Interim Report - 23 of 28

RNS Number : 9088L

HSBC Holdings PLC

16 August 2013

 



Consolidated income statement for the half-year to 30 June 2013

		Half-year to
		30 June                2013		30 June                2012		31 December                2012
	Notes	US$m		US$m		US$m
Interest income ..................................................................................		25,740		29,549		27,153
Interest expense .................................................................................		(7,921)		(10,173)		(8,857)
Net interest income ............................................................................		17,819		19,376		18,296
Fee income .........................................................................................		10,148		10,281		9,868
Fee expense ........................................................................................		(1,744)		(1,974)		(1,745)
Net fee income ...................................................................................		8,404		8,307		8,123
Trading income excluding net interest income ....................................		5,230		3,134		1,274
Net interest income on trading activities ............................................		1,132		1,385		1,298
Net trading income .............................................................................		6,362		4,519		2,572
Changes in fair value of long-term debt issued and related derivatives .		(1,419)		(1,810)		(2,517)
Net income from other financial instruments designated at fair value .		222		627		1,474
Net expense from financial instruments designated at fair value .........		(1,197)		(1,183)		(1,043)
Gains less losses from financial investments .......................................		1,856		1,023		166
Dividend income ................................................................................		107		103		118
Net earned insurance premiums ..........................................................		6,226		6,696		6,348
Gains on disposal of US branch network, US cards business and Ping An Insurance (Group) Company of China, Ltd .......................		-		3,809		3,215
Other operating income .....................................................................		946		1,022		1,078
Total operating income ..................................................................		40,523		43,672		38,873
Net insurance claims incurred and movement in liabilities to policyholders .............................................................................		(6,151)		(6,775)		(7,440)
Net operating income before loan impairment charges and other credit risk provisions .......................................................		34,372		36,897		31,433
Loan impairment charges and other credit risk provisions ..................		(3,116)		(4,799)		(3,512)
Net operating income .....................................................................		31,256		32,098		27,921
Employee compensation and benefits .................................................		(9,496)		(10,905)		(9,586)
General and administrative expenses ...................................................		(7,727)		(9,125)		(10,858)
Depreciation and impairment of property, plant and equipment .........		(699)		(706)		(778)
Amortisation and impairment of intangible assets ..............................		(477)		(468)		(501)
Total operating expenses ...............................................................		(18,399)		(21,204)		(21,723)
Operating profit ..............................................................................		12,857		10,894		6,198
Share of profit in associates and joint ventures ...................................		1,214		1,843		1,714
Profit before tax ..............................................................................		14,071		12,737		7,912
Tax expense .......................................................................................	6	(2,725)		(3,629)		(1,686)
Profit for the period ........................................................................		11,346		9,108		6,226
Profit attributable to shareholders of the parent company ..................		10,284		8,438		5,589
Profit attributable to non-controlling interests ...................................		1,062		670		637
		US$		US$		US$
Basic earnings per ordinary share ........................................................	4	0.54		0.45		0.29
Diluted earnings per ordinary share .....................................................	4	0.54		0.45		0.29

The accompanying notes on pages 216 to 263 form an integral part of these financial statements¹.

For footnote, see page 215.

