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 July
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
HSBC HOLDINGS PLC
2024 Interim results
Noel Quinn, Group Chief Executive, said:
“After delivering record profits in 2023, we had another
strong profit performance in the first half of 2024, which is
further evidence that our strategy is working. Our investment in
Wealth is delivering higher, more diversified revenue and we
continue to grow our core international and scale businesses, all
of which helped us to provide $13.7bn of distributions in respect
of the first half. We are confident that we have the right strategy
and model to grow revenue, even in a lower interest rate
environment, and are therefore providing new guidance of a
mid-teens return on average tangible equity in 2025.
I have always been immensely proud of the heritage of this bank and
the strategic role it plays in the world. My aim when I took this
job was to deliver financial performance to match our standing.
Working together, I believe we have done that and created a strong
platform for growth.”
Financial performance in 1H24
- Profit before tax of $21.6bn
was stable compared with 1H23, including a $0.2bn net favourable revenue impact
of notable items relating to gains and losses recognised on certain
strategic transactions. Profit after tax of $17.7bn was
$0.4bn or 2% lower compared with 1H23.
- In
1H24, we completed the disposal of our banking business in Canada,
recognising a gain of $4.8bn. We also recognised an impairment of
$1.2bn following the classification of our business in Argentina as
held for sale. Results in 1H23 included the impact of a $2.1bn
reversal of an impairment relating to the sale of our retail
banking operations in France and a $1.5bn gain recognised on the
acquisition of Silicon Valley Bank UK Limited (‘SVB
UK’).
- Constant currency profit before
tax excluding notable items was stable at $18.1bn compared with
1H23, as revenue growth and
lower expected credit losses and other impairment charges
(‘ECL’) were offset by a rise in operating
expenses.
- Revenue rose by $0.4bn or 1% to
$37.3bn compared with 1H23, including the gains and losses on certain
strategic transactions described above. Net interest income
(‘NII’) fell by $1.4bn, as growth in HSBC UK
and a number of other markets was more than offset by
reductions due to business disposals, deposit migration, and
redeployment into the trading book in HSBC Bank plc and our main
entity in Hong Kong. The increase in funding costs associated with
funding the trading book resulted in an increase in banking net
interest income (‘banking NII’) of $0.3bn or
1%.
- Revenue growth also reflected the impact of higher
customer activity in our Wealth products in Wealth and Personal
Banking (‘WPB’), and in Equities and Securities
Financing in Global Banking and Markets (‘GBM’).
Constant currency
revenue excluding notable items rose by 2% to $33.7bn,
primarily due to growth in Wealth in
WPB, in Equities and Securities Financing in GBM, as well as an
increase in Global Payment Solutions
(‘GPS’).
- Net interest margin
(‘NIM’) of 1.62% decreased by 8 basis points
(‘bps’) compared with 1H23, reflecting a rise in the funding cost of average
interest-bearing liabilities.
-
ECL charges were $1.1bn, a
reduction of $0.3bn compared with 1H23. The reduction reflected a release of stage 3
allowances in GBM in HSBC Bank plc, lower ECL in Commercial Banking
(‘CMB’) in HSBC UK, and lower charges in the commercial
real estate sector in mainland China. In WPB, ECL charges were
broadly stable as a release of allowances in the UK was offset by
higher charges in Mexico, reflecting unemployment trends and growth
in our unsecured portfolio. Annualised ECL were 22bps of
average gross loans, including
a 4bps reduction due to the inclusion of loans and advances
classified as held for sale.
-
Operating expenses of $16.3bn
were $0.8bn or 5% higher than in 1H23, mainly due to higher technology spend and
investment, inflationary pressures and an increase in the
performance-related pay accrual. Target basis operating expenses
rose by 7% compared with 1H23. This is measured on a constant currency basis,
excluding notable items, the impact of retranslating the prior year
results of hyperinflationary economies at constant currency, and
the direct costs from the sales of our France retail banking
operations and our banking business in Canada.
-
Customer lending balances of
$938bn were stable on a reported basis, and increased by $12bn on a constant currency
basis, compared with 31 December 2023. Growth included higher
balances in HSBC Bank plc in both CMB and GBM, and higher term
lending in CMB in our entities in mainland China and India. In
addition, mortgage balances increased in HSBC UK
in WPB.
-
Customer accounts of $1.6tn
fell by $18bn on a reported basis, and increased by $3bn on a constant currency basis
compared with 31 December 2023, notably in GBM reflecting
growth in time deposit balances in Asia. The increase in GBM
included a short-term deposit from a single corporate
customer.
-
Common equity tier 1
(‘CET1’) capital ratio of 15.0% rose by 0.2 percentage
points compared with 4Q23, driven by a reduction in risk-weighted assets
(‘RWAs’), partly offset by a reduction in our CET1
capital.
-
The Board has approved a second interim dividend of
$0.10 per share. We also intend
to initiate a share buy-back of up to
$3bn, which we expect to
complete within three months.
Financial performance in 2Q24
-
Reported profit before tax
increased by $0.1bn to $8.9bn compared with 2Q23,
due to a lower ECL charge, which more
than offset higher operating expenses and lower revenue.
On a constant
currency basis, profit before tax increased by $0.4bn or
4%.
-
Revenue fell by $0.2bn to
$16.5bn compared with 2Q23, notably as 2Q23 included the operating results of
France and Canada for which sales completed in 1Q24. In addition,
2Q24 included a loss related to the recycling of reserves following
the completion of the sale of our business in Russia. This was
partly offset by growth in Securities Financing and Equities in GBM
and from Wealth in WPB.
-
ECL of $0.3bn decreased by
$0.6bn, reflecting lower
charges in 2Q24 in the commercial real estate sector in mainland
China, compared with 2Q23, as well as a reduction in charges in
HSBC UK, and the release of stage 3 allowances in GBM in HSBC Bank
plc.
-
Operating expenses of $8.1bn
rose by $0.3bn or 3%, due to
higher technology costs, including investment, the 2Q23 reversal of
historical asset impairments, which did not recur, and inflationary
impacts. This was partly offset by reductions following the
completion of disposals in Canada and France.
-
Customer lending increased by
$5bn compared with 1Q24 on a reported basis and by $8bn on a constant currency basis. The
growth was mainly from CMB, notably in our entities in mainland
China and India, and in WPB from mortgage balance growth in HSBC UK
and our entity in the US.
-
Customer accounts increased by
$24bn compared with 1Q24 on a reported basis and by $27bn on a constant currency basis. The
increase was across all businesses, primarily in Asia. The increase
included a short-term deposit from a single corporate
customer.
Outlook
-
We
will now target a return on average tangible equity
(‘RoTE‘), excluding the impact of notable items, in the
mid-teens for both 2024 and 2025.
-
Based upon our current forecasts,
we expect banking
NII of around $43bn in 2024. This guidance remains dependent on the path of
interest rates globally.
-
While loan growth was 1% in 1H24, revenue has
continued to benefit from elevated interest rates.
Over the medium to
long term, we continue to expect mid-single digit year-on-year
percentage growth in customer lending.
-
We are reiterating our cost
growth guidance of approximately 5% for 2024 compared with 2023, on a target basis, and
now expect
ECL charges as a percentage of average gross loans in 2024 to be
within our medium-term planning range of 30bps to 40bps
(including customer lending balances
transferred to held for sale).
-
Our
guidance reflects our current outlook for the global macroeconomic
environment, including customer and financial markets activity.
This includes our modelling of a number of market dependent
factors, such as market-implied interest rates (as of mid-July
2024), as well as customer behaviour and activity
levels.
-
We intend to manage our CET1
capital ratio within our medium-term target range of 14% to 14.5%,
with a dividend payout ratio target basis of 50% for 2024,
which excludes material notable items
and related impacts.
-
Note:
we do not reconcile our forward guidance on RoTE excluding notable
items, target basis operating expenses, dividend payout ratio
target basis or banking NII to their equivalent reported
measures.
Key financial metrics
|
Half-year to
|
|
30 Jun 2024
|
30 Jun 2023
|
Reported results
|
|
|
Profit before tax ($m)
|
21,556
|
21,657
|
Profit after tax ($m)
|
17,665
|
18,071
|
Cost efficiency ratio (%)
|
43.7
|
41.9
|
Net interest margin (%)
|
1.62
|
1.70
|
Basic earnings per share ($)
|
0.89
|
0.86
|
Diluted earnings per share ($)
|
0.88
|
0.86
|
Dividend per ordinary share (in respect of the period)
($)1
|
0.20
|
0.20
|
Alternative performance measures
|
|
|
Constant currency profit before tax ($m)
|
21,556
|
21,472
|
Constant currency cost efficiency ratio (%)
|
43.7
|
41.8
|
Constant currency revenue excluding notable items ($m)
|
33,721
|
33,075
|
Constant currency profit before tax excluding notable items
($m)
|
18,067
|
18,117
|
Constant currency revenue excluding notable items and strategic
transactions ($m)
|
33,543
|
32,462
|
Constant currency profit before tax excluding notable items and
strategic transactions ($m)
|
17,975
|
17,969
|
Expected credit losses and other credit impairment charges
(annualised) as % of average gross loans and advances to customers
(%)
|
0.23
|
0.28
|
Expected credit losses and other credit impairment charges
(annualised) as % of average gross loans and advances to customers,
including held for sale (%)
|
0.22
|
0.26
|
Basic earnings per share excluding material notable items and
related impacts ($)
|
0.68
|
0.70
|
Return on average ordinary shareholders’ equity (annualised)
(%)
|
19.8
|
20.8
|
Return on average tangible equity (annualised) (%)
|
21.4
|
22.4
|
Return on average tangible equity excluding notable items
(annualised) (%)
|
17.0
|
18.5
|
Target basis operating expenses ($m)
|
16,052
|
14,983
|
|
|
|
|
At
|
|
30 Jun 2024
|
31 Dec 2023
|
Balance sheet
|
|
|
Total assets ($m)
|
2,975,003
|
3,038,677
|
Net loans and advances to customers ($m)
|
938,257
|
938,535
|
Customer accounts ($m)
|
1,593,834
|
1,611,647
|
Average interest-earning assets, year to date ($m)
|
2,097,866
|
2,161,746
|
Loans and advances to customers as % of customer accounts
(%)
|
58.9
|
58.2
|
Total shareholders’ equity ($m)
|
183,293
|
185,329
|
Tangible ordinary shareholders’ equity ($m)
|
153,109
|
155,710
|
Net asset value per ordinary share at period end ($)
|
8.97
|
8.82
|
Tangible net asset value per ordinary share at period end
($)
|
8.35
|
8.19
|
Capital, leverage and liquidity
|
|
|
Common equity tier 1 capital ratio (%)2
|
15.0
|
14.8
|
Risk-weighted assets ($m)2,3
|
835,118
|
854,114
|
Total capital ratio (%)2,3
|
20.6
|
20.0
|
Leverage ratio (%)2,3
|
5.7
|
5.6
|
High-quality liquid assets (liquidity value, average)
($m)3,4
|
646,052
|
647,505
|
Liquidity coverage ratio (average) (%)3,4,5
|
137
|
136
|
Share count
|
|
|
Period end basic number of $0.50 ordinary shares outstanding
(millions)
|
18,330
|
19,006
|
Period end basic number of $0.50 ordinary shares outstanding and
dilutive potential ordinary shares (millions)
|
18,456
|
19,135
|
Average basic number of $0.50 ordinary shares outstanding
(millions)
|
18,666
|
19,478
|
|
|
|
For reconciliations of our reported results to a constant currency
basis, including lists of notable items, see page 40 of the Interim
Report 2024. For detail on other alternative performance measures,
including definitions and calculations, see ‘Reconciliation
of alternative performance measures’ on pages 56 to 61 of
the Interim Report 2024.
1 Dividend per ordinary share for half year to 30 June 2024
excludes the special dividend of $0.21 per ordinary share arising
from the proceeds of the sale of our banking business in Canada to
Royal Bank of Canada.
2 Unless otherwise stated, regulatory capital ratios and
requirements are based on the transitional arrangements of the
Capital Requirements Regulation in force at the time. References to
EU regulations and directives (including technical standards)
should, as applicable, be read as references to the UK‘s
version of such regulation or directive, as onshored into UK law
under the European Union (Withdrawal) Act 2018, and as may be
subsequently amended under UK law.
3 Regulatory numbers and ratios are as presented at the date of
reporting. Small changes may exist between these numbers and ratios
and those subsequently submitted in regulatory filings. Where
differences are significant, we may restate in subsequent
periods.
4 The liquidity coverage ratio is based on the average value of the
preceding 12 months.
