Interim Report - 16 of 21

RNS Number : 9206Q

HSBC Holdings PLC

13 August 2010

 



Consolidated income statement for the half-year to 30 June 2010

		Half-year to
		30 June                2010		30 June                2009		31 December                2009
	Notes	US$m		US$m		US$m
Interest income ................................................................................		28,686		32,479		29,617
Interest expense ...............................................................................		(8,929)		(11,941)		(9,425)
Net interest income .........................................................................		19,757		20,538		20,192
Fee income ......................................................................................		10,405		10,191		11,212
Fee expense .....................................................................................		(1,887)		(1,763)		(1,976)
Net fee income ................................................................................		8,518		8,428		9,236
Trading income excluding net interest income .................................		2,309		4,301		1,935
Net interest income on trading activities ..........................................		1,243		1,954		1,673
Net trading income ..........................................................................		3,552		6,255		3,608
Changes in fair value of long-term debt issued and related derivatives .....................................................................................................		1,125		(2,300)		(3,947)
Net income/(expense) from other financial instruments designated at fair value .....................................................................................		(40)		777		1,939
Net income/(expense) from financial instruments designated at fair value .....................................................................................		1,085		(1,523)		(2,008)
Gains less losses from financial investments .....................................		557		323		197
Dividend income ..............................................................................		59		57		69
Net earned insurance premiums ........................................................		5,666		5,012		5,459
Other operating income ...................................................................		1,478		1,158		1,630
Total operating income ................................................................		40,672		40,248		38,383
Net insurance claims incurred and movement in liabilities to policyholders ...........................................................................		(5,121)		(5,507)		(6,943)
Net operating income before loan impairment charges and other credit risk provisions .....................................................		35,551		34,741		31,440
Loan impairment charges and other credit risk provisions ................		(7,523)		(13,931)		(12,557)
Net operating income ...................................................................		28,028		20,810		18,883
Employee compensation and benefits ..............................................		(9,806)		(9,207)		(9,261)
General and administrative expenses ................................................		(7,014)		(6,258)		(7,134)
Depreciation and impairment of property, plant and equipment ......		(834)		(814)		(911)
Amortisation and impairment of intangible assets ............................		(457)		(379)		(431)
Total operating expenses .............................................................		(18,111)		(16,658)		(17,737)
Operating profit ...........................................................................		9,917		4,152		1,146
Share of profit in associates and joint ventures .................................		1,187		867		914
Profit before tax ............................................................................		11,104		5,019		2,060
Tax expense ....................................................................................	6	(3,856)		(1,286)		901
Profit for the period .....................................................................		7,248		3,733		2,961
Profit attributable to shareholders of the parent company ...............		6,763		3,347		2,487
Profit attributable to non-controlling interests .................................		485		386		474
		US$		US$		US$
Basic earnings per ordinary share .....................................................	4	0.38		0.21		0.13
Diluted earnings per ordinary share ..................................................	4	0.38		0.21		0.13

The accompanying notes on pages 212 to 232 and 'Fair values of financial instruments' on pages 114 to 125 form an integral part of these financial statements.

Consolidated statement of comprehensive income for the half-year to 30 June 2010

	Half-year to
	30 June		30 June		31 December
	2010		2009		2009
	US$m		US$m		US$m
			,
Profit for the period ...........................................................................	7,248		3,733		2,961
Other comprehensive income
Available-for-sale investments ...........................................................	4,206		3,870		6,947
-  fair value gains/(losses) ...............................................................	4,698		4,067		5,754
-  fair value (gains)/losses transferred to income statement on disposal ....................................................................................................	(574)		(720)		72
-  amounts transferred to the income statement in respect of impairment losses .......................................................................	678		872		1,519
-  income taxes ..............................................................................	(596)		(349)		(398)
Cash flow hedges ................................................................................	(45)		452		320
-  fair value gains/(losses) taken to equity .......................................	(1,687)		(111)		592
-  fair value (gains)/losses transferred to income statement .............	1,644		856		(48)
-  income taxes ..............................................................................	(2)		(293)		(224)
Actuarial gains/(losses) on defined benefit plans ..................................	(60)		(2,609)		1
-  before income taxes ....................................................................	(82)		(3,578)		(8)
-  income taxes ..............................................................................	22		969		9
Share of other comprehensive income of associates and joint ventures	73		105		44
Exchange differences ..........................................................................	(6,128)		3,450		1,525
Other comprehensive income for the period, net of tax .....................	(1,954)		5,268		8,837
Total comprehensive income for the period .......................................	5,294		9,001		11,798
Total comprehensive income for the period attributable to:
-  shareholders of the parent company ...........................................	4,901		8,397		11,132
-  non-controlling interests ............................................................	393		604		666
	5,294		9,001		11,798

