Slides
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HSBC Holdings plc 3Q26 results Presentation to investors and analysts
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3 Q26 results Pam Kaur Group CFO
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2 Appendix 3Q26 results A simple, more agile and growing HSBC Targets unchanged – confidence in our ability to deliver against targets Guidance unchanged – on track to meet all guidance for 2026 Targets & guidance Revenue excl. notable items: +5% growth 3Q YoY PBT excl. notable items: +10% growth 3Q YoY Performance $1.9bn simplification saves actioned to date against our $2bn target Up to $1bn share buyback announced Discipline Unless otherwise stated, this presentation is presented on a constant currency basis. denotes a measure shown on a report ed FX basis. Unless otherwise stated, revenue and PBT are presented excluding notable items and on a constant currency basis, see slides 28 and 29 for reconciliation. In this presentation, % changes relating to ECL and costs in ( ) represent adverse movements. Figures throughout this presentation may be subject to rounding adjustments and may not sum precisely to totals given in charts, tables or commentary . E ffective from 1 Jan 2025, the Group's operating segments comprise four businesses, along with Corporate Centre. Segmental comparatives have been re - presented on this basis
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3 Appendix 3Q26 results Strong 3Q26 performance Income statement, $bn 3Q25 3Q26 Δ, $ Δ, % Revenue excl. notable items 17.9 18.7 0.8 5% PBT excl. notable items 9.1 10.0 0.9 10% Revenue 17.8 18.6 0.9 5% ECL (1.0) (0.8) 0.2 18% Costs (10.1) (8.8) 1.2 12% Associates 0.6 0.7 0.1 8% PBT 7.3 9.6 2.3 32% Key financial metrics 3Q25 3Q26 Δ EPS excl. material notable items § , $ 0.36 0.42 +$0.06 DPS, $ 0.10 0.10 — RoTE (YTD) ‡ , % 17.7 18.8 +1.1ppts TNAV per share ¶ , $ 9.22 9.41 +$0.19 Balance sheet 2Q26 3Q26 Δ, $ Δ, % Customer loans, $bn 1,023 1,030 7 1% Customer deposits, $bn 1,830 1,837 7 — CET1 ratio, % 14.1% 13.9% (0.2)ppts * Revenue and PBT exclude notable items, for a reconciliation see slides 28 and 29 † Growth of $105bn includes held - for - sale balances of $11bn for 3Q26 and $18bn for 3Q25, which are not included in the $1,837bn absolute value quoted ‡ Excluding notable items, annualised § Excluding material notable items and related impacts ¶ See 3Q26 Earnings Release page 39 for TNAV reconciliation Performance highlights Revenue* $18.7bn +5% YoY PBT* $10.0bn +10% YoY Deposits $1,837bn +$105bn YoY † RoTE ‡ 18.8% (YTD) 18.2% (3Q26)
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4 Appendix 3Q26 results Four high - returning businesses * See slide 29 for reconciliation of reported revenue to revenue excluding notable items † See 3Q26 Earnings Release pages 38 and 39 for reconciliation of RoTE to RoTE excl. notable items ‡ Corporate Centre YTD annualised RoTE excl. notable items is 4.6% All f our businesses growing deposits, all delivering 17% or better annualised RoTE 43.4% YTD annualised RoTE excl. notable items † , % 21.4% 18.1% 26.1% 557 | +52 Deposits (growth YoY) , $bn 349 | +9 647 | +42 283 | +9 3.9 4.1 3.2 3.4 6.9 7.6 4.0 3.8 3.9 4.1 3.2 3.4 6.9 7.6 4.0 3.8 (0.1) 3Q25 (0.2) 3Q26 HK UK CIB IWPB 17.9 18.7 +5% Revenue excl. notable items*, $bn Corporate Centre ‡
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5 Appendix 3Q26 results Banking NII: re - iterating FY26 guidance of at least $46bn 11.1 11.8 11.2 11.6 11.7 3Q25 4Q25 1Q26 2Q26 3Q26 QoQ: broadly stable, driven by: Balance sheet growth, offset by emerging customer and competitive pressure on deposits in Hong Kong and the UK $0.1bn day count $0.1bn higher structural hedge re - investment yields $(0.1)bn one - off items Continue to expect FY26 Banking NII of at least $46bn Banking NII, $bn The chart above is presented on a constant currency basis. See 3Q26 Earnings Release page 11 for Banking NII reconciliation
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6 Appendix 3Q26 results The world’s wholesale transaction bank 3Q25 4Q25 1Q26 2Q26 3Q26 FX Securities Services GPS (Payments) GTS (Trade) 2.6 2.6 3.1 3.0 2.9 +11% Fee and other income, $bn +5% GTS , continued growth in guarantees in Asia and the US +4% GPS , continued growth in payments volumes and increased card fees +3% Securities Services , new client mandates and higher market valuations, offset by strategic transactions +19% FX , strong client demand amid market volatility +5% +4% +3% +19% vs. 3Q25
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7 Appendix 3Q26 results Asia’s #1 Wealth Manager 3Q25 4Q25 1Q26 2Q26 3Q26 Investment Distribution Private Bank Insurance Asset Management 2.7 2.1 2.7 2.8 2.7 + 0% Group Wealth fee and other income, $bn vs. 3Q25 +0% (16)% +16% +7% +7% Investment Distribution , higher mutual funds and structured product sales, partly offset by equities (16)% Insurance , non - recurrence of one - off impacts in prior period and the adverse impact from strategic transactions, totalling c.$(0.2)bn +16% Private Bank , higher trading activities and growth in mandates +0% Asset Management , AUM growth, offset by margin compression driven by eMPF transition Further Wealth disclosures on slides 24 to 26
