HSBC Holdings plc ($HSBA)

Good morning, everyone. Thank you very much, Peter, for this introduction and for hosting us today, and welcome, everyone, to One QRC, One Queen Road Central to the bank that's known as the Hong Kong Bank. We -- all of you have seen this iconic building. We celebrated 40 years, was it 2 months ago. We had Lloyd Foster, Norman Foster with us for the celebration. It was one of the highlights of his career, probably one of the starters of his career. Actually, what you've also seen in the video, some of you know, 161 years ago in exactly that same spot, we set up the Hong Kong and Shanghai Banking Corporation. In March in Hong Kong, a few weeks later in Shanghai, within 10 years in most of Asia. Within a year, we were already in Osaka and Kobe. We were within a few years in, well, Vietnam, Malaysia, Thailand or [indiscernible] China or Malayia or the [indiscernible], et cetera, et cetera. But I think what's important when you look at that history is that, number one, we were set up by our customers. We were set up by those merchants, those entrepreneurs, those shipping companies who needed a bank that served their needs. They needed a bank that has their trust and they needed a bank that was focused on delivering what they needed and what their ambitions are. They need a bank that is relationship driven. They also needed a bank that allowed them to grow and grow with them. And this is why we ended up setting shop in so many geographies across Asia and the rest of the world. Of course, London a year after we opened Hong Kong. But in France, we opened in Lyon because that was the capital of France, not in Paris. And in the U.S., 10 years on, we opened in San Francisco because that was the port city. They needed a trade bank. And they also wanted a bank that called Hong Kong home because they collectively called Hong Kong home, however much their business was international and trading related. And finally, many international banks have heard about this need and felt that they want to sail and come to Hong Kong and set up shop. They need a bank to set up quickly before any of these internationals come and try to build something. The first ship was due in a week coming from India with bankers. So they had 5 days to build the bank. And in 5 days, all the articles of association and the licenses were there. That was a bank that was agile, delivering to our customers fast for our customers. If you look at our ambition today and our 3 priorities. Our ambition is to be the -- one more slide, -- to be the most trusted bank globally, putting customers at the heart of everything we do. Our 3 strategic priorities is to be simple and agile, and that's in order to be responsive to a fast-changing world to be able to adapt and to be able to help our customers adapt and move at their speed. Second priority, driving customer centricity. We are a relationship-driven bank. This is how we were built. This is our DNA. We're not a product-push bank. We're a bank that delivers to customers' needs, customers' goals and the evolving needs and the future needs and goals. Number three, we deliver focused, sustainable growth, focused on where we're best at serving our customers and sustainable because they are growing year after year after year, and we want to grow with them year after year after year. They need to count on us today. They need to know that we are here for them in 10 years' time, 20 years' time and longer. Never had our ambition and our 3 strategic priorities been so aligned to our DNA, but equally never had our ambition and 3 strategic priorities been so well positioning us for the world of the future, for the uncertainties that we're facing for the innovation that is coming. These are our basic DNA that are helping us position very well for the future. So we set up 4 businesses. The first thing we did about 20 months ago is, well, set on the course to be simple and agile. I have to say sometimes in our history, we didn't live up to the DNA, and we became somewhat complex, and we're reversing that journey very fast. So we set 5 strategic missions to be simple and agile so that we can be responsive to a developing market and moving at the pace and the speed that our customers need us to move at. First thing we did is we reorganized our structure to align it to our strategy. And I'm pleased to say we have called Hong Kong a home market. We also have U.K. as a home market. These are 2 home market businesses we have a leading position. We also have 2 network businesses, corporate and institutional banking, supporting our wholesale customers, global aspirations, the World's Trade Bank, but also wealth and Premier Banking, supporting our customers manage their personal finances, trusting us with their hard-earned savings, trusting us as the custodian of their savings and the manager of their savings. Second, after we set up the structure with these 4 businesses, we set up a leadership structure to be able to deal with it by deduplicating certain areas where we were too over matrixed. So now at the group operating committee that is dropped from 18 to 12 members, 60% of the revenue has single line of accountability at my group operating committee and therefore, fully empowered line of accountability. Importantly, 15% of our managing directors, we were able to reduce. That's about 300 MDs without impacting the business. These were roles that were duplicated due to the previous setup. That's done. Number three, we promised you $1.5 billion of simplification saves to be taken to the bottom line. That's about 8% of the payroll cost. We have already decisioned -- we promised you that by the end of '26, a 2-year journey. By the half year results, we will have delivered it 6 months ahead of time in 18 months. We already, as of today, have actioned $1.4 billion of the $1.5 billion savings that we committed. Last year, in our P&L, we managed to get $600 million of those saves. That equated to about 4,400 full-time employees. By the half year, we will update you about the closing of this program