Annual Report and Accounts 1

RNS Number : 8224P

HSBC Holdings PLC

31 March 2009

 



The following regulated information, disseminated pursuant to DTR6.3.5, comprises the Annual Report and Accounts of HSBC Holdings plc for the year ended 31 December 2008, which was sent to shareholders of HSBC Holdings plc on 31 March 2009. The 2008 Annual Report and Accounts are available at: www.hsbc.com/financialresults.

HSBC HOLDINGS PLC ANNUAL REPORT AND ACCOUNTS 2008

Headquartered in London, HSBC is one of the largest banking and financial services organisations in the world. Its international network comprises some 10,000 properties in 86 countries and territories in Europe; Hong Kong; Rest of Asia-Pacific, including the Middle East and Africa; North America and Latin America.

With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by over 210,000 shareholders in 120 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Shares. 

HSBC provides a comprehensive range of financial services to more than 100 million customers through four customer groups and global businesses: Personal Financial Services (including consumer finance); Commercial Banking; Global Banking and Markets; and Private Banking.

Certain defined terms

Unless the context requires otherwise, 'HSBC Holdings' means HSBC Holdings plc and 'HSBC' or the 'Group' means HSBC Holdings together with its subsidiaries. Within this document the Hong Kong Special Administrative Region of the People's Republic of China is referred to as 'Hong Kong'. When used in the terms 'shareholders' equity' and 'total shareholders' equity', 'shareholders' means holders of HSBC Holdings ordinary shares and those preference shares classified as equity.

This document comprises the Annual Report and Accounts 2008 for HSBC Holdings plc and its subsidiaries. It contains the Report of the Directors and Financial Statements, together with the Independent Auditor's Report thereon, as required by the UK Companies Act 1985. The Annual Review 2008 of HSBC Holdings plc is published as a separate document. The Report of the Directors on pages 12 to 314 and the Directors' Remuneration Report on pages 315 to 328 have each been drawn up in accordance with the requirements of English law, and liability in respect thereof is also governed by English law. In particular, the liability of the Directors for these reports is solely to HSBC Holdings.

Financial Highlights				2
Cautionary Statement Regarding Forward-Looking Statements				6
Group Chairman's Statement				8
Report of the Directors				12
Operating and Financial Review
Principal activities	12		Group performance by income and expense item	26
Strategic direction	12		Balance sheet	40
Challenges and uncertainties	12		Critical accounting policies	61
Key performance indicators	17		Customer groups and global businesses1	67
Reconciliation of reported and underlying profit	21		Geographical regions1	87
Financial summary1	23		Products and services	138
Income statement	24		Other information	140
Impact of Market Turmoil
Background and disclosure policy	144		Nature and extent of HSBC's exposures	150
Overview of exposure	145		Fair values of financial instruments	162
Business model	149		Special purpose entities	173
Risk management	150		Other off-balance sheet arrangements and commitments	187
Accounting policies	150
Risk1
Regulation and supervision	188		Operational risk	252
Risk management	191		Pension risk	253
Credit risk	192		Reputational risk	254
Liquidity and funding	235		Sustainability risk	254
Market risk	241		Risk management of insurance operations	255
Residual value risk	252		Capital management and allocation	274
Governance1
Corporate governance report	281		Employees	303
Directors and senior management	281		Corporate sustainability	312
Board of Directors	290		Dividends, shareholders and meetings	313
Directors' Remuneration Report1				315
Statement of Directors' Responsibilities				329
Independent Auditor's Report				330
Financial Statements1				332
Notes on the Financial Statements				340
Shareholder Information				448
Enforceability of judgements made in the US	448		Interim Management Statements and Interim results	452
Limitations affecting equity security holders	448		Actuaries	452
Fourth interim dividend for 2008	448		Shareholder enquiries and communications	453
Interim dividends for 2009	449		Investor relations	454
Dividends on ordinary shares of HSBC Holdings	449		Where more information about HSBC is available	454
Nature of trading market	449		Taxation of shares and dividends	455
Shareholder profile	451		History and development of HSBC	457
Memorandum and Articles of Association	451		Organisational structure	459
Annual General Meeting	452
Glossary of Terms and Index				460

1    Detailed contents are provided on the referenced pages.

 

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