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 2018

Commission File Number: 001-14930

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 if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   ______
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   ______


(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- ..............).
 




Pillar 3 Disclosures at 30 June 2018

Contents
 
Page
Regulatory framework for disclosures
Pillar 3 disclosures
Regulatory developments
Structure of the regulatory group
Capital and RWAs
Own funds
Leverage ratio
Capital buffers
Pillar 1 minimum capital requirements and RWA flow
Credit risk
Credit quality of assets
Defaulted exposures
Risk mitigation
Counterparty credit risk
Securitisation
Market risk
Other information
Abbreviations
Cautionary statement regarding forward-looking statements
Contacts
Certain defined terms
Unless the context requires otherwise, ‘HSBC Holdings’ means HSBC Holdings plc and ‘HSBC’, the ‘Group’, ‘we’, ‘us’ and ‘our’ refer to HSBC Holdings together with its subsidiaries. Within this document the Hong Kong Special Administrative Region of the People’s Republic of China is referred to as ‘Hong Kong’. When used in the terms ‘shareholders’ equity’ and ‘total shareholders’ equity’, ‘shareholders’ means holders of HSBC Holdings ordinary shares and those preference shares and capital securities issued by HSBC Holdings classified as equity. The abbreviations ‘$m’, ‘$bn’ and ‘$tn’ represent millions, billions (thousands of millions) and trillions of US dollars, respectively.
 
Tables
 
 
Ref
Page
1
Key metrics
a
2
Reconciliation of balance sheets – financial accounting to regulatory scope of consolidation
 
3
Own funds disclosure
b
4
Summary reconciliation of accounting assets and leverage ratio exposures
b
5
Leverage ratio common disclosure
a
6
Leverage ratio – Split of on-balance sheet exposures (excluding derivatives, SFTs and exempted exposures)
a
7
Overview of RWAs
b
8
RWA flow statements of credit risk exposures under IRB
 
9
RWA flow statements of CCR exposures under the IMM
 
10
RWA flow statements of market risk exposures under the IMA
 
11
Credit quality of exposures by exposure class and instrument1
 
12
Credit quality of exposures by industry or counterparty types
 
13
Credit quality of exposures by geography
 
14
Ageing of past-due unimpaired and impaired exposures
 
15
Non-performing and forborne exposures
 
16
Changes in the stock of general and specific credit risk adjustments
 
17
Changes in stock of defaulted loans and debt securities
 
18
Credit risk mitigation techniques – overview
 
19
Standardised approach – credit conversion factor (‘CCF’) and credit risk mitigation (‘CRM’) effects
b
20
Standardised approach – exposures by asset classes and risk weights
b
21
IRB – Credit risk exposures by portfolio and PD range
a
22
IRB – Effect on RWA of credit derivatives used as CRM techniques
 
23
Specialised lending
 
24
Analysis of counterparty credit risk (‘CCR’) exposure by approach (excluding centrally cleared exposures)
 
25
Credit valuation adjustment (‘CVA’) capital charge
 
26
Standardised approach – CCR exposures by regulatory portfolio and risk weights
 
27
IRB – CCR exposures by portfolio and PD scale
 
28
Impact of netting and collateral held on exposure values
 
29
Composition of collateral for CCR exposure
 
30
Exposures to central counterparties
 
31
Credit derivatives exposures
 
32
Securitisation exposures in the non-trading book
 
33
Securitisation exposures in the trading book
 
34
Securitisation exposures in the non-trading book and associated regulatory capital requirements – bank acting as originator or as sponsor
 
35
Securitisation exposures in the non-trading book and associated capital requirements – bank acting as investor
 
36
Market risk under standardised approach
 
37
Market risk under IMA
 
38
IMA values for trading portfolios
 
39
Comparison of VaR estimates with gains/losses
 
The Group has adopted the EU’s regulatory transitional arrangements for IFRS 9 ‘Financial instruments’. A number of tables in this document report under this arrangement as follows:
a.
Some figures for 2018 (as indicated ^) within this table have been prepared on an IFRS 9 transitional basis
b.
All figures within this table have been prepared on an IFRS 9 transitional basis
All other tables report numbers on the basis of full adoption of IFRS 9.


1
HSBC Holdings plc


Regulatory framework for disclosures
HSBC is supervised on a consolidated basis in the United Kingdom (‘UK’) by the Prudential Regulation Authority (‘PRA’), which receives information on the capital adequacy of, and sets capital requirements for, the Group as a whole. Individual banking subsidiaries are directly regulated by their local banking supervisors, who set and monitor their local capital adequacy requirements. In most jurisdictions, non-banking financial subsidiaries are also subject to the supervision and capital requirements of local regulatory authorities.
At a consolidated Group level, we calculate capital for prudential regulatory reporting purposes using the Basel III framework of the Basel Committee on Banking Supervision (the ‘Basel Committee’) as implemented by the European Union (‘EU’) in the amended Capital Requirements Directive and Regulation (‘CRD IV’), and in the PRA Rulebook for the UK banking industry. The regulators of Group banking entities outside the EU are at varying stages of implementation of the Basel III framework, so local regulation in 2018 may have been on the basis of the Basel I, II or III frameworks.
The Basel III framework is structured around three ‘pillars’: the Pillar 1 minimum capital requirements and Pillar 2 supervisory review process are complemented by Pillar 3 which concerns market discipline. The aim of Pillar 3 is to produce disclosures that allow market participants to assess the scope of application by banks of the Basel Committee’s framework and the rules in their jurisdiction, their capital condition, risk exposures and risk management processes, and hence their capital adequacy.
The PRA’s final rules adopted national discretions in order to accelerate significantly the transition timetable to full ‘end point’ CRD IV compliance.
Pillar 3 disclosures
Our Pillar 3 Disclosures at 30 June 2018 comprise information required under Pillar 3, both quantitative and qualitative. They are made in accordance with Part 8 of the Capital Requirements Regulation within CRD IV and as recommended by the European Banking Authority (‘EBA’) guidelines on disclosure requirements issued in December 2016. Additionally, we continue to present a number of Basel Committee’s templates where these do not overlap with the EBA guidelines. These disclosures are supplemented by specific additional requirements of the PRA and discretionary disclosures on our part.
The Pillar 3 disclosures are governed by the Group’s disclosure policy framework as approved by the Group Audit Committee (‘GAC’). Pillar 3 requires all material risks to be disclosed, enabling a comprehensive view of a bank’s risk profile.
Where disclosures have been enhanced, or are new, we do not generally restate or provide prior-year comparatives. The capital resources tables track the position from a CRD IV transitional to an end point basis. Furthermore, specific rows and columns in the tables which are not considered to be relevant to HSBC’s activities have been omitted. We also omit rows and columns where both current and comparative disclosures are immaterial.
Pillar 3 requirements may be met by inclusion in other disclosure media. Where we adopt this approach, references are provided to the relevant pages of the Interim Report 2018 or to other locations.
We continue to engage constructively with the UK authorities and industry associations to improve the transparency and comparability of UK banks’ Pillar 3 disclosures.

