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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Hsbc Holdings, Plc. Perpetual Sub Cap Secs (delisted) | NYSE:HSEA | NYSE | Ordinary Share |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 26.36 | 0.00 | 01:00:00 |
Financial
highlights and key ratios
|
|||
|
Quarter ended 31 Mar
|
||
|
2018
|
2017
|
Change
|
|
$m
|
$m
|
%
|
Reported PBT
|
4,755
|
4,961
|
(4)
|
Adjusted PBT
|
6,033
|
6,210
|
(3)
|
|
%
|
%
|
%
|
Return on average ordinary shareholders' equity
(annualised)
|
7.5
|
8.0
|
(6.3)
|
Return
on average tangible equity (annualised)
|
8.4
|
9.1
|
(7.7)
|
Adjusted jaws
|
(5.7)
|
|
|
Capital
and balance sheet
|
||
|
At
|
|
|
31 Mar
|
31 Dec
|
|
2018
|
2017
|
|
%
|
%
|
Common
equity tier 1 ratio
1
|
14.5
|
14.5
|
Leverage
ratio
1
|
5.6
|
5.6
|
|
$m
|
$m
|
Loans and advances to customers
|
981,165
|
962,964
|
Customer accounts
|
1,379,679
|
1,364,462
|
Risk-weighted
assets
1
|
894,400
|
871,337
|
Table of contents
|
||||
|
Page
|
|
|
Page
|
Highlights
|
1
|
|
Risk-weighted assets
|
24
|
Group Chief Executive's review
|
3
|
|
Summary information - global businesses
|
27
|
Adoption of IFRS 9 'Financial Instruments'
|
4
|
|
Summary
information - geographical regions
|
29
|
Adjusted performance
|
4
|
|
Appendix
- selected information
|
31
|
Financial performance commentary
|
6
|
|
-
Reconciliation of reported and adjusted results - global
businesses
|
31
|
Cautionary statement regarding forward-looking
statements
|
14
|
|
-
Reconciliation of reported and adjusted risk-weighted
assets
|
34
|
Summary consolidated income statement
|
15
|
|
- Reconciliation of reported and adjusted results -
geographical regions
|
34
|
Summary consolidated balance sheet
|
16
|
|
First interim dividend for 2018
|
37
|
Credit risk
|
17
|
|
Dividend on Series A dollar preference shares
|
37
|
Capital
|
22
|
|
Terms and abbreviations
|
38
|
Leverage
|
23
|
|
|
|
HSBC Holdings plc - Earnings Release
|
Review by John Flint, Group Chief Executive
|
Adoption of IFRS 9 'Financial Instruments'
|
Adjusted performance
|
Foreign currency translation differences
Foreign
currency translation differences for 1Q18 are computed
by retranslating into US dollars for non-US dollar branches,
subsidiaries, joint ventures and associates:
●
the income statements for 4Q17 and 1Q17 at the average
rates of exchange for 1Q18; and
●
the closing prior period balance sheets at the
prevailing rates of exchange on 31 March 2018.
No
adjustment has been made to the exchange rates used to translate
foreign currency denominated assets and liabilities into
the functional currencies of any HSBC branches, subsidiaries,
joint ventures or associates. When reference is made to foreign
currency translation differences in tables or commentaries,
comparative data reported in the functional currencies of HSBC's
operations have been translated at the appropriate exchange rates
applied in the current period on the basis described
above.
|
Financial performance commentary
|
Movement
in reported profit before tax compared with 1Q17
|
|||||
|
Quarter ended
|
||||
|
31 Mar
|
31 Mar
|
Variance
|
||
|
2018
|
2017
|
|
1Q18 vs. 1Q17
|
|
|
$m
|
$m
|
$m
|
%
|
|
Revenue
|
13,710
|
12,993
|
|
717
|
6
|
ECL/LICs
|
(170)
|
(236
|
)
|
66
|
28
|
Operating expenses
|
(9,383)
|
(8,328
|
)
|
(1,055)
|
(13)
|
Share of profit from associates and JVs
|
598
|
532
|
|
66
|
12
|
Profit before tax
|
4,755
|
4,961
|
|
(206)
|
(4)
|
Management
view of adjusted revenue
|
|||||||||
|
Quarter ended
|
||||||||
|
31 Mar
|
31 Dec
|
31 Mar
|
Variance
|
|||||
|
2018
|
2017
|
2017
|
1Q18 vs. 1Q17
|
|||||
|
$m
|
$m
|
$m
|
$m
|
%
|
||||
Net operating income
1
|
|
|
|
|
|
||||
Retail Banking
|
3,653
|
3,531
|
|
3,380
|
|
273
|
|
8
|
|
- current accounts, savings and deposits
|
1,857
|
1,740
|
|
1,510
|
|
347
|
|
23
|
|
- personal lending
|
1,796
|
1,791
|
|
1,870
|
|
(74
|
)
|
(4
|
)
|
mortgages
|
579
|
603
|
|
630
|
|
(51
|
)
|
(8
|
)
|
credit cards
|
725
|
689
|
|
753
|
|
(28
|
)
|
(4
|
)
|
other personal lending
2
|
492
|
499
|
|
487
|
|
5
|
|
1
|
|
Wealth Management
|
1,829
|
1,433
|
|
1,698
|
|
131
|
|
8
|
|
-
investment distribution
3
|
1,044
|
793
|
|
821
|
|
223
|
|
27
|
|
-
life insurance manufacturing
|
503
|
353
|
|
614
|
|
(111
|
)
|
(18
|
)
|
-
asset management
|
282
|
287
|
|
263
|
|
19
|
|
7
|
|
Other
4
|
187
|
165
|
|
135
|
|
52
|
|
39
|
|
Total
|
5,669
|
5,129
|
|
5,213
|
|
456
|
|
9
|
|
Adjusted
RoRWA (%)
5
|
