|
|
●
|
Strong
momentum in Asia with customer advances in the Pearl River Delta up
17% on 1Q16, new insurance sales up 13% and growth in assets under
management of 15%.
|
|
|
●
|
Achieved
annualised run-rate savings of $4.3bn since inception, while
continuing to invest in growth, and regulatory programmes and
compliance. Incremental $0.4bn savings in 1Q17.
|
|
|
●
|
Adjusted
profit before tax growth in all three NAFTA countries. Lower LICs
in the US and Canada; revenue growth in Mexico.
|
|
|
●
|
Exceeded
our RWA reduction target (FX rebased).
|
|
|
●
|
Completed
our $1.0bn share buy-back in April.
|
|
|
●
|
Reported
profit before tax of $5.0bn down $1.1bn or 19%, primarily due to
adverse movements in significant items including fair value
movements on our own debt from changes in our own credit spread in
1Q16; adjusted profit before tax of $5.9bn, up $0.6bn or 12%
compared with 1Q16, reflecting lower LICs and higher
revenue.
|
|
|
●
|
Reported
revenue of $13.0bn was 13% lower primarily due currency translation
differences and the absence of fair value movements on our own debt
and revenue from the operations in Brazil that we sold, which were
the key elements of the adverse movement in significant items;
adjusted revenue of $12.8bn, up $0.3bn or 2%, mainly in RBWM from
life insurance manufacturing and growth in current accounts,
savings and deposits, and in GB&M from Rates and
Credit.
|
|
|
●
|
Reported
operating expenses of $8.3bn were $0.1bn or 1% higher; adjusted
operating expenses of $7.2bn were $0.2bn or 3% higher, mainly due
to a credit in the prior year relating to the 2015 UK bank levy.
Excluding this, inflation and continued investment in our
regulatory and growth programmes were partly offset by the impact
of our cost-saving initiatives.
|
|
|
●
|
Adjusted
jaws was negative 0.6%.
|
|
|
●
|
Compared
with 4Q16, reported profit before tax was up $8.4bn; adjusted
profit before tax was up $3.3bn.
|
|
|
●
|
Strong
capital base with a common equity tier 1 ('CET1') ratio of 14.3%
and a leverage ratio of 5.5%.
|
|
|
|
|
|
|
|
|
|||||
Financial
highlights and key ratios
|
|||||||||||
|
Quarter
ended 31 Mar
|
||||||||||
|
2017
|
|
2016
|
|
Change
|
|
|||||
|
$m
|
|
$m
|
|
%
|
|
|||||
Reported
PBT
|
4,961
|
|
6,106
|
|
(19
|
)
|
|||||
Adjusted
PBT
|
5,937
|
|
5,296
|
|
12
|
|
|||||
|
%
|
|
%
|
|
%
|
|
|||||
Return
on average ordinary shareholders' equity (annualised)
|
8.0
|
|
9.0
|
|
(11.1
|
)
|
|||||
Adjusted
jaws
|
(0.6
|
)
|
|
|
|
||||||
|
|
|||||
Capital
and balance sheet
|
||||||
|
At
|
|||||
|
31
Mar
|
|
31
Dec
|
|
||
|
2017
|
|
2016
|
|
||
|
%
|
|
%
|
|
||
Common
equity tier 1 ratio1
|
14.3
|
|
13.6
|
|
||
Leverage
ratio
|
5.5
|
|
5.4
|
|
||
|
$m
|
|
$m
|
|
||
Loans
and advances to customers
|
875,969
|
|
861,504
|
|
||
Customer
accounts
|
1,272,957
|
|
1,272,386
|
|
||
Risk-weighted
assets1
|
857,865
|
|
857,181
|
|
|
|
1
|
Unless
otherwise stated, risk-weighted assets and capital are calculated
and presented on a transitional CRD IV basis as implemented in the
UK by the Prudential Regulation Authority.
|
|
||
|
|
|
HSBC
Holdings plc Earnings Release 1Q17
|
1
|
|
||||||||||||
|
||||||||||||
Table
of contents
|
||||||||||||
|
Page
|
|
|
|
Page
|
|
||||||
Highlights
|
1
|
|
|
Summary
information - global businesses
|
19
|
|
||||||
Group
Chief Executive's review
|
3
|
|
|
Summary
information - geographical regions
|
21
|
|
||||||
Adjusted
performance
|
4
|
|
|
Appendix
- selected information
|
22
|
|
||||||
Financial
performance commentary
|
6
|
|
|
-
Reconciliation of reported and adjusted results - global
businesses
|
22
|
|
||||||
Cautionary
statement regarding forward-looking statements
|
12
|
|
|
-
Reconciliation of reported and adjusted risk-weighted
assets
|
25
|
|
||||||
Summary
consolidated income statement
|
13
|
|
|
-
Reconciliation of reported and adjusted results - geographical
regions
|
25
|
|
||||||
Summary
consolidated balance sheet
|
14
|
|
|
|||||||||
Capital
|
15
|
|
|
Gross
loans and advances by industry sector and geographical
region
|
28
|
|
||||||
Minimum
requirement for own funds and eligible liabilities
|
15
|
|
|
First
interim dividend for 2017
|
29
|
|
||||||
Risk-weighted
assets
|
15
|
|
|
Dividend
on Series A dollar preference shares
|
29
|
|
||||||
Leverage
|
18
|
|
|
Terms
and abbreviations
|
30
|
|
|
|
HSBC
Holdings plc - Earnings Release
|
|
|||
|
|
|
|
2
|
HSBC
Holdings plc Earnings Release 1Q17
|
|
|
Review
by Stuart Gulliver, Group Chief Executive
|
|
||
|
|
|
HSBC
Holdings plc Earnings Release 1Q17
|
3
|
|
|
Adjusted
performance
|
|
|
Foreign
currency translation differences
Foreign
currency translation differences for 1Q17 are computed
by retranslating into US dollars for non-US dollar branches,
subsidiaries, joint ventures and associates:
●
the
income statements for 4Q16 and 1Q16 at the average rates
of exchange for 1Q17; and
●
the
closing prior period balance sheets at the prevailing rates of
exchange on 31 March 2017.
No
adjustment has been made to the exchange rates used to translate
foreign currency denominated assets and liabilities into
the functional currencies of any HSBC branches, subsidiaries,
joint ventures or associates. When reference is made to foreign
currency translation differences in tables or commentaries,
comparative data reported in the functional currencies of HSBC's
operations have been translated at the appropriate exchange rates
applied in the current period on the basis described
above.
|
|
|||
|
|
|
|
4
|
HSBC
Holdings plc Earnings Release 1Q17
|
|
||||||||||
|
|
|||||||||
Reconciliation
of reported and adjusted results
|
||||||||||
|
Quarter
ended
|
|||||||||
|
31
Mar
|
|
31
Dec
|
|
31
Mar
|
|
||||
|
2017
|
|
2016
|
|
2016
|
|
||||
|
$m
|
|
$m
|
|
$m
|
|
||||
Revenue
|
|
|
|
|||||||
Reported
|
12,993
|
|
8,984
|
|
14,976
|
|
||||
Currency
translation
|
|
(74
|
)
|
(466
|
)
|
|||||
Significant
items
|
(150
|
)
|
2,015
|
|
(1,931
|
)
|
||||
- DVA
on derivative contracts
|
97
|
|
70
|
|
(158
|
)
|
||||
- fair
value movements on non-qualifying hedges
|
(91
|
)
|
302
|
|
233
|
|
||||
- gain
on disposal of our membership interest in Visa - US
|
(146
|
)
|
(116
|
)
|
-
|
|
||||
- own
credit spread1
|
-
|
|
1,648
|
|
(1,151
|
)
|
||||
-
portfolio disposals
|
(10
|
)
|
112
|
|
-
|
|
||||
-
trading results from disposed-of operations in Brazil
|
-
|
|
-
|
|
(721
|
)
|
||||
-
currency translation of significant items
|
|
(1
|
)
|
(134
|
)
|
|||||
Adjusted
|
12,843
|
|
10,925
|
|
12,579
|
|
||||
LICs
|
|
|
|
|||||||
Reported
|
(236
|
)
|
(468
|
)
|
(1,161
|
)
|
||||
Currency
translation
|
|
12
|
|
(55
|
)
|
|||||
Significant
items
|
-
|
|
-
|
|
416
|
|
||||
-
trading results from disposed-of operations in Brazil
|
-
|
|
-
|
|
334
|
|
||||
-
currency translation of significant items
|
|
-
|
|
82
|
|
|||||
Adjusted
|
(236
|
)
|
(456
|
)
|
(800
|
)
|
||||
Operating
expenses
|
|
|
|
|||||||
Reported
|
(8,328
|
)
|
(12,459
|
)
|
(8,264
|
)
|
||||
Currency
translation
|
|
42
|
|
274
|
|
|||||
Significant
items
|
1,126
|
|
4,042
|
|
974
|
|
||||
- costs
associated with portfolio disposals
|
-
|
|
28
|
|
-
|
|
||||
- costs
to achieve
|
833
|
|
1,086
|
|
341
|
|
||||
- costs
to establish UK ring-fenced bank
|
83
|
|
76
|
|
31
|
|
||||
-
impairment of GPB - Europe goodwill
|
-
|
|
2,440
|
|
-
|
|
||||
-
regulatory provisions in GPB
|
-
|
|
390
|
|
1
|
|
||||
-
settlements and provisions in connection with legal
matters
|
-
|
|
(42
|
)
|
-
|
|
||||
- UK
customer redress programmes
|
210
|
|
70
|
|
-
|
|
||||
-
trading results from disposed-of operations in Brazil
|
-
|
|
-
|
|
504
|
|
||||
-
currency translation of significant items
|
|
(6
|
)
|
97
|
|
|||||
Adjusted
|
(7,202
|
)
|
(8,375
|
)
|
(7,016
|
)
|
||||
Share
of profit in associates and joint ventures
|
|
|
|
|||||||
Reported
|
532
|
|
498
|
|
555
|
|
||||
Currency
translation
|
|
(4
|
)
|
(23
|
)
|
|||||
Significant
items
|
-
|
|
-
|
|
1
|
|
||||
-
trading results from disposed-of operations in Brazil
|
-
|
|
-
|
|
1
|
|
||||
-
currency translation of significant items
|
|
-
|
|
-
|
|
|||||
Adjusted
|
532
|
|
494
|
|
533
|
|
||||
Profit
before tax
|
|
|
|
|||||||
Reported
|
4,961
|
|
(3,445
|
)
|
6,106
|
|
||||
Currency
translation
|
|
(24
|
)
|
(270
|
)
|
|||||
Significant
items
|
976
|
|
6,057
|
|
(540
|
)
|
||||
-
revenue
|
(150
|
)
|
2,015
|
|
(1,931
|
)
|
||||
-
LICs
|
-
|
|
-
|
|
416
|
|
||||
-
operating expenses
|
1,126
|
|
4,042
|
|
974
|
|
||||
-
share in profit of associates and joint ventures
|
-
|
|
-
|
|
1
|
|
||||
Adjusted
|
5,937
|
|
2,588
|
|
5,296
|
|
|
|
1
|
'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. On 1 January 2017,
HSBC adopted the requirements of IFRS 9 relating to the
presentation of gains and losses on financial liabilities
designated at fair value. As a result, the effects of changes in
those liabilities' credit risk is presented in other comprehensive
income.
|
|
||
|
|
|
HSBC
Holdings plc Earnings Release 1Q17
|
5
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
||||||||||||||
Financial
performance commentary
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
||||||||||
Distribution
of results by global business
|
|
|
|
|
|
|
||||||||||
|
Quarter
ended
|
|
|
|
|
|
|
|||||||||
|
31
Mar
|
|
31
Dec
|
|
31
Mar
|
|
|
|
|
|
|
|
||||
|
2017
|
|
2016
|
|
2016
|
|
|
|
|
|
|
|
||||
|
$m
|
|
$m
|
|
$m
|
|
|
|
|
|
|
|
||||
Adjusted
profit/(loss) before tax
|
|
|
|
|
|
|
|
|
|
|||||||
Retail
Banking and Wealth Management
|
1,781
|
|
1,140
|
|
1,216
|
|
|
|
|
|
|
|
||||
Commercial
Banking
|
1,795
|
|
1,389
|
|
1,487
|
|
|
|
|
|
|
|
||||
Global
Banking and Markets
|
1,709
|
|
1,319
|
|
1,262
|
|
|
|
|
|
|
|
||||
Global
Private Banking
|
70
|
|
24
|
|
85
|
|
|
|
|
|
|
|
||||
Corporate
Centre
|
582
|
|
(1,284
|
)
|
1,246
|
|
|
|
|
|
|
|
||||
|
5,937
|
|
2,588
|
|
5,296
|
|
|
|
|
|
|
|
||||
|
|
|
||||||||||||||
|
|
|
|
|
|
|
||||||||||
Distribution
of results by geographical region
|
|
|
||||||||||||||
|
Quarter
ended
|
|
|
|||||||||||||
|
31
Mar
|
|
31
Dec
|
|
31
Mar
|
|
|
|
||||||||
|
2017
|
|
2016
|
|
2016
|
|
|
|
||||||||
|
$m
|
|
$m
|
|
$m
|
|
|
|
||||||||
Reported
profit/(loss) before tax
|
|
|
|
|
|
|||||||||||
Europe1
|
(206
|
)
|
(6,741
|
)
|
1,698
|
|
|
|
||||||||
Asia
|
4,094
|
|
2,962
|
|
3,530
|
|
|
|
||||||||
Middle
East and North Africa1
|
387
|
|
195
|
|
509
|
|
|
|
||||||||
North
America
|
572
|
|
69
|
|
364
|
|
|
|
||||||||
Latin
America
|
114
|
|
70
|
|
5
|
|
|
|
||||||||
|
4,961
|
|
(3,445
|
)
|
6,106
|
|
|
|
||||||||
Adjusted
profit/(loss) before tax
|
|
|
|
|
|
|||||||||||
Europe1
|
595
|
|
(1,163
|
)
|
908
|
|
|
|
||||||||
Asia
|
4,307
|
|
3,185
|
|
3,437
|
|
|
|
||||||||
Middle
East and North Africa1
|
395
|
|
212
|
|
446
|
|
|
|
||||||||
North
America
|
512
|
|
264
|
|
366
|
|
|
|
||||||||
Latin
America
|
128
|
|
90
|
|
139
|
|
|
|
||||||||
|
5,937
|
|
2,588
|
|
5,296
|
|
|
|
|
|
1
|
In
3Q16, HSBC Bank plc executed a management services agreement,
transferring its governance responsibilities over HSBC Bank A.S.
(Turkey) to HSBC Bank Middle East Limited to leverage the strong
commercial ties between Turkey and MENA. Comparative data for
Europe and MENA have been re-presented accordingly.
|
|
|||||||||||||||||
|
|
||||||||||||||||
Movement
in reported profit before tax compared with 1Q16
|
|||||||||||||||||
|
1Q17
|
|
1Q16
|
|
1Q17
vs. 1Q16
|
||||||||||||
|
$m
|
|
$m
|
|
$m
|
|
%
|
|
|||||||||
Revenue
|
12,993
|
|
14,976
|
|
(1,983
|
)
|
(13
|
)
|
|||||||||
LICs
|
(236
|
)
|
(1,161
|
)
|
925
|
|
80
|
|
|||||||||
Operating
expenses
|
(8,328
|
)
|
(8,264
|
)
|
(64
|
)
|
(1
|
)
|
|||||||||
Share
of profit from associates and JVs
|
532
|
|
555
|
|
(23
|
)
|
(4
|
)
|
|||||||||
Profit
before tax
|
4,961
|
|
6,106
|
|
(1,145
|
)
|
(19
|
)
|
|
|
●
|
In
1Q16, favourable fair value movements on our own debt designated at
fair value reflecting changes in our own credit spread of $1.2bn.
