•
|
Completed a $2.5bn share buy-back following the sale of the Brazil business
|
•
|
Further reduced our risk-weighted assets ('RWAs') during 2016 by $143bn as a result of extensive management actions, including the sale of operations in Brazil
|
•
|
Generated annualised run rate savings of $3.7bn, following investment in costs to achieve ('CTA') of $4.0bn to date
|
•
|
Expect to deliver increased annualised cost savings of c. $6.0bn while continuing to invest in regulatory programmes and compliance, with c. $6.0bn of CTA investment required
|
•
|
Increased market share in a number of key markets and international product areas, including trade finance in Hong Kong and Singapore
|
•
|
Adjusted profit before tax of $19.3bn was broadly unchanged following solid performances from our global businesses; lower reported profit before tax of $7.1bn reflects significant items. These included a $3.2bn impairment of goodwill in GPB in Europe, costs to achieve of $3.1bn, adverse fair value movements of $1.8bn arising from changes in credit spreads on our own debt designated at fair value, and the impact of our sale of operations in Brazil
|
•
|
Adjusted revenue of $50.2bn was broadly unchanged; reported revenue of $48.0bn was 20% lower primarily driven by unfavourable movements in significant items and currency translation
|
•
|
Adjusted operating expenses fell by $1.2bn or 4%, reflecting investment in cost-saving initiatives; reported operating expenses were broadly unchanged
|
•
|
Positive adjusted jaws of 1.2%1
|
•
|
Strong capital base with common equity tier 1 ('CET1') ratio 13.6% and a leverage ratio of 5.4%
|
•
|
Maintained the dividend at $0.51 per ordinary share; total dividends in respect of the year of $10.1bn; confident of maintaining at this level
|
•
|
The Board has determined to return to shareholders up to a further $1.0bn by way of a share buy-back which is expected to complete in the first half of 2017. This takes announced buy-backs since the second half of 2016 to $3.5bn following the successful sale of our Brazil business
|
|
Year ended 31 Dec
|
|||||
|
2016
|
|
2015
|
|
Change
|
|
|
$m
|
|
$m
|
|
%
|
|
Financial highlights and key ratios
|
|
|
|
|||
Reported profit before tax
|
7,112
|
|
18,867
|
|
(62.3
|
)
|
Adjusted profit before tax2
|
19,300
|
|
19,528
|
|
(1.2
|
)
|
Return on average ordinary shareholders' equity (annualised)
|
0.8
|
%
|
7.2
|
%
|
|
|
Adjusted jaws1
|
1.2
|
%
|
(3.7
|
)%
|
|
|
At 31 Dec
|
|||||
|
2016
|
|
2015
|
|
Change
|
|
|
%
|
|
%
|
|
|
|
Capital and balance sheet
|
|
|
|
|||
Common equity tier 1 ratio
|
13.6
|
|
11.9
|
|
|
|
Leverage ratio
|
5.4
|
|
5.0
|
|
|
|
|
$m
|
|
$m
|
|
$m
|
|
Loans and advances to customers
|
861,504
|
|
924,454
|
|
(62,950
|
)
|
Customer accounts
|
1,272,386
|
|
1,289,586
|
|
(17,200
|
)
|
Risk-weighted assets
|
857,181
|
|
1,102,995
|
|
(245,814
|
)
|
This news release is issued by
HSBC Holdings plc
|
Registered Office and Group Head Office:
8 Canada Square, London E14 5HQ, United Kingdom
Web: www.hsbc.com
Incorporated in England with limited liability. Registered number 617987
|
|
Year ended 31 Dec
|
|||
|
2016
|
|
2015
|
|
|
$m
|
|
$m
|
|
Reported
|
|
|
|
|
Revenue3
|
47,966
|
|
59,800
|
|
Loan impairment charges and other credit risk provisions
|
(3,400
|
)
|
(3,721
|
)
|
Operating expenses
|
(39,808
|
)
|
(39,768
|
)
|
Profit before tax
|
7,112
|
|
18,867
|
|
Adjusted
|
|
|
|
|
Revenue3
|
50,153
|
|
51,419
|
|
Loan impairment charges and other credit risk provisions
|
(2,652
|
)
|
(2,604
|
)
|
Operating expenses
|
(30,556
|
)
|
(31,730
|
)
|
Profit before tax
|
19,300
|
|
19,528
|
|
Significant items affecting adjusted performance
|
|
|
|
|
Revenue
|
|
|
|
|
Debit valuation adjustment on derivative contracts
|
26
|
|
230
|
|
Fair value movements on non-qualifying hedges
|
(687
|
)
|
(327
|
)
|
Gain on disposal of our membership interest in Visa - Europe
|
584
|
|
-
|
|
Gain on disposal of our membership interest in Visa - US
|
116
|
|
-
|
|
Gain on the partial sale of shareholding in Industrial Bank
|
-
|
|
1,372
|
|
Own credit spread
|
(1,792
|
)
|
1,002
|
|
Portfolio disposals
|
(163
|
)
|
(214
|
)
|
Releases/(provisions) arising from the ongoing review of compliance with the UK Consumer Credit Act
|
2
|
|
(10
|
)
|
Loss and trading results from disposed-of operations in Brazil
|
(273
|
)
|
3,327
|
|
Loan impairment charge and other credit risk provisions ('LICs')
|
|
|
||
Trading results from disposed-of operations in Brazil
|
(748
|
)
|
(933
|
)
|
Operating expenses
|
|
|
||
Costs associated with portfolio disposals
|
(28
|
)
|
-
|
|
Costs to achieve
|
(3,118
|
)
|
(908
|
)
|
Costs to establish UK ring-fenced bank
|
(223
|
)
|
(89
|
)
|
Impairment of Global Private Banking - Europe goodwill
|
(3,240
|
)
|
-
|
|
Regulatory provisions in Global Private Banking
|
(344
|
)
|
(172
|
)
|
Restructuring and other related costs
|
-
|
|
(117
|
)
|
Settlements and provisions in connection with legal matters
|
(681
|
)
|
(1,649
|
)
|
UK customer redress programmes
|
(559
|
)
|
(541
|
)
|
Trading results from disposed-of operations in Brazil
|
(1,059
|
)
|
(2,471
|
)
|
Share of profit in associates and joint ventures
|
|
|
||
Trading results from disposed-of operations in Brazil
|
(1
|
)
|
(1
|
)
|
1
|
Includes UK bank levy.
|
2
|
Adjusted performance is computed by adjusting reported results for the year-on-year effects of foreign currency translation differences and significant items which distort year-on-year comparisons.
|
3
|
Net operating income before loan impairment charges and other credit risk provision, also referred to as revenue.
|
2
|
HSBC Holdings plc News Release 2016
|
Statement by Douglas Flint, Group Chairman
|
HSBC Holdings plc News Release 2016
|
3
|
4
|
HSBC Holdings plc News Release 2016
|
Review by Stuart Gulliver, Group Chief Executive
|
HSBC Holdings plc News Release 2016
|
5
|
6
|
HSBC Holdings plc News Release 2016
|
|
Year ended 31 Dec
|
|||
|
2016
|
|
2015
|
|
|
$m
|
|
$m
|
|
For the year
|
|
|
||
Profit before tax
|
7,112
|
|
18,867
|
|
Profit attributable to:
|
|
|
||
- ordinary shareholders of the parent company
|
1,299
|
|
12,572
|
|
Dividends declared on ordinary shares
|
10,099
|
|
9,710
|
|
At the year-end
|
|
|
||
Total shareholders' equity
|
175,386
|
|
188,460
|
|
Total regulatory capital
|
172,358
|
|
189,833
|
|
Customer accounts
|
1,272,386
|
|
1,289,586
|
|
Total assets
|
2,374,986
|
|
2,409,656
|
|
Risk-weighted assets
|
857,181
|
|
1,102,995
|
|
Per ordinary share
|
$
|
|
$
|
|
Basic earnings
|
0.07
|
|
0.65
|
|
Dividends1
|
0.51
|
|
0.50
|
|
Net asset value
|
7.91
|
|
8.73
|
|
Share information
|
|
|
||
Number of $0.50 ordinary shares in issue (millions)
|
20,192
|
|
19,685
|
|
1
|
Dividends per ordinary share declared in the year.