6.2
|
4.6
|
|
6.3
|
|
|
|
||
RoTE
excluding significant items and UK bank levy (%)
11
|
23.1
|
-
|
25.0
|
|
|
|
Management
view of adjusted revenue
|
|||||||||
|
Quarter ended
|
||||||||
|
31 Mar
|
31 Dec
|
31 Mar
|
Variance
|
|||||
|
2018
|
2017
|
2017
|
1Q18 vs. 1Q17
|
|||||
|
$m
|
$m
|
$m
|
$m
|
%
|
||||
Net operating income
1
|
|
|
|
|
|
||||
Global Trade and Receivables Finance
|
466
|
462
|
|
467
|
|
(1
|
)
|
-
|
|
Credit and Lending
|
1,325
|
1,351
|
|
1,280
|
|
45
|
|
4
|
|
Global Liquidity and Cash Management
|
1,351
|
1,303
|
|
1,158
|
|
193
|
|
17
|
|
Markets
products, Insurance and Investments, and Other
6
|
557
|
416
|
|
447
|
|
110
|
|
25
|
|
Total
|
3,699
|
3,532
|
|
3,352
|
|
347
|
|
10
|
|
Adjusted
RoRWA (%)
5
|
2.8
|
2.2
|
|
2.6
|
|
|
|
||
RoTE
excluding significant items and UK bank levy (%)
11
|
15.5
|
-
|
15.7
|
|
|
|
Management
view of adjusted revenue
|
||||||||
|
Quarter ended
|
|||||||
|
31 Mar
|
31 Dec
|
31 Mar
|
Variance
|
||||
|
2018
|
2017
|
2017
|
1Q18 vs. 1Q17
|
||||
|
$m
|
$m
|
$m
|
$m
|
%
|
|||
Net operating income
1
|
|
|
|
|
|
|||
Global Markets
|
1,864
|
1,323
|
|
2,066
|
|
(202
|
)
|
(10)
|
-
Foreign exchange
|
741
|
625
|
|
658
|
|
83
|
|
13
|
-
Rates
|
445
|
282
|
|
696
|
|
(251
|
)
|
(36)
|
-
Credit
|
252
|
146
|
|
351
|
|
(99
|
)
|
(28)
|
- FICC
|
1,438
|
1,053
|
|
1,705
|
|
(267
|
)
|
(16)
|
- Equities
|
426
|
270
|
|
361
|
|
65
|
|
18
|
Global Banking
|
1,010
|
933
|
|
949
|
|
61
|
|
6
|
Global Liquidity and Cash Management
|
635
|
599
|
|
543
|
|
92
|
|
17
|
Securities Services
|
482
|
477
|
|
431
|
|
51
|
|
12
|
Global Trade and Receivables Finance
|
180
|
171
|
|
189
|
|
(9
|
)
|
(5)
|
Principal Investments
|
69
|
64
|
|
32
|
|
37
|
|
116
|
Credit
and funding valuation adjustments
7
|
(65)
|
(109
|
)
|
-
|
|
(65
|
)
|
n/a
|
Other
8
|
(27)
|
5
|
|
(68
|
)
|
41
|
|
60
|
Total
|
4,148
|
3,463
|
|
4,142
|
|
6
|
|
-
|
Adjusted
RoRWA (%)
5
|
2.3
|
1.1
|
|
2.4
|
|
|
|
|
RoTE
excluding significant items and UK bank levy (%)
11
|
11.9
|
-
|
12.8
|
|
|
|
Management
view of adjusted revenue
|
||||||||
|
Quarter ended
|
|||||||
|
31 Mar
|
31 Dec
|
31 Mar
|
Variance
|
||||
|
2018
|
2017
|
2017
|
1Q18 vs. 1Q17
|
||||
|
$m
|
$m
|
$m
|
$m
|
%
|
|||
Net operating income
1
|
|
|
|
|
|
|||
Investment revenue
|
210
|
168
|
|
185
|
|
25
|
14
|
|
Lending
|
103
|
104
|
|
97
|
|
6
|
6
|
|
Deposit
|
122
|
109
|
|
92
|
|
30
|
33
|
|
Other
|
47
|
49
|
|
63
|
|
(16)
|
(25
|
)
|
Total
|
482
|
430
|
|
437
|
|
45
|
10
|
|
Adjusted
RoRWA (%)
5
|
2.8
|
2.2
|
|
1.9
|
|
|
|
|
RoTE
excluding significant items and UK bank levy (%)
11
|
12.3
|
-
|
7.4
|
|
|
|
Management
view of adjusted revenue
|
||||||||
|
Quarter ended
|
|||||||
|
31 Mar
|
31 Dec
|
31 Mar
|
Variance
|
||||
|
2018
|
2017
|
2017
|
1Q18 vs. 1Q17
|
||||
|
$m
|
$m
|
$m
|
$m
|
%
|
|||
Net operating income
1
|
|
|
|
|
|
|||
Central
Treasury
9
|
(75)
|
269
|
|
364
|
|
(439
|
)
|
(121)
|
Legacy portfolios
|
19
|
(84
|
)
|
28
|
|
(9
|
)
|
(32)
|
-
US run-off portfolio
|
12
|
(7
|
)
|
28
|
|
(16
|
)
|
(57)
|
-
legacy credit
|
7
|
(77
|
)
|
-
|
|
7
|
|
n/a
|
Other
10
|
(92)
|
(57
|
)
|
(25
|
)
|
(67
|
)
|
>(200)
|
Total
|
(148)
|
128
|
|
367
|
|
(515
|
)
|
(140)
|
|
Quarter ended
|
Year
ended
|
||
|
31 Mar
|
31
Mar
|
31
Dec
|
|
|
2018
|
2017
|
2017
|
|
|
$m
|
$m
|
$m
|
|
Net
interest income
|
7,456
|
6,787
|
28,176
|
|
Average
interest earning assets
|
1,812,194
|
1,683,136
|
1,726,120
|
|
|
%
|
%
|
%
|
|
Gross
yield
|
2.55
|
2.33
|
2.37
|
|
Less:
cost of funds
|
(1.02)
|
(0.83
|
(0.88
|
)
|
Net
interest spread
|
1.53
|
1.50
|
1.49
|
|
Net
interest margin
|
1.67
|
1.64
|
1.63
|
|
Footnotes to financial performance commentary
|
|
1
|
Net operating income before changes in expected credit losses and
other credit impairment charges, also referred to as
revenue.
|
2
|
'Other personal lending' includes personal non-residential
closed-end loans and personal overdrafts.
|
3
|
'Investment distribution' includes Investments, which comprises
mutual funds (HSBC manufactured and third party), structured
products and securities trading, and Wealth Insurance distribution,
consisting of HSBC manufactured and third-party life, pension and
investment insurance products.
|
4
|
'Other' mainly includes the distribution and manufacturing (where
applicable) of retail and credit protection insurance.
|
5
|
Adjusted return on average risk-weighted assets ('Adjusted RoRWA')
is used to measure the performance of RBWM, CMB, GB&M and GPB.