The accompanying notes on pages 212 to 232 and 'Fair values of financial instruments' on pages 114 to 125 form an integral part of these financial statements.

Consolidated balance sheet at 30 June 2010

		At  30 June		At  30 June		At  31 December
		2010		2009		2009
	Notes	US$m		US$m		US$m
ASSETS
Cash and balances at central banks ............................................		71,576		56,368		60,655
Items in the course of collection from other banks ...................		11,195		16,613		6,395
Hong Kong Government certificates of indebtedness ................		18,364		16,156		17,463
Trading assets ...........................................................................	7	403,800		414,358		421,381
Financial assets designated at fair value .....................................	8	32,243		33,361		37,181
Derivatives ...............................................................................	9	288,279		310,796		250,886
Loans and advances to banks ....................................................		196,296		182,266		179,781
Loans and advances to customers .............................................		893,337		924,683		896,231
Financial investments ...............................................................	10	385,471		353,444		369,158
Other assets ..............................................................................	11	42,140		34,250		44,534
Current tax assets .....................................................................		1,070		1,201		2,937
Prepayments and accrued income .............................................		11,586		14,486		12,423
Interests in associates and joint ventures ..................................		15,701		12,316		13,011
Goodwill and intangible assets ...................................................		27,859		29,105		29,994
Property, plant and equipment .................................................		13,291		14,573		13,802
Deferred tax assets ...................................................................		6,246		7,867		8,620
Total assets ..............................................................................		2,418,454		2,421,843		2,364,452
LIABILITIES AND EQUITY
Liabilities
Hong Kong currency notes in circulation ..................................		18,364		16,156		17,463
Deposits by banks .....................................................................		127,316		129,151		124,872
Customer accounts ...................................................................		1,147,321		1,163,343		1,159,034
Items in the course of transmission to other banks ...................		11,976		16,007		5,734
Trading liabilities ......................................................................	12	274,836		264,562		268,130
Financial liabilities designated at fair value ................................	13	80,436		77,314		80,092
Derivatives ...............................................................................	9	287,014		298,876		247,646
Debt securities in issue ..............................................................		153,600		156,199		146,896
Other liabilities .........................................................................		71,732		70,125		68,640
Current tax liabilities ................................................................		2,558		2,274		2,140
Liabilities under insurance contracts .........................................		52,516		48,184		53,707
Accruals and deferred income ...................................................		12,174		13,184		13,190
Provisions ................................................................................		1,828		1,949		1,965
Deferred tax liabilities ..............................................................		1,264		1,849		1,837
Retirement benefit liabilities .....................................................		3,949		7,238		6,967
Subordinated liabilities ..............................................................		28,247		30,134		30,478
Total liabilities .........................................................................		2,275,131		2,296,545		2,228,791
Equity
Called up share capital ..............................................................		8,755		8,658		8,705
Share premium account ............................................................		8,423		8,390		8,413
Other equity instruments ..........................................................		5,851		2,133		2,133
Other reserves ..........................................................................		19,989		19,186		22,236
Retained earnings .....................................................................		92,925		79,988		86,812
Total shareholders' equity ........................................................		135,943		118,355		128,299
Non-controlling interests .........................................................		7,380		6,943		7,362
Total equity .............................................................................		143,323		125,298		135,661
Total equity and liabilities ........................................................		2,418,454		2,421,843		2,364,452

The accompanying notes on pages 212 to 232 and 'Fair values of financial instruments' on pages 114 to 125 form an integral part of these financial statements.

