|
Quarter ended
|
|||||
|
31 Mar
|
31 Dec
|
31 Mar
|
|||
|
2020
|
2019
|
2019
|
|||
Reported results
|
|
|
|
|||
Reported revenue ($m)
|
13,686
|
|
13,371
|
|
14,428
|
|
Reported profit before tax ($m)
|
3,229
|
|
(3,897
|
)
|
6,213
|
|
Reported profit after tax ($m)
|
2,508
|
|
(5,024
|
)
|
4,910
|
|
Profit attributable to the ordinary shareholders of the parent
company ($m)
|
1,785
|
|
(5,509
|
)
|
4,134
|
|
Basic earnings per share ($)
|
0.09
|
|
(0.27
|
)
|
0.21
|
|
Diluted earnings per share ($)
|
0.09
|
|
(0.27
|
)
|
0.21
|
|
Return on average ordinary shareholders' equity (annualised)
(%)
|
4.4
|
|
(13.3
|
)
|
10.2
|
|
Return on average tangible equity (annualised) (%)
|
4.2
|
|
5.2
|
|
10.6
|
|
Net interest margin (%)
|
1.54
|
1.56
|
|
1.59
|
|
|
Adjusted results
|
|
|
|
|||
Adjusted revenue ($m)
|
13,327
|
13,586
|
|
14,149
|
|
|
Adjusted profit before tax ($m)
|
3,042
|
4,343
|
|
6,246
|
|
|
Adjusted cost efficiency ratio (%)
|
57.6
|
66.6
|
|
55.9
|
|
|
Expected credit losses and other credit impairment charges
(‘ECL’) (annualised) as % of average gross loans and
advances to customers (%)
|
1.18
|
|
0.28
|
|
0.24
|
|
|
|
At
|
|||||
|
|
31 Mar
|
31 Dec
|
31 Mar
|
|||
|
Footnotes
|
2020
|
2019
|
2019
|
|||
Balance sheet
|
|
|
|
|
|||
Total assets ($m)
|
|
2,917,810
|
|
2,715,152
|
|
2,658,996
|
|
Net loans and advances to customers ($m)
|
|
1,040,282
|
|
1,036,743
|
|
1,005,279
|
|
Customer accounts ($m)
|
|
1,440,529
|
|
1,439,115
|
|
1,356,511
|
|
Average interest-earning assets, year to date ($m)
|
|
1,991,702
|
|
1,922,822
|
|
1,902,912
|
|
Loans and advances to customers as % of customer accounts
(%)
|
|
72.2
|
|
72.0
|
74.1
|
||
Total shareholders’ equity ($m)
|
|
189,771
|
|
183,955
|
|
188,362
|
|
Tangible ordinary shareholders’ equity ($m)
|
|
150,019
|
|
144,144
|
|
141,648
|
|
Net asset value per ordinary share at period end ($)
|
1
|
8.30
|
8.00
|
|
8.20
|
|
|
Tangible net asset value per ordinary share at period end
($)
|
|
7.44
|
7.13
|
|
7.05
|
|
|
Capital, leverage and liquidity
|
|
|
|
|
|||
Common equity tier 1 capital ratio (%)
|
2
|
14.6
|
|
14.7
|
|
14.3
|
|
Risk-weighted assets ($m)
|
2
|
857,078
|
|
843,395
|
|
879,485
|
|
Total capital ratio (%)
|
2
|
20.3
|
|
20.4
|
|
20.2
|
|
Leverage ratio (%)
|
2
|
5.3
|
|
5.3
|
|
5.4
|
|
High-quality liquid assets (liquidity value) ($bn)
|
|
617
|
|
601
|
|
535
|
|
Liquidity coverage ratio (%)
|
|
156
|
|
150
|
|
143
|
|
Share count
|
|
|
|
|
|||
Period end basic number of $0.50 ordinary shares outstanding
(millions)
|
|
20,172
|
|
20,206
|
|
20,082
|
|
Period end basic number of $0.50 ordinary shares outstanding and
dilutive potential ordinary shares (millions)
|
|
20,245
|
|
20,280
|
|
20,177
|
|
Average basic number of $0.50 ordinary shares outstanding
(millions)
|
|
20,161
|
|
20,158
|
|
20,036
|
|
Dividend per ordinary share (in respect of the period)
($)
|
|
—
|
|
0.30
|
|
0.10
|
|
|
Contents
|
||||
|
Page
|
|
|
Page
|
|
|
Highlights
|
1
|
|
Credit risk
|
16
|
|
Key financial metrics
|
2
|
|
Capital adequacy
|
19
|
|
Covid-19
|
3
|
|
Leverage
|
20
|
|
Adjusted performance
|
4
|
|
Risk-weighted assets
|
20
|
|
Financial performance
|
6
|
|
Summary information – global businesses
|
22
|
|
Cautionary statement regarding forward-looking
statements
|
12
|
|
Dividend on preference shares
|
25
|
|
Summary consolidated income statement
|
14
|
|
Terms
and abbreviations
|
26
|
|
Summary consolidated balance sheet
|
15
|
|
|
|
Covid-19
|
Adjusted performance
|
Foreign currency translation differences
Foreign
currency translation differences for 1Q20 are computed
by retranslating into US dollars for non-US dollar branches,
subsidiaries, joint ventures and associates:
● the
income statements for 4Q19 and 1Q19 at the average rates of
exchange for 1Q20; and
● the
closing prior period balance sheets at the prevailing rates of
exchange on 31 March 2020.
No
adjustment has been made to the exchange rates used to translate
foreign currency-denominated assets and liabilities into
the functional currencies of any HSBC branches, subsidiaries,
joint ventures or associates. The constant currency data of
HSBC’s Argentinian subsidiaries have not been adjusted
further for the impacts of hyperinflation. When reference is made
to foreign currency translation differences in tables or
commentaries, comparative data reported in the functional
currencies of HSBC’s operations have been translated at the
appropriate exchange rates applied in the current period on the
basis described above.
|
Reconciliation
of reported and adjusted results
|
|||||||
|
|
Quarter ended
|
|||||
|
|
31 Mar
|
31 Dec
|
31 Mar
|
|||
|
|
2020
|
2019
|
2019
|
|||
|
Footnotes
|
$m
|
$m
|
$m
|
|||
Revenue
|
|
|
|
|
|||
Reported
|
1
|
13,686
|
|
13,371
|
|
14,428
|
|
Currency
translation
|
|
|
(66
|
)
|
(257
|
)
|
|
Significant
items
|
|
(359
|
)
|
281
|
|
(22
|
)
|
–
customer redress programmes
|
|
—
|
|
45
|
|
—
|
|
–
disposals, acquisitions and investment in new
businesses
|
|
7
|
|
55
|
|
—
|
|
–
fair value movement on financial instruments
|
2
|
(357
|
)
|
176
|
|
(22
|
)
|
– restructuring and other related costs
|
|
(9
|
)
|
—
|
|
—
|
|
–
currency translation of significant items
|
|
|
5
|
|
—
|
|
|
Adjusted
|
|
13,327
|
|
13,586
|
|
14,149
|
|
Change in expected credit losses and other credit impairment
charges
|
|
|
|
|
|||
Reported
|
|
(3,026
|
)
|
(733
|
)
|
(585
|
)
|
Currency
translation
|
|
|
11
|
|
16
|
|
|
Adjusted
|
|
(3,026
|
)
|
(722
|
)
|
(569
|
)
|
Operating expenses
|
|
|
|
|
|||
Reported
|
|
(7,852
|
)
|
(17,053
|
)
|
(8,222
|
)
|
Currency
translation
|
|
|
54
|
|
156
|
|
|
Significant
items
|
|
172
|
|
7,956
|
|
155
|
|
–
cost of structural reform
|
3
|
—
|
|
32
|
|
53
|
|
–
customer redress programmes
|
|
1
|
|
183
|
|
56
|
|
– goodwill impairment
|
|
—
|
|
7,349
|
|
—
|
|
–
restructuring and other related costs
|
|
170
|
|
400
|
|
50
|
|
–
settlements and provisions in connection with legal and regulatory
matters
|
|
1
|
|
5
|
|
—
|
|
–
currency translation of significant items
|
|
|
(13
|
)
|
(4
|
)
|
|
Adjusted
|
|
(7,680
|
)
|
(9,043
|
)
|
(7,911
|
)
|
Share of profit in associates and joint ventures
|
|
|
|
|
|||
Reported
|
|
421
|
|
518
|
|
592
|
|
Currency
translation
|