Adjusted RoRWA is calculated using annualised profit before tax and
reported average risk-weighted assets at constant currency adjusted
for the effects of significant items.
|
6
|
'Markets products, Insurance and Investments and Other' includes
revenue from Foreign Exchange, insurance manufacturing and
distribution, interest rate management and Global Banking
products.
|
7
|
From 1 January 2018, the qualifying components according to IFRS 7
'Financial Instruments: Disclosures' of fair value movements
relating to changes in credit spreads on structured liabilities,
were recorded through OCI. The residual movements remain in credit
and funding valuation adjustments, and comparatives have not been
restated.
|
8
|
'Other' in GB&M includes net interest earned on free capital
held in the global business not assigned to products, allocated
funding costs and gains resulting from business disposals. Within
the management view of total operating income, notional tax credits
are allocated to the businesses to reflect the economic benefit
generated by certain activities that is not reflected within
operating income, such as notional credits on income earned from
tax-exempt investments where the economic benefit of the activity
is reflected in tax expense. In order to reflect the total
operating income on an IFRS basis, the offset to these tax credits
is included within 'Other'.
|
9
|
Central Treasury includes revenue relating to Balance Sheet
Management ('BSM') of $592m (4Q17: $660m; 1Q17: $854m), interest
expense of $377m (4Q17: $278m; 1Q17: $343m) and adverse valuation
differences on issued long-term debt and associated swaps of $241m
(4Q17: adverse movements of $56m; 1Q17: adverse movements of $65m).
Revenue relating to BSM includes other internal allocations,
including notional tax credits to reflect the economic benefit
generated by certain activities which is not reflected within
operating income, for example notional credits on income earned
from tax-exempt investments where the economic benefit of the
activity is reflected in tax expense. In order to reflect the total
operating income on an IFRS basis, the offset to these tax credits
is included in other Central Treasury.
|
10
|
Other miscellaneous items in Corporate Centre include internal
allocations relating to legacy credit.
|
11
|
Return on average tangible equity ('RoTE') is calculated as Profit
Attributable to Ordinary Shareholders (based on annualised Reported
PBT, as adjusted for tax, insurance balances, certain capital
securities and associates) divided by allocated Average Tangible
Shareholders' Equity. In 1Q18, Group RoTE on this basis was
8.4%.
RoTE excluding significant items and the UK bank levy adjusts RoTE
for the effects of significant items, the UK bank levy, tax and
other items. This is the RoTE measure used at the global business
level. In 1Q18, Group RoTE excluding significant items and the UK
bank levy was 11.6%.
The reconciling items between Group RoTE and Group RoTE excluding
significant items and the UK bank levy in 1Q18 were significant
items (+3.5% points), the UK bank levy (+0.1% points), tax (-0.2%
points) and other items (-0.2%
points).
|
Cautionary statement regarding forward-looking
statements
|
Investor Relations
|
Media Relations
|
UK
- Richard O'Connor
|
UK
- Heidi Ashley
|
Tel:
+44 (0) 20 7991 6590
|
Tel:
+44 (0) 20 7992 2045
|
|
|
Hong
Kong - Hugh Pye
|
|
Tel:
+852 2822 4908
|
|
Summary consolidated income statement
|
|
Quarter ended
|
|||
|
31 Mar
|
31 Dec
|
31 Mar
|
|
|
2018
|
2017
|
2017
|
|
|
$m
|
$m
|
$m
|
|
Net
interest income
|
7,456
|
7,272
|
6,787
|
|
Net fee
income
|
3,507
|
3,065
|
3,224
|
|
Net
income from financial instruments held for trading or managed on a
fair value basis
2,3
|
2,384
|
1,997
|
2,187
|
|
Net
income from assets and liabilities of insurance businesses,
including related derivatives, measured at fair value through
profit or loss
2
|
(155)
|
627
|
964
|
|
Changes
in fair value of long-term debt and related derivatives
3
|
10
|
(13)
