HSBC Holdings Regulatory News (HSBA)

5 Mar 2007 08:15

HSBC Holdings PLC05 March 2007 HSBC Rest of Asia-Pacific Operations Half-year ended Half-year endedFigures in US$m 30Jun06 31Dec06 2006 30Jun05 31Dec05 2005Interest income 3,548 4,145 7,693 2,669 3,004 5,673Interest expense (2,069) (2,577) (4,646) (1,512) (1,749) (3,261)Net interest income 1,479 1,568 3,047 1,157 1,255 2,412Fee income 949 963 1,912 763 856 1,619Fee expense (164) (126) (290) (131) (148) (279)Net fee income 785 837 1,622 632 708 1,340Net trading income 551 630 1,181 387 473 860Net income from financial instruments designated at fair value (5) 84 79 14 44 58Gains less losses from financial investments 27 14 41 2 16 18Dividend income - 5 5 4 1 5Net earned insurance premiums 89 85 174 29 126 155Other operating income 288 477 765 131 204 335Total operating income 3,214 3,700 6,914 2,356 2,827 5,183Net insurance claims incurred and movement in policyholders' liabilities (63) (129) (192) (37) (129) (166)Net operating income before loan impairment charges and other credit risk provisions 3,151 3,571 6,722 2,319 2,698 5,017Loanimpairmentcharges andother creditriskprovisions (271) (241) (512) (23) (111) (134)Net operating income 2,880 3,330 6,210 2,296 2,587 4,883Total operating expenses (1,609) (1,939) (3,548) (1,264) (1,498) (2,762)Operating profit 1,271 1,391 2,662 1,032 1,089 2,121Share of profit in associates and joint ventures 386 479 865 248 205 453Profit before tax 1,657 1,870 3,527 1,280 1,294 2,574 HSBC North American Operations Half-year ended Half-year endedFigures in US$m 30Jun06 31Dec06 2006 30Jun05 31Dec05 2005Interest income 13,514 14,445 27,959 10,886 11,303 22,189Interest expense (6,518) (7,173) (13,691) (4,315) (4,579) (8,894)Net interest income 6,996 7,272 14,268 6,571 6,724 13,295Fee income 2,702 2,909 5,611 2,149 2,456 4,605Fee expense (390) (455) (845) (300) (353) (653)Net fee income 2,312 2,454 4,766 1,849 2,103 3,952Net trading income 959 399 1,358 450 435 885Net income from financial instruments designated at fair value 24 (87) (63) 284 150 434Gains less losses from financial investments 40 18 58 39 8 47Dividend income 39 46 85 18 23 41Net earned insurance premiums 238 254 492 228 249 477Other operating income 364 558 922 220 422 642Total operating income 10,972 10,914 21,886 9,659 10,114 19,773Net insurance claims incurred and movement in policyholders' liabilities (117) (142) (259) (120) (112) (232)Net operating income before loan impairment charges and other credit risk provisions 10,855 10,772 21,627 9,539 10,002 19,541Loan impairment charges and other credit risk provisions (2,172) (4,624) (6,796) (2,030) (2,886) (4,916)Net operating income 8,683 6,148 14,831 7,509 7,116 14,625Total operating expenses (4,973) (5,220) (10,193) (4,288) (4,470) (8,758)Operating profit 3,710 928 4,638 3,221 2,646 5,867Share of profit in associates and joint ventures 31 (1) 30 46 2 48Profit before tax 3,741 927 4,668 3,267 2,648 5,915 HSBC Latin America Operations Half-year ended Half-year endedFigures in US$m 30Jun06 31Dec06 2006 30Jun05 31Dec05 2005Interest income 3,497 3,792 7,289 3,498 2,635 6,133Interest expense (1,493) (1,599) (3,092) (1,984) (807) (2,791)Net interest income 2,004 2,193 4,197 1,514 1,828 3,342Fee income 933 1,042 1,975 684 797 1,481Fee expense (163) (182) (345) (122) (168) (290)Net fee income 770 860 1,630 562 629 1,191Net trading income 258 279 537 289 248 537Net income from financial instruments designated at fair value 106 131 237 46 140 186Gains less losses from financial investments 38 46 84 39 41 80Dividend income 3 3 6 2 3 5Net earned insurance premiums 522 554 1,076 403 468 871Other operating income 41 50 91 58 228 286Total operating income 3,742 4,116 7,858 2,913 3,585 6,498Net insurance claims incurred and movement in policyholders' liabilities (489) (534) (1,023) (350) (442) (792) Net operating income before loan impairment charges and other credit risk provisions 3,253 3,582 6,835 2,563 3,143 5,706Loan impairment charges and other credit risk provisions (442) (496) (938) (235) (441) (676)Net operating income 2,811 3,086 5,897 2,328 2,702 5,030Total operating expenses (1,946) (2,220) (4,166) (1,540) (1,886) (3,426)Operating profit 865 866 1,731 788 816 1,604Share of profit in associates and joint ventures - 4 4 - - -Profit before tax 865 870 1,735 788 816 1,604 10. Registers of shareholders The Overseas Branch Register of shareholders in Hong Kong will be closed for oneday on Friday 23 March 2007. Any person who has acquired shares registered onthe Hong Kong Branch Register but who has not lodged the share transfer with theHong Kong Branch Registrar should do so before 4.00pm on Thursday 22 March 2007in order to receive the fourth interim dividend for 2006, which will be payableon Thursday 10 May 2007. Transfers may not be made to or from the Hong KongOverseas Branch Register while that Branch Register is closed. Any person who has acquired shares registered on the Principal Register in theUnited Kingdom but who has not lodged the share transfer with the PrincipalRegistrar should do so before 4.00pm on Friday 23 March 2007 in order to receivethe dividend. Any person who has acquired shares registered on the Overseas Branch Register ofshareholders in Bermuda but who has not lodged the share transfer with theBermuda Branch Registrar should do so before 4.00pm on Friday 23 March 2007 inorder to receive the dividend. Transfers of American Depositary Shares should be lodged with the depositary by12 noon on Friday 23 March 2007 in order to receive the dividend. 