Interim Report - 21 of 26

RNS Number : 1378M

HSBC Holdings PLC

12 August 2011

 



Consolidated income statement for the half-year to 30 June 2011

		Half-year to
		30 June                2011		30 June                2010		31 December                2010
	Notes	US$m		US$m		US$m
Interest income ................................................................................		31,046		28,686		29,659
Interest expense ...............................................................................		(10,811)		(8,929)		(9,975)
Net interest income .........................................................................		20,235		19,757		19,684
Fee income ........................................................................................		10,944		10,405		10,712
Fee expense .......................................................................................		(2,137)		(1,887)		(1,875)
Net fee income ..................................................................................		8,807		8,518		8,837
Trading income excluding net interest income .....................................		3,231		2,309		2,371
Net interest income on trading activities .............................................		1,581		1,243		1,287
Net trading income ..............................................................................		4,812		3,552		3,658
Changes in fair value of long-term debt issued and related derivatives ...		(494)		1,125		(1,383)
Net income/(expense) from other financial instruments designated at   fair value .........................................................................................		394		(40)		1,518
Net income/(expense) from financial instruments designated at fair value .........................................................................................		(100)		1,085		135
Gains less losses from financial investments .........................................		485		557		411
Dividend income ..................................................................................		87		59		53
Net earned insurance premiums ............................................................		6,700		5,666		5,480
Other operating income .......................................................................		1,285		1,478		1,084
Total operating income ....................................................................		42,311		40,672		39,342
Net insurance claims incurred and movement in liabilities to policyholders ..............................................................................		(6,617)		(5,121)		(6,646)
Net operating income before loan impairment charges and other credit risk provisions ........................................................		35,694		35,551		32,696
Loan impairment charges and other credit risk provisions ...................		(5,266)		(7,523)		(6,516)
Net operating income ......................................................................		30,428		28,028		26,180
Employee compensation and benefits ..................................................		(10,521)		(9,806)		(10,030)
General and administrative expenses ....................................................		(8,419)		(7,014)		(8,142)
Depreciation and impairment of property, plant and equipment ..........		(805)		(834)		(879)
Amortisation and impairment of intangible assets ................................		(765)		(457)		(526)
Total operating expenses .................................................................		(20,510)		(18,111)		(19,577)
Operating profit ...............................................................................		9,918		9,917		6,603
Share of profit in associates and joint ventures ....................................		1,556		1,187		1,330
Profit before tax ...............................................................................		11,474		11,104		7,933
Tax expense ........................................................................................	6	(1,712)		(3,856)		(990)
Profit for the period .........................................................................		9,762		7,248		6,943
Profit attributable to shareholders of the parent company ...................		9,215		6,763		6,396
Profit attributable to non-controlling interests ....................................		547		485		547
		US$		US$		US$
Basic earnings per ordinary share .........................................................	4	0.51		0.38		0.35
Diluted earnings per ordinary share ......................................................	4	0.50		0.38		0.34

The accompanying notes on pages 179 to 218 form an integral part of these financial statements¹.

For footnote, see page 178.

Consolidated statement of comprehensive income for the half-year to 30 June 2011

	Half-year to
	30 June		30 June		31 December
	2011		2010		2010
	US$m		US$m		US$m
			,
Profit for the period .....................................................................................	9,762		7,248		6,943
Other comprehensive income/(expense)
Available-for-sale investments .....................................................................	1,136		4,206		1,629
-  fair value gains/(losses) .........................................................................	1,378		4,698		1,670
-  fair value (gains)/losses transferred to income statement on disposal .....	(529)		(574)		(600)
-  amounts transferred to the income statement in respect of    impairment losses ..............................................................................	287		678		440
-  income taxes ........................................................................................	-		(596)		119
Cash flow hedges ..........................................................................................	40		(45)		(226)
-  fair value gains/(losses) .........................................................................	231		(1,687)		1,509
-  fair value (gains)/losses transferred to income statement .......................	(196)		1,644		(1,808)
-  income taxes ........................................................................................	5		(2)		73
Actuarial gains/(losses) on defined benefit plans ............................................	(19)		(60)		(1)
-  before income taxes ..............................................................................	(18)		(82)		22
-  income taxes ........................................................................................	(1)		22		(23)
Share of other comprehensive income of associates and joint ventures .........	(146)		73		34
Exchange differences ....................................................................................	4,404		(6,128)		5,561
Income tax attributable to exchange differences ...........................................	165		-		-
Other comprehensive income/(expense) for the period, net of tax ...............	5,580		(1,954)		6,997
Total comprehensive income for the period .................................................	15,342		5,294		13,940
Total comprehensive income for the period attributable to:
-  shareholders of the parent company .....................................................	14,728		4,901		13,186
-  non-controlling interests ......................................................................	614		393		754
	15,342		5,294		13,940