|
24
|
|
Changes
in fair value of other financial instruments mandatorily measured
at fair value through profit or loss
2
|
117
|
N/A
|
N/A
|
|
Gains
less losses from financial investments
|
101
|
71
|
338
|
|
Dividend
income
|
9
|
17
|
13
|
|
Net
insurance premium income
|
3,078
|
2,317
|
2,793
|
|
Other
operating income/(expense)
|
41
|
(79)
|
202
|
|
Total operating income
|
16,548
|
15,274
|
16,532
|
|
Net
insurance claims and benefits paid and movement in liabilities to
policyholders
|
(2,838)
|
(2,973)
|
(3,539
|
)
|
Net operating income before change in expected credit losses and
other credit impairment charges
|
13,710
|
12,301
|
12,993
|
|
Change in expected credit losses and other credit impairment
charges
|
(170)
|
N/A
|
N/A
|
|
Loan impairment charges and other credit risk
provisions
|
N/A
|
(658)
|
(236
|
)
|
Net operating income
|
13,540
|
11,643
|
12,757
|
|
Total operating expenses
|
(9,383
|
(9,895)
|
(8,328
|
)
|
Operating profit/(loss)
|
4,157
|
1,748
|
4,429
|
|
Share of profit in associates and joint ventures
|
598
|
556
|
532
|
|
Profit/(loss) before tax
|
4,755
|
2,304
|
4,961
|
|
Tax expense
|
(1,017)
|
(1,978)
|
(1,201
|
)
|
Profit/(loss) after tax
|
3,738
|
326
|
3,760
|
|
Attributable to:
|
|
|
|
|
- ordinary shareholders of the parent company
|
3,086
|
(274)
|
3,130
|
|
- preference shareholders of the parent company
|
22
|
23
|
22
|
|
- other equity holders
|
288
|
303
|
313
|
|
- non-controlling interests
|
342
|
274
|
295
|
|
Profit/(loss) after tax
|
3,738
|
326
|
3,760
|
|
|
$
|
$
|
$
|
|
Basic earnings per share
|
0.15
|
(0.01)
|
0.16
|
|
Diluted earnings per share
|
0.15
|
(0.01)
|
0.16
|
|
Dividend per ordinary share (in respect of the period)
|
0.10
|
0.21
|
0.10
|
|
|
%
|
%
|
%
|
|
Return on average ordinary shareholders' equity
(annualised)
|
7.5
|
(0.7)
|
8.0
|
|
Return
on average tangible equity (annualised)
|
8.4
|
(0.5)
|
9.1
|
|
Return
on average risk-weighted assets
1
|
2.2
|
1.0
|
2.3
|
|
Cost efficiency ratio
|
68.4
|
80.4
|
64.1
|
|
Summary consolidated balance sheet
|
|
At
|
|||
|
31 Mar
|
1 Jan
|
31 Dec
|
|
|
2018
|
2018
1
|
2017
|
|
|
$m
|
$m
|
$m
|
|
Assets
|
|
|
|
|
Cash and balances at central banks
|
184,445
|
180,621
|
180,624
|
|
Trading assets
|
277,116
|
254,410
|
287,995
|
|
Financial assets designated and otherwise mandatorily measured at
fair value through profit or loss
|
40,964
|
39,746
|
N/A
|
|
Financial
assets designated at fair value
|
N/A
|
N/A
|
29,464
|
|
Derivatives
|
221,038
|
219,818
|
219,818
|
|
Loans and advances to banks
|
78,727
|
82,559
|
90,393
|
|
Loans and advances to customers
|
981,165
|
949,737
|
962,964
|
|
Reverse repurchase agreements - non-trading
|
213,107
|
201,553
|
201,553
|
|
Financial investments
|
392,878
|
383,499
|
389,076
|
|
Other assets
|
262,683
|
206,487
|
159,884
|
|
Total assets
|
2,652,123
|
2,518,430
|
2,521,771
|
|
Liabilities and Equity
|
|
|
|
|
Liabilities
|
|
|
|
|
Deposits by banks
|
63,999
|
64,492
|
69,922
|
|
Customer accounts
|
1,379,679
|
1,360,227
|
1,364,462
|
|
Repurchase agreements - non-trading
|
168,614
|
130,002
|
130,002
|
|
Trading liabilities
|
83,364
|
80,864
|
184,361
|
|
Financial liabilities designated at fair value
|
150,008
|
144,006
|
94,429
|
|
Derivatives
|
216,902
|
216,821
|
216,821
|
|
Debt securities in issue
|
71,482
|
66,536
|
64,546
|
|
Liabilities under insurance contracts
|
87,611
|
85,598
|
85,667
|
|
Other liabilities
|
226,902
|
173,660
|
113,690
|
|
Total liabilities
|
2,448,561
|
2,322,206
|
2,323,900
|
|
Equity
|
|
|
|
|
Total shareholders' equity
|
195,924
|
188,644
|
190,250
|
|
Non-controlling interests
|
7,638
|
7,580
|
7,621
|
|
Total equity
|
203,562
|
196,224
|
197,871
|
|
Total liabilities and equity
|
2,652,123
|
2,518,430
|
2,521,771
|
|
|
%
|
%
|
%
|
|
Ratio of customer advances to customer accounts
|
71.1
|
69.8
|
70.6
|
|
Credit risk
|
Loans and advances to customers at amortised cost
|
906,278
|
|
68,078
|
|
3,069
|
|
2,136
|
|
15,367
|
|
800
|
|
990,523
|
|
|
(1,273
|
)
|
