HSBC Holdings Regulatory News (HSBA)

6 Mar 2006 08:15

HSBC Holdings PLC06 March 2006 Consolidated income statement for the year ended 31Dec04Reconciliation of HK GAAP and HKFRS Effect of transition to HKFRS (excluding HKAS 39) Pension Assets and other 20004 acquired in post- Equity As exchange for retirement compensationFigures in HK$m reported advances benefits Property Goodwill plans Interest income 57,911 (2) - - - -Interest expense (19,679) - - - - -Net interest income 38,232 (2) - - - -Fee income 19,874 - - - - -Fee expense (3,184) - - - - -Net fee income 16,690 - - - - -Net trading income 6,615 - - - - 8Net investment income on assets backing policyholder liabilities - - - - - -Gains less losses from financial investments - - - - - -Dividend income 186 - - - - -Net earned insurance premiums - - - - - -Other operating income 5,930 55 - 3 - -Total operating income 67,653 53 - 3 - 8Net insurance claims incurred and movement in policyholder liabilities - - - - - -Net operating income before loan impairment charges and other credit risk provisions 67,653 53 - 3 - 8Loan impairment charges and other credit risk provisions 769 (38) - - - -Net operating income 68,422 15 - 3 - 8Employee compensation and benefits (14,743) - 33 - - (95)General and administrative expenses (10,079) - - (56) - -Depreciation of property, plant and equipment (2,096) - - 245 - -Amortisation of intangible assets (74) - - - 73 -Total operating expenses (26,992) - 33 189 73 (95)Operating profit 41,430 15 33 192 73 (87)Profit on tangible fixed assets and long-term investments 2,098 (16) - - (62) -Surplus arising on property revaluation 1,024 - - 10 - -Share of profit in associates 414 - - - 32 -Profit before tax 44,966 (1) 33 202 43 (87)Tax expense (7,086) - (16) (33) - (24)Profit after tax 37,880 (1) 17 169 43 (111)Profit attributable to minority interests (4,315) - - - - 18Profit attributable to shareholders 33,565 (1) 17 169 43 (93) Reconciliation of HK GAAP and HKFRS Effect of transition to HKFRS (excluding HKAS 39) Investment 2004 Insurance contracts Preference Consolidation AsFigures in KK$m contracts reclassified shares and others Reclassification restated Interest income 266 - - (228) - 57,947Interest expense 4 - (1,540) 238 - (20,977)Net interest income 270 - (1,540) 10 - 36,970Fee income 10 - - (408) - 19,476Fee expense (102) - - 91 - (3,195)Net fee income (92) - - (317) - 16,281Net trading income 15 - - 365 - 7,003Net investment income on assets backing policyholder liabilities 2,420 (1,522) - - - 898Gains less losses from financial investments - - - - 1,497 1,497Dividend income (1) - - (22) - 163Net earned insurance premiums 18,222 (4,137) - - - 14,085Other operating income (3,436) - - (5) 1,567 4,114Total operating income 17,398 (5,659) (1,540) 31 3,064 81,011Net insurance claims incurred and movement in policyholder liabilities (17,384) 5,659 - - - (11,725)Net operating income before loan impairment charges and other credit risk provisions 14 - (1,540) 31 3,064 69,286Loan impairment charges and other credit risk provisions - - - - 131 862Net operating income 14 - (1,540) 31 3,195 70,148Employee compensation and benefits 8 - - 32 - (14,765)General and administrative expenses (22) - - (5) (131) (10,293)Depreciation of property, plant and equipment - - - 99 - (1,752)Amortisation of intangible assets - - - (100) - (101)Total operating expenses (14) - - 26 (131) (26,911)Operating profit - - (1,540) 57 3,064 43,237Profit on tangible fixed assets and long-term investments - - - 10 (2,030) -Surplus arising on property revaluation - - - - (1,034) -Share of profit