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Annual Financial Report - 52 of 56

18 Mar 2016 17:06

RNS Number : 6402S
HSBC Holdings PLC
18 March 2016
 

 

 

 

HSBC

Maturity analysis of assets and liabilities

Due not

more than

1 month

Due over

1 month

but not

more than

3 months

Due over

3 months

but not

more than

6 months

Due over

6 months

but not

more than

9 months

Due over

9 months

but not

more than

1 year

Due over

1 year

but not

more than

2 years

Due over

2 years

but not

more than

5 years

Due over

5 years

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

Financial assets

Cash and balances at central banks

98,934

98,934

Items in the course of collection from other banks

5,768

5,768

Hong Kong Government certificates of indebtedness

28,410

28,410

Trading assets

224,691

34

112

224,837

- reverse repos

292

34

112

438

- other trading assets

224,399

224,399

Financial assets designated at fair value

429

194

222

83

390

896

2,603

19,035

23,852

Derivatives

285,797

215

223

198

33

499

841

670

288,476

- trading

285,678

285,678

- non-trading

119

215

223

198

33

499

841

670

2,798

Loans and advances to banks

57,296

14,530

4,063

1,964

2,499

5,134

3,274

1,641

90,401

Loans and advances to customers

176,862

69,638

54,730

33,095

34,774

81,560

201,253

272,542

924,454

- personal

39,191

8,328

8,510

7,457

9,350

22,438

57,283

218,646

371,203

- corporate and commercial

123,901

54,711

40,489

21,081

21,811

50,355

131,166

49,564

493,078

- financial

13,770

6,599

5,731

4,557

3,613

8,767

12,804

4,332

60,173

Reverse repurchase agreements - non-trading

110,478

21,978

7,220

2,786

580

2,985

228

146,255

Financial investments

35,104

59,098

36,897

19,102

17,293

48,634

94,549

118,278

428,955

Assets held for sale

15,816

2,628

2,544

1,218

2,611

4,675

6,365

4,422

40,279

Accrued income and other financial assets

12,732

6,682

1,995

483

395

463

445

2,115

25,310

Financial assets at 31 December 2015

1,052,317

174,997

107,894

58,929

58,575

144,958

309,558

418,703

2,325,931

Non-financial assets

83,725

83,725

Total assets at 31 December 2015

1,052,317

174,997

107,894

58,929

58,575

144,958

309,558

502,428

2,409,656

 

Maturity analysis of assets and liabilities (continued)

Due not more than

1 month

Due over 1 month but not more than 3 months

Due over 3 months but not more than 6 months

Due over 6 months but not more than 9 months

Due over 9 months but not more than 1 year

Due over 1 year but not more than 2 years

Due over 2 years but not more than 5 years

Due

over

5 years

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

Financial liabilities

Hong Kong currency notes in circulation

28,410

28,410

Deposits by banks

46,693

2,225

1,049

325

116

712

3,182

69

54,371

Customer accounts1

1,185,091

50,831

21,397

10,421

10,869

6,596

3,852

529

1,289,586

- personal

574,468

27,646

13,032

7,371

7,990

3,566

2,920

354

637,347

- corporate and commercial

459,813

18,802

7,314

2,479

2,495

2,926

828

156

494,813

- financial

150,810

4,383

1,051

571

384

104

104

19

157,426

Repurchase agreements - non-trading

73,478

3,788

1,816

164

154

500

500

80,400

Items in the course of transmission to other banks

5,638

5,638

Trading liabilities

111,691

1,471

1,529

882

2,184

4,344

10,105

9,408

141,614

- repos

77

365

442

- debt securities in issue

967

1,106

1,529

882

2,184

4,344

10,105

9,408

30,525

- other trading liabilities

110,647

110,647

Financial liabilities designated at fair value

2,036

1,822

2,943

342

1,900

4,930

14,316

38,119

66,408

- debt securities in issue: covered bonds

2,012

1,608

2,577

6,197

- debt securities in issue: otherwise secured

- debt securities in issue: unsecured

1,972

973

2,926

342

1,786

2,918

9,819

10,745

31,481

- subordinated liabilities and preferred securities

848

2,773

18,889

22,510

- other

64

1

17

114

116

5,908

6,220

Derivatives

276,765

34

251

213

52

524

1,063

2,169

281,071

- trading

276,558

276,558

- non-trading

207

34

251

213

52

524

1,063

2,169

4,513

Debt securities in issue

16,536

9,326

16,295

5,542

1,365

10,754

22,866

6,265

88,949

- covered bonds

1

1

83

17

33

135

- otherwise secured

8,436

173

195

206

173

2,082

4,354

1,118

16,737

- unsecured

8,100

9,153

16,099

5,336

1,191

8,589

18,495

5,114

72,077

Liabilities of disposal groups held for sale

20,350

1,416

1,548

1,344

1,246

5,050

1,484

115

32,553

Accruals and other financial liabilities

14,802

7,965

2,467

659

421

925

1,454

665

29,358

Subordinated liabilities

401

34

650

4,579

17,038

22,702

Total financial liabilities at 31 December 2015

1,781,490

79,279

49,295

19,892

18,341

34,485

63,401

74,877

2,121,060

Non-financial liabilities

91,078

91,078

Total liabilities at 31 December 2015

1,781,490

79,279

49,295

19,892

18,341

34,485

63,401

165,955

2,212,138

 

 

 

 

 