These movements are reported in the statement of comprehensive
income, following the implementation of IFRS 9 Financial
Instruments on 1 January 2017.
|
|
|
●
|
Revenue
of $0.7bn in 1Q16 related to the operations in Brazil that we sold
in July 2016.
|
|
|||
|
|
|
|
6
|
HSBC
Holdings plc Earnings Release 1Q17
|
|
|
●
|
costs
to achieve of $0.8bn, compared with $0.3bn in 1Q16;
and
|
|
|
●
|
a
provision of $0.2bn in 1Q17 relating to customer redress in the
UK.
|
|
|
●
|
the
operating expenses incurred in 1Q16 in our Brazil business of
$0.5bn.
|
|
|||||||||||||||||
|
|
|
|||||||||||||||
Movement
in adjusted profit before tax compared with 1Q16
|
|||||||||||||||||
|
1Q17
|
|
1Q16
|
|
1Q17
vs. 1Q16
|
||||||||||||
|
$m
|
|
$m
|
|
$m
|
|
%
|
|
|||||||||
Revenue
|
12,843
|
|
12,579
|
|
264
|
|
2
|
|
|||||||||
LICs
|
(236
|
)
|
(800
|
)
|
564
|
|
71
|
|
|||||||||
Operating
expenses
|
(7,202
|
)
|
(7,016
|
)
|
(186
|
)
|
(3
|
)
|
|||||||||
Share
of profit from associates and JVs
|
532
|
|
533
|
|
(1
|
)
|
-
|
|
|||||||||
Profit
before tax
|
5,937
|
|
5,296
|
|
641
|
|
12
|
|
|
|
●
|
In
RBWM, revenue increased by $0.7bn. This was mainly in life
insurance manufacturing, which benefited from favourable market
impacts in Asia and Europe, compared with adverse market impacts in
1Q16. In current accounts, savings and deposits, revenue also
increased, reflecting growth in balances and wider spreads,
primarily in Asia.
|
|
|
●
|
In
GB&M, revenue increased by $0.4bn, primarily in Rates and
Credit, as we captured increased client flows. This was partly
offset by net adverse movements on credit and funding valuation
adjustments.
|
|
|
●
|
In
Corporate Centre, revenue decreased by $0.7bn, driven by Central
Treasury and the US run-off portfolio. The reduction in Central
Treasury reflected minimal adverse fair value movements, relating
to the economic hedging of interest and exchange rate risk on our
long-term debt with long-term derivatives, compared with favourable
movements of $0.2bn in 1Q16. In addition, interest expense on debt
increased. These factors were partly offset by higher revenue in
Balance Sheet Management.
|
|
||||||||||||||||||||
|
|
|||||||||||||||||||
Management
view of adjusted revenue
|
||||||||||||||||||||
|
1Q17
|
|
4Q16
|
|
1Q16
|
|
1Q17
vs. 1Q16
|
|||||||||||||
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
%
|
|
||||||||||
Net
operating income1
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail
Banking
|
3,213
|
|
3,120
|
|
3,125
|
|
88
|
|
3
|
|
||||||||||
Current
accounts, savings and deposits
|
1,453
|
|
1,319
|
|
1,261
|
|
192
|
|
15
|
|
||||||||||
Personal
lending
|
1,760
|
|
1,801
|
|
1,864
|
|
(104
|
)
|
(6
|
)
|
||||||||||
-
mortgages
|
590
|
|
609
|
|
642
|
|
(52
|
)
|
(8
|
)
|
||||||||||
-
credit cards
|
722
|
|
731
|
|
778
|
|
(56
|
)
|
(7
|
)
|
||||||||||
- other
personal lending2
|
448
|
|
461
|
|
444
|
|
4
|
|
1
|
|
||||||||||
Wealth
Management
|
1,652
|
|
1,280
|
|
1,137
|
|
515
|
|
45
|
|
||||||||||
-
investment distribution3
|
799
|
|
674
|
|
689
|
|
110
|
|
16
|
|
||||||||||
- life
insurance manufacturing
|
606
|
|
365
|
|
212
|
|
394
|
|
186
|
|
||||||||||
- asset
management
|
247
|
|
241
|
|
236
|
|
11
|
|
5
|
|
||||||||||
Other4
|
144
|
|
163
|
|
95
|
|
49
|
|
52
|
|
||||||||||
Total
|
5,009
|
|
4,563
|
|
4,357
|
|
652
|
|
15
|
|
||||||||||
RoRWA5
|
6.4
|
|
4.0
|
|
4.3
|
|
|
|
|
||
|
|
|
HSBC
Holdings plc Earnings Release 1Q17
|
7
|
|
||||||||||||||||||||
|
|
|||||||||||||||||||
Management
view of adjusted revenue
|
||||||||||||||||||||
|
1Q17
|
|
4Q16
|
|
1Q16
|
|
1Q17
vs. 1Q16
|
|||||||||||||
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
%
|
|
||||||||||
Net
operating income1
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Global
Trade and
Receivables
Finance
|
449
|
|
443
|
|
468
|
|
(19
|
)
|
(4
|
)
|
||||||||||
Credit
and Lending
|
1,207
|
|
1,215
|
|
1,233
|
|
(26
|
)
|
(2
|
)
|
||||||||||
Global
Liquidity and
Cash
Management
|
1,104
|
|
1,076
|
|
1,030
|
|
74
|
|
7
|
|
||||||||||
Markets
products, Insurance and Investments, and Other6
|
431
|
|
290
|
|
413
|
|
18
|
|
4
|
|
||||||||||
Total
|
3,191
|
|
3,024
|
|
3,144
|
|
47
|
|
1
|
|
||||||||||
RoRWA5
|
2.6
|
|
2.0
|
|
2.2
|
|
|
|
|
||||||||||||||||||||
|
|
|||||||||||||||||||
Management
view of adjusted revenue
|
||||||||||||||||||||
|
1Q17
|
|
4Q16
|
|
1Q16
|
|
1Q17
vs. 1Q16
|
|||||||||||||
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
%
|
|
||||||||||
Net
operating income1
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Global
Markets
|
1,934
|
|
1,526
|
|
1,501
|
|
433
|
|
29
|
|
||||||||||
-
Foreign Exchange
|
625
|
|
733
|
|
692
|
|
(67
|
)
|
(10
|
)
|
||||||||||
-
Credit
|
327
|
|
73
|
|
153
|
|
174
|
|
114
|
|
||||||||||
-
Rates
|
648
|
|
496
|
|
424
|
|
224
|
|
53
|
|
||||||||||
-
Equities
|
334
|
|
224
|
|
232
|
|
102
|
|
44
|
|
||||||||||
Global
Banking
|
894
|
|
978
|
|
874
|
|
20
|
|
2
|
|
||||||||||
Global
Liquidity and
Cash
Management
|
518
|
|
483
|
|
459
|
|
59
|
|
13
|
|
||||||||||
Securities
Services
|
405
|
|
391
|
|
363
|
|
42
|
|
12
|
|
||||||||||
Global
Trade and Receivables Finance
|
180
|
|
169
|
|
170
|
|
10
|
|
6
|
|
||||||||||
Principal
Investments
|
29
|
|
49
|
|
3
|
|
26
|
|
867
|
|
||||||||||
Credit
and funding
valuation
adjustments7
|
(2
|
)
|
(26
|
)
|
137
|
|
(139
|
)
|
(101
|
)
|
||||||||||
Other8
|
(72
|
)
|
4
|
|
33
|
|
(105
|
)
|
(318
|
)
|
||||||||||
Total
|
3,886
|
|
3,574
|
|
3,540
|
|
346
|
|
10
|
|
||||||||||
RoRWA5
|
2.3
|
|
1.7
|
|
1.6
|
|
|
|
|
|||
|
|
|
|
8
|
HSBC
Holdings plc Earnings Release 1Q17
|
|
||||||||||||||||||
|
|
|||||||||||||||||
Management
view of adjusted revenue
|
||||||||||||||||||
|
1Q17
|
|
4Q16
|
|
1Q16
|
|
1Q17
vs. 1Q16
|
|||||||||||
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
%
|
|
||||||||
Net
operating income1
|
|
|
|
|
|
|
|
|
|
|
||||||||
Investment
revenue
|
176
|
|
158
|
|
193
|
|
(17
|
)
|
(9
|
)
|
||||||||
Lending
|
91
|
|
92
|
|
106
|
|
(15
|
)
|
(14
|
)
|
||||||||
Deposit
|
89
|
|
82
|
|
91
|
|
(2
|
)
|
(2
|
)
|
||||||||
Other
|
59
|
|
65
|
|
62
|
|
(3
|
)
|
(5
|
)
|
||||||||
Total
|
415
|
|
397
|
|
452
|
|
(37
|
)
|
(8
|
)
|
||||||||
RoRWA5
|
1.9
|
|
0.6
|
|
2.0
|
|
|
|
|
||||||||||||||||||
|
|
|||||||||||||||||
Management
view of adjusted revenue
|
||||||||||||||||||
|
1Q17
|
|
4Q16
|
|
1Q16
|
|
1Q17
vs. 1Q16
|
|||||||||||
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
%
|
|
||||||||
Net
operating income1
|
|
|
|
|
|
|
|
|
||||||||||
Central
Treasury9
|
373
|
|
(289
|
)
|
736
|
|
(363
|
)
|
(49
|
)
|
||||||||
Legacy
portfolios
|
33
|
|
123
|
|
210
|
|
(177
|
)
|
(84
|
)
|
||||||||
- US
run-off portfolio
|
33
|
|
125
|
|
248
|
|
(215
|
)
|
(87
|
)
|
||||||||
-
legacy credit
|
-
|
|
(2
|
)
|
(38
|
)
|
38
|
|
(100
|
)
|
||||||||
Other10
|
(64
|
)
|
(467
|
)
|
140
|
|
(204
|
)
|
(146
|
)
|
||||||||
Total
|
342
|
|
(633
|
)
|
1,086
|
|
(744
|
)
|
(69
|
)
|
|
|||||||||||||||
|
|
||||||||||||||
Movement
in reported profit before tax compared with 4Q16
|
|||||||||||||||
|
1Q17
|
|
4Q16
|
|
1Q17
vs. 4Q16
|
||||||||||
|
$m
|
|
$m
|
|
$m
|
|
%
|
||||||||
Revenue
|
12,993
|
|
8,984
|
|
4,009
|
|
45
|
||||||||
LICs
|
(236
|
)
|
(468
|
)
|
232
|
|
50
|
||||||||
Operating
expenses
|
(8,328
|
)
|
(12,459
|
)
|
4,131
|
|
33
|
||||||||
Share
of profit from associates and JVs
|
532
|
|
498
|
|
34
|
|
7
|
||||||||
Profit
before tax
|
4,961
|
|
(3,445
|
)
|
8,406
|
|
244
|
|
|
●
|
adverse
fair value movements on our own debt designated at fair value from
changes in credit spreads of $1.6bn in 4Q16; and
|
|
|
●
|
favourable
fair value movements on non-qualifying hedges in 1Q17 of $0.1bn,
compared with adverse movements in 4Q16 of $0.3bn.
|
|
|
●
|
costs
to achieve of $0.8bn in 1Q17, compared with $1.1bn in 4Q16;
and
|
|
|
●
|
regulatory
provisions in GPB in 4Q16 of $0.4bn.
|
|
||
|
|
|
HSBC
Holdings plc Earnings Release 1Q17
|
9
|
|
|||||||||||||||
|
|
|
|||||||||||||
Movement
in adjusted profit before tax compared with 4Q16
|
|||||||||||||||
|
1Q17
|
|
4Q16
|
|
1Q17
vs. 4Q16
|
||||||||||
|
$m
|
|
$m
|
|
$m
|
|
%
|
||||||||
Revenue
|
12,843
|
|
10,925
|
|
1,918
|
|
18
|
||||||||
LICs
|
(236
|
)
|
(456
|
)
|
220
|
|
48
|
||||||||
Operating
expenses
|
(7,202
|
)
|
(8,375
|
)
|
1,173
|
|
14
|
||||||||
Share
of profit from associates and JVs
|
532
|
|
494
|
|
38
|
|
8
|
||||||||
Profit
before tax
|
5,937
|
|
2,588
|
|
3,349
|
|
129
|
|
|
●
|
In
RBWM, revenue increased by $0.4bn, mainly as a result of favourable
market impacts in life insurance manufacturing and higher revenue
from investment distribution. In addition, revenue in Retail
Banking increased, notably from current accounts, savings and
deposits, reflecting higher customer deposits and balance growth in
Asia.
|
|
|
●
|
In
GB&M revenue increased by $0.3bn, primarily driven by Global
Markets as we captured increased client flows in Rates and Credit.
This was partly offset by a lower revenue from Global Banking, as
4Q16 included restructuring gains which did not recur.
|
|
|
●
|
In
Corporate Centre, revenue increased by $1.0bn, notably as a result
of adverse fair value movements of $32m relating to the hedging of
our long-term debt in 1Q17 (4Q16: $741m).
|
|
|
●
|
favourable
currency translation differences of $9.2bn; and
|
|
|
●
|
a
$6.4bn reduction in corporate overdraft balances in the UK relating
to a small number of customers (with a corresponding decrease in
customer accounts). These balances were previously managed on a net
basis with their corresponding current accounts.
|
|
|
●
|
favourable
currency translation of $11.3bn; and
|
|
|
●
|
a
$6.4bn reduction in corporate current account balances, in line
with the decrease in corporate overdrafts.
|
|
|||
|
|
|
|
10
|
HSBC
Holdings plc Earnings Release 1Q17
|
|
||||||||||
|
|
|||||||||
Net
interest margin
|
||||||||||
|
1Q17
|
|
1Q16
|
|
2016
|
|
||||
|
$m
|
|
$m
|
|
$m
|
|
||||
Net
interest income
|
6,787
|
|
7,913
|
|
29,813
|
|
||||
Average
interest earning assets
|
1,683,136
|
|
1,716,128
|
|
1,723,702
|
|
||||
|
%
|
|
%
|
|
%
|
|
||||
Gross
yield
|
2.33
|
|
2.68
|
|
2.46
|
|
||||
Less:
cost of funds
|
(0.83
|
)
|
(0.99
|
)
|
(0.87
|
)
|
||||
Net
interest spread
|
1.50
|
|
1.69
|
|
1.59
|
|
||||
Net
interest margin
|
1.64
|
|
1.85
|
|
1.73
|
|
|
|
●
|
Income
statement comparisons, unless stated otherwise, are between the
quarter ended 31 March 2017 and the quarter ended 31 March 2016.
Balance sheet comparisons, unless otherwise stated, are between
balances at 31 March 2017 and the corresponding balances
at 31 December 2016.
|
|
|
●
|
The
financial information on which this Earnings Release is based,
and the data set out in the appendix to this statement, are
unaudited and have been prepared in accordance with HSBC's
significant accounting policies as described on pages 194 to
203 of our Annual Report and Accounts 2016.
|
|
|
●
|
The
Board has adopted a policy of paying quarterly interim dividends on
ordinary shares. Under this policy, it is intended to have a
pattern of three equal interim dividends with a variable fourth
interim dividend. Dividends are declared in US dollars and, at the
election of the shareholder, paid in cash in one of, or in a
combination of, US dollars, sterling and Hong Kong dollars or,
subject to the Board's determination that a scrip dividend is to be
offered in respect of that dividend, may be satisfied in whole or
in part by the issue of new shares in lieu of a cash dividend.
