Key financial metrics
|
Half-year to
| |||
30 Jun
|
30 Jun
|
31 Dec
| |
2022
|
2021
|
2021
| |
Reported results
| |||
Reported revenue ($m)
|
25,236
|
25,551
|
24,001
|
Reported profit before tax ($m)
|
9,176
|
10,839
|
8,067
|
Reported profit after tax ($m)
|
9,215
|
8,422
|
6,271
|
Profit attributable to the ordinary shareholders of the parent company ($m)
|
8,289
|
7,276
|
5,331
|
Cost efficiency ratio (%)
|
65.1
|
66.9
|
73.1
|
Net interest margin (%)1
|
1.30
|
1.21
|
1.20
|
Basic earnings per share ($)
|
0.42
|
0.36
|
0.26
|
Diluted earnings per share ($)
|
0.41
|
0.36
|
0.26
|
Alternative performance measures
| |||
Adjusted revenue ($m)
|
25,690
|
24,734
|
23,577
|
Adjusted profit before tax ($m)
|
10,673
|
11,538
|
9,681
|
Adjusted cost efficiency ratio (%)
|
59.9
|
62.7
|
65.5
|
Expected credit losses and other credit impairment charges ('ECL') (annualised) as % of average gross loans and advances to customers (%)
|
0.21
|
(0.14)
|
(0.03)
|
Return on average ordinary shareholders' equity (annualised) (%)1
|
9.7
|
8.4
|
7.1
|
Return on average tangible equity (annualised) (%)1,2
|
9.9
|
9.4
|
8.3
|
At
| |||
30 Jun
|
30 Jun
|
31 Dec
| |
2022
|
2021
|
2021
| |
Balance sheet
| |||
Total assets ($m)
|
2,985,420
|
2,976,005
|
2,957,939
|
Net loans and advances to customers ($m)
|
1,028,356
|
1,059,511
|
1,045,814
|
Customer accounts ($m)
|
1,651,301
|
1,669,091
|
1,710,574
|
Average interest-earning assets ($m)
|
2,233,321
|
2,188,991
|
2,209,513
|
Loans and advances to customers as % of customer accounts (%)
|
62.3
|
63.5
|
61.1
|
Total shareholders' equity ($m)
|
188,382
|
198,218
|
198,250
|
Tangible ordinary shareholders' equity ($m)
|
148,308
|
157,985
|
158,193
|
Net asset value per ordinary share at period end ($)
|
8.41
|
8.69
|
8.76
|
Tangible net asset value per ordinary share at period end ($)
|
7.48
|
7.81
|
7.88
|
Capital, leverage and liquidity
| |||
Common equity tier 1 capital ratio (%)3,4
|
13.6
|
15.6
|
15.8
|
Risk-weighted assets ($m)3,4
|
851,743
|
862,292
|
838,263
|
Total capital ratio (%)3,4
|
18.6
|
21.0
|
21.2
|
Leverage ratio (%)3,4
|
5.5
|
5.3
|
5.2
|
High-quality liquid assets (liquidity value) ($bn)4
|
656.6
|
659.3
|
717.0
|
Liquidity coverage ratio (%)4
|
134
|
134
|
138
|
Share count
| |||
Period end basic number of $0.50 ordinary shares outstanding (millions)
|
19,819
|
20,223
|
20,073
|
Period end basic number of $0.50 ordinary shares outstanding and dilutive potential ordinary shares (millions)
|
19,949
|
20,315
|
20,189
|
Average basic number of $0.50 ordinary shares outstanding (millions)
|
19,954
|
20,211
|
20,183
|
Dividend per ordinary share (in respect of the period) ($)
|
0.09
|
0.07
|
0.18
|
Highlights
|
Half-year to
| ||
30 Jun
|
30 Jun
| |
2022
|
2021
| |
$m
|
$m
| |
Reported
| ||
Revenue1
|
25,236
|
25,551
|
Change in expected credit losses and other credit impairment charges
|
(1,090)
|
719
|
Operating expenses
|
(16,419)
|
(17,087)
|
Share of profit in associates and joint ventures
|
1,449
|
1,656
|
Profit before tax
|
9,176
|
10,839
|
Tax (expense)/credit
|
39
|
(2,417)
|
Profit after tax
|
9,215
|
8,422
|
Adjusted2
| ||
Revenue1,3
|
25,690
|
24,734
|
Change in expected credit losses and other credit impairment charges
|
(1,090)
|
675
|
Operating expenses
|
(15,376)
|
(15,520)
|
Share of profit in associates and joint ventures
|
1,449
|
1,649
|
Profit before tax
|
10,673
|
11,538
|
Tax (expense)/credit
|
(1,962)
|
(2,455)
|
Profit after tax
|
8,711
|
9,083
|
Significant items affecting adjusted performance
| ||
Revenue
| ||
Customer redress programmes
|
(14)
|
18
|
Disposals, acquisitions and investment in new businesses3
|
(288)
|
-
|
Fair value movements on financial instruments4
|
(220)
|
(194)
|
Restructuring and other related costs5
|
68
|
(70)
|
Operating expenses
| ||
Customer redress programmes
|
6
|
(17)
|
Impairment of goodwill and other intangibles
|
(9)
|
-
|
Restructuring and other related costs
|
(1,040)
|
(848)
|
Tax expense/(credit)
| ||
Tax charge/(credit) on significant items
|
(236)
|
(153)
|
Recognition of losses on HSBC Holdings
|
(1,765)
|
-
|
Review by Noel Quinn, Group Chief Executive
|
Financial summary
|
Half-year to
| |||
30 Jun
|
30 Jun
|
31 Dec
| |
2022
|
2021
|
2021
| |
$m
|
$m
|
$m
| |
For the period
| |||
Profit before tax
|
9,176
|
10,839
|
8,067
|
Profit attributable to:
| |||
