Key
financial metrics
|
|
|
For the year ended
|
|||||
Reported results
|
Footnotes
|
2020
|
2019
|
2018
|
|||
Reported revenue ($m)
|
|
50,429
|
|
56,098
|
|
53,780
|
|
Reported profit before tax ($m)
|
|
8,777
|
|
13,347
|
|
19,890
|
|
Reported profit after tax ($m)
|
|
6,099
|
|
8,708
|
|
15,025
|
|
Profit attributable to the ordinary shareholders of the parent
company ($m)
|
|
3,898
|
|
5,969
|
|
12,608
|
|
Cost efficiency ratio (%)
|
|
68.3
|
|
75.5
|
|
64.4
|
|
Basic earnings per share ($)
|
|
0.19
|
|
0.30
|
|
0.63
|
|
Diluted earnings per share ($)
|
|
0.19
|
|
0.30
|
|
0.63
|
|
Net
interest margin (%)
|
|
1.32
|
|
1.58
|
|
1.66
|
|
Alternative performance measures
|
|
|
|
|
|||
Adjusted revenue ($m)
|
|
50,366
|
|
54,944
|
|
52,098
|
|
Adjusted
profit before tax ($m)
|
|
12,149
|
|
22,149
|
|
21,199
|
|
Adjusted
cost efficiency ratio (%)
|
|
62.5
|
|
59.2
|
|
60.9
|
|
Expected
credit losses and other credit impairment charges
(‘ECL’) as % of average gross loans and advances to
customers (%)
|
|
0.81
|
|
0.25
|
|
0.16
|
|
Return on average ordinary shareholders’ equity
(%)
|
|
2.3
|
|
3.6
|
|
7.7
|
|
Return on average tangible equity (%)
|
1
|
3.1
|
|
8.4
|
|
8.6
|
|
|
|
|
|
|
|||
|
|
At 31 Dec
|
|||||
Balance sheet
|
|
2020
|
2019
|
2018
|
|||
Total
assets ($m)
|
|
2,984,164
|
|
2,715,152
|
|
2,558,124
|
|
Net
loans and advances to customers ($m)
|
|
1,037,987
|
|
1,036,743
|
|
981,696
|
|
Customer
accounts ($m)
|
|
1,642,780
|
|
1,439,115
|
|
1,362,643
|
|
Average
interest-earning assets ($m)
|
|
2,092,900
|
|
1,922,822
|
|
1,839,346
|
|
Loans
and advances to customers as % of customer accounts
(%)
|
|
63.2
|
|
72.0
|
|
72.0
|
|
Total
shareholders’ equity ($m)
|
|
196,443
|
|
183,955
|
|
186,253
|
|
Tangible
ordinary shareholders’ equity ($m)
|
|
156,423
|
|
144,144
|
|
140,056
|
|
Net asset value per ordinary share at period end ($)
|
|
8.62
|
|
8.00
|
|
8.13
|
|
Tangible net asset value per ordinary share at period end
($)
|
2
|
7.75
|
|
7.13
|
|
7.01
|
|
Capital, leverage and liquidity
|
|
|
|
|
|||
Common equity tier 1 capital ratio (%)
|
3
|
15.9
|
|
14.7
|
|
14.0
|
|
Risk-weighted assets ($m)
|
3
|
857,520
|
|
843,395
|
|
865,318
|
|
Total capital ratio (%)
|
3
|
21.5
|
|
20.4
|
|
20.0
|
|
Leverage ratio (%)
|
3
|
5.5
|
|
5.3
|
|
5.5
|
|
High-quality
liquid assets (liquidity value) ($bn)
|
|
678
|
|
601
|
|
567
|
|
Liquidity
coverage ratio (%)
|
|
139
|
|
150
|
|
154
|
|
Share count
|
|
|
|
|
|||
Period
end basic number of $0.50 ordinary shares outstanding
(millions)
|
|
20,184
|
|
20,206
|
|
19,981
|
|
Period
end basic number of $0.50 ordinary shares outstanding and dilutive
potential ordinary shares (millions)
|
|
20,272
|
|
20,280
|
|
20,059
|
|
Average
basic number of $0.50 ordinary shares outstanding
(millions)
|
|
20,169
|
|
20,158
|
|
19,896
|
|
Dividend per ordinary share (in respect of the period)
($)
|
4
|
0.15
|
|
0.30
|
|
0.51
|
|
Highlights
|
|
|
Year ended 31 Dec
|
|||
|
|
2020
|
2019
|
||
|
Footnotes
|
$m
|
$m
|
||
Reported
|
|
|
|
||
Revenue
|
1
|
50,429
|
|
56,098
|
|
ECL
|
|
(8,817)
|
|
(2,756)
|
|
Operating expenses
|
|
(34,432)
|
|
(42,349)
|
|
Share of profit in associates and joint ventures
|
|
1,597
|
|
2,354
|
|
Profit before tax
|
|
8,777
|
|
13,347
|
|
Adjusted
|
2
|
|
|
||
Revenue
|
1
|
50,366
|
|
54,944
|
|
ECL
|
|
(8,817)
|
|
(2,627)
|
|
Operating expenses
|
|
(31,459)
|
|
(32,519)
|
|
Share of profit in associates and joint ventures
|
|
2,059
|
|
2,351
|
|
Profit before tax
|
|
12,149
|
|
22,149
|
|
Significant items affecting adjusted performance
|
|
|
|
||
Revenue
|
|
|
|
||
Customer redress programmes
|
|
(21)
|
|
(163)
|
|
Disposals, acquisitions and investment in new
businesses
|
|
(10)
|
|
768
|
|
Fair value movements on financial instruments
|
3
|
264
|
|
84
|
|
Restructuring and other related costs
|
4
|
(170)
|
|
—
|
|
Operating expenses
|
|
|
|
||
Costs of structural reform
|
5
|
—
|
|
(158)
|
|
Customer redress programmes
|
|
54
|
|
(1,281)
|
|
Impairment of goodwill and other intangibles
|
|
(1,090)
|
|
(7,349)
|
|
Past service costs of guaranteed minimum pension benefits
equalisation
|
|
(17)
|
|
—
|
|
Restructuring and other related costs
|
6
|
(1,908)
|
|
(827)
|
|
Settlements and provisions in connection with legal matters and
other regulatory matters
|
|
(12)
|
|
61
|
|
Share of profit in associates and joint ventures
|
|
|
|
||
Impairment of goodwill
|
|
(462)
|
|
—
|
|
Statement
by Mark E Tucker, Group Chairman
