Annual Financial Report - Part 10

RNS Number : 5861Q

HSBC Holdings PLC

21 February 2023

 

15	Derivatives

Notional contract amounts and fair values of derivatives by product contract type held by HSBC
	Notional contract amount		Fair value - Assets			Fair value - Liabilities
	Trading	Hedging	Trading	Hedging	Total	Trading	Hedging	Total
	$m	$m	$m	$m	$m	$m	$m	$m
Foreign exchange	8,434,453	38,924	122,203	525	122,728	123,088	166	123,254
Interest rate	15,213,232	276,589	285,438	5,066	290,504	287,877	3,501	291,378
Equities	570,410	-	9,325	-	9,325	9,176	-	9,176
Credit	183,995	-	1,091	-	1,091	1,264	-	1,264
Commodity and other	78,413	-	1,485	-	1,485	1,679	-	1,679
Gross total fair values	24,480,503	315,513	419,542	5,591	425,133	423,084	3,667	426,751
Offset (Note 31)					(140,987)			(140,987)
At 31 Dec 2022	24,480,503	315,513	419,542	5,591	284,146	423,084	3,667	285,764
Foreign exchange	7,723,034	43,839	79,801	1,062	80,863	77,670	207	77,877
Interest rate	14,470,539	162,921	151,631	1,749	153,380	146,808	966	147,774
Equities	659,142	-	12,637	-	12,637	14,379	-	14,379
Credit	190,724	-	2,175	-	2,175	3,151	-	3,151
Commodity and other	74,159	-	1,205	-	1,205	1,261	-	1,261
Gross total fair values	23,117,598	206,760	247,449	2,811	250,260	243,269	1,173	244,442
Offset (Note 31)					(53,378)			(53,378)
At 31 Dec 2021	23,117,598	206,760	247,449	2,811	196,882	243,269	1,173	191,064

The notional contract amounts of derivatives held for trading purposes and derivatives designated in hedge accounting relationships indicate the nominal value of transactions outstanding at the balance sheet date. They do not represent amounts at risk.

Derivative assets and liabilities increased during 2022, driven by yield curve movements and changes in foreign exchange rates.

Notional contract amounts and fair values of derivatives by product contract type held by HSBC Holdings with subsidiaries
	Notional contract amount		Assets			Liabilities
	Trading	Hedging	Trading	Hedging	Total	Trading	Hedging	Total
	$m	$m	$m	$m	$m	$m	$m	$m
Foreign exchange	60,630	-	502	-	502	1,683	-	1,683
Interest rate	34,322	81,873	2,386	913	3,299	826	4,413	5,239
At 31 Dec 2022	94,952	81,873	2,888	913	3,801	2,509	4,413	6,922
Foreign exchange	36,703	-	384	-	384	377	-	377
Interest rate	35,970	45,358	712	1,715	2,427	769	74	843
At 31 Dec 2021	72,673	45,358	1,096	1,715	2,811	1,146	74	1,220

Use of derivatives

For details regarding the use of derivatives, see page 220 under 'Market risk'.

Trading derivatives

Most of HSBC's derivative transactions relate to sales and trading activities. Sales activities include the structuring and marketing of derivative products to customers to enable them to take, transfer, modify or reduce current or expected risks. Trading activities include market-making and risk management. Market-making entails quoting bid and offer prices to other market participants for the purpose of generating revenue based on spread and volume. Risk management activity is undertaken to manage the risk arising from client transactions, with the principal purpose of retaining client margin. Other derivatives classified as held for trading include non-qualifying hedging derivatives.

Substantially all of HSBC Holdings' derivatives entered into with subsidiaries are managed in conjunction with financial liabilities designated at fair value.

Derivatives valued using models with unobservable inputs

The difference between the fair value at initial recognition (the transaction price) and the value that would have been derived had valuation techniques used for subsequent measurement been applied at initial recognition, less subsequent releases, is as shown in the following table:

Unamortised balance of derivatives valued using models with significant unobservable inputs
	2022	2021
	$m	$m
Unamortised balance at 1 Jan	106	104
Deferral on new transactions	191	311
Recognised in the income statement during the year:	(192)	(308)
-  amortisation	(112)	(177)
-  subsequent to unobservable inputs becoming observable	(3)	(4)
-  maturity, termination or offsetting derivative	(77)	(127)
Exchange differences	(8)	(1)
Unamortised balance at 31 Dec1	97	106

1  This amount is yet to be recognised in the consolidated income statement.

1 

Hedge accounting derivatives

HSBC applies hedge accounting to manage the following risks: interest rate and foreign exchange risks. Further details on how these risks arise and how they are managed by the Group can be found in the 'Risk review'.

Hedged risk components

HSBC designates a portion of cash flows of a financial instrument or a group of financial instruments for a specific interest rate or foreign currency risk component in a fair value or cash flow hedge. The designated risks and portions are either contractually specified or otherwise separately identifiable components of the financial instrument that are reliably measurable. Risk-free or benchmark interest rates generally are regarded as being both separately identifiable and reliably measurable, except for the Interest Rate Benchmark Reform Phase 2 transition where HSBC designates alternative benchmark rates as the hedged risk which may not have been separately identifiable upon initial designation, provided HSBC reasonably expects it will meet the requirement within 24 months from the first designation date. The designated risk components account for a significant portion of the overall changes in fair value or cash flows of the hedged items.

HSBC uses net investment hedges to hedge the structural foreign exchange risk related to net investments in foreign operations including subsidiaries and branches whose functional currencies are different from that of the parent. When hedging with foreign exchange forward contracts, the spot rate component of the foreign exchange risk is designated as the hedged risk.

Fair value hedges

HSBC enters into fixed-for-floating-interest-rate swaps to manage the exposure to changes in fair value caused by movements in market interest rates on certain fixed-rate financial instruments that are not measured at fair value through profit or loss, including debt securities held and issued.

HSBC hedging instrument by hedged risk
	Hedging instrument
		Carrying amount
	Notional amount1	Assets	Liabilities	Balance sheet presentation	Change in fair value2
Hedged risk	$m	$m	$m		$m
Interest rate3	162,062	4,973	2,573	Derivatives	4,064
At 31 Dec 2022	162,062	4,973	2,573		4,064

Interest rate3	90,556	1,637	1,410	Derivatives	1,330
At 31 Dec 2021	90,556	1,637	1,410		1,330

1  The notional contract amounts of derivatives designated in qualifying hedge accounting relationships indicate the nominal value of transactions outstanding at the balance sheet date. They do not represent amounts at risk.

2  Used in effectiveness testing, which uses the full fair value change of the hedging instrument not excluding any component.

3  The hedged risk 'interest rate' includes inflation risk.

HSBC hedged item by hedged risk
	Hedged item						Ineffectiveness
	Carrying amount		Accumulated fair value hedge adjustments included in carrying amount2			Change in fair value1	Recognised in profit and loss
	Assets	Liabilities	Assets	Liabilities	Balance sheet presentation			Profit and loss presentation
Hedged risk	$m	$m	$m	$m		$m	$m
Interest rate3	82,792		(5,100)		Financial investments measured at fair value through other comprehensive income	(8,005)	(59)	Net income from financial instruments held for trading or managed on a fair value basis
	3,415		(210)		Loans and advances to customers	(233)
	519		(18)		Reverse repos	(17)
		49,180		(2,006)	Debt securities in issue	4,138
		83		-	Deposits by banks	(5)
At 31 Dec 2022	86,726	49,263	(5,328)	(2,006)		(4,122)	(59)

Interest rate3	68,059		1,199		Financial assets designated and otherwise mandatorily measured at fair value through other comprehensive income	(1,932)	(36)	Net income from financial instruments held for trading or managed on a fair value basis
	2		(3)		Loans and advances to banks	(3)
	3,066		9		Loans and advances to customers	(41)
		14,428		992	Debt securities in issue	609
		86		1	Deposits by banks	1
At 31 Dec 2021	71,127	14,514	1,205	993		(1,366)	(36)

1  Used in effectiveness testing, which comprise an amount attributable to the designated hedged risk that can be a risk component.

2  The accumulated amount of fair value adjustments remaining in the statement of financial position for hedged items that have ceased to be adjusted for hedging gains and losses were assets of $252m (2021: $1,061m) for FVOCI assets and liabilities of $916m (2021: $15m) for debt issued.

3  The hedged risk 'interest rate' includes inflation risk.

HSBC Holdings hedging instrument by hedged risk
	Hedging instrument
		Carrying amount
	Notional amount1,4	Assets	Liabilities	Balance sheet presentation	Change in fair value2
Hedged risk	$m	$m	$m		$m
Interest rate3	81,873	913	4,413	Derivatives	(5,599)
At 31 Dec 2022	81,873	913	4,413		(5,599)
Interest rate3	45,358	1,715	74	Derivatives	(1,515)
At 31 Dec 2021	45,358	1,715	74		(1,515)

1  The notional contract amounts of derivatives designated in qualifying hedge accounting relationships indicate the nominal value of transactions outstanding at the balance sheet date; they do not represent amounts at risk.

2  Used in effectiveness testing; comprising the full fair value change of the hedging instrument not excluding any component.

3  The hedged risk 'interest rate' includes foreign exchange risk.

4  The notional amount of non-dynamic fair value hedges is equal to $81,873m (2021: $45,358m), of which the weighted-average maturity date is June 2028 and the weighted-average swap rate is 2.33% (2021: 1.30%). The majority of these hedges are internal to the Group.

HSBC Holdings hedged item by hedged risk
	Hedged item						Ineffectiveness
	Carrying amount		Accumulated fair value hedge adjustments included in carrying amount2			Change in fair value1	Recognised in profit and loss
	Assets	Liabilities	Assets	Liabilities	Balance sheet presentation			Profit and loss presentation
Hedged risk	$m	$m	$m	$m		$m	$m
Interest rate3		68,223		(3,829)	Debt securities in issue	6,258	(34)	Net income from financial instruments held for trading or managed on a fair value basis
	6,812		(789)		Loans and advances to banks	(693)
At 31 Dec 2022	6,812	68,223	(789)	(3,829)		5,565	(34)
Interest rate3		39,154		1,408	Debt securities in issue	1,599	(21)	Net income from financial instruments held for trading or managed on a fair value basis
	7,863		(104)		Loans and advances to banks	(104)
At 31 Dec 2021	7,863	39,154	(104)	1,408		1,495	(21)

1  Used in effectiveness testing; comprising amount attributable to the designated hedged risk that can be a risk component.

2  The accumulated amount of fair value adjustments remaining in the statement of financial position for hedged items that have ceased to be adjusted for hedging gains and losses were liabilities of $971m (2021: $54.4m) for debt issued.

3  The hedged risk 'interest rate' includes foreign exchange risk.

Sources of hedge ineffectiveness may arise from basis risk, including but not limited to the discount rates used for calculating the fair value of derivatives, hedges using instruments with a non-zero fair value, and notional and timing differences between the hedged items and hedging instruments.

For some debt securities held, HSBC manages interest rate risk in a dynamic risk management strategy. The assets in scope of this strategy are high-quality fixed-rate debt securities, which may be sold to meet liquidity and funding requirements.

The interest rate risk of the HSBC fixed-rate debt securities issued is managed in a non-dynamic risk management strategy.

Cash flow hedges

HSBC's cash flow hedging instruments consist principally of interest rate swaps and cross-currency swaps that are used to manage the variability in future interest cash flows of non-trading financial assets and liabilities, arising due to changes in market interest rates and foreign-currency basis.

HSBC applies macro cash flow hedging for interest rate risk exposures on portfolios of replenishing current and forecasted issuances of non-trading assets and liabilities that bear interest at variable rates, including rolling such instruments. The amounts and timing of future cash flows, representing both principal and interest flows, are projected for each portfolio of financial assets and liabilities on the basis of their contractual terms and other relevant factors, including estimates of prepayments and defaults. The aggregate cash flows representing both principal balances and interest cash flows across all portfolios are used to determine the effectiveness and ineffectiveness. Macro cash flow hedges are considered to be dynamic hedges.

HSBC also hedges the variability in future cash flows on foreign-denominated financial assets and liabilities arising due to changes in foreign exchange market rates with cross-currency swaps, which are considered dynamic hedges.

Hedging instrument by hedged risk
	Hedging instrument					Hedged item	Ineffectiveness
		Carrying amount			Change in fair value2	Change in fair value3	Recognised in profit and loss	Profit and loss presentation
	Notional amount1	Assets	Liabilities	Balance sheet presentation
Hedged risk	$m	$m	$m		$m	$m	$m
Foreign currency	8,781	418	166	Derivatives	659	659	-	Net income from financial instruments held for trading or managed on a fair value basis
Interest rate	114,527	93	950	Derivatives	(4,997)	(4,973)	(24)
At 31 Dec 2022	123,308	511	1,116		(4,338)	(4,314)	(24)

Foreign currency	17,930	827	207	Derivatives	987	987	-	Net income from financial instruments held for trading or managed on a fair value basis
Interest rate	72,365	112	217	Derivatives	(519)	(500)	(19)
At 31 Dec 2021	90,295	939	424		468	487	(19)

1  The notional contract amounts of derivatives designated in qualifying hedge accounting relationships indicate the nominal value of transactions outstanding at the balance sheet date. They do not represent amounts at risk.

2  Used in effectiveness testing; comprising the full fair value change of the hedging instrument not excluding any component.

3  Used in effectiveness assessment; comprising amount attributable to the designated hedged risk that can be a risk component.

Sources of hedge ineffectiveness may arise from basis risk, including but not limited to timing differences between the hedged items and hedging instruments and hedges using instruments with a non-zero fair value.

Reconciliation of equity and analysis of other comprehensive income by risk type
	Interest rate	Foreign currency
	$m	$m
Cash flow hedging reserve at 1 Jan 2022	8	(205)
Fair value gains/(losses)	(4,973)	659
Fair value (gains)/losses reclassified from the cash flow hedge reserve to the income statement in respect of:
Hedged items that have affected profit or loss1	325	(926)
Income taxes	1,123	28
Others	130	23
Cash flow hedging reserve at 31 Dec 2022	(3,387)	(421)

Cash flow hedging reserve at 1 Jan 2021	495	(37)
Fair value gains/(losses)	(500)	987
Fair value (gains)/losses reclassified from the cash flow hedge reserve to the income statement in respect of:
Hedged items that have affected profit or loss	(217)	(1,177)
Income taxes	185	25
Others	45	(3)
Cash flow hedging reserve at 31 Dec 2021	8	(205)

1  Hedged items that have affected profit or loss are primarily recorded within interest income.

Net investment hedges

The Group applies hedge accounting in respect of certain net investments in non-US dollar functional currency foreign operations for changes in spot exchange rates only. Hedging could be undertaken for Group structural exposure to changes in the US dollar to foreign currency exchange rates using forward foreign exchange contracts or by financing with foreign currency borrowings. The aggregate positions at the reporting date and the performance indicators of both live and de-designated hedges are summarised below. There were no amounts reclassified to the profit and loss account during the accounting periods presented.

Hedges of net investment in foreign operations
	Carrying value		Nominal  amount	Amounts recognised in OCI	Hedge ineffectiveness recognised in income statement
	Derivative  assets	Derivative liabilities
Description of hedged risk	$m	$m	$m	$m	$m
2022
Pound sterling-denominated structural foreign exchange	264	-	14,000	1,447	-
Swiss franc-denominated structural foreign exchange	-	(21)	727	111	-
Hong Kong dollar-denominated structural foreign exchange	-	(19)	4,597	(2)	-
Other structural foreign exchange1	-	(117)	10,819	375	-
Total	264	(157)	30,143	1,931	-
2021
Pound sterling-denominated structural foreign exchange	229	-	15,717	(126)	-
Swiss franc-denominated structural foreign exchange	-	(8)	809	101	-
Hong Kong dollar-denominated structural foreign exchange	7	-	4,992	5	-
Other structural foreign exchange1	7	-	4,387	6	-
Total	243	(8)	25,906	(14)	-

1  Other currencies include New Taiwan dollar, Singapore dollar, Canadian dollar, Omani rial, South Korean won, Indian rupee, Indonesian rupiah, euro, Mexican peso, Qatari riyal, Kuwaiti dinar, Saudi riyal and United Arab Emirates dirham.

Interest rate benchmark reform: Amendments to IFRS 9 and IAS 39 'Financial Instruments'

HSBC has applied both the first set of amendments ('Phase 1') and the second set of amendments ('Phase 2') to IFRS 9 and IAS 39 applicable to hedge accounting. The hedge accounting relationships that are affected by Phase 1 and Phase 2 amendments are presented in the balance sheet as 'Financial assets designated and otherwise mandatorily measured at fair value through other comprehensive income', 'Loans and advances to customers', 'Debt securities in issue' and 'Deposits by banks'. The notional value of the derivatives impacted by the Ibor reform, including those designated in hedge accounting relationships, is disclosed on page 138 in the section 'Financial instruments impacted by the Ibor reform'. For further details on Ibor transition, see 'Top and emerging risks' on page 137.

During 2022, the Group transitioned all of its hedging instruments referencing sterling Libor, European Overnight Index Average rate ('Eonia') and Japanese yen Libor. The Group also transitioned some of the hedging instruments referencing US dollar Libor. There is no significant judgement applied for these benchmarks to determine whether and when the transition uncertainty has been resolved.

The most significant Ibor benchmark in which the Group continues to have hedging instruments is US dollar Libor. It is expected that the transition out of US dollar Libor hedging derivatives will be completed by the second quarter of 2023. These transitions do not necessitate new approaches compared with any of the mechanisms used so far for transition and it will not be necessary to change the transition risk management strategy.

For some of the Ibors included under the 'Other' header in the table below, judgement has been needed to establish whether a transition is required, since there are Ibor benchmarks that are subject to computation methodology improvements and insertion of fallback provisions without full clarity being provided by their administrators on whether these Ibor benchmarks will be demised.

The notional amounts of interest rate derivatives designated in hedge accounting relationships do not represent the extent of the risk exposure managed by the Group but they are expected to be directly affected by market-wide Ibor reform and in scope of Phase 1 amendments and are shown in the table below. The cross-currency swaps designated in hedge accounting relationships and affected by Ibor reform are not significant and have not been presented below.

Hedging instrument impacted by Ibor reform
	Hedging instrument
	Impacted by Ibor reform					Not impacted by Ibor reform	Notional amount1
	€2	£	$	Other3	Total
	$m	$m	$m	$m	$m	$m	$m
Fair value hedges	12,756	-	2,015	12,643	27,414	134,648	162,062
Cash flow hedges	8,865	-	-	27,830	36,695	77,832	114,527
At 31 Dec 2022	21,621	-	2,015	40,473	64,109	212,480	276,589
Fair value hedges	6,178	-	18,525	6,615	31,318	59,238	90,556
Cash flow hedges	7,954	-	100	8,632	16,686	55,679	72,365
At 31 Dec 2021	14,132	-	18,625	15,247	48,004	114,917	162,921

1  The notional contract amounts of interest rate derivatives designated in qualifying hedge accounting relationships indicate the nominal value of transactions outstanding at the balance sheet date and they do not represent amounts at risk.

2  The notional contract amounts of euro interest rate derivatives impacted by Ibor reform mainly comprise hedges with a Euribor benchmark, which are 'Fair value hedges' of $12,756m (31 December 2021: $6,178m) and 'Cash flow hedges' of $8,865m (31 December 2021: $7,954m).

3  Other benchmarks impacted by Ibor reform comprise mainly of Canadian dollar offered rate ('CDOR'), Hong Kong interbank offered rate ('HIBOR') and Mexican interbank equilibrium interest rate ('TIIE') related derivatives.

3 

Hedging instrument impacted by Ibor reform held by HSBC Holdings
	Hedging instrument
	Impacted by Ibor reform					Not impacted by Ibor reform	Notional amount
	€	£	$	Other	Total
	$m	$m	$m	$m	$m	$m	$m
Fair value hedges	15,210	-	2,000	1,336	18,546	63,327	81,873
At 31 Dec 2022	15,210	-	2,000	1,336	18,546	63,327	81,873
Fair value hedges	9,944	-	20,035	1,458	31,437	13,921	45,358
At 31 Dec 2021	9,944	-	20,035	1,458	31,437	13,921	45,358

16	Financial investments

Carrying amount of financial investments
	2022	2021
	$m	$m
Financial investments measured at fair value through other comprehensive income	256,817	348,972
-  treasury and other eligible bills	86,749	100,158
-  debt securities	168,264	246,998
-  equity securities	1,696	1,770
-  other instruments	108	46
Debt instruments measured at amortised cost	168,747	97,302
-  treasury and other eligible bills	35,282	21,634
-  debt securities	133,465	75,668
At 31 Dec	425,564	446,274

Equity instruments measured at fair value through other comprehensive income
	Fair value	Dividends recognised
Type of equity instruments	$m	$m
Investments required by central institutions	690	24
Business facilitation	954	28
Others	52	2
At 31 Dec 2022	1,696	54
Investments required by central institutions	766	17
Business facilitation	954	24
Others	50	3
At 31 Dec 2021	1,770	44

Weighted average yields of investment debt securities
	Up to 1  year	1 to 5 years	5 to 10 years	Over 10 years
	Yield	Yield	Yield	Yield
	%	%	%	%
Debt securities measured at fair value through other comprehensive income
US Treasury	1.0	1.3	1.3	2.3
US Government agencies	4.7	0.9	3.2	2.5
US Government-sponsored agencies	1.1	1.7	2.1	1.7
UK Government	0.5	0.8	0.4	1.3
Hong Kong Government	1.3	1.6	1.7	-
Other governments	2.3	3.0	2.9	3.7
Asset-backed securities	6.7	0.2	2.7	2.4
Corporate debt and other securities	3.4	1.8	2.5	2.2
Debt securities measured at amortised cost
US Treasury	10.2	3.4	3.8	2.8
US Government agencies	-	2.9	7.2	3.2
US Government-sponsored agencies	2.9	2.4	3.2	3.3
UK Government	-	-	0.7	0.9
Hong Kong Government	1.9	3.8	2.2	4.5
Other governments	2.1	4.2	3.6	3.8
Asset-backed securities	4.0	4.7	-	7.7
Corporate debt and other securities	3.2	3.2	3.3	4.0

The maturity distributions of ABSs are presented in the above table on the basis of contractual maturity dates. The weighted average yield for each range of maturities is calculated by dividing the annualised interest income for the year ended 31 December 2022 by the book amount of debt securities at that date. The yields do not include the effect of related derivatives.

HSBC Holdings

HSBC Holdings carrying amount of financial investments
	2022	2021
	$m	$m
Debt instruments measured at amortised cost
-  treasury and other eligible bills	12,796	19,508
-  debt securities	6,670	6,686
At 31 Dec	19,466	26,194

Weighted average yields of investment debt securities
	Up to 1  year	1 to 5 years	5 to 10 years	Over 10 years
	Yield	Yield	Yield	Yield
	%	%	%	%
Debt securities measured at amortised cost
US Treasury	0.3	2.8	-	-

The weighted average yield for each range of maturities is calculated by dividing the annualised interest income for the year ended 31 December 2022 by the book amount of debt securities at that date. The yields do not include the effect of related derivatives.

17	Assets pledged, collateral received and assets transferred

Assets pledged¹

Financial assets pledged as collateral
	2022	2021
	$m	$m
Treasury bills and other eligible securities	18,364	9,613
Loans and advances to banks	10,198	412
Loans and advances to customers	27,627	55,370
Debt securities	60,542	66,629
Equity securities	26,902	34,472
Other	67,576	45,396
Assets pledged at 31 Dec	211,209	211,892

Assets pledged as collateral include all assets categorised as encumbered in the disclosure on page 89 of the Pillar 3 Disclosures at 31 December 2022, except for assets held for sale.

The amount of assets pledged to secure liabilities may be greater than the book value of assets utilised as collateral. For example, in the case of securitisations and covered bonds, the amount of liabilities issued plus mandatory over-collateralisation is less than the book value of the pool of assets available for use as collateral. This is also the case where assets are placed with a custodian or a settlement agent that has a floating charge over all the assets placed to secure any liabilities under settlement accounts.

These transactions are conducted under terms that are usual and customary for collateralised transactions including, where relevant, standard securities lending and borrowing, repurchase agreements and derivative margining. HSBC places both cash and non-cash collateral in relation to derivative transactions.

Hong Kong currency notes in circulation are secured by the deposit of funds in respect of which the Hong Kong Government certificates of indebtedness are held.

Financial assets pledged as collateral which the counterparty has the right to sell or repledge
	2022	2021
	$m	$m
Trading assets	56,894	69,719
Financial investments	27,841	12,416
At 31 Dec	84,735	82,135

Collateral received¹

The fair value of assets accepted as collateral relating primarily to standard securities lending, reverse repurchase agreements, swaps of securities and derivative margining that HSBC is permitted to sell or repledge in the absence of default was $449,896m (2021: $476,455m). The fair value of any such collateral sold or repledged was $228,245m (2021: $271,582m).

HSBC is obliged to return equivalent securities. These transactions are conducted under terms that are usual and customary to standard securities lending, reverse repurchase agreements and derivative margining.

Assets transferred¹

The assets pledged include transfers to third parties that do not qualify for derecognition, notably secured borrowings such as debt securities held by counterparties as collateral under repurchase agreements and equity securities lent under securities lending agreements, as well as swaps of equity and debt securities. For secured borrowings, the transferred asset collateral continues to be recognised in full while a related liability, reflecting the Group's obligation to repurchase the assets for a fixed price at a future date, is also recognised on the balance sheet.

