Ori

gin

al Pic

ture

by m

rhap

py

Building a Global BankSome personal views

Simen Munter,

Chief Executive Officer, Kazakhstan

BTA Conference 2008

2

We have been Global since commencing business in 1865.

3

USUS

BANKS ARE BECOMING BIGGER AND MORE INTERNATIONAL

34

1,250

2005 1990

1,050

87.5

2005 1990

Average Average market capmarket cap ~6

Top 15 banks, combined market cap (source McKinsey)USD billions

~75 ~2 ~90

35x12x

EU 7EU 7

Share of international revenues for the top 25 banks has increased from 28% in 1995 to 43% in 2005

4Mega Trends

Globalisation is speeding up and Financial Institutions will increasingly follow the lead set by Industry. Significant growth in Cross Border operations

Challenge of Benefits of Scale vs Cost of Complexity

The Big Banks will continue to be getting Bigger, but leverage will be coming down

Financial Service will become more complex

Common solutions to Common Problems

5Key Successfactors for an Effective Globalisation Strategy

6a) Building from a Solid Base in your Home Market

7b) Strong Leadership and Vision

8c) Unique capabilities – and these can be replicated across markets

9

Guidance with Wisdom Delegation with Confidence

Our Organisation

Joining Up the CompanyOur Technologyand Process

Building for Sustained Growth

Our Businesses

Our Global AdvantageOur Global Distribution

The Best Place to WorkOur Culture

The World’s Local BankOur Brand

Service ExcellenceOur Customers

Communicate – Communicate - Communicate

10Ability to see What others Don’t

11d) Deals. Ability to (mostly) do the ‘Right Deals’

12e) Building a Bench of ‘Right Leaders’(and avoiding the Wrong Ones!)

13f) Successfully balancing Local vs Global

14Joining Up the Company

15g) Strong Risk Management

16Not a Strategy for Everybody

17Questions/Comments?

simen.munter@hsbc.com