Interim Report - 23 of 28 | RNS | Ticker

Interim Report - 23 of 28

RNS Announcement

RNS Number : 9088L

HSBC Holdings PLC

16 August 2013

Consolidated income statement for the half-year to 30 June 2013

		Half-year to
		30 June 2013	30 June 2012	31 December 2012
	Notes	US$m	US$m	US$m

Interest income ..................................................................................		25,740	29,549	27,153
Interest expense .................................................................................		(7,921)	(10,173)	(8,857)

Net interest income ............................................................................		17,819	19,376	18,296

Fee income .........................................................................................		10,148	10,281	9,868
Fee expense ........................................................................................		(1,744)	(1,974)	(1,745)

Net fee income ...................................................................................		8,404	8,307	8,123

Trading income excluding net interest income ....................................		5,230	3,134	1,274
Net interest income on trading activities ............................................		1,132	1,385	1,298

Net trading income .............................................................................		6,362	4,519	2,572

Changes in fair value of long-term debt issued and related derivatives .		(1,419)	(1,810)	(2,517)
Net income from other financial instruments designated at fair value .		222	627	1,474

Net expense from financial instruments designated at fair value .........		(1,197)	(1,183)	(1,043)
Gains less losses from financial investments .......................................		1,856	1,023	166
Dividend income ................................................................................		107	103	118
Net earned insurance premiums ..........................................................		6,226	6,696	6,348
Gains on disposal of US branch network, US cards business and Ping An Insurance (Group) Company of China, Ltd .......................		-	3,809	3,215
Other operating income .....................................................................		946	1,022	1,078

Total operating income ..................................................................		40,523	43,672	38,873

Net insurance claims incurred and movement in liabilities to policyholders .............................................................................		(6,151)	(6,775)	(7,440)

Net operating income before loan impairment charges and other credit risk provisions .......................................................		34,372	36,897	31,433

Loan impairment charges and other credit risk provisions ..................		(3,116)	(4,799)	(3,512)

Net operating income .....................................................................		31,256	32,098	27,921

Employee compensation and benefits .................................................		(9,496)	(10,905)	(9,586)
General and administrative expenses ...................................................		(7,727)	(9,125)	(10,858)
Depreciation and impairment of property, plant and equipment .........		(699)	(706)	(778)
Amortisation and impairment of intangible assets ..............................		(477)	(468)	(501)

Total operating expenses ...............................................................		(18,399)	(21,204)	(21,723)

Operating profit ..............................................................................		12,857	10,894	6,198

Share of profit in associates and joint ventures ...................................		1,214	1,843	1,714

Profit before tax ..............................................................................		14,071	12,737	7,912

Tax expense .......................................................................................	6	(2,725)	(3,629)	(1,686)

Profit for the period ........................................................................		11,346	9,108	6,226

Profit attributable to shareholders of the parent company ..................		10,284	8,438	5,589
Profit attributable to non-controlling interests ...................................		1,062	670	637

		US$	US$	US$

Basic earnings per ordinary share ........................................................	4	0.54	0.45	0.29
Diluted earnings per ordinary share .....................................................	4	0.54	0.45	0.29

The accompanying notes on pages 216 to 263 form an integral part of these financial statements¹.

For footnote, see page 215.

Consolidated statement of comprehensive income for the half-year to 30 June 2013

	Half-year to
	30 June	30 June	31 December
	2013	2012	2012
	US$m	US$m	US$m
		,
Profit for the period .....................................................................................	11,346	9,108	6,226

Other comprehensive income/(expense)
Items that will be reclassified subsequently to profit or loss when specific conditions are met:
Available-for-sale investments .....................................................................	(1,818)	1,593	3,477
- fair value gains/(losses)² ........................................................................	(1,609)	2,362	4,034
- fair value gains transferred to income statement on disposal .................	(1,025)	(1,017)	(855)
- amounts transferred to the income statement in respect of impairment losses .................................................................................	206	450	552
- income taxes ........................................................................................	610	(202)	(254)

Cash flow hedges ..........................................................................................	(198)	(6)	115
- fair value gains/(losses) .........................................................................	35	(307)	859
- fair value (gains)/losses transferred to income statement .......................	(258)	245	(668)
- income taxes ........................................................................................	25	56	(76)