 
Regulatory developments
Risk-weighted assets (‘RWAs’) and leverage ratio
Basel Committee
In December 2017, the Basel Committee (‘Basel’) published revisions to the Basel III framework. The final package includes:
widespread changes to the risk weights under the standardised approach to credit risk;
a change in the scope of application of the internal ratings based (‘IRB’) approach to credit risk, together with changes to the IRB methodology;
the replacement of the operational risk approaches with a single methodology;
an amended set of rules for the credit valuation adjustment (‘CVA’) capital framework;
an aggregate output capital floor that ensures that banks’ total RWAs are no lower than 72.5% of those generated by the standardised approaches; and
changes to the exposure measure for the leverage ratio, together with the imposition of a leverage ratio buffer for global systemically important banks (‘G-SIB’). This will take the form of a tier 1 capital buffer set at 50% of the G-SIB’s RWAs capital buffer.
Basel has announced that the package will be implemented on
1 January 2022, with a five-year transitional provision for the output floor from that date, commencing at a rate of 50%.
HSBC continues to evaluate the final Basel III reform package. Given that the package contains a significant number of national discretions and that Basel is in the process of recalibrating the market risk and CVA elements of the final framework, significant uncertainty remains as to the impact.
In all instances, the final standards will have to be transposed into the relevant local law before coming into effect.
European Union
In the EU, elements of Basel’s reforms are being implemented through revisions to the Capital Requirements Regulation and Capital Requirements Directive (collectively referred to as ‘CRR2’). In relation to RWAs and the leverage ratio, the changes include the fundamental review of the trading book (‘FRTB’), changes to the counterparty credit risk framework and a binding leverage ratio. The CRR2 changes are expected to complete in the second half of 2018 and apply from 1 January 2021, although certain elements, such as those related to the ‘Minimum Requirements for own funds and Eligible Liabilities’ (‘MREL’), are expected to apply earlier.
In May 2018, the European Commission requested that the EBA perform a quantitative and qualitative impact analysis of the Basel III reforms on the EU banking sector and the wider economy, including an assessment of the final FRTB standards currently subject to recalibration by Basel. This impact analysis is expected to commence in August 2018. The EBA’s final report on the adoption of Basel’s reforms is not due to be published until the end of June 2019.
Bank of England
In May 2018, the PRA published a consultation that sets out its approach to the new EU securitisation regulations. The regime is to apply from 1 January 2019 for new transactions and from
1 January 2020 for existing transactions.

HSBC Holdings plc
2


Pillar 3 Disclosures at 30 June 2018

Capital resources, resolution and total loss absorbing capacity (‘TLAC’)
Financial Stability Board
In June 2018, the Financial Stability Board (‘FSB’) published a call for feedback on the technical implementation of its standard on TLAC for G-SIBs in resolution (‘the TLAC standard’). This will assess whether the implementation of the TLAC standard is proceeding as envisaged and may be used as a basis to develop further implementation guidance.
In June 2018, the FSB also published two sets of final guidelines, following consultations in November 2017. The first sets out principles to assist authorities as they make bail-in resolution strategies operational and the second covers the development of a resolution funding plan for G-SIBs.
European Union
The CRR2 also implements the FSB TLAC standard for G-SIBs, which is being implemented in the form of the MREL requirements. Several changes are also introduced in the own funds calculation and eligibility criteria, the most important of which relates to Point of Non Viability (‘PONV’) requirements for Additional Tier 1 (‘AT1’) and Tier 2 instruments. These are expected to apply from 1 January 2019.
 
Bank of England
In June 2018, the Bank of England published its approach to setting MREL within groups (‘internal MREL’) and also its final policy on selected outstanding MREL policy matters. These are expected to apply from 1 January 2019. The PRA also published its expectations for MREL reporting which will apply from the same date.
The PRA has also published final rules on group risk and double leverage. Firms will be required to consider both elements as part of the Pillar 2 process. In June 2018, the PRA also published modifications to its intra-group large exposures framework, which came into force with immediate effect.
Basel Committee
In July 2018, Basel published a revised assessment methodology and higher loss absorbing requirement for G-SIBs. This updates its
July 2013 publication and follows a consultation on its methodology in March 2017. The revised methodology will take effect in 2021 and the resulting higher loss absorbing requirement will be applied in January 2023.
Table 1: Key metrics
 
 
 
At
 
 
 
30 Jun1

31 Mar1

31 Dec2

Ref*
 
Footnotes
2018

2018

2017

 
Available capital ($bn)
3
 
 
 
1
Common equity tier 1 (‘CET1’) capital
^
122.8

129.6

126.1

2
CET1 capital as if IFRS 9 transitional arrangements had not been applied
 
121.8

128.6

N/A

3
Tier 1 capital
^
147.1

157.1

151.0

4
Tier 1 capital as if IFRS 9 transitional arrangements had not been applied
 
146.1

156.1

N/A

5
Total capital
^
176.6

185.2

182.4

6
Total capital as if IFRS 9 transitional arrangements had not been applied
 
175.6

184.2

N/A

 
Risk-weighted assets (‘RWAs’) ($bn)
 
 
 
 
7
Total RWAs
 
865.5

894.4

871.3

8
Total RWAs as if IFRS 9 transitional arrangements had not been applied
 
864.9

893.8

N/A

 
Capital ratios (%)
3
 
 
 