- ordinary shareholders of the parent company
|
8,289
|
7,276
|
5,331
|
Dividends on ordinary shares1
|
3,576
|
3,059
|
1,421
|
At the period end
| |||
Total shareholders' equity
|
188,382
|
198,218
|
198,250
|
Total regulatory capital
|
158,519
|
181,122
|
177,786
|
Customer accounts
|
1,651,301
|
1,669,091
|
1,710,574
|
Total assets
|
2,985,420
|
2,976,005
|
2,957,939
|
Risk-weighted assets
|
851,743
|
862,292
|
838,263
|
Per ordinary share
|
$
|
$
|
$
|
Basic earnings
|
0.42
|
0.36
|
0.26
|
Dividend per ordinary share (paid in the period)1
|
0.18
|
0.15
|
0.07
|
Net asset value2
|
8.41
|
8.69
|
8.76
|
Distribution of results by global business
|
Adjusted profit before tax
| ||||||
Half-year to
| ||||||
30 Jun 2022
|
30 Jun 2021
|
31 Dec 2021
| ||||
$m
|
%
|
$m
|
%
|
$m
|
%
| |
Wealth and Personal Banking
|
2,946
|
27.6
|
3,751
|
32.5
|
3,104
|
32.1
|
Commercial Banking
|
3,578
|
33.5
|
3,211
|
27.8
|
3,241
|
33.5
|
Global Banking and Markets
|
2,879
|
27.0
|
3,199
|
27.8
|
1,967
|
20.3
|
Corporate Centre
|
1,270
|
11.9
|
1,377
|
11.9
|
1,369
|
14.1
|
Profit before tax
|
10,673
|
100.0
|
11,538
|
100.0
|
9,681
|
100.0
|
Distribution of results by geographical region
|
Reported profit/(loss) before tax
| ||||||
Half-year to
| ||||||
30 Jun 2022
|
30 Jun 2021
|
31 Dec 2021
| ||||
$m
|
%
|
$m
|
%
|
$m
|
%
| |
Europe
|
883
|
9.6
|
1,968
|
18.2
|
1,811
|
22.4
|
Asia
|
6,300
|
68.7
|
6,936
|
64.0
|
5,313
|
65.9
|
Middle East and North Africa
|
748
|
8.2
|
723
|
6.7
|
700
|
8.7
|
North America
|
858
|
9.4
|
805
|
7.4
|
569
|
7.0
|
Latin America
|
387
|
4.1
|
407
|
3.7
|
(326)
|
(4.0)
|
Profit before tax
|
9,176
|
100.0
|
10,839
|
100.0
|
8,067
|
100.0
|
HSBC adjusted profit before tax and balance sheet data
| |||||
Half-year to 30 Jun 2022
| |||||
Wealth and Personal Banking
|
Commercial
Banking
|
Global
Banking and
Markets
|
Corporate Centre
|
Total
| |
$m
|
$m
|
$m
|
$m
|
$m
| |
Net operating income/(expense) before change in expected credit losses and other credit impairment charges1
|
10,922
|
7,217
|
7,841
|
(290)
|
25,690
|
- external
|
10,569
|
7,281
|
8,867
|
(1,027)
|
25,690
|
- inter-segment
|
353
|
(64)
|
(1,026)
|
737
|
-
|
of which: net interest income/(expense)
|
7,658
|
5,007
|
2,296
|
(496)
|
14,465
|
Change in expected credit losses and other credit impairment (charges)/recoveries
|
(573)
|
(288)
|
(227)
|
(2)
|
(1,090)
|
Net operating income/(expense)
|
10,349
|
6,929
|
7,614
|
(292)
|
24,600
|
Total operating expenses
|
(7,411)
|
(3,351)
|
(4,735)
|
121
|
(15,376)
|
Operating profit/(loss)
|
2,938
|
3,578
|
2,879
|
(171)
|
9,224
|
Share of profit in associates and joint ventures
|
8
|
-
|
-
|
1,441
|
1,449
|
Adjusted profit before tax
|
2,946
|
3,578
|
2,879
|
1,270
|
10,673
|
%
|
%
|
%
|
%
|
%
| |
Share of HSBC's adjusted profit before tax
|
27.6
|
33.5
|
27.0
|
11.9
|
100.0
|
Adjusted cost efficiency ratio
|
67.9
|
46.4
|
60.4
|
41.7
|
59.9
|
Adjusted balance sheet data
|
$m
|
$m
|
$m
|
$m
|
$m
|
Loans and advances to customers (net)
|
475,464
|
348,253
|
204,097
|
542
|
1,028,356
|
Interests in associates and joint ventures
|
484
|
14
|
121
|
28,827
|
29,446
|
Total external assets
|
882,490
|
619,490
|
1,318,425
|
165,015
|
2,985,420
|
Customer accounts
|
836,026
|
479,680
|
335,033
|
562
|
1,651,301
|
Adjusted risk-weighted assets2
|
186,154
|
341,935
|
241,077
|
82,577
|
851,743
|
Half-year to 30 Jun 2021
| |||||
Net operating income before change in expected credit losses and other credit impairment charges1
|
10,980
|
6,353
|
7,518
|
(117)
|
24,734
|
- external
|
10,782
|
6,326
|
8,305
|
(679)
|
24,734
|
- inter-segment
|
198
|
27
|
(787)
|
562
|
-
|
of which: net interest income/(expense)
|
6,807
|
4,172
|
1,937
|
(374)
|
12,542
|
Change in expected credit losses and other credit impairment (charges)/recoveries
|
38
|
228
|
405
|
4
|
675
|
Net operating income/(expense)
|
11,018
|
6,581
|
7,923
|
(113)
|
25,409
|
Total operating expenses
|
(7,277)
|
(3,371)
|
(4,724)
|
(148)
|
(15,520)
|
Operating profit/(loss)
|
3,741
|
3,210
|
3,199
|
(261)
|
9,889
|
Share of profit in associates and joint ventures
|
10
|
1
|
-
|
1,638
|
1,649
|
Adjusted profit before tax
|
3,751
|
3,211
|
3,199
|
1,377
|
11,538
|
%
|
%
|
%
|
%
|
%
| |
Share of HSBC's adjusted profit before tax
|
32.5
|
27.8
|
27.7
|
12.0
|
100.0
|
Adjusted cost efficiency ratio
|
66.3
|