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8 Appendix 3Q26 results Credi t: maintaining FY26 ECL guidance of ~(45)bps $(0.8)bn 3Q26 ECL charge , driven by Stage 3 charges Continue to expect FY26 ECL charge* of ~(45)bps 3Q25 4Q25 1Q26 2Q26 3Q26 (1.0) (0.9) (1.3) (1.1) (0.8) (41)bps (36)bps (52)bps (41)bps (31)bps Annualised ECL charge as a % of gross loans and advances * * As a percentage of average gross loans and advances to customers, including held - for - sale loan balances ECL charge, $bn
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9 Appendix 3Q26 results Costs: +2% YoY target basis cost growth in 9M26 Target basis costs, $bn See slide 30 for target basis reconciliation, including baseline 3Q26: +1% YoY target basis cost growth 2026: continue to guide to ~1% cost growth on a target basis. Should strong business performance continue, may consider increasing variable pay which would increase costs modestly FY25 target cost baseline on updated FX: $(33.9)bn 9M25 +5% Inflation, investment & other (3)% Simplification savings 9M26 25.0 1.3 (0.8) 25.5 +2%
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10 Appendix 3Q26 results Customer deposits & loans: strong and growing deposit franchise, +$105bn YoY * 52 3Q25 HK 9 UK 42 CIB 9 IWPB 3Q26 1,725 † 1,837 +6% HK: across retail and wholesale, mainly time deposits UK: growing competition, particularly in retail CIB: expected outflows of short - term balances IWPB: India up $15bn, mainly FCNR deposits; Australia run - off $(3)bn Deposits, $bn +6% , +6% incl. held - for - sale balances* 2Q26 3 Q26 1,830 † 10 (24) 1,837 21 0 Loans, $bn 3Q25 14 HK 22 UK 25 CIB (9) IWPB 3Q26 977 † 1,030 +5% † 2Q26 3Q26 1,023 † (12) 4 1,030 7 7 HK: including higher retail lending UK: franchise growth, particularly commercial lending CIB: volume growth in Asia IWPB: FCNR lending of $14bn; Australia HFS $(26)bn * See slide 21 for held - for - sale balances relating to strategic transactions † Comparative periods included customer balances in CIB and IWPB relating to strategic transactions that have given rise to n et movements in HFS or have been exited, including by way of wind - down, and which may distort period - on - period comparisons. See footnote 1 on slide 35 for further details +5% , +8% incl. held - for - sale balances* QoQ: QoQ:
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11 Appendix 3Q26 results 90bps organic capital generation , deployed in line with our priorities: Dividend : ~(50)bps in 3Q26. $0.65 DPS generated in 9M26 (of which $0.30 announced to date)* Growth : ~(30)bps, RWAs largely driven by lending growth in UK, Asia, and model changes Announced up to $1bn buyback Outlook: 3Q26 share buyback: ~(10)bps in 4Q26 Operational risk RWA: ~(10)bps in 4Q26 Basel 3.1: expect positive impact of ~40 - 50bps on 1 Jan 2027 † Capital: strong organic capital generation during the quarter +0.9 Regulatory profits 2 Dividend 2Q26 buyback Strategic transactions Change in RWAs FX translation differences Other 14.1 (0.5) (0.1) 0.0 (0.3) (0.0) (0.2) (0.0) 13.9 FVOCI reserve 3Q26 2Q26 127.7 906.4 (0.1) CET1 RWA (1.0) (2.0) 7.6 ( 4.0 ) 17.4 CET1 ratio , % 1 128.1 922.4 (0.1) (1.3) * $0.35 accrued but not announced (equivalent to ~$6bn of CET1 capital), based on share count as at 30 September 2026 † We continue to assess the anticipated impact of the final Basel 3.1 standards on our capital. The final impact will depend on a number of factors, including model and data refinements, portfolio size and composition and supervisory permissions granted. Any related reductions to firm - specific capital requirements are not expected t o be significant CET1 and RWA, $bn (0.1)
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12 Appendix 3Q26 results Targets reiterated Our targets and expectations reflect our current outlook for the global macroeconomic environment and market - dependent factors, such as market - implied interest rates (as of mid - October 2026 ) and rates of foreign exchange, as well as customer behaviour and activity levels Rising to 5% YoY growth by 2028 , excluding notable items Revenue 17% or better , excluding notable items, each year RoTE 50% of EPS , excluding material notable items and related impacts Dividends 2026, 2027 and 2028 targets
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13 Appendix 3Q26 results Guidance ~1 % growth , on a target basis 3 Costs ~(45)bps , reflecting ongoing uncertainty 2 ECL charge 14 - 14.5% target range 4 CET1 ratio 2026 guidance At least $46bn 1 Banking NII Simplification $0. 5 bn revenue and cost synergies* Hang Seng privatisation ~$1.8bn costs to be re - allocated to priority growth areas 5 Including $0.3 bn Hang Seng cost synergies* Re - allocation ~$0.6bn restructuring costs 6 ~$2.0 bn savings from re - organisation to be actioned by YE26 Savings Our targets and expectations reflect our current outlook for the global macroeconomic environment and market - dependent factors, such as market - implied interest rates (as of mid - October 2026 ) and rates of foreign exchange, as well as customer behaviour and activity levels * Hang Seng privatisation related guidance to be achieved by YE28 $0.4bn potential further upside*
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Appendix