|
Adjusted profit/(loss) before tax
|
||||||
|
Year ended 31 Dec
|
|||||
|
2016
|
2015
|
||||
|
$m
|
|
%
|
$m
|
|
%
|
Retail Banking and Wealth Management
|
5,333
|
|
27.6
|
5,690
|
|
29.1
|
Commercial Banking
|
6,052
|
|
31.4
|
5,423
|
|
27.8
|
Global Banking and Markets
|
5,597
|
|
29.0
|
5,534
|
|
28.3
|
Global Private Banking
|
289
|
|
1.5
|
387
|
|
2.0
|
Corporate Centre
|
2,029
|
|
10.5
|
2,494
|
|
12.8
|
|
19,300
|
|
100.0
|
19,528
|
|
100.0
|
Reported profit/(loss) before tax
|
|||||||
|
Year ended 31 Dec
|
||||||
|
2016
|
2015
|
|||||
|
$m
|
|
%
|
|
$m
|
|
%
|
Europe
|
(6,774
|
)
|
(95.2
|
)
|
688
|
|
3.6
|
Asia
|
13,779
|
|
193.7
|
|
15,763
|
|
83.5
|
Middle East and North Africa
|
1,503
|
|
21.1
|
|
1,492
|
|
7.9
|
North America
|
185
|
|
2.6
|
|
614
|
|
3.3
|
Latin America
|
(1,581
|
)
|
(22.2
|
)
|
310
|
|
1.7
|
Profit before tax
|
7,112
|
|
100.0
|
|
18,867
|
|
100.0
|
Tax expense
|
(3,666
|
)
|
|
|
(3,771
|
)
|
|
Profit for the year
|
3,446
|
|
|
|
15,096
|
|
|
Attributable to:
|
|
|
|
|
|||
- ordinary shareholders of the parent company
|
1,299
|
|
|
12,572
|
|
|
|
- preference shareholders of the parent company
|
90
|
|
|
90
|
|
|
|
- other equity holders
|
1,090
|
|
|
860
|
|
|
|
- non-controlling interests
|
967
|
|
|
1,574
|
|
|
|
Profit for the year
|
3,446
|
|
|
15,096
|
|
|
HSBC Holdings plc News Release 2016
|
7
|
Consolidated income statement
|
|
2016
|
|
2015
|
|
|
$m
|
|
$m
|
|
Net interest income
|
29,813
|
|
32,531
|
|
- interest income
|
42,414
|
|
47,189
|
|
- interest expense
|
(12,601
|
)
|
(14,658
|
)
|
Net fee income
|
12,777
|
|
14,705
|
|
- fee income
|
15,669
|
|
18,016
|
|
- fee expense
|
(2,892
|
)
|
(3,311
|
)
|
Net trading income
|
9,452
|
|
8,723
|
|
- trading income excluding net interest income
|
8,066
|
|
6,948
|
|
- net interest income on trading activities
|
1,386
|
|
1,775
|
|
Net income/(expense) from financial instruments designated at fair value
|
(2,666
|
)
|
1,532
|
|
- changes in fair value of long-term debt and related derivatives
|
(3,975
|
)
|
863
|
|
- net income from other financial instruments designated at fair value
|
1,309
|
|
669
|
|
Gains less losses from financial investments
|
1,385
|
|
2,068
|
|
Dividend income
|
95
|
|
123
|
|
Net insurance premium income
|
9,951
|
|
10,355
|
|
Other operating income/(expense)
|
(971
|
)
|
1,055
|
|
Total operating income
|
59,836
|
|
71,092
|
|
Net insurance claims and benefits paid and movement in liabilities to policyholders
|
(11,870
|
)
|
(11,292
|
)
|
Net operating income before loan impairment charges and other credit risk provisions
|
47,966
|
|
59,800
|
|
Loan impairment charges and other credit risk provisions
|
(3,400
|
)
|
(3,721
|
)
|
Net operating income
|
44,566
|
|
56,079
|
|
Employee compensation and benefits
|
(18,089
|
)
|
(19,900
|
)
|
General and administrative expenses
|
(16,473
|
)
|
(17,662
|
)
|
Depreciation and impairment of property, plant and equipment
|
(1,229
|
)
|
(1,269
|
)
|
Amortisation and impairment of intangible assets
|
(777
|
)
|
(937
|
)
|
Goodwill impairment of Global Private Banking - Europe
|
(3,240
|
)
|
-
|
|
Total operating expenses
|
(39,808
|
)
|
(39,768
|
)
|
Operating profit
|
4,758
|
|
16,311
|
|
Share of profit in associates and joint ventures
|
2,354
|
|
2,556
|
|
Profit before tax
|
7,112
|
|
18,867
|
|
Tax expense
|
(3,666
|
)
|
(3,771
|
)
|
Profit for the year
|
3,446
|
|
15,096
|
|
Attributable to:
|
|
|
||
- ordinary shareholders of the parent company
|
1,299
|
|
12,572
|
|
- preference shareholders of the parent company
|
90
|
|
90
|
|
- other equity holders
|
1,090
|
|
860
|
|
- non-controlling interests
|
967
|
|
1,574
|
|
Profit for the year
|
3,446
|
|
15,096
|
|
|
$
|
|
$
|
|
Basic earnings per ordinary share
|
0.07
|
|
0.65
|
|
Diluted earnings per ordinary share
|
0.07
|
|
0.64
|
|
8
|
HSBC Holdings plc News Release 2016
|
Consolidated statement of comprehensive income
|
|
2016
|
|
2015
|
|
|
$m
|
|
$m
|
|
Profit for the year
|
3,446
|
|
15,096
|
|
Other comprehensive income/(expense)
|
|
|
||
Items that will be reclassified subsequently to profit or loss when specific conditions are met:
|
|
|
||
Available-for-sale investments
|
(299
|
)
|
(3,072
|
)
|
- fair value gains/(losses)
|
475
|
|
(1,231
|
)
|
- fair value gains reclassified to the income statement
|
(895
|
)
|
(2,437
|
)
|
- amounts reclassified to the income statement in respect of impairment losses
|
71
|
|
127
|
|
- income taxes
|
50
|
|
469
|
|
Cash flow hedges
|
(68
|
)
|
(24
|
)
|
- fair value (losses)/gains
|
(297
|
)
|
704
|
|
- fair value losses/(gains) reclassified to the income statement
|
195
|
|
(705
|
)
|
- income taxes
|
34
|
|
(23
|
)
|
Share of other comprehensive income/(expense) of associates and joint ventures
|
54
|
|
(9
|
)
|
- share for the year
|
54
|
|
(9
|
)
|
- reclassified to income statement on disposal
|
-
|
|
-
|
|
Exchange differences
|
(8,092
|
)
|
(10,945
|
)
|
- foreign exchange gains reclassified to income statement on disposal of a foreign operation
|
1,894
|
|
-
|
|
- other exchange differences
|
(9,791
|
)
|
(11,112
|
)
|
- income tax attributable to exchange differences
|
(195
|
)
|
167
|
|
Items that will not be reclassified subsequently to profit or loss:
|
|
|
||
Remeasurement of defined benefit asset/liability
|
7
|
|
101
|
|
- before income taxes
|
(84
|
)
|
130
|
|
- income taxes
|
91
|
|
(29
|
)
|
Other comprehensive income for the year, net of tax
|
(8,398
|
)
|
(13,949
|
)
|
Total comprehensive income for the year
|
(4,952
|
)
|
1,147
|
|
Attributable to:
|
|
|
||
- ordinary shareholders of the parent company
|
(6,968
|
)
|
(490
|
)
|
- preference shareholders of the parent company
|
90
|
|
90
|
|
- other equity holders
|
1,090
|
|
860
|
|
- non-controlling interests
|
836
|
|
687
|
|
Total comprehensive income for the year
|
(4,952
|
)
|
1,147
|
|
HSBC Holdings plc News Release 2016
|
9
|
Consolidated balance sheet
|
|
2016
|
|
2015
|
|
|
$m
|
|
$m
|
|
Assets
|
|
|
||
Cash and balances at central banks
|
128,009
|
|
98,934
|
|
Items in the course of collection from other banks
|
5,003
|
|
5,768
|
|
Hong Kong Government certificates of indebtedness
|
31,228
|
|
28,410
|
|
Trading assets
|
235,125
|
|
224,837
|
|
Financial assets designated at fair value
|
24,756
|
|
