2008 Interim Report Section 1

RNS Number : 6195A

HSBC Holdings PLC

04 August 2008

 



Consolidated income statement for the half-year to 30 June 2008

		Half-year to
		30 June     2008		30 June     2007		31 December     2007
	Notes	US$m		US$m		US$m
Interest income		47,164		43,567		48,792
Interest expense		(25,986)		(25,337)		(29,227)
Net interest income		21,178		18,230		19,565
Fee income		13,381		12,488		13,849
Fee expense		(2,390)		(1,993)		(2,342)
Net fee income		10,991		10,495		11,507
Trading income excluding net interest income		639		3,351		1,107
Net interest income on trading activities		3,195		2,160		3,216
Net trading income		3,834		5,511		4,323
Net income/(expense) from financial instruments designated at fair value		(584)		874		3,209
Gains less losses from financial investments		817		999		957
Gains arising from dilution of interests in associates	19	-		1,076		16
Dividend income		88		252		72
Net earned insurance premiums		5,153		3,977		5,099
Other operating income		1,435		678		761
Total operating income		42,912		42,092		45,509
Net insurance claims incurred and movement in liabilities to policyholders		(3,437)		(3,599)		(5,009)
Net operating income before loan impairment charges and  other credit risk provisions		39,475		38,493		40,500
Loan impairment charges and other credit risk provisions		(10,058)		(6,346)		(10,896)
Net operating income		29,417		32,147		29,604
Employee compensation and benefits		(10,925)		(10,430)		(10,904)
General and administrative expenses		(7,479)		(7,022)		(8,272)
Depreciation and impairment of property, plant and equipment		(863)		(817)		(897)
Amortisation and impairment of intangible assets		(346)		(342)		(358)
Goodwill impairment	20	(527)		-		-
Total operating expenses		(20,140)		(18,611)		(20,431)
Operating profit		9,277		13,536		9,173
Share of profit in associates and joint ventures		970		623		880
Profit before tax		10,247		14,159		10,053
Tax expense	6	(1,941)		(2,645)		(1,112)
Profit for the period		8,306		11,514		8,941
Profit attributable to shareholders of the parent company	15	7,722		10,895		8,238
Profit attributable to minority interests	15	584		619		703
		US$		US$		US$
Basic earnings per ordinary share	4	0.65		0.95		0.70
Diluted earnings per ordinary share	4	0.65		0.94		0.69
Dividends per ordinary share	3	0.57		0.53		0.34

  Consolidated balance sheet at 30 June 2008

		At     30 June		At     30 June		At     31 December
		2008		2007		2007
	Notes	US$m		US$m		US$m
ASSETS
Cash and balances at central banks		13,473		16,651		21,765
Items in the course of collection from other banks		16,719		23,152		9,777
Hong Kong Government certificates of indebtedness		14,378		12,947		13,893
Trading assets	7	473,537		424,645		445,968
Financial assets designated at fair value	8	40,786		34,849		41,564
Derivatives	9	260,664		149,181		187,854
Loans and advances to banks		256,981		214,645		237,366
Loans and advances to customers		1,049,200		928,101		981,548
Financial investments	10	274,750		233,001		283,000
Interests in associates and joint ventures		11,259		8,583		10,384
Goodwill and intangible assets		40,814		38,445		39,689
Property, plant and equipment		15,713		14,982		15,694
Other assets	11	52,670		30,164		39,493
Current tax asset		1,443		675		896
Deferred tax asset		6,490		3,327		5,284
Prepayments and accrued income		17,801		17,093		20,091
Total assets		2,546,678		2,150,441		2,354,266
LIABILITIES AND EQUITY
Liabilities
Hong Kong currency notes in circulation		14,378		12,947		13,893
Deposits by banks		154,152		128,773		132,181
Customer accounts		1,161,923		980,832		1,096,140
Items in the course of transmission to other banks		15,329		20,339		8,672
Trading liabilities	12	340,611		313,193		314,580
Financial liabilities designated at fair value	13	89,758		75,966		89,939
Derivatives	9	251,357		144,284		183,393
Debt securities in issue		230,267		229,239		246,579
Retirement benefit liabilities		3,619		2,984		2,893
Other liabilities		48,435		31,937		35,013
Current tax liability		3,082		2,563		2,559
Liabilities under insurance contracts		46,851		36,929		42,606
Accruals and deferred income		17,592		16,857		21,766
Provisions		1,872		1,603		1,958
Deferred tax liability		1,924		2,000		1,859
Subordinated liabilities		31,517		23,504		24,819
Total liabilities		2,412,667		2,023,950		2,218,850
Equity
Called up share capital		6,003		5,857		5,915
Share premium account		8,097		7,834		8,134
Other equity instruments		2,134		-		-
Other reserves		27,561		31,838		33,014
Retained earnings		82,990		74,251		81,097
Total shareholders' equity		126,785		119,780		128,160
Minority interests		7,226		6,711		7,256
Total equity	15	134,011		126,491		135,416
Total equity and liabilities		2,546,678		2,150,441		2,354,266