(2,230
|
)
|
(246
|
)
|
(251
|
)
|
(5,665
|
)
|
(190
|
)
|
(9,358
|
)
|
|
0.1
|
|
3.3
|
|
8.0
|
|
11.8
|
|
36.9
|
|
23.8
|
|
0.9
|
|
- personal
|
365,886
|
|
17,580
|
|
2,183
|
|
1,317
|
|
4,812
|
|
-
|
|
388,278
|
|
|
(559
|
)
|
(1,184
|
)
|
(191
|
)
|
(224
|
)
|
(1,325
|
)
|
-
|
|
(3,068
|
)
|
|
0.2
|
|
6.7
|
|
8.7
|
|
17.0
|
|
27.5
|
|
-
|
|
0.8
|
|
-
corporate and commercial
|
483,882
|
|
47,415
|
|
870
|
|
806
|
|
9,964
|
|
800
|
|
542,061
|
|
|
(675
|
)
|
(1,020
|
)
|
(55
|
)
|
(27
|
)
|
(4,138
|
)
|
(190
|
)
|
(6,023
|
)
|
|
0.1
|
|
2.2
|
|
6.3
|
|
3.3
|
|
41.5
|
|
23.8
|
|
1.1
|
|
-
non-bank financial institutions
|
56,510
|
|
3,083
|
|
16
|
|
13
|
|
591
|
|
-
|
|
60,184
|
|
|
(39
|
)
|
(26
|
)
|
-
|
|
-
|
|
(202
|
)
|
-
|
|
(267
|
)
|
|
0.1
|
|
0.8
|
|
-
|
|
-
|
|
34.2
|
|
-
|
|
0.4
|
|
Loans and advances to banks at amortised cost
|
78,137
|
|
594
|
|
2
|
|
30
|
|
19
|
|
-
|
|
78,750
|
|
|
(18
|
)
|
(3
|
)
|
(1
|
)
|
-
|
|
(2
|
)
|
-
|
|
(23
|
)
|
|
-
|
|
0.5
|
|
50.0
|
|
-
|
|
10.5
|
|
-
|
|
-
|
|
Other financial assets measured at amortised cost
|
613,843
|
|
1,084
|
|
22
|
|
45
|
|
79
|
|
2
|
|
615,008
|
|
|
(40
|
)
|
(3
|
)
|
-
|
|
-
|
|
(32
|
)
|
-
|
|
(75
|
)
|
|
-
|
|
0.3
|
|
-
|
|
-
|
|
40.5
|
|
-
|
|
-
|
|
Loan and other credit-related commitments
|
487,707
|
|
29,359
|
|
|
|
696
|
|
7
|
|
517,769
|
|
|
(109
|
)
|
(172
|
)
|
|
|
(94
|
)
|
-
|
|
(375
|
)
|
|
-
|
|
0.6
|
|
|
|
13.5
|
|
-
|
|
0.1
|
|
||||||
- personal
|
202,538
|
|
2,912
|
|
|
|
188
|
|
-
|
|
205,638
|
|
|
(11
|
)
|
(1
|
)
|
|
|
(32
|
)
|
-
|
|
(44
|
)
|
|
-
|
|
-
|
|
|
|
17.0
|
|
-
|
|
-
|
|
||||||
-
corporate and commercial
|
237,562
|
|
25,304
|
|
|
|
462
|
|
7
|
|
263,335
|
|
|
(91
|
)
|
(171
|
)
|
|
|
(62
|
)
|
-
|
|
(324
|
)
|
|
-
|
|
0.7
|
|
|
|
13.4
|
|
-
|
|
0.1
|
|
||||||
- financial
|
47,607
|
|
1,143
|
|
|
|
46
|
|
-
|
|
48,796
|
|
|
(7
|
)
|
-
|
|
|
|
-
|
|
-
|
|
(7
|
)
|
|
-
|
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
||||||
Financial guarantee and similar contracts
|
79,251
|
|
9,014
|
|
|
|
814
|
|
17
|
|
89,096
|
|
|
(43
|
)
|
(57
|
)
|
|
|
(84
|
)
|
-
|
|
(184
|
)
|
|
0.1
|
|
0.6
|
|
|
|
10.3
|
|
-
|
|
0.2
|
|
||||||
- personal
|
1,404
|
|
1
|
|
|
|
3
|
|
-
|
|
1,408
|
|
|
(1
|
)
|
-
|
|
|
|
(2
|
)
|
-
|
|
(3
|
)
|
|
0.1
|
|
-
|
|
|
|
66.7
|
|
-
|
|
0.2
|
|
||||||
-
corporate and commercial
|
66,892
|
|
8,632
|
|
|
|
811
|
|
17
|
|
76,352
|
|
|
(38
|
)
|
(56
|
)
|
|
|
(82
|
)
|
-
|
|
(176
|
)
|
|
0.1
|
|
0.6
|
|
|
|
10.1
|
|
-
|
|
0.2
|
|
||||||
- financial
|
10,955
|
|
381
|
|
|
|
-
|
|
-
|
|
11,336
|
|
|
(4
|
)
|
(1
|
)
|
|
|
-
|
|
-
|
|
(5
|
)
|
|
-
|
|
0.3
|
|
|
|
-
|
|
-
|
|
-
|
|
||||||
At 31 Mar 2018
|
2,165,216
|
|
108,129
|
|
|
|
16,975
|
|
826
|
|
2,291,146
|
|
|
(1,483
|
)
|
(2,465
|
)
|
|
|
(5,877
|
)
|
(190
|
)
|
(10,015
|
)
|
|
0.1
|
|
2.3
|
|
|
|
34.6
|
|
23.0
|
|
0.4
|
|
Loans and advances to customers at amortised cost
|
871,566
|
|
72,658
|
|
2,393
|
|
2,447
|
|
13,882
|
|
974
|
|
959,080
|
|
|
(1,309
|
)
|
(2,201
|
)
|
(261
|
)
|
(261
|
)
|
(5,591
|
)
|
(242
|
)
|
(9,343
|
)
|
|
0.2
|
|
3.0
|
|
10.9
|
|
10.7
|
|
40.3
|
|
24.8
|
|
1.0
|
|
- personal
|
354,305
|
|
16,354
|
|
1,683
|
|
1,428
|
|
4,410
|
|
-
|
|
375,069
|
|
|
(581
|
)
|
(1,156
|
)
|
(218
|
)
|
(230
|
)
|
(1,310
|
)
|
-
|
|
(3,047
|
)
|
|
0.2
|
|
7.1
|
|
13.0
|
|
16.1
|
|
29.7
|
|
-
|
|
0.8
|
|
-
corporate and commercial
|
456,837
|
|
53,262
|
|
684
|
|
977
|
|
9,064
|
|
974
|
|
520,137
|
|
|
(701
|
)
|
(1,037
|
)
|
(42
|
)
|
(31
|
)
|
(4,073
|
)
|
(242
|
)
|
(6,053
|
)
|
|
0.2
|
|
1.9
|
|
6.1
|
|
3.2
|
|
44.9
|
|
24.8
|
|
1.2
|
|
-
non-bank financial institutions
|
60,424
|
|
3,042
|
|
26
|
|
42
|
|
408
|
|
-
|
|
63,874
|
|
|
(27
|
)
|
(8
|
)
|
(1
|
)
|
-
|
|
(208
|
)
|
-
|
|
(243
|
)
|
|
-
|
|
0.3
|
|
3.8
|
|
-
|
|
51.0
|
|
-
|
|
0.4
|
|
Loans and advances to banks at amortised cost
|
81,027
|
|
1,540
|
|
7
|
|
66
|
|
15
|
|
-
|
|
82,582
|
|
|
(17
|
)
|
(4
|
)
|
(2
|
)
|
-
|
|
(2
|
)
|
-
|
|
(23
|
)
|
|
-
|
|
0.3
|
|
28.6
|
|
-
|
|
13.3
|
|
-
|
|
-
|
