Interim Report - 1 of 21

RNS Number : 3053X

HSBC Holdings PLC

14 August 2009

 



Headquartered in London, HSBC is one of the largest banking and financial services organisations in the world. Its international network comprises some 8,500 offices in 86 countries and territories in Europe; Hong Kong; Rest of Asia-Pacific; the Middle East, including Africa; 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 about 220,000 shareholders in 119 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. 

The Interim Report 2009 of HSBC Holdings has been prepared 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. HSBC's Interim Financial Statements and Notes thereon, as set out on pages 199 to 231, have been prepared in accordance with International Accounting Standard ('IAS') 34 'Interim Financial Reporting' as issued by the International Accounting Standards Board ('IASB') and endorsed by the European Union ('EU'). In order to present fairly the financial position, financial performance and cash flows of the Group, as required by IAS 1 'Presentation of Financial Statements', and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, as required by section 393 of the Companies Act 2006, HSBC has departed from the requirements of IAS 32 'Financial Instruments: Presentation' in so far as this standard requires the offer of rights by HSBC to its shareholders in March 2009 to be classified as a derivative financial liability. Further details of this departure including its financial effect are provided in Note 19 on the Financial Statements. The Directors have concluded that the interim consolidated financial statements prepared on this basis present fairly, and give a true and fair view of, the Group's financial position, financial performance and cash flows. The consolidated financial statements of HSBC at 31 December 2008 were prepared in accordance with International Financial Reporting Standards ('IFRSs') as issued by the IASB, and as endorsed by the EU. EU-endorsed IFRSs may differ from IFRSs as issued by the IASB if, at any point in time, new or amended IFRSs have not been endorsed by the EU. At 31 December 2008, there were no unendorsed standards effective for the year ended 31 December 2008 affecting the consolidated financial statements at that date, 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 2008 were prepared in accordance with IFRSs as issued by the IASB. At 30 June 2009, there were no unendorsed standards effective for the period ended 30 June 2009 affecting these interim consolidated 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.

HSBC uses the US dollar as its presentation currency because the US dollar and currencies linked to it form the major currency bloc in which HSBC transacts its business. Unless otherwise stated, the information presented in this document has been prepared in accordance with IFRSs.

When reference is made to 'underlying' or 'underlying basis' in tables or commentaries, comparative information has been expressed at constant currency (see page 12) and adjusted for the effects of acquisitions and disposals.

Financial Highlights				2
Cautionary statement regarding forward-looking statements				4
Group Chairman's Statement				5
Group Chief Executive's Review				7
Interim Management Report				11
Operating and Financial Review
Principal activities	11		Income statement	14
Strategic direction	11		Group performance by income and expense item	15
Risks and uncertainties	11		Balance sheet	26
Fair presentation of rights issue	11		Other information	29
Reconciliation of reported and underlying profit	12		Customer groups and global businesses	30
Financial summary	14		Geographical regions	46
Impact of Market Turmoil
Background and disclosure policy	96		Nature and extent of HSBC's exposures	102
Overview of exposure	96		Fair values of financial instruments	114
Business model	101		Special purpose entities	124
Risk management	101		Other off-balance sheet arrangements
Accounting policies	102		and commitments	137
Risk
Risk management	138		Operational risk	181
Credit risk	138		Reputational risk	182
Liquidity and funding	169		Risk management of insurance operations	182
Market risk	173		Capital management and allocation	187
Board of Directors and Senior Management				193
Financial Statements				199
Notes on the Financial Statements1				207
Responsibility Statement				232
Independent Review Report by KPMG Audit Plc to HSBC Holdings plc				233
Additional Information				234
Directors' interests	234		Proposed interim dividends for 2009	244
Employee share option plans	237		Interim Management Statement	244
Notifiable interests in share capital	242		Final results	244
Dealings in HSBC Holdings shares	243		Corporate governance	244
Fourth interim dividend for 2008	243		Telephone and online share dealing service	245
First interim dividend for 2009	243		Stock codes	245
Second interim dividend for 2009	243		Copies of the Interim Report 2009 and shareholder enquiries and communications	245
Glossary of Terms				247
Index				249

1    Detailed contents are provided on the referenced page.

 

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