’re also making borderless banking easy with our Global Money Account. Our award-winning app, PayMe, is You can send funds around the clock in Hong Kong’s most popular social real time to any HSBC bank account in payment app, enabling over 2 million 20 countries and territories worldwide users to go cashless – no fees, no in 21 currencies at preferential hassles. PayMe makes it easy to exchange rates. split bills with friends and also pay Eliminating single use plastic from your pocket

We have committed to become a reduce CO2 emissions by 161 tonnes net-zero bank by 2030 or sooner. and reduce plastic waste by 73 tonnes per year. This underpins our global By the end of 2026 we will eliminate ambition to build a thriving and resilient single-use PVC plastic cards, in favour future, and most of all is what our of recycled PVC plastic. Issuing 23 customers want us to do. million recycled cards per year will Helping Heroes deliver worldwide

We’re here to use our unique expertise, We’ve helped the food delivery business capabilities, breadth and perspectives to scale up across different markets to open up new kinds of opportunity and implement rapid payment and for our customers. collection solutions – integral services for a company that now takes 5 million Our global presence and expertise across orders per day through hundreds of different cultures and economies has thousands of restaurant partners in been a crucial element that’s enabled more than 40 markets. our client Delivery Hero to achieve rapid global growth.