|
|
4
|
|
(15
|
)
|
|
Adjusted
|
|
421
|
|
522
|
|
577
|
|
Profit/(loss) before tax
|
|
|
|
|
|||
Reported
|
|
3,229
|
|
(3,897
|
)
|
6,213
|
|
Currency
translation
|
|
|
3
|
|
(100
|
)
|
|
Significant
items
|
|
(187
|
)
|
8,237
|
|
133
|
|
–
revenue
|
|
(359
|
)
|
281
|
|
(22
|
)
|
–
operating expenses
|
|
172
|
|
7,956
|
|
155
|
|
Adjusted
|
|
3,042
|
|
4,343
|
|
6,246
|
|
Loans and advances to customers (net)
|
|
|
|
|
|||
Reported
|
|
1,040,282
|
|
1,036,743
|
|
1,005,279
|
|
Currency translation
|
|
|
(37,012
|
)
|
(29,133
|
)
|
|
Adjusted
|
|
1,040,282
|
|
999,731
|
|
976,146
|
|
Customer accounts
|
|
|
|
|
|||
Reported
|
|
1,440,529
|
|
1,439,115
|
|
1,356,511
|
|
Currency translation
|
|
|
(45,453
|
)
|
(33,626
|
)
|
|
Adjusted
|
|
1,440,529
|
|
1,393,662
|
|
1,322,885
|
|
Financial performance
|
Distribution
of results by global business
|
||||||
|
Quarter ended
|
|||||
|
31 Mar
|
31 Dec
|
31 Mar
|
|||
|
2020 |
2019
|
2019
|
|||
|
$m
|
$m
|
$m
|
|||
Adjusted profit/(loss) before tax
|
|
|
|
|||
Retail Banking and Wealth Management
|
357
|
|
1,914
|
|
2,195
|
|
Commercial Banking
|
611
|
|
1,646
|
|
1,992
|
|
Global Banking and Markets
|
823
|
|
1,272
|
|
1,611
|
|
Global Private Banking
|
121
|
|
86
|
|
98
|
|
Corporate Centre
|
1,130
|
|
(575
|
)
|
350
|
|
Total
|
3,042
|
|
4,343
|
|
6,246
|
|
Distribution
of results by geographical region
|
||||||
|
Quarter ended
|
|||||
|
31 Mar
|
31 Dec
|
31 Mar
|
|||
|
2020
|
2019
|
2019
|
|||
|
$m
|
$m
|
$m
|
|||
Reported profit/(loss) before tax
|
|
|
|
|||
Europe
|
(511
|
)
|
(3,709
|
)
|
(14
|
)
|
Asia
|
3,740
|
|
4,037
|
|
5,006
|
|
Middle East and North Africa
|
44
|
|
286
|
|
465
|
|
North America
|
(111
|
)
|
(278
|
)
|
379
|
|
Latin America
|
67
|
|
(271
|
)
|
377
|
|
Global GB&M goodwill impairment
|
—
|
|
(3,962
|
)
|
—
|
|
Total
|
3,229
|
|
(3,897
|
)
|
6,213
|
|
Adjusted profit/(loss) before tax
|
|
|
|
|||
Europe
|
(685
|
)
|
(516
|
)
|
54
|
|
Asia
|
3,643
|
|
4,117
|
|
5,022
|
|
Middle East and North Africa
|
43
|
|
392
|
|
471
|
|
North America
|
(10
|
)
|
265
|
|
386
|
|
Latin America
|
51
|
|
85
|
|
313
|
|
Total
|
3,042
|
|
4,343
|
|
6,246
|
|
Movement
in reported profit before tax compared with 1Q19
|
||||||||
|
Quarter ended
|
|||||||
|
31 Mar
|
31 Mar
|
Variance
|
|||||
|
2020
|
2019
|
1Q20 vs. 1Q19
|
|||||
|
$m
|
$m
|
$m
|
%
|
||||
Revenue
|
13,686
|
|
14,428
|
|
(742
|
)
|
(5
|
)
|
ECL
|
(3,026
|
)
|
(585
|
)
|
(2,441
|
)
|
(417
|
)
|
Operating expenses
|
(7,852
|
)
|
(8,222
|
)
|
370
|
|
5
|
|
Share of profit from associates and JVs
|
421
|
|
592
|
|
(171
|
)
|
(29
|
)
|
Profit before tax
|
3,229
|
|
6,213
|
|
(2,984
|
)
|
(48
|
)
|
Tax expense
|
(721
|
)
|
(1,303
|
)
|
582
|
|
45
|
|
Profit after tax
|
2,508
|
|
4,910
|
|
(2,402
|
)
|
(49
|
)
|
Movement
in reported profit before tax compared with 4Q19
|
||||||||
|
Quarter
ended
|
|||||||
|
31 Mar
|
31 Dec
|
Variance
|
|||||
|
2020
|
2019
|
1Q20 vs. 4Q19
|
|||||
|
$m
|
$m
|
$m
|
%
|
||||
Revenue
|
13,686
|
|
13,371
|
|
315
|
|
2
|
|
ECL
|
(3,026
|
)
|
(733
|
)
|
(2,293
|
)
|
(313
|
)
|
Operating expenses
|
(7,852
|
)
|
(17,053
|
)
|
9,201
|
|
54
|
|
Share of profit from associates and JVs
|
421
|
|
518
|
|
(97
|
)
|
(19
|
)
|
Profit before tax
|
3,229
|
|
(3,897
|
)
|
7,126
|
|
183
|
|
Tax expense
|
(721
|
)
|
(1,127
|
)
|
406
|
|
36
|
|
Profit after tax
|
2,508
|
|
(5,024
|
)
|
7,532
|
|
150
|
|
Management
view of adjusted revenue
|
|||||||||||
|
|
Quarter ended
|
|||||||||
|
|
31 Mar
|
31 Dec
|
31 Mar
|
Variance
|
||||||
|
|
2020
|
2019
|
2019
|
1Q20 vs. 1Q19
|
||||||
|
Footnotes
|
$m
|
$m
|
$m
|
$m
|
%
|
|||||
Retail Banking
|
|
3,831
|
|
3,969
|
|
3,778
|
|
53
|
|
1
|
|
–
current accounts, savings and deposits
|
|
2,274
|
|
2,421
|
|
2,172
|
|
102
|
|
5
|
|
–
personal lending
|
|
1,557
|
|
1,548
|
|
1,606
|
|
(49
|
)
|
(3
|
)
|
mortgages
|
|
423
|
|
386
|
|
423
|
|
—
|
|
0
|
|
credit
cards
|
|
675
|
|
701
|
|
744
|
|
(69
|
)
|
(9
|
)
|
other
personal lending
|
|
459
|
|
461
|
|
439
|
|
20
|
|
5
|
|
Wealth Management
|
|
912
|
|
1,652
|
|
1,895
|
|
(983
|
)
|
(52
|
)
|
–
investment distribution
|
|
883
|
|
719
|
|
851
|
|
32
|
|
4
|
|
–
life insurance manufacturing
|
|
(206
|
)
|
676
|
|
788
|
|
(994
|
)
|
>(100)
|
|
–
asset management
|
|
235
|
|
257
|
|
256
|
|
(21
|
)
|
(8
|
)
|
Other
|
1
|
126
|
|
207
|
|
182
|
|
(56
|
)
|
(31
|
)
|
Net operating income
|
2
|
4,869
|
|
5,828
|
|
5,855
|
|
(986
|
)
|
(17
|
)
|
RoTE
excluding significant items and UK bank levy (annualised)
(%)
|
|
1.5
|
22.1
|
|
Management
view of adjusted revenue
|
|||||||||||
|
|
Quarter ended
|
|||||||||
|
|
31 Mar
|
31 Dec
|
31 Mar
|
Variance
|
||||||
|
|
2020
|
2019
|
2019
|
1Q20 vs. 1Q19
|
||||||
|
Footnotes
|
$m
|
$m
|
$m
|
$m
|
%
|
|||||
Global Trade and Receivables Finance
|
|
469
|
|
431
|
|
461
|
|
8
|
|
2
|
|
Credit and Lending
|
|
1,382
|
|
1,322
|
|
1,337
|
|
45
|
|
3
|
|
Global Liquidity and Cash Management
|
|
1,333
|
|
1,422
|
|
1,486
|
|
(153
|
)
|
(10
|
)
|
Markets products, Insurance and Investments, and Other
|
1
|
478
|
|
496
|
|
574
|
|
(96
|
)
|
(17
|
)
|
Net operating income
|
2
|
3,662
|
|
3,671
|
|
3,858
|
|
(196
|
)
|
(5
|
)
|
RoTE
excluding significant items and UK bank levy (annualised)
(%)
|
|
4.1
|
|
13.9
|
|
|
|
Management
view of adjusted revenue
|
|||||||||||
|
|
Quarter ended
|
|||||||||
|
|
31 Mar
|
31 Dec
|
31 Mar
|
Variance
|
||||||
|
|
2020
|
2019
|
2019
|
1Q20 vs. 1Q19
|
||||||
|
Footnotes
|
$m
|
$m
|
$m
|
$m
|
%
|
|||||
Global
Markets
|
|
2,133
|
|
1,241
|
|
1,712
|
|
421
|
|
25
|
|
–
FICC
|
|
1,844
|
|
1,067
|
|
1,340
|
|
504
|
|
38
|
|
Foreign
Exchange
|
|
1,129
|
|
665
|
|
684
|
|
445
|
|
65
|
|
Rates
|
|
675
|
|
274
|
|
481
|
|
194
|
|
40
|
|
Credit
|
|
40
|
|
128
|
|
175
|
|
(135
|
)
|
(77
|
)
|
–
Equities
|
|
289
|
|
174
|
|
372
|
|
(83
|
)
|
(22
|
)
|
Securities
Services
|
|
510
|
|
516
|
|
472
|
|
38
|
|
8
|
|
Global
Banking
|
|
942
|
|
982
|
|
921
|
|
21
|
|
2
|
|
Global
Liquidity and Cash Management
|
|
608
|
|
670
|
|
677
|
|
(69
|
)
|
(10
|
)
|
Global
Trade and Receivables Finance
|
|
193
|
|
196
|
|
205
|
|
(12
|
)
|
(6
|
)
|
Principal
Investments
|
|
(235
|
)
|
45
|
|
83
|
|
(318
|
)
|
>(100)
|
|
Credit
and funding valuation adjustments
|
|
(346
|
)
|
189
|
|
46
|
|