5 We have enhanced our calculation processes during 1H24. As Group
LCR is reported as a 12-month average, the benefit of these changes
will be recognised incrementally over the coming year starting from
30 June 2024.
Highlights
|
Half-year to
|
|
30 Jun 2024
|
30 Jun 2023
|
|
$m
|
$m
|
Reported
|
|
|
Revenue1,2,3,4
|
37,292
|
36,876
|
Change in expected credit losses and other credit impairment
charges
|
(1,066)
|
(1,345)
|
Operating expenses
|
(16,296)
|
(15,457)
|
Share of profit in associates and joint ventures
|
1,626
|
1,583
|
Profit before tax
|
21,556
|
21,657
|
Tax (charge)/credit
|
(3,891)
|
(3,586)
|
Profit after tax
|
17,665
|
18,071
|
Constant currency5
|
|
|
Revenue1,2,3,4
|
37,292
|
36,502
|
Change in expected credit losses and other credit impairment
charges
|
(1,066)
|
(1,317)
|
Operating expenses
|
(16,296)
|
(15,244)
|
Share of profit in associates and joint ventures
|
1,626
|
1,531
|
Profit before tax
|
21,556
|
21,472
|
Tax (charge)/credit
|
(3,891)
|
(3,514)
|
Profit after tax
|
17,665
|
17,958
|
|
|
|
Notable items
|
|
|
Revenue
|
|
|
Disposals, acquisitions and related costs2,3,4
|
3,571
|
3,321
|
Fair value movements on financial instruments6
|
—
|
15
|
Operating expenses
|
|
|
Disposals, acquisitions and related costs
|
(101)
|
(118)
|
Restructuring and other related costs7
|
19
|
47
|
Tax
|
|
|
Tax (charge)/credit on notable items
|
14
|
(500)
|
Uncertain tax positions
|
—
|
427
|
1
Net
operating income before change in expected credit losses and other
credit impairment charges, also referred to as
revenue.
2
Includes
the reversal of a $2.1bn impairment loss relating to the sale of
our retail banking operations in France in 1Q23.
3 Includes a $4.8bn gain on disposal of our banking business in
Canada, inclusive of a $0.3bn gain on the foreign exchange hedging
of the sale proceeds, the recycling of $0.6bn in foreign currency
translation reserve losses and $0.4bn of other reserves recycling
losses. This is partly offset by a $1.2bn impairment recognised in
relation to the planned sale of our business in
Argentina.
4 Includes the gain of $1.5bn recognised in respect of the
acquisition of SVB UK in 1Q23.
5 Constant currency performance is computed by adjusting reported
results of comparative periods for the effects of foreign currency
translation differences, which distort period-on-period
comparisons.
6 Fair value movements on non-qualifying hedges in HSBC
Holdings.
7 Relates to reversals of restructuring provisions recognised
during 2022.
Review by Noel Quinn, Group Chief Executive
After achieving a record profit performance in 2023, we had a
strong first half financial performance that reflected our strategy
execution and revenue diversification over the past five years. We
remain confident that we can deliver attractive returns, even in a
lower interest rate environment, as a result of macroeconomic
trends that play to our strengths, market-leading businesses
connecting high-growth markets that we are continuing to invest in,
and ongoing cost discipline. As a result, we are providing new
guidance of a mid-teens return on average tangible equity,
excluding the impact of notable items, in 2025.
Over the last 18 months, HSBC’s business model has delivered
our highest return on average tangible equity for more than a
decade. We continued to perform well in our home markets of Hong
Kong and the UK – the two pillars upon which our bank is
built. The international wholesale banking business that we have
built on top of these pillars is mature and differentiated, and has
substantial scale. It remains our biggest competitive advantage and
is supported by leading transaction banking products and services
in global trade, payments and foreign exchange. Finally, we are
growing and investing in our international retail and wealth
business to sit alongside this, which is helping to diversify
revenue.
Each of these strengths contributed to a good revenue performance
in the first half of 2024, supported by higher interest rates. Our
strategy is working and providing attractive returns for our
shareholders. We have announced a second interim dividend of $0.10
per share, further to the first interim dividend of $0.10 per share
and the special dividend of $0.21 paid in June. We are also today
announcing a share buy-back of up to $3bn, further to the now
completed $3bn share buy-back announced at our first quarter
results. This means that we are announcing a further $4.8bn in
distributions with these results, taking the amount of capital
distributed in respect of the last 18 months to
$34.4bn.
As we look ahead, the path of interest rates and the outcomes of
elections are amongst the factors that will shape the global
operating environment. The progress that has been made reducing
inflation has enabled central banks to start cutting interest
rates. Although we expect a cautious approach, we have reduced our
sensitivity to interest rates. 2024 will also be the biggest
election year on record, as more than 4 billion people have an
opportunity to go to the polls. The US election result will be
watched particularly closely considering the potential for policy
change based on the result and the impact this could have beyond
its borders. We will continue to monitor these
situations.
Continued strong financial performance
The first half saw another strong profit performance, driven by
growth in our scale businesses and in areas where we have been
investing. There was strong revenue growth in Wealth, transaction
banking revenue remained stable and wholesale lending increased
again in the second quarter, on a constant currency basis, after
growing in the first quarter.
Profit before tax for the first half was $21.6bn, which was stable
compared with the first half of 2023. This included a $4.8bn gain
on the sale of our banking operations in Canada, partly offset by a
$1.2bn impairment related to the planned sale of our banking
operations in Argentina, which was announced in the first half. The
prior year also included a $2.1bn reversal of an impairment
relating to the sale of our retail banking operations in France and
a $1.5bn gain recognised on the acquisition of SVB UK.
Revenue increased by $0.4bn or 1% to $37.3bn, including the
aforementioned acquisition and disposal impacts, driven mainly by
higher banking net interest income. We achieved an annualised
return on average tangible equity of 21.4%, or 17% excluding
notable items.
Our three global businesses continued to perform well. In Wealth
and Personal Banking, profit before tax of $6.5bn was $2.2bn lower
than in 2023 on a constant currency basis, primarily due to the
non-recurrence of a $2.1bn reversal last year of an impairment
relating to the sale of our retail banking operations in France and
$0.1bn of profit before tax in the prior period from our Canadian
banking operations. Wealth revenue of $4.3bn was 12% higher than
the first half of last year, driven by increases in investment
distribution and Global Private Banking, as well as growth in asset
management and life insurance.
In Commercial Banking, profit before tax of $6.5bn was down by
$1.5bn on a constant currency basis, primarily due to the
non-recurrence of a $1.6bn gain last year on the acquisition of SVB
UK. Overall performance remained good, with revenue benefiting from
the higher rates environment, growth in transaction banking and
higher collaboration revenue.
Global Banking and Markets delivered a good performance. Revenue
grew by 5% on a constant currency basis, with good growth in areas
like Equities and Securities Financing, while still benefiting from
the interest rate environment.
First half operating expenses of $16.3bn were around 5% higher than
in 2023, mainly due to higher technology costs including
investments, inflationary pressures and different phasing of the
accrual of performance-related pay compared with 2023. On a target
basis, operating expenses were 7% higher than the same period last
year. As we expect the overall amount of performance-related pay
for 2024 not to be materially different to 2023, we expect lower
performance-related pay accrual in the second half. We are
therefore reconfirming our cost growth guidance of approximately 5%
for 2024 compared with 2023, on a target basis.
ECL and other credit impairment charges for the first half were
$1.1bn, which was a $0.3bn decrease on the first half of 2023. We
now expect ECLs as a percentage of average gross loans in 2024 to
be back within our medium-term planning range of 30bps to 40bps.
Our CET1 ratio at the end of the first half was 15.0%.
Our first half banking net interest income performance and the
improved net interest income outlook mean that we are upgrading our
2024 banking net interest income guidance from at least $41bn to
around $43bn.
Further opportunities to grow revenue
We also expect to deliver a return on average tangible equity in
the mid-teens for 2024 and 2025, excluding the impact of notable
items. Clearly there are downside risks to net interest income when
interest rates fall, but we’re confident that we have the
levers to achieve these targets.
The first lever is leveraging our international connectivity. We
have a strong international wholesale franchise. After a softer
year in 2023, international trade volumes are forecast to grow more
quickly this year and next. As the world’s leading trade
finance bank and the third-largest bank for global foreign exchange
revenue since 2021, we expect to capitalise on this. To illustrate
this growth potential, we grew wholesale multi-jurisdictional
client revenue by 4% in the first half of 2024, on a constant
currency basis and excluding HSBC Bank Canada, from $9.4bn to
$9.7bn.
Increasing global mobility amongst retail customers is also driving
demand for innovative cross-border banking solutions. This helped
us to grow international customers within Wealth and Personal
Banking by 11%, bringing the total to 7m customers. Revenue from
these customers also grew by 6% in the first half. We believe that
there is still significant untapped potential amongst international
wholesale and retail customers.
The second lever is maintaining our leadership in our home markets.
Our leading businesses in Hong Kong and the UK – two of the
biggest global financial centres – both grew profits before
tax in the first half, helped by their strong international
connectivity with the rest of the Group. In Hong Kong, our scale
and connectivity are delivering good profitability and enabling us
to capture new opportunities. In the first half, 345,000
new-to-bank customers opened accounts as we continued to capitalise
on the significant inflows into Hong Kong as customers seek higher
yields and quality products. In the UK, we grew international
customers by 8% to 2.7m, underlining the differentiated nature of
our UK business compared to other UK banks. Signs of economic
recovery were also underlined by growth in customer lending of 2%
compared with the first half of 2023. We remain confident in our
ability to grow further in these two critical markets.
The third lever is investing to diversify revenue. Over the last
five years, we have taken a number of actions to reduce our
sensitivity to interest rates and create the bank of the future.
Building our wealth business, especially in Asia, to capitalise on
increasing affluence has been one of the key priorities. As a
result of this, wealth revenue was up 12% in the first half, while
we attracted $32.4bn of net new invested assets. Payments is
another fee-based business that we are investing in to capitalise
on the expected increase in global payments revenue. We are the
number two bank globally by payments revenue, up from top four in
2022, with a market share of 4.8% in 2023 compared with 3.6%
in the prior year. HSBC was also named ‘World’s Best
Bank for Payments and Treasury’ by Euromoney, which was one
of 33 awards given to the bank in 2024 that also included
‘Best Bank in Asia’ and ‘World’s Best Bank
for Sustainable Finance’.
Through HSBC Innovation Banking, we are building a global
proposition that can help us to become known as the go-to bank for
innovation companies. Revenue from the new proposition increased by
4% in the second quarter and we have onboarded almost 600
new-to-bank innovation companies globally since the acquisition
of SVB UK.
Thank you
As I prepare to hand on the leadership of HSBC to Georges Elhedery
in September, I would like to place on record what an enormous
privilege it has been to lead this great institution. I never
imagined when I started my career 37 years ago that I would have
the honour of becoming Group Chief Executive. I have always been
immensely proud of the heritage of this bank and the strategic role
it plays in the world. My aim when I took this job was to deliver
financial performance to match our standing. Working together, I
believe we have done that and created a strong platform for
growth.
The success of our transformation programme is evident in the
improved returns that we have delivered. Since I became Group Chief
Executive, we have returned $36bn of dividends and $18bn of share
buy-backs to our shareholders, inclusive of the distributions we
have announced with these results, while also successfully
navigating the global pandemic.
This would not have been possible without the support and backing
of the Board, my Group Executive Committee colleagues and, of
course, the whole HSBC team. I have been very fortunate to work
with many talented, dedicated and committed people during my
career. I would like to thank them wholeheartedly for their
friendship and partnership – and I wish continued success to
Georges, and to all those who will write the next chapter in the
story of this great bank.
Noel Quinn
Group Chief Executive
31 July 2024
Financial summary
|
Half-year to
|
|
30 Jun 2024
|
30 Jun 2023
|
|
$m
|
$m
|
For the period
|
|
|
Profit before tax
|
21,556
|
21,657
|
Profit attributable to:
|
|
|
– ordinary shareholders of the parent company
|
16,586
|
16,966
|
Dividends on ordinary shares1
|
11,691
|
6,591
|
At the period end
|
|
|
Total shareholders’ equity
|
183,293
|
184,170
|
Total regulatory capital
|
172,084
|
170,021
|
Customer accounts
|
1,593,834
|
1,595,769
|
Total assets
|
2,975,003
|
3,041,476
|
Risk-weighted assets
|
835,118
|
859,545
|
Per ordinary share
|
$
|
$
|
Basic earnings
|
0.89
|
0.86
|
Dividend per ordinary share (paid in the period)1
|
0.62
|
0.33
|
Net asset value2
|
8.97
|
8.44
|
1
The
$0.62 dividend paid during the period consisted of a fourth interim
dividend of $0.31 per ordinary share in respect of the financial
year ended 31 December 2023 paid in April 2024, a first
interim dividend of $0.10 per ordinary share in respect of the
financial year ending 31 December 2024 and a special dividend of
$0.21 per ordinary share from the Canada sale
proceeds.
2
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
Constant currency profit before tax
|
|
Half-year to
|
|
30 Jun 2024
|
30 Jun 2023
|
|
$m
|
%
|
$m
|
%
|
Wealth and Personal Banking
|
6,458
|
30.0
|
8,626
|
40.2
|
Commercial Banking
|
6,463
|
30.0
|
7,933
|
36.9
|
Global Banking and Markets
|
3,813
|
17.7
|
3,409
|
15.9
|
Corporate Centre1
|
4,822
|
22.3
|
1,504
|
7.0
|
Profit before tax
|
21,556
|
100.0
|
21,472
|
100.0
|
1
On
1 January 2024, HSBC Continental Europe completed the sale of its
retail banking operations in France to CCF, a subsidiary of
Promontoria MMB SAS (‘My Money Group’). With effect
from this date, we have prospectively reclassified the portfolio of
retained loans, profit participation interest and licence agreement
of the CCF brand from WPB to Corporate Centre.