11. Foreign currency amounts The sterling and Hong Kong dollar equivalent figures in the consolidated incomestatement and balance sheet are for information only. These are translated atthe average rate for the period for the income statement and the closing ratefor the balance sheet as follows: Year end 31Dec06 31Dec05 Closing: HK$/US$ 7.776 7.754 £/US$ 0.509 0.581 Average: HK$/US$ 7.769 7.778 £/US$ 0.543 0.550 12. Litigation HSBC is party to legal actions in a number of jurisdictions including the UK,Hong Kong and the US, arising out of its normal business operations. HSBCconsiders that none of the actions is regarded as material, and none is expectedto result in a significant adverse effect on the financial position of HSBC,either individually or in the aggregate. Management believes that adequateprovisions have been made in respect of such litigation. HSBC has not disclosedany contingent liability associated with these legal actions because it is notpracticable to do so. 13. Dealings in HSBC Holdings plc shares Except for dealings as intermediaries by HSBC Bank plc, HSBC Financial Products(France) and The Hongkong and Shanghai Banking Corporation Limited, which aremembers of a European Economic Area exchange, neither the Company nor anysubsidiaries has bought, sold or redeemed any securities of the Company duringthe year ended 31 December 2006. 14. Statutory accounts The information in this news release does not constitute statutory accountswithin the meaning of Section 240 of the Companies Act 1985 (the Act). Thestatutory accounts for the year ended 31 December 2006 will be delivered to theRegistrar of Companies in England and Wales in accordance with Section 242 ofthe Act. The auditor has reported on those accounts. Its report was unqualifiedand did not contain a statement under Section 237(2) or (3) of the Act. 15. Forward-looking statements This news release contains certain forward-looking statements with respect tothe financial condition, results of operations and business of HSBC. Theseforward-looking statements represent HSBC's expectations or beliefs concerningfuture events and involve known and unknown risks and uncertainty that couldcause actual results, performance or events to differ materially from thoseexpressed or implied in such statements. Certain statements, such as those thatinclude the words 'potential', 'estimated', and similar expressions orvariations on such expressions may be considered 'forward-looking statements'. 16. Corporate governance HSBC is committed to high standards of corporate governance. HSBC Holdings plchas complied throughout 2006 with the applicable code provisions of the CombinedCode on Corporate Governance issued by the Financial Reporting Council ('theCombined Code'), save for code provision A.2.2 as the Group Chairman did not onappointment meet the Combined Code's independence criteria. On 26 May 2006 S KGreen, who had previously served as Group Chief Executive, became GroupChairman. In accordance with the provisions of the Combined Code in thecircumstance where a Chief Executive becomes Chairman, the Board consulted majorshareholders in advance of the appointment. Sir Brian Moffat, the seniorindependent non-executive Director and the Chairman of the Nomination Committee,wrote to all shareholders to explain the Board's decision and the reasons forthe appointment. HSBC Holdings plc has complied throughout 2006 with all applicable codeprovisions of the Code on Corporate Governance Practices in Appendix 14 to theRules Governing the Listing of Securities on The Stock Exchange of Hong KongLimited. The Board of HSBC Holdings plc has adopted a code of conduct for transactions inHSBC Group securities by Directors that complies with The Model Code in theListing Rules of the Financial Services Authority and with The Model Code forSecurities Transactions by Directors of Listed Issuers ('Hong Kong Model Code')set out in the Rules Governing the Listing of Securities on The Stock Exchangeof Hong Kong Limited save that The Stock Exchange of Hong Kong has grantedcertain waivers from strict compliance with the Hong Kong Model Code, primarilyto take into account accepted practices in the UK, particularly in respect ofemployee share plans. Following a specific enquiry, each Director has confirmedhe or she has complied with the code of conduct for transactions in HSBC Groupsecurities throughout 2006. The Directors of HSBC Holdings plc are:Baroness Dunn^, Sir Brian Moffat^^, S K Green, Lord Butler^^, R K F Ch'ien^^, JD Coombe^^, R A Fairhead^^, D J Flint, W K L Fung^^, M F Geoghegan, S Hintze^^,J W J Hughes-Hallett^^, Sir Mark Moody-Stuart^^, G Morgan^^, S W Newton^^, S MRobertson^^, H Sohmen^, and Sir Brian Williamson^^. ^ Non-executive Director^^ Independent non-executive Director The Group Audit Committee has reviewed the annual results for 2006. 