Key financial metrics
|
|
For the year ended
|
|||||
Reported results
|
2019
|
2018
|
2017
|
|||
Reported
revenue ($m)1
|
56,098
|
|
53,780
|
|
51,445
|
|
Reported
profit before tax ($m)2
|
13,347
|
|
19,890
|
|
17,167
|
|
Reported
profit after tax ($m)2
|
8,708
|
|
15,025
|
|
11,879
|
|
Profit
attributable to the ordinary shareholders of the parent company
($m)2
|
5,969
|
|
12,608
|
|
9,683
|
|
Basic
earnings per share ($)2
|
0.30
|
|
0.63
|
|
0.48
|
|
Diluted
earnings per share ($)2
|
0.30
|
|
0.63
|
|
0.48
|
|
Return
on average ordinary shareholders’ equity (%)2
|
3.6
|
|
7.7
|
|
5.9
|
|
Return
on average tangible equity (%)
|
8.4
|
|
8.6
|
|
6.8
|
|
Net
interest margin (%)
|
1.58
|
|
1.66
|
|
1.63
|
|
Adjusted results3
|
|
|
|
|||
Adjusted
revenue ($m)1
|
55,409
|
|
52,331
|
|
50,173
|
|
Adjusted
profit before tax ($m)
|
22,212
|
|
21,182
|
|
20,556
|
|
Adjusted jaws (%)
|
3.1
|
|
(1.2
|
)
|
1.0
|
|
Cost
efficiency ratio (%)
|
59.2
|
|
61.0
|
|
60.3
|
|
Expected
credit losses and other credit impairment charges
(‘ECL’) as % of average gross loans and advances to
customers (%)
|
0.27
|
|
0.17
|
|
0.18
|
|
|
|
|
|
|||
|
At 31 Dec
|
|||||
Balance sheet
|
2019
|
2018
|
2017
|
|||
Total
assets ($m)
|
2,715,152
|
|
2,558,124
|
|
2,521,771
|
|
Net
loans and advances to customers ($m)
|
1,036,743
|
|
981,696
|
|
962,964
|
|
Customer
accounts ($m)
|
1,439,115
|
|
1,362,643
|
|
1,364,462
|
|
Average
interest-earning assets ($m)
|
1,922,822
|
|
1,839,346
|
|
1,726,120
|
|
Loans
and advances to customers as % of customer accounts
(%)
|
72.0
|
|
72.0
|
|
70.6
|
|
Total
shareholders’ equity ($m)
|
183,955
|
|
186,253
|
|
190,250
|
|
Tangible
ordinary shareholders’ equity ($m)
|
144,144
|
|
140,056
|
|
144,915
|
|
Net
asset value per ordinary share at period end ($)4
|
8.00
|
|
8.13
|
|
8.35
|
|
Tangible
net asset value per ordinary share at period end ($)
|
7.13
|
|
7.01
|
|
7.26
|
|
Capital, leverage and liquidity
|
|
|
|
|||
Common
equity tier 1 capital ratio (%)5
|
14.7
|
|
14.0
|
|
14.5
|
|
Risk-weighted
assets ($m)5
|
843,395
|
|
865,318
|
|
871,337
|
|
Total
capital ratio (%)5
|
20.4
|
|
20.0
|
|
20.9
|
|
Leverage
ratio (%)5
|
5.3
|
|
5.5
|
|
5.6
|
|
High-quality
liquid assets (liquidity value) ($bn)
|
601
|
|
567
|
|
513
|
|
Liquidity
coverage ratio (%)
|
150
|
|
154
|
|
142
|
|
Share count
|
|
|
|
|||
Period
end basic number of $0.50 ordinary shares outstanding
(millions)
|
20,206
|
|
19,981
|
|
19,960
|
|
Period
end basic number of $0.50 ordinary shares outstanding and dilutive
potential ordinary shares (millions)
|
20,280
|
|
20,059
|
|
20,065
|
|
Average
basic number of $0.50 ordinary shares outstanding
(millions)
|
20,158
|
|
19,896
|
|
19,972
|
|
Dividend per ordinary share (in respect of the period)
($)
|
0.51
|
|
0.51
|
|
0.51
|
|
Highlights
|
|
|
Year ended 31 Dec
|
|||
|
|
2019
|
2018
|
||
|
|
$m
|
$m
|
||
Reported
|
|
|
|
||
Revenue1
|
|
56,098
|
|
53,780
|
|
Change
in expected credit losses and other credit impairment
charges
|
|
(2,756
|
)
|
(1,767
|
)
|
Operating
expenses
|
|
(42,349
|
)
|
(34,659
|
)
|
Profit before tax
|
|
13,347
|
|
19,890
|
|
Adjusted2
|
|
|
|
||
Revenue1
|
|
55,409
|
|
52,331
|
|
Change
in expected credit losses and other credit impairment
charges
|
|
(2,756
|
)
|
(1,689
|
)
|
Operating
expenses
|
|
(32,795
|
)
|
(31,906
|
)
|
Profit before tax
|
|
22,212
|
|
21,182
|
|
Significant items affecting adjusted performance
|
|
|
|
||
Revenue
|
|
|
|
||
Customer redress programmes
|
|
(163
|
)
|
53
|
|
Disposals, acquisitions and investment in new
businesses
|
|
768
|
|
(113
|
)
|
Fair
value movements on financial instruments3
|
|
84
|
|
(100
|
)
|
Operating expenses
|
|
|
|
||
Costs
of structural reform4
|
|
(158
|
)
|
(361
|
)
|
Customer redress programmes
|
|
(1,281
|
)
|
(146
|
)
|
Disposals, acquisitions and investment in new
businesses
|
|
—
|
|
(52
|
)
|
Goodwill impairment
|
|
(7,349
|
)
|
—
|
|
Past service costs of guaranteed minimum pension benefits
equalisation
|
|
—
|
|
(228
|
)
|
Restructuring and other related costs
|
|
(827
|
)
|
(66
|
)
|
Settlements and provisions in connection with legal matters and
other regulatory matters
|
|
61
|
|
(816
|
)
|
Statement by Mark E Tucker, Group Chairman
|
Review by Noel Quinn, Group Chief Executive
|
Financial summary
|
|
|
Year ended 31 Dec
|
|||
|
|
2019
|
2018
|
||
|
|
$m
|
$m
|
||
For the year
|
|
|
|
||
Profit before tax
|
|
13,347
|
|
19,890
|
|
Profit attributable to:
|
|
|
|
||
– ordinary shareholders of the parent company
|
|
5,969
|
|
12,608
|
|
Dividends
declared on ordinary shares
|
|
10,269
|
|
10,187
|
|
At the year-end
|
|
|
|
||
Total
shareholders’ equity
|
|
183,955
|
|
186,253
|
|
Total
regulatory capital
|
|
172,150
|
|
173,238
|
|
Customer
accounts
|
|
1,439,115
|
|
1,362,643
|
|
Total
assets
|
|
2,715,152
|
|
2,558,124
|
|
Risk-weighted
assets
|
|
843,395
|
|
865,318
|
|
Per ordinary share
|
|
$
|
$
|
||
Basic
earnings
|
|
0.30
|
|
0.63
|
|
Dividends1
|
|
0.51
|
|
0.51
|
|
Net
asset value2
|
|
8.00
|
|
8.13
|
|
Tangible net asset value
|
|
7.13
|
|
7.01
|
|
Share information
|
|
|
|
||
Number of $0.50 ordinary shares in issue (millions)
|
|
20,639
|
|
20,361
|
|
Basic
number of $0.50 ordinary shares outstanding (millions)
|
|
20,206
|
|
19,981
|
|
Basic
number of $0.50 ordinary shares outstanding and dilutive potential