Where securities are swapped, the transferred asset continues to be recognised in full. There is no associated liability as the non-cash collateral received is not recognised on the balance sheet. The Group is unable to use, sell or pledge the transferred assets for the duration of the transaction, and remains exposed to interest rate risk and credit risk on these pledged assets. With the exception of 'Other sales' in the following table, the counterparty's recourse is not limited to the transferred assets.

Transferred financial assets not qualifying for full derecognition and associated financial liabilities
	Carrying amount of:		Fair value of:
	Transferred assets	Associated liabilities	Transferred assets	Associated liabilities	Net position
	$m	$m	$m	$m	$m
At 31 Dec 2022
Repurchase agreements	52,604	48,501
Securities lending agreements	39,134	4,613
At 31 Dec 2021
Repurchase agreements	51,135	48,180
Securities lending agreements	43,644	2,918
Other sales (recourse to transferred assets only)	3,826	3,826	3,830	3,842	(12)

1  Excludes assets classified as held for sale .

18	Interests in associates and joint ventures

Carrying amount of HSBC's interests in associates and joint ventures
	2022	2021
	$m	$m
Interests in associates	29,127	29,515
Interests in joint ventures	127	94
Interests in associates and joint ventures	29,254	29,609

Principal associates of HSBC
		2022		2021
		Carrying amount	Fair value1	Carrying amount	Fair value1
		$m	$m	$m	$m
Bank of Communications Co., Limited		23,307	8,141	23,616	8,537
The Saudi British Bank		4,494	6,602	4,426	5,599

1  Principal associates are listed on recognised stock exchanges. The fair values are based on the quoted market prices of the shares held (Level 1 in the fair value hierarchy).

	At 31 Dec 2022
	Country of incorporation and principal place of business	Principal activity	HSBC's interest %
Bank of Communications Co., Limited	People's Republic of China	Banking services	19.03
The Saudi British Bank	Saudi Arabia	Banking services	31.00

Share of profit in associates and joint ventures
	2022	2021
	$m	$m
Bank of Communications Co., Limited	2,377	2,461
The Saudi British Bank	342	276
Other associates and joint ventures	4	309
Share of profit in associates and joint ventures	2,723	3,046

A list of all associates and joint ventures is set out in Note 38.

Bank of Communications Co., Limited

The Group's investment in Bank of Communications Co., Limited ('BoCom') is classified as an associate. Significant influence in BoCom was established with consideration of all relevant factors, including representation on BoCom's Board of Directors and participation in a resource and experience sharing agreement ('RES'). Under the RES, HSBC staff have been seconded to assist in the maintenance of BoCom's financial and operating policies. Investments in associates are recognised using the equity method of accounting in accordance with IAS 28 'Investments in Associates and Joint Ventures', whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the Group's share of BoCom's net assets. An impairment test is required if there is any indication of impairment.

Impairment testing

At 31 December 2022, the fair value of the Group's investment in BoCom had been below the carrying amount for approximately 11 years. As a result, the Group performed an impairment test on the carrying amount, which confirmed that there was no impairment at 31 December 2022 as the recoverable amount as determined by a value-in-use ('VIU') calculation was higher than the carrying value.

	At 31 Dec 2022			At 31 Dec 2021
	VIU	Carrying value	Fair value	VIU	Carrying value	Fair value
	$bn	$bn	$bn	$bn	$bn	$bn
BoCom	23.5	23.3	8.1	24.8	23.6	8.5

The headroom, which is defined as the extent to which the VIU exceeds the carrying value, decreased by $1.0bn compared with 31 December 2021. The decrease in headroom was principally due to revisions to management's best estimates of BoCom's future earnings in the short to medium term, and the impact from BoCom's actual performance.

In future periods, the VIU may increase or decrease depending on the effect of changes to model inputs. The main model inputs are described below and are based on factors observed at period-end. The factors that could result in a change in the VIU and an impairment include a short-term underperformance by BoCom, a change in regulatory capital requirements or an increase in uncertainty regarding the future performance of BoCom resulting in a downgrade of the forecast of future asset growth or profitability. An increase in the discount rate could also result in a reduction of VIU and an impairment.

If the Group did not have significant influence in BoCom, the investment would be carried at fair value rather than the current carrying value.

Basis of recoverable amount

The impairment test was performed by comparing the recoverable amount of BoCom, determined by a VIU calculation, with its carrying amount. The VIU calculation uses discounted cash flow projections based on management's best estimates of future earnings available to ordinary shareholders prepared in accordance with IAS 36 'Impairment of Assets'. Significant management judgement is required in arriving at the best estimate.

There are two main components to the VIU calculation. The first component is management's best estimate of BoCom's earnings. Forecast earnings growth over the short to medium term are lower than recent (within the last five years) historical actual growth and reflect the uncertainty arising from the current economic outlook. Reflecting management's intent to continue to retain its investment, earnings beyond the short to medium term are then extrapolated into perpetuity using a long-term growth rate to derive a terminal value, which comprises the majority of the VIU. The second component is the capital maintenance charge ('CMC'), which is management's forecast of the earnings that need to be withheld in order for BoCom to meet capital requirements over the forecast period, meaning that CMC is deducted when arriving at management's estimate of future earnings available to ordinary shareholders. The principal inputs to the CMC calculation include estimates of asset growth, the ratio of risk-weighted assets to total assets and the expected capital requirements. An increase in the CMC as a result of a change to these principal inputs would reduce VIU. Additionally, management considers other qualitative factors, to ensure that the inputs to the VIU calculation remain appropriate.

Key assumptions in value-in-use calculation

We used a number of assumptions in our VIU calculation, in accordance with the requirements of IAS 36:

• Long-term profit growth rate: 3% (2021: 3%) for periods after 2026, which does not exceed forecast GDP growth in mainland China and is similar to forecasts by external analysts.

• Long-term asset growth rate: 3% (2021: 3%) for periods after 2026, which is the rate that assets are expected to grow to achieve long-term profit growth of 3%.

• Discount rate: 10.04% (2021: 10.03%), which is based on a capital asset pricing model ('CAPM'), using market data. The discount rate used is within the range of 8.4% to 10.4% (2021: 8.7% to 10.1%) indicated by the CAPM. While the CAPM range sits at the lower end of the range adopted by selected external analysts of 8.8% to 13.5% (2021: 9.9% to 13.5%), we continue to regard the CAPM range as the most appropriate basis for determining this assumption.

• Expected credit losses ('ECL') as a percentage of customer advances: ranges from 0.99% to 1.05% (2021: 0.98% to 1.12%) in the short to medium term, reflecting reported credit experience through the ongoing Covid-19 pandemic in mainland China followed by an expected reversion to recent historical levels. For periods after 2026, the ratio is 0.97% (2021: 0.97%), which is higher than BoCom's average ECL as a percentage of customer advances in recent years prior to the pandemic.

• Risk-weighted assets as a percentage of total assets: ranges from 61.0% to 64.4% (2021: 61.0% to 62.4%) in the short to medium term, reflecting higher risk-weights in the short term followed by an expected reversion to recent historical levels. For periods after 2026, the ratio is 61.0% (2021: 61.0%), which is similar to BoCom's actual results in recent years.

• Operating income growth rate: ranges from 1.9% to 7.7% (2021: 5.1% to 6.2%) in the short to medium term, which is lower than BoCom's actual results in recent years and is similar to the forecasts disclosed by external analysts. This reflects BoCom's most recent actual results, global trade tensions and industry developments in mainland China.

• Cost-income ratio: ranges from 35.5% to 36.3% (2021: 35.5% to 36.1%) in the short to medium term. These ratios are similar to BoCom's actual results in recent years and forecasts disclosed by external analysts.

• Effective tax rate ('ETR'): ranges from 4.4% to 15.0% (2021: 6.8% to 15.0%) in the short to medium term, reflecting BoCom's actual results and an expected increase towards the long-term assumption through the forecast period. For periods after 2026, the rate is 15.0% (2021: 15.0%), which is higher than the recent historical average, and aligned to the minimum tax rate as proposed by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting.

• Capital requirements: capital adequacy ratio of 12.5% (2021: 12.5%) and tier 1 capital adequacy ratio of 9.5% (2021: 9.5%), based on BoCom's capital risk appetite and capital requirements respectively.

The following table shows the change to each key assumption in the VIU calculation that on its own would reduce the headroom to nil:

Key assumption	Changes to key assumption to reduce headroom to nil
• Long-term profit growth rate	• Decrease by 4 basis points
• Long-term asset growth rate	• Increase by 3 basis points
• Discount rate	• Increase by 5 basis points
• Expected credit losses as a percentage of customer advances	• Increase by 1 basis points
• Risk-weighted assets as a percentage of total assets	• Increase by 26 basis points
• Operating income growth rate	• Decrease by 5 basis points
• Cost-income ratio	• Increase by 15 basis points
• Long-term effective tax rate	• Increase by 46 basis points
• Capital requirements - capital adequacy ratio	• Increase by 5 basis points
• Capital requirements - tier 1 capital adequacy ratio	• Increase by 175 basis points

The following table further illustrates the impact on VIU of reasonably possible changes to key assumptions. This reflects the sensitivity of the VIU to each key assumption on its own and it is possible that more than one favourable and/or unfavourable change may occur at the same time. The selected rates of reasonably possible changes to key assumptions are based on external analysts' forecasts, statutory requirements and other relevant external data sources, which can change period to period.

Sensitivity of VIU to reasonably possible changes in key assumptions
	Favourable change			Unfavourable change
		Increase in VIU	VIU		Decrease in VIU	VIU
	bps	$bn	$bn	bps	$bn	$bn
At 31 Dec 2022
Long-term profit growth rate1	75	3.6	27.1	(71)	(2.7)	20.8
Long-term asset growth rate1	(71)	3.1	26.6	75	(4.1)	19.4
Discount rate	(164)	6.9	30.4	136	(3.7)	19.8
Expected credit losses as a percentage of customer advances	2022 to 2026: 95 2027 onwards: 91	1.9	25.4	2022 to 2026: 120 2027 onwards: 104	(2.9)	20.6
Risk-weighted assets as a percentage of total assets	(118)	0.1	23.6	239	(2.3)	21.2
Operating income growth rate	44	1.3	24.8	(83)	(2.5)	21.0
Cost-income ratio	(122)	1.0	24.5	174	(2.1)	21.4
Long-term effective tax rate	(426)	1.5	25.0	1,000	(3.6)	19.9
Capital requirements - capital adequacy ratio	-	-	23.5	191	(6.3)	17.2
Capital requirements - tier 1 capital adequacy ratio	-	-	23.5	266	(3.2)	20.3
At 31 Dec 2021
Long-term profit growth rate1	87	4.2	29.0	(69)	(2.7)	22.1
Long-term asset growth rate1	(69)	2.9	27.7	87	(4.7)	20.1
Discount rate	(133)	5.4	30.2	207	(5.3)	19.5
Expected credit losses as a percentage of customer advances	2021 to 2025: 103 2026 onwards: 91	1.5	26.3	2021 to 2025: 121 2026 onwards: 105	(2.7)	22.1
Risk-weighted assets as a percentage of total assets	(111)	0.2	25.0	280	(2.1)	22.7
Operating income growth rate	37	1.0	25.8	(58)	(1.8)	23.0
Cost-income ratio	(152)	1.7	26.5	174	(1.7)	23.1
Long-term effective tax rate	(104)	0.3	25.1	1,000	(3.6)	21.2
Capital requirements - capital adequacy ratio	-	-	24.8	325	(10.0)	14.8
Capital requirements - tier 1 capital adequacy ratio	-	-	24.8	364	(6.5)	18.3

1  The reasonably possible ranges of the long-term profit growth rate and long-term asset growth rate assumptions reflect the close relationship between these assumptions, which would result in offsetting changes to each assumption.

Considering the interrelationship of the changes set out in the table above, management estimates that the reasonably possible range of VIU is $16.9bn to $28.7bn (2021: $19.0bn to $29.3bn). The range is based on impacts set out in the table above arising from the favourable/unfavourable change in the earnings in the short to medium term, the long-term expected credit losses as a percentage of customer advances, and a 50bps increase/decrease in the discount rate. All other long-term assumptions and the basis of the CMC have been kept unchanged when determining the reasonably possible range of the VIU. Impairment, if determined, would be recognised in the income statement. The impact on the Group's CET1 ratio is expected to be minimal in the event of an impairment, as the adverse impact on CET1 capital from the impairment would be offset by the favourable impact from a lower carrying value.

Selected financial information of BoCom

The statutory accounting reference date of BoCom is 31 December. For the year ended 31 December 2022, HSBC included the associate's results on the basis of the financial statements for the 12 months ended 30 September 2022, taking into account any known changes in the subsequent period from 1 October 2022 to 31 December 2022 that would have materially affected the results.

Selected balance sheet information of BoCom
		At 30  Sep
		2022	2021
		$m	$m
Cash and balances at central banks		114,390	123,194
Due from and placements with banks and other financial institutions		99,802	98,932
Loans and advances to customers		1,022,223	993,956
Other financial assets		549,364	541,577
Other assets		55,884	47,679
Total assets		1,841,663	1,805,338
Due to and placements from banks and other financial institutions		277,185	287,057
Deposits from customers		1,144,297	1,099,266
Other financial liabilities		237,521	228,135
Other liabilities		35,543	40,070
Total liabilities		1,694,546	1,654,528
Total equity		147,117	150,810

Reconciliation of BoCom's total shareholders' equity to the carrying amount in HSBC's consolidated financial statements
	At 30 Sep
	2022	2021
	$m	$m
HSBC's share of total shareholders' equity	22,828	23,097
Goodwill	479	519
Carrying amount	23,307	23,616

Selected income statement information of BoCom
	For the 12 months ended 30 Sep
	2022	2021
	$m	$m
Net interest income	25,314	24,582
Net fee and commission income	6,854	7,170
Credit and impairment losses	(9,712)	(9,701)
Depreciation and amortisation	(2,351)	(2,297)
Tax expense	(598)	(1,045)
Profit for the year	13,582	14,199
Other comprehensive income	(245)	(368)
Total comprehensive income	13,337	13,831
Dividends received from BoCom	749	692

The Saudi British Bank

The Group's investment in The Saudi British Bank ('SABB') is classified as an associate. HSBC is the largest shareholder in SABB with a shareholding of 31%. Significant influence in SABB is established via representation on the Board of Directors. Investments in associates are recognised using the equity method of accounting in accordance with IAS 28, as described previously for BoCom.

Impairment testing

There were no indicators of impairment at 31 December 2022. The fair value of the Group's investment in SABB of $6.6bn was above the carrying amount of $4.5bn.

19	Investments in subsidiaries

Main subsidiaries of HSBC Holdings1
	At 31 Dec 2022
	Place of incorporation or registration	HSBC's interest %
			Share class
Europe
HSBC Bank plc	England and Wales	100	£1 Ordinary, $0.01 Non-Cumulative Third Dollar Preference
HSBC UK Bank plc	England and Wales	100	£1 Ordinary
HSBC Continental Europe	France	99.99	€5 Actions
HSBC Trinkaus & Burkhardt GmbH	Germany	99.99	€1 Ordinary
Asia
Hang Seng Bank Limited	Hong Kong	62.14	HK$5 Ordinary
HSBC Bank (China) Company Limited	People's Republic of China	100	CNY1 Ordinary
HSBC Bank Malaysia Berhad	Malaysia	100	RM0.5 Ordinary
HSBC Life (International) Limited	Bermuda	100	HK$1 Ordinary
The Hongkong and Shanghai Banking Corporation Limited	Hong Kong	100	Ordinary no par value
Middle East and North Africa
HSBC Bank Middle East Limited	United Arab Emirates	100	$1 Ordinary and $1 Cumulative Redeemable Preference shares
North America
HSBC Bank Canada	Canada	100	Common no par value and Preference no par value
HSBC Bank USA, N.A.	US	100	$100 Common and $0.01 Preference
Latin America
HSBC Mexico, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC	Mexico	99.99	MXN2 Ordinary

1  Main subsidiaries are either held directly or indirectly via intermediate holding companies.

Details of the debt, subordinated debt and preference shares issued by the main subsidiaries to parties external to the Group are included in Note 26 'Debt securities in issue' and Note 29 'Subordinated liabilities', respectively.

A list of all related undertakings is set out in Note 38 . The principal countries of operation are the same as the countries and territories of incorporation except for HSBC Life (International) Limited, which operates mainly in Hong Kong.

HSBC is structured as a network of regional banks and locally incorporated regulated banking entities. Each bank is separately capitalised in accordance with applicable prudential requirements and maintains a capital buffer consistent with the Group's risk appetite for the relevant country or region. HSBC's capital management process is incorporated in the annual operating plan, which is approved by the Board.

HSBC Holdings is the primary provider of equity capital to its subsidiaries and also provides them with non-equity capital where necessary. These investments are substantially funded by HSBC Holdings' issuance of equity and non-equity capital, and by profit retention.

As part of its capital management process, HSBC Holdings seeks to maintain a balance between the composition of its capital and its investment in subsidiaries. Subject to this, there is no current or foreseen impediment to HSBC Holdings' ability to provide funding for such investments. During 2022, consistent with the Group's capital plan, the Group's subsidiaries did not experience any significant restrictions on paying dividends or repaying loans and advances. Also, there are no foreseen restrictions envisaged with regard to planned dividends or payments. However, the ability of subsidiaries to pay dividends or advance monies to HSBC Holdings depends on, among other things, their respective local regulatory capital and banking requirements, exchange controls, statutory reserves, and financial and operating performance.

The amount of guarantees by HSBC Holdings in favour of other Group entities is set out in Note 33.

Information on structured entities consolidated by HSBC where HSBC owns less than 50% of the voting rights is included in Note 20 'Structured entities'. In each of these cases, HSBC controls and consolidates an entity when it is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

Impairment testing of investments in subsidiaries

At each reporting period end, HSBC Holdings reviews investments in subsidiaries for indicators of impairment. An impairment is recognised when the carrying amount exceeds the recoverable amount for that investment. The recoverable amount is the higher of the investment's fair value less costs of disposal and its VIU, in accordance with the requirements of IAS 36. The VIU is calculated by discounting management's cash flow projections for the investment. The cash flows represent the free cash flows based on the subsidiary's binding capital requirements.

We used a number of assumptions in our VIU calculation, in accordance with the requirements of IAS 36:

• Management's judgement in estimating future cash flows: The cash flow projections for each investment are based on the latest approved plans, which include forecast capital available for distribution based on the capital requirements of the subsidiary, taking into account minimum and core capital requirements. For the impairment test at 31 December 2022, cash flow projections until the end of 2027 were considered in line with our internal planning horizon.  Our cash flow projections include known and observable climate-related opportunities and costs associated with our sustainable products and operating model.

• Long-term growth rates: A long-term growth rate is used to extrapolate the free cash flows in perpetuity. The growth rate reflects inflation for the country or territory within which the investment operates, and is based on the long-term average growth rates.

• Discount rates: The rate used to discount the cash flows is based on the cost of capital assigned to each investment, which is derived using a CAPM. CAPM depends on a number of inputs reflecting financial and economic variables, including the risk-free rate and a premium to reflect the inherent risk of the business being evaluated. These variables are based on the market's assessment of the economic variables and management's judgement. The discount rates for each investment are refined to reflect the rates of inflation for the countries or territories within which the investment operates. In addition, for the purposes of testing investments for impairment, management supplements this process by comparing the discount rates derived using the internally generated CAPM, with cost of capital rates produced by external sources for businesses operating in similar markets. The impacts from climate risk are included to the extent that they are observable in discount rates and asset prices.

The net increase in investments in subsidiaries was partly due to the reversal of impairment of HSBC Overseas Holdings (UK) Limited of $2.5bn. The recoverable amount of HSBC Overseas Holdings (UK) Limited is supported by the recoverable amounts of its subsidiaries, of which the principal subsidiaries are HSBC North America Holdings Limited, HSBC Bank Canada and HSBC Bank Bermuda Limited. As HSBC Overseas Holdings (UK) Limited has entered into a sales purchase agreement with Royal Bank of Canada to dispose of HSBC Bank Canada the sales purchase agreement has been used to support the recoverable amount of $10.8bn (inclusive of the preferred shares) under a fair value less costs of disposal basis. The fair value less costs of disposal of HSBC Bank Canada is at a $3.7bn premium to the book value recorded in HSBC Overseas Holdings (UK) Limited. The cumulative impairment for HSBC Overseas Holdings (UK) Limited at 31 December 2022 was $4.7bn (2021: $7.2bn). The carrying value was $32.8bn at 31 December 2022 (2021: $33.1bn). In 2022, in addition to the planned sale of our banking business in Canada, there has been demonstrable performance of the underlying subsidiaries and an increase in interest rate forecasts. These factors provide us with observable indications that HSBC Overseas Holdings (UK) Limited's value has increased, which has led to the reversal of impairment in HSBC Holdings. However, a distribution of the proceeds from the planned sale of HSBC Bank Canada to HSBC Holdings from HSBC Overseas Holdings (UK) Limited could lead to a future impairment.

Impairment test results
Investments	Recoverable amount	Discount rate	Long-term growth
At 31 Dec 2022	$m	%	%
HSBC North America Holdings Limited	18,363	10.00	2.22
HSBC Bank Bermuda Limited HSBC Bank Bermuda Limited	2,471	10.40	1.87
At 31 Dec 2021
HSBC North America Holdings Limited	20,560	9.20	3.50
HSBC Bank Bermuda Limited	1,643	9.50	1.71

Sensitivities of key assumptions in calculating VIU

At 31 December 2022, the recoverable amount of HSBC Overseas Holdings (UK) Limited remained sensitive to reasonably possible changes in key assumptions impacting its principal subsidiaries, notably HSBC North America Holdings Limited and HSBC Bank Bermuda Limited.

In making an estimate of reasonably possible changes to assumptions, management considers the available evidence in respect of each input to the model. These include the external range of observable discount rates, historical performance against forecast, and risks attaching to the key assumptions underlying cash flow.

The following table presents a summary of the key assumptions underlying the most sensitive inputs to the model for HSBC North America Holdings Limited and HSBC Bank Bermuda Limited, the key risks attaching to each, and details of a reasonably possible change to assumptions where, in the opinion of management, these could result in an impairment.

Reasonably possible changes in key assumptions
Investment
HSBC North America Holdings Limited and HSBC Bank Bermuda Limited (subsidiaries of HSBC Overseas Holdings (UK) Limited)	Free cash flows projections	• Level of interest rates and yield curves. • Competitors' positions within the market.	• Strategic actions relating to revenue and costs are not achieved.	• Free cash flow projections decrease by 10%.
	Discount rate	• Discount rate used is a reasonable estimate of a suitable market rate for the profile of the business. •	• External evidence arises to suggest that the rate used is not appropriate to the business.	• Discount rate increases by 1%.

Sensitivity of VIU to reasonably possible changes in key assumptions
In $bn (unless otherwise stated)	HSBC North America Holdings Limited	HSBC Bank Bermuda Limited
At 31 December 2022
VIU	18.4	2.5
Impact on VIU
100bps increase in the discount rate - single variable1	(1.7)	(0.2)
10% decrease in forecast profitability - single variable1	(1.8)	(0.2)

1  The recoverable amount of HSBC Overseas Holding (UK) Limited represents the aggregate of recoverable amounts of the underlying subsidiaries. Single variable sensitivity analysis on a single subsidiary may therefore not be representative of the aggregate impact of the change in the variable.

Subsidiaries with significant non-controlling interests
	2022	2021
Hang Seng Bank Limited
Proportion of ownership interests and voting rights held by non-controlling interests	37.86%	37.86%
Place of business	Hong Kong	Hong Kong
	$m	$m
Profit attributable to non-controlling interests	520	708
Accumulated non-controlling interests of the subsidiary	7,683	7,597
Dividends paid to non-controlling interests	361	568
Summarised financial information:
-  total assets	240,679	230,866
-  total liabilities	218,892	209,315
-  net operating income before changes in expected credit losses and other credit impairment charges	4,325	4,280
-  profit for the year	1,375	1,872
-  total comprehensive income for the year	1,269	1,686

20	Structured entities

HSBC is mainly involved with both consolidated and unconsolidated structured entities through the securitisation of financial assets, conduits and investment funds, established either by HSBC or a third party.

Consolidated structured entities

Total assets of HSBC's consolidated structured entities, split by entity type
	Conduits	Securitisations	HSBC managed funds	Other	Total
	$bn	$bn	$bn	$bn	$bn
At 31 Dec 2022	4.2	7.2	4.8	7.5	23.7
At 31 Dec 2021	4.4	10.0	6.3	8.4	29.1

Conduits

HSBC has established and manages two types of conduits: securities investment conduits ('SICs') and multi-seller conduits.

Securities investment conduits

The SICs purchase highly rated ABSs to facilitate tailored investment opportunities.

• At 31 December 2022, Solitaire, HSBC's principal SIC, held $1.3bn of ABSs (2021: $1.6bn). It is currently funded entirely by commercial paper ('CP') issued to HSBC. At 31 December 2022, HSBC held $1.5bn of CP (2021: $1.8bn).

Multi-seller conduit

HSBC's multi-seller conduit was established to provide access to flexible market-based sources of finance for its clients. Currently, HSBC bears risk equal to the transaction-specific facility offered to the multi-seller conduit, amounting to $6.2bn at 31 December 2022 (2021: $6.7bn). First loss protection is provided by the originator of the assets, and not by HSBC, through transaction-specific credit enhancements. A layer of secondary loss protection is provided by HSBC in the form of programme-wide enhancement facilities.

Securitisations

HSBC uses structured entities to securitise customer loans and advances it originates in order to diversify its sources of funding for asset origination and capital efficiency purposes. The loans and advances are transferred by HSBC to the structured entities for cash or synthetically through credit default swaps, and the structured entities issue debt securities to investors.

