Annual Financial Report - 1 of 60

RNS Number : 1414D

HSBC Holdings PLC

25 March 2014

 



This document comprises the Annual Report and Accounts 2013 for HSBC Holdings plc and its subsidiaries. It contains the Strategic Report, the Report of the Directors and Financial Statements, together with the Independent Auditor's Report thereon, as required by the UK Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013. The Strategic Report on pages 1 to 46, the Report of the Directors on pages 47 to 377 and the Directors' Remuneration Report on pages 378 to 407 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 plc. Additional information, including commentary on 2012 compared with 2011, may be found in the Form 20‑F filed with the US Securities and Exchange Commission and available on www.hsbc.com and www.sec.gov. Certain defined terms Unless the context requires otherwise, 'HSBC Holdings' means HSBC Holdings plc and 'HSBC', the 'Group', 'we', 'us' and 'our' refer to HSBC Holdings together with its subsidiaries. Within this document the Hong Kong Special Administrative Region of the People's Republic of China is referred to as 'Hong Kong'. When used in the terms 'shareholders' equity' and 'total shareholders' equity', 'shareholders' means holders of HSBC Holdings ordinary shares and those preference shares classified as equity. The abbreviations 'US$m' and 'US$bn' represent millions and billions (thousands of millions) of US dollars, respectively. Financial statements The consolidated financial statements of HSBC and the separate financial statements of HSBC Holdings have been prepared in accordance with International Financial Reporting Standards ('IFRSs') as issued by the International Accounting Standards Board ('IASB') and as endorsed by the European Union ('EU'). EU‑endorsed IFRSs could differ from IFRSs as issued by the IASB if, at any point in time, new or amended IFRSs were not to be endorsed by the EU. At 31 December 2013, there were no unendorsed standards effective for the year ended 31 December 2013 affecting these consolidated and separate financial statements, and there was no difference between IFRSs endorsed by the EU and IFRSs issued by the IASB in terms of their application to HSBC. Accordingly, HSBC's financial statements for the year ended 31 December 2013 are prepared in accordance with IFRSs as issued by the IASB. We use the US dollar as our presentation currency because the US dollar and currencies linked to it form the major currency bloc in which we transact and fund our business. Unless otherwise stated, the information presented in this document has been prepared in accordance with IFRSs. When reference to 'underlying' is made in tables or commentaries, the comparative information has been expressed at constant currency (see page 47), the impact of fair value movements in respect of credit spread changes on HSBC's own debt has been eliminated and the effects of acquisitions, disposals and dilutions have been adjusted as reconciled on page 50. Underlying return on risk-weighted assets ('RoRWA') is defined and reconciled on page 71.		Contents
		Strategic Report
		Who we are .................................................................	1
		Our purpose .................................................................	1
		Highlights of 2013 .......................................................	2
		Group Chairman's Statement .......................................	3
		Group Chief Executive's Review ..................................	6
		Value creation and long-term sustainability ..................	9
		Strategic priorities:
		1  Grow the business and dividends .........................	13
		2  Implement Global Standards ...............................	23
		3  Streamline processes and procedures ...................	30
		Risk overview ..............................................................	36
		Rewarding performance ...............................................	42
		Report of the Directors
		Financial Review
		Financial summary1 .....................................................	47
		Global businesses1 .........................................................	77
		Products and services ...................................................	79
		Geographical regions1 ..................................................	96
		Other information .......................................................	130
		Risk1 ............................................................................	134
		Capital1 .......................................................................	298
		Corporate Governance1
		Corporate Governance Report .....................................	329
		Biographies of Directors and senior management .........	330
		Board of Directors .......................................................	338
		Board committees ........................................................	347
		Internal control ...........................................................	364
		Statement on going concern ........................................	367
		Employees ...................................................................	367
		Directors' Remuneration Report1 ............................	378
		Financial Statements1
		Statement of Directors' responsibilities .......................	408
		Independent Auditor's Report ......................................	410
		Financial statements ....................................................	416
		Notes on the financial statements ................................	428
		Shareholder Information1
		Shareholder information ..............................................	565
		Cautionary statement regarding forward-looking statements ...................................................................	574
		Abbreviations ..............................................................	575
		Glossary .......................................................................	579
		Index ...........................................................................	588
		1  Detailed contents are provided on the referenced pages.

 

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