ordinary shares (millions)
|
|
20,280
|
|
20,059
|
|
Distribution of results by global business
|
Adjusted
profit before tax
|
||||||||
|
Year ended 31 Dec
|
|||||||
|
2019
|
2018
|
||||||
|
$m
|
%
|
$m
|
%
|
||||
Retail Banking and Wealth Management
|
8,048
|
|
36.2
|
|
7,018
|
|
33.1
|
|
Commercial Banking
|
7,307
|
|
32.9
|
|
7,478
|
|
35.3
|
|
Global Banking and Markets
|
5,346
|
|
24.1
|
|
5,886
|
|
27.8
|
|
Global Private Banking
|
402
|
|
1.8
|
|
339
|
|
1.6
|
|
Corporate Centre
|
1,109
|
|
5.0
|
|
461
|
|
2.2
|
|
Profit before tax
|
22,212
|
|
100.0
|
|
21,182
|
|
100.0
|
|
|
Distribution of results by geographical region
|
Reported
profit/(loss) before tax
|
||||||||
Year ended 31 Dec
|
||||||||
|
2019
|
2018
|
||||||
|
$m
|
%
|
$m
|
%
|
||||
Europe
|
(4,653
|
)
|
(34.9
|
)
|
(815
|
)
|
(4.1
|
)
|
Asia
|
18,468
|
|
138.4
|
|
17,790
|
|
89.5
|
|
Middle
East and North Africa
|
2,327
|
|
17.4
|
|
1,557
|
|
7.8
|
|
North
America
|
767
|
|
5.7
|
|
799
|
|
4.0
|
|
Latin
America
|
400
|
|
3.0
|
|
559
|
|
2.8
|
|
Global GB&M goodwill impairment
|
(3,962
|
)
|
(29.6
|
)
|
—
|
|
—
|
|
Profit before tax
|
13,347
|
|
100.0
|
|
19,890
|
|
100.0
|
|
|
HSBC adjusted profit before tax and balance sheet
data
|
|
|
2019
|
|||||||||||
|
|
Retail Banking
and Wealth
Management
|
Commercial
Banking
|
Global
Banking and
Markets
|
Global
Private
Banking
|
Corporate Centre
|
Total
|
||||||
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||||||
Net operating income before change in expected credit losses and
other credit impairment charges1
|
|
23,400
|
|
15,292
|
|
14,916
|
|
1,848
|
|
(47
|
)
|
55,409
|
|
–
external
|
|
17,026
|
|
14,805
|
|
18,517
|
|
1,445
|
|
3,616
|
|
55,409
|
|
–
inter-segment
|
|
6,374
|
|
487
|
|
(3,601
|
)
|
403
|
|
(3,663
|
)
|
—
|
|
of which: net interest income/(expense)
|
|
16,525
|
|
11,226
|
|
5,601
|
|
879
|
|
(3,612
|
)
|
30,619
|
|
Change in expected credit losses and other credit impairment
charges
|
|
(1,390
|
)
|
(1,184
|
)
|
(153
|
)
|
(22
|
)
|
(7
|
)
|
(2,756
|
)
|
Net operating income/(expense)
|
|
22,010
|
|
14,108
|
|
14,763
|
|
1,826
|
|
(54
|
)
|
52,653
|
|
Total operating expenses
|
|
(14,017
|
)
|
(6,801
|
)
|
(9,417
|
)
|
(1,424
|
)
|
(1,136
|
)
|
(32,795
|
)
|
Operating profit/(loss)
|
|
7,993
|
|
7,307
|
|
5,346
|
|
402
|
|
(1,190
|
)
|
19,858
|
|
Share of profit in associates and joint ventures
|
|
55
|
|
—
|
|
—
|
|
—
|
|
2,299
|
|
2,354
|
|
Adjusted profit before tax
|
|
8,048
|
|
7,307
|
|
5,346
|
|
402
|
|
1,109
|
|
22,212
|
|
|
|
%
|
%
|
%
|
%
|
%
|
%
|
||||||
Share of HSBC’s adjusted profit before tax
|
|
36.2
|
|
32.9
|
|
24.1
|
|
1.8
|
|
5.0
|
|
100.0
|
|
Adjusted cost efficiency ratio
|
|
59.9
|
|
44.5
|
|
63.1
|
|
77.1
|
|
(2,417.0
|
)
|
59.2
|
|
Adjusted balance sheet data
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||||||
Loans and advances to customers (net)
|
|
395,393
|
|
346,060
|
|
246,266
|
|
47,593
|
|
1,431
|
|
1,036,743
|
|
Interests in associates and joint ventures
|
|
449
|
|
—
|
|
—
|
|
—
|
|
24,025
|
|
24,474
|
|
Total external assets
|
|
526,621
|
|
367,509
|
|
1,066,584
|
|
52,224
|
|
702,214
|
|
2,715,152
|
|
Customer accounts
|
|
689,283
|
|
386,522
|
|
292,284
|
|
62,943
|
|
8,083
|
|
1,439,115
|
|
Adjusted
risk-weighted assets (unaudited)2
|
|
134,027
|
|
316,710
|
|
258,177
|
|
14,029
|
|
120,452
|
|
843,395
|
|
|
|
2018
|
|||||||||||
Net
operating income before change in expected credit losses and other
credit impairment charges1
|
|
21,374
|
|
14,465
|
|
15,025
|
|
1,757
|
|
(290
|
)
|
52,331
|
|
–
external
|
|
16,794
|
|
14,226
|
|
17,554
|
|
1,474
|
|
2,283
|
|
52,331
|
|
–
inter-segment
|
|
4,580
|
|
239
|
|
(2,529
|
)
|
283
|
|
(2,573
|
)
|
—
|
|
of which: net interest income/(expense)
|
|
15,432
|
|
10,380
|
|
5,122
|
|
873
|
|
(2,189
|
)
|
29,618
|
|
Change
in expected credit losses and other credit impairment
(charges)/recoveries
|
|
(1,134
|
)
|
(712
|
)
|
31
|
|
7
|
|
119
|
|
(1,689
|
)
|
Net operating income
|
|
20,240
|
|
13,753
|
|
15,056
|
|
1,764
|
|
(171
|
)
|
50,642
|
|
Total operating expenses
|
|
(13,255
|
)
|
(6,275
|
)
|
(9,170
|
)
|
(1,425
|
)
|
(1,781
|
)
|
(31,906
|
)
|
Operating profit/(loss)
|
|
6,985
|
|
7,478
|
|
5,886
|
|
339
|
|
(1,952
|
)
|
18,736
|
|
Share of profit in associates and joint ventures
|
|
33
|
|
—
|
|
—
|
|
—
|
|
2,413
|
|
2,446
|
|
Adjusted profit before tax
|
|
7,018
|
|
7,478
|
|
5,886
|
|
339
|
|
461
|
|
21,182
|
|
|
|
%
|
%
|
%
|
%
|
%
|
%
|
||||||
Share of HSBC’s adjusted profit before tax
|
|
33.1
|
|
35.3
|
|
27.8
|
|
1.6
|
|
2.2
|
|
100.0
|
|
Adjusted cost efficiency ratio
|
|
62.0
|
|
43.4
|
|
61.0
|
|
81.1
|
|
(614.1
|
)
|
61.0
|
|
Adjusted balance sheet data
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||||||
Loans and advances to customers (net)
|
|
367,917
|
|
337,099
|
|
247,125
|
|
39,602
|
|
2,533
|
|
994,276
|
|
Interests in associates and joint ventures
|
|
398
|
|
—
|
|
—
|
|
—
|
|
21,903
|
|
22,301
|
|
Total external assets
|
|
482,967
|
|
364,638
|
|
1,025,737
|
|
45,520
|
|
670,333
|
|
2,589,195
|
|
Customer accounts
|
|
649,172
|
|
362,274
|
|
294,584
|
|
65,053
|
|
8,655
|
|
1,379,738
|
|
Adjusted
risk-weighted assets (unaudited)2
|
|
127,593
|
|
324,587
|
|
282,143
|
|
16,913
|
|
118,952
|
|
870,188
|
|