HSBC managed funds

HSBC has established a number of money market and non-money market funds. Where it is deemed to be acting as principal rather than agent in its role as investment manager, HSBC controls these funds.

Other

HSBC has entered into a number of transactions in the normal course of business, which include asset and structured finance transactions where it has control of the structured entity. In addition, HSBC is deemed to control a number of third-party managed funds through its involvement as a principal in the funds.

Unconsolidated structured entities

The term 'unconsolidated structured entities' refers to all structured entities not controlled by HSBC. The Group enters into transactions with unconsolidated structured entities in the normal course of business to facilitate customer transactions and for specific investment opportunities.

Nature and risks associated with HSBC interests in unconsolidated structured entities
	Securitisations	HSBC managed funds	Non-HSBC managed funds	Other	Total
Total asset values of the entities ($m)
0-500	85	338	1,321	41	1,785
500-2,000	8	102	929	4	1,043
2,000-5,000	-	28	388	-	416
5,000-25,000	-	18	206	-	224
25,000+	-	5	24	-	29
Number of entities at 31 Dec 2022	93	491	2,868	45	3,497
	$bn	$bn	$bn	$bn	$bn
Total assets in relation to HSBC's interests in the unconsolidated structured entities	2.5	10.7	19.7	2.6	35.5
-  trading assets	-	0.4	0.1	-	0.5
-  financial assets designated and otherwise mandatorily measured at fair value	-	9.7	18.7	-	28.4
-  loans and advances to customers	2.5	-	0.5	1.9	4.9
-  financial investments	-	0.6	0.4	-	1.0
-  other assets	-	-	-	0.7	0.7
Total liabilities in relation to HSBC's interests in the unconsolidated structured entities	-	-	-	0.4	0.4
-  other liabilities	-	-	-	0.4	0.4
Other off-balance sheet commitments	0.2	1.5	4.6	1.8	8.1
HSBC's maximum exposure at 31 Dec 2022	2.7	12.2	24.3	4.0	43.2
Total asset values of the entities ($m)
0-500	96	294	1,408	37	1,835
500-2,000	11	116	911	3	1,041
2,000-5,000	-	33	435	-	468
5,000-25,000	-	14	197	-	211
25,000+	-	4	11	-	15
Number of entities at 31 Dec 2021	107	461	2,962	40	3,570
	$bn	$bn	$bn	$bn	$bn
Total assets in relation to HSBC's interests in the unconsolidated structured entities	4.8	10.8	18.6	3.8	38.0
-  trading assets	-	0.2	2.4	0.1	2.7
-  financial assets designated and otherwise mandatorily measured at fair value	-	10.0	15.5	-	25.5
-  loans and advances to customers	4.8	-	0.1	3.0	7.9
-  financial investments	-	0.6	0.6	-	1.2
-  other assets	-	-	-	0.7	0.7
Total liabilities in relation to HSBC's interests in the unconsolidated structured entities	-	-	-	0.4	0.4
-  other liabilities	-	-	-	0.4	0.4
Other off-balance sheet commitments	0.1	0.9	4.6	1.2	6.8
HSBC's maximum exposure at 31 Dec 2021	4.9	11.7	23.2	4.6	44.4

The maximum exposure to loss from HSBC's interests in unconsolidated structured entities represents the maximum loss it could incur as a result of its involvement with these entities regardless of the probability of the loss being incurred.

• For commitments, guarantees and written credit default swaps, the maximum exposure to loss is the notional amount of potential future losses.

• For retained and purchased investments and loans to unconsolidated structured entities, the maximum exposure to loss is the carrying value of these interests at the balance sheet reporting date.

The maximum exposure to loss is stated gross of the effects of hedging and collateral arrangements that HSBC has entered into in order to mitigate the Group's exposure to loss.

Securitisations

HSBC has interests in unconsolidated securitisation vehicles through holding notes issued by these entities. In addition, HSBC has investments in ABSs issued by third-party structured entities.

HSBC managed funds

HSBC establishes and manages money market funds and non-money market investment funds to provide customers with investment opportunities. Further information on funds under management is provided on page 115.

HSBC, as fund manager, may be entitled to receive management and performance fees based on the assets under management. HSBC may also retain units in these funds.

Non-HSBC managed funds

HSBC purchases and holds units of third-party managed funds in order to facilitate business and meet customer needs.

Other

HSBC has established structured entities in the normal course of business, such as structured credit transactions for customers, to provide finance to public and private sector infrastructure projects, and for asset and structured finance transactions.

In addition to the interests disclosed above, HSBC enters into derivative contracts, reverse repos and stock borrowing transactions with structured entities. These interests arise in the normal course of business for the facilitation of third-party transactions and risk management solutions.

HSBC sponsored structured entities

The amount of assets transferred to and income received from such sponsored structured entities during 2022 and 2021 was not significant.

21	Goodwill and intangible assets

	2022	2021
	$m	$m
Goodwill	4,156	5,033
Present value of in-force long-term insurance business	9,900	9,453
Other intangible assets1	7,265	6,136
At 31 Dec	21,321	20,622

1  Included within other intangible assets is internally generated software with a net carrying value of $6,166m (2021: $5,430m). During the year, capitalisation of internally generated software was $2,663m (2021: $2,373m), impairment was $125m (2021: $137m) and amortisation was $1,447m (2021: $1,183m).

1 

Movement analysis of goodwill
	2022	2021
	$m	$m
Gross amount
At 1 Jan	22,215	23,135
Exchange differences	(776)	(905)
Reclassified to held for sale and additions1	(2,485)	-
Other	11	(15)
At 31 Dec	18,965	22,215
Accumulated impairment losses
At 1 Jan	(17,182)	(17,254)
Impairment losses2	-	(587)
Exchange differences	482	659
Reclassified to held for sale1	1,891	-
At 31 Dec	(14,809)	(17,182)
Net carrying amount at 31 Dec	4,156	5,033

1  Includes goodwill allocated to disposal groups as a result of the planned sales of our retail banking operations in France, banking business in Canada and branch operations in Greece, offset by goodwill arising from the acquisition of L&T Investment Management Limited. For further details, see Note 23.

2  Full impairment of goodwill allocated to Latin America - WPB.

2 

Goodwill

Impairment testing

The Group's impairment test in respect of goodwill allocated to each cash-generating unit ('CGU') is performed at 1 October each year. A review for indicators of impairment is undertaken at each subsequent quarter-end and at 31 December 2022. No indicators of impairment were identified as part of these reviews.

Basis of the recoverable amount

The recoverable amount of all CGUs to which goodwill has been allocated was equal to its value in use ('VIU') at each respective testing date. The VIU is calculated by discounting management's cash flow projections for the CGU. The key assumptions used in the VIU calculation for each individually significant CGU that is not impaired are discussed below.

Key assumptions in VIU calculation - significant CGUs at 1 October 2022
	Carrying amount at 1 Oct 2022	of which goodwill	Value in use at 1 Oct 2022	Discount rate	Growth rate beyond initial cash flow	Carrying amount at 1 Oct 2021	of which goodwill	Value in use at 1 Oct 2021	Discount rate	Growth rate beyond initial cash flow projections
	$m	$m	$m	%	%	$m	$m	$m	%	%
Europe - WPB	15,215	2,643	46,596	9.9	2.0	18,780	3,556	29,799	9.2	1.8

At 1 October 2022, aggregate goodwill of $1,464m (1 October 2021: $2,108m) had been allocated to CGUs that were not considered individually significant. The Group's CGUs do not carry on their balance sheets any significant intangible assets with indefinite useful lives, other than goodwill.

Management's judgement in estimating the cash flows of a CGU

The cash flow projections for each CGU are based on forecast profitability plans approved by the Board and minimum capital levels required to support the business operations of a CGU. The Board challenges and endorses planning assumptions in light of internal capital allocation decisions necessary to support our strategy, current market conditions and macroeconomic outlook. For the 1 October 2022 impairment test, cash flow projections until the end of 2027 were considered, in line with our internal planning horizon. Key assumptions underlying cash flow projections reflect management's outlook on interest rates and inflation, as well as business strategy, including the scale of investment in technology and automation. Our cash flow projections include known and observable climate-related opportunities and costs associated with our sustainable products and operating model. As required by IFRSs, estimates of future cash flows exclude estimated cash inflows or outflows that are expected to arise from restructuring initiatives before an entity has a constructive obligation to carry out the plan, and would therefore have recognised a provision for restructuring costs.

Discount rate

The rate used to discount the cash flows is based on the cost of equity assigned to each CGU, which is derived using a capital asset pricing model ('CAPM') and market implied cost of equity. CAPM depends on a number of inputs reflecting financial and economic variables, including the risk-free rate and a premium to reflect the inherent risk of the business being evaluated. These variables are based on the market's assessment of the economic variables and management's judgement. The discount rates for each CGU are refined to reflect the rates of inflation for the countries within which the CGU operates. In addition, for the purposes of testing goodwill for impairment, management supplements this process by comparing the discount rates derived using the internally generated CAPM, with the cost of equity rates produced by external sources for businesses operating in similar markets. The impacts of climate-risk are included to the extent that they are observable in discount rates and asset prices.

Long-term growth rate

The long-term growth rate is used to extrapolate the cash flows in perpetuity because of the long-term perspective within the Group of business units making up the CGUs. These growth rates reflect inflation for the countries within which the CGU operates or from which it derives revenue.

Sensitivities of key assumptions in calculating VIU

At 1 October 2022, given the extent by which VIU exceeds carrying amount, the Europe - WPB CGU was not sensitive to reasonably possible adverse changes in key assumptions supporting the recoverable amount. In making an estimate of reasonably possible changes to assumptions, management considers the available evidence in respect of each input to the VIU calculation, such as the external range of discount rates observable, historical performance against forecast and risks attaching to the key assumptions underlying cash flow projections. None of the remaining CGUs are individually significant.

Other intangible assets

Impairment testing

Impairment of other intangible assets is assessed in accordance with our policy explained in Note 1.2(n) by comparing the net carrying amount of CGUs containing intangible assets with their recoverable amounts. Recoverable amounts are determined by calculating an estimated VIU or fair value, as appropriate, for each CGU. No significant impairment was recognised during the year.

Key assumptions in VIU calculation

We used a number of assumptions in our VIU calculation, in accordance with the requirements of IAS 36:

• Management's judgement in estimating future cash flows: We considered past business performance, current market conditions and our macroeconomic outlook to estimate future earnings. As required by IFRSs, estimates of future cash flows exclude estimated cash inflows or outflows that are expected to arise from restructuring initiatives before an entity has a constructive obligation to carry out the plan, and would therefore have recognised a provision for restructuring costs. For some businesses, this means that the benefit of certain strategic actions may not be included in the impairment assessment, including capital releases. Our cash flow projections include known and observable climate-related opportunities and costs associated with our sustainable products and operating model.

• Long-term growth rates: The long-term growth rate is used to extrapolate the cash flows in perpetuity because of the long-term perspective of the businesses within the Group.

• Discount rates: Rates are based on a combination of CAPM and market-implied calculations considering market data for the businesses and geographies in which the Group operates. The impacts of climate-risk are included to the extent that they are observable in discount rates and asset prices.

Future software capitalisation

We will continue to invest in digital capabilities to meet our strategic objectives. However, software capitalisation within businesses where impairment was identified will not resume until the performance outlook for each business indicates future profits are sufficient to support capitalisation. The cost of additional software investment in these businesses will be recognised as an operating expense until such time.

Sensitivity of estimates relating to non-financial assets

As explained in Note 1.2(a), estimates of future cash flows for CGUs are made in the review of goodwill and non-financial assets for impairment. Non-financial assets include other intangible assets shown above, and owned property, plant and equipment and right-of-use assets (see Note 22). The most significant sources of estimation uncertainty are in respect of the goodwill balances disclosed above. There are no non-financial asset balances relating to individual CGUs which involve estimation uncertainty that represents a significant risk of resulting in a material adjustment to the results and financial position of the Group within the next financial year.

Non-financial assets are widely distributed across CGUs within the legal entities of the Group, including Corporate Centre assets that cannot be allocated to CGUs and are therefore tested for impairment at consolidated level. The recoverable amounts of other intangible assets, owned property, plant and equipment, and right-of-use assets cannot be lower than individual asset fair values less costs to dispose, where relevant. At 31 December 2022, none of the CGUs were sensitive to reasonably possible adverse changes in key assumptions supporting the recoverable amount. In making an estimate of reasonably possible changes to assumptions, management considers the available evidence in respect of each input to the VIU calculation, such as the external range of discount rates observable, historical performance against forecast and risks attaching to the key assumptions underlying cash flow projections.

Present value of in-force long-term insurance business

When calculating the present value of in-force long-term ('PVIF') insurance business, expected cash flows are projected after adjusting for a variety of assumptions made by each insurance operation to reflect local market conditions, and management's judgement of future trends and uncertainty in the underlying assumptions is reflected by applying margins (as opposed to a cost of capital methodology) including valuing the cost of policyholder options and guarantees using stochastic techniques.

Financial Reporting Committees of each key insurance entity meet on a quarterly basis to review and approve PVIF assumptions. All changes to non-economic assumptions, economic assumptions that are not observable and model methodologies must be approved by the Financial Reporting Committee.

Movements in PVIF
	2022	2021
	$m	$m
At 1 Jan	9,453	9,435
Acquisitions	271	-
Change in PVIF of long-term insurance business	263	130
-  value of new business written during the year	1,322	1,090
-  expected return1	(785)	(903)
-  assumption changes and experience variances (see below)	(252)	(105)
-  other adjustments	(22)	48
Exchange differences and other movements	(87)	(112)
At 31 Dec	9,900	9,453

1  'Expected return' represents the unwinding of the discount rate and reversal of expected cash flows for the period.

1 

Assumption changes and experience variances

Included within this line item are:

• $875m decrease (2021: $59m increase) in PVIF due to rising interest rates, which is directly offset within the valuation of liabilities under insurance contracts;

• $72m decrease (2021: $324m decrease) reflecting the future expected sharing of returns with policyholders on contracts with discretionary participation features ('DPF'), to the extent this sharing is not already included in liabilities under insurance contracts; and

• $695m increase (2021: $160m increase) driven by other assumptions changes and experience variances.

Key assumptions used in the computation of PVIF for main life insurance operations

Economic assumptions are set in a way that is consistent with observable market values. The valuation of PVIF is sensitive to observed market movements and the impact of such changes is included in the sensitivities presented below.

	2022		2021
	Hong Kong	France1	Hong Kong	France1
	%	%	%	%
Weighted average risk-free rate	3.85	2.80	1.40	0.69
Weighted average risk discount rate	7.33	4.44	5.20	1.55
Expense inflation	3.00	4.26	3.00	1.80

1  For 2022, the calculation of France's PVIF assumes a risk discount rate of 4.44% (2021: 1.55%) plus a risk margin of $100m (2021: $215m).

1 

Sensitivity to changes in economic assumptions

The Group sets the risk discount rate applied to the PVIF calculation by starting from a risk-free rate curve and adding explicit allowances for risks not reflected in the best-estimate cash flow modelling. Where the insurance operations provide options and guarantees to policyholders, the cost of these options and guarantees is accounted for as a deduction from the PVIF asset, unless the cost of such guarantees is already allowed for as an explicit addition to liabilities under insurance contracts. For further details of these guarantees and the impact of changes in economic assumptions on our insurance manufacturing subsidiaries, see page 237.

Sensitivity to changes in non-economic assumptions

Policyholder liabilities and PVIF are determined by reference to non-economic assumptions, including mortality and/or morbidity, lapse rates and expense rates. For further details on the impact of changes in non-economic assumptions on our insurance manufacturing operations, see page 238.

22	Prepayments, accrued income and other assets

	2022	2021
	$m	$m
Prepayments and accrued income	10,316	8,233
Settlement accounts	19,565	17,713
Cash collateral and margin receivables	63,421	42,171
Bullion	15,752	15,283
Endorsements and acceptances	8,407	11,229
Reinsurers' share of liabilities under insurance contracts (Note 4)	4,257	3,668
Employee benefit assets (Note 5)	7,282	10,269
Right-of-use assets	2,219	2,985
Owned property, plant and equipment	10,365	10,255
Other accounts	15,282	14,765
At 31 Dec	156,866	136,571

Prepayments, accrued income and other assets include $113,383m (2021: $91,045m) of financial assets, the majority of which are measured at amortised cost.

23	Assets held for sale and liabilities of disposal groups held for sale

	2022	2021
	$m	$m
Held for sale at 31 December
Disposal groups	118,055	2,921
Unallocated impairment losses1	(2,385)	-
Non-current assets held for sale	249	490
Assets held for sale	115,919	3,411
Liabilities of disposal groups held for sale	114,597	9,005

1  This represents impairment losses in excess of the carrying value of the non-current assets, excluded from the measurement scope of IFRS 5.  

Disposal groups

Planned sale of our retail banking operations in France

On 25 November 2021, HSBC Continental Europe signed a framework agreement with Promontoria MMB SAS ('My Money Group') and its subsidiary Banque des Caraïbes SA, regarding the planned sale of HSBC Continental Europe's retail banking operations in France. The sale, which is subject to regulatory approvals and the satisfaction of other relevant conditions, includes: HSBC Continental Europe's French retail banking operations; the Crédit Commercial de France ('CCF') brand; and HSBC Continental Europe's 100% ownership interest in HSBC SFH (France) and its 3% ownership interest in Crédit Logement.

The framework agreement has a long-stop date of 31 May 2024, if the sale has not closed by that point, the agreement will terminate, although that date can be extended by either party to 30 November 2024 in certain circumstances or with the agreement of both parties. We have agreed a detailed plan with My Money Group with the aim of completing the sale in the second half of 2023, subject to regulatory approvals, agreement and implementation of necessary financing structures, and the completion of the operational transfer, including customer and data migrations. In this regard the framework agreement imposes certain obligations on the parties in planning for completion.

Given the scale and complexity of the business being sold, there is risk of delay in the implementation of this plan. The disposal group was classified as held for sale for the purposes of IFRS 5 as at 30 September 2022, reflecting the prevailing judgements concerning likelihood of the framework agreement's timetable being achieved. The assets and liabilities classified as held for sale were determined in accordance with the framework agreement, and are subject to change as the detailed transition plan is executed. This classification and consequential remeasurement resulted in an impairment loss of $2.4bn, which included impairment of goodwill of $0.4bn and related transaction costs. At 31 December 2022, we reassessed the likelihood of completion, taking account of the most recent correspondence with My Money Group concerning the implementation of the plan and related developments. As a result of this reassessment, the likelihood of completion in 2023 is judged to be highly probable. As such, and in accordance with IFRS 5, the disposal group continues to be classified as held for sale.

The disposal group will be remeasured at the lower of the carrying amount and fair value less costs to sell at each reporting period. Any remaining gains or losses not previously recognised, including from the recycling of foreign currency translation reserves and the reversal of any remaining deferred tax assets and liabilities, will be recognised on completion.

Planned sale of our banking business in Canada

On 29 November 2022, HSBC Holdings plc announced its wholly-owned subsidiary, HSBC Overseas Holdings (UK) Limited, entered into an agreement for the planned sale of its banking business in Canada to Royal Bank of Canada. Completion of the transaction is expected in late 2023, subject to regulatory and governmental approval.

The majority of the estimated gain on sale of $5.7bn (inclusive of the recycling of an estimated $0.6bn of accumulated foreign currency translation reserve losses) will be recognised on completion, reduced by earnings recognised by the Group in the period to completion. The estimated pre-tax profit on the sale will be recognised through a combination of the consolidation of HSBC Canada's results into the Group's financial statements (between the 30 June 2022 net asset reference date and until completion), and the remaining gain on sale recognised at completion. There would be no tax on the gain recognised at completion. At 31 December 2022, total assets of $90bn and total liabilities of $85bn met the criteria to be classified as held for sale in accordance with IFRS 5.

Planned sale of our branch operations in Greece

On 24 May 2022, HSBC Continental Europe signed a sale and purchase agreement for the planned sale of its branch operations in Greece to Pancreta Bank SA. Completion of the transaction is subject to regulatory approval, and is currently expected to occur in the first half of 2023. At 31 December 2022, the disposal group included $0.4bn of loans and advances to customers and $2.3bn of customer accounts, which met the criteria to be classified as held for sale. In the second quarter of 2022, we recognised a loss of $0.1bn, including goodwill impairment, upon reclassification as held for sale in accordance with IFRS 5. On completion accumulated foreign currency translation reserves will be recycled to the income statement.

Planned sale of our business in Russia

On 30 June 2022, following a strategic review of our business in Russia, HSBC Europe BV (a wholly-owned subsidiary of HSBC Bank plc) entered into an agreement for the planned sale of its wholly-owned subsidiary HSBC Bank (RR) (Limited Liability Company). Completion of the transaction is subject to regulatory and governmental approval, and is currently expected to occur in the first half of 2023. In 2022, a $0.3bn loss on the planned sale was recognised, upon reclassification as held for sale in accordance with IFRS 5. On completion accumulated foreign currency translation reserves will be recycled to the income statement.

At 31 December 2022, the major classes of assets and associated liabilities of disposal groups held for sale, including allocated impairment losses, were as follows:

	Canada	Retail banking operations in France	Other	Total
	$m	$m	$m	$m
Assets of disposal groups held for sale
Cash and balances at central banks	4,664	71	1,811	6,546
Trading assets	3,168	-	8	3,176
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss	13	47	1	61
Derivatives	866	-	-	866
Loans and advances to banks	99	-	154	253
Loans and advances to customers	55,197	25,029	350	80,576
Reverse repurchase agreements - non-trading	4,396	-	250	4,646
Financial investments1	17,243	-	106	17,349
Goodwill	225	-	-	225
Prepayments, accrued income and other assets	4,256	75	26	4,357
Total assets at 31 December 2022	90,127	25,222	2,706	118,055
Liabilities of disposal groups held for sale
Trading liabilities	2,751	-	3	2,754
Deposits by banks	62	-	2	64
Customer accounts	60,606	22,348	2,320	85,274
Repurchase agreements - non-trading	3,266	-	-	3,266
Financial liabilities designated at fair value	-	3,523	-	3,523
Derivatives	806	7	-	813
Debt securities in issue	11,602	1,326	-	12,928
Subordinated liabilities	8	-	-	8
Accruals, deferred income and other liabilities	5,727	159	81	5,967
Total liabilities at 31 December 2022	84,828	27,363	2,406	114,597
Expected date of completion	Second half of 2023	Second half of 2023
Operating segment	All global  businesses	WPB

1  Includes financial investments measured at fair value through other comprehensive income of $11,184m and debt instruments measured at amortised cost of $6,165m

	Retail banking operations in France
	$m
Net assets/(liabilities) classified as held for sale1	(2,063)
Expected cash contribution 2	4,094
Disposal group post-cash contribution 3	2,031

1  Excludes impairment loss allocated against the non-current assets that are in scope of IFRS 5 measurement of $78m.

2  The contributions are reported within 'Cash and balances at central banks' on the Group's consolidated balance sheet.

3  'Disposal group post-cash contribution' includes the net asset value of the transferring business of €1.6bn ($1.8bn) and $0.2bn of additional items to which a nil value is ascribed per the framework agreement.

Under the financial terms of the planned transaction, HSBC Continental Europe will transfer the business with a net asset value of €1.6bn ($1.8bn), subject to adjustment (upwards or downwards) in certain circumstances, for a consideration of €1. Any required increase to the net asset value of the business to achieve the net asset value of €1.6bn ($1.8bn) will be satisfied by the inclusion of additional cash. The value of cash contribution will be determined by the net asset or liability position of the disposal group at the point of completion. Based upon the net liabilities of the disposal group at 31 December 2022, HSBC would be expected to include a cash contribution of $4.1bn as part of the planned transaction.

Completed business disposals

Mass market retail banking business in the US

On 26 May 2021, we announced our intention to exit our mass market retail banking business in the US, including our Personal and Advance propositions, as well as retail business banking, and rebranding approximately 20 to 25 of our retail branches into international wealth centres to serve our Premier and Jade customers. In conjunction with the execution of this strategy, HSBC Bank USA, N.A. entered into definitive sale agreements with Citizens Bank and Cathay Bank to sell 90 of our retail branches along with substantially all residential mortgage, unsecured and retail business banking loans and all deposits in our branch network not associated with our Premier, Jade and Private Banking customers. As a result of entering into these sale agreements, assets and liabilities related to the agreements were transferred to held for sale during the second quarter of 2021.

In February 2022, we completed the sale of the branch disposal group and recognised a net gain on sale of $0.2bn (including subsequent closing adjustments). Included in the sale were $2.1bn of loans and advances to customers and $6.9bn of customer accounts. Certain assets under management associated with our mass market retail banking operations were also transferred. The remaining branches not sold or rebranded have been closed.

Business acquisitions

The following acquisitions form part of our strategy to become a market leader in Asian wealth management:

• On 28 January 2022, HSBC Insurance (Asia-Pacific) Holdings Limited, a subsidiary of the Group, notified the shareholders of Canara HSBC Life Insurance Company Limited ('Canara HSBC') of its intention to increase its shareholding in Canara HSBC up to 49%. HSBC currently has a 26% shareholding, which is accounted for as an associate. Any increase in shareholding is subject to agreement with other shareholders in Canara HSBC, as well as internal and regulatory approvals. Established in 2008, Canara HSBC is a life insurance company based in India.

