26 Aug 2015 16:38
Abbreviations
Abbreviation | Brief description |
1H14 | First half of 2014 |
1H15 | First half of 2015 |
A | |
ABS | Asset-backed security |
ADS | American Depositary Share |
AML | Anti-money laundering |
ARM | Adjustable-rate mortgage |
B | |
Basel Committee | Basel Committee on Banking Supervision |
Basel III | Basel Committee's reforms to strengthen global capital and liquidity rules |
BoCom | Bank of Communications Co., Limited, one of China's largest banks |
BRRD | Bank Recovery and Resolution Directive (EU) |
BSA | Bank Secrecy Act (US) |
BSM | Balance Sheet Management |
BVI | British Virgin Islands |
C | |
CA$ | Canadian dollars |
CAPM | Capital asset pricing model |
CCB | Capital conservation buffer |
CCyB | Countercyclical capital buffer |
CEA | Commodity Exchange Act (US) |
CET1 | Common equity tier 1 ratio |
CMB | Commercial Banking, a global business |
CML | Consumer and Mortgage Lending (US) |
CRD | Capital Requirements Directive |
CRS | Card and Retail Services |
CVA | Credit valuation adjustment |
D | |
DANY DPA | Two-year deferred prosecution agreement with the New York County District Attorney (US) |
DoJ | Department of Justice (US) |
DPA | Deferred prosecution agreement (US) |
DPF | Discretionary participation feature of insurance and investment contracts |
E | |
EBA | European Banking Authority |
EU | European Union |
Euribor | European Interbank Offered Rates |
F | |
FCA | Financial Conduct Authority (UK) |
FPC | Financial Policy Committee (UK) |
FRB | Federal Reserve Board (US) |
G | |
GB&M | Global Banking and Markets, a global business |
GDP | Gross domestic product |
GPB | Global Private Banking, a global business |
Group | HSBC Holdings together with its subsidiary undertakings |
G-SIB | Global systemically important bank |
G-SII | Global systemically important institutions |
H | |
HNAH | HSBC North America Holdings Inc. |
Hong Kong | Hong Kong Special Administrative Region of the People's Republic of China |
HSBC | HSBC Holdings together with its subsidiary undertakings |
HSBC Bank USA | HSBC Bank USA, N.A., HSBC's retail bank in the US |
HSBC Colombia | HSBC Bank (Colombia) S.A. |
HSBC Finance | HSBC Finance Corporation, the US consumer finance company (formerly Household International, Inc.) |
HSBC France | HSBC's French banking subsidiary, formerly CCF S.A. |
HSBC Holdings | HSBC Holdings plc, the parent company of HSBC |
HSBC USA | The sub-group, HSBC USA Inc and HSBC Bank USA, consolidated for liquidity purposes |
HSI | HSBC Securities (USA) Inc. |
HSSL | HSBC Securities Services (Luxembourg) |
HTIE | HSBC Institutional Trust Services (Ireland) Limited |
Abbreviation | Brief description |
I | |
IAS | International Accounting Standards |
IASB | International Accounting Standards Board |
IFRSs | International Financial Reporting Standards |
Industrial Bank | Industrial Bank Co. Limited, a national joint-stock bank in mainland China in which Hang Seng Bank Limited has a shareholding |
Investor Update | The Investor Update in June 2015 |
IRB | Internal ratings-based |
ISDA | International Swaps and Derivatives Association |
L | |
LCR | Liquidity coverage ratio |
LFRF | Liquidity and funding risk management framework |
LGD | Loss given default |
Libor | London Interbank Offered Rate |
LICs | Loan impairment charge and other credit risk provisions |
LTV | Loan to value |
M | |
Madoff Securities | Bernard L Madoff Investment Securities LLC |
Mainland China | People's Republic of China excluding Hong Kong and Macau |
MBS | US mortgage-backed security |
MENA | Middle East and North Africa |
MREL | EU minimum requirements for own funds and eligible liabilities |
N | |
NII | Net interest income |
NSFR | Net stable funding ratio |
O | |
OCC | Office of the Comptroller of the Currency (US) |
ORMF | Operational risk management framework |
P | |
PBT | Profit before tax |
PPI | Payment protection insurance product |
PRA | Prudential Regulation Authority (UK) |
Premier | HSBC Premier, HSBC's premium personal global banking service |
PVIF | Present value of in-force long-term insurance business and long-term investment contracts with DPF |
Q | |
QIS | Quantitative impact study |
R | |
RBWM | Retail Banking and Wealth Management, a global business |
Repo | Sale and repurchase transaction |
Reverse repo | Security purchased under commitments to sell |
RMB | Renminbi |
RMBS | Residential mortgage-backed securities |
RoRWA | Return on average risk-weighted assets |
RTS | Regulatory technical standards |
RWA | Risk-weighted assets |
S | |
ServCo group | Separately incorporated group of service companies planned in response to UK ring-fencing proposals |
SRB | Systematic risk buffer |
T | |
TLAC | Total loss absorbing capacity |
U | |
UAE | United Arab Emirates |
UK | United Kingdom |
US | United States of America |
US DPA | Five-year deferred prosecution agreement with the Department of Justice and others (US) |
V | |
VaR | Value at risk |
VIU | Value in use |
Glossary
Terminology used in this Interim Report is consistent with that used in our Annual Report and Accounts 2014, where a glossary of terms can be found.