|
Other financial assets measured at amortised cost
|
556,185
|
|
1,517
|
|
133
|
|
46
|
|
155
|
|
7
|
|
557,864
|
|
|
(28
|
)
|
(4
|
)
|
-
|
|
(1
|
)
|
(82
|
)
|
-
|
|
(114
|
)
|
|
-
|
|
0.3
|
|
-
|
|
2.2
|
|
52.9
|
|
-
|
|
-
|
|
Loan and other credit-related commitments
|
475,986
|
|
24,330
|
|
|
|
999
|
|
46
|
|
501,361
|
|
|
(126
|
)
|
(183
|
)
|
|
|
(67
|
)
|
-
|
|
(376
|
)
|
|
-
|
|
0.8
|
|
|
|
6.7
|
|
-
|
|
0.1
|
|
||||||
- personal
|
194,320
|
|
1,314
|
|
|
|
459
|
|
-
|
|
196,093
|
|
|
(13
|
)
|
(1
|
)
|
|
|
-
|
|
-
|
|
(14
|
)
|
|
-
|
|
0.1
|
|
|
|
-
|
|
-
|
|
-
|
|
||||||
-
corporate and commercial
|
240,854
|
|
20,951
|
|
|
|
540
|
|
46
|
|
262,391
|
|
|
(108
|
)
|
(180
|
)
|
|
|
(67
|
)
|
-
|
|
(355
|
)
|
|
-
|
|
0.9
|
|
|
|
12.4
|
|
-
|
|
0.1
|
|
||||||
-
financial
|
40,812
|
|
2,065
|
|
|
|
-
|
|
-
|
|
42,877
|
|
|
(5
|
)
|
(2
|
)
|
|
|
-
|
|
-
|
|
(7
|
)
|
|
-
|
|
0.1
|
|
|
|
-
|
|
-
|
|
-
|
|
||||||
Financial guarantee and similar contracts
|
77,921
|
|
11,014
|
|
|
|
413
|
|
34
|
|
89,382
|
|
|
(36
|
)
|
(47
|
)
|
|
|
(78
|
)
|
-
|
|
(161
|
)
|
|
-
|
|
0.4
|
|
|
|
18.9
|
|
-
|
|
0.2
|
|
||||||
- personal
|
768
|
|
18
|
|
|
|
5
|
|
-
|
|
791
|
|
|
-
|
|
(2
|
)
|
|
|
(2
|
)
|
-
|
|
(4
|
)
|
|
-
|
|
11.1
|
|
|
|
40.0
|
|
-
|
|
0.5
|
|
||||||
-
corporate and commercial
|
67,596
|
|
10,064
|
|
|
|
408
|
|
34
|
|
78,102
|
|
|
(35
|
)
|
(44
|
)
|
|
|
(74
|
)
|
-
|
|
(153
|
)
|
|
0.1
|
|
0.4
|
|
|
|
18.1
|
|
-
|
|
0.2
|
|
||||||
- financial
|
9,557
|
|
932
|
|
|
|
-
|
|
-
|
|
10,489
|
|
|
(1
|
)
|
(1
|
)
|
|
|
(2
|
)
|
-
|
|
(4
|
)
|
|
-
|
|
0.1
|
|
|
|
-
|
|
-
|
|
-
|
|
||||||
At 1 Jan 2018
|
2,062,685
|
|
111,059
|
|
|
|
15,464
|
|
1,061
|
|
2,190,269
|
|
|
(1,516
|
)
|
(2,439
|
)
|
|
|
(5,820
|
)
|
(242
|
)
|
(10,017
|
)
|
|
0.1
|
|
2.2
|
|
|
|
37.6
|
|
22.8
|
|
0.5
|
|
Capital
|
Key
metrics
|
|||||
|
|
|
At
|
||
|
|
|
31 Mar
1
|
1
Jan
1
|
31
Dec
2
|
Ref*
|
|
Footnotes
|
2018
|
2018
|
2017
|
|
Available capital ($bn)
|
3
|
|
|
|
1
|
Common equity tier 1 ('CET1') capital
|
|
129.6
|
127.3
|
126.1
|
2
|
CET1 capital as if IFRS 9 transitional arrangements had not been
applied
|
|
128.6
|
126.3
|
N/A
|
3
|
Tier 1 capital
|
|
157.1
|
152.1
|
151.0
|
4
|
Tier 1 capital as if IFRS 9 transitional arrangements had not been
applied
|
|
156.1
|
151.1
|
N/A
|
5
|
Total capital
|
|
185.2
|
183.1
|
182.4
|
6
|
Total capital as if IFRS 9 transitional arrangements had not been
applied
|
|
184.2
|
182.1
|
N/A
|
|
Risk-weighted assets ('RWAs') ($bn)
|
|
|
|
|
7
|
Total RWAs
|
|
894.4
|
872.1
|
871.3
|
8
|
Total RWAs as if IFRS 9 transitional arrangements had not been
applied
|
|
893.8
|
871.6
|
N/A
|
|
Capital ratios (%)
|
3
|
|
|
|
9
|
CET1
|
|
14.5
|
14.6
|
14.5
|
10
|
CET1 as if IFRS 9 transitional arrangements had not been
applied
|
|
14.4
|
14.5
|
N/A
|
11
|
Tier 1
|
|
17.6
|
17.4
|
17.3
|
12
|
Tier 1 as if IFRS 9 transitional arrangements had not been
applied
|
|
17.5
|
17.3
|
N/A
|
13
|
Total capital
|
|
20.7
|
21.0
|
20.9
|
14
|
Total capital as if IFRS 9 transitional arrangements had not been
applied
|
|
20.6
|
20.9
|
N/A
|
|
Additional CET1 buffer requirements as a percentage of RWA
(%)
|
|
|
|
|
|
Capital conservation buffer requirement
|
|
1.88
|
N/A
|
1.25
|
|
Countercyclical buffer requirement
|
|
0.34
|
N/A
|
0.22
|
|
Bank G-SIB and/or D-SIB additional requirements
|
|
1.50
|
N/A
|
1.25
|
|
Total of bank CET1 specific buffer requirements
|
|
3.72
|
N/A
|
2.72
|
|
CET1 available after meeting the bank's minimum capital
requirements
|
4
|
8.0
|
N/A
|
8.0
|
|
Total Capital Requirement (%)
|
|
|
|
|
|
Total Capital Requirement
|
|
11.5
|
N/A
|
N/A
|
|
Leverage ratio
|
|
|
|
|
15
|
Total leverage ratio exposure measure ($bn)
|
|
2,707.9
|
2,556.4
|
2,557.1
|
16
|
Leverage ratio (%)
|
5
|
5.6
|
5.6
|
5.6
|
17
|
Leverage ratio as if IFRS 9 transitional arrangements had not been
applied (%)
|
5
|
5.5
|
5.6
|
N/A
|
|
Liquidity Coverage Ratio ('LCR')
|
6
|
|
|
|
|
Total high-quality liquid assets ($bn)
|
|
533.1
|
N/A
|
512.6
|
|