• On 11 February 2022, HSBC Insurance (Asia-Pacific) Holdings Limited completed the acquisition of 100% of AXA Insurance Pte Limited ('AXA Singapore') for $0.5bn. A gain on acquisition of $0.1bn was recorded, reflecting the excess of the fair value of net assets acquired (gross assets of $4.5bn and gross liabilities of $3.9bn) over the acquisition price. The legal integration of AXA Singapore with HSBC's pre-existing insurance operations in the country concluded on 1 February 2023.

• On 6 April 2022, The Hongkong and Shanghai Banking Corporation Limited, a subsidiary of the Group, announced it had increased its shareholding in HSBC Qianhai Securities Limited, a partially-owned subsidiary, for $0.2bn from 51% to 90%.

• On 23 June 2022, HSBC Insurance (Asia) Limited, a subsidiary of the Group, acquired the remaining 50% equity interest in HSBC Life Insurance Company Limited for $0.2bn. Headquartered in Shanghai, HSBC Life Insurance Company Limited offers a comprehensive range of insurance solutions covering annuity, whole life, critical illness and unit-linked insurance products.

• On 25 November 2022, HSBC Asset Management (India) Private Ltd, a subsidiary of the Group, completed the acquisition of L&T Investment Management Limited from L&T Finance Holdings Limited for $0.4bn, recognised primarily as intangibles and goodwill. L&T Investment Management Limited is the investment manager of the L&T Mutual Fund, with assets under management of $9.4bn on completion.

•

24	Trading liabilities

	2022	2021
	$m	$m
Deposits by banks1	9,332	4,243
Customer accounts1	10,724	9,424
Other debt securities in issue (Note 26)	978	1,792
Other liabilities - net short positions in securities	51,319	69,445
At 31 Dec	72,353	84,904

1  'Deposits by banks' and 'Customer accounts' include fair value repos, stock lending and other amounts.

1 

25	Financial liabilities designated at fair value

HSBC
	2022	2021
	$m	$m
Deposits by banks and customer accounts1	19,171	16,703
Liabilities to customers under investment contracts	5,380	5,938
Debt securities in issue (Note 26)	93,140	112,761
Subordinated liabilities (Note 29)	9,636	10,100
At 31 Dec	127,327	145,502

1  Structured deposits placed at HSBC Bank USA are insured by the Federal Deposit Insurance Corporation, a US government agency, up to $250,000 per depositor.

The carrying amount of financial liabilities designated at fair value was $8,124m less than the contractual amount at maturity (2021: $827m more). The cumulative amount of change in fair value attributable to changes in credit risk was a profit of $234m (2021: loss of $2,084m).

HSBC Holdings
	2022	2021
	$m	$m
Debt securities in issue (Note 26)	25,423	26,818
Subordinated liabilities (Note 29)	6,700	5,600
At 31 Dec	32,123	32,418

The carrying amount of financial liabilities designated at fair value was $2,405m less than the contractual amount at maturity (2021: $1,766m more). The cumulative amount of change in fair value attributable to changes in credit risk was a loss of $516m (2021: $951m).

26	Debt securities in issue

HSBC
		2022	2021
		$m	$m
Bonds and medium-term notes		145,240	166,537
Other debt securities in issue		27,027	26,573
Total debt securities in issue		172,267	193,110
Included within:
-  trading liabilities (Note 24)		(978)	(1,792)
-  financial liabilities designated at fair value (Note 25)		(93,140)	(112,761)
At 31 Dec		78,149	78,557

HSBC Holdings
	2022	2021
	$m	$m
Debt securities	92,361	94,301
Included within:
-  financial liabilities designated at fair value (Note 25)	(25,423)	(26,818)
At 31 Dec	66,938	67,483

27	Accruals, deferred income and other liabilities

	2022	2021
	$m	$m
Accruals and deferred income	12,353	10,466
Settlement accounts	18,176	15,226
Cash collateral and margin payables	70,292	50,226
Endorsements and acceptances	8,379	11,232
Employee benefit liabilities (Note 5)	1,096	1,607
Lease liabilities	2,767	3,586
Other liabilities	20,177	22,430
At 31 Dec	133,240	114,773

Accruals, deferred income and other liabilities include $125,890m (2021: $111,887m) of financial liabilities, the majority of which are measured at amortised cost.

28	Provisions

	Restructuring costs	Legal proceedings and regulatory matters	Customer remediation	Other provisions	Total
	$m	$m	$m	$m	$m
Provisions (excluding contractual commitments)
At 1 Jan 2022	383	619	386	558	1,946
Additions	434	271	60	206	971
Amounts utilised	(288)	(393)	(106)	(168)	(955)
Unused amounts reversed	(87)	(82)	(109)	(125)	(403)
Exchange and other movements	3	(6)	(36)	(74)	(113)
At 31 Dec 2022	445	409	195	397	1,446
Contractual commitments1
At 1 Jan 2022					620
Net change in expected credit loss provision and other movements					(108)
At 31 Dec 2022					512
Total provisions
At 31 Dec 2021					2,566
At 31 Dec 2022					1,958

	Restructuring costs	Legal proceedings and regulatory matters	Customer remediation	Other provisions	Total
	$m	$m	$m	$m	$m
Provisions (excluding contractual commitments)
At 1 Jan 2021	671	756	858	305	2,590
Additions	347	249	192	471	1,259
Amounts utilised	(499)	(316)	(548)	(58)	(1,421)
Unused amounts reversed	(170)	(59)	(113)	(124)	(466)
Exchange and other movements	34	(11)	(3)	(36)	(16)
At 31 Dec 2021	383	619	386	558	1,946
Contractual commitments1
At 1 Jan 2021					1,088
Net change in expected credit loss provision and other movements					(468)
At 31 Dec 2021					620
Total provisions
At 31 Dec 2020					3,678
At 31 Dec 2021					2,566

1  Contractual commitments include the provision for contingent liabilities measured under IFRS 9 'Financial Instruments' in respect of financial guarantees and the expected credit loss provision on off-balance sheet guarantees and commitments.

Further details of 'Legal proceedings and regulatory matters' are set out in Note 35. Legal proceedings include civil court, arbitration or tribunal proceedings brought against HSBC companies (whether by way of claim or counterclaim) or civil disputes that may, if not settled, result in court, arbitration or tribunal proceedings. Regulatory matters refer to investigations, reviews and other actions carried out by, or in response to the actions of, regulators or law enforcement agencies in connection with alleged wrongdoing by HSBC.

Customer remediation refers to HSBC's activities to compensate customers for losses or damages associated with a failure to comply with regulations or to treat customers fairly. Customer remediation is often initiated by HSBC in response to customer complaints and/or industry developments in sales practices and is not necessarily initiated by regulatory action.

For further details of the impact of IFRS 9 on undrawn loan commitments and financial guarantees, presented in 'Contractual commitments', see Note 33. This provision results from the adoption of IFRS 9 and has no comparatives. Further analysis of the movement in the expected credit loss provision is disclosed within the 'Reconciliation of allowances for loans and advances to banks and customers including loan commitments and financial guarantees' table on page 163.

29	Subordinated liabilities

HSBC's subordinated liabilities
	2022	2021
	$m	$m
At amortised cost	22,290	20,487
-  subordinated liabilities	20,547	18,640
-  preferred securities	1,743	1,847
Designated at fair value (Note 25)	9,636	10,100
-  subordinated liabilities	9,636	10,100
-  preferred securities	-	-
At 31 Dec	31,926	30,587
Issued by HSBC subsidiaries	6,094	9,112
Issued by HSBC Holdings	25,832	21,475

Subordinated liabilities rank behind senior obligations and generally count towards the capital base of HSBC. Capital securities may be called and redeemed by HSBC subject to prior notification to the PRA and, where relevant, the consent of the local banking regulator. If not redeemed at the first call date, coupons payable may reset or become floating rate based on relevant market rates. On subordinated liabilities other than floating rate notes, interest is payable at fixed rates of up to 10.176%.

The balance sheet amounts disclosed in the following table are presented on an IFRS basis and do not reflect the amount that the instruments contribute to regulatory capital, principally due to regulatory amortisation and regulatory eligibility limits.

HSBC's subsidiaries subordinated liabilities in issue
				2022	2021
		First call date	Maturity date	$m	$m
Additional tier 1 capital securities guaranteed by HSBC Holdings1,2
$900m	10.176% non-cumulative step-up perpetual preferred securities, series 23	Jun 2030		900	900
				900	900
Additional tier 1 capital securities guaranteed by HSBC Bank plc1,2
£700m	5.844% non-cumulative step-up perpetual preferred securities4,5	Nov 2031		684	947
				684	947
Tier 2 securities issued by HSBC Bank plc
$750m	Undated floating rate primary capital notes	Jun 1990		750	750
$500m	Undated floating rate primary capital notes	Sep 1990		500	500
$300m	Undated floating rate primary capital notes, series 3	Jun 1992		300	300
$300m	7.65% subordinated notes6	-	May 2025	170	300
				1,720	1,850
£300m	6.50% subordinated notes7	-	Jul 2023	162	406
£350m	5.375% callable subordinated step-up notes2,7,8	Nov 2025	Nov 2030	73	539
£500m	5.375% subordinated notes7	-	Aug 2033	186	900
£225m	6.25% subordinated notes7	-	Jan 2041	56	303
£600m	4.75% subordinated notes7	-	Mar 2046	230	805
				707	2,953
				2,427	4,803
Tier 2 securities issued by The Hongkong and Shanghai Banking Corporation Limited
$400m	Primary capital undated floating rate notes (third series)	Jul 1991		400	400
				400	400
Tier 2 securities issued by HSBC Bank Malaysia Berhad
MYR500m	5.05% subordinated bonds2,9	Nov 2022	Nov 2027	-	120
				-	120
Tier 2 securities issued by HSBC USA Inc.
$250m	7.20% subordinated debentures2	-	Jul 2097	223	222
				223	222
Tier 2 securities issued by HSBC Bank USA, N.A.
$1,000m	5.875% subordinated notes10	-	Nov 2034	339	456
$750m	5.625% subordinated notes10	-	Aug 2035	366	489
$700m	7.00% subordinated notes	-	Jan 2039	700	697
				1,405	1,642
Tier 2 securities issued by HSBC Bank Canada
	Other subordinated liabilities each less than $150m2,11	Oct 1996	Nov 2083	-	9
				-	9
Securities issued by other HSBC subsidiaries
Other subordinated liabilities each less than $200m12				55	69
Subordinated liabilities issued by HSBC subsidiaries at 31 Dec				6,094	9,112

1  See paragraph below, 'Guaranteed by HSBC Holdings or HSBC Bank plc'.

2  These securities are ineligible for inclusion in the capital base of HSBC.

3  The interest rate payable after June 2030 is the sum of the three-month Libor plus 4.98%.

4  The interest rate payable after November 2031 is the sum of the compounded daily Sonia rate plus 2.0366%.

5  The value of the security partially decreased as a result of a fair value hedge gain. The instrument was held at amortised cost in 2021.

6  HSBC Bank plc tendered for this security in November 2022. The principal balance is $180m. The original notional value of the security was $300m.

7  HSBC Bank plc tendered for these securities in November 2022. The principal balances are £135m, £61m, £157m, £70m and £237m, respectively. The original notional values of these securities were £300m, £350m, £500m, £225m and £600m respectively.

8  These securities qualified as tier 2 capital for HSBC under CRR II until 31 December 2021 by virtue of the application of grandfathering provisions. The interest rate payable after November 2025 is the sum of the compounded daily Sonia rate plus 1.6193%.

9  These securities were fully repaid in November 2022.

10  HSBC tendered for these securities in November 2019. The principal balances are $357m and $383m respectively. The original notional values of these securities were $1,000m and $750m, respectively.

11  Liability accounts for HSBC Bank Canada have been reclassified to 'Liabilities of disposal groups held for sale'.

12  These securities are included in the capital base of HSBC, in accordance with the grandfathering provisions under CRR II. In 2022, securities of $11m matured and were redeemed.  

HSBC Holdings' subordinated liabilities
	2022	2021
	$m	$m
At amortised cost	19,727	17,059
Designated at fair value (Note 25)	6,700	5,600
At 31 Dec	26,427	22,659

HSBC Holdings' subordinated liabilities in issue
		First call	Maturity	2022	2021
		date	date	$m	$m
Tier 2 securities issued by HSBC Holdings
Amounts owed to third parties
$2,000m	4.25% subordinated notes2,3	-	Mar 2024	1,941	2,072
$1,500m	4.25% subordinated notes2	-	Aug 2025	1,450	1,615
$1,500m	4.375% subordinated notes2	-	Nov 2026	1,450	1,641
$264m	7.625% subordinated notes1,4	-	May 2032	308	536
$223m	7.625% subordinated notes2,6	-	May 2032	223	-
$125m	7.35% subordinated notes1,4	-	Nov 2032	143	241
$97m	7.35% subordinated notes2,6	-	Nov 2032	97	-
$1,431m	6.50% subordinated notes1,5	-	May 2036	1,461	2,032
$569m	6.50% subordinated notes2,6	-	May 2036	568	-
$1,515m	6.50% subordinated notes1,5	-	Sep 2037	1,178	2,825
$985m	6.50% subordinated notes2,6	-	Sep 2037	977	-
$961m	6.80% subordinated notes1,5	-	Jun 2038	953	1,491
$539m	6.80% subordinated notes2,6	-	Jun 2038	540	-
$1,500m	5.25% subordinated notes2	-	Mar 2044	1,447	1,946
$2,000m	4.762% subordinated notes2	Mar 2032	Mar 2033	1,766	-
$2,000m	8.113% subordinated notes2	Nov 2032	Nov 2033	2,008	-
£650m	5.75% subordinated notes2	-	Dec 2027	775	1,040
£650m	6.75% subordinated notes2	-	Sep 2028	816	877
£750m	7.00% subordinated notes2	-	Apr 2038	817	1,082
£900m	6.00% subordinated notes2	-	Mar 2040	776	1,320
£1,000m	8.201% subordinated notes2	Aug 2029	Nov 2034	1,252	-
€1,500m	3.0% subordinated notes2	-	Jun 2025	1,492	1,737
€1,000m	3.125% subordinated notes2	-	Jun 2028	991	1,304
€1,250m	6.364% subordinated notes2	Nov 2027	Nov 2032	1,316	-
SGD900m	5.25% subordinated notes2	Jun 2027	Jun 2032	694	-
JPY11,900m	2.50% subordinated notes2	Sep 2027	Sep 2032	88	-
				25,527	21,759
Amounts owed to HSBC undertakings
$900m	10.176% subordinated step-up cumulative notes	Jun 2030	Jun 2040	900	900
				900	900
At 31 Dec				26,427	22,659

1  Amounts owed to third parties represent securities included in the capital base of HSBC as tier 2 securities in accordance with the grandfathering provisions under CRR II.

2  These securities are included in the capital base of HSBC as fully CRR II-compliant tier 2 securities on an end point basis.

3  These subordinated notes are measured at amortised cost in HSBC Holdings, where the interest rate risk is hedged using a fair value hedge, while they are measured at fair value in the Group.

4  These securities were subjected to a tender and an exchange offer exercise in September 2022. The original principal amounts were $488m and $222m, respectively, and are now $264m and $125m. 

5  These securities were subjected to an exchange offer exercise in September 2022. The original principal amounts were $2,000m, $2,500m and $1,500m, respectively, and are now $1,431m, $1,515m and $961m. 

6  These subordinated notes were issued under an exchange offer exercise in September 2022.   

Guaranteed by HSBC Holdings or HSBC Bank plc

Capital securities guaranteed by HSBC Holdings or HSBC Bank plc were issued by the Jersey limited partnerships. The proceeds of these were lent to the respective guarantors by the limited partnerships in the form of subordinated notes. They qualified as additional tier 1 capital for HSBC under CRR II until 31 December 2021 by virtue of the application of grandfathering provisions. The capital security guaranteed by HSBC Bank plc also qualified as additional tier 1 capital for HSBC Bank plc (on a solo and a consolidated basis) under CRR II until 31 December 2021 by virtue of the same grandfathering process. Since 31 December 2021, these securities have no longer qualified as regulatory capital for HSBC or HSBC Bank plc.

These preferred securities, together with the guarantee, are intended to provide investors with rights to income and capital distributions and distributions upon liquidation of the relevant issuer that are equivalent to the rights that they would have had if they had purchased non-cumulative perpetual preference shares of the relevant issuer. There are limitations on the payment of distributions if such payments are prohibited under UK banking regulations or other requirements, if a payment would cause a breach of HSBC's capital adequacy requirements, or if HSBC Holdings or HSBC Bank plc has insufficient distributable reserves (as defined).

HSBC Holdings and HSBC Bank plc have individually covenanted that, if prevented under certain circumstances from paying distributions on the preferred securities in full, they will not pay dividends or other distributions in respect of their ordinary shares, or repurchase or redeem their ordinary shares, until the distribution on the preferred securities has been paid in full.

If the consolidated total capital ratio of HSBC Holdings falls below the regulatory minimum required or if the Directors expect it to do so in the near term, provided that proceedings have not been commenced for the liquidation, dissolution or winding up of HSBC Holdings, the holders' interests in the preferred securities guaranteed by HSBC Holdings will be exchanged for interests in preference shares issued by HSBC Holdings that have economic terms which are in all material respects equivalent to the preferred securities and their guarantee.

If the preferred securities guaranteed by HSBC Bank plc are outstanding in November 2048, or if the total capital ratio of HSBC Bank plc (on a solo or consolidated basis) falls below the regulatory minimum required, or if the Directors expect it to do so in the near term, provided that proceedings have not been commenced for the liquidation, dissolution or winding up of HSBC Bank plc, the holders' interests in the preferred security guaranteed by HSBC Bank plc will be exchanged for interests in preference shares issued by HSBC Bank plc that have economic terms which are in all material respects equivalent to the preferred security and its guarantee.

Tier 2 securities

Tier 2 capital securities are either perpetual or dated subordinated securities on which there is an obligation to pay coupons. These capital securities are included within HSBC's regulatory capital base as tier 2 capital under CRR II, either as fully eligible capital or by virtue of the application of grandfathering provisions. In accordance with CRR II, the capital contribution of all tier 2 securities is amortised for regulatory purposes in their final five years before maturity.

30	Maturity analysis of assets, liabilities and off-balance sheet commitments

The table on page 397 provides an analysis of consolidated total assets, liabilities and off-balance sheet commitments by residual contractual maturity at the balance sheet date. These balances are included in the maturity analysis as follows:

• Trading assets and liabilities (including trading derivatives but excluding reverse repos, repos and debt securities in issue) are included in the 'Due not more than 1 month' time bucket, because trading balances are typically held for short periods of time.

• Financial assets and liabilities with no contractual maturity (such as equity securities) are included in the 'Due over 5 years' time bucket. Undated or perpetual instruments are classified based on the contractual notice period, which the counterparty of the instrument is entitled to give. Where there is no contractual notice period, undated or perpetual contracts are included in the 'Due over 5 years' time bucket.

• Non-financial assets and liabilities with no contractual maturity are included in the 'Due over 5 years' time bucket.

• Financial instruments included within assets and liabilities of disposal groups held for sale are classified on the basis of the contractual maturity of the underlying instruments and not on the basis of the disposal transaction.

• Liabilities under insurance contracts included in 'other financial liabilities', are irrespective of contractual maturity included in the 'Due over 5 years' time bucket in the maturity table provided below. An analysis of the expected maturity of liabilities under insurance contracts based on undiscounted cash flows is provided on page 238. Liabilities under investment contracts are classified in accordance with their contractual maturity. Undated investment contracts are included in the 'Due over 5 years' time bucket, although such contracts are subject to surrender and transfer options by the policyholders.

• Loan and other credit-related commitments are classified on the basis of the earliest date they can be drawn down.

•

HSBC

Maturity analysis of assets, liabilities and off-balance sheet commitments
	Due not more than 1 month	Due over 1 month but not more than 3 months	Due over 3 months but not more than 6 months	Due over 6 months but not more than 9 months	Due over 9 months but not more than 1 year	Due over 1 year but not more than 2 years	Due over 2 years but not more than 5 years	Due over 5 years	Total
	$m	$m	$m	$m	$m	$m	$m	$m	$m
Financial assets
Cash and balances at central banks	327,002	-	-	-	-	-	-	-	327,002
Items in the course of collection from other banks	7,297	-	-	-	-	-	-	-	7,297
Hong Kong Government certificates of indebtedness	43,787	-	-	-	-	-	-	-	43,787
Trading assets	213,234	1,333	1,343	338	425	808	222	390	218,093
Financial assets designated or otherwise mandatorily measured at fair value	2,778	101	370	658	(53)	645	2,005	38,559	45,063
Derivatives	281,710	133	30	21	64	261	1,052	875	284,146
Loans and advances to banks	72,241	13,963	8,364	880	2,344	3,058	3,900	132	104,882
Loans and advances to customers	139,935	75,487	58,983	35,642	33,738	100,027	173,306	307,736	924,854
-  personal	41,835	9,142	6,664	5,754	5,779	18,375	51,104	273,487	412,140
-  corporate and commercial	84,956	60,064	45,719	24,427	22,627	68,514	108,590	31,135	446,032
-  financial	13,144	6,281	6,600	5,461	5,332	13,138	13,612	3,114	66,682
Reverse repurchase agreements - non-trading	171,173	51,736	16,164	5,840	2,776	3,999	2,066	-	253,754
Financial investments	46,997	79,912	31,629	12,301	13,581	41,968	79,410	119,766	425,564
Assets held for sale1	33,781	3,755	3,452	3,044	3,263	15,369	40,017	14,697	117,378
Accrued income and other financial assets	99,409	6,249	3,772	616	777	546	303	1,708	113,380
Financial assets at 31 Dec 2022	1,439,344	232,669	124,107	59,340	56,915	166,681	302,281	483,863	2,865,200
Non-financial assets	-	-	-	-	-	-	-	101,330	101,330
Total assets at 31 Dec 2022	1,439,344	232,669	124,107	59,340	56,915	166,681	302,281	585,193	2,966,530
Off-balance sheet commitments received
Loan and other credit-related commitments	27,340	-	-	-	-	-	-	-	27,340
Financial liabilities
Hong Kong currency notes in circulation	43,787	-	-	-	-	-	-	-	43,787
Deposits by banks	46,994	359	3,510	205	136	1,455	13,737	326	66,722
Customer accounts	1,388,297	93,108	47,712	14,244	17,295	4,719	4,607	321	1,570,303
-  personal	657,413	55,252	35,430	10,431	12,374	2,835	2,351	2	776,088
-  corporate and commercial	555,539	31,624	10,385	3,080	3,824	1,667	2,146	274	608,539
-  financial	175,345	6,232	1,897	733	1,097	217	110	45	185,676
Repurchase agreements - non-trading	121,193	3,804	685	170	645	1,250	-	-	127,747
Items in the course of transmission to other banks	7,864	-	-	-	-	-	-	-	7,864
Trading liabilities	66,027	5,668	281	113	113	116	35	-	72,353
Financial liabilities designated at fair value	16,431	7,399	6,561	4,307	5,326	19,287	34,885	33,131	127,327
-  debt securities in issue: covered bonds	-	-	-	-	-	-	-	-	-
-  debt securities in issue: unsecured	7,057	3,621	4,792	3,156	4,289	16,234	29,940	23,510	92,599
-  subordinated liabilities and preferred securities	-	-	-	-	-	1,971	3,675	3,990	9,636
-  other	9,374	3,778	1,769	1,151	1,037	1,082	1,270	5,631	25,092
Derivatives	284,414	73	18	46	57	171	849	136	285,764
Debt securities in issue	4,514	7,400	7,476	4,745	3,585	9,198	19,240	21,991	78,149
-  covered bonds	-	-	-	-	-	-	601	-	601
-  otherwise secured	705	28	40	38	36	124	656	1,346	2,973
-  unsecured	3,809	7,372	7,436	4,707	3,549	9,074	17,983	20,645	74,575
Liabilities of disposal groups held for sale2	76,928	4,342	5,374	6,599	8,606	2,343	8,653	1,479	114,324
Accruals and other financial liabilities	104,224	9,384	4,785	1,022	1,626	1,111	2,018	1,720	125,890
Subordinated liabilities	-	-	11	160	-	-	1,689	20,430	22,290
Total financial liabilities at 31 Dec 2022	2,160,673	131,537	76,413	31,611	37,389	39,650	85,713	79,534	2,642,520
Non-financial liabilities	-	-	-	-	-	-	-	127,982	127,982
Total liabilities at 31 Dec 2022	2,160,673	131,537	76,413	31,611	37,389	39,650	85,713	207,516	2,770,502
Off-balance sheet commitments given
Loan and other credit-related commitments	825,781	184	75	59	210	242	975	328	827,854
-  personal	242,953	2	3	-	110	199	811	300	244,378
-  corporate and commercial	449,843	176	72	59	84	43	163	28	450,468
-  financial	132,985	6	-	-	16	-	1	-	133,008

1  Unallocated impairment losses in relation to disposal groups of $2.4bn and non-financial assets of $1bn that are both are presented within assets held for sale on the balance sheet have been included within non-financial assets in the table above.

2  $0.3bn of non-financial liabilities that are presented within liabilities of disposal groups held for sale on the balance sheet have been included within non-financial liabilities in the table above.