53.1
|
62.9
|
(126.5)
|
62.7
|
Adjusted balance sheet data
|
$m
|
$m
|
$m
|
$m
|
$m
|
Loans and advances to customers (net)
|
458,573
|
329,873
|
205,044
|
1,065
|
994,555
|
Interests in associates and joint ventures
|
467
|
15
|
121
|
27,315
|
27,918
|
Total external assets
|
859,383
|
581,741
|
1,164,916
|
184,436
|
2,790,476
|
Customer accounts
|
793,277
|
455,006
|
316,865
|
794
|
1,565,942
|
Adjusted risk-weighted assets2
|
175,621
|
311,126
|
244,007
|
88,192
|
818,946
|
HSBC adjusted profit before tax and balance sheet data (continued)
| |||||
Half-year to 31 Dec 2021
| |||||
Wealth and Personal Banking
|
Commercial
Banking
|
Global
Banking and
Markets
|
Corporate Centre
|
Total
| |
$m
|
$m
|
$m
|
$m
|
$m
| |
Net operating income/(expense) before change in expected credit losses and other credit impairment charges1
|
10,439
|
6,556
|
6,878
|
(296)
|
23,577
|
- external
|
10,354
|
6,460
|
7,676
|
(913)
|
23,577
|
- inter-segment
|
85
|
96
|
(798)
|
617
|
-
|
of which: net interest income/(expense)
|
6,955
|
4,387
|
2,032
|
(353)
|
13,021
|
Change in expected credit losses and other credit impairment (charges)/recoveries
|
215
|
40
|
(80)
|
(1)
|
174
|
Net operating income/(expense)
|
10,654
|
6,596
|
6,798
|
(297)
|
23,751
|
Total operating expenses
|
(7,574)
|
(3,355)
|
(4,831)
|
313
|
(15,447)
|
Operating profit/(loss)
|
3,080
|
3,241
|
1,967
|
16
|
8,304
|
Share of profit in associates and joint ventures
|
24
|
-
|
-
|
1,353
|
1,377
|
Adjusted profit before tax
|
3,104
|
3,241
|
1,967
|
1,369
|
9,681
|
%
|
%
|
%
|
%
|
%
| |
Share of HSBC's adjusted profit before tax
|
32.1
|
33.5
|
20.3
|
14.1
|
100.0
|
Adjusted cost efficiency ratio
|
72.6
|
51.2
|
70.2
|
105.7
|
65.5
|
Adjusted balance sheet data
|
$m
|
$m
|
$m
|
$m
|
$m
|
Loans and advances to customers (net)
|
462,452
|
332,710
|
198,854
|
686
|
994,702
|
Interests in associates and joint ventures
|
490
|
13
|
119
|
27,938
|
28,560
|
Total external assets
|
889,349
|
589,834
|
1,157,478
|
175,688
|
2,812,349
|
Customer accounts
|
820,564
|
481,781
|
324,239
|
590
|
1,627,174
|
Adjusted risk-weighted assets2
|
171,022
|
316,443
|
228,263
|
89,543
|
805,271
|
Consolidated income statement
| |||
Half-year to
| |||
30 Jun
|
30 Jun
|
31 Dec
| |
2022
|
2021
|
2021
| |
$m
|
$m
|
$m
| |
Net interest income
|
14,451
|
13,098
|
13,391
|
- interest income
|
20,855
|
17,960
|
18,228
|
- interest expense
|
(6,404)
|
(4,862)
|
(4,837)
|
Net fee income
|
6,064
|
6,674
|
6,423
|
- fee income
|
7,949
|
8,458
|
8,330
|
- fee expense
|
(1,885)
|
(1,784)
|
(1,907)
|
Net income from financial instruments held for trading or managed on a fair value basis
|
4,921
|
4,184
|
3,560
|
Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss
|
(3,051)
|
2,795
|
1,258
|
Change in fair value of designated debt and related derivatives
|
(158)
|
(67)
|
(115)
|
Changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss
|
68
|
548
|
250
|
Gains less losses from financial investments
|
21
|
433
|
136
|
Net insurance premium income
|
7,646
|
5,663
|
5,207
|
Other operating income
|
723
|
155
|
347
|
Total operating income
|
30,685
|
33,483
|
30,457
|
Net insurance claims and benefits paid and movement in liabilities to policyholders
|
(5,449)
|
(7,932)
|
(6,456)
|
Net operating income before change in expected credit losses and other credit impairment charges
|
25,236
|
25,551
|
24,001
|
Change in expected credit losses and other credit impairment charges
|
(1,090)
|
719
|
209
|
Net operating income
|
24,146
|
26,270
|
24,210
|
Employee compensation and benefits
|
(9,071)
|
(9,610)
|
(9,132)
|
General and administrative expenses
|
(5,445)
|
(5,675)
|
(5,917)
|
Depreciation and impairment of property, plant and equipment and right-of-use assets
|
(1,075)
|
(1,160)
|
(1,101)
|
Amortisation and impairment of intangible assets
|
(828)
|
(642)
|
(796)
|
Goodwill impairment
|
-
|
-
|
(587)
|
Total operating expenses
|
(16,419)
|
(17,087)
|
(17,533)
|
Operating profit
|
7,727
|
9,183
|
6,677
|
Share of profit in associates and joint ventures
|
1,449
|
1,656
|
1,390
|
Profit before tax
|
9,176
|
10,839
|
8,067
|
Tax credit/(charge)
|
39
|
(2,417)
|
(1,796)
|
Profit for the period
|
9,215
|
8,422
|
6,271
|
Attributable to:
| |||
- ordinary shareholders of the parent company
|
8,289
|
7,276
|
5,331
|
- preference shareholders of the parent company