|
Review
by Noel Quinn, Group Chief Executive
|
Financial
summary
|
|
|
Year ended 31 Dec
|
|||
|
|
2020
|
2019
|
||
|
Footnotes
|
$m
|
$m
|
||
For the year
|
|
|
|
||
Profit before tax
|
|
8,777
|
|
13,347
|
|
Profit attributable to:
|
|
|
|
||
– ordinary shareholders of the parent company
|
|
3,898
|
|
5,969
|
|
Dividends declared on ordinary shares
|
1
|
—
|
|
10,269
|
|
|
|
|
|
||
At the year-end
|
|
|
|
||
Total shareholders’ equity
|
|
196,443
|
|
183,955
|
|
Total regulatory capital
|
|
184,423
|
|
172,150
|
|
Customer accounts
|
|
1,642,780
|
|
1,439,115
|
|
Total assets
|
|
2,984,164
|
|
2,715,152
|
|
Risk-weighted assets
|
|
857,520
|
|
843,395
|
|
|
|
|
|
||
Per ordinary share
|
|
$
|
$
|
||
Basic earnings per share
|
|
0.19
|
|
0.30
|
|
Dividend per ordinary share (in respect of the period)
|
|
0.15
|
|
0.51
|
|
Net asset value per ordinary share at period end
|
2
|
8.62
|
|
8.00
|
|
Tangible net asset value per ordinary share at period
end
|
|
7.75
|
|
7.13
|
|
|
|
|
|
||
Share information
|
|
|
|
||
Number of $0.50 ordinary shares in issue (millions)
|
|
20,694
|
|
20,639
|
|
Basic number of $0.50 ordinary shares outstanding
(millions)
|
|
20,184
|
|
20,206
|
|
Basic number of $0.50 ordinary shares outstanding and dilutive
potential ordinary shares (millions)
|
|
20,272
|
|
20,280
|
|
Distribution
of results by global business
|
Adjusted
profit before tax
|
||||||||
|
Year ended 31 Dec
|
|||||||
|
2020
|
20191
|
||||||
|
$m
|
%
|
$m
|
%
|
||||
Wealth and Personal Banking
|
4,140
|
|
34.1
|
|
8,883
|
|
40.1
|
|
Commercial Banking
|
1,868
|
|
15.4
|
|
7,170
|
|
32.4
|
|
Global Banking and Markets
|
4,830
|
|
39.7
|
|
5,172
|
|
23.4
|
|
Corporate Centre
|
1,311
|
|
10.8
|
|
924
|
|
4.2
|
|
Profit before tax
|
12,149
|
|
100.0
|
|
22,149
|
|
100.0
|
|
Distribution
of results by geographical region
|
Reported
profit/(loss) before tax
|
||||||||
|
Year ended 31 Dec
|
|||||||
|
2020
|
2019
|
||||||
|
$m
|
%
|
$m
|
%
|
||||
Europe
|
(4,205)
|
|
(47.9)
|
|
(4,653)
|
|
(34.9)
|
|
Asia
|
12,832
|
|
146.2
|
|
18,468
|
|
138.4
|
|
Middle East and North Africa
|
19
|
|
0.2
|
|
2,327
|
|
17.4
|
|
North America
|
168
|
|
1.9
|
|
767
|
|
5.7
|
|
Latin America
|
(37)
|
|
(0.4)
|
|
400
|
|
3.0
|
|
Global GBM goodwill impairment
|
—
|
|
—
|
|
(3,962)
|
|
(29.6)
|
|
Profit before tax
|
8,777
|
|
100.0
|
|
13,347
|
|
100.0
|
|
HSBC
adjusted profit before tax and balance sheet data
|
|
|
2020
|
|||||||||
|
|
Wealth
and
Personal Banking
|
Commercial
Banking
|
Global Banking
and
Markets
|
Corporate
Centre
|
Total
|
|||||
|
Footnotes
|
$m
|
$m
|
$m
|
$m
|
$m
|
|||||
Net operating income/(expense) before change in expected credit
losses and other credit impairment charges
|
1
|
22,013
|
|
13,312
|
|
15,303
|
|
(262)
|
|
50,366
|
|
– external
|
|
19,990
|
|
13,741
|
|
18,162
|
|
(1,527)
|
|
50,366
|
|
– inter-segment
|
|
2,023
|
|
(429)
|
|
(2,859)
|
|
1,265
|
|
—
|
|
of which: net interest income/(expense)
|
|
15,090
|
|
9,317
|
|
4,518
|
|
(1,326)
|
|
27,599
|
|
Change in expected credit losses and other credit impairment
charges
|
|
(2,855)
|
|
(4,754)
|
|
(1,209)
|
|
1
|
|
(8,817)
|
|
Net operating income/(expense)
|
|
19,158
|
|
8,558
|
|
14,094
|
|
(261)
|
|
41,549
|
|
Total operating expenses
|
|
(15,024)
|
|
(6,689)
|
|
(9,264)
|
|
(482)
|
|
(31,459)
|
|
Operating profit/(loss)
|
|
4,134
|
|
1,869
|
|
4,830
|
|
(743)
|
|
10,090
|
|
Share of profit in associates and joint ventures
|
|
6
|
|
(1)
|
|
—
|
|
2,054
|
|
2,059
|
|
Adjusted profit before tax
|
|
4,140
|
|
1,868
|
|
4,830
|
|
1,311
|
|
12,149
|
|
|
|
%
|
%
|
%
|
%
|
%
|
|||||
Share of HSBC’s adjusted profit before tax
|
|
34.1
|
|
15.4
|
|
39.7
|
|
10.8
|
|
100.0
|
|
Adjusted cost efficiency ratio
|
|
68.3
|
|
50.2
|
|
60.5
|
|
(184.0)
|
|
62.5
|
|
Adjusted balance sheet data
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|||||
Loans and advances to customers (net)
|
|
469,186
|
|
343,182
|
|
224,364
|
|
1,255
|
|
1,037,987
|
|
Interests in associates and joint ventures
|
|
447
|
|
14
|
|
143
|
|
26,080
|
|
26,684
|
|
Total external assets
|
|
881,918
|
|
570,295
|
|
1,347,440
|
|
184,511
|
|
2,984,164
|
|
Customer accounts
|
|
834,759
|
|
470,428
|
|
336,983
|
|
610
|
|
1,642,780
|
|
Adjusted risk-weighted assets
|
3
|
172,787
|
|
327,734
|
|
265,147
|
|
91,852
|
|
857,520
|
|
|
Footnotes
|
20192
|
|||||||||
Net operating income/(expense) before change in expected credit
losses and other credit impairment charges
