HSBC Holdings plc Initial view from seminars; Well positioned to capitalise on structural Asia trends

Research evidence excerpt

HSBC Holdings plc Initial view from seminars; Well positioned to capitalise on structural Asia trends

oundation of the Group’s Wealth business model. lincoln.yu@jpmorgan.com

• Asia Wealth as a structural growth driver: HSBC is Asia's #1 Wealth J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

Manager with $1,055bn in wealth balances (vs closest peer at $795bn). The

Group is well placed to capture the structural growth opportunity with 1) Specialist Sales contact details:

continued strong customer acquisition (62% FY23-25 CAGR in new-to-bank Gigi Sparling - Specialist Sales -

retail customers to 1.3mn in FY25) in a large untapped market (73mn Chinese European Financials

Mainland individuals with offshore wealth needs in FY25) and leveraging its (44-20) 7134-0355

multi-market presence across 8 offshore wealth centres, and 2) deepening ghislaine.sparling@jpmorgan.com

wealth penetration with only c35% of Premier customers holding a wealth Quarterly Forecasts (FYE Dec)

product with HSBC, including only c50% penetration in HSBC Hong Kong Adj. EPS ($)

and 33% penetration in the International Wealth & PB division. At present, the 2025A 2026E 2027E

Q1 0.41 0.44A

Group has 5m Premier accounts including 1.4m in HK and 1.2m in the UK. Q2 0.40 0.45

• International Wealth and PB (IWPB) is strategically focused on Affluent, Q3 0.39 0.43 Q4 0.37 0.38

HNW and Wealth, with limited non-affluent client acquisitions and a strategy FY 1.55 1.70 1.83

to exit monoline retail product sales. The number of IWPB markets has also

reduced to 26 (vs 37 FY20). Within the PB, there is a focus on accelerating Style Exposure

in-house referrals from wholesale clients (which represented c30% of NNM

and lending flows in FY25, potential conversion of a wholesale client base of