|
Half-year to
|
|
|
30 Jun
|
30 Jun
|
|
2023
|
2022
|
Reported results
|
|
|
Profit before tax ($m)
|
21,657
|
8,780
|
Profit after tax ($m)
|
18,071
|
8,931
|
Cost efficiency ratio (%)
|
41.9
|
65.7
|
Net interest margin (%)
|
1.70
|
1.24
|
Basic earnings per share ($)
|
0.86
|
0.40
|
Diluted earnings per share ($)
|
0.86
|
0.40
|
Dividend per ordinary share (in respect of the period)
($)
|
0.20
|
0.09
|
Alternative performance measures
|
|
|
Constant currency profit before tax ($m)
|
21,657
|
8,404
|
Constant currency cost efficiency ratio (%)
|
41.9
|
65.7
|
Expected
credit losses and other credit impairment charges (annualised) as %
of average gross loans and advances to customers (%)
|
0.28
|
0.21
|
Expected credit losses and other credit impairment charges ('ECL')
(annualised) as % of average gross loans and advances to customers,
including held for sale (%)
|
0.26
|
0.21
|
Basic
earnings per share excluding material notable items ($)1
|
0.70
|
0.29
|
Return on average ordinary shareholders' equity (annualised)
(%)
|
20.8
|
9.9
|
Return on average tangible equity (annualised) (%)
|
22.4
|
10.6
|
Return
on average tangible equity excluding strategic transactions
(annualised) (%)2
|
18.5
|
10.6
|
Target
basis operating expenses ($m)3
|
15,319
|
14,683
|
|
|
|
|
At
|
|
|
30 Jun
|
31 Dec
|
|
2023
|
2022
|
Balance sheet
|
|
|
Total assets ($m)
|
3,041,476
|
2,949,286
|
Net loans and advances to customers ($m)
|
959,558
|
923,561
|
Customer accounts ($m)
|
1,595,769
|
1,570,303
|
Average interest-earning assets, year to date ($m)
|
2,162,662
|
2,143,754
|
Loans and advances to customers as % of customer accounts
(%)
|
60.1
|
58.8
|
Total shareholders' equity ($m)
|
184,170
|
177,833
|
Tangible ordinary shareholders' equity ($m)
|
153,234
|
146,927
|
Net asset value per ordinary share at period end ($)
|
8.44
|
8.01
|
Tangible net asset value per ordinary share at period end
($)
|
7.84
|
7.44
|
Capital, leverage and liquidity
|
|
|
Common
equity tier 1 capital ratio (%)4,5
|
14.7
|
14.2
|
Risk-weighted
assets ($m)4,5
|
859,545
|
839,720
|
Total
capital ratio (%)4,5
|
19.8
|
19.3
|
Leverage
ratio (%)4,5
|
5.8
|
5.8
|
High-quality
liquid assets (liquidity value, average) ($bn)5,6
|
631
|
647
|
Liquidity
coverage ratio (average) (%)5,6
|
132
|
132
|
Share count
|
|
|
Period end basic number of $0.50 ordinary shares outstanding
(millions)
|
19,534
|
19,739
|
Period end basic number of $0.50 ordinary shares outstanding and
dilutive potential ordinary shares (millions)
|
19,679
|
19,876
|
Average basic number of $0.50 ordinary shares outstanding
(millions)
|
19,693
|
19,849
|
|
|
|
|
Half-year to
|
|
|
30 Jun
|
30 Jun
|
|
2023
|
2022
|
|
$m
|
$m
|
Reported
|
|
|
Revenue1,2,3
|
36,876
|
24,545
|
Change in expected credit losses and other credit impairment
charges
|
(1,345)
|
(1,087)
|
Operating expenses
|
(15,457)
|
(16,127)
|
Share of profit in associates and joint ventures
|
1,583
|
1,449
|
Profit before tax
|
21,657
|
8,780
|
Tax (charge)/credit
|
(3,586)
|
151
|
Profit after tax
|
18,071
|
8,931
|
Constant currency4
|
|
|
Revenue1,2,3
|
36,876
|
23,647
|
Change in expected credit losses and other credit impairment
charges
|
(1,345)
|
(1,074)
|
Operating expenses
|
(15,457)
|
(15,532)
|
Share of profit in associates and joint ventures
|
1,583
|
1,363
|
Profit before tax
|
21,657
|
8,404
|
Tax (charge)/credit
|
(3,586)
|
227
|
Profit after tax
|
18,071
|
8,631
|
|
|
|
Notable items
|
|
|
Revenue
|
|
|
Disposals,
acquisitions and related costs2,3
|
3,321
|
(288)
|
Fair
value movements on financial instruments5
|
15
|
(371)
|
Restructuring
and other related costs6
|
-
|
68
|
Operating expenses
|
|
|
Disposals, acquisitions and related costs
|
(118)
|
-
|
Restructuring
and other related costs7
|
47
|
(1,040)
|
Tax
|
|
|
Tax (charge)/credit on notable items
|
(500)
|
242
|
Recognition of losses
|
-
|
2,082
|
Uncertain tax positions
|
427
|
(317)
|
|
Half-year to
|
|
|
30 Jun
|
30 Jun
|
|
2023
|
2022
|
|
$m
|
$m
|
For the period
|
|
|
Profit before tax
|
21,657
|
8,780
|
Profit attributable to:
|
|
|
- ordinary shareholders of the parent company
|
16,966
|
7,966
|
Dividends
on ordinary shares1
|
6,591
|
3,576
|
At the period end
|
|
|
Total shareholders' equity
|
184,170
|
178,975
|
Total regulatory capital
|
170,021
|
158,519
|
Customer accounts
|
1,595,769
|
1,651,301
|
Total assets
|
3,041,476
|
2,970,481
|
Risk-weighted assets
|
859,545
|
851,743
|
Per ordinary share
|
$
|
$
|
Basic earnings
|
0.86
|
0.40
|
Dividend
per ordinary share (paid in the period)1
|
0.33
|
0.18
|
Net
asset value2
|
8.44
|
7.94
|
Constant
currency profit before tax
|
||||
|
Half-year to
|
|||
|
30 Jun 2023
|
30 Jun 2022
|
||
|
$m
|
%
|
$m
|
%
|
Wealth and Personal Banking
|
8,592
|
39.7
|
2,487
|
29.6
|
Commercial
Banking1
|
7,939
|
36.7
|
3,432
|
40.8
|
Global
Banking and Markets1
|
3,580
|
16.5
|
2,692
|
32.0
|
Corporate Centre
|
1,546
|
7.1
|
(207)
|
(2.4)
|
Profit before tax
|
21,657
|
100.0
|
8,404
|
100.0
|
Reported
profit/(loss) before tax
|
||||
|
Half-year to
|
|||
|
30 Jun 2023
|
30 Jun 2022
|
||
|
$m
|
%
|
$m
|
%
|
HSBC UK Bank plc
|
4,791
|
22.1
|
2,270
|
25.9
|
HSBC Bank plc
|
3,498
|
16.2
|
252
|
2.9
|
The Hongkong and Shanghai Banking Corporation Limited
|
10,917
|
50.4
|
5,734
|
65.3
|
HSBC Bank Middle East Limited
|
673
|
3.1
|
378
|
4.3
|
HSBC North America Holdings Inc.
