Interim Report - 16 of 21

RNS Number : 3128X

HSBC Holdings PLC

14 August 2009

 



Consolidated income statement for the half-year to 30 June 2009

		Half-year to
		30 June     2009		30 June     2008		31 December     2008
	Notes	US$m		US$m		US$m
Interest income		32,479		47,164		44,137
Interest expense		(11,941)		(25,986)		(22,752)
Net interest income		20,538		21,178		21,385
Fee income		10,191		13,381		11,383
Fee expense		(1,763)		(2,390)		(2,350)
Net fee income		8,428		10,991		9,033
Trading income excluding net interest income		4,301		639		208
Net interest income on trading activities		1,954		3,195		2,518
Net trading income		6,255		3,834		2,726
Changes in fair value of long-term debt issued and related derivatives		(2,300)		577		6,102
Net income/(expense) from other financial instruments designated at  fair value		777		(1,161)		(1,666)
Net income/(expense) from financial instruments designated at  fair value		(1,523)		(584)		4,436
Gains less losses from financial investments		323		817		(620)
Dividend income		57		88		184
Net earned insurance premiums		5,012		5,153		5,697
Gains on disposal of French regional banks		-		-		2,445
Other operating income		1,158		1,435		373
Total operating income		40,248		42,912		45,659
Net insurance claims incurred and movement in liabilities  to policyholders		(5,507)		(3,437)		(3,452)
Net operating income before loan impairment charges and  other credit risk provisions		34,741		39,475		42,207
Loan impairment charges and other credit risk provisions		(13,931)		(10,058)		(14,879)
Net operating income		20,810		29,417		27,328
Employee compensation and benefits		(9,207)		(10,925)		(9,867)
General and administrative expenses		(6,258)		(7,479)		(7,781)
Depreciation and impairment of property, plant and equipment		(814)		(863)		(887)
Goodwill impairment	18	-		(527)		(10,037)
Amortisation and impairment of intangible assets		(379)		(346)		(387)
Total operating expenses		(16,658)		(20,140)		(28,959)
Operating profit/(loss)		4,152		9,277		(1,631)
Share of profit in associates and joint ventures		867		970		691
Profit/(loss) before tax		5,019		10,247		(940)
Tax expense	6	(1,286)		(1,941)		(868)
Profit/(loss) for the period		3,733		8,306		(1,808)
Profit/(loss) attributable to shareholders of the parent company		3,347		7,722		(1,994)
Profit attributable to minority interests		386		584		186
		US$		US$		US$
Basic earnings per ordinary share1	4	0.21		0.57		(0.16)
Diluted earnings per ordinary share1	4	0.21		0.57		(0.15)

For footnote, see page 206.

Consolidated statement of comprehensive income for the half-year to 30 June 2009

	Half-year to
	30 June		30 June		31 December
	2009		2008		2008
	US$m		US$m		US$m
			,
Profit/(loss) for the period	3,733		8,306		(1,808)
Other comprehensive income
Available-for-sale investments	3,870		(8,306)		(13,598)
- fair value gains/(losses) taken to equity	4,067		(8,475)		(15,247)
- fair value gains transferred to income statement on disposal	(720)		(920)		(396)
- amounts transferred to the income statement in respect of  impairment losses	872		384		1,395
- income taxes	(349)		705		650
Cash flow hedges.	452		(195)		319
- fair value gains/(losses) taken to equity	(111)		914		(2,634)
- fair value gains/(losses) transferred to income statement	856		(1,134)		2,888
- income taxes	(293)		25		65
Actuarial losses on defined benefit plans	(2,609)		(695)		(480)
- before income taxes	(3,578)		(910)		(699)
- income taxes	969		215		219
Share-based payments - income taxes	(9)		(9)		9
Share of other comprehensive income of associates and joint ventures	105		(342)		(217)
Exchange differences	3,450		3,170		(15,375)
Other comprehensive income for the period, net of tax	5,259		(6,377)		(29,342)
Total comprehensive income for the period	8,992		1,929		(31,150)
Total comprehensive income for the period attributable to:
- shareholders of the parent company	8,388		1,523		(30,748)
- minority interests	604		406		(402)
	8,992		1,929		(31,150)