Distribution of results by legal entity
Reported profit/(loss) before tax
|
|
Half-year to
|
|
30 Jun 2024
|
30 Jun 2023
|
|
$m
|
%
|
$m
|
%
|
HSBC UK Bank plc
|
3,734
|
17.3
|
4,791
|
22.1
|
HSBC Bank plc
|
1,436
|
6.7
|
3,498
|
16.2
|
The Hongkong and Shanghai Banking Corporation Limited
|
10,893
|
50.5
|
10,917
|
50.4
|
HSBC Bank Middle East Limited
|
536
|
2.5
|
673
|
3.1
|
HSBC North America Holdings Inc.
|
423
|
2.0
|
701
|
3.2
|
HSBC Bank Canada
|
186
|
0.9
|
475
|
2.2
|
Grupo Financiero HSBC, S.A. de C.V.
|
466
|
2.2
|
436
|
2.0
|
Other trading entities1
|
1,034
|
4.7
|
1,282
|
6.0
|
– of which: other Middle East entities (including Oman,
Türkiye, Egypt and Saudi Arabia)
|
411
|
1.9
|
420
|
1.9
|
– of which: Saudi Awwal Bank
|
317
|
1.5
|
272
|
1.3
|
Holding companies, shared service centres and intra-Group
eliminations2
|
2,848
|
13.2
|
(1,116)
|
(5.2)
|
Profit before tax
|
21,556
|
100.0
|
21,657
|
100.0
|
1
Other
trading entities includes the results of entities located in Oman
(pre merger with Sohar International Bank SAOG in August 2023),
Türkiye, Egypt and Saudi Arabia (including our share of the
results of Saudi Awwal Bank) which do not consolidate into HSBC
Bank Middle East Limited. Supplementary analysis is provided on
page 56 of the Interim Report 2024 for a fuller picture of the
Middle East, North Africa and Türkiye regional
performance.
2
Includes
a $4.8bn gain on disposal of our banking business in Canada,
inclusive of a $0.3bn gain on the foreign exchange hedging of the
sale proceeds, the recycling of $0.6bn in foreign currency
translation reserve losses and $0.4bn of other reserves recycling
losses. This is partly offset by a $1.2bn impairment recognised in
relation to the planned sale of our business in
Argentina.
HSBC constant currency profit before tax and balance sheet
data
|
|
Half-year to 30 Jun 2024
|
|
Wealth and Personal Banking
|
Commercial
Banking
|
Global
Banking and
Markets
|
Corporate Centre
|
Total
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
Net operating income/(expense) before
change in expected credit losses and other credit impairment
charges1
|
14,312
|
10,896
|
8,742
|
3,342
|
37,292
|
– external
|
10,166
|
11,217
|
15,377
|
532
|
37,292
|
– inter-segment
|
4,146
|
(321)
|
(6,635)
|
2,810
|
—
|
– of which: net interest income/(expense)2
|
10,231
|
8,799
|
3,710
|
(5,829)
|
16,911
|
Change in expected credit losses and other credit impairment
charges
|
(476)
|
(573)
|
(11)
|
(6)
|
(1,066)
|
Net operating income
|
13,836
|
10,323
|
8,731
|
3,336
|
36,226
|
Total operating expenses
|
(7,406)
|
(3,861)
|
(4,918)
|
(111)
|
(16,296)
|
Operating profit
|
6,430
|
6,462
|
3,813
|
3,225
|
19,930
|
Share of profit in associates and joint ventures
|
28
|
1
|
—
|
1,597
|
1,626
|
Constant currency profit before tax
|
6,458
|
6,463
|
3,813
|
4,822
|
21,556
|
|
%
|
%
|
%
|
%
|
%
|
Share of HSBC’s constant currency profit before
tax
|
30.0
|
30.0
|
17.7
|
22.3
|
100.0
|
Constant currency cost efficiency ratio
|
51.7
|
35.4
|
56.3
|
3.3
|
43.7
|
Constant currency balance sheet data
|
$m
|
$m
|
$m
|
$m
|
$m
|
Loans and advances to customers (net)
|
445,882
|
310,356
|
174,376
|
7,643
|
938,257
|
Interests in associates and joint ventures
|
567
|
25
|
111
|
27,762
|
28,465
|
Total external assets
|
864,948
|
597,808
|
1,365,439
|
146,808
|
2,975,003
|
Customer accounts
|
794,807
|
467,362
|
331,269
|
396
|
1,593,834
|
Constant currency risk-weighted assets3
|
182,508
|
335,692
|
225,145
|
91,773
|
835,118
|
|
|
|
|
|
|
|
Half-year to 30 Jun 2023
|
Net operating income before change in expected credit losses and
other credit impairment charges1
|
16,095
|
12,086
|
8,321
|
—
|
36,502
|
– external
|
12,317
|
12,730
|
13,714
|
(2,259)
|
36,502
|
– inter-segment
|
3,778
|
(644)
|
(5,393)
|
2,259
|
—
|
– of which: net interest income/(expense)2
|
10,130
|
8,073
|
3,401
|
(3,877)
|
17,727
|
Change in expected credit losses and other credit impairment
charges
|
(484)
|
(694)
|
(136)
|
(3)
|
(1,317)
|
Net operating income/(expense)
|
15,611
|
11,392
|
8,185
|
(3)
|
35,185
|
Total operating expenses
|
(7,020)
|
(3,458)
|
(4,776)
|
10
|
(15,244)
|
Operating profit
|
8,591
|
7,934
|
3,409
|
7
|
19,941
|
Share of profit/(loss) in associates and joint
ventures
|
35
|
(1)
|
—
|
1,497
|
1,531
|
Constant currency profit before tax
|
8,626
|
7,933
|
3,409
|
1,504
|
21,472
|
|
%
|
%
|
%
|
%
|
%
|
Share of HSBC’s constant currency profit before
tax
|
40.2
|
36.9
|
15.9
|
7.0
|
100.0
|
Constant currency cost efficiency ratio
|
43.6
|
28.6
|
57.4
|
—
|
41.8
|
Constant currency balance sheet data
|
$m
|
$m
|
$m
|
$m
|
$m
|
Loans and advances to customers (net)
|
460,395
|
315,271
|
175,055
|
293
|
951,014
|
Interests in associates and joint ventures
|
551
|
22
|
105
|
28,856
|
29,534
|
Total external assets
|
891,675
|
644,672
|
1,325,327
|
150,047
|
3,011,721
|
Customer accounts
|
803,962
|
466,302
|
309,526
|
628
|
1,580,418
|
Constant currency risk-weighted assets3
|
181,464
|
345,043
|
224,239
|
91,526
|
842,272
|
1
Net
operating income before change in expected credit losses and other
credit impairment charges, also referred to as
revenue.
2
Net
interest expense recognised in the Corporate Centre includes $5.5bn
(1H23: $3.8bn) of interest expense in relation to the internal cost
to fund trading and fair value net assets; and the funding cost of
foreign exchange swaps in our Markets Treasury
function.
3 Constant currency risk-weighted assets are calculated using
reported risk-weighted assets adjusted for the effects of currency
translation differences.
Consolidated income statement
|
|
Half-year to
|
|
30 Jun 2024
|
30 Jun 2023
|
|
$m
|
$m
|
Net interest income
|
16,911
|
18,264
|
– interest income
|
55,372
|
46,955
|
– interest expense
|
(38,461)
|
(28,691)
|
Net fee income
|
6,200
|
6,085
|
– fee income
|
8,158
|
7,947
|
– fee expense
|
(1,958)
|
(1,862)
|
Net income from financial instruments held for trading or managed
on a fair value basis1
|
10,516
|
8,112
|
Net income from assets and liabilities of insurance businesses,
including related derivatives, measured at fair value through
profit or loss
|
2,376
|
4,304
|
Insurance finance expense
|
(2,486)
|
(4,234)
|
Insurance service result
|
662
|
524
|
– insurance service revenue
|
1,310
|
1,104
|
– insurance service expense
|
(648)
|
(580)
|
Gain on acquisition2
|
—
|
1,507
|
Gain less impairment relating to sale of business
operations3
|
3,256
|
2,130
|
Other operating (expense)/income
|
(143)
|
184
|
Net operating income before change in
expected credit losses and other credit impairment
charges4
|
37,292
|
36,876
|
Change in expected credit losses and other credit impairment
charges
|
(1,066)
|
(1,345)
|
Net operating income
|
36,226
|
35,531
|
Employee compensation and benefits
|
(9,192)
|
(8,954)
|
General and administrative expenses
|
(5,135)
|
(4,912)
|
Depreciation and impairment of property, plant and equipment and
right-of-use assets
|
(867)
|
(782)
|
Amortisation and impairment of intangible assets
|
(1,102)
|
(809)
|
Total operating expenses
|
(16,296)
|
(15,457)
|
Operating profit
|
19,930
|
20,074
|
Share of profit in associates and joint ventures
|
1,626
|
1,583
|
Profit before tax
|
21,556
|
21,657
|
Tax expense
|
(3,891)
|
(3,586)
|
Profit after tax
|
17,665
|
18,071
|
Attributable to:
|
|
|
– ordinary shareholders of the parent company
|
16,586
|
16,966
|
– other equity holders
|
526
|
542
|
– non-controlling interests
|
553
|
563
|
Profit after tax
|
17,665
|
18,071
|
|
$
|
$
|
Basic earnings per ordinary share
|
0.89
|
0.86
|
Diluted earnings per ordinary share
|
0.88
|
0.86
|
|
|
|
1
Includes
a $255m gain (1H23: $284m loss) on the foreign exchange hedging of
the proceeds from the sale of our banking business in
Canada.
2
Gain
recognised in respect of the acquisition of SVB UK.
3
In
the first half of 2024, a gain of $4.6bn inclusive of the recycling
of $0.6bn in foreign currency translation reserve losses and $0.4bn
of other reserves recycling losses on the sale of our banking
business in Canada, and an impairment loss of $1.2bn relating to
the planned sale of our business in Argentina was recognised. In
the first quarter of 2023, the $2.1bn reversal of the held for sale
classification was recognised relating to the sale of our retail
banking operations in France.
4
Net
operating income before change in expected credit losses and other
credit impairment charges, also referred to as
revenue.
