Annual Financial Report - 11 of 56

RNS Number : 6145S

HSBC Holdings PLC

18 March 2016

 

Reconciliation of reported and adjusted items -

geographical regions

2015 compared with 2014

		2015
		Europe		Asia		MENA		North America		Latin America		Total		UK		Hong Kong
		$m		$m		$m		$m		$m		$m		$m		$m
Revenue1
Reported31		21,058		25,303		2,565		7,657		6,592		59,800		15,493		15,616
Significant items		(656)		(1,431)		(10)		98		(36)		(2,035)		(595)		(1,383)
- disposal costs of Brazilian operations		-		-		-		-		18		18		-		-
- debit valuation adjustment ('DVA') on derivative contracts		(95)		(58)		(1)		(21)		(55)		(230)		(78)		(13)
- fair value movements on non-qualifying hedges32		200		2		-		124		1		327		204		6
- gain on the partial sale of shareholding in Industrial Bank		-		(1,372)		-		-		-		(1,372)		-		(1,372)
- loss on sale of several tranches of real estate secured accounts in the US		-		-		-		214		-		214		-		-
- own credit spread2		(771)		(3)		(9)		(219)		-		(1,002)		(731)		(4)
- provisions arising from the ongoing review of compliance with the Consumer Credit Act in the UK		10		-		-		-		-		10		10		-
Adjusted31		20,402		23,872		2,555		7,755		6,556		57,765		14,898		14,233
Loan impairment charges and other credit risk provisions ('LIC's)
Reported		(690)		(693)		(299)		(544)		(1,495)		(3,721)		(248)		(155)
Adjusted		(690)		(693)		(299)		(544)		(1,495)		(3,721)		(248)		(155)
Operating expenses
Reported31		(19,733)		(10,889)		(1,234)		(6,501)		(4,786)		(39,768)		(15,555)		(5,686)
Significant items		2,405		130		15		851		185		3,586		2,151		49
- disposal costs of Brazilian operations		-		-		-		-		110		110		-		-
- costs-to-achieve		600		122		14		103		69		908		536		43
- costs to establish UK ring-fenced bank		89		-		-		-		-		89		89		-
- regulatory provisions in GPB		172		-		-		-		-		172		-		-
- restructuring and other related costs		68		8		1		34		6		117		50		6
- settlements and provisions in connection with legal matters		935		-		-		714		-		1,649		935		-
- UK customer redress programmes		541		-		-		-		-		541		541		-
Adjusted31		(17,328)		(10,759)		(1,219)		(5,650)		(4,601)		(36,182)		(13,404)		(5,637)
Share of profit in associates and joint ventures
Reported		8		2,042		505		2		(1)		2,556		10		31
Adjusted		8		2,042		505		2		(1)		2,556		10		31
Profit/(loss) before tax
Reported		643		15,763		1,537		614		310		18,867		(300)		9,806
Significant items		1,749		(1,301)		5		949		149		1,551		1,556		(1,334)
- revenue		(656)		(1,431)		(10)		98		(36)		(2,035)		(595)		(1,383)
- operating expenses		2,405		130		15		851		185		3,586		2,151		49
Adjusted		2,392		14,462		1,542		1,563		459		20,418		1,256		8,472

Reconciliation of reported and adjusted items (continued)

		2014
		Europe		Asia		MENA		North America		Latin America		Total		UK		Hong Kong
		$m		$m		$m		$m		$m		$m		$m		$m
Revenue1
Reported31		21,571		23,677		2,548		8,152		8,272		61,248		15,727		13,844
Currency translation31		(2,013)		(680)		(50)		(252)		(1,871)		(4,775)		(1,058)		4
Significant items		708		(48)		(3)		116		(19)		754		353		(119)
- DVA on derivative contracts		234		69		5		16		8		332		203		26
- fair value movements on non-qualifying hedges32		235		4		-		302		-		541		(8)		11
- gain on sale of several tranches of real estate secured accounts in the US		-		-		-		(168)		-		(168)		-		-
- gain on sale of shareholding in Bank of Shanghai		-		(428)		-		-		-		(428)		-		(428)
- impairment of our investment in Industrial Bank		-		271		-		-		-		271		-		271
- own credit spread4		(393)		4		6		(34)		-		(417)		(474)		1
- provisions arising from the ongoing review of compliance with the Consumer Credit Act in the UK		632		-		-		-		-		632		632		-
- (gain)/loss and trading results from disposals and changes in ownership levels		-		32		(14)		-		(27)		(9)		-		-
Adjusted31		20,266		22,949		2,495		8,016		6,382		57,227		15,022		13,729
LICs
Reported		(764)		(647)		6		(322)		(2,124)		(3,851)		(214)		(320)
Currency translation		104		26		-		13		540		683		4		-
Significant items		-		-		(2)		-		2		-		-		-
- trading results from disposals and changes in ownership levels		-		-		(2)		-		2		-		-		-
Adjusted		(660)		(621)		4		(309)		(1,582)		(3,168)		(210)		(320)
Operating expenses
Reported31		(20,217)		(10,427)		(1,216)		(6,429)		(5,932)		(41,249)		(15,576)		(5,424)
Currency translation31		1,499		352		16		129		1,373		3,278		809		(1)
Significant items		2,601		58		33		578		125		3,395		2,553		56
- charge in relation to the settlement agreement with the Federal Housing Finance Authority		-		-		-		550		-		550		-		-
- regulatory provisions in GPB		16		49		-		-		-		65		-		49
- restructuring and other related costs		123		9		2		28		116		278		91		7
- settlements and provisions in connection with legal matters		1,187		-		-		-		-		1,187		1,187		-
- UK customer redress programmes		1,275		-		-		-		-		1,275		1,275		-
- trading results from disposals and changes in ownership levels		-		-		31		-		9		40		-		-
Adjusted31		(16,117)		(10,017)		(1,167)		(5,722)		(4,434)		(34,576)		(12,214)		(5,369)
Share of profit in associates and joint ventures
Reported		6		2,022		488		16		-		2,532		7		42
Currency translation		1		(38)		-		(2)		-		(39)		(1)		(1)
Adjusted		7		1,984		488		14		-		2,493		6		41
Profit/(loss) before tax
Reported		596		14,625		1,826		1,417		216		18,680		(56)		8,142
Currency translation		(409)		(340)		(34)		(112)		42		(853)		(246)		2
Significant items		3,309		10		28		694		108		4,149		2,906		(63)
- revenue		708		(48)		(3)		116		(19)		754		353		(119)
- LICs		-		-		(2)		-		2		-		-		-
- operating expenses		2,601		58		33		578		125		3,395		2,553		56
Adjusted		3,496		14,295		1,820		1,999		366		21,976		2,604		8,081

For footnotes, see page 99.

 

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