FORM 6-K
 
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
 
 
Report of Foreign Private Issuer
 
Pursuant to Rule 13a - 16 or 15d - 16 of
 
the Securities Exchange Act of 1934
 
 
 
For the month of August
 
HSBC Holdings plc
 
42nd Floor, 8 Canada Square, London E14 5HQ, England
 
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F).
 
Form 20-F X Form 40-F  
 
(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934).
 
Yes  No X
 
(If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-   ).
 
 
 
  
 
3 August 2020
 
 
HSBC HOLDINGS PLC
 
 
2020 INTERIM RESULTS – HIGHLIGHTS
 
Noel Quinn, Group Chief Executive, said:
 
“Our first half performance was impacted by the Covid-19 pandemic, falling interest rates, increased geopolitical risk and heightened levels of market volatility. Despite this, our Asia franchise showed resilience, and our Global Markets business delivered strong growth compared with last year’s first half. Having paused parts of our transformation programme in response to the Covid-19 outbreak, we now intend to accelerate implementation of the plans we announced in February. We are also looking at what additional actions we need to take in light of the new economic environment to make HSBC a stronger and more sustainable business.”
 
“Current tensions between China and the US inevitably create challenging situations for an organisation with HSBC’s footprint. We will face any political challenges that arise with a focus on the long-term needs of our customers and the best interests of our investors.”
 
 
Financial performance (vs 1H19)
 
Reported profit after tax down 69% to $3.1bn and reported profit before tax down 65% to $4.3bn from higher expected credit losses and other credit impairment charges (‘ECL’) and lower revenue. Reported profit in 1H20 also included a $1.2bn impairment of software intangibles, mainly in Europe.
 
In Asia, we reported profit before tax of $7.4bn in 1H20, despite higher ECL, demonstrating the strength and continued resilience of our operations in the region and underlining the importance of Asia to the Group. Higher ECL charges materially impacted profitability in our markets across the rest of the world, notably in our operations throughout Europe.
 
Reported revenue down 9% to $26.7bn, reflecting the impact of interest rate reductions, as well as adverse market impacts in life insurance manufacturing and adverse valuation adjustments in Global Banking and Markets (‘GBM’), notably in 1Q20. These factors more than offset higher revenue in Global Markets.
 
Net interest margin (‘NIM’) of 1.43% in 1H20, down 18 basis points (‘bps’) from 1H19. NIM in 2Q20 was 1.33%, down 21bps from 1Q20, primarily reflecting the initial impact of the reduction in interest rates due to the Covid-19 outbreak.
 
Reported ECL increased by $5.7bn to $6.9bn due to the impact of the Covid-19 outbreak and the forward economic outlook, and due to an increase in charges related to specific wholesale customers. ECL (annualised) as a percentage of average gross loans and advances to customers was 1.33% in 1H20, while allowance for ECL against loans and advances to customers increased from $8.7bn at 31 December 2019 to $13.2bn at 30 June 2020.
 
Reported operating expenses down 4%, despite a $1.2bn impairment of software intangibles. Adjusted operating expenses fell 5%, despite continued investment, due to lower performance-related pay and reduced discretionary costs.
 
In 1H20, lending decreased by $18bn on a reported basis. On a constant currency basis, lending increased by $12bn, reflecting corporate customers drawing on existing and new credit lines and re-depositing these to increase cash balances in 1Q20, which was partly offset by paydowns in 2Q20. Deposits grew by $93bn on a reported basis and $133bn on a constant currency basis, with growth in all global businesses, including through the depositing of loans from government-backed schemes.
 
Common equity tier 1 capital (‘CET1’) ratio of 15.0%, up 30bps from 4Q19, as higher CET1 capital, which included an increase from the cancellation of the 4Q19 dividend and the current suspension of dividends on ordinary shares, more than offset the impact of risk-weighted asset (‘RWA’) growth.
 
Outlook for 2020
 
We continue to face a wide range of potential economic outcomes for the second half of 2020 and into 2021, partly dependent on the extent of any potential impacts from new waves of Covid-19, the path to the development of a possible vaccine and market and consumer confidence levels. Heightened geopolitical risk could also impact a number of our markets, including Hong Kong and the UK.
 
Applying a range of weightings to our ECL sensitivity analysis, as disclosed on pages 56 to 62 of the Interim Report 2020, could result in an ECL charge in the range of $8bn to $13bn for 2020. This range, which continues to be subject to a high degree of uncertainty due to Covid-19 and geopolitical tensions, is higher than at 1Q20 given the deterioration in consensus economic forecasts and actual loss experience during 2Q20.
 
Lower global interest rates and reduced customer activity have put increasing pressure on revenue, and are expected to continue to do so.
 
We intend to accelerate our transformation programme and execute additional cost actions to help mitigate pressures on revenue and create capacity for further investments in technology.
 
We expect mid-to-high single-digit RWA percentage growth in 2020, primarily from credit rating migration movements, which is expected to have an adverse impact on our CET1 ratio. We will continue to aim to reduce RWAs in low-returning areas, and improve efficiency to allow resources to be further and faster allocated to areas of competitive advantage, higher returns and growth.
 
Given the current high degree of uncertainty, we are continuing to monitor closely the implications on our business plan and medium-term financial targets, while also undertaking a review of our future dividend policy. We intend to provide an update on our medium-term financial targets and dividend policy at our year-end results for 2020.
 
 
 
Key financial metrics
 
 
 
 
 
Half-year to
 
 
 
30 Jun
 
30 Jun
 
31 Dec
 
 
Footnotes
 
2020
 
2019
 
2019
 
Reported results
 
 
 
 
 
Reported revenue ($m)
 
 
26,745
 
29,372
 
26,726
 
Reported profit before tax ($m)
 
 
4,318
 
12,407
 
940
 
Reported profit after tax ($m)
 
 
3,125
 
9,937
 
(1,229)
 
Profit attributable to the ordinary shareholders of the parent company ($m)
 
 
1,977
 
8,507
 
(2,538)
 
Cost efficiency ratio (%)
 
 
61.8
 
58.4
 
94.3
 
Basic earnings per share ($)
 
 
0.10
 
0.42
 
(0.13)
 
Diluted earnings per share ($)
 
 
0.10
 
0.42
 
(0.13)
 
Return on average ordinary shareholders' equity (annualised) (%)
 
 
2.4
 
10.4
 
(3.0)
 
Net interest margin (%)
 
1
 
1.43
 
1.61
 
1.58
 
Alternative performance measures
 
 
 
 
 
Adjusted revenue ($m)
 
 
26,477
 
27,815
 
26,632
 
Adjusted profit before tax ($m)
 