Details of the first interim dividend for 2017 and the series A
dollar preference share dividend are set out at the end of this
release.
|
|
|||
|
|
||
Footnotes
to financial performance
commentary
|
|||
1
|
Net
operating income before loan impairment charges and other credit
risk provisions, also referred to as revenue.
|
|
|
2
|
'Other
personal lending' includes personal non-residential closed-end
loans and personal overdrafts.
|
|
|
3
|
'Investment
distribution' includes Investments, which comprises mutual funds
(HSBC manufactured and third party), structured products and
securities trading, and Wealth Insurance distribution, consisting
of HSBC manufactured and third-party life, pension and investment
insurance products.
|
|
|
4
|
'Other'
mainly includes the distribution and manufacturing (where
applicable) of retail and credit protection insurance.
|
|
|
5
|
Adjusted
RoRWA is calculated using adjusted annualised profit before tax and
adjusted average risk-weighted assets.
|
|
|
6
|
'Markets
products, Insurance and Investments and Other' includes revenue
from Foreign Exchange, insurance manufacturing and distribution,
interest rate management and Global Banking products.
|
|
|
7
|
In
1Q17, credit and funding valuation adjustments included an adverse
fair value movement of $119m on the widening of credit spreads on
structured liabilities (1Q16: favourable fair value movement of
$233m; 4Q16: adverse fair value movement of $156m).
|
|
|
8
|
'Other'
in GB&M includes net interest earned on free capital held in
the global business not assigned to products, allocated funding
costs and gains resulting from business disposals. Within the
management view of total operating income, notional tax credits are
allocated to the businesses to reflect the economic benefit
generated by certain activities which is not reflected within
operating income, such as notional credits on income earned from
tax-exempt investments where the economic benefit of the activity
is reflected in tax expense. In order to reflect the total
operating income on an IFRS basis, the offset to these tax credits
is included within 'Other'.
|
|
|
9
|
Central
Treasury includes revenue relating to BSM of $845m (4Q16: $763m;
1Q16: $719m), interest expense of $331m (4Q16: $273m; 1Q16: $155m)
and adverse valuation differences on issued long-term debt and
associated swaps of $32m (4Q16: adverse movements of $742m; 1Q16:
favourable movements of $249m). Revenue relating to BSM includes
other internal allocations, including notional tax credits to
reflect the economic benefit generated by certain activities which
is not reflected within operating income, for example notional
credits on income earned from tax-exempt investments where the
economic benefit of the activity is reflected in tax expense. In
order to reflect the total operating income on an IFRS basis, the
offset to these tax credits is included in other Central
Treasury.
|
|
|
10
|
Other
miscellaneous items in Corporate Centre includes internal
allocations relating to legacy credit.
|
|
|
||
|
|
|
HSBC
Holdings plc Earnings Release 1Q17
|
11
|
|
|
●
|
changes
in general economic conditions in the markets in which we
operate, such as continuing or deepening recessions and
fluctuations in employment beyond those factored into consensus
forecasts; changes in foreign exchange rates and interest rates;
volatility in equity markets; lack of liquidity in wholesale
funding markets; illiquidity and downward price pressure in
national real estate markets; adverse changes in central
banks'policies with respect to the provision of liquidity support
to financial markets; heightened market concerns over sovereign
creditworthiness in over-indebted countries; adverse changes in the
funding status of public or private defined benefit pensions; and
consumer perception as to the continuing availability of credit and
price competition in the market segments we
serve;
|
|
|
●
|
changes
in government policy and regulation, including the monetary,
interest rate and other policies of central banks and other
regulatory authorities; initiatives to change the size,
scope of activities and interconnectedness of financial
institutions in connection with the implementation of stricter
regulation of financial institutions in key markets worldwide;
revised capital and liquidity benchmarks which could serve to
deleverage bank balance sheets and lower returns available from the
current business model and portfolio mix; imposition of levies
or taxes designed to change business mix and risk appetite;
the conduct of business of financial institutions in serving their
retail customers, corporate clients and counterparties; the
standards of market conduct; the costs, effects and outcomes
of product regulatory reviews, actions or litigation,
including any additional compliance requirements; expropriation,
nationalisation, confiscation of assets and changes in legislation
relating to foreign ownership; changes in bankruptcy
legislation in the principal markets in which we operate
and the consequences thereof; general changes in government
policy that may significantly influence investor decisions;
extraordinary government actions as a result of current market
turmoil; other unfavourable political or diplomatic
developments producing social instability or legal uncertainty
which in turn may affect demand for our products and services; and
the effects of competition in the markets where we
operate including increased competition from non-bank financial
services companies, including securities firms; and
|
|
|
●
|
factors
specific to HSBC, including our success in adequately identifying
the risks we face, such as the incidence of loan losses
or delinquency, and managing those risks (through account
management, hedging and other techniques). Effective risk
management depends on, among other things, our ability through
stress testing and other techniques to prepare for events that
cannot be captured by the statistical models we use; our success in
addressing operational, legal and regulatory, and litigation
challenges, notably compliance with the Deferred Prosecution
Agreement with US authorities; and other risks and uncertainties we
identify in the 'top and emerging risks' on pages 64 to 67 of the
Annual Report and Accounts 2016.
|
|
|
|
|
Investor
Relations
|
Media
Relations
|
UK -
Richard O'Connor
|
UK -
Heidi Ashley
|
Email:
[email protected]
|
Tel:
+44 (0) 20 7992 2045
|
|
|
Hong
Kong - Hugh Pye
|
Hong
Kong - Gareth Hewett
|
Tel:
+852 2822 4908
|
Tel:
+852 2822 4929
|
|
|||
|
|
|
|
12
|
HSBC
Holdings plc Earnings Release 1Q17
|
|
||||||
|
||||||
Summary
consolidated income statement
|
||||||
|
||||||
|
|
|
||||
|
Quarter
ended
|
|||||
|
31
Mar
|
|
31
Dec
|
|
31
Mar
|
|
|
2017
|
|
2016
|
|
2016
|
|
|
$m
|
|
$m
|
|
$m
|
|
Net
interest income
|
6,787
|
|
6,868
|
|
7,913
|
|
Net fee
income
|
3,224
|
|
2,929
|
|
3,197
|
|
Net
trading income
|
2,246
|
|
1,897
|
|
2,836
|
|
Net
income/(expense) from financial instruments designated at fair
value
|
929
|
|
(2,413
|
)
|
695
|
|
-
changes in fair value of long-term debt issued and related
derivatives
|
(60
|
)
|
(2,572
|
)
|
690
|
|
- net
income/(expense) from other financial instruments designated at
fair value
|
989
|
|
159
|
|
5
|
|
Gains
less losses from financial investments
|
338
|
|
114
|
|
192
|
|
Dividend
income
|
13
|
|
17
|
|
28
|
|
Net
insurance premium income
|
2,793
|
|
2,060
|
|
2,915
|
|
Other
operating income/(expense)
|
202
|
|
(125
|
)
|
172
|
|
Total
operating income
|
16,532
|
|
11,347
|
|
17,948
|
|
Net
insurance claims and benefits paid and movement in liabilities to
policyholders
|
(3,539
|
)
|
(2,363
|
)
|
(2,972
|
)
|
Net
operating income before loan impairment charges and other credit
risk provisions
|
12,993
|
|
8,984
|
|
14,976
|
|
Loan
impairment charges and other credit risk provisions
|
(236
|
)
|
(468
|
)
|
(1,161
|
)
|
Net
operating income
|
12,757
|
|
8,516
|
|
13,815
|
|
Total
operating expenses
|
(8,328
|
)
|
(12,459
|
)
|
(8,264
|
)
|
Operating
profit/(loss)
|
4,429
|
|
(3,943
|
)
|
5,551
|
|
Share
of profit in associates and joint ventures
|
532
|
|
498
|
|
555
|
|
Profit/(loss)
before tax
|
4,961
|
|
(3,445
|
)
|
6,106
|
|
Tax
expense
|
(1,201
|
)
|
(572
|
)
|
(1,571
|
)
|
Profit/(loss)
after tax
|
3,760
|
|
(4,017
|
)
|
4,535
|
|
Attributable
to:
|
|
|
|
|||
-
ordinary shareholders of the parent company
|
3,130
|
|
(4,440
|
)
|
3,888
|
|
-
preference shareholders of the parent company
|
22
|
|
23
|
|
22
|
|
- other
equity holders
|
313
|
|
188
|
|
391
|
|
-
non-controlling interests
|
295
|
|
212
|
|
234
|
|
Profit/(loss)
after tax
|
3,760
|
|
(4,017
|
)
|
4,535
|
|
|
$
|
|
$
|
|
$
|
|
Basic
earnings per share
|
0.16
|
|
(0.22
|
)
|
0.20
|
|
Diluted
earnings per share
|
0.16
|
|
(0.22
|
)
|
0.20
|
|
Dividend
per ordinary share (in respect of the period)
|
0.10
|
|
0.21
|
|
0.10
|
|
|
%
|
|
%
|
|
%
|
|
Return
on average ordinary shareholders' equity (annualised)
|
8.0
|
|
(10.9
|
)
|
9.0
|
|
Return
on risk-weighted assets1
|
2.3
|
|
(1.6
|
)
|
2.2
|
|
Cost
efficiency ratio
|
64.1
|
|
138.7
|
|
55.2
|
|
|
|
1
|
Return
on risk-weighted assets ('RoRWA') is calculated using annualised
profit before tax and reported average RWAs.
|
|
||
|
|
|
HSBC
Holdings plc Earnings Release 1Q17
|
13
|
|
||||
|
||||
Summary
consolidated balance sheet
|
||||
|
||||
|
|
|
||
|
At
|
|||
|
31
Mar
|
|
31
Dec
|
|
|
2017
|
|
2016
|
|
|
$m
|
|
$m
|
|
Assets
|
|
|
||
Cash
and balances at central banks
|
132,265
|
|
128,009
|
|
Trading
assets
|
294,588
|
|
235,125
|
|
Financial
assets designated at fair value
|
26,735
|
|
24,756
|
|
Derivatives
|
234,048
|
|
290,872
|
|
Loans
and advances to banks
|
87,993
|
|
88,126
|
|
Loans
and advances to customers
|
875,969
|
|
861,504
|
|
Reverse
repurchase agreements - non-trading
|
193,014
|
|
160,974
|
|
Financial
investments
|
414,022
|
|
436,797
|
|
Assets
held for sale
|
2,925
|
|
4,389
|
|
Other
assets
|
154,908
|
|
144,434
|
|
Total
assets
|
2,416,467
|
|
2,374,986
|
|
Liabilities
and Equity
|
|
|
||
Liabilities
|
|
|
||
Deposits
by banks
|
67,178
|
|
59,939
|
|
Customer
accounts
|
1,272,957
|
|
1,272,386
|
|
Repurchase
agreements - non-trading
|
118,197
|
|
88,958
|
|
Trading
liabilities
|
197,777
|
|
153,691
|
|
Financial
liabilities designated at fair value
|
91,379
|
|
86,832
|
|
Derivatives
|
226,724
|
|
279,819
|
|
Debt
securities in issue
|
66,877
|
|
65,915
|
|
Liabilities
of disposal groups held for sale
|
2,114
|
|
2,790
|
|
Liabilities
under insurance contracts
|
77,771
|
|
75,273
|
|
Other
liabilities
|
109,467
|
|
106,805
|
|
Total
liabilities
|
2,230,441
|
|
2,192,408
|
|
Equity
|
|
|
||
Total
shareholders' equity
|
178,784
|
|
175,386
|
|
Non-controlling
interests
|
7,242
|
|
7,192
|
|
Total
equity
|
186,026
|
|
182,578
|
|
Total
liabilities and equity
|
2,416,467
|
|
2,374,986
|
|
|
%
|
|
%
|
|
Ratio
of customer advances to customer accounts
|
68.8
|
|
67.7
|
|
|
|||
|
|
|
|
14
|
HSBC
Holdings plc Earnings Release 1Q17
|
|
|
|
|
|
||||||
|
||||||||||
Capital
|
|
|
|
|
||||||
|
||||||||||
|
|
|||||||||
Transitional
own funds disclosure
|
||||||||||
|
|
At
|
||||||||
|
|
31
Mar
|
|
31
Dec
|
|
|||||
|
|
2017
|
|
2016
|
|
|||||
Ref*
|
|
$m
|
|
$m
|
|
|||||
6
|
Common
equity tier 1 capital before regulatory adjustments
|
154,290
|
|
149,291
|
|
|||||
28
|
Total
regulatory adjustments to common equity tier 1
|
(31,925
|
)
|
(32,739
|
)
|
|||||
29
|
Common
equity tier 1 capital
|
122,365
|
|
116,552
|
|
|||||
36
|
Additional
tier 1 capital before regulatory adjustments
|
19,914
|
|
21,624
|
|
|||||
43
|
Total
regulatory adjustments to additional tier 1 capital
|
(107
|
)
|
(154
|
)
|
|||||
44
|
Additional
tier 1 capital
|
19,807
|
|
21,470
|
|
|||||
45
|
Tier 1
capital
|
142,172
|
|
138,022
|
|
|||||
51
|
Tier 2
capital before regulatory adjustments
|
31,587
|
|
34,750
|
|
|||||
57
|
Total
regulatory adjustments to tier 2 capital
|
(465
|
)
|
(414
|
)
|
|||||
58
|
Tier 2
capital
|
31,122
|
|
34,336
|
|
|||||
59
|
Total
capital
|
173,294
|
|
172,358
|
|
|||||
60
|
Total
risk-weighted assets
|
857,865
|
|
857,181
|
|
|||||
|
Capital
ratios
|
%
|
|
%
|
|
|||||
61
|
Common
equity tier 1 ratio
|
14.3
|
|
13.6
|
|
|||||
62
|
Tier 1
ratio
|
16.6
|
|
16.1
|
|
|||||
63
|
Total
capital ratio
|
20.2
|
|
20.1
|
|
|
|
*
|
The
references identify the lines prescribed in the EBA
template.
|
|
|
●
|
$2.5bn
of capital generation through profits, net of dividends and
scrip;
|
|
|
●
|
favourable
foreign currency translation differences of
$1.6bn; and
|
|
|
●
|
regulatory
netting of $1.5bn.
|
|
|
●
|
the
share buy-back of $1.0bn.
|
|
|
Minimum
requirement for own funds
and
eligible liabilities
|
|
|
Risk-weighted
assets
|
|
|
●
|
$7.8bn
through the continued reduction in legacy credit and US run-off
portfolios; and
|
|
|
●
|
$5.5bn
as a result of reduced exposures, refined calculations and process
improvements.
|
|
|
●
|
increased
corporate lending in CMB, increasing RWAs by $3.4bn in Asia and
Europe.
|
|
|
●
|
movements
in market parameters reducing market risk RWAs by
$2.1bn.
|
|
|
●
|
netting
of current accounts, increasing RWAs by $2.8bn; and
|
|
|
●
|
non-recourse
purchased receivables, increasing RWAs by $1.8bn.
|
|
||
|
|
|
HSBC
Holdings plc Earnings Release 1Q17
|
15
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
Overview
of RWAs
|
|||||||||||||||||
|
|
a
|
b
|
c
|
|||||||||||||
|
|
31
Mar
|
|
31
Dec
|
|
31
Mar
|
|
||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
||||||||||
|
|
RWA
|
|
RWA
|
|
Capital
requirement1
|
|
||||||||||
|
|
$bn
|
|
$bn
|
|
$bn
|
|
||||||||||
1
|
Credit
risk (excluding Counterparty credit risk)
|
592.8
|
|
589.1
|
|
47.4
|
|
||||||||||
2
|
Standardised
approach
|
122.5
|
|
120.6
|
|
9.8
|
|
||||||||||
3
|
Foundation
IRB (FIRB) approach2
|
26.0
|
|
25.9
|
|
2.1
|
|
||||||||||
4
|
Advanced
IRB (AIRB) approach
|
444.3
|
|
442.6
|
|
35.5
|
|
||||||||||
6
|
Counterparty
credit risk
|
61.2
|
|
61.8
|
|
4.9
|
|
||||||||||
7
|
Mark to
market
|
36.3
|
|
35.8
|
|
2.9
|
|
||||||||||
10
|
Internal
model method (IMM)
|
9.9
|
|
10.9
|
|
0.8
|
|
||||||||||
11
|
Risk
exposure amount for contributions to the default fund of a
CCP
|
0.7
|
|
0.7
|
|
0.1
|
|
||||||||||
12
|
CVA
|
14.3
|
|
14.4
|
|
1.1
|
|
||||||||||
13
|
Settlement
risk
|
0.2
|
|
0.2
|
|
-
|
|
||||||||||
14
|
Securitisation
exposures in the banking book (after the cap)
|
21.3
|
|
21.8
|
|
1.7
|
|
||||||||||
15
|
IRB
approach
|
18.5
|
|
19.1
|
|
1.5
|
|
||||||||||
16
|
IRB
supervisory formula approach (SFA)
|
0.2
|
|
0.2
|
|
-
|
|
||||||||||
17
|
Internal
assessment approach (IAA)
|
1.5
|
|
1.6
|
|
0.1
|
|
||||||||||
18
|
Standardised
approach
|
1.1
|
|
0.9
|
|
0.1
|
|
||||||||||
19
|
Market
risk
|
38.9
|
|
41.5
|
|
3.1
|
|
||||||||||
20
|
Standardised
approach
|
4.8
|
|
5.0
|
|
0.4
|
|
||||||||||
21
|
Internal
models approach (IMA)
|
34.1
|
|
36.5
|
|
2.7
|
|
||||||||||
23
|
Operational
risk
|
98.0
|
|
98.0
|
|
7.8
|
|
||||||||||
25
|
Standardised
approach
|
98.0
|
|
98.0
|
|
7.8
|
|
||||||||||
27
|
Amounts
below the thresholds for deduction (subject to 250% risk
weight)
|
45.5
|
|
44.8
|
|
3.7
|
|
||||||||||
28
|
Floor
adjustment
|
-
|
|
-
|
|
-
|
|
||||||||||
29
|
Total
|
857.9
|
|
857.2
|
|
68.6
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
'Capital
requirement' here and in all tables where the term is used,
represents the Pillar 1 capital charge at 8% of the RWAs.