Due not

more than

1 month

Due over

1 month

but not

more than

3 months

Due over

3 months

but not

more than

6 months

Due over

6 months

but not

more than

9 months

Due over

9 months

but not

more than

1 year

Due over

1 year

but not

more than

2 years

Due over

2 years

but not

more than

5 years

Due over

5 years

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

Financial assets

Cash and balances at central banks

129,957

129,957

Items in the course of collection from other banks

4,927

4,927

Hong Kong Government certificates of indebtedness

27,674

27,674

Trading assets

303,463

730

304,193

- reverse repos

567

730

1,297

- other trading assets

302,896

302,896

Financial assets designated at fair value

244

399

417

346

208

1,825

4,634

20,964

29,037

Derivatives

341,558

56

463

220

32

1,003

1,033

643

345,008

- trading

341,416

341,416

- non-trading

142

56

463

220

32

1,003

1,033

643

3,592

Loans and advances to banks

73,758

17,649

5,682

1,934

1,850

7,371

1,981

1,924

112,149

Loans and advances to customers

203,130

76,236

55,018

35,347

37,674

91,300

187,728

288,227

974,660

- personal

42,170

9,673

8,911

7,486

8,672

27,305

54,439

230,298

388,954

- corporate and commercial

146,250

61,809

41,924

23,720

23,697

56,398

124,796

56,590

535,184

- financial

14,710

4,754

4,183

4,141

5,305

7,597

8,493

1,339

50,522

Reverse repurchase agreements - non-trading

116,002

30,490

9,076

2,230

582

868

2,465

161,713

Financial investments

28,237

50,445

41,503

14,577

17,011

48,392

96,891

118,411

415,467

Assets held for sale

114

186

13

18

10

41

126

6,224

6,732

Accrued income and other financial assets

17,756

7,386

2,402

587

317

707

1,156

3,579

33,890

Financial assets at 31 December 2014

1,246,820

182,847

114,574

55,259

57,684

151,507

296,744

439,972

2,545,407

Non-financial assets

88,732

88,732

Total assets at 31 December 2014

1,246,820

182,847

114,574

55,259

57,684

151,507

296,744

528,704

2,634,139

 

Maturity analysis of assets and liabilities (continued)

Due not more than

1 month

Due over 1 month but not more than 3 months

Due over 3 months but not more than 6 months

Due over 6 months but not more than 9 months

Due over 9 months but not more than 1 year

Due over 1 year but not more than 2 years

Due over 2 years but not more than 5 years

Due

over

5 years

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

Financial liabilities

Hong Kong currency notes in circulation

27,674

27,674

Deposits by banks

66,829

2,890

2,539

511

810

621

2,963

263

77,426

Customer accounts1

1,216,574

57,127

32,925

15,023

13,586

9,278

5,819

310

1,350,642

- personal

572,459

28,580

16,728

10,609

9,625

7,220

3,967

125

649,313

- corporate and commercial

465,990

21,841

10,688

3,716

2,894

1,615

1,316

150

508,210

- financial

178,125

6,706

5,509

698

1,067

443

536

35

193,119

Repurchase agreements - non-trading

95,243

5,029

4,054

1,392

714

1,000

107,432

Items in the course of transmission to other banks

5,990

5,990

Trading liabilities

155,604

2,041

2,636

1,439

2,918

5,744

9,603

10,587

190,572

- repos

746

909

224

264

1,249

406

3,798

- debt securities in issue

1,686

1,132

2,412

1,175

1,669

5,338

9,603

10,587

33,602

- other trading liabilities

153,172

153,172

Financial liabilities designated at fair value

981

912

4,264

972

1,557

8,500

15,037

43,930

76,153

- debt securities in issue: covered bonds

205

2,705

2,942

5,852

- debt securities in issue: otherwise secured

- debt securities in issue: unsecured

942

868

4,242

742

1,409

8,500

9,576

14,233

40,512

- subordinated liabilities and preferred securities

36

18

2,623

20,640

23,317

- other

39

8

22

25

130

133

6,115

6,472

Derivatives

335,802

23

86

223

54

621

1,121

2,739

340,669

- trading

335,400

335,400

- non-trading

402

23

86

223

54

621

1,121

2,739

5,269

Debt securities in issue

14,741

15,424

13,027

7,854

6,050

14,209

19,481

5,161

95,947

- covered bonds

-

-

81

81

- otherwise secured

8,807

1,063

60

283

272

912

1,562

1,008

13,967

- unsecured

5,934

14,361

12,967

7,571

5,778

13,297

17,838

4,153

81,899

Liabilities of disposal groups held for sale

191

28

56

55

63

213

551

2,837

3,994

Accruals and other financial liabilities

20,893

9,170

3,013

1,166

1,757

1,355

1,674

818

39,846

Subordinated liabilities

150

3

167

113

3,607

22,624

26,664

Total financial liabilities at 31 December 2014

1,940,522

92,794

62,600

28,638

27,676

40,654

59,856

90,269

2,343,009

Non-financial liabilities

-

-

-

-

-

-

-

91,152

91,152

Total liabilities at 31 December 2014

1,940,522

92,794

62,600

28,638

27,676

40,654

59,856

181,421

2,434,161

1 'Customer accounts' includes $342,908m (2014: $342,927m) insured by guarantee schemes.