(392
|
)
|
>(100)
|
|
Other
|
1
|
(142
|
)
|
(120
|
)
|
(119
|
)
|
(23
|
)
|
(19
|
)
|
Net operating income
|
2
|
3,663
|
|
3,719
|
|
3,997
|
|
(334
|
)
|
(8
|
)
|
RoTE excluding significant items and UK bank levy (annualised)
(%)
|
|
6.9
|
|
11.3
|
|
|
|
Management
view of adjusted revenue
|
|||||||||||
|
|
Quarter ended
|
|||||||||
|
|
31 Mar
|
31 Dec
|
31 Mar
|
Variance
|
||||||
|
|
2020
|
2019
|
2019
|
1Q20 vs. 1Q19
|
||||||
|
Footnotes
|
$m
|
$m
|
$m
|
$m
|
%
|
|||||
Investment revenue
|
|
255
|
|
188
|
|
185
|
|
70
|
|
38
|
|
Lending
|
|
113
|
|
111
|
|
97
|
|
16
|
|
16
|
|
Deposit
|
|
103
|
|
111
|
|
121
|
|
(18
|
)
|
(15
|
)
|
Other
|
|
40
|
|
44
|
|
48
|
|
(8
|
)
|
(17
|
)
|
Net operating income
|
1
|
511
|
|
454
|
|
451
|
|
60
|
|
13
|
|
RoTE excluding significant items and UK bank levy (annualised)
(%)
|
|
15.8
|
|
10.9
|
|
|
|
Management
view of adjusted revenue
|
|||||||||||
|
|
Quarter ended
|
|||||||||
|
|
31 Mar
|
31 Dec
|
31 Mar
|
Variance
|
||||||
|
|
2020
|
2019
|
2019
|
1Q20 vs. 1Q19
|
||||||
|
Footnotes
|
$m
|
$m
|
$m
|
$m
|
%
|
|||||
Central Treasury
|
|
699
|
|
(19
|
)
|
269
|
|
430
|
|
>100
|
|
– Balance Sheet Management
|
1
|
829
|
|
450
|
|
608
|
|
221
|
|
36
|
|
– Holdings net interest expanses
|
|
(321
|
)
|
(318
|
)
|
(338
|
)
|
17
|
|
5
|
|
– valuation differences on long-term debt and associated
swaps
|
|
259
|
|
(73
|
)
|
50
|
|
209
|
|
>100
|
|
– other central treasury
|
|
(68
|
)
|
(78
|
)
|
(51
|
)
|
(17
|
)
|
(33
|
)
|
Legacy portfolios
|
|
(91
|
)
|
13
|
|
(70
|
)
|
(21
|
)
|
(30
|
)
|
Other
|
|
14
|
|
(80
|
)
|
(211
|
)
|
225
|
|
>100
|
|
Net operating income
|
2
|
622
|
|
(86
|
)
|
(12
|
)
|
634
|
|
>100
|
|
RoTE excluding significant items and UK bank levy (annualised)
(%)
|
|
0.9
|
|
(6.7
|
)
|
|
|
|
|
Quarter ended
|
Full
year to
|
||||||
|
|
31 Mar
|
31 Dec
|
31 Mar
|
31
Dec
|
||||
|
|
2020
|
2019
|
2019
|
2019
|
||||
|
Footnotes
|
$m
|
$m
|
$m
|
$m
|
||||
Net
interest income
|
|
7,612
|
|
7,654
|
|
7,468
|
|
30,462
|
|
Average
interest-earning assets
|
|
1,991,702
|
|
1,945,596
|
|
1,902,912
|
|
1,922,822
|
|
|
|
%
|
%
|
%
|
%
|
||||
Gross
interest yield
|
1
|
2.55
|
|
2.70
|
|
2.89
|
|
2.84
|
|
Less:
cost of funds
|
1
|
(1.19
|
)
|
(1.34
|
)
|
(1.53
|
)
|
(1.48
|
)
|
Net
interest spread
|
2
|
1.36
|
|
1.36
|
|
1.36
|
|
1.36
|
|
Net
interest margin
|
3
|
1.54
|
|
1.56
|
|
1.59
|
|
1.58
|
|
Cautionary statement regarding forward-looking
statements
|
Investor Relations
|
Media Relations
|
UK
– Richard O’Connor
|
UK
– Heidi Ashley
|
Tel:
+44 (0) 20 7991 6590
|
Tel:
+44 (0) 20 7992 2045
|
|
|
Hong
Kong – Mark Phin
|
Hong
Kong – Patrick Humphris
|
Tel:
+852 2822 4908
|
Tel:
+852 2822 2052
|
Summary consolidated income statement
|
|
Quarter ended
|
|||||
|
31 Mar
|
31 Dec
|
31 Mar
|
|||
|
2020
|
2019
|
2019
|
|||
|
$m
|
$m
|
$m
|
|||
Net
interest income
|
7,612
|
|
7,654
|
|
7,468
|
|
Net fee
income
|
3,123
|
|
2,938
|
|
3,026
|
|
Net
income from financial instruments held for trading or managed on a
fair value basis
|
3,364
|
|
2,354
|
|
2,881
|
|
Net income/(expense) from assets and liabilities of insurance
businesses, including related derivatives, measured at fair value
through profit or loss
|
(3,580
|
)
|
1,160
|
|
1,710
|
|
Changes
in fair value of designated debt and related
derivatives1
|
246
|
|
(59
|
)
|
11
|
|
Changes
in fair value of other financial instruments mandatorily measured
at fair value through profit or loss
|
(373
|
)
|
195
|
|
270
|
|
Gains
less losses from financial investments
|
312
|
|
19
|
|
99
|
|
Net
insurance premium income
|
2,910
|
|
1,589
|
|
3,296
|
|
Other
operating income
|
404
|
|
22
|
|
858
|
|
Total operating income
|
14,018
|
|
15,872
|
|
19,619
|
|
Net
insurance claims and benefits paid and movement in liabilities to
policyholders
|
(332
|
)
|
(2,501
|
)
|
(5,191
|
)
|
Net operating income before change in expected credit losses and
other credit impairment charges2
|
13,686
|
|
13,371
|
|
14,428
|
|
Change
in expected credit losses and other credit impairment
charges
|
(3,026
|
)
|
(733
|
)
|
(585
|
)
|
Net operating income
|
10,660
|
|
12,638
|
|
13,843
|
|
Total
operating expenses excluding goodwill impairment
|
(7,852
|
)
|
(9,704
|
)
|
(8,222
|
)
|
Goodwill
impairment
|
—
|
|
(7,349
|
)
|
—
|
|
Operating profit/(loss)
|
2,808
|
|
(4,415
|
)
|
5,621
|
|
Share
of profit in associates and joint ventures
|
421
|
|
518
|
|
592
|
|
Profit/(loss) before tax
|
3,229
|
|
(3,897
|
)
|
6,213
|
|
Tax
expense
|
(721
|
)
|
(1,127
|
)
|
(1,303
|
)
|
Profit/(loss) after tax
|
2,508
|
|
(5,024
|
)
|
4,910
|
|
Attributable
to:
|
|
|
|
|||
–
ordinary shareholders of the parent company
|
1,785
|
|
(5,509
|
)
|
4,134
|
|
–
preference shareholders of the parent company
|
22
|
|
23
|
|
22
|
|
–
other equity holders
|
441
|
|
176
|
|
410
|
|
–
non-controlling interests
|
260
|
|
286
|
|
344
|
|
Profit/(loss) after tax
|
2,508
|
|
(5,024
|
)
|
4,910
|
|
|
$
|
$
|
$
|
|||
Basic
earnings per share
|
0.09
|
|
(0.27
|
)
|
0.21
|
|
Diluted
earnings per share
|
0.09
|
|
(0.27
|
)
|
0.21
|
|
Dividend
per ordinary share (in respect of the period)3
|
—
|
|
—
|
|
0.10
|
|
|
%
|
%
|
%
|
|||
Return
on average ordinary shareholders’ equity
(annualised)
|
4.4
|
|
(13.3
|
)
|
10.2
|
|
Return
on average tangible equity (annualised)
|
4.2
|
|
5.2
|
|
10.6
|
|
Cost
efficiency ratio
|
57.4
|
|
127.5
|
|
57.0
|
|
Summary consolidated balance sheet
|
|
At
|
|||
|
31 Mar
|
31
Dec
|
||
|
2020
|
2019
|
||
|
$m
|
$m
|
||
Assets
|
|
|
||
Cash
and balances at central banks
|
187,386
|
|
154,099
|
|
Trading
assets
|
215,634
|
|
254,271
|
|
Financial
assets designated and otherwise mandatorily measured at fair value
through profit or loss
|
40,650
|
|
43,627
|
|
Derivatives
|
371,283
|
|
242,995
|
|
Loans
and advances to banks
|
84,547
|
|
69,203
|
|
Loans
and advances to customers1
|
1,040,282
|
|
1,036,743
|
|
Reverse
repurchase agreements – non-trading
|
222,774
|
|
240,862
|
|
Financial
investments
|
446,668
|
|
443,312
|
|
Other
assets
|
308,586
|
|
230,040
|
|
Total assets
|
2,917,810
|
|
2,715,152
|
|
Liabilities and equity
|
|
|
||
Liabilities
|
|
|
||
Deposits
by banks
|
75,504
|
|
59,022
|
|
Customer
accounts
|
1,440,529
|
|
1,439,115
|
|
Repurchase
agreements – non-trading