|
1
|
25,565
|
|
15,164
|
|
14,869
|
|
(654)
|
|
54,944
|
|
– external
|
|
21,252
|
|
16,094
|
|
20,314
|
|
(2,716)
|
|
54,944
|
|
– inter-segment
|
|
4,313
|
|
(930)
|
|
(5,445)
|
|
2,062
|
|
—
|
|
of which: net interest income/(expense)
|
|
17,423
|
|
10,957
|
|
5,223
|
|
(3,264)
|
|
30,339
|
|
Change in expected credit losses and other credit impairment
(charges)/recoveries
|
|
(1,348)
|
|
(1,162)
|
|
(153)
|
|
36
|
|
(2,627)
|
|
Net operating income
|
|
24,217
|
|
14,002
|
|
14,716
|
|
(618)
|
|
52,317
|
|
Total operating expenses
|
|
(15,388)
|
|
(6,832)
|
|
(9,544)
|
|
(755)
|
|
(32,519)
|
|
Operating profit/(loss)
|
|
8,829
|
|
7,170
|
|
5,172
|
|
(1,373)
|
|
19,798
|
|
Share of profit in associates and joint ventures
|
|
54
|
|
—
|
|
—
|
|
2,297
|
|
2,351
|
|
Adjusted profit before tax
|
|
8,883
|
|
7,170
|
|
5,172
|
|
924
|
|
22,149
|
|
|
|
%
|
%
|
%
|
%
|
%
|
|||||
Share of HSBC’s adjusted profit before tax
|
|
40.1
|
|
32.4
|
|
23.4
|
|
4.2
|
|
100.0
|
|
Adjusted cost efficiency ratio
|
|
60.2
|
|
45.1
|
|
64.2
|
|
(115.4)
|
|
59.2
|
|
Adjusted balance sheet data
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
|||||
Loans and advances to customers (net)
|
|
455,618
|
|
353,781
|
|
252,131
|
|
1,166
|
|
1,062,696
|
|
Interests in associates and joint ventures
|
|
449
|
|
14
|
|
16
|
|
24,941
|
|
25,420
|
|
Total external assets
|
|
793,100
|
|
523,585
|
|
1,310,772
|
|
156,354
|
|
2,783,811
|
|
Customer accounts
|
|
768,151
|
|
397,182
|
|
304,094
|
|
780
|
|
1,470,207
|
|
Adjusted risk-weighted assets
|
3
|
164,567
|
|
332,543
|
|
276,804
|
|
81,979
|
|
855,893
|
|
Consolidated
income statement
|
|
|
2020
|
2019
|
||
|
Footnotes
|
$m
|
$m
|
||
Net interest income
|
|
27,578
|
|
30,462
|
|
–
interest income
|
1,2
|
41,756
|
|
54,695
|
|
–
interest expense
|
3
|
(14,178)
|
|
(24,233)
|
|
Net fee income
|
|
11,874
|
|
12,023
|
|
– fee income
|
|
15,051
|
|
15,439
|
|
– fee expense
|
|
(3,177)
|
|
(3,416)
|
|
Net income from financial instruments held for trading or managed
on a fair value basis
|
|
9,582
|
|
10,231
|
|
Net income/(expense) from assets and liabilities of insurance
businesses, including related derivatives, measured at fair value
through profit or loss
|
|
2,081
|
|
3,478
|
|
Changes in fair value of designated debt and related
derivatives
|
4
|
231
|
|
90
|
|
Changes in fair value of other financial instruments mandatorily
measured at fair value through profit or loss
|
|
455
|
|
812
|
|
Gains less losses from financial investments
|
|
653
|
|
335
|
|
Net insurance premium income
|
|
10,093
|
|
10,636
|
|
Other operating income
|
|
527
|
|
2,957
|
|
Total operating income
|
|
63,074
|
|
71,024
|
|
Net insurance claims and benefits paid and movement in liabilities
to policyholders
|
|
(12,645)
|
|
(14,926)
|
|
Net operating income before change in expected credit losses and
other credit impairment charges
|
5
|
50,429
|
|
56,098
|
|
Change in expected credit losses and other credit impairment
charges
|
|
(8,817)
|
|
(2,756)
|
|
Net operating income
|
|
41,612
|
|
53,342
|
|
Employee compensation and benefits
|
|
(18,076)
|
|
(18,002)
|
|
General and administrative expenses
|
|
(11,115)
|
|
(13,828)
|
|
Depreciation and impairment of property, plant and equipment and
right-of-use assets
|
6
|
(2,681)
|
|
(2,100)
|
|
Amortisation and impairment of intangible assets
|
|
(2,519)
|
|
(1,070)
|
|
Goodwill impairment
|
|
(41)
|
|
(7,349)
|
|
Total operating expenses
|
|
(34,432)
|
|
(42,349)
|
|
Operating profit
|
|
7,180
|
|
10,993
|
|
Share of profit in associates and joint ventures
|
|
1,597
|
|
2,354
|
|
Profit before tax
|
|
8,777
|
|
13,347
|
|
Tax expense
|
|
(2,678)
|
|
(4,639)
|
|
Profit for the year
|
|
6,099
|
|
8,708
|
|
Attributable to:
|
|
|
|
||
– ordinary shareholders of the parent company
|
|
3,898
|
|
5,969
|
|
– preference shareholders of the parent company
|
|
90
|
|
90
|
|
– other equity holders
|
|
1,241
|
|
1,324
|
|
– non-controlling interests
|
|
870
|
|
1,325
|
|
Profit for the year
|
|
6,099
|
|
8,708
|
|
|
|
$
|
$
|
||
Basic earnings per ordinary share
|
|
0.19
|
|
0.30
|
|
Diluted earnings per ordinary share
|
|
0.19
|
|
0.30
|
|
Consolidated
statement of comprehensive income
|
|
|
2020
|
2019
|
||
|
|
$m
|
$m
|
||
Profit for the year
|
|
6,099
|
|
8,708
|
|
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
|
|
1,750
|
|
1,152
|
|
– fair value gains/(losses)
|
|
2,947
|
|
1,793
|
|
