Key
financial metrics
|
|
Half-year to
|
||
|
30 Jun
|
30 Jun
|
31 Dec
|
|
2021
|
2020
|
2020
|
Reported results
|
|
|
|
Reported revenue ($m)
|
25,551
|
26,745
|
23,684
|
Reported profit before tax ($m)
|
10,839
|
4,318
|
4,459
|
Reported profit after tax ($m)
|
8,422
|
3,125
|
2,974
|
Profit attributable to the ordinary shareholders of the parent
company ($m)
|
7,276
|
1,977
|
1,921
|
Cost efficiency ratio (%)
|
66.9
|
61.8
|
75.6
|
Basic earnings per share ($)
|
0.36
|
0.10
|
0.10
|
Diluted earnings per share ($)
|
0.36
|
0.10
|
0.09
|
Net
interest margin (%)1
|
1.21
|
1.43
|
1.32
|
Alternative performance measures
|
|
|
|
Adjusted revenue ($m)
|
25,797
|
27,597
|
24,523
|
Adjusted profit before tax ($m)
|
11,950
|
5,654
|
6,680
|
Adjusted cost efficiency ratio (%)
|
62.9
|
56.9
|
69.1
|
Annualised
expected credit losses and other credit impairment charges ('ECL')
as a % of average gross loans and advances to customers
(%)
|
(0.14)
|
1.34
|
0.38
|
Return on average ordinary shareholders' equity (annualised)
(%)
|
8.4
|
2.4
|
2.3
|
Return
on average tangible equity (annualised) (%)1,2
|
9.4
|
3.8
|
3.1
|
|
|
|
|
|
At
|
||
|
30 Jun
|
30 Jun
|
31 Dec
|
|
2021
|
2020
|
2020
|
Balance sheet
|
|
|
|
Total assets ($m)
|
2,976,005
|
2,922,798
|
2,984,164
|
Net loans and advances to customers ($m)
|
1,059,511
|
1,018,681
|
1,037,987
|
Customer accounts ($m)
|
1,669,091
|
1,532,380
|
1,642,780
|
Average
interest-earning assets ($m)1
|
2,188,991
|
2,034,939
|
2,092,900
|
Loans and advances to customers as % of customer accounts
(%)
|
63.5
|
66.5
|
63.2
|
Total shareholders' equity ($m)
|
198,218
|
187,036
|
196,443
|
Tangible ordinary shareholders' equity ($m)
|
157,985
|
147,879
|
156,423
|
Net
asset value per ordinary share at period end ($)3
|
8.69
|
8.17
|
8.62
|
Tangible net asset value per ordinary share at period end
($)
|
7.81
|
7.34
|
7.75
|
Capital, leverage and liquidity
|
|
|
|
Common
equity tier 1 capital ratio (%)4
|
15.6
|
15.0
|
15.9
|
Risk-weighted
assets ($m)4
|
862,292
|
854,552
|
857,520
|
Total
capital ratio (%)4
|
21.0
|
20.7
|
21.5
|
Leverage
ratio (%)4
|
5.3
|
5.3
|
5.5
|
High-quality liquid assets (liquidity value) ($bn)
|
659
|
654
|
678
|
Liquidity coverage ratio (%)
|
134
|
148
|
139
|
Share count
|
|
|
|
Period end basic number of $0.50 ordinary shares outstanding
(millions)
|
20,223
|
20,162
|
20,184
|
Period end basic number of $0.50 ordinary shares outstanding and
dilutive potential ordinary shares (millions)
|
20,315
|
20,198
|
20,272
|
Average basic number of $0.50 ordinary shares outstanding
(millions)
|
20,211
|
20,162
|
20,176
|
Dividend per ordinary share (in respect of the period)
($)
|
0.07
|
-
|
0.15
|
Highlights
|
|
Half-year to
|
|
|
30 Jun
|
30 Jun
|
|
2021
|
2020
|
|
$m
|
$m
|
Reported
|
|
|
Revenue1
|
25,551
|
26,745
|
Change in expected credit losses and other credit impairment
charges
|
719
|
(6,858)
|
Operating expenses
|
(17,087)
|
(16,527)
|
Share of profit in associates and joint ventures
|
1,656
|
958
|
Profit before tax
|
10,839
|
4,318
|
Adjusted2
|
|
|
Revenue1
|
25,797
|
27,597
|
Change in expected credit losses and other credit impairment
charges
|
719
|
(7,287)
|
Operating
expenses
|
(16,222)
|
(15,705)
|
Share of profit in associates and joint ventures
|
1,656
|
1,049
|
Profit before tax
|
11,950
|
5,654
|
Significant items affecting adjusted performance
|
|
|
Revenue
|
|
|
Customer redress programmes
|
18
|
26
|
Disposals, acquisitions and investment in new
businesses
|
—
|
(8)
|
Fair
value movements on financial instruments3
|
(194)
|
299
|
Restructuring
and other related costs4
|
(70)
|
(49)
|
Operating expenses
|
|
|
Customer redress programmes
|
(17)
|
(50)
|
Impairment of goodwill and other intangibles
|
—
|
(1,025)
|
Restructuring and other related costs
|
(848)
|
(505)
|
Settlements and provisions in connection with legal and regulatory
matters
|
—
|
(5)
|
Review
by Noel Quinn, Group Chief Executive
|
Financial
summary
|
|
Half-year to
|
||
|
30 Jun
|
30 Jun
|
31 Dec
|
|
2021
|
2020
|
2020
|
|
$m
|
$m
|
$m
|
For the period
|
|
|
|
Profit
before tax
|
10,839
|
4,318
|
4,459
|
Profit
attributable to:
|
|
|
|
-
ordinary shareholders of the parent company
|
7,276
|
1,977
|
1,921
|
Dividends
on ordinary shares1
|
3,059
|
—
|
—
|
At the period end
|
|
|
|
Total shareholders' equity
|
198,218
|
187,036
|
196,443
|
Total regulatory capital
|
181,122
|
177,242
|
184,423
|
Customer accounts
