Interim Report - 21 of 25

RNS Number : 6328J

HSBC Holdings PLC

10 August 2012

 



Consolidated income statement for the half-year to 30 June 2012

		Half-year to
		30 June                2012		30 June                2011		31 December                2011
	Notes	US$m		US$m		US$m
1  Interest income ...........................................................		29,549	2	31,046	3	31,959
4  Interest expense ..........................................................		(10,173)	5	(10,811)	6	(11,532)
7			8		9
10            Net interest income ........................................		19,376	11	20,235	12	20,427
13			14		15
16            Fee income .......................................................		10,281	17	10,944	18	10,553
19            Fee expense ......................................................		(1,974)	20	(2,137)	21	(2,200)
22			23		24
25            Net fee income .................................................		8,307	26	8,807	27	8,353
28
Trading income excluding net interest income ....................		3,134		3,231		52
Net interest income on trading activities ............................		1,385		1,581		1,642
29
Net trading income .............................................................		4,519		4,812		1,694
Changes in fair value of long-term debt issued and related derivatives ......................................................................		(1,810)		(494)		4,655
Net income/(expense) from other financial instruments designated at  fair value ........................................................................		627		394		(1,116)
Net income/(expense) from financial instruments designated at fair value ........................................................................		(1,183)		(100)		3,539
Gains less losses from financial investments ........................		1,023		485		422
Dividend income .................................................................		103		87		62
Net earned insurance premiums ...........................................		6,696		6,700		6,172
Gains on disposal of US branch network and cards business ..	14	3,809		-		-
Other operating income ......................................................		1,022		1,285		481
Total operating income ...................................................		43,672		42,311		41,150
Net insurance claims incurred and movement in liabilities to policyholders .............................................................		(6,775)		(6,617)		(4,564)
Net operating income before loan impairment charges and other credit risk provisions .......................................		36,897		35,694		36,586
Loan impairment charges and other credit risk provisions ..		(4,799)		(5,266)		(6,861)
Net operating income .....................................................		32,098		30,428		29,725
Employee compensation and benefits .................................		(10,905)		(10,521)		(10,645)
General and administrative expenses ...................................		(9,125)		(8,419)		(9,040)
Depreciation and impairment of property, plant and equipment ......................................................................		(706)		(805)		(765)
Amortisation and impairment of intangible assets ...............		(468)		(765)		(585)
Total operating expenses ................................................		(21,204)		(20,510)		(21,035)
Operating profit ..............................................................		10,894		9,918		8,690
Share of profit in associates and joint ventures ...................		1,843		1,556		1,708
Profit before tax ..............................................................		12,737		11,474		10,398
Tax expense .......................................................................	6	(3,629)		(1,712)		(2,216)
Profit for the period ........................................................		9,108		9,762		8,182
Profit attributable to shareholders of the parent company ..		8,438		9,215		7,582
Profit attributable to non-controlling interests ...................		670		547		600
		US$		US$		US$
Basic earnings per ordinary share ........................................	4	0.45		0.51		0.41
Diluted earnings per ordinary share .....................................	4	0.45		0.50		0.41

The accompanying notes on pages 219 to 263 form an integral part of these financial statements¹.

For footnote, see page 218.

Consolidated statement of comprehensive income for the half-year to 30 June 2012

	Half-year to
	30 June		30 June		31 December
	2012		2011		2011
	US$m		US$m		US$m
Profit for the period .....................................................................................	9,108		9,762		8,182
Other comprehensive income/(expense)
Available-for-sale investments .....................................................................	1,593		1,136		(462)
-  fair value gains/(losses) .........................................................................	2,362		1,378		(99)
-  fair value gains transferred to income statement on disposal .................	(1,017)		(529)		(291)
-  amounts transferred to the income statement in respect of    impairment losses ..............................................................................	450		287		296
-  income taxes ........................................................................................	(202)		-		(368)
Cash flow hedges ..........................................................................................	(6)		40		147
-  fair value gains/(losses) .........................................................................	(307)		231		(812)
-  fair value (gains)/losses transferred to income statement .......................	245		(196)		984
-  income taxes ........................................................................................	56		5		(25)
Actuarial gains/(losses) on defined benefit plans ............................................	(469)		(19)		1,028
-  before income taxes ..............................................................................	(619)		(18)		1,285
-  income taxes ........................................................................................	150		(1)		(257)
Share of other comprehensive income/(expense) of associates and joint ventures .......................................................................................................	338		(146)		(564)
Exchange differences ....................................................................................	(392)		4,404		(7,269)
Income tax attributable to exchange differences ...........................................	-		165		-
Other comprehensive income/(expense) for the period, net of tax ...............	1,064		5,580		(7,120)
Total comprehensive income for the period .................................................	10,172		15,342		1,062
Total comprehensive income for the period attributable to:
-  shareholders of the parent company .....................................................	9,515		14,728		638
-  non-controlling interests ......................................................................	657		614		424
	10,172		15,342		1,062

The accompanying notes on pages 219 to 263 form an integral part of these financial statements¹.