– fair value gains transferred to the income statement on
disposal
|
|
(668)
|
|
(365)
|
|
– expected credit (recoveries)/losses recognised in the
income statement
|
|
48
|
|
109
|
|
– income taxes
|
|
(577)
|
|
(385)
|
|
Cash flow hedges
|
|
471
|
|
206
|
|
–
fair value gains/(losses)
|
|
(157)
|
|
551
|
|
– fair value losses/(gains) reclassified to the income
statement
|
|
769
|
|
(286)
|
|
–
income taxes
|
|
(141)
|
|
(59)
|
|
Share of other comprehensive income/(expense) of associates and
joint ventures
|
|
(73)
|
|
21
|
|
– share for the year
|
|
(73)
|
|
21
|
|
Exchange differences
|
|
4,855
|
|
1,044
|
|
Items that will not be reclassified subsequently to profit or
loss:
|
|
|
|
||
Remeasurement of defined benefit asset/liability
|
|
834
|
|
13
|
|
– before income taxes
|
|
1,223
|
|
(17)
|
|
– income taxes
|
|
(389)
|
|
30
|
|
Changes in fair value of financial liabilities designated at fair
value upon initial recognition arising from changes in own credit
risk
|
|
167
|
|
(2,002)
|
|
– before income taxes
|
|
190
|
|
(2,639)
|
|
– income taxes
|
|
(23)
|
|
637
|
|
Equity instruments designated at fair value through other
comprehensive income
|
|
212
|
|
366
|
|
– fair value gains/(losses)
|
|
212
|
|
364
|
|
– income taxes
|
|
—
|
|
2
|
|
Effects of hyperinflation
|
|
193
|
|
217
|
|
Other comprehensive income/(expense) for the year, net of
tax
|
|
8,409
|
|
1,017
|
|
Total comprehensive income for the year
|
|
14,508
|
|
9,725
|
|
Attributable to:
|
|
|
|
||
– ordinary shareholders of the parent company
|
|
12,146
|
|
6,838
|
|
– preference shareholders of the parent company
|
|
90
|
|
90
|
|
– other equity holders
|
|
1,241
|
|
1,324
|
|
– non-controlling interests
|
|
1,031
|
|
1,473
|
|
Total comprehensive income for the year
|
|
14,508
|
|
9,725
|
|
Consolidated
balance sheet
|
|
|
||
|
At
|
|||
|
31 Dec
|
31 Dec
|
||
|
2020
|
2019
|
||
|
$m
|
$m
|
||
Assets
|
|
|
||
Cash
and balances at central banks
|
304,481
|
|
154,099
|
|
Items
in the course of collection from other banks
|
4,094
|
|
4,956
|
|
Hong
Kong Government certificates of indebtedness
|
40,420
|
|
38,380
|
|
Trading
assets
|
231,990
|
|
254,271
|
|
Financial assets designated and otherwise mandatorily measured at
fair value through profit or loss
|
45,553
|
|
43,627
|
|
Derivatives
|
307,726
|
|
242,995
|
|
Loans
and advances to banks
|
81,616
|
|
69,203
|
|
Loans
and advances to customers
|
1,037,987
|
|
1,036,743
|
|
Reverse
repurchase agreements – non-trading
|
230,628
|
|
240,862
|
|
Financial
investments
|
490,693
|
|
443,312
|
|
Prepayments,
accrued income and other assets
|
156,412
|
|
136,680
|
|
Current
tax assets
|
954
|
|
755
|
|
Interests
in associates and joint ventures
|
26,684
|
|
24,474
|
|
Goodwill
and intangible assets
|
20,443
|
|
20,163
|
|
Deferred
tax assets
|
4,483
|
|
4,632
|
|
Total assets
|
2,984,164
|
|
2,715,152
|
|
Liabilities and equity
|
|
|
||
Liabilities
|
|
|
||
Hong
Kong currency notes in circulation
|
40,420
|
|
38,380
|
|
Deposits
by banks
|
82,080
|
|
59,022
|
|
Customer
accounts
|
1,642,780
|
|
1,439,115
|
|
Repurchase
agreements – non-trading
|
111,901
|
|
140,344
|
|
Items
in the course of transmission to other banks
|
4,343
|
|
4,817
|
|
Trading
liabilities
|
75,266
|
|
83,170
|
|
Financial
liabilities designated at fair value
|
157,439
|
|
164,466
|
|
Derivatives
|
303,001
|
|
239,497
|
|
Debt
securities in issue
|
95,492
|
|
104,555
|
|
Accruals,
deferred income and other liabilities
|
128,624
|
|
118,156
|
|
Current
tax liabilities
|
690
|
|
2,150
|
|
Liabilities
under insurance contracts
|
107,191
|
|
97,439
|
|
Provisions
|
3,678
|
|
3,398
|
|
Deferred
tax liabilities
|
4,313
|
|
3,375
|
|
Subordinated
liabilities
|
21,951
|
|
24,600
|
|
Total liabilities
|
2,779,169
|
|
2,522,484
|
|
Equity
|
|
|
||
Called up share capital
|
10,347
|
|
10,319
|
|
Share premium account
|
14,277
|
|
13,959
|
|
Other equity instruments
|
22,414
|
|
20,871
|
|
Other reserves
|
8,833
|
|
2,127
|
|
Retained earnings
|
140,572
|
|
136,679
|
|
Total shareholders’ equity
|
196,443
|
|
183,955
|
|
Non-controlling
interests
|
8,552
|
|
8,713
|
|
Total equity
|
204,995
|
|
192,668
|
|
Total liabilities and equity
|
2,984,164
|
|
2,715,152
|
|
Consolidated
statement of cash flows
|
|||||
for the year ended 31 December
|
|||||
|
|
2020
|
2019
|
||
|
Footnotes
|
$m
|
$m
|
||
Profit before tax
|
|
8,777
|
|
13,347
|
|
Adjustments for non-cash items:
|
|
|
|
||
Depreciation, amortisation and impairment