 

 

 

 

Maturity analysis of off-balance sheet commitments received

Due not

more than

1 month

Due over

1 month

but not

more than

3 months

Due over

3 months

but not

more than

6 months

Due over

6 months

but not

more than

9 months

Due over

9 months

but not

more than

1 year

Due over

1 year

but not

more than

2 years

Due over

2 years

but not

more than

5 years

Due over

5 years

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

At 31 December 2015

Loan and other credit-related commitments

3,472

2,149

111

5,732

At 31 December 2014

Loan and other credit-related commitments

3,313

4,312

607

8,232

 

Maturity analysis of off-balance sheet commitments given

Due not

more than

1 month

Due over

1 month

but not

more than

3 months

Due over

3 months

but not

more than

6 months

Due over

6 months

but not

more than

9 months

Due over

9 months

but not

more than

1 year

Due over

1 year

but not

more than

2 years

Due over

2 years

but not

more than

5 years

Due over

5 years

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

At 31 December 2015

Loan and other credit-related commitments

472,277

45,792

16,271

9,798

47,122

11,325

48,756

15,089

666,430

Of which:

- personal

161,843

11,547

6,333

963

19,607

1,207

425

1,018

202,943

- corporate and commercial

272,044

32,764

9,126

8,372

23,984

8,227

38,838

12,558

405,913

- financial

38,390

1,481

812

463

3,531

1,891

9,493

1,513

57,574

At 31 December 2014

Loan and other credit-related commitments

455,319

52,398

8,919

14,163

41,500

13,979

48,333

16,769

651,380

Of which:

- personal

179,088

15,784

452

305

14,036

1,432

1,003

955

213,055

- corporate and commercial

239,646

34,657

7,595

12,556

23,519

9,926

36,918

12,185

377,002

- financial

36,585

1,957

872

1,302

3,945

2,621

10,412

3,629

61,323

 

HSBC Holdings

Maturity analysis of assets, liabilities and off-balance sheet commitments

Due not

more than

1 month

Due over

1 month

but not

more than

3 months

Due over

3 months

but not

more than

6 months

Due over

6 months

but not

more than

9 months

Due over

9 months

but not

more than

1 year

Due over

1 year

but not

more than

2 years

Due over

2 years

but not

more than

5 years

Due over

5 years

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

Financial assets

Cash at bank and in hand:

- balances with HSBC undertakings

242

-

-

-

-

-

-

-

242

Derivatives

1,990

-

-

-

-

-

109

368

2,467

- trading

1,990

-

-

-

-

-

-

-

1,990

- non-trading

-

-

-

-

-

-

109

368

477

Loans and advances to HSBC undertakings

7,805

2,629

4,618

-

-

-

-

29,298

44,350

Financial investments in HSBC undertakings

40

6

-

-

-

-

-

4,239

4,285

Accrued income and other financial assets

7

-

-

-

-

-

-

109

116

Total financial assets at 31 December 2015

10,084

2,635

4,618

-

-

-

109

34,014

51,460

-

-

-

Non-financial assets

-

-

-

-

-

-

-

98,734

98,734

Total assets at 31 December 2015

10,084

2,635

4,618

-

-

-

109

132,748

150,194

Financial liabilities

Amounts owed to HSBC undertakings

1,629

-

-

-

-

415

-

108

2,152

Financial liabilities designated at fair value

-

960

-

-

-

-

2,285

16,608

19,853

- debt securities in issue

-

960

-

-

-

-

-

6,937

7,897

- subordinated liabilities and preferred securities

-

-

-

-

-

-

2,285

9,671

11,956

Derivatives

2,065

-

-

-

-

-

213

-

2,278

- trading

2,065

-

-

-

-

-

-

-

2,065

- non-trading

-

-

-

-

-

-

213

-

213

Debt securities in issue

-

-

-

-

-

-

-

960

960

Accruals and other financial liabilities

1,231

195

132

20

-

-

-

-

1,578

Subordinated liabilities

-

-

-

-

-

-

1,749

14,146

15,895

-

Total financial liabilities at 31 December 2015

4,925

1,155

132

20

-

415

4,247

31,822

42,716

-

Non-financial liabilities

-

-

-

-

-

-

-

64

64

-

Total liabilities at 31 December 2015

4,925

1,155

132

20

-

415

4,247

31,886

42,780

Off-balance sheet commitments given

Undrawn formal standby facilities, credit lines and other commitments to lend

-

-

-

-

-

-

-

-

-

 

 

 

 

Due not

more than

1 month

Due over

1 month

but not

more than

3 months

Due over

3 months

but not

more than

6 months

Due over

6 months

but not

more than

9 months

Due over

9 months

but not

more than

1 year

Due over

1 year

but not

more than

2 years

Due over

2 years

but not

more than

5 years

Due over

5 years

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

Financial assets

Cash at bank and in hand:

- balances with HSBC undertakings

249

-

-

-

-

-

-

-

249

Derivatives

2,287

-

-

-

-

-

127

357

2,771

- trading

2,287

-

-

-

-

-

-

-

2,287

- non-trading

-

-

-

-

-

-

127

357

484

Loans and advances to HSBC undertakings

7,007

858

7,676

-

14

-

-

28,355

43,910

Financial investments in HSBC undertakings

26

6

-

-

-

-

-

4,041

4,073

Accrued income and other financial assets

8

-

-

-

-

-

-

-

8

Total financial assets at 31 December 2014

9,577

864

7,676

-

14

-

127

32,753

51,011

Non-financial assets

-

-

-

-

-

-

-

96,853

96,853

Total assets at 31 December 2014

9,577

864

7,676

-

14

-

127

129,606

147,864

Financial liabilities

Amounts owed to HSBC undertakings

2,423

-

32

-

1

436

-

-

2,892

Financial liabilities designated at fair value

-

-

-

-

-

1,110

2,623

14,946

18,679

- debt securities in issue

-

-

-

-

-

1,110

-

7,075

8,185

- subordinated liabilities and preferred securities

-

-

-

-

-

-

2,623

7,871

10,494

Derivatives

1,066

-

-

-

-

-

103

-

1,169

- trading

1,066

-

-

-

-

-

-

-

1,066

- non-trading

-

-

-

-

-

-

103

-

103

Debt securities in issue

-

-

-

-

-

-

-

1,009

1,009

Accruals and other financial liabilities

924

208

137

21

-

-

-

-

1,290

Subordinated liabilities

-

-

-

-

-

-

1,951

15,304

17,255

Total financial liabilities at 31 December 2014

4,413

208

169

21

1

1,546

4,677

31,259

42,294

Non-financial liabilities

-

-

-

-

-

-

-

125

125

Total liabilities at 31 December 2014

4,413

208

169

21

1

1,546

4,677

31,384

42,419

Off-balance sheet commitments given

Undrawn formal standby facilities, credit lines and other commitmentsto lend

16

-

-

-

-

-

-

-

16

 

32 Offsetting of financial assets and financial liabilities

Accounting policy

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously ('the offset criteria').