|
150,243
|
|
140,344
|
|
Trading
liabilities
|
74,410
|
|
83,170
|
|
Financial
liabilities designated at fair value
|
155,184
|
|
164,466
|
|
Derivatives
|
356,616
|
|
239,497
|
|
Debt
securities in issue
|
99,410
|
|
104,555
|
|
Liabilities
under insurance contracts
|
94,979
|
|
97,439
|
|
Other
liabilities
|
272,664
|
|
194,876
|
|
Total liabilities
|
2,719,539
|
|
2,522,484
|
|
Equity
|
|
|
||
Total
shareholders’ equity
|
189,771
|
|
183,955
|
|
Non-controlling
interests
|
8,500
|
|
8,713
|
|
Total equity
|
198,271
|
|
192,668
|
|
Total liabilities and equity
|
2,917,810
|
|
2,715,152
|
|
Credit risk
|
Summary
of credit risk (excluding debt instruments measured at FVOCI) by
stage distribution and ECL coverage by industry sector
at
31
March 2020
|
||||||||||||||||||||||||||||||
|
Gross carrying/nominal amount1
|
|
Allowance for ECL
|
|
ECL coverage %
|
|
||||||||||||||||||||||||
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI2
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI2
|
Total
|
Stage1
|
Stage2
|
Stage3
|
POCI2
|
Total
|
|||||||||||||||
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m |
$m
|
$m
|
$m
|
$m
|
%
|
%
|
%
|
%
|
|||||||||||||||
Loans and advances to customers
|
934,252
|
|
101,714
|
|
14,401
|
|
300
|
|
1,050,667
|
|
(1,498
|
)
|
(3,078
|
)
|
(5,713
|
)
|
(96
|
)
|
(10,385
|
)
|
0.2
|
|
3.0
|
|
39.7
|
|
32.0
|
|
1.0
|
|
Personal
|
395,313
|
|
16,860
|
|
4,839
|
|
—
|
|
417,012
|
|
(708
|
)
|
(1,697
|
)
|
(1,274
|
)
|
—
|
|
(3,679
|
)
|
0.2
|
|
10.1
|
|
26.3
|
|
—
|
|
0.9
|
|
–
Europe
|
175,659
|
|
7,592
|
|
2,319
|
|
—
|
|
185,570
|
|
(132
|
)
|
(820
|
)
|
(659
|
)
|
—
|
|
(1,611
|
)
|
0.1
|
|
10.8
|
|
28.4
|
|
—
|
|
0.9
|
|
of which: UK
|
143,239
|
|
6,111
|
|
1,513
|
|
—
|
|
150,863
|
|
(110
|
)
|
(792
|
)
|
(406
|
)
|
—
|
|
(1,308
|
)
|
0.1
|
|
13.0
|
|
26.8
|
|
—
|
|
0.9
|
|
of which:
UK first lien
mortgages
|
128,177
|
|
1,802
|
|
1,036
|
|
—
|
|
131,015
|
|
(14
|
)
|
(17
|
)
|
(111
|
)
|
—
|
|
(142
|
)
|
—
|
|
0.9
|
|
10.7
|
|
—
|
|
0.1
|
|
of which: UK
other personal
lending
|
15,062
|
|
4,309
|
|
477
|
|
—
|
|
19,848
|
|
(96
|
)
|
(775
|
)
|
(295
|
)
|
—
|
|
(1,166
|
)
|
0.6
|
|
18.0
|
|
61.8
|
|
—
|
|
5.9
|
|
–
Asia
|
169,782
|
|
5,764
|
|
751
|
|
—
|
|
176,297
|
|
(258
|
)
|
(359
|
)
|
(177
|
)
|
—
|
|
(794
|
)
|
0.2
|
|
6.2
|
|
23.6
|
|
—
|
|
0.5
|
|
of which: Hong
Kong
|
117,050
|
|
2,665
|
|
248
|
|
—
|
|
119,963
|
|
(108
|
)
|
(224
|
)
|
(51
|
)
|
—
|
|
(383
|
)
|
0.1
|
|
8.4
|
|
20.6
|
|
—
|
|
0.3
|
|
of which:
Hong Kong
first lien
mortgages
|
86,745
|
|
1,002
|
|
42
|
|
—
|
|
87,789
|
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
of which: Hong
Kong other
personal
lending
|
30,305
|
|
1,663
|
|
206
|
|
—
|
|
32,174
|
|
(107
|
)
|
(224
|
)
|
(51
|
)
|
—
|
|
(382
|
)
|
0.4
|
|
13.5
|
|
24.8
|
|
—
|
|
1.2
|
|
–
MENA
|
5,469
|
|
353
|
|
277
|
|
—
|
|
6,099
|
|
(60
|
)
|
(86
|
)
|
(176
|
)
|
—
|
|
(322
|
)
|
1.1
|
|
24.4
|
|
63.5
|
|
—
|
|
5.3
|
|
–
North America
|
38,996
|
|
2,316
|
|
1,271
|
|
—
|
|
42,583
|
|
(122
|
)
|
(174
|
)
|
(150
|
)
|
—
|
|
(446
|
)
|
0.3
|
|
7.5
|
|
11.8
|
|
—
|
|
1.0
|
|
–
Latin America
|
5,407
|
|
835
|
|
221
|
|
—
|
|
6,463
|
|
(136
|
)
|
(258
|
)
|
(112
|
)
|
—
|
|
(506
|
)
|
2.5
|
|
30.9
|
|
50.7
|
|
—
|
|
7.8
|
|
Corporate
and
commercial
|
469,067
|
|
79,770
|
|
9,267
|
|
299
|
|
558,403
|
|
(742
|
)
|
(1,334
|
)
|
(4,321
|
)
|
(95
|
)
|
(6,492
|
)
|
0.2
|
|
1.7
|
|
46.6
|
|
31.8
|
|
1.2
|
|
–
Europe
|
152,308
|
|
18,765
|
|
4,563
|
|
120
|
|
175,756
|
|
(274
|
)
|
(513
|
)
|
(1,508
|
)
|
(43
|
)
|
(2,338
|
)
|
0.2
|
|
2.7
|
|
33.0
|
|
35.8
|
|
1.3
|
|
of which: UK
|
107,267
|
|
14,144
|
|
3,263
|
|
73
|
|
124,747
|
|
(226
|
)
|
(447
|
)
|
(954
|
)
|
(32
|
)
|
(1,659
|
)
|
0.2
|
|
3.2
|
|
29.2
|
|
43.8
|
|
1.3
|
|
–
Asia
|
232,818
|
|
40,215
|
|
2,081
|
|
132
|
|
275,246
|
|
(248
|
)
|
(330
|
)
|
(1,422
|
)
|
(35
|
)
|
(2,035
|
)
|
0.1
|
|
0.8
|
|
68.3
|
|
26.5
|
|
0.7
|
|
of which: Hong Kong
|
147,390
|
|
24,993
|
|
616
|
|
49
|
|
173,048
|
|
(122
|
)
|
(193
|
)
|
(408
|
)
|
(25
|
)
|
(748
|
)
|
0.1
|
|
0.8
|
|
66.2
|
|
51.0
|
|
0.4
|
|
–
MENA
|
17,272
|
|
5,658
|
|
1,853
|
|
18
|
|
24,801
|
|
(61
|
)
|
(164
|
)
|
(1,048
|
)
|
(12
|
)
|
(1,285
|
)
|
0.4
|
|
2.9
|
|
56.6
|
|
66.7
|
|
5.2
|
|
–
North America
|
55,380
|
|
13,737
|
|
483
|
|
—
|
|
69,600
|
|
(60
|
)
|
(266
|
)
|
(172
|
)
|
—
|
|
(498
|
)
|
0.1
|
|
1.9
|
|
35.6
|
|
—
|
|
0.7
|
|
–
Latin America
|
11,289
|
|
1,395
|
|
287
|
|
29
|
|
13,000
|
|
(99
|
)
|
(61
|
)
|
(171
|
)
|
(5
|
)
|
(336
|
)
|
0.9
|
|
4.4
|
|
59.6
|
|
17.2
|
|
2.6
|
|
Non-bank
financial
institutions
|
69,872
|
|
5,084
|
|
295
|
|
1
|
|
75,252
|
|
(48
|
)
|
(47
|
)
|
(118
|
)
|
(1
|
)
|
(214
|
)
|
0.1
|
|
0.9
|
|
40.0
|
|
100.0
|
|
0.3
|
|
–
Europe
|
27,709
|
|
1,014
|
|
227
|
|
1
|
|
28,951
|
|
(16
|
)
|
(16
|
)
|
(75
|
)
|
(1
|
)
|
(108
|
)
|
0.1
|
|
1.6
|
|
33.0
|
|
100.0
|
|
0.4
|
|
of which: UK
|
20,184
|
|
874
|
|
105
|
|
—
|
|
21,163
|
|
(12
|
)
|
(14
|
)
|
(5
|
)
|
—
|
|
(31
|
)
|
0.1
|
|
1.6
|
|
4.8
|
|
—
|
|
0.1
|
|
–
Asia
|
29,178
|
|
3,669
|
|
18
|
|
—
|
|
32,865
|
|
(24
|
)
|
(26
|
)
|
(18
|
)
|
—
|
|
(68
|
)
|
0.1
|
|
0.7
|
|
100.0
|
|
—
|
|
0.2
|
|
of which: Hong Kong
|
17,599
|
|
3,010
|
|
18
|
|
—
|
|
20,627
|
|
(9
|
)
|
(20
|
)
|
(18
|
)
|
—
|
|
(47
|
)
|
0.1
|
|
0.7
|
|
100.0
|
|
—
|
|
0.2
|
|
–
MENA
|
284
|
|
51
|
|
34
|
|
—
|
|
369
|
|
—
|
|
(1
|
)
|
(12
|
)
|
—
|
|
(13
|
)
|
—
|
|
2.0
|
|
35.3
|
|
—
|
|
3.5
|
|
–
North America
|
11,314
|
|
313
|
|
6
|
|
—
|
|
11,633
|
|
(4
|
)
|
(3
|
)
|
(5
|
)
|
—
|
|
(12
|
)
|
—
|
|
1.0
|
|
83.3
|
|
—
|
|
0.1
|
|
–
Latin America
|
1,387
|
|
37
|
|
10
|
|
—
|
|
1,434
|
|
(4
|
)
|
(1
|
)
|
(8
|
)
|
—
|
|
(13
|
)
|
0.3
|
|
2.7
|
|
80.0
|
|
—
|
|
0.9
|
|
Loans and advances to banks
|
84,208
|
|
353
|
|
—
|
|
—
|
|
84,561
|
|
(13
|
)
|
(1
|
)
|
—
|
|
—
|
|
(14
|
)
|
—
|
|
0.3
|
|
—
|
|
—
|
|
—
|
|
Other financial assets at amortised cost
|
701,322
|
|
3,078
|
|
149
|
|
1
|
|
704,550
|
|
(48
|
)
|
(74
|
)
|
(47
|
)
|
—
|
|
(169
|
)
|
—
|
|
2.4
|
|
31.5
|
|
—
|
|
—
|
|
Loan and other credit-related commitments
|
586,262
|
|
27,208
|
|
831
|
|
1
|
|
614,302
|
|
(152
|
)
|
(220
|
)
|
(112
|
)
|
—
|
|
(484
|
)
|
—
|
|
0.8
|
|
13.5
|
|
—
|
|
0.1
|
