HSBC The Right Bank About HSBC HSBC is one of the world’s largest banking and financial services organizations. With more than 6,100 offices in both established and emerging markets, we aim to be where the growth is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and, ultimately, helping people to fulfil their hopes and realize their ambitions. We serve around 51 million customers through our four Global Businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking. Our network covers 73 countries and territories in Europe, Asia, Middle East, North Africa, North America and Latin America. Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by about 216,000 shareholders in 127 countries and territories. Results At A Glance* Our Four Global Businesses Key Facts Profit before tax by business on a reported basis Customers: 51 million Retail Banking and Global Banking Served by: Wealth Management and Markets 266,000 employees £ ¥ US$5,651m $ US$5,889m Global Reach: Commercial Banking Global Private Banking 73 countries and territories US$8,441m US$626m Across five geographical regions: Europe Asia Global Coverage in Five Regions Middle East and North Africa Profit before tax by geographical region on a reported basis Group profit North America before tax Latin America US$ North America Europe US$1,417m US$596m 18,680m Offices: Over 6,100 Global Headquarters: London Market Capitalization US$182 billion Listed on stock exchanges in: London Hong Kong New York Paris Bermuda Middle East and Share Holders: Latin America North Africa Asia 216,000 in 127 countries and US$216m US$1,826m US$14,625m territories *Source: HSBC Holdings plc Annual Report as of 12/31/14 HSBC in the United States: Our Advantage A Stable Since 1865, HSBC has had a presence in the United States starting with our predecessor Deposit Base bank, Marine Midland, which was founded in Buffalo, New York to finance the shipping HSBC Bank USA, N.A. relies trade along the Great Lakes. Since then, our commitment to traditional banking principles has served us well. We have created a business that is diversified by customer group and primarily on deposits by geography – avoiding excessive reliance on one region or one economic sector, while remaining where the growth is. We have put strong retail deposits at the heart of our strategy, avoiding reliance on the wholesale markets where massive changes in sentiment can take place very quickly. Credit Matters Liability Sources of Funding* HSBC credit rating remains consistently high across all major rating agencies S&P* HSBC Bank USA, N.A. HSBC USA Inc Long Term Local Issuer Credit Rating AA- A 90% 5% 5% Fitch* HSBC Bank USA, N.A. HSBC USA Inc Long Term Bank Deposits Rating AA- n/a Senior Unsecured Debt Rating AA- AA- Total Deposits Long-term Debt Moody’s* HSBC Bank USA, N.A. HSBC USA Inc Short-term Issuer Rating Aa3 n/a Borrowings Long Term Bank Deposits Rating Aa2 n/a Senior Unsecured Debt Rating Aa3 A2 *Source: HSBC USA Inc. Annual Report on Form 10-K as of 12/31/14 A credit rating reflects the creditworthiness of the respective entity and is not indicative of the market risk associated with any investment nor is it a recommendation to buy, sell or hold any investment, and it may be subject to revision or withdrawal at any time by the assigning rating organization. Each rating should be evaluated independently of any other rating. *HSBC.com as of 5/19/15 Strong Market Capitalization Market Capitalization in US$ billions** 250 200 150 100 50 0 HSBC Bank of Barclays BNP Citigroup Credit Deutsche JPMorgan Morgan UBS America Paribas Suisse Bank Chase Stanley **Bloomberg, as of 12/31/14 Total Capital Ratio* HSBC Bank of America Barclays BNP Paribas Citigroup Credit Suisse Deutsche Bank JPMorgan Chase Morgan Stanley UBS 0% 5% 10% 15% 20% 25% Tier 1 Capital Ratio* HSBC Bank of America Barclays BNP Paribas Citigroup Credit Suisse Deutsche Bank JPMorgan Chase Morgan Stanley UBS 0% 5% 10% 15% 20% HSBC: Who We Are HSBC has traveled a long way since its beginning in 1865 – from a small local bank to a leader in global banking and finance with a strong presence in the United States. Today, we believe that being part of a global organization brings strengths that benefit our clients – combining the advantages of worldwide presence and scale with local knowledge and service. • HSBC North America Holdings is one of the largest bank holding companies in the United States. • HSBC was ranked as one of the world’s 50 safest banks for 2014 by Global Finance magazine. Banks were selected by Global Finance magazine based on an evaluation of long-term credit ratings and total assets of the 500 largest banks worldwide.* Who We Serve What We Offer • Global Banking and Markets • Financial Advisors – Wealth Management Structured Investments • High Net Worth Individuals/Family Offices • Equities • Bank Broker Dealers • Fixed Income • Institutional and Corporate Investors • Precious Metals • Commercial Banking • Retail Banking & Wealth Management • Global Private Banking * Ratings current as of August 14, 2014 ranked by Global Finance magazine. https://www.rabobank.com/en/images/Safest_banks_2014_sept2014.pdf HSBC in the United States HSBC Bank USA, N.A. As shown below in the organization chart highlighting key North American subsidiaries of HSBC Holdings plc HSBC USA Inc. and HSBC Bank USA, N.A. are both wholly owned Fast Facts subsidiaries of HSBC Holdings plc. Customers: HSBC USA Inc. is a U.S. bank holding company whose principal subsidiary is HSBC Bank 2.4 million USA N.A. HSBC Bank USA, N.A. is a federally chartered bank that is a member bank of the Federal Deposit Insurance Corporation (FDIC) and is regulated by the Office of the Comptroller of the Currency (OCC). Total Assets US $178.6 billion* The following entities are active issuers of debt in the U.S. markets: Bank Branches: • HSBC USA Inc. – in the form of SEC registered notes 240 throughout • HSBC Bank USA, N.A. – in the form of FDIC insured Certificates of Deposit the United States Prior to investing in any debt obligation issued by HSBC USA Inc. or HSBC Bank USA, Principal Office: N.A., you should carefully review the related disclosure document to understand the New York City risks related to the debt obligation and the specific issuer. This brochure discusses a number of different HSBC entities and you should fully inform yourself about the specific * Source: HSBC USA Inc. Annual HSBC issuer prior to making any investment in its debt obligations. HSBC Holdings plc, Report on Form 10-K as of 12/31/14 HSBC North America Holdings Inc. and other affiliated entities are not liable for any of the obligations of HSBC USA Inc. or HSBC Bank USA, N.A. HSBC Holdings plc HSBC North America Holdings Inc HSBC Finance Corporation HSBC USA Inc HSBC Markets (USA) Inc HSBC Bank USA, N.A. HSBC Securities (USA) Inc The organizational chart above is not a full representation of the ownership structure of HSBC Holdings plc. and is intended only to depict key North American subsidiaries of HSBC Holdings plc. This brochure is intended to provide a general overview of HSBC and does not provide the terms of any specific issuance of structured investments. Prior to any decision to invest in a specific structured investment, investors should carefully review the disclosure documents for such issuance which contains a detailed explanation of the terms of the issuance as well as the risks, tax treatment and other relevant information. HSBC Bank USA N.A. and HSBC USA Inc, are members of the HSBC Group. Any member of the HSBC Group may from time to time underwrite, make a market or otherwise buy and sell, as principal, structured investments, or together with their directors, officers and employers may have either long or short positions in the structured investments, or stocks, commodities or currencies to which the structured investments are linked, or may perform or seek to perform investment banking services for those linked assets mentioned herein. HSBC operates in various jurisdictions through its affiliates, including, but not limited to, HSBC Securities (USA) Inc., member of NYSE, FINRA and SIPC. © 2015 HSBC USA Inc. All rights reserved. 150522_5434.