|
-
|
7
|
-
|
- other equity holders
|
626
|
666
|
637
|
- non-controlling interests
|
300
|
473
|
303
|
Profit for the period
|
9,215
|
8,422
|
6,271
|
$
|
$
|
$
| |
Basic earnings per ordinary share
|
0.42
|
0.36
|
0.26
|
Diluted earnings per ordinary share
|
0.41
|
0.36
|
0.26
|
Consolidated statement of comprehensive income
| |||
Half-year to
| |||
30 Jun
|
30 Jun
|
31 Dec
| |
2022
|
2021
|
2021
| |
$m
|
$m
|
$m
| |
Profit for the period
|
9,215
|
8,422
|
6,271
|
Other comprehensive income/(expense)
| |||
Items that will be reclassified subsequently to profit or loss when specific conditions are met:
| |||
Debt instruments at fair value through other comprehensive income
|
(4,907)
|
(1,368)
|
(771)
|
- fair value losses
|
(6,328)
|
(1,392)
|
(878)
|
- fair value gains transferred to the income statement on disposal
|
(53)
|
(375)
|
(89)
|
- expected credit recoveries/(losses) recognised in the income statement
|
20
|
(26)
|
(23)
|
- income taxes
|
1,454
|
425
|
219
|
Cash flow hedges
|
(2,063)
|
(238)
|
(426)
|
- fair value gains/(losses)
|
(1,646)
|
877
|
(282)
|
- fair value gains reclassified to the income statement
|
(1,127)
|
(1,195)
|
(319)
|
- income taxes and other movements
|
710
|
80
|
175
|
Share of other comprehensive income/(expense) of associates and joint ventures
|
(141)
|
104
|
(1)
|
- share for the period
|
(141)
|
104
|
(1)
|
Exchange differences
|
(8,521)
|
(449)
|
(1,944)
|
Items that will not be reclassified subsequently to profit or loss:
| |||
Remeasurement of defined benefit asset/(liability)
|
95
|
(747)
|
473
|
- before income taxes
|
(132)
|
(775)
|
668
|
- income taxes
|
227
|
28
|
(195)
|
Changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk
|
2,263
|
155
|
376
|
- before income taxes
|
3,030
|
(2)
|
514
|
- income taxes
|
(767)
|
157
|
(138)
|
Equity instruments designated at fair value through other comprehensive income
|
158
|
(348)
|
(98)
|
- fair value gains/(losses)
|
158
|
(345)
|
(98)
|
- income taxes
|
-
|
(3)
|
-
|
Effects of hyperinflation
|
417
|
166
|
149
|
Other comprehensive income/(expense) for the period, net of tax
|
(12,699)
|
(2,725)
|
(2,242)
|
Total comprehensive (expense)/income for the period
|
(3,484)
|
5,697
|
4,029
|
Attributable to:
| |||
- ordinary shareholders of the parent company
|
(4,246)
|
4,612
|
3,153
|
- preference shareholders of the parent company
|
-
|
7
|
-
|
- other equity holders
|
626
|
666
|
637
|
- non-controlling interests
|
136
|
412
|
239
|
Total comprehensive (expense)/income for the period
|
(3,484)
|
5,697
|
4,029
|
Consolidated balance sheet
| ||
At
| ||
30 Jun
|
31 Dec
| |
2022
|
2021
| |
$m
|
$m
| |
Assets
| ||
Cash and balances at central banks
|
363,608
|
403,018
|
Items in the course of collection from other banks
|
8,073
|
4,136
|
Hong Kong Government certificates of indebtedness
|
43,866
|
42,578
|
Trading assets
|
217,350
|
248,842
|
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss
|
45,873
|
49,804
|
Derivatives
|
262,923
|
196,882
|
Loans and advances to banks
|
96,429
|
83,136
|
Loans and advances to customers
|
1,028,356
|
1,045,814
|
Reverse repurchase agreements - non-trading
|
244,451
|
241,648
|
Financial investments
|
430,796
|
446,274
|
Prepayments, accrued income and other assets
|
185,823
|
139,982
|
Current tax assets
|
1,151
|
970
|
Interests in associates and joint ventures
|
29,446
|
29,609
|
Goodwill and intangible assets
|
21,625
|
20,622
|
Deferred tax assets
|
5,650
|
4,624
|
Total assets
|
2,985,420
|
2,957,939
|
Liabilities and equity
| ||
Liabilities
| ||
Hong Kong currency notes in circulation
|
43,866
|
42,578
|
Deposits by banks
|
105,275
|
101,152
|
Customer accounts
|
1,651,301
|
1,710,574
|
Repurchase agreements - non-trading
|
129,707
|
126,670
|
Items in the course of transmission to other banks
|
9,673
|
5,214
|
Trading liabilities
|
80,569
|
84,904
|
Financial liabilities designated at fair value
|
126,006
|
145,502
|
Derivatives
|
251,469
|
191,064
|
Debt securities in issue
|
87,944
|
78,557
|
Accruals, deferred income and other liabilities
|
163,600
|
123,778
|
Current tax liabilities
|
685
|
698
|
Liabilities under insurance contracts
|
113,130
|
112,745
|
Provisions
|
1,900
|
2,566
|
Deferred tax liabilities
|
2,894
|
4,673
|
Subordinated liabilities
|
20,711
|
20,487
|
Total liabilities
|
2,788,730
|
2,751,162
|