Consolidated statement of comprehensive income
|
|
Half-year to
|
|
30 Jun 2024
|
30 Jun 2023
|
|
$m
|
$m
|
Profit for the period
|
17,665
|
18,071
|
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
|
(213)
|
549
|
– fair value (losses)/gains
|
(378)
|
804
|
– fair value gains transferred to the income statement on
disposal
|
(24)
|
(63)
|
– expected credit losses/(recoveries) recognised in the
income statement
|
13
|
(3)
|
– disposal of subsidiary
|
90
|
—
|
– income taxes
|
86
|
(189)
|
Cash flow hedges
|
(710)
|
(1,062)
|
– fair value losses
|
(612)
|
(1,700)
|
– fair value (gains)/losses reclassified to the income
statement
|
(673)
|
227
|
– disposal of subsidiary
|
262
|
—
|
– income taxes
|
313
|
411
|
Share of other comprehensive income/(expense) of associates and
joint ventures
|
211
|
101
|
– share for the period
|
211
|
101
|
Net finance income/(expense) from insurance contracts
|
17
|
(101)
|
– before income taxes
|
23
|
(136)
|
– income taxes
|
(6)
|
35
|
Exchange differences
|
(2,588)
|
(347)
|
– foreign exchange losses reclassified to the income
statement on disposal of a foreign operation
|
648
|
—
|
– other exchange differences
|
(3,236)
|
(347)
|
Items that will not be reclassified subsequently to profit or
loss:
|
|
|
Fair value gains on property revaluation
|
5
|
1
|
Remeasurement of defined benefit asset/(liability)
|
146
|
(112)
|
– before income taxes
|
178
|
(105)
|
– income taxes
|
(32)
|
(7)
|
Changes in fair value of financial liabilities designated at fair
value upon initial recognition arising from changes in own credit
risk
|
(283)
|
(653)
|
– before income taxes
|
(372)
|
(867)
|
– income taxes
|
89
|
214
|
Equity instruments designated at fair value through other
comprehensive income
|
41
|
7
|
– fair value gains
|
62
|
7
|
– income taxes
|
(21)
|
—
|
Effects of hyperinflation
|
892
|
578
|
Other comprehensive expense for the period, net of tax
|
(2,482)
|
(1,039)
|
Total comprehensive income for the period
|
15,183
|
17,032
|
Attributable to:
|
|
|
– ordinary shareholders of the parent company
|
14,131
|
15,986
|
– other equity holders
|
526
|
542
|
– non-controlling interests
|
526
|
504
|
Total comprehensive income for the period
|
15,183
|
17,032
|
Consolidated balance sheet
|
|
At
|
|
30 Jun 2024
|
31 Dec 2023
|
|
$m
|
$m
|
Assets
|
|
|
Cash and balances at central banks
|
277,112
|
285,868
|
Items in the course of collection from other banks
|
9,977
|
6,342
|
Hong Kong Government certificates of indebtedness
|
43,026
|
42,024
|
Trading assets
|
331,307
|
289,159
|
Financial assets designated and otherwise mandatorily measured at
fair value through profit or loss
|
117,014
|
110,643
|
Derivatives
|
219,269
|
229,714
|
Loans and advances to banks
|
102,057
|
112,902
|
Loans and advances to customers
|
938,257
|
938,535
|
Reverse repurchase agreements – non-trading
|
230,189
|
252,217
|
Financial investments
|
467,356
|
442,763
|
Assets held for sale
|
5,821
|
114,134
|
Prepayments, accrued income and other assets
|
184,303
|
165,255
|
Current tax assets
|
1,308
|
1,536
|
Interests in associates and joint ventures
|
28,465
|
27,344
|
Goodwill and intangible assets
|
12,161
|
12,487
|
Deferred tax assets
|
7,381
|
7,754
|
Total assets
|
2,975,003
|
3,038,677
|
Liabilities
|
|
|
Hong Kong currency notes in circulation
|
43,026
|
42,024
|
Deposits by banks
|
82,435
|
73,163
|
Customer accounts
|
1,593,834
|
1,611,647
|
Repurchase agreements – non-trading
|
202,770
|
172,100
|
Items in the course of transmission to other banks
|
10,482
|
7,295
|
Trading liabilities
|
77,455
|
73,150
|
Financial liabilities designated at fair value
|
140,800
|
141,426
|
Derivatives
|
217,096
|
234,772
|
Debt securities in issue
|
98,158
|
93,917
|
Liabilities of disposal groups held for sale
|
5,041
|
108,406
|
Accruals, deferred income and other liabilities
|
157,171
|
136,606
|
Current tax liabilities
|
2,837
|
2,777
|
Insurance contract liabilities
|
125,252
|
120,851
|
Provisions
|
1,536
|
1,741
|
Deferred tax liabilities
|
1,186
|
1,238
|
Subordinated liabilities
|
25,510
|
24,954
|
Total liabilities
|
2,784,589
|
2,846,067
|
Equity
|
|
|
Called up share capital
|
9,310
|
9,631
|
Share premium account
|
14,808
|
14,738
|
Other equity instruments
|
18,825
|
17,719
|
Other reserves
|
(14,930)
|
(8,907)
|
Retained earnings
|
155,280
|
152,148
|
Total shareholders’ equity
|
183,293
|
185,329
|
Non-controlling interests
|
7,121
|
7,281
|
Total equity
|
190,414
|
192,610
|
Total liabilities and equity
|
2,975,003
|
3,038,677
|
Consolidated statement of changes in equity
|
|
|
|
Other reserves
|
|
|
|
|
|
Called up
share
capital
and share
premium
|
Other
equity
instru-
ments
|
Financial
assets at
FVOCI
reserve
|
Cash
flow
hedging
reserve
|
Foreign
exchange
reserve
|
Merger
and other
reserves
|
Insurance
finance
reserve1
|
Retained
earnings
|
Total
share-
holders’ equity
|
Non-
controlling
interests
|
Total
equity
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
At 1 Jan 2024
|
24,369
|
17,719
|
(3,507)
|
(1,033)
|
(33,753)
|
28,601
|
785
|
152,148
|
185,329
|
7,281
|
192,610
|
Profit for the period
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
17,112
|
17,112
|
553
|
17,665
|
Other comprehensive income (net of tax)
|
—
|
—
|
(164)
|
(691)
|
(2,551)
|
5
|
(10)
|
956
|
(2,455)
|
(27)
|
(2,482)
|
– debt instruments at fair value through other comprehensive
income
|
—
|
—
|
(313)
|
—
|
—
|
—
|
—
|
—
|
(313)
|
10
|
(303)
|
– equity instruments designated at fair value through other
comprehensive income
|
—
|
—
|
35
|
—
|
—
|
—
|
—
|
—
|
35
|
6
|
41
|
– cash flow hedges
|
—
|
—
|
—
|
(970)
|
—
|
—
|
—
|
—
|
(970)
|
(2)
|
(972)
|
– changes in fair value of financial liabilities designated
at fair value upon initial recognition arising from changes in own
credit risk
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(283)
|
(283)
|
—
|
(283)
|
– property revaluation
|
—
|
—
|
—
|
—
|
—
|
5
|
—
|
—
|
5
|
—
|
5
|
– remeasurement of defined benefit
asset/liability
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
136
|
136
|
10
|
146
|
– share of other comprehensive income of associates and joint
ventures
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
211
|
211
|
—
|
211
|
– effects of hyperinflation
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
892
|
892
|
—
|
892
|
– foreign exchange losses reclassified to income statement on
disposal of a foreign operation
|
—
|
—
|
—
|
—
|
648
|
—
|
—
|
—
|
648
|
—
|
648
|
– other reserves reclassified
to income statement on
disposal of a foreign
operation
|
—
|
—
|
90
|
262
|
—
|
—
|
—
|
—
|
352
|
—
|
352
|
– insurance finance income/
(expense) recognised in other comprehensive
income
|
—
|
—
|
—
|
—
|
—
|
—
|
17
|
—
|
17
|
—
|
17
|
– other exchange differences
|
—
|
—
|
24
|
17
|
(3,199)
|
—
|
(27)
|
—
|
(3,185)
|
(51)
|
(3,236)
|
Total comprehensive income for the period
|
—
|
—
|
(164)
|
(691)
|
(2,551)
|
5
|
(10)
|
18,068
|
14,657
|
526
|
15,183
|
Shares issued under employee remuneration and
share plans
|
75
|
—
|
—
|
—
|
—
|
—
|
—
|
(75)
|
—
|
—
|
—
|
Capital securities issued2
|
—
|
1,106
|
—
|
—
|
—
|
—
|
—
|
—
|
1,106
|
—
|
1,106
|
Dividends to shareholders
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(12,217)
|
(12,217)
|
(468)
|
(12,685)
|
Cost of share-based payment arrangements
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
274
|
274
|
—
|
274
|
Transfers3
|
—
|
—
|
—
|
—
|
—
|
(2,945)
|
—
|
2,945
|
—
|
—
|
—
|
Share buy-backs4
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(5,019)
|
(5,019)
|
—
|
(5,019)
|
Cancellation of shares
|
(326)
|
—
|
—
|
—
|
—
|
326
|
—
|
—
|
—
|
—
|
—
|
Other movements
|
—
|
—
|
4
|
—
|
—
|
3
|
—
|
(844)
|
(837)
|
(218)
|
(1,055)
|
At 30 Jun 2024
|
24,118
|
18,825
|
(3,667)
|
(1,724)
|
(36,304)
|
25,990
|
775
|
155,280
|
183,293
|
7,121
|
190,414
|
|
Consolidated statement of changes in equity
(continued)
|
|
|
|
Other reserves
|
|
|
|
|
|
Called up
share capital
and share premium
|
Other
equity
instru-
ments
|
Financial assets at FVOCI reserve
|
Cash
flow
hedging
reserve
|
Foreign exchange reserve
|
Merger and other reserves
|
Insurance
finance
reserve1
|
Retained
earnings
|
Total
share-
holders’
equity
|
Non-
controlling
interests
|
Total
equity
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
At 1 Jan 2023
|
24,811
|
19,746
|
(7,038)
|
(3,808)
|
(32,575)
|
33,209
|
1,079
|
142,409
|
177,833
|
7,364
|
185,197
|
Profit for the period
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
17,508
|
17,508
|
563
|
18,071
|
Other comprehensive income (net of tax)
|
—
|
—
|
560
|
(1,077)
|
(271)
|
1
|
(101)
|
(92)
|
(980)
|
(59)
|
(1,039)
|
– debt instruments at fair value through other comprehensive
income
|
—
|
—
|
546
|
—
|
—
|
—
|
—
|
—
|
546
|
3
|
549
|
– equity instruments designated at fair value through other
comprehensive income
|
—
|
—
|
14
|
—
|
—
|
—
|
—
|
—
|
14
|
(7)
|
7
|
– cash flow hedges
|
—
|
—
|
—
|
(1,077)
|
—
|
—
|
—
|
—
|
(1,077)
|
15
|
(1,062)
|
– changes in fair value of financial liabilities designated
at fair value upon initial recognition arising from changes in own
credit risk
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(654)
|
(654)
|
1
|
(653)
|
– property revaluation
|
—
|
—
|
—
|
—
|
—
|
1
|
—
|
—
|
1
|
—
|
1
|
– remeasurement of defined benefit
asset/liability
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(117)
|
(117)
|
5
|
(112)
|
– share of other comprehensive income of associates and joint
ventures
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
101
|
101
|
—
|
101
|
– effects of hyperinflation
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
578
|
578
|
—
|
578
|
– insurance finance income/ (expense) recognised in other
comprehensive income
|
—
|
—
|
—
|
—
|
—
|
—
|
(101)
|
—
|
(101)
|
—
|
(101)
|
– other exchange differences
|
—
|
—
|
—
|
—
|
(271)
|
—
|
—
|
—
|
(271)
|
(76)
|
(347)
|
Total comprehensive income for the period
|
—
|
—
|
560
|
(1,077)
|
(271)
|
1
|
(101)
|
17,416
|
16,528
|
504
|
17,032
|
Shares issued under employee remuneration and
share plans
|
78
|
—
|
—
|
—
|
—
|
—
|
—
|
(78)
|
—
|
—
|
—
|
Capital securities issued
|
—
|
1,996
|
—
|
—
|
—
|
—
|
—
|
—
|
1,996
|
—
|
1,996
|
Dividends to shareholders
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(7,133)
|
(7,133)
|
(375)
|
(7,508)
|
Redemption of securities
|
—
|
(2,350)
|
—
|
—
|
—
|
—
|
—
|
—
|
(2,350)
|
—
|
(2,350)
|
Cost of share-based payment arrangements
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
228
|
228
|
—
|
228
|
Share buy-backs
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(2,007)
|
(2,007)
|
—
|
(2,007)
|
Cancellation of shares
|
(79)
|
—
|
—
|
—
|
—
|
79
|
—
|
—
|
—
|
—
|
—
|
Other movements
|
—
|
—
|
6
|
—
|
—
|
1
|
—
|
(932)
|
(925)
|
(12)
|
(937)
|
At 30 Jun 2023
|
24,810
|
19,392
|
(6,472)
|
(4,885)
|
(32,846)
|
33,290
|
978
|
149,903
|
184,170
|
7,481
|
191,651
|
Consolidated statement of changes in equity
(continued)
|
|
|
|
Other reserves
|
|
|
|
|
|
Called up
share capital
and share premium
|
Other
equity
instru-
ments
|
Financial assets at FVOCI reserve
|
Cash
flow
hedging
reserve
|
Foreign exchange reserve
|
Merger and other reserves
|
Insurance
finance
reserve1
|
Retained
earnings
|
Total
share-
holders’
equity
|
Non-
controlling
interests
|
Total
equity
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
At 1 Jul 2023
|
24,810
|
19,392
|
(6,472)
|
(4,885)
|
(32,846)
|
33,290
|
978
|
149,903
|
184,170
|
7,481
|
191,651
|
Profit for the period
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
6,025
|
6,025
|
463
|
6,488
|
Other comprehensive income (net of tax)
|
—
|
—
|
1,842
|
4,107
|
60
|
—
|
(270)
|
206
|
5,945
|
77
|
6,022
|
– debt instruments at fair value through other comprehensive
income
|
—
|
—
|
2,028
|
—
|
—
|
—
|
—
|
—
|
2,028
|
22
|
2,050
|
– equity instruments designated at fair value through other
comprehensive income
|
—
|
—
|
(107)
|
—
|
—
|
—
|
—
|
—
|
(107)
|
(20)
|
(127)
|
– cash flow hedges
|
—
|
—
|
—
|
3,996
|
—
|
—
|
—
|
—
|
3,996
|
19
|
4,015
|
– changes in fair value of financial liabilities designated
at fair value upon initial recognition arising from changes in own
credit risk
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(566)
|
(566)
|
—
|
(566)
|
– property revaluation
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
– remeasurement of defined benefit
asset/liability
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(200)
|
(200)
|
(2)
|
(202)
|
– share of other comprehensive income of associates and joint
ventures
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(54)
|
(54)
|
—
|
(54)
|
– effects of hyperinflation
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
1,026
|
1,026
|
—
|
1,026
|
– insurance finance income/ (expense) recognised in other
comprehensive income
|
—
|
—
|
—
|
—
|
—
|
—
|
(263)
|
—
|
(263)
|
—
|
(263)
|
– other exchange differences
|
—
|
—
|
(79)
|
111
|
60
|
—
|
(7)
|
—
|
85
|
58
|
143
|
Total comprehensive income for the period
|
—
|
—
|
1,842
|
4,107
|
60
|
—
|
(270)
|
6,231
|
11,970
|
540
|
12,510
|
Shares issued under employee remuneration and
share plans
|
1
|
—
|
—
|
—
|
—
|
—
|
—
|
(1)
|
—
|
—
|
—
|
Dividends to shareholders
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(4,460)
|
(4,460)
|
(228)
|
(4,688)
|
Redemption of securities
|
—
|
(1,673)
|
—
|
—
|
—
|
—
|
—
|
20
|
(1,653)
|
—
|
(1,653)
|
Cost of share-based payment arrangements
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
254
|
254
|
—
|
254
|
Transfers
|
—
|
—
|
—
|
—
|
—
|
(5,130)
|
—
|
5,130
|
—
|
—
|
—
|
Share buy-backs
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(5,018)
|
(5,018)
|
—
|
(5,018)
|
Cancellation of shares
|
(442)
|
—
|
—
|
—
|
—
|
442
|
—
|
—
|
—
|
—
|
—
|
Other movements
|
—
|
—
|
1,123
|
(255)
|
(967)
|
(1)
|
77
|
89
|
66
|
(512)
|
(446)
|
At 31 Dec 2023
|
24,369
|
17,719
|
(3,507)
|
(1,033)
|
(33,753)
|
28,601
|
785
|
152,148
|
185,329
|
7,281
|
192,610
|
1 The insurance finance reserve reflects the impact of adoption of
the other comprehensive income option for our insurance business in
France. Underlying assets supporting these contracts are measured
at fair value through other comprehensive income. Under this
option, only the amount that matches income or expenses recognised
in profit or loss on underlying items is included in finance income
or expenses, resulting in the elimination of income statement
accounting mismatches. The remaining amount of finance income or
expenses for these insurance contracts is recognised in other
comprehensive income (‘OCI’).
