Interim Report - 23 of 28

RNS Number : 2100P

HSBC Holdings PLC

15 August 2014

 



Consolidated income statement for the half-year to 30 June 2014

		Half-year to
		30 June                2014		30 June                2013		31 December                2013
	Notes	US$m		US$m		US$m
Interest income ..................................................................................		25,435		25,740		25,452
Interest expense .................................................................................		(8,030)		(7,921)		(7,732)
Net interest income ............................................................................		17,405		17,819		17,720
Fee income .........................................................................................		10,031		10,148		9,825
Fee expense ........................................................................................		(1,854)		(1,744)		(1,795)
Net fee income ...................................................................................		8,177		8,404		8,030
Trading income excluding net interest income ....................................		2,362		5,230		1,413
Net interest income on trading activities ............................................		913		1,132		915
Net trading income .............................................................................		3,275		6,362		2,328
Changes in fair value of long-term debt issued and related derivatives .		438		(1,419)		191
Net income from other financial instruments designated at fair value .		1,222		222		1,774
Net income/(expense) from financial instruments designated at fair value ..............................................................................................		1,660		(1,197)		1,965
Gains less losses from financial investments .......................................		946		1,856		156
Dividend income ................................................................................		88		107		215
Net earned insurance premiums ..........................................................		6,137		6,226		5,714
Other operating income .....................................................................		538		946		1,686
Total operating income ..................................................................		38,226		40,523		37,814
Net insurance claims incurred and movement in liabilities to policyholders .............................................................................		(7,059)		(6,151)		(7,541)
Net operating income before loan impairment charges and other credit risk provisions .......................................................		31,167		34,372		30,273
Loan impairment charges and other credit risk provisions ..................		(1,841)		(3,116)		(2,733)
Net operating income .....................................................................		29,326		31,256		27,540
Employee compensation and benefits .................................................		(9,978)		(9,496)		(9,700)
General and administrative expenses ...................................................		(7,127)		(7,727)		(9,338)
Depreciation and impairment of property, plant and equipment .........		(712)		(699)		(665)
Amortisation and impairment of intangible assets ..............................		(449)		(477)		(454)
Total operating expenses ...............................................................		(18,266)		(18,399)		(20,157)
Operating profit ..............................................................................		11,060		12,857		7,383
Share of profit in associates and joint ventures ...................................		1,280		1,214		1,111
Profit before tax ..............................................................................		12,340		14,071		8,494
Tax expense .......................................................................................	5	(2,022)		(2,725)		(2,040)
Profit for the period ........................................................................		10,318		11,346		6,454
Profit attributable to shareholders of the parent company ..................		9,746		10,284		5,920
Profit attributable to non-controlling interests ...................................		572		1,062		534
		US$		US$		US$
Basic earnings per ordinary share ........................................................	4	0.50		0.54		0.30
Diluted earnings per ordinary share .....................................................	4	0.50		0.54		0.30

The accompanying notes on pages 214 to 268 form an integral part of these financial statements¹.

For footnote, see page 213.