Maturity analysis of assets, liabilities and off-balance sheet commitments (continued)
	Due not more than 1 month	Due over 1 month but not more than 3 months	Due over 3 months but not more than 6 months	Due over 6 months but not more than 9 months	Due over 9 months but not more than 1 year	Due over 1 year but not more than 2 years	Due over 2 years but not more than 5 years	Due over 5 years	Total
	$m	$m	$m	$m	$m	$m	$m	$m	$m
Financial assets
Cash and balances at central banks	403,018	-	-	-	-	-	-	-	403,018
Items in the course of collection from other banks	4,136	-	-	-	-	-	-	-	4,136
Hong Kong Government certificates of indebtedness	42,578	-	-	-	-	-	-	-	42,578
Trading assets	244,422	2,403	440	194	468	621	294	-	248,842
Financial assets designated at fair value	4,968	89	585	515	224	855	1,852	40,716	49,804
Derivatives	195,701	164	85	110	233	91	310	188	196,882
Loans and advances to banks	55,572	10,889	5,469	1,078	1,512	5,321	3,134	161	83,136
Loans and advances to customers	160,583	82,531	69,380	42,459	42,651	107,393	220,746	320,071	1,045,814
-  personal	50,573	11,373	8,934	8,022	7,766	25,271	78,373	284,922	475,234
-  corporate and commercial	97,554	64,511	52,548	29,341	28,749	72,441	127,527	32,664	505,335
-  financial	12,456	6,647	7,898	5,096	6,136	9,681	14,846	2,485	65,245
Reverse repurchase agreements - non-trading	155,997	49,392	18,697	9,386	3,661	2,672	1,843	-	241,648
Financial investments	47,084	68,034	33,233	20,638	21,779	49,903	80,367	125,236	446,274
Assets held for sale1	58	-	-	-	180	11	549	2,033	2,831
Accrued income and other financial assets	79,019	5,932	2,935	536	357	254	263	1,689	90,985
Financial assets at 31 Dec 2021	1,393,136	219,434	130,824	74,916	71,065	167,121	309,358	490,094	2,855,948
Non-financial assets	-	-	-	-	-	-	-	101,991	101,991
Total assets at 31 Dec 2021	1,393,136	219,434	130,824	74,916	71,065	167,121	309,358	592,085	2,957,939
Off-balance sheet commitments received
Loan and other credit-related commitments	49,061	-	-	-	-	-	-	-	49,061
Financial liabilities
Hong Kong currency notes in circulation	42,578	-	-	-	-	-	-	-	42,578
Deposits by banks	63,660	2,695	2,419	238	125	14,653	16,734	628	101,152
Customer accounts	1,615,025	51,835	19,167	8,007	9,710	3,143	3,585	102	1,710,574
-  personal	802,777	24,725	12,038	5,961	5,255	2,304	2,242	26	855,328
-  corporate and commercial	623,459	22,980	5,654	1,762	3,402	706	1,167	33	659,163
-  financial	188,789	4,130	1,475	284	1,053	133	176	43	196,083
Repurchase agreements - non-trading	117,625	4,613	1,716	292	142	975	377	930	126,670
Items in the course of transmission to other banks	5,214	-	-	-	-	-	-	-	5,214
Trading liabilities	79,789	3,810	346	218	223	445	73	-	84,904
Financial liabilities designated at fair value	18,080	9,437	4,514	3,287	4,485	17,422	42,116	46,161	145,502
-  debt securities in issue: covered bonds	-	1,137	-	-	-	1,481	1,160	-	3,778
-  debt securities in issue: unsecured	9,916	5,967	2,823	2,259	3,462	14,758	34,515	35,282	108,982
-  subordinated liabilities and preferred  securities	-	-	-	-	-	-	5,371	4,729	10,100
-  other	8,164	2,333	1,691	1,028	1,023	1,183	1,070	6,150	22,642
Derivatives	190,233	46	11	30	25	100	288	331	191,064
Debt securities in issue	7,053	7,777	5,664	6,880	1,703	9,045	20,254	20,181	78,557
-  covered bonds	-	-	-	997	-	996	860	-	2,853
-  otherwise secured	957	164	42	31	193	896	1,696	1,207	5,186
-  unsecured	6,096	7,613	5,622	5,852	1,510	7,153	17,698	18,974	70,518
Liabilities of disposal groups held for sale	8,753	6	9	9	8	31	68	11	8,895
Accruals and other financial liabilities	82,996	10,311	5,621	1,094	1,064	1,917	2,339	2,818	108,160
Subordinated liabilities	-	1	11	-	-	417	2,055	18,003	20,487
Total financial liabilities at 31 Dec 2021	2,231,006	90,531	39,478	20,055	17,485	48,148	87,889	89,165	2,623,757
Non-financial liabilities	-	-	-	-	-	-	-	127,405	127,405
Total liabilities at 31 Dec 2021	2,231,006	90,531	39,478	20,055	17,485	48,148	87,889	216,570	2,751,162
Off-balance sheet commitments given
Loan and other credit-related commitments	813,491	121	133	228	254	78	931	238	815,474
-  personal	239,207	34	34	54	108	32	688	238	240,395
-  corporate and commercial	456,498	76	91	168	143	46	243	-	457,265
-  financial	117,786	11	8	6	3	-	-	-	117,814

HSBC Holdings

Maturity analysis of assets, liabilities and off-balance sheet commitments (continued)
	Due not more than 1 month	Due over 1 month but not more than 3 months	Due over 3 months but not more than 6 months	Due over 6 months but not more than 9 months	Due over 9 months but not more than 1 year	Due over 1 year but not more than 2 years	Due over 2 years but not more than 5 years	Due over 5 years	Total
	$m	$m	$m	$m	$m	$m	$m	$m	$m
Financial assets
Cash at bank and in hand:
-  balances with HSBC undertakings	3,210	-	-	-	-	-	-	-	3,210
Derivatives	2,889	-	-	-	-	-	796	116	3,801
Loans and advances to HSBC undertakings	-	2,163	240	-	-	2,035	4,414	17,913	26,765
Financial assets with HSBC undertakings designated and otherwise mandatorily measured at fair value	-	-	-	-	-	9,007	16,230	27,085	52,322
Financial investments	1,517	2,712	8,870	1,020	2,194	3,153	-	-	19,466
Accrued income and other financial assets	68	4,147	179	90	4	-	14	-	4,502
Total financial assets at 31 Dec 2022	7,684	9,022	9,289	1,110	2,198	14,195	21,454	45,114	110,066
Non-financial assets	-	-	-	-	-	-	-	171,035	171,035
Total assets at 31 Dec 2022	7,684	9,022	9,289	1,110	2,198	14,195	21,454	216,149	281,101
Financial liabilities
Amounts owed to HSBC undertakings	48	266	-	-	-	-	-	-	314
Financial liabilities designated at fair value	-	-	-	-	-	1,447	16,459	14,217	32,123
-  debt securities in issue	-	-	-	-	-	1,447	12,784	11,192	25,423
-  subordinated liabilities and preferred securities	-	-	-	-	-	-	3,675	3,025	6,700
Derivatives	2,540	-	35	-	102	460	1,638	2,147	6,922
Debt securities in issue	-	-	1,972	448	714	11,046	25,380	27,378	66,938
Accruals and other financial liabilities	722	450	648	61	35	-	14	31	1,961
Subordinated liabilities	-	-	-	-	-	1,941	1,492	16,294	19,727
Total financial liabilities 31 Dec 2022	3,310	716	2,655	509	851	14,894	44,983	60,067	127,985
Non-financial liabilities	-	-	-	-	-	-	-	8	8
Total liabilities at 31 Dec 2022	3,310	716	2,655	509	851	14,894	44,983	60,075	127,993

Financial assets
Cash at bank and in hand:
-  balances with HSBC undertakings	2,590	-	-	-	-	-	-	-	2,590
Derivatives	1,101	-	-	-	-	23	585	1,102	2,811
Loans and advances to HSBC undertakings	120	750	341	-	3,017	5,608	13,333	1,939	25,108
Loans and advances to HSBC undertakings designated at fair value	-	1,759	250	1,019	-	5,987	19,455	22,938	51,408
Financial investments in HSBC undertakings	8,377	7,166	3,014	1,346	3,026	3,265	-	-	26,194
Accrued income and other financial assets	129	874	108	58	4	-	-	-	1,173
Total financial assets at 31 Dec 2021	12,317	10,549	3,713	2,423	6,047	14,883	33,373	25,979	109,284
Non-financial assets	-	-	-	-	-	-	-	163,888	163,888
Total assets at 31 Dec 2021	12,317	10,549	3,713	2,423	6,047	14,883	33,373	189,867	273,172
Financial liabilities
Amounts owed to HSBC undertakings	-	111	-	-	-	-	-	-	111
Financial liabilities designated at fair value	397	2,484	-	-	-	1,364	11,276	16,897	32,418
-  debt securities in issue	397	2,484	-	-	-	1,364	8,020	14,553	26,818
-  subordinated liabilities and preferred securities	-	-	-	-	-	-	3,256	2,344	5,600
Derivatives	1,167	-	-	-	-	5	1	47	1,220
Debt securities in issue	1,051	-	-	-	-	8,525	29,889	28,018	67,483
Accruals and other financial liabilities	1,778	730	1,612	68	12	-	-	40	4,240
Subordinated liabilities	-	-	-	-	-	-	3,809	13,250	17,059
Total financial liabilities at 31 Dec 2021	4,393	3,325	1,612	68	12	9,894	44,975	58,252	122,531
Non-financial liabilities	-	-	-	-	-	-	-	311	311
Total liabilities at 31 Dec 2021	4,393	3,325	1,612	68	12	9,894	44,975	58,563	122,842

Contractual maturity of financial liabilities

The following table shows, on an undiscounted basis, all cash flows relating to principal and future coupon payments (except for trading liabilities and derivatives not treated as hedging derivatives). For this reason, balances in the following table do not agree directly with those in our consolidated balance sheet. Undiscounted cash flows payable in relation to hedging derivative liabilities are classified according to their contractual maturities. Trading liabilities and derivatives not treated as hedging derivatives are included in the 'Due not more than 1 month' time bucket and not by contractual maturity.

In addition, loan and other credit-related commitments and financial guarantees are generally not recognised on our balance sheet. The undiscounted cash flows potentially payable under loan and other credit-related commitments and financial guarantees are classified on the basis of the earliest date they can be called.

Cash flows payable by HSBC under financial liabilities by remaining contractual maturities
	Due not more than 1 month	Due over 1 month but not more than 3 months	Due over 3 months but not more than 1 year	Due over 1 year but not more than 5 years	Due over 5 years	Total
	$m	$m	$m	$m	$m	$m
Deposits by banks	47,082	406	4,024	16,050	359	67,921
Customer accounts	1,387,125	96,474	80,608	9,961	346	1,574,514
Repurchase agreements - non-trading	121,328	3,852	1,535	1,268	-	127,983
Trading liabilities	72,353	-	-	-	-	72,353
Financial liabilities designated at fair value	16,687	7,859	18,740	63,606	43,475	150,367
Derivatives	283,512	171	1,181	2,222	1,059	288,145
Debt securities in issue	4,329	8,217	17,522	34,283	26,428	90,779
Subordinated liabilities	37	168	1,395	7,321	32,946	41,867
Other financial liabilities1	153,597	8,670	5,994	3,230	1,704	173,195
	2,086,050	125,817	130,999	137,941	106,317	2,587,124
Loan and other credit-related commitments	825,781	184	344	1,217	328	827,854
Financial guarantees2	18,696	25	62	-	-	18,783
At 31 Dec 2022	2,930,527	126,026	131,405	139,158	106,645	3,433,761
Proportion of cash flows payable in period	85%	4%	4%	4%	3%
Deposits by banks	63,684	2,712	2,800	31,294	643	101,133
Customer accounts	1,613,065	54,092	37,219	7,093	138	1,711,607
Repurchase agreements - non-trading	117,643	4,615	2,157	1,359	935	126,709
Trading liabilities	84,904	-	-	-	-	84,904
Financial liabilities designated at fair value	18,335	9,760	13,606	63,834	50,953	156,488
Derivatives	190,354	192	190	1,792	1,332	193,860
Debt securities in issue	7,149	7,958	15,142	32,651	21,911	84,811
Subordinated liabilities	119	168	848	6,741	28,347	36,223
Other financial liabilities1	129,706	9,842	7,664	4,577	2,697	154,486
	2,224,959	89,339	79,626	149,341	106,956	2,650,221
Loan and other credit-related commitments	813,471	121	615	1,029	238	815,474
Financial guarantees2	27,774	6	9	6	-	27,795
At 31 Dec 2021	3,066,204	89,466	80,250	150,376	107,194	3,493,490
Proportion of cash flows payable in period	88%	3%	2%	4%	3%

1  Excludes financial liabilities of disposal groups.

2  Excludes performance guarantee contracts to which the impairment requirements in IFRS 9 are not applied.

HSBC Holdings

HSBC Holdings' primary sources of liquidity are dividends received from subsidiaries, interest on and repayment of intra-Group loans and securities, and interest earned on its own liquid funds. HSBC Holdings also raises funds in the debt capital markets to meet the Group's minimum requirement for own funds and eligible liabilities. HSBC Holdings uses this liquidity to meet its obligations, including interest and principal repayments on external debt liabilities, operating expenses and collateral on derivative transactions.

HSBC Holdings is also subject to contingent liquidity risk by virtue of credit-related commitments and guarantees and similar contracts issued relating to its subsidiaries. Such commitments and guarantees are only issued after due consideration of HSBC Holdings' ability to finance the commitments and guarantees and the likelihood of the need arising.

HSBC Holdings actively manages the cash flows from its subsidiaries to optimise the amount of cash held at the holding company level. During 2022, consistent with the Group's capital plan, the Group's subsidiaries did not experience any significant restrictions on paying dividends or repaying loans and advances. Also, there are no foreseen restrictions envisaged with regard to planned dividends or payments. However, the ability of subsidiaries to pay dividends or advance monies to HSBC Holdings depends on, among other things, their respective local regulatory capital and banking requirements, exchange controls, statutory reserves, and financial and operating performance.

HSBC Holdings currently has sufficient liquidity to meet its present requirements.

Liquidity risk in HSBC Holdings is overseen by Holdings ALCO. This risk arises because of HSBC Holdings' obligation to make payments to debt holders as they fall due and to pay its operating expenses. The liquidity risk related to these cash flows is managed by matching external debt obligations with internal loan cash flows and by maintaining an appropriate liquidity buffer that is monitored by Holdings ALCO.

The balances in the following table are not directly comparable with those on the balance sheet of HSBC Holdings as the table incorporates, on an undiscounted basis, all cash flows relating to principal and future coupon payments (except for derivatives not treated as hedging derivatives). Undiscounted cash flows payable in relation to hedging derivative liabilities are classified according to their contractual maturities. Derivatives not treated as hedging derivatives are included in the 'On demand' time bucket.

In addition, loan commitments and financial guarantees and similar contracts are generally not recognised on our balance sheet. The undiscounted cash flows potentially payable under financial guarantees and similar contracts are classified on the basis of the earliest date on which they can be called.

Cash flows payable by HSBC Holdings under financial liabilities by remaining contractual maturities
	Due not more than 1 month	Due over 1 month but not more than 3 months	Due over 3 months but not more than 1 year	Due over 1 year but not more than 5 years	Due over 5 years	Total
	$m	$m	$m	$m	$m	$m
Amounts owed to HSBC undertakings	48	266	-	-	-	314
Financial liabilities designated at fair value	11	72	1,139	22,921	19,196	43,339
Derivatives	1,182	177	1,089	4,231	1,321	8,000
Debt securities in issue	-	544	4,899	44,608	32,540	82,591
Subordinated liabilities	46	161	1,068	8,262	27,045	36,582
Other financial liabilities	721	458	745	14	31	1,969
	2,008	1,678	8,940	80,036	80,133	172,795
Loan commitments	-	-	-	-	-	-
Financial guarantees1	17,707	-	-	-	-	17,707
At 31 Dec 2022	19,715	1,678	8,940	80,036	80,133	190,502
Amounts owed to HSBC undertakings	-	111	-	-	-	111
Financial liabilities designated at fair value	473	2,611	621	15,017	17,557	36,279
Derivatives	1,223	9	51	414	585	2,282
Debt securities in issue	1,196	276	1,286	43,360	30,800	76,918
Subordinated liabilities	81	155	722	7,222	20,777	28,957
Other financial liabilities	1,778	730	1,692	-	40	4,240
	4,751	3,892	4,372	66,013	69,759	148,787
Loan commitments	-	-	-	-	-	-
Financial guarantees1	13,746	-	-	-	-	13,746
At 31 Dec 2021	18,497	3,892	4,372	66,013	69,759	162,533

1  Excludes performance guarantee contracts to which the impairment requirements in IFRS 9 are not applied.

31	Offsetting of financial assets and financial liabilities

In the offsetting of financial assets and financial liabilities, the net amount is reported in the balance sheet when the offset criteria are met. This is achieved when there is a legally enforceable right to offset the recognised amounts and there is either an intention to settle on a net basis, or realise the asset and settle the liability simultaneously.

In the following table, the 'Amounts not set off in the balance sheet' include transactions where:

• the counterparty has an offsetting exposure with HSBC and a master netting or similar arrangement is in place with a right to set off only in the event of default, insolvency or bankruptcy, or the offset criteria are otherwise not satisfied; and

• cash and non-cash collateral (debt securities and equities) has been received/pledged for derivatives and reverse repurchase/repurchase, stock borrowing/lending and similar agreements to cover net exposure in the event of a default or other predetermined events.

The effect of over-collateralisation is excluded.

'Amounts not subject to enforceable netting agreements' include contracts executed in jurisdictions where the rights of offset may not be upheld under the local bankruptcy laws, and transactions where a legal opinion evidencing enforceability of the right of offset may not have been sought, or may have been unable to obtain.

For risk management purposes, the net amounts of loans and advances to customers are subject to limits, which are monitored and the relevant customer agreements are subject to review and updated, as necessary, to ensure the legal right to set off remains appropriate.

Offsetting of financial assets and financial liabilities
	Amounts subject to enforceable netting arrangements						Amounts not subject to enforceable netting arrangements2	Total
				Amounts not set off in the balance sheet
	Gross amounts	Amounts offset	Net amounts in the balance sheet	Financial instruments, including non-cash collateral1	Cash collateral	Net amount
	$m	$m	$m	$m	$m	$m	$m	$m
Financial assets
Derivatives (Note 15)3	419,006	(140,987)	278,019	(236,373)	(36,486)	5,160	6,127	284,146
Reverse repos, stock borrowing and similar agreements classified as:4
-  trading assets	24,372	(236)	24,136	(24,106)	(29)	1	1,367	25,503
-  non-trading assets	335,193	(102,888)	232,305	(231,432)	(449)	424	21,689	253,994
Loans and advances to customers5	28,337	(12,384)	15,953	(13,166)	-	2,787	267	16,220
At 31 Dec 2022	806,908	(256,495)	550,413	(505,077)	(36,964)	8,372	29,450	579,863
Derivatives (Note 15)3	244,694	(53,378)	191,316	(151,304)	(36,581)	3,431	5,566	196,882
Reverse repos, stock borrowing and similar agreements classified as:4
-  trading assets	21,568	(222)	21,346	(21,272)	(71)	3	1,729	23,075
-  non-trading assets	353,066	(136,932)	216,134	(215,769)	(165)	200	25,731	241,865
Loans and advances to customers5	27,045	(10,919)	16,126	(13,065)	-	3,061	327	16,453
At 31 Dec 2021	646,373	(201,451)	444,922	(401,410)	(36,817)	6,695	33,353	478,275
Financial liabilities
Derivatives (Note 15)3	419,994	(140,987)	279,007	(239,235)	(29,276)	10,496	6,757	285,764
Repos, stock lending and similar agreements classified as:4
-  trading liabilities	20,027	(236)	19,791	(19,790)	-	1	4	19,795
-  non-trading liabilities	206,827	(102,888)	103,939	(103,296)	(249)	394	23,808	127,747
Customer accounts6	37,164	(12,384)	24,780	(13,166)	-	11,614	14	24,794
At 31 Dec 2022	684,012	(256,495)	427,517	(375,487)	(29,525)	22,505	30,583	458,100
Derivatives (Note 15)3	239,597	(53,378)	186,219	(163,359)	(18,225)	4,635	4,845	191,064
Repos, stock lending and similar agreements classified as:4
-  trading liabilities	13,540	(222)	13,318	(13,318)	-	-	17	13,335
-  non-trading liabilities	235,042	(136,932)	98,110	(97,816)	(203)	91	28,560	126,670
Customer accounts6	40,875	(10,919)	29,956	(13,065)	-	16,891	17	29,973
At 31 Dec 2021	529,054	(201,451)	327,603	(287,558)	(18,428)	21,617	33,439	361,042

1  The disclosure has been enhanced in 2022 to support consistency across Group entities. All financial instruments (whether recognised on our balance sheet or as non-cash collateral received or pledged) are presented within 'financial instruments, including non-cash collateral', as balance sheet classification has no effect on the rights of offset associated with financial instruments. Comparative data have been re-presented accordingly.

2  These exposures continue to be secured by financial collateral, but we may not have sought or been able to obtain a legal opinion evidencing enforceability of the right of offset.

3  At 31 December 2022, the amount of cash margin received that had been offset against the gross derivatives assets was $8,357m (2021: $4,469m). The amount of cash margin paid that had been offset against the gross derivatives liabilities was $10,918m (2021: $9,479m).

4  For the amount of repos, reverse repos, stock lending, stock borrowing and similar agreements recognised on the balance sheet within 'Trading assets' of $25,503m (2021: $23,075m) and 'Trading liabilities' of $19,795m (2021: $13,335m), see the 'Funding sources and uses' table on page 210.

5  At 31 December 2022, the total amount of 'Loans and advances to customers' was $924,854m (2021: $1,045,814m), of which $15,953m (2021: $16,126m) was subject to offsetting.

6  At 31 December 2022, the total amount of 'Customer accounts' was $1,570,303m (2021: $1,710,574m), of which $24,780m (2021: $29,956m) was subject to offsetting.

32	Called up share capital and other equity instruments

Called up share capital and share premium

HSBC Holdings ordinary shares of $0.50 each, issued and fully paid
	2022		2021
	Number	$m	Number	$m
At 1 Jan	20,631,520,439	10,316	20,693,621,100	10,347
Shares issued under HSBC employee share plans	10,226,221	5	58,266,053	29
Shares issued in lieu of dividends	-	-	-	-
Less: Shares repurchased and cancelled	348,139,250	174	120,366,714	60
At 31 Dec1	20,293,607,410	10,147	20,631,520,439	10,316

HSBC Holdings share premium
	2022	2021
	$m	$m
At 31 Dec	14,664	14,602

Total called up share capital and share premium
	2022	2021
	$m	$m
At 31 Dec	24,811	24,918

1  All HSBC Holdings ordinary shares in issue, excluding 325,273,407 shares held in treasury, confer identical rights, including in respect of capital, dividends and voting.

HSBC Holdings 6.20% non-cumulative US dollar preference shares, Series A of $0.01

The 6.20% non-cumulative US dollar preference shares, Series A of $0.01 each were called by HSBC Holdings on 10 December 2020 and were redeemed and cancelled on 13 January 2021.

HSBC Holdings non-cumulative preference share of £0.01

The one non-cumulative sterling preference share of £0.01 ('sterling preference share') has been in issue since 29 December 2010 and is held by a subsidiary of HSBC Holdings. Dividends are paid quarterly at the sole and absolute discretion of the Board. The sterling preference share carries no rights of conversion into ordinary shares of HSBC Holdings and no right to attend or vote at shareholder meetings of HSBC Holdings. These securities can be redeemed by HSBC Holdings at any time, subject to prior approval by the PRA.

Other equity instruments

HSBC Holdings has included two types of additional tier 1 capital securities in its tier 1 capital, including the contingent convertible securities described below. These are accounted for as equity because HSBC does not have an obligation to transfer cash or a variable number of its own ordinary shares to holders under any circumstances outside its control. See Note 29 for additional tier 1 securities accounted for as liabilities.

Additional tier 1 capital - contingent convertible securities

HSBC Holdings continues to issue contingent convertible securities that are included in its capital base as fully CRR II-compliant additional tier 1 capital securities on an end point basis. These securities are marketed principally and subsequently allotted to corporate investors and fund managers. The net proceeds of the issuances are typically used for HSBC Holdings' general corporate purposes and to further strengthen its capital base to meet requirements under CRR II. These securities bear a fixed rate of interest until their initial call dates. After the initial call dates, if they are not redeemed, the securities will bear interest at rates fixed periodically in advance for five-year periods based on credit spreads, fixed at issuance, above prevailing market rates. Interest on the contingent convertible securities will be due and payable only at the sole discretion of HSBC Holdings, and HSBC Holdings has sole and absolute discretion at all times to cancel for any reason (in whole or part) any interest payment that would otherwise be payable on any payment date. Distributions will not be paid if they are prohibited under UK banking regulations or if the Group has insufficient reserves or fails to meet the solvency conditions defined in the securities' terms.

The contingent convertible securities are undated and are repayable at the option of HSBC Holdings in whole typically at the initial call date or on any fifth anniversary after this date. In addition, the securities are repayable at the option of HSBC in whole for certain regulatory or tax reasons. Any repayments require the prior consent of the PRA. These securities rank pari passu with HSBC Holdings' sterling preference shares and therefore rank ahead of ordinary shares. The contingent convertible securities will be converted into fully paid ordinary shares of HSBC Holdings at a predetermined price, should HSBC's consolidated non-transitional CET1 ratio fall below 7.0%. Therefore, in accordance with the terms of the securities, if the non-transitional CET1 ratio breaches the 7.0% trigger, the securities will convert into ordinary shares at fixed contractual conversion prices in the issuance currencies of the relevant securities, subject to anti-dilution adjustments.