of $1.5 billion full saves annualized. And the impact in terms of how much reduction of employees. I have to say this is non-impacting of revenue. These are simplification that's driving through the organization from the setup in the business setup and the leadership setup. And that will be driven through. And at the half year, the ahead will turn into done on this slide. Okay. Number four, $1.8 billion of cost reallocation. This is where we decided to review our participation choices and to review those areas that are not strategic, where we don't matter for our customers to do them and then we shed them. And then we focus, we reinvest those costs taken out. We reinvest them in those activities where we matter for our customers, where we drive growth, where we drive returns and where we have competitive advantages. We've already decisioned 12 exits, $0.8 billion worth of those costs, associated revenue about EUR 1 billion. And we have under active execution, including some of the 3 strategic reviews that we called out, $0.5 billion. I'm expecting on that first chunk of EUR 1.5 billion by the end of the year to be vastly delivered, broadly substantially delivered. Now mind that the cost saves will only happen after the exit is complete. So the decisions, the signing of some of these M&As will take us 12 months before the actual saves come and that we can redeploy it. You have to assume that redeployment will deliver higher revenue and higher returns than the revenue that's taken out because we're reinvesting it in those areas of higher growth potential and higher returns. And there's a $0.3 billion additional coming from the privatization of Hang Seng, which we discussed at length at previous results. These are the reported basis cost takeout. Our ambition is to deliver more than that in terms of cost takeout, more like EUR 0.5 billion. But from an M&A reporting standards, EUR $0.3 billion was the number that is auditable, and we're expecting to deliver those by the end of '28, okay? And that will be substantially moving forward. The final point, number five is really where you're going to hear me talk about for the next few years because that's going to be a multiyear journey. This is really an upgrading of our operating model. This is HSBC reengineering itself, rewiring itself to be simpler, to be agile and to be able to deliver fast. Two big work streams under this category. The first one is a demise work stream. We're killing nonstrategic or legacy applications called out here, and we're tracking this. But we're also killing legacy products and all the processes and procedures linked to legacy products. We're killing spreadsheets, EUCs that are not needed. We're killing URLs, we're killing cost centers, and we're streamlining by taking down all of those. We'll be talking about that in the coming quarters. The second work stream under this is we are simplifying policies process procedure, automating and embedding controls in an automated way. We have more than 50 of those process procedures that are in the process of being simplified. Now how we're going to go about that? That's probably one of the challenges we're going to face. Well, if I was here in 2020 talking about this, I will be telling you that we're going to put dozens and dozens of Six Sigma process engineers giving them a process, giving them weeks and weeks to be able to review it and redesign it, reengineer it and then another weeks and weeks and weeks to develop a new one. Fortunately, I'm doing this in 2026, 2025 started, and we have generative AI. And generative AI is going to be a material accelerator of these initiatives. So I'm going to take a minute to talk -- 2 minutes, talk about generative AI. So we set the vision and we set 3 goals. I'm going to read the vision. Vision is to empower our colleagues to use AI in order to create personalized experience for each customer or client to deliver it safely in real time and at scale, while we keep human judgment, human decision-making and human accountability at the core. So let me unpack. First, empower our colleagues. Our -- we have 200,000 colleagues. we all know generative AI will destroy certain jobs and will create new jobs. But my initial mission is I need 200,000 colleagues with us on this journey. However, many will be left at the end of the journey isn't the problem. The problem is how can we make sure that those 20 200,000 colleagues have been given all the capabilities, the training, the tools to make themselves future-ready, be more productive versions of themselves. Importantly, how can they be on the journey with us, not fighting us, not disentfranchised, not anxious, overwhelmed and resisting the change. That's our first mission. Everyone will be given training capabilities, productivity tools, specialized tools, coding assistance so that they can become a better, more productive, higher-performing version of themselves. It's on them to use these tools and be future ready. It's on us to make sure that they're all given these opportunities to come along the journey with us. Number two, simplify -- goal number two, simplify and scale how we operate. This is what I was just mentioning earlier, the more than 50 work streams that we're simplifying. We appointed already a Chief AI Officer. He already delivered end-to-end, the KYC onboarding process for corporate institutional banking with material productivity saves and time save. And now we've given him oversight across the bank, all our value streams, businesses and functions, technology and operations to help us redesign, collectively redesign with the help of AI, with the help of external partners, all these processes, more than 50 of those mission, achieve real time or near real time. It's a moonshot. But imagine we're onboarding in real time, credit card application approval in real time, wholesale revolving credit facility approval in real time, capital allocation in real time. That's the moonshot. So we're bringing time down materially, but the idea is if you're fully automated, your customer life cycle