Consolidated balance sheet at 30 June 2009

		At     30 June		At     30 June		At     31 December
		2009		2008		2008
	Notes	US$m		US$m		US$m
ASSETS
Cash and balances at central banks		56,368		13,473		52,396
Items in the course of collection from other banks		16,613		16,719		6,003
Hong Kong Government certificates of indebtedness		16,156		14,378		15,358
Trading assets	7	414,358		473,537		427,329
Financial assets designated at fair value	8	33,361		40,786		28,533
Derivatives	9	310,796		260,664		494,876
Loans and advances to banks		182,266		256,981		153,766
Loans and advances to customers		924,683		1,049,200		932,868
Financial investments	10	353,444		274,750		300,235
Other assets	11	34,250		52,670		37,822
Current tax assets		1,201		1,443		2,552
Prepayments and accrued income		14,486		17,801		15,797
Interests in associates and joint ventures		12,316		11,259		11,537
Goodwill and intangible assets		29,105		40,814		27,357
Property, plant and equipment		14,573		15,713		14,025
Deferred tax assets		7,867		6,490		7,011
Total assets		2,421,843		2,546,678		2,527,465
LIABILITIES AND EQUITY
Liabilities
Hong Kong currency notes in circulation		16,156		14,378		15,358
Deposits by banks		129,151		154,152		130,084
Customer accounts		1,163,343		1,161,923		1,115,327
Items in the course of transmission to other banks		16,007		15,329		7,232
Trading liabilities	12	264,562		340,611		247,652
Financial liabilities designated at fair value	13	77,314		89,758		74,587
Derivatives	9	298,876		251,357		487,060
Debt securities in issue		156,199		230,267		179,693
Other liabilities		70,125		48,435		72,384
Current tax liabilities		2,274		3,082		1,822
Liabilities under insurance contracts		48,184		46,851		43,683
Accruals and deferred income		13,184		17,592		15,448
Provisions		1,949		1,872		1,730
Deferred tax liabilities		1,849		1,924		1,855
Retirement benefit liabilities		7,238		3,619		3,888
Subordinated liabilities		30,134		31,517		29,433
Total liabilities		2,296,545		2,412,667		2,427,236
Equity
Called up share capital		8,658		6,003		6,053
Share premium account		8,390		8,097		8,463
Other equity instruments		2,133		2,134		2,133
Other reserves		19,186		27,561		(3,747)
Retained earnings		79,988		82,990		80,689
Total shareholders' equity		118,355		126,785		93,591
Minority interests		6,943		7,226		6,638
Total equity		125,298		134,011		100,229
Total equity and liabilities		2,421,843		2,546,678		2,527,465