|
701
|
3.2
|
424
|
4.8
|
HSBC Bank Canada
|
475
|
2.2
|
385
|
4.4
|
Grupo Financiero HSBC, S.A. de C.V.
|
436
|
2.0
|
239
|
2.7
|
Other
trading entities1
|
1,282
|
5.9
|
532
|
6.1
|
- of which: other Middle East entities (including Oman,
Türkiye, Egypt and Saudi Arabia)
|
420
|
1.9
|
264
|
3.0
|
- of which: Saudi Awwal Bank
|
272
|
1.3
|
117
|
1.3
|
Holding companies, shared service centres and intra-Group
eliminations
|
(1,116)
|
(5.1)
|
(1,434)
|
(16.4)
|
Profit before tax
|
21,657
|
100.0
|
8,780
|
100.0
|
HSBC
constant currency profit before tax and balance sheet
data
|
|||||
|
Half-year to 30 Jun 2023
|
||||
|
Wealth and Personal Banking
|
Commercial
Banking4
|
Global
Banking and
Markets4
|
Corporate Centre
|
Total
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
Net operating income/(expense) before change in expected credit
losses and other credit impairment charges2
|
16,200
|
12,216
|
8,501
|
(41)
|
36,876
|
- external
|
12,416
|
12,897
|
13,939
|
(2,376)
|
36,876
|
- inter-segment
|
3,784
|
(681)
|
(5,438)
|
2,335
|
-
|
- of which: net interest income/(expense)5
|
10,299
|
8,375
|
3,546
|
(3,956)
|
18,264
|
Change in expected credit losses and other credit impairment
(charges)/recoveries
|
(502)
|
(704)
|
(136)
|
(3)
|
(1,345)
|
Net operating income/(expense)
|
15,698
|
11,512
|
8,365
|
(44)
|
35,531
|
Total operating expenses
|
(7,141)
|
(3,572)
|
(4,785)
|
41
|
(15,457)
|
Operating profit/(loss)
|
8,557
|
7,940
|
3,580
|
(3)
|
20,074
|
Share of profit in associates and joint ventures
|
35
|
(1)
|
-
|
1,549
|
1,583
|
Constant currency profit before tax
|
8,592
|
7,939
|
3,580
|
1,546
|
21,657
|
|
%
|
%
|
%
|
%
|
%
|
Share of HSBC's constant currency profit before tax
|
39.7
|
36.7
|
16.5
|
7.1
|
100.0
|
Constant currency cost efficiency ratio
|
44.1
|
29.2
|
56.3
|
100.0
|
41.9
|
Constant currency balance sheet data
|
$m
|
$m
|
$m
|
$m
|
$m
|
Loans and advances to customers (net)
|
463,836
|
319,246
|
176,182
|
294
|
959,558
|
Interests in associates and joint ventures
|
555
|
24
|
107
|
28,860
|
29,546
|
Total external assets
|
900,370
|
654,474
|
1,342,110
|
144,522
|
3,041,476
|
Customer accounts
|
809,864
|
472,146
|
313,126
|
633
|
1,595,769
|
Constant
currency risk-weighted assets3
|
186,564
|
353,805
|
227,024
|
92,152
|
859,545
|
|
|
|
|
|
|
|
Half-year
to 30 Jun 20221
|
||||
Net
operating income before change in expected credit losses and other
credit impairment charges2
|
10,058
|
7,055
|
7,459
|
(925)
|
23,647
|
- external
|
9,665
|
7,199
|
8,357
|
(1,574)
|
23,647
|
- inter-segment
|
393
|
(144)
|
(898)
|
649
|
-
|
- of which: net interest income/(expense)5
|
6,493
|
4,817
|
2,009
|
(473)
|
12,846
|
Change in expected credit losses and other credit impairment
charges
|
(584)
|
(278)
|
(210)
|
(2)
|
(1,074)
|
Net operating income/(expense)
|
9,474
|
6,777
|
7,249
|
(927)
|
22,573
|
Total operating expenses
|
(6,995)
|
(3,345)
|
(4,557)
|
(635)
|
(15,532)
|
Operating profit/(loss)
|
2,479
|
3,432
|
2,692
|
(1,562)
|
7,041
|
Share of profit in associates and joint ventures
|
8
|
-
|
-
|
1,355
|
1,363
|
Constant currency profit/(loss) before tax
|
2,487
|
3,432
|
2,692
|
(207)
|
8,404
|
|
%
|
%
|
%
|
%
|
%
|
Share of HSBC's constant currency profit before tax
|
29.6
|
40.8
|
32.0
|
(2.4)
|
100.0
|
Constant currency cost efficiency ratio
|
69.5
|
47.4
|
61.1
|
(68.6)
|
65.7
|
Constant currency balance sheet data
|
$m
|
$m
|
$m
|
$m
|
$m
|
Loans and advances to customers (net)
|
482,962
|
354,273
|
200,082
|
557
|
1,037,874
|
Interests in associates and joint ventures
|
487
|
31
|
104
|
27,468
|
28,090
|
Total external assets
|
884,333
|
628,040
|
1,330,747
|
167,390
|
3,010,510
|
Customer accounts
|
846,974
|
491,115
|
332,473
|
589
|
1,671,151
|
Constant
currency risk-weighted assets3
|
187,357
|
347,619
|
232,158
|
82,424
|
849,558
|
Consolidated
income statement
|
||
|
Half-year
to1
|
|
|
30 Jun
|
30 Jun
|
|
2023
|
2022
|
|
$m
|
$m
|
Net interest income
|
18,264
|
13,385
|
- interest income
|
46,955
|
19,788
|
- interest expense
|
(28,691)
|
(6,403)
|
Net fee income
|
6,085
|
6,228
|
- fee income
|
7,947
|
7,913
|
- fee expense
|
(1,862)
|
(1,685)
|
Net income from financial instruments held for trading or managed
