HSBC Holdings Regulatory News (HSBA)

Half-year to

30 Jun 2015

30 Jun 2014

31 Dec 2014

$bn

$bn

$bn

Funds under management by business

Global Asset Management

440

465

445

Global Private Banking

280

286

275

Affiliates

6

6

5

Other

237

207

229

963

964

954

440

At beginning of period

954

921

964

Net new money

3

18

20

Value change

32

21

19

Exchange and other

(26)

4

(49)

At end of period

963

964

954

Half-year to 30 June 2015

Europe

Asia

MENA

North

America

Latin

America

Total

UK

Hong

Kong

$m

$m

$m

$m

$m

$m

$m

$m

Revenue15

Reported

11,469

14,065

1,289

4,126

3,558

32,943

8,246

9,130

Significant items

(580)

(1,419)

(3)

(157)

(12)

(2,171)

(539)

(1,380)

- debit valuation adjustment ('DVA') on derivative contracts

(79)

(50)

(1)

(22)

(13)

(165)

(67)

(14)

- fair value movements on non-qualifying hedges22

23

-

-

21

1

45

44

5

- releases arising from the ongoing review of compliance with the Consumer Credit Act in the UK

(12)

-

-

-

-

(12)

(12)

-

- gain on the partial sale of shareholding in Industrial Bank

-

(1,372)

-

-

-

(1,372)

-

(1,372)

- gain on sale of several tranches of real estate secured accounts in the US

-

-

-

(17)

-

(17)

-

-

- own credit spread23

(512)

3

(2)

(139)

-

(650)

(504)

1

2

Adjusted

10,889

12,646

1,286

3,969

3,546

30,772

7,707

7,750

Loan impairment charges and other credit risk provisions ('LIC's)

Reported

(288)

(246)

(31)

(153)

(721)

(1,439)

(72)

(58)

Adjusted

(288)

(246)

(31)

(153)

(721)

(1,439)

(72)

(58)

Operating expenses

Reported

(8,978)

(5,457)

(624)

(3,287)

(2,405)

(19,187)

(6,753)

(2,855)

Significant items

1,132

8

1

398

6

1,545

967

6

- restructuring and other related costs

68

8

1

34

6

117

50

6

- regulatory provisions in GPB

147

-

-

-

-

147

-

-

- settlements and provisions in connection with legal matters

780

-

-

364

-

1,144

780

-

- UK customer redress programmes

137

-

-

-

-

137

137

-

Adjusted

(7,846)

(5,449)

(623)

(2,889)

(2,399)

(17,642)

(5,786)

(2,849)

Share of profit in associates and joint ventures

Reported

2

1,038

267

4

-

1,311

4

16

Adjusted

2

1,038

267

4

-

1,311

4

16

Profit before tax

Reported

2,205

9,400

901

690

432

13,628

1,425

6,233

Significant items

552

(1,411)

(2)

241

(6)

(626)

428

(1,374)

- revenue

(580)

(1,419)

(3)

(157)

(12)

(2,171)

(539)

(1,380)

- operating expenses

1,132

8

1

398

6

1,545

967

6

Adjusted

2,757

7,989

899

931

426

13,002

1,853

4,859

Half-year to 30 June 2014

Europe

Asia

MENA

North

America

Latin

America

Total

UK

Hong

Kong

$m

$m

$m

$m

$m

$m

$m

$m

Revenue15

Reported

10,873

12,107

1,294

4,067

4,265

31,167

7,658

7,220

Currency translation24

(1,196)

(254)

(23)

(107)

(781)

(2,326)

(646)

4

Significant items

749

(334)

(27)

248

(21)

615

643

(404)

- DVA on derivative contracts

79

53

3

14

6

155

57

15

- fair value movements on non-qualifying hedges22

144

4

-

174

-

322

94

10

- provisions arising from the ongoing review of compliance with the Consumer Credit Act in the UK

367

-

-

-

-

367

367

-

- own credit spread23

159

5

6

45

-

215

125

(1)

- loss on sale of several tranches of realestate secured accounts in the US

-

-

-

15

-

15

-

-

- gain on sale of shareholding in Bank of Shanghai

-

(428)

-

-

-

(428)

-

(428)

- gain on sale arising from HSBC Latin America Holdings UK Limited's disposal of HSBC Bank (Colombia) S.A. ('HSBC Colombia')

-

-

-

-

(18)

(18)

-

-

- reclassification loss in respect of our holding in Vietnam Technological & Commercial Joint Stock Bank following the loss of significant influence

-

32

-

-

-

32

-

-

- trading results - HSBC Colombia

-

-

-

-

(9)