The accompanying notes on pages 179 to 218 form an integral part of these financial statements¹.

For footnote, see page 178.

Consolidated balance sheet at 30 June 2011

		At           30 June		At             30 June		At    31 December
		2011		2010		2010
	Notes	US$m		US$m		US$m
Assets
Cash and balances at central banks ......................................................		68,218		71,576		57,383
Items in the course of collection from other banks .............................		15,058		11,195		6,072
Hong Kong Government certificates of indebtedness ..........................		19,745		18,364		19,057
Trading assets .....................................................................................	7	474,950		403,800		385,052
Financial assets designated at fair value ...............................................	11	39,565		32,243		37,011
Derivatives .........................................................................................	12	260,672		288,279		260,757
Loans and advances to banks ..............................................................		226,043		196,296		208,271
Loans and advances to customers .......................................................		1,037,888		893,337		958,366
Financial investments .........................................................................	13	416,857		385,471		400,755
Other assets ........................................................................................		47,503		42,140		43,251
Current tax assets ...............................................................................		1,487		1,070		1,096
Prepayments and accrued income .......................................................		12,556		11,586		11,966
Interests in associates and joint ventures ............................................		18,882		15,701		17,198
Goodwill and intangible assets .............................................................		32,028		27,859		29,922
Property, plant and equipment ...........................................................		11,594		13,291		11,521
Deferred tax assets .............................................................................		7,941		6,246		7,011
Total assets ........................................................................................		2,690,987		2,418,454		2,454,689
Liabilities and equity
Liabilities
Hong Kong currency notes in circulation ............................................		19,745		18,364		19,057
Deposits by banks ...............................................................................		125,479		127,316		110,584
Customer accounts .............................................................................		1,318,987		1,147,321		1,227,725
Items in the course of transmission to other banks .............................		16,317		11,976		6,663
Trading liabilities ................................................................................	15	385,824		274,836		300,703
Financial liabilities designated at fair value ..........................................	16	98,280		80,436		88,133
Derivatives .........................................................................................	12	257,025		287,014		258,665
Debt securities in issue ........................................................................		149,803		153,600		145,401
Other liabilities ...................................................................................		31,583		71,732		28,050
Current tax liabilities ..........................................................................		2,629		2,558		1,804
Liabilities under insurance contracts ...................................................		64,451		52,516		58,609
Accruals and deferred income .............................................................		13,432		12,174		13,906
Provisions ..........................................................................................	17	3,027		1,828		2,138
Deferred tax liabilities ........................................................................		1,157		1,264		1,093
Retirement benefit liabilities ...............................................................		2,958		3,949		3,856
Subordinated liabilities ........................................................................		32,753		28,247		33,387
Total liabilities ...................................................................................		2,523,450		2,275,131		2,299,774
Equity
Called up share capital ........................................................................		8,909		8,755		8,843
Share premium account ......................................................................		8,401		8,423		8,454
Other equity instruments ....................................................................		5,851		5,851		5,851
Other reserves ....................................................................................		31,085		18,721		25,414
Retained earnings ...............................................................................		106,004		94,193		99,105
Total shareholders' equity ..................................................................		160,250		135,943		147,667
Non-controlling interests ...................................................................		7,287		7,380		7,248
Total equity .......................................................................................		167,537		143,323		154,915
Total equity and liabilities ..................................................................		2,690,987		2,418,454		2,454,689

The accompanying notes on pages 179 to 218 form an integral part of these financial statements¹.

