HSBC Holdings Regulatory News (HSBA)

2015

2014

2013

Notes

$m

$m

$m

Interest income

47,189

50,955

51,192

Interest expense

(14,658)

(16,250)

(15,653)

Net interest income

32,531

34,705

35,539

Fee income

18,016

19,545

19,973

Fee expense

(3,311)

(3,588)

(3,539)

Net fee income

14,705

15,957

16,434

Trading income excluding net interest income

6,948

4,853

6,643

Net interest income on trading activities

1,775

1,907

2,047

Net trading income

8,723

6,760

8,690

Changes in fair value of long-term debt issued and related derivatives

863

508

(1,228)

Net income from other financial instruments designated at fair value

669

1,965

1,996

Net income from financial instruments designated at fair value

2

1,532

2,473

768

Gains less losses from financial investments

2,068

1,335

2,012

Dividend income

123

311

322

Net insurance premium income

3

10,355

11,921

11,940

Other operating income

1,055

1,131

2,632

Total operating income

71,092

74,593

78,337

Net insurance claims and benefits paid and movement in liabilities to policyholders

4

(11,292)

(13,345)

(13,692)

Net operating income before loan impairment charges and other credit risk provisions

59,800

61,248

64,645

Loan impairment charges and other credit risk provisions

5

(3,721)

(3,851)

(5,849)

Net operating income

56,079

57,397

58,796

Employee compensation and benefits

6

(19,900)

(20,366)

(19,196)

General and administrative expenses

(17,662)

(18,565)

(17,065)

Depreciation and impairment of property, plant and equipment

(1,269)

(1,382)

(1,364)

Amortisation and impairment of intangible assets

20

(937)

(936)

(931)

Total operating expenses

(39,768)

(41,249)

(38,556)

Operating profit

5

16,311

16,148

20,240

Share of profit in associates and joint ventures

19

2,556

2,532

2,325

Profit before tax

18,867

18,680

22,565

Tax expense

8

(3,771)

(3,975)

(4,765)

Profit for the year

15,096

14,705

17,800

Profit attributable to shareholders of the parent company

13,522

13,688

16,204

Profit attributable to non-controlling interests

1,574

1,017

1,596

$

$

$

Basic earnings per ordinary share

10

0.65

0.69

0.84

Diluted earnings per ordinary share

10

0.64

0.69

0.84

2015

2014

2013

$m

$m

$m

Profit for the year

15,096

14,705

17,800

Other comprehensive income/(expense)

Items that will be reclassified subsequently to profit or loss when specificconditions are met:

Available-for-sale investments

(3,072)

2,972

(1,718)

- fair value gains/(losses)

(1,231)

4,794

(1,787)

- fair value gains reclassified to the income statement

(2,437)

(1,672)

(1,277)

- amounts reclassified to the income statement in respect of impairment losses

127

374

286

- income taxes

469

(524)

1,060

Cash flow hedges

(24)

188

(128)

- fair value gains

704

1,512

776

- fair value gains reclassified to the income statement

(705)

(1,244)

(894)

- income taxes

(23)

(80)

(10)

Share of other comprehensive income/(expense) of associates andjoint ventures

(9)

80

(71)

- share for the year

(9)

78

(35)

- reclassified to income statement on disposal

-

2

(36)

Exchange differences

(10,945)

(8,903)

(1,372)

- foreign exchange gains reclassified to income statement on disposal of aforeign operation

-

(21)

(290)

- other exchange differences

(11,112)

(8,917)

(1,154)

- Income tax attributable to exchange differences

167

35

72

Items that will not be reclassified subsequently to profit or loss:

Remeasurement of defined benefit asset/liability

101

1,985

(458)

- before income taxes

130

2,419

(601)

- income taxes

(29)

(434)

143

Other comprehensive income for the year, net of tax

(13,949)

(3,678)

(3,747)

Total comprehensive income for the year

1,147

11,027

14,053

Attributable to:

- shareholders of the parent company

460

9,245

12,644

- non-controlling interests

687

1,782

1,409

Total comprehensive income for the year

1,147

11,027

14,053

2015

2014

Notes

$m

$m

Assets

Cash and balances at central banks

98,934

129,957

Items in the course of collection from other banks

5,768

4,927

Hong Kong Government certificates of indebtedness

28,410

27,674

Trading assets

12

224,837

304,193

Financial assets designated at fair value

15

23,852

29,037

Derivatives

16

288,476

345,008

Loans and advances to banks

90,401

112,149

Loans and advances to customers

924,454

974,660

Reverse repurchase agreements - non-trading

146,255

161,713

Financial investments

17

428,955

415,467

Assets held for sale

23

43,900

7,647

Prepayments, accrued income and other assets

22

54,398

 67,529

Current tax assets

1,221

1,309

Interests in associates and joint ventures

19

19,139

18,181

Goodwill and intangible assets

20

24,605

27,577

Deferred tax assets

8

6,051

7,111

Total assets at 31 December

2,409,656

2,634,139

Liabilities and equity

Liabilities

Hong Kong currency notes in circulation

28,410

27,674

Deposits by banks

54,371

77,426

Customer accounts

1,289,586

1,350,642

Repurchase agreements - non-trading

80,400

107,432

Items in the course of transmission to other banks

5,638

5,990

Trading liabilities

24

141,614

190,572

Financial liabilities designated at fair value

25

66,408

76,153

Derivatives

16

281,071

340,669

Debt securities in issue

26

88,949

95,947

Liabilities of disposal groups held for sale

23

36,840

6,934

Accruals, deferred income and other liabilities

27

38,116

 46,462

Current tax liabilities

783

1,213

Liabilities under insurance contracts

28

69,938

73,861

Provisions

29

5,552

4,998

Deferred tax liabilities

8

1,760

1,524

Subordinated liabilities

30

22,702

26,664

Total liabilities at 31 December

2,212,138

2,434,161

Equity

Called up share capital

35

9,842

9,609

Share premium account

12,421

11,918

Other equity instruments

15,112

11,532

Other reserves

7,109

20,244

Retained earnings

143,976

137,144

Total shareholders' equity

188,460

190,447

Non-controlling interests

34

9,058

9,531

Total equity at 31 December

197,518

199,978

Total liabilities and equity at 31 December

2,409,656

2,634,139

2015

2014

2013

Notes

$m

$m

$m

Cash flows from operating activities

Profit before tax

18,867

18,680

22,565

Adjustments for:

- net gain from investing activities

(1,935)

(1,928)

(1,458)

- share of profits in associates and joint ventures

(2,556)

(2,532)

(2,325)

- (gain)/loss on disposal of associates, joint ventures, subsidiaries and businesses

-

9

(1,173)

- other non-cash items included in profit before tax

36

10,765

11,262

11,995

- change in operating assets

36

65,828

25,877

(148,899)

- change in operating liabilities

36

(106,762)

(93,814)

164,757

- elimination of exchange differences3

18,308

24,571

4,479

- dividends received from associates

879

757

694

- contributions paid to defined benefit plans

(664)

(681)

(962)

- tax paid

(3,852)

(3,573)

(4,696)

Net cash generated from/(used in) operating activities

(1,122)

(21,372)

44,977

Cash flows from investing activities

Purchase of financial investments

(438,376)

(384,199)

(363,979)

Proceeds from the sale and maturity of financial investments

399,636

382,837

342,539

Purchase of property, plant and equipment

(1,352)

(1,477)

(1,952)

Proceeds from the sale of property, plant and equipment

103

88

441

Net cash inflow/(outflow) from disposal of customer and loan portfolios

2,023

(1,035)

6,518

Net investment in intangible assets

(954)

(903)

(834)

Proceeds from disposal of Ping An

-

-

7,413

Net cash inflow/(outflow) from disposal of other subsidiaries, businesses,associates and joint ventures

8

(272)

3,269

Net cash generated from/(used in) investing activities

(38,912)

(4,961)

(6,585)

Cash flows from financing activities

Issue of ordinary share capital

147

267

297

Net sales/(purchases) of own shares for market-making and investment purposes

331

(96)

(32)

Issue of other equity instruments

3,580

5,681

-

Redemption of preference shares and other equity instruments

(463)

(234)

-

Subordinated loan capital issued

3,180

3,500

1,989

Subordinated loan capital repaid

(2,157)

(3,163)

(1,662)

Dividends paid to shareholders of the parent company

(6,548)

(6,611)

(6,414)