Share of other comprehensive income/(expense) of associates and joint ventures .......................................................................................................	1	338	195
- share for the year..................................................................................	37	338	(27)
- reclassified to income statement on disposal..........................................	(36)	-	222

Exchange differences ....................................................................................	(4,525)	(392)	1,409
- foreign exchange gains reclassified to income statement on disposal of a foreign operation ..................................................................................	(290)	-	(1,128)
- other exchange difference .....................................................................	(4,235)	(392)	2,537

Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit liability/asset ...........................................	(959)	(469)	274
- before income taxes ..............................................................................	(1,223)	(619)	228
- income taxes ........................................................................................	264	150	46

Other comprehensive income/(expense) for the period, net of tax ...............	(7,499)	1,064	5,470

Total comprehensive income for the period .................................................	3,847	10,172	11,696

Total comprehensive income for the period attributable to:
- shareholders of the parent company .....................................................	3,072	9,515	10,940
- non-controlling interests ......................................................................	775	657	756

	3,847	10,172	11,696

The accompanying notes on pages 216 to 263 form an integral part of these financial statements¹.

For footnotes, see page 215.

Consolidated balance sheet at 30 June 2013

		At 30 June	At 30 June	At 31 December
		2013	2012	2012
	Notes	US$m	US$m	US$m
Assets

Cash and balances at central banks ......................................................		148,285	147,911	141,532
Items in the course of collection from other banks .............................		8,416	11,075	7,303
Hong Kong Government certificates of indebtedness ..........................		24,275	21,283	22,743
Trading assets .....................................................................................	7	432,601	391,371	408,811
Financial assets designated at fair value ...............................................	10	35,318	32,310	33,582
Derivatives .........................................................................................	11	299,213	355,934	357,450
Loans and advances to banks ..............................................................		185,122	182,191	152,546
Loans and advances to customers .......................................................		969,382	974,985	997,623
Financial investments .........................................................................	12	404,214	393,736	421,101
Assets held for sale .............................................................................	13	20,377	12,383	19,269
Other assets ........................................................................................		45,135	47,115	54,716
Current tax assets ...............................................................................		1,207	1,312	515
Prepayments and accrued income .......................................................		9,781	9,736	9,502
Interests in associates and joint ventures ............................................		15,676	23,790	17,834
Goodwill and intangible assets .............................................................		28,537	28,916	29,853
Property, plant and equipment ...........................................................		10,572	10,642	10,588
Deferred tax assets .............................................................................		7,205	7,644	7,570

Total assets ........................................................................................		2,645,316	2,652,334	2,692,538

Liabilities and equity

Liabilities
Hong Kong currency notes in circulation ............................................		24,275	21,283	22,742
Deposits by banks ...............................................................................		110,023	123,553	107,429
Customer accounts .............................................................................		1,316,182	1,278,489	1,340,014
Items in the course of transmission to other banks .............................		9,364	11,321	7,138
Trading liabilities ................................................................................	14	342,432	308,564	304,563
Financial liabilities designated at fair value ..........................................	15	84,254	87,593	87,720
Derivatives .........................................................................................	11	293,669	355,952	358,886
Debt securities in issue ........................................................................		109,389	125,543	119,461
Liabilities of disposal groups held for sale ...........................................		19,519	12,599	5,018
Other liabilities ...................................................................................		33,511	35,119	33,862
Current tax liabilities ..........................................................................		1,586	3,462	1,452
Liabilities under insurance contracts ...................................................		69,771	62,861	68,195
Accruals and deferred income .............................................................		11,292	11,727	13,184
Provisions ..........................................................................................	16	4,787	5,259	5,252
Deferred tax liabilities ........................................................................		864	1,585	1,109
Retirement benefit liabilities ...............................................................		3,216	3,962	3,905
Subordinated liabilities ........................................................................		28,821	29,696	29,479

Total liabilities ...................................................................................		2,462,955	2,478,568	2,509,409

Equity
Called up share capital ........................................................................		9,313	9,081	9,238
Share premium account ......................................................................		11,071	9,841	10,084
Other equity instruments ....................................................................		5,851	5,851	5,851
Other reserves ....................................................................................		23,503	24,806	29,722
Retained earnings ...............................................................................		124,332	116,266	120,347

Total shareholders' equity ..................................................................		174,070	165,845	175,242
Non-controlling interests ...................................................................		8,291	7,921	7,887

Total equity .......................................................................................		182,361	173,766	183,129

Total equity and liabilities ..................................................................		2,645,316	2,652,334	2,692,538

The accompanying notes on pages 216 to 263 form an integral part of these financial statements¹.