HSBC's additional tier 1 capital - contingent convertible securities in issue which are accounted for in equity
		First call date	2022	2021
			$m	$m
$2,250m	6.375% perpetual subordinated contingent convertible securities	Sep 2024	2,250	2,250
$2,450m	6.375% perpetual subordinated contingent convertible securities	Mar 2025	2,450	2,450
$3,000m	6.000% perpetual subordinated contingent convertible securities	May 2027	3,000	3,000
$2,350m	6.250% perpetual subordinated contingent convertible securities1	Mar 2023	2,350	2,350
$1,800m	6.500% perpetual subordinated contingent convertible securities	Mar 2028	1,800	1,800
$1,500m	4.600% perpetual subordinated contingent convertible securities2	Dec 2030	1,500	1,500
$1,000m	4.000% perpetual subordinated contingent convertible securities3	Mar 2026	1,000	1,000
$1,000m	4.700% perpetual subordinated contingent convertible securities4	Mar 2031	1,000	1,000
€1,500m	5.250% perpetual subordinated contingent convertible securities5	Sep 2022	-	1,945
€1,000m	6.000% perpetual subordinated contingent convertible securities	Sep 2023	1,123	1,123
€1,250m	4.750% perpetual subordinated contingent convertible securities	Jul 2029	1,422	1,422
£1,000	5.875% perpetual subordinated contingent convertible securities	Sep 2026	1,301	1,301
SGD1,000m	4.700% perpetual subordinated contingent convertible securities6	Jun 2022	-	723
SGD750m	5.000% perpetual subordinated contingent convertible securities	Sep 2023	550	550
At 31 Dec			19,746	22,414

1  This security was called by HSBC Holdings on 30 January 2023 and is expected to be redeemed and cancelled on 23 March 2023.

2  This security was issued by HSBC Holdings on 17 December 2020. The first call date is six calendar months prior to the reset date of 17 June 2031.

3  This security was issued by HSBC Holdings on 9 March 2021. The first call date is six calendar months prior to the reset date of 9 September 2026.

4  This security was issued by HSBC Holdings on 9 March 2021. The first call date is six calendar months prior to the reset date of 9 September 2031.

5  This security was called by HSBC Holdings on 9 August 2022 and was redeemed and cancelled on 16 September 2022.

6  This security was called by HSBC Holdings on 4 May 2022 and was redeemed and cancelled on 8 June 2022.

Shares under option

For details of the options outstanding to subscribe for HSBC Holdings ordinary shares under the HSBC Holdings Savings-Related Share Option Plan (UK), see Note 5.

Aggregate options outstanding under these plans
31 Dec 2022			31 Dec 2021
Number of HSBC Holdings ordinary shares	Usual period of exercise	Exercise price	Number of HSBC Holdings ordinary shares	Usual period of exercise	Exercise price
115,650,723	2021 to 2028	£2.6270-£5.9640	123,196,850	2020 to 2027	£2.6270-5.9640

Maximum obligation to deliver HSBC Holdings ordinary shares

At 31 December 2022, the maximum obligation to deliver HSBC Holdings ordinary shares under all of the above option arrangements and the HSBC International Employee Share Purchase Plan, together with long-term incentive awards and deferred share awards granted under the HSBC Share Plan 2011, was 240,612,019 (2021: 224,974,433). The total number of shares at 31 December 2022 held by employee benefit trusts that may be used to satisfy such obligations to deliver HSBC Holdings ordinary shares was 12,315,711 (2021: 9,297,415).

33	Contingent liabilities, contractual commitments and guarantees

	HSBC		HSBC Holdings1
	2022	2021	2022	2021
	$m	$m	$m	$m
Guarantees and other contingent liabilities:
-  financial guarantees	18,783	27,795	17,707	13,746
-  performance and other guarantees	88,240	85,534	-	-
-  other contingent liabilities	676	858	90	133
At 31 Dec	107,699	114,187	17,797	13,879
Commitments:2
-  documentary credits and short-term trade-related transactions	8,241	8,827	-	-
-  forward asset purchases and forward deposits placed	50,852	47,184	-	-
-  standby facilities, credit lines and other commitments to lend	768,761	759,463	-	-
At 31 Dec	827,854	815,474	-	-

1  Financial guarantees by HSBC Holdings are all in favour of other Group entities.

2  Includes $618,788m of commitments at 31 December 2022 (31 December 2021: $627,637m), to which the impairment requirements in IFRS 9 are applied where HSBC has become party to an irrevocable commitment.

The preceding table discloses the nominal principal amounts of off-balance sheet liabilities and commitments for the Group, which represent the maximum amounts at risk should the contracts be fully drawn upon and the clients default. As a significant portion of guarantees and commitments are expected to expire without being drawn upon, the total of the nominal principal amounts is not indicative of future liquidity requirements. The expected credit loss provision relating to guarantees and commitments under IFRS 9 is disclosed in Note 28.

The majority of the guarantees have a term of less than one year, while guarantees with terms of more than one year are subject to HSBC's annual credit review process.

Contingent liabilities arising from legal proceedings, regulatory and other matters against Group companies are excluded from this note but are disclosed in Notes 28 and 35.

Financial Services Compensation Scheme

The Financial Services Compensation Scheme ('FSCS') provides compensation, up to certain limits, to eligible customers of financial services firms that are unable, or likely to be unable, to pay claims against them. The FSCS may impose a further levy on the group to the extent the industry levies imposed to date are not sufficient to cover the compensation due to customers in any future possible collapse. The ultimate FSCS levy to the industry as a result of a collapse cannot be estimated reliably. It is dependent on various uncertain factors including the potential recovery of assets by the FSCS, changes in the level of protected products (including deposits and investments) and the population of FSCS members at the time. In December 2022, the FCA announced that it expects to review various elements of the scheme to ensure consumers are appropriately and proportionately protected, with costs distributed across industry levy payers in a fair and sustainable way, with a view to deliver the majority of changes by the end of the 2023/24 financial year.

Associates

HSBC's share of associates' contingent liabilities, contractual commitments and guarantees amounted to $64.8bn at 31 December 2022 (2021: $63.5bn). No matters arose where HSBC was severally liable.

34	Finance lease receivables

HSBC leases a variety of assets to third parties under finance leases, including transport assets (such as aircraft), property and general plant and machinery. At the end of lease terms, assets may be sold to third parties or leased for further terms. Rentals are calculated to recover the cost of assets less their residual value, and earn finance income.

The table below excludes finance lease receivables reclassified on the balance sheet to 'Assets held for sale' in accordance with IFRS 5. Net investment in finance leases of $1,502m was reclassified to 'Assets held for sale' as a result of the planned sale of our banking business in Canada.

	2022			2021
	Total future minimum payments	Unearned finance income	Present value	Total future minimum payments	Unearned finance income	Present value
	$m	$m	$m	$m	$m	$m
Lease receivables:
No later than one year	2,159	(236)	1,923	3,298	(303)	2,995
One to two years	1,652	(201)	1,451	2,303	(242)	2,061
Two to three years	1,391	(161)	1,230	1,645	(192)	1,453
Three to four years	906	(131)	775	1,225	(146)	1,079
Four to five years	613	(112)	501	795	(113)	682
Later than one year and no later than five years	4,562	(605)	3,957	5,968	(693)	5,275
Later than five years	4,064	(736)	3,328	4,044	(528)	3,516
At 31 Dec	10,785	(1,577)	9,208	13,310	(1,524)	11,786

35	Legal proceedings and regulatory matters

HSBC is party to legal proceedings and regulatory matters in a number of jurisdictions arising out of its normal business operations. Apart from the matters described below, HSBC considers that none of these matters are material. The recognition of provisions is determined in accordance with the accounting policies set out in Note 1. While the outcomes of legal proceedings and regulatory matters are inherently uncertain, management believes that, based on the information available to it, appropriate provisions have been made in respect of these matters as at 31 December 2022 (see Note 28). Where an individual provision is material, the fact that a provision has been made is stated and quantified, except to the extent that doing so would be seriously prejudicial. Any provision recognised does not constitute an admission of wrongdoing or legal liability. It is not practicable to provide an aggregate estimate of potential liability for our legal proceedings and regulatory matters as a class of contingent liabilities.

Bernard L. Madoff Investment Securities LLC

Various non-US HSBC companies provided custodial, administration and similar services to a number of funds incorporated outside the US whose assets were invested with Bernard L. Madoff Investment Securities LLC ('Madoff Securities'). Based on information provided by Madoff Securities as at 30 November 2008, the purported aggregate value of these funds was $8.4bn, including fictitious profits reported by Madoff. Based on information available to HSBC, the funds' actual transfers to Madoff Securities minus their actual withdrawals from Madoff Securities during the time HSBC serviced the funds are estimated to have totalled approximately $4bn. Various HSBC companies have been named as defendants in lawsuits arising out of Madoff Securities' fraud.

US litigation: The Madoff Securities Trustee has brought lawsuits against various HSBC companies and others, seeking recovery of transfers from Madoff Securities to HSBC in an amount not specified, and these lawsuits remain pending in the US Bankruptcy Court for the Southern District of New York (the 'US Bankruptcy Court').

Certain Fairfield entities (together, 'Fairfield') (in liquidation since July 2009) have brought a lawsuit in the US against fund shareholders, including HSBC companies that acted as nominees for clients, seeking restitution of redemption payments. In August 2022, the US District Court for the Southern District of New York (the 'New York District Court') affirmed earlier decisions by the US Bankruptcy Court that dismissed the majority of the liquidators' claims (against most of the HSBC companies). In September 2022, the remaining defendants before the US Bankruptcy Court sought leave to appeal and the liquidators filed appeals to the US Court of Appeals for the Second Circuit, which are currently pending. Meanwhile, proceedings before the US Bankruptcy Court with respect to the remaining claims are ongoing.

UK litigation: The Madoff Securities Trustee has filed a claim against various HSBC companies in the High Court of England and Wales, seeking recovery of transfers from Madoff Securities to HSBC. The claim has not yet been served and the amount claimed has not been specified.

Cayman Islands litigation: In February 2013, Primeo Fund ('Primeo') (in liquidation since April 2009) brought an action against HSBC Securities Services Luxembourg ('HSSL') and Bank of Bermuda (Cayman) Limited (now known as HSBC Cayman Limited), alleging breach of contract and breach of fiduciary duty and claiming monetary damages. Following dismissal of Primeo's action by the lower and appellate courts in the Cayman Islands, in 2019, Primeo appealed to the UK Privy Council. During 2021, the UK Privy Council held two separate hearings in connection with Primeo's appeal. Judgment was given against HSBC in respect of the first hearing and judgment is pending in respect of the second hearing.

Luxembourg litigation: In April 2009, Herald Fund SPC ('Herald') (in liquidation since July 2013) brought an action against HSSL before the Luxembourg District Court, seeking restitution of cash and securities that Herald purportedly lost because of Madoff Securities' fraud, or money damages. The Luxembourg District Court dismissed Herald's securities restitution claim, but reserved Herald's cash restitution and money damages claims. Herald has appealed this judgment to the Luxembourg Court of Appeal, where the matter is pending. In late 2018, Herald brought additional claims against HSSL and HSBC Bank plc before the Luxembourg District Court, seeking further restitution and damages.

In October 2009, Alpha Prime Fund Limited ('Alpha Prime') brought an action against HSSL before the Luxembourg District Court, seeking the restitution of securities, or the cash equivalent, or money damages. In December 2018, Alpha Prime brought additional claims seeking damages against various HSBC companies. These matters are currently pending before the Luxembourg District Court.

In December 2014, Senator Fund SPC ('Senator') brought an action against HSSL before the Luxembourg District Court, seeking restitution of securities, or the cash equivalent, or money damages. In April 2015, Senator commenced a separate action against the Luxembourg branch of HSBC Bank plc asserting identical claims. In December 2018, Senator brought additional claims against HSSL and HSBC Bank plc Luxembourg branch, seeking restitution of Senator's securities or money damages. These matters are currently pending before the Luxembourg District Court.

There are many factors that may affect the range of possible outcomes, and any resulting financial impact, of the various Madoff-related proceedings described above, including but not limited to the multiple jurisdictions in which the proceedings have been brought. Based upon the information currently available, management's estimate of the possible aggregate damages that might arise as a result of all claims in the various Madoff-related proceedings is around $600m, excluding costs and interest. Due to uncertainties and limitations of this estimate, any possible damages that might ultimately arise could differ significantly from this amount.

Anti-money laundering and sanctions-related matters

In December 2012, HSBC Holdings entered into a number of agreements, including an undertaking with the UK Financial Services Authority (replaced with a Direction issued by the UK Financial Conduct Authority ('FCA') in 2013 and again in 2020) as well as a cease-and-desist order with the US Federal Reserve Board ('FRB'), both of which contained certain forward-looking anti-money laundering ('AML') and sanctions-related obligations. For several years thereafter, HSBC retained a Skilled Person under section 166 of the Financial Services and Markets Act and an Independent Consultant under the FRB cease-and-desist order to produce periodic assessments of the Group's AML and sanctions compliance programme. The Skilled Person completed its engagement in the second quarter of 2021, and the FCA determined that no further Skilled Person work is required. Separately, the Independent Consultant's engagement is now complete and, in August 2022, the FRB terminated its cease-and-desist order.

Since November 2014, a number of lawsuits have been filed in federal courts in the US against various HSBC companies and others on behalf of plaintiffs who are, or are related to, victims of terrorist attacks in the Middle East. In each case, it is alleged that the defendants aided and abetted the unlawful conduct of various sanctioned parties in violation of the US Anti-Terrorism Act. Nine actions remain pending in federal courts and HSBC's motions to dismiss have been granted in five of these cases. In September 2022 and January 2023, respectively, the appellate courts affirmed the dismissals of two of the cases, and the plaintiffs' requests for review of these decisions by the full appellate courts have been denied. The dismissals in the other cases are subject to appeal. The four remaining actions are at an early stage.

Based on the facts currently known, it is not practicable at this time for HSBC to predict the resolution of the pending matters, including the timing or any possible impact on HSBC, which could be significant.

London interbank offered rates, European interbank offered rates and other benchmark interest rate investigations and litigation

Euro interest rate derivatives: In December 2016, the European Commission ('EC') issued a decision finding that HSBC, among other banks, engaged in anti-competitive practices in connection with the pricing of euro interest rate derivatives, and the EC imposed a fine on HSBC based on a one-month infringement in 2007. The fine was annulled in 2019 and a lower fine was imposed in 2021. In January 2023, the European Court of Justice dismissed an appeal by HSBC and upheld the EC's findings on HSBC's liability. A separate appeal by HSBC concerning the amount of the fine remains pending before the General Court of the European Union.

US dollar Libor: Beginning in 2011, HSBC and other panel banks have been named as defendants in a number of private lawsuits filed in the US with respect to the setting of US dollar Libor. The complaints assert claims under various US federal and state laws, including antitrust and racketeering laws and the Commodity Exchange Act ('US CEA'). The lawsuits include individual and putative class actions, most of which have been transferred and/or consolidated for pre-trial purposes before the New York District Court. HSBC has reached class settlements with five groups of plaintiffs, and the court has approved these settlements. HSBC has also resolved several of the individual actions, although a number of other US dollar Libor-related actions remain pending.

Singapore interbank offered rate ('Sibor') and Singapore swap offer rate ('SOR'): In 2016, The Hongkong and Shanghai Banking Corporation Limited and other panel banks were named as defendants in a putative class action filed in the New York District Court on behalf of persons who transacted in products related to the Sibor and SOR benchmark rates. The complaint alleged, among other things, misconduct related to these benchmark rates in violation of US antitrust, commodities and racketeering laws, and state law.

In October 2021, The Hongkong and Shanghai Banking Corporation Limited reached a settlement-in-principle with the plaintiffs to resolve this action, the agreement for which was executed in May 2022. The court granted final approval of the settlement in November 2022.

Based on the facts currently known, it is not practicable at this time for HSBC to predict the resolution of the pending matters, including the timing or any possible impact on HSBC, which could be significant.

Foreign exchange-related investigations and litigation

In December 2016, Brazil's Administrative Council of Economic Defense initiated an investigation into the onshore foreign exchange market and identified a number of banks, including HSBC, as subjects of its investigation, which remains ongoing.

In June 2020, the Competition Commission of South Africa, having initially referred a complaint for proceedings before the South African Competition Tribunal in February 2017, filed a revised complaint against 28 financial institutions, including HSBC Bank plc and HSBC Bank USA N.A. ('HSBC Bank USA'), for alleged anti-competitive behaviour in the South African foreign exchange market. In December 2021, a hearing on HSBC Bank plc's and HSBC Bank USA's applications to dismiss the revised complaint took place before the South African Competition Tribunal, where a decision remains pending.

Beginning in 2013, various HSBC companies and other banks have been named as defendants in a number of putative class actions filed in, or transferred to, the New York District Court arising from allegations that the defendants conspired to manipulate foreign exchange rates. HSBC has reached class settlements with two groups of plaintiffs, including direct and indirect purchasers of foreign exchange products, and the court has granted final approval of these settlements. A putative class action by a group of retail customers of foreign exchange products remains pending.

In 2018, complaints alleging foreign exchange-related misconduct were filed in the New York District Court and the High Court of England and Wales against HSBC and other defendants by certain plaintiffs that opted out of the direct purchaser class action settlement in the US. In December 2022, HSBC reached a settlement-in-principle with the plaintiffs to resolve these matters. The settlement remains subject to the negotiation of definitive documentation. Additionally, in January 2023, HSBC reached a settlement-in-principle with plaintiffs in Israel to resolve a class action lawsuit filed in the local courts alleging foreign exchange-related misconduct. The settlement remains subject to the negotiation of definitive documentation and court approval. Lawsuits alleging foreign exchange-related misconduct remain pending against HSBC and other banks in courts in Brazil. It is possible that additional civil actions will be initiated against HSBC in relation to its historical foreign exchange activities.

There are many factors that may affect the range of outcomes, and the resulting financial impact, of these matters, which could be significant.

Precious metals fix-related litigation

Gold: Beginning in December 2015, numerous putative class actions were filed in the Ontario and Quebec Superior Courts of Justice against various HSBC companies and other financial institutions. The plaintiffs allege that, among other things, from January 2004 to March 2014, the defendants conspired to manipulate the price of gold and gold derivatives in violation of the Canadian Competition Act and common law. These actions are ongoing.

Silver: Beginning in July 2014, numerous putative class actions were filed in federal district courts in New York, naming HSBC and other members of The London Silver Market Fixing Limited as defendants. The complaints, which were consolidated in the New York District Court, allege that, from January 2007 to December 2013, the defendants conspired to manipulate the price of silver and silver derivatives for their collective benefit in violation of US antitrust laws, the US CEA and New York state law. In February 2022, following the conclusion of pre-class certification discovery, the defendants filed a motion seeking to dismiss the plaintiffs' antitrust claims, which remains pending.

In April 2016, two putative class actions were filed in the Ontario and Quebec Superior Courts of Justice against various HSBC companies and other financial institutions. The plaintiffs in both actions allege that, from January 1999 to August 2014, the defendants conspired to manipulate the price of silver and silver derivatives in violation of the Canadian Competition Act and common law. These actions are ongoing.

Platinum and palladium: Between late 2014 and early 2015, numerous putative class actions were filed in the New York District Court, naming HSBC and other members of The London Platinum and Palladium Fixing Company Limited as defendants. The complaints allege that, from January 2008 to November 2014, the defendants conspired to manipulate the price of platinum group metals and related financial products for their collective benefit in violation of US antitrust laws and the US CEA. In March 2020, the court granted the defendants' motion to dismiss the plaintiffs' third amended complaint but granted the plaintiffs leave to re-plead certain claims. The plaintiffs have filed an appeal.

Based on the facts currently known, it is not practicable at this time for HSBC to predict the resolution of these matters, including the timing or any possible impact on HSBC, which could be significant.

Film finance litigation

In June 2020, two separate investor groups issued claims against HSBC UK Bank plc (as successor to HSBC Private Bank (UK) Limited ('PBGB')) in the High Court of England and Wales in connection with PBGB's role in the development of Eclipse film finance schemes. These actions are ongoing.

In April 2021, HSBC UK Bank plc (as successor to PBGB) was served with a claim issued in the High Court of England and Wales in connection with PBGB's role in the development of the Zeus film finance schemes. In October 2022, this claim was discontinued.

Based on the facts currently known, it is not practicable at this time for HSBC to predict the resolution of the pending matters, including the timing or any possible impact on HSBC, which could be significant.

Other regulatory investigations, reviews and litigation

HSBC Holdings and/or certain of its affiliates are subject to a number of other investigations and reviews by various regulators and competition and law enforcement authorities, as well as litigation, in connection with various matters relating to the firm's businesses and operations, including:

• investigations by tax administration, regulatory and law enforcement authorities in Argentina, India and elsewhere in connection with allegations of tax evasion or tax fraud, money laundering and unlawful cross-border banking solicitation;

• an investigation by the US Commodity Futures Trading Commission ('CFTC') regarding interest rate swap transactions related to bond issuances, among other things. HSBC has reached a settlement-in-principle with the CFTC's Division of Enforcement to resolve this investigation. The settlement is subject to final approval by the CFTC;

• investigations by the CFTC and US Securities and Exchange Commission ('SEC') concerning compliance with records preservation requirements relating to the use of unapproved electronic messaging platforms for business communications. HSBC has reached settlements-in-principle with the CFTC's and SEC's Divisions of Enforcement to resolve these investigations. The settlements are subject to the negotiation of definitive documentation and final approval by the CFTC and SEC;

• an investigation by the PRA in connection with depositor protection arrangements in the UK;

• an investigation by the FCA in connection with collections and recoveries operations in the UK;

• an investigation by the UK Competition and Markets Authority into potentially anti-competitive arrangements involving historical trading activities relating to certain UK-based fixed income products and related financial instruments;

• a putative class action brought in the New York District Court relating to the Mexican government bond market;

• two group actions pending in the US courts and a claim issued in the High Court of England and Wales in connection with HSBC Bank plc's role as a correspondent bank to Stanford International Bank Ltd from 2003 to 2009; and

• litigation brought against various HSBC companies in the US courts relating to residential mortgage-backed securities, based primarily on (a) claims brought against HSBC Bank USA in connection with its role as trustee on behalf of various securitisation trusts; and (b) claims against several HSBC companies seeking that the defendants repurchase various mortgage loans.

There are many factors that may affect the range of outcomes, and the resulting financial impact, of these matters, which could be significant.

36	Related party transactions

Related parties of the Group and HSBC Holdings include subsidiaries, associates, joint ventures, post-employment benefit plans for HSBC employees, Key Management Personnel ('KMP') as defined by IAS 24, close family members of KMP and entities that are controlled or jointly controlled by KMP or their close family members. KMP are defined as those persons having authority and responsibility for planning, directing and controlling the activities of HSBC Holdings. These individuals also constitute 'senior management' for the purposes of the Hong Kong Listing Rules. In applying IAS 24, it was determined that for this financial reporting period all KMP included Directors, former Directors and senior management listed on pages 240 to 246 except for the roles of Group Chief Legal Officer, Group Head of Internal Audit, Group Chief Human Resources Officer, Group Chief Sustainability Officer, Group Head of Strategy, Group Chief Communications and Brand Officer, and Group Company Secretary and Chief Governance Officer who do not meet the criteria for KMP as provided for in the standard.

Particulars of transactions with related parties are tabulated below. The disclosure of the year-end balance and the highest amounts outstanding during the year is considered to be the most meaningful information to represent the amount of the transactions and outstanding balances during the year.

Key Management Personnel

Details of Directors' remuneration and interests in shares are disclosed in the 'Directors' remuneration report' on pages 276 to 301. IAS 24 'Related Party Disclosures' requires the following additional information for key management compensation.

Compensation of Key Management Personnel
	2022	2021	2020
	$m	$m	$m
Short-term employee benefits	52	50	39
Post-employment benefits	1	-	-
Other long-term employee benefits	8	6	5
Share-based payments	26	27	20
Year ended 31 Dec	87	83	64

Shareholdings, options and other securities of Key Management Personnel
	2022	2021
	(000s)	(000s)
Number of options held over HSBC Holdings ordinary shares under employee share plans	35	35
Number of HSBC Holdings ordinary shares held beneficially and non-beneficially	18,185	13,529
Number of other HSBC securities held	228	228
At 31 Dec	18,448	13,792

Advances and credits, guarantees and deposit balances during the year with Key Management Personnel
	2022		2021
	Balance at 31 Dec	Highest amounts outstanding during year	Balance at 31 Dec	Highest amounts outstanding during year
	$m	$m	$m	$m
Key Management Personnel
Advances and credits1	16	25	373	401
Guarantees	-	-	25	45
Deposits	53	123	284	3,190

1  Advances and credits entered into by subsidiaries of HSBC Holdings plc during 2022 with Directors and former Directors, disclosed pursuant to section 413 of the Companies Act 2006, totalled $2.5m (2021: $2.8m) and the total value of guarantees entered into on behalf of the Directors and former Directors was $nil (2021: $nil).

Some of the transactions were connected transactions as defined by the Rules Governing The Listing of Securities on The Stock Exchange of Hong Kong Limited, but were exempt from any disclosure requirements under the provisions of those rules. The above transactions were made in the ordinary course of business and on substantially the same terms, including interest rates and security, as for comparable transactions with persons of a similar standing or, where applicable, with other employees. The transactions did not involve more than the normal risk of repayment or present other unfavourable features.

Associates and joint ventures

The Group provides certain banking and financial services to associates and joint ventures including loans, overdrafts, interest and non-interest bearing deposits and current accounts. Details of the interests in associates and joint ventures are given in Note 18.