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15 Appendix 3Q26 results $bn Quarterly financial performance summary denotes a measure shown on a reported FX basis * Excluding material notable items and related impacts 3Q25 4Q25 1Q26 2Q26 vs. 3Q25 Income statement metrics: Revenue 17.8 16.4 18.5 19.1 18.6 0.9 5 % ECL (1.0) (0.9) (1.3) (1.1) (0.8) 0.2 18 % Costs (10.1) (9.3) (8.7) (8.7) (8.8) 1.2 12 % Associates 0.6 0.7 0.8 0.8 0.7 8 % Profit before tax 7.3 6.8 9.3 10.1 9.6 2.3 32 % Profit attributable to ordinary shareholders 4.9 4.7 6.9 7.7 7.1 2.2 45 % Memo items: — Banking NII 11.0 11.8 11.2 11.6 11.7 0.6 6 % — Fee and other income 6.8 6.0 7.8 7.4 7.0 0.2 3 % Profit before tax excluding notable items 9.1 8.6 10.0 10.3 10.0 0.9 10 % <blank> <blank> <blank> <blank> Earnings metrics: EPS, $ 0.28 0.28 0.41 0.45 0.41 EPS ex. material notable items, $ * 0.42 DPS, $ 0.10 0.45 0.10 0.10 0.10 $bn 3Q25 4Q25 1Q26 2Q26 3Q26 vs. 2Q26 Balance sheet metrics: Customer loans 977 983 1,003 1,023 1,030 7 1 % Customer deposits 1,725 1,774 1,783 1,830 1,837 6 — Reported RWAs 879 889 884 906 922 CET1 ratio, % 14.5 14.9 14.0 14.1 13.9 TNAV per share, $ $9.22 $9.64 $9.46 $9.36 $9.41 Revenue excluding notable items 17.9 17.7 19.0 19.0 18.7 0.8 5 % RoTE ex. notable items (annualised), % 16.6 15.9 18.7 19.5 18.2 <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> <blank> Centrally funded net trading assets 272 <blank> <blank> <blank> <blank> 0.36 0.37 0.44 0.45 1.6ppts 236 225 243 $0.13 $0.06 $0.05 — <blank> <blank> 0.1 3Q26 283 (0.2)ppts (11) (4)% 16 2 %
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16 Appendix 3Q26 results Structural hedge and impact of financial investments Structural hedge portfolio (illustrative) Around half of our structural hedge portfolio is deployed in securities, the mix of securities balances flexibility and capital volatility: HTC&S: flexibility to sell and adjust positioning as our outlook changes HTC: no impact on capital from fair value changes, with the intention of being held to maturity We hold bonds classified as HTC&S for both liquidity management and Banking NII stabilisation (structural hedge) In 3Q26, rises in interest rates drove $(2.6)bn of additional HTC&S pre - tax losses through OCI (0.2 ppts of CET1 † ); cumulative 9M26 pre - tax losses through OCI were $(3.9)bn (0.3ppts of CET1 † ) The Group continues to be positively exposed to interest rate increases via Banking NII (incremental $2.0bn over 12 months for a parallel shift of +100bps) ‡ Structural hedge Hold - to - collect - and - sell Hold - to - collect Fixed rate assets and assets where we apply hedge accounting* See 2Q26 Fixed Income presentation slide 42 for more information on our approach to structural hedge * Comprises a mix of assets with a fixed return such as loans or portfolios of floating rate assets on which we apply hedge accounting † Impact on CET1 % is based on post - tax losses , including the impact of FX ‡ As at 30 June 2026 (1.1) (2.4) (5.0) 4Q25 2Q26 3Q26 (2.6) HTC&S instruments FVOCI loss reserve, $bn
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17 Appendix 3Q26 results Banking NII drivers (1/2) One - year forward 1 , bps Five - year yield 3 , bps 373 392 245 394 446 273 423 430 259 509 497 335 USD GBP EUR 300 334 199 359 426 227 407 406 249 482 481 336 USD GBP EUR 31 December 2025 31 March 2026 30 June 2026 30 September 2026 Spot rate 2 , bps 308 224 294 301 HKD (1m HIBOR)
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18 Appendix 3Q26 results Banking NII drivers (2/2) Structural hedge reinvestment $bn Balance Average yield Notional balance 655 — 4Q26 ~20 ~2.8% — 2027 ~120 ~3.3% — 2028 ~110 ~3.6% Structural hedge balance, $bn $bn (100)bps down - shock +100bps up - shock USD (1.0) 0.7 HKD (0.3) 0.0 GBP (0.5) 0.4 EUR (0.0) 0.0 Other (1.1) 0.9 Total (3.0) 2.0 Banking NII – year 1 sensitivity to change in yield curves * The structural hedge is $655bn with an average life remaining around 3.2 years Maturing structural hedge assets are replaced at prevailing rates Time deposits as a % of Hong Kong customer deposits † 36 3Q25 36 4Q25 36 1Q26 36 2Q26 38 3Q26 * Assumptions include a static balance sheet, no management actions and a 50% pass - through – see 2026 Interim Report page 74 for further detail † Reflects the HKMA regulatory reporting basis (which may differ from our definition of ‘instant access/demand deposits’ as d isc losed), excluding wholesale money market deposits. Hong Kong represents the Hongkong and Shanghai Banking Corporation in Hong Kong (including Hang Seng Bank). Sensitivity calculation based on deposit b ala nces and the difference between the average rates paid on time deposits and CASA as at 30 September 2026. Actual Banking NII impact of migration will depend on rates paid and market conditions 529 593 637 655 4Q24 4Q25 2Q26 3Q26 As at 30 June 2026 A 1ppt shift from CASA to time deposits would result in an incremental annual interest expense of around $(0.2)bn, all else being equal
