Interim Results - Part 1

HSBC HOLDINGS PLC 2 August 1999 PART ONE HSBC HOLDINGS PLC 1999 INTERIM RESULTS - HIGHLIGHTS * Operating profit before provisions up 5 per cent to US$4,995 million (US$4,764 million in the first half of 1998). * Group pre-tax profit up 10 per cent to US$4,068 million (US$3,686 million in the first half of 1998). * Attributable profit up 12 per cent to US$2,694 million (US$2,402 million in the first half of 1998). * Return on average shareholders' funds of 18.6 per cent. * Assets up 3 per cent to US$497 billion (US$483 billion at 31 December 1998). * Basic earnings per share up 10 per cent to US$0.33. * Headline earnings per share up 12 per cent to US$0.33. First interim dividend of US$0.133 per share; an increase of 8 per cent over the 1998 first interim dividend. Total capital ratio of 15.3 per cent; tier 1 capital ratio of 11.4 per cent. Note All per share figures reflect the 3-for-1 share capital reorganisation that took place on 2 July 1999. HSBC Holdings reports pre-tax profit of US$4,068 million HSBC Holdings plc made a profit before tax of US$4,068 million in the first six months of 1999, up US$382 million, or 10 per cent, over the same period in 1998. Profit attributable to shareholders was US$2,694 million, an increase of 12 per cent. The Directors have declared a first interim dividend for 1999 of US$0.133 per ordinary share (1998 first interim dividend of US$0.123 per ordinary share), an increase of 8 per cent. The dividend will be payable on 7 October 1999 in cash, in US dollars, sterling or Hong Kong dollars, or a combination of these currencies, at the exchange rates on 27 September 1999, with a scrip dividend alternative. The dividend payable to holders of American Depositary Shares (ADSs), each of which represents five ordinary shares, will be paid in cash in US dollars on 7 October 1999 or invested in additional ADSs for participants in the dividend reinvestment plan operated by HSBC Bank USA as depositary. Net interest income of US$5,913 million was US$262 million, or 5 per cent, higher than the same period in 1998. Other operating income rose by US$179 million, or 4 per cent, to US$4,497 million. The Group's cost:income ratio improved marginally to 52.0 per cent from 52.2 per cent in the same period in 1998. The charge for bad and doubtful debts was US$1,082 million, which was US$64 million lower than in the same period in 1998 and US$409 million lower than the second half of 1998. Provisioning requirements in respect of exposure to customers in Indonesia and Thailand were significantly lower. The credit environment in Malaysia remained weak and elsewhere deterioration was evident in respect of certain credits related to mainland China. In view of the continuing economic uncertainty, the special general provision of US$290 million in respect of Asian risk raised in 1997 remained intact. Gains on disposal of investments of US$155 million were slightly higher than in the same period in 1998. The total capital ratio and tier 1 capital ratio for the Group strengthened to 15.3 per cent and 11.4 per cent, respectively, at 30 June 1999. Excluding the impact of the US$3 billion equity issue raised as part of the financing for the proposed Republic New York Corporation and Safra Republic Holdings S.A. acquisitions, the total capital ratio and tier 1 capital ratio stood at 14.3 per cent and 10.4 per cent respectively. The Group's total assets at 30 June 1999 were US$497 billion, an increase of US$13 billion, or 3 per cent, since year-end 1998. Geographic distribution of results Half-year Half-year Half-year to 30JUN99 to 30JUN98 to 31DEC98 Figures in US$m Profit before tax % % % Europe 1,719 42.3 1,671 45.3 1,213 42.0 Hong Kong 1,391 34.2 1,285 34.9 1,142 39.6 Rest of Asia-Pacific 180 4.4 73 2.0 (34) (1.2) North America 530 13.0 515 14.0 472 16.4 Latin America 248 6.1 142 3.8 92 3.2 Group profit before tax 4,068 100.0 3,686 100.0 2,885 100.0 Tax on profit on ordinary activities (1,103) (1,032) (757) Profit on ordinary activities after tax 2,965 2,654 2,128 Minority interests (271) (252) (212) Profit attributable 2,694 2,402 1,916 Comment by Sir John Bond, Group Chairman 'Our results for the first half of 1999 reflect the continuing strength of the Western economies and a degree of recovery in some emerging markets. The results also indicate solid progress in implementing our strategy of 'Managing for Value' which we described in our 1998 annual report. 