Consolidated statement of comprehensive income for the half-year to 30 June 2014

	Half-year to
	30 June		30 June		31 December
	2014		2013		2013
	US$m		US$m		US$m
			,
Profit for the period .....................................................................................	10,318		11,346		6,454
Other comprehensive income/(expense)
Items that will be reclassified subsequently to profit or loss when specific conditions are met:
Available-for-sale investments .....................................................................	958		(1,818)		100
-  fair value gains/(losses) .........................................................................	2,183		(1,609)		(178)
-  fair value gains transferred to income statement on disposal .................	(643)		(1,025)		(252)
-  amounts transferred to the income statement in respect of impairment losses .................................................................................	15		206		80
-  income taxes ........................................................................................	(597)		610		450
Cash flow hedges ..........................................................................................	(17)		(198)		70
-  fair value gains/(losses) .........................................................................	(44)		35		741
-  fair value (gains)/losses transferred to income statement .......................	50		(258)		(636)
-  income taxes ........................................................................................	(23)		25		(35)
Share of other comprehensive income/(expense) of associates and joint ventures .......................................................................................................	(16)		1		(72)
-  share for the period...............................................................................	(18)		37		(72)
-  reclassified to income statement on disposal..........................................	2		(36)		-
Exchange differences ....................................................................................	670		(4,525)		3,081
-  foreign exchange gains reclassified to income statement on disposal of a foreign operation ..................................................................................	(21)		(290)		-
-  other exchange difference .....................................................................	691		(4,235)		3,081
-  income tax attributable to exchange differences ....................................	-		-		72
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit asset/liability ...........................................	316		(959)		501
-  before income taxes ..............................................................................	421		(1,223)		622
-  income taxes ........................................................................................	(105)		264		(121)
Other comprehensive income/(expense) for the period, net of tax ...............	1,911		(7,499)		3,752
Total comprehensive income for the period .................................................	12,229		3,847		10,206
Total comprehensive income for the period attributable to:
-  shareholders of the parent company .....................................................	11,706		3,072		9,572
-  non-controlling interests ......................................................................	523		775		634
	12,229		3,847		10,206

The accompanying notes on pages 214 to 268 form an integral part of these financial statements¹.

For footnote, see page 213.

Consolidated balance sheet at 30 June 2014

		At           30 June		At             30 June		At    31 December
		2014		2013		2013
	Notes	US$m		US$m		US$m
Assets
Cash and balances at central banks ......................................................		132,137		148,285		166,599
Items in the course of collection from other banks .............................		8,144		8,416		6,021
Hong Kong Government certificates of indebtedness ..........................		26,640		24,275		25,220
Trading assets .....................................................................................	6	347,106		432,601		303,192
Financial assets designated at fair value ...............................................	9	31,823		35,318		38,430
Derivatives .........................................................................................	10	269,839		299,213		282,265
Loans and advances to banks2 .............................................................		127,387		127,810		120,046
Loans and advances to customers2 ......................................................		1,047,241		938,294		992,089
Reverse repurchase agreements - non-trading2 ...................................	11	198,301		88,400		179,690
Financial investments .........................................................................	12	423,710		404,214		425,925
Assets held for sale .............................................................................	13	10,248		20,377		4,050
Other assets ........................................................................................		53,270		45,135		50,939
Current tax assets ...............................................................................		1,068		1,207		985
Prepayments and accrued income .......................................................		11,503		9,781		11,006
Interests in associates and joint ventures ............................................		17,497		15,676		16,640
Goodwill and intangible assets .............................................................		29,740		28,537		29,918
Property, plant and equipment ...........................................................		10,747		10,572		10,847
Deferred tax assets .............................................................................		7,192		7,205		7,456
Total assets ........................................................................................		2,753,593		2,645,316		2,671,318
Liabilities and equity
Liabilities
Hong Kong currency notes in circulation ............................................		26,640		24,275		25,220
Deposits by banks2 .............................................................................		92,764		92,709		86,507
Customer accounts2 ............................................................................		1,415,705		1,266,905		1,361,297
Repurchase agreements - non-trading2 ...............................................	11	165,506		66,591		164,220
Items in the course of transmission to other banks .............................		9,936		9,364		6,910
Trading liabilities ................................................................................	14	228,135		342,432		207,025
Financial liabilities designated at fair value ..........................................	15	82,968		84,254		89,084
Derivatives .........................................................................................	10	263,494		293,669		274,284
Debt securities in issue ........................................................................		96,397		109,389		104,080
Liabilities of disposal groups held for sale ...........................................		12,361		19,519		2,804
Other liabilities ...................................................................................		32,936		33,511		30,421
Current tax liabilities ..........................................................................		1,434		1,586		607
Liabilities under insurance contracts ...................................................		75,223		69,771		74,181
Accruals and deferred income .............................................................		14,972		11,292		16,185
Provisions ..........................................................................................	16	4,283		4,787		5,217
Deferred tax liabilities ........................................................................		1,091		864		910
Retirement benefit liabilities ...............................................................		2,974		3,216		2,931
Subordinated liabilities ........................................................................		28,052		28,821		28,976
Total liabilities ...................................................................................		2,554,871		2,462,955		2,480,859
Equity
Called up share capital ........................................................................		9,535		9,313		9,415
Share premium account ......................................................................		11,582		11,071		11,135
Other equity instruments ....................................................................		5,851		5,851		5,851
Other reserves ....................................................................................		28,355		23,503		26,742
Retained earnings ...............................................................................		134,958		124,332		128,728
Total shareholders' equity ..................................................................		190,281		174,070		181,871
Non-controlling interests ...................................................................		8,441		8,291		8,588
Total equity .......................................................................................		198,722		182,361		190,459
Total equity and liabilities ..................................................................		2,753,593		2,645,316		2,671,318