on a fair value basis
|
8,112
|
4,856
|
Net income/(expense) from assets and liabilities of insurance
businesses, including related derivatives, measured at fair value
through profit or loss
|
4,304
|
(11,849)
|
Insurance finance income/(expense)
|
(4,234)
|
11,773
|
Insurance service result
|
524
|
370
|
- insurance revenue
|
1,104
|
980
|
- insurance service expense
|
(580)
|
(610)
|
Gain on
acquisitions2
|
1,507
|
-
|
Reversal
of impairment loss relating to the planned sale of our retail
banking operations in France3
|
2,130
|
-
|
Other operating income
|
184
|
(218)
|
Net operating income before change in expected credit losses and
other credit impairment charges4
|
36,876
|
24,545
|
Change in expected credit losses and other credit impairment
charges
|
(1,345)
|
(1,087)
|
Net operating income
|
35,531
|
23,458
|
Employee compensation and benefits
|
(8,954)
|
(8,896)
|
General and administrative expenses
|
(4,912)
|
(5,337)
|
Depreciation and impairment of property, plant and equipment and
right-of-use assets
|
(782)
|
(1,072)
|
Amortisation and impairment of intangible assets
|
(809)
|
(822)
|
Total operating expenses
|
(15,457)
|
(16,127)
|
Operating profit
|
20,074
|
7,331
|
Share of profit in associates and joint ventures
|
1,583
|
1,449
|
Profit before tax
|
21,657
|
8,780
|
Tax (charge)/credit
|
(3,586)
|
151
|
Profit for the period
|
18,071
|
8,931
|
Attributable to:
|
|
|
- ordinary shareholders of the parent company
|
16,966
|
7,966
|
- other equity holders
|
542
|
626
|
- non-controlling interests
|
563
|
339
|
Profit for the period
|
18,071
|
8,931
|
|
$
|
$
|
Basic earnings per ordinary share
|
0.86
|
0.40
|
Diluted earnings per ordinary share
|
0.86
|
0.40
|
|
|
|
Consolidated
statement of comprehensive income
|
||
|
Half-year
to1
|
|
|
30 Jun
|
30 Jun
|
|
2023
|
2022
|
|
$m
|
$m
|
Profit for the period
|
18,071
|
8,931
|
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
|
549
|
(6,246)
|
- fair value gains/(losses)
|
804
|
(8,120)
|
- fair value gains transferred to the income statement on
disposal
|
(63)
|
(52)
|
- expected credit (recoveries)/losses recognised in the
income statement
|
(3)
|
17
|
- income taxes
|
(189)
|
1,909
|
Cash flow hedges
|
(1,062)
|
(2,063)
|
- fair value losses
|
(1,700)
|
(1,646)
|
- fair value (gains)/losses reclassified to the income
statement
|
227
|
(1,127)
|
- income taxes and other movements
|
411
|
710
|
Share of other comprehensive income/(expense) of associates and
joint ventures
|
101
|
(142)
|
- share for the period
|
101
|
(142)
|
Net
finance income/(expense) from insurance contracts2
|
(101)
|
1,360
|
- before income taxes
|
(136)
|
1,833
|
- income taxes
|
35
|
(473)
|
Exchange differences
|
(347)
|
(8,382)
|
Items that will not be reclassified subsequently to profit or
loss:
|
|
|
Fair
value gains on property revaluation
|
1
|
-
|
Remeasurement of defined benefit asset/(liability)
|
(112)
|
95
|
- before income taxes
|
(105)
|
(132)
|
- income taxes
|
(7)
|
227
|
Changes in fair value of financial liabilities designated at fair
value upon initial recognition arising from changes in own credit
risk
|
(653)
|
2,263
|
- before income taxes
|
(867)
|
3,030
|
- income taxes
|
214
|
(767)
|
Equity instruments designated at fair value through other
comprehensive income
|
7
|
158
|
- fair value gains
|
7
|
158
|
Effects of hyperinflation
|
578
|
428
|
Other comprehensive expense for the period, net of tax
|
(1,039)
|
(12,529)
|
Total comprehensive income/(expense) for the period
|
17,032
|
(3,598)
|
Attributable to:
|
|
|
- ordinary shareholders of the parent company
|
15,986
|
(4,405)
|
- other equity holders
|
542
|
626
|
- non-controlling interests
|
504
|
181
|
Total comprehensive income/(expense) for the period
|
17,032
|
(3,598)
|
Consolidated
balance sheet
|
||
|
At1
|
|
|
30 Jun
|
31 Dec
|
|
2023
|
2022
|
|
$m
|
$m
|
Assets
|
|
|
Cash and balances at central banks
|
307,733
|
327,002
|
Items in the course of collection from other banks
|
10,649
|
7,297
|
Hong Kong Government certificates of indebtedness
|
42,407
|
43,787
|
Trading assets
|
255,387
|
218,093
|
Financial assets designated and otherwise mandatorily measured at