2 In June 2024, HSBC Holdings issued SGD1,500m of contingent
convertible securities on which there were SGD15m of external issue
costs.
3 At 30 June 2024, an impairment of $2,945m of HSBC Overseas
Holdings (UK) Limited was recognised post sale of our banking
business in Canada, resulting in a permitted transfer from the
merger reserve to retained earnings.
4 In February 2024, HSBC Holdings announced a share buy-back of up
to $2.0bn, which concluded in March 2024. Additionally, in April
2024, HSBC Holdings announced another share buy-back of up to
$3.0bn, which was completed in July 2024.
Consolidated statement of cash flows
|
|
Half-year to
|
|
30 Jun 2024
|
30 Jun 2023
|
|
$m
|
$m
|
Profit before tax
|
21,556
|
21,657
|
Adjustments for non-cash items:
|
|
|
Depreciation, amortisation and impairment
|
1,969
|
1,591
|
Net gain from investing activities
|
(34)
|
(41)
|
Share of profit in associates and joint ventures
|
(1,626)
|
(1,583)
|
Net gain on acquisition/disposal of subsidiaries, businesses,
associates and joint ventures
|
(3,199)
|
(3,604)
|
Change in expected credit losses gross of recoveries and other
credit impairment charges
|
1,192
|
1,482
|
Provisions including pensions
|
15
|
148
|
Share-based payment expense
|
274
|
228
|
Other non-cash items included in profit before tax
|
(4,237)
|
(1,661)
|
Elimination of exchange differences1
|
18,406
|
(6,558)
|
Change in operating assets2
|
(41,493)
|
(52,745)
|
Change in operating liabilities
|
36,486
|
72,836
|
Dividends received from associates
|
130
|
124
|
Contributions paid to defined benefit plans
|
(76)
|
(87)
|
Tax paid
|
(2,664)
|
(1,664)
|
Net cash from operating activities
|
26,699
|
30,123
|
Purchase of financial investments
|
(259,999)
|
(298,182)
|
Proceeds from the sale and maturity of financial
investments
|
223,443
|
263,838
|
Net cash flows from the purchase and sale of property, plant and
equipment
|
(464)
|
(329)
|
Net investment in intangible assets
|
(1,058)
|
(1,123)
|
Net cash inflow on acquisition/disposal of subsidiaries,
businesses, associates and joint ventures3
|
9,891
|
1,243
|
Net cash outflow on acquisition/disposal of subsidiaries,
businesses, associates and joint ventures3
|
(10,612)
|
(15)
|
Net cash from investing activities
|
(38,799)
|
(34,568)
|
Issue of ordinary share capital and other equity
instruments
|
1,106
|
1,996
|
Cancellation of shares
|
(5,330)
|
(1,273)
|
Net sales/(purchases) of own shares for market-making and
investment purposes
|
(494)
|
(823)
|
Redemption of preference shares and other equity
instruments
|
—
|
(2,350)
|
Subordinated loan capital issued
|
2,611
|
2,744
|
Subordinated loan capital repaid
|
(2,000)
|
(1,044)
|
Dividends paid to shareholders of the parent company and
non-controlling interests
|
(12,685)
|
(7,508)
|
Net cash from financing activities
|
(16,792)
|
(8,258)
|
Net decrease in cash and cash equivalents
|
(28,892)
|
(12,703)
|
Cash and cash equivalents at the beginning of the
period
|
490,933
|
521,671
|
Exchange differences in respect of cash and cash
equivalents
|
(13,057)
|
8,565
|
Cash and cash equivalents at the end
of the period4
|
448,984
|
517,533
|
Interest received was $54,197m (1H23: $46,817m), interest paid was
$41,254m (1H23: $29,222m) and dividends received (excluding
dividends received from associates, which are presented separately
above) were $1,231m (1H23: $751m).
1
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.
2
Includes
net settlement of the foreign exchange hedge of the proceeds from
the sale of our banking business in Canada, with a $255m gain in
1H24 (1H23: $284m loss).
3
The
‘Net cash inflow on acquisition/disposal of subsidiaries,
businesses, associates and joint ventures’ includes
$9.3bn of net cash inflow on the sale of our banking business in
Canada in March 2024. In 1H23, it included $1.2bn of net cash
inflow on acquisition of Silicon Valley Bank UK Limited in March
2023. The ‘Net cash outflow on acquisition/disposal of
subsidiaries, businesses, associates and joint ventures includes
$10.6bn of net cash outflow on the sale of our retail banking
operations in France in January 2024.
4
Includes
$1.7bn (1H23: $7.5bn) of cash and cash equivalents classified as
held for sale.
1
|
Basis of preparation and material accounting policies
|
(a)
Compliance
with International Financial Reporting Standards
Our interim condensed consolidated financial statements have been
prepared on the basis of the policies set out in the 2023 annual
financial statements. They have also been prepared in accordance
with IAS 34 ‘Interim Financial Reporting’ as adopted by
the UK, IAS 34 ‘Interim Financial Reporting’ as issued
by the International Accounting Standards Board
(‘IASB’), IAS 34 ‘Interim Financial
Reporting’ as adopted by the EU, and the Disclosure Guidance
and Transparency Rules sourcebook of the UK’s Financial
Conduct Authority. Therefore, they include an explanation of events
and transactions that are significant to an understanding of the
changes in HSBC’s financial position and performance since
the end of 2023.
The interim condensed consolidated financial statements should be
read in conjunction with the Annual Report and Accounts 2023, which
was prepared in accordance with UK-adopted international accounting
standards in conformity with the requirements of the Companies Act
2006 and international financial reporting standards adopted
pursuant to Regulation (EC) No 1606/2002 as it applies in the
European Union. The interim condensed consolidated financial
statements were also prepared in accordance with International
Financial Reporting Standards (‘IFRS Accounting
Standards’) as issued by the IASB, including interpretations
issued by the IFRS Interpretations Committee.
At 30 June 2024, there were no IFRS Accounting Standards effective
for the half-year to 30 June 2024 affecting these financial
statements that were not approved for adoption in the UK by the UK
Endorsement Board. There was no difference between IFRS Accounting
Standards adopted by the UK, IFRS Accounting Standards as adopted
by the EU, and IFRS Accounting Standards issued by the IASB in
terms of their application to HSBC.
Standards applied during the half-year to 30 June 2024
There were no new standards or amendments to standards that had an
effect on the interim condensed consolidated financial
statements.
(b) Use of estimates and
judgements
Management believes that the critical estimates and judgements
applicable to the Group are those that relate to impairment of
amortised cost and FVOCI debt financial assets, the valuation of
financial instruments, deferred tax assets, provisions, interests
in associates, impairment of goodwill and non-financial assets, and
post-employment benefit plans.
Other than in respect of non-current assets and disposal groups
held for sale, there were no material changes in the current period
to any of the critical estimates and judgements disclosed in 2023,
which are stated on pages 101 and 343 to 354 of the Annual Report
and Accounts 2023.
(c)
Composition
of the Group
In the first half of 2024 the sales of the retail banking
operations in France, the banking business in Canada, and the
business in Russia completed.
There were no other material changes in the composition of the
Group in the half-year to 30 June 2024.
For further details of future business acquisitions and disposals,
see Note 15 ‘Assets held for sale, liabilities of disposal
groups held for sale and business acquisitions’ in the
Interim Report 2024.
(d)
Future
accounting developments
Amendments to IAS 21 ‘Lack of
Exchangeability’
In August 2023, the IASB published amendments to IAS 21 ‘Lack
of Exchangeability’ effective from 1 January 2025. The Group
is undertaking an assessment of the potential impact, which is not
expected to be significant.
Amendments to IFRS 9 ‘Financial Instruments’ and IFRS 7
‘Financial Instruments: Disclosures’
In May 2024, the IASB issued amendments to IFRS 9 ‘Financial
Instruments’ and IFRS 7 ‘Financial Instruments:
Disclosures’, effective for annual reporting periods
beginning on, or after, 1 January 2026. In addition to guidance as
to when certain financial liabilities can be deemed settled when
using an electronic payment system, the amendments also provide
further clarification regarding the classification of financial
assets that contain contractual terms that change the timing or
amount of contractual cash flows, including those arising from
ESG-related contingencies, and financial assets with certain
non-recourse features. The Group is undertaking an assessment of
the potential impact.
IFRS 18 ‘Presentation and Disclosure in Financial
Statements’
In April 2024, the IASB issued IFRS 18 ‘Presentation and
Disclosure in Financial Statements’, effective for annual
reporting periods beginning on or after 1 January 2027. The new
accounting standard aims to give users of financial statements more
transparent and comparable information about an entity’s
financial performance. It will replace IAS 1 ‘Presentation of
Financial Statements’ but carries over many requirements from
that IFRS Accounting Standard unchanged. In addition, there are
three sets of new requirements relating to the structure of the
income statement, management-defined performance measures and the
aggregation and disaggregation of financial
information.
While IFRS 18 will not change recognition criteria or measurement
bases, it might have a significant impact on presenting information
in the financial statements, in particular the income statement.
HSBC are currently assessing any impacts as well as data readiness
before developing a more detailed implementation plan.
The financial statements are prepared on a going concern basis, as
the Directors are satisfied that the Group and parent company have
the resources to continue in business for the foreseeable future.
In making this assessment, the Directors have considered a wide
range of information relating to present and future conditions,
including future projections of profitability, cash flows, capital
requirements and capital resources. These considerations include
stressed scenarios, as well as considering potential impacts from
other top and emerging risks, and the related impact on
profitability, capital and liquidity.
(f) Accounting policies
The accounting policies that we applied for the interim condensed
consolidated financial statements are consistent with those
described on pages 341 to 354 of the Annual Report and Accounts
2023, as are the methods of computation.
On 31 July 2024, the Directors approved a second interim dividend
for 2024 of $0.10 per ordinary share in respect of the financial
year ending 31 December 2024. This distribution amounts to
approximately $1.849bn and will be payable on 27 September
2024. No liability is recognised in the financial statements in
respect of these dividends.
Dividends paid to shareholders of HSBC Holdings plc
|
|
Half-year to
|
|
30 Jun 2024
|
30 Jun 2023
|
|
Per share
|
Total
|
Per share
|
Total
|
|
$
|
$m
|
$
|
$m
|
Dividends paid on ordinary shares
|
|
|
|
|
In respect of previous year:
|
|
|
|
|
– second interim dividend
|
—
|
—
|
0.23
|
4,590
|
– fourth interim dividend
|
0.31
|
5,872
|
—
|
—
|
In respect of current year:
|
|
|
|
|
– first interim dividend
|
0.10
|
1,877
|
0.10
|
2,001
|
– special dividend
|
0.21
|
3,942
|
—
|
—
|
Total
|
0.62
|
11,691
|
0.33
|
6,591
|
Total coupons on capital securities classified as
equity
|
|
526
|
|
542
|
Dividends to shareholders
|
|
12,217
|
|
7,133
|
Second interim dividend for 2024
On 31 July 2024, the Directors approved a second interim dividend
in respect of the financial year ending 31 December 2024 of $0.10
per ordinary share (the ‘dividend’), a distribution of
approximately $1.849bn. The dividend will be payable on 27
September 2024 to holders of record on the Principal Register in
the UK, the Hong Kong Overseas Branch Register or the Bermuda
Overseas Branch Register on 16 August 2024.