|
– personal
|
223,368
|
|
1,712
|
|
191
|
|
—
|
|
225,271
|
|
(13
|
)
|
(1
|
)
|
—
|
|
—
|
|
(14
|
)
|
—
|
|
0.1
|
|
—
|
|
—
|
|
—
|
|
–
corporate and commercial
|
222,187
|
|
24,443
|
|
637
|
|
1
|
|
247,268
|
|
(131
|
)
|
(218
|
)
|
(112
|
)
|
—
|
|
(461
|
)
|
0.1
|
|
0.9
|
|
17.6
|
|
—
|
|
0.2
|
|
– financial
|
140,707
|
|
1,053
|
|
3
|
|
—
|
|
141,763
|
|
(8
|
)
|
(1
|
)
|
—
|
|
—
|
|
(9
|
)
|
—
|
|
0.1
|
|
—
|
|
—
|
|
—
|
|
Financial guarantees
|
16,478
|
|
2,651
|
|
148
|
|
4
|
|
19,281
|
|
(19
|
)
|
(33
|
)
|
(6
|
)
|
—
|
|
(58
|
)
|
0.1
|
|
1.2
|
|
4.1
|
|
—
|
|
0.3
|
|
– personal
|
769
|
|
1
|
|
1
|
|
—
|
|
771
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
–
corporate and commercial
|
11,597
|
|
2,344
|
|
142
|
|
4
|
|
14,087
|
|
(17
|
)
|
(32
|
)
|
(5
|
)
|
—
|
|
(54
|
)
|
0.1
|
|
1.4
|
|
3.5
|
|
—
|
|
0.4
|
|
– financial
|
4,112
|
|
306
|
|
5
|
|
—
|
|
4,423
|
|
(2
|
)
|
(1
|
)
|
(1
|
)
|
—
|
|
(4
|
)
|
—
|
|
0.3
|
|
20.0
|
|
—
|
|
0.1
|
|
At 31 Mar 2020
|
2,322,522
|
|
135,004
|
|
15,529
|
|
306
|
|
2,473,361
|
|
(1,730
|
)
|
(3,406
|
)
|
(5,878
|
)
|
(96
|
)
|
(11,110
|
)
|
0.1
|
|
2.5
|
|
37.9
|
|
31.4
|
|
0.4
|
|
Summary
of credit risk (excluding debt instruments measured at FVOCI) by
stage distribution and ECL coverage by industry sector
at
31
December 2019
|
||||||||||||||||||||||||||||||
|
Gross
carrying/nominal amount1
|
|
Allowance for ECL
|
|
ECL coverage %
|
|
||||||||||||||||||||||||
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI2
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI2
|
Total
|
Stage 1
|
Stage 2
|
Stage 3
|
POCI2
|
Total
|
|||||||||||||||
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
%
|
%
|
%
|
%
|
%
|
|||||||||||||||
Loans and advances to customers
|
951,583
|
|
80,182
|
|
13,378
|
|
332
|
|
1,045,475
|
|
(1,297
|
)
|
(2,284
|
)
|
(5,052
|
)
|
(99
|
)
|
(8,732
|
)
|
0.1
|
|
2.8
|
|
37.8
|
|
29.8
|
|
0.8
|
|
Personal
|
413,669
|
|
15,751
|
|
4,851
|
|
—
|
|
434,271
|
|
(583
|
)
|
(1,336
|
)
|
(1,215
|
)
|
—
|
|
(3,134
|
)
|
0.1
|
|
8.5
|
|
25.0
|
|
—
|
|
0.7
|
|
–
Europe
|
186,561
|
|
6,854
|
|
2,335
|
|
—
|
|
195,750
|
|
(112
|
)
|
(538
|
)
|
(578
|
)
|
—
|
|
(1,228
|
)
|
0.1
|
|
7.8
|
|
24.8
|
|
—
|
|
0.6
|
|
of which: UK
|
153,313
|
|
5,455
|
|
1,612
|
|
—
|
|
160,380
|
|
(104
|
)
|
(513
|
)
|
(370
|
)
|
—
|
|
(987
|
)
|
0.1
|
|
9.4
|
|
23.0
|
|
—
|
|
0.6
|
|
of which:
UK first lien
mortgages
|
134,914
|
|
1,890
|
|
1,181
|
|
—
|
|
137,985
|
|
(16
|
)
|
(19
|
)
|
(124
|
)
|
—
|
|
(159
|
)
|
—
|
|
1.0
|
|
10.5
|
|
—
|
|
0.1
|
|
of which: UK
other personal
lending
|
18,399
|
|
3,565
|
|
431
|
|
—
|
|
22,395
|
|
(88
|
)
|
(494
|
)
|
(246
|
)
|
—
|
|
(828
|
)
|
0.5
|
|
13.9
|
|
57.1
|
|
—
|
|
3.7
|
|
–
Asia
|
173,523
|
|
5,855
|
|
717
|
|
—
|
|
180,095
|
|
(223
|
)
|
(339
|
)
|
(170
|
)
|
—
|
|
(732
|
)
|
0.1
|
|
5.8
|
|
23.7
|
|
—
|
|
0.4
|
|
of which: Hong
Kong
|
117,013
|
|
2,751
|
|
189
|
|
—
|
|
119,953
|
|
(90
|
)
|
(220
|
)
|
(44
|
)
|
—
|
|
(354
|
)
|
0.1
|
|
8.0
|
|
23.3
|
|
—
|
|
0.3
|
|
of which:
Hong Kong
first lien
mortgages
|
85,732
|
|
1,116
|
|
43
|
|
—
|
|
86,891
|
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
of which: Hong
Kong other
personal
lending
|
31,281
|
|
1,635
|
|
146
|
|
—
|
|
33,062
|
|
(89
|
)
|
(220
|
)
|
(44
|
)
|
—
|
|
(353
|
)
|
0.3
|
|
13.5
|
|
30.1
|
|
—
|
|
1.1
|
|
–
MENA
|
5,671
|
|
247
|
|
299
|
|
—
|
|
6,217
|
|
(50
|
)
|
(58
|
)
|
(189
|
)
|
—
|
|
(297
|
)
|
0.9
|
|
23.5
|
|
63.2
|
|
—
|
|
4.8
|
|
–
North America
|
41,148
|
|
1,930
|
|
1,238
|
|
—
|
|
44,316
|
|
(56
|
)
|
(119
|
)
|
(141
|
)
|
—
|
|
(316
|
)
|
0.1
|
|
6.2
|
|
11.4
|
|
—
|
|
0.7
|
|
–
Latin America
|
6,766
|
|
865
|
|
262
|
|
—
|
|
7,893
|
|
(142
|
)
|
(282
|
)
|
(137
|
)
|
—
|
|
(561
|
)
|
2.1
|
|
32.6
|
|
52.3
|
|
—
|
|
7.1
|
|
Corporate
and
commercial
|
472,253
|
|
59,599
|
|
8,315
|
|
332
|
|
540,499
|
|
(672
|
)
|
(920
|
)
|
(3,747
|
)
|
(99
|
)
|
(5,438
|
)
|
0.1
|
|
1.5
|
|
45.1
|
|
29.8
|
|
1.0
|
|
–
Europe
|
151,378
|
|
19,191
|
|
4,517
|
|
129
|
|
175,215
|
|
(288
|
)
|
(447
|
)
|
(1,524
|
)
|
(45
|
)
|
(2,304
|
)
|
0.2
|
|
2.3
|
|
33.7
|
|
34.9
|
|
1.3
|
|
of which: UK
|
108,052
|
|
15,346
|
|
3,283
|
|
79
|
|
126,760
|
|
(234
|
)
|
(379
|
)
|
(984
|
)
|
(32
|
)
|
(1,629
|
)
|
0.2
|
|
2.5
|
|
30.0
|
|
40.5
|
|
1.3
|
|
–
Asia
|
237,553
|
|
28,607
|
|
1,401
|
|
148
|
|
267,709
|
|
(208
|
)
|
(237
|
)
|
(966
|
)
|
(38
|
)
|
(1,449
|
)
|
0.1
|
|
0.8
|
|
69.0
|
|
25.7
|
|
0.5
|
|
of which: Hong
Kong
|
147,162
|
|
20,515
|
|
655
|
|
48
|
|
168,380
|
|
(111
|
)
|
(156
|
)
|
(455
|
)
|
(28
|
)
|
(750
|
)
|
0.1
|
|
0.8
|
|
69.5
|
|
58.3
|
|
0.4
|
|
–
MENA
|
18,476
|
|
3,302
|
|
1,651
|
|
18
|
|
23,447
|
|
(55
|
)
|
(86
|
)
|
(934
|
)
|
(12
|
)
|
(1,087
|
)
|
0.3
|
|
2.6
|
|
56.6
|
|
66.7
|
|
4.6
|
|
–
North America
|
51,953
|
|
7,274
|
|
453
|
|
—
|
|
59,680
|
|
(43
|
)
|
(94
|
)
|
(137
|
)
|
—
|
|
(274
|
)
|
0.1
|
|
1.3
|
|
30.2
|
|
—
|
|
0.5
|
|
–
Latin America
|
12,893
|
|
1,225
|
|
293
|
|
37
|
|
14,448
|
|
(78
|
)
|
(56
|
)
|
(186
|
)
|
(4
|
)
|
(324
|
)
|
0.6
|
|
4.6
|
|
63.5
|
|
10.8
|
|
2.2
|
|
Non-bank
financial
institutions
|
65,661
|
|
4,832
|
|
212
|
|
—
|
|
70,705
|
|
(42
|
)
|
(28
|
)
|
(90
|
)
|
—
|
|
(160
|
)
|
0.1
|
|
0.6
|
|
42.5
|
|
—
|
|
0.2
|
|
–
Europe
|
25,345
|
|
1,000
|
|
153
|
|
—
|
|
26,498
|
|
(19
|
)
|
(9
|
)
|
(53
|
)
|
—
|
|
(81
|
)
|
0.1
|
|
0.9
|
|
34.6
|
|
—
|
|
0.3
|
|
of which: UK
|
17,613
|
|
874
|
|
58
|
|
—
|
|
18,545
|
|
(14
|
)
|
(7
|
)
|
(5
|
)
|
—
|
|
(26
|
)
|
0.1
|
|
0.8
|
|
8.6
|
|
—
|
|
0.1
|
|
–
Asia
|
28,530
|
|
3,607
|
|
19
|
|
—
|
|
32,156
|
|
(17
|
)
|
(16
|
)
|
(19
|
)
|
—
|
|
(52
|
)
|
0.1
|
|
0.4
|
|
100.0
|
|
—
|
|
0.2
|
|
of which: Hong
Kong
|
16,589
|
|
3,168
|
|
19
|
|
—
|
|
19,776
|
|
(6
|
)
|
(15
|
)
|
(19
|
)
|
—
|
|
(40
|
)
|
—
|
|
0.5
|
|
100.0
|
|
—
|
|
0.2
|
|
–
MENA
|
254
|
|
—
|
|
34
|
|
—
|
|
288
|
|
—
|
|
—
|
|
(13
|
)
|
—
|
|
(13
|
)
|
—
|
|
—
|
|
38.2
|
|
—
|
|
4.5
|
|
–
North America
|
9,852
|
|
220
|
|
6
|
|
—
|
|
10,078
|
|
(3
|
)
|
(3
|
)
|
(5
|
)
|
—
|
|
(11
|
)
|
—
|
|
1.4
|
|
83.3
|
|
—
|
|
0.1
|
|
–
Latin America
|
1,680
|
|
5
|
|
—
|
|
—
|
|
1,685
|
|
(3
|
)
|
—
|
|
—
|
|
—
|
|
(3
|
)
|
0.2
|
|
—
|
|
—
|
|
—
|
|
0.2
|
|
Loans and advances to banks
|
67,769