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19 Appendix 3Q26 results Exits: 15 exits announced since 2025; 9 completed to date Sri Lanka retail banking UK life insurance Germany custody business German fund administration Stake in Grupo Galicia French home and other loans Uruguay Bangladesh retail banking ECM and M&A in US, UK & Europe Bahrain retail banking 4Q25 Indonesia retail banking Malta Sri Lanka retail banking UK life insurance Germany custody business German fund administration Stake in Grupo Galicia French home and other loans Uruguay Bangladesh retail banking ECM and M&A in US, UK & Europe Bahrain retail banking 1Q26 Egypt retail banking Australia retail banking Singapore Insurance Indonesia retail banking Malta Sri Lanka retail banking UK life insurance Germany custody business German fund administration Stake in Grupo Galicia French home and other loans Uruguay Bangladesh retail banking ECM and M&A in US, UK & Europe Bahrain retail banking 2Q26 Egypt retail banking Australia retail banking Malta Indonesia retail banking Malta Sri Lanka retail banking UK life insurance Germany custody business German fund administration Singapore Insurance French home and other loans Uruguay Bangladesh retail banking ECM and M&A in US, UK & Europe Bahrain retail banking 3Q26 Stake in Grupo Galicia Exits announced Exits announced in the quarter* Exits announced in prior quarters since start of 2025 Completed Retail business and domestically - focused SME corporate banking operations in Türkiye are under strategic review * Includes exits announced up to the date of announcement of the earnings release
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20 Appendix 3Q26 results Strategic transactions: expected cost and revenue impact Cost reallo cation*, $bn 1.1 0.3 0.3 0.1 Hang Seng cost synergies Planning Under active execution Completed or announced $ 1.8 bn Cumulative revenue impact from completed or announced exits † , $bn $1.5bn Cumulative cost savings from completed or announced exits * , $bn * Based on 2025 costs. Cost reallocation target of $1.5bn (excluding $0.3bn Hang Seng Bank cost synergies) represents the dir ect and indirect costs of the disposal groups that will exit the Group as a result of the transactions † Based on contribution to 2025 Group revenue of completed or announced exits 2025 2026 2027 2028 2029 ~ 0.1 ~ 0.4 ~ 0.8 ~ 1.0 ~ 1.1 2026 2027 2028 ~ 0.7 ~ 1.6 ~ 2.2 ~50/50 Banking NII vs Fee and other income
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21 Appendix 3Q26 results Strategic transactions: held - for - sale balances Customer deposits Constant currency, $ bn 3Q25 2Q26 3Q26 Deposits 1,725 1,830 1,837 Held - for - sale deposits 18.2 18.0 11.1 — Indonesia retail banking — 1.9 2.0 — Malta — 7.1 7.3 — German custody business 11.9 7.5 1.9 — South Africa 2.2 — — — Uruguay 1.4 1.5 — — Other 2.7 — — Deposits incl. held - for - sale 1,743 1,848 1,848 Constant currency, $ bn 3Q25 2Q26 3Q26 Loans 977 1,023 1,030 Held - for - sale loans 3.0 5.3 29.0 — Australia home and personal loans — — 25.6 — Malta — 3.1 3.1 — Uruguay 1.2 1.4 — — Other 1.7 0.9 0.3 Loans incl. held - for - sale 980 1,02 9 1,059 Customer loans
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22 Appendix 3Q26 results Strategic transactions: material notable items (where disclosed) Timing South Africa $(0.1)bn FX recycling loss* — 4Q26 1 German fund administration Immaterial gain on disposal — 4Q26 Indonesia retail banking Up to $0.4bn gain on disposal — 1H27 Singapore Insurance $1.8bn gain on disposal — by 1H27 Egypt retail banking $0.3bn gain on disposal — 2H27 Germany custody business $0.1bn gain on disposal — by 2027 2 Hang Seng Bank privatisation $(0.6)bn restructuring costs — by YE28 3 Australia retail banking Immaterial loss on disposal † — by 1H27 ‡ $(0.3)bn restructuring costs § — 2026 - 2027 $(0.2)bn FX recycling loss* , ¶ — by 2028 Other impacts may be incurred in addition to those listed above (e.g. migration costs). Impacts are estimates as of 30 Septem ber 2026, which may change at completion. Details on this slide are included in the 3Q26 Earnings Release pages 13 and 14 * Recycling of foreign currency translation reserves and other reserves losses, no incremental impact on CET1 capital † On sale of home and personal loans portfolio, inclusive of costs and write - offs ‡ HFS losses recognised in 3Q26 § On wind - down of remaining retail business and transfer of CIB, Private Banking and Asset Management businesses to the Sydney br anch of The Hongkong and Shanghai Banking Corporation Limited ¶ Following portfolio disposal, wind - down and business transfer actions, including transfer of certain mortgage securitisation - r elated roles held by HSBC Australia
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23 Appendix 3Q26 results Continued momentum in HK customer acquisition, Wealth and Insurance flows Monthly customers acquired *, k 97 70 89 79 111 106 73 80 74 11 9 10 9 21 26 20 21 25 Jan Feb Mar Apr May Jun Jul Aug Sep * New - to - bank HSBC HK Retail Banking & Wealth customers (excluding PayMe - only customers) and Hang Seng customers † Wealth balances in Hong Kong business, excludes Private Bank, Asset Management and Insurance ‡ Total Hong Kong Insurance ANP, including both HSBC HK and Hang Seng HK Insurance Wealth balances † , $bn Insurance ANP ‡ , $bn 480 507 521 3Q25 2Q26 3Q26 1.4 1.6 1.4 1.4 1.6 1.4 3Q25 2Q26 3Q26 HSBC Hong Kong Hang Seng Bank
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24 Appendix 3Q26 results Wealth balances (1/2) Net new money, $bn Wealth balances, $bn 1,038 1,090 1,119 499 487 485 3Q25 2Q26 3Q26 1,537 1,577 1,604 Asia Rest of Group 11 22 38 3 1 3Q25 3 2Q26 3Q26 12 25 41 Asia Rest of Group
