2008 Interim Report Section 1

RNS Number : 6026A

HSBC Holdings PLC

04 August 2008

 



Headquartered in London, HSBC is one of the largest banking and financial services organisations in the world. Its international network comprises some 11,000 properties in 85 countries and territories in Europe; Hong Kong; Rest of Asia-Pacific, including the Middle East and 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 200,000 shareholders in over 100 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 2008 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 207 to 236, 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'). The consolidated financial statements of HSBC at 31 December 2007 were prepared in accordance with International Financial Reporting Standards ('IFRSs') as issued by the IASB, and as endorsed by the EU. EUߛendorsed IFRSs may differ from IFRSs as published by the IASB if, at any point in time, new or amended IFRSs have not been endorsed by the EU. At 30 June 2008, there were no unendorsed standards effective for the period ended 30 June 2008 affecting these 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 4) and adjusted for the effects of acquisitions and disposals.

Financial Highlights ....................................................................................................................................................
Group Chairman’s Statement ....................................................................................................................................
Group Chief Executive’s Review ................................................................................................................................
Interim Management Report ......................................................................................................................................
Business Review
Principal activities .....................................................	11		Customer groups and global businesses ........................
Strategic direction ......................................................	11		Geographical regions ..................................................
Reconciliation of reported and underlying profit ........	11
Financial Review
Income statement ......................................................	90		Loan impairment charges and other credit risk provisions ...................................................................................
Net interest income ....................................................	92		Operating expenses ....................................................
Net fee income ...........................................................	94		Share of profit in associates and joint ventures ...........
Net trading income .....................................................	96		Asset deployment .......................................................
Net income/(expense) from financial instruments			Trading assets and financial investments ....................
designated at fair value ............................................	97		Funds under management ............................................
Gains less losses from financial investments ...............	99		Assets held under custody and in administration ..........
Net earned insurance premiums ..................................	100		Review of transactions with related parties .................
Other operating income .............................................	101		Economic profit .........................................................
Net insurance claims ...................................................	102		Ratios of earnings to combined fixed charges ..............
Impact of Market Turmoil
Background and disclosure policy ................................	112		Nature and extent of HSBC’s exposures ......................
Overview of exposure .................................................	112		Fair value of financial instruments ..............................
Business model ...........................................................	115		Special purpose entities ..............................................
Risk management .......................................................	115		Other off-balance sheet arrangements
Accounting policies ....................................................	115		and commitments ...................................................
Risk
Risk management .......................................................	152		Operational risk .........................................................
Credit risk ..................................................................	152		Reputational risk ........................................................
Liquidity and funding ..................................................	179		Risk management of insurance operations ..................
Market risk ................................................................	183		Capital management and allocation ............................
Board of Directors and Senior Management ...........................................................................................................
Financial Statements ...................................................................................................................................................
Notes on the Financial Statements1...........................................................................................................................
Responsibility Statement ............................................................................................................................................
Review Report of the Auditors ....................................................................................................................................
Additional Information .................................................................................................................................................
Directors’ interests .....................................................	239		Final results and fourth interim dividend for 2008 ......
Employee share plans .................................................	242		Corporate governance ................................................
Notifiable interests in share capital .............................	249		Telephone and online share-dealing service ................
Dealings in HSBC Holdings shares ...............................	249		Stock codes ................................................................
Second interim dividend for 2008 ...............................	249		Copies of the Interim Report 2008 .............................
Proposed third interim dividend for 2008 ...................	250
Glossary of Terms and Index ......................................................................................................................................

1    Detailed contents are provided on the referenced page.

 

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