Equity
| ||
Called up share capital
|
10,188
|
10,316
|
Share premium account
|
14,662
|
14,602
|
Other equity instruments
|
21,691
|
22,414
|
Other reserves
|
(8,576)
|
6,460
|
Retained earnings
|
150,417
|
144,458
|
Total shareholders' equity
|
188,382
|
198,250
|
Non-controlling interests
|
8,308
|
8,527
|
Total equity
|
196,690
|
206,777
|
Total liabilities and equity
|
2,985,420
|
2,957,939
|
Consolidated statement of cash flows
| |||
Half-year to
| |||
30 Jun
|
30 Jun
|
31 Dec
| |
2022
|
2021
|
2021
| |
$m
|
$m
|
$m
| |
Profit before tax
|
9,176
|
10,839
|
8,067
|
Adjustments for non-cash items:
| |||
Depreciation, amortisation and impairment
|
1,903
|
1,802
|
2,484
|
Net (gain)/loss from investing activities
|
174
|
(485)
|
(162)
|
Share of profits in associates and joint ventures
|
(1,449)
|
(1,656)
|
(1,390)
|
Gain on acquisition of subsidiary
|
(71)
|
-
|
-
|
Change in expected credit losses gross of recoveries and other credit impairment charges
|
1,246
|
(484)
|
(35)
|
Provisions including pensions
|
208
|
301
|
762
|
Share-based payment expense
|
177
|
254
|
213
|
Other non-cash items included in profit before tax
|
(866)
|
205
|
305
|
Change in operating assets
|
15,987
|
(3,811)
|
(232)
|
Change in operating liabilities
|
(27,501)
|
49,015
|
22,161
|
Elimination of exchange differences1
|
49,417
|
5,212
|
13,725
|
Dividends received from associates
|
60
|
10
|
798
|
Contributions paid to defined benefit plans
|
(102)
|
(342)
|
(167)
|
Tax paid
|
(1,264)
|
(997)
|
(2,080)
|
Net cash from operating activities
|
47,095
|
59,863
|
44,449
|
Purchase of financial investments
|
(271,382)
|
(263,198)
|
(229,844)
|
Proceeds from the sale and maturity of financial investments
|
248,983
|
298,596
|
222,594
|
Net cash flows from the purchase and sale of property, plant and equipment
|
(590)
|
(375)
|
(711)
|
Net cash flows from (purchase)/disposal of customer and loan portfolios
|
(3,756)
|
1,063
|
1,996
|
Net investment in intangible assets
|
(1,240)
|
(1,011)
|
(1,468)
|
Net cash flow on (acquisition)/disposal of subsidiaries, businesses, associates and joint ventures
|
(525)
|
(84)
|
(22)
|
Net cash from investing activities
|
(28,510)
|
34,991
|
(7,455)
|
Issue of ordinary share capital and other equity instruments
|
-
|
1,996
|
-
|
Cancellation of shares
|
(1,840)
|
-
|
(707)
|
Net sales/(purchases) of own shares for market-making and investment purposes
|
(443)
|
1
|
(1,387)
|
Purchase of non-controlling interest in subsidiary
|
(197)
|
-
|
-
|
Redemption of preference shares and other equity instruments
|
(723)
|
(3,450)
|
-
|
Subordinated loan capital issued
|
2,659
|
-
|
-
|
Subordinated loan capital repaid
|
(11)
|
(852)
|
(12)
|
Dividends paid to shareholders of the parent company and non-controlling interests
|
(4,497)
|
(4,121)
|
(2,262)
|
Net cash from financing activities
|
(5,052)
|
(6,426)
|
(4,368)
|
Net increase in cash and cash equivalents
|
13,533
|
88,428
|
32,626
|
Cash and cash equivalents at the beginning of the period
|
574,032
|
468,323
|
551,933
|
Exchange differences in respect of cash and cash equivalents
|
(40,243)
|
(4,818)
|
(10,527)
|
Cash and cash equivalents at the end of the period
|
547,322
|
551,933
|
574,032
|
Consolidated statement of changes in equity
| ||||||||||
Other reserves
| ||||||||||
Called up share
capital
and share premium
|
Other
equity
instru-ments
|
Retained
earnings
|
Financial assets at FVOCI reserve
|
Cash flowhedgingreserve
|
Foreign exchangereserve
|
Merger and other
reserves
|
Total share-holders' equity
|
Non-
controlling
interests
|
Total equity
| |
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
| |
At 1 Jan 2022
|
24,918
|
22,414
|
144,458
|
(634)
|
(197)
|
(22,769)
|
30,060
|
198,250
|
8,527
|
206,777
|
Profit for the period
|
-
|
-
|
8,915
|
-
|
-
|
-
|
-
|
8,915
|
300
|
9,215
|
Other comprehensive income (net of tax)
|
-
|
-
|
2,637
|
(4,723)
|
(2,035)
|
(8,414)
|
-
|
(12,535)
|
(164)
|
(12,699)
|
- debt instruments at fair value through other comprehensive income
|
-
|
-
|
-
|
(4,844)
|
-
|
-
|
-
|
(4,844)
|
(63)
|
(4,907)
|
- equity instruments designated at fair value through other comprehensive income
|
-
|
-
|
-
|
121
|
-
|
-
|
-
|
121
|
37
|
158
|
- cash flow hedges
|
-
|
-
|
-
|
-
|
(2,035)
|
-
|
-
|
(2,035)
|
(28)
|
(2,063)
|
- changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk
|
-
|
-
|
2,263
|
-
|
-
|
-
|
-
|
2,263
|
-
|
2,263
|
- remeasurement of defined benefit asset/liability
|
-
|
-
|
98
|
-
|
-
|
-
|
-
|
98
|
(3)
|
95
|
- share of other comprehensive income of associates and joint ventures
|
-
|
-
|
(141)
|
-
|
-
|
-
|
-
|
(141)
|
-
|
(141)
|
- effects of hyperinflation
|
-
|
-
|
417
|
-
|
-
|
-
|
-
|
417
|
-
|
417
|
- exchange differences
|
-
|
-
|
-
|
-
|
-
|
(8,414)
|
-
|
(8,414)
|
(107)
|
(8,521)
|
Total comprehensive income for the period
|
-
|
-
|
11,552
|
(4,723)
|
(2,035)
|
(8,414)
|
-
|
(3,620)
|
136
|
(3,484)
|
Shares issued under employee remuneration and share plans
|
65
|
-
|
(65)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Dividends to shareholders
|
-
|
-
|
(4,202)
|
-
|
-
|
-
|
-
|
(4,202)
|
(295)
|
(4,497)
|
Redemption of securities
|
-
|
(723)
|
-
|
-
|
-
|
-
|
-
|
(723)
|
-
|
(723)
|
Cost of share-based payment arrangements
|
-
|
-
|
177
|
-
|
-
|
-
|
-
|
177
|
-
|
177
|
Cancellation of shares4
|
(133)
|
-
|
(1,000)
|
-
|
-
|
-
|
133
|
(1,000)
|
-
|
(1,000)
|
Other movements
|
-
|
-
|
(503)
|
3
|
-
|
-
|
-
|
(500)
|
(60)
|
(560)
|
At 30 Jun 2022
|
24,850
|
21,691
|
150,417
|
(5,354)
|
(2,232)
|
(31,183)
|
30,193
|
188,382
|
8,308
|
196,690
|
At 1 Jan 2021
|
24,624
|
22,414
|
140,572
|
1,816
|
457
|
(20,375)
|
26,935
|
196,443
|
8,552
|
204,995
|
Profit for the period
|
-
|
-
|
7,949
|
-
|
-
|
-
|
-
|
7,949
|
473
|
8,422
|
Other comprehensive income (net of tax)
|
-
|
-
|
(337)
|
(1,629)
|
(234)
|
(464)
|
-
|
(2,664)
|
(61)
|
(2,725)
|
- debt instruments at fair value through other comprehensive income
|
-
|
-
|
-
|
(1,351)
|
-
|
-
|
-
|
(1,351)
|
(17)
|
(1,368)
|
- equity instruments designated at fair value through other comprehensive income
|
-
|
-
|
-
|
(278)
|
-
|
-
|
-
|
(278)
|
(70)
|
(348)
|
- cash flow hedges
|
-
|
-
|
-
|
-
|
(234)
|
-
|
-
|
(234)
|
(4)
|
(238)
|
- changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk
|
-
|
-
|
155
|
-
|
-
|
-
|
-
|
155
|
-
|
155
|
- remeasurement of defined benefit asset/liability
|
-
|
-
|
(762)
|
-
|
-
|
-
|
-
|
(762)
|
15
|
(747)
|
- share of other comprehensive income of associates and joint ventures
|
-
|
-
|
104
|
-
|
-
|
-
|
-
|
104
|
-
|
104
|
- effects of hyperinflation
|
-
|
-
|
166
|
-
|
-
|
-
|
-
|
166
|
-
|
166
|
- exchange differences
|
-
|
-
|
-
|
-
|
-
|
(464)
|
-
|
(464)
|
15
|
(449)
|
Total comprehensive income for the period
|
-
|
-
|
7,612
|
(1,629)
|
(234)
|
(464)
|
-
|
5,285
|
412
|
5,697
|
Shares issued under employee remuneration and share plans
|
352
|
-
|
(335)
|
-
|
-
|
-
|
-
|
17
|
-
|
17
|
Capital securities issued1
|
-
|
2,000
|
(4)
|
-
|
-
|
-
|
-
|
1,996
|
-
|
1,996
|
Dividends to shareholders
|
-
|
-
|
(3,732)
|
-
|
-
|
-
|
-
|
(3,732)
|
(389)
|
(4,121)
|
Redemption of securities2
|
-
|
(2,000)
|
-
|
-
|
-
|
-
|
-
|
(2,000)
|
-
|
(2,000)
|
Cost of share-based payment arrangements
|
-
|
-
|
254
|
-
|
-
|
-
|
-
|
254
|
-
|
254
|
Other movements
|
-
|
-
|
(48)
|
3
|
-
|
-
|
-
|
(45)
|
(29)
|
(74)
|
At 30 Jun 2021
|
24,976
|
22,414
|
144,319
|
190
|
223
|
(20,839)
|
26,935
|
198,218
|
8,546
|
206,764
|
Consolidated statement of changes in equity (continued)
| ||||||||||
Other reserves
| ||||||||||
Called up
share capital
and share premium
|
Other
equity
instru-
ments
|
Retained
earnings
|
Financial assets at FVOCI reserve
|
Cash
flow
hedging
reserve
|
Foreign exchange reserve
|
Merger and other reserves
|
Total
share-
holders'
equity
|
Non-
controlling
interests
|
Total
equity
| |
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
| |
At 1 Jul 2021
|
24,976
|
22,414
|
144,319
|
190
|
223
|
(20,839)
|
26,935
|
198,218
|
8,546
|
206,764
|
Profit for the period
|
-
|
-
|
5,968
|
-
|
-
|
-
|
-
|
5,968
|
303
|
6,271
|
Other comprehensive income
(net of tax)
|
-
|
-
|
998
|
(826)
|
(420)
|
(1,930)
|
-
|
(2,178)
|
(64)
|
(2,242)
|
- debt instruments at fair value through other comprehensive income
|
-
|
-
|
-
|
(754)
|
-
|
-
|
-
|
(754)
|
(17)
|
(771)
|
- equity instruments designated at fair value through other comprehensive income
|
-
|
-
|
-
|
(72)
|
-
|
-
|
-
|
(72)
|
(26)
|
(98)
|
- cash flow hedges
|
-
|
-
|
-
|
-
|
(420)
|
-
|
-
|
(420)
|
(6)
|
(426)
|
- changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk
|
-
|
-
|
376
|
-
|
-
|
-
|
-
|
376
|
-
|
376
|
- remeasurement of defined benefit asset/liability
|
-
