Annual Financial Report - 1 o

RNS Number : 2864J

HSBC Holdings PLC

30 March 2010

 



Headquartered in London, HSBC is one of the largest banking and financial services organisations in the world. Its international network comprises some 8,000 properties in 88 countries and territories in Europe; Hong Kong; Rest of Asia-Pacific; the Middle East; North America and Latin America.

With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by over 220,000 shareholders in 121 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Shares.

HSBC provides a comprehensive range of financial services to more than 100 million customers through four customer groups and global businesses: Personal Financial Services (including consumer finance); Commercial Banking; Global Banking and Markets; and Private Banking.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Certain defined terms

Unless the context requires otherwise, ‘HSBC Holdings’ means HSBC Holdings plc and ‘HSBC’ or the ‘Group’ means HSBC Holdings together with its subsidiaries. Within this document the Hong Kong Special Administrative Region of the People’s Republic of China is referred to as ‘Hong Kong’. When used in the terms ‘shareholders’ equity’ and ‘total shareholders’ equity’, ‘shareholders’ means holders of HSBC Holdings ordinary shares and those preference shares classified as equity.

 

 

 

 

This document comprises the Annual Report and Accounts 2009 for HSBC Holdings plc and its subsidiaries. It contains the Report of the Directors and Financial Statements, together with the Independent Auditor’s Report thereon, as required by the UK Companies Act 2006. The Annual Review 2009 of HSBC Holdings plc is published as a separate document. The Report of the Directors on pages 12 to 333 and the Directors’ Remuneration Report on pages 334 to 348 have each been drawn up in accordance with the requirements of English law, and liability in respect thereof is also governed by English law. In particular, the liability of the Directors for these reports is solely to HSBC Holdings.

Financial Highlights ....................................................................................................................................................				2
Cautionary Statement Regarding Forward-Looking Statements ........................................................................				6
Group Chairman’s Statement ....................................................................................................................................				8
Report of the Directors ................................................................................................................................................				12
Operating and Financial Review
Principal activities .....................................................	12		Group performance by income and expense item .	26
Strategic direction ......................................................	12		Consolidated balance sheet ..................................	42
Challenges and uncertainties .......................................	12		Critical accounting policies .........................................	61
Key performance indicators .......................................	18		Customer groups and global businesses1 .......................	66
Reconciliation of reported and underlying profit ........	21		Geographical regions1 .................................................	85
Financial summary1 ....................................................	23		Products and services ..................................................	145
Consolidated income statement ............................	23		Other information ......................................................	147
Impact of Market Turmoil
Background and disclosure policy ................................	151		Nature and extent of HSBC’s exposures ......................	157
Overview of exposure .................................................	152		Fair values of financial instruments ............................	166
Business model ...........................................................	156		Special purpose entities ..............................................	181
Risk management .......................................................	157		Other off-balance sheet arrangements and commitments	194
Accounting policies ....................................................	157
Risk1
Regulation and supervision .........................................	196		Operational risk .........................................................	262
Risk management .......................................................	199		Pension risk ...............................................................	263
Credit risk ..................................................................	201		Reputational risk ........................................................	263
Liquidity and funding ..................................................	244		Sustainability risk........................................................	264
Market risk ................................................................	250		Risk management of insurance operations ..................	265
Residual value risk ......................................................	261		Capital management and allocation ............................	285
Governance1
Corporate governance report .....................................	294		Corporate sustainability ..............................................	326
Directors and senior management ...............................	294		Share capital ...............................................................	328
Board of Directors ......................................................	302		Dividends, shareholders and meetings .........................	331
Employees .................................................................	318
Directors’ Remuneration Report1.............................................................................................................................				334
Statement of Directors’ Responsibilities .................................................................................................................				349
Independent Auditor’s Report ....................................................................................................................................				350
Financial Statements1..................................................................................................................................................				352
Notes on the Financial Statements ............................................................................................................................				365
Shareholder Information .............................................................................................................................................				472
Enforceability of judgements made in the US ..............	472		Memorandum and Articles of Association ..................	476
Limitations affecting equity security holders ..............	472		Annual General Meeting .............................................	477
Fourth interim dividend for 2008 ...............................	472		Interim Management Statements and Interim Results .	478
Fourth interim dividend for 2009 ...............................	472		Shareholder enquiries and communications .................	478
Interim dividends for 2010 .........................................	473		Investor relations .......................................................	479
Dividends on ordinary shares of HSBC Holdings .........	473		Where more information about HSBC is available ......	480
American Depositary Shares .......................................	474		Taxation of shares and dividends ................................	480
Nature of trading market ............................................	475		History and development of HSBC .............................	482
Shareholder profile .....................................................	476		Organisational structure ..............................................	484
Glossary and Index .......................................................................................................................................................				485

1 Detailed contents are provided on the referenced pages.

 

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