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25 Appendix 3Q26 results Wealth balances (2/2) Wealth balances evolution YoY, $bn Wealth balances evolution QoQ, $bn 75 56 3Q25 Net new mo ney (64) Market impact, FX and other * 3Q26 1,537 131 1,604 +$67bn Net new deposits Net new invested assets 17 2Q26 24 Net new money (14) Market impact, FX and other 3Q26 1,577 41 1,604 +$27bn Net new deposits Net new invested assets * Includes $22bn related to strategic transactions, including the reclassification as held for sale of Wealth balances associ ate d with the announced sales of HSBC Life Singapore, our Indonesian retail banking business and our business in Malta, deposit outflows following the announced exit from Australia, and foreign exchange impact s o n Wealth balances; also includes in 2Q26, cancellation of $25bn of unlisted shares in custody at 31 March 2026, where conversion occurred during the second quarter, noting post - conversion shares are subje ct to transfer restrictions.
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26 Appendix 3Q26 results Insurance CSM walk, $bn 5.0 3Q25 Group CSM New business CSM (1.8) Economic factors, assumptions & others † Group CSM before release (1.7) CSM release 3Q26 Group CSM 15.7 18.9 17.2 +10% Group CSM, $bn 15.7 17.2 17.2 3Q25 2Q26 3Q26 New business CSM CSM release 1.0 0.4 1. 8 * 1.0 0.5 0.5 Of which: Singapore Insurance 1.1 Group CSM includes Insurance manufacturing CSM and Bank distribution CSM. See 2026 Interim Report pages 32 and 33, and 2Q26 p res entation slide 35 for reconciliation of manufacturing CSM to Group CSM * Includes $0.5bn period specific impact from new third - party reinsurance contracts † Includes $(1.4)bn Singapore Insurance CSM re - classified to held - for - sale in 2Q26
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27 Appendix 3Q26 results Hong Kong commercial real estate Excluding exposure to Chinese mainland borrowers Modest increase in ECL allowances in 3Q26, reflecting continued pressure on property valuations Unsecured exposures are typically granted to strong, listed Hong Kong developers which are commonly members of conglomerate groups with diverse cashflows Largely stable, with limited Credit impaired levels and 87% rated Strong or Good $8.1bn rated Sub - standard or Credit impaired: $2.5bn Sub - standard (of which $0.1bn LTV >70%) $5.6bn Credit impaired (of which $2.3bn LTV >70%), against which we have an ECL allowance of $(1.2)bn FY25 1H26 9M26 Strong 3.3 3.5 4.7 Good 8.2 7.7 6.6 Satisfactory 10.4 9.7 9. 6 Sub - standard 2.4 2.5 2.5 — Of which: >70% LTV 0.0 0.1 0.1 Credit impaired 6.3 6.0 5.6 — Of which: >70% LTV 1.9 2.4 2.3 Total 30.6 29.3 28.9 Memo items: ECL charge (0.7) (0.2) (0.3) ECL allowance (1.1) (1.3) (1.4) — Of which: credit impaired (0.9) (1.1) (1.2) Average LTV sub - standard 42% 47% 46% Average LTV credit impaired 71% 82% 83% % portfolio secured* 57% 53% 54% Loans and advances to customers by credit quality, $bn LTV calculations based on data as of 31 August 2026, 30 June 2026 and 31 December 2025 * Based on total limits, including off balance sheet commitments, of $44.6bn (1H26: $44.5bn; FY25: $42.8bn)
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28 Appendix 3Q26 results Notable items $bn 3Q25 3Q26 Constant currency PBT 7.3 9.6 Less: notable items (1.8) (0.4) — Disposals, wind - down, acquisitions and related costs (0.3) (0.2) — Restructuring and other related costs (0.2) (0.1) — Legal provisions (1.4) — Constant currency PBT, excl. notable items 9.1 10.0
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29 Appendix 3Q26 results Revenue — supplementary information 3Q26 reported revenue to revenue excluding notable items $m HK UK CIB IWPB Corporate Centre Total Reported revenue 4,096 3,419 7,568 3,752 (215) 18,620 Less: Notable items — — 18 (57) (21) (60) Constant currency r evenue , excl. notable items 4,096 3,419 7,550 3,809 (194) 18,680 3Q25 reported revenue to revenue excluding notable items $m HK UK CIB IWPB Corporate Centre Total Reported revenue 3,879 3,227 6,928 3,823 (69) 17,788 Add: Currency translation (6) (11) (28) 45 (30) (30) Constant currency revenue 3,873 3,216 6,900 3,868 (99) 17,758 Less: Notable items — — (7) (111) 5 (113) Constant currency r evenue , excl. notable items 3,873 3,216 6,907 3,979 (104) 17,871
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30 Appendix 3Q26 results Costs — supplementary information $m FY25 9M25 9M26 3Q25 3Q26 Costs (36,848) (27,505) (26,248) (10,054) (8,822) Less: Notable items 2,968 2,553 776 1,691 329 Less: Impact of retranslating prior period results in hyperinflationary economies at constant currency (36) (28) — (10) — Target basis (33,916) (24,980) (25,472) (8,373) (8,493) Target basis costs reconciliation ~$2bn simplification savings from our re - organisation $bn FY25 To date 3Q26 Restructuring and other related costs (1.0) (1.6) (0.1) Annualised cost savings actioned 1.2 1.9 0.2 Cost savings realised in P&L 0.6 1.4 0.2
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31 Appendix 3Q26 results EPS excluding material notable items and related impacts Reported FX, $m 3Q25 4Q25 1Q26 2Q26 3Q26 Profit attributable to ordinary shareholders (PAOS) 4,873 4,719 6,938 7,688 7,090 Dilution and impairment losses of interest in associate (32) — — — — Legal provisions 1,100 10 — — — Impact of disposals, wind - downs, acquisitions and related costs 224 1,570 535 12 42 PAOS excluding material notable items and related impacts 6,165 6,299 7,473 7,700 7,132 Average basic number of ordinary shares, after deducting own shares held (m) 17,297 17,136 17,129 17,163 17,145 Basic EPS, $ 0.28 0.28 0.41 0.45 0.41 Basic EPS excluding material notable items and related impacts, $ 0.36 0.37 0.44 0.45 0.42