23,852
|
|
Derivatives
|
290,872
|
|
288,476
|
|
Loans and advances to banks
|
88,126
|
|
90,401
|
|
Loans and advances to customers
|
861,504
|
|
924,454
|
|
Reverse repurchase agreements - non-trading
|
160,974
|
|
146,255
|
|
Financial investments
|
436,797
|
|
428,955
|
|
Assets held for sale
|
4,389
|
|
43,900
|
|
Prepayments, accrued income and other assets
|
59,520
|
|
54,398
|
|
Current tax assets
|
1,145
|
|
1,221
|
|
Interests in associates and joint ventures
|
20,029
|
|
19,139
|
|
Goodwill and intangible assets
|
21,346
|
|
24,605
|
|
Deferred tax assets
|
6,163
|
|
6,051
|
|
Total assets at 31 Dec
|
2,374,986
|
|
2,409,656
|
|
Liabilities and equity
|
|
|
||
Liabilities
|
|
|
||
Hong Kong currency notes in circulation
|
31,228
|
|
28,410
|
|
Deposits by banks
|
59,939
|
|
54,371
|
|
Customer accounts
|
1,272,386
|
|
1,289,586
|
|
Repurchase agreements - non-trading
|
88,958
|
|
80,400
|
|
Items in the course of transmission to other banks
|
5,977
|
|
5,638
|
|
Trading liabilities
|
153,691
|
|
141,614
|
|
Financial liabilities designated at fair value
|
86,832
|
|
66,408
|
|
Derivatives
|
279,819
|
|
281,071
|
|
Debt securities in issue
|
65,915
|
|
88,949
|
|
Liabilities of disposal groups held for sale
|
2,790
|
|
36,840
|
|
Accruals, deferred income and other liabilities
|
41,501
|
|
38,116
|
|
Current tax liabilities
|
719
|
|
783
|
|
Liabilities under insurance contracts
|
75,273
|
|
69,938
|
|
Provisions
|
4,773
|
|
5,552
|
|
Deferred tax liabilities
|
1,623
|
|
1,760
|
|
Subordinated liabilities
|
20,984
|
|
22,702
|
|
Total liabilities at 31 Dec
|
2,192,408
|
|
2,212,138
|
|
Equity
|
|
|
|
|
Called up share capital
|
10,096
|
|
9,842
|
|
Share premium account
|
12,619
|
|
12,421
|
|
Other equity instruments
|
17,110
|
|
15,112
|
|
Other reserves
|
(1,234
|
)
|
7,109
|
|
Retained earnings
|
136,795
|
|
143,976
|
|
Total shareholders' equity
|
175,386
|
|
188,460
|
|
Non-controlling interests
|
7,192
|
|
9,058
|
|
Total equity at 31 Dec
|
182,578
|
|
197,518
|
|
Total liabilities and equity at 31 Dec
|
2,374,986
|
|
2,409,656
|
|
10
|
HSBC Holdings plc News Release 2016
|
Consolidated statement of cash flows
|
|
|
2016
|
|
2015
|
|
|
Footnotes
|
$m
|
|
$m
|
|
Profit before tax
|
|
7,112
|
|
18,867
|
|
Adjustments for non-cash items:
|
|
|
|
|
|
Depreciation, amortisation and impairment
|
|
5,212
|
|
2,181
|
|
Net gain from investing activities
|
|
(1,215
|
)
|
(1,935
|
)
|
Share of profits in associates and joint ventures
|
|
(2,354
|
)
|
(2,556
|
)
|
(Gain)/loss on disposal of subsidiaries, businesses, associates and joint ventures
|
|
1,743
|
|
-
|
|
Loan impairment losses gross of recoveries and other credit risk provisions
|
|
4,090
|
|
4,546
|
|
Provisions including pensions
|
|
2,482
|
|
3,472
|
|
Share-based payment expense
|
|
534
|
|
757
|
|
Other non-cash items included in profit before tax
|
|
(207
|
)
|
(191
|
)
|
Elimination of exchange differences
|
1
|
15,364
|
|
18,308
|
|
Changes in operating assets and liabilities
|
|
|
|
||
Change in net trading securities and derivatives
|
|
4,395
|
|
24,384
|
|
Change in loans and advances to banks and customers
|
|
52,868
|
|
32,971
|
|
Change in reverse repurchase agreements - non-trading
|
|
(13,138
|
)
|
(3,011
|
)
|
Change in financial assets designated at fair value
|
|
(1,235
|
)
|
2,394
|
|
Change in other assets
|
|
(6,591
|
)
|
9,090
|
|
Change in deposits by banks and customer accounts
|
|
(8,918
|
)
|
(65,907
|
)
|
Change in repurchase agreements - non-trading
|
|
8,558
|
|
(26,481
|
)
|
Change in debt securities in issue
|
|
(23,034
|
)
|
960
|
|
Change in financial liabilities designated at fair value
|
|
17,802
|
|
(10,785
|
)
|
Change in other liabilities
|
|
8,792
|
|
(4,549
|
)
|
Dividends received from associates
|
|
689
|
|
879
|
|
Contributions paid to defined benefit plans
|
|
(726
|
)
|
(664
|
)
|
Tax paid
|
|
(3,264
|
)
|
(3,852
|
)
|
Net cash from operating activities
|
|
68,959
|
|
(1,122
|
)
|
Purchase of financial investments
|
|
(457,084
|
)
|
(438,376
|
)
|
Proceeds from the sale and maturity of financial investments
|
|
430,085
|
|
399,636
|
|
Net cash flows from the purchase and sale of property, plant and equipment
|
|
(1,151
|
)
|
(1,249
|
)
|
Net cash inflow/(outflow) from disposal of customer and loan portfolios
|
|
9,194
|
|
2,023
|
|
Net investment in intangible assets
|
|
(906
|
)
|
(954
|
)
|
Net cash flow on disposal of subsidiaries, businesses, associates and joint ventures
|
2
|
4,802
|
|
8
|
|
Net cash from investing activities
|
|
(15,060
|
)
|
(38,912
|
)
|
Issue of ordinary share capital and other equity instruments
|
|
2,024
|
|
3,727
|
|
Net sales/(purchases) of own shares for market-making and investment purposes
|
|
523
|
|
331
|
|
Purchase of treasury shares
|
|
(2,510
|
)
|
-
|
|
Redemption of preference shares and other equity instruments
|
|
(1,825
|
)
|
(463
|
)
|
Subordinated loan capital issued
|
|
2,622
|
|
3,180
|
|
Subordinated loan capital repaid
|
|
(595
|
)
|
(2,157
|
)
|
Dividends paid to shareholders of the parent company and non-controlling interests
|
|
(9,157
|
)
|
(8,195
|
)
|
Net cash from financing activities
|
|
(8,918
|
)
|
(3,577
|
)
|
Net increase/(decrease) in cash and cash equivalents
|
|
44,981
|
|
(43,611
|
)
|
Cash and cash equivalents at 1 Jan
|
|
243,863
|
|
301,301
|
|
Exchange differences in respect of cash and cash equivalents
|
|
(14,294
|
)
|
(13,827
|
)
|
Cash and cash equivalents at 31 Dec
|
|
274,550
|
|
243,863
|
|
Cash and cash equivalents comprise:
|
3
|
|
|
||
- cash and balances at central banks
|
|
128,009
|
|
98,934
|
|
- items in the course of collection from other banks
|
|
5,003
|
|
5,768
|
|
- loans and advances to banks of one month or less
|
|
77,318
|
|
70,985
|
|
- reverse repurchase agreements with banks of one month or less
|
|
55,551
|
|
53,971
|
|
- treasury bills, other bills and certificates of deposit less than three months
|
|
14,646
|
|
19,843
|
|
- less: items in the course of transmission to other banks
|
|
(5,977
|
)
|
(5,638
|
)
|
|
|
274,550
|
|
243,863
|
|
1
|
Adjustment to bring changes between opening and closing balance sheet amounts to average rates. This is not done on a line-by-line basis, as details cannot be determined without unreasonable expense.
