Annual Financial Report - 7 of 56

RNS Number : 6120S

HSBC Holdings PLC

18 March 2016

 

Reconciliation of reported and adjusted items -

global businesses

2015 compared with 2014

		2015
		RBWM		CMB		GB&M		GPB		Other		Total
		$m		$m		$m		$m		$m		$m
Revenue1
Reported31		23,516		14,870		18,233		2,172		7,604		59,800
Significant items		326		17		(199)		(31)		(2,148)		(2,035)
- disposal costs of Brazilian operations		-		-		-		-		18		18
- DVA on derivative contracts		-		-		(230)		-		-		(230)
- fair value movements on non-qualifying hedges32		90		(1)		31		(1)		208		327
- gain on the partial sale of shareholding in Industrial Bank		-		-		-		-		(1,372)		(1,372)
- loss on sale of several tranches of real estate secured accounts in the US		214		-		-		-		-		214
- own credit spread2		-		-		-		-		(1,002)		(1,002)
- provisions/(releases) arising from the ongoing review of compliance with the Consumer Credit Act in the UK		22		18		-		(30)		-		10
Adjusted31		23,842		14,887		18,034		2,141		5,456		57,765
LICs
Reported		(1,939)		(1,770)		-		(12)		-		(3,721)
Adjusted		(1,939)		(1,770)		-		(12)		-		(3,721)
Operating expenses
Reported31		(17,020)		(6,744)		(10,834)		(1,832)		(9,933)		(39,768)
Significant items		1,537		202		1,035		206		606		3,586
- disposal costs of Brazilian operations		66		16		14		1		13		110
- costs-to-achieve		198		163		69		16		462		908
- costs to establish UK ring-fenced bank		-		-		-		-		89		89
- regulatory provisions in GPB		-		-		-		171		1		172
- restructuring and other related costs		32		5		22		18		40		117
- settlements and provisions in connection with legal matters		700		-		949		-		-		1,649
- UK customer redress programmes		541		18		(19)		-		1		541
Adjusted31		(15,483)		(6,542)		(9,799)		(1,626)		(9,327)		(36,182)
Share of profit in associates and joint ventures
Reported		410		1,617		511		16		2		2,556
Adjusted		410		1,617		511		16		2		2,556
Profit/(loss) before tax
Reported		4,967		7,973		7,910		344		(2,327)		18,867
Significant items		1,863		219		836		175		(1,542)		1,551
- revenue		326		17		(199)		(31)		(2,148)		(2,035)
- operating expenses		1,537		202		1,035		206		606		3,586
Adjusted		6,830		8,192		8,746		519		(3,869)		20,418

		2014
		RBWM		CMB		GB&M		GPB		Other		Total
		$m		$m		$m		$m		$m		$m
Revenue1
Reported31		25,149		15,748		17,778		2,377		6,365		61,248
Currency translation31		(2,209)		(1,242)		(1,296)		(138)		(158)		(4,775)
Significant items		877		9		328		41		(501)		754
- DVA on derivative contracts		-		-		332		-		-		332
- fair value movements on non-qualifying hedges32		493		(1)		8		1		40		541
- 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)
- impairment of our investment in Industrial Bank		-		-		-		-		271		271
- own credit spread2		-		-		-		-		(417)		(417)
- provisions arising from the ongoing review of compliance with the Consumer Credit Act in the UK		568		24		-		40		-		632
- (gain)/loss and trading results from disposals and changes in ownership levels		(16)		(14)		(12)		-		33		(9)
Adjusted31		23,817		14,515		16,810		2,280		5,706		57,227
LICs
Reported		(1,936)		(1,558)		(365)		8		-		(3,851)
Currency translation		340		256		86		3		(2)		683
Significant items		2		(2)		-		-		-		-
- trading results from disposals and changes in ownership levels		2		(2)		-		-		-		-
Adjusted		(1,594)		(1,304)		(279)		11		(2)		(3,168)
Operating expenses
Reported31		(18,030)		(6,981)		(12,028)		(1,778)		(8,601)		(41,249)
Currency translation31		1,851		627		782		100		186		3,278
Significant items		1,118		189		1,896		71		121		3,395
- charge in relation to the settlement agreement with the Federal Housing Finance Authority		17		-		533		-		-		550
- regulatory provisions in GPB		-		-		-		65		-		65
- restructuring and other related costs		88		37		27		6		120		278
- settlements and provisions in connection with legal matters		-		-		1,187		-		-		1,187
- UK customer redress programmes		992		138		145		-		-		1,275
- trading results from disposals and changes in ownership levels		21		14		4		-		1		40
Adjusted31		(15,061)		(6,165)		(9,350)		(1,607)		(8,294)		(34,576)
Share of profit in associates and joint ventures
Reported		398		1,605		504		19		6		2,532
Currency translation		(5)		(28)		(7)		-		1		(39)
Adjusted		393		1,577		497		19		7		2,493
Profit/(loss) before tax
Reported		5,581		8,814		5,889		626		(2,230)		18,680
Currency translation		(23)		(387)		(435)		(35)		27		(853)
Significant items		1,997		196		2,224		112		(380)		4,149
- revenue		877		9		328		41		(501)		754
- LICs		2		(2)		-		-		-		-
- operating expenses		1,118		189		1,896		71		121		3,395
Adjusted		7,555		8,623		7,678		703		(2,583)		21,976

For footnotes, see page 99.

 

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