|
1,669,091
|
1,532,380
|
1,642,780
|
Total assets
|
2,976,005
|
2,922,798
|
2,984,164
|
Risk-weighted assets
|
862,292
|
854,552
|
857,520
|
Per ordinary share
|
$
|
$
|
$
|
Basic earnings
|
0.36
|
0.10
|
0.10
|
Dividend
per ordinary share (paid in the period)1
|
0.15
|
—
|
—
|
Net
asset value2
|
8.69
|
8.17
|
8.62
|
Distribution
of results by global business
|
Adjusted
profit before tax
|
||||||
|
Half-year to
|
|||||
|
30 Jun 2021
|
30 Jun 2020
|
31 Dec 2020
|
|||
|
$m
|
%
|
$m
|
%
|
$m
|
%
|
Wealth and Personal Banking
|
3,864
|
32.3
|
1,663
|
29.4
|
2,478
|
37.1
|
Commercial Banking
|
3,376
|
28.3
|
118
|
2.1
|
1,732
|
25.9
|
Global Banking and Markets
|
3,307
|
27.7
|
2,566
|
45.4
|
2,312
|
34.6
|
Corporate Centre
|
1,403
|
11.7
|
1,307
|
23.1
|
158
|
2.4
|
Profit before tax
|
11,950
|
100.0
|
5,654
|
100.0
|
6,680
|
100.0
|
Distribution
of results by geographical region
|
Reported
profit/(loss) before tax
|
|
|
|
|
|
|
|
Half-year to
|
|||||
|
30 Jun 2021
|
30 Jun 2020
|
31 Dec 2020
|
|||
|
$m
|
%
|
$m
|
%
|
$m
|
%
|
Europe
|
1,968
|
18.2
|
(3,060)
|
(70.9)
|
(1,145)
|
(25.7)
|
Asia
|
6,936
|
64.0
|
7,369
|
170.7
|
5,463
|
122.5
|
Middle East and North Africa
|
723
|
6.7
|
(26)
|
(0.6)
|
45
|
1.0
|
North America
|
805
|
7.4
|
23
|
0.5
|
145
|
3.3
|
Latin America
|
407
|
3.7
|
12
|
0.3
|
(49)
|
(1.1)
|
Profit before tax
|
10,839
|
100.0
|
4,318
|
100.0
|
4,459
|
100.0
|
HSBC
adjusted profit before tax and balance sheet data
|
|||||
|
Half-year to 30 Jun 2021
|
||||
|
Wealth and Personal Banking
|
Commercial
Banking
|
Global
Banking and
Markets
|
Corporate Centre
|
Total
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
Net operating income/(expense) before change in expected credit
losses and other credit impairment charges1
|
11,401
|
6,651
|
7,878
|
(133)
|
25,797
|
- external
|
11,168
|
6,626
|
8,631
|
(628)
|
25,797
|
- inter-segment
|
233
|
25
|
(753)
|
495
|
-
|
of which: net interest income/(expense)
|
7,067
|
4,366
|
2,024
|
(378)
|
13,079
|
Change
in expected credit losses and other credit impairment
(charges)/recoveries
|
52
|
249
|
414
|
4
|
719
|
Net operating income
|
11,453
|
6,900
|
8,292
|
(129)
|
26,516
|
Total operating expenses
|
(7,600)
|
(3,525)
|
(4,985)
|
(112)
|
(16,222)
|
Operating profit
|
3,853
|
3,375
|
3,307
|
(241)
|
10,294
|
Share of profit in associates and joint ventures
|
11
|
1
|
—
|
1,644
|
1,656
|
Adjusted profit before tax
|
3,864
|
3,376
|
3,307
|
1,403
|
11,950
|
|
%
|
%
|
%
|
%
|
%
|
Share of HSBC's adjusted profit before tax
|
32.3
|
28.3
|
27.7
|
11.7
|
100.0
|
Adjusted cost efficiency ratio
|
66.7
|
53.0
|
63.3
|
(84.2)
|
62.9
|
Adjusted balance sheet data
|
$m
|
$m
|
$m
|
$m
|
$m
|
Loans and advances to customers (net)
|
491,320
|
350,945
|
216,098
|
1,148
|
1,059,511
|
Interests in associates and joint ventures
|
478
|
15
|
128
|
28,088
|
28,709
|
Total external assets
|
912,479
|
624,042
|
1,258,694
|
180,790
|
2,976,005
|
Customer accounts
|
841,257
|
485,689
|
341,242
|
903
|
1,669,091
|
Adjusted
risk-weighted assets2
|
184,973
|
332,084
|
255,158
|
90,077
|
862,292
|
|
Half-year to 30 Jun 2020
|
||||
Net
operating income before change in expected credit losses and other
credit impairment charges1
|
11,694
|
7,326
|
8,574
|
3
|
27,597
|
- external
|
10,071
|
7,742
|
10,511
|
(727)
|
27,597
|
- inter-segment
|
1,623
|
(416)
|
(1,937)
|
730
|
-
|
of which: net interest income/(expense)
|
8,331
|
5,080
|
2,435
|
(804)
|
15,042
|
Change in expected credit losses and other credit impairment
charges
|
(2,328)
|
(3,751)
|
(1,195)
|
(13)
|
(7,287)
|
Net operating income/(expense)
|
9,366
|
3,575
|
7,379
|
(10)
|
20,310
|
Total operating expenses
|
(7,695)
|
(3,457)
|
(4,813)
|
260
|
(15,705)
|
Operating profit/(loss)
|
1,671
|
118
|
2,566
|
250
|
4,605
|
Share of profit in associates and joint ventures
|
(8)
|
—
|
—
|
1,057
|
1,049
|
Adjusted profit before tax
|
1,663
|
118
|
2,566
|
1,307
|
5,654
|
|
%
|
%
|
%
|
%
|
%
|
Share of HSBC's adjusted profit before tax
|
29.4
|
2.1
|
45.4
|
23.1
|
100.0
|
Adjusted cost efficiency ratio
|
65.8
|
47.2
|
56.1
|
(8,666.7)
|
56.9
|
Adjusted balance sheet data
|
$m
|
$m
|
$m
|
$m
|
$m
|
Loans and advances to customers (net)
|
456,263
|
362,094
|
254,126
|
1,365
|
1,073,848
|
Interests in associates and joint ventures
|
428
|
15
|
140
|
25,659
|
26,242
|
Total external assets
|
856,599
|
579,865
|
1,472,925
|
173,932
|
3,083,321
|