|
|
5,241
|
|
10,519
|
|
Net
gain from investing activities
|
|
(541)
|
|
(399)
|
|
Share
of profits in associates and joint ventures
|
|
(1,597)
|
|
(2,354)
|
|
Gain on
disposal of subsidiaries, businesses, associates and joint
ventures
|
|
—
|
|
(929)
|
|
Change
in expected credit losses gross of recoveries and other credit
impairment charges
|
|
9,096
|
|
3,012
|
|
Provisions
including pensions
|
|
1,164
|
|
2,423
|
|
Share-based
payment expense
|
|
433
|
|
478
|
|
Other
non-cash items included in profit before tax
|
|
(906)
|
|
(2,297)
|
|
Elimination
of exchange differences
|
1
|
(25,749)
|
|
(3,742)
|
|
Changes in operating assets and liabilities
|
|
|
|
||
Change
in net trading securities and derivatives
|
|
13,150
|
|
(18,910)
|
|
Change
in loans and advances to banks and customers
|
|
(14,131)
|
|
(53,760)
|
|
Change
in reverse repurchase agreements – non-trading
|
|
9,950
|
|
(7,390)
|
|
Change
in financial assets designated and otherwise mandatorily measured
at fair value
|
|
(1,962)
|
|
(2,308)
|
|
Change
in other assets
|
|
(19,610)
|
|
(21,863)
|
|
Change
in deposits by banks and customer accounts
|
|
226,723
|
|
79,163
|
|
Change
in repurchase agreements – non-trading
|
|
(28,443)
|
|
(25,540)
|
|
Change
in debt securities in issue
|
|
(9,075)
|
|
19,268
|
|
Change
in financial liabilities designated at fair value
|
|
(6,630)
|
|
20,068
|
|
Change
in other liabilities
|
|
20,323
|
|
23,124
|
|
Dividends
received from associates
|
|
761
|
|
633
|
|
Contributions
paid to defined benefit plans
|
|
(495)
|
|
(533)
|
|
Tax
paid
|
|
(4,259)
|
|
(2,267)
|
|
Net cash from operating activities
|
|
182,220
|
|
29,743
|
|
Purchase
of financial investments
|
|
(496,669)
|
|
(445,907)
|
|
Proceeds
from the sale and maturity of financial investments
|
|
476,990
|
|
413,186
|
|
Net
cash flows from the purchase and sale of property, plant and
equipment
|
|
(1,446)
|
|
(1,343)
|
|
Net
cash flows from purchase/(disposal) of customer and loan
portfolios
|
|
1,362
|
|
1,118
|
|
Net
investment in intangible assets
|
|
(2,064)
|
|
(2,289)
|
|
Net cash flow from acquisition and disposal of subsidiaries,
businesses, associates and joint ventures
|
|
(603)
|
|
(83)
|
|
Net cash from investing activities
|
|
(22,430)
|
|
(35,318)
|
|
Issue
of ordinary share capital and other equity instruments
|
|
1,497
|
|
—
|
|
Cancellation
of shares
|
|
—
|
|
(1,000)
|
|
Net
sales/(purchases) of own shares for market-making and investment
purposes
|
|
(181)
|
|
141
|
|
Redemption of
preference shares and other equity instruments
|
|
(398)
|
|
—
|
|
Subordinated
loan capital repaid
|
2
|
(3,538)
|
|
(4,210)
|
|
Dividends
paid to shareholders of the parent company and non-controlling
interests
|
|
(2,023)
|
|
(9,773)
|
|
Net cash from financing activities
|
|
(4,643)
|
|
(14,842)
|
|
Net increase/(decrease) in cash and cash equivalents
|
|
155,147
|
|
(20,417)
|
|
Cash and cash equivalents at 1 Jan
|
|
293,742
|
|
312,911
|
|
Exchange
differences in respect of cash and cash equivalents
|
|
19,434
|
|
1,248
|
|
Cash and cash equivalents at 31 Dec
|
3
|
468,323
|
|
293,742
|
|
Cash and cash equivalents comprise:
|
|
|
|
||
– cash and balances at central banks
|
|
304,481
|
|
154,099
|
|
– items in the course of collection from other
banks
|
|
4,094
|
|
4,956
|
|
– loans and advances to banks of one month or
less
|
|
51,788
|
|
41,626
|
|
– reverse repurchase agreements with banks of one month or
less
|
|
65,086
|
|
65,370
|
|
– treasury bills, other bills and certificates of deposit
less than three months
|
|
30,023
|
|
20,132
|
|
– cash collateral and net settlement accounts
|
|
17,194
|
|
12,376
|
|
– less: items in the course of transmission to other
banks
|
|
(4,343)
|
|
(4,817)
|
|
Cash and cash equivalents at 31 Dec
|
3
|
468,323
|
|
293,742
|
|
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
reserves4,5
|
Total share-holders’equity
|
Non-controlling interests
|
Total equity
|
||||||||||
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||||||||||
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 year
|
—
|
|
—
|
|
5,229
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5,229
|
|
870
|
|
6,099
|
|
Other comprehensive income (net of tax)
|
—
|
|
—
|
|
1,118
|
|
1,913
|
|
459
|
|
4,758
|
|
—
|
|
8,248
|
|
161
|
|
8,409
|
|
–
debt instruments at fair value through other comprehensive
income
|
—
|
|
—
|
|
—
|
|
1,746
|
|
—
|
|
—
|
|
—
|
|
1,746
|
|
4
|
|
1,750
|
|