Consolidated statement of comprehensive income for the half-year to 30 June 2013

	Half-year to
	30 June		30 June		31 December
	2013		2012		2012
	US$m		US$m		US$m
			,
Profit for the period .....................................................................................	11,346		9,108		6,226
Other comprehensive income/(expense)
Items that will be reclassified subsequently to profit or loss when specific conditions are met:
Available-for-sale investments .....................................................................	(1,818)		1,593		3,477
-  fair value gains/(losses)2 ........................................................................	(1,609)		2,362		4,034
-  fair value gains transferred to income statement on disposal .................	(1,025)		(1,017)		(855)
-  amounts transferred to the income statement in respect of impairment losses .................................................................................	206		450		552
-  income taxes ........................................................................................	610		(202)		(254)
Cash flow hedges ..........................................................................................	(198)		(6)		115
-  fair value gains/(losses) .........................................................................	35		(307)		859
-  fair value (gains)/losses transferred to income statement .......................	(258)		245		(668)
-  income taxes ........................................................................................	25		56		(76)
Share of other comprehensive income/(expense) of associates and joint ventures .......................................................................................................	1		338		195
-  share for the year..................................................................................	37		338		(27)
-  reclassified to income statement on disposal..........................................	(36)		-		222
Exchange differences ....................................................................................	(4,525)		(392)		1,409
-  foreign exchange gains reclassified to income statement on disposal of a foreign operation ..................................................................................	(290)		-		(1,128)
-  other exchange difference .....................................................................	(4,235)		(392)		2,537
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability/asset ...........................................	(959)		(469)		274
-  before income taxes ..............................................................................	(1,223)		(619)		228
-  income taxes ........................................................................................	264		150		46
Other comprehensive income/(expense) for the period, net of tax ...............	(7,499)		1,064		5,470
Total comprehensive income for the period .................................................	3,847		10,172		11,696
Total comprehensive income for the period attributable to:
-  shareholders of the parent company .....................................................	3,072		9,515		10,940
-  non-controlling interests ......................................................................	775		657		756
	3,847		10,172		11,696

The accompanying notes on pages 216 to 263 form an integral part of these financial statements¹.

For footnotes, see page 215.

Consolidated balance sheet at 30 June 2013

		At           30 June		At             30 June		At    31 December
		2013		2012		2012
	Notes	US$m		US$m		US$m
Assets
Cash and balances at central banks ......................................................		148,285		147,911		141,532
Items in the course of collection from other banks .............................		8,416		11,075		7,303
Hong Kong Government certificates of indebtedness ..........................		24,275		21,283		22,743
Trading assets .....................................................................................	7	432,601		391,371		408,811
Financial assets designated at fair value ...............................................	10	35,318		32,310		33,582
Derivatives .........................................................................................	11	299,213		355,934		357,450
Loans and advances to banks ..............................................................		185,122		182,191		152,546
Loans and advances to customers .......................................................		969,382		974,985		997,623
Financial investments .........................................................................	12	404,214		393,736		421,101
Assets held for sale .............................................................................	13	20,377		12,383		19,269
Other assets ........................................................................................		45,135		47,115		54,716
Current tax assets ...............................................................................		1,207		1,312		515
Prepayments and accrued income .......................................................		9,781		9,736		9,502
Interests in associates and joint ventures ............................................		15,676		23,790		17,834
Goodwill and intangible assets .............................................................		28,537		28,916		29,853
Property, plant and equipment ...........................................................		10,572		10,642		10,588
Deferred tax assets .............................................................................		7,205		7,644		7,570
Total assets ........................................................................................		2,645,316		2,652,334		2,692,538
Liabilities and equity
Liabilities
Hong Kong currency notes in circulation ............................................		24,275		21,283		22,742
Deposits by banks ...............................................................................		110,023		123,553		107,429
Customer accounts .............................................................................		1,316,182		1,278,489		1,340,014
Items in the course of transmission to other banks .............................		9,364		11,321		7,138
Trading liabilities ................................................................................	14	342,432		308,564		304,563
Financial liabilities designated at fair value ..........................................	15	84,254		87,593		87,720
Derivatives .........................................................................................	11	293,669		355,952		358,886
Debt securities in issue ........................................................................		109,389		125,543		119,461
Liabilities of disposal groups held for sale ...........................................		19,519		12,599		5,018
Other liabilities ...................................................................................		33,511		35,119		33,862
Current tax liabilities ..........................................................................		1,586		3,462		1,452
Liabilities under insurance contracts ...................................................		69,771		62,861		68,195
Accruals and deferred income .............................................................		11,292		11,727		13,184
Provisions ..........................................................................................	16	4,787		5,259		5,252
Deferred tax liabilities ........................................................................		864		1,585		1,109
Retirement benefit liabilities ...............................................................		3,216		3,962		3,905
Subordinated liabilities ........................................................................		28,821		29,696		29,479
Total liabilities ...................................................................................		2,462,955		2,478,568		2,509,409
Equity
Called up share capital ........................................................................		9,313		9,081		9,238
Share premium account ......................................................................		11,071		9,841		10,084
Other equity instruments ....................................................................		5,851		5,851		5,851
Other reserves ....................................................................................		23,503		24,806		29,722
Retained earnings ...............................................................................		124,332		116,266		120,347
Total shareholders' equity ..................................................................		174,070		165,845		175,242
Non-controlling interests ...................................................................		8,291		7,921		7,887
Total equity .......................................................................................		182,361		173,766		183,129
Total equity and liabilities ..................................................................		2,645,316		2,652,334		2,692,538

