Interim Report - 23 of 28 | RNS | Ticker

Interim Report - 23 of 28

RNS Announcement

RNS Number : 2100P

HSBC Holdings PLC

15 August 2014

Consolidated income statement for the half-year to 30 June 2014

		Half-year to
		30 June 2014	30 June 2013	31 December 2013
	Notes	US$m	US$m	US$m

Interest income ..................................................................................		25,435	25,740	25,452
Interest expense .................................................................................		(8,030)	(7,921)	(7,732)

Net interest income ............................................................................		17,405	17,819	17,720

Fee income .........................................................................................		10,031	10,148	9,825
Fee expense ........................................................................................		(1,854)	(1,744)	(1,795)

Net fee income ...................................................................................		8,177	8,404	8,030

Trading income excluding net interest income ....................................		2,362	5,230	1,413
Net interest income on trading activities ............................................		913	1,132	915

Net trading income .............................................................................		3,275	6,362	2,328

Changes in fair value of long-term debt issued and related derivatives .		438	(1,419)	191
Net income from other financial instruments designated at fair value .		1,222	222	1,774

Net income/(expense) from financial instruments designated at fair value ..............................................................................................		1,660	(1,197)	1,965
Gains less losses from financial investments .......................................		946	1,856	156
Dividend income ................................................................................		88	107	215
Net earned insurance premiums ..........................................................		6,137	6,226	5,714
Other operating income .....................................................................		538	946	1,686

Total operating income ..................................................................		38,226	40,523	37,814

Net insurance claims incurred and movement in liabilities to policyholders .............................................................................		(7,059)	(6,151)	(7,541)

Net operating income before loan impairment charges and other credit risk provisions .......................................................		31,167	34,372	30,273

Loan impairment charges and other credit risk provisions ..................		(1,841)	(3,116)	(2,733)

Net operating income .....................................................................		29,326	31,256	27,540

Employee compensation and benefits .................................................		(9,978)	(9,496)	(9,700)
General and administrative expenses ...................................................		(7,127)	(7,727)	(9,338)
Depreciation and impairment of property, plant and equipment .........		(712)	(699)	(665)
Amortisation and impairment of intangible assets ..............................		(449)	(477)	(454)

Total operating expenses ...............................................................		(18,266)	(18,399)	(20,157)

Operating profit ..............................................................................		11,060	12,857	7,383

Share of profit in associates and joint ventures ...................................		1,280	1,214	1,111

Profit before tax ..............................................................................		12,340	14,071	8,494

Tax expense .......................................................................................	5	(2,022)	(2,725)	(2,040)

Profit for the period ........................................................................		10,318	11,346	6,454

Profit attributable to shareholders of the parent company ..................		9,746	10,284	5,920
Profit attributable to non-controlling interests ...................................		572	1,062	534

		US$	US$	US$

Basic earnings per ordinary share ........................................................	4	0.50	0.54	0.30
Diluted earnings per ordinary share .....................................................	4	0.50	0.54	0.30

The accompanying notes on pages 214 to 268 form an integral part of these financial statements¹.

For footnote, see page 213.

Consolidated statement of comprehensive income for the half-year to 30 June 2014

	Half-year to
	30 June	30 June	31 December
	2014	2013	2013
	US$m	US$m	US$m
		,
Profit for the period .....................................................................................	10,318	11,346	6,454

Other comprehensive income/(expense)
Items that will be reclassified subsequently to profit or loss when specific conditions are met:
Available-for-sale investments .....................................................................	958	(1,818)	100
- fair value gains/(losses) .........................................................................	2,183	(1,609)	(178)
- fair value gains transferred to income statement on disposal .................	(643)	(1,025)	(252)
- amounts transferred to the income statement in respect of impairment losses .................................................................................	15	206	80
- income taxes ........................................................................................	(597)	610	450

Cash flow hedges ..........................................................................................	(17)	(198)	70
- fair value gains/(losses) .........................................................................	(44)	35	741
- fair value (gains)/losses transferred to income statement .......................	50	(258)	(636)
- income taxes ........................................................................................	(23)	25	(35)

Share of other comprehensive income/(expense) of associates and joint ventures .......................................................................................................	(16)	1	(72)
- share for the period...............................................................................	(18)	37	(72)
- reclassified to income statement on disposal..........................................	2	(36)	-