'For the first time in our history, operating profits before provisions approached US$5 billion for a six month period. The charge for bad and doubtful debts was lower than in either half of 1998, resulting in profit attributable to shareholders of US$2,694 million, an increase of 12 per cent over the first half of 1998 and of 41 per cent over the second half. The Group's return on equity in the first half of 1999 improved to 18.6 per cent and the Board has declared a dividend of US$0.133 per share, an increase of eight per cent over the comparable dividend paid at this stage in 1998. 'Our businesses in Europe and North America enjoyed stable operating conditions and the credit environment remained good. Our core business in the UK continued to perform strongly. Together, these regions accounted for 55 per cent of our pre-tax profit. In the Hong Kong SAR, and elsewhere in the Asia-Pacific region, we benefited from lower interest rates and reduced market volatility which encouraged progress in restructuring in the corporate sector. In Latin America, and particularly in Brazil, exceptionally high and volatile interest rates had a favourable effect on our highly liquid balance sheet. 'Our credit experience in the first half of 1999 was better than in the corresponding period of 1998 which was marked by the need to make significant provisions against exposures to borrowers in Indonesia and Thailand. As we said when we announced our 1998 results, our long- standing policy of making provisions promptly and conservatively made a recurrence of such a high level of provisions unlikely. This proved to be the case and our operations in those countries returned to profit in the first half of 1999. 'In Malaysia, the deterioration in credit quality experienced in the second half of 1998 continued; provisions for bad debts were at similarly unsatisfactory levels. During the first half of 1999 we began to restructure our operations in Malaysia which will result in a reduction in headcount of about 1,000 by the end of the year. Together with a greater focus on personal business this will put us in a position to benefit from the expected recovery in Malaysia's economy. 'In Hong Kong declining interest rates and some improvement in asset prices suggests that the economic environment is beginning to stabilise. However, Hong Kong's recovery, and therefore its credit environment, was still affected by weak domestic consumption due to high real interest rates and subdued exports. Personal lending, including mortgages, which accounted for over half of our lending in Hong Kong remained relatively robust in terms of asset quality. Our exposures to certain mainland China related companies showed continued weakness and approximately 30 per cent of our net bad debt charge in Hong Kong and the Rest of Asia-Pacific reflected this deterioration. 'A key objective of our strategy is to increase fee-based services to our customers and in the first six months of the year we made good progress in a number of areas. In the UK, for example, our life, pensions and investment business grew revenues by 18 per cent. In Hong Kong, our life and investment business achieved an increase of more than 40 per cent in revenues compared with the first half of 1998, while in Brazil funds under management grew by some 60 per cent from the beginning of the year. 