9
CET1
^
14.2

14.5

14.5

10
CET1 as if IFRS 9 transitional arrangements had not been applied
 
14.1

14.4

N/A

11
Tier 1
^
17.0

17.6

17.3

12
Tier 1 as if IFRS 9 transitional arrangements had not been applied
 
16.9

17.5

N/A

13
Total capital
^
20.4

20.7

20.9

14
Total capital as if IFRS 9 transitional arrangements had not been applied
 
20.3

20.6

N/A

 
Additional CET1 buffer requirements as a percentage of RWA (%)
 
 
 
 
 
Capital conservation buffer requirement
 
1.88

1.88

1.25

 
Countercyclical buffer requirement
 
0.46

0.34

0.22

 
Bank G-SIB and/or D-SIB additional requirements
 
1.50

1.50

1.25

 
Total of bank CET1 specific buffer requirements
 
3.84

3.72

2.72

 
CET1 available after meeting the bank’s minimum capital requirements
4
7.7

8.0

8.0

 
Total capital requirement (%)
5
 
 
 
 
Total capital requirement
 
11.5

11.5

N/A

 
Leverage ratio
 
 
 
 
15
Total leverage ratio exposure measure ($bn)
6^
2,664.1

2,707.9

2,557.1

16
Leverage ratio (%)
6^
5.4

5.6

5.6

17
Leverage ratio as if IFRS 9 transitional arrangements had not been applied (%)
 
5.3

5.5

N/A


Liquidity Coverage Ratio (‘LCR’)
7
 
 
 

Total high-quality liquid assets ($bn)

540.2

533.1

512.6


Total net cash outflow ($bn)

341.7

338.5

359.9


LCR ratio (%)
8
158.1

157.5

142.2

*
The references in this, and subsequent tables, identify the lines prescribed in the relevant EBA template where applicable and where there is a value.
1
Unless otherwise stated all figures are calculated using the EU's regulatory transitional arrangements for IFRS 9 in art 473a of the Capital Requirements Regulation.
2
All figures presented as reported under IAS 39 at 31 December 2017.
3
Capital figures and ratios are reported on the CRD IV transitional basis for additional tier 1 and tier 2 capital in accordance with articles 484-92 of the Capital Requirements
Regulation.
4
The minimum requirements include the total capital requirement to be met by CET1, comprised of the Pillar 1 and Pillar 2A requirements set by the Prudential Regulation Authority.
5
Total capital requirement is defined as the sum of Pillar 1 and Pillar 2A capital requirements.
6
Leverage ratio is calculated using the CRD IV end point basis for additional tier 1 capital.
7
The EU's regulatory transitional arrangements for IFRS 9 in article 473a of the Capital Requirements Regulation do not apply to liquidity coverage measures.    
8
LCR is calculated as at the end of each period rather than using average values. Refer to page 63 of the Interim Report 2018 for further detail.

3
HSBC Holdings plc


The Group has adopted the regulatory transitional arrangements (including paragraph 4 of CRR article 473a) published by the EU on 27 December 2017 for IFRS 9 ‘Financial Instruments’. These permit banks to add back to their capital base a proportion of the impact that IFRS 9 has upon their loan loss allowances during the first five years of use. The proportion that banks may add back starts at 95% in 2018, and reduces to 25% by 2022.
The impact of IFRS 9 on loan loss allowances is defined as:
the increase in loan loss allowances on day one of IFRS 9 adoption; plus
any subsequent increase in expected credit losses in the non credit-impaired book thereafter.
The impact is calculated separately for portfolios using the standardised (‘STD’) and IRB approaches and, for IRB portfolios, there is no add-back to capital unless loan loss allowances exceed regulatory 12-month expected losses. Any add-back must be tax-affected and accompanied by a recalculation of capital deduction thresholds, exposure and RWAs.

 
Structure of the regulatory group
Subsidiaries engaged in insurance activities are excluded from the regulatory consolidation by excluding assets, liabilities and post-acquisition reserves, leaving the Group’s investment in these insurance subsidiaries to be recorded at cost and deducted from CET1 capital (subject to thresholds).
The regulatory consolidation also excludes special purpose entities (‘SPEs’) where significant risk has been transferred to third parties. Exposures to these SPEs are risk-weighted as securitisation positions for regulatory purposes.
Participating interests in banking associates are proportionally consolidated for regulatory purposes by including our share of assets, liabilities, profit and loss, and RWAs in accordance with the PRA’s application of EU legislation. Non-participating significant investments along with non-financial associates are deducted from capital (subject to thresholds).


HSBC Holdings plc
4


Pillar 3 Disclosures at 30 June 2018

Table 2: Reconciliation of balance sheets – financial accounting to regulatory scope of consolidation
 
 
Accounting
balance
sheet

Deconsolidation
of insurance/
other entities

Consolidation
of banking
associates

Regulatory
balance
sheet

 
Ref
$m

$m

$m

$m

Assets
 
 
 
 
 
Cash and balances at central banks
 
189,842

(43
)
1,199

190,998

Items in the course of collection from other banks
 
8,081


12

8,093

Hong Kong Government certificates of indebtedness
 
35,754



35,754

Trading assets
 
247,892

(1,485
)

246,407

Financial assets designated and otherwise mandatorily measured at fair value through profit or loss
 
40,678

(29,496
)
541

11,723

Derivatives
 
227,972

(29
)
95

228,038

Loans and advances to banks
 
83,924

(1,563
)
1,378

83,739

Loans and advances to customers
 
973,443

(1,920
)
12,489

984,012

– of which: impairment allowances on IRB portfolios
h
(6,612
)


(6,612
)
Reverse repurchase agreements – non-trading
 
208,104


1,225

209,329

Financial investments
 
386,436

(61,255
)
3,309

328,490

Capital invested in insurance and other entities
 

2,383


2,383

Prepayments, accrued income and other assets
 
153,048

(5,143
)
266

148,171

– of which: retirement benefit assets
i
8,874



8,874

Current tax assets
 
1,106

(5
)

1,101

Interests in associates and joint ventures
 
22,572

(390
)
(4,025
)
18,157

– of which: positive goodwill on acquisition
e
511

(14
)

497

Goodwill and intangible assets
e
23,722

(7,176
)

16,546

Deferred tax assets
f
4,740

160

1

4,901

Total assets at 30 Jun 2018
 
2,607,314

(105,962
)
16,490

2,517,842

Liabilities and equity
 
 
 
 
 