For footnote, see page 215.

Consolidated statement of cash flows for the half-year to 30 June 2013

		Half-year to
	Notes	30 June 2013	30 June 2012	31 December 2012
		US$m	US$m	US$m

Cash flows from operating activities
Profit before tax ..............................................................................		14,071	12,737	7,912
-....	-
Adjustments for:
- net gain from investing activities .............................................		(1,435)	(1,481)	(613)
- share of profit in associates and joint ventures .........................		(1,214)	(1,843)	(1,714)
- gain on disposal of US branch network, US cards business and Ping An Insurance (Group) Company of China, Ltd ('Ping An')..........................................................................................		-	(3,809)	(3,215)
- other non-cash items included in profit before tax ....................	20	5,091	10,420	9,358
- change in operating assets ........................................................	20	20,921	(47,658)	(68,863)
- change in operating liabilities ...................................................	20	(21,070)	40,766	48,304
- elimination of exchange differences³ ........................................		4,877	3,504	(7,130)
- dividends received from associates ............................................		665	278	211
- contributions paid to defined benefit plans ................................		(494)	(437)	(296)
- tax paid ....................................................................................		(2,125)	(2,304)	(3,283)

Net cash generated from operating activities ....................................		19,287	10,173	(19,329)

Cash flows from investing activities
Purchase of financial investments ....................................................		(171,175)	(177,427)	(165,547)
Proceeds from the sale and maturity of financial investments ..........		181,706	188,242	141,684
Purchase of property, plant and equipment ......................................		(1,155)	(683)	(635)
Proceeds from the sale of property, plant and equipment .................		164	76	165
Proceeds from the sale of loan portfolios .........................................		3,193	-	-
Net purchase of intangible assets ......................................................		(416)	(507)	(501)
Net cash inflow from disposal of US branch network and cards business ........................................................................................		-	23,484	(2,579)
Net cash inflow/(outflow) from disposal of other subsidiaries and businesses .....................................................................................		287	(1,537)	674
Net cash inflow/(outflow) from acquisition of or increase in stake of associates .....................................................................................		(25)	(13)	(1,791)
Proceeds from disposal of Ping An ...................................................	20	7,413	-	1,954
Proceeds from disposal of other associates and joint ventures ..........		367	288	306

Net cash generated from/(used in) investing activities ......................		20,359	31,923	(26,270)

Cash flows from financing activities
Issue of ordinary share capital ..........................................................		169	263	331
Net sales/(purchases) of own shares for market-making and investment purposes .....................................................................		(33)	25	(50)
Subordinated loan capital issued ........................................................		-	-	37
Subordinated loan capital repaid .......................................................		(45)	(1,453)	(301)
Net cash outflow from change in stake in subsidiaries .......................		1	-	(14)
Dividends paid to ordinary shareholders of the parent company .......		(2,799)	(3,161)	(2,764)
Dividends paid to non-controlling interests ......................................		(331)	(325)	(247)
Dividends paid to holders of other equity instruments ......................		(286)	(286)	(287)

Net cash used in financing activities .................................................		(3,324)	(4,937)	(3,295)

Net increase/(decrease) in cash and cash equivalents .............		36,322	37,159	(48,894)

Cash and cash equivalents at the beginning of the period ..................		315,308	325,449	359,007
Exchange differences in respect of cash and cash equivalents ...........		(8,259)	(3,601)	5,195

Cash and cash equivalents at the end of the period ...........................	20	343,371	359,007	315,308

The accompanying notes on pages 216 to 263 form an integral part of these financial statements¹.

For footnotes, see page 215.