|
|
|
2
|
Internal
ratings based.
|
|
||||||||||||||||||||||||
|
|
|||||||||||||||||||||||
RWAs by
global business
|
||||||||||||||||||||||||
|
RBWM
|
|
CMB
|
|
GB&M
|
|
GPB
|
|
Corporate
Centre
|
|
Total
|
|
||||||||||||
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
||||||||||||
Credit
risk
|
86.1
|
|
256.3
|
|
171.6
|
|
12.4
|
|
133.2
|
|
659.6
|
|
||||||||||||
Counterparty
credit risk
|
-
|
|
-
|
|
58.5
|
|
0.2
|
|
2.7
|
|
61.4
|
|
||||||||||||
Market
risk
|
-
|
|
-
|
|
34.9
|
|
-
|
|
4.0
|
|
38.9
|
|
||||||||||||
Operational
risk
|
27.4
|
|
24.3
|
|
31.0
|
|
2.8
|
|
12.5
|
|
98.0
|
|
||||||||||||
At 31
Mar 2017
|
113.5
|
|
280.6
|
|
296.0
|
|
15.4
|
|
152.4
|
|
857.9
|
|
|
||||||||||||||||||||||||
|
|
|||||||||||||||||||||||
RWAs by
geographical region
|
||||||||||||||||||||||||
|
Europe
|
|
Asia
|
|
MENA
|
|
NorthAmerica
|
|
LatinAmerica
|
|
Total
|
|
||||||||||||
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
||||||||||||
Credit
risk
|
212.8
|
|
265.8
|
|
48.1
|
|
108.4
|
|
24.5
|
|
659.6
|
|
||||||||||||
Counterparty
credit risk
|
31.0
|
|
15.0
|
|
1.2
|
|
12.6
|
|
1.6
|
|
61.4
|
|
||||||||||||
Market
risk1
|
26.8
|
|
18.6
|
|
2.1
|
|
6.8
|
|
0.6
|
|
38.9
|
|
||||||||||||
Operational
risk
|
30.9
|
|
36.6
|
|
7.5
|
|
12.8
|
|
10.2
|
|
98.0
|
|
||||||||||||
At 31
Mar 2017
|
301.5
|
|
336.0
|
|
58.9
|
|
140.6
|
|
36.9
|
|
857.9
|
|
|
|
1
|
RWAs
are non-additive across geographical regions due to market risk
diversification effects within the Group.
|
|
|||
|
|
||
16
|
HSBC
Holdings plc Earnings Release 1Q17
|
|
||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||
RWA
movement by global businesses by key driver
|
||||||||||||||||||||||||||
|
Credit
risk, counterparty credit risk and operational risk
|
|
|
|||||||||||||||||||||||
|
RBWM
|
|
CMB
|
|
GB&M
|
|
GPB
|
|
Corporate
Centre
|
|
Market
risk
|
|
Total
RWAs
|
|
||||||||||||
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
||||||||||||
RWAs at
1 Jan 2017
|
115.1
|
|
275.9
|
|
261.9
|
|
15.3
|
|
147.5
|
|
41.5
|
|
857.2
|
|
||||||||||||
RWA
initiatives
|
(0.4
|
)
|
(2.0
|
)
|
(2.5
|
)
|
(0.1
|
)
|
(7.7
|
)
|
(0.5
|
)
|
(13.2
|
)
|
||||||||||||
Asset
size
|
0.8
|
|
2.4
|
|
(0.6
|
)
|
0.1
|
|
1.3
|
|
(2.1
|
)
|
1.9
|
|
||||||||||||
Asset
quality
|
0.1
|
|
0.5
|
|
(1.8
|
)
|
0.1
|
|
0.6
|
|
-
|
|
(0.5
|
)
|
||||||||||||
Model
updates
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
||||||||||||
-
portfolios moving onto IRB approach
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
||||||||||||
-
new/updated models
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
||||||||||||
Methodology and
policy
|
(3.1
|
)
|
1.3
|
|
1.9
|
|
(0.2
|
)
|
5.8
|
|
-
|
|
5.7
|
|
||||||||||||
-
internal updates
|
(3.1
|
)
|
1.3
|
|
2.0
|
|
(0.2
|
)
|
5.8
|
|
-
|
|
5.8
|
|
||||||||||||
-
external updates - regulatory
|
-
|
|
-
|
|
(0.1
|
)
|
-
|
|
-
|
|
-
|
|
(0.1
|
)
|
||||||||||||
Acquisitions
and disposals
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
||||||||||||
Foreign
exchange movements
|
1.0
|
|
2.5
|
|
2.2
|
|
0.2
|
|
0.9
|
|
-
|
|
6.8
|
|
||||||||||||
Total
RWA movement
|
(1.6
|
)
|
4.7
|
|
(0.8
|
)
|
0.1
|
|
0.9
|
|
(2.6
|
)
|
0.7
|
|
||||||||||||
RWAs at
31 Mar 2017
|
113.5
|
|
280.6
|
|
261.1
|
|
15.4
|
|
148.4
|
|
38.9
|
|
857.9
|
|
|
||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||
RWA
movement by geographical region by key driver
|
||||||||||||||||||||||||||
|
Credit
risk, counterparty credit risk and operational risk
|
|
|
|||||||||||||||||||||||
|
Europe
|
|
Asia
|
|
MENA
|
|
NorthAmerica
|
|
LatinAmerica
|
|
Market
risk
|
|
Total
RWAs
|
|
||||||||||||
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
||||||||||||
RWAs at
1 Jan 2017
|
267.6
|
|
312.7
|
|
57.7
|
|
143.9
|
|
33.8
|
|
41.5
|
|
857.2
|
|
||||||||||||
RWA
initiatives
|
(1.6
|
)
|
(2.4
|
)
|
(0.4
|
)
|
(8.3
|
)
|
-
|
|
(0.5
|
)
|
(13.2
|
)
|
||||||||||||
Asset
size
|
3.2
|
|
3.0
|
|
(0.3
|
)
|
(2.0
|
)
|
0.1
|
|
(2.1
|
)
|
1.9
|
|
||||||||||||
Asset
quality
|
(0.4
|
)
|
-
|
|
-
|
|
(0.6
|
)
|
0.5
|
|
-
|
|
(0.5
|
)
|
||||||||||||
Model
updates
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
||||||||||||
-
portfolios moving onto IRB approach
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
||||||||||||
-
new/updated models
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
||||||||||||
Methodology and
policy
|
3.7
|
|
1.5
|
|
(0.1
|
)
|
0.6
|
|
-
|
|
-
|
|
5.7
|
|
||||||||||||
-
internal updates
|
3.7
|
|
1.5
|
|
-
|
|
0.6
|
|
-
|
|
-
|
|
5.8
|
|
||||||||||||
-
external updates - regulatory
|
-
|
|
-
|
|
(0.1
|
)
|
-
|
|
-
|
|
-
|
|
(0.1
|
)
|
||||||||||||
Acquisitions
and disposals
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
||||||||||||
Foreign
exchange movements
|
2.2
|
|
2.6
|
|
(0.1
|
)
|
0.2
|
|
1.9
|
|
-
|
|
6.8
|
|
||||||||||||
Total
RWA movement
|
7.1
|
|
4.7
|
|
(0.9
|
)
|
(10.1
|
)
|
2.5
|
|
(2.6
|
)
|
0.7
|
|
||||||||||||
RWAs at
31 Mar 2017
|
274.7
|
|
317.4
|
|
56.8
|
|
133.8
|
|
36.3
|
|
38.9
|
|
857.9
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|||||||||||||
RWA
flow statements of credit risk exposures under the IRB
approach1
|
|||||||||||||||||
|
|
|
a
|
b
|
|||||||||||||
|
|
|
RWA
|
|
Capital
requirement
|
|
|||||||||||
|
|
|
$bn
|
|
$bn
|
|
|||||||||||
|
1
|
RWAs at
1 Jan 2017
|
468.5
|
|
37.5
|
|
|||||||||||
|
2
|
Asset
size
|
2.0
|
|
0.2
|
|
|||||||||||
|
3
|
Asset
quality
|
-
|
|
-
|
|
|||||||||||
|
4
|
Model
updates
|
-
|
|
-
|
|
|||||||||||
|
5
|
Methodology
and policy
|
1.2
|
|
0.1
|
|
|||||||||||
|
6
|
Acquisitions
and disposals
|
(5.7
|
)
|
(0.5
|
)
|
|||||||||||
|
7
|
Foreign
exchange movements
|
4.3
|
|
0.3
|
|
|||||||||||
|
8
|
Other
|
-
|
|
-
|
|
|||||||||||
|
9
|
RWAs at
31 Mar 2017
|
470.3
|
|
37.6
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
1
|
This
table includes RWA initiatives of $9.7bn allocated across the RWA
flow layers to which they relate.
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
HSBC
Holdings plc Earnings Release 1Q17
|
17
|
|
|||||||||||||||||
|
|||||||||||||||||
|
|
|
|||||||||||||||
RWA
flow statements of counterparty credit risk exposures under the
IMM1
|
|
|
a
|
|
b
|
|
|
RWA
|
|
Capital
requirement
|
|
|
$bn
|
|
$bn
|
1
|
RWAs at
1 Jan 2017
|
14.4
|
|
1.2
|
2
|
Asset
size
|
(0.4
|
)
|
-
|
3
|
Credit
quality of counterparties
|
(0.2
|
)
|
-
|
4
|
Model
updates (IMM only)
|
1.0
|
|
-
|
5
|
Methodology
and policy (IMM only)
|
(0.5
|
)
|
-
|
6
|
Acquisitions
and disposals
|
-
|
|
-
|
7
|
Foreign
exchange movements
|
-
|
|
-
|
8
|
Other
|
-
|
|
-
|
9
|
RWAs at
31 Mar 2017
|
14.3
|
|
1.2
|
|
|
||||||||||||||||
1
|
This
table includes an increase in RWAs of $0.6bn associated with RWA
initiatives.
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
RWA
flow statements of market risk exposures under the IMA1
|
||||||||||||||||||||||||||||||||||||||
|
|
|
a
|
b
|
c
|
d
|
e
|
f
|
g
|
|||||||||||||||||||||||||||||
|
|
|
VaR
|
|
StressedVaR
|
|
IRC
|
|
CRM
|
|
Other
|
|
Total
RWA
|
|
Capital
requirement
|
|
||||||||||||||||||||||
|
|
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
||||||||||||||||||||||
|
1
|
|
RWAs at
1 Jan 2017
|
8.7
|
|
15.8
|
|
9.5
|
|
-
|
|
2.5
|
|
36.5
|
|
2.9
|
|
|||||||||||||||||||||
|
2
|
|
Movement
in risk levels
|
0.8
|
|
(3.5
|
)
|
0.6
|
|
-
|
|
(0.3
|
)
|
(2.4
|
)
|
(0.2
|
)
|
|||||||||||||||||||||
|
3
|
|
Model
updates/changes
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|||||||||||||||||||||
|
4
|
|
Methodology
and policy
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|||||||||||||||||||||
|
5
|
|
Acquisitions
and disposals
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|||||||||||||||||||||
|
6
|
|
Foreign
exchange movements
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|||||||||||||||||||||
|
7
|
|
Other
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|||||||||||||||||||||
|
8
|
|
RWAs at
31 Mar 2017
|
9.5
|
|
12.3
|
|
10.1
|
|
-
|
|
2.2
|
|
34.1
|
|
2.7
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
1
|
This
table includes RWA initiatives of $0.2bn allocated across the RWA
flow layers to which they relate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|||||||||
Leverage
|
|||||||||
|
|||||||||
|
|
||||||||
Leverage
ratio
|
|||||||||
|
|
At
|
|||||||
|
|
31
Mar
|
|
31
Dec
|
|
||||
|
|
2017
|
|
2016
|
|
||||
Ref*
|
|
$bn
|
|
$bn
|
|
||||
20
|
Tier 1
capital (end point)
|
133.7
|
|
127.3
|
|
||||
21
|
Total
leverage ratio exposure
|
2,449.8
|
|
2,354.4
|
|
||||
|
|
%
|
|
%
|
|
||||
22
|
Leverage
ratio
|
5.5
|
|
5.4
|
|
||||
EU-23
|
Choice
on transitional arrangements for the definition of the capital
measure
|
Fully
phased in
|
|
Fully
phased in
|
|
||||
|
UK
leverage ratio exposure - quarterly average
|
2,313.0
|
|
|
|||||
|
|
%
|
|
%
|
|
||||
|
UK
leverage ratio - quarterly average
|
5.7
|
|
|
|||||
|
UK
leverage ratio - quarter end
|
5.8
|
|
5.7
|
|
|
|
*
|
The
references identify the lines prescribed in the EBA
template.