The accompanying notes on pages 216 to 263 form an integral part of these financial statements¹.

For footnote, see page 215.

Consolidated statement of cash flows for the half-year to 30 June 2013

		Half-year to
	Notes	30 June               2013		30 June               2012		31 December               2012
		US$m		US$m		US$m
Cash flows from operating activities
Profit before tax ..............................................................................		14,071		12,737		7,912
-....	-
Adjustments for:
-  net gain from investing activities .............................................		(1,435)		(1,481)		(613)
-  share of profit in associates and joint ventures .........................		(1,214)		(1,843)		(1,714)
-  gain on disposal of US branch network, US cards business and Ping An Insurance (Group) Company of China, Ltd ('Ping An')..........................................................................................		-		(3,809)		(3,215)
-  other non-cash items included in profit before tax ....................	20	5,091		10,420		9,358
-  change in operating assets ........................................................	20	20,921		(47,658)		(68,863)
-  change in operating liabilities ...................................................	20	(21,070)		40,766		48,304
-  elimination of exchange differences3 ........................................		4,877		3,504		(7,130)
-  dividends received from associates ............................................		665		278		211
-  contributions paid to defined benefit plans ................................		(494)		(437)		(296)
-  tax paid ....................................................................................		(2,125)		(2,304)		(3,283)
Net cash generated from operating activities ....................................		19,287		10,173		(19,329)
Cash flows from investing activities
Purchase of financial investments ....................................................		(171,175)		(177,427)		(165,547)
Proceeds from the sale and maturity of financial investments ..........		181,706		188,242		141,684
Purchase of property, plant and equipment ......................................		(1,155)		(683)		(635)
Proceeds from the sale of property, plant and equipment .................		164		76		165
Proceeds from the sale of loan portfolios .........................................		3,193		-		-
Net purchase of intangible assets ......................................................		(416)		(507)		(501)
Net cash inflow from disposal of US branch network and cards business ........................................................................................		-		23,484		(2,579)
Net cash inflow/(outflow) from disposal of other subsidiaries and businesses .....................................................................................		287		(1,537)		674
Net cash inflow/(outflow) from acquisition of or increase in stake of associates .....................................................................................		(25)		(13)		(1,791)
Proceeds from disposal of Ping An ...................................................	20	7,413		-		1,954
Proceeds from disposal of other associates and joint ventures ..........		367		288		306
Net cash generated from/(used in) investing activities ......................		20,359		31,923		(26,270)
Cash flows from financing activities
Issue of ordinary share capital ..........................................................		169		263		331
Net sales/(purchases) of own shares for market-making and investment purposes .....................................................................		(33)		25		(50)
Subordinated loan capital issued ........................................................		-		-		37
Subordinated loan capital repaid .......................................................		(45)		(1,453)		(301)
Net cash outflow from change in stake in subsidiaries .......................		1		-		(14)
Dividends paid to ordinary shareholders of the parent company .......		(2,799)		(3,161)		(2,764)
Dividends paid to non-controlling interests ......................................		(331)		(325)		(247)
Dividends paid to holders of other equity instruments ......................		(286)		(286)		(287)
Net cash used in financing activities .................................................		(3,324)		(4,937)		(3,295)
Net increase/(decrease) in cash and cash equivalents .............		36,322		37,159		(48,894)
Cash and cash equivalents at the beginning of the period ..................		315,308		325,449		359,007
Exchange differences in respect of cash and cash equivalents ...........		(8,259)		(3,601)		5,195
Cash and cash equivalents at the end of the period ...........................	20	343,371		359,007		315,308

The accompanying notes on pages 216 to 263 form an integral part of these financial statements¹.