Consolidated statement of cash flows for the half-year to 30 June 2010

		Half-year to
	Notes	30 June 2010		30 June 2009		31 December 2009
		US$m		US$m		US$m
Cash flows from operating activities
Profit before tax ..............................................................................		11,104		5,019		2,060
Adjustments for:
-  non-cash items included in profit before tax .............................	15	9,553		16,255		15,129
-  change in operating assets ........................................................	15	14,130		(37,279)		16,476
-  change in operating liabilities ...................................................	15	(1,389)		22,246		(7,601)
-  elimination of exchange differences1 ........................................		17,993		(7,878)		(11,146)
-  net gain from investing activities .............................................		(1,111)		(911)		(999)
-  share of profit in associates and joint ventures .........................		(1,187)		(867)		(914)
-  dividends received from associates ............................................		198		195		219
-  contributions paid to defined benefit plans ................................		(2,899)		(440)		(534)
-  tax paid ....................................................................................		(247)		118		(2,250)
Net cash generated from/(used in) operating activities ......................		46,145		(3,542)		10,440
Cash flows from investing activities
Purchase of financial investments ....................................................		(199,567)		(163,988)		(140,641)
Proceeds from the sale and maturity of financial investments ..........		178,272		112,927		128,414
Purchase of property, plant and equipment ......................................		(739)		(781)		(1,219)
Proceeds from the sale of property, plant and equipment .................		3,338		2,203		2,498
Proceeds from the sale of loan portfolios .........................................		929		3,961		891
Net purchase of intangible assets ......................................................		(521)		(463)		(493)
Net cash outflow from acquisition of subsidiaries ..............................		(34)		(574)		(103)
Net cash inflow from disposal of subsidiaries ....................................		191		-		45
Net cash outflow from acquisition of or increase in stake of associates .....................................................................................................		(563)		(20)		(42)
Proceeds from disposal of associates and joint ventures ....................		171		308		-
Net cash used in investing activities .................................................		(18,523)		(46,427)		(10,650)
Cash flows from financing activities
Issue of ordinary share capital ..........................................................		-		18,181		217
- rights issue .................................................................................		-		18,179		147
- other .........................................................................................		-		2		70
Issue of other equity instruments.......................................................		3,718		-		-
Net (purchases)/sales of own shares for market-making and investment purposes .......................................................................................		61		(51)		(125)
(Purchases)/sales of own shares to meet share awards and share option awards ...............................................................................		19		(62)		11
On exercise of share options ............................................................		61		-		12
Subordinated loan capital issued ........................................................		1,329		2,763		196
Subordinated loan capital repaid .......................................................		(2,408)		(154)		(4,483)
Dividends paid to shareholders of the parent company .....................		(2,126)		(2,426)		(1,838)
Dividends paid to non-controlling interests ......................................		(329)		(433)		(269)
Dividends paid to holders of other equity instruments ......................		(134)		(89)		(180)
Net cash generated from/(used in) financing activities ...........		191		17,729		(6,459)
Net increase/(decrease) in cash and cash equivalents .........................		27,813		(32,240)		(6,669)
Cash and cash equivalents at the beginning of the period ..................		250,766		278,872		251,696
Exchange differences in respect of cash and cash equivalents ...........		(12,669)		5,064		5,739
Cash and cash equivalents at the end of the period ...........................	15	265,910		251,696		250,766

For footnote, see page 211.

The accompanying notes on pages 212 to 232 and 'Fair values of financial instruments' on pages 114 to 125 form an integral part of these financial statements.