Consolidated income statement
|
|
2019
|
2018
|
||
|
$m
|
$m
|
||
Net
interest income
|
30,462
|
|
30,489
|
|
–
interest income1,2
|
54,695
|
|
49,609
|
|
–
interest expense3
|
(24,233
|
)
|
(19,120
|
)
|
Net fee
income
|
12,023
|
|
12,620
|
|
–
fee income
|
15,439
|
|
16,044
|
|
–
fee expense
|
(3,416
|
)
|
(3,424
|
)
|
Net
income from financial instruments held for trading or managed on a
fair value basis
|
10,231
|
|
9,531
|
|
Net
income/(expense) from assets and liabilities of insurance
businesses, including related derivatives, measured at fair value
through profit or loss
|
3,478
|
|
(1,488
|
)
|
Changes
in fair value of designated debt and related
derivatives4
|
90
|
|
(97
|
)
|
Changes
in fair value of other financial instruments mandatorily measured
at fair value through profit or loss
|
812
|
|
695
|
|
Gains
less losses from financial investments
|
335
|
|
218
|
|
Net
insurance premium income
|
10,636
|
|
10,659
|
|
Other
operating income
|
2,957
|
|
960
|
|
Total
operating income
|
71,024
|
|
63,587
|
|
Net
insurance claims and benefits paid and movement in liabilities to
policyholders
|
(14,926
|
)
|
(9,807
|
)
|
Net
operating income before change in expected credit losses and other
credit impairment charges5
|
56,098
|
|
53,780
|
|
Change
in expected credit losses and other credit impairment
charges
|
(2,756
|
)
|
(1,767
|
)
|
Net
operating income
|
53,342
|
|
52,013
|
|
Employee
compensation and benefits
|
(18,002
|
)
|
(17,373
|
)
|
General
and administrative expenses
|
(13,828
|
)
|
(15,353
|
)
|
Depreciation and
impairment of property, plant and equipment and right-of-use
assets6
|
(2,100
|
)
|
(1,119
|
)
|
Amortisation and
impairment of intangible assets
|
(1,070
|
)
|
(814
|
)
|
Goodwill
impairment
|
(7,349
|
)
|
—
|
|
Total
operating expenses
|
(42,349
|
)
|
(34,659
|
)
|
Operating
profit
|
10,993
|
|
17,354
|
|
Share
of profit in associates and joint ventures
|
2,354
|
|
2,536
|
|
Profit
before tax
|
13,347
|
|
19,890
|
|
Tax
expense
|
(4,639
|
)
|
(4,865
|
)
|
Profit
for the year
|
8,708
|
|
15,025
|
|
Attributable
to:
|
|
|
||
–
ordinary shareholders of the parent company
|
5,969
|
|
12,608
|
|
–
preference shareholders of the parent company
|
90
|
|
90
|
|
–
other equity holders
|
1,324
|
|
1,029
|
|
–
non-controlling interests
|
1,325
|
|
1,298
|
|
Profit
for the year
|
8,708
|
|
15,025
|
|
|
$
|
$
|
||
Basic
earnings per ordinary share
|
0.30
|
|
0.63
|
|
Diluted
earnings per ordinary share
|
0.30
|
|
0.63
|
|
Consolidated statement of comprehensive income
|
|
2019
|
2018
|
|||
|
|
$m
|
$m
|
||
Profit
for the year
|
|
8,708
|
|
15,025
|
|
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
|
|
1,152
|
|
(243
|
)
|
–
fair value gains/(losses)
|
|
1,793
|
|
(168
|
)
|
–
fair value gains transferred to the income statement on
disposal
|
|
(365
|
)
|
(95
|
)
|
–
expected credit recoveries/(losses) recognised in the income
statement
|
|
109
|
|
(94
|
)
|
–
income taxes
|
|
(385
|
)
|
114
|
|
Cash
flow hedges
|
|
206
|
|
19
|
|
–
fair value gains/(losses)
|
|
551
|
|
(267
|
)
|
– fair value losses/(gains) reclassified to the income
statement
|
|
(286
|
)
|
317
|
|
–
income taxes
|
|
(59
|
)
|
(31
|
)
|
Share
of other comprehensive income/(expense) of associates and joint
ventures
|
|
21
|
|
(64
|
)
|
–
share for the year
|
|
21
|
|
(64
|
)
|
Exchange
differences
|
|
1,044
|
|
(7,156
|
)
|
–
other exchange differences
|
|
1,044
|
|
(7,156
|
)
|
Items that will not be reclassified subsequently to profit or
loss:
|
|
|
|
||
Remeasurement
of defined benefit asset/liability
|
|
13
|
|
(329
|
)
|
– before income taxes
|
|
(17
|
)
|
(388
|
)
|
–
income taxes
|
|
30
|
|
59
|
|
Changes
in fair value of financial liabilities designated at fair value
upon initial recognition arising from changes in own credit
risk
|
|
(2,002
|
)
|
2,847
|
|
–
before income taxes
|
|
(2,639
|
)
|
3,606
|
|
–
income taxes
|
|
637
|
|
(759
|
)
|
Equity
instruments designated at fair value through other comprehensive
income
|
|
366
|
|
(27
|
)
|
–
fair value gains/(losses)
|
|
364
|
|
(71
|
)
|
–
income taxes
|
|
2
|
|
44
|
|
Effects
of hyperinflation
|
|
217
|
|
283
|
|
Other
comprehensive income/(expense) for the year, net of
tax
|
|
1,017
|
|
(4,670
|
)
|
Total comprehensive income for the year
|
|
9,725
|
|
10,355
|
|
Attributable
to:
|
|
|
|
||
–
ordinary shareholders of the parent company
|
|
6,838
|
|
8,083
|
|
–
preference shareholders of the parent company
|
|
90
|
|
90
|
|
–
other equity holders
|
|
1,324
|
|
1,029
|
|
–
non-controlling interests
|
|
1,473
|
|
1,153
|
|
Total comprehensive income for the year
|
|
9,725
|
|
10,355
|
|
Consolidated
balance sheet
|
|
|
||
|
At
|
|||
|
31 Dec
|
31 Dec
|
||
|
2019
|
2018
|
||
|
$m
|
$m
|
||
Assets
|
|
|
||
Cash
and balances at central banks
|
154,099
|
|
162,843
|
|
Items
in the course of collection from other banks
|
4,956
|
|
5,787
|
|
Hong
Kong Government certificates of indebtedness
|
38,380
|
|
35,859
|
|
Trading
assets
|
254,271
|
|
238,130
|
|
Financial
assets designated and otherwise mandatorily measured at fair value
through profit or loss
|
43,627
|
|
41,111
|
|
Derivatives
|
242,995
|
|
207,825
|
|
Loans
and advances to banks
|
69,203
|
|
72,167
|
|
Loans
and advances to customers
|
1,036,743
|
|
981,696
|
|
Reverse
repurchase agreements – non-trading
|