For footnote, see page 178.

Consolidated statement of cash flows for the half-year to 30 June 2011

		Half-year to
	Notes	30 June               2011		30 June               2010		31 December               2010
		US$m		US$m		US$m
Cash flows from operating activities
Profit before tax ................................................................................		11,474		11,104		7,933
Adjustments for:
-  net gain from investing activities ................................................		(544)		(1,111)		(587)
-  share of profit in associates and joint ventures ............................		(1,556)		(1,187)		(1,330)
-  other non-cash items included in profit before tax ......................	19	8,825		9,553		9,334
-  change in operating assets ...........................................................	19	(92,560)		14,130		(27,397)
-  change in operating liabilities ......................................................	19	130,301		(1,389)		43,661
-  elimination of exchange differences2 ..........................................		(16,046)		17,993		(19,792)
-  dividends received from associates ..............................................		246		198		243
-  contributions paid to defined benefit plans ..................................		(588)		(2,899)		(422)
-  tax paid ......................................................................................		(1,709)		(247)		(2,046)
Net cash generated from operating activities ......................................		37,843		46,145		9,597
Cash flows from investing activities
Purchase of financial investments ......................................................		(156,596)		(199,567)		(141,635)
Proceeds from the sale and maturity of financial investments ............		153,407		178,272		143,574
Purchase of property, plant and equipment ........................................		(665)		(739)		(1,794)
Proceeds from the sale of property, plant and equipment ...................		194		3,338		1,035
Proceeds from the sale of loan portfolios ...........................................		-		929		3,314
Net purchase of intangible assets ........................................................		(893)		(521)		(658)
Net cash outflow from acquisition of subsidiaries ................................		-		(34)		(52)
Net cash inflow from disposal of subsidiaries .......................................		5		191		275
Net cash outflow from acquisition of or increase in stake of associates ........................................................................................................		(39)		(563)		(1,026)
Net cash outflow from the deconsolidation of funds ...........................		-		-		(19,566)
Proceeds from disposal of associates and joint ventures ......................		11		171		83
Net cash used in investing activities ....................................................		(4,576)		(18,523)		(16,450)
Cash flows from financing activities
Issue of ordinary share capital ............................................................		13		-		180
Issue of other equity instruments.........................................................		-		3,718		-
Net sales of own shares for market-making and investment purposes .		27		61		102
(Purchases)/sales of own shares to meet share awards and share option awards .................................................................................		(27)		19		(8)
On exercise of share options ..............................................................		-		61		(59)
Subordinated loan capital issued ..........................................................		-		1,329		3,152
Subordinated loan capital repaid ..........................................................		(2,574)		(2,408)		(67)
Net cash outflow from change in stake in subsidiaries .........................		-		-		(229)
Dividends paid to ordinary shareholders of the parent company .........		(2,192)		(2,126)		(1,315)
Dividends paid to non-controlling interests ........................................		(321)		(329)		(266)
Dividends paid to holders of other equity instruments .........................		(286)		(134)		(279)
Net cash generated from/(used in) financing activities ........................		(5,360)		191		1,211
Net increase/(decrease) in cash and cash equivalents ................		27,907		27,813		(5,642)
Cash and cash equivalents at the beginning of the period ....................		274,076		250,766		265,910
Exchange differences in respect of cash and cash equivalents ..............		10,368		(12,669)		13,808
Cash and cash equivalents at the end of the period ..............................	19	312,351		265,910		274,076

The accompanying notes on pages 179 to 218 form an integral part of these financial statements¹.

For footnotes, see page 178.