Consolidated statement of cash flows for the half-year to 30 June 2009

		Half-year to
	Notes	30 June    2009		30 June    2008		31 December    2008
		US$m		US$m		US$m
Cash flows from operating activities
Profit/(loss) before tax		5,019		10,247		(940)
Adjustments for:
- non-cash items included in profit before tax	15	16,255		12,900		28,405
- change in operating assets	15	(37,279)		(101,131)		119,254
- change in operating liabilities	15	22,246		69,395		(132,808)
- elimination of exchange differences2		(7,878)		(11,632)		47,764
- net gain from investing activities		(911)		(1,555)		(2,640)
- share of profits in associates and joint ventures		(867)		(970)		(691)
- dividends received from associates		195		405		250
- contribution paid to defined benefit plans		(440)		(416)		(303)
- tax paid		118		(2,152)		(2,962)
Net cash generated from/(used in) operating activities		(3,542)		(24,909)		55,329
Cash flows from investing activities
Purchase of financial investments		(163,988)		(123,464)		(153,559)
Proceeds from the sale and maturity of financial investments		112,927		126,384		96,754
Purchase of property, plant and equipment		(781)		(1,112)		(1,873)
Proceeds from the sale of property, plant and equipment		2,203		2,156		311
Proceeds from the sale of loan portfolios		3,961		-		9,941
Net purchase of intangible assets		(463)		(553)		(616)
Net cash inflow/(outflow) from acquisition of and increase in  stake of subsidiaries		(574)		1,608		(295)
Net cash inflow from disposal of subsidiaries		-		440		2,539
Net cash outflow from acquisition of and increase in stake of  associates		(20)		(122)		(233)
Net cash inflow from the consolidation of funds		-		-		16,500
Proceeds from disposal of associates and joint ventures		308		(8)		109
Net cash generated from/(used in) investing activities		(46,427)		5,329		(30,422)
Cash flows from financing activities
Issue of ordinary share capital		18,181		52		415
- rights issue		18,179		-		-
- other		2		52		415
Issue of other equity instruments		-		2,134		(1)
Net purchases and sales of own shares for market-making and  investment purposes		(51)		(202)		8
Purchases of own shares to meet share awards and share  option awards		(62)		(783)		(25)
On exercise of share options		-		14		13
Subordinated loan capital issued		2,763		5,582		1,512
Subordinated loan capital repaid		(154)		6		(356)
Dividends paid to shareholders of the parent company		(2,426)		(3,825)		(3,386)
Dividends paid to minority interests		(433)		(394)		(320)
Dividends paid to holders of other equity instruments		(89)		-		(92)
Net cash generated from/(used in) financing activities		17,729		2,584		(2,232)
Net increase/(decrease) in cash and cash equivalents		(32,240)		(16,996)		22,675
Cash and cash equivalents at the beginning of the period		278,872		297,009		287,538
Exchange differences in respect of cash and cash equivalents		5,064		7,525		(31,341)
Cash and cash equivalents at the end of the period	15	251,696		287,538		278,872

For footnote, see page 206.

Consolidated statement of changes in equity for the half-year to 30 June 2009

	Half-year to 30 June 2009
									Other reserves
	Called up     share     capital		Share      premium3		Other     equity     instru-    ments		Retained      earnings4		Available-     for-sale     fair value     reserve		Cash flow     hedging      reserve5		Foreign     exchange     reserve		Share-     based     payment     reserve		Merger      reserve6		Total     share-    holders'     equity		Minority     interests		Total     equity
	US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m
At 1 January	6,053		8,463		2,133		80,689		(20,550)		(806)		(1,843)		1,995		17,457		93,591		6,638		100,229
Shares issued under employee share plans	-		3		-		-		-		-		-		-		-		3		-		3
Shares issued in lieu of dividends and  amounts arising thereon3	75		(75)		-		814		-		-		-		-		-		814		-		814
Shares issued in respect of rights issue	2,530		-		-		-		-		-		-		-		15,649		18,179		-		18,179
Dividends to shareholders	-		-		-		(2,728)		-		-		-		-		-		(2,728)		(513)		(3,241)
Own shares adjustment	-		-		-		(113)		-		-		-		-		-		(113)		-		(113)
Exercise and lapse of share options and  vesting of share awards	-		-		-		658		-		-		-		(699)		-		(41)		-		(41)
Cost of share-based payment arrangements	-		-		-		-		-		-		-		355		-		355		-		355
Other movements	-		(1)		-		(103)		-		-		-		11		-		(93)		12		(81)
Net increase in minority interest arising on acquisition, disposal and capital issuance	-		-		-		-		-		-		-		-		-		-		202		202
Total comprehensive income for the period	-		-		-		771		3,755		466		3,396		-		-		8,388		604		8,992
At 30 June	8,658		8,390		2,133		79,988		(16,795)		(340)		1,553		1,662		33,106		118,355		6,943		125,298

Cumulative goodwill amounting to US$5,138 million has been charged against reserves in respect of acquisitions of subsidiaries prior to 1 January 1998, including US$3,469 million charged against the merger reserve arising on the acquisition of HSBC Bank plc. The balance of US$1,669 million was charged against retained earnings.

Dividends per ordinary share at 30 June 2009 were US$0.18 (30 June 2008: US$0.57; 31 December 2008: US$0.36).

For footnotes, see page 206. 

