Progress on our strategic priorities

In our June 2018 Strategy Update, we outlined eight strategic priorities to deliver growth, improve returns, empower our people, and enhance our customer experience.

Each priority has a target or set of outcomes that we aim to achieve by 2020. The following table shows the summary of progress and key highlights given in our Interim Report 2019 (PDF 5MB), published in August 2019.

Summary of progress on our strategic priorities

Strategic priority Targets by end of 2020 Performance for 1H19
(versus 1H18 unless otherwise noted)
1. Accelerate growth from our Asia franchise; be the leading bank to support the China-led Belt and Road Initiative and the transition to a low-carbon economy High single-digit revenue growth each year from our Asia franchise

Market share gains in eight scale markets(1)

Number 1 international bank for the Belt and Road Initiative

Provide USD100bn in sustainable financing and investment by 2025
Asia adjusted revenue up 9 per cent, Wealth in Asia(2) adjusted revenue up 7 per cent

In five out of eight scale markets we gained market shares in loans and/or deposits versus 2017(3)

Sustainable financing and investment: USD36.7 billion (cumulative), up USD8.2 billion in 1H19
2. Complete the establishment of UK ring-fenced bank and grow market share Market share gains 6.7 per cent mortgage market share in May 2019 (up 0.6 percentage points versus 2017)
3. Gain market share and deliver growth from our international network Mid to high single-digit revenue growth each year from our international network(4)

Market share gains in transaction banking(5)
International client revenue up 2 per cent

Transaction banking revenue up 6 per cent

Market share gains in GTRF and GLCM (1Q19 versus 2017)
4. Turn around our US business US return on tangible equity of more than 6 per cent US return on tangible equity: 2.5 per cent annualised (down 0.2 percentage points versus 2018)
5. Improve capital efficiency Increase in asset productivity Reported revenue/average RWA: 6.8 per cent, up 48 basis points versus 1H18
6. Create capacity for increasing investments in growth and technology through efficiency gains Positive adjusted jaws on an annual basis each financial year Adjusted jaws: positive 4.5 per cent (adjusted revenue up 8 per cent, adjusted costs up 3.5 per cent)
7. Enhance customer-centricity and customer service Improve customer satisfaction in eight scale markets(1) Six out of eight RBWM markets(6) had top three rank and/or improved by two ranks: Hong Kong, Pearl River Delta, Singapore, Mexico, UAE, Saudi Arabia(7)

Five out of eight CMB markets(8) had top three rank and/or improved by two ranks: UK, Pearl River Delta, Singapore, Malaysia, Saudi Arabia(7)
8. Simplify the organisation and invest in future skills Improved employee engagement

ESG rating: ‘outperformer’(9)
Employee engagement: 66 per cent (unchanged versus 4Q18)

ESG rating: ‘average performer’(10)

  1. Our eight scale markets are the UK, Hong Kong, Pearl River Delta (PRD), Singapore, Malaysia, Mexico, the UAE and Saudi Arabia
  2. Our wealth business in Asia includes our asset management business in Asia, our insurance business in Asia, our private banking business in Asia and the wealth portion of our RBWM business in Asia. Wealth in Asia adjusted revenue, excluding market impacts in Insurance, declined 1 per cent. Market impact in Insurance constitutes profit and loss impacts resulting from changes in financial market factors
  3. Market shares for Hong Kong, the UK, Mexico, the Pearl River Delta, Singapore and Malaysia as of May 2019; Saudi Arabia as of April 2019; and UAE as of March 2019
  4. International network revenue includes transaction banking and international client revenue
  5. Transaction banking includes GLCM, GTRF, Securities Services and FX
  6. Customer recommendation provided by Kantar; Saudi Arabia is as of 1Q19; all markets compared with 2017
  7. Engagement in Saudi Arabia primarily through investment in The Saudi British Bank (‘SAAB’), held as associate of HSBC
  8. Customer satisfaction provided by RFi Group for Hong Kong, the Pearl River Delta, Singapore, Malaysia, Mexico and UAE; UK provided by Charterhouse Research; Saudi Arabia provided by Kantar; UK is as of 1Q19, Mexico is as of 2018, Saudi Arabia is as of 1Q19; Saudi Arabia compared with 2018, all other markets compared with 2017
  9. ESG rating by Sustainalytics; new ratings methodology will replace its old methodology
  10. ‘Average performer’ rating does not take into account the ESG Update published in April 2019

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