 

The disclosure below has been enhanced this year with the inclusion of 'Amounts not subject to enforceable netting arrangements' resulting in a change in the basis of preparation from the prior period. Prior period data have been represented accordingly.

The 'Amounts not set off in the balance sheet' in the following table for derivatives and reverse repurchase/repurchase, stock borrowing/lending and similar agreements include transactions where:

· the counterparty has an offsetting exposure with HSBC and a master netting or similar arrangement is in place with a right of set off only in the event of default, insolvency or bankruptcy, or the offset criteria are otherwise not satisfied; and

· cash and non-cash collateral has been received/pledged in respect of the transactions described above.

For loans and advances to customers and customer accounts at amortised cost the amounts included in the table below typically relate to transactions entered into with corporate and commercial customers for working capital management purposes. The 'Amounts not set off in the balance sheet' relate to transactions where the customer has an offsetting exposure with HSBC and an agreement is in place with the right of offset but the offset criteria are otherwise not satisfied. For risk management purposes, the net amounts of such exposures are subject to limits which are monitored and the relevant customer agreements are subject to review and updated, as necessary, to ensure that the legal right of offset remains appropriate.

Footnotes to the table on page 435 are set out below:

1 At 31 December 2015, the amount of cash margin received that has been offset against the gross derivatives assets is $4,135m (2014: $606m). The amount of cash margin paid that has been offset against the gross derivatives liabilities is $4,224m (2014: $190m).

2 For the amount of reverse repos, stock borrowing and similar agreements recognised in the balance sheet, see the 'Funding sources and uses; table on page 160. In the analysis below, the $7,556m (2014: $9,266m) of trading assets presented in the balance sheet comprised $438m of reverse repos (2014: $1,297m) and $7,118m of stock borrowing (2014: $7,969m).

3 At 31 December 2015, the total amount of loans and advances to customers at amortised cost was $924,454m (2014: $974,660m) of which $45,904m (2014: $62,096m) was subject to offsetting. For the amount of loans and advances to customers at amortised cost recognised in the balance sheet, see the 'Funding sources and uses' table on page 160.

4 For the amount of repos, stock lending and similar agreements recognised in the balance sheet, see the 'Funding sources and uses' table on page 160. In the analysis below, the $9,301m (2014: $15,830m) of trading liabilities presented in the balance sheet comprised $442m of repos (2014: $3,798m) and $8,859m of stock lending (2014: $12,032m).

5 At 31 December 2015, the total amount of customer accounts at amortised cost was $1,289,586m (2014: $1,350,642m) of which $51,442m (2014: $69,082m) was subject to offsetting. For the amount of customer accounts at amortised cost recognised in the balance sheet, see the 'Funding sources and uses' table on page 160.

6 These exposures continue to be secured by financial collateral, but we may not have sought or been able to obtain a legal opinion evidencing enforceability of the right of offset.

 

Financial assets subject to offsetting, enforceable master netting arrangements and similar agreements

Amounts subject to enforceable netting arrangements

Amounts not

subject to

enforceable

netting

arrangements6

Total

Amounts not set off in the balance sheet

Gross

amounts

Amounts

offset

Net amounts in the balance sheet

Financial

instruments

Non-cash

collateral

Cash

collateral

Net amount

$m

$m

$m

$m

$m

$m

$m

$m

$m

Financial assets

Derivatives (Note 16)1

385,682

(105,860)

279,822

(215,531)

(8,621)

(34,040)

21,630

8,654

288,476

Reverse repos, stock borrowing and similar agreements2

208,417

(77,925)

130,492

(544)

(129,476)

(270)

202

23,319

153,811

Classified as:

- trading assets

7,496

-

7,496

-

(7,495)

-

1

60

7,556

- non-trading assets

200,921

(77,925)

122,996

(544)

(121,981)

(270)

201

23,259

146,255

Loans and advances to customers atamortised cost3

77,547

(31,643)

45,904

(40,790)

-

-

5,114

1,487

47,391

At 31 December 2015

671,646

(215,428)

456,218

(256,865)

(138,097)

(34,310)

26,946

33,460

489,678

Derivatives (Note 16)1

584,359

(250,465)

333,894

(262,856)

(7,655)

(41,750)

21,633

11,114

345,008

Reverse repos, stock borrowing and similar agreements2

208,893

(88,676)

120,217

(5,117)

(114,394)

(249)

457

50,762

170,979

Classified as:

- trading assets

9,341

(390)

8,951

-

(8,951)

-

-

315

9,266

- non-trading assets

199,552

(88,286)

111,266

(5,117)

(105,443)

(249)

457

50,447

161,713

Loans and advances to customers atamortised cost3

99,623

(37,527)

62,096

(55,989)

-

-

6,107

1,597

63,693

At 31 December 2014

892,875

(376,668)

516,207

(323,962)

(122,049)

(41,999)

28,197

63,473

579,680

Financial liabilities

Derivatives (Note 16)1

377,930

(105,860)

272,070

(215,508)

(13,629)

(30,063)

12,870

9,001

281,071

Repos, stock lending and similar agreements4

136,040

(77,925)

58,115

(2,034)