17. Annual Review and Annual Report and Accounts The Annual Review 2006 and/or Annual Report and Accounts 2006 will be mailed toshareholders on or about Tuesday 3 April 2007. Copies may be obtained from GroupCommunications, HSBC Holdings plc, 8 Canada Square, London E14 5HQ, UnitedKingdom; Group Public Affairs, The Hongkong and Shanghai Banking CorporationLimited, 1 Queen's Road Central, Hong Kong; Employee Communications, HSBC -North America, 2700 Sanders Road, Prospect Heights, Illinois, 60070, USA; HSBCFrance, Direction de la Communication, 103 avenue des Champs Elysees, 75419Paris Cedex 08, France; or from the HSBC Group website - www.hsbc.com. Chinese translations of the Annual Review and Annual Report and Accounts may beobtained on request from Computershare Hong Kong Investor Services Limited,Hopewell Centre, 46th Floor, 183 Queen's Road East, Wan Chai, Hong Kong. A French translation of the Annual Review may be obtained on request from HSBCFrance, Direction de la Communication, 103 avenue des Champs Elysees, 75419Paris Cedex 08, France. The Annual Report and Accounts will be filed with the United States Securitiesand Exchange Commission. The Annual Report and Accounts will be available on the Stock Exchange of HongKong's website - www.hkex.com.hk. Custodians or nominees that wish to distribute copies of the Annual Review and/or Annual Report and Accounts to their clients may request copies for collectionby writing to Group Communications at the address given above. Custodians andnominees will need to request copies of the Annual Review 2006 and/or AnnualReport and Accounts 2006 no later than 12 March 2007. 18. Annual General Meeting The Annual General Meeting of the Company will be held at the Barbican Hall,Barbican Centre, London EC2 on Friday 25 May 2007 at 11 am. Notice of the meeting will be mailed to shareholders on or about Tuesday 3 April2007. 19. Interim results for 2007 The interim results for the six months to 30 June 2007 will be announced onMonday 30 July 2007. 20. Proposed dividends for 2007 The Board has adopted a policy of paying quarterly interim dividends on theordinary shares. Under this policy it is intended to have a pattern of threeequal interim dividends with a variable fourth interim dividend. It is envisagedthat the first interim dividend in respect of 2007 will be US$0.17 per ordinaryshare. The proposed timetables for the dividends on the ordinary shares inrespect of 2007 are: Interim dividends on the ordinary shares for 2007 First Second Third Fourth Announcement 30Apr07 30Jul07 05Nov07 03Mar08 ADSs quoted ex-dividend in New York 16May07 15Aug07 20Nov07 19Mar08 Shares quoted ex-dividend in London, Hong Kong and Bermuda 16May07 15Aug07 21Nov07 19Mar08 Record date and closure of Hong Kong Overseas Branch Register of shareholders for one day 18May07 17Aug07 23Nov07 25Mar08 Shares quoted ex-dividend in Paris 21May07 20Aug07 26Nov07 26Mar08 Payment date 05Jul07 04Oct07 16Jan08 07May08 21. News release Copies of this news release may be obtained from Group Communications, HSBCHoldings plc, 8 Canada Square, London E14 5HQ, United Kingdom; The Hongkong andShanghai Banking Corporation Limited, 1 Queen's Road Central, Hong Kong; HSBCBank USA, 452 Fifth Avenue, New York, NY 10018, USA; HSBC France, Direction dela Communication, 103 avenue des Champs Elysees, 75419 Paris Cedex 08, France.The news release will also be available on the HSBC Group website -www.hsbc.com. 22. For further information contact: London Hong KongRichard Beck David HallGroup Communications Director Head of Group Public Affairs (Asia)Telephone: +44 (0)20 7991 0633 Telephone: +852 2822 1133 Danielle Neben Gareth HewettManager Investor Relations Senior External Relations ManagerTelephone: +44 (0)20 7992 1938 Telephone: +852 2822 4929 Chicago ParisLisa Sodeika Chantal NedjibExecutive Vice President, Managing Director, Corporate CommunicationsCorporate Affairs Telephone: +33 1 40 70 7729Telephone: +1 847 564 6394 Linda Recupero Gilberte LombardExecutive Vice President, Investor Relations DirectorGroup Public Affairs Telephone: +33 1 40 70 2257Telephone: +1 212 525 3800 This information is provided by RNS The company news service from the London Stock Exchange