(9)

-

-

- trading results - HSBC Bank Middle East Limited's Pakistan operations

-

-

(8)

-

-

(8)

-

-

- trading results - HSBC Bank Middle East Limited's banking business in Jordan

-

-

(28)

-

-

(28)

-

-

Adjusted

10,426

11,519

1,244

4,208

3,463

29,456

7,655

6,820

LICs

Reported

(266)

(216)

50

(411)

(998)

(1,841)

30

(100)

Currency translation

50

8

1

6

202

267

(2)

-

Significant items

-

-

-

-

2

2

-

-

- trading results - HSBC Colombia

−

−

−

−

2

2

−

−

Adjusted

(216)

(208)

51

(405)

(794)

(1,572)

28

(100)

Operating expenses

Reported

(8,352)

(5,009)

(614)

(2,837)

(2,893)

(18,266)

(5,995)

(2,597)

Currency translation24

787

129

7

53

538

1,479

415

-

Significant items

287

2

26

13

23

351

274

3

- restructuring and other related costs

53

2

-

13

14

82

40

3

- UK customer redress programmes

234

-

-

-

-

234

234

-

- trading results - HSBC Colombia

-

-

-

-

9

9

-

-

- trading results - HSBC Bank Middle East Limited's Pakistan operations

-

-

9

-

-

9

-

-

- trading results - HSBC Bank Middle East Limited's banking business in Jordan

-

-

17

-

-

17

-

-

Adjusted

(7,278)

(4,878)

(581)

(2,771)

(2,332)

(16,436)

(5,306)

(2,594)

Share of profit in associates and joint ventures

Reported

3

1,012

259

6

−

1,280

3

25

Currency translation

4

(9)

-

(1)

-

(6)

2

-

Adjusted

7

1,003

259

5

-

1,274

5

25

Profit before tax

Reported

2,258

7,894

989

825

374

12,340

1,696

4,548

Currency translation

(355)

(126)

(15)

(49)

(41)

(586)

(231)

4

Significant items

1,036

(332)

(1)

261

4

968

917

(401)

- revenue

749

(334)

(27)

248

(21)

615

643

(404)

- LICs

-

-

-

-

2

2

-

-

- operating expenses

287

2

26

13

23

351

274

3

Adjusted

2,939

7,436

973

1,037

337

12,722

2,382

4,151

Half-year to 31 December 2014

Europe

Asia

MENA

North

America

Latin

America

Total

UK

Hong

Kong

$m

$m

$m

$m

$m

$m

$m

$m

Revenue15

Reported

10,698

11,570

1,254

4,085

4,007

30,081

8,069

6,624

Currency translation24

(722)

(229)

(18)

(88)

(677)

(1,698)

(416)

(1)

Significant items

(41)

286

24

(132)

2

139

(290)

285

- DVA on derivative contracts

155

16

2

2

2

177

146

11

- fair value movements on non-qualifying hedges22

91

-

-

128

-

219

(102)

1

- provisions arising from the ongoing review of compliance with the Consumer Credit Act in the UK

265

-

-

-

-

265

265

- impairment of our investment in Industrial Bank

-

271

-

-

-

271

-

271

- own credit spread23

(552)

(1)

-

(79)

-

(632)

(599)

2

- gain on sale of several tranches of realestate secured accounts in the US

-

-

-

(183)

-

(183)

-

-

- loss on sale arising from HSBC Bank Middle East Limited's disposal of its operations in Pakistan

-

-

27

-

-

27

-

-

- trading results - HSBC Bank Middle East Limited's Pakistan operations

-

-

(5)

-

-

(5)

-

-

Adjusted

9,935

11,627

1,260

3,865

3,332

28,522

7,363

6,908

LICs

Reported

(498)

(431)

(44)

89

(1,126)

(2,010)

(244)

(220)

Currency translation

69

10

(2)

4

204

285

28

-

Significant items

-

-

(2)

-

-

(2)

-

-

- trading results - HSBC Bank Middle East Limited's Pakistan operations

-

-

(2)

-

-

(2)

−

−

Adjusted

(429)

(421)

(48)

93

(922)

(1,727)

(216)

(220)

Operating expenses

Reported

(11,865)

(5,418)

(602)

(3,592)

(3,039)

(22,983)

(9,581)

(2,827)

Currency translation24

637

118

6

46

516

1,287

395

-

Significant items

2,314

56

7

565

102

3,044

2,279

53

- restructuring and other related costs

70

7

2

15

102

196

51

4

- regulatory provisions in GPB

16