Customer accounts
|
810,137
|
441,427
|
357,082
|
738
|
1,609,384
|
Adjusted
risk-weighted assets2
|
168,309
|
347,910
|
286,594
|
85,332
|
888,145
|
HSBC
adjusted profit before tax and balance sheet data
(continued)
|
|||||
|
Half-year to 31 Dec 2020
|
||||
|
Wealth and Personal Banking
|
Commercial
Banking
|
Global
Banking and
Markets
|
Corporate Centre
|
Total
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
Net
operating income/(expense) before change in expected credit losses
and other credit impairment charges1
|
11,019
|
6,489
|
7,323
|
(308)
|
24,523
|
- external
|
10,534
|
6,468
|
8,257
|
(736)
|
24,523
|
- inter-segment
|
485
|
21
|
(934)
|
428
|
—
|
of which: net interest income/(expense)
|
7,231
|
4,545
|
2,184
|
(533)
|
13,427
|
Change in expected credit losses and other credit impairment
(charges)/recoveries
|
(685)
|
(1,265)
|
(95)
|
14
|
(2,031)
|
Net operating income/(expense)
|
10,334
|
5,224
|
7,228
|
(294)
|
22,492
|
Total operating expenses
|
(7,871)
|
(3,491)
|
(4,916)
|
(673)
|
(16,951)
|
Operating profit/(loss)
|
2,463
|
1,733
|
2,312
|
(967)
|
5,541
|
Share of profit in associates and joint ventures
|
15
|
(1)
|
-
|
1,125
|
1,139
|
Adjusted profit before tax
|
2,478
|
1,732
|
2,312
|
158
|
6,680
|
|
%
|
%
|
%
|
%
|
%
|
Share of HSBC's adjusted profit before tax
|
37.1
|
25.9
|
34.6
|
2.4
|
100.0
|
Adjusted cost efficiency ratio
|
71.4
|
53.8
|
67.1
|
(218.5)
|
69.1
|
Adjusted balance sheet data
|
$m
|
$m
|
$m
|
$m
|
$m
|
Loans and advances to customers (net)
|
469,218
|
342,951
|
223,395
|
1,254
|
1,036,818
|
Interests in associates and joint ventures
|
446
|
14
|
141
|
26,261
|
26,862
|
Total external assets
|
882,042
|
570,369
|
1,342,544
|
186,633
|
2,981,588
|
Customer accounts
|
834,376
|
470,686
|
335,977
|
609
|
1,641,648
|
Adjusted
risk-weighted assets2
|
172,272
|
327,025
|
263,959
|
91,582
|
854,838
|
Consolidated
income statement
|
|||
|
Half-year to
|
||
|
30 Jun
|
30 Jun
|
31 Dec
|
|
2021
|
2020
|
2020
|
|
$m
|
$m
|
$m
|
Net interest income
|
13,098
|
14,509
|
13,069
|
- interest income
|
17,960
|
23,000
|
18,756
|
- interest expense
|
(4,862)
|
(8,491)
|
(5,687)
|
Net fee income
|
6,674
|
5,926
|
5,948
|
- fee income
|
8,458
|
7,480
|
7,571
|
- fee expense
|
(1,784)
|
(1,554)
|
(1,623)
|
Net income from financial instruments held for trading or managed
on a fair value basis
|
4,184
|
5,768
|
3,814
|
Net income/(expense) from assets and liabilities of insurance
businesses, including related derivatives, measured at fair value
through profit or loss
|
2,795
|
(1,290)
|
3,371
|
Change in fair value of designated debt and related
derivatives
|
(67)
|
197
|
34
|
Changes
in fair value of other financial instruments mandatorily measured
at fair value through profit or loss
|
548
|
80
|
375
|
Gains less losses from financial investments
|
433
|
466
|
187
|
Net insurance premium income
|
5,663
|
5,020
|
5,073
|
Other operating income
|
155
|
471
|
56
|
Total operating income
|
33,483
|
31,147
|
31,927
|
Net insurance claims and benefits paid and movement in liabilities
to policyholders
|
(7,932)
|
(4,402)
|
(8,243)
|
Net operating income before change in expected credit losses and
other credit impairment charges
|
25,551
|
26,745
|
23,684
|
Change in expected credit losses and other credit impairment
charges
|
719
|
(6,858)
|
(1,959)
|
Net operating income
|
26,270
|
19,887
|
21,725
|
Employee compensation and benefits
|
(9,610)
|
(8,514)
|
(9,562)
|
General and administrative expenses
|
(5,675)
|
(4,918)
|
(6,197)
|
Depreciation and impairment of property, plant and equipment and
right-of-use assets
|
(1,160)
|
(1,209)
|
(1,472)
|
Amortisation and impairment of intangible assets
|
(642)
|
(1,845)
|
(674)
|
Goodwill impairment
|
-
|
(41)
|
-
|
Total operating expenses
|
(17,087)
|
(16,527)
|
(17,905)
|
Operating profit
|
9,183
|
3,360
|
3,820
|
Share of profit in associates and joint ventures
|
1,656
|
958
|
639
|
Profit before tax
|
10,839
|
4,318
|
4,459
|
Tax expense
|
(2,417)
|
(1,193)
|
(1,485)
|
Profit for the period
|
8,422
|
3,125
|
2,974
|
Attributable to:
|
|
|
|
- ordinary shareholders of the parent company
|
7,276
|
1,977
|
1,921
|
- preference shareholders of the parent company
|
7
|
45
|
45
|
- other equity holders
|
666
|
617
|
624
|
- non-controlling interests
|
473
|
486
|
384
|
Profit for the period
|
8,422
|
3,125
|
2,974
|
|
$
|
$
|
$
|
Basic earnings per ordinary share
|
0.36
|
0.10
|