should come to nill. Third, we want to personalize experience for customers at scale. And this is where it's not anymore about productivity or cost gains. It's going to be about acquisition of more customers and more revenue. So there is a customer -- there's a revenue element, there's a new customer element in this third goal, which is the personalization of experience. We are putting these tools in the hand of all our frontline colleagues today. They will be using them, be it relationship managers, wealth advisers, contact center operators, salespeople, et cetera. But in the future, if these tools have proven their worth and we train them well and then we control them well, we can put them in the hand of our customers. There are a number of initiatives that we called out. You can see the next slide will show 2 initiatives in terms of simplification, the KYC one as well as the financial crime risk monitoring. Just to give you an idea, KYC, we achieved 55% productivity, 50% reduction in client onboarding time. Of course, the moonshot is 100% reduction, but that's a fantastic journey so far. Financial crime risk monitoring, we are 4x better at detecting financial crime. We're twice faster in the investigation, and we have 70% fewer false positives. You can see the benefits. They're already live. We're using them. They're already delivering the productivity gains that we see. On the right side of the slide, you will see how we're hyper-personalizing customer experiences. I won't go through those details, but that's the contact center example and the wealth AI example where we're personalizing the experience. Okay. Now I'm moving on to the third strategic priority, which is focused sustainable growth. As you can see in our 4 businesses, Hong Kong business, U.K. business, International Wealth and Premier Banking as well as Corporate and Institutional Banking. We have multiple growth drivers. We have a good track record of growth. You can see '24 to '25. You can see our deliveries in '26. And importantly, you can see that our return on tangible equity for the first quarter in '26 is above 17% for each of those businesses. In '25, it was above mid-teens for each of those businesses. Let me unpack one by one. Let's start with the Hong Kong business. So Hong Kong, we're the Hong Kong bank. But Hong Kong, as you heard from Peter, is a super connector to the Mainland. It's a super connector for the Mainland companies who want to go international, they come to Hong Kong as a launch pad to go international. But it's also set to become the largest cross-border wealth hub before the end of this decade, superseding Switzerland. A lot of it is coming from China or from Asia in general or international. That is the opportunity. So we doubled down on it. We took Hang Seng private. And we thought with the 2 banks and the 2 brands of HSBC and Hang Seng, we should be able to get maximum opportunity from these underlying growth -- structural growth drivers. If you look at our position in Hong Kong, with a deposit base of $619 billion, we're practically twice the second largest peer. We're coming from a position of material substantial leadership. But we are investing fast and hard because that opportunity is massive. We onboarded 1.2 million new personal banking customers in Hong Kong 2025 alone. We onboarded 800,000 in '24. We could onboard 1 million customers per annum for the next 20 years if you assume, among other that the China -- Mainland Chinese middle class looking for international investment aspirations for their savings, is going to choose Hong Kong as their financial center. We need to be geared up for that. Between Hang Seng Bank and HSBC, we have 10 million customers. About 15%, 20% are nonresident. Still, that leaves us with more customers than there are people, including toddlers in Hong Kong. That's because many of them are customers of both brands. They love the 2 propositions, differentiated, but they like both. We're building and strengthening our market share. We're acquiring new customers at pace, and we're building wealth capabilities here to support the growth of Hong Kong and to support this launch pad to -- from China to the world. Second business to call out, Asia wealth opportunity. Our wealth business is essentially driven by Asia. It's 2/3 of our wealth business. Wealth in Asia is set to grow 7% CAGR for the next 5 years, one of the fastest-growing wealth opportunities on the planet. Our brands, our heritage, our position in all these Asian markets, as Peter was saying, more than 150 years for most of these markets. our deep connections with these markets, our capability to onboard from the new emerging affluent all the way to the affluent, all the way to the high net worth following their personal journeys, our capability to onboard from our corporate institutional banking, the founders, the entrepreneurs, the C-suite coming over and helping them with their wealth are all channels where we can be a leader for growing this business. Not only do we want their deposits, but we also want to convert them to invest with us. We still have 65% of our premier customers who still don't have wealth products with us. You can imagine how seamless it should be for us building product capabilities and converting these deposit customers to become also investment customers with us. And we have multiple booking centers. One of the biggest wealth drivers today is how our customers can use a diversified booking center structure for their wealth management globally. We have 8 booking centers globally that we can offer them. That is a unique position. Now Wealth already is 25% of group revenues between fees and NII from deposits. Wealth is already 25% of the $70-plus billion of group revenue. And in Asia, in wealth balance terms, we're already the leader with more than $1 trillion of wealth balances. And we're a leader with some margin to the next one, the Swiss, and we keep investing to grow even faster. Third business, CIB. I want to call out 2 features driving growth in CIB. The first one is Asia