For footnote, see page 218.

Consolidated balance sheet at 30 June 2012

		At           30 June		At             30 June		At    31 December
		2012		2011		2011
	Notes	US$m		US$m		US$m
Assets
Cash and balances at central banks ......................................................		147,911		68,218		129,902
Items in the course of collection from other banks .............................		11,075		15,058		8,208
Hong Kong Government certificates of indebtedness ..........................		21,283		19,745		20,922
Trading assets .....................................................................................	7	391,371		474,950		330,451
Financial assets designated at fair value ...............................................	11	32,310		39,565		30,856
Derivatives .........................................................................................	12	355,934		260,672		346,379
Loans and advances to banks ..............................................................		182,191		226,043		180,987
Loans and advances to customers .......................................................		974,985		1,037,888		940,429
Financial investments .........................................................................	13	393,736		416,857		400,044
Assets held for sale .............................................................................	14	12,383		1,599		39,558
Other assets ........................................................................................		47,115		45,904		48,699
Current tax assets ...............................................................................		1,312		1,487		1,061
Prepayments and accrued income .......................................................		9,736		12,556		10,059
Interests in associates and joint ventures ............................................		23,790		18,882		20,399
Goodwill and intangible assets .............................................................		28,916		32,028		29,034
Property, plant and equipment ...........................................................		10,642		11,594		10,865
Deferred tax assets .............................................................................		7,644		7,941		7,726
Total assets ........................................................................................		2,652,334		2,690,987		2,555,579
Liabilities and equity
Liabilities
Hong Kong currency notes in circulation ............................................		21,283		19,745		20,922
Deposits by banks ...............................................................................		123,553		125,479		112,822
Customer accounts .............................................................................		1,278,489		1,318,987		1,253,925
Items in the course of transmission to other banks .............................		11,321		16,317		8,745
Trading liabilities ................................................................................	15	308,564		385,824		265,192
Financial liabilities designated at fair value ..........................................	16	87,593		98,280		85,724
Derivatives .........................................................................................	12	355,952		257,025		345,380
Debt securities in issue ........................................................................		125,543		149,803		131,013
Liabilities of disposal groups held for sale ...........................................		12,599		41		22,200
Other liabilities ...................................................................................		35,119		31,542		27,967
Current tax liabilities ..........................................................................		3,462		2,629		2,117
Liabilities under insurance contracts ...................................................		62,861		64,451		61,259
Accruals and deferred income .............................................................		11,727		13,432		13,106
Provisions ..........................................................................................	17	5,259		3,027		3,324
Deferred tax liabilities ........................................................................		1,585		1,157		1,518
Retirement benefit liabilities ...............................................................		3,962		2,958		3,666
Subordinated liabilities ........................................................................		29,696		32,753		30,606
Total liabilities ...................................................................................		2,478,568		2,523,450		2,389,486
Equity
Called up share capital ........................................................................		9,081		8,909		8,934
Share premium account ......................................................................		9,841		8,401		8,457
Other equity instruments ....................................................................		5,851		5,851		5,851
Other reserves ....................................................................................		24,806		31,085		23,615
Retained earnings ...............................................................................		116,266		106,004		111,868
Total shareholders' equity ..................................................................		165,845		160,250		158,725
Non-controlling interests ...................................................................		7,921		7,287		7,368
Total equity .......................................................................................		173,766		167,537		166,093
Total equity and liabilities ..................................................................		2,652,334		2,690,987		2,555,579

The accompanying notes on pages 219 to 263 form an integral part of these financial statements¹.

For footnote, see page 218.