0.10
|
Diluted earnings per ordinary share
|
0.36
|
0.10
|
0.09
|
Consolidated
statement of comprehensive income
|
|||
|
Half-year to
|
||
|
30 Jun
|
30 Jun
|
31 Dec
|
|
2021
|
2020
|
2020
|
|
$m
|
$m
|
$m
|
Profit for the period
|
8,422
|
3,125
|
2,974
|
Other comprehensive income/(expense)
|
|
|
|
Items that will be reclassified subsequently to profit or loss when
specific conditions are met:
|
|
|
|
Debt instruments at fair value through other comprehensive
income
|
(1,368)
|
1,747
|
3
|
- fair value gains/(losses)
|
(1,392)
|
2,654
|
293
|
- fair value gains transferred to the income statement on
disposal
|
(375)
|
(454)
|
(214)
|
-
expected credit recoveries/(losses) recognised in the income
statement
|
(26)
|
109
|
(61)
|
- income taxes
|
425
|
(562)
|
(15)
|
Cash flow hedges
|
(238)
|
476
|
(5)
|
- fair value gains/(losses)
|
877
|
255
|
(412)
|
- fair value losses/(gains) reclassified to the income
statement
|
(1,195)
|
364
|
405
|
-
income taxes and other movements
|
80
|
(143)
|
2
|
Share of other comprehensive income/(expense) of associates and
joint ventures
|
104
|
(115)
|
42
|
-
share for the period
|
104
|
(115)
|
42
|
Exchange differences
|
(449)
|
(4,552)
|
9,407
|
Items that will not be reclassified subsequently to profit or
loss:
|
|
|
|
Remeasurement of defined benefit asset/(liability)
|
(747)
|
1,182
|
(348)
|
-
before income taxes
|
(775)
|
1,703
|
(480)
|
-
income taxes
|
28
|
(521)
|
132
|
Changes in fair value of financial liabilities designated at fair
value upon initial recognition arising from changes in own credit
risk
|
155
|
2,354
|
(2,187)
|
- before income taxes
|
(2)
|
2,936
|
(2,746)
|
- income taxes
|
157
|
(582)
|
559
|
Equity instruments designated at fair value through other
comprehensive income
|
(348)
|
(123)
|
335
|
- fair value gains/(losses)
|
(345)
|
(122)
|
334
|
- income taxes
|
(3)
|
(1)
|
1
|
Effects of hyperinflation
|
166
|
72
|
121
|
Other comprehensive income/(expense) for the period, net of
tax
|
(2,725)
|
1,041
|
7,368
|
Total comprehensive income for the period
|
5,697
|
4,166
|
10,342
|
Attributable to:
|
|
|
|
- ordinary shareholders of the parent company
|
4,612
|
3,043
|
9,103
|
- preference shareholders of the parent company
|
7
|
45
|
45
|
- other equity holders
|
666
|
617
|
624
|
- non-controlling interests
|
412
|
461
|
570
|
Total comprehensive income for the period
|
5,697
|
4,166
|
10,342
|
Consolidated
balance sheet
|
||
|
At
|
|
|
30 Jun
|
31 Dec
|
|
2021
|
2020
|
|
$m
|
$m
|
Assets
|
|
|
Cash
and balances at central banks
|
393,559
|
304,481
|
Items
in the course of collection from other banks
|
9,406
|
4,094
|
Hong
Kong Government certificates of indebtedness
|
41,880
|
40,420
|
Trading
assets
|
260,250
|
231,990
|
Financial
assets designated and otherwise mandatorily measured at fair value
through profit or loss
|
49,120
|
45,553
|
Derivatives
|
209,516
|
307,726
|
Loans
and advances to banks
|
86,886
|
81,616
|
Loans
and advances to customers
|
1,059,511
|
1,037,987
|
Reverse
repurchase agreements - non-trading
|
201,714
|
230,628
|
Financial
investments
|
434,576
|
490,693
|
Prepayments,
accrued income and other assets
|
175,155
|
156,412
|
Current
tax assets
|
405
|
954
|
Interests
in associates and joint ventures
|
28,709
|
26,684
|
Goodwill
and intangible assets
|
20,703
|
20,443
|
Deferred
tax assets
|
4,615
|
4,483
|
Total assets
|
2,976,005
|
2,984,164
|
Liabilities and equity
|
|
|
Liabilities
|
|
|
Hong
Kong currency notes in circulation
|
41,880
|
40,420
|
Deposits
by banks
|
100,448
|
82,080
|
Customer
accounts
|
1,669,091
|
1,642,780
|
Repurchase
agreements - non-trading
|
112,798
|
111,901
|
Items
in the course of transmission to other banks
|
15,100
|
4,343
|
Trading
liabilities
|
89,637
|
75,266
|
Financial
liabilities designated at fair value
|
151,686
|
157,439
|
Derivatives
|
200,156
|
303,001
|
Debt
securities in issue
|
84,218
|
95,492
|
Accruals,
deferred income and other liabilities
|
164,800
|
128,624
|
Current
tax liabilities
|
929
|
690
|
Liabilities
under insurance contracts
|
110,572
|
107,191
|
Provisions
|
2,814
|
3,678
|
Deferred
tax liabilities
|
4,338
|
4,313
|
Subordinated
liabilities
|
20,774
|
21,951
|
Total liabilities
|
2,769,241
|
2,779,169
|
Equity
|
|
|
Called
up share capital
|
10,376
|
10,347
|
Share
premium account
|
14,600
|
14,277
|
Other
equity instruments
|
22,414
|
22,414
|
Other
reserves
|
6,509
|
8,833
|
Retained
