HSBC 2015 Annual Report Download - page 12

Group Chief
Executive’s Review
HSBC is better balanced, better connected
and better placed to capitalise on higher return
businesses than it was 12 months ago.
Business performance
Our performance in 2015 again demonstrated the
fundamental strength of our business. Targeted
investment, prudent lending and our diversified,
universal banking business model helped us achieve
revenue growth in a difficult market environment
whilst also reducing risk-weighted assets.
We also started to implement the actions that
we announced at our Investor Update in June
to adapt HSBC to new operating conditions.
Completing these plans will refocus the business
to achieve stronger, sustainable growth and we
are acting on them quickly and efficiently.
On an adjusted basis, we grew revenue over the
course of the year. Global Banking and Markets
performed strongly and Commercial Banking grew
steadily in spite of slower trade. Principal Retail
Banking and Wealth Management also grew
following a strong Wealth Management performance
in the first half. Global Private Banking grew in
Asia, but was down overall due to the impact
of the continued repositioning of the business.
Our adjusted operating expenses increased
as we continued to strengthen our compliance
capability whilst also investing for growth. However,
a combination of strict cost management and the
cost reduction programmes that we started in the
middle of the year helped us keep second half costs
flat relative to the first half, excluding the bank levy.
Loan impairment charges remained generally low
despite an increase in provisions towards the end
of the year. This demonstrates again our prudent
approach to lending and the benefit of our de-risking
measures since 2011.
In total, we generated $11.3bn of capital in
2015, which enabled us to increase the dividend
and strengthen the common equity tier 1 ratio.
Strategic Report
HSBC HOLDINGS PLC
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