 
5,635
 
12,273
 
9,660
 
Adjusted cost efficiency ratio (%)
 
 
56.4
 
56.6
 
61.8
 
Annualised expected credit losses and other credit impairment charges (‘ECL’) as a % of average gross loans and advances to customers (%)
 
 
1.33
 
0.22
 
0.30
 
Return on average tangible equity (annualised) (%)
 
1, 2
 
3.8
 
11.2
 
8.4
 
 
 
 
 
 
 
 
At
 
 
 
30 Jun
 
30 Jun
 
31 Dec
 
 
 
2020
 
2019
 
2019
 
Balance sheet
 
 
 
 
 
Total assets ($m)
 
 
2,922,798
 
2,751,273
 
2,715,152
 
Net loans and advances to customers ($m)
 
 
1,018,681
 
1,021,632
 
1,036,743
 
Customer accounts ($m)
 
 
1,532,380
 
1,380,124
 
1,439,115
 
Average interest-earning assets ($m)
 
1
 
2,034,939
 
1,912,708
 
1,922,822
 
Loans and advances to customers as % of customer accounts (%)
 
 
66.5
 
74.0
 
72.0
 
Total shareholders’ equity ($m)
 
 
187,036
 
192,676
 
183,955
 
Tangible ordinary shareholders’ equity ($m)
 
 
147,879
 
145,441
 
144,144
 
Net asset value per ordinary share at period end ($)
 
3,4
 
8.17
 
8.35
 
8.00
 
Tangible net asset value per ordinary share at period end ($)
 
4
 
7.34
 
7.19
 
7.13
 
Capital, leverage and liquidity
 
 
 
 
 
Common equity tier 1 capital ratio (%)
 
5
 
15.0
 
14.3
 
14.7
 
Risk-weighted assets ($m)
 
5
 
854,552
 
885,971
 
843,395
 
Total capital ratio (%)
 
5
 
20.7
 
20.1
 
20.4
 
Leverage ratio (%)
 
5
 
5.3
 
5.4
 
5.3
 
High-quality liquid assets (liquidity value) ($bn)
 
 
654
 
533
 
601
 
Liquidity coverage ratio (%)
 
 
148
 
136
 
150
 
Share count
 
 
 
 
 
Period end basic number of $0.50 ordinary shares outstanding (millions)
 
 
20,162
 
20,221
 
20,206
 
Period end basic number of $0.50 ordinary shares outstanding and dilutive potential ordinary shares (millions)
 
 
20,198
 
20,286
 
20,280
 
Average basic number of $0.50 ordinary shares outstanding (millions)
 
 
20,162
 
20,124
 
20,191
 
Dividend per ordinary share (in respect of the period) ($)
 
1
 
 
0.20
 
0.30
 
 
For these metrics, half-year to 31 December 2019 is calculated on a full-year basis and not a 2H19 basis.
 
 
Annualised profit attributable to ordinary shareholders, excluding impairment of goodwill and other intangible assets and changes in present value of in-force insurance contracts (‘PVIF’) (net of tax), divided by average ordinary shareholders’ equity excluding goodwill, PVIF and other intangible assets (net of deferred tax).
 
 
The definition of net asset value per ordinary share is total shareholders’ equity less non-cumulative preference shares and capital securities, divided by the number of ordinary shares in issue excluding shares the company has purchased and are held in treasury.
 
 
Excludes impact of $0.10 per share dividend in 1Q19, following a June 2019 change in accounting practice on the recognition of interim dividends, from the date of declaration to the date of payment.
 
 
Unless otherwise stated, regulatory capital ratios and requirements are calculated in accordance with the transitional arrangements of the Capital Requirements Regulation in force in the EU at the time, including the regulatory transitional arrangements for IFRS 9 ‘Financial Instruments’ in article 473a. The capital ratios and requirements at 31 December 2019 and 30 June 2020 are reported in accordance with the revised Capital Requirements Regulation and Directive (‘CRR II’), as implemented, whereas the Capital Requirements Regulation and Directive (‘CRD IV’) applied at 30 June 2019. Leverage ratios are calculated using the end point definition of capital.
 
 
 
Highlights
 
 
 
 
 
Half-year to
 
 
 
30 Jun
 
30 Jun
 
 
 
2020
 
2019
 
 
Footnotes
 
$m
 
$m
 
Reported
 
 
 
 
Revenue
 
1
 
26,745
 
29,372
 
Change in expected credit losses and other credit impairment charges
 
 
(6,858)
 
(1,140)
 
Operating expenses
 
 
(16,527)
 
(17,149)
 
Profit before tax
 
 
4,318
 
12,407
 
Adjusted
 
2
 
 
 
Revenue
 
1
 
26,477
 
27,815
 
Change in expected credit losses and other credit impairment charges
 
 
(6,858)
 
(1,088)
 
Operating expenses
 
 
(14,942)
 
(15,739)
 
Profit before tax
 
 
5,635
 
12,273
 
Significant items affecting adjusted performance
 
 
 
 
Revenue
 
 
 
 
Customer redress programmes
 
 
26
 
 
Disposals, acquisitions and investment in new businesses
 
 
(8)
 
827
 
Fair value movements on financial instruments
 
3
 
299
 
50
 
Restructuring and other related costs
 
 
(49)
 
 
Operating expenses
 
 
 
 
Costs of structural reform
 
4
 
 
(91)
 
Customer redress programmes
 
 
(50)
 
(610)
 
Impairment of goodwill and other intangibles
 
 
(1,025)
 
 
Restructuring and other related costs
 
5
 
(505)
 
(287)
 
Settlements and provisions in connection with legal and regulatory matters
 
 
(5)
 
2
 
 
Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue.
 
Adjusted performance is computed by adjusting reported results for the year-on-year effects of foreign currency translation differences and significant items which distort year-on-year comparisons.
 
Includes fair value movements on non-qualifying hedges and debt valuation adjustments on derivatives.
 
Comprises costs associated with preparations for the UK’s exit from the European Union.
 
Includes impairment of software intangible assets of $173m.
 
 
 
Review by Noel Quinn, Group Chief Executive
 
 
The first six months of 2020 have been some of the most challenging in living memory. Due to the Covid-19 pandemic, much of the global economy slowed significantly and some sectors drew to a near total halt.
 
This meant two things for HSBC. First, that the financial performance of the bank inevitably suffered in line with the rest of the global economy. But second, that the real measure of our performance became our success in supporting our customers, colleagues and communities during the pandemic, and in laying the groundwork for the recovery to come.
 
Covid-19
 
In difficult times, HSBC’s job has always been to support our communities, provide stability and help build economic growth. I have been immensely proud of the way our people have delivered this purpose as the Covid-19 outbreak has unfolded.
 