'Our trading and capital markets businesses continued to perform well with dealing profits improving to US$814 million representing 8 per cent of our operating revenues. Investment banking had a strong first half with pre-tax profits growing to US$316 million. The quality of earnings improved again and our strategy of continuing investment in this business and strengthening its links with HSBC's commercial banks is proving successful. 'There have been a number of significant developments in the first half of 1999. In May, we announced our intention to acquire Republic New York Corporation and Safra Republic Holdings S.A. for a maximum consideration of approximately US$10.3 billion. These acquisitions are still subject to certain shareholder and regulatory approvals but we expect them to be completed in the fourth quarter of 1999. They will increase our US banking business significantly and virtually double the size of our international private banking business. As such they are entirely consistent with our strategic plan. 'We have continued to hold discussions with the Government of South Korea on the possible acquisition of Seoul Bank. These discussions have proved complex and as yet their final outcome is unknown. In April we announced our agreement with the Government of Malta to acquire a controlling interest in Mid-Med Bank. That transaction was completed in June. 'The reorganisation of the Group's share capital as part of the preparations for a listing on the New York Stock Exchange was completed successfully on 2 July. Our American Depositary Shares began trading in New York on 16 July and, with our listings in London and Hong Kong, our shares can now be traded for almost 18 hours a day. 'During the period we also augmented the Group's share capital, raising US$3 billion on 10 May in a placement of new shares as part of the financing of the proposed acquisition of Republic New York Corporation and Safra Republic Holdings S.A. This transaction, the largest ever single day equity offering, was placed within nine hours, predominantly in London and Hong Kong. 'The Group's capital position was strengthened significantly with the tier 1 ratio increasing to 11.4 per cent at 30 June. Excluding the impact of the US$3 billion equity raised, the tier 1 ratio improved to 10.4 per cent at 30 June 1999 from 9.7 per cent at 31 December 1998, reflecting a more liquid balance sheet and further reductions in capital requirements for our trading books. 'The outlook for the rest of 1999 still remains dependent on the continuing strength of the US economy and the revival of demand in our major markets in Asia. Since the economic downturn began in Asia in the second half of 1997, we have maintained that it should be seen in the context of three decades of remarkable economic progress and that, after a period of adjustment, the region should resume its economic growth. 'In much of the region loan demand remains subdued and there is a continued build-up of liquidity. Nevertheless, there is also clear evidence of corporate restructuring and of a determination by governments to address the issues which led to the recession. It is important that this process continues and that Asian countries create a sound framework for the next phase of their growth. 'Although the first half of 1999 saw some important developments for our Group in the USA and Europe, HSBC is determined to build on its major presence in Asia. With our liquidity and capital strength we are well placed to benefit from increasing business volumes wherever we operate and to take advantage of further opportunities which support our strategy of profitable growth.' HSBC Holdings plc Contents _________________________________________________________________________ The financial information in this news release is based on the unaudited consolidated accounts of HSBC Holdings plc and its subsidiaries for the six months ended 30 June 1999. Highlights of Results and Chairman's Comment Contents Financial Overview Consolidated Profit and Loss Account Consolidated Balance Sheet Other Primary Financial