|
2
|
In July 2016, we completed the disposal of the Brazilian operations resulting in net cash inflow of $4.8bn.
|
3
|
At 31 December 2016 $35,501m (2015: $33,744m) was not available for use by HSBC, of which $21,108m (2015: $21,773m) related to mandatory deposits at central banks.
|
HSBC Holdings plc News Release 2016
|
11
|
Consolidated statement of changes in equity
|
|
Called up share capital and share premium
|
|
|
|
Other reserves
|
|
|
|
||||||||||||
|
Other
equity instruments1 |
|
Retained
earnings |
|
Available- for-sale fair value
reserve |
|
Cash flow
hedging reserve |
|
Foreign
exchange reserve |
|
Merger
reserve |
|
Total
share- holders' equity |
|
Non-
controlling interests |
|
Total
equity |
|
||
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
At 1 Jan 2016
|
22,263
|
|
15,112
|
|
143,976
|
|
(189
|
)
|
34
|
|
(20,044
|
)
|
27,308
|
|
188,460
|
|
9,058
|
|
197,518
|
|
Profit for the year
|
-
|
|
-
|
|
2,479
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,479
|
|
967
|
|
3,446
|
|
Other comprehensive income
(net of tax) |
-
|
|
-
|
|
59
|
|
(271
|
)
|
(61
|
)
|
(7,994
|
)
|
-
|
|
(8,267
|
)
|
(131
|
)
|
(8,398
|
)
|
- available-for-sale investments
|
-
|
|
-
|
|
-
|
|
(271
|
)
|
-
|
|
-
|
|
-
|
|
(271
|
)
|
(28
|
)
|
(299
|
)
|
- cash flow hedges
|
-
|
|
-
|
|
-
|
|
-
|
|
(61
|
)
|
-
|
|
-
|
|
(61
|
)
|
(7
|
)
|
(68
|
)
|
- remeasurement of defined benefit asset/liability
|
-
|
|
-
|
|
5
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5
|
|
2
|
|
7
|
|
- share of other comprehensive income of associates and joint ventures
|
-
|
|
-
|
|
54
|
|
-
|
|
-
|
|
-
|
|
-
|
|
54
|
|
-
|
|
54
|
|
- foreign exchange reclassified to income statement on disposal of a foreign operation
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,894
|
|
-
|
|
1,894
|
|
-
|
|
1,894
|
|
- exchange differences
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(9,888
|
)
|
-
|
|
(9,888
|
)
|
(98
|
)
|
(9,986
|
)
|
Total comprehensive income for the year
|
-
|
|
-
|
|
2,538
|
|
(271
|
)
|
(61
|
)
|
(7,994
|
)
|
-
|
|
(5,788
|
)
|
836
|
|
(4,952
|
)
|
Shares issued under employee remuneration and share plans
|
452
|
|
-
|
|
(425
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
27
|
|
-
|
|
27
|
|
Shares issued in lieu of dividends and amounts arising thereon
|
-
|
|
-
|
|
3,040
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,040
|
|
-
|
|
3,040
|
|
Net increase in treasury shares
|
-
|
|
-
|
|
(2,510
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,510
|
)
|
-
|
|
(2,510
|
)
|
Capital securities issued
|
-
|
|
1,998
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,998
|
|
-
|
|
1,998
|
|
Dividends to shareholders
|
-
|
|
-
|
|
(11,279
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
(11,279
|
)
|
(919
|
)
|
(12,198
|
)
|
Cost of share-based payment arrangements
|
-
|
|
-
|
|
534
|
|
-
|
|
-
|
|
-
|
|
-
|
|
534
|
|
-
|
|
534
|
|
Other movements
|
-
|
|
-
|
|
921
|
|
(17
|
)
|
-
|
|
-
|
|
-
|
|
904
|
|
(1,783
|
)
|
(879
|
)
|
At 31 Dec 2016
|
22,715
|
|
17,110
|
|
136,795
|
|
(477
|
)
|
(27
|
)
|
(28,038
|
)
|
27,308
|
|
175,386
|
|
7,192
|
|
182,578
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At 1 Jan 2015
|
21,527
|
|
11,532
|
|
137,144
|
|
2,143
|
|
58
|
|
(9,265
|
)
|
27,308
|
|
190,447
|
|
9,531
|
|
199,978
|
|
Profit for the year
|
-
|
|
-
|
|
13,522
|
|
-
|
|
-
|
|
-
|
|
-
|
|
13,522
|
|
1,574
|
|
15,096
|
|
Other comprehensive income
(net of tax) |
-
|
|
-
|
|
73
|
|
(2,332
|
)
|
(24
|
)
|
(10,779
|
)
|
-
|
|
(13,062
|
)
|
(887
|
)
|
(13,949
|
)
|
- available-for-sale investments
|
-
|
|
-
|
|
-
|
|
(2,332
|
)
|
-
|
|
-
|
|
-
|
|
(2,332
|
)
|
(740
|
)
|
(3,072
|
)
|
- cash flow hedges
|
-
|
|
-
|
|
-
|
|
-
|
|
(24
|
)
|
-
|
|
-
|
|
(24
|
)
|
-
|
|
(24
|
)
|
- remeasurement of defined benefit asset/liability
|
-
|
|
-
|
|
82
|
|
-
|
|
-
|
|
-
|
|
-
|
|
82
|
|
19
|
|
101
|
|
- share of other comprehensive income of associates and joint ventures
|
-
|
|
-
|
|
(9
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
(9
|
)
|
-
|
|
(9
|
)
|
- exchange differences
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(10,779
|
)
|
-
|
|
(10,779
|
)
|
(166
|
)
|
(10,945
|
)
|
Total comprehensive income for
the year |
-
|
|
-
|
|
13,595
|
|
(2,332
|
)
|
(24
|
)
|
(10,779
|
)
|
-
|
|
460
|
|
687
|
|
1,147
|
|
Shares issued under employee remuneration and share plans
|
736
|
|
-
|
|
(589
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
147
|
|
-
|
|
147
|
|
Shares issued in lieu of dividends and amounts arising thereon
|
-
|
|
-
|
|
3,162
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,162
|
|
-
|
|
3,162
|
|
Capital securities issued
|
-
|
|
3,580
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,580
|
|
-
|
|
3,580
|
|
Dividends to shareholders
|
-
|
|
-
|
|
(10,660
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
(10,660
|
)
|
(697
|
)
|
(11,357
|
)
|
Cost of share-based payment arrangements
|
-
|
|
-
|
|
757
|
|
-
|
|
-
|
|
-
|
|
-
|
|
757
|
|
-
|
|
757
|
|
Other movements
|
-
|
|
-
|
|
567
|
|
-
|
|
-
|
|
-
|
|
-
|
|
567
|
|
(463
|
)
|
104
|
|
At 31 Dec 2015
|
22,263
|
|
15,112
|
|
143,976
|
|
(189
|
)
|
34
|
|
(20,044
|
)
|
27,308
|
|
188,460
|
|
9,058
|
|
197,518
|
|
1
|
During 2016, HSBC Holdings issued $2,000m of Perpetual Subordinated Contingent Convertible Capital Securities, on which there were $6m of external issuance costs, and $4m of tax. In 2015, HSBC Holdings issued $2,450m and €1,000m of Perpetual Subordinated Contingent Convertible Capital Securities, on which there were $12m of external issuance costs, $25m of intra-group issuance costs and $19m of tax. In 2014, HSBC Holdings issued $2,250m, $1,500m and €1,500m of Perpetual Subordinated Contingent Convertible Capital Securities, on which there were $13m of external issuance costs and $33m of intra-group issuance costs. Under IFRSs these issuance costs and tax benefits are classified as equity.