Consolidated statement of changes in equity for the half-year to 30 June 2013

	Half-year to 30 June 2013
					Other reserves
	Called up share capital	Share premium⁴	Other equity instru- ments	Retained earnings ^5,6	Available- for-sale fair value reserve	Cash flow hedging reserve⁷	Foreign exchange reserve	Merger reserve^5,8	Total share- holders' equity	Non- controlling interests	Total equity
	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m

At 1 January 2013 ...........................................	9,238	10,084	5,851	120,347	1,649	13	752	27,308	175,242	7,887	183,129
Profit for the period ........................................	-	-	-	10,284	-	-	-	-	10,284	1,062	11,346

Other comprehensive income (net of tax) .......	-	-	-	(993)	(1,635)	(197)	(4,387)	-	(7,212)	(287)	(7,499)
Available-for-sale investments .........................	-	-	-	-	(1,635)	-	-	-	(1,635)	(183)	(1,818)
Cash flow hedges ..............................................	-	-	-	-	-	(197)	-	-	(197)	(1)	(198)
Remeasurement of defined benefit liability/asset .....................................................................	-	-	-	(994)	-	-	-	-	(994)	35	(959)
Share of other comprehensive income of associates and joint ventures .........................................	-	-	-	1	-	-	-	-	1	-	1
Exchange differences .......................................	-	-	-	-	-	-	(4,387)	-	(4,387)	(138)	(4,525)


Total comprehensive income for the period ....	-	-	-	9,291	(1,635)	(197)	(4,387)	-	3,072	775	3,847

Shares issued under employee remuneration and share plans ...................................................	50	1,012	-	(893)	-	-	-	-	169	-	169
Shares issued in lieu of dividends and amounts arising thereon⁴ .......................................................	25	(25)	-	707	-	-	-	-	707	-	707
Dividends to shareholders⁹ ................................	-	-	-	(5,487)	-	-	-	-	(5,487)	(400)	(5,887)
Tax credits on distributions ..............................	-	-	-	54	-	-	-	-	54	-	54
Own shares adjustment .....................................	-	-	-	(36)	-	-	-	-	(36)	-	(36)
Cost of share-based payment arrangements ......	-	-	-	355	-	-	-	-	355	-	355
Income taxes on share-based payments ............	-	-	-	9	-	-	-	-	9	-	9
Other movements ............................................	-	-	-	(15)	-	-	-	-	(15)	22	7
Acquisition and disposal of subsidiaries .............	-	-	-	-	-	-	-	-	-	6	6
Changes in ownership interests in subsidiaries that did not result in loss of control ..........................	-	-	-	-	-	-	-	-	-	1	1
	-
At 30 June 2013 ..............................................	9,313	11,071	5,851	124,332	14	(184)	(3,635)	27,308	174,070	8,291	182,361

	Half-year to 30 June 2012
					Other reserves
	Called up share capital	Share premium⁴	Other equity instru- ments	Retained earnings ^5,6	Available- for-sale fair value reserve	Cash flow hedging reserve⁷	Foreign exchange reserve	Merger reserve^5,8	Total share- holders' equity	Non- controlling interests	Total equity
	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m

At 1 January 2012 ...........................................	8,934	8,457	5,851	111,868	(3,361)	(95)	(237)	27,308	158,725	7,368	166,093
Profit for the period ........................................	-	-	-	8,438	-	-	-	-	8,438	670	9,108
	-	-	-
Other comprehensive income (net of tax) .......	-	-	-	(114)	1,562	(7)	(364)	-	1,077	(13)	1,064
Available-for-sale investments .........................	-	-	-		1,562	-	-	-	1,562	31	1,593
Cash flow hedges ..............................................	-	-	-		-	(7)	-	-	(7)	1	(6)
Actuarial gains/(losses) on defined benefit plans .....................................................................	-	-	-	(452)	-	-	-	-	(452)	(17)	(469)
Share of other comprehensive income of associates and joint ventures .........................................	-	-	-	338	-	-		-	338	-	338
Exchange differences .......................................	-	-	-	-	-	-	(364)	-	(364)	(28)	(392)


Total comprehensive income for the period ....	-	-	-	8,324	1,562	(7)	(364)	-	9,515	657	10,172