Index
A |
Abbreviations 152 |
Accounting |
future developments 107 |
policies 107 |
Adjusted performance 15 |
Anti-money laundering investigations 134 |
Areas of special interest 59 |
Asia |
adjusted/reported reconciliation 50 |
assets 42 |
balance sheet data 110 |
by country 44, 48, 72 |
cost efficiency ratios 44 |
customer accounts 44 |
impaired loans 71 |
impairment allowances/charges 66 |
loans and advances 44, 61, 68, 69 |
net operating income 109 |
profit before tax 44, 48, 109 |
renegotiated loans 64 |
risk-weighted assets 42 |
snapshot 5 |
staff numbers 44 |
Asset-backed securities 75 |
Assets |
by geographical region 42 |
by global business 33, 39 |
charged as security 123 |
held for sale 39, 62, 122 |
maturity analysis 125 |
movement in 30 |
risk-weighted 3 |
total 3, 29, 103 |
trading 110 |
Associates and joint ventures (income from) 18, 28, 123 |
adjusted/reported reconciliation 50, 53 |
Auditor's review report 141 |
B |
Backtesting 79 |
Balance sheet |
consolidated 29, 103 |
data 39 |
insurance manufacturing subsidiaries 84 |
movement 30 |
Balance Sheet Management 79 |
Bank of Communications 123 |
Basis of preparation 33, 107 |
Brazil 18, 122 |
Brazilian labour and fiscal claims 129, 138 |
C |
Capital |
buffers 98 |
commitments 130 |
composition 95 |
management 87 |
overall requirements 98 |
overview 87 |
ratios 14, 87 |
regulatory 29, 87, 95 |
source and application of regulatory capital 94 |
subordinated loan 29 |
total regulatory 87 |
Cash flows |
consolidated statement 104 |
Cautionary statement regarding forward-looking statements 151 |
Client assets 37 |
Collateral 123 |
Combined customer lending and deposits 30 |
Commercial Banking 35 |
adjusted/reported reconciliation 53 |
cost efficiency ratios 27 |
management view 35 |
snapshot 4 |
Commitments 130 |
Compliance risk 83 |
Compliance with IFRSs 107 |
Composition of Group (changes in) 107 |
Consumer Credit Act (UK) 129 |
Contents - inside front cover |
Contingent liabilities, contractual commitments and guarantees 130 |
Copies of the Interim Report 149 |
Corporate governance 147 |
Counterparty risk 92 |
Credit default swap regulatory investigation and litigation 138 |
Credit quality 62 |
Credit risk 60 |
risk-weighted assets 89 |
Customer accounts |
by country 31 |
by global business 39 |
Customer lending and deposits (combined) 30 |
D |
Dealings in HSBC Holdings shares 146 |
Deferred tax 108 |
Defined terms - inside front cover |
Derivatives 118 |
by product contract type 118 |
credit 119 |
hedging instruments 119 |
interest rate 129 |
trading 119 |
Directors |
Board changes 8 |
changes in details 148 |
interests 142 |
responsibility statement 140 |
Disposal groups 122 |
Dividends 108, 146, 147 |
E |
Earnings per share 101, 149 |
Earnings release 147 |
Equity 3, 29, 103 |
movement in 31 |
Estimates and judgements 107 |
Europe |
adjusted/reported reconciliation 50 |
assets 42 |
balance sheet data 110 |
by country 43, 48, 72 |
cost efficiency ratios 43 |
customer accounts 43 |
impaired loans 71 |
impairment allowances/charges 66 |
loans and advances 43, 61, 68, 69 |
net operating income 109 |
profit before tax 43, 48, 109 |
renegotiated loans 63 |
risk-weighted assets 42 |
snapshot 5 |
staff numbers 43 |
Events after the balance sheet date 139 |
F |
Fair values |
adjustments 111 |
movements 113 |
of derivatives 118 |
of financial instruments at fair value 111 |
of financial instruments not at fair value 117 |
significant unobservable assumptions 114 |
valuation bases 112 |
Fee income (net) 20 |
Final results 147 |
Financial assets |
designated at fair value 117 |
Financial crime compliance 59 |
Financial highlights 2 |
Financial instruments |
at fair value 111 |
credit quality 62 |
net income from 22 |
not at fair value 117 |
Financial investments 120 |
Footnotes 56, 86, 106 |
Forbearance 63 |
Foreign currency translation differences 15 |