fair value through profit or loss
|
104,303
|
100,101
|
Derivatives
|
272,595
|
284,159
|
Loans and advances to banks
|
100,921
|
104,475
|
Loans and advances to customers
|
959,558
|
923,561
|
Reverse
repurchase agreements - non-trading
|
258,056
|
253,754
|
Financial investments
|
407,933
|
364,726
|
Assets held for sale
|
95,480
|
115,919
|
Prepayments, accrued income and other assets
|
175,473
|
156,149
|
Current tax assets
|
1,262
|
1,230
|
Interests in associates and joint ventures
|
29,546
|
29,254
|
Goodwill and intangible assets
|
11,925
|
11,419
|
Deferred tax assets
|
8,248
|
8,360
|
Total assets
|
3,041,476
|
2,949,286
|
Liabilities and equity
|
|
|
Liabilities
|
|
|
Hong Kong currency notes in circulation
|
42,407
|
43,787
|
Deposits by banks
|
68,709
|
66,722
|
Customer accounts
|
1,595,769
|
1,570,303
|
Repurchase
agreements - non-trading
|
170,110
|
127,747
|
Items in the course of transmission to other banks
|
10,776
|
7,864
|
Trading liabilities
|
81,228
|
72,353
|
Financial liabilities designated at fair value
|
139,618
|
127,321
|
Derivatives
|
269,560
|
285,762
|
Debt securities in issue
|
85,471
|
78,149
|
Liabilities of disposal groups held for sale
|
87,241
|
114,597
|
Accruals, deferred income and other liabilities
|
155,275
|
134,313
|
Current tax liabilities
|
1,921
|
1,135
|
Insurance contract liabilities
|
115,756
|
108,816
|
Provisions
|
1,722
|
1,958
|
Deferred tax liabilities
|
976
|
972
|
Subordinated liabilities
|
23,286
|
22,290
|
Total liabilities
|
2,849,825
|
2,764,089
|
Equity
|
|
|
Called up share capital
|
10,073
|
10,147
|
Share premium account
|
14,737
|
14,664
|
Other equity instruments
|
19,392
|
19,746
|
Other reserves
|
(9,935)
|
(9,133)
|
Retained earnings
|
149,903
|
142,409
|
Total shareholders' equity
|
184,170
|
177,833
|
Non-controlling interests
|
7,481
|
7,364
|
Total equity
|
191,651
|
185,197
|
Total liabilities and equity
|
3,041,476
|
2,949,286
|
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
|
Cashflowhedgingreserve
|
Foreignexchangereserve
|
Merger and other
reserves
|
Insurance
finance
reserve1
|
Total share-holders' equity
|
Non-controllinginterests
|
Total equity
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
At 1 Jan 2023
|
24,811
|
19,746
|
142,409
|
(7,038)
|
(3,808)
|
(32,575)
|
33,209
|
1,079
|
177,833
|
7,364
|
185,197
|
Profit for the period
|
-
|
-
|
17,508
|
-
|
-
|
-
|
-
|
-
|
17,508
|
563
|
18,071
|
Other comprehensive income (net of tax)
|
-
|
-
|
(92)
|
560
|
(1,077)
|
(271)
|
1
|
(101)
|
(980)
|
(59)
|
(1,039)
|
-
debt instruments at fair value through other comprehensive
income
|
-
|
-
|
-
|
546
|
-
|
-
|
-
|
-
|
546
|
3
|
549
|
-
equity instruments designated at fair value through other
comprehensive income
|
-
|
-
|
-
|
14
|
-
|
-
|
-
|
-
|
14
|
(7)
|
7
|
- cash flow hedges
|
-
|
-
|
-
|
-
|
(1,077)
|
-
|
-
|
-
|
(1,077)
|
15
|
(1,062)
|
-
changes in fair value of financial liabilities designated at fair
value upon initial recognition arising from changes in own credit
risk
|
-
|
-
|
(654)
|
-
|
-
|
-
|
-
|
-
|
(654)
|
1
|
(653)
|
-
property revaluation
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
-
|
1
|
-
|
1
|
-
remeasurement of defined benefit asset/liability
|
-
|
-
|
(117)
|
-
|
-
|
-
|
-
|
-
|
(117)
|
5
|
(112)
|
-
share of other comprehensive income of associates and joint
ventures
|
-
|
-
|
101
|
-
|
-
|
-
|
-
|
-
|
101
|
-
|
101
|
-
effects of hyperinflation
|
-
|
-
|
578
|
-
|
-
|
-
|
-
|
-
|
578
|
-
|
578
|
-
insurance finance income/
(expense) recognised in other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(101)
|
(101)
|
-
|
(101)
|
- exchange differences
|
-
|
-
|
-
|
-
|
-
|
(271)
|
-
|
-
|
(271)
|
(76)
|
(347)
|
Total comprehensive income for the period
|
-
|
-
|
17,416
|
560
|
(1,077)
|
(271)
|
1
|
(101)
|
16,528
|
504
|
17,032
|
Shares issued under employee remuneration and
share plans
|
78
|
-
|
(78)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Capital
securities issued2
|
-
|
1,996
|
-
|
-
|
-
|
-
|
-
|
-
|
1,996
|
-
|
1,996
|
Dividends to shareholders
|
-
|
-
|
(7,133)
|
-
|
-
|
-
|
-
|
-
|
(7,133)
|
(375)
|
(7,508)
|
Redemption
of securities3
|
-
|
(2,350)