For footnotes, see page 215.

Consolidated statement of changes in equity for the half-year to 30 June 2013

	Half-year to 30 June 2013
									Other reserves
	Called up       share     capital		Share premium4		Other      equity     instru-     ments		Retained earnings            5,6		Available-   for-sale fair value    reserve		Cash flow   hedging    reserve7		Foreign exchange    reserve		Merger reserve5,8		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
At 1 January 2013 ...........................................	9,238		10,084		5,851		120,347		1,649		13		752		27,308		175,242		7,887		183,129
Profit for the period ........................................	-		-		-		10,284		-		-		-		-		10,284		1,062		11,346
Other comprehensive income (net of tax) .......	-		-		-		(993)		(1,635)		(197)		(4,387)		-		(7,212)		(287)		(7,499)
Available-for-sale investments .........................	-		-		-		-		(1,635)		-		-		-		(1,635)		(183)		(1,818)
Cash flow hedges ..............................................	-		-		-		-		-		(197)		-		-		(197)		(1)		(198)
Remeasurement of defined benefit liability/asset .....................................................................	-		-		-		(994)		-		-		-		-		(994)		35		(959)
Share of other comprehensive income of associates and joint ventures .........................................	-		-		-		1		-		-		-		-		1		-		1
Exchange differences .......................................	-		-		-		-		-		-		(4,387)		-		(4,387)		(138)		(4,525)
Total comprehensive income for the period ....	-		-		-		9,291		(1,635)		(197)		(4,387)		-		3,072		775		3,847
Shares issued under employee remuneration and share plans ...................................................	50		1,012		-		(893)		-		-		-		-		169		-		169
Shares issued in lieu of dividends and amounts arising thereon4 .......................................................	25		(25)		-		707		-		-		-		-		707		-		707
Dividends to shareholders9 ................................	-		-		-		(5,487)		-		-		-		-		(5,487)		(400)		(5,887)
Tax credits on distributions ..............................	-		-		-		54		-		-		-		-		54		-		54
Own shares adjustment .....................................	-		-		-		(36)		-		-		-		-		(36)		-		(36)
Cost of share-based payment arrangements ......	-		-		-		355		-		-		-		-		355		-		355
Income taxes on share-based payments ............	-		-		-		9		-		-		-		-		9		-		9
Other movements ............................................	-		-		-		(15)		-		-		-		-		(15)		22		7
Acquisition and disposal of subsidiaries .............	-		-		-		-		-		-		-		-		-		6		6
Changes in ownership interests in subsidiaries that did not result in loss of control ..........................	-		-		-		-		-		-		-		-		-		1		1
	-
At 30 June 2013 ..............................................	9,313		11,071		5,851		124,332		14		(184)		(3,635)		27,308		174,070		8,291		182,361