Foreign exchange rates 29 |
investigations and litigation 137 |
Funding sources 77 |
Funds under management 50 |
G |
Gains less losses from financial investments 22 |
significant items and currency translation 23 |
Geographical regions 42 |
Global Banking and Markets 36 |
adjusted/reported reconciliation 53 |
client-facing 33 |
cost efficiency ratios 27 |
fair value adjustments 112 |
management view 36 |
snapshot 4 |
Global businesses 33 |
Global Private Banking 37 |
adjusted/reported reconciliation 53 |
cost efficiency ratios 27 |
snapshot 4 |
Global Standards 7, 12 |
Glossary 153 |
Going concern 107, 148 |
Goodwill impairment 139 |
Greece 74 |
Group Chairman's Statement 6 |
Group Chief Executive's Review 9 |
H |
Headquarters 8 |
Held for sale 39, 62, 122 |
Highlights 2 |
HSBC Finance 71 |
HSBC Bank USA 71 |
HSBC Holdings 81 |
I |
Impairment |
allowances and charges 66, 68 |
by geographical region 66 |
charges and other credit risk provisions 25 |
constant currency/reported profit 71 |
impaired loans 63, 71 |
Income from financial instruments designated at fair value (net) 21 |
Income statement |
consolidated 16, 101 |
Information security 82 |
Insurance |
asset and liability matching 84 |
balance sheet by type of contract 84 |
claims and benefits paid and movement in liabilities topolicyholders (net) 24 |
net insurance premium income 23 |
risk 85 |
Interest-earning assets 19 |
Interest expense 20 |
Interest income (net) 19 |
sensitivity 80 |
significant items and currency translation 19 |
Interest rate derivatives 129 |
Interim Report 2015 139 |
Investor update 9 |
L |
Latin America |
adjusted/reported reconciliation 50 |
assets 42 |
balance sheet data 110 |
by country 47, 48, 72 |
cost efficiency ratios 47 |
customer accounts 47 |
impaired loans 71 |
impairment allowances/charges 66 |
loans and advances 47, 61, 68, 69 |
net operating income 109 |
profit before tax 47, 48, 109 |
renegotiated loans 63 |
risk-weighted assets 42 |
snapshot 3 |
staff numbers 47 |
Legal proceedings 130 |
Leverage ratio 97 |
Liabilities |
maturity analysis 125 |
movement in 30 |
total 29, 103 |
trading 124 |
Libor investigation 136 |
Liquidity and funding 76 |
management 76 |
regulation 76 |
Loans and advances |
by country/region 61, 72 |
by credit quality 62 |
by global business 39 |
by industry sector 61, 72 |
exposure 61 |
held for sale 39 |
impaired 63, 71 |
mortgage lending 70 |
personal lending 69 |
renegotiated 63 |
wholesale lending 68 |
Loan impairment charges and other credit risk provisions 17, 25, 66 |
adjusted/reported reconciliation 50, 53 |
on held for sale 62 |
Loss absorbing capacity 100 |
M |
Madoff 131 |
Margin 19 |
Market capitalisation 3 |
Market risk 78 |
measures applicable to parent 81 |
Middle East and North Africa |
adjusted/reported reconciliation 50 |
assets 42 |
balance sheet data 110 |
by country 45, 48, 72 |
cost efficiency ratios 45 |
customer accounts 45 |
impaired loans 71 |
impairment allowances/charges 66 |
loans and advances 45, 61, 68, 69 |
net operating income 109 |
profit before tax 45, 48, 109 |
renegotiated loans 63 |
risk-weighted assets 42 |
snapshot 5 |
staff numbers 45 |
Monitor 13 |
Mortgage lending 70 |
Mortgage-related investigations (US) 133 |
Mortgage securitisation activity (US) 134 |
N |
Non-GAAP measures 15 |
Non-trading portfolios 79 |
North America |
adjusted/reported reconciliation 50 |
assets 42 |
balance sheet data 110 |
by country 46, 48, 72 |
cost efficiency ratios 46 |
customer accounts 46 |
impaired loans 71 |
impairment allowances/charges 66 |
loans and advances 46, 61, 68, 69 |
net operating income 109 |
profit before tax 46, 48, 109 |
renegotiated loans 63 |
risk-weighted assets 42 |
snapshot 5 |
staff numbers 46 |
Notifiable interests in share capital 146 |
O |
Offices 1 |
Oil and gas 59 |
Operating expenses 26 |
adjusted/reported reconciliation 50, 53 |