Total net cash outflow ($bn)
|
|
338.5
|
N/A
|
359.9
|
|
LCR ratio (%)
|
7
|
157.5
|
N/A
|
142.2
|
Leverage
|
Leverage
ratio
|
|||||
|
|
At
|
|||
|
|
31 Mar
1
|
1
Jan
1
|
31
Dec
2
|
|
|
|
2018
|
2018
|
2017
|
|
Ref*
|
|
$bn
|
$bn
|
$bn
|
|
20
|
Tier
1 capital
|
150.3
|
143.8
|
|
142.7
|
21
|
Total
leverage ratio exposure
|
2,707.9
|
2,556.4
|
|
2,557.1
|
|
|
%
|
%
|
%
|
|
22
|
Leverage ratio
|
5.6
|
5.6
|
|
5.6
|
EU-23
|
Choice
on transitional arrangements for the definition of the capital
measure
|
Fully phased-in
|
Fully phased-in
|
Fully phased-in
|
|
|
UK leverage ratio exposure - quarterly average
|
2,444.9
|
2,351.2
|
|
2,351.4
|
|
|
%
|
%
|
%
|
|
|
UK leverage ratio - quarterly average
|
6.1
|
6.2
|
|
6.1
|
|
UK leverage ratio - quarter end
|
6.0
|
6.1
|
|
6.1
|
Risk-weighted assets
|
Overview
of RWAs
|
|||||||||
|
|
31 Mar
1
|
1
Jan
1
|
31
Dec
2
|
31 Mar
|
||||
|
|
2018
|
2018
|
2017
|
2018
|
||||
|
|
RWA
|
RWA
|
RWA
|
Capital
requirement
8
|
||||
Ref*
|
|
$bn
|
$bn
|
$bn
|
$bn
|
||||
1
|
Credit risk (excluding counterparty credit risk)
|
638.1
|
|
624.0
|
|
623.9
|
|
51.1
|
|
2
|
- standardised approach
|
129.4
|
|
127.0
|
|
126.9
|
|
10.4
|
|
3
|
- foundation Internal Ratings Based ('IRB')
approach
|
30.4
|
|
28.4
|
|
28.4
|
|
2.4
|
|
4
|
- advanced IRB approach
|
478.3
|
|
468.6
|
|
468.6
|
|
38.3
|
|
6
|
Counterparty credit risk
|
57.9
|
|
54.1
|
|
54.1
|
|
4.5
|
|
7
|
- mark-to-market
|
37.7
|
|
34.2
|
|
34.2
|
|
3.0
|
|
10
|
- internal model method
|
10.4
|
|
9.7
|
|
9.7
|
|
0.8
|
|
11
|
- risk exposure amount for contributions to the default fund
of a central counterparty
|
0.6
|
|
0.7
|
|
0.7
|
|
-
|
|
12
|
- credit valuation adjustment
|
9.2
|
|
9.5
|
|
9.5
|
|
0.7
|
|
13
|
Settlement risk
|
0.1
|
|
0.4
|
|
0.4
|
|
-
|
|
14
|
Securitisation exposures in the non-trading book
|
14.8
|
|
15.2
|
|
15.3
|
|
1.1
|
|
15
|
- IRB ratings based method
|
11.3
|
|
11.9
|
|
12.0
|
|
0.9
|
|
16
|
- IRB supervisory formula method
|
-
|
|
0.2
|
|
0.2
|
|
-
|
|
17
|
- IRB internal assessment approach
|
1.7
|
|
1.5
|
|
1.5
|
|
0.1
|
|
18
|
- standardised approach
|
1.8
|
|
1.6
|
|
1.6
|
|
0.1
|
|
19
|
Market risk
|
43.2
|
|
38.9
|
|
38.9
|
|
3.5
|
|
20
|
- standardised approach
|
4.8
|
|
4.4
|
|
4.4
|
|
0.4
|
|
21
|
- internal models approach
|
38.4
|
|
34.5
|
|
34.5
|
|
3.1
|
|
23
|
Operational risk
|
92.7
|
|
92.7
|
|
92.7
|
|
7.4
|
|
25
|
- standardised approach
|
92.7
|
|
92.7
|
|
92.7
|
|
7.4
|
|
27
|
Amounts below the thresholds for deduction (subject to 250% risk
weight)
|
47.6
|
|
46.8
|
|
46.0
|
|
3.8
|
|
29
|
Total
|
894.4
|
|
872.1
|
|
871.3
|
|
71.4
|
|
RWAs
by global business
|
||||||||||||
|
RBWM
|
CMB
|
GB&M
|
GPB
|
CorporateCentre
|
Total
|
||||||
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
||||||
Credit
risk
|
98.5
|
|
290.3
|
|
177.3
|
|
13.9
|
|
120.5
|
|
700.5
|
|
Counterparty
credit risk
|
-
|
|
-
|
|
56.1
|
|
0.2
|
|
1.7
|
|
58.0
|
|
Market
risk
|
-
|
|
-
|
|
40.1
|
|
-
|
|
3.1
|
|
43.2
|
|
Operational
risk
|
27.3
|
|
23.7
|
|
30.8
|
|
2.8
|
|
8.1
|
|
92.7
|
|
At 31 Mar 2018
|
125.8
|
|
314.0
|
|
304.3
|
|
16.9
|
|
133.4
|
|
894.4
|
|
RWAs
by geographical region
|
|||||||||||||
|
|
Europe
|
Asia
|
MENA
|
NorthAmerica
|
LatinAmerica
|
Total
|
||||||
|
Footnote
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
$bn
|
||||||
Credit
risk
|
|
231.6
|
|
292.7
|
|
47.9
|
|
100.0
|
|
28.3
|
|
700.5
|
|
Counterparty
credit risk
|
|
29.2
|
|
14.2
|
|
1.0
|
|
12.1
|
|
1.5
|
|
58.0
|
|
Market
risk
|
9
|
29.1
|
|
23.7
|
|
3.8
|
|
9.1
|
|
1.3
|
|
43.2
|
|
Operational
risk
|
|
28.9
|
|
37.1
|
|
7.1
|
|
12.1
|
|
7.5
|
|
92.7
|
|
At 31 Mar 2018
|
|
318.8
|
|
367.7
|
|
59.8
|
|
133.3
|
|
38.6
|
|
894.4
|
|
Footnotes to capital, leverage and risk-weighted
assets
|
|
1
|
Unless otherwise stated, all figures are calculated using the EU's
regulatory transitional arrangements for IFRS 9 in article 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
|
Leverage ratio is calculated using the CRD IV end-point basis for
additional tier 1 capital.