Our approach has hinged on three themes – securing a continuous service for all who rely on us; providing a financial bridge for our personal and business customers beyond the crisis; and ensuring that HSBC retains the strength to help our customers thrive once restrictions begin to ease.
 
We maintained a high level of business continuity with 85% of colleagues equipped to work from home, all of our customer contact centres fully operational, and between 70% and 90% of our branches open for business in the first half. We enhanced our digital capabilities to serve more customers remotely, with faster access and improved security. We also engaged with our regulators to better enable customers to access a broad range of banking products and services from their homes, including through remote consultations and sales.
 
This underpinned our ability to get our customers the support they need. For our personal lending customers, we granted more than 700,000 payment holidays on loans, credit cards and mortgages, providing more than $27bn in customer relief in the first half of the year. For our wholesale lending customers, we provided more than $52bn of facilities to more than 172,000 customers globally over the same period, both through government schemes and our own relief initiatives.
 
As a global bank, HSBC played a vital role in keeping capital flowing for our clients, arranging more than $1.1tn of loan, debt and equity financing for our wholesale customers in the first six months of 2020. Global Banking and Markets made a direct contribution to the Covid-19 relief effort, helping to arrange more than $48bn of financing for our clients through social and Covid-19 relief bonds.
 
We also took an early decision not to apply for government support packages for employees across the countries in which we operate.
 
Throughout all of this, the well-being of our people has been our paramount concern. We have taken steps to enable our front-line colleagues to do their jobs safely and effectively. For all our colleagues, we have maintained a regular flow of communication and listened closely to their needs, providing the support and flexibility to help them manage their lives during the pandemic.
 
This has been one of the most demanding periods that I can remember for all of our people across HSBC. Many have had to juggle personal and professional priorities, while adapting to new and unfamiliar ways of working. I have been humbled by the dedication and commitment that they have shown in incredibly tough circumstances, and thank them deeply for all they have done – and are doing – for our customers, communities and each other.
 
Transformation
 
On 18 February, we announced a substantial transformation programme to ensure that HSBC is fit for the future. We published plans to reshape underperforming businesses, simplify our complex organisation and reduce our costs.
 
We are moving forward with these plans wherever we can. We have already begun combining our wholesale back office operations, and brought our retail, wealth and private banking businesses together into a single global business – Wealth and Personal Banking. Our US business has reduced its branch footprint, and Global Banking and Markets has made good early progress in reducing its risk-weighted assets. The lessons of the past six months are also being applied more broadly, particularly from parts of the business that have responded to a fast-moving situation with exceptional pace and agility.
 
The operational risks posed by the Covid-19 outbreak meant that we had to move more slowly in some areas than others. In March, I paused the redundancy programme intended to deliver the reduction in headcount we promised in February. It would have been wrong to proceed with job losses at a time of significant stress for our people and communities, and at a point when we needed to protect our capacity to serve our customers. Now, many countries have slowed the spread of the virus and are emerging from lockdown, and we have adapted to new ways of working. I therefore decided in June to lift the pause on redundancies, proceeding thoughtfully but purposefully, while taking local considerations into account.
 
Now that many governments have become better accustomed to managing the ebb and flow of the pandemic, we intend to accelerate implementation of the plans we announced in February. At the same time, our operating environment has changed significantly since the start of the year. We will also therefore look at what additional actions we need to take in light of the new economic environment to make HSBC a stronger and more sustainable business.
 
Financial performance
 
A good start to the year in January and February was overshadowed from March onwards by the Covid-19 outbreak and the impact of falling interest rates.
 
The sharp increase in expected credit losses that followed impacted all markets, but particularly those outside Asia. ECL grew further from the first to the second quarter as the economic outlook deteriorated, with increases in both stage 1 and 2 allowances. Stage 3 ECL were up overall but broadly stable during the first half, although the first quarter included a charge in Singapore unrelated to the Covid-19 crisis.
 
First half reported revenue was 9% lower than last year’s first half, due mainly to the effects of interest rate cuts made at the start of the year across our deposit franchises. By contrast, our Asia businesses showed good resilience and Global Markets grew revenue on the back of higher client activity.
 
We took further action on costs in response to the weaker revenue environment, reducing both performance-related pay and discretionary spending. Together with our ongoing cost-saving initiatives, this helped reduce reported operating expenses by 4%.
 
While these cost measures mitigated some of the adverse effects of the radically changed economic environment, reported first half profit before tax was 65% lower than the same period last year, and adjusted profit before tax fell by 54%.
 
Lending decreased by $18bn in the first half. Customers initially drew on new and existing credit lines in the first quarter in response to the Covid-19 outbreak, but began to pay these down in the second quarter as circumstances changed. Deposits rose by $93bn in the first half, as customers increased their cash reserves and reduced their spending during lockdown.
 
We continued to invest in the future of the business while managing costs down, spending $2.8bn on technology in the first six months of the year.
 
Our balance sheet remains robust with a CET1 ratio of 15.0% and strong liquidity and funding.
 
Facing the future
 
Our performance in the second half of the year will continue to be influenced by the path and economic impact of the Covid-19 outbreak. Geopolitical uncertainty could also weigh heavily on our clients, particularly those impacted by heightened US-China and UK-China tensions, and the future of UK-EU trade relations.
 
Amid the current uncertainty, we remain focused on the things we can control – helping our customers navigate their own path to a complex future, and acting with pace and decisiveness to adapt HSBC to an environment in which no business can afford to stand still.
 
HSBC has always helped our clients manage complexity. There have been many times in the last 155 years when geopolitics has altered the nature of trade, or disruptive forces have changed entire industries. On each occasion, HSBC has adapted and innovated to help our customers when they need us most, and we will do so again.
 
We start from a strong position. As the world’s leading trade bank1, we have the knowledge and network to help customers reorder their supply chains securely and sustainably. As the world’s number one bank for green, social and sustainable bonds2, we have the experience and expertise to help customers finance their transition to a cleaner, more resilient future. These are important strengths, but we have to keep investing to maintain them and to provide the agile, responsive and entrepreneurial service that our clients require.
 
Like our clients, HSBC has to operate in a difficult geopolitical environment. Current tensions between China and the US inevitably create challenging situations for an organisation with HSBC’s footprint. However, the need for a bank capable of bridging the economies of east and west is acute, and we are well placed to fulfil this role. We will face any political challenges that arise with a focus on the long-term needs of our customers and the best interests of our investors.
 