|
|
1,450
|
|
—
|
|
—
|
|
69,219
|
|
(14
|
)
|
(2
|
)
|
—
|
|
—
|
|
(16
|
)
|
—
|
|
0.1
|
|
—
|
|
—
|
|
—
|
|
Other financial assets at amortised cost
|
613,200
|
|
1,827
|
|
151
|
|
1
|
|
615,179
|
|
(38
|
)
|
(38
|
)
|
(42
|
)
|
—
|
|
(118
|
)
|
—
|
|
2.1
|
|
27.8
|
|
—
|
|
—
|
|
Loan and other credit-related commitments
|
577,631
|
|
21,618
|
|
771
|
|
9
|
|
600,029
|
|
(137
|
)
|
(133
|
)
|
(59
|
)
|
—
|
|
(329
|
)
|
—
|
|
0.6
|
|
7.7
|
|
—
|
|
0.1
|
|
– personal
|
221,490
|
|
1,630
|
|
194
|
|
—
|
|
223,314
|
|
(13
|
)
|
(2
|
)
|
—
|
|
—
|
|
(15
|
)
|
—
|
|
0.1
|
|
—
|
|
—
|
|
—
|
|
–
corporate and commercial
|
259,138
|
|
18,804
|
|
573
|
|
9
|
|
278,524
|
|
(118
|
)
|
(130
|
)
|
(59
|
)
|
—
|
|
(307
|
)
|
—
|
|
0.7
|
|
10.3
|
|
—
|
|
0.1
|
|
– financial
|
97,003
|
|
1,184
|
|
4
|
|
—
|
|
98,191
|
|
(6
|
)
|
(1
|
)
|
—
|
|
—
|
|
(7
|
)
|
—
|
|
0.1
|
|
—
|
|
—
|
|
—
|
|
Financial guarantees
|
17,684
|
|
2,340
|
|
186
|
|
4
|
|
20,214
|
|
(16
|
)
|
(22
|
)
|
(10
|
)
|
—
|
|
(48
|
)
|
0.1
|
|
0.9
|
|
5.4
|
|
—
|
|
0.2
|
|
– personal
|
802
|
|
1
|
|
1
|
|
—
|
|
804
|
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
0.1
|
|
—
|
|
—
|
|
—
|
|
0.1
|
|
–
corporate and commercial
|
12,540
|
|
2,076
|
|
184
|
|
4
|
|
14,804
|
|
(14
|
)
|
(21
|
)
|
(9
|
)
|
—
|
|
(44
|
)
|
0.1
|
|
1.0
|
|
4.9
|
|
—
|
|
0.3
|
|
– financial
|
4,342
|
|
263
|
|
1
|
|
—
|
|
4,606
|
|
(1
|
)
|
(1
|
)
|
(1
|
)
|
—
|
|
(3
|
)
|
—
|
|
0.4
|
|
100.0
|
|
—
|
|
0.1
|
|
At 31 Dec 2019
|
2,227,867
|
|
107,417
|
|
14,486
|
|
346
|
|
2,350,116
|
|
(1,502
|
)
|
(2,479
|
)
|
(5,163
|
)
|
(99
|
)
|
(9,243
|
)
|
0.1
|
|
2.3
|
|
35.6
|
|
28.6
|
|
0.4
|
|
Impact
of Covid-19 on allowance for ECL
|
||||||||
|
At 31 March 2020
|
At 31 Dec 2019
|
||||||
|
Consensus probability-weighted ECL2
|
Covid-19 scenarios and other management adjustments2
|
Allowance for ECL
|
Allowance for ECL
|
||||
|
$m
|
$m
|
$m
|
$m
|
||||
Retail
|
2,961
|
|
630
|
|
3,591
|
|
3,118
|
|
Wholesale
|
6,396
|
|
882
|
|
7,278
|
|
5,981
|
|
Other1
|
241
|
|
—
|
|
241
|
|
144
|
|
Total
|
9,598
|
|
1,512
|
|
11,110
|
|
9,243
|
|
Forecast
range of quarterly worst point of economic measures for key markets
in 2020 to 2021
|
|||||||||
|
Hong Kong
|
UK
|
US
|
||||||
|
1Q201
|
Worst point
|
1Q201
|
Worst point
|
1Q201
|
Worst point
|
|||
|
%
|
%
|
%
|
%
|
%
|
%
|
|||
GDP growth rate (%) – low point
|
(7.5
|
)
|
(7.5)–(8.6)
|
0.6
|
|
(13.8)–(14.9)
|
1.2
|
|
(8.9)–(11.8)
|
Unemployment (%) – high point
|
3.5
|
|
3.5–5.7
|
4.0
|
|
6.0–8.5
|
3.6
|
|
11.3–14.2
|
House price growth annualised (%) – low point
|
(6.2
|
)
|
(6.2)–(26.3)
|
1.9
|
|
(5.6)–(15.7)
|
4.3
|
|
(2.9)–(10.1)
|
Capital adequacy
|
Capital
adequacy metrics
|
||||
|
At
|
|||
|
31 Mar
|
31 Dec
|
||
|
2020
|
2019
|
||
Risk-weighted assets ('RWAs') ($bn)
|
|
|
||
Credit risk (excluding counterparty credit risk)
|
685.6
|
|
676.6
|
|
Counterparty credit risk
|
47.5
|
|
44.1
|
|
Market risk
|
34.8
|
|
29.9
|
|
Operational risk
|
89.2
|
|
92.8
|
|
Total risk-weighted assets
|
857.1
|
|
843.4
|
|
Capital on a transitional basis ($bn)
|
|
|
||
Common equity tier 1 (‘CET1’) capital
|
125.2
|
|
124.0
|
|
Tier 1 capital
|
149.2
|
|
148.4
|
|
Total capital
|
174.0
|
|
172.2
|
|
Capital ratios on a transitional basis (%)
|
|
|
||
CET1
|
14.6
|
|
14.7
|
|
Tier 1
|
17.4
|
|
17.6
|
|
Total capital
|
20.3
|
|
20.4
|
|
Capital on an end point basis ($bn)
|
|
|
||
Common equity tier 1 (‘CET1’) capital
|
125.2
|
|
124.0
|
|
Tier 1 capital
|
146.1
|
|
144.8
|
|
Total capital
|
161.1
|
|
159.3
|
|
Capital ratios on an end point basis (%)
|
|
|
||
CET1
|
14.6
|
|
14.7
|
|
Tier 1
|
17.0
|
|
17.2
|
|
Total capital
|
18.8
|
|
18.9
|
|
Liquidity coverage ratio (‘LCR’)
|
|
|
||
Total high-quality liquid assets ($bn)
|
617.2
|
|
601.4
|
|
Total net cash outflow ($bn)
|
395.0
|
|
400.5
|
|
LCR ratio (%)
|
156.3
|
|
150.2
|
Leverage
|
Leverage
ratio
|
||||||
|
|
|
At
|
|||
|
|
|
31 Mar
|
31 Dec
|
||
|
|
|
2020
|
2019
|
||
Ref
|
|
Footnotes
|
$bn
|
$bn
|
||
20
|
Tier
1 capital
|
|
146.1
|
|
144.8
|
|
21
|
Total
leverage ratio exposure
|
|
2,782.7
|
|
2,726.5
|
|
|
|
|
%
|
%
|
||
22
|
Leverage ratio
|
|
5.3
|
|
5.3
|
|
EU-23
|
Choice
of transitional arrangements for the definition of the capital
measure
|
|
Fully phased-in
|
Fully phased-in
|
||
|
UK leverage ratio exposure – quarterly average
|
1
|
2,585.2
|
|
2,535.4
|
|
|
|
|
%
|
%
|
||
|
UK leverage ratio – quarterly average
|
1
|
5.6
|
|
5.8
|
|
|
UK leverage ratio – quarter end
|
1
|
5.7
|
|
5.7
|
|
Risk-weighted assets
|
RWAs
by global business
|
||||||||||||
|
RBWM
|
CMB
|
GB&M
|
GPB
|
CorporateCentre
|
Total
|
||||||
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
||||||
Credit
risk
|
102.2
|
|
291.8
|
|
165.3
|
|
11.2
|
|
115.1
|
|
685.6
|
|
Counterparty
credit risk
|
—
|
|
—
|
|
45.9
|
|
0.2
|
|
1.4
|
|
47.5
|
|
Market
risk
|
—
|
|
—
|
|
28.3
|
|
—
|
|
6.5
|
|
34.8
|
|
Operational
risk
|
29.1
|
|
25.0
|
|
29.6
|
|
2.7
|
|
2.8
|
|
89.2
|
|
At 31 Mar 2020
|
131.3
|
|
316.8
|
|
269.1
|
|
14.1
|
|
125.8
|
|
857.1
|
|
|
|
|
|
|
|
|
||||||
Credit risk
|
103.8
|
|
290.8
|
|
161.1
|
|
11.0
|
|
109.9
|
|
676.6
|
|
Counterparty credit risk
|
—
|
|
—
|
|
42.7
|
|
0.2
|
|
1.2
|
|
44.1
|
|
Market risk
|
—
|
|
—
|
|
23.6
|
|
—
|
|
6.3
|
|
29.9
|
|
Operational risk
|
30.2
|
|
25.9
|
|
30.8
|
|
2.8
|
|
3.1
|
|
92.8
|
|
At 31 Dec 2019
|
134.0
|
|
316.7
|
|
258.2
|
|
14.0
|
|
120.5
|
|
843.4
|
|
RWA
movement by global business by key driver
|
||||||||||||||
|
Credit risk, counterparty credit risk and operational
risk
|
|
|
|||||||||||
|
RBWM
|
CMB
|
GB&M
|
GPB
|
Corporate
Centre
|
Market risk
|
Total RWAs
|
|||||||
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
|||||||
RWAs at 1 Jan 2020
|
134.0
|
|
316.7
|
|
234.6
|
|
14.0
|
|
114.2
|
|
29.9
|
|
843.4
|
|
Asset size
|
0.7
|
|
8.5
|
|
15.0
|
|
0.3
|
|
6.7
|
|
4.6
|
|
35.8
|
|
Asset quality
|
0.3
|
|
2.5
|
|
2.1
|
|
—
|
|
(0.6
|
)
|
—
|
|
4.3
|
|
Model updates
|
0.4
|
|
0.1
|
|
(0.6
|
)
|
—
|
|
—
|
|
—
|
|
(0.1
|
)
|
Methodology
and policy
|
0.6
|
|
1.0
|
|
(3.3
|
)
|
—
|
|
1.4
|
|
0.3
|
|
—
|
|
Foreign exchange movements
|
(4.7
|
)
|
(12.0
|
)
|
(7.0
|
)
|
(0.2
|
)
|
(2.4
|
)
|
—
|
|
(26.3
|
)
|
Total RWA movement
|
(2.7
|
)
|
0.1
|
|
6.2
|
|
0.1
|
|