Statements Financial Review Net interest income Net interest margin Other operating income Operating expenses Bad and doubtful debts Customer loans and advances and provisions Country risk and cross-border exposure Asset disposition Capital resources Financial Review by Geographic Segment HSBC European Operations HSBC Hong Kong Operations HSBC Rest of Asia-Pacific Operations HSBC North American Operations HSBC Latin American Operations HSBC Investment Banking Additional Information Accounting policies Dividend Earnings and dividend per share Provisions against advances Gains on disposal of investments Taxation Liabilities Financial instruments, contingent liabilities and commitments Off-balance-sheet risk-weighted and replacement cost amounts Market risk Segmental analysis Year 2000 readiness Attributable profit by subsidiary and line of business Differences between UK GAAP and US GAAP Other information Within this document the Hong Kong Special Administrative Region of The People's Republic of China has been referred to as Hong Kong. HSBC Holdings plc Financial Overview _________________________________________________________________________ Half-year to Half-year to 30JUN98 31DEC98 30JUN99 US$m US$m US$m £m HK$m For the half-year 3,686 2,885 Profit before tax 4,068 2,510 31,531 2,402 1,916 Profit attributable 2,694 1,662 20,881 996 1,499 Dividends 1,118 690 8,665 At period-end 27,540 27,402 Shareholders' funds 31,642 20,093 245,510 41,523 41,092 Capital resources 44,990 28,569 349,077 344,297 343,252 Customer accounts and 351,559 223,240 2,727,746 deposits by banks 484,367 483,128 Total assets 496,520 315,290 3,852,498 297,598 301,950 Risk-weighted assets 294,016 186,700 2,281,270 Per share* US$ US$ US$ £ HK$ 0.30 0.24 Basic and diluted earnings 0.33 0.20 2.56 0.29 0.24 Headline earnings 0.33 0.20 2.56 0.123 0.185 Dividend 0.133 **0.084 **1.03 3.41 3.38 Net asset value 3.76 2.39 29.20 Number of ordinary shares in issue* 8,076m 8,097m US$0.50 8,407m % % Ratios (annualised) % Return on average 17.5 13.6 shareholders' funds 18.6 Post-tax return on 1.11 0.86 average assets 1.22 Post-tax return on average risk-weighted 1.81 1.40 assets 2.02 Capital ratios 14.0 13.6 - total capital 15.3 9.8 9.7 - tier 1 capital 11.4 52.2 57.5 Cost:income ratio 52.0 * 1998 comparatives have been restated to reflect the share capital reorganisation as discussed on page 47. ** The first interim dividend of US$0.133 per share is translated at the closing rate on 30 June 1999. Where required, the dividend will be converted into sterling or Hong Kong dollars at the exchange rates on 27 September 1999. HSBC Holdings plc Consolidated Profit and Loss Account __________________________________________________________________________ Half-year to Half-year to 30 June 1999 30JUN98 31DEC98 US$m US$m US$m £m HK$m 16,425 17,195 Interest receivable 14,460 8,921 112,080 (10,774) (11,299) Interest payable (8,547) (5,273) (66,248) 5,651 5,896 Net interest income 5,913 3,648 45,832 4,318 4,190 Other operating income 4,497 2,775 34,856 9,969 10,086 Operating income 10,410 6,423 80,688 (5,205) (5,799) Operating expenses (5,415) (3,341) (41,972) Operating profit before 4,764 4,287 provisions 4,995 3,082 38,716 Provisions for bad and (1,146) (1,491) doubtful debts (1,082) (668) (8,386) Provisions for contingent liabilities and (184) 40 commitments (52) (32) (403) Amounts written off fixed (5) (80) asset investments (10) (6) (78) 3,429 2,756 Operating profit 3,851 2,376 29,849 Share of operating profit in associated 76 60 undertakings 60 37 465 Gains/(losses) on disposal of 147 75 - investments 155 96 1,201 34 (6) - tangible fixed assets 2 1 16 Profit on ordinary 3,686 2,885 activities before tax 4,068 2,510 31,531 Tax on profit on (1,032) (757) ordinary activities (1,103) (681) (8,549) Profit on ordinary 2,654 2,128 activities after tax 2,965 1,829 22,982 Minority interests: (217) (176) - equity (234) (144) (1,814) (35) (36) - non-equity (37) (23) (287) Profit