|
-
|
474
|
-
|
-
|
-
|
-
|
474
|
(1)
|
473
|
- share of other comprehensive income of associates and joint ventures
|
-
|
-
|
(1)
|
-
|
-
|
-
|
-
|
(1)
|
-
|
(1)
|
- effects of hyperinflation
|
-
|
-
|
149
|
-
|
-
|
-
|
-
|
149
|
-
|
149
|
- exchange differences
|
-
|
-
|
-
|
-
|
-
|
(1,930)
|
-
|
(1,930)
|
(14)
|
(1,944)
|
Total comprehensive income for the period
|
-
|
-
|
6,966
|
(826)
|
(420)
|
(1,930)
|
-
|
3,790
|
239
|
4,029
|
Shares issued under employee remuneration and share plans
|
2
|
-
|
(1)
|
-
|
-
|
-
|
-
|
1
|
-
|
1
|
Dividends to shareholders
|
-
|
-
|
(2,058)
|
-
|
-
|
-
|
-
|
(2,058)
|
(204)
|
(2,262)
|
Transfers3
|
-
|
-
|
(3,065)
|
-
|
-
|
-
|
3,065
|
-
|
-
|
-
|
Cost of share-based payment arrangements
|
-
|
-
|
213
|
-
|
-
|
-
|
-
|
213
|
-
|
213
|
Cancellation of shares
|
(60)
|
-
|
(2,004)
|
-
|
-
|
-
|
60
|
(2,004)
|
-
|
(2,004)
|
Other movements
|
-
|
-
|
88
|
2
|
-
|
-
|
-
|
90
|
(54)
|
36
|
At 31 Dec 2021
|
24,918
|
22,414
|
144,458
|
(634)
|
(197)
|
(22,769)
|
30,060
|
198,250
|
8,527
|
206,777
|
1
|
Basis of preparation and significant accounting policies
|
2
|
Dividends
|
Dividends paid to shareholders of HSBC Holdings plc
| |||||||||
Half-year to
| |||||||||
30 Jun 2022
|
30 Jun 2021
|
31 Dec 2021
| |||||||
Per share
|
Total
|
Settled in scrip
|
Per share
|
Total
|
Settled in scrip
|
Per share
|
Total
|
Settled in scrip
| |
$
|
$m
|
$m
|
$
|
$m
|
$m
|
$
|
$m
|
$m
| |
Dividends paid on ordinary shares
| |||||||||
In respect of previous year:
| |||||||||
- interim dividend
|
-
|
-
|
-
|
0.15
|
3,059
|
-
|
-
|
-
|
-
|
- second interim dividend
|
0.18
|
3,576
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
In respect of current year:
| |||||||||
- interim dividend
|
-
|
-
|
-
|
-
|
-
|
-
|
0.07
|
1,421
|
-
|
Total
|
0.18
|
3,576
|
-
|
0.15
|
3,059
|
-
|
0.07
|
1,421
|
-
|
Total dividends on preference shares classified as equity (paid quarterly)1
|
-
|
-
|
4.99
|
7
|
-
|
-
| |||
Total coupons on capital securities classified as equity
|
626
|
666
|
637
| ||||||
Dividends to shareholders
|
4,202
|
3,732
|
2,058
|
3
|
Earnings per share
|
Profit attributable to ordinary shareholders of the parent company
| |||
Half-year to
| |||
30 Jun
|
30 Jun
|
31 Dec
| |
2022
|
2021
|
2021
| |
$m
|
$m
|
$m
| |
Profit attributable to shareholders of the parent company
|
8,915
|
7,949
|
5,968
|
Dividend payable on preference shares classified as equity
|
-
|
(7)
|
-
|
Coupon payable on capital securities classified as equity
|
(626)
|
(666)
|
(637)
|
Profit attributable to ordinary shareholders of the parent company
|
8,289
|
7,276
|
5,331
|
Basic and diluted earnings per share
| |||||||||
Half-year to
| |||||||||
30 Jun 2022
|
30 Jun 2021
|
31 Dec 2021
| |||||||
Profit
|
Number
of shares
|
Amount per share
|
Profit
|
Number
of shares
|
Amount per share
|
Profit
|
Number
of shares
|
Amount per share
| |
$m
|
(millions)
|
$
|
$m
|
(millions)
|
$
|
$m
|
(millions)
|
$
| |
Basic1
|
8,289
|
19,954
|
0.42
|
7,276
|
20,211
|
0.36
|
5,331
|
20,183
|
0.26
|
Effect of dilutive potential ordinary shares
|
130
|
97
|
103
| ||||||
Diluted1
|
8,289
|
20,084
|
0.41
|
7,276
|
20,308
|
0.36
|
5,331
|
20,286
|
0.26
|
4
|
Adjusted balance sheet reconciliation
|
At
| ||||
30 Jun 2022
|
31 Dec 2021
| |||
Reported and adjusted
|
Adjusted
|
Currency translation
|
Reported
| |
$m
|
$m
|
$m
|
$m
| |
Loans and advances to customers (net)
|
1,028,356
|
994,702
|
51,112
|
1,045,814
|
Interests in associates and joint ventures
|
29,446
|
28,560
|
1,049
|
29,609
|
Total external assets
|
2,985,420
|
2,812,349
|
145,590
|
2,957,939
|
Customer accounts
|
1,651,301
|
1,627,174
|
83,400
|
1,710,574
|
5
|
Reconciliation of reported and adjusted items
|
Half-year to
| |||
30 Jun
|
30 Jun
|
31 Dec
| |
2022
|
2021
|
2021
| |
$m
|
$m
|
$m
| |
Revenue1
| |||
Reported
|
25,236
|
25,551
|
24,001
|
Currency translation
|
(1,069)
|
(711)
| |
Significant items
|
454
|
252
|
287
|
- customer redress programmes
|
14
|
(18)
|
7
|
- disposals, acquisitions and investment in new businesses2
|
288
|
-
|
-
|
- fair value movements on financial instruments3
|
220
|
194
|
48
|
- restructuring and other related costs4
|
(68)
|
70
|
237
|
- currency translation on significant items
|
6
|
(5)
| |
Adjusted
|
25,690
|
24,734
|
23,577
|
ECL
| |||
Reported
|
(1,090)
|
719
|
209
|
Currency translation
|