The accompanying notes on pages 214 to 268 form an integral part of these financial statements¹.

For footnote, see page 213.

Consolidated statement of cash flows for the half-year to 30 June 2014

		Half-year to
		30 June               2014		30 June               2013		31 December               2013
	Notes	US$m		US$m		US$m
Cash flows from operating activities
Profit before tax ..............................................................................		12,340		14,071		8,494
-....	-
Adjustments for:
-  net gain from investing activities .............................................		(979)		(1,426)		(32)
-  share of profit in associates and joint ventures .........................		(1,280)		(1,214)		(1,111)
-  gain on disposal of associates, joint ventures, subsidiaries and businesses .......................................................................		(18)		(9)		(1,164)
-  other non-cash items included in profit before tax ....................	20	4,284		5,091		6,904
-  change in operating assets ........................................................	20	(86,266)		20,921		(169,820)
-  change in operating liabilities ...................................................	20	59,108		(21,070)		185,827
-  elimination of exchange differences3 ........................................		(5,486)		4,877		(398)
-  dividends received from associates ............................................		127		665		29
-  contributions paid to defined benefit plans ................................		(315)		(494)		(468)
-  tax paid ....................................................................................		(1,358)		(2,125)		(2,571)
Net cash generated from/(used in) operating activities ......................		(19,843)		19,287		25,690
Cash flows from investing activities
Purchase of financial investments ....................................................		(187,934)		(171,175)		(192,804)
Proceeds from the sale and maturity of financial investments ..........		194,335		181,706		160,833
Purchase of property, plant and equipment ......................................		(523)		(1,155)		(797)
Proceeds from the sale of property, plant and equipment .................		55		164		277
Proceeds from the sale of loan portfolios .........................................		950		3,193		3,325
Net purchase of intangible assets ......................................................		(385)		(416)		(418)
Net cash inflow/(outflow) from disposal of other subsidiaries and businesses .....................................................................................		(140)		287		2,631
Net cash outflow from acquisition of or increase in stake of associates .....................................................................................		(30)		(25)		(1)
Proceeds from disposal of Ping An ...................................................	20	-		7,413		-
Proceeds from disposal of other associates and joint ventures ..........		-		367		10
		-
Net cash generated from/(used in) investing activities ......................		6,328		20,359		(26,944)
Cash flows from financing activities
Issue of ordinary share capital ..........................................................		14		169		128
Net sales/(purchases) of own shares for market-making and investment purposes .....................................................................		(25)		(33)		1
Redemption of preference shares .....................................................		234		-		-
Subordinated loan capital issued ........................................................		3,500		-		1,989
Subordinated loan capital repaid .......................................................		(3,042)		(45)		(1,617)
Net cash inflow/(outflow) from change in stake in subsidiaries ..........		-		1		(1)
Dividends paid to ordinary shareholders of the parent company .......		(1,755)		(2,799)		(3,615)
Dividends paid to non-controlling interests ......................................		(350)		(331)		(255)
Dividends paid to holders of other equity instruments ......................		(287)		(286)		(287)
		-
Net cash used in financing activities .................................................		(1,711)		(3,324)		(3,657)
Net increase/(decrease) in cash and cash equivalents .............		(15,226)		36,322		(4,911)
Cash and cash equivalents at the beginning of the period ..................		346,281		315,308		343,371
Exchange differences in respect of cash and cash equivalents ...........		3,443		(8,259)		7,821
Cash and cash equivalents at the end of the period ...........................	20	334,498		343,371		346,281

The accompanying notes on pages 214 to 268 form an integral part of these financial statements¹.