Consolidated statement of changes in equity for the half-year to 30 June 2010

	Half-year to 30 June 2010
									Other reserves
	Called up  share  capital		Share   premium2		Other  equity  instru- ments		Retained   earnings3,4		Available-  for-sale  fair value  reserve		Cash flow   hedging   reserve5		Foreign  exchange  reserve		Share-  based  payment  reserve		Merger   reserve3,6		Total  share- holders'  equity		Non- controlling  interests		Total  equity
	US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m
At 1 January 2010 .......................................	8,705		8,413		2,133		86,812		(9,965)		(26)		2,994		1,925		27,308		128,299		7,362		135,661
Profit for the period ....................................	-		-		-		6,763		-		-		-		-		-		6,763		485		7,248
Other comprehensive income (net of tax) ...	-		-		-		28		4,151		(39)		(6,002)		-		-		(1,862)		(92)		(1,954)
Available-for-sale investments ....................	-		-		-		-		4,151		-		-		-		-		4,151		55		4,206
Cash flow hedges .........................................	-		-		-		-		-		(39)		-		-		-		(39)		(6)		(45)
Actuarial losses on defined benefit plans ......	-		-		-		(45)		-		-		-		-		-		(45)		(15)		(60)
Share of other comprehensive income of associates and joint ventures ....................	-		-		-		73		-		-		-		-		-		73		-		73
Exchange differences ...................................	-		-		-		-		-		-		(6,002)		-		-		(6,002)		(126)		(6,128)
Total comprehensive income for the period	-		-		-		6,791		4,151		(39)		(6,002)		-		-		4,901		393		5,294
Shares issued under employee share plans .....	3		58		-		-		-		-		-		-		-		61		-		61
Shares issued in lieu of dividends and amounts arising thereon2 .........................	47		(48)		-		1,584		-		-		-		-		-		1,583		-		1,583
Capital securities issued during the period7 ...	-		-		3,718		-		-		-		-		-		-		3,718		-		3,718
Dividends to shareholders ............................	-		-		-		(3,261)		-		-		-		-		-		(3,261)		(409)		(3,670)
Tax credits on dividends ..............................	-		-		-		54		-		-		-		-		-		54		-		54
Own shares adjustment ................................	-		-		-		80		-		-		-		-		-		80		-		80
Exercise and lapse of share options and vesting of share awards ............................	-		-		-		736		-		-		-		(855)		-		(119)		-		(119)
Cost of share-based payment arrangements .	-		-		-		-		-		-		-		371		-		371		-		371
Income taxes on share-based payments .......	-		-		-		(14)		-		-		-		-		-		(14)		-		(14)
Other movements .......................................	-		-		-		(30)		294		8		(2)		-		-		270		(1)		269
Transfers .....................................................	-		-		-		173		-		-		-		(173)		-		-		-		-
Change in ownership interest in subsidiaries .	-		-		-		-		-		-		-		-		-		-		35		35
At 30 June 2010 ..........................................	8,755		8,423		5,851		92,925		(5,520)		(57)		(3,010)		1,268		27,308		135,943		7,380		143,323

	Half-year to 30 June 2009
									Other reserves
	Called up  share  capital		Share   premium2		Other  equity  instru-  ments		Retained   earnings3,4		Available-  for-sale  fair value  reserve		Cash flow   hedging   reserve5		Foreign  exchange  reserve		Share-  based  payment  reserve		Merger   reserve3,6		Total  share- holders'  equity		Non-  controlling  interests		Total  equity
	US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m
At 1 January 2009........................................	6,053		8,463		2,133		80,689		(20,550)		(806)		(1,843)		1,995		17,457		93,591		6,638		100,229
Profit for the period ....................................	-		-		-		3,347		-		-		-		-		-		3,347		386		3,733
Other comprehensive income (net of tax) ...	-		-		-		(2,567)		3,755		466		3,396		-		-		5,050		218		5,268
Available-for-sale investments ....................	-		-		-		-		3,755		-		-		-		-		3,755		115		3,870
Cash flow hedges .........................................	-		-		-		-		-		466		-		-		-		466		(14)		452
Actuarial gains/(losses) on defined benefit plans ........................................................	-		-		-		(2,672)		-		-		-		-		-		(2,672)		63		(2,609)
Share of other comprehensive income of associates and joint ventures ....................	-		-		-		105		-		-		-		-		-		105		-		105
Exchange differences ...................................	-		-		-		-		-		-		3,396		-		-		3,396		54		3,450
Total comprehensive income for the period	-		-		-		780		3,755		466		3,396		-		-		8,397		604		9,001
Shares issued under employee share plans .....	-		3		-		-		-		-		-		-		-		3		-		3
Shares issued in lieu of dividends and amounts arising thereon2 .........................	75		(75)		-		814		-		-		-		-		-		814		-		814
Shares issued in respect of rights issue ..........	2,530		-		-		-		-		-		-		-		15,649		18,179		-		18,179
Dividends to shareholders ............................	-		-		-		(2,728)		-		-		-		-		-		(2,728)		(513)		(3,241)
Own shares adjustment ................................	-		-		-		(113)		-		-		-		-		-		(113)		-		(113)
Exercise and lapse of share options and vesting of share awards ............................	-		-		-		658		-		-		-		(699)		-		(41)		-		(41)
Cost of share-based payment arrangements .	-		-		-		-		-		-		-		355		-		355		-		355
Income tax on share based payments ...........	-		-		-		(9)		-		-		-		-		-		(9)		-		(9)
Other movements .......................................	-		(1)		-		(103)		-		-		-		11		-		(93)		12		(81)
Change in ownership interest in subsidiaries .	-		-		-		-		-		-		-		-		-		-		202		202
At 30 June 2009...........................................	8,658		8,390		2,133		79,988		(16,795)		(340)		1,553		1,662		33,106		118,355		6,943		125,298