earnings
|
144,319
|
140,572
|
Total shareholders' equity
|
198,218
|
196,443
|
Non-controlling
interests
|
8,546
|
8,552
|
Total equity
|
206,764
|
204,995
|
Total liabilities and equity
|
2,976,005
|
2,984,164
|
Consolidated
statement of cash flows
|
|||
|
Half-year to
|
||
|
30 Jun
|
30 Jun
|
31 Dec
|
|
2021
|
2020
|
2020
|
|
$m
|
$m
|
$m
|
Profit before tax
|
10,839
|
4,318
|
4,459
|
Adjustments for non-cash items:
|
|
|
|
Depreciation, amortisation and impairment
|
1,802
|
3,095
|
2,146
|
Net gain from investing activities
|
(485)
|
(405)
|
(136)
|
Share of profits in associates and joint ventures
|
(1,656)
|
(958)
|
(639)
|
Change in expected credit losses gross of recoveries and other
credit impairment charges
|
(484)
|
6,875
|
2,221
|
Provisions including pensions
|
301
|
277
|
887
|
Share-based payment expense
|
254
|
195
|
238
|
Other non-cash items included in profit before tax
|
205
|
(718)
|
(188)
|
Change in operating assets
|
(3,811)
|
11,185
|
(23,788)
|
Change in operating liabilities
|
49,015
|
134,734
|
68,164
|
Elimination
of exchange differences1
|
5,212
|
3,775
|
(29,524)
|
Dividends received from associates
|
10
|
120
|
641
|
Contributions paid to defined benefit plans
|
(342)
|
(335)
|
(160)
|
Tax paid
|
(997)
|
(2,373)
|
(1,886)
|
Net cash from operating activities
|
59,863
|
159,785
|
22,435
|
Purchase of financial investments
|
(263,198)
|
(271,830)
|
(224,839)
|
Proceeds from the sale and maturity of financial
investments
|
298,596
|
225,733
|
251,257
|
Net cash flows from the purchase and sale of property, plant and
equipment
|
(375)
|
(447)
|
(999)
|
Net cash flows from purchase of customer and loan
portfolios
|
1,063
|
244
|
1,118
|
Net investment in intangible assets
|
(1,011)
|
(957)
|
(1,107)
|
Net cash flow on (purchase)/disposal of subsidiaries, businesses,
associates and joint ventures
|
(84)
|
(409)
|
(194)
|
Net cash from investing activities
|
34,991
|
(47,666)
|
25,236
|
Issue of ordinary share capital and other equity
instruments
|
1,996
|
—
|
1,497
|
Net sales/(purchases) of own shares for market-making and
investment purposes
|
1
|
(48)
|
(133)
|
Redemption of preference shares and other equity
instruments
|
(3,450)
|
(398)
|
—
|
Subordinated loan capital repaid
|
(852)
|
(1,538)
|
(2,000)
|
Dividends paid to shareholders of the parent company and
non-controlling interests
|
(4,121)
|
(1,204)
|
(819)
|
Net cash from financing activities
|
(6,426)
|
(3,188)
|
(1,455)
|
Net increase/(decrease) in cash and cash equivalents
|
88,428
|
108,931
|
46,216
|
Cash and cash equivalents at the beginning of the
period
|
468,323
|
293,742
|
395,218
|
Exchange differences in respect of cash and cash
equivalents
|
(4,818)
|
(7,455)
|
26,889
|
Cash and cash equivalents at the end of the period
|
551,933
|
395,218
|
468,323
|
Consolidated
statement of changes in equity
|
||||||||||
|
|
|
|
Other reserves
|
|
|
|
|||
|
Called up share
capital
and share premium
|
Other
equity
instru-ments
|
Retained
earnings
|
Financial assets at FVOCI reserve
|
Cash
flow
hedging
reserve
|
Foreign
exchange
reserve
|
Merger and other
reserves
|
Total share-holders' equity
|
Non-
controlling
interests
|
Total equity
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
At 1 Jan 2021
|
24,624
|
22,414
|
140,572
|
1,816
|
457
|
(20,375)
|
26,935
|
196,443
|
8,552
|
204,995
|
Profit for the period
|
—
|
—
|
7,949
|
—
|
—
|
—
|
—
|
7,949
|
473
|
8,422
|
Other comprehensive income (net of tax)
|
—
|
—
|
(337)
|
(1,629)
|
(234)
|
(464)
|
—
|
(2,664)
|
(61)
|
(2,725)
|
-
debt instruments at fair value through other comprehensive
income
|
—
|
—
|
—
|
(1,351)
|
—
|
—
|
—
|
(1,351)
|
(17)
|
(1,368)
|
-
equity instruments designated at fair value through other
comprehensive income
|
—
|
—
|
—
|
(278)
|
—
|
—
|
—
|
(278)
|
(70)
|
(348)
|
- cash flow hedges
|
—
|
—
|
—
|
—
|
(234)
|
—
|
—
|
(234)
|
(4)
|
(238)
|
-
changes in fair value of financial liabilities designated at fair
value upon initial recognition arising from changes in own credit
risk
|
—
|
-—
|
155
|
—
|
—
|
—
|
—
|
155
|
—
|
155
|
-
remeasurement of defined benefit asset/liability
|
—
|
—
|
(762)
|
—
|
—
|
—
|
—
|
(762)
|
15
|
(747)
|
-
share of other comprehensive income of associates and joint
ventures
|
—
|
—
|
104
|
—
|
—
|
—
|
—
|
104
|
—
|
104
|
- effects of hyperinflation
|
—
|
—
|
166
|
—
|
—
|
—
|
—
|
166
|
—
|
166
|
- exchange differences
|
—
|
—
|
-
|
—
|
—
|
(464)