attributable to 2,402 1,916 shareholders 2,694 1,662 20,881 (996) (1,499) Dividends (1,118) (690) (8,665) Retained profit for the 1,406 417 period 1,576 972 12,216 HSBC Holdings plc Consolidated Balance Sheet __________________________________________________________________________ At At At 30JUN99 30JUN98 31DEC98 US$m US$m US$m £m HK$m ASSETS Cash and balances at 2,329 3,048 central banks 2,591 1,645 20,104 Items in the course of collection from 8,407 5,911 other banks 6,776 4,303 52,575 Treasury bills and other 15,773 21,980 eligible bills 23,683 15,039 183,756 Hong Kong SAR Government certificates of 7,524 7,408 indebtedness 7,277 4,621 56,462 Loans and advances to 98,736 85,315 banks 96,136 61,046 745,919 Loans and advances to 241,100 235,295 customers 236,125 149,939 1,832,094 59,181 69,185 Debt securities 75,066 47,667 582,437 4,353 4,221 Equity shares 4,420 2,807 34,295 Interests in associated 921 889 undertakings 875 556 6,789 Other participating 292 309 interests 297 189 2,304 73 146 Intangible fixed assets 299 190 2,320 11,695 12,108 Tangible fixed assets 11,640 7,391 90,315 29,612 32,352 Other assets 26,564 16,867 206,110 Prepayments and accrued 4,371 4,961 income 4,771 3,030 37,018 484,367 483,128 Total assets 496,520 315,290 3,852,498 LIABILITIES Hong Kong SAR currency 7,524 7,408 notes in circulation 7,277 4,621 56,462 41,288 34,342 Deposits by banks 35,920 22,809 278,703 303,009 308,910 Customer accounts 315,639 200,431 2,449,043 Items in the course of transmission to 6,286 4,206 other banks 5,090 3,232 39,493 30,268 29,190 Debt securities in issue 29,084 18,469 225,663 46,469 48,662 Other liabilities 48,920 31,063 379,572 Accruals and deferred 4,282 4,805 income 4,696 2,982 36,436 Provisions for liabilities and charges 1,018 1,268 - deferred taxation 1,264 803 9,807 2,667 2,906 - other provisions 2,691 1,708 20,879 Subordinated liabilities 3,250 3,247 - undated loan capital 3,223 2,046 25,007 7,318 7,597 - dated loan capital 7,718 4,901 59,884 Minority interests 2,598 2,315 - equity 2,484 1,578 19,273 850 870 - non-equity 872 554 6,766 3,439 3,443 Called up share capital 3,514 2,231 27,265 24,101 23,959 Reserves 28,128 17,862 218,245 27,540 27,402 Shareholders' funds 31,642 20,093 245,510 484,367 483,128 Total liabilities 496,520 315,290 3,852,498 HSBC Holdings plc Other Primary Financial Statements __________________________________________________________________________ Statement of Total Consolidated Recognised Gains and Losses for the half-year to 30JUN98 31DEC98 30JUN99 US$m US$m US$m Profit for the period attributable to 2,402 1,916 shareholders 2,694 - (38) Impairment of land and buildings - Unrealised deficit on revaluation of investment properties: (122) (68) - subsidiaries - (32) (24) - associates - Unrealised deficit on revaluation of land and buildings (excluding investment (1,188) (599) properties) - (92) 61 Exchange and other movements (764) Total recognised gains and losses for the 968 1,248 period 1,930 Reconciliation of Movements in Consolidated Shareholders' Funds for the half-year to 30JUN98 31DEC98 30JUN99 US$m US$m US$m Profit for the period attributable to 2,402 1,916 shareholders 2,694 (996) (1,499) Dividends (1,118) 1,406 417 1,576 Other recognised gains and losses (1,434) (668) relating to the period (764) New share capital subscribed - gross - - proceeds 2,998 Less: costs of issue (30) 2,968 11 6 Shares issued under options 10 Amounts arising on shares issued in 477 107 lieu of dividends 450 Net addition to/(reduction in) 460 (138) shareholders' funds 4,240 Shareholders' funds at beginning of 27,080 27,540 period 27,402 27,540 27,402 Shareholders' funds at end of period 31,642 HSBC Holdings plc Financial Review _______________________________________________________________________ Net interest income Half-year Half-year Half-year Figures in US$m to 30JUN99 to 30JUN98 to 31DEC98 % % % Europe 2,080 35.2 1,970 34.9 2,037 34.5 Hong Kong 1,815 30.7 1,732 30.6 