(56,030)

(26)

25

31,586

89,701

Classified as:

- trading liabilities

9,300

-

9,300

-

(9,299)

-

1

1

9,301

- non-trading liabilities

126,740

(77,925)

48,815

(2,034)

(46,731)

(26)

24

31,585

80,400

Customer accounts at amortised cost5

83,085

(31,643)

51,442

(40,790)

-

(1)

10,651

729

52,171

At 31 December 2015

597,055

(215,428)

381,627

(258,332)

(69,659)

(30,090)

23,546

41,316

422,943

Derivatives (Note 16)1

580,644

(250,465)

330,179

(262,864)

(9,465)

(39,571)

18,279

10,490

340,669

Repos, stock lending and similar agreements4

165,514

(88,676)

76,838

(8,934)

(67,793)

(105)

6

46,424

123,262

Classified as:

- trading liabilities

16,206

(390)

15,816

-

(15,813)

-

3

14

15,830

- non-trading liabilities

149,308

(88,286)

61,022

(8,934)

(51,980)

(105)

3

46,410

107,432

Customer accounts at amortised cost5

106,609

(37,527)

69,082

(55,989)

-

-

13,093

479

69,561

At 31 December 2014

852,767

(376,668)

476,099

(327,787)

(77,258)

(39,676)

31,378

57,393

533,492

For footnotes, see page 434.

 

33 Foreign exchange exposures

Structural foreign exchange exposures

HSBC's structural foreign exchange exposures are represented by the net asset value of its foreign exchange equity and subordinated debt investments in subsidiaries, branches, joint ventures and associates with non-US dollar functional currencies. Gains or losses on structural foreign exchange exposures are recognised in other comprehensive income. HSBC's management of its structural foreign exchange exposures is discussed on page 171.

Net structural foreign exchange exposures

2015

2014

$m

$m

Currency of structural exposure

Pound sterling1

32,701

30,071

Hong Kong dollars

28,270

24,028

Chinese renminbi

24,117

24,578

Euros

19,966

20,378

Mexican pesos

4,228

5,249

Indian rupees

3,645

3,466

Canadian dollars

3,595

4,187

Saudi riyals

3,109

2,910

Brazilian real

2,865

4,910

Swiss francs

2,642

1,864

Malaysian ringgit

1,994

2,219

UAE dirhams

1,898

2,199

Taiwanese dollars

1,702

1,721

Singapore dollars

1,454

1,185

Australian dollars

1,396

1,516

Indonesian rupiah

1,303

1,352

Korean won

1,296

1,360

Turkish lira

1,006

1,366

Egyptian pounds

925

868

Argentine pesos

875

1,059

Others, each less than $700m

5,775

5,918

At 31 December

144,762

142,404

1 During 2015, we entered into new forward exchange contracts amounting to $2.6bn (2014: $1.6bn) in order to manage our sterling structural foreign exchange exposure.

Shareholders' equity would decrease by $2,633m (2014: $2,522m) if euro and sterling foreign currency exchange rates weakened by 5% relative to the US dollar.

34 Non-controlling interests

2015

2014

$m

$m

Non-controlling interests attributable to holders of ordinary shares in subsidiaries

6,981

7,104

Preferred securities issued by subsidiaries

2,077

2,427

At 31 December

9,058

9,531

 

Preferred securities issued by subsidiaries

Preferred securities are securities for which there is no obligation to pay a dividend and, if the dividend is not paid, it may not be cumulative. Such securities do not generally carry voting rights but rank higher than ordinary shares for dividend payments and in the event of a winding-up. These securities have no stated maturity date but may be called and redeemed by the issuer, subject to prior notification to the PRA and, where relevant, the consent of the local banking regulator. Dividends on floating rate preferred securities are generally related to interbank offer rates.

Included in the capital base of HSBC are non-cumulative preferred securities classified as additional tier 1 capital and cumulative preferred securities classified as tier 2 capital in accordance with CRD IV rules, by virtue of the application of grandfathering provisions.

Preferred securities issued by HSBC's subsidiaries

First call

date

2015

$m

2014

$m

HSBC USA Inc.

$150m1

 

Depositary shares each representing 25% interest in a share ofadjustable-rate cumulative preferred stock, series D

Jul 1999

-

150

$150m2

Cumulative preferred stock

Oct 2007

-

150

$518m

Floating rate non-cumulative preferred stock, series F

Apr 2010

518

518

$374m

Floating rate non-cumulative preferred stock, series G

Jan 2011

374

374

$374m

6.50% non-cumulative preferred stock, series H

Jul 2011

374

374

HSBC Finance Corporation

$575m

6.36% non-cumulative preferred stock, series B

Jun 2010

559

559

HSBC Bank Canada

CAD175m

Non-cumulative redeemable class 1 preferred shares, series C

Jun 2010

126

151

CAD175m

Non-cumulative class 1 preferred shares, series D

Dec 2010

126

151

At 31 December

2,077

2,427

1 In May 2015, HSBC redeemed its depositary shares representing 25% interest in a share of adjustable-rate cumulative preferred stock, series D for $152m.

2 In May 2015, HSBC redeemed its cumulative preferred stock for $152m.

35 Called up share capital and other equity instruments

Accounting policy

Financial instruments issued are classified as equity when there is no contractual obligation to transfer cash or other financial assets or issue a variable number of own equity instruments. Incremental costs directly attributable to the issue of equity instruments are shown in equity as a deduction from the proceeds, net of tax.

HSBC Holdings equity instruments held by HSBC are recognised in equity as a deduction from retained earnings until they are cancelled. When such instruments are subsequently sold, reissued or otherwise disposed of, any consideration received is included in equity, net of any directly attributable incremental transaction costs and related income tax effects.

