Annual Financial Report - 7 of 56

RNS Announcement

RNS Number : 6120S

HSBC Holdings PLC

18 March 2016

Reconciliation of reported and adjusted items -

global businesses

2015 compared with 2014

	2015
	RBWM	CMB	GB&M	GPB	Other	Total
	$m	$m	$m	$m	$m	$m
Revenue¹
Reported³¹	23,516	14,870	18,233	2,172	7,604	59,800
Significant items	326	17	(199)	(31)	(2,148)	(2,035)
- disposal costs of Brazilian operations	-	-	-	-	18	18
- DVA on derivative contracts	-	-	(230)	-	-	(230)
- fair value movements on non-qualifying hedges³²	90	(1)	31	(1)	208	327
- gain on the partial sale of shareholding in Industrial Bank	-	-	-	-	(1,372)	(1,372)
- loss on sale of several tranches of real estate secured accounts in the US	214	-	-	-	-	214
- own credit spread²	-	-	-	-	(1,002)	(1,002)
- provisions/(releases) arising from the ongoing review of compliance with the Consumer Credit Act in the UK	22	18	-	(30)	-	10


Adjusted³¹	23,842	14,887	18,034	2,141	5,456	57,765

LICs
Reported	(1,939)	(1,770)	-	(12)	-	(3,721)

Adjusted	(1,939)	(1,770)	-	(12)	-	(3,721)

Operating expenses
Reported³¹	(17,020)	(6,744)	(10,834)	(1,832)	(9,933)	(39,768)
Significant items	1,537	202	1,035	206	606	3,586
- disposal costs of Brazilian operations	66	16	14	1	13	110
- costs-to-achieve	198	163	69	16	462	908
- costs to establish UK ring-fenced bank	-	-	-	-	89	89
- regulatory provisions in GPB	-	-	-	171	1	172
- restructuring and other related costs	32	5	22	18	40	117
- settlements and provisions in connection with legal matters	700	-	949	-	-	1,649
- UK customer redress programmes	541	18	(19)	-	1	541


Adjusted³¹	(15,483)	(6,542)	(9,799)	(1,626)	(9,327)	(36,182)

Share of profit in associates and joint ventures
Reported	410	1,617	511	16	2	2,556

Adjusted	410	1,617	511	16	2	2,556

Profit/(loss) before tax
Reported	4,967	7,973	7,910	344	(2,327)	18,867
Significant items	1,863	219	836	175	(1,542)	1,551
- revenue	326	17	(199)	(31)	(2,148)	(2,035)
- operating expenses	1,537	202	1,035	206	606	3,586


Adjusted	6,830	8,192	8,746	519	(3,869)	20,418

	2014
	RBWM	CMB	GB&M	GPB	Other	Total
	$m	$m	$m	$m	$m	$m
Revenue¹
Reported³¹	25,149	15,748	17,778	2,377	6,365	61,248
Currency translation³¹	(2,209)	(1,242)	(1,296)	(138)	(158)	(4,775)
Significant items	877	9	328	41	(501)	754
- DVA on derivative contracts	-	-	332	-	-	332
- fair value movements on non-qualifying hedges³²	493	(1)	8	1	40	541
- gain on sale of several tranches of real estate secured accounts in the US	(168)	-	-	-	-	(168)
- gain on sale of shareholding in Bank of Shanghai	-	-	-	-	(428)	(428)
- impairment of our investment in Industrial Bank	-	-	-	-	271	271
- own credit spread²	-	-	-	-	(417)	(417)
- provisions arising from the ongoing review of compliance with the Consumer Credit Act in the UK	568	24	-	40	-	632
- (gain)/loss and trading results from disposals and changes in ownership levels	(16)	(14)	(12)	-	33	(9)


Adjusted³¹	23,817	14,515	16,810	2,280	5,706	57,227

LICs
Reported	(1,936)	(1,558)	(365)	8	-	(3,851)
Currency translation	340	256	86	3	(2)	683
Significant items	2	(2)	-	-	-	-
- trading results from disposals and changes in ownership levels	2	(2)	-	-	-	-


Adjusted	(1,594)	(1,304)	(279)	11	(2)	(3,168)

Operating expenses
Reported³¹	(18,030)	(6,981)	(12,028)	(1,778)	(8,601)	(41,249)
Currency translation³¹	1,851	627	782	100	186	3,278
Significant items	1,118	189	1,896	71	121	3,395
- charge in relation to the settlement agreement with the Federal Housing Finance Authority	17	-	533	-	-	550
- regulatory provisions in GPB	-	-	-	65	-	65
- restructuring and other related costs	88	37	27	6	120	278
- settlements and provisions in connection with legal matters	-	-	1,187	-	-	1,187
- UK customer redress programmes	992	138	145	-	-	1,275
- trading results from disposals and changes in ownership levels	21	14	4	-	1	40


Adjusted³¹	(15,061)	(6,165)	(9,350)	(1,607)	(8,294)	(34,576)

Share of profit in associates and joint ventures
Reported	398	1,605	504	19	6	2,532
Currency translation	(5)	(28)	(7)	-	1	(39)

Adjusted	393	1,577	497	19	7	2,493

Profit/(loss) before tax
Reported	5,581	8,814	5,889	626	(2,230)	18,680
Currency translation	(23)	(387)	(435)	(35)	27	(853)
Significant items	1,997	196	2,224	112	(380)	4,149
- revenue	877	9	328	41	(501)	754
- LICs	2	(2)	-	-	-	-
- operating expenses	1,118	189	1,896	71	121	3,395


Adjusted	7,555	8,623	7,678	703	(2,583)	21,976

For footnotes, see page 99.

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RNS metadata

Title: Annual Financial Report - 7 of 56
Time: 16:21:02
Date: 18 Mar 2016
Category: Results
ID: 6120S