	Half-year to 31 December 2009
									Other reserves
	Called up  share  capital		Share   premium2		Other  equity  instru-  ments		Retained   earnings3,4		Available-  for-sale  fair value  reserve		Cash flow   hedging   reserve5		Foreign  exchange  reserve		Share-  based  payment  reserve		Merger   reserve3,6		Total  share- holders'  equity		Non-  controlling  interests		Total  equity
	US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m
At 1 July 2009 ...................................	8,658		8,390		2,133		79,988		(16,795)		(340)		1,553		1,662		33,106		118,355		6,943		125,298
Profit for the period ..........................	-		-		-		2,487		-		-		-		-		-		2,487		474		2,961
Other comprehensive income (net of tax) ................................................	-		-		-		31		6,848		325		1,441		-		-		8,645		192		8,837
Available-for-sale investments ...........	-		-		-		-		6,848		-		-		-		-		6,848		99		6,947
Cash flow hedges ................................	-		-		-		-		-		325		-		-		-		325		(5)		320
Actuarial gains/(losses) on defined benefit plans ..............................................	-		-		-		(13)		-		-		-		-		-		(13)		14		1
Share of other comprehensive income of associates and joint ventures ......	-		-		-		44		-		-		-		-		-		44		-		44
Exchange differences .........................	-		-		-		-		-		-		1,441		-		-		1,441		84		1,525
Total comprehensive income for period .............................................	-		-		-		2,518		6,848		325		1,441		-		-		11,132		666		11,798
Shares issued under employee share plans ..............................................	4		66		-		-		-		-		-		-		-		70		-		70
Shares issued in lieu of dividends and amounts arising thereon2 ..............................	43		(44)		-		856		-		-		-		-		-		855		-		855
Shares issued in respect of rights issue .	-		-		-		-		-		-		-		-		147		147		-		147
Dividends to shareholders....................	-		-		-		(2,911)		-		-		-		-		-		(2,911)		(319)		(3,230)
Tax credits on dividends .....................	-		-		-		50		-		-		-		-		-		50		-		50
Own shares adjustment .......................	-		-		-		(114)		-		-		-		-		-		(114)		-		(114)
Exercise and lapse of share options and vesting of share awards ...............................	-		-		-		149		-		-		-		(70)		-		79		-		79
Cost of share-based payment arrangements ..................................	-		-		-		-		-		-		-		328		-		328		-		328
Income taxes on share-based payments .......................................................	-		-		-		18		-		-		-		-		-		18		-		18
Other movements ..............................	-		1		-		313		(18)		(11)		-		5		-		290		65		355
Transfers ...........................................	-		-		-		5,945		-		-		-		-		(5,945)		-		-		-
Change in ownership interest in subsidiaries ......................................	-		-		-		-		-		-		-		-		-		-		7		7
At 31 December 2009 ........................	8,705		8,413		2,133		86,812		(9,965)		(26)		2,994		1,925		27,308		128,299		7,362		135,661

Dividends per ordinary share at 30 June 2010 were US$0.18 (30 June 2009: US$0.18; 31 December 2009: US$0.16).

For footnotes, see page 211.

The accompanying notes on pages 212 to 232 and 'Fair values of financial instruments' on pages 114 to 125 form an integral part of these financial statements.

 

END

 

 

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