|
12
|
HSBC Holdings plc News Release 2016
|
1 Basis of preparation and significant accounting policies
|
(a)
|
Compliance with International Financial Reporting Standards
|
(b)
|
Differences between IFRSs and Hong Kong Financial Reporting Standards
|
(c)
|
Going concern
|
2 Tax
|
Tax expense
|
||||||
|
2016
|
|
2015
|
|
2014
|
|
|
$m
|
|
$m
|
|
$m
|
|
Current tax1
|
3,669
|
|
3,797
|
|
3,950
|
|
- for this year
|
3,525
|
|
3,882
|
|
4,477
|
|
- adjustments in respect of prior years
|
144
|
|
(85
|
)
|
(527
|
)
|
Deferred tax
|
(3
|
)
|
(26
|
)
|
25
|
|
- origination and reversal of temporary differences
|
(111
|
)
|
(153
|
)
|
(477
|
)
|
- effect of changes in tax rates
|
(4
|
)
|
110
|
|
83
|
|
- adjustments in respect of prior years
|
112
|
|
17
|
|
419
|
|
Year ended 31 Dec
|
3,666
|
|
3,771
|
|
3,975
|
|
1
|
Current tax included Hong Kong profits tax of $1,118m (2015:$1,294m; 2014: $1,135m). The Hong Kong tax rate applying to the profits of subsidiaries assessable in Hong Kong was 16.5% (2015:16.5%; 2014: 16.5%).
|
HSBC Holdings plc News Release 2016
|
13
|
|
2016
|
2015
|
2014
|
|||||||||
|
$m
|
|
%
|
|
$m
|
|
%
|
|
$m
|
|
%
|
|
Profit before tax
|
7,112
|
|
|
18,867
|
|
|
18,680
|
|
|
|||
Tax expense
|
|
|
|
|
|
|
||||||
Taxation at UK corporation tax rate of 20.0% (2015: 20.25%; 2014: 21.5%)
|
1,422
|
|
20.0
|
|
3,821
|
|
20.25
|
|
4,016
|
|
21.50
|
|
Impact of differently taxed overseas profits in overseas locations
|
43
|
|
0.6
|
|
71
|
|
0.4
|
|
33
|
|
0.2
|
|
Items increasing tax charge in 2016 not in 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
- non-deductible goodwill write-down
|
648
|
|
9.1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
- non-deductible loss and taxes suffered on Brazil disposal
|
464
|
|
6.5
|
|
-
|
|
-
|
|
-
|
|
-
|
|
- UK tax losses not recognised
|
305
|
|
4.3
|
|
-
|
|
-
|
|
-
|
|
-
|
|
- adjustments in respect of prior period liabilities
|
256
|
|
3.6
|
|
(68
|
)
|
(0.4
|
)
|
(108
|
)
|
(0.6
|
)
|
- UK Banking Surcharge
|
199
|
|
2.8
|
|
-
|
|
-
|
|
-
|
|
-
|
|
- non-UK tax losses not recognised
|
147
|
|
2.1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Other items increasing tax charge in 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
- local taxes and overseas withholding taxes
|
434
|
|
6.1
|
|
416
|
|
2.2
|
|
434
|
|
2.3
|
|
- other permanent disallowables
|
438
|
|
6.2
|
|
421
|
|
2.2
|
|
476
|
|
2.5
|
|
- bank levy
|
170
|
|
2.4
|
|
286
|
|
1.5
|
|
229
|
|
1.2
|
|
- non-deductible UK customer compensation
|
162
|
|
2.3
|
|
87
|
|
0.5
|
|
-
|
|
-
|
|
- other items
|
-
|
|
-
|
|
(116
|
)
|
(0.6
|
)
|
(22
|
)
|
(0.1
|
)
|
- non-deductible regulatory settlements
|
20
|
|
0.3
|
|
184
|
|
1.0
|
|
264
|
|
1.4
|
|
Items reducing tax charge in 2016:
|
|
|
|
|
|
|
||||||
- non-taxable income and gains
|
(577
|
)
|
(8.1
|
)
|
(501
|
)
|
(2.7
|
)
|
(668
|
)
|
(3.5
|
)
|
- effect of profits in associates and joint ventures
|
(461
|
)
|
(6.5
|
)
|
(508
|
)
|
(2.7
|
)
|
(547
|
)
|
(2.9
|
)
|
- change in tax rates
|
(4
|
)
|
(0.1
|
)
|
110
|
|
0.6
|
|
22
|
|
0.1
|
|
Non-taxable income and gains - Industrial Bank
|
-
|
|
-
|
|
(227
|
)
|
(1.2
|
)
|
-
|
|
-
|
|
US deferred tax temporary differences previously not recognised
|
-
|
|
-
|
|
(184
|
)
|
(1.0
|
)
|
(154
|
)
|
(0.8
|
)
|
Other deferred tax temporary differences previously not recognised
|
-
|
|
-
|
|
(21
|
)
|
(0.1
|
)
|
-
|
|
-
|
|
Year ended 31 Dec
|
3,666
|
|
51.6
|
|
3,771
|
|
20.0
|
|
3,975
|
|
21.3
|
|
14
|
HSBC Holdings plc News Release 2016
|
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 |
|
Other
|
|
Total
|
|
|
Footnotes
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
Assets
|
|
1,351
|
|
1,388
|
|
1,400
|
|
-
|
|
1,271
|
|
1,050
|
|
6,460
|
|
Liabilities
|
|
-
|
|
-
|
|
(230
|
)
|
(1,056
|
)
|
-
|
|
(883
|
)
|
(2,169
|
)
|
At 1 Jan 2016
|
|
1,351
|
|
1,388
|
|
1,170
|
|
(1,056
|
)
|
1,271
|
|
167
|
|
4,291
|
|
Income statement
|
3
|
(279
|
)
|
876
|
|
18
|
|
(123
|
)
|
(370
|
)
|
(314
|
)
|
(192
|
)
|
Other comprehensive income
|
|
-
|
|
-
|
|
28
|
|
-
|
|
-
|
|
259
|
|
287
|
|
Equity
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
20
|
|
20
|
|
Foreign exchange and other adjustments
|
|
(122
|
)
|
(52
|
)
|
(49
|
)
|
9
|
|
(8
|
)
|
356
|
|
134
|
|
At 31 Dec 2016
|
|
950
|
|
2,212
|
|
1,167
|
|
(1,170
|
)
|
893
|
|
488
|
|
4,540
|
|
Assets
|
2
|
950
|
|
2,212
|
|
1,441
|
|
-
|
|
893
|
|
1,857
|
|
7,353
|
|
Liabilities
|
2
|
-
|
|
-
|
|
(274
|
)
|
(1,170
|
)
|
-
|
|
(1,369
|
)
|
(2,813
|
)
|
|
|
|
|
|
|
|
|
|
|||||||
Assets
|
|
2,264
|
|
1,332
|
|
1,764
|
|
-
|
|
1,244
|
|
836
|
|
7,440
|
|
Liabilities
|
|
-
|
|
-
|
|
(233
|
)
|
(861
|
)
|
-
|
|
(759
|
)
|
(1,853
|
)
|
At 1 Jan 2015
|
|
2,264
|
|
1,332
|
|
1,531
|
|
(861
|
)
|
1,244
|
|
77
|
|
5,587
|
|
Income statement
|
|
45
|
|
379
|
|
(557
|
)
|
(143
|
)
|
418
|
|
(116
|
)
|
26
|
|
Other comprehensive income
|
|
-
|
|
-
|
|
22
|
|
-
|
|
156
|
|
321
|
|
499
|
|
Reclassification to 'Assets held for sale'
|
|
(673
|
)
|
(186
|
)
|
76
|
|
87
|
|
(386
|
)
|
(136
|
)
|
(1,218
|
)
|
Equity
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4
|
|
4
|
|
Foreign exchange and other adjustments
|
|
(285
|
)
|
(137
|
)
|
98
|
|
(139
|
)
|
(161
|
)
|
17
|
|
(607
|
)
|
At 31 Dec 2015
|
|
1,351
|
|
1,388
|
|
1,170
|
|
(1,056
|
)
|
1,271
|
|
167
|
|
4,291
|
|
Assets
|
2
|
1,351
|
|
1,388
|
|
1,400
|
|
-
|
|
1,271
|
|
1,050
|
|
6,460
|
|
Liabilities
|
2
|
-
|
|
-
|
|
(230
|
)
|
(1,056
|
)
|
-
|
|
(883
|
)
|
(2,169
|
)
|
1
|
Fair value of own debt.