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32 Appendix 3Q26 results Reported FX Shareholders’ equity, $bn Tangible equity, $bn TNAV per share, $ Basic number of ordinary shares outstanding after deducting own shares held , millions At 30 June 2026 196.7 160.7 9.36 17,164 Profit attributable to: 7.6 7.8 0.45 — Ordinary shareholders 1 7.1 7.8 0.45 — Other equity holders 0.5 — — — Dividends (2.2) (1.7) (0.10) — On ordinary shares (1.7) (1.7) (0.10) — On other equity instruments (0.5) — — — FX 1 0.1 0.2 0.01 — Issuance/Redemption of securities (1.3) — — — Cancellation of shares/Buybacks (1.0) (1.0) (0.04) (42) Actuarial gains/(losses) on defined benefit plans 0.2 0.2 0.01 — Cash flow hedge reserves (2.6) (2.6) (0.15) — Fair value movements through ‘Other Comprehensive Income’ (1.8) (1.8) (0.10) — Of which: changes in fair value arising from changes in own credit risk 0.3 0.3 0.02 — Of which: debt and equity instruments at fair value through OCI (2.1) (2.1) (0.12) — Other 1 0.2 (0.8) (0.03) (11) At 30 September 2026 195.9 161.0 9.41 17,111 3Q26 vs. 2Q26 equity drivers Figures on this slide are subject to rounding adjustments and may not sum to totals . Individual components exclude FX which is shown separately
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33 Appendix 3Q26 results 57 Allowable NCI in CET1 CET1 before regulatory adjustments (38,809) Regulatory adjustments CET1 capital (7,722) Total ordinary shareholders’ equity Additional Tier 1 (22,407) Total shareholders’ equity Non - controlling interests (400) Total equity Adjustment of insurance / SPE’s 1,149 196,275 195,875 173,468 166,952 128,143 Foreseeable dividend Total shareholders’ equity to CET1 capital 3 Q26 total equity to CET1 capital (reported FX) , $m Total equity to CET1 capital walk (reported FX), $m Total equity (per balance sheet) Non - controlling interests Total shareholders’ equity Additional Tier 1 Total ordinary shareholders’ equity (’NAV’) Foreseeable dividend Adjustment for insurance / SPE’s Allowable NCI in CET1 Contingent purchase of own shares for employee benefit Prudential valuation adjustment Intangible assets Deferred tax asset deduction Cash flow hedge adjustment Excess of expected loss Own credit spread Defined benefit pension fund assets Direct and indirect holdings of CET1 instruments Other regulatory adjustments to CET1 capital Threshold deductions Regulatory adjustments CET1 capital 1Q26 197,270 (451) 196,819 (22,211) 174,608 (11,498) 1,004 52 — (1,588) (13,362) (2,980) 1,121 (3,214) 980 (6,155) (40) (23) (14,909) (40,170) 123,996 CET1 before regulatory adjustments 164,166 2Q26 197,081 (399) 196,682 (23,708) 172,974 (5,850) 1,068 41 (275) 167,958 (1,546) (13,377) (2,747) 786 (2,892) 1,436 (6,271) (40) (22) (15,593) (40,266) 127,692 3Q26 196,275 (400) 195,875 (22,407) 173,468 (7,722) 1,149 57 — 166,952 (1,695) (13,347) (2,419) 3,320 (3,109) 1,128 (6,391) (40) (30) (16,226) (38,809) 128,143
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34 Appendix 3Q26 results Glossary ANP Annualised new business premiums AUM Assets under management Banking NII Banking net interest income is an alternative performance measure, and is defined as Group net interest income after deducting: (1) the internal cost to fund trading and fair value net assets for which associated revenue is reported in ‘Net income from financial instruments held for trading or managed on a fair value basis’, also referred to as ‘trading and fair value income’. These funding costs reflect proxy overnight or term interest rates as applied by internal funds transfer pricing; (2) the funding cost of foreign exchange swaps in Markets Treasury, where an offsetting income or loss is recorded in trading and fair value income. These instruments are used to manage foreign currency deployment and funding in our entities; (3) third - party net interest income in our insurance business Bps Basis points. One basis point is equal to one - hundredth of a percentage point CASA Current account and savings account CET1 Common Equity Tier 1 CIB Corporate and Institutional Banking Corporate Centre (CC) Corporate Centre primarily comprises the financial impact of certain acquisitions and disposals, and the share of profit, dilution and impairment loss impacts from interests in our associates and joint ventures. It also includes Central Treasury, stewardship costs and consolidation adjustments CRE Commercial Real Estate CSM / CSM balance Contractual Service Margin, a component of the carrying amount of a group of insurance contract assets or liabilities which represents the unearned profit which the Group will recognise as it provides insurance contract services under the insurance contracts in the Group CSM release The systematic recognition of the unearned profit of insurance contracts in revenue over the period that services are provided DPS Dividend per share ECL Expected credit losses. In the income statement, ECL is recorded as a change in expected credit losses and other credit impairment charges. In the balance sheet, ECL is recorded as an allowance for financial instruments to which only the impairment requirements in IFRS 9 are applied ECM Equity Capital Markets eMPF