–
equity instruments designated at fair value through other
comprehensive income
|
—
|
|
—
|
|
—
|
|
167
|
|
—
|
|
—
|
|
—
|
|
167
|
|
45
|
|
212
|
|
– cash flow hedges
|
—
|
|
—
|
|
—
|
|
—
|
|
459
|
|
—
|
|
—
|
|
459
|
|
12
|
|
471
|
|
–
changes in fair value of financial liabilities designated at fair
value upon initial recognition arising from changes in own credit
risk
|
—
|
|
—
|
|
167
|
|
—
|
|
—
|
|
—
|
|
—
|
|
167
|
|
—
|
|
167
|
|
–
remeasurement of defined benefit asset/liability
|
—
|
|
—
|
|
831
|
|
—
|
|
—
|
|
—
|
|
—
|
|
831
|
|
3
|
|
834
|
|
–
share of other comprehensive income of associates and joint
ventures
|
—
|
|
—
|
|
(73)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(73)
|
|
—
|
|
(73)
|
|
– effects of hyperinflation
|
—
|
|
—
|
|
193
|
|
—
|
|
—
|
|
—
|
|
—
|
|
193
|
|
—
|
|
193
|
|
– exchange differences
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,758
|
|
—
|
|
4,758
|
|
97
|
|
4,855
|
|
Total comprehensive income for the year
|
—
|
|
—
|
|
6,347
|
|
1,913
|
|
459
|
|
4,758
|
|
—
|
|
13,477
|
|
1,031
|
|
14,508
|
|
Shares issued under employee remuneration and
share plans
|
346
|
|
—
|
|
(339)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
7
|
|
—
|
|
7
|
|
Capital
securities issued7
|
—
|
|
1,500
|
|
(3)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,497
|
|
—
|
|
1,497
|
|
Dividends to shareholders
|
—
|
|
—
|
|
(1,331)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,331)
|
|
(692)
|
|
(2,023)
|
|
Redemption
of securities2
|
—
|
|
—
|
|
(1,450)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,450)
|
|
—
|
|
(1,450)
|
|
Transfers6
|
—
|
|
—
|
|
435
|
|
—
|
|
—
|
|
—
|
|
(435)
|
|
—
|
|
—
|
|
—
|
|
Cost of share-based payment arrangements
|
—
|
|
—
|
|
434
|
|
—
|
|
—
|
|
—
|
|
—
|
|
434
|
|
—
|
|
434
|
|
Other movements
|
—
|
|
43
|
|
(200)
|
|
11
|
|
—
|
|
—
|
|
—
|
|
(146)
|
|
(500)
|
|
(646)
|
|
At 31 Dec 2020
|
24,624
|
|
22,414
|
|
140,572
|
|
1,816
|
|
457
|
|
(20,375)
|
|
26,935
|
|
196,443
|
|
8,552
|
|
204,995
|
|
Consolidated
statement of changes in equity (continued)
|
||||||||||||||||||||
|
|
|
|
Other reserves
|
|
|
|
|||||||||||||
|
Called up share capital and share premium
|
Other equity instru-ments
|
Retained
earnings2,3
|
Financial
assets at
FVOCI
reserve
|
Cash flow
hedging
reserve
|
Foreign
exchange
reserve
|
Merger
and
other
reserves3,4
|
Total share-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 securities1
|
—
|
|
(1,496)
|
|
(12)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1,508)
|
|
—
|
|
(1,508)
|
|
Transfers5
|
—
|
|
—
|
|
2,475
|
|
—
|
|
—
|
|
—
|
|
(2,475)
|
|
—
|
|
—
|
|
—
|
|
Cost of share-based payment arrangements
|
—
|
|
—
|
|
478
|
|
—
|
|
—
|
|
—
|
|
—
|
|
478
|
|
—
|
|
478
|
|
Cancellation
of shares6
|
(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
|
|
1
|
Basis
of preparation and significant accounting policies
|
2
|
Tax
|
Tax
expense
|
|||||
|
|
2020
|
2019
|
||
|
Footnotes
|
$m
|
$m
|
||
Current tax
|
1
|
2,700
|
|
3,768
|
|
– for this year
|
|
2,883
|
|
3,689
|
|
– adjustments in respect of prior years
|
|
(183)
|
|
79
|
|
Deferred tax
|
|
(22)
|
|
871
|
|
– origination and reversal of temporary
differences
|
|
(341)
|
|
684
|
|
– effect of changes in tax rates
|
|
58
|
|
(11)
|
|
– adjustments in respect of prior years
|
|
261
|
|
198
|
|
Year ended 31 Dec
|
2
|
2,678
|
|
4,639
|
|
|
2020
|
2019
|
||||||
|
$m
|
%
|
$m
|
%
|
||||
Profit before tax
|
8,777
|
|
|
13,347
|
|
|
||
Tax expense
|
|
|
|
|
||||
Taxation at UK corporation tax rate of 19.00% (2019: 19.00%; 2018:
19.00%)
|
1,668
|
|
19.0
|
|
2,536
|
|
19.0
|
|
Impact of differently taxed overseas profits in overseas
locations
|
178
|
|
2.0
|
|
253
|
|
1.9
|
|
Items increasing tax charge in 2020:
|
|
|
|
|
||||
– non-UK movements in unrecognised deferred tax
|
608
|
|
6.9
|
|
12
|
|
0.1
|
|
– UK tax losses not recognised
|
444
|
|
5.1
|
|
364
|
|
2.7
|
|
– other permanent disallowables
|
322
|
|
3.6
|
|
481
|
|
3.6
|
|
– local taxes and overseas withholding taxes
|
228
|
|
2.6
|
|
484
|
|
3.6
|
|
– bank levy
|
202
|
|
2.3
|
|
184
|
|
1.4
|
|
– adjustments in respect of prior period
liabilities
|
78
|
|
0.9
|
|
277
|
|
2.1
|
|
– impacts of hyperinflation
|
65
|
|
0.7
|
|
29
|
|
0.2
|
|
– impact of changes in tax rates
|
58
|
|
0.6
|
|
(11)
|
|
(0.1)
|
|
– non-deductible regulatory settlements
|
33
|
|
0.4
|
|
5
|
|
—
|
|
– non-deductible goodwill write-down
|
—
|
|
—
|
|
1,421
|
|
10.7