Hong Kong currency notes in circulation
 
35,754



35,754

Deposits by banks
 
64,792

(34
)
888

65,646

Customer accounts
 
1,356,307

2,168

14,177

1,372,652

Repurchase agreements – non-trading
 
158,295



158,295

Items in the course of transmission to other banks
 
8,086



8,086

Trading liabilities
 
83,845

54


83,899

Financial liabilities designated at fair value
 
151,985

(4,502
)

147,483

– of which:
 
 
 
 
 
included in tier 1
m
424



424

included in tier 2
n, p
14,613



14,613

Derivatives
 
222,961

130

77

223,168

Debt securities in issue
 
81,708

(1,909
)
320

80,119

Accruals, deferred income and other liabilities
 
134,774

(3,297
)
709

132,186

Current tax liabilities
 
1,609

(166
)

1,443

Liabilities under insurance contracts
 
86,918

(86,918
)


Provisions
 
4,199

(9
)
317

4,507

– of which: credit-related contingent liabilities and contractual commitments on IRB portfolios
h
387



387

Deferred tax liabilities
 
2,183

(1,027
)
2

1,158

Subordinated liabilities
 
22,604

4


22,608

– of which:
 
 
 
 
 
included in tier 1
k, m
1,813



1,813

included in tier 2
n, p
20,719



20,719

Total liabilities at 30 Jun 2018
 
2,416,020

(95,506
)
16,490

2,337,004

Called up share capital
a
10,159



10,159

Share premium account
a, k
9,774



9,774

Other equity instruments
j, k
20,573



20,573

Other reserves
c, g
2,193

1,935


4,128

Retained earnings
b, c
140,908

(11,519
)

129,389

Total shareholders’ equity
 
183,607

(9,584
)

174,023

Non-controlling interests
d, l, m, o
7,687

(872
)

6,815

– of which: non-cumulative preference shares issued by subsidiaries included in tier 1 capital
m
9



9

Total equity at 30 Jun 2018
 
191,294

(10,456
)

180,838

Total liabilities and equity at 30 Jun 2018
 
2,607,314

(105,962
)
16,490

2,517,842

The references (a)–(p) identify balance sheet components that are used in the calculation of regulatory capital on page 7.

5
HSBC Holdings plc


Table 2: Reconciliation of balance sheets – financial accounting to regulatory scope of consolidation (continued)
 
 
Accounting
balance sheet

Deconsolidation
of insurance/
other entities

Consolidation
of banking
associates

Regulatory
balance sheet

 
Ref
$m

$m

$m

$m

Assets
 
 
 
 
 
Cash and balances at central banks
 
180,624

(38
)
1,174

181,760

Items in the course of collection from other banks
 
6,628


2

6,630

Hong Kong Government certificates of indebtedness
 
34,186



34,186

Trading assets
 
287,995

(359
)
1

287,637

Financial assets designated at fair value
 
29,464

(28,674
)

790

Derivatives
 
219,818

(128
)
57

219,747

Loans and advances to banks
 
90,393

(2,024
)
1,421

89,790

Loans and advances to customers
 
962,964

(3,633
)
12,835

972,166

– of which: impairment allowances on IRB portfolios
h
(5,004
)


(5,004
)
Reverse repurchase agreements – non-trading
 
201,553


1,854

203,407

Financial investments
 
389,076

(61,480
)
3,325

330,921

Capital invested in insurance and other entities
 

2,430


2,430

Prepayments, accrued income and other assets
 
67,191

(4,202
)
267

63,256

– of which: retirement benefit assets
i
8,752



8,752

Current tax assets
 
1,006

(5
)

1,001

Interests in associates and joint ventures
 
22,744

(370
)
(4,064
)
18,310

– of which: positive goodwill on acquisition
e
521

(14
)
(1
)
506

Goodwill and intangible assets
e
23,453

(6,937
)

16,516

Deferred tax assets
f
4,676

170


4,846

Total assets at 31 Dec 2017
 
2,521,771

(105,250
)
16,872

2,433,393

Liabilities and equity
 
 
 
 
 
Hong Kong currency notes in circulation
 
34,186



34,186

Deposits by banks
 
69,922

(86
)
695

70,531

Customer accounts
 
1,364,462

(64
)
14,961

1,379,359

Repurchase agreements – non-trading
 
130,002



130,002

Items in course of transmission to other banks
 
6,850



6,850

Trading liabilities
 
184,361

867


185,228

Financial liabilities designated at fair value
 
94,429

(5,622
)

88,807

– of which:
 
 
 
 
 
included in tier 1
m
459



459

included in tier 2
n, p
23,831



23,831

Derivatives
 
216,821

69

51

216,941

Debt securities in issue
 
64,546

(2,974
)
320

61,892

Accruals, deferred income and other liabilities
 
45,907

(211
)
622

46,318

Current tax liabilities
 
928

(81
)

847

Liabilities under insurance contracts
 
85,667

(85,667
)


Provisions
 
4,011

(17
)
223

4,217

– of which: credit-related contingent liabilities and contractual commitments on IRB portfolios
h
220



220

Deferred tax liabilities
 
1,982

(1,085
)

897

Subordinated liabilities
 
19,826

1


19,827

– of which:
 
 
 
 
 
included in tier 1
k, m
1,838



1,838

included in tier 2
n, p
17,561



17,561

Total liabilities at 31 Dec 2017
 
2,323,900

(94,870
)
16,872

2,245,902

Called up share capital
a
10,160



10,160

Share premium account
a, k
10,177



10,177

Other equity instruments
j, k
22,250



22,250

Other reserves
c, g
7,664

1,236


8,900

Retained earnings
b, c
139,999

(10,824
)

129,175

Total shareholders’ equity
 
190,250

(9,588
)

180,662

Non-controlling interests
d, l, m, o
7,621

(792
)

6,829

– of which: non-cumulative preference shares issued by subsidiaries
   included in tier 1 capital


m




Total equity at 31 Dec 2017
 
197,871

(10,380
)

187,491

Total liabilities and equity at 31 Dec 2017
 
2,521,771

(105,250
)
16,872

2,433,393

The references (a)–(p) identify balance sheet components that are used in the calculation of regulatory capital on page 7.