Consolidated statement of cash flows for the half-year to 30 June 2012

		Half-year to
	Notes	30 June               2012		30 June               2011		31 December               2011
		US$m		US$m		US$m
Cash flows from operating activities
Profit before tax ..............................................................................		12,737		11,474		10,398
	-
Adjustments for:
-  net gain from investing activities ..............................................		(1,481)		(544)		(652)
-  share of profit in associates and joint ventures ..........................		(1,843)		(1,556)		(1,708)
-  gain on disposal of US branches and cards business ....................		(3,809)		-		-
-  other non-cash items included in profit before tax ....................	20	10,420		8,825		11,053
-  change in operating assets .........................................................	20	(47,658)		(92,560)		85,148
-  change in operating liabilities ....................................................	20	40,766		130,301		(86,289)
-  elimination of exchange differences2 ........................................		3,504		(16,046)		26,886
-  dividends received from associates ............................................		278		246		58
-  contributions paid to defined benefit plans ................................		(437)		(588)		(589)
-  tax paid ....................................................................................		(2,304)		(1,709)		(2,386)
Net cash generated from operating activities ....................................		10,173		37,843		41,919
Cash flows from investing activities
Purchase of financial investments ....................................................		(177,427)		(156,596)		(162,412)
Proceeds from the sale and maturity of financial investments ..........		188,242		153,407		158,295
Purchase of property, plant and equipment ......................................		(683)		(665)		(840)
Proceeds from the sale of property, plant and equipment .................		76		194		106
Net purchase of intangible assets ......................................................		(507)		(893)		(678)
Net cash inflow from disposal of US branch network and cards business..........................................................................................		23,484		-		-
Net cash inflow/(outflow) from disposal of other subsidiaries and businesses ......................................................................................		(1,537)		5		211
Net cash outflow from acquisition of or increase in stake of associates ......................................................................................		(13)		(39)		(51)
Proceeds from disposal of associates and joint ventures ....................		288		11		14
Net cash used in investing activities ..................................................		31,923		(4,576)		(5,355)
Cash flows from financing activities
Issue of ordinary share capital ..........................................................		263		13		83
Net sales of own shares for market-making and investment purposes .........................................................................................................		25		27		(252)
(Purchases)/sales of own shares to meet share awards and share option awards ...............................................................................		-		(27)		(109)
Subordinated loan capital issued ........................................................		-		-		7
Subordinated loan capital repaid ........................................................		(1,453)		(2,574)		(1,203)
Net cash outflow from change in stake in subsidiaries .......................		-		-		104
Dividends paid to ordinary shareholders of the parent company .......		(3,161)		(2,192)		(2,822)
Dividends paid to non-controlling interests ......................................		(325)		(321)		(247)
Dividends paid to holders of other equity instruments .......................		(286)		(286)		(287)
Net cash generated from/(used in) financing activities ......................		(4,937)		(5,360)		(4,726)
Net increase/(decrease) in cash and cash equivalents ..............		37,159		27,907		31,838
Cash and cash equivalents at the beginning of the period ..................		325,449		274,076		312,351
Exchange differences in respect of cash and cash equivalents ............		(3,601)		10,368		(18,740)
Cash and cash equivalents at the end of the period ............................	20	359,007		312,351		325,449

The accompanying notes on pages 219 to 263 form an integral part of these financial statements¹.

For footnotes, see page 218.

Consolidated statement of changes in equity for the half-year to 30 June 2012

	Half-year to 30 June 2012
									Other reserves
	Called up share capital		Share  premium3		Other equity instru-  ments		Retained  earnings4,5		Available-   for-sale fair value    reserve		Cash flow  hedging   reserve6		Foreign exchange    reserve		Merger  reserve4,7		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 2012............................................	8,934		8,457		5,851		111,868		(3,361)		(95)		(237)		27,308		158,725		7,368		166,093
Profit for the period ........................................	-		-		-		8,438		-		-		-		-		8,438		670		9,108
	-		-		-
Other comprehensive income (net of tax) .......	-		-		-		(114)		1,562		(7)		(364)		-		1,077		(13)		1,064
Available-for-sale investments .........................	-		-		-				1,562		-		-		-		1,562		31		1,593
Cash flow hedges ..............................................	-		-		-				-		(7)		-		-		(7)		1		(6)
Actuarial gains/(losses) on defined benefit plans .....................................................................	-		-		-		(452)		-		-		-		-		(452)		(17)		(469)
Share of other comprehensive income of associates and joint ventures ........................................	-		-		-		338		-		-				-		338		-		338
Exchange differences .......................................	-		-		-		-		-		-		(364)		-		(364)		(28)		(392)
Total comprehensive income for the period ....	-		-		-		8,324		1,562		(7)		(364)		-		9,515		657		10,172
Shares issued under employee share plans .........	84		1,447		-		(1,268)		-		-		-		-		263		-		263
Shares issued in lieu of dividends and amounts arising thereon3 .......................................................	63		(63)		-		1,007		-		-		-		-		1,007		-		1,007
Dividends to shareholders8 ...............................	-		-		-		(4,454)		-		-		-		-		(4,454)		(398)		(4,852)
Tax credits on distributions ..............................	-		-		-		59		-		-		-		-		59				59
Own shares adjustment .....................................	-		-		-		32		-		-		-		-		32		-		32
Cost of share-based payment arrangements ......	-		-		-		541		-		-		-		-		541		-		541
Income taxes on share-based payments ............	-		-		-		(5)		-		-		-		-		(5)		-		(5)
Other movements ............................................	-		-		-		119		-		-		-		-		119		(11)		108
Acquisition and disposal of subsidiaries .............	-		-		-		-		-		-		-		-		-		376		376
Changes in ownership interests in subsidiaries that did not result in loss of control ..........................	-		-		-		43		-		-		-		-		43		(71)		(28)
	-
At 30 June 2012 ..............................................	9,081		9,841		5,851		116,266		(1,799)		(102)		(601)		27,308		165,845		7,921		173,766