As we seek to accelerate our transformation in the second half of the year, I am mindful of the impact it will have for some of our people, particularly those leaving us. As necessary as these changes are, the human impact is a matter of deep personal regret to me. We will make sure that all those leaving HSBC as part of our transformation will be treated with fairness and consideration, and will receive support in finding new employment.
 
Finally, HSBC is a global bank serving customers from many different backgrounds. We therefore need to resemble the communities we serve. In May, we launched a new global ethnicity inclusion programme to better enable careers and career progression for colleagues from ethnic minorities, and in July, we made a series of commitments to address feedback from Black colleagues in particular. However, I want us to be judged by our actions, not our words. We will therefore provide more information about the ethnicity of our workforce in our annual reporting in February, so that our stakeholders can hold us accountable.
 
1 Euromoney, Trade Finance Survey, January 2020
 
2 Dealogic, Sustainable Finance Bond league table, 1H20
 

 
Financial summary
 
 
 
 
 
Half-year to
 
 
 
30 Jun
 
30 Jun
 
31 Dec
 
 
 
2020
 
2019
 
2019
 
 
Footnotes
 
$m
 
$m
 
$m
 
For the period
 
 
 
 
 
Profit before tax
 
 
4,318
 
12,407
 
940
 
Profit attributable to:
 
 
 
 
 
– ordinary shareholders of the parent company
 
 
1,977
 
8,507
 
(2,538)
 
Dividends on ordinary shares
 
 
 
4,206
 
6,063
 
At the period end
 
 
 
 
 
Total shareholders’ equity
 
 
187,036
 
192,676
 
183,955
 
Total regulatory capital
 
 
177,242
 
176,610
 
172,150
 
Customer accounts
 
 
1,532,380
 
1,380,124
 
1,439,115
 
Total assets
 
 
2,922,798
 
2,751,273
 
2,715,152
 
Risk-weighted assets
 
 
854,552
 
885,971
 
865,318
 
Per ordinary share
 
 
$
 
$
 
$
 
Basic earnings
 
 
0.10
 
0.42
 
(0.13)
 
Dividend per ordinary share (declared in the period)
 
1
 
 
0.31
 
0.20
 
Net asset value
 
2
 
8.17
 
8.35
 
8.00
 
 
Dividends recorded in the financial statements are dividends per ordinary share declared in a year and are not dividends in respect of, or for, that year.
 
The definition of net asset value per ordinary share is total shareholders equity, less non-cumulative preference shares and capital securities, divided by the number of ordinary shares in issue, excluding own shares held by the company, including those purchased and held in treasury.
 
Distribution of results by global business
 
 
 
Adjusted profit before tax
 
 
Half-year to
 
 
30 Jun
 
30 Jun
 
31 Dec
 
 
2020
 
2019
 
2019
 
 
$m
 
%
 
$m
 
%
 
$m
 
%
 
Wealth and Personal Banking
 
1,695
 
30.1
 
4,824
 
39.3
 
3,989
 
41.3
 
Commercial Banking
 
184
 
3.2
 
3,911
 
31.9
 
3,197
 
33.1
 
Global Banking and Markets
 
2,548
 
45.2
 
2,735
 
22.3
 
2,396
 
24.8
 
Corporate Centre
 
1,208
 
21.5
 
803
 
6.5
 
78
 
0.8
 
Profit before tax
 
5,635
 
100.0
 
12,273
 
100.0
 
9,660
 
100.0
 
 
 
Distribution of results by geographical region
 
 
 
Reported profit/(loss) before tax
 
 
 
 
 
 
 
 
Half-year to
 
 
30 Jun
 
30 Jun
 
31 Dec
 
 
2020
 
2019
 
2019
 
 
$m
 
%
 
$m
 
%
 
$m
 
%
 
Europe
 
(3,060)
 
(70.9)
 
(520)
 
(4.2)
 

 
(4,133)
 
(439.7)
 
Asia
 
7,369
 
170.7
 
9,780
 
78.8
 
 
8,688
 
924.3
 
Middle East and North Africa
 
(26)
 
(0.6)
 
1,736
 
14.0
 
 
591
 
62.9
 
North America
 
23
 
0.5
 
746
 
6.0
 
 
21
 
2.2
 
Latin America
 
12
 
0.3
 
665
 
5.4
 
 
(265)
 
(28.2)
 
Global GBM goodwill impairment
 
 
 
 
 
 
(3,962)
 
(421.5)
 
Profit before tax
 
4,318
 
100.0
 
12,407
 
100.0
 
 
940
 
100.0
 
 
 
 
HSBC adjusted profit before tax and balance sheet data
 
 
 
Half-year to 30 Jun 2020
 
 
 
Wealth and Personal Banking
 
CommercialBanking
 
GlobalBanking and Markets
 
Corporate Centre
 
Total
 
 
Footnotes
 
$m
 
$m
 
$m
 
$m
 
$m
 
Net operating income before change in expected credit losses and other credit impairment charges
 
1
 
11,251
 
7,000
 
8,178
 
48
 
26,477
 
– external
 
 
9,684
 
7,431
 
10,105
 
(743)
 
26,477
 
– inter-segment
 
 
1,567
 
(431)
 
(1,927)
 
791
 
 
of which: net interest income/(expense)
 
 
8,032
 
4,883
 
2,372
 
(804)
 
14,483
 
Change in expected credit losses and other credit impairment charges
 
 
(2,202)
 
(3,526)
 
(1,118)
 
(12)
 
(6,858)
 
Net operating income
 
 
9,049
 
3,474
 
7,060
 
36
 
19,619
 
Total operating expenses
 
 
(7,346)
 
(3,290)
 
(4,512)
 
206
 
(14,942)
 
Operating profit
 
 
1,703
 
184
 
2,548
 
242
 
4,677
 
Share of profit in associates and joint ventures
 
 
(8)
 
 
 
966
 
958
 
Adjusted profit before tax
 
 
1,695
 
184
 
2,548
 
1,208
 
5,635
 
 
 
%
 
%
 
%
 
%
 
%
 
Share of HSBC’s adjusted profit before tax
 
 
30.1
 
3.3
 
45.2
 
21.4
 
100.0
 
Adjusted cost efficiency ratio
 
 
65.3
 
47.0
 
55.2
 
(429.2)
 
56.4
 
Adjusted balance sheet data
 
 
$m
 
$m
 
$m
 
$m
 
$m
 
Loans and advances to customers (net)
 
 
429,487
 
344,567
 
243,355
 
1,272
 
1,018,681
 
Interests in associates and joint ventures
 
 
425
 
13
 
136
 
24,226
 
24,800
 
Total external assets
 
 
814,719
 
549,530
 
1,390,006
 
168,543
 
2,922,798
 
Customer accounts
 
 
775,870
 
418,263
 
337,573
 
674
 
1,532,380
 
Adjusted risk-weighted assets
 
3
 
161,744
 
330,887
 
277,633
 
84,288
 
854,552
 
 
 