HSBC Holdings plc
6


Pillar 3 Disclosures at 30 June 2018

Capital and RWAs
The main features of HSBC’s capital instruments are set out in the Annual Report and Accounts 2017. Information on those instruments classified as liabilities under IFRSs is included in
 
Note 27 Subordinated liabilities on pages 232 to 235. Information on those instruments classified as equity under IFRSs is included in Note 31 Called up share capital and other equity instruments on pages 241 to 243.

Own funds
Table 3: Own funds disclosure



At
30 Jun
2018

CRD IV
prescribed
residual
amount

Final
CRD IV
text



Ref
$m

$m

$m

 
Common equity tier 1 (‘CET1’) capital: instruments and reserves
 
 
 
 
1
Capital instruments and the related share premium accounts
 
18,528

 
18,528

 
– ordinary shares
a
18,528

 
18,528

2
Retained earnings
b
127,358

 
127,358

3
Accumulated other comprehensive income (and other reserves)
c
2,420

 
2,420

5
Minority interests (amount allowed in consolidated CET1)
d
4,729

 
4,729

5a
Independently reviewed interim net profits net of any foreseeable charge or dividend
b
3,034

 
3,034

6
Common equity tier 1 capital before regulatory adjustments
 
156,069

 
156,069

 
Common equity tier 1 capital: regulatory adjustments
 
 
 
 
7
Additional value adjustments
 
(1,234
)
 
(1,234
)
8
Intangible assets (net of related deferred tax liability)
e
(16,877
)
 
(16,877
)
10
Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability)
f
(969
)
 
(969
)
11
Fair value reserves related to gains or losses on cash flow hedges
g
234

 
234

12
Negative amounts resulting from the calculation of expected loss amounts
h
(1,772
)
 
(1,772
)
14
Gains or losses on liabilities valued at fair value resulting from changes in own credit standing

1,845

 
1,845

15
Defined-benefit pension fund assets
i
(6,852
)
 
(6,852
)
16
Direct and indirect holdings of own CET1 instruments

(40
)
 
(40
)
19
Direct, indirect and synthetic holdings by the institution of the CET1 instruments of financial sector entities where the institution has a significant investment in those entities (amount above 10% threshold and net of eligible short positions)
 
(7,647
)
 
(7,647
)
28
Total regulatory adjustments to common equity tier 1
 
(33,312
)

(33,312
)
29
Common equity tier 1 capital
 
122,757


122,757

 
Additional tier 1 (‘AT1’) capital: instruments
 
 
 
 
30
Capital instruments and the related share premium accounts
 
20,550


20,550

31
– classified as equity under IFRSs
j
20,550


20,550

33
Amount of qualifying items and the related share premium accounts subject to phase out
from AT1
k
2,297

(2,297
)

34
Qualifying tier 1 capital included in consolidated AT1 capital (including minority interests not included in CET1) issued by subsidiaries and held by third parties
l, m
1,541

(1,327
)
214

35
– of which: instruments issued by subsidiaries subject to phase out
m
1,327

(1,327
)

36
Additional tier 1 capital before regulatory adjustments
 
24,388

(3,624
)
20,764

 
Additional tier 1 capital: regulatory adjustments
 
 
 
 
37
Direct and indirect holdings of own AT1 instruments
 
(60
)
 
(60
)
43
Total regulatory adjustments to additional tier 1 capital
 
(60
)

(60
)
44
Additional tier 1 capital
 
24,328

(3,624
)
20,704

45
Tier 1 capital (T1 = CET1 + AT1)
 
147,085

(3,624
)
143,461


7
HSBC Holdings plc


Table 3: Own funds disclosure (continued)
 
 
 
At
30 Jun
2018

CRD IV
prescribed
residual
amount

Final
CRD IV
text

 
 
Ref
$m

$m

$m

 
Tier 2 capital: instruments and provisions
 
 
 
 
46
Capital instruments and the related share premium accounts
n
28,185

 
28,185

48
Qualifying own funds instruments included in consolidated T2 capital (including minority interests and AT1 instruments not included in CET1 or AT1) issued by subsidiaries and held by third parties
o, p
1,863

(1,794
)
69

49
– of which: instruments issued by subsidiaries subject to phase out
p
1,794

(1,794
)

51
Tier 2 capital before regulatory adjustments
 
30,048

(1,794
)
28,254

 
Tier 2 capital: regulatory adjustments
 
 
 
 
52
Direct and indirect holdings of own T2 instruments
 
(40
)
 
(40
)
55
Direct and indirect holdings by the institution of the T2 instruments and subordinated loans of financial sector entities where the institution has a significant investment in those entities (net of eligible short positions)
 
(483
)

(483
)
57
Total regulatory adjustments to tier 2 capital
 
(523
)

(523
)
58
Tier 2 capital
 
29,525

(1,794
)
27,731

59
Total capital (TC = T1 + T2)
 
176,610

(5,418
)
171,192

60
Total risk-weighted assets
 
865,467


865,467

 
Capital ratios and buffers
 
 
 
 
61
Common equity tier 1
 
14.2%

 
14.2%

62
Tier 1
 
17.0%

 
16.6%

63
Total capital
 
20.4%

 
19.8%

64
Institution specific buffer requirement
 
3.84%

 
 
65
– capital conservation buffer requirement
 
1.88%

 
 
66
– countercyclical buffer requirement
 
0.46%

 
 
67a
– Global Systemically Important Institution (‘G-SII’) buffer
 
1.50%

 
 
68
Common equity tier 1 available to meet buffers
 
7.7%

 
 
 
Amounts below the threshold for deduction (before risk weighting)
 
 
 
 
72
Direct and indirect holdings of the capital of financial sector entities where the institution does not have a significant investment in those entities (amount below 10% threshold and net of eligible short positions)
 
3,443

 
 
73
Direct and indirect holdings by the institution of the CET1 instruments of financial sector entities where the institution has a significant investment in those entities (amount below 10% threshold and net of eligible short positions)
 
13,040

 
 
75
Deferred tax assets arising from temporary differences (amount below 10% threshold, net of related tax liability)
 
4,924

 
 
 
Applicable caps on the inclusion of provisions in tier 2
 
 
 
 
77
Cap on inclusion of credit risk adjustments in T2 under standardised approach
 
2,198

 
 
79
Cap for inclusion of credit risk adjustments in T2 under IRB approach
 
3,195

 
 
 
Capital instruments subject to phase out arrangements (only applicable between
1 Jan 2014 and 1 Jan 2022)
 