buys Asia. We coined this term. Asia buys Asia basically is reflective of how much more trade and investment flows are taking place within Asia. how much this is driving GDP growth in Asia expected to be another 1.8% additional GDP growth due to this intra-Asia flow, Asia, Middle East. As Peter said, we have presence in 18 markets in Asia, plus 10 markets in the Middle East. That's 28 markets for our 50-odd markets globally. And we're a leader in practically all these markets in trade. We're #1. Market share in Hong Kong, more than 30% in trade. But what's important is shipments in 2025 in Asia hit a record high. So one can argue there is a trade and tariff war going on. Asia buys Asia is growing relentlessly strongly, and we are extremely well connected to this opportunity. Now if you look at our business, wholesale transaction banking, which captures trade payments in Asia. we're more than twice larger in revenue terms than our second best competitor. We're more than 2.5x larger than the average of our next 3 competitors. That's our leadership position. And we're investing. We're investing in deposit growth. We're investing in the network capabilities. And very importantly, we're investing in innovation. And you'll hear from Manish later on how we're investing in tokenized deposits, real-time payments, stable coins, and you'll hear also how we're investing in our various platforms for blockchain-related activities. So those investments, we will be, therefore, with all the rollout of what we're doing, the leader in driving innovation in payments or in general in wholesale in Asia. The second thing I want to call out about CIB is the global flows because we have a global network, not just an Asia network. I think this is very important. 85% of CIB customers are multi-jurisdictional customers. Half the revenue -- more than half the revenue they book, they book outside their home market. This is us at our best as a network bank. 65% of those customers are customers whose home market is in the Americas, in Europe or in the U.K. Our presence in the Americas and Europe and the U.K. is critical to bank these customers in their home market at their head office so that we can capture their flow. And if you look at their flow, 50% of that flow comes back to Asia. Asia is a big beneficiary, not just from within Asia, but from this Western American, European, U.K. business that is coming to Asia. If you look at the Americas, that's mostly the U.S. really, it is one of the largest contributors to revenue in Asia, but also everywhere. And that's a very important feature to call out. And of course, there is the Asia -- intra-Asia flow, and you can see the Chinese Mainland Hong Kong flow, which is demonstrating how the Chinese Mainland customers are using Hong Kong as a launch pad for their international aspirations. Okay. The last business I want to call out, you'll only hear about this from me, the U.K. because we're in Asia and we're doing Asia seminar. But in November, David Lindberg, our U.K. CEO, will talk to you in a little bit more detail about that. But there are a few things I want to call out about the U.K. business. The first one is if you combine our ring-fenced bank and nonring-fenced business in the U.K., we're talking a business that generates in the U.K. alone $19 billion of revenue. We're talking in the U.K. alone a business that's driving $570 billion of deposits. And we're talking basically a top 3 bank in the U.K. But when you consider the #1 and #2 banks in the U.K. are domestic-only bank, we are the leading international bank in the U.K. flat. And by being the leading international bank in the U.K., the U.K. is extremely important for us. And you can see the flows from the Americas and Europe to the U.K. as well as the flows from the U.K. all the way into Asia. But we are extremely important to the U.K. as a bank. We are the bank that is making the U.K. a global hub as well. So with that, we have a full day. I'm not going to go through the agenda. You have it. You will hear from all my colleague or a very large number of my senior leadership team here. I'm extremely proud of every single one of them and what they've achieved as individual leaders as well as teams, and I'll leave you to hear from them. That's your day 1 agenda. That is the day 2 agenda where we take you through some more of our businesses. And then I'm going to close on just a few items, my final remarks. The first one is we are becoming simple and agile as we've always meant to be, building a bank for the future and leading in innovation. Strategic priority #1. We're a customer-centric bank with a high-quality customer franchise, unrivaled customer franchise. And each of our businesses is built on trust, is growing its revenues, is growing its deposits and is delivering above 17% returns. And we're a bank that is delivering focused, sustainable growth from a position of undisputed leadership being the #1 bank in Hong Kong by miles, the #1 wealth manager in Asia by certain distance and the #1 transaction bank in Asia as well by a certain distance. And we're doubling down our investments to be able to capture the structural growth opportunities and continue taking market share. But importantly, and finishing on that note, we are built on strong foundations. The world is uncertain. The world is evolving fast, but our positioning is extremely supportive of us helping our customers navigate these uncertainties. We have a very strong balance sheet. We have a hallmark financial strength, liquid, highly capitalized prudent risk management We have a brand trust and a heritage that's unrivaled. We have a power of a global network that is not only broad but more importantly, deeply rooted and culturally deeply aligned to all our customers and decision-makers and policymakers in all those markets where we operate. And we have one of the most attractive cultures with people highly skilled with deep product expertise. And on that note, I'm going to ask Pam to come and take you through additional information. Thank you very much,.