For footnote, see page 213.

Consolidated statement of changes in equity for the half-year to 30 June 2014

	Half-year to 30 June 2014
									Other reserves
	Called up       share     capital		Share premium4		Other      equity     instru-     ments		Retained earnings            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 2014 ...........................................	9,415		11,135		5,851		128,728		97		(121)		(542)		27,308		181,871		8,588		190,459
Profit for the period ........................................	-		-		-		9,746		-		-		-		-		9,746		572		10,318
Other comprehensive income (net of tax) .......	-		-		-		300		956		(16)		720		-		1,960		(49)		1,911
Available-for-sale investments .........................	-		-		-		-		956		-		-		-		956		2		958
Cash flow hedges ..............................................	-		-		-		-		-		(16)		-		-		(16)		(1)		(17)
Remeasurement of defined benefit asset/liability ...............................................	-		-		-		316		-		-		-		-		316		-		316
Share of other comprehensive income of associates and joint ventures .........................................	-		-		-		(16)		-		-		-		-		(16)		-		(16)
Exchange differences .......................................	-		-		-		-		-		-		720		-		720		(50)		670
Total comprehensive income for the period ....	-		-		-		10,046		956		(16)		720		-		11,706		523		12,229
									-		-		-		-
Shares issued under employee remuneration and share plans ...................................................	28		539		-		(553)		-		-		-		-		14		-		14
Shares issued in lieu of dividends and amounts arising thereon4 .......................................................	92		(92)		-		2,111		-		-		-		-		2,111		-		2,111
Dividends to shareholders9 ................................	-		-		-		(5,774)		-		-		-		-		(5,774)		(432)		(6,206)
Tax credits on distributions ..............................	-		-		-		52		-		-		-		-		52		-		52
Own shares adjustment .....................................	-		-		-		(18)		-		-		-		-		(18)		-		(18)
Cost of share-based payment arrangements ......	-		-		-		333		-		-		-		-		333		-		333
Income taxes on share-based payments ............	-		-		-		(9)		-		-		-		-		(9)		-		(9)
Other movements ............................................	-		-		-		42		(39)		(8)		-		-		(5)		(1)		(6)
Acquisition and disposal of subsidiaries .............	-		-		-		-		-		-		-		-		-		(12)		(12)
Changes in ownership interests in subsidiaries that did not result in loss of control ..........................	-		-		-		-		-		-		-		-		-		(225)		(225)
At 30 June 2014 ..............................................	9,535		11,582		5,851		134,958		1,014		(145)		178		27,308		190,281		8,441		198,722