 
 
 
82
Current cap on AT1 instruments subject to phase out arrangements
 
6,921

 
 
84
Current cap on T2 instruments subject to phase out arrangements
 
5,131

 
 
The references (a) – (p) identify balance sheet components on page 5 which are used in the calculation of regulatory capital.
At 30 June 2018, our CET1 capital ratio decreased to 14.2% from 14.5% at 31 December 2017.
CET1 capital decreased in 1H18 by $3.4bn, mainly as a result of:
$3.5bn of unfavourable foreign currency translation differences;
the $2.0bn share buy-back; and
a $1.0bn increase in threshold deductions as a result of an increase in the value of our material holdings and a decrease in the CET1 capital base.
These decreases were partly offset by:
$2.5bn of capital generation through profits, net of cash and scrip dividends; and
a $1.2bn IFRS 9 day one transitional impact, mainly due to classification and measurement changes.
Leverage ratio
Our leverage ratio calculated in accordance with CRD IV was 5.4% at 30 June 2018, down from 5.6% at 31 December 2017, mainly due to balance sheet growth.
The Group’s UK leverage ratio at 30 June 2018 on a modified basis, excluding qualifying central bank balances, was 5.9%.
 
At 30 June 2018, our UK minimum leverage ratio requirement of 3.25% was supplemented by an additional leverage ratio buffer of 0.5% and a countercyclical leverage ratio buffer of 0.2%. These additional buffers translate into capital values of $12.8bn and $3.9bn, respectively. We exceeded these leverage requirements.
The risk of excessive leverage is managed as part of HSBC’s global risk appetite framework and monitored using a leverage ratio metric within our risk appetite statement (‘RAS’). The RAS articulates the aggregate level and types of risk that HSBC is willing to accept in its business activities in order to achieve its strategic business objectives. The RAS measures are monitored via the risk appetite profile report, which includes comparisons of actual performance against the risk appetite and tolerance thresholds assigned to each metric, to ensure that any excessive risk is highlighted, assessed and mitigated appropriately. The risk appetite profile report is presented monthly to the Risk Management Meeting of the Group Management Board (‘RMM’) and the Group Risk Committee (‘GRC’).

HSBC Holdings plc
8


Pillar 3 Disclosures at 30 June 2018

Table 4: Summary reconciliation of accounting assets and leverage ratio exposures
 
 
At
 
 
30 Jun

31 Dec

 
 
2018

2017

 
 
$bn

$bn

1
Total assets as per published financial statements
2,607.3

2,521.8

 
Adjustments for:
 
 
2
– entities which are consolidated for accounting purposes but are outside the scope of regulatory consolidation
(89.5
)
(88.4
)
4
– derivative financial instruments
(80.9
)
(91.0
)
5
– securities financing transactions (‘SFT’)
11.6

12.2

6
– off-balance sheet items (i.e. conversion to credit equivalent amounts of off-balance sheet exposures)
236.5

227.4

7
– other
(20.9
)
(24.9
)
8
Total leverage ratio exposure
2,664.1

2,557.1

Table 5: Leverage ratio common disclosure
 
 
At
 
 
30 Jun

31 Dec

 
 
2018

2017

 
 
$bn

$bn

 
On-balance sheet exposures (excluding derivatives and SFTs)
 
 
1
On-balance sheet items (excluding derivatives, SFTs and fiduciary assets, but including collateral)
2,067.4

1,998.7

2
(Asset amounts deducted in determining tier 1 capital)
(34.2
)
(35.3
)
3
Total on-balance sheet exposures (excluding derivatives, SFTs and fiduciary assets)
2,033.2

1,963.4

 
Derivative exposures
 
 
4
Replacement cost associated with all derivatives transactions (i.e. net of eligible cash variation margin)
34.5

29.0

5
Add-on amounts for potential future exposure (‘PFE’) associated with all derivatives transactions
(mark-to-market method)
140.1

125.5

6
Gross-up for derivatives collateral provided where deducted from the balance sheet assets pursuant to IFRSs
6.0

5.2

7
(Deductions of receivables assets for cash variation margin provided in derivatives transactions)
(23.5
)
(23.6
)
8
(Exempted central counterparty (‘CCP’) leg of client-cleared trade exposures)
(18.9
)
(14.0
)
9
Adjusted effective notional amount of written credit derivatives
168.6

188.2

10
(Adjusted effective notional offsets and add-on deductions for written credit derivatives)
(159.6
)
(181.6
)
11
Total derivative exposures
147.2

128.7

 
Securities financing transaction exposures
 
 
12
Gross SFT assets (with no recognition of netting), after adjusting for sales accounting transactions
340.5

331.2

13
(Netted amounts of cash payables and cash receivables of gross SFT assets)
(104.9
)
(105.8
)
14
Counterparty credit risk exposure for SFT assets
11.6

12.2

16
Total securities financing transaction exposures
247.2

237.6

 
Other off-balance sheet exposures
 
 
17
Off-balance sheet exposures at gross notional amount
823.9

801.7

18
(Adjustments for conversion to credit equivalent amounts)
(587.4
)
(574.3
)
19
Total off-balance sheet exposures
236.5

227.4

 
Capital and total exposures
 
 
20
Tier 1 capital
143.5

142.7

21
Total leverage ratio exposure
2,664.1

2,557.1

22
Leverage ratio (%)
5.4

5.6

EU-23
Choice of transitional arrangements for the definition of the capital measure
 Fully phased-in

 Fully phased-in

Table 6: Leverage ratio – Split of on-balance sheet exposures (excluding derivatives, SFTs and exempted exposures)
 
 
At
 
 
30 Jun

31 Dec

 
 
2018

2017

 
 
$bn

$bn

EU-1
Total on-balance sheet exposures (excluding derivatives, SFTs, and exempted exposures)
2,043.9

1,998.7

EU-2
– trading book exposures
223.3

268.6

EU-3
– banking book exposures
1,820.6

1,730.1

 
   ’banking book exposures’ comprises:
 
 
EU-4
covered bonds
1.4

1.3

EU-5
exposures treated as sovereigns
514.1

504.8

EU-6
exposures to regional governments, multilateral development banks (‘MDBs’), international organisations and public sector entities not treated as sovereigns
9.0

9.8

EU-7
institutions
78.6

77.0

EU-8
secured by mortgages of immovable properties
290.4

283.4

EU-9
retail exposures
83.8

89.3

EU-10
corporate
616.6

586.0

EU-11
exposures in default
9.2

9.7

EU-12
other exposures (e.g. equity, securitisations and other non-credit obligation assets)
217.5

168.8


9
HSBC Holdings plc


Capital buffers
The geographical breakdown and institution specific countercyclical capital buffer disclosure is published annually on the HSBC website, www.hsbc.com. Our G-SIB Indicators Disclosure is published annually on the HSBC website, www.hsbc.com.
 