 
 
Half-year to 30 Jun 20192
 
Net operating income/(expense) before change in expected credit losses and other credit impairment charges
1
 
12,861
 
7,647
 
7,590
 
(283)
 
27,815
 
– external
 
 
10,747
 
8,087
 
10,258
 
(1,277)
 
27,815
 
– inter-segment
 
 
2,114
 
(440)
 
(2,668)
 
994
 
 
of which: net interest income/(expense)
 
 
8,525
 
5,466
 
2,667
 
(1,761)
 
14,897
 
Change in expected credit losses and other credit impairment (charges)/recoveries
 
(527)
 
(478)
 
(97)
 
14
 
(1,088)
 
Net operating income/(expense)
 
 
12,334
 
7,169
 
7,493
 
(269)
 
26,727
 
Total operating expenses
 
 
(7,551)
 
(3,258)
 
(4,758)
 
(172)
 
(15,739)
 
Operating profit/(loss)
 
 
4,783
 
3,911
 
2,735
 
(441)
 
10,988
 
Share of profit in associates and joint ventures
 
 
41
 
 
 
1,244
 
1,285
 
Adjusted profit before tax
 
 
4,824
 
3,911
 
2,735
 
803
 
12,273
 
 
 
%
 
%
 
%
 
%
 
%
 
Share of HSBC’s adjusted profit before tax
 
 
39.3
 
31.9
 
22.3
 
6.5
 
100.0
 
Adjusted cost efficiency ratio
 
 
58.7
 
42.6
 
62.7
 
(60.8)
 
56.6
 
Adjusted balance sheet data
 
 
$m
 
$m
 
$m
 
$m
 
$m
 
Loans and advances to customers (net)
 
 
414,611
 
340,976
 
246,209
 
1,184
 
1,002,980
 
Interests in associates and joint ventures
 
 
451
 
12
 
14
 
23,046
 
23,523
 
Total external assets
 
 
729,032
 
506,223
 
1,319,642
 
148,668
 
2,703,565
 
Customer accounts
 
 
714,969
 
354,806
 
286,867
 
505
 
1,357,147
 
Adjusted risk-weighted assets
 
3
 
160,993
 
331,912
 
298,777
 
77,272
 
868,954
 
 
Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue.
 
2 
A change in reportable segments was made in 2Q20. Comparative data have been re-presented accordingly. For further guidance, refer to Note 5 on page 100 of the Interim Report 2020.
 
Adjusted risk-weighted assets are calculated using reported risk-weighted assets adjusted for the effects of currency translation differences and significant items.
 
 
 
 
HSBC adjusted profit before tax and balance sheet data (continued)
 
 
 
 
Half-year to 31 Dec 20193
 
 
 
Wealth and Personal Banking
 
CommercialBanking
 
GlobalBanking and Markets
 
Corporate Centre
 
Total
 
 
Footnotes
 
$m
 
$m
 
$m
 
$m
 
$m
 
Net operating income/(expense) before change in expected credit losses and other credit impairment charges
1
 
12,492
 
7,379
 
7,113
 
(352)
 
26,632
 
– external
 
 
10,320
 
7,871
 
9,886
 
(1,445)
 
26,632
 
– inter-segment
 
 
2,172
 
(492)
 
(2,773)
 
1,093
 
 
of which: net interest income/(expense)
 
 
8,769
 
5,409
 
2,533
 
(1,495)
 
15,216
 
Change in expected credit losses and other credit impairment (charges)/recoveries
 
 
(829)
 
(684)
 
(61)
 
20
 
(1,554)
 
Net operating income/(expense)
 
 
11,663
 
6,695
 
7,052
 
(332)
 
25,078
 
Total operating expenses
 
 
(7,685)
 
(3,498)
 
(4,656)
 
(609)
 
(16,448)
 
Operating profit/(loss)
 
 
3,978
 
3,197
 
2,396
 
(941)
 
8,630
 
Share of profit in associates and joint ventures
 
 
11
 
 
 
1,019
 
1,030
 
Adjusted profit before tax
 
 
3,989
 
3,197
 
2,396
 
78
 
9,660
 
 
 
%
 
%
 
%
 
%
 
%
 
Share of HSBC’s adjusted profit before tax
 
 
41.3
 
33.1
 
24.8
 
0.8
 
100.0
 
Adjusted cost efficiency ratio
 
 
61.5
 
47.4
 
65.5
 
(173.0)
 
61.8
 
Adjusted balance sheet data
 
 
$m
 
$m
 
$m
 
$m
 
$m
 
Loans and advances to customers (net)
 
 
428,834
 
336,345
 
240,411
 
1,071
 
1,006,661
 
Interests in associates and joint ventures
 
 
445
 
13
 
13
 
23,760
 
24,231
 
Total external assets
 
 
754,369
 
496,757
 
1,233,829
 
153,539
 
2,638,494
 
Customer accounts
 
 
735,301
 
377,691
 
285,954
 
710
 
1,399,656
 
Adjusted risk-weighted assets
 
2
 
157,777
 
315,605
 
267,075
 
80,807
 
821,264
 
 
Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue.
 
Adjusted risk-weighted assets are calculated using reported risk-weighted assets adjusted for the effects of currency translation differences and significant items.
 
A change in reportable segments was made in 2Q20. Comparative data have been presented accordingly.
 
 
 
Consolidated income statement
 
 
Half-year to
 
 
30 Jun
 
30 Jun
 
31 Dec
 
 
2020
 
2019
 
2019
 
 
$m
 
$m
 
$m
 
Net interest income
 
14,509
 
15,240
 
15,222
 
– interest income
 
23,000
 
27,750
 
26,945
 
– interest expense
 
(8,491)
 
(12,510)
 
(11,723)
 
Net fee income
 
5,926
 
6,124
 
5,899
 
– fee income
 
7,480
 
7,804
 
7,635
 
– fee expense
 
(1,554)
 
(1,680)
 
(1,736)
 
Net income from financial instruments held for trading or managed on a fair value basis
 
5,768
 
5,331
 
4,900
 
Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss
 
(1,290)
 
2,196
 
1,282
 
Change in fair value of designated debt and related derivatives
 
197
 
88
 
2
 
Changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss
 
80
 
457
 
355
 
Gains less losses from financial investments
 
466
 
201
 
134
 
Net insurance premium income
 
5,020
 
6,323
 
4,313
 
Other operating income
 
471
 
2,072
 
885
 
Total operating income
 
31,147
 
38,032
 
32,992
 
Net insurance claims and benefits paid and movement in liabilities to policyholders
 