Transactions and balances during the year with associates and joint ventures
	2022		2021
	Highest balance during the year	Balance at 31 Dec	Highest balance during the year	Balance at 31 Dec
	$m	$m	$m	$m
Unsubordinated amounts due from joint ventures	140	90	160	96
Unsubordinated amounts due from associates	7,378	6,594	4,527	4,188
Amounts due to associates	2,548	1,295	3,397	1,070
Amounts due to joint ventures	57	53	102	44
Fair value of derivative assets with associates	1,205	841	936	465
Fair value of derivative liabilities with associates	4,319	3,648	696	555
Guarantees and commitments	513	293	1,016	347

The above outstanding balances arose in the ordinary course of business and on substantially the same terms, including interest rates and security, as for comparable transactions with third-party counterparties.

Post-employment benefit plans

At 31 December 2022, $2.9bn (2021: $3.4bn) of HSBC post-employment benefit plan assets were under management by HSBC companies, earning management fees of $13m in 2022 (2021: $14m). At 31 December 2022, HSBC's post-employment benefit plans had placed deposits of $369m (2021: $476m) with its banking subsidiaries, earning interest payable to the schemes of nil (2021: nil). The above outstanding balances arose from the ordinary course of business and on substantially the same terms, including interest rates and security, as for comparable transactions with third-party counterparties.

The combined HSBC Bank (UK) Pension Scheme enters into swap transactions with HSBC to manage inflation and interest rate sensitivity of its liabilities and selected assets. At 31 December 2022, the gross notional value of the swaps was $6.6bn (2021: $7.4bn). These swaps had a positive fair value to the scheme of $0.5bn (2021: $1.0bn); and HSBC had delivered collateral of $0.5bn (2021: $1.0bn) to the scheme in respect of these arrangements. All swaps were executed at prevailing market rates and within standard market bid/offer spreads.

HSBC Holdings

Details of HSBC Holdings' subsidiaries are shown in Note 38 .

Transactions and balances during the year with subsidiaries
	2022		2021
	Highest balance during the year	Balance at 31 Dec	Highest balance during the year	Balance at 31 Dec
	$m	$m	$m	$m
Assets
Cash and balances with HSBC undertakings	7,421	3,210	3,397	2,590
Financial assets with HSBC undertakings designated and otherwise mandatorily measured at fair value	52,322	52,322	64,686	51,408
Derivatives	5,380	3,801	4,187	2,811
Loans and advances to HSBC undertakings	26,765	26,765	27,142	25,108
Prepayments, accrued income and other assets	4,893	4,803	1,555	1,135
Investments in subsidiaries	167,542	167,542	163,211	163,211
Total related party assets at 31 Dec	264,323	258,443	264,178	246,263
Liabilities
Amounts owed to HSBC undertakings	314	314	340	111
Derivatives	8,318	6,922	2,872	1,220
Accruals, deferred income and other liabilities	1,375	429	2,036	1,732
Subordinated liabilities	900	900	900	900
Total related party liabilities at 31 Dec	10,907	8,565	6,148	3,963
Guarantees and commitments	17,707	17,707	16,477	13,746

The above outstanding balances arose in the ordinary course of business and on substantially the same terms, including interest rates and security, as for comparable transactions with third-party counterparties.

Some employees of HSBC Holdings are members of the HSBC Bank (UK) Pension Scheme, which is sponsored by a separate Group company. HSBC Holdings incurs a charge for these employees equal to the contributions paid into the scheme on their behalf. Disclosure in relation to the scheme is made in Note 5.

37	Events after the balance sheet date

A second interim dividend for 2022 of $0.23 per ordinary share (a distribution of approximately $4,593m) was approved by the Directors after 31 December 2022. HSBC Holdings called $2,350m 6.250% perpetual subordinated contingent convertible securities on 30 January 2023. The security is expected to be redeemed and be cancelled on 23 March 2023. HSBC Holdings also exercised the call option on AUD350m and AUD650m MREL on 13 January 2023 callable on 16 February 2023. The redemption took place on 16 February 2023. These accounts were approved by the Board of Directors on 21 February 2023 and authorised for issue.

38	HSBC Holdings' subsidiaries, joint ventures and associates

In accordance with section 409 of the Companies Act 2006 a list of HSBC Holdings plc subsidiaries, joint ventures and associates, the registered office addresses and the effective percentages of equity owned at 31 December 2022 are disclosed below.

Unless otherwise stated, the share capital comprises ordinary or common shares that are held by Group subsidiaries. The ownership percentage is provided for each undertaking. The undertakings below are consolidated by HSBC unless otherwise indicated.

Subsidiaries

Subsidiaries	% of share class held by immediate parent company (or by the Group where this varies)		Footnotes
452 TALF Plus ABS Opportunities SPV LLC	100.00		15
452 TALF SPV LLC	100.00		15
Almacenadora Banpacifico S.A. (In Liquidation)	99.99		16
Assetfinance December (F) Limited	100.00		17
Assetfinance December (H) Limited	100.00		18
Assetfinance December (P) Limited	100.00		18
Assetfinance December (R) Limited	100.00		18
Assetfinance June (A) Limited	100.00		18
Assetfinance June (D) Limited	100.00		17
Assetfinance Limited	100.00		18
Assetfinance March (B) Limited	100.00		19
Assetfinance March (D) Limited	100.00		17
Assetfinance March (F) Limited	100.00		18
Assetfinance September (F) Limited	100.00		18
Assetfinance September (G) Limited	100.00		17
AXA Insurance Pte. Ltd.	100.00		1, 20
B&Q Financial Services Limited	100.00		18
Banco HSBC S.A.	100.00		21
Banco Nominees (Guernsey) Limited	100.00		22
Banco Nominees 2 (Guernsey) Limited	100.00		22
Banco Nominees Limited	100.00		23
Beau Soleil Limited Partnership	N/A		0, 46
Beijing Miyun HSBC Rural Bank Company Limited	100.00		12, 24
BentallGreenOak China Real Estate Investments L.P.	N/A		0, 1, 25
Canada Crescent Nominees (UK) Limited	100.00		18
Canada Square Nominees (UK) Limited	100.00		18
Capco/Cove, Inc.	100.00		26
Card-Flo #1, Inc.	100.00		15
Card-Flo #3, Inc.	100.00		15
CC&H Holdings LLC	100.00		27
CCF & Partners Asset Management Limited	100.00	(99.99)	18
CCF Holding (Liban) S.A.L. (In Liquidation)	74.99		28
Charterhouse Administrators (D.T.) Limited	100.00	(99.99)	18
Charterhouse Management Services Limited	100.00	(99.99)	18
Charterhouse Pensions Limited	100.00		18
Chongqing Dazu HSBC Rural Bank Company Limited	100.00		12, 29
Chongqing Fengdu HSBC Rural Bank Company Limited	100.00		12, 30
Chongqing Rongchang HSBC Rural Bank Company Limited	100.00		12, 31
COIF Nominees Limited	N/A		0, 18
Corsair IV Financial Services Capital Partners - B, LP	N/A		0, 1, 32
Dalian Pulandian HSBC Rural Bank Company Limited	100.00		12, 33
Decision One Mortgage Company, LLC	N/A		0, 34
Dem 9	100.00	(99.99)	4, 35
Dempar 1	100.00	(99.99)	4, 35
Desarrollo Turistico, S.A. de C.V. (In Liquidation)	100.00	(99.99)	16
Electronic Data Process México, S.A. de C.V.	100.00		1, 16
Eton Corporate Services Limited	100.00		22
Far East Leasing SA (In Dissolution)	100.00		36
Flandres Contentieux S.A.	100.00	(99.99)	35
Foncière Elysées	100.00	(99.99)	35
Fujian Yongan HSBC Rural Bank Company Limited	100.00		12, 37
Fulcher Enterprises Company Limited	100.00	(62.14)	38
Fundacion HSBC, A.C.	100.00	(99.99)	11, 16
Giller Ltd.	100.00		26

Subsidiaries	% of share class held by immediate parent company (or by the Group where this varies)		Footnotes
GPIF Co-Investment, LLC	N/A		0, 15
Griffin International Limited	100.00		18
Grupo Financiero HSBC, S. A. de C. V.	99.99		16
Guangdong Enping HSBC Rural Bank Company Limited	100.00		12, 39
Guangzhou HSBC Real Estate Company Ltd	100.00		1, 12, 40
Hang Seng (Nominee) Limited	100.00	(62.14)	38
Hang Seng Bank (China) Limited	100.00	(62.14)	41
Hang Seng Bank (Trustee) Limited	100.00	(62.14)	38
Hang Seng Bank Limited	62.14		38
Hang Seng Bullion Company Limited	100.00	(62.14)	38
Hang Seng Credit Limited	100.00	(62.14)	38
Hang Seng Data Services Limited	100.00	(62.14)	38
Hang Seng Finance Limited	100.00	(62.14)	38
Hang Seng Financial Information Limited	100.00	(62.14)	38
Hang Seng Indexes (Netherlands) B.V.	100.00	(62.14)	1, 42
Hang Seng Indexes Company Limited	100.00	(62.14)	38
Hang Seng Insurance Company Limited	100.00	(62.14)	38
Hang Seng Investment Management Limited	100.00	(62.14)	38
Hang Seng Investment Services Limited	100.00	(62.14)	38
Hang Seng Life Limited (In Liquidation)	100.00	(62.14)	43
Hang Seng Qianhai Fund Management Company Limited	70.00	(43.49)	12, 44
Hang Seng Real Estate Management Limited	100.00	(62.14)	38
Hang Seng Securities Limited	100.00	(62.14)	38
Hang Seng Security Management Limited	100.00	(62.14)	38
HASE Wealth Limited	100.00	(62.14)	1, 38
Haseba Investment Company Limited	100.00	(62.14)	38
HFC Bank Limited (In Liquidation)	100.00		45
High Time Investments Limited	100.00	(62.14)	38
HLF	100.00	(99.99)	35
Honey Blue Enterprises Limited	100.00		1, 46
Honey Green Enterprises Ltd.	100.00		47
Honey Grey Enterprises Limited	100.00		1, 46
Honey Silver Enterprises Limited	100.00		1, 46
Household International Europe Limited (In Liquidation)	100.00		45
Household Pooling Corporation	100.00		48
Housing (USA) LLP	N/A		0, 1, 27
HSBC (BGF) Investments Limited	100.00		18
HSBC (General Partner) Limited	100.00		2, 79
HSBC (Guernsey) GP PCC Limited	100.00		22
HSBC (Kuala Lumpur) Nominees Sdn Bhd	100.00		49
HSBC (Malaysia) Trustee Berhad	100.00		49
HSBC (Singapore) Nominees Pte Ltd	100.00		20
HSBC Agency (India) Private Limited	100.00		50
HSBC Alternative Investments Limited	100.00		18
HSBC Amanah Malaysia Berhad	100.00		49
HSBC Americas Corporation (Delaware)	100.00		15
HSBC Argentina Holdings S.A.	100.00		51
HSBC Asia Holdings B.V.	100.00		18
HSBC Asia Holdings Limited	100.00		2, 46
HSBC Asia Pacific Holdings (UK) Limited	100.00		18
HSBC Asset Finance (UK) Limited	100.00		18
HSBC Asset Finance M.O.G. Holdings (UK) Limited	100.00		18
HSBC Asset Management (Fund Services UK) Limited	100.00		1, 18
HSBC Asset Management (India) Private Limited	100.00		52
HSBC Asset Management (Japan) Limited	100.00		53
HSBC Assurances Vie (France)	100.00	(99.99)	54
HSBC Australia Holdings Pty Limited	100.00		55
HSBC BANK (CHILE)	100.00	(99.99)	56
HSBC Bank (China) Company Limited	100.00		12, 57
HSBC Bank (General Partner) Limited	100.00		79
HSBC Bank (Mauritius) Limited	100.00		58
HSBC Bank (RR) (Limited Liability Company)	N/A		0, 13, 59
HSBC Bank (Singapore) Limited	100.00		20
HSBC Bank (Taiwan) Limited	100.00		60
HSBC Bank (Uruguay) S.A.	100.00		61
HSBC Bank (Vietnam) Ltd.	100.00		62
HSBC Bank A.S.	100.00	(99.99)	63
HSBC Bank Argentina S.A.	99.99		51
HSBC Bank Armenia cjsc	100.00		64
HSBC Bank Australia Limited	100.00		55
HSBC Bank Bermuda Limited	100.00		23
HSBC Bank Canada	100.00		65
HSBC Bank Capital Funding (Sterling 1) LP	N/A		0, 79
HSBC Bank Capital Funding (Sterling 2) LP	N/A		0, 79
HSBC Bank Egypt S.A.E	94.54		66
HSBC Bank Malaysia Berhad	100.00		49
HSBC Bank Malta p.l.c.	70.03		67
HSBC Bank Middle East Limited	100.00		68
HSBC Bank Middle East Limited Representative Office Morocco SARL (In Liquidation)	100.00		69
HSBC Bank Oman S.A.O.G.	51.00		70
HSBC Bank Pension Trust (UK) Limited	100.00		18
HSBC Bank plc	100.00		2, 18
HSBC Bank USA, National Association	100.00		71
HSBC Branch Nominee (UK) Limited	100.00		17
HSBC Brasil Holding S.A.	100.00		21
HSBC Broking Forex (Asia) Limited	100.00		46
HSBC Broking Futures (Asia) Limited	100.00		46
HSBC Broking Futures (Hong Kong) Limited	100.00		46
HSBC Broking Securities (Asia) Limited	100.00		46
HSBC Broking Securities (Hong Kong) Limited	100.00		46
HSBC Broking Services (Asia) Limited	100.00		46
HSBC Canadian Covered Bond (Legislative) GP Inc.	100.00		72
HSBC Canadian Covered Bond (Legislative) Guarantor Limited Partnership	N/A		0, 72
HSBC Capital (USA), Inc.	100.00		15
HSBC Capital Funding (Dollar 1) L.P.	N/A		79
HSBC Card Services Inc.	100.00		15
HSBC Casa de Bolsa, S.A. de C.V., Grupo	100.00	(99.99)	16
HSBC Cayman Limited	100.00		73
HSBC Cayman Services Limited	100.00		73
HSBC City Funding Holdings	100.00		18
HSBC Client Holdings Nominee (UK) Limited	100.00		18
HSBC Client Nominee (Jersey) Limited	100.00		74
HSBC Columbia Funding, LLC	N/A		0, 15
HSBC Continental Europe	99.99		35
HSBC Corporate Advisory (Malaysia) Sdn Bhd	100.00		49
HSBC Corporate Finance (Hong Kong) Limited	100.00		46
HSBC Corporate Secretary (UK) Limited	100.00		2, 18
HSBC Corporate Trustee Company (UK) Limited	100.00		18
HSBC Custody Nominees (Australia) Limited	100.00		55
HSBC Custody Services (Guernsey) Limited	100.00		22
HSBC Daisy Investments (Mauritius) Limited	100.00		75
HSBC Diversified Loan Fund General Partner Sarl	N/A		76
HSBC Electronic Data Processing (Guangdong) Limited	100.00		12, 77
HSBC Electronic Data Processing (Malaysia) Sdn Bhd	100.00		78
HSBC Electronic Data Processing (Philippines), Inc.	99.99		79
HSBC Electronic Data Processing India Private Limited	100.00		80
HSBC Electronic Data Processing Lanka (Private) Limited	100.00		81
HSBC Electronic Data Service Delivery (Egypt) S.A.E.	100.00		82
HSBC Epargne Entreprise (France)	100.00	(99.99)	54
HSBC Equipment Finance (UK) Limited	100.00		17
HSBC Equity (UK) Limited	100.00		18
HSBC Europe B.V.	100.00		18
HSBC Executor & Trustee Company (UK) Limited	100.00		17
HSBC Factoring (France)	100.00	(99.99)	35
HSBC Finance (Netherlands)	100.00		2, 18
HSBC Finance Corporation	100.00		15
HSBC Finance Limited	100.00		18
HSBC Finance Mortgages Inc.	100.00		83
HSBC Finance Transformation (UK) Limited	100.00		18
HSBC Financial Advisors Singapore Pte. Ltd.	100.00		1, 20
HSBC Financial Services (Lebanon) s.a.l.	99.65		84
HSBC Financial Services (Uruguay) S.A. (In Liquidation)	100.00		85
HSBC FinTech Services (Shanghai) Company Limited	100.00		86
HSBC Global Asset Management (Bermuda) Limited	100.00		3, 23
HSBC Global Asset Management (Canada) Limited	100.00		65
HSBC Global Asset Management (Deutschland) GmbH	100.00		87
HSBC Global Asset Management (France)	100.00	(99.99)	54
HSBC Global Asset Management (Hong Kong) Limited	100.00		46
HSBC Global Asset Management (Malta) Limited	100.00	(70.03)	88
HSBC Global Asset Management (México), S.A. de C.V., Sociedad Operadora de Fondos de Inversión, Grupo Financiero HSBC	100.00	(99.99)	16
HSBC Global Asset Management (Singapore) Limited	100.00		20
HSBC Global Asset Management (Switzerland) AG	100.00		4, 89
HSBC Global Asset Management (Taiwan) Limited	100.00		46
HSBC Global Asset Management (UK) Limited	100.00		18
HSBC Global Asset Management (USA) Inc.	100.00		91
HSBC Global Asset Management Argentina S.A. Sociedad Gerente de Fondos Comunes de Inversión	100.00		51
HSBC Global Asset Management Holdings (Bahamas) Limited	100.00		92
HSBC Global Asset Management Limited	100.00		2, 18
HSBC Global Custody Nominee (UK) Limited	100.00		18
HSBC Global Custody Proprietary Nominee (UK) Limited	100.00		1, 18
HSBC Global Services (Canada) Limited	100.00		83
HSBC Global Services (China) Holdings Limited	100.00		18
HSBC Global Services (Hong Kong) Limited	100.00		46
HSBC Global Services (UK) Limited	100.00		18
HSBC Global Services Limited	100.00		2, 18
HSBC Global Shared Services (India) Private Limited (In Liquidation)	99.99		1, 50
HSBC Group Management Services Limited	100.00		18
HSBC Group Nominees UK Limited	100.00		2, 18
HSBC Holdings B.V.	100.00		18
HSBC IM Pension Trust Limited	100.00		18
HSBC Infrastructure Debt GP 1 S.à r.l.	N/A		0, 93
HSBC Infrastructure Debt GP 2 S.à r.l.	N/A		0, 93
HSBC Infrastructure Limited	100.00		18
HSBC Institutional Trust Services (Asia)	100.00		46
HSBC Institutional Trust Services (Bermuda) Limited	100.00		23
HSBC Institutional Trust Services (Mauritius) Limited	100.00		94
HSBC Institutional Trust Services (Singapore) Limited	100.00		20
HSBC Insurance (Asia) Limited	100.00		95
HSBC Insurance (Asia-Pacific) Holdings Limited	100.00		46
HSBC Insurance (Bermuda) Limited	100.00		23
HSBC Insurance (Singapore) Pte. Limited	100.00		20
HSBC Insurance Agency (USA) Inc.	100.00		91
HSBC Insurance Brokerage Company Limited	100.00		1, 96
HSBC Insurance Brokers Greater China Limited	100.00		1, 46
HSBC Insurance Holdings Limited	100.00		2, 18
HSBC Insurance SAC 1 (Bermuda) Limited	100.00		23
HSBC Insurance SAC 2 (Bermuda) Limited	100.00		1, 23
HSBC Insurance Services Holdings Limited	100.00		18
HSBC International Finance Corporation (Delaware)	100.00		97
HSBC International Trustee (BVI) Limited	100.00		98
HSBC International Trustee (Holdings) Pte. Limited	100.00		20
HSBC International Trustee Limited	100.00		99
HSBC Inversiones S.A.	100.00		56
HSBC InvestDirect (India) Private Limited	100.00		52
HSBC InvestDirect Financial Services (India) Limited	99.99	(99.98)	52
HSBC InvestDirect Sales & Marketing (India) Limited	98.99	(98.98)	50
HSBC InvestDirect Securities (India) Private Limited	99.99		52
HSBC Investment and Insurance Brokerage, Philippines Inc.	99.99		100
HSBC Investment Bank Holdings B.V.	100.00		18
HSBC Investment Bank Holdings Limited	100.00		18
HSBC Investment Company Limited	100.00		2, 18
HSBC Investment Funds (Canada) Inc.	100.00		65
HSBC Investment Funds (Hong Kong) Limited	100.00		46
HSBC Investment Funds (Luxembourg) SA	100.00		101
HSBC Invoice Finance (UK) Limited	100.00		102
HSBC Issuer Services Common Depositary Nominee (UK) Limited	100.00		18
HSBC Issuer Services Depositary Nominee (UK) Limited	100.00		18
HSBC Latin America B.V.	100.00		18
HSBC Latin America Holdings (UK) Limited	100.00		2, 18
HSBC Leasing (Asia) Limited	100.00		46
HSBC Life (Bermuda) Limited	100.00		23
HSBC Life (Cornell Centre) Limited	100.00		95
HSBC Life (Edwick Centre) Limited	100.00		95
HSBC Life (International) Limited	100.00		23
HSBC Life (Property) Limited	100.00		95
HSBC Life (Tsing Yi Industrial) Limited	100.00		95
HSBC Life (UK) Limited	100.00		18
HSBC Life (Workshop) Limited	100.00		1, 95
HSBC Life Assurance (Malta) Limited	100.00	(70.03)	88
HSBC Life Insurance Company Limited	100.00		12, 57
HSBC LU Nominees Limited	100.00		18
HSBC Management (Guernsey) Limited	100.00		103
HSBC Markets (USA) Inc.	100.00		15
HSBC Marking Name Nominee (UK) Limited	100.00		18
HSBC Master Trust Trustee Limited	100.00		18
HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo Financiero HSBC	99.99		16
HSBC Middle East Asset Co. LLC	100.00		104
HSBC Middle East Holdings B.V.	100.00		2, 68
HSBC Middle East Leasing Partnership	N/A		0, 68
HSBC Middle East Securities L.L.C	100.00		105
HSBC Mortgage Corporation (Canada)	100.00		65
HSBC Mortgage Corporation (USA)	100.00		15
HSBC Nominees (Asing) Sdn Bhd	100.00		49
HSBC Nominees (Hong Kong) Limited	100.00		46
HSBC Nominees (New Zealand) Limited	100.00		106
HSBC Nominees (Tempatan) Sdn Bhd	100.00		49
HSBC North America Holdings Inc.	100.00		3, 15
HSBC Operational Services GmbH	80.00		87
HSBC Overseas Holdings (UK) Limited	100.00		2, 18
HSBC Overseas Investments Corporation (New York)	100.00		107
HSBC Overseas Nominee (UK) Limited	100.00		18
HSBC Participaciones (Argentina) S.A.	100.00		51
HSBC PB Corporate Services 1 Limited	100.00		74
HSBC PB Services (Suisse) SA	100.00		108
HSBC Pension Trust (Ireland) DAC	100.00		109
HSBC Pensiones, S.A. (In Liquidation)	100.00		16
HSBC PI Holdings (Mauritius) Limited	100.00		94
HSBC Portfoy Yonetimi A.S.	100.00		63
HSBC Preferential LP (UK)	100.00		18
HSBC Private Bank (Luxembourg) S.A.	100.00		101
HSBC Private Bank (Suisse) SA	100.00		108
HSBC Private Bank (UK) Limited	100.00		18
HSBC Private Banking Holdings (Suisse) SA	100.00		108
HSBC Private Banking Nominee 3 (Jersey) Limited	100.00		74
HSBC Private Equity Investments (UK) Limited	100.00		18
HSBC Private Investment Counsel (Canada) Inc.	100.00		65
HSBC Private Markets Management SARL	N/A		0, 110
HSBC Private Trustee (Hong Kong) Limited	100.00		46
HSBC Professional Services (India) Private Limited	100.00		50
HSBC Property (UK) Limited	100.00		18
HSBC Property Funds (Holding) Limited	100.00		18
HSBC Provident Fund Trustee (Hong Kong) Limited	100.00		46
HSBC Qianhai Securities Limited	90.00		12, 111
HSBC Real Estate Leasing (France)	100.00	(99.99)	35
HSBC REGIO Fund General Partner S.à r.l.	100.00		1, 93
HSBC REIM (France)	100.00	(99.99)	54
HSBC Retirement Benefits Trustee (UK) Limited	100.00		1, 2, 18
HSBC Retirement Services Limited	100.00		1, 18
HSBC Saudi Arabia, Closed Joint Stock Company	66.19		112
HSBC Savings Bank (Philippines) Inc.	99.99		113
HSBC Securities (Canada) Inc.	100.00		83
HSBC Securities (Egypt) S.A.E. (In Liquidation)	100.00	(94.65)	66
HSBC Securities (Japan) Co., Ltd.	100.00		1, 53
HSBC Securities (Japan) Limited	100.00		18
HSBC Securities (Singapore) Pte Limited	100.00		20
HSBC Securities (South Africa) (Pty) Limited	100.00		114
HSBC Securities (Taiwan) Corporation Limited	100.00		60
HSBC Securities (USA) Inc.	100.00		15
HSBC Securities and Capital Markets (India) Private Limited	99.99		50
HSBC Securities Brokers (Asia) Limited	100.00		46
HSBC Securities Investments (Asia) Limited	100.00		46
HSBC Securities Services (Bermuda) Limited	100.00		23
HSBC Securities Services (Guernsey) Limited	100.00		22
HSBC Securities Services (Ireland) DAC	100.00		109
HSBC Securities Services (Luxembourg) S.A.	100.00		101
HSBC Securities Services Holdings (Ireland) DAC	100.00		109
HSBC Securities Services Nominees Limited	100.00		1, 46
HSBC Seguros de Retiro (Argentina) S.A.	100.00	(99.99)	51
HSBC Seguros de Vida (Argentina) S.A.	100.00	(99.99)	51
HSBC Seguros, S.A de C.V., Grupo Financiero HSBC	100.00	(99.99)	16
HSBC Service Company Germany GmbH	100.00	(99.99)	1, 87
HSBC Service Delivery (Polska) Sp. z o.o.	100.00		115
HSBC Services (France)	100.00	(99.99)	35
HSBC Services Japan Limited	100.00		92
HSBC Services USA Inc.	100.00		116
HSBC Servicios Financieros, S.A. de C.V	100.00	(99.99)	16
HSBC Servicios, S.A. DE C.V., Grupo Financiero HSBC	100.00	(99.99)	16
HSBC SFH (France)	100.00	(99.99)	4, 54
HSBC SFT (C.I.) Limited	100.00		22
HSBC Software Development (Guangdong) Limited	100.00		117
HSBC Software Development (India) Private Limited	100.00		118
HSBC Software Development (Malaysia) Sdn Bhd	100.00		78
HSBC Specialist Investments Limited	100.00		18
HSBC Technology & Services (China) Limited	100.00		57
HSBC Technology & Services (USA) Inc.	100.00		15
HSBC Titan GmbH & Co. KG	100.00	(99.99)	1, 87
HSBC Transaction Services GmbH	100.00	(99.99)	6, 87
HSBC Trinkaus & Burkhardt (International) S.A.	100.00	(99.99)	119
HSBC Trinkaus & Burkhardt Gesellschaft fur Bankbeteiligungen mbH	100.00	(99.99)	87
HSBC Trinkhaus & Burkhardt GmbH	100.00	(99.99)	87
HSBC Trinkaus Europa Immobilien-Fonds Nr. 5 GmbH	100.00	(99.99)	87
HSBC Trinkaus Family Office GmbH	100.00	(99.99)	6, 87
HSBC Trinkaus Real Estate GmbH	100.00	(99.99)	6, 87
HSBC Trust Company (Canada)	100.00		65
HSBC Trust Company (Delaware), National Association	100.00		97
HSBC Trust Company (UK) Limited	100.00		18
HSBC Trustee (C.I.) Limited	100.00		74
HSBC Trustee (Cayman) Limited	100.00		120
HSBC Trustee (Guernsey) Limited	100.00		22
HSBC Trustee (Hong Kong) Limited	100.00		46
HSBC Trustee (Singapore) Limited	100.00		20
HSBC UK Bank plc	100.00		2, 17
HSBC UK Client Nominee Limited	100.00		17
HSBC UK Covered Bonds LLP	N/A		0, 17
HSBC UK Holdings Limited	100.00		2, 18
HSBC USA Inc.	100.00		107
HSBC Ventures USA Inc.	100.00		15
HSBC Violet Investments (Mauritius) Limited	100.00		75
HSBC Wealth Client Nominee Limited	100.00		1, 17
HSBC Yatirim Menkul Degerler A.S.	100.00		63
HSI Asset Securitization Corporation	100.00		15
HSI International Limited	100.00	(62.14)	38
HSIL Investments Limited	100.00		18
Hubei Macheng HSBC Rural Bank Company Limited	100.00		121
Hubei Suizhou Cengdu HSBC Rural Bank Company Limited	100.00		12, 122
Hubei Tianmen HSBC Rural Bank Company Limited	100.00		123
Hunan Pingjiang HSBC Rural Bank Company Limited	100.00		12, 124
Imenson Limited	100.00	(62.14)	38
INKA Internationale Kapitalanlagegesellschaft mbH	100.00	(99.99)	87
Inmobiliaria Bisa, S.A. de C.V.	99.98		16
Inmobiliaria Grufin, S.A. de C.V.	100.00	(99.99)	16
Inmobiliaria Guatusi, S.A. de C.V.	100.00	(99.99)	16
James Capel (Nominees) Limited	100.00		18
James Capel (Taiwan) Nominees Limited	100.00		18
John Lewis Financial Services Limited	100.00		18
Keyser Ullmann Limited	100.00	(99.99)	18
L&T Investment Management Limited	100.00	(99.99)	1, 52
Lion Corporate Services Limited	100.00		46
Lion International Corporate Services Limited	100.00		1, 99
Lion International Management Limited	100.00		99
Lion Management (Hong Kong) Limited	100.00		1, 46
Lyndholme Limited	100.00		46
Marks and Spencer Financial Services plc	100.00		125
Marks and Spencer Unit Trust Management Limited	100.00		125
Maxima S.A. AFJP (In Liquidation)	99.98		51
Midcorp Limited	100.00		18
Midland Bank (Branch Nominees) Limited	100.00		17
Midland Nominees Limited	100.00		17
MIL (Cayman) Limited	100.00		73
MP Payments Group Limited	100.00		1, 18
MP Payments Operations Limited	100.00		1, 18
MP Payments UK Limited	100.00		1, 18
MW Gestion SA	100.00		51
Prudential Client HSBC GIS Nominee (UK)	100.00		18
PT Bank HSBC Indonesia	99.99	(98.93)	126
PT HSBC Sekuritas Indonesia	85.00		126
R/CLIP Corp.	100.00		15
Real Estate Collateral Management Company	100.00		15
Republic Nominees Limited	100.00		22
RLUKREF Nominees (UK) One Limited	100.00		1, 18
RLUKREF Nominees (UK) Two Limited	100.00		1, 18
S.A.P.C. - Ufipro Recouvrement	99.99		35
Saf Baiyun	100.00	(99.99)	4, 35
Saf Guangzhou	100.00	(99.99)	4, 35
SCI HSBC Assurances Immo	100.00	(99.99)	54
Serai Limited	100.00		46
Serai Technology Development (Shanghai) Limited	100.00		1, 12, 57
SFM	100.00	(99.99)	35
SFSS Nominees (Pty) Limited	100.00		114
Shandong Rongcheng HSBC Rural Bank Company Limited	100.00		12, 127
Shenzhen HSBC Development Company Ltd	100.00		1, 12, 128
Sico Limited	100.00		129
SNC Les Oliviers D'Antibes	60.00	(59.99)	11, 54
SNCB/M6 - 2008 A	100.00	(99.99)	35
SNCB/M6-2007 A	100.00	(99.99)	4, 35
SNCB/M6-2007 B	100.00	(99.99)	4, 35
Société Française et Suisse	100.00	(99.99)	35
Somers Dublin DAC	100.00	(99.99)	109
Somers Nominees (Far East) Limited	100.00		23
Sopingest	100.00	(99.99)	35
South Yorkshire Light Rail Limited	100.00		18
St Cross Trustees Limited	100.00		17
Sun Hung Kai Development (Lujiazui III) Limited	100.00		12, 57
Swan National Limited	100.00		18
The Hongkong and Shanghai Banking Corporation Limited	100.00		5, 46
The Venture Catalysts Limited	100.00		18
Tooley Street View Limited	100.00		2, 18
Tower Investment Management	100.00		130
Trinkaus Australien Immobilien Fonds Nr. 1 Brisbane GmbH & Co. KG	100.00	(99.99)	87
Trinkaus Australien Immobilien-Fonds Nr. 1 Treuhand-GmbH	100.00	(99.99)	6, 87
Trinkaus Europa Immobilien-Fonds Nr.3 Objekt Utrecht Verwaltungs-GmbH	100.00	(99.99)	87
Trinkaus Immobilien-Fonds Geschaeftsfuehrungs-GmbH	100.00	(99.99)	6, 87
Trinkaus Immobilien-Fonds Verwaltungs-GmbH	100.00	(99.99)	6, 87
Trinkaus Private Equity Management GmbH	100.00	(99.99)	87
Trinkaus Private Equity Verwaltungs GmbH	100.00	(99.99)	6, 87
Tropical Nominees Limited	100.00		73
Turnsonic (Nominees) Limited	100.00		17
Valeurs Mobilières Elysées	100.00	(99.99)	35
Wardley Limited	100.00		46
Wayfoong Nominees Limited	100.00		46
Westminster House, LLC	N/A		0, 15
Woodex Limited	100.00		23
Yan Nin Development Company Limited	100.00	(62.14)	38