Exchange differences ....................................................................................	670	(4,525)	3,081
- foreign exchange gains reclassified to income statement on disposal of a foreign operation ..................................................................................	(21)	(290)	-
- other exchange difference .....................................................................	691	(4,235)	3,081
- income tax attributable to exchange differences ....................................	-	-	72

Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit asset/liability ...........................................	316	(959)	501
- before income taxes ..............................................................................	421	(1,223)	622
- income taxes ........................................................................................	(105)	264	(121)

Other comprehensive income/(expense) for the period, net of tax ...............	1,911	(7,499)	3,752

Total comprehensive income for the period .................................................	12,229	3,847	10,206

Total comprehensive income for the period attributable to:
- shareholders of the parent company .....................................................	11,706	3,072	9,572
- non-controlling interests ......................................................................	523	775	634

	12,229	3,847	10,206

The accompanying notes on pages 214 to 268 form an integral part of these financial statements¹.

For footnote, see page 213.

Consolidated balance sheet at 30 June 2014

		At 30 June	At 30 June	At 31 December
		2014	2013	2013
	Notes	US$m	US$m	US$m
Assets

Cash and balances at central banks ......................................................		132,137	148,285	166,599
Items in the course of collection from other banks .............................		8,144	8,416	6,021
Hong Kong Government certificates of indebtedness ..........................		26,640	24,275	25,220
Trading assets .....................................................................................	6	347,106	432,601	303,192
Financial assets designated at fair value ...............................................	9	31,823	35,318	38,430
Derivatives .........................................................................................	10	269,839	299,213	282,265
Loans and advances to banks² .............................................................		127,387	127,810	120,046
Loans and advances to customers² ......................................................		1,047,241	938,294	992,089
Reverse repurchase agreements - non-trading² ...................................	11	198,301	88,400	179,690
Financial investments .........................................................................	12	423,710	404,214	425,925
Assets held for sale .............................................................................	13	10,248	20,377	4,050
Other assets ........................................................................................		53,270	45,135	50,939
Current tax assets ...............................................................................		1,068	1,207	985
Prepayments and accrued income .......................................................		11,503	9,781	11,006
Interests in associates and joint ventures ............................................		17,497	15,676	16,640
Goodwill and intangible assets .............................................................		29,740	28,537	29,918
Property, plant and equipment ...........................................................		10,747	10,572	10,847
Deferred tax assets .............................................................................		7,192	7,205	7,456

Total assets ........................................................................................		2,753,593	2,645,316	2,671,318

Liabilities and equity

Liabilities
Hong Kong currency notes in circulation ............................................		26,640	24,275	25,220
Deposits by banks² .............................................................................		92,764	92,709	86,507
Customer accounts² ............................................................................		1,415,705	1,266,905	1,361,297
Repurchase agreements - non-trading² ...............................................	11	165,506	66,591	164,220
Items in the course of transmission to other banks .............................		9,936	9,364	6,910
Trading liabilities ................................................................................	14	228,135	342,432	207,025
Financial liabilities designated at fair value ..........................................	15	82,968	84,254	89,084
Derivatives .........................................................................................	10	263,494	293,669	274,284
Debt securities in issue ........................................................................		96,397	109,389	104,080
Liabilities of disposal groups held for sale ...........................................		12,361	19,519	2,804
Other liabilities ...................................................................................		32,936	33,511	30,421
Current tax liabilities ..........................................................................		1,434	1,586	607
Liabilities under insurance contracts ...................................................		75,223	69,771	74,181
Accruals and deferred income .............................................................		14,972	11,292	16,185
Provisions ..........................................................................................	16	4,283	4,787	5,217
Deferred tax liabilities ........................................................................		1,091	864	910
Retirement benefit liabilities ...............................................................		2,974	3,216	2,931
Subordinated liabilities ........................................................................		28,052	28,821	28,976

Total liabilities ...................................................................................		2,554,871	2,462,955	2,480,859

Equity
Called up share capital ........................................................................		9,535	9,313	9,415
Share premium account ......................................................................		11,582	11,071	11,135
Other equity instruments ....................................................................		5,851	5,851	5,851
Other reserves ....................................................................................		28,355	23,503	26,742
Retained earnings ...............................................................................		134,958	124,332	128,728

Total shareholders' equity ..................................................................		190,281	174,070	181,871
Non-controlling interests ...................................................................		8,441	8,291	8,588

Total equity .......................................................................................		198,722	182,361	190,459

Total equity and liabilities ..................................................................		2,753,593	2,645,316	2,671,318

The accompanying notes on pages 214 to 268 form an integral part of these financial statements¹.