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,350)
|
-
|
(2,350)
|
Cost of share-based payment arrangements
|
-
|
-
|
228
|
-
|
-
|
-
|
-
|
-
|
228
|
-
|
228
|
Share
buy-back4
|
-
|
-
|
(2,007)
|
-
|
-
|
-
|
-
|
-
|
(2,007)
|
-
|
(2,007)
|
Cancellation of shares
|
(79)
|
-
|
-
|
-
|
-
|
-
|
79
|
-
|
-
|
-
|
-
|
Other
movements5
|
-
|
-
|
(932)
|
6
|
-
|
-
|
1
|
-
|
(925)
|
(12)
|
(937)
|
At 30 Jun 2023
|
24,810
|
19,392
|
149,903
|
(6,472)
|
(4,885)
|
(32,846)
|
33,290
|
978
|
184,170
|
7,481
|
191,651
|
|
|
|||||||||||
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
|
Insurance
finance
reserve1
|
Totalshare-holders'equity
|
Non-controllinginterests
|
Totalequity
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
At 31 Dec 2021 (IFRS 4)
|
24,918
|
22,414
|
144,458
|
(634)
|
(197)
|
(22,769)
|
30,060
|
-
|
198,250
|
8,527
|
206,777
|
Impact
on transition to IFRS 176
|
-
|
-
|
(9,222)
|
683
|
-
|
-
|
-
|
(696)
|
(9,235)
|
(1,224)
|
(10,459)
|
At 1 Jan 2022
|
24,918
|
22,414
|
135,236
|
49
|
(197)
|
(22,769)
|
30,060
|
(696)
|
189,015
|
7,303
|
196,318
|
Profit for the period
|
-
|
-
|
8,592
|
-
|
-
|
-
|
-
|
-
|
8,592
|
339
|
8,931
|
Other comprehensive income (net of tax)
|
-
|
-
|
2,647
|
(6,062)
|
(2,035)
|
(8,282)
|
-
|
1,360
|
(12,372)
|
(157)
|
(12,529)
|
-
debt instruments at fair value through other comprehensive
income
|
-
|
-
|
-
|
(6,183)
|
-
|
-
|
-
|
-
|
(6,183)
|
(63)
|
(6,246)
|
-
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
|
-
|
-
|
(142)
|
-
|
-
|
-
|
-
|
-
|
(142)
|
-
|
(142)
|
-
effects of hyperinflation
|
-
|
-
|
428
|
-
|
-
|
-
|
-
|
-
|
428
|
-
|
428
|
-
insurance finance income/ (expense) recognised in other
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,360
|
1,360
|
-
|
1,360
|
- exchange differences
|
-
|
-
|
-
|
-
|
-
|
(8,282)
|
-
|
-
|
(8,282)
|
(100)
|
(8,382)
|
Total comprehensive income for the period
|
-
|
-
|
11,240
|
(6,062)
|
(2,035)
|
(8,282)
|
-
|
1,360
|
(3,779)
|
181
|
(3,598)
|
Shares issued under employee remuneration and
share plans
|
65
|
-
|
(65)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Dividends to shareholders
|
-
|
-
|
(4,202)
|
-
|
-
|
-
|
-
|
-
|
(4,202)
|
(295)
|
(4,497)
|
Redemption
of securities3
|
-
|
(723)
|
-
|
-
|
-
|
-
|
-
|
-
|
(723)
|
-
|
(723)
|
Cost of share-based payment arrangements
|
-
|
-
|
177
|
-
|
-
|
-
|
-
|
-
|
177
|
-
|
177
|
Share
buy-back4
|
-
|
-
|
(1,000)
|
-
|
-
|
-
|
-
|
-
|
(1,000)
|
-
|
(1,000)
|
Cancellation of shares
|
(133)
|
-
|
-
|
-
|
-
|
-
|
133
|
-
|
-
|
-
|
-
|
Other movements
|
-
|
-
|
(525)
|
2
|
-
|
-
|
11
|
-
|
(512)
|
(60)
|
(572)
|
At 30 Jun 2022
|
24,850
|
21,691
|
140,860
|
(6,011)
|
(2,232)
|
(31,051)
|
30,204
|
664
|
178,975
|
7,130
|
186,105
|
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
|
Insurance
finance
reserve1
|
Totalshare-holders'equity
|
Non-controllinginterests
|
Totalequity
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
At 1 Jul 2022
|
24,850
|
21,691
|
140,860
|
(6,011)
|
(2,232)
|
(31,051)
|
30,204
|
664
|
178,975
|
7,130
|
186,105
|
Profit for the period
|
-
|
-
|
6,967
|
-
|
-
|
-
|
-
|
-
|
6,967
|
351
|
7,318
|
Other comprehensive income (net of tax)
|
-
|
-
|
(1,244)
|
(1,027)
|
(1,578)
|
(1,524)
|
174
|
415
|
(4,784)
|
71
|
(4,713)
|
-
debt instruments at fair value through other comprehensive
income
|
-
|
-
|
-
|
(998)
|
-
|
-
|
-
|
-
|
(998)
|
12
|
(986)
|
-
equity instruments designated at fair value through other
comprehensive income
|
-
|
-
|
-
|
(29)
|
-
|
-
|
-
|
-
|
(29)
|
(22)
|
(51)
|
-
cash flow hedges
|
-
|
-
|
-
|
-
|
(1,578)
|
-
|
-
|
-
|
(1,578)
|
(14)
|
(1,592)
|
-
changes in fair value of financial liabilities designated at fair
value upon initial recognition arising from changes in own credit
risk
|
-
|
-
|
(341)
|
-
|
-
|
-
|
-
|
-
|
(341)
|
-
|
(341)
|
-
property revaluation
|
-
|
-
|
-
|
-
|
-
|
-
|
174
|
-
|
174
|
106
|
280
|
-
remeasurement of defined benefit asset/liability
|
-
|
-
|
(1,127)
|
-
|
-
|
-
|
-
|
-
|
(1,127)
|
1
|
(1,126)
|
-
share of other comprehensive income of associates and joint
ventures
|
-
|
-
|
(225)
|
-
|
-
|
-
|
-
|
-
|
(225)
|
-
|
(225)
|
-
effects of hyperinflation
|
-
|
-
|
449
|
-
|
-
|
-
|