Joint ventures

The undertakings below are joint ventures and equity accounted.

Joint ventures	% of share class held by immediate parent company (or by the Group where this varies)		Footnotes
Climate Asset Management Limited	40.00		1, 131
Global Payments Technology Mexico S.A. De C.V	50.00		16
HCM Holdings Limited (In Liquidation)	50.99		45
Pentagreen Capital Pte. Ltd	50.00		1, 132
ProServe Bermuda Limited	50.00		133
The London Silver Market Fixing Limited	N/A		0 1, 134
Vaultex UK Limited	50.00		135

Associates

The undertakings below are associates and equity accounted.

Associates	% of share class held by immediate parent company (or by the Group where this varies)		Footnotes
Bank of Communications Co., Ltd.	19.03		136
Barrowgate Limited	15.31		137
BGF Group PLC	24.61		138
Bud Financial Limited	5.36		1, 139
Canara HSBC Life Insurance Company Limited	26.00		140
Contour Pte Ltd	12.65		1, 141
Divido Financial Services Limited	5.56		1, 142
Electronic Payment Services Company (Hong Kong) Limited	38.66		46
Episode Six Limited	7.02		1, 143
EPS Company (Hong Kong) Limited	38.66		46
EURO Secured Notes Issuer	16.67		144
GZHS Research Co Ltd	20.50		145
HSBC Jintrust Fund Management Company Limited	49.00		57
Liquidity Match LLC	N/A		0, 1, 146
London Precious Metals Clearing Limited	30.00		1, 147
MENA Infrastructure Fund (GP) Ltd	33.33		145
Monese Ltd	5.39		1, 149
Quantexa Ltd	10.10		131
Services Epargne Entreprise	14.18		150
The London Gold Market Fixing Limited	25.00		134
The Saudi British Bank	31.00		152
Threadneedle Software Holdings Limited	6.56		1, 153
Trade Information Network Limited	16.67		1, 154
Trinkaus Europa Immobilien-Fonds Nr. 7 Frankfurt Mertonviertel KG	N/A		0, 87
Vizolution Limited	17.95		1, 155
We Trade Innovation Designated Activity Company	9.88		1, 156

Footnotes for Note 38
Description of Shares
0	Where an entity is governed by voting rights, HSBC consolidates when it holds - directly or indirectly - the necessary voting rights to pass resolutions by the governing body. In all other cases, the assessment of control is more complex and requires judgement of other factors, including having exposure to variability of returns, power to direct relevant activities, and whether power is held as an agent or principal. HSBC's consolidation policy is described in Note 1.2(a).
1	Management has determined that these undertakings are excluded from consolidation in the Group accounts as these entities do not meet the definition of subsidiaries in accordance with IFRS. HSBC's consolidation policy is described in Note 1.2(a).
2	Directly held by HSBC Holdings plc
3	Preference Shares
4	Actions
5	Redeemable Preference Shares
6	GmbH Anteil
7	Limited and Unlimited Liability Shares
8	Liquidating Share Class
9	Nominal Shares
10	Non-Participating Voting Shares
11	Parts
12	Registered Capital Shares
13	Russian Limited Liability Company Shares
14	Stückaktien

Registered offices
15	c/o The Corporation Trust Company 1209 Orange Street, Wilmington, Delaware, United States of America, 19801
16	Paseo de la Reforma 347 Col. Cuauhtemoc, Mexico, 06500
17	1 Centenary Square, Birmingham, United Kingdom, B1 1HQ
18	8 Canada Square, London, United Kingdom, E14 5HQ
19	5 Donegal Square South, Northern Ireland, Belfast, United Kingdom, BT1 5JP
20	10 Marina Boulevard #48-01 Marina Bay Financial Centre, Singapore, 018983
21	1909 Avenida Presidente Juscelino Kubitschek, 19° andar, Torre Norte, São Paulo Corporate Towers, São Paulo, Brazil, 04551-903
22	Arnold House, St Julians Avenue, St Peter Port, Guernsey, GY1 3NF
23	37 Front Street, Hamilton, Bermuda, HM 11
24	First Floor, Xinhua Bookstore Xindong Road (SE of roundabout), Miyun District, Beijing, China
25	Oak House Hirzel Street, St Peter Port, Guernsey, GY1 2NP
26	2929 Walden Avenue, Depew, New York, United States of
27	Corporation Service Company 251 Little Falls Drive, Wilmington, Delaware, United States of America, 19808
28	Solidere - Rue Saad Zaghloul Immeuble - 170 Marfaa, P.O. Box 17 5476 Mar Michael, Beyrouth, Lebanon, 11042040
29	No 1, Bei Huan East Road Dazu County, Chongqing, China
30	No 107 Ping Du Avenue (E), Sanhe Town, Fengdu County, Chongqing, China
31	No. 3, 5, 7, Haitang Erzhi Road Changyuan, Rongchang, Chongqing, China, 402460
32	c/o Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town, Grand Cayman, Cayman Islands, KY1-9005
33	First & Second Floor, No.3 Nanshan Road, Pulandian , Dalian, Liaoning, China
34	160 Mine Lake CT, Ste 200, Raleigh, North Carolina, United States Of America, 27615-6417
35	38 avenue Kléber, Paris, France, 75116
36	MMG Tower, 23 floor Ave. Paseo del Mar Urbanizacion Costa del Este, Panama
37	No. 1 1211 Yanjiang Zhong Road, Yongan, Fujian, China
38	83 Des Voeux Road Central, Hong Kong
39	No.44 Xin Ping Road Central, Encheng, Enping, Guangdong, China, 529400
40	Room 311, Cheng Hui No. 2, Nan Sha Street, Nan Sha District, Guangzhou, Guangdong, China
41	34/F, 36/F, Unit 031 of 45/F, and 46/F, Hang Seng Bank Tower, 1000 Lujiazui Ring Road, Pilot Free Trade Zone, Shanghai, China, 200120
42	Gustav Mahlerplein 2 1082 MA, Amsterdam, Netherlands
43	8/F, Prince's Building, 10 Chater Road, Central, Hong Kong
44	1001, T2 Office Building, Qianhai Kerry Business Center, Qianhai Avenue, Nanshan Street, Qianhai Shenzhen-Hong Kong Cooperation Zone, Shenzhen, Guangdong, China
45	156 Great Charles Street, Queensway, Birmingham, West Midlands, United Kingdom, B3 3HN
46	1 Queen's Road, Central, Hong Kong
47	Commerce House, Wickhams Cay 1, P.O. Box 3140, Road Town, Tortola, British Virgin Islands, VG1110
48	The Corporation Trust Company of Nevada 311 S. Division Street, Carson City, Nevada, United States of America, 89703
49	Menara IQ, Lingkaran TRX, Tun Razak Exchange, Kuala Lumpur, Malaysia, 55188
50	52/60 M G Road Fort, Mumbai, India, 400 001
51	557 Bouchard Level 20, Ciudad de Buenos Aires, Capital Federal, Argentina, C1106ABG
52	9-11 Floors, NESCO IT Park Building No. 3 Western Express Highway, Goregaon (East), Mumbai, India, 400063
53	HSBC Building 11-1, Nihonbashi 3-chome, Chuo-ku, Tokyo, Japan, 103-0027
54	Immeuble Cœur Défense, 110 Esplanade du Général de Gaulle, Courbevoie, France, 92400
55	Level 36, Tower 1, International Towers Sydney, 100 Barangaroo Avenue, Sydney, New South Wales, Australia, 2000
56	Isidora Goyenechea 2800. 23rd Floor, Las Condes, Santiago, Chile, 7550647
57	HSBC Building Shanghai ifc, 8 Century Avenue, Pudong, Shanghai, China, 200120
58	IconEbene, Level 5 Office 1 (West Wing), Rue de L'institut, Ebene, Mauritius
59	2 Paveletskaya Square Building 2, Moscow, Russian Federation, 115054
60	54F, 7 Xinyi Road Sec. 5, Xinyi District, Taipei, Taiwan
61	1266 Dr Luis Bonativa, 1266 Piso 30 (Torre IV WTC), Montevideo, Uruguay, CP 11.000
62	The Metropolitan, 235 Dong Khoi Street, District 1, Ho Chi Minh City, Viet Nam
63	Esentepe mah. Büyükdere Caddesi No.128, Istanbul, Türkiye, 34394
64	66 Teryan Street, Yerevan, Armenia, 0009
65	885 West Georgia Street, 3rd Floor, Vancouver, British Columbia, Canada, V6C 3E9
66	306 Corniche El Nil, Maadi, Egypt, 11728
67	116 Archbishop Street, Valletta, Malta
68	401, Level 4 Gate Precinct Building 2, Dubai International Financial Centre, P.O. Box 30444, Dubai, United Arab Emirates
69	Majer Consulting, Office 54/44, Building A1, Residence Ryad Anfa, Boulevard Omar El Khayam, Casa Finance City (CFC), Casablanca, Morocco
70	Al Khuwair Office, PO Box 1727, PC111 CPO Seeb, Muscat, Oman
71	1800 Tysons Boulevard Suite 50, Tysons, Virginia, United States of America, 22102
72	66 Wellington Street West, Suite 5300, Toronto, Ontario, Canada, M5K 1E6
73	P.O. Box 1109, Strathvale House, Ground Floor, 90 North Church Street , George Town, Grand Cayman, Cayman Islands, KY1-1102
74	HSBC House Esplanade, St. Helier, Jersey, JE1 1HS
75	c/o Rogers Capital St. Louis Business Centre, Cnr Desroches & St Louis Streets, Port Louis, Mauritius
76	49 avenue J.F. Kennedy, Luxembourg, 1855
77	4-17/F, Office Tower 2 TaiKoo Hui, No. 381 Tian He Road, Tian He District, Guangzhou, Guangdong, China
78	Suite 1005, 10th Floor, Wisma Hamzah Kwong, Hing No. 1, Leboh Ampang, Kuala Lumpur, Malaysia, 50100
79	Filinvest One Building, Northgate Cyberzone, Filinvest Corporate City, Alabang, Muntinlupa City, Philippines
80	HSBC House, Plot No.8, Survey No.64 (Part), Hightec City Layout Madhapur, Hyderabad, India, 500081
81	439, Sri Jayawardenapura Mawatha Welikada, Rajagiriya, Colombo, Sri Lanka
82	Smart Village 28th Km Cairo- Alexandria Desert Road Building, Cairo, Egypt
83	16 York Street, 6th Floor, Toronto, Ontario, Canada, M5J 0E6
84	Centre Ville 1341 Building, 4th Floor, Patriarche Howayek Street (facing Beirut Souks), PO Box Riad El Solh, Lebanon, 9597
85	World Trade Center, Montevideo Avenida Luis Alberto de Herrera 1248, Torre 1, Piso 15, Oficina 1502, Montevideo, Uruguay, CP 11300
86	Room 655, Building A, No. 888, Huan Hu West Two Road, Lin Gang New Area of Shanghai (Pilot) Free Trade Zone, Shanghai, China
87	Hansaallee 3, Düsseldorf, Germany, 40549
88	80 Mill Street, Qormi, Malta, QRM 3101
89	26 Gartenstrasse, Zurich, Switzerland, 8002
90	24th Floor, 97-99, Sec.2, Tunhwa S. Road, Taipei, Taiwan
91	452 Fifth Avenue, New York, United States of America, NY10018
92	Mareva House, 4 George Street, Nassau, Bahamas
93	4 rue Peternelchen, Howald, Luxembourg, 2370
94	6th floor HSBC Centre 18, Cybercity, Ebene, Mauritius, 72201
95	18th Floor, Tower 1, HSBC Centre, 1 Sham Mong Road, Kowloon, Hong Kong
96	Unit 201 Floor 2, Building 3, No. 12, Anxiang Street, Shunyi District, Beijing, China
97	300 Delaware Avenue, Suite 1401, Wilmington, Delaware, United States of America, 19801
98	Woodbourne Hall, Road Town, Tortola, British Virgin Islands, P.O. Box 916
99	PO Box 71, Craigmuir Chambers, Road Town Tortola, British Virgin Islands
100	5/F HSBC Centre 3058 Fifth Ave West, Bonifacio Global City, Taguig City, Philippines
101	18 Boulevard de Kockelscheuer, Luxembourg, 1821
102	21 Farncombe Road Worthing, United Kingdom, BN11 2BW
103	Arnold House, St Julians Avenue, St Peter Port, Guernsey, GY1 1WA
104	345-6791, HSBC Tower, Burj Khalifa Community, Dubai, United Arab Emirates
105	Office No.16, Owned by HSBC Bank Middle East Limited, Dubai Branch, Bur Dubai, Burj Khalifa, Dubai, United Arab Emirates
106	HSBC Tower, Level 21, 188 Quay Street, Auckland, New Zealand, 1010
107	The Corporation Trust Incorporated, 2405 York Road, Suite 201, Lutherville Timonium, Maryland, United States of America, 21093
108	Quai des Bergues 9-17, Geneva, Switzerland, 1201
109	1 Grand Canal Square, Grand Canal Harbour, Dublin 2, Ireland, D02 P820
110	5 rue Heienhaff, Senningerberg, Luxembourg, 1736
111	Block 27 A&B, Qianhai Enterprise Dream Park No. 63 Qianwan Yi Road, Shenzhen-Hong Kong Cooperation Zone, Shenzhen, China, 518052
112	HSBC Building 7267 Olaya - Al Murrooj, Riyadh, Saudi Arabia, 12283 - 2255
113	Unit 1 GF The Commerical Complex Madrigal Avenue, Ayala Alabang Village, Muntinlupa City, Philippines, 1780
114	1 Mutual Place, 107 Rivonia Road, Sandton, Gauteng, South Africa, 2196
115	Kapelanka 42A , Krakow, Poland, 30-347
116	C T Corporation System 820 Bear Tavern Road, West Trenton, New Jersey, United States of America, 08628
117	L22, Office Tower 2, Taikoo Hui, 381 Tianhe Road, Tianhe District, Guangzhou, Guangdong, China
118	Business Bay, Wing 2, Tower B, Survey no 103, Hissa no. 2, Airport road, Yerwada, Pune, India, 411006
119	16 Boulevard d'Avranches, Luxembourg, Luxembourg, L-1160
120	P.O. Box 309 Ugland House, Grand Cayman, Cayman Islands, KY1-1104
121	No. 56 Yu Rong Street, Macheng, China, 438300
122	No. 205 Lie Shan Road Suizhou, Hubei, China
123	Building 3, Yin Zuo Di Jing Wan Tianmen New City, Tianmen, Hubei Province, China
124	RM101, 102 & 106 Sunshine Fairview, Sunshine Garden, Pedestrian Walkway, Pingjiang, China
125	Kings Meadow Chester Business Park , Chester, United Kingdom, CH99 9FB
126	World Trade Center 1, Jalan Jenderal Sudirman Kavling 29 - 31, Jakarta, Indonesia, 12920
127	No. 198-2 Chengshan Avenue (E), Rongcheng, China, 264300
128	Room 1303-13062 Marine Center Main Tower, 59 Linhai Road, Nanshan District, Shenzhen, China
129	Woodbourne Hall, Road Town, Tortola, British Virgin Islands, P.O. Box 3162
130	25 Main St. P.O. Box 694, Grand Cayman KY1 1107, Cayman Islands, KY1 1107
131	Hill House, 1 Little New Street, London , United Kingdom, EC4A 3TR
132	60B Orchard Road #06-18, The Atrium @Orchard, Singapore, 238891
133	c/o MUFG Fund Services (Bermuda) Limited, Cedar House, 4th Floor North, 41 Cedar Avenue, Hamilton, Bermuda, HM 12
134	c/o Hackwood Secretaries Limited, One Silk Street, London, United Kingdom, EC2Y 8HQ
135	All Saints Triangle, Caledonian Road, London, United Kingdom, N19UT
136	No.188, Yin Cheng Zhong Road China (Shanghai), Pilot Free Trade Zone, Shanghai, China
137	50/F, Lee Garden One, 33 Hysan Avenue, Hong Kong
138	13-15 York Buildings, London, United Kingdom, WC2N 6JU
139	Linen Court, Floor 3, 10 East Road, London, United Kingdom, N1 6AD
140	Unit No. 208, 2nd Floor, Kanchenjunga Building 18, Barakhamba Road, New Delhi, India, 110001
141	50 Raffles Place, #32-01 Singapore Land Tower, Singapore, 048623
142	Office 7, 35-37 Ludgate Hill, London, United Kingdom, EC4M 7JN
143	100 Town Square Place, Suite 201, Jersey City, New Jersey, United States Of America, 07310
144	7th Floor, 62 Threadneedle Street, London, United Kingdom, EC2R 8HP
145	Precinct Building 4, Level 3, Dubai International Financial Centre, Dubai, United Arab Emirates, PO Box 506553
146	9/F Amtel Building, 148 des Voeux Road Central, Central, Hong Kong
147	3 Avenue de l'Opera , Paris, France, 75001
148	Room 1303, 106 Feng Ze Dong Road, Nansha District, Guangzhou, Guangdong, China
149	Eagle House, 163 City Road, London, United Kingdom, EC1V 1NR
150	32 rue du Champ de Tir, Nantes, France, 44300
151	Ernst-Schneider-Platz 1 , Duesseldorf, Germany, 40212
152	Al Amir Abdulaziz Ibn Mossaad Ibn Jalawi Street, Riyadh, Saudi Arabia
153	2nd Floor, Regis House, 45 King William Street, London, United Kingdom, EC4R 9AN
154	3 More London Riverside, London, United Kingdom, SE1 2AQ
155	Office Block A, Bay Studios Business Park, Fabian Way, Swansea, Wales, United Kingdom, SA1 8QB
156	10 Earlsfort Terrace, Dublin, Ireland, DO2 T380

 

END

 

 

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