The dividend will be payable in US dollars, or in pounds sterling
or Hong Kong dollars at the forward exchange rates quoted by HSBC
Bank plc in London at or about 11.00am on 16 September 2024. The
ordinary shares in London, Hong Kong and Bermuda will be quoted
ex-dividend on 15 August 2024. American Depositary Shares
(‘ADSs’) in New York will be quoted ex-dividend on 16
August 2024.
The default currency on the Principal Register in the UK is pounds
sterling, and dividends can also be paid in Hong Kong dollars or US
dollars, or a combination of these currencies. International
shareholders can register to join the Global Dividend Service to
receive dividends in their local currencies. Please register and
read the terms and conditions at www.investorcentre.co.uk. UK
shareholders can also register their sterling bank mandates at
www.investorcentre.co.uk.
The default currency on the Hong Kong Overseas Branch Register is
Hong Kong dollars, and dividends can also be paid in US dollars or
pounds sterling, or a combination of these currencies. Shareholders
can arrange for direct credit of Hong Kong dollar cash dividends
into their bank account, or arrange to send US dollar or pound
sterling cheques to the credit of their bank account. Shareholders
can register for these services at www.investorcentre.com/hk.
Shareholders can also download a dividend currency election form
from www.hsbc.com/dividends, www.investorcentre.com/hk, or
www.hkexnews.hk.
The default currency on the Bermuda Overseas Branch Register is US
dollars, and dividends can also be paid in Hong Kong dollars or
pounds sterling, or a combination of these currencies. Shareholders
can change their dividend currency election by contacting the
Bermuda investor relations team. Shareholders can download a
dividend currency election form from
www.hsbc.com/dividends.
Changes to currency elections must be received by 12 September 2024
to be effective for this dividend.
The dividend will be payable on ADSs, each of which represents five
ordinary shares, on 27 September 2024 to holders of record on
16 August 2024. The dividend of $0.50 per ADS will be
payable by the depositary in US dollars. Alternatively, the cash
dividend may be invested in additional ADSs by participants in the
dividend reinvestment plan operated by the depositary. Elections
must be received by 6 September 2024.
Any person who has acquired ordinary shares registered on the
Principal Register in the UK, the Hong Kong Overseas Branch
Register or the Bermuda Overseas Branch Register but who has not
lodged the share transfer with the Principal Registrar in the UK,
Hong Kong Overseas Branch Registrar or Bermuda Overseas Branch
Registrar should do so before 4.00pm local time on 16 August 2024
in order to receive the dividend.
Ordinary shares may not be removed from or transferred to the
Principal Register in the UK, the Hong Kong Overseas Branch
Register or the Bermuda Overseas Branch Register on 16 August 2024.
Any person wishing to remove ordinary shares to or from each
register must do so before 4.00pm local time on 15 August
2024.
Transfer of ADSs must be lodged with the depositary by 11.00am on
16 August 2024 in order to receive the dividend. ADS holders who
receive a cash dividend will be charged a fee, which will be
deducted by the depositary, of $0.005 per ADS per cash
dividend.
Dividend on preference share
A quarterly dividend of £0.01 per Series A sterling preference
share is payable on 15 March, 17 June, 16 September and
16 December 2024 for the quarter then ended at the sole and
absolute discretion of the Board of HSBC Holdings plc. Accordingly,
the Board of HSBC Holdings plc has approved a quarterly dividend to
be payable on 16 September 2024 to holders of record on 30 August
2024.
Basic earnings per ordinary share is calculated by dividing the
profit attributable to ordinary shareholders of the parent company
by the weighted average number of ordinary shares outstanding,
excluding own shares held. Diluted earnings per ordinary share is
calculated by dividing the basic earnings, which require no
adjustment for the effects of dilutive potential ordinary shares,
by the weighted average number of ordinary shares outstanding,
excluding own shares held, plus the weighted average number of
ordinary shares that would be issued on conversion of dilutive
potential ordinary shares.
Basic and diluted earnings per share
|
|
Half-year to
|
|
30 Jun 2024
|
30 Jun 2023
|
|
Profit
|
Number
of shares
|
Amount per share
|
Profit
|
Number
of shares
|
Amount per share
|
|
$m
|
(millions)
|
$
|
$m
|
(millions)
|
$
|
Basic1
|
16,586
|
18,666
|
0.89
|
16,966
|
19,693
|
0.86
|
Effect of dilutive potential ordinary shares
|
|
120
|
|
|
136
|
|
Diluted1
|
16,586
|
18,786
|
0.88
|
16,966
|
19,829
|
0.86
|
1
Weighted
average number of ordinary shares outstanding (basic) or assuming
dilution (diluted).
4
|
Constant currency balance sheet reconciliation
|
|
At 30 Jun 2024
|
At 30 June 2023
|
At 31 Dec 2023
|
|
Reported and constant currency
|
Constant currency
|
Currency translation
|
Reported
|
Constant currency
|
Currency translation
|
Reported
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
Loans and advances to customers (net)
|
938,257
|
951,014
|
(8,544)
|
959,558
|
925,791
|
(12,744)
|
938,535
|
Interests in associates and joint ventures
|
28,465
|
29,534
|
(12)
|
29,546
|
26,967
|
(377)
|
27,344
|
Total external assets
|
2,975,003
|
3,011,721
|
(29,755)
|
3,041,476
|
2,997,845
|
(40,832)
|
3,038,677
|
Customer accounts
Customer accounts
|
1,593,834
|
1,580,418
|
(15,351)
|
1,595,769
|
1,590,533
|
(21,114)
|
1,611,647
|
5
|
Reported and constant currency results1
|
|
Half-year to
|
|
30 Jun 2024
|
30 Jun 2023
|
|
$m
|
$m
|
Revenue2
|
|
|
Reported
|
37,292
|
36,876
|
Currency translation
|
|
(374)
|
Constant currency
|
37,292
|
36,502
|
Change in expected credit losses and other credit impairment
charges
|
|
|
Reported
|
(1,066)
|
(1,345)
|
Currency translation
|
|
28
|
Constant currency
|
(1,066)
|
(1,317)
|
Operating expenses
|
|
|
Reported
|
(16,296)
|
(15,457)
|
Currency translation
|
|
213
|
Constant currency
|
(16,296)
|
(15,244)
|
Share of profit in associates and joint ventures
|
|
|
Reported
|
1,626
|
1,583
|
Currency translation
|
|
(52)
|
Constant currency
|
1,626
|
1,531
|
Profit before tax
|
|
|
Reported
|
21,556
|
21,657
|
Currency translation
|
|
(185)
|
Constant currency
|
21,556
|
21,472
|
Profit after tax
|
|
|
Reported
|
17,665
|
18,071
|
Currency translation
|
|
(113)
|
Constant currency
|
17,665
|
17,958
|
1
In
the current period constant currency results are equal to reported
as there is no currency translation.
2
Net
operating income before change in expected credit losses and other
credit impairment charges, also referred to as
revenue.
Notable items
|
|
Half-year to
|
|
30 Jun 2024
|
30 Jun 2023
|
|
$m
|
$m
|
Revenue
|
|
|
Disposals, acquisitions and related costs1,2
|
3,571
|
3,321
|
Fair value movements on financial instruments3
|
—
|
15
|
Operating expenses
|
|
|
Disposals, acquisitions and related costs
|
(101)
|
(118)
|
Restructuring and other related costs4
|
19
|
47
|
Tax
|
|
|
Tax (charge)/credit on notable items
|
14
|
(500)
|
Recognition of losses
|
—
|
—
|
Uncertain tax positions
|
—
|
427
|
1
Includes
a $4.8bn gain on disposal of our banking business in Canada,
inclusive of a $0.3bn gain on the foreign exchange hedging of the
sales proceeds, the recycling of $0.6bn in foreign currency
translation reserve losses and $0.4bn of other reserves recycling
losses. This is partly offset by a $1.2bn impairment recognised in
relation to the planned sale of our business in
Argentina.
2
In
the first quarter of 2023, the $2.1bn reversal of the held for sale
classification was recognised relating to the sale of our retail
banking operations in France and a gain of $1.5bn was recognised in
respect of the acquisition of SVB UK.
3
Fair
value movements on non-qualifying hedges in HSBC
Holdings.
4
Relates
to reversals of restructuring provisions recognised during
2022.
6
|
Contingent liabilities, contractual commitments and
guarantees
|
|
At
|
|
30 Jun 2024
|
31 Dec 2023
|
|
$m
|
$m
|
Guarantees and other contingent liabilities:
|
|
|
– financial guarantees
|
16,343
|
17,009
|
– performance and other guarantees
|
91,275
|
94,277
|
– other contingent liabilities
|
543
|
636
|
At the end of the period
|
108,161
|
111,922
|
Commitments:1
|
|
|
– documentary credits and short-term trade-related
transactions
|
7,169
|
7,818
|
– forward asset purchases and forward deposits
placed
|
87,219
|
78,535
|
– standby facilities, credit lines and other commitments to
lend
|
780,929
|
810,797
|
At the end of the period
|
875,317
|
897,150
|
1
Includes
$638,635m of commitments at 30 June 2024 (31 December 2023:
$661,015m), to which the impairment requirements in IFRS 9 are
applied where HSBC has become party to an irrevocable
commitment.
Contingent liabilities arising from legal proceedings and
regulatory and other matters against Group companies are excluded
from this note but are disclosed in Note 7 below and Notes 11 and
13 of the Interim Report 2024.
7
|
Legal proceedings and regulatory matters
|
HSBC is party to legal proceedings and regulatory matters in a
number of jurisdictions arising out of its normal business
operations. Apart from the matters described below, HSBC considers
that none of these matters are material. The recognition of
provisions is determined in accordance with the accounting policies
set out in Note 1 of the Annual Report and Accounts 2023. While the
outcomes of legal proceedings and regulatory matters are inherently
uncertain, management believes that, based on the information
available to it, appropriate provisions have been made in respect
of these matters as at 30 June 2024 (see Note 11 of the Interim
Report 2024). Where an individual provision is material, the fact
that a provision has been made is stated and quantified, except to
the extent that doing so would be seriously prejudicial. Any
provision recognised does not constitute an admission of wrongdoing
or legal liability. It is not practicable to provide an aggregate
estimate of potential liability for our legal proceedings and
regulatory matters as a class of contingent
liabilities.
Bernard L. Madoff Investment Securities LLC
Various non-US HSBC companies provided custodial, administration
and similar services to a number of funds incorporated outside the
US whose assets were invested with Bernard L. Madoff Investment
Securities LLC (‘Madoff Securities’). Based on
information provided by Madoff Securities as at 30 November 2008,
the purported aggregate value of these funds was $8.4bn, including
fictitious profits reported by Madoff. Based on information
available to HSBC, the funds’ actual transfers to Madoff
Securities minus their actual withdrawals from Madoff Securities
during the time HSBC serviced the funds are estimated to have
totalled approximately $4bn. Various HSBC companies have been named
as defendants in lawsuits arising out of Madoff Securities’
fraud.
US litigation: The Madoff
Securities Trustee has brought lawsuits against various HSBC
companies and others, seeking recovery of alleged transfers from
Madoff Securities to HSBC in the amount of $543m (plus interest),
and these lawsuits remain pending in the US Bankruptcy Court for
the Southern District of New York (the ‘US Bankruptcy
Court’).
Certain Fairfield entities (together, ‘Fairfield’) (in
liquidation) have brought a lawsuit in the US against fund
shareholders, including HSBC companies that acted as nominees for
clients, seeking restitution of redemption payments in the amount
of $382m (plus interest). Fairfield’s claims against most of
the HSBC companies have been dismissed by the US Bankruptcy Court
and the US District Court for the Southern District of New York,
but remain pending on appeal before the US Court of Appeals for the
Second Circuit. Fairfield’s claims against HSBC Private Bank
(Suisse) SA and HSBC Securities Services Luxembourg
(‘HSSL’) have not been dismissed and their appeals are
also pending before the US Court of Appeals for the Second Circuit.
Meanwhile, proceedings before the US Bankruptcy Court with respect
to the claims against HSBC Private Bank (Suisse) SA and HSSL are
ongoing.
UK litigation: The Madoff
Securities Trustee has filed a claim against various HSBC companies
in the High Court of England and Wales, seeking recovery of
transfers from Madoff Securities to HSBC. The claim has not yet
been served and the amount claimed has not been
specified.
Luxembourg litigation: In 2009,
Herald Fund SPC (‘Herald’) (in liquidation) brought an
action against HSSL before the Luxembourg District Court, seeking
restitution of cash and securities in the amount of $2.5bn (plus
interest), or damages in the amount of $2bn (plus interest). In
2018, HSBC Bank plc was added to the claim and Herald increased the
amount of the alleged damages claim to $5.6bn (plus interest). The
Luxembourg District Court has dismissed Herald’s securities
restitution claim, but reserved Herald’s cash restitution and
damages claims. Herald has appealed this dismissal to the
Luxembourg Court of Appeal, where the matter is
pending.