 

Issued and fully paid

HSBC Holdings ordinary shares of $0.50 each

2015

2014

$m

$m

HSBC Holdings ordinary shares1 at 31 December

9,842

9,609

Number

$m

At 1 January 2015

19,217,874,260

9,609

Shares issued under HSBC employee share plans

91,265,909

45

Shares issued in lieu of dividends

375,956,765

188

At 31 December 2015

19,685,096,934

9,842

At 1 January 2014

18,830,007,039

9,415

Shares issued under HSBC employee share plans

119,391,238

60

Shares issued in lieu of dividends

268,475,983

134

At 31 December 2014

19,217,874,260

9,609

HSBC Holdings non-cumulative preference shares of $0.01 each

Number

$m

At 1 January 2015 and 31 December 20152

1,450,000

-

At 1 January 2014 and 31 December 2014

1,450,000

-

1 All HSBC Holdings ordinary shares in issue confer identical rights, including in respect of capital, dividends and voting.

2 Included in the capital base of HSBC as additional tier 1 capital in accordance with the CRD IV rules, by virtue of the application of grandfathering provisions.

Dividends on the HSBC Holdings non-cumulative dollar preference shares in issue ('dollar preference shares') are paid quarterly at the sole and absolute discretion of the Board of Directors. The Board of Directors will not declare a dividend on the dollar preference shares if payment of the dividend would cause HSBC Holdings not to meet the applicable capital adequacy requirements of the PRA or the profit of HSBC Holdings available for distribution as dividends is not sufficient to enable HSBC Holdings to pay in full both dividends on the dollar preference shares and dividends on any other shares that are scheduled to be paid on the same date and that have an equal right to dividends. HSBC Holdings may not declare or pay dividends on any class of its shares ranking lower in the right to dividends than the dollar preference shares nor redeem nor purchase in any manner any of its other shares ranking equal with or lower than the dollar preference shares unless it has paid in full, or set aside an amount to provide for payment in full, the dividends on the dollar preference shares for the then current dividend period. The dollar preference shares carry no rights to conversion into ordinary shares of HSBC Holdings. Holders of the dollar preference shares will only be entitled to attend and vote at general meetings of shareholders of HSBC Holdings if the dividend payable on the dollar preference shares has not been paid in full for four consecutive dividend payment dates. In such circumstances, holders of the dollar preference shares will be entitled to vote on all matters put to general meetings until such time as HSBC Holdings has paid a full dividend on the dollar preference shares. HSBC Holdings may redeem the dollar preference shares in whole at any time on or after 16 December 2010, subject to prior notification to the PRA.

HSBC Holdings non-cumulative preference share of £0.01

The one non-cumulative sterling preference share of £0.01 in issue ('sterling preference share') has been in issue since 29 December 2010 and is held by a subsidiary of HSBC Holdings. Dividends on the sterling preference share are paid quarterly at the sole and absolute discretion of the Board. The sterling preference share carries no rights of conversion into ordinary shares of HSBC Holdings and no rights to attend and vote at general meetings of shareholders of HSBC Holdings. HSBC Holdings may redeem it in whole at any time at the option of the Company.

Other equity instruments

HSBC has included three types of additional tier 1 capital securities in its tier 1 capital. The two types of additional tier 1 securities presented in this Note are accounted for as equity because HSBC does not have an obligation to transfer cash or a variable number of its own ordinary shares to holders under any circumstances outside its control. See Note 30 for additional tier 1 securities accounted for as liabilities.

Other equity instruments which have been included in the regulatory capital base of HSBC comprise additional tier 1 capital securities and additional tier 1 contingent convertible securities.

Additional tier 1 capital securities

Additional tier 1 capital securities are perpetual subordinated securities on which coupon payments may be deferred at the discretion of HSBC Holdings. While any coupon payments are unpaid or deferred, HSBC Holdings will not declare, pay dividends or make distributions or similar periodic payments in respect of, or repurchase, redeem or otherwise acquire any securities of lower or equal rank. Such securities do not generally carry voting rights but rank higher than ordinary shares for coupon payments and in the event of a winding-up. These securities do not meet the identifying criteria in full for recognition as tier 1 capital under CRD IV but are eligible as regulatory capital subject to grandfathering limits and progressive phase-out.

At HSBC Holdings' discretion, and subject to certain conditions being satisfied, the capital securities may be exchanged on any coupon payment date for non-cumulative preference shares to be issued by HSBC Holdings and ranking pari passu with the dollar and sterling preference shares in issue. The preference shares would be issued at a nominal value of $0.01 per share and a premium of $24.99 per share, with both such amounts being subscribed and fully paid. These securities may be called and redeemed by HSBC subject to prior notification to the PRA.

HSBC's additional tier 1 capital securities in issue which are accounted for in equity

First call

date

2015

$m

2014

$m

$2,200m

8.125% perpetual subordinated capital securities

Apr 2013

2,133

2,133

$3,800m

8.00% perpetual subordinated capital securities, Series 2

Dec 2015

3,718

3,718

At 31 December

5,851

5,851

 

 Additional tier 1 capital - contingent convertible securities

During 2015, HSBC continued to issue contingent convertible securities that are included in HSBC's capital base as fully CRD IV compliant additional tier 1 capital securities on an end point basis. The net proceeds of the issuances will be used for general corporate purposes and to further strengthen the capital base pursuant to requirements under CRD IV. These securities bear a fixed rate of interest until their initial call dates. After the initial call dates, in the event they are not redeemed, the securities will bear interest at rates which are fixed periodically in advance for five-year periods based on prevailing market rates. Interest on the contingent convertible securities will be due and payable only at the sole discretion of HSBC, and HSBC has sole and absolute discretion at all times and for any reason to cancel (in whole or in part) any interest payment that would otherwise be payable on any interest payment date. There are limitations on the payment of distributions if such payments are prohibited under UK banking regulations, or other requirements, if HSBC Holdings has insufficient reserves available for distribution or if HSBC fails to satisfy the solvency condition as defined in the securities' terms.