by geographical region 43 to 47 |
by global business 34 to 38 |
change-the-bank 26 |
run-the-bank 26 |
significant items and currency translation 26 |
Operating income (other) 23 |
significant items and currency translation 24 |
Operational risk 82 |
'Other' segment 38 |
adjusted/reported reconciliation 53 |
Outlook 8, 10 |
P |
Payment protection insurance 128 |
Performance |
adjusted 16 |
measurement 1 |
reported 16 |
Personal lending 69 |
Pillar 2 and the PRA buffer 98 |
Precious metals litigation 138 |
Preferred securities 29 |
Profit before tax |
adjusted 3, 9 |
adjusted/reported reconciliation 50, 53 |
attributable 16, 101 |
by country 48 |
by geographical region 42, 43 to 47 |
by global business 33 to 38, 39 |
consolidated 101 |
reported 3, 9 |
PRA buffer 98 |
Provisions 128 |
Purpose 1 |
PVIF 23 |
R |
Ratios |
advances to core funding 76 |
advances to deposits 14 |
capital (total) 14, 87 |
common equity tier 1 3, 87 |
core tier 1 ratio 87 |
cost efficiency 14, 28, 43 to 47 |
customer advances to customer accounts 29 |
earnings per share 101 |
leverage 97 |
LICs to advances 14 |
return on average risk-weighted assets 3, 31 |
by geographical region 43 to 47 |
by global business 34 to 37 |
return on equity 3, 14 |
shareholders' equity to total assets 29 |
stressed coverage 77 |
Recovery and resolution 100 |
Regulatory |
capital 29, 87 |
capital buffers 97 |
developments 97 |
review of consumer enhancement services products 139 |
risks 58 |
source and application 94 |
stress testing 98 |
Related parties 139 |
Representations and warranties 75 |
Reputational risk 83 |
Responsibility statement 140 |
Retail Banking and Wealth Management 34 |
adjusted/reported reconciliation 53 |
cost efficiency ratios 27 |
management view 34 |
Principal RBWM 34 |
snapshot 4 |
Revenue 17 |
adjusted/reported reconciliation 50, 53 |
by geographical region 43 to 47 |
by global business 34 to 38 |
items (significant) 50 to 55 |
Review of performance 6, 9, 16 |
Ring-fencing 8 |
Risks |
appetite 14 |
compliance 83 |
counterparty credit risk 92 |
credit 60, 89 |
data management 58 |
dispute 58 |
economic outlook 58 |
factors 57 |
foreign exchange 81 |
fraud 82 |
geopolitical 58 |
information security 58, 82 |
insurance operations 84 |
interest rate repricing gap 81 |
liquidity and funding 76 |
managing risk 13, 57 |
market 78 |
model 58 |
non-trading interest rate 79 |
operational 82 |
complexity 82 |
people 58 |
profile 57 |
regulatory 58 |
reputational 83 | |
third parties 58, 83 | |
top and emerging 57 | |
Risk-weighted assets 3, 29, 88 | |
adjusted/reported reconciliation 32 | |
by geographical region 42, 89 | |
by global business 33, 88 | |
developments 99 | |
S | |
Securities litigation 130 | |
Securitisation 75 | |
Segmental analysis 109 | |
Sensitivity of fair values 115 | |
Sensitivity of net interest income 80 | |
Share capital - notifiable interests 146 | |
Shareholder enquiries 149 | |
Share information 3 | |
Share option plans | |
Directors' interests 143 | |
discretionary 146 | |
employee share plans 145 | |
Significant items 15, 50 | |
Six filters 12 | |
Snapshot | |
Global business 4 | |
Regional 5 | |
Spread 19 | |
Staff numbers 1, 26 | |
Statement of changes in equity (consolidated) 105 | |
Statement of comprehensive income (consolidated) 102 | |
Stock symbols 149 | |
Strategic actions 11 |
Strategy 1, 2, 11 |
Stress testing 59, 98 |
Structural banking reform 12, 100 |
Swiss Private Bank 59 |
T |
Targets 10, 13 |
Tax 18, 28, 108 |
US tax-related investigations 135 |
Telephone and online share-dealing service 148 |
Total shareholder return 3 |
Trading |
assets 110 |
derivatives 119 |
income (net) 21 |
significant items and currency translation 21 |
liabilities 124 |
portfolios 78 |
Turkey 18 |
U |
UK leverage ratio framework 99 |
V |
Value at risk 78 |
W |
Whistleblowing 83 |
Wholesale funding 76 |
Wholesale lending 68 |
Y |
Yield 19 |