|
2
|
After netting off balances within countries, the balances as disclosed in the accounts are as follows: deferred tax assets $6,163m (2015: $6,051m); and deferred tax liabilities $1,623m (2015: $1,760m).
|
3
|
Excludes tax credit of $195m relating to deferred tax balances in Brazil, which were included within assets held for sale prior to disposal.
|
HSBC Holdings plc News Release 2016
|
15
|
3 Dividends
|
Dividends to shareholders of the parent company
|
||||||||||||||||||
|
2016
|
2015
|
2014
|
|||||||||||||||
|
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
|
0.21
|
|
4,137
|
|
408
|
|
0.20
|
|
3,845
|
|
2,011
|
|
0.19
|
|
3,582
|
|
1,827
|
|
In respect of current year:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- first interim dividend
|
0.10
|
|
1,981
|
|
703
|
|
0.10
|
|
1,951
|
|
231
|
|
0.10
|
|
1,906
|
|
284
|
|
- second interim dividend
|
0.10
|
|
1,991
|
|
994
|
|
0.10
|
|
1,956
|
|
160
|
|
0.10
|
|
1,914
|
|
372
|
|
- third interim dividend
|
0.10
|
|
1,990
|
|
935
|
|
0.10
|
|
1,958
|
|
760
|
|
0.10
|
|
1,918
|
|
226
|
|
Total
|
0.51
|
|
10,099
|
|
3,040
|
|
0.50
|
|
9,710
|
|
3,162
|
|
0.49
|
|
9,320
|
|
2,709
|
|
Total dividends on preference shares
classified as equity (paid quarterly)
|
62.00
|
|
90
|
|
|
|
62.00
|
|
90
|
|
|
|
62.00
|
|
90
|
|
|
|
16
|
HSBC Holdings plc News Release 2016
|
4 Earnings per share
|
Profit attributable to ordinary shareholders of the parent company
|
|
|
||
|
2016
|
|
2015
|
|
|
$m
|
|
$m
|
|
Profit attributable to shareholders of the parent company
|
2,479
|
|
13,522
|
|
Dividend payable on preference shares classified as equity
|
(90
|
)
|
(90
|
)
|
Coupon payable on capital securities classified as equity
|
(1,090
|
)
|
(860
|
)
|
Year ended 31 Dec
|
1,299
|
|
12,572
|
|
Basic and diluted earnings per share
|
|||||||||||||
|
|
2016
|
2015
|
||||||||||
|
|
Profit
|
|
Number
of shares |
|
Per
share |
|
Profit
|
|
Number
of shares |
|
Per
share
|
|
|
Footnotes
|
$m
|
|
(millions)
|
|
$
|
|
$m
|
|
(millions)
|
|
$
|
|
Basic
|
1
|
1,299
|
|
19,753
|
|
0.07
|
|
12,572
|
|
19,380
|
|
0.65
|
|
Effect of dilutive potential ordinary shares
|
|
|
|
92
|
|
|
|
|
137
|
|
|
||
Diluted
|
1
|
1,299
|
|
19,845
|
|
0.07
|
|
12,572
|
|
19,517
|
|
0.64
|
|
1
|
Weighted average number of ordinary shares outstanding (basic) or assuming dilution (diluted).
|
5 Loan impairment charges and other credit risk provisions
|
|
2016
|
|
2015
|
|
|
$m
|
|
$m
|
|
New allowances net of allowance releases
|
3,977
|
|
4,400
|
|
Recoveries of amounts previously written off
|
(627
|
)
|
(808
|
)
|
Loan impairment charges:
|
3,350
|
|
3,592
|
|
- individually assessed allowances
|
1,831
|
|
1,505
|
|
- collectively assessed allowances
|
1,519
|
|
2,087
|
|
Releases of impairment on available-for-sale debt securities
|
(63
|
)
|
(17
|
)
|
Other credit risk provisions
|
113
|
|
146
|
|
Year ended 31 Dec
|
3,400
|
|
3,721
|
|
Impairment charges on loans and advances to customers as a percentage of
average gross loans and advances to customers |
0.39
|
%
|
0.39
|
%
|
6 Segmental analysis
|
•
|
Creation of a Corporate Centre: Certain functions were combined to create a Corporate Centre. These include Balance Sheet Management, legacy businesses and interests in associates and joint ventures. The Corporate Centre also includes the results of our financing operations, central support costs with associated recoveries and the UK bank levy, previously reported within Other.
|
•
|
Reallocation of Head Office costs: We have reviewed central costs previously reported in Other and reallocated them to the global businesses where appropriate. Residual costs are reported within the Corporate Centre.
|
•
|
Customer realignment: We conducted a number of internal reviews aligning customer requirements to those global businesses best suited to service their respective needs, resulting in the transfer of a portfolio of customers from CMB to GB&M and the transfer of certain policyholders in Asia from CMB to RBWM during the year.