|
—
|
(464)
|
15
|
(449)
|
Total comprehensive income for the period
|
—
|
—
|
7,612
|
(1,629)
|
(234)
|
(464)
|
—
|
5,285
|
412
|
5,697
|
Shares issued under employee remuneration and
share plans
|
352
|
—
|
(335)
|
—
|
—
|
—
|
—
|
17
|
—
|
17
|
Capital
securities issued1
|
—
|
2,000
|
(4)
|
—
|
—
|
—
|
—
|
1,996
|
—
|
1,996
|
Dividends to shareholders
|
—
|
—
|
(3,732)
|
—
|
—
|
—
|
—
|
(3,732)
|
(389)
|
(4,121)
|
Redemption
of securities2
|
—
|
(2,000)
|
—
|
—
|
—
|
—
|
—
|
(2,000)
|
—
|
(2,000)
|
Cost of share-based payment arrangements
|
—
|
—
|
254
|
—
|
—
|
—
|
—
|
254
|
—
|
254
|
Other movements
|
—
|
—
|
(48)
|
3
|
—
|
—
|
—
|
(45)
|
(29)
|
(74)
|
At 30 Jun 2021
|
24,976
|
22,414
|
144,319
|
190
|
223
|
(20,839)
|
26,935
|
198,218
|
8,546
|
206,764
|
|
||||||||||
At 1 Jan 2020
|
24,278
|
20,871
|
136,679
|
(108)
|
(2)
|
(25,133)
|
27,370
|
183,955
|
8,713
|
192,668
|
Profit for the period
|
—
|
—
|
2,639
|
—
|
—
|
—
|
—
|
2,639
|
486
|
3,125
|
Other comprehensive income (net of tax)
|
—
|
—
|
3,506
|
1,654
|
465
|
(4,559)
|
—
|
1,066
|
(25)
|
1,041
|
-
debt instruments at fair value through other comprehensive
income
|
—
|
—
|
—
|
1,735
|
—
|
—
|
—
|
1,735
|
12
|
1,747
|
-
equity instruments designated at fair value through other
comprehensive income
|
—
|
—
|
—
|
(81)
|
—
|
—
|
—
|
(81)
|
(42)
|
(123)
|
- cash flow hedges
|
—
|
—
|
—
|
—
|
465
|
-
|
—
|
465
|
11
|
476
|
-
changes in fair value of financial liabilities designated at fair
value upon initial recognition arising from changes in own credit
risk
|
—
|
—
|
2,354
|
—
|
—
|
—
|
—
|
2,354
|
—
|
2,354
|
-
remeasurement of defined benefit asset/liability
|
—
|
—
|
1,195
|
—
|
—
|
—
|
—
|
1,195
|
(13)
|
1,182
|
-
share of other comprehensive income of associates and joint
ventures
|
—
|
—
|
(115)
|
—
|
—
|
—
|
—
|
(115)
|
—
|
(115)
|
-
effects of hyperinflation
|
—
|
—
|
72
|
—
|
-
|
-
|
—
|
72
|
—
|
72
|
- exchange differences
|
—
|
—
|
—
|
—
|
-
|
(4,559)
|
—
|
(4,559)
|
7
|
(4,552)
|
Total comprehensive income for the period
|
—
|
—
|
6,145
|
1,654
|
465
|
(4,559)
|
—
|
3,705
|
461
|
4,166
|
Shares issued under employee remuneration and share
plans
|
336
|
—
|
(329)
|
—
|
—
|
—
|
—
|
7
|
—
|
7
|
Dividends to shareholders
|
—
|
—
|
(662)
|
—
|
—
|
—
|
—
|
(662)
|
(542)
|
(1,204)
|
Cost of share-based payment arrangements
|
—
|
—
|
195
|
—
|
—
|
—
|
—
|
195
|
—
|
195
|
Other movements
|
—
|
43
|
(219)
|
12
|
—
|
—
|
—
|
(164)
|
(447)
|
(611)
|
At 30 Jun 2020
|
24,614
|
20,914
|
141,809
|
1,558
|
463
|
(29,692)
|
27,370
|
187,036
|
8,185
|
195,221
|
Consolidated
statement of changes in equity (continued)
|
||||||||||||||||||||
|
|
|
|
Other reserves
|
|
|
|
|||||||||||||
|
Called
up
share
capital
and
share premium
|
Other
equity
instru-
ments
|
Retained
earnings
|
Financial assets at FVOCI reserve
|
Cash
flow
hedging
reserve
|
Foreign exchange reserve
|
Merger and other reserves
|
Total
share-
holders'
equity
|
Non-
controlling
interests
|
Total
equity
|
||||||||||
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||||||||||
At 1 Jul 2020
|
24,614
|
|
20,914
|
|
141,809
|
|
1,558
|
|
463
|
|
(29,692)
|
|
27,370
|
|
187,036
|
|
8,185
|
|
195,221
|
|
Profit
for the period
|
—
|
|
—
|
|
2,590
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,590
|
|
384
|
|
2,974
|
|
Other comprehensive income
(net of tax)
|
—
|
|
—
|
|
(2,388)
|
|
259
|
|
(6)
|
|
9,317
|
|
—
|
|
7,182
|
|
186
|
|
7,368
|
|
-
debt instruments at fair value through other comprehensive
income
|
—
|
|
—
|
|
—
|
|
11
|
|
—
|
|
—
|
|
—
|
|
11
|
|
(8)
|
|
3
|
|
-
equity instruments designated at fair value through other
comprehensive income
|
—
|
|
—
|
|
—
|
|
248
|
|
—
|
|
—
|
|
—
|
|
248
|
|
87
|
|
335
|
|
- cash flow hedges
|
—
|
|
—
|
|
—
|
|
—
|
|
(6)
|
|
—
|
|
—
|
|
(6)
|
|
1
|
|
(5)
|
|
-
changes in fair value of financial liabilities designated at fair
value upon initial recognition arising from changes in own credit
risk
|
—
|
|
—
|
|
(2,187)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,187)
|
|
—
|
|
(2,187)
|
|
-
remeasurement of defined benefit asset/liability
|
—
|
|
—
|
|
(364)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(364)
|
|
16
|
|
(348)
|
|
-
share of other comprehensive income of associates and joint
ventures
|
—
|
|
—
|
|
42
|
|
—
|
|
-—
|
|
—
|
|
—
|
|
42
|
|
—
|
|
42
|
|
- effects of hyperinflation
|
—
|
|
—
|
|
121
|
|
—
|
|
—
|
|
—
|
|
—
|
|
121
|
|
—
|
|
121