Good morning, and a very warm welcome. Thank you for joining us today. I've had the pleasure of meeting most of you, so I'm going to spare you the introduction. I think you know me well enough by now, the gray hair tells, so it's a good recognition. We have been looking forward to this seminar for some time. It is really an opportunity for us to step back from the earnings cycle and talk in depth about the bank we are building. George has spoken about where we have come from, where we are today and where we are going next. I'm going to talk to you about the strong foundations we are building from. First, the discipline and focus we are applying, and that really matters. Second, how we are driving growth because growth is the next stage of our journey, and we are going to absolutely double down on it. Third, the choices that we are making in order to create that growth, which is bang on strategy and gives us that operating leverage as we move forward. Now let's start first, why we are confident in delivering our targets. Now I believe that results speak for themselves. Our financials show a consistent improvement. Revenue has grown 5% and earnings per share 11% on a 2-year CAGR basis, excluding notables. RoTE is 1.2% higher to the best level that we have achieved in the last 2 decades. This is unlocking true shareholder value no matter where you are, and it provides us with a platform to raise our ambition, and it gives us the confidence to continue to build from the strong foundation. Let's just turn to the targets we set in February. I'm going to offer you some context on the targets you are familiar with. When developing them in line with our conservative nature, we want to give you targets that we intend to achieve under a range of scenarios. So there are a range of plausible scenarios we consider when we set our targets. But behind that, we are ambitious. Now what does that mean? It really means that our goals are pushing us to improve, to think differently, as George called out, and raise our performance further. I'm often asked, you just look at your targets and then do you stop? And I said, do you think I'm going to stop there? The targets are there for us to run the bank to deliver on those targets, but we don't stop there. They are the baseline from which we continue to build. Now let's look at the foundations underpinning our targets. As George said, banking begins with trust, and that's our hallmark strength. Customers place their money with institutions. They see us safe, stable and who will protect their money. And that is even more important when the world around us, the macro environment is uncertain and volatile. That trust truly matters to us. Deposits for us are more than just funding. They reflect the confidence our customers have in us, and they reflect the strength and growth potential of our franchise. Now we hold a surplus of deposits in each of our major currencies, in each of our 4 businesses and in each of our major operating entities. We are very pleased with that, but we work hard to earn our customers' trust. We do not take it for granted. Now this trust gives us the resilience through cycles and a strong foundation for growth. Now in the first quarter results, we gave you some additional deposit disclosures because we wanted you to see the quality, diversification and strength of our $1.8 trillion deposit base. We also shared with you how $1.2 trillion of our deposits are instant access, relationship balances. They are global and they fund each of our 4 businesses. Now turning to how our deposits are driving earnings. Most of our banking NII is deposit driven. Our loan-to-deposit ratio is 55%. We have a strong track record of growing deposits as the 4% CAGR on the slide shows. Our deposit relationships then give us a deeper engagement over time with all our customers, and they lead to wealth and investment products, payments and cash management, trade and foreign exchange. Simply put, the value of our relationship with our customers can and does extend well beyond the deposit itself. That is just the starting point. It gives us high-quality recurring revenues that support high-quality fee and other income revenues. and our global network and deep franchise drives connectivity across our businesses and markets through our global footprint. Now what this does is it strengthens both the resilience as well as the sustainability of growing earnings for the bank. Now let's look at these instant access deposits specifically. A defining strength of our deposit base is that 70% comes from instant access. This is across our retail, wealth, commercial and wholesale transaction banking businesses. These are balances connected to our customers' everyday activities, true relationship balances. For retail customers, it reflects us having a primary banking relationship with each and every customer. For commercial customers, it reflects operating accounts, transaction banking and cash management flows of our customers. Our relationship-led deposits are driven by the role we play in our customers' financial lives and not just simply pricing. As the slide shows, our instant access deposits fund 124% of our loan book. For peer banks, it is below 100% -- and what does it really mean? Simply, it makes us less reliant on market funding than any peer. It gives us flexibility. So when we see attractive lending opportunities, which are on target, on strategy within our risk appetite, we can and we do move quickly. It also means we generate our strong return on tangible equity with lower balance sheet leverage than many of our peers, and that is a key strength for us. Our deposits provide the foundation for our growth. And when we think about growth and where it comes from, of course, we think about Asia because it's at the heart of who we are. Let's turn to it now. Asia, as you saw in the video, and Peter mentioned and