Pillar 1 minimum capital requirements and RWA flow
Pillar 1 covers the minimum capital resource requirements for credit risk, counterparty credit risk (‘CCR’), equity, securitisation, market risk and operational risk. These requirements are expressed in terms of RWAs.
 
Risk category
Scope of permissible approaches
Approach adopted by HSBC
 
Credit risk
The Basel Committee’s framework applies three approaches of increasing sophistication to the calculation of Pillar 1 credit risk capital requirements. The most basic level, the standardised approach, requires banks to use external credit ratings to determine the risk weightings applied to rated counterparties. Other counterparties are grouped into broad categories and standardised risk weightings are applied to these categories. The next level, the foundation IRB (‘FIRB’) approach, allows banks to calculate their credit risk capital requirements on the basis of their internal assessment of a counterparty’s probability of default (‘PD’), but subjects their quantified estimates of EAD and loss given default (‘LGD’) to standard supervisory parameters. Finally, the advanced IRB (‘AIRB’) approach allows banks to use their own internal assessment in both determining PD and quantifying EAD and LGD.
For consolidated Group reporting, we have adopted the advanced IRB approach for the majority of our business.
Some portfolios remain on the standardised or foundation IRB approaches:
pending the issuance of local regulations or model approval;
following supervisory prescription of a non-advanced approach; or
under exemptions from IRB treatment.
 
 
 
 
 
Counterparty credit risk
Four approaches to calculating CCR and determining exposure values are defined by the Basel Committee: mark-to-market, original exposure, standardised and Internal Model Method (‘IMM’). These exposure values are used to determine capital requirements under one of the credit risk approaches: standardised, foundation IRB or advanced IRB.
We use the mark-to-market and IMM approaches for CCR. Details of the IMM permission we have received from the PRA can be found in the Financial Services Register on the PRA website. Our aim is to increase the proportion of positions on IMM over time.
 
Equity
For the non-trading book, equity exposures can be assessed under standardised or IRB approaches.
For Group reporting purposes, all non-trading book equity exposures are treated under the standardised approach.
 
Securitisation
Basel specifies two approaches for calculating credit risk requirements for securitisation positions in non-trading books: the standardised approach and the IRB approach, which incorporates the Ratings Based Method (‘RBM’), the Internal Assessment Approach (‘IAA’) and the Supervisory Formula Method (‘SFM’). Securitisation positions in the trading book are treated within the market risk framework, using the CRD IV standard rules.
For the majority of the non-trading book securitisation positions we use the IRB approach, and within this principally the RBM, with lesser amounts on the IAA and the SFM. We also use the standardised approach for an immaterial amount of non-trading book positions. We follow the CRD IV standard rules for the securitisation positions in the trading book.
 
Market risk
Market risk capital requirements can be determined under either the standard rules or the Internal Models Approach (‘IMA’). The latter involves the use of internal value at risk (‘VaR’) models to measure market risks and determine the appropriate capital requirement.
In addition to the VaR models, other internal models include Stressed VaR (‘SVaR’), Incremental Risk Charge (‘IRC’) and Comprehensive Risk Measure.

The market risk capital requirement is measured using internal market risk models, where approved by the PRA, or under the standard rules. Our internal market risk models comprise VaR, stressed VaR and IRC. Non-proprietary details of the scope of our IMA permission are available in the Financial Services Register on the PRA website. We are in compliance with the requirements set out in Articles 104 and 105 of the Capital Requirements Regulation.
 
Operational risk
The Basel Committee allows firms to calculate their operational risk capital requirement under the basic indicator approach, the standardised approach or the advanced measurement approach.
We currently use the standardised approach in determining our operational risk capital requirement. We have in place an operational risk model that is used for economic capital calculation purposes.



HSBC Holdings plc
10


Pillar 3 Disclosures at 30 June 2018

Table 7: Overview of RWAs
 
 
At
 
 
30 Jun

31 Mar

30 Jun

 
 
2018

2018

2018

 
 
RWAs

RWAs

Capital1 
requirements

 
 
$bn

$bn

$bn

1
Credit risk (excluding counterparty credit risk)
634.3

638.1

50.7

2
– standardised approach
128.4

129.4

10.2

3
– foundation IRB approach
29.1

30.4

2.3

4
– advanced IRB approach
476.8

478.3

38.2

6
Counterparty credit risk
47.5

57.9

3.8

7
– mark-to-market
24.8

37.7

2.0

10
– internal model method
16.5

10.4

1.3

11
– risk exposure amount for contributions to the default fund of a central counterparty
0.5

0.6


12
– credit valuation adjustment
5.7

9.2

0.5

13
Settlement risk
0.1

0.1


14
Securitisation exposures in the non-trading book
9.0

14.8

0.7

15
– IRB ratings based method
5.1

11.3

0.4

17
– IRB internal assessment approach
1.6

1.7

0.1

18
– standardised approach
2.3

1.8

0.2

19
Market risk
37.0

43.2

3.0

20
– standardised approach
5.5

4.8

0.4

21
– internal models approach
31.5

38.4

2.6

23
Operational risk
92.7

92.7

7.4

25
– standardised approach
92.7

92.7

7.4

27
Amounts below the thresholds for deduction (subject to 250% risk weight)
44.9

47.6

3.6

29
Total
865.5

894.4

69.2

1
‘Capital requirements’ here and in all tables where the term is used, represents the minimum total capital charge set at 8% of RWAs by article 92 of the Capital Requirements Regulation.
Credit risk, including amounts below the thresholds for deduction
RWAs decreased by $6.5bn in the second quarter, including a decrease in foreign currency translation differences of $23.9bn. The $17.4bn increase (excluding foreign currency translation differences) was mainly due to lending growth principally in CMB and GB&M in Asia.
Counterparty credit risk
The $10.4bn decrease in RWAs was principally due to:
the implementation of IMM in Asia and the US which reduced RWAs by $6.7bn; and
 
a decrease in asset size of $4.1bn mainly from mark-to-market movements in Europe and the US.
Securitisation in non-trading book
The $5.8bn RWA decrease in the second quarter of the year arose predominantly from the sale of legacy positions.
Market risk
RWAs decreased by $6.2bn mainly as a result of reduced exposure under the internal models approach.
Table 8: RWA flow statements of credit risk exposures under the IRB approach1
 