-
|
-
|
449
|
-
|
449
|
-
insurance finance income/ (expense) recognised in other
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
415
|
415
|
-
|
415
|
- exchange differences
|
-
|
-
|
-
|
-
|
-
|
(1,524)
|
-
|
-
|
(1,524)
|
(12)
|
(1,536)
|
Total comprehensive income for the period
|
-
|
-
|
5,723
|
(1,027)
|
(1,578)
|
(1,524)
|
174
|
415
|
2,183
|
423
|
2,606
|
Shares issued under employee remuneration and
share plans
|
2
|
-
|
(2)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Dividends to shareholders
|
-
|
-
|
(2,342)
|
-
|
-
|
-
|
-
|
-
|
(2,342)
|
(131)
|
(2,473)
|
Redemption
of securities3
|
-
|
(1,945)
|
402
|
-
|
-
|
-
|
-
|
-
|
(1,543)
|
-
|
(1,543)
|
Cost of share-based payment arrangements
|
-
|
-
|
223
|
-
|
-
|
-
|
-
|
-
|
223
|
-
|
223
|
Transfers7
|
-
|
-
|
(2,499)
|
-
|
-
|
-
|
2,499
|
-
|
-
|
-
|
-
|
Cancellation
of shares4
|
(41)
|
-
|
-
|
-
|
-
|
-
|
41
|
-
|
-
|
-
|
-
|
Other movements
|
-
|
-
|
44
|
-
|
2
|
-
|
291
|
-
|
337
|
(57)
|
280
|
At 31 Dec 2022
|
24,811
|
19,746
|
142,409
|
(7,038)
|
(3,808)
|
(32,575)
|
33,209
|
1,079
|
177,833
|
7,364
|
185,197
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
statement of cash flows
|
||
|
Half-year
to1
|
|
|
30 Jun
|
30 Jun
|
|
2023
|
2022
|
|
$m
|
$m
|
Profit before tax
|
21,657
|
8,780
|
Adjustments for non-cash items:
|
|
|
Depreciation, amortisation and impairment
|
1,591
|
1,894
|
Net loss/(gain) from investing activities
|
(41)
|
173
|
Share of profits in associates and joint ventures
|
(1,583)
|
(1,449)
|
(Gain)/loss on disposal of subsidiaries, businesses, associates and
joint ventures
|
(3,604)
|
(71)
|
Change in expected credit losses gross of recoveries and other
credit impairment charges
|
1,482
|
1,242
|
Provisions including pensions
|
148
|
201
|
Share-based payment expense
|
228
|
177
|
Other non-cash items included in profit before tax
|
(1,661)
|
82
|
Elimination
of exchange differences2
|
(6,558)
|
48,921
|
Change in operating assets
|
(52,745)
|
19,713
|
Change in operating liabilities
|
72,836
|
(35,752)
|
Dividends received from associates
|
124
|
60
|
Contributions paid to defined benefit plans
|
(87)
|
(102)
|
Tax paid
|
(1,664)
|
(1,264)
|
Net cash from operating activities
|
30,123
|
42,605
|
Purchase of financial investments
|
(298,182)
|
(265,427)
|
Proceeds from the sale and maturity of financial
investments
|
263,838
|
247,517
|
Net cash flows from the purchase and sale of property, plant and
equipment
|
(329)
|
(589)
|
Net cash flows from purchase/(disposal) of customer deposits and
loan portfolios
|
-
|
(3,756)
|
Net investment in intangible assets
|
(1,123)
|
(1,240)
|
Net
cash flow on (acquisition)/disposal of subsidiaries, businesses,
associates and joint ventures3
|
1,228
|
(525)
|
Net cash from investing activities
|
(34,568)
|
(24,020)
|
Issue of ordinary share capital and other equity
instruments
|
1,996
|
-
|
Cancellation of shares
|
(1,273)
|
(1,840)
|
Net sales/(purchases) of own shares for market-making and
investment purposes
|
(823)
|
(443)
|
Net cash flow from change in stakes of subsidiaries
|
-
|
(197)
|
Redemption of preference shares and other equity
instruments
|
(2,350)
|
(723)
|
Subordinated loan capital issued
|
2,744
|
2,659
|
Subordinated loan capital repaid
|
(1,044)
|
(11)
|
Dividends paid to shareholders of the parent company and
non-controlling interests
|
(7,508)
|
(4,497)
|
Net cash from financing activities
|
(8,258)
|
(5,052)
|
Net increase in cash and cash equivalents
|
(12,703)
|
13,533
|
Cash and cash equivalents at the beginning of the
period
|
521,671
|
574,032
|
Exchange differences in respect of cash and cash
equivalents
|
8,565
|
(40,243)
|
Cash and cash equivalents at the end of the period
|
517,533
|
547,322
|
1
|
Basis of
preparation and significant accounting policies
|
|
IFRS 4
|
IFRS 17
|
Balance sheet
|
- Insurance
contract liabilities for non-linked life insurance contracts are
calculated by local actuarial principles. Liabilities under
unit-linked life insurance contracts are at least equivalent to the
surrender or transfer value, by reference to the value of the
relevant underlying funds or indices. Grouping requirements follow
local regulations.