For footnote, see page 213.

Consolidated statement of cash flows for the half-year to 30 June 2014

		Half-year to
		30 June 2014	30 June 2013	31 December 2013
	Notes	US$m	US$m	US$m

Cash flows from operating activities
Profit before tax ..............................................................................		12,340	14,071	8,494
-....	-
Adjustments for:
- net gain from investing activities .............................................		(979)	(1,426)	(32)
- share of profit in associates and joint ventures .........................		(1,280)	(1,214)	(1,111)
- gain on disposal of associates, joint ventures, subsidiaries and businesses .......................................................................		(18)	(9)	(1,164)
- other non-cash items included in profit before tax ....................	20	4,284	5,091	6,904
- change in operating assets ........................................................	20	(86,266)	20,921	(169,820)
- change in operating liabilities ...................................................	20	59,108	(21,070)	185,827
- elimination of exchange differences³ ........................................		(5,486)	4,877	(398)
- dividends received from associates ............................................		127	665	29
- contributions paid to defined benefit plans ................................		(315)	(494)	(468)
- tax paid ....................................................................................		(1,358)	(2,125)	(2,571)

Net cash generated from/(used in) operating activities ......................		(19,843)	19,287	25,690

Cash flows from investing activities
Purchase of financial investments ....................................................		(187,934)	(171,175)	(192,804)
Proceeds from the sale and maturity of financial investments ..........		194,335	181,706	160,833
Purchase of property, plant and equipment ......................................		(523)	(1,155)	(797)
Proceeds from the sale of property, plant and equipment .................		55	164	277
Proceeds from the sale of loan portfolios .........................................		950	3,193	3,325
Net purchase of intangible assets ......................................................		(385)	(416)	(418)
Net cash inflow/(outflow) from disposal of other subsidiaries and businesses .....................................................................................		(140)	287	2,631
Net cash outflow from acquisition of or increase in stake of associates .....................................................................................		(30)	(25)	(1)
Proceeds from disposal of Ping An ...................................................	20	-	7,413	-
Proceeds from disposal of other associates and joint ventures ..........		-	367	10
		-
Net cash generated from/(used in) investing activities ......................		6,328	20,359	(26,944)

Cash flows from financing activities
Issue of ordinary share capital ..........................................................		14	169	128
Net sales/(purchases) of own shares for market-making and investment purposes .....................................................................		(25)	(33)	1
Redemption of preference shares .....................................................		234	-	-
Subordinated loan capital issued ........................................................		3,500	-	1,989
Subordinated loan capital repaid .......................................................		(3,042)	(45)	(1,617)
Net cash inflow/(outflow) from change in stake in subsidiaries ..........		-	1	(1)
Dividends paid to ordinary shareholders of the parent company .......		(1,755)	(2,799)	(3,615)
Dividends paid to non-controlling interests ......................................		(350)	(331)	(255)
Dividends paid to holders of other equity instruments ......................		(287)	(286)	(287)
		-
Net cash used in financing activities .................................................		(1,711)	(3,324)	(3,657)

Net increase/(decrease) in cash and cash equivalents .............		(15,226)	36,322	(4,911)

Cash and cash equivalents at the beginning of the period ..................		346,281	315,308	343,371
Exchange differences in respect of cash and cash equivalents ...........		3,443	(8,259)	7,821

Cash and cash equivalents at the end of the period ...........................	20	334,498	343,371	346,281

The accompanying notes on pages 214 to 268 form an integral part of these financial statements¹.

For footnote, see page 213.

Consolidated statement of changes in equity for the half-year to 30 June 2014

	Half-year to 30 June 2014
					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 2014 ...........................................	9,415	11,135	5,851	128,728	97	(121)	(542)	27,308	181,871	8,588	190,459
Profit for the period ........................................	-	-	-	9,746	-	-	-	-	9,746	572	10,318

Other comprehensive income (net of tax) .......	-	-	-	300	956	(16)	720	-	1,960	(49)	1,911
Available-for-sale investments .........................	-	-	-	-	956	-	-	-	956	2	958
Cash flow hedges ..............................................	-	-	-	-	-	(16)	-	-	(16)	(1)	(17)
Remeasurement of defined benefit asset/liability ...............................................	-	-	-	316	-	-	-	-	316	-	316
Share of other comprehensive income of associates and joint ventures .........................................	-	-	-	(16)	-	-	-	-	(16)	-	(16)
Exchange differences .......................................	-	-	-	-	-	-	720	-	720	(50)	670