Beginning in 2009, various HSBC companies have been named as
defendants in a number of actions brought by Alpha Prime Fund
Limited in the Luxembourg District Court seeking damages for
alleged breach of contract and negligence in the amount of $1.16bn
(plus interest). These matters are currently pending before the
Luxembourg District Court.
Beginning in 2014, HSSL and the Luxembourg branch of HSBC Bank plc
have been named as defendants in a number of actions brought by
Senator Fund SPC before the Luxembourg District Court seeking
restitution of securities in the amount of $625m (plus interest),
or damages in the amount of $188m (plus interest). These matters
are currently pending before the Luxembourg District
Court.
Based on the facts currently known, it is not practicable at this
time for HSBC to predict the resolution of the pending matters,
including the timing or any possible impact on HSBC, which could be
significant.
US Anti-Terrorism Act litigation
Since November 2014, a number of lawsuits have been filed in
federal courts in the US against various HSBC companies and others
on behalf of plaintiffs who are, or are related to, alleged victims
of terrorist attacks in the Middle East. In each case, it is
alleged that the defendants aided and abetted the unlawful conduct
of various sanctioned parties in violation of the US Anti-Terrorism
Act, or provided banking services to customers alleged to have
connections to terrorism financing. Seven actions, which seek
damages for unspecified amounts, remain pending and HSBC’s
motions to dismiss have been granted in three of these cases. These
dismissals are subject to appeals and/or the plaintiffs re-pleading
their claims. The four other actions are at an early
stage.
Based on the facts currently known, it is not practicable at this
time for HSBC to predict the resolution of these matters, including
the timing or any possible impact on HSBC, which could be
significant.
Interbank offered rates investigation and litigation
Euro interest rate derivatives: In December 2016, the European Commission
(‘EC’) issued a decision finding that HSBC, among other
banks, engaged in anti-competitive practices in connection with the
pricing of euro interest rate derivatives, and the EC imposed a
fine on HSBC based on a one-month infringement in 2007. The fine
was annulled in 2019 and a lower fine was imposed in 2021. In
January 2023, the European Court of Justice dismissed an appeal by
HSBC and upheld the EC’s findings on HSBC’s liability.
A separate appeal by HSBC concerning the amount of the fine remains
pending before the General Court of the European
Union.
US dollar Libor: Beginning in
2011, HSBC and other panel banks have been named as defendants in a
number of individual and putative class action lawsuits filed in
federal and state courts in the US with respect to the setting of
US dollar Libor. The complaints assert claims under various US
federal and state laws, including antitrust and racketeering laws
and the Commodity Exchange Act (‘US CEA’). HSBC has
concluded class settlements with five groups of plaintiffs, and
several class action lawsuits brought by other groups of plaintiffs
have been voluntarily dismissed. A number of individual US dollar
Libor-related actions seeking damages for unspecified amounts
remain pending.
Based on the facts currently known, it is not practicable at this
time for HSBC to predict the resolution of the pending matters,
including the timing or any possible impact on HSBC, which could be
significant.
Foreign exchange-related investigations and litigation
In December 2016, Brazil’s Administrative Council of Economic
Defense initiated an investigation into the onshore foreign
exchange market and identified a number of banks, including HSBC,
as subjects of its investigation, which remains
ongoing.
Since 2017, HSBC Bank plc, among other financial institutions, has
been defending a complaint filed by the Competition Commission of
South Africa before the South African Competition Tribunal for
alleged anti-competitive behaviour in the South African foreign
exchange market. In 2020, a revised complaint was filed which also
named HSBC Bank USA N.A. (‘HSBC Bank USA’) as a
defendant. In January 2024, the South African Competition Appeal
Court dismissed HSBC Bank USA from the revised complaint but denied
HSBC Bank plc’s application to dismiss. The Competition
Commission and HSBC Bank plc have appealed to the Constitutional
Court of South Africa.
Since 2015, various HSBC companies and other banks have been named
as defendants in a putative class action in the US District Court
for the Southern District of New York filed by a group of retail
customers who dealt in foreign exchange products. The plaintiffs
allege that the defendants conspired to manipulate foreign exchange
rates and seek damages for unspecified amounts. In May 2024, the US
Court of Appeals for the Second Circuit affirmed the dismissal of
this action.
HSBC Bank plc and HSBC Holdings have reached a settlement with
plaintiffs in Israel to resolve a class action filed in the local
courts alleging foreign exchange-related misconduct. The settlement
remains subject to court approval. Lawsuits alleging foreign
exchange-related misconduct remain pending against HSBC and other
banks in courts in Brazil.
In February 2024, HSBC Bank plc and HSBC Holdings were joined to an
existing claim brought in the UK Competition Appeals Tribunal
against various other banks alleging historical anti-competitive
behaviour in the foreign exchange market and seeking approximately
£3bn in damages from all the defendants. This matter is at an
early stage. It is possible that additional civil actions will be
initiated against HSBC in relation to its historical foreign
exchange activities.
There are many factors that may affect the range of outcomes, and
the resulting financial impact, of the pending matters, which could
be significant.
Precious metals fix-related litigation
US litigation: HSBC and other
members of The London Silver Market Fixing Limited are defending a
class action pending in the US District Court for the Southern
District of New York alleging that, from January 2007 to December
2013, the defendants conspired to manipulate the price of silver
and silver derivatives for their collective benefit in violation of
US antitrust laws, the US CEA and New York state law. In May 2023,
this action, which seeks damages for unspecified amounts, was
dismissed but remains pending on appeal.
HSBC and other members of The London Platinum and Palladium Fixing
Company Limited are defending a class action pending in the US
District Court for the Southern District of New York alleging that,
from January 2008 to November 2014, the defendants conspired to
manipulate the price of platinum group metals and related financial
products for their collective benefit in violation of US antitrust
laws and the US CEA. The defendants have reached a
settlement-in-principle with the plaintiffs to resolve this action.
The settlement-in-principle remains subject to documentation and
court approval.
Canada litigation: HSBC and
other financial institutions are defending putative class actions
filed in the Ontario and Quebec Superior Courts of Justice alleging
that the defendants conspired to manipulate the price of silver,
gold and related derivatives in violation of the Canadian
Competition Act and common law. These actions each seek CA$1bn in
damages plus CA$250m in punitive damages. Two of the actions are
proceeding and the others have been stayed.
There are many factors that may affect the range of outcomes, and
the resulting financial impact, of the pending matters, which could
be significant.
Tax-related investigations
In March 2023, the French National Financial Prosecutor announced
an investigation into a number of banks, including HSBC Continental
Europe and the Paris branch of HSBC Bank plc, in connection with
alleged tax fraud related to the dividend withholding tax treatment
of certain trading activities. HSBC Bank plc and the German branch
of HSBC Continental Europe also continue to cooperate with
investigations by the German public prosecutor into numerous
financial institutions and their employees, in connection with the
dividend withholding tax treatment of certain trading
activities.
Based on the facts currently known, it is not practicable at this
time for HSBC to predict the resolution of these matters, including
the timing or any possible impact on HSBC, which could be
significant.
Gilts trading investigation and litigation
Since 2018, the UK Competition and Markets Authority
(‘CMA’) has been investigating HSBC and four other
banks for suspected anti-competitive conduct in relation to the
historical trading of gilts and related derivatives. In May 2023,
the CMA announced its case against HSBC Bank plc and HSBC Holdings;
both HSBC companies are contesting the CMA’s
allegations.
In June 2023, HSBC Bank plc and HSBC Securities (USA) Inc., among
other banks, were named as defendants in a putative class action
filed in the US District Court for the Southern District of New
York by plaintiffs alleging anti-competitive conduct in the gilts
market and seeking damages for unspecified amounts. In September
2023, the defendants filed a motion to dismiss which remains
pending. It is possible that additional civil actions will be
initiated against HSBC in relation to its historical gilts trading
activities.
Based on the facts currently known, it is not practicable at this
time for HSBC to predict the resolution of these matters, including
the timing or any possible impact on HSBC, which could be
significant.
UK collections and recoveries investigation
In 2019, the FCA began investigating HSBC Bank plc’s, HSBC UK
Bank plc’s and Marks and Spencer Financial Services
plc’s compliance with regulatory standards relating to
collections and recoveries operations in the UK between 2017 and
2018. In May 2024, the FCA concluded its investigation and imposed
a £6m fine on HSBC Bank plc, HSBC UK Bank plc and Marks and
Spencer Financial Services plc, which has been paid, and this
matter is now closed.
Korean short selling indictment
In March 2024, the Korean Prosecutors’ Office issued a
criminal indictment against The Hongkong and Shanghai Banking
Corporation Limited and three current and former employees for
breaching short selling rules under the Financial Investment
Services and Capital Markets Act in connection with trades carried
out between August 2021 and December 2021. The Hongkong and
Shanghai Banking Corporation Limited is defending the
action.
Silicon Valley Bank (‘SVB’) litigation
In May 2023, First-Citizens Bank & Trust Company (‘First
Citizens’) brought a lawsuit in the US District Court for the
Northern District of California against various HSBC companies and
seven US-based HSBC employees who had previously worked for SVB.
The lawsuit seeks $1bn in damages and alleges, among other things,
that the various HSBC companies conspired with the individual
defendants to solicit employees from First Citizens and that the
individual defendants took confidential information belonging to
SVB and/or First Citizens. In July 2024, the court dismissed
several of First Citizens’ claims and also dismissed certain
defendants for lack of jurisdiction, but allowed limited discovery
into whether some of these defendants may be subject to
jurisdiction. The remaining claims are proceeding against certain
defendants.
Based on the facts currently known, it is not practicable at this
time for HSBC to predict the resolution of this matter, including
the timing or any possible impact on HSBC, which could be
significant.
Film Finance litigation
In June 2020, two separate investor groups issued claims against
HSBC UK Bank plc (as successor to HSBC Private Bank (UK) Limited
(‘PBGB’)) in the High Court of England and Wales
seeking damages for unspecified amounts in connection with
PBGB’s role in the development of Eclipse film finance
schemes. In March 2024, HSBC UK Bank plc reached a settlement with
the first investor group. In April 2024, the High Court dismissed
the second investor group’s claims, and this matter is now
closed.
US mortgage securitisation litigation
Beginning in 2014, a number of lawsuits were filed in various state
and federal courts in the US against HSBC Bank USA, as a trustee of
more than 280 mortgage securitisation trusts, seeking unspecified
damages for losses in collateral value allegedly sustained by the
trusts. HSBC Bank USA has reached settlements with a number of
plaintiffs to resolve nearly all of these lawsuits. The remaining
two actions are pending in a New York state court. HSBC Bank USA
and certain of its affiliates continue to defend a mortgage loan
repurchase action seeking unspecified damages and specific
performance brought by the trustee of a mortgage securitisation
trust in New York state court.
There are many factors that may affect the range of outcomes, and
the resulting financial impact, of the pending matters, which could
be significant.
Mexican government bond litigation
HSBC Mexico S.A. and other banks are named as defendants in a
consolidated putative class action pending in the US District Court
for the Southern District of New York alleging anti-competitive
conduct in the Mexican government bond market between 2010 and 2014
and seeking damages for unspecified amounts. In February 2024, the
US Court of Appeals for the Second Circuit reversed an earlier
dismissal of this lawsuit. In May 2024, the plaintiffs amended
their complaint and this action is ongoing.
Based on the facts currently known, it is not practicable at this
time for HSBC to predict the resolution of this matter, including
the timing or any possible impact on HSBC, which could be
significant.
Stanford litigation
Since 2009, HSBC Bank plc has been named as a defendant in numerous
claims filed in courts in the UK and the US arising from the
collapse of Stanford International Bank Ltd, for which it was a
correspondent bank from 2003 to 2009. In February 2023, HSBC Bank
plc reached settlements with the plaintiffs to resolve the claims
and these settlements have concluded.
Other regulatory investigations, reviews and
litigation
HSBC Holdings and/or certain of its affiliates are also subject to
a number of other enquiries and examinations, requests for
information, investigations and reviews by various tax authorities,
regulators, competition and law enforcement authorities, as well as
legal proceedings including litigation, arbitration and other
contentious proceedings, in connection with various matters arising
out of their businesses and operations.
At the present time, HSBC does not expect the ultimate resolution
of any of these matters to be material to the Group’s
financial position; however, given the uncertainties involved in
legal proceedings and regulatory matters, there can be no assurance
regarding the eventual outcome of a particular matter or
matters.
8
|
Events after the balance sheet date
|
On 6 July 2024, the Hongkong and Shanghai Banking Corporation
Limited (acting through its Mauritius Branch) completed the sale of
its Wealth and Personal Banking business to ABSA Bank (Mauritius)
Limited, a wholly-owned subsidiary of ABSA Bank Group Limited. The
financial impact was not significant for the Group.
A second interim dividend for 2024 of $0.10 per ordinary share in
respect of the financial year ending 31 December 2024 was approved
by the Directors on 31 July 2024, as described in Note 2. On
31 July 2024, HSBC Holdings announced a share buy-back to purchase
its ordinary shares up to a maximum consideration of $3.0bn, which
is expected to commence shortly and complete within three
months.