240,862
|
|
242,804
|
|
Financial
investments
|
443,312
|
|
407,433
|
|
Prepayments,
accrued income and other assets
|
136,680
|
|
110,571
|
|
Current
tax assets
|
755
|
|
684
|
|
Interests in
associates and joint ventures
|
24,474
|
|
22,407
|
|
Goodwill and
intangible assets
|
20,163
|
|
24,357
|
|
Deferred tax
assets
|
4,632
|
|
4,450
|
|
Total
assets
|
2,715,152
|
|
2,558,124
|
|
Liabilities and equity
|
|
|
||
Liabilities
|
|
|
||
Hong
Kong currency notes in circulation
|
38,380
|
|
35,859
|
|
Deposits by
banks
|
59,022
|
|
56,331
|
|
Customer
accounts
|
1,439,115
|
|
1,362,643
|
|
Repurchase
agreements – non-trading
|
140,344
|
|
165,884
|
|
Items
in the course of transmission to other banks
|
4,817
|
|
5,641
|
|
Trading
liabilities
|
83,170
|
|
84,431
|
|
Financial
liabilities designated at fair value
|
164,466
|
|
148,505
|
|
Derivatives
|
239,497
|
|
205,835
|
|
Debt
securities in issue
|
104,555
|
|
85,342
|
|
Accruals, deferred
income and other liabilities
|
118,156
|
|
97,380
|
|
Current
tax liabilities
|
2,150
|
|
718
|
|
Liabilities under
insurance contracts
|
97,439
|
|
87,330
|
|
Provisions
|
3,398
|
|
2,920
|
|
Deferred tax
liabilities
|
3,375
|
|
2,619
|
|
Subordinated
liabilities
|
24,600
|
|
22,437
|
|
Total
liabilities
|
2,522,484
|
|
2,363,875
|
|
Equity
|
|
|
||
Called
up share capital
|
10,319
|
|
10,180
|
|
Share
premium account
|
13,959
|
|
13,609
|
|
Other
equity instruments
|
20,871
|
|
22,367
|
|
Other
reserves
|
2,127
|
|
1,906
|
|
Retained
earnings
|
136,679
|
|
138,191
|
|
Total
shareholders’ equity
|
183,955
|
|
186,253
|
|
Non-controlling
interests
|
8,713
|
|
7,996
|
|
Total
equity
|
192,668
|
|
194,249
|
|
Total
liabilities and equity
|
2,715,152
|
|
2,558,124
|
|
Consolidated
statement of cash flows
|
|||||
for the year ended 31 December
|
|||||
|
|
2019
|
2018
|
||
|
|
$m
|
$m
|
||
Profit
before tax
|
|
13,347
|
|
19,890
|
|
Adjustments
for non-cash items:
|
|
|
|
||
Depreciation,
amortisation and impairment1
|
|
10,519
|
|
1,933
|
|
Net
gain from investing activities
|
|
(399
|
)
|
(126
|
)
|
Share
of profits in associates and joint ventures
|
|
(2,354
|
)
|
(2,536
|
)
|
Gain on
disposal of subsidiaries, businesses, associates and joint
ventures
|
|
(929
|
)
|
—
|
|
Change
in expected credit losses gross of recoveries and other credit
impairment charges
|
|
3,012
|
|
2,280
|
|
Provisions
including pensions
|
|
2,423
|
|
1,944
|
|
Share-based payment
expense
|
|
478
|
|
450
|
|
Other
non-cash items included in profit before tax
|
|
(2,297
|
)
|
(1,303
|
)
|
Elimination of
exchange differences2
|
|
(3,742
|
)
|
4,930
|
|
Changes
in operating assets and liabilities
|
|
|
|
||
Change
in net trading securities and derivatives
|
|
(18,910
|
)
|
20,855
|
|
Change
in loans and advances to banks and customers
|
|
(53,760
|
)
|
(44,071
|
)
|
Change
in reverse repurchase agreements – non-trading
|
|
(7,390
|
)
|
(25,399
|
)
|
Change
in financial assets designated and otherwise mandatorily measured
at fair value
|
|
(2,308
|
)
|
(1,515
|
)
|
Change
in other assets
|
|
(21,863
|
)
|
6,766
|
|
Change
in deposits by banks and customer accounts
|
|
79,163
|
|
(5,745
|
)
|
Change
in repurchase agreements – non-trading
|
|
(25,540
|
)
|
35,882
|
|
Change
in debt securities in issue
|
|
19,268
|
|
18,806
|
|
Change
in financial liabilities designated at fair value
|
|
20,068
|
|
4,500
|
|
Change
in other liabilities
|
|
23,124
|
|
(2,187
|
)
|
Dividends received
from associates
|
|
633
|
|
910
|
|
Contributions paid
to defined benefit plans
|
|
(533
|
)
|
(332
|
)
|
Tax
paid
|
|
(2,267
|
)
|
(3,417
|
)
|
Net
cash from operating activities
|
|
29,743
|
|
32,515
|
|
Purchase of
financial investments
|
|
(445,907
|
)
|
(399,458
|
)
|
Proceeds from the
sale and maturity of financial investments
|
|
413,186
|
|
386,056
|
|
Net
cash flows from the purchase and sale of property, plant and
equipment
|
|
(1,343
|
)
|
(1,196
|
)
|
Net
cash flows from purchase/(disposal) of customer and loan
portfolios
|
|
1,118
|
|
(204
|
)
|
Net
investment in intangible assets
|
|
(2,289
|
)
|
(1,848
|
)
|
Net
cash flow on disposal of subsidiaries, businesses, associates and
joint ventures
|
|
(83
|
)
|
4
|
|
Net
cash from investing activities
|
|
(35,318
|
)
|
(16,646
|
)
|
Issue
of ordinary share capital and other equity instruments
|
|
—
|
|
6,001
|
|
Cancellation of
shares
|
|
(1,000
|
)
|
(1,998
|
)
|
Net
sales of own shares for market-making and investment
purposes
|
|
141
|
|
133
|
|
Redemption of
preference shares and other equity instruments
|
|
—
|
|
(6,078
|
)
|
Subordinated loan
capital repaid3
|
|
(4,210
|
)
|
(4,077
|
)
|
Dividends paid to
shareholders of the parent company and non-controlling
interests
|
|
(9,773
|
)
|
(10,762
|
)
|
Net
cash from financing activities
|
|
(14,842
|
)
|
(16,781
|
)
|
Net decrease in cash and cash equivalents
|
|
(20,417
|
)
|
(912
|
)
|
Cash
and cash equivalents at 1 Jan4
|
|
312,911
|
|
323,718
|
|
Exchange
differences in respect of cash and cash equivalents
|
|
1,248
|
|
(9,895
|
)
|
Cash
and cash equivalents at 31 Dec4, 5
|
|
293,742
|
|
312,911
|
|
Cash and cash equivalents comprise:
|
|
|
|
||
–
cash and balances at central banks
|
|
154,099
|
|
162,843
|
|
–
items in the course of collection from other banks
|
|
4,956
|
|
5,787
|
|
–