Consolidated statement of changes in equity for the half-year to 30 June 2011

	Half-year to 30 June 2011
									Other reserves3
	Called up       share     capital		Share   premium4		Other      equity     instru-     ments		Retained   earnings          3,5,6		Available-   for-sale fair value    reserve		Cash flow   hedging    reserve7		Foreign exchange    reserve		Merger   reserve5,8		Total      share- holders'      equity		Non- controlling interests		Total      equity
	US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m
At 1 January 2011 ...........................................	8,843		8,454		5,851		99,105		(4,077)		(285)		2,468		27,308		147,667		7,248		154,915
Profit for the period ........................................	-		-		-		9,215		-		-		-		-		9,215		547		9,762
Other comprehensive income (net of tax) .......	-		-		-		(144)		1,146		40		4,471		-		5,513		67		5,580
Available-for-sale investments .........................	-		-		-		-		1,146		-		-		-		1,146		(10)		1,136
Cash flow hedges ..............................................	-		-		-		-		-		40		-		-		40		-		40
Actuarial gains/(losses) on defined benefit plans .....................................................................	-		-		-		2		-		-		-		-		2		(21)		(19)
Share of other comprehensive income of associates and joint ventures ........................................	-		-		-		(146)		-		-		-		-		(146)		-		(146)
Exchange differences .......................................	-		-		-		-		-		-		4,471		-		4,471		98		4,569
Total comprehensive income for the period ....	-		-		-		9,071		1,146		40		4,471		-		14,728		614		15,342
Shares issued under employee share plans .........	1		12		-		-		-		-		-		-		13		-		13
Shares issued in lieu of dividends and amounts arising thereon4 .......................................................	65		(65)		-		1,334		-		-		-		-		1,334		-		1,334
Dividends to shareholders ................................	-		-		-		(4,006)		-		-		-		-		(4,006)		(413)		(4,419)
Tax credits on dividends ..................................	-		-		-		64		-		-		-		-		64		-		64
Own shares adjustment .....................................	-		-		-		(225)		-		-		-		-		(225)		-		(225)
Cost of share-based payment arrangements ......	-		-		-		588		-		-		-		-		588		-		588
Income taxes on share-based payments ............	-		-		-		36		-		-		-		-		36		-		36
Other movements ............................................	-		-		-		37		14		-		-		-		51		1		52
Acquisition and disposal of subsidiaries .............	-		-		-		-		-		-		-		-		-		(261)		(261)
Changes in ownership interests in subsidiaries that did not result in loss of control ..........................	-		-		-		-		-		-		-		-		-		98		98
At 30 June 2011 ..............................................	8,909		8,401		5,851		106,004		(2,917)		(245)		6,939		27,308		160,250		7,287		167,537

Consolidated statement of changes in equity for the half-year to 30 June 2011 (continued)

	Half-year to 30 June 2010
									Other reserves3
	Called up         share      capital		Share   premium4		Other       equity       instru-      ments		Retained   earnings          3,5,6		Available-     for-sale fair value      reserve		Cash flow     hedging      reserve7		Foreign exchange      reserve		Merger   reserve5,8			Total       share-   holders'       equity		Non- controlling    interests		Total       equity
	US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m			US$m		US$m		US$m
At 1 January 2010 .....................................	8,705		8,413		2,133		88,737		(9,965)		(26)		2,994		27,308			128,299		7,362		135,661
Profit for the period ..................................	-		-		-		6,763		-		-		-		-			6,763		485		7,248
Other comprehensive income (net of tax) .	-		-		-		28		4,151		(39)		(6,002)		-			(1,862)		(92)		(1,954)
Available-for-sale investments ...................	-		-		-		-		4,151		-		-		-			4,151		55		4,206
Cash flow hedges ........................................	-		-		-		-		-		(39)		-		-			(39)		(6)		(45)
Actuarial losses on defined benefit plans .....	-		-		-		(45)		-		-		-		-			(45)		(15)		(60)
Share of other comprehensive income of associates and joint ventures ...................................	-		-		-		73		-		-		-		-			73		-		73
Exchange differences .................................	-		-		-		-		-		-		(6,002)		-			(6,002)		(126)		(6,128)
Total comprehensive income for the period ...............................................................	-		-		-		6,791		4,151		(39)		(6,002)		-			4,901		393		5,294
Shares issued under employee share plans ...	3		58		-		-		-		-		-		-			61		-		61
Shares issued in lieu of dividends and amounts arising thereon4 ......................................	47		(48)		-		1,584		-		-		-		-			1,583		-		1,583
Capital securities issued during the period9 ..	-		-		3,718		-		-		-		-		-			3,718		-		3,718
Dividends to shareholders ...........................	-		-		-		(3,261)		-		-		-		-			(3,261)		(409)		(3,670)
Tax credits on dividends .............................	-		-		-		54		-		-		-		-			54		-		54
Own shares adjustment ...............................	-		-		-		80		-		-		-		-			80		-		80
Exercise and lapse of share options and vesting of share awards ...........................................	-		-		-		(119)		-		-		-		-			(119)		-		(119)
Cost of share-based payment arrangements	-		-		-		371		-		-		-		-			371		-		371
Income taxes on share-based payments ......	-		-		-		(14)		-		-		-		-			(14)		-		(14)
Other movements ......................................	-		-		-		(30)		294		8		(2)		-			270		(1)		269
Changes in ownership interests in subsidiaries that did not result in loss of control ....................	-		-		-		-		-		-		-		-			-		35		35
At 30 June 2010 ........................................	8,755		8,423		5,851		94,193		(5,520)		(57)		(3,010)		27,308			135,943		7,380		143,323