- An
intangible asset for the PVIF is recognised, representing the
upfront recognition of future profits associated with in-force
insurance contracts.
-
|
- Insurance
contract liabilities are measured for groups of insurance contracts
at current value, comprising the fulfilment cash flows and the
CSM.
- The
fulfilment cash flows comprise the best estimate of the present
value of the future cash flows, together with a risk adjustment for
non-financial risk.
- The
CSM represents the unearned profit.
|
Profit emergence/ recognition
|
- The
value of new business is reported as revenue on Day 1 as an
increase in PVIF.
- The
impact of the majority of assumption changes is recognised
immediately in the income statement.
- Variances
between actual and expected cash flows are recognised in the period
they arise.
|
- The
CSM is systematically recognised in revenue as services are
provided over the expected coverage period of the group of
contracts (i.e. no Day 1 profit).
- Contracts
are measured using the general measurement model ('GMM') or the
variable fee approach ('VFA') model for insurance contracts with
direct participation features upon meeting the eligibility
criteria. Under the VFA model, the Group's share of the investment
experience and assumption changes are absorbed by the CSM and
released over time to profit or loss. For contracts measured under
GMM, the Group's share of the investment volatility is recorded in
profit or loss as it arises.
- Losses
from onerous contracts are recognised in the income statement
immediately.
|
Investment return assumptions (discount rate)
|
- PVIF
is calculated based on long-term investment return assumptions
based on assets held. It therefore includes investment margins
expected to be earned in future.
|
- Under
the market consistent approach, expected future investment spreads
are not included in the investment return assumption. Instead, the
discount rate includes an illiquidity premium that reflects the
nature of the associated insurance contract
liabilities.
|
Expenses
|
- Total
expenses to acquire and maintain the contract over its lifetime are
included in the PVIF calculation.
- Expenses
are recognised across operating expenses and fee expense as
incurred and the allowances for those costs released from the PVIF
simultaneously.
|
- Projected
lifetime expenses that are directly attributable costs are included
in the insurance contract liabilities and recognised in the
insurance service result.
- Non-attributable
costs are reported in operating expenses.
|
2
|
Dividends
|
|
|
Dividends
paid to shareholders of HSBC Holdings plc
|
||||
|
Half-year to
|
|||
|
30 Jun 2023
|
30 Jun 2022
|
||
|
Per share
|
Total
|
Per share
|
Total
|
|
$
|
$m
|
$
|
$m
|
Dividends paid on ordinary shares
|
|
|
|
|
In respect of previous year:
|
|
|
|
|
- second interim dividend
|
0.23
|
4,590
|
0.18
|
3,576
|
In respect of current year:
|
|
|
|
|
-
first interim dividend
|
0.10
|
2,001
|
-
|
-
|
Total
|
0.33
|
6,591
|
0.18
|
3,576
|
Total coupons on capital securities classified as
equity
|
|
542
|
|
626
|
Dividends to shareholders
|
|
7,133
|
|
4,202
|
3
|
Earnings per
share
|
Basic
and diluted earnings per share
|
||||||
|
Half-year
to1
|
|||||
|
30 Jun 2023
|
30 Jun 2022
|
||||
|
Profit
|
Number
of shares
|
Amount per share
|
Profit
|
Number
of shares
|
Amount per share
|
|
$m
|
(millions)
|
$
|
$m
|
(millions)
|
$
|
Basic2
|
16,966
|
19,693
|
0.86
|
7,966
|
19,954
|
0.40
|
Effect of dilutive potential ordinary shares
|
|
136
|
-
|
|
131
|
|
Diluted2
|
16,966
|
19,829
|
0.86
|
7,966
|
20,085
|
0.40
|
4
|
Constant currency
balance sheet reconciliation
|
|
At
|
|
|
|
|
|
|
|
30 Jun 2023
|
At 30
June 20221
|
At 31
Dec 20221
|
||||
|
Reported and constant currency
|
Constant currency
|
Currency translation
|
Reported
|
Constant currency
|
Currency translation
|
Reported
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
Loans and advances to customers (net)
|
959,558
|
1,037,874
|
10,853
|
1,027,021
|
936,613
|
13,052
|
923,561
|
Interests in associates and joint ventures
|
29,546
|
28,090
|
(1,356)
|
29,446
|
28,384
|
(870)
|
29,254
|
Total external assets
|
3,041,476
|
3,010,510
|
40,029
|
2,970,481
|
2,995,590
|
46,304
|
2,949,286
|
Customer accounts
Customer accounts
|
1,595,769
|
1,671,151
|
19,850
|
1,651,301
|
1,592,396
|
22,093
|
1,570,303
|
5
|
Reported and constant currency