loans and advances to banks of one month or less
|
|
41,626
|
|
39,460
|
|
–
reverse repurchase agreements with banks of one month or
less
|
|
65,370
|
|
74,702
|
|
–
treasury bills, other bills and certificates of deposit less than
three months
|
|
20,132
|
|
21,685
|
|
–
cash collateral and net settlement accounts
|
|
12,376
|
|
14,075
|
|
–
less: items in the course of transmission to other
banks
|
|
(4,817
|
)
|
(5,641
|
)
|
Cash and cash equivalents at 31 Dec4, 5
|
|
293,742
|
|
312,911
|
|
Consolidated statement of changes in equity
|
|
|
|
|
Other reserves
|
|
|
|
|||||||||||||
|
Called up
share capital
and share
premium
|
Other
equity
instru-ments
|
Retained
earnings3,4
|
Financial
assets at
FVOCI reserve
|
Cash flow
hedging
reserve
|
Foreign
exchange
reserve
|
Merger
and other
reserves4,6
|
Totalshare-
holders’
equity
|
Non-
controlling
interests
|
Total
equity
|
||||||||||
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||||||||||
At 1 Jan 2019
|
23,789
|
|
22,367
|
|
138,191
|
|
(1,532
|
)
|
(206
|
)
|
(26,133
|
)
|
29,777
|
|
186,253
|
|
7,996
|
|
194,249
|
|
Profit
for the year
|
—
|
|
—
|
|
7,383
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7,383
|
|
1,325
|
|
8,708
|
|
Other
comprehensive income(net of tax)
|
—
|
|
—
|
|
(1,759
|
)
|
1,424
|
|
204
|
|
1,000
|
|
—
|
|
869
|
|
148
|
|
1,017
|
|
–
debt instruments at fair value through other comprehensive
income
|
—
|
|
—
|
|
—
|
|
1,146
|
|
—
|
|
—
|
|
—
|
|
1,146
|
|
6
|
|
1,152
|
|
–
equity instruments designated at fair value through other
comprehensive income
|
—
|
|
—
|
|
—
|
|
278
|
|
—
|
|
—
|
|
—
|
|
278
|
|
88
|
|
366
|
|
–
cash flow hedges
|
—
|
|
—
|
|
—
|
|
—
|
|
204
|
|
—
|
|
—
|
|
204
|
|
2
|
|
206
|
|
–
changes in fair value of financial liabilities designated at fair
value upon initial recognition arising from changes in own credit
risk
|
—
|
|
—
|
|
(2,002
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(2,002
|
)
|
—
|
|
(2,002
|
)
|
–
remeasurement of defined benefit asset/liability
|
—
|
|
—
|
|
5
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5
|
|
8
|
|
13
|
|
–
share of other comprehensive income of associates and joint
ventures
|
—
|
|
—
|
|
21
|
|
—
|
|
—
|
|
—
|
|
—
|
|
21
|
|
—
|
|
21
|
|
–
effects of hyperinflation
|
—
|
|
—
|
|
217
|
|
—
|
|
—
|
|
—
|
|
—
|
|
217
|
|
—
|
|
217
|
|
–
exchange differences
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,000
|
|
—
|
|
1,000
|
|
44
|
|
1,044
|
|
Total comprehensive income for the year
|
—
|
|
—
|
|
5,624
|
|
1,424
|
|
204
|
|
1,000
|
|
—
|
|
8,252
|
|
1,473
|
|
9,725
|
|
Shares
issued under employee remuneration and
share plans
|
557
|
|
—
|
|
(495
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
62
|
|
—
|
|
62
|
|
Shares
issued in lieu of dividends and amounts
arising thereon
|
—
|
|
—
|
|
2,687
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,687
|
|
—
|
|
2,687
|
|
Dividends
to shareholders
|
—
|
|
—
|
|
(11,683
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(11,683
|
)
|
(777
|
)
|
(12,460
|
)
|
Redemption
of securities2
|
—
|
|
(1,496
|
)
|
(12
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,508
|
)
|
—
|
|
(1,508
|
)
|
Transfers7
|
—
|
|
—
|
|
2,475
|
|
—
|
|
—
|
|
—
|
|
(2,475
|
)
|
—
|
|
—
|
|
—
|
|
Cost of
share-based payment arrangements
|
—
|
|
—
|
|
478
|
|
—
|
|
—
|
|
—
|
|
—
|
|
478
|
|
—
|
|
478
|
|
Cancellation
of shares9
|
(68
|
)
|
—
|
|
(1,000
|
)
|
—
|
|
—
|
|
—
|
|
68
|
|
(1,000
|
)
|
—
|
|
(1,000
|
)
|
Other
movements
|
—
|
|
—
|
|
414
|
|
—
|
|
—
|
|
—
|
|
—
|
|
414
|
|
21
|
|
435
|
|
At 31 Dec 2019
|
24,278
|
|
20,871
|
|
136,679
|
|
(108
|
)
|
(2
|
)
|
(25,133
|
)
|
27,370
|
|
183,955
|
|
8,713
|
|
192,668
|
|
Consolidated
statement of changes in equity (continued)
|
||||||||||||||||||||
|
|
|
|
Other reserves
|
|
|
|
|||||||||||||
|
Called
up
share
capital
and
share
premium
|
Other
equity
instru-
ments
|
Retained
earnings3,4
|
Financial
assets
at
FVOCI
reserve5
|
Cash
flow
hedging
reserve
|
Foreign
exchange
reserve
|
Merger
and
other
reserves4,6
|
Total
share-
holders’
equity
|
Non-
controlling
interests
|
Total
equity
|
||||||||||
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||||||||||
At 31 Dec 2017
|
20,337
|
|
22,250
|
|
139,999
|
|
(350
|
)
|
(222
|
)
|
(19,072
|
)
|
27,308
|
|
190,250
|
|
7,621
|
|
197,871
|
|
Impact
on transition to IFRS 910
|
—
|
|
—
|
|
(585
|
)
|
(1,021
|
)
|
—
|
|
—
|
|
—
|
|
(1,606
|
)
|
(41
|
)
|
(1,647
|
)
|
At 1 Jan 2018
|
20,337
|
|
22,250
|
|
139,414
|
|
(1,371
|
)
|
(222
|
)
|
(19,072
|
)
|
27,308
|
|
188,644
|
|
7,580
|
|
196,224
|
|
Profit for the year
|
—
|
|
—
|
|
13,727
|
|
—
|
|
—
|
|
—
|
|
—
|
|
13,727
|
|
1,298
|
|
15,025
|
|
Other
comprehensive income(net of tax)
|
—
|
|
—
|
|
2,765
|
|
(245
|
)
|
16
|
|
(7,061
|
)
|
—
|
|
(4,525
|
)
|
(145
|
)
|
(4,670
|
)
|
–
debt instruments at fair value through other comprehensive
income
|
—
|
|
—
|
|
—
|
|
(245
|
)
|
—
|
|
—
|
|
—
|
|
(245
|
)
|
2
|
|
(243
|
)
|
1 equity instruments
designated at fair value through other comprehensive
income
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(27
|
)
|
(27
|
)
|
–
cash flow hedges
|
—
|
|
—
|
|
—
|
|
—
|
|
16
|
|
—
|
|
—
|
|
16
|
|
3
|
|
19
|
|
–
changes in fair value of financial liabilities designated at fair
value upon initial recognition arising from changes in own credit