George, it has been our heartland for more than 160 years. It is driving 60% of global growth and 40% of global GDP. So we are prime positioned to take advantage of those evolving trends. Asia is at the center of new trade, capital and wealth flows. We are a leader in Asia, and it is a leading contributor to the group, its performance as well as growth trajectory. Across the region, our international network and customer franchise gives us real competitive strength. You can see this in our 7% customer deposit and 5% revenue CAGRs in what has been a challenging falling rate environment. That is why our success in Asia is key to delivering our targets, and it is built on the strength of our customer relationships and the trust they have in us in every market. At this seminar, we'll talk about the opportunity we see and where we are making investments to grow. Let's look first at our most recent growth investment, Hang Seng Bank. We now own 2 iconic banks here in Hong Kong. Like HSBC, Hang Seng Bank is a bank built on the trust of its customers. It has history and heritage, deep customer relationships and is the leading local community bank here in Hong Kong, and that truly matters. We see significant opportunity to build on the strengths of Hang Seng Bank, particularly in wealth, SME and MME banking, where customer relationships run deep and banking needs are rapidly evolving, and we are there to serve our customers. We also see the opportunity to simplify how we operate together to co-build capabilities align technology and infrastructure more effectively, upgrade systems and invest for the future. I'll not talk more about this slide. You've heard us, our ambition does not stop at just the numbers there. They are the blank boxes there, and that really call out that once impairments normalize as we are seeing through the stabilization of the Hong Kong commercial real estate and growth comes in, we see an even further upward trajectory than the numbers that have been called out at the year-end results. Now Luanne and Maggie will talk in depth about both of our franchises, and I'm sure they're going to be far more eloquent because they live here all the time, irrespective of how I travel and get to know the place. So I'm sure you'll be very keen to hear from them later this morning. Now I'm going to move next to wealth. As we've said before, we are a customer relationship bank. We are building the bank around these customer relationships and wealth is no different. Our relationships reach across retail, wealth and corporate banking. When we think about wealth, our starting point is our relationships that have spanned decades, even generations, particularly in Asia, which is our Heartland. That is why we have built a full suite of products so that we can serve our customers through all life stages. and that is our key strength. Now this gives us multiple opportunities to support our customers with their wealth and business needs. Now particularly in Asia, where we're seeing rising wealth and entrepreneurship driving long-term structural growth, we are there on the ground to take those opportunities and to continue to build on the strength of our customer relationships. Now just to help you see the significance of our wealth franchise, we are providing new disclosures today. Wealth generates 1/4 of our group revenue and 2/3 of that 25% comes from here in Asia. What the disclosures also show is that the major contributor to banking NII is wealth deposits. These wealth deposits generate 20% of our group banking NII. And again, 2/3 of that comes from Asia. And it is our intention to continue to seize the wealth opportunity in front of us. We are well positioned with how we have prioritized these markets, how we are investing in wealth and the heritage and the history we come from. Now let me briefly conclude before we move to the management presentations, which I know you have all been eagerly waiting for. Trust sits at the center of our business. It supports lower funding costs, drives resilient earnings and is the foundation, a very solid foundation indeed for future growth. We have an integrated network business with strength in our capabilities across payments, trade, FX and security services. And that really helps us navigate our customers in what has been a more and more volatile uncertain world. Now this is an important part of our growth story, and we will discuss further with some of my colleagues this afternoon. Our network is truly unique. It has scale, it has breadth and the depth of our customer base. And that gives us a very broad base of opportunities to continue to grow. Now you can see after all that, why we are truly excited about the next phase of our journey, which is going to be a journey of growth. As a starting point, we are the #1 bank in Hong Kong, and we intend to drive further growth. We are the #1 wealth manager in Asia, and we intend to capture the structural growth opportunity ahead of us. We are the #1 wholesale transaction bank across the region, and we will grow with the trade, capital and investment flows shaping Asia's future. We are investing in innovation to position us to remain at the forefront of new forms of finance, particularly in digital assets and currencies. That is how we are building a modern bank, a bank built for the future. I'll now invite David and Rosha to take it from here.

Thank you, Pam. Good morning, everybody, and welcome to One QRC. My name is Surendra Rosha, and I'm joined today by my Co-CEO, David Liao. David and I have the privilege of managing HSBC's business in Asia and the Middle East. Together, we are members of the Group Operating Committee. We are Executive Directors on the Board of the Hong Kong and Shanghai Banking Corporation. David also sits on the Board of Hang Seng Bank and Chairs HSBC China, and I'm a Non-Executive Director of the Board of Saudi Awwal Bank.