Mandatory Provident Fund is a compulsory pension fund in Hong Kong. eMPF is a digital MPF scheme administration platform EPS Earnings per share FCNR Foreign Currency Non - Resident Deposit scheme in India FVOCI Fair value through other comprehensive income FX Foreign Exchange GPS Global Payments Solutions Group HSBC Holdings plc and its subsidiary undertakings GTS Global Trade Solutions HFS Held - for - sale HIBOR Hong Kong Inter - bank Offered Rate HTC Hold - to - collect HTC&S Hold - to - collect - and - sel l IFRS International Financial Reporting Standard IWPB International Wealth and Premier Banking LTV Loan - to - value Markets Treasury Execution arm of HSBC's Treasury function, responsible for cash and liquidity management, funding, and management of structural interest rate risk of the Group M&A Mergers and acquisitions NCI Non - controlling interests New business CSM Insurance new business contractual service margin OCI Other comprehensive income PAOS Profit attributable to ordinary shareholders PBT Profit before tax Ppt Percentage points Return on tangible equity / RoTE Return on average tangible equity RWA Risk - weighted asset SME Small and medium - sized enterprise SPE Special purpose entity TNAV Tangible net asset value Wholesale Transaction Banking Comprises the following products in our CIB, Hong Kong and UK businesses: Global Trade Solutions, Global Payments Solutions, Global Foreign Exchange and Securities Services
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35 Appendix 3Q26 results Footnotes 3Q26 results Slide 10: Customer deposits and loans 1. The below table provides the period - on - period net impacts on customer lending and customer accounts from balances that have been transferr ed to and from HFS as at 3Q26 * Includes custody balances in CIB where clients have not consented to transfer to the buyer, and in IWPB balances related to th e wind - down of our retail banking business in Australia Slide 11: Capital 1. Ratio movements include the impact of threshold deductions 2. Regulatory profits exclude the impact of strategic initiatives Slide 13: Guidance 1. Based on our current expectations for policy rates 2. As a percentage of average gross loans and advances to customers, including held - for - sale loan balances. Our medium - term plannin g range is (30) to (40)bps 3. Our target basis costs exclude notable items and includes the impact of simplification - related saves associated with our announc ed reorganisation 4. Over the medium term 5. In the medium term which is defined as 3 - 5 years from 1 January 2026 or when target was announced 6. ~$0.6bn restructuring cost, of which one - off P&L impacts will be a material notable item
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36 Appendix 3Q26 results Footnotes Appendix Slide 17: Banking NII drivers (1/2) 1. Rates used are US 1Y implied, UK 1Y implied, ECB 1Y implied (source: Bloomberg) 2. Rate used is 1m HIBOR (source: Bloomberg) 3. Rates used are US 5Y yield, UK 5Y yield and German Bund 5Y yield (source: Bloomberg) Slide 22: Strategic transactions material notable items 1. South Africa: transaction completed in 1Q26, upon subsequent substantive wind - down of the entity, expected in 4Q26, cumulative foreign currency translati on reserves and other reserves will recycle to the income statement 2. Germany custody business: the sale will be completed in a phased manner, with a number of phases completed during 2026. Completion of the transaction depends on the timing for completion of all client transfers 3. Of which one - off income statement impacts would be recognised as material notable item Slide 32: 3Q26 vs. 2Q26 equity drivers 1. Differences between shareholders’ equity and tangible equity drivers primarily reflect goodwill and other intangible impairme nt and amortisation expense within ‘Profit Attributable to Ordinary shareholders’, FX on goodwill and intangibles within ‘FX’, and intangible additions and other movements within ‘Othe r’
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37 Appendix 3Q26 results Disclaimer Important notice The information, statements and opinions set out in this presentation and accompanying discussion (this “Presentation”) are f or informational and reference purposes only and do not constitute a public offer for the purposes of any applicable law or an offer to sell or solicitation of any offer to purchase any securities or other financial instruments or any advice or reco mme ndation in respect of such securities or other financial instruments. This Presentation, which does not purport to be comprehensive nor render any form of legal, tax, investment, accounting, fina nci al or other advice, has been provided by HSBC Holdings plc (together with its consolidated subsidiaries, the “Group”) and has not been independently verified by any person. You should consult your own advisers as to legal, tax, investment, acc oun ting, financial or other related matters concerning any investment in any securities. 