risk
|
—
|
|
—
|
|
2,847
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,847
|
|
—
|
|
2,847
|
|
–
remeasurement of defined benefit asset/liability
|
—
|
|
—
|
|
(301
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(301
|
)
|
(28
|
)
|
(329
|
)
|
–
share of other comprehensive income of associates and joint
ventures
|
—
|
|
—
|
|
(64
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(64
|
)
|
—
|
|
(64
|
)
|
–
effects of hyperinflation
|
—
|
|
—
|
|
283
|
|
—
|
|
—
|
|
—
|
|
—
|
|
283
|
|
—
|
|
283
|
|
–
exchange differences
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(7,061
|
)
|
—
|
|
(7,061
|
)
|
(95
|
)
|
(7,156
|
)
|
Total
comprehensive income for the year
|
—
|
|
—
|
|
16,492
|
|
(245
|
)
|
16
|
|
(7,061
|
)
|
—
|
|
9,202
|
|
1,153
|
|
10,355
|
|
Shares
issued under employee remuneration and
share plans
|
721
|
|
—
|
|
(610
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
111
|
|
—
|
|
111
|
|
Shares
issued in lieu of dividends and amounts
arising thereon
|
—
|
|
—
|
|
1,494
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,494
|
|
—
|
|
1,494
|
|
Capital
securities issued1
|
—
|
|
5,968
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5,968
|
|
—
|
|
5,968
|
|
Dividends
to shareholders
|
—
|
|
—
|
|
(11,547
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(11,547
|
)
|
(710
|
)
|
(12,257
|
)
|
Redemption
of securities2
|
—
|
|
(5,851
|
)
|
(237
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(6,088
|
)
|
—
|
|
(6,088
|
)
|
Transfers7
|
—
|
|
—
|
|
(2,200
|
)
|
—
|
|
—
|
|
—
|
|
2,200
|
|
—
|
|
—
|
|
—
|
|
Cost of
share-based payment arrangements
|
—
|
|
—
|
|
450
|
|
—
|
|
—
|
|
—
|
|
—
|
|
450
|
|
—
|
|
450
|
|
Cancellation
of shares8,9
|
2,731
|
|
—
|
|
(4,998
|
)
|
—
|
|
—
|
|
—
|
|
269
|
|
(1,998
|
)
|
—
|
|
(1,998
|
)
|
Other
movements
|
—
|
|
—
|
|
(67
|
)
|
84
|
|
—
|
|
—
|
|
—
|
|
17
|
|
(27
|
)
|
(10
|
)
|
At 31 Dec 2018
|
23,789
|
|
22,367
|
|
138,191
|
|
(1,532
|
)
|
(206
|
)
|
(26,133
|
)
|
29,777
|
|
186,253
|
|
7,996
|
|
194,249
|
|
1
|
Basis of preparation and significant accounting
policies
|
IAS 17
|
IFRS 16
|
Leases were classified as either finance or operating leases.
Payments made under operating leases were charged to profit or loss
on a straight-line basis over the period of the lease.
|
Leases
are recognised as an ROU asset and a corresponding liability at the
date at which the leased asset is made available for use. Lease
payments are allocated between the liability and finance cost. The
finance cost is charged to profit or loss over the lease term so as
to produce a constant period rate of interest on the remaining
balance of the liability. The ROU asset is depreciated over the
shorter of the ROU asset’s useful economic life and the lease
term on a straight-line basis.
In
determining the lease term, we consider all facts and circumstances
that create an economic incentive to exercise an extension option
or not exercise a termination option over the planning horizon of
five years.
In
general, it is not expected that the discount rate implicit in the
lease is available so the lessee’s incremental borrowing rate
is used. This is the rate that the lessee would have to pay to
borrow the funds necessary to obtain an asset of a similar value in
a similar economic environment with similar terms and conditions.
The rates are determined for each economic environment in which we
operate and for each term by adjusting swap rates with funding
spreads (own credit spread) and cross-currency basis where
appropriate.
|
2
|
Tax
|
Tax
expense
|
||||
|
2019
|
2018
|
||
|
$m
|
$m
|
||
Current
tax1
|
3,768
|
|
4,195
|
|
– for this year
|
3,689
|
|
4,158
|
|
– adjustments in respect of prior years
|
79
|
|
37
|
|
Deferred tax
|
871
|
|
670
|
|
– origination and reversal of temporary
differences
|
684
|
|
656
|
|
– effect of changes in tax rates
|
(11
|
)
|
17
|
|
– adjustments in respect of prior years
|
198
|
|
(3
|
)
|
Year ended 31 Dec2
|
4,639
|
|
4,865
|
|
|
2019
|
2018
|
||||||
|
$m
|
%
|
$m
|
%
|
||||
Profit
before tax
|
13,347
|
|
|
19,890
|
|
|
||
Tax expense
|
|
|
|
|
||||
–
taxation at UK corporation tax rate of 19.00% (2018:
19.00%)
|
2,536
|
|
19.00
|
|
3,779
|
|
19.00
|
|
–
impact of differently taxed overseas profits in overseas
locations
|
253
|
|
1.9
|
|
264
|
|
1.3
|
|
Items increasing tax charge in 2019:
|
|
|
|
|
||||
–
non-deductible goodwill write-down
|
1,421
|
|
10.7
|
|
—
|
|
—
|
|
–
local taxes and overseas withholding taxes
|
484
|
|
3.6
|
|
437
|
|
2.2
|
|
–
other permanent disallowables
|
481
|
|
3.6
|
|
396
|
|
2.0
|
|
–
non-deductible UK customer compensation
|
382
|
|
2.9
|
|
16
|
|
0.1
|
|
–
UK tax losses not recognised
|
364
|
|
2.7
|
|
435
|
|
2.2
|
|
–
adjustments in respect of prior period liabilities
|
277
|
|
2.1
|
|
34
|
|
0.2
|
|
–
bank levy
|
184
|
|
1.4
|
|
191
|
|
1.0
|
|
–
impacts of hyperinflation
|
29
|
|
0.2
|
|
78
|
|
0.4
|
|
–
UK banking surcharge
|
29
|
|
0.2
|
|
229
|
|
1.1
|
|
–
non-UK movements in unrecognised deferred tax
|
12
|
|
0.1
|
|
32
|
|
0.2
|
|
–
non-deductible regulatory settlements
|
5
|
|
—
|
|
153
|
|
0.8
|
|
Items
reducing tax charge in 2019:
|
|
|
|
|
||||
–
non-taxable income and gains
|
(844
|
)
|
(6.3
|
)
|
(691
|
)
|
(3.5
|
)
|
–
effect of profits in associates and joint ventures