1,740 29.5 Rest of Asia-Pacific 619 10.5 655 11.6 600 10.2 North America 817 13.8 787 13.9 831 14.1 Latin America 582 9.8 507 9.0 688 11.7 Net interest income 5,913 100.0 5,651 100.0 5,896 100.0 Average interest- earning assets (AIEA) 413,778 398,209 413,563 Net interest spread 2.35% 2.15% 2.33% Net interest margin 2.88% 2.86% 2.83% The improvement of 4.6 per cent in net interest income was achieved despite the continuing economic slowdown in Asia and higher levels of suspended interest compared with the first half of 1998. Income levels benefited particularly from lower funding rates and the widening of the gap between best lending rates and interbank rates in Hong Kong, lower cost of funding sterling money market books in the UK as interest rates fell and from exceptional margins achieved in Brazil due to high interest rates during a period of economic instability. Average interest-earning assets increased by US$15.6 billion, or 3.9 per cent, compared with the first half of 1998. The growth arose mainly from the reinvestment of higher customer deposit flows with good growth achieved in UK Banking and in Hong Kong. Credit demand in all regions, particularly Asia, was subdued. The Group's net interest margin at 2.88 per cent was in line with 1998. The decline in interest rates resulted in a reduced contribution from net free funds which largely offset the benefit of higher spreads. Spreads were higher as a result of the fall in UK interest rates, a more stable interest rate environment and a better funding mix in Hong Kong, and an increased contribution from the high margin business in Brazil as a result of the high interest rate environment. These benefits were partially offset by the impact of competitive pressure on deposit pricing in the UK, a mix impact as the balance sheet became more liquid and higher levels of suspended interest on non-performing loans. Net interest margin of the principal commercial banking subsidiaries by region Half-year Half-year Half-year to 30JUN99 to 30JUN98 to 31DEC98 Europe Midland Bank (UK domestic) - margin (%) 2.73% 2.61% 2.48% - AIEA (£m) 80,654 78,900 83,558 Hong Kong The Hongkong and Shanghai Banking Corporation excluding Hang Seng Bank - margin (%) 2.40% 2.55% 2.29% - AIEA (HK$m) 660,899 597,883 635,331 Hang Seng Bank - margin (%) 2.96% 3.01% 2.91% - AIEA (HK$m) 401,384 373,517 394,165 Rest of Asia-Pacific The Hongkong and Shanghai Banking Corporation - margin (%) 2.11% 2.23% 2.01% - AIEA (HK$m) 275,175 278,834 271,593 HSBC Bank Malaysia Berhad - margin (%) 2.85% 4.18% 3.15% - AIEA (Ringgit m) 23,586 19,982 21,081 HSBC Bank Middle East - margin (%) 4.05% 4.06% 4.03% - AIEA (US$m) 7,164 6,785 7,059 North America HSBC USA Inc - margin (%) 3.94% 3.91% 3.67% - AIEA (US$m) 31,710 30,109 31,577 HSBC Bank Canada* - annualised margin (%) 2.39% 2.46% 2.31% - AIEA (C$m) 23,215 22,322 23,183 Latin America HSBC Bank Brasil S.A. - Banco Multiplo - margin (%) 14.90% 8.74% 12.04% - AIEA (Brazilian Reais m) 10,860 10,781 11,113 * Figures for HSBC Bank Canada for the second half of 1998 are based on the eight month period to 31 December 1998. Other operating income Half-year to Half-year to Half-year to Figures in US$m 30JUN99 30JUN98 31DEC98 By geographic segment: % % % Europe 2,481 54.0 2,182 49.5 2,187 50.6 Hong Kong 750 16.3 733 16.6 840 19.4 Rest of Asia-Pacific 482 10.5 577 13.1 437 10.1 North America 490 10.7 423 9.6 448 10.3 Latin America 390 8.5 495 11.2 417 9.6 4,593 100.0 4,410 100.0 4,329 100.0 Intra-Group elimination (96) (92) (139) Group total 4,497 4,318 4,190 By income category: Dividend income 73 82 66 Fees and commissions (net) 2,887 2,866 2,870 Dealing profits - foreign exchange 452 528 425 - interest rate derivatives 60 (9) 76 - debt securities 170 40 76 - equities and other trading 132 98 (85) 814 657 492 Other 723 713 762 Total other operating income 4,497 4,318 4,190 The results demonstrated again the resilience of the Group's fees and commissions, foreign exchange