|
6
|
The EU's regulatory transitional arrangements for IFRS 9 in article
473a of the Capital Requirements Regulation do not apply to
liquidity coverage measures.
|
7
|
LCR is calculated as at the end of each period rather than using
average values.
|
8
|
'Capital requirement' represents the minimum total capital charge
set at 8% of RWAs by article 92 of the Capital Requirements
Regulation.
|
9
|
RWAs are non-additive across geographical regions due to market
risk diversification effects within the Group.
|
10
|
Securitisation positions are not included in this
table.
|
Summary information - global businesses
|
|
Quarter ended 31 Dec 2017
|
||||||
Net interest income
|
3,684
|
|
2,462
|
1,482
|
216
|
(356)
|
7,488
|
Net fee income
|
1,295
|
|
898
|
771
|
179
|
(27)
|
3,116
|
Net
income from financial instruments held for trading or managed on a
fair value basis
2,3
|
122
|
|
159
|
1,087
|
32
|
638
|
2,038
|
Net
income from assets and liabilities of insurance businesses,
including related derivatives, measured at fair value through
profit or loss
2
|
630
|
|
(6)
|
-
|
10
|
-
|
634
|
Changes
in fair value of other financial instruments mandatorily measured
at fair value through profit or loss
2
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
Other
income/(expense)
1,3
|
(602
|
)
|
19
|
123
|
(7)
|
(127)
|
(594)
|
Net operating income/(expense) before loan impairment charges and
other credit risk provisions
|
5,129
|
|
3,532
|
3,463
|
430
|
128
|
12,682
|
Loan impairment (charges)/recoveries and other credit risk
provisions
|
(188
|
)
|
(198)
|
(392)
|
1
|
95
|
(682)
|
Net operating income/(expense)
|
4,941
|
|
3,334
|
3,071
|
431
|
223
|
12,000
|
Total operating expenses
|
(3,527
|
)
|
(1,613)
|
(2,237)
|
(338)
|
(1,226)
|
(8,941)
|
Operating profit/(loss)
|
1,414
|
|
1,721
|
834
|
93
|
(1,003)
|
3,059
|
Share of profit in associates and joint ventures
|
16
|
|
-
|
-
|
-
|
558
|
574
|
Adjusted profit/(loss) before tax
|
1,430
|
|
1,721
|
834
|
93
|
(445)
|
3,633
|
|
%
|
%
|
%
|
%
|
%
|
%
|
|
Share of HSBC's adjusted profit before tax
|
39.4
|
|
47.4
|
23.0
|
2.6
|
(12.4)
|
100.0
|
Adjusted cost efficiency ratio
|
68.8
|
|
45.7
|
64.6
|
78.6
|
957.8
|
70.5
|
Summary information - geographical regions
|
Footnotes to summary information - global businesses and
geographical regions
|
|
1
|
Other income in this context comprises where applicable changes in
fair value of long-term debt and related derivatives, gains less
losses from financial investments, dividend income, net insurance
premium income and other operating income less net insurance claims
and benefits paid and movement in liabilities to
policyholders.
|
2
|
The classification and measurement requirements under IFRS 9, which
was adopted from 1 January 2018, are based on an entity's
assessment of both the business model for managing the assets and
the contractual cash flow characteristics of the assets. The
standard contains a classification for items measured mandatorily
at fair value through profit or loss as a residual category.
Given its residual nature, the presentation of the income statement
has been updated to separately present items in this category which
are of a dissimilar nature or function, in line with IAS 1
'Presentation of Financial Statements' requirements. Comparative
data have been re-presented. There is no net impact on Total
operating income.
|
3
|
Prior to 2018 foreign exchange exposure on some financial
instruments designated at fair value was presented in the same line
in the income statement as the underlying fair value movement on
these instruments. In 2018 we have grouped the presentation of the
entire effect of foreign exchange exposure in profit or loss and
presented it within 'Net income from financial instruments held for
trading or managed on a fair value basis'. Comparative data have
been re-presented. There is no net impact on Total operating income
and the impact on 'Changes in fair value of long-term debt and
related derivatives' is $563m in 4Q17 and $84m in
1Q17.
|
4
|
Client assets are translated at the rates of exchange applicable
for their respective period-ends, with the effects of currency
translation reported separately. The main components of client
assets are funds under management, which are not reported on the
Group's balance sheet, and customer deposits, which are reported on
the Group's balance sheet.
|
5
|
'Middle East' is an offshore business, therefore client assets are
booked across to various regions, primarily in Europe.
|
Appendix - selected information
|
First interim dividend for 2018
|
Terms and abbreviations
|
HSBC
Holdings plc
|
|
|
|
|
By: /s/
Ben J S Mathews
|
|
Name:
Ben J S Mathews
|
|
Title:
Group Company Secretary
|
|
|
|
Date:
04 May 2018
|
1 Year Hsbc Holdings, Plc. Perpetual Sub Cap Secs (delisted) Chart |
1 Month Hsbc Holdings, Plc. Perpetual Sub Cap Secs (delisted) Chart |
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