Shares issued under employee share plans .........	84	1,447	-	(1,268)	-	-	-	-	263	-	263
Shares issued in lieu of dividends and amounts arising thereon⁴ .......................................................	63	(63)	-	1,007	-	-	-	-	1,007	-	1,007
Dividends to shareholders⁹ ................................	-	-	-	(4,454)	-	-	-	-	(4,454)	(398)	(4,852)
Tax credits on distributions ..............................	-	-	-	59	-	-	-	-	59		59
Own shares adjustment .....................................	-	-	-	32	-	-	-	-	32	-	32
Cost of share-based payment arrangements ......	-	-	-	541	-	-	-	-	541	-	541
Income taxes on share-based payments ............	-	-	-	(5)	-	-	-	-	(5)	-	(5)
Other movements ............................................	-	-	-	119	-	-	-	-	119	(11)	108
Acquisition and disposal of subsidiaries .............	-	-	-	-	-	-	-	-	-	376	376
Changes in ownership interests in subsidiaries that did not result in loss of control ..........................	-	-	-	43	-	-	-	-	43	(71)	(28)
	-
At 30 June 2012 ..............................................	9,081	9,841	5,851	116,266	(1,799)	(102)	(601)	27,308	165,845	7,921	173,766

Consolidated statement of changes in equity for the half-year to 30 June 2012 (continued)

	Half-year to 31 December 2012
					Other reserves
	Called up share capital	Share premium⁴	Other equity instru- ments	Retained earnings ^5,6	Available- for-sale fair value reserve	Cash flow hedging reserve⁷	Foreign exchange reserve	Merger reserve^5,8	Total share- holders' equity	Non- controlling interests	Total equity
	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m

At 1 July 2012 .......................................	9,081	9,841	5,851	116,266	(1,799)	(102)	(601)	27,308	165,845	7,921	173,766
Profit for the period ..............................	-	-	-	5,589	-	-	-	-	5,589	637	6,226

Other comprehensive income (net of tax) ....................................................	-	-	-	435	3,448	115	1,353	-	5,351	119	5,470
Available-for-sale investments ...............	-	-	-	-	3,448	-	-	-	3,448	29	3,477
Cash flow hedges ....................................	-	-	-	-	-	115	-	-	115	-	115
Actuarial losses on defined benefit plans .	-	-	-	240	-	-	-	-	240	34	274
Share of other comprehensive income of associates and joint ventures ...............................	-	-	-	195	-	-	-	-	195	-	195
Exchange differences .............................	-	-	-	-	-	-	1,353	-	1,353	56	1,409


Total comprehensive income for period	-	-	-	6,024	3,448	115	1,353	-	10,940	756	11,696

Shares issued under employee share plans ...........................................................	35	365	-	(69)	-	-	-	-	331	-	331
Shares issued in lieu of dividends and amounts arising thereon⁴ ..................................	122	(122)	-	1,422	-	-	-	-	1,422	-	1,422
Dividends to shareholders⁹ ......................	-	-	-	(3,588)	-	-	-	-	(3,588)	(309)	(3,897)
Tax credits on distributions ....................	-	-	-	(27)	-	-	-	-	(27)	-	(27)
Own shares adjustment ...........................	-	-	-	(30)	-	-	-	-	(30)	-	(30)
Cost of share-based payment arrangements ......................................	-	-	-	447	-	-	-	-	447	-	447
Income taxes on share based payments ..	-	-	-	47	-	-	-	-	47	-	47
Other movements ..................................	-	-	-	(145)	-	-	-	-	(145)	(9)	(154)
Acquisition and disposal of subsidiaries ...	-	-	-	-	-	-	-	-	-	(484)	(484)
Changes in ownership interests in subsidiaries that did not result in loss of control ................	-	-	-	-	-	-	-	-	-	12	12

At 31 December 2012 ............................	9,238	10,084	5,851	120,347	1,649	13	752	27,308	175,242	7,887	183,129

The accompanying notes on pages 216 to 263 form an integral part of these financial statements¹.

For footnotes, see page 215.

This information is provided by RNS

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RNS metadata

Title: Interim Report - 23 of 28
Time: 17:37:03
Date: 16 Aug 2013
Category: Results
ID: 9088L