Thank you, Rosha. Good to see you all. Today, we're going to elaborate on the group strategy that George has laid out and detail the management actions we are taking to capture the new opportunities to drive growth. We are building a growing and high-returning HSBC in Asia. To drive momentum, Rosha and I are focusing on banking the growing wealth in the region, deploying the unique global network to gain cross-border banking share, leveraging the 2 distinctive brands of HSBC and Hang Seng simplifying our organization structure, accelerating decision-making and last but not least, upgrading our processes and system to better serve the customers. As Peter mentioned just now, China is the growth engine for Asia and beyond. We are sitting at the financial catchment of the world's largest trading economy. China generated $20 trillion in GDP last year, a major global contributor of innovation with half of the world's IP filings coming from China last year. It's home to 1.4 billion consumers with much upside on growth, and it is the world's second largest equity and bond market. China is a net capital exporter, generating 10% of world's outbound direct investment flow with Hong Kong adding another 5%. Our CIB business is well positioned to support Chinese institutions and corporates as they expand internationally. China is fueling the growth of wealth in the region. We added 1.3 new-to-bank customers in Hong Kong in 2025. And all of this, we are only scratching the surface. There are over 70 million Mainland Chinese with offshore wealth needs. Turning to next page. On the back of the world's second largest economy, Hong Kong's fundamental is very strong. GDP was up nearly 6% in the first quarter. Housing market activities are picking up, and it is the world's leading IPO market. The government is developing an all-encompassing financial market, stepping up in fixed income, currencies and commodities as well as in digital assets. The foundations are compelling as ever, a $2.5 trillion liquidity pool backed by a robust regulatory regime, an attractive regional headquarter and treasury center with over 10,000 multinationals with regional headquarters here. As wealth and investment flow in from around the world, we see a runway for growth across asset classes and currencies and much more room for development as an offshore renminbi center. The opportunity is substantial, but our Asia franchise is more than just Hong Kong and China. Rosha?

Thanks, David. So you heard this morning about how through its history, HSBC has been anchored in Asia and the contribution Asia makes to the group. But what's very important for us is the future. As the region is growing and the way it is growing is changing, it plays to our strengths. Trade is rebalancing and our global network supports customers as they rewire not just their supply chains, but they look to open up new markets for their products. New technology is delivering real-time payments and finance. Regional capital is moving outward and diversifying. And Asian wealth is becoming more mobile, moving across borders coming into Hong Kong, coming into Singapore and investing globally. In short, for us, Asia is the growth engine. Hong Kong amplifies that growth and HSBC is the connector. We are the leading international bank in Asia today. This is not a single market story. This is about a deep franchise. We are diversified, connected and resilient, present in 18 markets that represent 90% of the GDP of the region. We bank 79% of the global Fortune 500 here. In Hong Kong, as you've heard, we are the #1 bank, but also in Singapore, our growth is supported by strong wealth and treasury activity. India's PBT is up nearly 50% since we last met. The -- it is the largest contributor to CIB outside our home markets. In the Chinese Mainland, we banked around 80% of the MSCI China Tech 100. And in all our other markets, we have an average of 100 years of history, deep relationships, and we continue to deepen that penetration. Last year, David and I took over responsibility for our Middle East business, enabling us to capture the growing connectivity between these 2 regions. Next, I'll go into 3 actions that David and I are focused on as we look to deliver sustainable growth in the region. Firstly, Hong Kong. You heard from Hong Kong -- you heard from David, sorry, about the strong fundamentals of our Hong Kong business. The scale of our franchise is impressive. In the geography of Hong Kong, across our 3 businesses of the Hong Kong pillar, IWPB and CIB, we earned $13 billion in profit before tax. nearly 50% market share in credit card balances and mutual fund sales in the city, around 1/3 in trade and 1/4 in deposits. But collectively, the management team here is not complacent. Our leadership must be defended, renewed and expanded. David, Maggie and Luanne will go into more detail on this later this morning. Secondly, you heard about the scale of our wealth franchise in Asia. This has underpinned double-digit growth, wealth CAGR for the last 2 years. But there are 2 things I'd like to call out that differentiates our franchise from others. We bank customers across the continuum, 3.8 million premier accounts across Hong Kong and IWPB in the region, 35,000 private banking relationships, and we can upgrade seamlessly across this continuum as people's wealth grows. Secondly, our ability to cross-sell and refer across businesses. We refer entrepreneurs from our commercial banking business in Hong Kong, from our CIB business in the region to the Private Bank and capture wealth broadly across all our businesses, including in CIB, where we manufacture wealth products and provide custody for wealth assets. You will hear more from Barry and the IWPB team on this later tomorrow. The third thing we are focused on is our distinctive global network. 