|
|
|||
|
|
|
|
18
|
HSBC
Holdings plc Earnings Release 1Q17
|
|
|
Summary
information - global businesses
|
|
|||||||||||||||||||||||||
|
|
||||||||||||||||||||||||
HSBC
adjusted profit before tax
|
|||||||||||||||||||||||||
|
Quarter
ended 31 Mar 2017
|
||||||||||||||||||||||||
|
Retail
Bankingand WealthManagement
|
|
CommercialBanking
|
|
GlobalBanking
andMarkets
|
|
GlobalPrivateBanking
|
|
Corporate
Centre
|
|
Total
|
|
|||||||||||||
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
|||||||||||||
Net
interest income
|
3,336
|
|
2,117
|
|
1,063
|
|
189
|
|
82
|
|
6,787
|
|
|||||||||||||
Net fee
income
|
1,224
|
|
908
|
|
912
|
|
176
|
|
4
|
|
3,224
|
|
|||||||||||||
Net
trading income1
|
139
|
|
125
|
|
1,864
|
|
49
|
|
75
|
|
2,252
|
|
|||||||||||||
Other
income2
|
310
|
|
41
|
|
47
|
|
1
|
|
181
|
|
580
|
|
|||||||||||||
Net
operating income before loan impairment charges and other
credit risk provisions
|
5,009
|
|
3,191
|
|
3,886
|
|
415
|
|
342
|
|
12,843
|
|
|||||||||||||
Loan
impairment (charges)/recoveries and other credit risk
provisions
|
(296
|
)
|
3
|
|
20
|
|
(1
|
)
|
38
|
|
(236
|
)
|
|||||||||||||
Net
operating income
|
4,713
|
|
3,194
|
|
3,906
|
|
414
|
|
380
|
|
12,607
|
|
|||||||||||||
Total
operating expenses
|
(2,941
|
)
|
(1,399
|
)
|
(2,197
|
)
|
(344
|
)
|
(321
|
)
|
(7,202
|
)
|
|||||||||||||
Operating
profit
|
1,772
|
|
1,795
|
|
1,709
|
|
70
|
|
59
|
|
5,405
|
|
|||||||||||||
Share
of profit in associates and joint ventures
|
9
|
|
-
|
|
-
|
|
-
|
|
523
|
|
532
|
|
|||||||||||||
Adjusted
profit before tax
|
1,781
|
|
1,795
|
|
1,709
|
|
70
|
|
582
|
|
5,937
|
|
|||||||||||||
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
|||||||||||||
Share
of HSBC's adjusted profit before tax
|
30.0
|
|
30.2
|
|
28.8
|
|
1.2
|
|
9.8
|
|
100.0
|
|
|||||||||||||
Adjusted
cost efficiency ratio
|
58.7
|
|
43.8
|
|
56.5
|
|
82.9
|
|
93.9
|
|
56.1
|
|
|
|||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
Quarter
ended 31 Dec 2016
|
||||||||||||||||||||||||
Net
interest income
|
3,227
|
|
2,097
|
|
1,121
|
|
199
|
|
176
|
|
6,820
|
|
|||||||||||||
Net fee
income
|
1,149
|
|
843
|
|
724
|
|
171
|
|
30
|
|
2,917
|
|
|||||||||||||
Net
trading income1
|
121
|
|
78
|
|
1,589
|
|
37
|
|
430
|
|
2,255
|
|
|||||||||||||
Other
income/(expense)2
|
66
|
|
6
|
|
140
|
|
(10
|
)
|
(1,269
|
)
|
(1,067
|
)
|
|||||||||||||
Net
operating income/(expense) before loan impairment charges and other
credit risk provisions
|
4,563
|
|
3,024
|
|
3,574
|
|
397
|
|
(633
|
)
|
10,925
|
|
|||||||||||||
Loan
impairment (charges)/recoveries and other credit risk
provisions
|
(252
|
)
|
(194
|
)
|
(12
|
)
|
(9
|
)
|
11
|
|
(456
|
)
|
|||||||||||||
Net
operating income/(expense)
|
4,311
|
|
2,830
|
|
3,562
|
|
388
|
|
(622
|
)
|
10,469
|
|
|||||||||||||
Total
operating expenses
|
(3,173
|
)
|
(1,441
|
)
|
(2,243
|
)
|
(364
|
)
|
(1,154
|
)
|
(8,375
|
)
|
|||||||||||||
Operating
profit/(loss)
|
1,138
|
|
1,389
|
|
1,319
|
|
24
|
|
(1,776
|
)
|
2,094
|
|
|||||||||||||
Share
of profit in associates and joint ventures
|
2
|
|
-
|
|
-
|
|
-
|
|
492
|
|
494
|
|
|||||||||||||
Adjusted
profit/(loss) before tax
|
1,140
|
|
1,389
|
|
1,319
|
|
24
|
|
(1,284
|
)
|
2,588
|
|
|||||||||||||
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
|||||||||||||
Share
of HSBC's adjusted profit before tax
|
44.0
|
|
53.7
|
|
51.0
|
|
0.9
|
|
(49.6
|
)
|
100.0
|
|
|||||||||||||
Adjusted
cost efficiency ratio
|
69.5
|
|
47.7
|
|
62.8
|
|
91.7
|
|
(182.3
|
)
|
76.7
|
|
|
|||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||
|
Quarter
ended 31 Mar 2016
|
||||||||||||||||||||||||
Net
interest income
|
3,123
|
|
2,103
|
|
1,148
|
|
204
|
|
464
|
|
7,042
|
|
|||||||||||||
Net fee
income/(expense)
|
1,120
|
|
888
|
|
782
|
|
201
|
|
(15
|
)
|
2,976
|
|
|||||||||||||
Net
trading income1
|
112
|
|
108
|
|
1,557
|
|
48
|
|
825
|
|
2,650
|
|
|||||||||||||
Other
income/(expense)2
|
2
|
|
45
|
|
53
|
|
(1
|
)
|
(188
|
)
|
(89
|
)
|
|||||||||||||
Net
operating income before loan impairment charges and other credit
risk provisions
|
4,357
|
|
3,144
|
|
3,540
|
|
452
|
|
1,086
|
|
12,579
|
|
|||||||||||||
Loan
impairment charges and other credit risk provisions
|
(250
|
)
|
(258
|
)
|
(178
|
)
|
-
|
|
(114
|
)
|
(800
|
)
|
|||||||||||||
Net
operating income
|
4,107
|
|
2,886
|
|
3,362
|
|
452
|
|
972
|
|
11,779
|
|
|||||||||||||
Total
operating expenses
|
(2,898
|
)
|
(1,399
|
)
|
(2,100
|
)
|
(367
|
)
|
(252
|
)
|
(7,016
|
)
|
|||||||||||||
Operating
profit
|
1,209
|
|
1,487
|
|
1,262
|
|
85
|
|
720
|
|
4,763
|
|
|||||||||||||
Share
of profit in associates and joint ventures
|
7
|
|
-
|
|
-
|
|
-
|
|
526
|
|
533
|
|
|||||||||||||
Adjusted
profit before tax
|
1,216
|
|
1,487
|
|
1,262
|
|
85
|
|
1,246
|
|
5,296
|
|
|||||||||||||
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
|||||||||||||
Share
of HSBC's adjusted profit before tax
|
23.0
|
|
28.1
|
|
23.8
|
|
1.6
|
|
23.5
|
|
100.0
|
|
|||||||||||||
Adjusted
cost efficiency ratio
|
66.5
|
|
44.5
|
|
59.3
|
|
81.2
|
|
23.2
|
|
55.8
|
|
|
|
1
|
Net
trading income includes the revenues of internally funding trading
assets, while the related costs are reported in net interest
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.
|
|
||
|
|
|
HSBC
Holdings plc Earnings Release 1Q17
|
19
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
||||||||||
Global
Private Banking - reported client assets1
|
||||||||||||||
|
|
Quarter
ended
|
||||||||||||
|
|
31
Mar
|
|
31
Dec
|
|
31
Mar
|
|
|||||||
|
|
2017
|
|
2016
|
|
2016
|
|
|||||||
|
|
$bn
|
|
$bn
|
|
$bn
|
|
|||||||
|
Opening
balance
|
298
|
|
315
|
|
349
|
|
|||||||
|
Net new
money
|
1
|
|
(7
|
)
|
(5
|
)
|
|||||||
|
- of
which: areas targeted for growth
|
5
|
|
(3
|
)
|
4
|
|
|||||||
|
Value
change
|
7
|
|
(1
|
)
|
(6
|
)
|
|||||||
|
Disposals
|
(7
|
)
|
(2
|
)
|
-
|
|
|||||||
|
Exchange
and other
|
7
|
|
(7
|
)
|
3
|
|
|||||||
|
Closing
balance
|
306
|
|
298
|
|
341
|
|
|||||||
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
||||||||||
Global
Private Banking - reported client assets by geography1
|
||||||||||||||
|
|
Quarter
ended
|
||||||||||||
|
|
31
Mar
|
|
31
Dec
|
|
31
Mar
|
|
|||||||
|
|
2017
|
|
2016
|
|
2016
|
|
|||||||
|
|
$bn
|
|
$bn
|
|
$bn
|
|
|||||||
|
Europe
|
153
|
|
147
|
|
162
|
|
|||||||
|
Asia
|
111
|
|
108
|
|
108
|
|
|||||||
|
North
America
|
42
|
|
40
|
|
62
|
|
|||||||
|
Latin
America
|
-
|
|
3
|
|
8
|
|
|||||||
|
Middle
East2
|
-
|
|
-
|
|
1
|
|
|||||||
|
Closing
balance
|
306
|
|
298
|
|
341
|
|
|
|
1
|
Client
assets are translated at the rates of exchange applicable for their
respective period-ends, with the effects of currency translation
reported separately. The main components of client assets are funds
under management, which are not reported on the Group's balance
sheet, and customer deposits, which are reported on the Group's
balance sheet.
|
|
|
2
|
'Middle
East' is an offshore business, therefore client assets are booked
across to various regions, primarily in Europe.
|
|
|||
|
|
|
|
20
|
HSBC
Holdings plc Earnings Release 1Q17
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||
Summary
information - geographical regions
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||
HSBC
reported profit/(loss) before tax
|
|
|
||||||||||||||||||||||||||||
|
Quarter
ended 31 Mar 2017
|
|
|
|||||||||||||||||||||||||||
|
Europe3
|
|
Asia
|
|
MENA3
|
|
North
America
|
|
LatinAmerica
|
|
Intra-HSBCitems
|
|
Total
|
|
|
|
||||||||||||||
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
|
|
||||||||||||||
Net
interest income
|
1,704
|
|
3,332
|
|
407
|
|
894
|
|
488
|
|
(38
|
)
|
6,787
|
|
|
|
||||||||||||||
Net fee
income
|
1,043
|
|
1,406
|
|
158
|
|
494
|
|
123
|
|
-
|
|
3,224
|
|
|
|
||||||||||||||
Net
trading income1
|
1,044
|
|
904
|
|
83
|
|
114
|
|
63
|
|
38
|
|
2,246
|
|
|
|
||||||||||||||
Other
income2
|
422
|
|
898
|
|
5
|
|
274
|
|
61
|
|
(924
|
)
|
736
|
|
|
|
||||||||||||||
Net
operating income before loan impairment charges and other credit
risk provisions
|
4,213
|
|
6,540
|
|
653
|
|
1,776
|
|
735
|
|
(924
|
)
|
12,993
|
|
|
|
||||||||||||||
Loan
impairment (charges)/recoveries and other credit
risk provisions
|
5
|
|
(167
|
)
|
(57
|
)
|
106
|
|
(123
|
)
|
-
|
|
(236
|
)
|
|
|
||||||||||||||
Net
operating income
|
4,218
|
|
6,373
|
|
596
|
|
1,882
|
|
612
|
|
(924
|
)
|
12,757
|
|
|
|
||||||||||||||
Total
operating expenses
|
(4,428
|
)
|
(2,694
|
)
|
(322
|
)
|
(1,310
|
)
|
(498
|
)
|
924
|
|
(8,328
|
)
|
|
|
||||||||||||||
Operating
profit/(loss)
|
(210
|
)
|
3,679
|
|
274
|
|
572
|
|
114
|
|
-
|
|
4,429
|
|
|
|
||||||||||||||
Share
of profit in associates and joint ventures
|
4
|
|
415
|
|
113
|
|
-
|
|
-
|
|
-
|
|
532
|
|
|
|
||||||||||||||
Profit/(loss)
before tax
|
(206
|
)
|
4,094
|
|
387
|
|
572
|
|
114
|
|
-
|
|
4,961
|
|
|
|
||||||||||||||
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
|
%
|
|
|
|
|||||||||||||||
Share
of HSBC's profit before tax
|
(4.2
|
)
|
82.6
|
|
7.8
|
|
11.5
|
|
2.3
|
|
|
100.0
|
|
|
|
|||||||||||||||
Cost
efficiency ratio
|
105.1
|
|
41.2
|
|
49.3
|
|
73.8
|
|
67.8
|
|
|
64.1
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Quarter
ended 31 Dec 2016
|
|
|
|||||||||||||||||||||||||||
Net
interest income
|
1,800
|
|
3,196
|
|
426
|
|
965
|
|
507
|
|
(26
|
)
|
6,868
|
|
|
|
||||||||||||||
Net fee
income
|
962
|
|
1,240
|
|
161
|
|
450
|
|
116
|
|
-
|
|
2,929
|
|
|
|
||||||||||||||
Net
trading income1
|
926
|
|
650
|
|
81
|
|
132
|
|
82
|
|
26
|
|
1,897
|
|
|
|
||||||||||||||
Other
income/(expense)2
|
(2,041
|
)
|
482
|
|
(36
|
)
|
(14
|
)
|
21
|
|
(1,122
|
)
|
(2,710
|
)
|
|
|
||||||||||||||
Net
operating income before loan impairment charges and other credit
risk provisions
|
1,647
|
|
5,568
|
|
632
|
|
1,533
|
|
726
|
|
(1,122
|
)
|
8,984
|
|
|
|
||||||||||||||
Loan
impairment charges and other credit
risk provisions
|
(60
|
)
|
(125
|
)
|
(133
|
)
|
(27
|
)
|
(123
|
)
|
-
|
|
(468
|
)
|
|
|
||||||||||||||
Net
operating income
|
1,587
|
|
5,443
|
|
499
|
|
1,506
|
|
603
|
|
(1,122
|
)
|
8,516
|
|
|
|
||||||||||||||
Total
operating expenses
|
(8,333
|
)
|
(2,898
|
)
|
(377
|
)
|
(1,440
|
)
|
(533
|
)
|
1,122
|
|
(12,459
|
)
|
|
|
||||||||||||||
Operating
profit/(loss)
|
(6,746
|
)
|
2,545
|
|
122
|
|
66
|
|
70
|
|
-
|
|
(3,943
|
)
|
|
|
||||||||||||||
Share
of profit in associates and joint ventures
|
5
|
|
417
|
|
73
|
|
3
|
|
-
|
|
-
|
|
498
|
|
|
|
||||||||||||||
Profit/(loss)
before tax
|
(6,741
|
)
|
2,962
|
|
195
|
|
69
|
|
70
|
|
-
|
|
(3,445
|
)
|
|
|
||||||||||||||
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
|
%
|
|
|
|
|||||||||||||||
Share
of HSBC's loss before tax
|
195.7
|
|
(86.0
|
)
|
(5.7
|
)
|
(2.0
|
)
|
(2.0
|
)
|
|
100.0
|
|
|
|
|||||||||||||||
Cost
efficiency ratio
|
506.0
|
|
52.0
|
|
59.7
|
|
93.9
|
|
73.4
|
|
|
138.7
|
|
|
|
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Quarter
ended 31 Mar 2016
|
||||||||||||||||||||||||||||
Net
interest income
|
2,291
|
|
3,046
|
|
459
|
|
1,144
|
|
989
|
|
(16
|
)
|
7,913
|
|
|||||||||||||||
Net fee
income
|
1,047
|
|
1,266
|
|
202
|
|
451
|
|
231
|
|
-
|
|
3,197
|
|
|||||||||||||||
Net
trading income1
|
1,546
|
|
909
|
|
131
|
|
79
|
|
155
|
|
16
|
|
2,836
|
|
|||||||||||||||
Other
income2
|
748
|
|
612
|
|
43
|
|
320
|
|
44
|
|
(737
|
)
|
1,030
|
|
|||||||||||||||
Net
operating income before loan impairment charges and other credit
risk provisions
|
5,632
|
|
5,833
|
|
835
|
|
1,994
|
|
1,419
|
|
(737
|
)
|
14,976
|
|
|||||||||||||||
Loan
impairment charges and other credit
risk provisions
|
(151
|
)
|
(190
|
)
|
(46
|
)
|
(328
|
)
|
(446
|
)
|
-
|
|
(1,161
|
)
|
|||||||||||||||
Net
operating income
|
5,481
|
|
5,643
|
|
789
|
|
1,666
|
|
973
|
|
(737
|
)
|
13,815
|
|
|||||||||||||||
Total
operating expenses
|
(3,784
|
)
|
(2,543
|
)
|
(405
|
)
|
(1,302
|
)
|
(967
|
)
|
737
|
|
(8,264
|
)
|
|||||||||||||||
Operating
profit
|
1,697
|
|
3,100
|
|
384
|
|
364
|
|
6
|
|
-
|
|
5,551
|
|
|||||||||||||||
Share
of profit/(loss) in associates
and joint ventures
|
1
|
|
430
|
|
125
|
|
-
|
|
(1
|
)
|
-
|
|
555
|
|
|||||||||||||||
Profit
before tax
|
1,698
|
|
3,530
|
|
509
|
|
364
|
|
5
|
|
-
|
|
6,106
|
|
|||||||||||||||
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
|
%
|
|
||||||||||||||||
Share
of HSBC's profit before tax
|
27.8
|
|
57.8
|
|
8.3
|
|
6.0
|
|
0.1
|
|
|
100.0
|
|
||||||||||||||||
Cost
efficiency ratio
|
67.2
|
|
43.6
|
|
48.5
|
|
65.3
|
|
68.1
|
|
|
55.2
|
|
|
|
1
|
Net
trading income includes the revenues of internally funding trading
assets, while the related costs are reported in net interest
income.
|
|
|
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
|
In
3Q16, HSBC Bank plc executed a management services agreement,
transferring its governance responsibilities over HSBC Bank A.S.