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Forward - looking statements This Presentation may contain projections, estimates, forecasts, ambitions, targets, commitments, opinions, prospects, result s, returns and forward - looking statements with respect to the financial condition, results of operations, capital position, environmental, social and governance (‘ESG’) - related matters, strategy and business of the Group which can be identified by the use of forward - looking terminology such as “may”, “will”, “should”, “expect”, “anticipate”, “project”, “plan”, “estimate”, “seek”, “intend”, “target”, “believe”, “potential” and “reasonably possible” or the negatives thereof or other va ria tions thereon or comparable terminology (together, “forward - looking statements”), including the strategic priorities and any financial, investment and capital targets and any ESG ambitions, targets and commitments described herein. Any such forwa rd - looking statements are not a reliable indicator of future performance, as they may involve significant stated or implied assumptions and subjective judgements which may or may not prove to be correct. There can be no assurance that any of th e matters set out in forward - looking statements are attainable, will actually occur or will be realised or are complete or accurate. The assumptions and judgments may prove to be incorrect and involve known and unknown risks, uncertainties, cont ing encies and other important factors, many of which are outside the control of the Group. Actual achievements, results, performance or other future events or conditions may differ materially from those stated, implied and/or reflected i n a ny forward - looking statements due to a variety of risks, uncertainties and other factors (including, without limitation, those which are referable to general market or economic conditions, regulatory and government policy changes, continued volatility in trade and tariff policies, changes and volatility in foreign exchange rates, interest rates and inflation levels and other macroeconomic risks, geopolitical tensions such as the Russia - Ukraine war (including hybrid attacks across Europe attributed to Russia), the conflict in the Middle East, or any potential military action or conflict elsewhere, specific economic developments, such as the uncertain performance of the commercial real estate sector and the residential property sector in t he Chinese mainland and Hong Kong, the efficacy of the Group’s actions in managing and mitigating ESG - related risks, and in progressing towards the Group’s ESG ambitions, targets and commitments, technology and cybersecurity risks (including ris ks relating to the development, deployment and use of artificial intelligence), sanctions compliance risks, and regulatory enforcement actions. Any such forward - looking statements are based on the beliefs, expectations and opinions of the G roup at the date the statements are made, and the Group does not assume, and hereby disclaims, any obligation or duty to update, revise or supplement them if circumstances or management’s beliefs, expectations or opinions should change. F or these reasons, recipients should not place reliance on, and are cautioned about relying on, any forward - looking statements. No representations or warranties, expressed or implied, are given by or on behalf of the Group as to the achievem ent or reasonableness of any projections, estimates, forecasts, ambitions, targets, commitments, prospects or returns contained herein. Additional detailed information concerning important factors, including but not limited to ESG - related factors, that could cause actual results to differ materially from this Presentation is available in our Annual Report and Accounts for the fiscal year ended 31 December 2025, filed with the Securities and Exchange Commission (the “SEC”) on Form 20 - F on 26 February 2026 (the “202 5 Form 20 - F”), our 1Q 2026 Earnings Release, furnished to the SEC on Form 6 - K on 5 May 2026 (the “1Q 2026 Earnings Release”), our Interim Report for the six months ended 30 June 2026, furnished to the SEC on Form 6 - K on 4 August 2026 (the “2026 Interim Report”), and our 3Q 2026 Earnings Release, which we expect to furnish to the SEC on Form 6 - K on or around 27 October 2026 (the “3Q 2026 Earnings Release”). This Presentation contains a number of images, graphics, text boxes, credentials and illustrative case studies which aim to g ive a high - level overview of certain elements of our disclosures and to improve accessibility for readers. These images, graphics, text boxes, credentials and illustrative case studies are designed to be read within the context of this Presentati on as a whole. Alternative Performance Measures This Presentation contains non - IFRS measures used by management internally that constitute alternative performance measures unde r European Securities and Markets Authority guidance and non - GAAP financial measures defined in and presented in accordance with SEC rules and regulations (“Alternative Performance Measures”). The primary Alternative Performance Measur es we use are presented on a “constant currency” basis which is computed by adjusting comparative period reported results for the effects of foreign currency translation differences, which distort period - on - period comparisons. Reconciliations between Alternative Performance Measures and the most directly comparable measures under IFRS are provided in th e 2025 Form 20 - F, 1Q 2026 Earnings Release, 2026 Interim Report and 3Q 2026 Earnings Release, when furnished to the SEC, each of which is available at www.hsbc.com. Information in this Presentation was prepared as at 27 October 2026.