	Half-year to 31 December 2010
									Other reserves3
	Called up         share      capital		Share   premium4		Other       equity       instru-       ments		Retained   earnings          3,5,6		Available-     for-sale fair value      reserve		Cash flow     hedging      reserve7		Foreign exchange      reserve		Merger   reserve5,8		Total       share-   holders'       equity		Non- controlling    interests		Total       equity
	US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m
At 1 July 2010 ...........................................	8,755		8,423		5,851		94,193		(5,520)		(57)		(3,010)		27,308		135,943		7,380		143,323
Profit for the period ..................................	-		-		-		6,396		-		-		-		-		6,396		547		6,943
Other comprehensive income (net of tax) .	-		-		-		21		1,520		(227)		5,476		-		6,790		207		6,997
Available-for-sale investments ...................	-		-		-		-		1,520		-		-		-		1,520		109		1,629
Cash flow hedges ........................................	-		-		-		-		-		(227)		-		-		(227)		1		(226)
Actuarial losses on defined benefit plans .....	-		-		-		(13)		-		-		-		-		(13)		12		(1)
Share of other comprehensive income of associates and joint ventures ...................................	-		-		-		34		-		-		-		-		34		-		34
Exchange differences .................................	-		-		-		-		-		-		5,476		-		5,476		85		5,561
Total comprehensive income for period ....	-		-		-		6,417		1,520		(227)		5,476		-		13,186		754		13,940
Shares issued under employee share plans ...	9		110		-		-		-		-		-		-		119		-		119
Shares issued in lieu of dividends and amounts arising thereon4 ......................................	79		(79)		-		940		-		-		-		-		940		-		940
Dividends to shareholders............................	-		-		-		(3,089)		-		-		-		-		(3,089)		(316)		(3,405)
Tax credits on dividends .............................	-		-		-		68		-		-		-		-		68		-		68
Own shares adjustment ...............................	-		-		-		94		-		-		-		-		94		-		94
Exercise and lapse of share options and vesting of share awards ...........................................	-		-		-		119		-		-		-		-		119		-		119
Cost of share-based payment arrangements	-		-		-		441		-		-		-		-		441		-		441
Other movements ......................................	-		-		-		(28)		(77)		(1)		2		-		(104)		4		(100)
Acquisition and disposal of subsidiaries .......	-		-		-		-		-		-		-		-		-		(436)		(436)
Changes in ownership interests in subsidiaries that did not result in loss of control ....................	-		-		-		(50)		-		-		-		-		(50)		(138)		(188)
At 31 December 2010 ................................	8,843		8,454		5,851		99,105		(4,077)		(285)		2,468		27,308		147,667		7,248		154,915

Dividends per ordinary share at 30 June 2011 were US$0.21 (30 June 2010: US$0.18; 31 December 2010: US$0.16).

The accompanying notes on pages 179 to 218 form an integral part of these financial statements¹.

For footnotes, see page 178.

 

END

 

 

IR DKKDPQBKDBFD