(Turkey) to HSBC Bank Middle East Limited to leverage the strong
commercial ties between Turkey and MENA. Comparative data for
Europe and MENA have been re-presented accordingly.
|
|
||
|
|
|
HSBC
Holdings plc Earnings Release 1Q17
|
21
|
|
|
Appendix
- selected information
|
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation
of reported and adjusted results - global businesses
|
|||||||||||||||||||||||
|
Quarter
ended 31 Mar 2017
|
||||||||||||||||||||||
|
Retail
Bankingand WealthManagement
|
|
CommercialBanking
|
|
Global
Bankingand Markets
|
|
Global
PrivateBanking
|
|
Corporate
Centre
|
|
Total
|
|
|||||||||||
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
|||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reported
|
5,082
|
|
3,191
|
|
3,789
|
|
419
|
|
512
|
|
12,993
|
|
|||||||||||
Significant
items
|
(73
|
)
|
-
|
|
97
|
|
(4
|
)
|
(170
|
)
|
(150
|
)
|
|||||||||||
- DVA
on derivative contracts
|
-
|
|
-
|
|
97
|
|
-
|
|
-
|
|
97
|
|
|||||||||||
- fair
value movements on non-qualifying hedges1
|
-
|
|
-
|
|
-
|
|
-
|
|
(91
|
)
|
(91
|
)
|
|||||||||||
- gain
on disposal of our membership interest in Visa - US
|
(146
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
(146
|
)
|
|||||||||||
-
portfolio disposals
|
73
|
|
-
|
|
-
|
|
(4
|
)
|
(79
|
)
|
(10
|
)
|
|||||||||||
Adjusted
|
5,009
|
|
3,191
|
|
3,886
|
|
415
|
|
342
|
|
12,843
|
|
|||||||||||
Loan
impairment charge and other credit risk provisions
('LICs')
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reported
|
(296
|
)
|
3
|
|
20
|
|
(1
|
)
|
38
|
|
(236
|
)
|
|||||||||||
Adjusted
|
(296
|
)
|
3
|
|
20
|
|
(1
|
)
|
38
|
|
(236
|
)
|
|||||||||||
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reported
|
(3,276
|
)
|
(1,398
|
)
|
(2,245
|
)
|
(344
|
)
|
(1,065
|
)
|
(8,328
|
)
|
|||||||||||
Significant
items
|
335
|
|
(1
|
)
|
48
|
|
-
|
|
744
|
|
1,126
|
|
|||||||||||
- costs
to achieve
|
125
|
|
(1
|
)
|
48
|
|
-
|
|
661
|
|
833
|
|
|||||||||||
- costs
to establish UK ring-fenced bank
|
-
|
|
-
|
|
-
|
|
-
|
|
83
|
|
83
|
|
|||||||||||
- UK
customer redress programmes
|
210
|
|
-
|
|
-
|
|
-
|
|
-
|
|
210
|
|
|||||||||||
Adjusted
|
(2,941
|
)
|
(1,399
|
)
|
(2,197
|
)
|
(344
|
)
|
(321
|
)
|
(7,202
|
)
|
|||||||||||
Share
of profit in associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reported
|
9
|
|
-
|
|
-
|
|
-
|
|
523
|
|
532
|
|
|||||||||||
Adjusted
|
9
|
|
-
|
|
-
|
|
-
|
|
523
|
|
532
|
|
|||||||||||
Profit/(loss)
before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reported
|
1,519
|
|
1,796
|
|
1,564
|
|
74
|
|
8
|
|
4,961
|
|
|||||||||||
Significant
items
|
262
|
|
(1
|
)
|
145
|
|
(4
|
)
|
574
|
|
976
|
|
|||||||||||
-
revenue
|
(73
|
)
|
-
|
|
97
|
|
(4
|
)
|
(170
|
)
|
(150
|
)
|
|||||||||||
-
operating expenses
|
335
|
|
(1
|
)
|
48
|
|
-
|
|
744
|
|
1,126
|
|
|||||||||||
Adjusted
|
1,781
|
|
1,795
|
|
1,709
|
|
70
|
|
582
|
|
5,937
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
1
|
Excludes items
where there are substantial offsets in the income statement for the
same period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
22
|
HSBC
Holdings plc Earnings Release 1Q17
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Reconciliation
of reported and adjusted results - global businesses
(continued)
|
|||||||||||||||||||||||||||
|
Quarter
ended 31 Dec 2016
|
||||||||||||||||||||||||||
|
Retail
Bankingand WealthManagement
|
|
CommercialBanking
|
|
Global
Bankingand Markets
|
|
Global
PrivateBanking
|
|
CorporateCentre
|
|
Total
|
|
|||||||||||||||
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
|||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Reported
|
4,664
|
|
3,041
|
|
3,521
|
|
373
|
|
(2,615
|
)
|
8,984
|
|
|||||||||||||||
Currency
translation
|
(29
|
)
|
(17
|
)
|
(17
|
)
|
(1
|
)
|
(10
|
)
|
(74
|
)
|
|||||||||||||||
Significant
items
|
(72
|
)
|
-
|
|
70
|
|
25
|
|
1,992
|
|
2,015
|
|
|||||||||||||||
- DVA
on derivative contracts
|
-
|
|
-
|
|
70
|
|
-
|
|
-
|
|
70
|
|
|||||||||||||||
- fair
value movements on non-qualifying hedges1
|
(2
|
)
|
-
|
|
-
|
|
-
|
|
304
|
|
302
|
|
|||||||||||||||
- gain
on disposal of our membership interest in Visa - US
|
(72
|
)
|
-
|
|
-
|
|
-
|
|
(44
|
)
|
(116
|
)
|
|||||||||||||||
- own
credit spread2
|
-
|
|
-
|
|
-
|
|
-
|
|
1,648
|
|
1,648
|
|
|||||||||||||||
-
portfolio disposals
|
-
|
|
-
|
|
-
|
|
26
|
|
86
|
|
112
|
|
|||||||||||||||
-
currency translation on significant items
|
2
|
|
-
|
|
-
|
|
(1
|
)
|
(2
|
)
|
(1
|
)
|
|||||||||||||||
Adjusted
|
4,563
|
|
3,024
|
|
3,574
|
|
397
|
|
(633
|
)
|
10,925
|
|
|||||||||||||||
LICs
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Reported
|
(259
|
)
|
(201
|
)
|
(12
|
)
|
(8
|
)
|
12
|
|
(468
|
)
|
|||||||||||||||
Currency
translation
|
7
|
|
7
|
|
-
|
|
(1
|
)
|
(1
|
)
|
12
|
|
|||||||||||||||
Adjusted
|
(252
|
)
|
(194
|
)
|
(12
|
)
|
(9
|
)
|
11
|
|
(456
|
)
|
|||||||||||||||
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Reported
|
(3,417
|
)
|
(1,472
|
)
|
(2,300
|
)
|
(3,204
|
)
|
(2,066
|
)
|
(12,459
|
)
|
|||||||||||||||
Currency
translation
|
22
|
|
7
|
|
9
|
|
1
|
|
3
|
|
42
|
|
|||||||||||||||
Significant
items
|
222
|
|
24
|
|
48
|
|
2,839
|
|
909
|
|
4,042
|
|
|||||||||||||||
- costs
associated with portfolio disposals
|
-
|
|
-
|
|
-
|
|
10
|
|
18
|
|
28
|
|
|||||||||||||||
- costs
to achieve
|
164
|
|
14
|
|
91
|
|
-
|
|
817
|
|
1,086
|
|
|||||||||||||||
- costs
to establish UK ring-fenced bank
|
1
|
|
-
|
|
-
|
|
-
|
|
75
|
|
76
|
|
|||||||||||||||
-
impairment of GPB - Europe goodwill
|
-
|
|
-
|
|
-
|
|
2,440
|
|
-
|
|
2,440
|
|
|||||||||||||||
-
regulatory provisions in GPB
|
-
|
|
-
|
|
-
|
|
389
|
|
1
|
|
390
|
|
|||||||||||||||
-
settlements and provisions in connection with legal
matters
|
-
|
|
-
|
|
(42
|
)
|
-
|
|
-
|
|
(42
|
)
|
|||||||||||||||
- UK
customer redress programmes
|
59
|
|
11
|
|
-
|
|
-
|
|
-
|
|
70
|
|
|||||||||||||||
-
currency translation on significant items
|
(2
|
)
|
(1
|
)
|
(1
|
)
|
-
|
|
(2
|
)
|
(6
|
)
|
|||||||||||||||
Adjusted
|
(3,173
|
)
|
(1,441
|
)
|
(2,243
|
)
|
(364
|
)
|
(1,154
|
)
|
(8,375
|
)
|
|||||||||||||||
Share
of profit in associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Reported
|
2
|
|
-
|
|
-
|
|
-
|
|
496
|
|
498
|
|
|||||||||||||||
Currency
translation
|
-
|
|
-
|
|
-
|
|
-
|
|
(4
|
)
|
(4
|
)
|
|||||||||||||||
Adjusted
|
2
|
|
-
|
|
-
|
|
-
|
|
492
|
|
494
|
|
|||||||||||||||
Profit/(loss)
before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Reported
|
990
|
|
1,368
|
|
1,209
|
|
(2,839
|
)
|
(4,173
|
)
|
(3,445
|
)
|
|||||||||||||||
Currency
translation
|
-
|
|
(3
|
)
|
(8
|
)
|
(1
|
)
|
(12
|
)
|
(24
|
)
|
|||||||||||||||
Significant
items
|
150
|
|
24
|
|
118
|
|
2,864
|
|
2,901
|
|
6,057
|
|
|||||||||||||||
-
revenue
|
(72
|
)
|
-
|
|
70
|
|
25
|
|
1,992
|
|
2,015
|
|
|||||||||||||||
-
operating expenses
|
222
|
|
24
|
|
48
|
|
2,839
|
|
909
|
|
4,042
|
|
|||||||||||||||
Adjusted
|
1,140
|
|
1,389
|
|
1,319
|
|
24
|
|
(1,284
|
)
|
2,588
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
1
|
Excludes
items where there are substantial offsets in the income statement
for the same period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
'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. On 1 January 2017,
HSBC adopted the requirements of IFRS 9 relating to the
presentation of gains and losses on financial liabilities
designated at fair value. As a result, the effects of changes in
those liabilities' credit risk is presented in other
comprehensive income.
|
|
||
|
|
|
HSBC
Holdings plc Earnings Release 1Q17
|
23
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Reconciliation
of reported and adjusted results - global businesses
(continued)
|
|||||||||||||||||||||||||||
|
Quarter
ended 31 Mar 2016
|
||||||||||||||||||||||||||
|
Retail
Bankingand WealthManagement
|
|
CommercialBanking
|
|
Global
Bankingand Markets
|
|
Global
PrivateBanking
|
|
CorporateCentre
|
|
Total
|
|
|||||||||||||||
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
|||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Reported
|
5,059
|
|
3,460
|
|
3,987
|
|
471
|
|
1,999
|
|
14,976
|
|
|||||||||||||||
Currency
translation
|
(127
|
)
|
(140
|
)
|
(119
|
)
|
(12
|
)
|
(68
|
)
|
(466
|
)
|
|||||||||||||||
Significant
items
|
(575
|
)
|
(176
|
)
|
(328
|
)
|
(7
|
)
|
(845
|
)
|
(1,931
|
)
|
|||||||||||||||
- DVA
on derivative contracts
|
-
|
|
-
|
|
(158
|
)
|
-
|
|
-
|
|
(158
|
)
|
|||||||||||||||
- fair
value movements on non-qualifying hedges1
|
-
|
|
-
|
|
-
|
|
-
|
|
233
|
|
233
|
|
|||||||||||||||
- own
credit spread2
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,151
|
)
|
(1,151
|
)
|
|||||||||||||||
-
trading results from disposed-of operations in Brazil
|
(462
|
)
|
(142
|
)
|
(152
|
)
|
(6
|
)
|
41
|
|
(721
|
)
|
|||||||||||||||
-
currency translation on significant items
|
(113
|
)
|
(34
|
)
|
(18
|
)
|
(1
|
)
|
32
|
|
(134
|
)
|
|||||||||||||||
Adjusted
|
4,357
|
|
3,144
|
|
3,540
|
|
452
|
|
1,086
|
|
12,579
|
|
|||||||||||||||
LICs
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Reported
|
(484
|
)
|
(386
|
)
|
(175
|
)
|
-
|
|
(116
|
)
|
(1,161
|
)
|
|||||||||||||||
Currency
translation
|
(36
|
)
|
(12
|
)
|
(9
|
)
|
-
|
|
2
|
|
(55
|
)
|
|||||||||||||||
Significant
items
|
270
|
|
140
|
|
6
|
|
-
|
|
-
|
|
416
|
|
|||||||||||||||
-
trading results from disposed-of operations in Brazil
|
217
|
|
113
|
|
4
|
|
-
|
|
-
|
|
334
|
|
|||||||||||||||
-
currency translation on significant items
|
53
|
|
27
|
|
2
|
|
-
|
|
-
|
|
82
|
|
|||||||||||||||
Adjusted
|
(250
|
)
|
(258
|
)
|
(178
|
)
|
-
|
|
(114
|
)
|
(800
|
)
|
|||||||||||||||
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Reported
|
(3,487
|
)
|
(1,561
|
)
|
(2,286
|
)
|
(382
|
)
|
(548
|
)
|
(8,264
|
)
|
|||||||||||||||
Currency
translation
|
87
|
|
48
|
|
100
|
|
8
|
|
31
|
|
274
|
|
|||||||||||||||
Significant
items
|
502
|
|
114
|
|
86
|
|
7
|
|
265
|
|
974
|
|
|||||||||||||||
- costs
to achieve
|
44
|
|
23
|
|
30
|
|
2
|
|
242
|
|
341
|
|
|||||||||||||||
- costs
to establish UK ring-fenced bank
|
-
|
|
-
|
|
-
|
|
-
|
|
31
|
|
31
|
|
|||||||||||||||
-
regulatory provisions in GPB
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
1
|
|
|||||||||||||||
-
trading results from disposed-of operations in Brazil
|
371
|
|
74
|
|
48
|
|
4
|
|
7
|
|
504
|
|
|||||||||||||||
-
currency translation on significant items
|
87
|
|
17
|
|
8
|
|
1
|
|
(16
|
)
|
97
|
|
|||||||||||||||
Adjusted
|
(2,898
|
)
|
(1,399
|
)
|
(2,100
|
)
|
(367
|
)
|
(252
|
)
|
(7,016
|
)
|
|||||||||||||||
Share
of profit in associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Reported
|
7
|
|
-
|
|
-
|
|
-
|
|
548
|
|
555
|
|
|||||||||||||||
Currency
translation
|
-
|
|
-
|
|
-
|
|
-
|
|
(23
|
)
|
(23
|
)
|
|||||||||||||||
Significant
items
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
1
|
|
|||||||||||||||
-
trading results from disposed-of operations in Brazil
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
1
|
|
|||||||||||||||
-
currency translation on significant items
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|||||||||||||||
Adjusted
|
7
|
|
-
|
|
-
|
|
-
|
|
526
|
|
533
|
|
|||||||||||||||
Profit/(loss)
before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Reported
|
1,095
|
|
1,513
|
|
1,526
|
|
89
|
|
1,883
|
|
6,106
|
|
|||||||||||||||
Currency
translation
|
(76
|
)
|
(104
|
)
|
(28
|
)
|
(4
|
)
|
(58
|
)
|
(270
|
)
|
|||||||||||||||
Significant
items
|
197
|
|
78
|
|
(236
|
)
|
-
|
|
(579
|
)
|
(540
|
)
|
|||||||||||||||
-
revenue
|
(575
|
)
|
(176
|
)
|
(328
|
)
|
(7
|
)
|
(845
|
)
|
(1,931
|
)
|
|||||||||||||||
-
LICs
|
270
|
|
140
|
|
6
|
|
-
|
|
-
|
|
416
|
|
|||||||||||||||
-
operating expenses
|
502
|
|
114
|
|
86
|
|
7
|
|
265
|
|
974
|
|
|||||||||||||||
- share
of profit in associates and joint ventures
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
1
|
|
|||||||||||||||
Adjusted
|
1,216
|
|
1,487
|
|
1,262
|
|
85
|
|
1,246
|
|
5,296
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
1
|
Excludes
items where there are substantial offsets in the income statement
for the same period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
'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. On 1 January 2017,
HSBC adopted the requirements of IFRS 9 relating to the
presentation of gains and losses on financial liabilities
designated at fair value. As a result, the effects of changes in
those liabilities' credit risk is presented in other
comprehensive income.