5.1
|
|
4.9
|
|
13.7
|
|
RWAs at 31 Mar 2020
|
131.3
|
|
316.8
|
|
240.8
|
|
14.1
|
|
119.3
|
|
34.8
|
|
857.1
|
|
Summary information – global businesses
|
Reconciliation
of reported results to adjusted results – global
businesses
|
|||||||||||||
|
|
Quarter ended 31 Mar 2020
|
|||||||||||
|
|
Retail Bankingand Wealth Management
|
CommercialBanking
|
Global Bankingand Markets
|
Global PrivateBanking
|
Corporate Centre
|
Total
|
||||||
|
Footnotes
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||||||
Revenue
|
1
|
|
|
|
|
|
|
||||||
Reported
|
|
4,862
|
|
3,662
|
|
3,851
|
|
511
|
|
800
|
|
13,686
|
|
Significant
items
|
|
7
|
|
—
|
|
(188
|
)
|
—
|
|
(178
|
)
|
(359
|
)
|
–
disposals, acquisitions and investment in new
businesses
|
|
7
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7
|
|
–
fair value movement on financial instruments
|
2
|
—
|
|
—
|
|
(188
|
)
|
—
|
|
(169
|
)
|
(357
|
)
|
–
restructuring and other related costs
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(9
|
)
|
(9
|
)
|
Adjusted
|
|
4,869
|
|
3,662
|
|
3,663
|
|
511
|
|
622
|
|
13,327
|
|
ECL
|
|
|
|
|
|
|
|
||||||
Reported
|
|
(1,059
|
)
|
(1,374
|
)
|
(543
|
)
|
(49
|
)
|
(1
|
)
|
(3,026
|
)
|
Adjusted
|
|
(1,059
|
)
|
(1,374
|
)
|
(543
|
)
|
(49
|
)
|
(1
|
)
|
(3,026
|
)
|
Operating expenses
|
|
|
|
|
|
|
|
||||||
Reported
|
|
(3,456
|
)
|
(1,679
|
)
|
(2,313
|
)
|
(342
|
)
|
(62
|
)
|
(7,852
|
)
|
Significant
items
|
|
7
|
|
2
|
|
16
|
|
1
|
|
146
|
|
172
|
|
–
customer redress programmes
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
–
restructuring and other related costs
|
|
6
|
|
2
|
|
14
|
|
1
|
|
147
|
|
170
|
|
–
settlements and provisions in connection with legal and regulatory
matters
|
|
—
|
|
—
|
|
2
|
|
—
|
|
(1
|
)
|
1
|
|
Adjusted
|
|
(3,449
|
)
|
(1,677
|
)
|
(2,297
|
)
|
(341
|
)
|
84
|
|
(7,680
|
)
|
Share of profit in associates and joint ventures
|
|
|
|
|
|
|
|
||||||
Reported
|
|
(4
|
)
|
—
|
|
—
|
|
—
|
|
425
|
|
421
|
|
Adjusted
|
|
(4
|
)
|
—
|
|
—
|
|
—
|
|
425
|
|
421
|
|
Profit before tax
|
|
|
|
|
|
|
|
||||||
Reported
|
|
343
|
|
609
|
|
995
|
|
120
|
|
1,162
|
|
3,229
|
|
Significant
items
|
|
14
|
|
2
|
|
(172
|
)
|
1
|
|
(32
|
)
|
(187
|
)
|
–
revenue
|
|
7
|
|
—
|
|
(188
|
)
|
—
|
|
(178
|
)
|
(359
|
)
|
–
operating expenses
|
|
7
|
|
2
|
|
16
|
|
1
|
|
146
|
|
172
|
|
Adjusted
|
|
357
|
|
611
|
|
823
|
|
121
|
|
1,130
|
|
3,042
|
|
Loans and advances to customers (net)
|
|
|
|
|
|
|
|
||||||
Reported
|
|
378,537
|
|
350,507
|
|
262,225
|
|
47,037
|
|
1,976
|
|
1,040,282
|
|
Adjusted
|
|
378,537
|
|
350,507
|
|
262,225
|
|
47,037
|
|
1,976
|
|
1,040,282
|
|
Customer accounts
|
|
|
|
|
|
|
|
||||||
Reported
|
|
683,033
|
|
377,639
|
|
307,458
|
|
64,677
|
|
7,722
|
|
1,440,529
|
|
Adjusted
|
|
683,033
|
|
377,639
|
|
307,458
|
|
64,677
|
|
7,722
|
|
1,440,529
|
|
Reconciliation
of reported results to adjusted results – global businesses
(continued)
|
|||||||||||||
|
|
Quarter ended 31 Dec 2019
|
|||||||||||
|
|
Retail Bankingand Wealth Management
|
CommercialBanking
|
Global
Banking
and
Markets
|
Global PrivateBanking
|
Corporate Centre
|
Total
|
||||||
|
Footnotes
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||||||
Revenue
|
1
|
|
|
|
|
|
|
||||||
Reported
|
|
5,758
|
|
3,687
|
|
3,697
|
|
452
|
|
(223
|
)
|
13,371
|
|
Currency translation
|
|
(24
|
)
|
(13
|
)
|
(21
|
)
|
2
|
|
(10
|
)
|
(66
|
)
|
Significant items
|
|
94
|
|
(3
|
)
|
43
|
|
—
|
|
147
|
|
281
|
|
–
customer redress programmes
|
|
47
|
|
(2
|
)
|
—
|
|
—
|
|
—
|
|
45
|
|
–
disposals, acquisitions and investment in new
businesses
|
|
48
|
|
—
|
|
—
|
|
—
|
|
7
|
|
55
|
|
– fair value movements on financial instruments
|
2
|
—
|
|
—
|
|
43
|
|
—
|
|
133
|
|
176
|
|
– currency translation on significant items
|
|
(1
|
)
|
(1
|
)
|
—
|
|
—
|
|
7
|
|
5
|
|
Adjusted
|
|
5,828
|
|
3,671
|
|
3,719
|
|
454
|
|
(86
|
)
|
13,586
|
|
ECL
|
|
|
|
|
|
|
|
||||||
Reported
|
|
(401
|
)
|
(277
|
)
|
(32
|
)
|
3
|
|
(26
|
)
|
(733
|
)
|
Currency translation
|
|
8
|
|
2
|
|
(1
|
)
|
—
|
|
2
|
|
11
|
|
Adjusted
|
|
(393
|
)
|
(275
|
)
|
(33
|
)
|
3
|
|
(24
|
)
|
(722
|
)
|
Operating expenses
|
|
|
|
|
|
|
|
||||||
Reported
|
|
(3,824
|
)
|
(4,740
|
)
|
(6,484
|
)
|
(811
|
)
|
(1,194
|
)
|
(17,053
|
)
|
Currency translation
|
|
25
|
|
12
|
|
14
|
|
2
|
|
1
|
|
54
|
|
Significant items
|
|
273
|
|
2,978
|
|
4,056
|
|
438
|
|
211
|
|
7,956
|
|
–
costs of structural reform
|
3
|
—
|
|
—
|
|
5
|
|
—
|
|
27
|
|
32
|
|
–
customer redress programmes
|
|
181
|
|
2
|
|
—
|
|
—
|
|
—
|
|
183
|
|
–
goodwill impairment
|
|
—
|
|
2,956
|
|
3,962
|
|
431
|
|
—
|
|
7,349
|
|
–
restructuring and other related costs
|
|
98
|
|
24
|
|
88
|
|
12
|
|
178
|
|
400
|
|
–
settlements and provisions in connection with legal and regulatory
matters
|
|
—
|
|
—
|
|
2
|
|
(4
|
)
|
7
|
|
5
|
|
–
currency translation on significant items
|
|
(6
|
)
|
(4
|
)
|
(1
|
)
|
(1
|
)
|
(1
|
)
|
(13
|
)
|
Adjusted
|
|
(3,526
|
)
|
(1,750
|
)
|
(2,414
|
)
|
(371
|
)
|
(982
|
)
|
(9,043
|
)
|
Share of profit in associates and joint ventures
|
|
|
|
|
|
|
|
||||||
Reported
|
|
4
|
|
—
|
|
—
|
|
—
|
|
514
|
|
518
|
|
Currency translation
|
|
1
|
|
—
|
|
—
|
|
—
|
|
3
|
|
4
|
|
Adjusted
|
|
5
|
|
—
|
|
—
|
|
—
|
|
517
|
|
522
|
|
Profit/(loss) before tax
|
|
|
|
|
|
|
|
||||||
Reported
|
|
1,537
|
|
(1,330
|
)
|
(2,819
|
)
|
(356
|
)
|
(929
|
)
|
(3,897
|
)
|
Currency translation
|
|
10
|
|
1
|
|
(8
|
)
|
4
|
|
(4
|
)
|
3
|
|
Significant items
|
|
367
|
|
2,975
|
|
4,099
|
|
438
|
|
358
|
|
8,237
|
|
– revenue
|
|
94
|
|
(3
|
)
|
43
|
|
—
|
|
147
|
|
281
|
|
– operating expenses
|
|
273
|
|
2,978
|
|
4,056
|
|
438
|
|
211
|
|
7,956
|
|
Adjusted
|
|
1,914
|
|
1,646
|
|
1,272
|
|
86
|
|
(575
|
)
|
4,343
|
|
Loans and advances to customers (net)
|
|
|
|
|
|
|
|
||||||
Reported
|
|
395,393
|
|
346,060
|
|
246,266
|
|
47,593
|
|
1,431
|
|
1,036,743
|
|
Currency translation
|
|
(16,403
|
)
|
(11,995
|
)
|
(7,764
|
)
|
(782
|
)
|
(68
|
)
|
(37,012
|
)
|
Adjusted
|
|
378,990
|
|
334,065
|
|
238,502
|
|
46,811
|
|
1,363
|
|
999,731
|
|
Customer accounts
|
|
|
|
|
|
|
|
||||||
Reported
|
|
689,283
|
|
386,522
|
|
292,284
|
|
62,943
|
|
8,083
|
|
1,439,115
|
|
Currency translation
|