|
(467
|
)
|
(3.5
|
)
|
(492
|
)
|
(2.5
|
)
|
–
deductions for AT1 coupon payments
|
(263
|
)
|
(2.0
|
)
|
—
|
|
—
|
|
–
non-taxable gain on dilution of shareholding in SABB
|
(181
|
)
|
(1.3
|
)
|
—
|
|
—
|
|
–
impact of changes in tax rates
|
(11
|
)
|
(0.1
|
)
|
17
|
|
0.1
|
|
–
other items
|
(52
|
)
|
(0.4
|
)
|
(13
|
)
|
(0.1
|
)
|
Year ended 31 Dec
|
4,639
|
|
34.8
|
|
4,865
|
|
24.5
|
|
|
Movement
of deferred tax assets and liabilities
|
||||||||||||||||||
|
Loan
impairment
provisions
|
Unused tax
losses and t
ax credits
|
Derivatives,
FVOD1
and other
investments
|
Insurance
business
|
Expense
provisions
|
Fixed assets
|
Retirement
obligations
|
Other
|
Total
|
||||||||||
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|||||||||
|
Assets
|
982
|
|
1,156
|
|
492
|
|
—
|
|
629
|
|
1,151
|
|
—
|
|
738
|
|
5,148
|
|
|
Liabilities
|
—
|
|
—
|
|
(376
|
)
|
(1,271
|
)
|
—
|
|
—
|
|
(1,387
|
)
|
(283
|
)
|
(3,317
|
)
|
|
At 1 Jan 2019
|
982
|
|
1,156
|
|
116
|
|
(1,271
|
)
|
629
|
|
1,151
|
|
(1,387
|
)
|
455
|
|
1,831
|
|
|
Income statement
|
45
|
|
266
|
|
(386
|
)
|
(303
|
)
|
(18
|
)
|
(185
|
)
|
(149
|
)
|
(141
|
)
|
(871
|
)
|
|
Other comprehensive income
|
—
|
|
—
|
|
544
|
|
—
|
|
—
|
|
—
|
|
30
|
|
(391
|
)
|
183
|
|
|
Equity
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Foreign exchange and other adjustments
|
(44
|
)
|
(8
|
)
|
147
|
|
(47
|
)
|
39
|
|
36
|
|
(107
|
)
|
98
|
|
114
|
|
|
At 31 Dec 2019
|
983
|
|
1,414
|
|
421
|
|
(1,621
|
)
|
650
|
|
1,002
|
|
(1,613
|
)
|
21
|
|
1,257
|
|
|
Assets2
|
983
|
|
1,414
|
|
979
|
|
—
|
|
650
|
|
1,002
|
|
—
|
|
422
|
|
5,450
|
|
|
Liabilities2
|
—
|
|
—
|
|
(558
|
)
|
(1,621
|
)
|
—
|
|
—
|
|
(1,613
|
)
|
(401
|
)
|
(4,193
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Assets
|
713
|
|
1,373
|
|
1,282
|
|
—
|
|
643
|
|
1,201
|
|
352
|
|
760
|
|
6,324
|
|
|
Liabilities
|
—
|
|
—
|
|
(93
|
)
|
(1,182
|
)
|
—
|
|
—
|
|
(1,387
|
)
|
(968
|
)
|
(3,630
|
)
|
|
At 1 Jan 2018
|
713
|
|
1,373
|
|
1,189
|
|
(1,182
|
)
|
643
|
|
1,201
|
|
(1,035
|
)
|
(208
|
)
|
2,694
|
|
|
IFRS 9
transitional adjustment
|
358
|
|
—
|
|
(411
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
459
|
|
406
|
|
|
Income statement
|
(72
|
)
|
(203
|
)
|
51
|
|
(104
|
)
|
19
|
|
(68
|
)
|
35
|
|
(328
|
)
|
(670
|
)
|
|
Other comprehensive income
|
—
|
|
—
|
|
(722
|
)
|
—
|
|
—
|
|
—
|
|
25
|
|
165
|
|
(532
|
)
|
|
Equity
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(15
|
)
|
(8
|
)
|
(23
|
)
|
|
Foreign exchange and other adjustments
|
(17
|
)
|
(14
|
)
|
9
|
|
15
|
|
(33
|
)
|
18
|
|
(397
|
)
|
375
|
|
(44
|
)
|
|
At 31
Dec 2018
|
982
|
|
1,156
|
|
116
|
|
(1,271
|
)
|
629
|
|
1,151
|
|
(1,387
|
)
|
455
|
|
1,831
|
|
|
Assets2
|
982
|
|
1,156
|
|
492
|
|
—
|
|
629
|
|
1,151
|
|
—
|
|
738
|
|
5,148
|
|
|
Liabilities2
|
—
|
|
—
|
|
(376
|
)
|
(1,271
|
)
|
—
|
|
—
|
|
(1,387
|
)
|
(283
|
)
|
(3,317
|
)
|
3
|
Dividends
|
|
Dividends
to shareholders of the parent company
|
||||||||||||
|
2019
|
2018
|
|||||||||||
|
|
Per
share
|
Total
|
Settled
in scrip
|
Per
share
|
Total
|
Settled
in scrip
|
||||||
|
|
$
|
$m
|
$m
|
$
|
$m
|
$m
|
||||||
|
Dividends
paid on ordinary shares
|
|
|
|
|
|
|
||||||
|
In
respect of previous year:
|
|
|
|
|
|
|
||||||
|
– fourth interim dividend
|
0.21
|
|
4,206
|
|
1,160
|
|
0.21
|
|
4,197
|
|
393
|
|
|
In
respect of current year:
|
|
|
|
|
|
|
||||||
|
– first interim dividend
|
0.10
|
|
2,013
|
|
375
|
|
0.10
|
|
2,008
|
|
213
|
|
|
– second interim dividend
|
0.10
|
|
2,021
|
|
795
|
|
0.10
|
|
1,990
|
|
181
|
|
|
– third interim dividend
|
0.10
|
|
2,029
|
|
357
|
|
0.10
|
|
1,992
|
|
707
|
|
|
Total
|
0.51
|
|
10,269
|
|
2,687
|
|
0.51
|
|
10,187
|
|
1,494
|
|
|
Total dividends on preference shares classified as equity (paid
quarterly)
|
62.00
|
|
90
|
|
|
62.00
|
|
90
|
|
|
||
|
Total
coupons on capital securities classified as equity
|
|
1,324
|
|
|
|
1,270
|
|
|
||||
|
Dividends
to shareholders
|
|
11,683
|
|
|
|
11,547
|
|
|
4
|
Earnings per share
|
Profit
attributable to the ordinary shareholders of the parent
company
|
||||
|
|
|||
|
2019
|
2018
|
||
|
$m
|
$m
|
||
Profit
attributable to shareholders of the parent company
|
7,383
|
|
13,727
|
|
Dividend
payable on preference shares classified as equity
|
(90
|
)
|
(90
|
)
|
Coupon
payable on capital securities classified as equity
|
(1,324
|
)
|
(1,029
|
)
|
Year ended 31 Dec
|
5,969
|
|
12,608
|
|
Basic
and diluted earnings per share
|
|||||||||||||
|
|
2019
|
2018
|
||||||||||
|
|
Profit
|
Number of shares
|
Per share
|
Profit
|
Number of shares
|
Per share
|
||||||
|
|
$m
|
(millions)
|
$
|
$m
|
(millions)
|
$
|
||||||
Basic1
|
|
5,969
|
|
20,158
|
|
0.30
|
|
12,608
|
|
19,896
|
|
0.63
|
|
Effect of dilutive potential ordinary shares
|
|
|
75
|
|
|
|
87
|
|
|
||||
Diluted1
|
|
5,969
|
|
20,233
|
|
0.30
|
|
12,608
|
|
19,983
|
|
0.63
|
|
5
|
Adjusted balance sheet reconciliation
|
|
At
|
|||||||
|
31 Dec 2019
|
31 Dec 2018
|
||||||
|
Reported and Adjusted
|
Adjusted
|
Currency
translation
|
Reported
|
||||
|
$m
|
$m
|
$m
|
$m
|
||||
Loans
and advances to customers (net)
|
1,036,743
|
|
994,276
|
|
(12,580
|
)
|
981,696
|
|
Interests
in associates and joint ventures
|
24,474
|
|
22,301
|
|
106
|
|
22,407
|
|
Total
external assets
|
2,715,152
|