|
|
- exchange differences
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
9,317
|
|
—-
|
|
9,317
|
|
90
|
|
9,407
|
|
Total comprehensive income for the period
|
—
|
|
—
|
|
202
|
|
259
|
|
(6)
|
|
9,317
|
|
—
|
|
9,772
|
|
570
|
|
10,342
|
|
Shares issued under employee remuneration and share
plans
|
10
|
|
—
|
|
(10)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Capital
securities issued1
|
—
|
|
1,500
|
|
(3)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,497
|
|
—
|
|
1,497
|
|
Dividends to shareholders
|
—
|
|
—
|
|
(669)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(669)
|
|
(150)
|
|
(819)
|
|
Redemption
of securities2
|
—
|
|
—
|
|
(1,450)
|
|
—-
|
|
—
|
|
—
|
|
—
|
|
(1,450)
|
|
—
|
|
(1,450)
|
|
Transfers3
|
—
|
|
—
|
|
435
|
|
—
|
|
—
|
|
—
|
|
(435)
|
|
—
|
|
—
|
|
—
|
|
Cost of share-based payment arrangements
|
—
|
|
—
|
|
239
|
|
-—
|
|
—
|
|
—
|
|
—
|
|
239
|
|
—
|
|
239
|
|
Other movements
|
—
|
|
—
|
|
19
|
|
(1)
|
|
—
|
|
—
|
|
—
|
|
18
|
|
(53)
|
|
(35)
|
|
At 31 Dec 2020
|
24,624
|
|
22,414
|
|
140,572
|
|
1,816
|
|
457
|
|
(20,375)
|
|
26,935
|
|
196,443
|
|
8,552
|
|
204,995
|
|
1
|
Basis
of preparation and significant accounting policies
|
2
|
Dividends
|
Dividends
paid to shareholders of HSBC Holdings plc
|
|||||||||
|
Half-year to
|
||||||||
|
30 Jun 2021
|
30 Jun 2020
|
31 Dec 2020
|
||||||
|
Per share
|
Total
|
Settled in scrip
|
Per share
|
Total
|
Settled in scrip
|
Per share
|
Total
|
Settled in scrip
|
|
$
|
$m
|
$m
|
$
|
$m
|
$m
|
$
|
$m
|
$m
|
Dividends paid on ordinary shares
|
|
|
|
|
|
|
|
|
|
In respect of previous year:
|
|
|
|
|
|
|
|
|
|
- fourth interim dividend
|
0.15
|
3,059
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
In respect of current year:
|
|
|
|
|
|
|
|
|
|
-
first interim dividend
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
-
second interim dividend
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
-
third interim dividend
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Total
|
0.15
|
3,059
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Total
dividends on preference shares classified as equity (paid
quarterly)1
|
4.99
|
7
|
|
31.00
|
45
|
|
31.00
|
45
|
|
Total coupons on capital securities classified as
equity
|
|
666
|
|
|
617
|
|
|
624
|
|
Dividends to shareholders
|
|
3,732
|
|
|
662
|
|
|
669
|
|
3
|
Earnings
per share
|
Profit
attributable to ordinary shareholders of the parent
company
|
|||
|
Half-year to
|
||
|
30 Jun
|
30 Jun
|
31 Dec
|
|
2021
|
2020
|
2020
|
|
$m
|
$m
|
$m
|
Profit attributable to shareholders of the parent
company
|
7,949
|
2,639
|
2,590
|
Dividend payable on preference shares classified as
equity
|
(7)
|
(45)
|
(45)
|
Coupon payable on capital securities classified as
equity
|
(666)
|
(617)
|
(624)
|
Profit attributable to ordinary shareholders of the parent
company
|
7,276
|
1,977
|
1,921
|
Basic
and diluted earnings per share
|
|||||||||
|
Half-year to
|
||||||||
|
30 Jun 2021
|
30 Jun 2020
|
31 Dec 2020
|
||||||
|
Profit
|
Number
of shares
|
Amount per share
|
Profit
|
Number
of shares
|
Amount per share
|
Profit
|
Number
of shares
|
Amount per share
|
|
$m
|
(millions)
|
$
|
$m
|
(millions)
|
$
|
$m
|
(millions)
|
$
|
Basic1
|
7,276
|
20,211
|
0.36
|
1,977
|
20,162
|
0.10
|
1,921
|
20,176
|
0.10
|
Effect of dilutive potential ordinary shares
|
|
97
|
|
|
58
|
|
|
63
|
|
Diluted1
|
7,276
|
20,308
|
0.36
|
1,977
|
20,220
|
0.10
|
1,921
|
20,239
|
0.09
|
4
|
Adjusted
balance sheet reconciliation
|
|
At
|
|||
|
30 Jun 2021
|
31 Dec 2020
|
||
|
Reported and adjusted
|
Adjusted
|
Currency translation
|
Reported
|
|
$m
|
$m
|
$m
|
$m
|
Loans
and advances to customers (net)
|
1,059,511
|
1,036,818
|
1,169
|
1,037,987
|
Interests
in associates and joint ventures
|
28,709
|
26,862
|
(178)
|
26,684
|
Total
external assets
|
2,976,005
|
2,981,588
|
2,576
|
2,984,164
|
Customer
accounts
|
1,669,091
|
1,641,648
|
1,132
|
1,642,780
|
5
|
Reconciliation
of reported and adjusted items
|
|
Half-year to
|
||
|
30 Jun
|
30 Jun
|
31 Dec
|
|
2021
|
2020
|
2020
|
|
$m
|
$m
|
$m
|
Revenue1
|
|
|
|
Reported
|
25,551
|
26,745
|
23,684
|
Currency translation
|
|
1,117
|
630
|
Significant items
|
246
|
(265)
|
209
|
-
customer redress programmes
|
(18)
|
(26)
|
47
|
-
disposals, acquisitions and investment in new
businesses
|
—
|
8
|
2
|
-
fair value movements on financial instruments2
|
194
|
(299)
|
35
|
-