Consolidated statement of changes in equity for the half-year to 30 June 2012 (continued)

	Half-year to 30 June 2011
									Other reserves
	Called up share capital		Share  premium3		Other       equity       instru- ments		Retained  earnings 4,5		Available-     for-sale fair value reserve		Cash flow    hedging    reserve6		Foreign exchange reserve		Merger  reserve4,7		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 thereon3 .......................................................	65		(65)		-		1,334		-		-		-		-		1,334		-		1,334
Dividends to shareholders8 ...............................	-		-		-		(4,006)		-		-		-		-		(4,006)		(413)		(4,419)
Tax credits on distributions ..............................	-		-		-		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

	Half-year to 31 December 2011
									Other reserves
	Called up         share      capital		Share  premium3		Other       equity       instru-       ments		Retained   earnings4,5		Available-     for-sale fair value      reserve		Cash flow     hedging    reserve6		Foreign exchange      reserve		Merger   reserve4,7		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 2011.........................................	8,909		8,401		5,851		106,004		(2,917)		(245)		6,939		27,308		160,250		7,287		167,537
Profit for the period ...............................	-		-		-		7,582		-		-		-		-		7,582		600		8,182
Other comprehensive income (net of tax) ............................................................	-		-		-		512		(430)		150		(7,176)		-		(6,944)		(176)		(7,120)
Available-for-sale investments ................	-		-		-		-		(430)		-		-		-		(430)		(32)		(462)
Cash flow hedges .....................................	-		-		-		-		-		150		-		-		150		(3)		147
Actuarial losses on defined benefit plans ..	-		-		-		1,076		-		-		-		-		1,076		(48)		1,028
Share of other comprehensive income of associates and joint ventures ................................	-		-		-		(564)		-		-		-		-		(564)		-		(564)
Exchange differences ..............................	-		-		-		-		-		-		(7,176)		-		(7,176)		(93)		(7,269)
Total comprehensive income for period .	-		-		-		8,094		(430)		150		(7,176)		-		638		424		1,062
Shares issued under employee share plans	5		78		-		-		-		-		-		-		83		-		83
Shares issued in lieu of dividends and amounts arising thereon3 ...................................	20		(22)		-		898		-		-		-		-		896		-		896
Dividends to shareholders8.......................	-		-		-		(3,495)		-		-		-		-		(3,495)		(402)		(3,897)
Tax credits on distributions .....................	-		-		-		64		-		-		-		-		64		-		64
Own shares adjustment ............................	-		-		-		(136)		-		-		-		-		(136)		-		(136)
Cost of share-based payment arrangements .......................................	-		-		-		566		-		-		-		-		566		-		566
Income taxes on share based payments ...	-		-		-		(15)		-		-		-		-		(15)		-		(15)
Other movements ...................................	-		-		-		(112)		(14)		-		-		-		(126)		27		(99)
Acquisition and disposal of subsidiaries ....	-		-		-		-		-		-		-		-		-		9		9
Changes in ownership interests in subsidiaries that did not result in loss of control .................	-		-		-		-		-		-		-		-		-		23		23
At 31 December 2011..............................	8,934		8,457		5,851		111,868		(3,361)		(95)		(237)		27,308		158,725		7,368		166,093

The accompanying notes on pages 219 to 263 form an integral part of these financial statements¹.

For footnotes, see page 218.

 

END

 

 

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