|
2,589,195
|
|
(31,071
|
)
|
2,558,124
|
|
Customer
accounts
|
1,439,115
|
|
1,379,738
|
|
(17,095
|
)
|
1,362,643
|
|
|
|
6
|
Reconciliation
of reported and adjusted items
|
|
|
2019
|
2018
|
||
|
|
$m
|
$m
|
||
Revenue1
|
|
|
|
||
Reported
|
|
56,098
|
|
53,780
|
|
Currency
translation
|
|
|
(1,617
|
)
|
|
Significant
items
|
|
(689
|
)
|
168
|
|
–
customer redress programmes
|
|
163
|
|
(53
|
)
|
–
disposals, acquisitions and investment in new
businesses
|
|
(768
|
)
|
113
|
|
–
fair value movements on financial instruments2
|
|
(84
|
)
|
100
|
|
– currency translation on significant items
|
|
|
8
|
|
|
Adjusted
|
|
55,409
|
|
52,331
|
|
ECL
|
|
|
|
||
Reported
|
|
(2,756
|
)
|
(1,767
|
)
|
Currency
translation
|
|
|
78
|
|
|
Adjusted
|
|
(2,756
|
)
|
(1,689
|
)
|
Operating expenses
|
|
|
|
||
Reported
|
|
(42,349
|
)
|
(34,659
|
)
|
Currency
translation
|
|
|
1,109
|
|
|
Significant
items
|
|
9,554
|
|
1,644
|
|
–
costs of structural reform3
|
|
158
|
|
361
|
|
–
customer redress programmes
|
|
1,281
|
|
146
|
|
–
disposals, acquisitions and investment in new
businesses
|
|
—
|
|
52
|
|
–
goodwill impairment
|
|
7,349
|
|
—
|
|
–
past service costs of guaranteed minimum pension benefits
equalisation
|
|
—
|
|
228
|
|
–
restructuring and other related costs
|
|
827
|
|
66
|
|
–
settlements and provisions in connection with legal and regulatory
matters
|
|
(61
|
)
|
816
|
|
– currency translation on significant items
|
|
|
(25
|
)
|
|
Adjusted
|
|
(32,795
|
)
|
(31,906
|
)
|
Share of profit in associates and joint ventures
|
|
|
|
||
Reported
|
|
2,354
|
|
2,536
|
|
Currency
translation
|
|
|
(90
|
)
|
|
Adjusted
|
|
2,354
|
|
2,446
|
|
Profit
before tax
|
|
|
|
||
Reported
|
|
13,347
|
|
19,890
|
|
Currency
translation
|
|
|
(520
|
)
|
|
Significant
items
|
|
8,865
|
|
1,812
|
|
–
revenue
|
|
(689
|
)
|
168
|
|
–
operating expenses
|
|
9,554
|
|
1,644
|
|
Adjusted
|
|
22,212
|
|
21,182
|
|
7
|
Contingent liabilities, contractual commitments and
guarantees
|
|
2019
|
2018
|
||
|
$m
|
$m
|
||
Guarantees
and other contingent liabilities:
|
|
|
||
– financial guarantees
|
20,214
|
|
23,518
|
|
– performance and other guarantees
|
75,933
|
|
71,484
|
|
–
other contingent liabilities
|
1,576
|
|
1,408
|
|
At 31 Dec
|
97,723
|
|
96,410
|
|
Commitments1:
|
|
|
||
–
documentary credits and short-term trade-related
transactions
|
6,316
|
|
7,083
|
|
– forward asset purchases and forward deposits
placed
|
56,326
|
|
67,265
|
|
–
standby facilities, credit lines and other commitments to
lend
|
734,966
|
|
705,918
|
|
At 31 Dec
|
797,608
|
|
780,266
|
|
8
|
Legal proceedings and regulatory matters
|
9
|
Events after the balance sheet date
|
10
|
Capital structure
|
Capital
ratios
|
||||
|
At 31 Dec
|
|||
|
2019
|
2018
|
||
|
%
|
%
|
||
Transitional basis
|
|
|
||
Common
equity tier 1 ratio
|
14.7
|
|
14.0
|
|
Tier 1
ratio
|
17.6
|
|
17.0
|
|
Total capital ratio
|
20.4
|
|
20.0
|
|
|
|
|
||
End point basis
|
|
|
||
Common equity tier 1 ratio
|
14.7
|
|
14.0
|
|
Tier 1 ratio
|
17.2
|
|
16.6
|
|
Total capital ratio
|
18.9
|
|
19.4
|
|
Total
regulatory capital and risk-weighted assets
|
||||
|
At 31 Dec
|
|||
|
2019
|
2018
|
||
|
$m
|
$m
|
||
Transitional basis
|
|
|
||
Common
equity tier 1 capital
|
123,966
|
|
121,022
|
|
Additional tier 1 capital
|
24,393
|
|
26,120
|
|
Tier 2 capital
|
23,791
|
|
26,096
|
|
Total regulatory capital
|
172,150
|
|
173,238
|
|
Risk-weighted assets
|
843,395
|
|
865,318
|
|
|
|
|
||
End point basis
|
|
|
||
Common equity tier 1 capital
|
123,966
|
|
121,022
|
|
Additional tier 1 capital
|
20,870
|
|
22,525
|
|
Tier 2 capital
|
14,473
|
|
24,511
|
|
Total regulatory capital
|
159,309
|
|
168,058
|
|
Risk-weighted assets
|
843,395
|
|
865,318
|
|
Leverage
ratio
|
|||||
|
|
At 31 Dec
|
|||
|
|
2019
|
2018
|
||
Ref*
|
|
$bn
|
$bn
|
||
20
|
Tier 1 capital
|
144.8
|
143.5
|
||
21
|
Total leverage ratio exposure
|
2,726.5
|
2,614.9
|
||
|
|
%
|
%
|
||
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 average1
|
2,535.4
|
2,464.4
|
||
|
|
%
|
%
|
||
|
UK
leverage ratio – quarterly average1
|
5.8
|
5.8
|
||
|
UK
leverage ratio – quarter end1
|
5.7
|
6.0
|
11
|
Statutory accounts
|
12
|
Dealings in HSBC Holdings plc listed securities
|
Month
|
Number
of shares
|
Highest price
paid per share
|
Lowest price
paid per share
|
Average price paid
per share
|
Aggregate
price paid
|
|
|
|
£
|
£
|
£
|
£
|
|
Share buy-back of 2019
|
|
|
|
|
|
|
Aug-19
|
93,613,105
|
|
6.3790
|
5.7830
|
6.0033
|
561,986,347
|
Sep-19
|
42,163,889
|
|
6.2810
|
5.8630
|
6.0621
|
255,601,583
|
|
135,776,994
|
|
|
|
|
817,587,930
|
13
|
Interim
dividends for 2020
|
14
|
Earnings
releases and interim results
|
15
|
Corporate governance codes
|
16
|
Cautionary statement regarding forward-looking
statements
|
17
|
Certain defined terms
|
18
|
For further information contact:
|
Media
Relations
UK
– Heidi Ashley
Telephone:
+44 (0) 20 7992 2045
|
Investor
Relations
UK
– Richard O’Connor
Telephone:
+44 (0) 20 7991 6590
Email:
[email protected]
|
Hong
Kong – Patrick Humphris
Telephone:
+852 2822 2052
|
Hong
Kong – Mark Phin
Telephone:
+852 2822 4908
Email:
[email protected]
|
HSBC
Holdings plc
|
|
|
|
|
By:
|
|
Name:
Aileen Taylor
|
|
Title:
Group Company Secretary and Chief Governance Officer
|
|
|
|
Date:
18 February
2020
|