(44)
|
(35)
| |
Adjusted
|
(1,090)
|
675
|
174
|
Operating expenses
| |||
Reported
|
(16,419)
|
(17,087)
|
(17,533)
|
Currency translation
|
749
|
510
| |
Significant items
|
1,043
|
818
|
1,576
|
- customer redress programmes
|
(6)
|
17
|
32
|
- impairment of goodwill and other intangibles
|
9
|
-
|
587
|
- restructuring and other related costs
|
1,040
|
848
|
988
|
- currency translation on significant items
|
(47)
|
(31)
| |
Adjusted
|
(15,376)
|
(15,520)
|
(15,447)
|
Share of profit in associates and joint ventures
| |||
Reported
|
1,449
|
1,656
|
1,390
|
Currency translation
|
(7)
|
(13)
| |
Adjusted
|
1,449
|
1,649
|
1,377
|
Profit before tax
| |||
Reported
|
9,176
|
10,839
|
8,067
|
Currency translation
|
(371)
|
(249)
| |
Significant items
|
1,497
|
1,070
|
1,863
|
- revenue
|
454
|
252
|
287
|
- operating expenses
|
1,043
|
818
|
1,576
|
Adjusted profit before tax
|
10,673
|
11,538
|
9,681
|
Reported tax (charge)/ credit
|
39
|
(2,417)
|
(1,796)
|
Currency translation
|
109
|
53
| |
Tax significant items
|
(2,001)
|
(147)
|
(167)
|
- tax charge/(credit) on significant items
|
(236)
|
(153)
|
(173)
|
- recognition of losses on HSBC Holdings
|
(1,765)
|
-
|
-
|
- currency translation on significant items
|
6
|
6
| |
Adjusted profit after tax
|
8,711
|
9,083
|
7,771
|
6
|
Contingent liabilities, contractual commitments and guarantees
|
At
| ||
30 Jun
|
31 Dec
| |
2022
|
2021
| |
$m
|
$m
| |
Guarantees and contingent liabilities:
| ||
- financial guarantees
|
17,586
|
27,795
|
- performance and other guarantees
|
84,103
|
85,534
|
- other contingent liabilities
|
816
|
858
|
At the end of the period
|
102,505
|
114,187
|
Commitments:1
| ||
- documentary credits and short-term trade-related transactions
|
9,972
|
8,827
|
- forward asset purchases and forward deposits placed
|
76,144
|
47,184
|
- standby facilities, credit lines and other commitments to lend
|
740,313
|
759,463
|
At the end of the period
|
826,429
|
815,474
|
7
|
Legal proceedings and regulatory matters
|
8
|
Business acquisitions and disposals
|
9
|
Events after the balance sheet date
|
10
|
Capital structure
|
Capital ratios
| ||
At
| ||
30 Jun
|
31 Dec
| |
2022
|
2021
| |
%
|
%
| |
Transitional basis
| ||
Common equity tier 1 ratio
|
13.6
|
15.8
|
Tier 1 ratio
|
16.1
|
18.6
|
Total capital ratio
|
18.6
|
21.2
|
End point basis
| ||
Common equity tier 1 ratio
|
13.6
|
15.8
|
Tier 1 ratio
|
16.1
|
18.5
|
Total capital ratio
|
17.7
|
20.0
|
Total regulatory capital and risk-weighted assets
| ||
At
| ||
30 Jun
|
31 Dec
| |
2022
|
2021
| |
$m
|
$m
| |
Transitional basis
| ||
Common equity tier 1 capital
|
115,780
|
132,565
|
Additional tier 1 capital
|
21,734
|
23,727
|
Tier 2 capital
|
21,005
|
21,494
|
Total regulatory capital
|
158,519
|
177,786
|
Risk-weighted assets
|
851,743
|
838,263
|
End point basis
| ||
Common equity tier 1 capital
|
115,780
|
132,565
|
Additional tier 1 capital
|
21,734
|
22,421
|
Tier 2 capital
|
13,049
|
12,475
|
Total regulatory capital
|
150,563
|
167,461
|
Risk-weighted assets
|
851,743
|
838,263
|
Leverage ratio1
| ||
At
| ||
30 Jun
|
31 Dec
| |
2022
|
2021
| |
$bn
|
$bn
| |
Tier 1 capital
|
137.5
|
155.0
|
Total leverage ratio exposure
|
2,484.2
|
2,962.7
|
%
|
%
| |
Leverage ratio
|
5.5
|
5.2
|
11
|
Statutory accounts
|
12
|
Dealings in HSBC Holdings plc listed securities
|
13
|
Earnings release and final results
|
14
|
Corporate governance
|
15
|
Interim Report 2022
|
16
|
Cautionary statement regarding forward-looking statements
|
17
|
Use of alternative performance measures
|
18
|
Certain defined terms
|
19
|
Investor Relations / Media Relations contacts
|
Investor Relations
|
Media Relations
|
UK - Richard O'Connor
|
UK - Gillian James
|
Telephone: +44 (0)20 7991 6590
|
Telephone: +44 (0)20 7992 0516
|
Email: investorrelations@hsbc.com
|
Email: pressoffice@hsbc.com
|
Hong Kong - Mark Phin
|
UK - Heidi Ashley
|
Telephone: +852 2822 4908
|
Telephone: +44 (0)20 7992 2045
|
Email: investorrelations@hsbc.com.hk
|
Email: pressoffice@hsbc.com
|
Hong Kong - Jessica Lee
| |
Telephone: +852 2822 1268
| |
Email: aspmediarelations@hsbc.com.hk
|
20
|
Registered Office and Group Head Office
|
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HSBC Holdings plc published this content on 01 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 August 2022 13:04:03 UTC.