HSBC 2015 Annual Report Download - page 22

GB&M risk-weighted assets
($bn)
440.6
516.1
2015
2014
NAFTA area revenue
($bn; includes intercompany revenue)
8.3
8.2
2015
2014
Progress on selected
strategic actions
US and Mexico
We are strengthening our businesses in
Mexico and the US to rebuild profitability.
We seek to grow revenue from cross-
border banking opportunities across the
North American Free Trade Agreement
(‘NAFTA’) area.
US growth
We grew revenue from transaction
banking products, including a 9% increase
in Global Trade and Receivables Finance,
and increased collaboration between
our GB&M and CMB businesses. We
improved cost efficiency by consolidating
data centres and moving to lower-cost
office locations.
Mexico growth
We grew RBWM’s adjusted revenue in
Mexico by 7%, growing faster than the
market in cards, mortgages and personal
loans. We increased revenue from
business synergies in 2015, including
an 18% increase in revenue from Global
Trade and Receivables Finance products
provided to GB&M clients.
NAFTA area initiatives
We increased the number of clients we
serve who conduct business across the
NAFTA area. We are developing our
products to better serve customers and
connect supply chains. Our cross-border
revenue between the US and Mexico
grew by more than 10% in 2015.
Reduce risk-weighted assets
We made significant progress in meeting
our risk-weighted asset (‘RWA’)
reduction targets in 2015. We did this
primarily by: exiting or disposing of low
returning portfolios; better managing
processes, calculations and positions;
and being more selective in the business
we undertake.
Exit/disposal of low
returning portfolios
Nearly $42bn of our total RWA
reduction came from the partial sale
of our investment in China’s Industrial
Bank, and the accelerated sell-down
of our consumer mortgage portfolio
in the US and our GB&M legacy
credit portfolio.
Management of positions,
processes and calculations
We have refined our RWA calculations,
and implemented process improvements
and exposure reductions in GB&M
and CMB. This reduced RWAs by a
further $82bn, two-thirds of which
was in GB&M.
We have mobilised
resources throughout
our organisation to
deliver the results
we have committed
to achieving by 2017.
We aim to capture value from our
network by adapting to structural
changes in our operating environment
and pursuing growth opportunities.
In 2015, we took our first steps
towards achieving the targets we
set out in June. These pages contain
additional information on five selected
actions. For further details on revenue
growth from our international network,
see page 46.
Group RWA reduction
Change from 2014
-10%
NAFTA area revenue
(% of Group revenue)
14%
HSBC HOLDINGS PLC
20
Strategic Report