The contingent convertible securities are undated and are repayable, at the option of HSBC, in whole at the initial call date, or on any fifth anniversary after the initial call date. In addition, the securities are repayable at the option of HSBC in whole for certain regulatory or tax reasons. Any repayments require the prior consent of the PRA. These securities rank pari passu with HSBC's dollar and sterling preference shares and are therefore ahead of ordinary shares. The contingent convertible securities will be converted into fully paid ordinary shares of HSBC at a pre-determined price should HSBC's consolidated end point CET1 ratio fall below 7.0%. Therefore, in accordance with the terms of the securities, if the end point CET1 ratio breaches the 7.0% trigger the securities will convert into ordinary shares at fixed contractual conversion prices in the issuance currencies of the relevant securities equivalent to £2.70 at the prevailing rate of exchange on the issuance date subject to certain anti-dilution adjustments.

HSBC's additional tier 1 capital - contingent convertible securities in issue which are accounted for in equity

First call

date

2015

$m

2014

$m

$2,250m

6.375% perpetual subordinated contingent convertible securities

Sep 2024

2,244

2,244

$1,500m

5.625% perpetual subordinated contingent convertible securities

Jan 2020

1,494

1,494

€1,500m

5.25% perpetual subordinated contingent convertible securities

Sep 2022

1,943

1,943

$2,450m

6.375% perpetual subordinated contingent convertible securities

Mar 2025

2,459

-

€1,000m

6.000% perpetual subordinated contingent convertible securities

Sep 2023

1,121

-

At 31 December

9,261

5,681

 

Shares under option

For details of the options outstanding to subscribe for HSBC Holdings ordinary shares under the HSBC Holdings savings-related share option plans, see Note 6.

Aggregate options outstanding under these plans

Number of

HSBC Holdings ordinary shares

Period of exercise

Exercise price

31 December 2015

72,840,810

2015 to 2021

£4.0472 - 5.4738

1,114,830

2015 to 2018

HK$55.4701 - 63.9864

153,610

2015 to 2018

€5.3532 - 6.0657

665,445

2015 to 2018

$7.1456 - 8.2094

31 December 2014

63,918,042

2014 to 2020

£3.3116 - 7.9911

6,468,782

2014 to 2018

HK$37.8797 - 63.9864

571,502

2014 to 2018

€3.6361 - 6.0657

1,867,328

2014 to 2018

$4.8876 - 8.2094

31 December 2013

119,085,250

2013 to 2019

£3.3116 - 7.9911

24,215,341

2013 to 2018

HK$37.8797 - 92.5881

1,574,652

2013 to 2018

€3.6361 - 7.5571

3,997,069

2013 to 2018

$4.8876 - 11.8824

 

Maximum obligation to deliver HSBC Holdings ordinary shares

At 31 December 2015, the maximum obligation to deliver HSBC Holdings ordinary shares under all of the above option arrangements and the HSBC International Employee Share Purchase Plan, together with GPSP awards and restricted share awards granted under the HSBC Share Plan and/or the HSBC Share Plan 2011, was 193,178,906 (2014: 193,154,512). The total number of shares at 31 December 2015 held by employee benefit trusts that may be used to satisfy such obligations to deliver HSBC Holdings ordinary shares was 4,753,747 (2014: 7,943,191).

36 Notes on the statement of cash flows

Other non-cash items included in profit before tax

HSBC

HSBC Holdings

2015

2014

2013

2015

2014

$m

$m

$m

$m

$m

Depreciation, amortisation and impairment

2,181

2,251

2,330

30

39

(Gains)/losses arising from dilution of interests in associates

-

32

(1,051)

-

-

Revaluations on investment property

(61)

(120)

(113)

-

-

Share-based payment expense

757

732

630

86

74

Loan impairment losses gross of recoveries and other creditrisk provisions

4,546

5,125

7,356

-

-

Provisions

3,210

3,074

2,578

-

-

Impairment/(release of impairment) of financial investments

94

54

(36)

-

-

Charge for defined benefit plans

262

535

121

-

-

Accretion of discounts and amortisation of premiums

(224)

(421)

180

(2)

(61)

Year ended 31 December

10,765

11,262

11,995

114

52

 

 

Change in operating assets

HSBC

HSBC Holdings

2015

2014

2013

2015

2014

$m

$m

$m

$m

$m

Change in loans to HSBC undertakings

-

-

-

(729)

1,364

Change in net trading securities and net derivatives

24,384

(18,498)

(24,870)

1,413

483

Change in loans and advances to banks

1,218

5,147

(4,739)

-

-

Change in loans and advances to customers

31,753

12,666

(46,551)

-

-

Change in reverse repurchase agreements - non-trading

(3,011)

18,900

(70,403)

-

-

Change in financial assets designated at fair value

2,394

3,269

(4,922)

-

-

Change in other assets

9,090

4,393

2,586

(141)

7

Year ended 31 December

65,828

25,877

(148,899)

543

1,854

 

Change in operating liabilities

HSBC

HSBC Holdings

2015

2014

2013

2015

2014

$m

$m

$m

$m

$m

Change in deposits by banks

(21,534)

(9,081)

(7,781)

-

-

Change in customer accounts

(44,373)

(8,362)

57,365

-

-

Change in repurchase agreements - non-trading

(26,481)

(56,788)

123,653

-

-

Change in debt securities in issue

960

(8,133)

(15,381)

(49)

(149)

Change in financial liabilities designated at fair value

(10,785)

(10,734)

994

(1,228)

(694)

Change in other liabilities

(4,549)

(716)

5,907

(1,065)

(9,071)

Year ended 31 December

(106,762)

(93,814)

164,757

(2,342)

(9,914)

 

Interest and dividends

HSBC

HSBC Holdings

2015

2014

2013

2015

2014

$m

$m

$m

$m

$m

Interest paid

(14,559)

(15,633)

(17,262)

(2,309)

(2,463)

Interest received

47,623

51,522

50,823

2,026

1,945

Dividends received

914

1,199

1,133

8,469

9,077

 

Cash and cash equivalents

Accounting policy

Cash and cash equivalents include highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value. Such investments are normally those with less than three months' maturity from the date of acquisition.