|
|
Items reducing tax charge in 2020:
|
|
|
|
|
||||
– non-taxable income and gains
|
(515)
|
|
(5.8)
|
|
(844)
|
|
(6.3)
|
|
–
deductions for AT1 coupon payments
|
(310)
|
|
(3.5)
|
|
(263)
|
|
(2.0)
|
|
– effect of profits in associates and joint
ventures
|
(250)
|
|
(2.8)
|
|
(467)
|
|
(3.5)
|
|
– UK banking surcharge
|
(113)
|
|
(1.3)
|
|
29
|
|
0.2
|
|
– non-deductible UK customer compensation
|
(18)
|
|
(0.2)
|
|
382
|
|
2.9
|
|
–
non-taxable gain on dilution of shareholding in SABB
|
—
|
|
—
|
|
(181)
|
|
(1.3)
|
|
– other items
|
—
|
|
—
|
|
(52)
|
|
(0.4)
|
|
Year ended 31 Dec
|
2,678
|
|
30.5
|
|
4,639
|
|
34.8
|
|
Movement
of deferred tax assets and liabilities
|
||||||||||||||||||
|
Loan impairment provisions
|
Unused
tax losses
and
tax 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
|
983
|
|
1,414
|
|
979
|
|
—
|
|
650
|
|
1,002
|
|
—
|
|
422
|
|
5,450
|
|
Liabilities
|
—
|
|
—
|
|
(558)
|
|
(1,621)
|
|
—
|
|
—
|
|
(1,613)
|
|
(401)
|
|
(4,193)
|
|
At 1 Jan 2020
|
983
|
|
1,414
|
|
421
|
|
(1,621)
|
|
650
|
|
1,002
|
|
(1,613)
|
|
21
|
|
1,257
|
|
Income statement
|
295
|
|
355
|
|
(274)
|
|
(32)
|
|
(81)
|
|
(112)
|
|
(190)
|
|
61
|
|
22
|
|
Other comprehensive income
|
—
|
|
—
|
|
(23)
|
|
—
|
|
—
|
|
—
|
|
(387)
|
|
(660)
|
|
(1,070)
|
|
Equity
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Foreign exchange and other adjustments
|
(36)
|
|
52
|
|
(281)
|
|
31
|
|
(4)
|
|
11
|
|
(116)
|
|
304
|
|
(39)
|
|
At 31 Dec 2020
|
1,242
|
|
1,821
|
|
(157)
|
|
(1,622)
|
|
565
|
|
901
|
|
(2,306)
|
|
(274)
|
|
170
|
|
Assets2
|
1,242
|
|
1,821
|
|
548
|
|
—
|
|
565
|
|
901
|
|
—
|
|
960
|
|
6,037
|
|
Liabilities2
|
—
|
|
—
|
|
(705)
|
|
(1,622)
|
|
—
|
|
—
|
|
(2,306)
|
|
(1,234)
|
|
(5,867)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
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)
|
|
3
|
Dividends
|
Dividends
to shareholders of the parent company
|
||||||||||||
|
2020
|
2019
|
||||||||||
|
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
|
|
In respect of current year:
|
|
|
|
|
|
|
||||||
– first interim dividend
|
—
|
|
—
|
|
—
|
|
0.10
|
|
2,013
|
|
375
|
|
– second interim dividend
|
—
|
|
—
|
|
—
|
|
0.10
|
|
2,021
|
|
795
|
|
– third interim dividend
|
—
|
|
—
|
|
—
|
|
0.10
|
|
2,029
|
|
357
|
|
Total
|
—
|
|
—
|
|
—
|
|
0.51
|
|
10,269
|
|
2,687
|
|
Total dividends on preference shares classified as equity (paid
quarterly)
|
62.00
|
|
90
|
|
|
62.00
|
|
90
|
|
|
||
Total coupons on capital securities classified as
equity
|
|
1,241
|
|
|
|
1,324
|
|
|
||||
Dividends
to shareholders
|
|
1,331
|
|
|
|
11,683
|
|
|
4
|
Earnings
per share
|
Profit
attributable to the ordinary shareholders of the parent
company
|
||||
|
2020
|
2019
|
||
|
$m
|
$m
|
||
Profit attributable to shareholders of the parent
company
|
5,229
|
|
7,383
|
|
Dividend payable on preference shares classified as
equity
|
(90)
|
|
(90)
|
|
Coupon payable on capital securities classified as
equity
|
(1,241)
|
|
(1,324)
|
|
Year ended 31 Dec
|
3,898
|
|
5,969
|
|
Basic
and diluted earnings per share
|
|||||||||||||
|
|
2020
|
2019
|
||||||||||
|
|
Profit
|
Number of shares
|
Per share
|
Profit
|
Number of shares
|
Per share
|
||||||
|
Footnotes
|
$m
|
(millions)
|
$
|
$m
|
(millions)
|
$
|
||||||
Basic
|
1
|
3,898
|
|
20,169
|
|
0.19
|
|
5,969
|
|
20,158
|
|
0.30
|
|
Effect of dilutive potential ordinary shares
|
|
|
73
|
|
|
|
75
|
|
|
||||
Diluted
|
1
|
3,898
|
|
20,242
|
|
0.19
|
|
5,969
|
|
20,233
|
|
0.30
|
|
5
|
Adjusted
balance sheet reconciliation
|
|
At
|
|||||||
|
31 Dec 2020
|
31 Dec 2019
|
||||||
|
Reported and Adjusted
|
Adjusted
|
Currency translation
|
Reported
|
||||
|
$m
|
$m
|
$m
|
$m
|
||||
Loans and advances to customers (net)
|
1,037,987
|
|
1,062,696
|
|
(25,953)
|
|
1,036,743
|
|
Interests in associates and joint ventures
|
26,684
|
|
25,420
|
|
(946)
|
|
24,474
|
|
Total external assets
|
2,984,164
|
|
2,783,811
|
|
(68,659)
|
|
2,715,152
|
|
Customer accounts
|
1,642,780
|
|
1,470,207
|
|
(31,092)
|
|
1,439,115
|
|
6
|
Reconciliation
of reported and adjusted items
|
|
|
2020
|
2019
|
||
|
Footnotes
|
$m
|
$m
|
||
Revenue
|
1
|
|
|
||
Reported
|
|
50,429
|
|
56,098
|
|
Currency translation
|
|
|
(471)
|
|
|
Significant items
|
|
(63)
|
|
(683)
|
|
– customer redress programmes
|
|
21
|
|
163
|
|
– disposals, acquisitions and investment in new
businesses
|
|
10
|
|
(768)
|
|
– fair value movements on financial instruments
|
2
|
(264)