Total comprehensive income for the period ....	-	-	-	10,046	956	(16)	720	-	11,706	523	12,229
					-	-	-	-
Shares issued under employee remuneration and share plans ...................................................	28	539	-	(553)	-	-	-	-	14	-	14
Shares issued in lieu of dividends and amounts arising thereon⁴ .......................................................	92	(92)	-	2,111	-	-	-	-	2,111	-	2,111
Dividends to shareholders⁹ ................................	-	-	-	(5,774)	-	-	-	-	(5,774)	(432)	(6,206)
Tax credits on distributions ..............................	-	-	-	52	-	-	-	-	52	-	52
Own shares adjustment .....................................	-	-	-	(18)	-	-	-	-	(18)	-	(18)
Cost of share-based payment arrangements ......	-	-	-	333	-	-	-	-	333	-	333
Income taxes on share-based payments ............	-	-	-	(9)	-	-	-	-	(9)	-	(9)
Other movements ............................................	-	-	-	42	(39)	(8)	-	-	(5)	(1)	(6)
Acquisition and disposal of subsidiaries .............	-	-	-	-	-	-	-	-	-	(12)	(12)
Changes in ownership interests in subsidiaries that did not result in loss of control ..........................	-	-	-	-	-	-	-	-	-	(225)	(225)

At 30 June 2014 ..............................................	9,535	11,582	5,851	134,958	1,014	(145)	178	27,308	190,281	8,441	198,722

	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 asset/liability ...............................................	-	-	-	(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

Consolidated statement of changes in equity for the half-year to 30 June 2014 (continued)

	Half-year to 31 December 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 July 2013 .......................................	9,313	11,071	5,851	124,332	14	(184)	(3,635)	27,308	174,070	8,291	182,361
Profit for the period ..............................	-	-	-	5,920	-	-	-	-	5,920	534	6,454

Other comprehensive income (net of tax) ...............................................	-	-	-	432	58	69	3,093	-	3,652	100	3,752
Available-for-sale investments ...............	-	-	-	-	58	-	-	-	58	42	100
Cash flow hedges ....................................	-	-	-	-	-	69	-	-	69	1	70
Remeasurement of defined benefit asset/liability ..................................	-	-	-	504	-	-	-	-	504	(3)	501
Share of other comprehensive income of associates and joint ventures ...............................	-	-	-	(72)	-	-	-	-	(72)	-	(72)
Exchange differences .............................	-	-	-	-	-	-	3,093	-	3,093	60	3,153


Total comprehensive income for period	-	-	-	6,352	58	69	3,093	-	9,572	634	10,206

Shares issued under employee remuneration and share plans .............	10	156	-	(38)	-	-	-	-	128	-	128
Shares issued in lieu of dividends and amounts arising thereon⁴ ..................................	92	(92)	-	1,816	-	-	-	-	1,816	-	1,816
Dividends to shareholders⁹ ......................	-	-	-	(4,023)	-	-	-	-	(4,023)	(318)	(4,341)
Tax credits on distributions ....................	-	-	-	(12)	-	-	-	-	(12)	-	(12)
Own shares adjustment ...........................	-	-	-	-	-	-	-	-	-	-	-
Cost of share-based payment arrangements ............................	-	-	-	275	-	-	-	-	275	-	275
Income taxes on share based payments ..	-	-	-	(7)	-	-	-	-	(7)	-	(7)
Other movements ...............................	-	-	-	33	25	(6)	-	-	52	(3)	49
Acquisition and disposal of subsidiaries ...	-	-	-	-	-	-	-	-	-	(30)	(30)
Changes in ownership interests in subsidiaries that did not result in loss of control ................	-	-	-	-	-	-	-	-	-	14	14

At 31 December 2013 ............................	9,415	11,135	5,851	128,728	97	(121)	(542)	27,308	181,871	8,588	190,459

The accompanying notes on pages 214 to 268 form an integral part of these financial statements¹.

For footnote, see page 213.

This information is provided by RNS

The company news service from the London Stock Exchange

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RNS metadata

Title: Interim Report - 23 of 28
Time: 17:37:02
Date: 15 Aug 2014
Category: Results
ID: 2100P