Cash and cash equivalents

HSBC

HSBC Holdings

2015

2014

2013

2015

2014

$m

$m

$m

$m

$m

Cash at bank with HSBC undertakings

-

-

-

242

249

Cash and balances at central banks

98,934

129,957

166,599

-

-

Items in the course of collection from other banks

5,768

4,927

6,021

-

-

Loans and advances to banks of one month or less

70,985

89,285

96,584

-

-

Reverse repurchase agreements with banks of one month or less

53,971

68,930

68,007

-

-

Treasury bills, other bills and certificates of deposit less than three months

19,843

14,192

15,980

-

-

Less: items in the course of transmission to other banks

(5,638)

(5,990)

(6,910)

-

-

At 31 December

243,863

301,301

346,281

242

249

 

The amount of cash and cash equivalents not available for use by HSBC at 31 December 2015 was $33,744m (2014: $43,738m), of which $21,773m (2014: $29,883m) related to mandatory deposits at central banks.

Disposal of subsidiaries and businesses

During 2014, we completed the disposals of HSBC Bank Middle East Limited's banking business in Jordan and operations in Pakistan. This resulted in a net $303m outflow of cash and cash equivalents which is included under 'Cash flow from investing activities' in the consolidated statement of cash flows on page 340.

In October 2013, we completed the disposal of HSBC Bank (Panama) S.A., receiving total cash consideration of $2,210m which is included under 'Cash flow from investing activities' in the consolidated statement of cash flows on page 340.

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
ACSUWVVRNWAOAAR
Date   Source Headline
14th Jun 20245:20 pmRNSTransaction in Own Shares
14th Jun 202411:00 amRNSIssuance of contingent convertible securities
13th Jun 20245:30 pmRNSTransaction in Own Shares
13th Jun 20247:00 amRNSIssuance of contingent convertible securities
12th Jun 20245:24 pmRNSTransaction in Own Shares
11th Jun 20245:38 pmRNSTransaction in Own Shares
11th Jun 20241:00 pmRNSFirst Interim and Special Dividend - Exchange Rate
10th Jun 20245:15 pmRNSTransaction in Own Shares
7th Jun 20245:32 pmRNSTransaction in Own Shares
6th Jun 20245:16 pmRNSTransaction in Own Shares
5th Jun 20245:44 pmRNSTransaction in Own Shares
4th Jun 20245:22 pmRNSTransaction in Own Shares
3rd Jun 20245:12 pmRNSTransaction in Own Shares
31st May 20245:23 pmRNSTransaction in Own Shares
31st May 20244:30 pmRNSTotal Voting Rights
30th May 20245:28 pmRNSTransaction in Own Shares
29th May 20245:28 pmRNSTransaction in Own Shares
29th May 20244:30 pmRNSDirector/PDMR Shareholding
28th May 20245:27 pmRNSTransaction in Own Shares
28th May 20247:00 amRNSTransaction in Own Shares
24th May 20245:38 pmRNSTransaction in Own Shares
23rd May 20245:30 pmRNSTransaction in Own Shares
22nd May 20245:23 pmRNSTransaction in Own Shares
21st May 20245:25 pmRNSTransaction in Own Shares
20th May 20245:34 pmRNSTransaction in Own Shares
20th May 20243:06 pmRNSIssuance of senior unsecured notes
17th May 20245:32 pmRNSTransaction in Own Shares
17th May 20242:30 pmRNSIssuance of senior unsecured notes
16th May 20245:23 pmRNSTransaction in Own Shares
15th May 20245:40 pmRNSTransaction in Own Shares
15th May 202411:00 amRNSResults of tender offers for four series of notes
14th May 20245:55 pmRNSPricing terms for tender offers for notes
14th May 20245:54 pmRNSTransaction in Own Shares
14th May 20248:52 amRNSHolding(s) in Company
13th May 20245:30 pmRNSTransaction in Own Shares
13th May 20249:23 amRNSHolding(s) in Company
13th May 20249:16 amRNSPre Stabilisation Notice
10th May 20245:28 pmRNSTransaction in Own Shares
10th May 202410:01 amRNSDirector/PDMR Shareholding
10th May 202410:00 amRNSOverseas Regulatory Announcement - Grant of Awards
10th May 20249:03 amRNSHolding(s) in Company
9th May 20245:36 pmRNSTransaction in Own Shares
8th May 20245:40 pmRNSTransaction in Own Shares
8th May 20247:00 amRNSHSBC tender offers for four series of notes
7th May 202410:30 amRNSHSBC Holdings plc – Share buy-back
3rd May 20243:20 pmRNSAGM poll results + changes Board+Ctte composition
3rd May 202411:06 amRNSHSBC Holdings plc - AGM Statements
1st May 20244:30 pmRNSDirector Declaration
1st May 20244:00 pmRNSPublication of base prospectus supplement
30th Apr 20244:15 pmRNSDirector/PDMR Shareholding

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