Capital ratios
|
|
|
|
At
|
|
30 Jun 2024
|
31 Dec 2023
|
|
%
|
%
|
Transitional basis
|
|
|
Common equity tier 1 ratio
|
15.0
|
14.8
|
Tier 1 ratio
|
17.3
|
16.9
|
Total capital ratio
|
20.6
|
20.0
|
End point basis
|
|
|
Common equity tier 1 ratio
|
15.0
|
14.8
|
Tier 1 ratio
|
17.3
|
16.9
|
Total capital ratio
|
20.1
|
19.6
|
Total regulatory capital and risk-weighted assets
|
|
|
|
At
|
|
30 Jun 2024
|
31 Dec 2023
|
|
$m
|
$m
|
Transitional basis
|
|
|
Common equity tier 1 capital
|
125,293
|
126,501
|
Additional tier 1 capital
|
18,965
|
17,662
|
Tier 2 capital
|
27,826
|
27,041
|
Total regulatory capital
|
172,084
|
171,204
|
Risk-weighted assets
|
835,118
|
854,114
|
End point basis
|
|
|
Common equity tier 1 capital
|
125,293
|
126,501
|
Additional tier 1 capital
|
18,965
|
17,662
|
Tier 2 capital
|
23,886
|
22,894
|
Total regulatory capital
|
168,144
|
167,057
|
Risk-weighted assets
|
835,118
|
854,114
|
Leverage ratio1
|
|
|
|
At
|
|
30 Jun 2024
|
31 Dec 2023
|
|
$bn
|
$bn
|
Tier 1 capital (leverage)
|
144.3
|
144.2
|
Total leverage ratio exposure
|
2,514.5
|
2,574.8
|
|
%
|
%
|
Leverage ratio
|
5.7
|
5.6
|
1 Leverage ratio calculation is in line with the PRA’s UK
leverage rules. This includes IFRS 9 transitional arrangement and
excludes central bank claims.
The information in this media release is unaudited and does not
constitute statutory accounts within the meaning of section 434 of
the Companies Act 2006. The statutory accounts of HSBC Holdings plc
for the year ended 31 December 2023 have been delivered to the
Registrar of Companies in England and Wales in accordance with
section 447 of the Companies Act 2006. The Group’s auditor,
PricewaterhouseCoopers LLP (‘PwC’) has reported on
those accounts. Its report was unqualified, did not include a
reference to any matters to which PwC drew attention by way of
emphasis without qualifying its report and did not contain a
statement under section 498(2) or (3) of the Companies Act
2006.
The information in this media release does not constitute the
unaudited interim condensed consolidated financial statements which
are contained in the Interim Report 2024. The Interim Report 2024
was approved by the Board of Directors on 31 July 2024. The
unaudited interim condensed consolidated financial statements
included in the Interim Report 2024 have been reviewed by the
Group’s auditor, PwC, in accordance with International
Standard on Review Engagements (UK) 2410, ‘Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity’ issued by the Financial Reporting Council for use in
the United Kingdom. The full report of its review, which was
unmodified, is included in the Interim Report 2024.
11
Dealings
in HSBC Holdings listed securities
HSBC has policies and procedures that, except where permitted by
statute and regulation, prohibit it undertaking specified
transactions in respect of its securities listed on The Stock
Exchange of Hong Kong Limited (‘HKEx’). Except for
dealings as intermediaries or as trustees by subsidiaries of HSBC
Holdings, or in relation to HSBC Holdings ordinary share buy-backs,
neither HSBC Holdings nor any of its subsidiaries has purchased,
sold or redeemed any of its securities listed on HKEx during the
half-year ended 30 June 2024.
12
Earnings
release and final results
An earnings release for the three-month period ending 30 September
2024 is expected to be issued on 29 October 2024. The results for
the year to 31 December 2024 are expected to be announced on 19
February 2025.
We are subject to corporate governance requirements in both the UK
and Hong Kong. Throughout the six months ended 30 June 2024, we
complied with the applicable provisions of the UK Corporate
Governance Code, and also the requirements of the Hong Kong
Corporate Governance Code. The UK Corporate Governance Code is
available at www.frc.org.uk and the Hong Kong Corporate Governance
Code is available at www.hkex.com.hk. We note that the Financial
Reporting Council have issued a new UK Corporate Governance Code,
which will apply to financial reporting periods from 1 January
2025, and that The Stock Exchange of Hong Kong Limited is currently
consulting on changes to the Hong Kong Corporate Governance Code.
The Group will take the necessary actions to ensure that we
continue to be compliant with both Codes as the new provisions come
into force.
The Board has codified obligations for transactions in Group
securities in accordance with the requirements of the UK Market
Abuse Regulation and the rules governing the listing of securities
on the HKEx, save that the HKEx has granted waivers from strict
compliance with the rules that take into account accepted practices
in the UK, particularly in respect of employee share
plans.
All Directors have confirmed that they have complied with their
obligations in respect of transacting in Group securities
throughout the period.
There have been no material changes to the information disclosed in
the Annual Report and Accounts 2023 in respect of the remuneration
of employees, remuneration policies, bonus and share option plans
and training schemes. Details of the number of employees are
provided on page 34 of the Interim Report 2024.
The Board of Directors of HSBC Holdings plc as at the date of this
announcement comprises:
Sir Mark Edward Tucker*, Noel Paul Quinn, Geraldine Joyce
Buckingham†,
Rachel Duan†,
Georges Bahjat Elhedery, Dame Carolyn Julie
Fairbairn†,
James Anthony Forese†,
Ann Frances Godbehere†,
Steven Craig Guggenheimer†,
Dr José Antonio Meade Kuribreña†,
Kalpana Jaisingh Morparia†,
Eileen K Murray†,
Brendan Robert Nelson†
and Swee Lian Teo†.
*
Non-executive
Group Chairman
†
Independent
non-executive Director
The Interim Report 2024 will be made available to shareholders on
or about 23 August
2024. Copies of the Interim Report
2024 and this news release may be obtained from Global
Communications, HSBC Holdings plc, 8 Canada Square, London E14 5HQ,
United Kingdom; from Communications (Asia), The Hongkong and
Shanghai Banking Corporation Limited, 1 Queen’s Road Central,
Hong Kong; or from US Communications, HSBC Bank USA, N.A., 1 West
39th Street, 9th Floor, New York, NY 10018, USA. The Interim Report
2024 and this news release may also be downloaded from the HSBC
website, www.hsbc.com.
A Chinese translation of the Interim Report 2024 is available upon
request from Computershare Hong Kong Investor Services Limited,
Rooms 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s
Road East, Hong Kong.
The Interim Report 2024 will be available on The Stock Exchange of
Hong Kong Limited’s website www.hkex.com.hk.
15
|
Cautionary statement regarding forward-looking
statements
|
This news release may contain projections, estimates, forecasts,
targets, commitments, ambitions, opinions, prospects, results,
returns and forward-looking statements with respect to the
financial condition, results of operations, capital position, ESG
related matters, strategy and business of the Group which can be
identified by the use of forward-looking terminology such as
‘may’, ‘will’, ‘should’,
‘expect’, ‘anticipate’,
‘project’, ‘estimate’, ‘seek’,
‘intend’, ‘target’, ‘plan’,
‘believe’, ‘potential’ or ‘reasonably
possible’, or the negatives thereof or other variations
thereon or comparable terminology (together, ‘forward-looking
statements‘), including the strategic priorities and any
financial, investment and capital targets and any ESG targets,
commitments and ambitions described herein.
Any such forward-looking statements are not a reliable indicator of
future performance, as they may involve significant stated or
implied assumptions and subjective judgements which may or may not
prove to be correct. There can be no assurance that any of the
matters set out in forward-looking statements are attainable, will
actually occur or will be realised or are complete or accurate. The
assumptions and judgements may prove to be incorrect and involve
known and unknown risks, uncertainties, contingencies and other
important factors, many of which are outside the control of the
Group.
Actual achievements, results, performance or other future events or
conditions may differ materially from those stated, implied and/or
reflected in any forward-looking statements due to a variety of
risks, uncertainties and other factors (including without
limitation those which are referable to general market or economic
conditions, regulatory and government policy changes, increased
volatility in interest rates and inflation levels and other
macroeconomic risks, geopolitical tensions such as the
Russia-Ukraine war and the Israel-Hamas war and potential further
escalations, specific economic developments, such as the uncertain
performance of the commercial real estate sector in mainland China,
or as a result of data limitations and changes in applicable
methodologies in relation to ESG related matters).
Any such forward-looking statements are based on the beliefs,
expectations and opinions of the Group at the date the statements
are made, and the Group does not assume, and hereby disclaims, any
obligation or duty to update, revise or supplement them if
circumstances or management’s beliefs, expectations or
opinions should change. For these reasons, recipients should not
place reliance on, and are cautioned about relying on, any
forward-looking statements. No representations or warranties,
expressed or implied, are given by or on behalf of the Group as to
the achievement or reasonableness of any projections, estimates,
forecasts, targets, commitments, ambitions, prospects or returns
contained herein.
Additional detailed information concerning important factors,
including but not limited to ESG related factors, that could cause
actual results to differ materially from this news release is
available in our Annual Report and Accounts for the fiscal year
ended 31 December 2023 filed with the US Securities and Exchange
Commission (the ‘SEC’) on Form 20-F on 22 February
2024, our 1Q 2024 Earnings Release furnished to the SEC on Form 6-K
on 30 April 2024 and our Interim Report 2024 for the six months
ended 30 June 2024 which we expect to furnish to the SEC on Form
6-K on or around 31 July 2024.
16
|
Use of alternative performance measures
|
Our reported results are prepared in accordance with International
Financial Reporting Standards as issued by the International
Accounting Standards Board (‘IFRS Accounting
Standards’) as detailed in the interim condensed consolidated
financial statements starting on page 113 of the Interim Report
2024.
To measure our performance, we supplement our IFRS Accounting
Standards figures with non-IFRS Accounting Standards measures,
which constitute alternative performance measures under European
Securities and Markets Authority guidance and non-GAAP financial
measures defined in and presented in accordance with US Securities
and Exchange Commission rules and regulations. These measures
include those derived from our reported results that eliminate
factors that distort period-on-period comparisons. The
‘constant currency performance’ measure used in this
report is described below. Definitions and calculations of other
alternative performance measures are included in
‘Reconciliation of alternative performance measures’ on
pages 56 to 61 of the Interim Report 2024, which is available at
www.hsbc.com. All alternative performance measures are reconciled
to the closest reported performance measure.
The global business segmental results are presented on a constant
currency basis in accordance with IFRS 8 ‘Operating
Segments’ as detailed in Note 5: ‘Segmental
analysis’ on page 122 of the Interim Report
2024.
Constant currency performance
Constant currency performance is computed by adjusting reported
results for the effects of foreign currency translation
differences, which distort period-on-period
comparisons.
We consider constant currency performance to provide useful
information for investors by aligning internal and external
reporting, and reflecting how management assesses period-on-period
performance.
Notable items
We separately disclose ‘notable items’, which are
components of our income statement that management would consider
as outside the normal course of business and generally
non-recurring in nature. Certain notable items are classified as
‘material notable items’, which are a subset of notable
items. Categorisation as a material notable item is dependent on
the nature of each item in conjunction with the financial impact on
the Group’s income statement.
For further information on our use of alternative performance
measures, see pages 29 and 56 of the Interim Report
2024.
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
subsidiary undertakings. 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’ and ‘$bn’
represent millions and billions (thousands of millions) of US
dollars, respectively.
18
|
Investor Relations / Media Relations contacts
|
For further information contact:
Investor Relations
|
Media Relations
|
UK -
Neil Sankoff
|
UK -
Gillian James
|
Telephone:
+44 (0)20 7991 5072
|
Telephone:
+44 (0)7584 404 238
|
Email:
investorrelations@hsbc.com
|
Email:
pressoffice@hsbc.com
|
|
|
Hong
Kong - Yafei Tian
|
UK - Kirsten
Smart
|
Telephone:
+852 2899 8909
|
Telephone:
+44 (0)7725 733 311
|
Email:
investorrelations@hsbc.com.hk
|
Email:
pressoffice@hsbc.com
|
|
|
|
Hong Kong - Aman
Ullah
|
|
Telephone: +852
3941 1120
|
|
Email: aspmediarelations@hsbc.com.hk
|
Registered Office and Group Head Office
HSBC Holdings plc
8 Canada Square
London E14 5HQ
United Kingdom
Tel: +44(0)20 7991 8888
Web: www.hsbc.com
Incorporated in England with limited liability. Registered number
617987
Please click on the link below to view the accompanying data
pack.
http://www.rns-pdf.londonstockexchange.com/rns/5444Y_1-2024-7-31.pdf
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
HSBC
Holdings plc
|
|
|
|
By:
|
|
Name:
Aileen Taylor
|
|
Title:
Group Company Secretary and Chief Governance Officer
|
|
|
|
Date:
31 July 2024
|
HSBC (NYSE:HSBC)
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