 
RWAs

Capital
requirements

 
 
$bn

$bn

1
RWAs at 1 Apr 2018
508.7

40.7

2
Asset size
11.4

0.9

3
Asset quality
1.0

0.1

4
Model updates
1.0

0.1

5
Methodology and policy
0.4


7
Foreign exchange movements
(16.6
)
(1.3
)
9
RWAs at 30 Jun 2018
505.9

40.5

1
Securitisation positions are not included in this table.


11
HSBC Holdings plc


RWAs under the IRB approach decreased by $2.8bn in the second quarter of the year, including a decrease of $16.6bn due to foreign currency translation differences.
The $13.8bn increase in RWAs excluding foreign currency translation differences is mainly due to:
an $11.4bn growth in corporate and lending portfolios mainly in Asia, North America and Europe;
 
$1.0bn movement in asset quality due to changes in portfolio mix, mainly in CMB and GB&M; and
a $0.6bn increase due to updates to retail and corporate models in RBWM and CMB.
Table 9: RWA flow statements of CCR exposures under the IMM
 
 
RWAs

Capital
requirements

 
 
$bn

$bn

1
RWAs at 1 Apr 2018
12.7

1.0

2
Asset size
(1.4
)
(0.1
)
4
Model updates
8.9

0.7

5
Methodology and policy
0.7

0.1

9
RWAs at 30 Jun 2018
20.9

1.7

RWAs under the IMM increased by $8.2bn mainly as a result of IMM implementation in Asia and the US.
Table 10: RWA flow statements of market risk exposures under the IMA
 
 
VaR

Stressed
VaR

IRC

Other

Total
RWAs

Total capital requirements

 
 
$bn

$bn

$bn

$bn

$bn

$bn

1
RWAs at 1 Apr 2018
9.5

14.3

11.2

3.4

38.4

3.1

2
Movement in risk levels
(2.5
)
(2.5
)
(1.7
)
(0.2
)
(6.9
)
(0.5
)
8
RWAs at 30 Jun 2018
7.0

11.8

9.5

3.2

31.5

2.6

RWAs under the IMA decreased by $6.9bn mainly as a result of:
changes in correlation and risk that reduced both VaR and SVaR by $2.5bn each; and
lower exposure in the incremental risk charge (‘IRC’) that reduced RWAs by $1.7bn.

HSBC Holdings plc
12


Pillar 3 Disclosures at 30 June 2018

Credit risk
Credit risk is the risk of financial loss if a customer or counterparty fails to meet an obligation under a contract. It arises principally from direct lending, trade finance and leasing business, but also from other products, such as guarantees and credit derivatives and from holding assets in the form of debt securities. Credit risk represents our largest regulatory capital requirement. 
There have been no material changes to our policies and practices, which are described in the Pillar 3 Disclosures at 31 December 2017.
 
On 1 January 2018, HSBC implemented the requirements of IFRS 9 ’Financial Instruments’. Information relevant to understanding the impact of the new accounting standard on HSBC is available in the Report on Transition to IFRS 9 ‘Financial Instruments’ available on the HSBC website.
Credit quality of assets
We are a universal bank with a conservative approach to credit risk. This is reflected in our credit risk profile being diversified across a number of asset classes and geographies with a credit quality profile concentrated in the higher quality bands.
Table 11: Credit quality of exposures by exposure class and instrument1


 
Gross carrying values of
Specific credit risk adjustments


Write-offs in the year
4

Credit risk adjustment charges of the period4

Net carrying values



 
Defaulted exposures

Non-defaulted exposures



Footnotes
$bn

$bn

$bn

$bn

$bn

$bn

1
Central governments and central banks
 

315.5



(0.1
)
315.5

2
Institutions
 

92.8




92.8

3
Corporates
 
7.6

1,022.0

4.3

0.2

0.1

1,025.3

4
– of which: specialised lending
 
0.9

49.0

0.5


0.3

49.4

6
Retail
 
3.5

470.0

1.7

0.4

0.4

471.8

7
– secured by real estate property
 
2.5

278.4

0.3



280.6


– of which:
 












8
SMEs
 
0.1

3.5




3.6

9
Non-SMEs
 
2.4

274.9

0.3



277.0

10
– qualifying revolving retail
 
0.1

129.0

0.7

0.2

0.2

128.4

11
– other retail
 
0.9

62.6

0.7

0.2

0.2

62.8


– of which:
 












12
SMEs
 
0.5

8.3

0.4

0.1

0.1

8.4

13
Non-SMEs
 
0.4

54.3

0.3

0.1

0.1

54.4

15
Total IRB approach
 
11.1

1,900.3

6.0

0.6

0.4

1,905.4

16
Central governments and central banks
2

186.2




186.2

17
Regional governments or local authorities
2

7.3




7.3

18
Public sector entities
 

11.8




11.8

19
Multilateral development banks
 

0.2




0.2

20
International organisations
 

2.0




2.0

21
Institutions
 

3.6




3.6

22
Corporates
 
3.2

177.7

2.0

0.1

0.1

178.9

23
– of which: SMEs
 
0.1

1.3




1.4

24
Retail
 
1.0

67.5

1.6

0.4

0.3

66.9

25
– of which: SMEs
 

1.7




1.7

26
Secured by mortgages on immovable property
 
0.8

31.9

0.3


(0.1
)
32.4

27
– of which: SMEs
 

0.1




0.1

28
Exposures in default
3
5.0


2.1

0.5

0.3

2.9

29
Items associated with particularly high risk
 
0.1

4.3




4.4

32
Collective investment undertakings (‘CIU’)
 

0.7




0.7

33
Equity exposures
 

15.7




15.7

34
Other exposures
 

13.8