|
(19,667
|
)
|
(12,403
|
)
|
(11,205
|
)
|
(1,404
|
)
|
(774
|
)
|
(45,453
|
)
|
Adjusted
|
|
669,616
|
|
374,119
|
|
281,079
|
|
61,539
|
|
7,309
|
|
1,393,662
|
|
Reconciliation
of reported results to adjusted results – global businesses
(continued)
|
|||||||||||||
|
|
Quarter ended 31 Mar 2019
|
|||||||||||
|
|
Retail
Bankingand Wealth Management
|
CommercialBanking
|
Global
Bankingand Markets
|
Global
PrivateBanking
|
CorporateCentre
|
Total
|
||||||
|
Footnotes
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||||||
Revenue
|
1
|
|
|
|
|
|
|
||||||
Reported
|
|
5,971
|
|
3,921
|
|
4,015
|
|
450
|
|
71
|
|
14,428
|
|
Currency
translation
|
|
(116
|
)
|
(63
|
)
|
(70
|
)
|
1
|
|
(9
|
)
|
(257
|
)
|
Significant
items
|
|
—
|
|
—
|
|
52
|
|
—
|
|
(74
|
)
|
(22
|
)
|
–
fair value movement on financial instruments
|
2
|
—
|
|
—
|
|
53
|
|
—
|
|
(75
|
)
|
(22
|
)
|
–
currency translation on significant items
|
|
—
|
|
—
|
|
(1
|
)
|
—
|
|
1
|
|
—
|
|
Adjusted
|
|
5,855
|
|
3,858
|
|
3,997
|
|
451
|
|
(12
|
)
|
14,149
|
|
ECL
|
|
|
|
|
|
|
|
||||||
Reported
|
|
(302
|
)
|
(247
|
)
|
(40
|
)
|
(2
|
)
|
6
|
|
(585
|
)
|
Currency
translation
|
|
8
|
|
7
|
|
1
|
|
—
|
|
—
|
|
16
|
|
Adjusted
|
|
(294
|
)
|
(240
|
)
|
(39
|
)
|
(2
|
)
|
6
|
|
(569
|
)
|
Operating
expenses
|
|
|
|
|
|
|
|
||||||
Reported
|
|
(3,508
|
)
|
(1,662
|
)
|
(2,440
|
)
|
(352
|
)
|
(260
|
)
|
(8,222
|
)
|
Currency
translation
|
|
74
|
|
32
|
|
43
|
|
(1
|
)
|
8
|
|
156
|
|
Significant
items
|
|
56
|
|
4
|
|
50
|
|
2
|
|
43
|
|
155
|
|
–
costs of structural reform
|
3
|
—
|
|
2
|
|
13
|
|
—
|
|
38
|
|
53
|
|
–
customer redress programmes
|
|
56
|
|
—
|
|
—
|
|
—
|
|
—
|
|
56
|
|
–
restructuring and other related costs
|
|
1
|
|
2
|
|
38
|
|
2
|
|
7
|
|
50
|
|
–
currency translation on significant items
|
|
(1
|
)
|
—
|
|
(1
|
)
|
—
|
|
(2
|
)
|
(4
|
)
|
Adjusted
|
|
(3,378
|
)
|
(1,626
|
)
|
(2,347
|
)
|
(351
|
)
|
(209
|
)
|
(7,911
|
)
|
Share
of profit in associates and joint ventures
|
|
|
|
|
|
|
|
||||||
Reported
|
|
13
|
|
—
|
|
—
|
|
—
|
|
579
|
|
592
|
|
Currency
translation
|
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
(14
|
)
|
(15
|
)
|
Adjusted
|
|
12
|
|
—
|
|
—
|
|
—
|
|
565
|
|
577
|
|
Profit
before tax
|
|
|
|
|
|
|
|
||||||
Reported
|
|
2,174
|
|
2,012
|
|
1,535
|
|
96
|
|
396
|
|
6,213
|
|
Currency
translation
|
|
(35
|
)
|
(24
|
)
|
(26
|
)
|
—
|
|
(15
|
)
|
(100
|
)
|
Significant
items
|
|
56
|
|
4
|
|
102
|
|
2
|
|
(31
|
)
|
133
|
|
–
revenue
|
|
—
|
|
—
|
|
52
|
|
—
|
|
(74
|
)
|
(22
|
)
|
–
operating expenses
|
|
56
|
|
4
|
|
50
|
|
2
|
|
43
|
|
155
|
|
Adjusted
|
|
2,195
|
|
1,992
|
|
1,611
|
|
98
|
|
350
|
|
6,246
|
|
Loans
and advances to customers (net)
|
|
|
|
|
|
|
|
||||||
Reported
|
|
369,178
|
|
339,729
|
|
252,180
|
|
42,497
|
|
1,695
|
|
1,005,279
|
|
Currency
translation
|
|
(12,158
|
)
|
(9,682
|
)
|
(7,013
|
)
|
(221
|
)
|
(59
|
)
|
(29,133
|
)
|
Adjusted
|
|
357,020
|
|
330,047
|
|
245,167
|
|
42,276
|
|
1,636
|
|
976,146
|
|
Customer
accounts
|
|
|
|
|
|
|
|
||||||
Reported
|
|
653,969
|
|
349,352
|
|
281,462
|
|
64,489
|
|
7,239
|
|
1,356,511
|
|
Currency
translation
|
|
(13,483
|
)
|
(8,909
|
)
|
(9,767
|
)
|
(807
|
)
|
(660
|
)
|
(33,626
|
)
|
Adjusted
|
|
640,486
|
|
340,443
|
|
271,695
|
|
63,682
|
|
6,579
|
|
1,322,885
|
|
Dividend on preference shares
|
Terms and abbreviations
|
1Q20
|
First quarter of 2020
|
1Q19
|
First quarter of 2019
|
4Q19
|
Fourth quarter of 2019
|
AIEA
|
Average
interest-earning assets
|
Bps
|
Basis
points. One basis point is equal to one-hundredth of a percentage
point
|
BSM
|
Balance Sheet Management
|
C&L
|
Credit and Lending
|
CET1
|
Common equity tier 1
|
CMB
|
Commercial Banking, a global business
|
CODM
|
Chief Operating Decision Maker
|
Corporate Centre
|
Corporate
Centre comprises Central Treasury, including Balance Sheet
Management, our legacy businesses, interests in our associates and
joint ventures, central stewardship costs and the UK bank
levy
|
CRR II
|
Revised Capital Requirements Regulation and Directive, as
implemented
|
ECL
|
Expected credit losses. In the income statement, ECL is recorded as
a change in expected credit losses and other credit impairment
charges. In the balance sheet, ECL is recorded as an allowance for
financial instruments to which only the impairment requirements in
IFRS 9 are applied
|
FTE
|
Full-time equivalent staff
|
FVOCI
|
Fair value through other comprehensive income
|
GB&M
|
Global Banking and Markets, a global business
|
GEC
|
Group Executive Committee
|
GLCM
|
Global
Liquidity and Cash Management
|
GPB
|
Global Private Banking, a global business
|
Group
|
HSBC Holdings together with its subsidiary
undertakings
|
GTRF
|
Global Trade and Receivables Finance
|
Hong Kong
|
Hong
Kong Special Administrative Region of the People’s Republic
of China
|
HSBC
|
HSBC
Holdings together with its subsidiary undertakings
|
HSBC
Bank
|
HSBC
Bank plc, also known as the non-ring-fenced bank
|
HSBC Holdings
|
HSBC Holdings plc, the parent company of HSBC
|
HSBC UK
|
HSBC UK Bank plc, also known as the ring-fenced bank
|
IAS
|
International Accounting Standards
|
IFRSs
|
International Financial Reporting Standards
|
IRB
|
Internal ratings based
|
JV
|
Joint venture
|
LCR
|
Liquidity coverage ratio
|
Mainland China
|
People’s
Republic of China excluding Hong Kong
|
MENA
|
Middle East and North Africa
|
Net operating income
|
Net
operating income before change in expected credit losses and other
credit impairment charges, also referred to as revenue
|
NIM
|
Net interest margin
|
POCI
|
Purchased or originated credit-impaired financial
assets
|
PRA
|
Prudential Regulation Authority (UK)
|
RBWM
|
Retail Banking and Wealth Management, a global
business
|
Revenue
|
Net operating income before ECL
|
RoE
|
Return on equity
|
RoTE
|
Return on average tangible equity
|
RWAs
|
Risk-weighted assets
|
ServCo group
|
Separately
incorporated group of service companies set up in response to UK
ring-fencing proposals
|
$m/$bn/$tn
|
United States dollar millions/billions/trillions. We report in US
dollars
|
HSBC
Holdings plc
|
|
|
|
|
By:
|
|
Name:
Aileen Taylor
|
|
Title:
Group Company Secretary and Chief Governance Officer
|
|
|
|
Date:
28 April 2020
|