|
HSBC Holdings plc News Release 2016
|
17
|
Analysis of adjusted results by global business
|
HSBC profit/(loss) before tax and balance sheet data
|
|||||||||||||
|
|
2016
|
|||||||||||
|
|
Retail Banking
and Wealth Management |
|
Commercial
Banking |
|
Global
Banking and Markets |
|
Global
Private Banking |
|
Corporate Centre
|
|
Total
|
|
|
Footnotes
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
Profit before tax
|
|
|
|
|
|
|
|
||||||
Net interest income
|
|
13,198
|
|
8,689
|
|
4,923
|
|
809
|
|
1,243
|
|
28,862
|
|
Net fee income/(expense)
|
|
4,839
|
|
3,627
|
|
3,392
|
|
749
|
|
(63
|
)
|
12,544
|
|
Net trading income
|
1
|
435
|
|
447
|
|
6,327
|
|
183
|
|
2,542
|
|
9,934
|
|
Other income/(expenses)
|
2
|
453
|
|
124
|
|
277
|
|
16
|
|
(2,057
|
)
|
(1,187
|
)
|
Net operating income before loan impairment charges and other credit risk provisions
|
3
|
18,925
|
|
12,887
|
|
14,919
|
|
1,757
|
|
1,665
|
|
50,153
|
|
- external
|
|
16,319
|
|
12,953
|
|
17,798
|
|
1,498
|
|
1,585
|
|
50,153
|
|
- inter-segment
|
|
2,606
|
|
(66
|
)
|
(2,879
|
)
|
259
|
|
80
|
|
-
|
|
Loan impairment (charges)/recoveries and other credit risk provisions
|
|
(1,171
|
)
|
(1,000
|
)
|
(457
|
)
|
1
|
|
(25
|
)
|
(2,652
|
)
|
Net operating income
|
|
17,754
|
|
11,887
|
|
14,462
|
|
1,758
|
|
1,640
|
|
47,501
|
|
Total operating expenses
|
|
(12,441
|
)
|
(5,835
|
)
|
(8,865
|
)
|
(1,469
|
)
|
(1,946
|
)
|
(30,556
|
)
|
Operating profit/(loss)
|
|
5,313
|
|
6,052
|
|
5,597
|
|
289
|
|
(306
|
)
|
16,945
|
|
Share of profit in associates and joint ventures
|
|
20
|
|
-
|
|
-
|
|
-
|
|
2,335
|
|
2,355
|
|
Adjusted profit before tax
|
|
5,333
|
|
6,052
|
|
5,597
|
|
289
|
|
2,029
|
|
19,300
|
|
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
Share of HSBC's adjusted profit before tax
|
|
27.6
|
|
31.4
|
|
29.0
|
|
1.5
|
|
10.5
|
|
100.0
|
|
Adjusted cost efficiency ratio
|
|
65.7
|
|
45.3
|
|
59.4
|
|
83.6
|
|
116.9
|
|
60.9
|
|
Adjusted balance sheet data
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
Loans and advances to customers (net)
|
|
306,056
|
|
281,930
|
|
225,855
|
|
35,456
|
|
12,207
|
|
861,504
|
|
Interests in associates and joint ventures
|
|
395
|
|
-
|
|
-
|
|
-
|
|
19,634
|
|
20,029
|
|
Total external assets
|
|
413,287
|
|
306,256
|
|
925,187
|
|
41,459
|
|
688,797
|
|
2,374,986
|
|
Customer accounts
|
|
590,502
|
|
341,729
|
|
256,095
|
|
69,850
|
|
14,210
|
|
1,272,386
|
|
Adjusted risk-weighted assets (unaudited)
|
4
|
111,899
|
|
274,893
|
|
299,629
|
|
15,213
|
|
150,327
|
|
851,961
|
|
18
|
HSBC Holdings plc News Release 2016
|
HSBC profit/(loss) before tax and balance sheet data (continued)
|
|||||||||||||
|
|
20155
|
|||||||||||
|
|
Retail
Banking and Wealth Management |
|
Commercial
Banking |
|
Global
Banking and Markets |
|
Global
Private Banking |
|
Corporate Centre
|
|
Total
|
|
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
Profit before tax
|
|
|
|
|
|
|
|
||||||
Net interest income
|
|
12,579
|
|
8,461
|
|
4,514
|
|
824
|
|
2,241
|
|
28,619
|
|
Net fee income/(expense)
|
|
5,545
|
|
3,739
|
|
3,500
|
|
933
|
|
(119
|
)
|
13,598
|
|
Net trading income
|
1
|
443
|
|
462
|
|
6,175
|
|
204
|
|
655
|
|
7,939
|
|
Other income
|
2
|
675
|
|
91
|
|
377
|
|
4
|
|
116
|
|
1,263
|
|
Net operating income before loan impairment charges and other credit risk provisions
|
3
|
19,242
|
|
12,753
|
|
14,566
|
|
1,965
|
|
2,893
|
|
51,419
|
|
- external
|
|
16,763
|
|
12,863
|
|
17,055
|
|
1,690
|
|
3,048
|
|
51,419
|
|
- inter-segment
|
|
2,479
|
|
(110
|
)
|
(2,489
|
)
|
275
|
|
(155
|
)
|
-
|
|
Loan impairment charges and other credit risk provisions
|
|
(1,060
|
)
|
(1,434
|
)
|
(74
|
)
|
(11
|
)
|
(25
|
)
|
(2,604
|
)
|
Net operating income
|
|
18,182
|
|
11,319
|
|
14,492
|
|
1,954
|
|
2,868
|
|
48,815
|
|
Total operating expenses
|
|
(12,514
|
)
|
(5,896
|
)
|
(8,958
|
)
|
(1,567
|
)
|
(2,795
|
)
|
(31,730
|
)
|
Operating profit
|
|
5,668
|
|
5,423
|
|
5,534
|
|
387
|
|
73
|
|
17,085
|
|
Share of profit in associates and joint ventures
|
|
22
|
|
-
|
|
-
|
|
-
|
|
2,421
|
|
2,443
|
|
Adjusted profit before tax
|
|
5,690
|
|
5,423
|
|
5,534
|
|
387
|
|
2,494
|
|
19,528
|
|
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
Share of HSBC's adjusted profit before tax
|
|
29.1
|
|
27.8
|
|
28.3
|
|
2.0
|
|
12.8
|
|
100.0
|
|
Adjusted cost efficiency ratio
|
|
65.0
|
|
46.2
|
|
61.5
|
|
79.7
|
|
96.6
|
|
61.7
|
|
Adjusted balance sheet data
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
Loans and advances to customers (net)
|
|
296,607
|
|
269,758
|
|
231,215
|
|
41,161
|
|
23,451
|
|
862,192
|
|
Interests in associates and joint ventures
|
|
393
|
|
-
|
|
-
|
|
-
|
|
18,080
|
|
18,473
|
|
Total external assets
|
|
399,866
|
|
296,380
|
|
842,437
|
|
49,241
|
|
625,813
|
|
2,213,737
|
|
Customer accounts
|
|
548,835
|
|
327,285
|
|
240,971
|
|
78,318
|
|
13,337
|
|
1,208,746
|
|
Adjusted risk-weighted assets (unaudited)
|
4
|
113,268
|
|
270,915
|
|
308,189
|
|
17,121
|
|
305,691
|
|
1,015,184
|
|
1
|
Net interest income includes the cost of internally funding trading assets, while the related revenues are reported in net trading income. In our global business results, the total cost of funding trading assets is included within Corporate Centre net trading income as an interest expense. In the statutory presentation, internal interest income and expense are eliminated.
|
2
|
Other income in this context comprises where applicable net income/expense from other financial instruments designated at fair value, gains less losses from financial investments, dividend income, net insurance premium income and other operating income less net insurance claims and benefits paid and movement in liabilities to policyholders.
|
3
|
Net operating income before loan impairment charges and other credit risk provisions, also referred to as revenue.
|
4
|
Adjusted RWAs are calculated using reported RWAs adjusted for the effects of currency translation differences and significant items.
|
5
|
Restated for change in reportable segments explained on page 44 of the Annual Report and Accounts 2016.
|
HSBC Holdings plc News Release 2016
|
19
|
7 Reconciliation of reported and adjusted items
|
|
|
2016
|
|
2015
|
|
|
Footnotes
|
$m
|
|
$m
|
|
Revenue1
|
|
|
|
||
Reported
|
|
47,966
|
|
59,800
|
|
Currency translation
|
|
|
(3,001
|
)
|
|
Significant items
|
|
2,187
|
|
(5,380
|
)
|
- debit valuation adjustment on derivative contracts
|
|
(26
|
)
|
(230
|
)
|
- fair value movements on non-qualifying hedges
|
2
|
687
|
|
327
|
|
- gain on disposal of our membership interest in Visa - Europe
|
|
(584
|
)
|
-
|
|
- gain on disposal of our membership interest in Visa - US
|
|
(116
|
)
|
-
|
|
- gain on the partial sale of shareholding in Industrial Bank
|
|
-
|
|
(1,372
|
)
|
- own credit spread
|
3
|
1,792
|
|
(1,002
|
)
|
- portfolio disposals
|
|
163
|
|
214
|
|
- (releases)/provisions arising from the ongoing review of compliance with the UK Consumer Credit Act
|
|
(2
|
)
|
10
|
|
- loss and trading results from disposed-of operations in Brazil
|
|
273
|
|
(3,327
|
)
|
Adjusted
|
|
50,153
|
|
51,419
|
|
Loan impairment charges and other credit risk provisions ('LICs')
|
|
|
|
||
Reported
|
|
(3,400
|
)
|
(3,721
|
)
|
Currency translation
|
|
|
184
|
|
|
Significant items
|
|
748
|
|
933
|
|
- trading results from disposed-of operations in Brazil
|
|
748
|
|
933
|
|
Adjusted
|
|
(2,652
|
)
|
(2,604
|
)
|
Operating expenses
|
|
|
|
||
Reported
|
|
(39,808
|
)
|
(39,768
|
)
|
Currency translation
|
|
|
2,091
|
|
|
Significant items
|
|
9,252
|
|
5,947
|
|
- costs associated with portfolio disposals
|
|
28
|
|
-
|
|
- costs to achieve
|
|
3,118
|
|
908
|
|
- costs to establish UK ring-fenced bank
|
|
223
|
|
89
|
|
- impairment of GPB - Europe goodwill
|
|
3,240
|
|
-
|
|
- regulatory provisions in GPB
|
|
344
|
|
172
|
|
- restructuring and other related costs
|
|
-
|
|
117
|
|
- settlements and provisions in connection with legal matters
|
|
681
|
|
1,649
|
|
- UK customer redress programmes
|
|
559
|
|
541
|
|
- trading results from disposed-of operations in Brazil
|
|
1,059
|
|
2,471
|
|
Adjusted
|
|
(30,556
|
)
|
(31,730
|
)
|
Share of profit in associates and joint ventures
|
|
|
|
||
Reported
|
|
2,354
|
|
2,556
|
|
Currency translation
|
|
|
(114
|
)
|
|
Significant items
|
|
1
|
|
1
|
|
- trading results from disposed-of operations in Brazil
|
|
1
|
|
1
|
|
Adjusted
|
|
2,355
|
|
2,443
|
|
Profit before tax
|
|
|
|
||
Reported
|
|
7,112
|
|
18,867
|
|
Currency translation
|
|
|
(840
|
)
|
|
Significant items
|
|
12,188
|
|
1,501
|
|
- revenue
|
|
2,187
|
|
(5,380
|
)
|
- loan impairment charges and other credit risk provisions
|
|
748
|
|
933
|
|
- operating expenses
|
|
9,252
|
|
5,947
|
|
- share of profit in associates and joint ventures
|
|
1
|
|
1
|
|
Adjusted
|
|
19,300
|
|
19,528
|
|
1
|
Net operating income before loan impairment charges and other credit risk provisions, also referred to as revenue.