in associates - - - (3) (144) 299Profit before tax - - (1,540) 64 (144) 43,536Tax expense - - - 27 144 (6,988)Profit after tax - - (1,540) 91 - 36,548Profit attributable to minority interests - - - (103) - (4,400)Profit attributable to shareholders - - (1,540) (12) - 32,148 Consolidated balance sheet at 31 December 2004Reconciliation of HK GAAP and HKFRS Effect of transition to HKFRS (excluding HKAS 39) Pension At Assets and other 31Dec04 acquired in post- Equity as exchange retirement compensationFigures in HK$m reported advances benefits Property Goodwill plans ASSETSCash and short-term funds 501,207 - - - - -Placings with banks maturing after one month 74,481 - - - - -Items in the course of collection from other banks 13,479 - - - - -Certificates of deposit 48,643 - - - - -Hong Kong SAR Government certificates of indebtedness 92,334 - - - - -Trading assets 85,356 - - - - -Derivatives 54,837 - - - - -Advances to customers 919,253 (561) - - - -Financial investments 425,635 - - - - 566Amounts due from fellow subsidiary companies 82,592 - - - - -Investments in associates 16,918 - - (107) 32 -Goodwill and intangible assets 1,526 - - - 67 -Property, plant and equipment 42,080 - - (14,653) - -Deferred tax assets 1,659 - - - - -Retirement benefit assets 1,297 - 10 - - -Other assets 97,748 561 - 4,014 24 (83) 2,459,045 - 10 (10,746) 123 483 LIABILITIESHong Kong SAR currency notes in circulation 92,334 - - - - -Deposits by banks 73,098 - - - - -Customer accounts 1,730,494 - - - - -Items in the course of transmission to other banks 23,452 - - - - -Trading liabilities 37,281 - - - - -Derivatives 50,635 - - - - -Debt securities in issue 150,179 - - - - -Retirement benefit liabilities 211 - 116 - - -Amounts due to fellow subsidiary companies 17,137 - - - - -Amounts due to ultimate holding company 479 - - - - -Other liabilities 39,096 - - - (121) (46)Liabilities to policyholders under long-term assurance business 62,643 - - - - -Liabilities to customers under investment contracts - - - - - -Liabilities to customers under insurance contracts issued - - - - - -Current taxation 2,333 - - - - -Deferred taxation 4,676 - (23) (1,394) 50 88Subordinated liabilities 11,142 - - - - -Preference shares - - - - - - 2,295,190 - 93 (1,394) (71) 42 EQUITYShare capital 74,213 - - - - -Other reserves 17,399 - - (10,594) - 332Retained profits 51,083 - (83) 1,242 194 109Proposed final interim dividend 4,800 - - - - -Shareholders' funds 147,495 - - - - -Minority interests 16,360 - - - - - 163,855 - - - - - 2,459,045 - 10 (10,746) 123 483 Reconciliation of HK GAAP and HKFRS Effect of transition to HKFRS (excluding HKAS 39) At Investment 31Dec04 Insurance contracts Preference Consolidation AsFigures in HK$m contracts reclassified Netting shares and others restated ASSETSCash and short-term funds 5,098 - 4,287 - 52 510,644Placings with banks maturing after one month 230 - - - - 74,711Items in the course of collection from other banks - - - - - 13,479Certificates of deposit 3,100 - - - - 51,743Hong Kong SAR Government certificates of indebtedness - - - - - 92,334Trading assets (7,230) - 8,330 - 1,276 87,732Derivatives - - 39,541 - 20 94,398Advances to customers - - - - 500 919,192Financial investments 45,996 - - - 135 472,332Amounts due from fellow subsidiary companies 6,330 - - - (6,330) 82,592Investments in associates - - - - (500) 16,343Goodwill and intangible assets 3,513 - - - 223 5,329Property, plant and equipment - - - - (223) 27,204Deferred tax assets - - - - 52 1,711Retirement benefit assets - - - - - 1,307Other assets (66,259) - (1) - (240) 35,764 (9,222) - 52,157 - (5,035) 2,486,815 LIABILITIESHong Kong SAR currency notes in circulation - - - - - 92,334Deposits by banks 2 - 1,880 - - 74,980Customer accounts (227) - 221 - (2,377) 1,728,111Items in the course of transmission to other banks - - - - - 23,452Trading liabilities - - - - - 37,281Derivatives - - 41,727 - - 92,362Debt securities in issue (55) - 8,315 - (3,277) 155,162Retirement benefit liabilities - - - - - 327Amounts due to fellow subsidiary companies 219 - - 432 (220) 17,568Amounts due to ultimate holding company - - - 74 - 553Other liabilities (54) - 14 (506) (1,225) 37,158Liabilities to policyholders under long-term assurance business (9,107) (54,938) - - 1,402 -Liabilities to customers under investment contracts - 28,516 - - - 28,516Liabilities to customers under insurance contracts issued - 26,422 - - - 26,422Current taxation - - - - - 2,333Deferred taxation - - - - (2) 3,395Subordinated liabilities - - - - - 11,142Preference shares - - - 55,602 - 55,602 (9,222) - 52,157 55,602 (5,699) 2,386,698 EQUITYShare capital - - - (51,719) - 22,494Other reserves - - - (3,883) 2,775 6,029Retained profits - - - - (2,061) 50,484Proposed final interim dividend - - - - - 4,800Shareholders' funds - - - - - 83,807Minority interests - - - - (50) 16,310 - - - - - 100,117 (9,222) - 52,157 - (5,035) 2,486,815 Consolidated balance sheet at 1 January 2005Effect of transition impacted by HKAS 39 Balance Balance excluding includingFigures in HK$m HKAS 39 HKAS 39 HKAS 39 ASSETSCash and short-term funds 510,644 (33,625) 477,019Placings with banks maturing after one month 74,711 (1,018) 73,693Items in the course of collection from other banks 13,479 - 13,479Certificates of deposit 51,743 (2) 51,741Hong Kong SAR Government certificates of indebtedness 92,334 - 92,334Trading assets 87,732 42,208 129,940Financial assets designated at fair value - 36,072 36,072Derivatives 94,398 (7,237) 87,161Advances to customers 919,192 (4,036) 915,156Financial investments 472,332 (37,635) 434,697Amounts due from fellow subsidiary companies 82,592 (1,477) 81,115Investments in associates 16,343 - 16,343Goodwill and intangible assets 5,329 - 5,329Property, plant and equipment 27,204 - 27,204Deferred tax assets 1,711 (328) 1,383Retirement benefit assets 1,307 - 1,307Other assets 35,764 12,241 48,005Total assets 2,486,815 5,163 2,491,978 LIABILITIESHong Kong SAR currency notes in circulation 92,334 - 92,334Deposits by banks 74,980 (2,325) 72,655Customer accounts 1,728,111 (34,994) 1,693,117Items in the course of transmission to other banks 23,452 - 23,452Financial liabilities designated at fair value - 1,254 1,254Trading liabilities 37,281 125,743 163,024Derivatives 92,362 654 93,016Debt securities in issue 155,162 (91,473) 63,689Retirement benefit liabilities 327 - 327Amounts due to fellow subsidiary companies 17,568 (1,731) 15,837Amounts due to ultimate holding company 553 - 553Other liabilities 37,158 6,445 43,603Liabilities to customers under investment contracts 28,516 - 28,516Liabilities under insurance contracts issued 26,422 - 26,422Current taxation 2,333 29 2,362Deferred taxation 3,395 (155) 3,240Subordinated liabilities 11,142 74 11,216Preference shares 55,602 - 55,602Total liabilities 2,386,698 3,521 2,390,219 CAPITAL RESOURCESShare capital 22,494 - 22,494Other reserves 6,029 1,333 7,362Retained profits 50,484 (39) 50,445Proposed final interim dividend 4,800 - 4,800Shareholders' funds 83,807 - 85,101Minority interest 16,310 348 16,658 100,117 - 101,759 2,486,815 5,163 2,491,978 This information is provided by RNS The company news service from the London Stock Exchange