earnings and insurance and leasing income. Overall, the Group's non-funds income remained stable despite the continuing weak economic environment in Asia and the impact of the devaluation of the Brazilian Real. Progress was made in the strategic development of fee-based services to the Group's customers with strong growth in the UK achieved from wealth management and personal banking products. Foreign exchange income held up well despite significant falls in volumes following the introduction of the euro and reduced Asian foreign exchange volatility. Tightening credit spreads contributed to an improved performance in interest rate products and the Group's securities and capital markets operations in the US benefited from restructuring measures implemented during 1998. Equities and other trading activities returned to a net profit as those activities causing losses in the second half of 1998 were curtailed. Operating expenses Half-year Half-year Half-year to 30 June to 30 June to 31 December Figures in US$m 1999 1998 1998 By geographic segment: % % % Europe 2,663 48.4 2,413 45.6 2,784 46.9 Hong Kong 894 16.2 891 16.8 960 16.2 Rest of Asia-Pacific 548 9.9 523 9.9 529 8.9 North America 726 13.2 673 12.7 751 12.6 Latin America 680 12.3 797 15.0 914 15.4 5,511 100.0 5,297 100.0 5,938 100.0 Intra-Group elimination (96) (92) (139) Group total 5,415 5,205 5,799 By expense category: Staff costs 3,266 3,100 3,221 Premises and equipment (excluding depreciation) 606 619 655 - vacant space provisions arising from the move to Canary Wharf - - 180 Other administrative expenses 1,072 1,069 1,246 Administrative expenses 4,944 4,788 5,302 Depreciation and amortisation 471 417 497 Total operating expenses 5,415 5,205 5,799 Cost:income ratio 52.0% 52.2% 57.5% In markets where revenue growth was subdued considerable focus has been directed to controlling our cost base. In particular, operating costs continued to be tightly controlled in Hong Kong and the rest of Asia as cost structures were adjusted to the changed economic environment. The operations in Hong Kong operated under a pay freeze and we have introduced a Voluntary Separation Scheme in Malaysia, at a cost of US$16 million, which will result in headcount reductions of 1,000 by the year-end. Elsewhere higher business volumes and new business initiatives contributed to an increase in costs in UK Banking. New branches were opened in Taiwan and India, our former associates in Argentina, which offer pension management and life assurance services, became subsidiaries and a controlling interest in Mid-Med Bank in Malta was acquired during the period. The Group's cost:income ratio improved slightly to 52.0 per cent with each geographic region showing an improved cost:income ratio compared with the second half of 1998. Bad and doubtful debts Half-year Half-year Half-year Figures in US$m to 30JUN99 to 30JUN98 to 31DEC98 By geographic segment: % % % Europe 213 19.7 107 9.3 262 17.6 Hong Kong 319 29.5 310 27.1 437 29.3 Rest of Asia-Pacific 423 39.1 605 52.8 614 41.2 North America 63 5.8 49 4.3 60 4.0 Latin America 64 5.9 75 6.5 118 7.9 Group total 1,082 100.0 1,146 100.0 1,491 100.0 By category: Loans and advances to customers - specific charge: new provisions 1,493 1,376 1,897 releases and recoveries (389) (289) (366) 1,104 1,087 1,531 - net general (release) /charge (20) 60 (50) Customer bad and doubtful debt charge 1,084 1,147 1,481 Loans and advances to banks - net specific (release) /charge (2) (1) 10 Total bad and doubtful debt charge 1,082 1,146 1,491 New and additional specific provisions against exposures to customer advances were 8.5 per cent higher than in the first half of 1998 but 21.3 per cent lower than in the second half. Releases and recoveries improved against both halves of 1998 and there was a modest reduction in general provision requirements. MORE TO FOLLOW IR AAOAKKSKWRAR

Companies

HSBC Holdings (HSBA)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today