Consolidated statement of changes in equity for the half-year to 30 June 2009 (continued)

	Half-year to 30 June 2008
									Other reserves
	Called up     share     capital		Share      premium3		Other     equity     instru-    ments		Retained      earnings4		Available-     for-sale     fair value     reserve		Cash flow     hedging      reserve5		Foreign     exchange     reserve		Share-     based     payment     reserve		Merger      reserve6		Total     share-    holders'     equity		Minority     interests		Total     equity
	US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m
At 1 January	5,915		8,134		-		81,097		850		(917)		10,055		1,968		21,058		128,160		7,256		135,416
Shares issued under employee share plans	2		50		-		-		-		-		-		-		-		52		-		52
Shares issued in lieu of dividends and  amounts arising thereon3	86		(87)		-		2,489		-		-		-		-		-		2,488		-		2,488
Capital securities issued during the period7	-		-		2,134		-		-		-		-		-		-		2,134		-		2,134
Dividends to shareholders	-		-		-		(6,823)		-		-		-		-		-		(6,823)		(506)		(7,329)
Own shares adjustment	-		-		-		(985)		-		-		-		-		-		(985)		-		(985)
Exercise and lapse of share options and  vesting of share awards	-		-		-		500		-		-		-		(587)		-		(87)		-		(87)
Cost of share-based payment arrangements	-		-		-		-		-		-		-		427		-		427		-		427
Other movements	-		-		-		15		(30)		(12)		-		(77)		-		(104)		(5)		(109)
Net increase in minority interest arising on acquisition, disposal and capital issuance	-		-		-		-		-		-		-		-		-		-		75		75
Total comprehensive income for the period	-		-		-		6,697		(8,112)		(187)		3,125		-		-		1,523		406		1,929
At 30 June	6,003		8,097		2,134		82,990		(7,292)		(1,116)		13,180		1,731		21,058		126,785		7,226		134,011

Cumulative goodwill amounting to US$5,138 million has been charged against reserves in respect of acquisitions of subsidiaries prior to 1 January 1998, including US$3,469 million charged against the merger reserve arising on the acquisition of HSBC Bank plc. The balance of US$1,669 million was charged against retained earnings.

For footnotes, see page 206.

	Half-year to 31 December 2008
									Other reserves
	Called up     share     capital		Share      premium3		Other     equity     instruments		Retained      earnings4		Available-     for-sale     fair value     reserve		Cash flow     hedging      reserve5		Foreign     exchange     reserve		Share-     based     payment     reserve		Merger      reserve6		Total     share-    holders'     equity		Minority     interests		Total     equity
	US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m
At 1 July	6,003		8,097		2,134		82,990		(7,292)		(1,116)		13,180		1,731		21,058		126,785		7,226		134,011
Shares issued under employee share plans	18		400		-		-		-		-		-		-		-		418		-		418
Shares issued in lieu of dividends and  amounts arising thereon3	32		(34)		-		1,107		-		-		-		-		-		1,105		-		1,105
Capital securities issued during the period7	-		-		-		-		-		-		-		-		-		-		-		-
Dividends to shareholders	-		-		-		(4,478)		-		-		-		-		-		(4,478)		(307)		(4,785)
Own shares adjustment	-		-		-		(17)		-		-		-		-		-		(17)		-		(17)
Exercise and lapse of share options and  vesting of share awards	-		-		-		327		-		-		-		(261)		-		66		-		66
Cost of share-based payment arrangements	-		-		-		-		-		-		-		392		-		392		-		392
Other movements	-		-		(1)		(267)		104		17		82		133		-		68		78		146
Transfers	-		-		-		3,601		-		-		-		-		(3,601)		-		-		-
Net increase in minority interest arising on acquisition, disposal and capital issuance	-		-		-		-		-		-		-		-		-		-		43		43
Total comprehensive income for the period	-		-		-		(2,574)		(13,362)		293		(15,105)		-		-		(30,748)		(402)		(31,150)
At 31 December	6,053		8,463		2,133		80,689		(20,550)		(806)		(1,843)		1,995		17,457		93,591		6,638		100,229

Cumulative goodwill amounting to US$5,138 million has been charged against reserves in respect of acquisitions of subsidiaries prior to 1 January 1998, including US$3,469 million charged against the merger reserve arising on the acquisition of HSBC Bank plc. The balance of US$1,669 million was charged against retained earnings.

For footnotes, see page 206.

 

END

 

 

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