ADJUSTED PROFIT BEFORE TAX IN 2020
COUNTRIES AND TERRITORIES
With assets of US$3 trillion and operations in 64 countries and territories, HSBC is one of the world’s largest banking and financial services organisations. We serve more than 40 million personal, wealth and corporate customers through three global businesses. And we have 194,000 shareholders in 130 countries and territories. We continue to maintain a strong capital, funding and liquidity position with a diversified business model.
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 communitiesNoel Quinn Group Chief Executive, HSBC
North America 11%
Middle East and North Africa 5%
Latin America 5%
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 three global businesses work together to meet customers’ needs, manage risk, and provide sustainable returns for our shareholders.
In the second quarter of 2020, we simplified our organisational structure by combining Global Private Banking and Retail Banking and Wealth Management to form Wealth and Personal Banking.
Commercial Banking $1.9bn
Corporate Centre $1.3bn
Global Banking & Markets $4.8bn
Wealth and Personal Banking $4.1bn
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 2020, HSBC held US$3 trillion in total assets – 10 per cent higher than at 31 December 2019 on a reported basis, and 7 per cent higher on an adjusted basis.
Over recent years we have taken an active approach to allocating Group capital into areas of higher growth and return, such as Asia.
Customer accounts grew in 2020, as corporate and personal customers consolidated their funds and redeployed them into cash, with growth in all global businesses. The growth reflected customers spending less during lockdown restrictions and the depositing of loans from government-backed schemes.
Loans and advances to customers reduced by US$25bn on a constant currency basis, despite mortgage growth in Wealth and Personal Banking.
|Customer accounts||Loans and advances to customers|
|31 Dec 2020||US$1,643 billion||US$1,038 billion|
|31 Dec 2019||US$1,439 billion||US$1,037 billion|
|31 Dec 2018||US$1,363 billion||US$982 billion|
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 2020 15.9%
31 Dec 2019 14.7%
31 Dec 2018 14.0%
Financial information last updated: 23 February 2021