|
|
|||
|
|
||
24
|
HSBC
Holdings plc Earnings Release 1Q17
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation
of reported and adjusted risk-weighted assets
|
||||||||||||||||||||||
|
Quarter
ended 31 Mar 2017
|
|||||||||||||||||||||
|
Retail
Bankingand WealthManagement
|
|
CommercialBanking
|
|
Global
Banking
and
Markets
|
|
Global
PrivateBanking
|
|
Corporate
Centre
|
|
Total
|
|
||||||||||
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
$bn
|
|
||||||||||
Risk-weighted
assets
|
|
|
|
|
|
|
||||||||||||||||
Reported
|
113.5
|
|
280.6
|
|
296.0
|
|
15.4
|
|
152.4
|
|
857.9
|
|
||||||||||
Brazil
operations
|
-
|
|
-
|
|
-
|
|
-
|
|
(5.2
|
)
|
(5.2
|
)
|
||||||||||
Adjusted
|
113.5
|
|
280.6
|
|
296.0
|
|
15.4
|
|
147.2
|
|
852.7
|
|
||||||||||
|
|
|
|
|
|
|
||||||||||||||||
|
Quarter
ended 31 Dec 2016
|
|||||||||||||||||||||
Risk-weighted
assets
|
|
|
|
|
|
|
||||||||||||||||
Reported
|
115.1
|
|
275.9
|
|
300.4
|
|
15.3
|
|
150.5
|
|
857.2
|
|
||||||||||
Currency
translation
|
1.0
|
|
2.5
|
|
2.3
|
|
-
|
|
0.9
|
|
6.7
|
|
||||||||||
Brazil
operations
|
(3.2
|
)
|
(1.0
|
)
|
(0.8
|
)
|
-
|
|
(0.2
|
)
|
(5.2
|
)
|
||||||||||
Adjusted
|
112.9
|
|
277.4
|
|
301.9
|
|
15.3
|
|
151.2
|
|
858.7
|
|
||||||||||
|
|
|
|
|
|
|
||||||||||||||||
|
Quarter
ended 31 Mar 2016
|
|||||||||||||||||||||
Risk-weighted
assets
|
|
|
|
|
|
|
||||||||||||||||
Reported
|
130.2
|
|
304.3
|
|
344.3
|
|
17.9
|
|
318.5
|
|
1,115.2
|
|
||||||||||
Currency
translation
|
(3.7
|
)
|
(14.2
|
)
|
(5.8
|
)
|
(0.6
|
)
|
(14.9
|
)
|
(39.2
|
)
|
||||||||||
Brazil
operations
|
(14.4
|
)
|
(16.2
|
)
|
(13.5
|
)
|
(0.2
|
)
|
(4.0
|
)
|
(48.3
|
)
|
||||||||||
Adjusted
|
112.1
|
|
273.9
|
|
325.0
|
|
17.1
|
|
299.6
|
|
1,027.7
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Reconciliation
of reported and adjusted results - geographical
regions
|
||||||||||||||||||||||||||||||||||||
|
Quarter
ended 31 Mar 2017
|
|||||||||||||||||||||||||||||||||||
|
Europe
|
|
Asia
|
|
MENA
|
|
NorthAmerica
|
|
LatinAmerica
|
|
Total
|
|
UK
|
|
HongKong
|
|
||||||||||||||||||||
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
||||||||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Reported1
|
4,213
|
|
6,540
|
|
653
|
|
1,776
|
|
735
|
|
12,993
|
|
3,018
|
|
4,107
|
|
||||||||||||||||||||
Significant
items
|
(55
|
)
|
46
|
|
-
|
|
(142
|
)
|
1
|
|
(150
|
)
|
(60
|
)
|
22
|
|
||||||||||||||||||||
- DVA
on derivative contracts
|
51
|
|
36
|
|
-
|
|
9
|
|
1
|
|
97
|
|
43
|
|
10
|
|
||||||||||||||||||||
- fair
value movements on non-qualifying hedges2
|
(102
|
)
|
10
|
|
-
|
|
1
|
|
-
|
|
(91
|
)
|
(103
|
)
|
12
|
|
||||||||||||||||||||
- gain
on disposal of our membership interest in Visa - US
|
-
|
|
-
|
|
-
|
|
(146
|
)
|
-
|
|
(146
|
)
|
-
|
|
-
|
|
||||||||||||||||||||
-
portfolio disposals
|
(4
|
)
|
-
|
|
-
|
|
(6
|
)
|
-
|
|
(10
|
)
|
-
|
|
-
|
|
||||||||||||||||||||
Adjusted1
|
4,158
|
|
6,586
|
|
653
|
|
1,634
|
|
736
|
|
12,843
|
|
2,958
|
|
4,129
|
|
||||||||||||||||||||
LICs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Reported
|
5
|
|
(167
|
)
|
(57
|
)
|
106
|
|
(123
|
)
|
(236
|
)
|
16
|
|
(155
|
)
|
||||||||||||||||||||
Adjusted
|
5
|
|
(167
|
)
|
(57
|
)
|
106
|
|
(123
|
)
|
(236
|
)
|
16
|
|
(155
|
)
|
||||||||||||||||||||
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Reported1
|
(4,428
|
)
|
(2,694
|
)
|
(322
|
)
|
(1,310
|
)
|
(498
|
)
|
(8,328
|
)
|
(3,546
|
)
|
(1,393
|
)
|
||||||||||||||||||||
Significant
items
|
856
|
|
167
|
|
8
|
|
82
|
|
13
|
|
1,126
|
|
824
|
|
75
|
|
||||||||||||||||||||
- costs
to achieve
|
563
|
|
167
|
|
8
|
|
82
|
|
13
|
|
833
|
|
531
|
|
75
|
|
||||||||||||||||||||
- costs
to establish UK ring-fenced bank
|
83
|
|
-
|
|
-
|
|
-
|
|
-
|
|
83
|
|
83
|
|
-
|
|
||||||||||||||||||||
- UK
customer redress programmes
|
210
|
|
-
|
|
-
|
|
-
|
|
-
|
|
210
|
|
210
|
|
-
|
|
||||||||||||||||||||
Adjusted1
|
(3,572
|
)
|
(2,527
|
)
|
(314
|
)
|
(1,228
|
)
|
(485
|
)
|
(7,202
|
)
|
(2,722
|
)
|
(1,318
|
)
|
||||||||||||||||||||
Share
of profit in associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Reported
|
4
|
|
415
|
|
113
|
|
-
|
|
-
|
|
532
|
|
5
|
|
7
|
|
||||||||||||||||||||
Adjusted
|
4
|
|
415
|
|
113
|
|
-
|
|
-
|
|
532
|
|
5
|
|
7
|
|
||||||||||||||||||||
Profit/(loss)
before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Reported
|
(206
|
)
|
4,094
|
|
387
|
|
572
|
|
114
|
|
4,961
|
|
(507
|
)
|
2,566
|
|
||||||||||||||||||||
Significant
items
|
801
|
|
213
|
|
8
|
|
(60
|
)
|
14
|
|
976
|
|
764
|
|
97
|
|
||||||||||||||||||||
-
revenue
|
(55
|
)
|
46
|
|
-
|
|
(142
|
)
|
1
|
|
(150
|
)
|
(60
|
)
|
22
|
|
||||||||||||||||||||
-
operating expenses
|
856
|
|
167
|
|
8
|
|
82
|
|
13
|
|
1,126
|
|
824
|
|
75
|
|
||||||||||||||||||||
Adjusted
|
595
|
|
4,307
|
|
395
|
|
512
|
|
128
|
|
5,937
|
|
257
|
|
2,663
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Amounts are
non-additive across geographical regions due to intra-Group
transactions.
|
|
|
2
|
Excludes
items where there are substantial offsets in the income statement
for the same period.
|
|
||
|
|
|
HSBC
Holdings plc Earnings Release 1Q17
|
25
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Reconciliation
of reported and adjusted results - geographical regions
(continued)
|
||||||||||||||||||||||||||||||||||||
|
Quarter
ended 31 Dec 2016
|
|||||||||||||||||||||||||||||||||||
|
Europe
|
|
Asia
|
|
MENA
|
|
NorthAmerica
|
|
LatinAmerica
|
|
Total
|
|
UK
|
|
HongKong
|
|
||||||||||||||||||||
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
||||||||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Reported1
|
1,647
|
|
5,568
|
|
632
|
|
1,533
|
|
726
|
|
8,984
|
|
525
|
|
3,315
|
|
||||||||||||||||||||
Currency
translation1
|
(31
|
)
|
(13
|
)
|
(35
|
)
|
3
|
|
(13
|
)
|
(74
|
)
|
(8
|
)
|
(2
|
)
|
||||||||||||||||||||
Significant
items
|
1,905
|
|
16
|
|
2
|
|
91
|
|
1
|
|
2,015
|
|
1,895
|
|
10
|
|
||||||||||||||||||||
- DVA
on derivative contracts
|
50
|
|
14
|
|
-
|
|
7
|
|
(1
|
)
|
70
|
|
45
|
|
7
|
|
||||||||||||||||||||
- fair
value movements on non-qualifying hedges2
|
303
|
|
(1
|
)
|
-
|
|
(2
|
)
|
2
|
|
302
|
|
311
|
|
1
|
|
||||||||||||||||||||
- gain
on the disposal of our membership interest in Visa -
US
|
-
|
|
-
|
|
-
|
|
(116
|
)
|
-
|
|
(116
|
)
|
-
|
|
-
|
|
||||||||||||||||||||
- own
credit spread3
|
1,526
|
|
4
|
|
2
|
|
116
|
|
-
|
|
1,648
|
|
1,539
|
|
2
|
|
||||||||||||||||||||
-
portfolio disposals
|
26
|
|
-
|
|
-
|
|
86
|
|
-
|
|
112
|
|
-
|
|
-
|
|
||||||||||||||||||||
-
currency translation on significant items
|
-
|
|
(1
|
)
|
-
|
|
-
|
|
-
|
|
(1
|
)
|
-
|
|
-
|
|
||||||||||||||||||||
Adjusted1
|
3,521
|
|
5,571
|
|
599
|
|
1,627
|
|
714
|
|
10,925
|
|
2,412
|
|
3,323
|
|
||||||||||||||||||||
LICs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Reported
|
(60
|
)
|
(125
|
)
|
(133
|
)
|
(27
|
)
|
(123
|
)
|
(468
|
)
|
(5
|
)
|
(90
|
)
|
||||||||||||||||||||
Currency
translation
|
-
|
|
2
|
|
7
|
|
1
|
|
2
|
|
12
|
|
1
|
|
-
|
|
||||||||||||||||||||
Adjusted
|
(60
|
)
|
(123
|
)
|
(126
|
)
|
(26
|
)
|
(121
|
)
|
(456
|
)
|
(4
|
)
|
(90
|
)
|
||||||||||||||||||||
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Reported1
|
(8,333
|
)
|
(2,898
|
)
|
(377
|
)
|
(1,440
|
)
|
(533
|
)
|
(12,459
|
)
|
(4,661
|
)
|
(1,526
|
)
|
||||||||||||||||||||
Currency
translation1
|
27
|
|
7
|
|
16
|
|
(2
|
)
|
9
|
|
42
|
|
5
|
|
1
|
|
||||||||||||||||||||
Significant
items
|
3,677
|
|
215
|
|
27
|
|
102
|
|
21
|
|
4,042
|
|
773
|
|
97
|
|
||||||||||||||||||||
- costs
associated with portfolio disposals
|
28
|
|
-
|
|
-
|
|
-
|
|
-
|
|
28
|
|
-
|
|
-
|
|
||||||||||||||||||||
- costs
to achieve
|
720
|
|
214
|
|
29
|
|
102
|
|
21
|
|
1,086
|
|
651
|
|
97
|
|
||||||||||||||||||||
- costs
to establish UK ring-fenced bank
|
76
|
|
-
|
|
-
|
|
-
|
|
-
|
|
76
|
|
76
|
|
-
|
|
||||||||||||||||||||
-
impairment of GPB - Europe goodwill
|
2,440
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,440
|
|
-
|
|
-
|
|
||||||||||||||||||||
-
regulatory provisions in GPB
|
389
|
|
1
|
|
-
|
|
-
|
|
-
|
|
390
|
|
-
|
|
-
|
|
||||||||||||||||||||
-
settlements and provisions in connection with legal
matters
|
(42
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
(42
|
)
|
(22
|
)
|
-
|
|
||||||||||||||||||||
- UK
customer redress programmes
|
70
|
|
-
|
|
-
|
|
-
|
|
-
|
|
70
|
|
70
|
|
-
|
|
||||||||||||||||||||
-
currency translation on significant items
|
(4
|
)
|
-
|
|
(2
|
)
|
-
|
|
-
|
|
(6
|
)
|
(2
|
)
|
-
|
|
||||||||||||||||||||
Adjusted1
|
(4,629
|
)
|
(2,676
|
)
|
(334
|
)
|
(1,340
|
)
|
(503
|
)
|
(8,375
|
)
|
(3,883
|
)
|
(1,428
|
)
|
||||||||||||||||||||
Share
of profit in associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Reported
|
5
|
|
417
|
|
73
|
|
3
|
|
-
|
|
498
|
|
5
|
|
3
|
|
||||||||||||||||||||
Currency
translation
|
-
|
|
(4
|
)
|
-
|
|
-
|
|
-
|
|
(4
|
)
|
-
|
|
-
|
|
||||||||||||||||||||
Adjusted
|
5
|
|
413
|
|
73
|
|
3
|
|
-
|
|
494
|
|
5
|
|
3
|
|
||||||||||||||||||||
Profit/(loss)
before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Reported
|
(6,741
|
)
|
2,962
|
|
195
|
|
69
|
|
70
|
|
(3,445
|
)
|
(4,136
|
)
|
1,702
|
|
||||||||||||||||||||
Currency
translation
|
(4
|
)
|
(8
|
)
|
(12
|
)
|
2
|
|
(2
|
)
|
(24
|
)
|
(2
|
)
|
(1
|
)
|
||||||||||||||||||||
Significant
items
|
5,582
|
|
231
|
|
29
|
|
193
|
|
22
|
|
6,057
|
|
2,668
|
|
107
|
|
||||||||||||||||||||
-
revenue
|
1,905
|
|
16
|
|
2
|
|
91
|
|
1
|
|
2,015
|
|
1,895
|
|
10
|
|
||||||||||||||||||||
-
operating expenses
|
3,677
|
|
215
|
|
27
|
|
102
|
|
21
|
|
4,042
|
|
773
|
|
97
|
|
||||||||||||||||||||
Adjusted
|
(1,163
|
)
|
3,185
|
|
212
|
|
264
|
|
90
|
|
2,588
|
|
(1,470
|
)
|
1,808
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Amounts are
non-additive across geographical regions due to intra-Group
transactions.
|
|
|
2
|
Excludes
items where there are substantial offsets in the income statement
for the same period.
|
|
|
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. On 1 January 2017,
HSBC adopted the requirements of IFRS 9 relating to the
presentation of gains and losses on financial liabilities
designated at fair value. As a result, the effects of changes in
those liabilities' credit risk is presented in other
comprehensive income.