restructuring and other related costs3
|
70
|
49
|
121
|
-
currency translation on significant items
|
|
3
|
4
|
Adjusted
|
25,797
|
27,597
|
24,523
|
ECL
|
|
|
|
Reported
|
719
|
(6,858)
|
(1,959)
|
Currency
translation
|
|
(429)
|
(72)
|
Adjusted
|
719
|
(7,287)
|
(2,031)
|
Operating expenses
|
|
|
|
Reported
|
(17,087)
|
(16,527)
|
(17,905)
|
Currency
translation
|
|
(887)
|
(471)
|
Significant
items
|
865
|
1,709
|
1,425
|
-
customer redress programmes
|
17
|
50
|
(104)
|
-
impairment of goodwill and other intangibles
|
—
|
1,025
|
65
|
-
past service costs of guaranteed minimum pension benefits
equalisation
|
—
|
—
|
17
|
-
restructuring and other related costs
|
848
|
505
|
1,403
|
-
settlements and provisions in connection with legal and
regulatory matters
|
—
|
5
|
7
|
-
currency translation on significant items
|
—
|
124
|
37
|
Adjusted
|
(16,222)
|
(15,705)
|
(16,951)
|
Share of profit in associates and joint ventures
|
|
|
|
Reported
|
1,656
|
958
|
639
|
Currency
translation
|
|
91
|
38
|
Significant
items
|
—
|
—
|
462
|
-
impairment of goodwill4
|
—
|
—
|
462
|
Adjusted
|
1,656
|
1,049
|
1,139
|
Profit before tax
|
|
|
|
Reported
|
10,839
|
4,318
|
4,459
|
Currency
translation
|
|
(108)
|
125
|
Significant
items
|
1,111
|
1,444
|
2,096
|
-
revenue
|
246
|
(265)
|
209
|
-
operating expenses
|
865
|
1,709
|
1,425
|
-
share of profit in associates and joint ventures4
|
—
|
—
|
462
|
Adjusted
|
11,950
|
5,654
|
6,680
|
6
|
Contingent
liabilities, contractual commitments and guarantees
|
|
At
|
|
|
30 Jun
|
31 Dec
|
|
2021
|
2020
|
|
$m
|
$m
|
Guarantees and contingent liabilities:
|
|
|
-
financial guarantees
|
27,274
|
18,384
|
-
performance and other guarantees
|
80,641
|
78,114
|
-
other contingent liabilities
|
838
|
1,219
|
At the end of the period
|
108,753
|
97,717
|
Commitments:1
|
|
|
-
documentary credits and short-term trade-related
transactions
|
9,201
|
7,178
|
-
forward asset purchases and forward deposits placed
|
72,916
|
66,506
|
-
standby facilities, credit lines and other commitments to
lend
|
764,768
|
771,086
|
At the end of the period
|
846,885
|
844,770
|
7
|
Legal
proceedings and regulatory matters
|
8
|
Business
disposals
|
9
|
Events
after the balance sheet date
|
10
|
Capital
structure
|
Capital
ratios
|
|
|
|
At
|
|
|
30 Jun
|
31 Dec
|
|
2021
|
2020
|
|
%
|
%
|
Transitional basis
|
|
|
Common
equity tier 1 ratio
|
15.6
|
15.9
|
Tier 1
ratio
|
18.4
|
18.7
|
Total
capital ratio
|
21.0
|
21.5
|
End point basis
|
|
|
Common
equity tier 1 ratio
|
15.6
|
15.9
|
Tier 1
ratio
|
18.2
|
18.5
|
Total capital ratio
|
19.8
|
20.2
|
Total
regulatory capital and risk-weighted assets
|
|
|
|
At
|
|
|
30 Jun
|
31 Dec
|
|
2021
|
2020
|
|
$m
|
$m
|
Transitional basis
|
|
|
Common
equity tier 1 capital
|
134,606
|
136,050
|
Additional tier 1 capital
|
23,729
|
24,123
|
Tier 2 capital
|
22,787
|
24,250
|
Total regulatory capital
|
181,122
|
184,423
|
Risk-weighted
assets
|
862,292
|
857,520
|
End point basis
|
|
|
Common equity tier 1 capital
|
134,606
|
136,050
|
Additional tier 1 capital
|
22,423
|
22,411
|
Tier 2 capital
|
13,662
|
14,743
|
Total regulatory capital
|
170,691
|
173,204
|
Risk-weighted assets
|
862,292
|
857,520
|
Leverage ratio1
|
|||
|
|
At
|
|
|
|
30 Jun
|
31 Dec
|
|
|
2021
|
2020
|
Ref*
|
|
$bn
|
$bn
|
20
|
Tier 1
capital
|
157.0
|
158.5
|
21
|
Total
leverage ratio exposure
|
2,968.5
|
2,897.1
|
|
|
%
|
%
|
22
|
Leverage ratio
|
5.3
|
5.5
|
EU-23
|
Choice
of transitional arrangements for the definition of the capital
measure
|
Fully phased-in
|
Fully phased-in
|
|
UK
leverage ratio exposure - quarterly average2
|
2,535.1
|
2,555.5
|
|
|
%
|
%
|
|
UK
leverage ratio - quarterly average2
|
6.3
|
6.1
|
|
UK
leverage ratio - quarter end2
|
6.2
|
6.2
|
11
|
Statutory
accounts
|
12
|
Dealings
in HSBC Holdings plc listed securities
|
13
|
Earnings
release and final results
|
14
|
Corporate
governance
|
15
|
Interim
Report 2021
|
16
|
Cautionary
statement regarding forward-looking statements
|
17
|
Use
of alternative performance measures
|
18
|
Certain
defined terms
|
19
|
For
further information contact:
|
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 - Jessica Lee
|
Tel:
+852 2822 4908
|
Tel:
+852 2822 1268
|
20
|
Registered
Office and Group Head Office
|
HSBC
Holdings plc
|
|
|
|
|
By:
|
|
Name:
Aileen Taylor
|
|
Title:
Group Company Secretary and Chief Governance Officer
|
|
|
|
Date:
02 August
2021
|