(4,402)
 
(8,660)
 
(6,266)
 
Net operating income before change in expected credit losses and other credit impairment charges
 
26,745
 
29,372
 
26,726
 
Change in expected credit losses and other credit impairment charges
 
(6,858)
 
(1,140)
 
(1,616)
 
Net operating income
 
19,887
 
28,232
 
25,110
 
Employee compensation and benefits
 
(8,514)
 
(9,255)
 
(8,747)
 
General and administrative expenses
 
(4,918)
 
(6,372)
 
(7,456)
 
Depreciation and impairment of property, plant and equipment and right-of-use assets
 
(1,209)
 
(1,010)
 
(1,090)
 
Amortisation and impairment of intangible assets
 
(1,845)
 
(512)
 
(558)
 
Goodwill impairment
 
(41)
 
 
(7,349)
 
Total operating expenses
 
(16,527)
 
(17,149)
 
(25,200)
 
Operating profit/(loss)
 
3,360
 
11,083
 
(90)
 
Share of profit in associates and joint ventures
 
958
 
1,324
 
1,030
 
Profit before tax
 
4,318
 
12,407
 
940
 
Tax expense
 
(1,193)
 
(2,470)
 
(2,169)
 
Profit/(loss) for the period
 
3,125
 
9,937
 
(1,229)
 
Attributable to:
 
 
 
 
– ordinary shareholders of the parent company
 
1,977
 
8,507
 
(2,538)
 
– preference shareholders of the parent company
 
45
 
45
 
45
 
– other equity holders
 
617
 
664
 
660
 
– non-controlling interests
 
486
 
721
 
604
 
Profit/(loss) for the period
 
3,125
 
9,937
 
(1,229)
 
 
$
 
$
 
$
 
Basic earnings per ordinary share
 
0.10
 
0.42
 
(0.13)
 
Diluted earnings per ordinary share
 
0.10
 
0.42
 
(0.13)
 
 
 
 
Consolidated statement of comprehensive income
 
 
Half-year to
 
 
30 Jun
 
30 Jun
 
31 Dec
 
 
2020
 
2019
 
2019
 
 
$m
 
$m
 
$m
 
Profit/(loss) for the period
 
3,125
 
9,937
 
(1,229)
 
Other comprehensive income/(expense)
 
 
 
 
Items that will be reclassified subsequently to profit or loss when specific conditions are met:
 
 
 
 
Debt instruments at fair value through other comprehensive income
 
1,747
 
1,015
 
137
 
– fair value gains/(losses)
 
2,654
 
2,141
 
(348)
 
– fair value (gains)/losses transferred to the income statement on disposal
 
(454)
 
(794)
 
429
 
– expected credit recoveries/(losses) recognised in the income statement
 
109
 
(5)
 
114
 
– income taxes
 
(562)
 
(327)
 
(58)
 
Cash flow hedges
 
476
 
239
 
(33)
 
– fair value gains
 
255
 
241
 
310
 
– fair value losses/(gains) reclassified to the income statement
364
 
68
 
(354)
 
– income taxes and other movements
 
(143)
 
(70)
 
11
 
Share of other comprehensive income/(expense) of associates and joint ventures
 
(115)
 
73
 
(52)
 
– share for the period
 
(115)
 
85
 
(64)
 
– fair value (gains)/losses transferred to the income statement on disposal
 
 
(12)
 
12
 
Exchange differences
 
(4,552)
 
109
 
935
 
Items that will not be reclassified subsequently to profit or loss:
 
 
 
 
Remeasurement of defined benefit asset/liability
 
1,182
 
(45)
 
58
 
– before income taxes
 
1,703
 
(50)
 
33
 
– income taxes
 
(521)
 
5
 
25
 
Changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk
 
2,354
 
(1,445)
 
(557)
 
– before income taxes
2,936
 
(1,816)
 
(823)
 
– income taxes
(582)
 
371
 
266
 
Equity instruments designated at fair value through other comprehensive income
 
(123)
 
268
 
98
 
– fair value gains/(losses)
 
(122)
 
265
 
99
 
– income taxes
 
(1)
 
3
 
(1)
 
Effects of hyperinflation
 
72
 
113
 
104
 
Other comprehensive expense for the period, net of tax
 
1,041
 
327
 
690
 
Total comprehensive income/(expense) for the period
4,166
 
10,264
 
(539)
 
Attributable to:
 
 
 
 
– ordinary shareholders of the parent company
 
3,043
 
8,741
 
(1,903)
 
– preference shareholders of the parent company
 
45
 
45
 
45
 
– other equity holders
 
617
 
664
 
660
 
– non-controlling interests
 
461
 
814
 
659
 
Total comprehensive income/(expense) for the period
4,166
 
10,264
 
(539)
 
 
 
 
Consolidated balance sheet
 
 
At
 
 
30 Jun
 
31 Dec
 
 
2020
 
2019
 
 
$m
 
$m
 
Assets
 
 
 
Cash and balances at central banks
 
249,673
 
154,099
 
Items in the course of collection from other banks
 
6,289
 
4,956
 
Hong Kong Government certificates of indebtedness
 
39,519
 
38,380
 
Trading assets
 
208,964
 
254,271
 
Financial assets designated and otherwise mandatorily measured at fair value through profit and loss
 
41,785
 
43,627
 
Derivatives
 
313,781
 
242,995
 
Loans and advances to banks
 
77,015
 
69,203
 
Loans and advances to customers
 
1,018,681
 
1,036,743
 
Reverse repurchase agreements – non-trading
 
226,345
 
240,862
 
Financial investments
 
494,109
 
443,312
 
Prepayments, accrued income and other assets
 
197,425
 
136,680
 
Current tax assets
 
821
 
755
 
Interests in associates and joint ventures
 
24,800
 
24,474
 
Goodwill and intangible assets
 
19,438
 
20,163
 
Deferred tax assets
 
4,153
 
4,632
 
Total assets
 
2,922,798
 
2,715,152
 
Liabilities and equity
 
 
 
Liabilities
 
 
 