|
|
(84)
|
|
– restructuring and other related costs
|
3
|
170
|
—
|
|
|
– currency translation on significant items
|
|
|
6
|
|
|
Adjusted
|
|
50,366
|
|
54,944
|
|
ECL
|
|
|
|
||
Reported
|
|
(8,817)
|
|
(2,756)
|
|
Currency translation
|
|
|
129
|
|
|
Adjusted
|
|
(8,817)
|
|
(2,627)
|
|
Operating expenses
|
|
|
|
||
Reported
|
|
(34,432)
|
|
(42,349)
|
|
Currency translation
|
|
|
223
|
|
|
Significant items
|
|
2,973
|
|
9,607
|
|
– costs of structural reform
|
4
|
—
|
|
158
|
|
– customer redress programmes
|
|
(54)
|
|
1,281
|
|
– impairment of goodwill and other intangibles
|
|
1,090
|
|
7,349
|
|
– past service costs of guaranteed minimum pension benefits
equalisation
|
|
17
|
|
—
|
|
– restructuring and other related costs
|
5
|
1,908
|
|
827
|
|
–
settlements and provisions in connection with legal and regulatory
matters
|
|
12
|
|
(61)
|
|
– currency translation on significant items
|
|
|
53
|
|
|
Adjusted
|
|
(31,459)
|
|
(32,519)
|
|
Share of profit in associates and joint ventures
|
|
|
|
||
Reported
|
|
1,597
|
|
2,354
|
|
Currency translation
|
|
|
(3)
|
|
|
Significant items
|
|
462
|
|
—
|
|
– impairment of goodwill
|
6
|
462
|
|
—
|
|
– currency translation on significant items
|
|
|
—
|
|
|
Adjusted
|
|
2,059
|
|
2,351
|
|
Profit before tax
|
|
|
|
||
Reported
|
|
8,777
|
|
13,347
|
|
Currency translation
|
|
|
(122)
|
|
|
Significant items
|
|
3,372
|
|
8,924
|
|
– revenue
|
|
(63)
|
|
(683)
|
|
– operating expenses
|
|
2,973
|
|
9,607
|
|
– share of profit in associates and joint
ventures
|
|
462
|
—
|
|
|
Adjusted
|
|
12,149
|
|
22,149
|
|
7
|
Contingent
liabilities, contractual commitments and guarantees
|
|
2020
|
2019
|
||
|
$m
|
$m
|
||
Guarantees and other contingent liabilities:
|
|
|
||
– financial guarantees
|
18,384
|
|
20,214
|
|
– performance and other guarantees
|
78,114
|
|
75,933
|
|
– other contingent liabilities
|
1,219
|
|
1,576
|
|
At 31 Dec
|
97,717
|
|
97,723
|
|
Commitments1:
|
|
|
||
– documentary credits and short-term trade-related
transactions
|
7,178
|
|
6,316
|
|
– forward asset purchases and forward deposits
placed
|
66,506
|
|
56,326
|
|
– standby facilities, credit lines and other commitments to
lend
|
771,086
|
|
734,966
|
|
At 31 Dec
|
844,770
|
|
797,608
|
|
8
|
Legal
proceedings and regulatory matters
|
9
|
Events
after the balance sheet date
|
10
|
Capital
structure
|
Capital
ratios
|
||||
|
At 31 Dec
|
|||
|
2020
|
2019
|
||
|
%
|
%
|
||
Transitional basis
|
|
|
||
Common
equity tier 1 ratio
|
15.9
|
|
14.7
|
|
Tier 1 ratio
|
18.7
|
|
17.6
|
|
Total capital ratio
|
21.5
|
|
20.4
|
|
|
|
|
||
End point basis
|
|
|
||
Common equity tier 1 ratio
|
15.9
|
|
14.7
|
|
Tier 1 ratio
|
18.5
|
|
17.2
|
|
Total capital ratio
|
20.2
|
|
18.9
|
|
Total
regulatory capital and risk-weighted assets
|
||||
|
At 31 Dec
|
|||
|
2020
|
2019
|
||
|
$m
|
$m
|
||
Transitional basis
|
|
|
||
Common
equity tier 1 capital
|
136,050
|
|
123,966
|
|
Additional tier 1 capital
|
24,123
|
|
24,393
|
|
Tier 2 capital
|
24,250
|
|
23,791
|
|
Total regulatory capital
|
184,423
|
|
172,150
|
|
Risk-weighted assets
|
857,520
|
|
843,395
|
|
|
|
|
||
End point basis
|
|
|
||
Common equity tier 1 capital
|
136,050
|
|
123,966
|
|
Additional tier 1 capital
|
22,411
|
|
20,870
|
|
Tier 2 capital
|
14,743
|
|
14,473
|
|
Total regulatory capital
|
173,204
|
|
159,309
|
|
Risk-weighted assets
|
857,520
|
|
843,395
|
|
Leverage ratio1
|
|||||
|
|
At 31 Dec
|
|||
|
|
2020
|
2019
|
||
Ref*
|
|
$bn
|
$bn
|
||
20
|
Tier 1 capital
|
158.5
|
|
144.8
|
|
21
|
Total leverage ratio exposure
|
2,897.1
|
|
2,726.5
|
|
|
|
%
|
%
|
||
22
|
Leverage ratio
|
5.5
|
|
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 average2
|
2,555.5
|
|
2,535.4
|
|
|
|
%
|
%
|
||
|
UK
leverage ratio – quarterly average2
|
6.1
|
|
5.8
|
|
|
UK
leverage ratio – quarter end2
|
6.2
|
|
5.7
|
|
11
|
Statutory
accounts
|
12
|
Dealings
in HSBC Holdings plc listed securities
|
13
|
Interim
dividends for 2021
|
14
|
Earnings
releases and interim results
|
15
|
Corporate
governance codes
|
16
|
Cautionary
statement regarding forward-looking statements
|
17
|
Use
of alternative performance measures
|
18
|
Certain
defined terms
|
19
|
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]
|
20
|
|
Registered
Office and Group Head Office
|
HSBC
Holdings plc
|
|
|
|
|
By:
|
|
Name:
Aileen Taylor
|
|
Title:
Group Company Secretary and Chief Governance Officer
|
|
|
|
Date:
23 February
2021
|