60% of the cross-border revenues booked in Asia are contributed by customers from outside the region. Our network is uniquely positioned to capture 4 broad trends. China outbound. Chinese corporates are seeking new markets. We know that. Mainland corporates, WeBank increased their offshore presence by 40% year-on-year, adding over $1 billion in revenues. Today, we have over 120 Mandalin-speaking relationship managers and salespeople across 28 markets, and that number continues to grow. Secondly, Asian asset managers and institutions are diversifying. There has been -- this has been a particular a particular growth focus for us in our institutional client business. Revenue from Asia-based FIs grew by double digits over the first quarter of this year. Thirdly, the corporate champions of the future are being created and incubated in Asia right now, which is why we launched innovation banking in the Chinese Mainland, in Hong Kong, in India, in Singapore to serve Southeast Asia and in Australia. And lastly, as we think about new infrastructure being built and energy resilience being built across the region, our balance sheet positions us very well to support our customers. We will hear more about this from our CIB team later this afternoon. As we build HSBC into the bank of the future, this foundation and Asia is core to that journey, but the foundation for this build is technology. You heard about our focus on AI from George, and you will see some of the use cases that are being put to work in delivering hyper-personalized service to our customers later this evening at the ICC Wealth Center. Secondly, we are partnering and investing in fintechs across the region so that we can accelerate development and co-deliver solutions ranging from platforms to customer service and fraud prevention. And thirdly, in terms of digitization, we talked about blockchain, stablecoin, tokenized deposits, and a lot of these products are today live with us in Hong Kong and across the region. I will now hand over to David to go into more detail about the Hong Kong business.

Thank you, Rosha. Hong Kong, as you can see, is our home market and a substantial contributor to the group. We have 2 iconic brands here that cover retail and wealth as well as commercial banking. HSBC is the largest bank in Hong Kong, and Hang Seng is the largest local bank. The 2 combined serve almost the entire population and almost 0.5 million business banking customers. Under the simplified organizational structure, Rosha and I are directly responsible for the Hong Kong business. We are focusing on 3 initiatives: First, deliver the revenue and cost upside of Hang Seng privatization that Pam spoke of. Secondly, investing in wealth, people and capabilities. Finally, capturing the cross-border activities from the Chinese Mainland. I will go into each of them in detail. Growing the 2 iconic brands. At the full year results, George and Pam communicated the $900 million revenue and cost upside we expect from the $13.7 billion Hang Seng privatization. Fundamentally, this is about serving our loyal customer better by leveraging the strength of the entire group. This means leverage the best-in-class wealth capabilities that we have across the group, enhancing our business banking propositions through digitization. This month, for example, Hang Seng already launched remote account opening for Mainland customers using a capability developed by HSBC Hong Kong. We are also connecting Hang Seng to HSBC's global network and products. In simplification, we're positioning the 2 brands to be able to co-build capabilities with a modernized technology foundations. In wealth, both brands are starting from a position of strength as reflected in strong customer growth at the top of the spectrum. HSBC Hong Kong has been accelerating growth of its customer base, creating a pipeline for future upgrades, while Hang Seng has a very high wealth penetration and is executing a focused strategy to increase market share. Maggie and Luanne will shortly detail their plans to drive further wealth growth -- wealth revenue growth. Expanding the customer base. We are growing at pace, but there is just much more upside. Hong Kong is reshaping into a new era of upsized cross-border consumption, investment and trade hub. We have seen an intense influx of new nonresident customers, corporates and individuals and rapid growth in Mainland-linked businesses. On the retail side, we opened 2.1 million accounts over the last 3 years, sizable, but a fraction of the addressable market. On the corporate side, we acquired over 60,000 Mainland business customers in 3 years, and the pace is accelerating. We will continue to invest to capture further customer growth through seamless onboarding, digitization and leveraging our connectivity. Now I'll hand over to Rosha to conclude.

Thank you, David. So to conclude, we have scale and momentum in Asia, underpinned by 3 #1: #1 in Hong Kong; 1 in Asia wealth and #1 in Asia CIB anchored by wholesale transaction banking. We are investing in technology, and we are investing in our people to better serve our deepest, most trusted customer relationships. But also importantly, we are building new relationships with new customers in the region. Our global and complementary businesses is our calling card, enabling us to capture the growth opportunities in the region across our home markets of Hong Kong, wealth and CIB. I will now pass over to Maggie Ng, CEO of Hong Kong. After Maggie's presentation, we will be moving to Hang Seng to hear from Luanne Lim, our CEO for Hang Seng Bank. There is time later for Q&A with all of us. Thank you.