results1
|
|
Half-year
to2
|
|
|
30 Jun
|
30 Jun
|
|
2023
|
2022
|
|
$m
|
$m
|
Revenue3
|
|
|
Reported
|
36,876
|
24,545
|
Currency translation
|
|
(898)
|
Constant currency
|
36,876
|
23,647
|
Change in expected credit losses and other credit impairment
charges
|
|
|
Reported
|
(1,345)
|
(1,087)
|
Currency translation
|
|
13
|
Constant currency
|
(1,345)
|
(1,074)
|
Operating expenses
|
|
|
Reported
|
(15,457)
|
(16,127)
|
Currency translation
|
|
595
|
Constant currency
|
(15,457)
|
(15,532)
|
Share of profit in associates and joint ventures
|
|
|
Reported
|
1,583
|
1,449
|
Currency translation
|
|
(86)
|
Constant currency
|
1,583
|
1,363
|
Profit before tax
|
|
|
Reported
|
21,657
|
8,780
|
Currency translation
|
|
(376)
|
Constant currency
|
21,657
|
8,404
|
Profit after tax
|
|
|
Reported
|
18,071
|
8,931
|
Currency translation
|
|
(300)
|
Constant currency
|
18,071
|
8,631
|
Notable
items
|
||
|
Half-year to
|
|
|
30 Jun
|
30 Jun
|
|
2023
|
2022
|
|
$m
|
$m
|
Revenue
|
|
|
Disposals,
acquisitions and related costs1,2
|
3,321
|
(288)
|
Fair
value movements on financial instruments3
|
15
|
(371)
|
Restructuring
and other related costs4
|
-
|
68
|
Operating expenses
|
|
|
Disposals, acquisitions and related costs
|
(118)
|
-
|
Restructuring
and other related costs5
|
47
|
(1,040)
|
Tax
|
|
|
Tax (charge)/credit on notable items
|
(500)
|
242
|
Recognition of losses
|
-
|
2,082
|
Uncertain tax positions
|
427
|
(317)
|
6
|
Contingent
liabilities, contractual commitments and guarantees
|
|
At
|
|
|
30 Jun
|
31 Dec
|
|
2023
|
2022
|
|
$m
|
$m
|
Guarantees and other contingent liabilities:
|
|
|
- financial guarantees
|
18,882
|
18,783
|
-
performance and other guarantees
|
89,758
|
88,240
|
-
other contingent liabilities
|
590
|
676
|
At the end of the period
|
109,230
|
107,699
|
Commitments:1
|
|
|
-
documentary credits and short-term trade-related
transactions
|
7,698
|
8,241
|
-
forward asset purchases and forward deposits placed
|
72,340
|
50,852
|
-
standby facilities, credit lines and other commitments to
lend
|
793,256
|
768,761
|
At the end of the period
|
873,294
|
827,854
|
7
|
Legal
proceedings and regulatory matters
|
8
|
Events
after the balance sheet date
|
9
|
Capital
structure
|
Capital
ratios
|
|
|
|
At
|
|
|
30 Jun
|
31 Dec
|
|
2023
|
2022
|
|
%
|
%
|
Transitional basis
|
|
|
Common
equity tier 1 ratio
|
14.7
|
14.2
|
Tier 1 ratio
|
17.0
|
16.6
|
Total capital ratio
|
19.8
|
19.3
|
End point basis
|
|
|
Common equity tier 1 ratio
|
14.7
|
14.2
|
Tier 1 ratio
|
17.0
|
16.6
|
Total capital ratio
|
19.3
|
18.7
|
Total
regulatory capital and risk-weighted assets
|
|
|
|
At
|
|
|
30 Jun
|
31 Dec
|
|
2023
|
2022
|
|
$m
|
$m
|
Transitional basis
|
|
|
Common
equity tier 1 capital
|
126,418
|
119,291
|
Additional tier 1 capital
|
19,382
|
19,776
|
Tier 2 capital
|
24,221
|
23,356
|
Total regulatory capital
|
170,021
|
162,423
|
Risk-weighted assets
|
859,545
|
839,720
|
End point basis
|
|
|
Common equity tier 1 capital
|
126,418
|
119,291
|
Additional tier 1 capital
|
19,382
|
19,776
|
Tier 2 capital
|
20,091
|
18,091
|
Total regulatory capital
|
165,891
|
157,158
|
Risk-weighted assets
|
859,545
|
839,720
|
Leverage ratio1
|
|
|
|
At
|
|
|
30 Jun
|
31 Dec
|
|
2023
|
2022
|
|
$bn
|
$bn
|
Tier 1 capital (leverage)
|
145.8
|
139.1
|
Total leverage ratio exposure
|
2,497.9
|
2,417.2
|
|
%
|
%
|
Leverage ratio
|
5.8
|
5.8
|
|
|
10
|
Statutory
accounts
|
11
|
Dealings in HSBC
Holdings listed securities
|
12
|
Earnings release
and final results
|
13
|
Corporate
governance
|
14
|
Interim
Report 2023
|
15
|
Cautionary
statement regarding forward-looking statements
|
16
|
Use of
alternative performance measures
|
17
|
Certain
defined terms
|
18
|
Investor Relations
/ Media Relations contacts
|
Investor Relations
UK -
Richard O'Connor
Telephone:
+44 (0)20 7991 6590
Email:
investorrelations@hsbc.com
Hong
Kong - Yafei Tian
Telephone:
+852 2899 8909
Email:
investorrelations@hsbc.com.hk
|
Media Relations
UK -
Gillian James
Telephone:
+44 (07584 404 238
Email:
pressoffice@hsbc.com
UK -
Kirsten Smart
Telephone:
+44 (0)7725 733 311
Email:
pressoffice@hsbc.com
Hong
Kong - Aman Ullah
Telephone:
+852 3491 1120
Email:
aspmediarelations@hsbc.com.hk
|
HSBC
Holdings plc
|
|
|
|
|
By:
|
|
Name:
Aileen Taylor
|
|
Title:
Group Company Secretary and Chief Governance Officer
|
|
|
|
Date:
01 August 2023
|