Hong Kong currency notes in circulation
 
39,519
 
38,380
 
Deposits by banks
 
82,715
 
59,022
 
Customer accounts
 
1,532,380
 
1,439,115
 
Repurchase agreements – non-trading
 
112,799
 
140,344
 
Items in the course of transmission to other banks
 
6,296
 
4,817
 
Trading liabilities
 
79,612
 
83,170
 
Financial liabilities designated at fair value
 
156,608
 
164,466
 
Derivatives
 
303,059
 
239,497
 
Debt securities in issue
 
110,114
 
104,555
 
Accruals, deferred income and other liabilities
 
173,181
 
118,156
 
Current tax liabilities
 
1,141
 
2,150
 
Liabilities under insurance contracts
 
98,832
 
97,439
 
Provisions
 
3,209
 
3,398
 
Deferred tax liabilities
 
4,491
 
3,375
 
Subordinated liabilities
 
23,621
 
24,600
 
Total liabilities
 
2,727,577
 
2,522,484
 
Equity
 
 
 
Called up share capital
 
10,346
 
10,319
 
Share premium account
 
14,268
 
13,959
 
Other equity instruments
 
20,914
 
20,871
 
Other reserves
 
(301)
 
2,127
 
Retained earnings
 
141,809
 
136,679
 
Total shareholders’ equity
 
187,036
 
183,955
 
Non-controlling interests
 
8,185
 
8,713
 
Total equity
 
195,221
 
192,668
 
Total liabilities and equity
 
2,922,798
 
2,715,152
 
 
 
 
Consolidated statement of cash flows
 
 
Half-year to
 
 
30 Jun
 
30 Jun
 
31 Dec
 
 
2020
 
2019
 
2019
 
 
$m
 
$m
 
$m
 
Profit before tax
 
4,318
 
12,407
 
940
 
Adjustments for non-cash items:
 
 
 
 
Depreciation, amortisation and impairment
 
3,095
 
1,522
 
8,997
 
Net gain from investing activities
 
(405)
 
(352)
 
(47)
 
Share of profits in associates and joint ventures
 
(958)
 
(1,324)
 
(1,030)
 
Gain on disposal of subsidiaries, businesses, associates and joint ventures
 
 
(828)
 
(101)
 
Change in expected credit losses gross of recoveries and other credit impairment charges
 
6,875
 
1,347
 
1,665
 
Provisions including pensions
 
277
 
1,012
 
1,411
 
Share-based payment expense
 
195
 
288
 
190
 
Other non-cash items included in profit before tax
 
(718)
 
(1,401)
 
(896)
 
Change in operating assets
11,185
 
(114,049)
 
9,818
 
Change in operating liabilities
134,734
 
136,627
 
(20,544)
 
Elimination of exchange differences1
 
3,775
 
(10,266)
 
6,524
 
Dividends received from associates
120
 
170
 
463
 
Contributions paid to defined benefit plans
(335)
 
(153)
 
(380
 
Tax paid
 
(2,373)
 
(1,347)
 
(920
 
Net cash from operating activities
 
159,785
 
23,653
 
6,090
 
Purchase of financial investments
 
(271,830)
 
(234,762)
 
(211,145)
 
Proceeds from the sale and maturity of financial investments
 
225,733
 
204,600
 
208,586
 
Net cash flows from the purchase and sale of property, plant and equipment
 
(447)
 
(532)
 
(811)
 
Net cash flows from purchase of customer and loan portfolios
 
244
 
435
 
683
 
Net investment in intangible assets
 
(957)
 
(951)
 
(1,338)
 
Net cash flow on (purchase)/disposal of subsidiaries, businesses, associates and joint ventures
 
(409)
 
(75)
 
(8)
 
Net cash from investing activities
 
(47,666)
 
(31,285)
 
(4,033)
 
Cancellation of shares
 
 
 
(1,000)
 
Net sales/(purchases) of own shares for market-making and investment purposes
 
(48)
 
27
 
114
 
Redemption of preference shares and other equity instruments
 
(398)
 
 
 
Subordinated loan capital repaid
 
(1,538)
 
(4,138)
 
(72)
 
Dividends paid to shareholders of the parent company and non-controlling interests
(1,204)
 
(4,271)
 
(5,502)
 
Net cash from financing activities
 
(3,188)
 
(8,382)
 
(6,460)
 
Net increase/(decrease) in cash and cash equivalents
 
108,931
 
(16,014)
 
(4,403)
 
Cash and cash equivalents at the beginning of the period2
 
293,742
 
312,911
 
296,723
 
Exchange differences in respect of cash and cash equivalents
 
(7,455)
 
(174)
 
1,422
 
Cash and cash equivalents at the end of the period2
 
395,218
 
296,723
 
293,742
 
 
Adjustments to bring changes between opening and closing balance sheet amounts to average rates. This is not done on a line-by-line basis, as details cannot be determined without unreasonable expense.
 
At 31 December 2019, HSBC re-presented cash and cash equivalents to reflect a consistent global approach to these amounts. The net effect of these changes decreased cash and cash equivalents by $15.3bn at 30 June 2019.
 
Consolidated statement of changes in equity
 
 
 
 
 
Other reserves
 
 
 
 
 
Called up sharecapital and share premium
 
Otherequity instru-ments
 
Retainedearnings
 
Financial assets at FVOCI reserve
 
Cashflow hedging reserve
 
Foreignexchange reserve
 
Merger and otherreserves
 
Total share-holders’ equity
 
Non-controlling interests
 
Total equity
 
 
$m
 
$m
 
$m
 
$m
 
$m
 
$m
 
$m
 
$m
 
$m
 
$m
 
At 1 Jan 2020
 
24,278
 
 
20,871
 
 
136,679
 
 
(108
 
)
 
(2
 
)
 
(25,133
 
)
 
27,370
 
 
183,955
 
 
8,713
 
 
192,668
 
 
Profit for the period
 
 
 
 
 
2,639
 
 
 
 
 
 
 
 
 
 
2,639
 
 
486
 
 
3,125
 
 
Other comprehensive income (net of tax)
 
 
 
 
 
3,506
 
 
1,654
 
 
465
 
 
(4,559
 
)
 
 
 
1,066
 
 
(25
 
)
 
1,041
 
 
– debt instruments at fair value through other comprehensive income
 
 
 
 
 
 
 
1,735
 
 
 
 
 
 
 
 
1,735
 
 
12
 
 
1,747
 
 
– equity instruments designated at fair value through other comprehensive income
 
 
 
 
 
 
 
(81
 
)
 
 
 
 
 
 
 
(81
 
)
 
(42
 
)
 
(123
 
)
 
– cash flow hedges
 
 
 
 
 
 
 
 
 
465
 
 
 
 
 
 
465
 
 
11
 
 
476
 
 
– changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk
 
 
 
 
 
2,354
 
 
 
 
 
 
 
 
 
 
2,354
 
 
 
 
2,354
 
 
– remeasurement of defined benefit asset/liability
 
 
 
 
 
1,195
 
 
 
 
 
 
 
 
 