|
2
|
Excludes items where there are substantial offsets in the income statement for the same year.
|
3
|
'Own credit spread' includes the fair value movements on our long-term debt attributable to credit spread where the net result of such movements will be zero upon maturity of the debt. This does not include fair value changes due to own credit risk in respect of trading liabilities or derivative liabilities.
|
20
|
HSBC Holdings plc News Release 2016
|
8 Contingent liabilities, contractual commitments and guarantees
|
|
2016
|
|
2015
|
|
|
$m
|
|
$m
|
|
Guarantees and other contingent liabilities:
|
|
|
||
- financial guarantees and similar contracts
|
37,072
|
|
46,116
|
|
- other guarantees
|
44,394
|
|
39,739
|
|
- other contingent liabilities
|
553
|
|
490
|
|
At 31 Dec
|
82,019
|
|
86,345
|
|
Commitments:
|
|
|
||
- documentary credits and short-term trade-related transactions
|
9,190
|
|
10,168
|
|
- forward asset purchases and forward deposits placed
|
5,386
|
|
981
|
|
- standby facilities, credit lines and other commitments to lend
|
641,267
|
|
655,281
|
|
At 31 Dec
|
655,843
|
|
666,430
|
|
9 Legal proceedings and regulatory matters
|
HSBC Holdings plc News Release 2016
|
21
|
22
|
HSBC Holdings plc News Release 2016
|
HSBC Holdings plc News Release 2016
|
23
|
24
|
HSBC Holdings plc News Release 2016
|
HSBC Holdings plc News Release 2016
|
25
|
26
|
HSBC Holdings plc News Release 2016
|
HSBC Holdings plc News Release 2016
|
27
|
10 Disposal of Brazilian operations
|
11 Events after the balance sheet date
|
12 Capital structure
|
Capital ratios
|
||||
|
|
At 31 Dec
|
||
|
|
2016
|
2015
|
|
|
Footnote
|
%
|
%
|
|
CRD IV end point
|
|
|
|
|
Common equity tier 1 ratio
|
1
|
13.6
|
11.9
|
|
CRD IV transitional
|
|
|
|
|
Common equity tier 1 ratio
|
1
|
13.6
|
11.9
|
|
Tier 1 ratio
|
|
16.1
|
13.9
|
|
Total capital ratio
|
|
20.1
|
17.2
|
|
Total regulatory capital and risk-weighted assets
|
|
|
|
||
|
|
At 31 Dec
|
|||
|
|
2016
|
|
2015
|
|
|
Footnote
|
$m
|
|
$m
|
|
CRD IV end point
|
|
|
|
||
Common equity tier 1 capital
|
1
|
115,984
|
|
130,863
|
|
CRD IV transitional
|
|
|
|
||
Common equity tier 1 capital
|
1
|
116,552
|
|
130,863
|
|
Additional tier 1 capital
|
|
21,470
|
|
22,440
|
|
Tier 2 capital
|
|
34,336
|
|
36,530
|
|
Total regulatory capital
|
|
172,358
|
|
189,833
|
|
Transitional risk-weighted assets
|
1
|
857,181
|
|
1,102,995
|
|
1
|
Due to transitional provisions in the threshold deduction our CET1 and RWAs are different for transitional and end point. At 31 December 2016, end point RWAs were $855.8bn.
|
Leverage ratio
|
||||||
|
|
At 31 Dec
|
||||
|
|
2016
|
|
2015
|
|
|
Ref*
|
|
$bn
|
|
$bn
|
|
|
21
|
|
Total leverage ratio exposure
|
2,354.4
|
|
2,794.4
|
|
20
|
|
Tier 1 capital (end point)
|
127.3
|
|
140.2
|
|
22
|
|
Leverage ratio
|
5.4
|
%
|
5.0
|
%
|
EU-23
|
|
Choice on transitional arrangements for the definition of the capital measure
|
Fully phased in
|
Fully phased in
|
||
|
Total leverage ratio exposure - quarterly average
|
2,438.7
|
|
2,869.4
|
|
|
|
Leverage ratio - quarterly average
|
5.4
|
%
|
5.0
|
%
|
*
|
The references identify the lines prescribed in the EBA template.
|
13 Statutory accounts
|
28
|
HSBC Holdings plc News Release 2016
|
14 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
|
|
Maximum value of shares that may yet be purchased
|
|
|
|
£
|
|
£
|
|
£
|
|
£
|
|
$
|
|
|
Aug-16
|
37,287,407
|
|
5.6950
|
|
5.1140
|
|
5.4551
|
|
203,408,308
|
|
2,233,620,166
|
|
Sep-16
|
79,160,560
|
|
5.9420
|
|
5.5650
|
|
5.7336
|
|
453,876,095
|
|
1,636,117,416
|
|
Oct-16
|
72,211,730
|
|
6.3210
|
|
5.7850
|
|
6.1503
|
|
444,125,860
|
|
1,085,362,266
|
|
Nov-16
|
82,231,879
|
|
6.4560
|
|
5.8840
|
|
6.2433
|
|
513,399,612
|
|
448,362,392
|
|
Dec-16
|
54,381,831
|
|
6.7530
|
|
6.2010
|
|
6.5331
|
|
355,281,894
|
|
58
|
|
15 Interim dividends for 2017
|
16 Corporate governance codes
|
1
|
Independent non-executive Director.
|
HSBC Holdings plc News Release 2016
|
29
|
17 For further information contact:
|
Media Relations
UK - Heidi Ashley
Telephone: +44 (0)20 7992 2045
|
Investor Relations
UK - Richard O'Connor
Email: investorrelations@hsbc.com
|
Hong Kong - Gareth Hewett
Telephone: +852 2822 4929
|
Hong Kong - Hugh Pye
Telephone: +852 2822 4908
|
30
|
HSBC Holdings plc News Release 2016
Click on, or paste the following link into your web browser, to view the following documents:-
1.
Data Pack 4Q 2016
2.
Global Business Resegmentation Reconciliation 4Q 2016
http://www.rns-pdf.londonstockexchange.com/rns/3786X_1-2017-2-20.pdf
|