	Half-year to 30 June 2012
									Other reserves
	Called up         share      capital		Share   premium4		Other       equity       instru-      ments		Retained   earnings            5,6		Available-     for-sale fair value      reserve		Cash flow     hedging      reserve7		Foreign exchange      reserve		Merger   reserve5,8		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
At 1 January 2012 ...........................................	8,934		8,457		5,851		111,868		(3,361)		(95)		(237)		27,308		158,725		7,368		166,093
Profit for the period ........................................	-		-		-		8,438		-		-		-		-		8,438		670		9,108
	-		-		-
Other comprehensive income (net of tax) .......	-		-		-		(114)		1,562		(7)		(364)		-		1,077		(13)		1,064
Available-for-sale investments .........................	-		-		-				1,562		-		-		-		1,562		31		1,593
Cash flow hedges ..............................................	-		-		-				-		(7)		-		-		(7)		1		(6)
Actuarial gains/(losses) on defined benefit plans .....................................................................	-		-		-		(452)		-		-		-		-		(452)		(17)		(469)
Share of other comprehensive income of associates and joint ventures .........................................	-		-		-		338		-		-				-		338		-		338
Exchange differences .......................................	-		-		-		-		-		-		(364)		-		(364)		(28)		(392)
Total comprehensive income for the period ....	-		-		-		8,324		1,562		(7)		(364)		-		9,515		657		10,172
Shares issued under employee share plans .........	84		1,447		-		(1,268)		-		-		-		-		263		-		263
Shares issued in lieu of dividends and amounts arising thereon4 .......................................................	63		(63)		-		1,007		-		-		-		-		1,007		-		1,007
Dividends to shareholders9 ................................	-		-		-		(4,454)		-		-		-		-		(4,454)		(398)		(4,852)
Tax credits on distributions ..............................	-		-		-		59		-		-		-		-		59				59
Own shares adjustment .....................................	-		-		-		32		-		-		-		-		32		-		32
Cost of share-based payment arrangements ......	-		-		-		541		-		-		-		-		541		-		541
Income taxes on share-based payments ............	-		-		-		(5)		-		-		-		-		(5)		-		(5)
Other movements ............................................	-		-		-		119		-		-		-		-		119		(11)		108
Acquisition and disposal of subsidiaries .............	-		-		-		-		-		-		-		-		-		376		376
Changes in ownership interests in subsidiaries that did not result in loss of control ..........................	-		-		-		43		-		-		-		-		43		(71)		(28)
	-
At 30 June 2012 ..............................................	9,081		9,841		5,851		116,266		(1,799)		(102)		(601)		27,308		165,845		7,921		173,766

Consolidated statement of changes in equity for the half-year to 30 June 2012 (continued)

	Half-year to 31 December 2012
									Other reserves
	Called up         share      capital		Share   premium4		Other       equity       instru-       ments		Retained    earnings                   5,6		Available-     for-sale fair value      reserve		Cash flow     hedging     reserve7		Foreign exchange      reserve		Merger   reserve5,8		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
At 1 July 2012 .......................................	9,081		9,841		5,851		116,266		(1,799)		(102)		(601)		27,308		165,845		7,921		173,766
Profit for the period ..............................	-		-		-		5,589		-		-		-		-		5,589		637		6,226
Other comprehensive income (net of tax) ....................................................	-		-		-		435		3,448		115		1,353		-		5,351		119		5,470
Available-for-sale investments ...............	-		-		-		-		3,448		-		-		-		3,448		29		3,477
Cash flow hedges ....................................	-		-		-		-		-		115		-		-		115		-		115
Actuarial losses on defined benefit plans .	-		-		-		240		-		-		-		-		240		34		274
Share of other comprehensive income of associates and joint ventures ...............................	-		-		-		195		-		-		-		-		195		-		195
Exchange differences .............................	-		-		-		-		-		-		1,353		-		1,353		56		1,409
Total comprehensive income for period	-		-		-		6,024		3,448		115		1,353		-		10,940		756		11,696
Shares issued under employee share plans ...........................................................	35		365		-		(69)		-		-		-		-		331		-		331
Shares issued in lieu of dividends and amounts arising thereon4 ..................................	122		(122)		-		1,422		-		-		-		-		1,422		-		1,422
Dividends to shareholders9 ......................	-		-		-		(3,588)		-		-		-		-		(3,588)		(309)		(3,897)
Tax credits on distributions ....................	-		-		-		(27)		-		-		-		-		(27)		-		(27)
Own shares adjustment ...........................	-		-		-		(30)		-		-		-		-		(30)		-		(30)
Cost of share-based payment arrangements ......................................	-		-		-		447		-		-		-		-		447		-		447
Income taxes on share based payments ..	-		-		-		47		-		-		-		-		47		-		47
Other movements ..................................	-		-		-		(145)		-		-		-		-		(145)		(9)		(154)
Acquisition and disposal of subsidiaries ...	-		-		-		-		-		-		-		-		-		(484)		(484)
Changes in ownership interests in subsidiaries that did not result in loss of control ................	-		-		-		-		-		-		-		-		-		12		12
At 31 December 2012 ............................	9,238		10,084		5,851		120,347		1,649		13		752		27,308		175,242		7,887		183,129

The accompanying notes on pages 216 to 263 form an integral part of these financial statements¹.

For footnotes, see page 215.

 

END

 

 

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