|
|
|||
|
|||
26
|
HSBC
Holdings plc Earnings Release 1Q17
|
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Reconciliation
of reported and adjusted results - geographical regions
(continued)
|
||||||||||||||||||||||||||||||||||
|
Quarter
ended 31 Mar 2016
|
|||||||||||||||||||||||||||||||||
|
Europe
|
|
Asia
|
|
MENA
|
|
NorthAmerica
|
|
LatinAmerica
|
|
Total
|
|
UK
|
|
HongKong
|
|
||||||||||||||||||
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
||||||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Reported1
|
5,632
|
|
5,833
|
|
835
|
|
1,994
|
|
1,419
|
|
14,976
|
|
4,524
|
|
3,498
|
|
||||||||||||||||||
Currency
translation1
|
(457
|
)
|
(13
|
)
|
(114
|
)
|
15
|
|
103
|
|
(466
|
)
|
(440
|
)
|
7
|
|
||||||||||||||||||
Significant
items
|
(936
|
)
|
(70
|
)
|
(8
|
)
|
(52
|
)
|
(865
|
)
|
(1,931
|
)
|
(949
|
)
|
(22
|
)
|
||||||||||||||||||
- DVA
on derivative contracts
|
(99
|
)
|
(64
|
)
|
-
|
|
(22
|
)
|
27
|
|
(158
|
)
|
(86
|
)
|
(24
|
)
|
||||||||||||||||||
- fair
value movements on non-qualifying hedges2
|
111
|
|
4
|
|
-
|
|
119
|
|
(1
|
)
|
233
|
|
73
|
|
8
|
|
||||||||||||||||||
- own
credit spread3
|
(985
|
)
|
(9
|
)
|
(8
|
)
|
(149
|
)
|
-
|
|
(1,151
|
)
|
(973
|
)
|
(6
|
)
|
||||||||||||||||||
-
trading results from disposed-of operations in Brazil
|
-
|
|
-
|
|
-
|
|
-
|
|
(721
|
)
|
(721
|
)
|
-
|
|
-
|
|
||||||||||||||||||
-
currency translation on significant items
|
37
|
|
(1
|
)
|
-
|
|
-
|
|
(170
|
)
|
(134
|
)
|
37
|
|
-
|
|
||||||||||||||||||
Adjusted1
|
4,239
|
|
5,750
|
|
713
|
|
1,957
|
|
657
|
|
12,579
|
|
3,135
|
|
3,483
|
|
||||||||||||||||||
LICs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Reported
|
(151
|
)
|
(190
|
)
|
(46
|
)
|
(328
|
)
|
(446
|
)
|
(1,161
|
)
|
(89
|
)
|
(44
|
)
|
||||||||||||||||||
Currency
translation
|
14
|
|
(2
|
)
|
4
|
|
(2
|
)
|
(69
|
)
|
(55
|
)
|
12
|
|
-
|
|
||||||||||||||||||
Significant
items
|
-
|
|
-
|
|
-
|
|
-
|
|
416
|
|
416
|
|
-
|
|
-
|
|
||||||||||||||||||
-
trading results from disposed-of operations in Brazil
|
-
|
|
-
|
|
-
|
|
-
|
|
334
|
|
334
|
|
-
|
|
-
|
|
||||||||||||||||||
-
currency translation on significant items
|
-
|
|
-
|
|
-
|
|
-
|
|
82
|
|
82
|
|
-
|
|
-
|
|
||||||||||||||||||
Adjusted
|
(137
|
)
|
(192
|
)
|
(42
|
)
|
(330
|
)
|
(99
|
)
|
(800
|
)
|
(77
|
)
|
(44
|
)
|
||||||||||||||||||
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Reported1
|
(3,784
|
)
|
(2,543
|
)
|
(405
|
)
|
(1,302
|
)
|
(967
|
)
|
(8,264
|
)
|
(2,847
|
)
|
(1,372
|
)
|
||||||||||||||||||
Currency
translation1
|
302
|
|
11
|
|
46
|
|
(8
|
)
|
(77
|
)
|
274
|
|
280
|
|
(3
|
)
|
||||||||||||||||||
Significant
items
|
289
|
|
2
|
|
9
|
|
49
|
|
625
|
|
974
|
|
224
|
|
19
|
|
||||||||||||||||||
- costs
to achieve
|
277
|
|
3
|
|
11
|
|
49
|
|
1
|
|
341
|
|
212
|
|
19
|
|
||||||||||||||||||
- costs
to establish UK ring-fenced bank
|
31
|
|
-
|
|
-
|
|
-
|
|
-
|
|
31
|
|
31
|
|
-
|
|
||||||||||||||||||
-
regulatory provisions in GPB
|
1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
-
|
|
||||||||||||||||||
-
trading results from disposed-of operations in Brazil
|
-
|
|
-
|
|
-
|
|
-
|
|
504
|
|
504
|
|
-
|
|
-
|
|
||||||||||||||||||
-
currency translation on significant items
|
(20
|
)
|
(1
|
)
|
(2
|
)
|
-
|
|
120
|
|
97
|
|
(19
|
)
|
-
|
|
||||||||||||||||||
Adjusted1
|
(3,193
|
)
|
(2,530
|
)
|
(350
|
)
|
(1,261
|
)
|
(419
|
)
|
(7,016
|
)
|
(2,343
|
)
|
(1,356
|
)
|
||||||||||||||||||
Share
of profit in associates and joint ventures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Reported
|
1
|
|
430
|
|
125
|
|
-
|
|
(1
|
)
|
555
|
|
(1
|
)
|
7
|
|
||||||||||||||||||
Currency
translation
|
(2
|
)
|
(21
|
)
|
-
|
|
-
|
|
-
|
|
(23
|
)
|
-
|
|
-
|
|
||||||||||||||||||
Significant
items
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
1
|
|
-
|
|
-
|
|
||||||||||||||||||
-
trading results from disposed-of operations in Brazil
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
1
|
|
-
|
|
-
|
|
||||||||||||||||||
-
currency translation on significant items
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
||||||||||||||||||
Adjusted
|
(1
|
)
|
409
|
|
125
|
|
-
|
|
-
|
|
533
|
|
(1
|
)
|
7
|
|
||||||||||||||||||
Profit/(loss)
before tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Reported
|
1,698
|
|
3,530
|
|
509
|
|
364
|
|
5
|
|
6,106
|
|
1,587
|
|
2,089
|
|
||||||||||||||||||
Currency
translation
|
(143
|
)
|
(25
|
)
|
(64
|
)
|
5
|
|
(43
|
)
|
(270
|
)
|
(148
|
)
|
4
|
|
||||||||||||||||||
Significant
items
|
(647
|
)
|
(68
|
)
|
1
|
|
(3
|
)
|
177
|
|
(540
|
)
|
(725
|
)
|
(3
|
)
|
||||||||||||||||||
-
revenue
|
(936
|
)
|
(70
|
)
|
(8
|
)
|
(52
|
)
|
(865
|
)
|
(1,931
|
)
|
(949
|
)
|
(22
|
)
|
||||||||||||||||||
-
LICs
|
-
|
|
-
|
|
-
|
|
-
|
|
416
|
|
416
|
|
-
|
|
-
|
|
||||||||||||||||||
-
operating expenses
|
289
|
|
2
|
|
9
|
|
49
|
|
625
|
|
974
|
|
224
|
|
19
|
|
||||||||||||||||||
- share
of profit in associates and joint ventures
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
1
|
|
-
|
|
-
|
|
||||||||||||||||||
Adjusted
|
908
|
|
3,437
|
|
446
|
|
366
|
|
139
|
|
5,296
|
|
714
|
|
2,090
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Amounts are
non-additive across geographical regions due to intra-Group
transactions.
|
|
|
2
|
Excludes
items where there are substantial offsets in the income statement
for the same period.
|
|
|
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. On 1 January 2017,
HSBC adopted the requirements of IFRS 9 relating to the
presentation of gains and losses on financial liabilities
designated at fair value. As a result, the effects of changes in
those liabilities' credit risk is presented in other
comprehensive income.
|
|
||
|
|
|
HSBC
Holdings plc Earnings Release 1Q17
|
27
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Gross
loans and advances by industry sector and by geographical
region
|
|||||||||||||||||||||||||||
|
Europe
|
|
Asia
|
|
MENA
|
|
North
America
|
|
Latin
America
|
|
Total
|
|
As a
%of total
gross
loans
|
||||||||||||||
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
$m
|
|
|||||||||||||||
At 31
Mar 2017
|
|
|
|
|
|
|
|
||||||||||||||||||||
Personal
|
149,155
|
|
138,140
|
|
7,459
|
|
40,961
|
|
6,536
|
|
342,251
|
|
35.3
|
||||||||||||||
- first
lien residential mortgages
|
110,765
|
|
101,301
|
|
2,503
|
|
35,532
|
|
2,156
|
|
252,257
|
|
26.0
|
||||||||||||||
- other
personal
|
38,390
|
|
36,839
|
|
4,956
|
|
5,429
|
|
4,380
|
|
89,994
|
|
9.3
|
||||||||||||||
Wholesale
|
|
|
|
|
|
|
|
||||||||||||||||||||
Corporate
and commercial
|
163,636
|
|
218,543
|
|
21,395
|
|
55,955
|
|
11,384
|
|
470,913
|
|
48.4
|
||||||||||||||
-
manufacturing
|
28,034
|
|
32,732
|
|
2,885
|
|
14,579
|
|
2,786
|
|
81,016
|
|
8.3
|
||||||||||||||
-
international trade and services
|
56,876
|
|
72,743
|
|
8,743
|
|
10,483
|
|
2,674
|
|
151,519
|
|
15.6
|
||||||||||||||
-
commercial real estate
|
22,220
|
|
34,168
|
|
740
|
|
8,069
|
|
1,533
|
|
66,730
|
|
6.9
|
||||||||||||||
- other
property-related
|
7,829
|
|
39,045
|
|
1,870
|
|
8,375
|
|
327
|
|
57,446
|
|
5.9
|
||||||||||||||
-
government
|
3,142
|
|
2,827
|
|
1,244
|
|
311
|
|
542
|
|
8,066
|
|
0.8
|
||||||||||||||
- other
commercial
|
45,535
|
|
37,028
|
|
5,913
|
|
14,138
|
|
3,522
|
|
106,136
|
|
10.9
|
||||||||||||||
Financial
|
47,031
|
|
81,717
|
|
9,711
|
|
15,612
|
|
4,264
|
|
158,335
|
|
16.3
|
||||||||||||||
-
non-bank financial institutions
|
32,678
|
|
24,049
|
|
2,565
|
|
10,305
|
|
744
|
|
70,341
|
|
7.2
|
||||||||||||||
-
banks
|
14,353
|
|
57,668
|
|
7,146
|
|
5,307
|
|
3,520
|
|
87,994
|
|
9.1
|
||||||||||||||
Total
wholesale
|
210,667
|
|
300,260
|
|
31,106
|
|
71,567
|
|
15,648
|
|
629,248
|
|
64.7
|
||||||||||||||
Total
gross loans and advances at 31 Mar 2017
|
359,822
|
|
438,400
|
|
38,565
|
|
112,528
|
|
22,184
|
|
971,499
|
|
100.0
|
||||||||||||||
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
||||||||||||||
Percentage
of total gross loans and advances
|
37.0
|
|
45.1
|
|
4.0
|
|
11.6
|
|
2.3
|
|
100.0
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||||
At 31
Dec 2016
|
|
|
|
|
|
|
|
||||||||||||||||||||
Personal
|
146,499
|
|
134,700
|
|
7,744
|
|
44,956
|
|
5,899
|
|
339,798
|
|
35.5
|
||||||||||||||
- first
lien residential mortgages
|
108,008
|
|
98,072
|
|
2,535
|
|
39,239
|
|
1,924
|
|
249,778
|
|
26.1
|
||||||||||||||
- other
personal
|
38,491
|
|
36,628
|
|
5,209
|
|
5,717
|
|
3,975
|
|
90,020
|
|
9.4
|
||||||||||||||
Wholesale
|
|
|
|
|
|
|
|
||||||||||||||||||||
Corporate
and commercial
|
161,653
|
|
212,848
|
|
22,078
|
|
58,276
|
|
10,972
|
|
465,827
|
|
48.6
|
||||||||||||||
-
manufacturing
|
27,005
|
|
32,564
|
|
2,941
|
|
15,348
|
|
2,785
|
|
80,643
|
|
8.4
|
||||||||||||||
-
international trade and services
|
55,875
|
|
72,166
|
|
8,448
|
|
11,035
|
|
2,518
|
|
150,042
|
|
15.6
|
||||||||||||||
-
commercial real estate
|
21,460
|
|
32,798
|
|
724
|
|
7,849
|
|
1,340
|
|
64,171
|
|
6.7
|
||||||||||||||
- other
property-related
|
7,025
|
|
37,628
|
|
1,856
|
|
8,823
|
|
306
|
|
55,638
|
|
5.8
|
||||||||||||||
-
government
|
3,009
|
|
2,919
|
|
1,619
|
|
354
|
|
541
|
|
8,442
|
|
0.9
|
||||||||||||||
- other
commercial
|
47,279
|
|
34,773
|
|
6,490
|
|
14,867
|
|
3,482
|
|
106,891
|
|
11.2
|
||||||||||||||
Financial
|
43,666
|
|
79,254
|
|
10,370
|
|
14,823
|
|
3,742
|
|
151,855
|
|
15.9
|
||||||||||||||
-
non-bank financial institutions
|
31,307
|
|
19,517
|
|
2,599
|
|
9,750
|
|
556
|
|
63,729
|
|
6.7
|
||||||||||||||
-
banks
|
12,359
|
|
59,737
|
|
7,771
|
|
5,073
|
|
3,186
|
|
88,126
|
|
9.2
|
||||||||||||||
Total
wholesale
|
205,319
|
|
292,102
|
|
32,448
|
|
73,099
|
|
14,714
|
|
617,682
|
|
64.5
|
||||||||||||||
Total
gross loans and advances at 31 Dec 2016
|
351,818
|
|
426,802
|
|
40,192
|
|
118,055
|
|
20,613
|
|
957,480
|
|
100.0
|
||||||||||||||
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
|
%
|
||||||||||||||
Percentage
of total gross loans and advances
|
36.7
|
|
44.6
|
|
4.2
|
|
12.3
|
|
2.2
|
|
100.0
|
|
|
|
|||
|
|
||
28
|
HSBC
Holdings plc Earnings Release 1Q17
|
|
|
First
interim dividend for 2017
|
|
|
†
|
Independent
non-executive Director.
|
|
||
|
|
|
HSBC
Holdings plc Earnings Release 1Q17
|
29
|
|
|||
|
|
||
Terms
and abbreviations
|
|||
|
|||
|
|
|
|
1Q17
|
First
quarter of 2017
|
||
1Q16
|
First
quarter of 2016
|
||
3Q16
|
Third
quarter of 2016
|
||
4Q16
|
Fourth
quarter of 2016
|
||
BoCom
|
Bank of
Communications Co., Limited, one of China's largest
banks
|
||
Bps
|
Basis
points. One basis point is equal to one-hundredth of a percentage
point
|
||
CET1
|
Common
equity tier 1
|
||
CMB
|
Commercial
Banking, a global business
|
||
CML
|
Consumer
and Mortgage Lending (US)
|
||
Corporate
Centre
|
In
December 2016, 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
|
||
Costs
to achieve
|
Transformation
costs to deliver the cost reduction and productivity outcomes
outlined in the Investor Update in June 2015
|
||
CRD
IV
|
Capital
Requirements Directive IV
|
||
CRR
|
Capital
Requirements Regulation
|
||
DVA
|
Debit
valuation adjustment
|
||
EBA
|
European
Banking Authority
|
||
FTEs
|
Full-time
equivalent staff
|
||
FX
|
Foreign
exchange
|
||
GB&M
|
Global
Banking and Markets, a global business
|
||
GLCM
|
Global
Liquidity and Cash Management
|
||
GPB
|
Global
Private Banking, a global business
|
||
Group
|
HSBC
Holdings together with its subsidiary undertakings
|
||
GTRF
|
Global
Trade and Receivables Finance
|
||
IFRSs
|
International
Financial Reporting Standards
|
||
IMA
|
Internal
Models Approach
|
||
IRB
|
Internal
ratings based
|
||
Jaws
|
The
difference between the rate of growth of revenue and the rate of
growth of costs. Positive jaws is where the revenue growth rate
exceeds the cost growth rate. We calculate this on an adjusted
basis
|
||
JV
|
Joint
venture
|
||
Legacy
credit
|
A
portfolio of assets comprising Solitaire Funding Limited,
securities investment conduits, asset-backed securities trading
portfolios, credit correlation portfolios and derivative
transactions entered into directly with monoline
insurers
|
||
LICs
|
Loan
impairment charges and other credit risk provisions
|
||
MENA
|
Middle
East and North Africa
|
||
MREL
|
Minimum
requirement for own funds and eligible liabilities
|
||
Own
credit spread
|
Fair
value movements on our long-term debt designated at fair value
resulting from changes in credit spread
|
||
PBT
|
Profit
before tax
|
||
PRA
|
Prudential
Regulation Authority (UK)
|
||
Revenue
|
Net
operating income before LICs
|
||
RBWM
|
Retail
Banking and Wealth Management, a global business
|
||
RoRWA
|
Return
on risk-weighted assets
|
||
RWAs
|
Risk-weighted
assets
|
||
$m/$bn
|
United
States dollar millions/billions
|
||
VaR
|
Value
at risk
|
|
|||
|
|
|
|
30
|
HSBC
Holdings plc Earnings Release 1Q17
|
HSBC
Holdings plc
|
|
|
|
|
By:
|
|
Name:
Ben J S Mathews
|
|
Title:
Group Company Secretary
|
|
|
|
Date:
04 May 2017
|