 
1,195
 
 
(13
 
)
 
1,182
 
 
– share of other comprehensive income of associates and joint ventures
 
 
 
 
 
(115
 
)
 
 
 
 
 
 
 
 
 
(115
 
)
 
 
 
(115
 
)
 
– effects of hyperinflation
 
 
 
 
 
72
 
 
 
 
 
 
 
 
 
 
72
 
 
 
 
72
 
 
– exchange differences
 
 
 
 
 
 
 
 
 
 
 
(4,559
 
)
 
 
 
(4,559
 
)
 
7
 
 
(4,552
 
)
 
Total comprehensive income for the period
 
 
 
 
 
6,145
 
 
1,654
 
 
465
 
 
(4,559
 
)
 
 
 
3,705
 
 
461
 
 
4,166
 
 
Shares issued under employee remuneration and share plans
 
336
 
 
 
 
(329
 
)
 
 
 
 
 
 
 
 
 
7
 
 
 
 
7
 
 
Dividends to shareholders
 
 
 
 
 
(662
 
)
 
 
 
 
 
 
 
 
 
(662
 
)
 
(542
 
)
 
(1,204
 
)
 
Cost of share-based payment arrangements
 
 
 
 
 
195
 
 
 
 
 
 
 
 
 
 
195
 
 
 
 
195
 
 
Other movements
 
 
 
43
 
 
(219
 
)
 
12
 
 
 
 
 
 
 
 
(164
 
)
 
(447
 
)
 
(611
 
)
 
At 30 Jun 2020
 
24,614
 
 
20,914
 
 
141,809
 
 
1,558
 
 
463
 
 
(29,692
 
)
 
27,370
 
 
187,036
 
 
8,185
 
 
195,221
 
 
 
At 1 Jan 2019
 
23,789
 
 
22,367
 
 
138,191
 
 
(1,532
 
)
 
(206
 
)
 
(26,133
 
)
 
29,777
 
 
186,253
 
 
7,996
 
 
194,249
 
 
Profit for the period
 
 
 
 
 
9,216
 
 
 
 
 
 
 
 
 
 
9,216
 
 
721
 
 
9,937
 
 
Other comprehensive income (net of tax)
 
 
 
 
 
(1,297
 
)
 
1,202
 
 
237
 
 
92
 
 
 
 
234
 
 
93
 
 
327
 
 
– debt instruments at fair value through other comprehensive income
 
 
 
 
 
 
 
1,001
 
 
 
 
 
 
 
 
1,001
 
 
14
 
 
1,015
 
 
– equity instruments designated at fair value through other comprehensive income
 
 
 
 
 
 
 
201
 
 
 
 
 
 
 
 
201
 
 
67
 
 
268
 
 
– cash flow hedges
 
 
 
 
 
 
 
 
 
237
 
 
 
 
 
 
237
 
 
2
 
 
239
 
 
– changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk
 
 
 
 
 
(1,445
 
)
 
 
 
 
 
 
 
 
 
(1,445
 
)
 
 
 
(1,445
 
)
 
– remeasurement of defined benefit asset/liability
 
 
 
 
 
(38
 
)
 
 
 
 
 
 
 
 
 
(38
 
)
 
(7
 
)
 
(45
 
)
 
– share of other comprehensive income of associates and joint ventures
 
 
 
 
 
73
 
 
 
 
 
 
 
 
 
 
73
 
 
 
 
73
 
 
– effects of hyperinflation
 
 
 
 
 
113
 
 
 
 
 
 
 
 
 
 
113
 
 
 
 
113
 
 
– exchange differences
 
 
 
 
 
 
 
 
 
 
 
92
 
 
 
 
92
 
 
17
 
 
109
 
 
Total comprehensive income for the period
 
 
 
 
 
7,919
 
 
1,202
 
 
237
 
 
92
 
 
 
 
9,450
 
 
814
 
 
10,264
 
 
Shares issued under employee remuneration and share plans
 
490
 
 
 
 
(475
 
)
 
 
 
 
 
 
 
 
 
15
 
 
 
 
15
 
 
Shares issued in lieu of dividends and amounts arising thereon
 
 
 
 
 
1,160
 
 
 
 
 
 
 
 
 
 
1,160
 
 
 
 
1,160
 
 
Dividends to shareholders
 
 
 
 
 
(4,915
 
)
 
 
 
 
 
 
 
 
 
(4,915
 
)
 
(516
 
)
 
(5,431
 
)
 
Cost of share-based payment arrangements
 
 
 
 
 
255
 
 
 
 
 
 
 
 
 
 
255
 
 
 
 
255
 
 
Other movements
 
 
 
 
 
458
 
 
 
 
 
 
 
 
 
 
458
 
 
(96
 
)
 
362
 
 
At 30 Jun 2019
 
24,279
 
 
22,367
 
 
142,593
 
 
(330
 
)
 
31
 
 
(26,041
 
)
 
29,777
 
 
192,676
 
 
8,198
 
 
200,874
 
 
 
 
 
 
 
 
 
Consolidated statement of changes in equity (continued)
 
 
 
 
 
Other reserves
 
 
 
 
 
Called upshare capital and share premium
 
Otherequity instru- ments
 
Retainedearnings
 
Financial assets at FVOCI reserve
 
Cashflow hedging reserve
 
Foreign exchange reserve
 
Merger and other reserves
 
Totalshare- holders’ equity
 
Non-controlling interests
 
Totalequity
 
 
$m
 
$m
 
$m
 
$m
 
$m
 
$m
 
$m
 
$m
 
$m
 
$m
 
At 1 Jul 2019
 
24,279
 
 
22,367
 
 
142,593
 
 
(330
 
)
 
31
 
 
(26,041
 
)
 
29,777
 
 
192,676
 
 
8,198
 
 
200,874
 
 
Profit for the period
 
 
 
 
 
(1,833
 
)
 
 
 
 
 
 
 
 
 
(1,833
 
)
 
604
 
 
(1,229
 
)
 
Other comprehensive income(net of tax)
 
 
 
 
 
(462
 
)
 
222
 
 
(33
 
)
 
908
 
 
 
 
635
 
 
55
 
 
690
 
 
– debt instruments at fair value through other comprehensive income
 
 
 
 
 
 
 
145
 
 
 
 
 
 
 
 
145
 
 
(8
 
)
 
137
 
 
– equity instruments designated at fair value through other comprehensive income
 
 
 
 
 
 
 
77
 
 
 
 
 
 
 
 
77
 
 
21
 
 
98
 
 
– cash flow hedges
 
 
 
 
 
 
 
 
 
(33
 
)
 
 
 
 
 
(33
 
)