	Half-year to 30 June 2013
									Other reserves
	Called up         share      capital		Share   premium4		Other       equity       instru-      ments		Retained   earnings            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 2013 ...........................................	9,238		10,084		5,851		120,347		1,649		13		752		27,308		175,242		7,887		183,129
Profit for the period ........................................	-		-		-		10,284		-		-		-		-		10,284		1,062		11,346
Other comprehensive income (net of tax) .......	-		-		-		(993)		(1,635)		(197)		(4,387)		-		(7,212)		(287)		(7,499)
Available-for-sale investments .........................	-		-		-		-		(1,635)		-		-		-		(1,635)		(183)		(1,818)
Cash flow hedges ..............................................	-		-		-		-		-		(197)		-		-		(197)		(1)		(198)
Remeasurement of defined benefit asset/liability ...............................................	-		-		-		(994)		-		-		-		-		(994)		35		(959)
Share of other comprehensive income of associates and joint ventures .........................................	-		-		-		1		-		-		-		-		1		-		1
Exchange differences .......................................	-		-		-		-		-		-		(4,387)		-		(4,387)		(138)		(4,525)
Total comprehensive income for the period ....	-		-		-		9,291		(1,635)		(197)		(4,387)		-		3,072		775		3,847
Shares issued under employee remuneration and share plans ...................................................	50		1,012		-		(893)		-		-		-		-		169		-		169
Shares issued in lieu of dividends and amounts arising thereon4 .......................................................	25		(25)		-		707		-		-		-		-		707		-		707
Dividends to shareholders9 ................................	-		-		-		(5,487)		-		-		-		-		(5,487)		(400)		(5,887)
Tax credits on distributions ..............................	-		-		-		54		-		-		-		-		54		-		54
Own shares adjustment .....................................	-		-		-		(36)		-		-		-		-		(36)		-		(36)
Cost of share-based payment arrangements ......	-		-		-		355		-		-		-		-		355		-		355
Income taxes on share-based payments ............	-		-		-		9		-		-		-		-		9		-		9
Other movements ............................................	-		-		-		(15)		-		-		-		-		(15)		22		7
Acquisition and disposal of subsidiaries .............	-		-		-		-		-		-		-		-		-		6		6
Changes in ownership interests in subsidiaries that did not result in loss of control ..........................	-		-		-		-		-		-		-		-		-		1		1
	-
At 30 June 2013 ..............................................	9,313		11,071		5,851		124,332		14		(184)		(3,635)		27,308		174,070		8,291		182,361

Consolidated statement of changes in equity for the half-year to 30 June 2014 (continued)

	Half-year to 31 December 2013
									Other reserves
	Called up         share      capital		Share   premium4		Other       equity       instru-       ments		Retained    earnings                    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 2013 .......................................	9,313		11,071		5,851		124,332		14		(184)		(3,635)		27,308		174,070		8,291		182,361
Profit for the period ..............................	-		-		-		5,920		-		-		-		-		5,920		534		6,454
Other comprehensive income (net of tax) ...............................................	-		-		-		432		58		69		3,093		-		3,652		100		3,752
Available-for-sale investments ...............	-		-		-		-		58		-		-		-		58		42		100
Cash flow hedges ....................................	-		-		-		-		-		69		-		-		69		1		70
Remeasurement of defined benefit asset/liability ..................................	-		-		-		504		-		-		-		-		504		(3)		501
Share of other comprehensive income of associates and joint ventures ...............................	-		-		-		(72)		-		-		-		-		(72)		-		(72)
Exchange differences .............................	-		-		-		-		-		-		3,093		-		3,093		60		3,153
Total comprehensive income for period	-		-		-		6,352		58		69		3,093		-		9,572		634		10,206
Shares issued under employee remuneration and share plans .............	10		156		-		(38)		-		-		-		-		128		-		128
Shares issued in lieu of dividends and amounts arising thereon4 ..................................	92		(92)		-		1,816		-		-		-		-		1,816		-		1,816
Dividends to shareholders9 ......................	-		-		-		(4,023)		-		-		-		-		(4,023)		(318)		(4,341)
Tax credits on distributions ....................	-		-		-		(12)		-		-		-		-		(12)		-		(12)
Own shares adjustment ...........................	-		-		-		-		-		-		-		-		-		-		-
Cost of share-based payment arrangements ............................	-		-		-		275		-		-		-		-		275		-		275
Income taxes on share based payments ..	-		-		-		(7)		-		-		-		-		(7)		-		(7)
Other movements ...............................	-		-		-		33		25		(6)		-		-		52		(3)		49
Acquisition and disposal of subsidiaries ...	-		-		-		-		-		-		-		-		-		(30)		(30)
Changes in ownership interests in subsidiaries that did not result in loss of control ................	-		-		-		-		-		-		-		-		-		14		14
At 31 December 2013 ............................	9,415		11,135		5,851		128,728		97		(121)		(542)		27,308		181,871		8,588		190,459

The accompanying notes on pages 214 to 268 form an integral part of these financial statements¹.

For footnote, see page 213.

 

END

 

 

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