Dividends paid to non-controlling interests

(697)

(639)

(586)

Dividends paid to holders of other equity instruments

(950)

(573)

(573)

Net cash used in financing activities

(3,577)

(1,868)

(6,981)

Net increase/(decrease) in cash and cash equivalents

(43,611)

(28,201)

31,411

Cash and cash equivalents at 1 January

301,301

346,281

315,308

Exchange differences in respect of cash and cash equivalents

(13,827)

(16,779)

(438)

Cash and cash equivalents at 31 December

36

243,863

301,301

346,281

Other reserves

Called up share capital

Share

premium

Other equity instru-

ments2

Retained

Earnings4,6

Available- for-sale fair value

reserve5

Cash flow

hedging

reserve5

Foreign

exchange

reserve5

Merger

reserve6,7

Total share- holders' equity

Non- controlling

interests

Total equity

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

At 1 January 2015

9,609

11,918

11,532

137,144

2,143

58

(9,265)

27,308

190,447

9,531

199,978

Profit for the year

-

-

-

13,522

-

-

-

-

13,522

1,574

15,096

Other comprehensive income (net of tax)

-

-

-

73

(2,332)

(24)

(10,779)

-

(13,062)

(887)

(13,949)

- available-for-sale investments

-

-

-

-

(2,332)

-

-

-

(2,332)

(740)

(3,072)

- cash flow hedges

-

-

-

-

-

(24)

-

-

(24)

-

(24)

- remeasurement of defined benefit asset/liability

-

-

-

82

-

-

-

-

82

19

101

- share of other comprehensive income of associates and joint ventures

-

-

-

(9)

-

-

-

-

(9)

-

(9)

- exchange differences

-

-

-

-

-

-

(10,779)

-

(10,779)

(166)

(10,945)

Total comprehensive income for the year

-

-

-

13,595

(2,332)

(24)

(10,779)

-

460

687

1,147

45

Shares issued under employee remuneration and share plans

45

691

-

(589)

-

-

-

-

147

-

147

Shares issued in lieu of dividends and amounts arising thereon

188

(188)

-

3,162

-

-

-

-

3,162

-

3,162

Capital securities issued

-

-

3,580

-

-

-

-

-

3,580

-

3,580

Dividends to shareholders

-

-

-

(10,660)

-

-

-

-

(10,660)

(697)

(11,357)

Cost of share-based payment arrangements

-

-

-

757

-

-

-

-

757

-

757

Other movements

-

-

-

567

-

-

-

-

567

(463)

104

At 31 December 2015

9,842

12,421

15,112

143,976

(189)

34

(20,044)

27,308

188,460

9,058

197,518

At 1 January 2014

9,415

11,135

5,851

128,728

97

(121)

(542)

27,308

181,871

8,588

190,459

Profit for the year

−

−

−

13,688

−

−

−

−

13,688

1,017

14,705

Other comprehensive income (net of tax)

−

−

−

2,066

2,025

189

(8,723)

−

(4,443)

765

(3,678)

- available-for-sale investments

−

−

−

−

2,025

−

−

−

2,025

947

2,972

- cash flow hedges

−

−

−

−

−

189

−

−

189

(1)

188

- remeasurement of defined benefit asset/liability

−

−

−

1,986

−

−

−

−

1,986

(1)

1,985

- share of other comprehensive income of associates and joint ventures

−

−

−

80

−

−

−

−

80

−

80

- exchange differences

−

−

−

−

−

−

(8,723)

−

(8,723)

(180)

(8,903)

Total comprehensive income for the year

−

−

−

15,754

2,025

189

(8,723)

−

9,245

1,782

11,027

Shares issued under employee remuneration and share plans

60

917

−

(710)

−

−

−

−

267

−

267

Shares issued in lieu of dividends and amounts arising thereon

134

(134)

−

2,709

−

−

−

−

2,709

−

2,709

Capital securities issued

−

−

5,681

−

−

−

−

−

5,681

−

5,681

Dividends to shareholders

−

−

−

(9,893)

−

−

−

−

(9,893)

(712)

(10,605)

Cost of share-based payment arrangements

−

−

−

732

−

−

−

−

732

−

732

Other movements

−

−

−

(176)

21

(10)

−

−

(165)

(127)

(292)