Consolidated statement of recognised income and expense for the half-year to 30 June 2008

	Half-year to
	30 June		30 June		31 December
	2008		2007		2007
	US$m		US$m		US$m
Available-for-sale investments:
- fair value gains/(losses) taken to equity	(8,475)		1,162		(406)
- fair value gains transferred to income statement on disposal	(920)		(763)		(1,011)
-  amounts transferred to/(from) the income statement in respect of impairment	384		(20)		54
Cash flow hedges:
- fair value gains taken to equity	914		395		230
- fair value gains transferred to income statement	(1,134)		(568)		(1,318)
Share of changes in equity of associates and joint ventures	(342)		186		186
Exchange differences	3,170		2,293		3,653
Actuarial gains/(losses) on defined benefit plans	(910)		2,028		139
	(7,313)		4,713		1,527
Tax on items taken directly to equity	936		(455)		229
Total income and expense taken to equity during the period	(6,377)		4,258		1,756
Profit for the period	8,306		11,514		8,941
Total recognised income and expense for the period	1,929		15,772		10,697
Total recognised income and expense for the period attributable to:
- shareholders of the parent company	1,523		14,950		9,851
- minority interests	406		822		846
	1,929		15,772		10,697

Consolidated cash flow statement for the half-year to 30 June 2008

		Half-year to
	Notes	30 June    2008		30 June    2007		31 December    2007
		US$m		US$m		US$m
Cash flows from operating activities
Profit before tax		10,247		14,159		10,053
Adjustments for:
- non-cash items included in profit before tax	16	12,900		7,358		14,343
- change in operating assets	16	(101,131)		(65,685)		(110,853)
- change in operating liabilities	16	69,395		123,248		126,847
- elimination of exchange differences1		(11,632)		(5,871)		(12,731)
- net gain from investing activities		(1,555)		(1,149)		(1,060)
- share of profit in associates and joint ventures		(970)		(623)		(880)
- dividends received from associates		405		146		217
- contribution paid to defined benefit plans		(416)		(970)		(423)
- tax paid		(2,152)		(2,217)		(2,871)
Net cash generated from/(used in) operating activities		(24,909)		68,396		22,642
Cash flows from investing activities
Purchase of financial investments		(123,464)		(126,316)		(134,664)
Proceeds from the sale and maturity of financial investments		126,384		115,063		123,584
Purchase of property, plant and equipment		(1,112)		(965)		(1,755)
Proceeds from the sale of property, plant and equipment		2,156		1,368		1,810
Proceeds from the sale of loan portfolios		-		-		1,665
Net purchase of intangible assets		(553)		(451)		(499)
Net cash inflow/(outflow) from acquisition of and increase in  stake of subsidiaries		1,608		(323)		(300)
Net cash inflow from disposal of subsidiaries		440		-		187
Net cash outflow from acquisition of and increase in stake of  associates		(122)		(9)		(342)
Net cash inflow from the consolidation of funds		-		-		1,600
Proceeds from disposal of associates		(8)		-		69
Net cash generated from/(used in) investing activities		5,329		(11,633)		(8,645)
Cash flows from financing activities
Issue of ordinary share capital		52		116		358
Issue of other equity instruments		2,134		-		-
Net purchases and sales of own shares for market-making and  investment purposes		(202)		220		(94)
Purchases of own shares to meet share awards and share  option awards		(783)		(807)		171
On exercise of share options		14		58		46
Subordinated loan capital issued		5,582		563		5,142
Subordinated loan capital repaid		6		(87)		(602)
Dividends paid to shareholders of the parent company		(3,825)		(3,591)		(2,412)
Dividends paid to minority interests		(394)		(460)		(258)
Net cash generated from/(used in) financing activities		2,584		(3,988)		2,351
Net increase/(decrease) in cash and cash equivalents		(16,996)		52,775		16,348
Cash and cash equivalents at the beginning of the period		297,009		215,486		272,284
Exchange differences in respect of cash and cash equivalents		7,525		4,023		8,377
Cash and cash equivalents at the end of the period	16	287,538		272,284		297,009

1    Adjustment to bring changes between opening and closing balance sheet amounts to average rates. This is not done on a line-by-line basis, as details cannot be determined without unreasonable expense.

 

END

 

 

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