HSBC : 4Q 2018 Data Pack

HSBC HOLDINGS PLC

Data Pack

4Q 2018

The financial information on which this supplement is based is unaudited and has been prepared in accordance with HSBC's significant accounting policies as described in the Annual Report and Accounts 2018 . The financial information does not constitute financial statements prepared in accordance with International Financial Reporting Standards ('IFRSs'), is not complete and should be read in conjunction with the Annual Report and Accounts 2018, the Interim Report 2018, and other reports and financial information published by HSBC.

All information is on a reported basis.

Index

Page
Group ‐ Income Statement	1
Group ‐ Balance Sheet	2
Group ‐ NIM	3
Global businesses
Retail Banking and Wealth Management	4
Commercial Banking	5
Global Banking and Markets	6
Global Private Banking	7
Corporate Centre	8
Geographical regions
Europe	9
RFB	12
NRFB	13
Other	14
Asia	15
HK	18
Mainland China	21
Middle East and North Africa	24
North America	27
US	30
Latin America	33
Mexico	36
Further analysis
Risk‐weighted assets	39
Return on average risk‐weighted assets	40

HSBC

HSBC Holdings plc

Income Statement

Quarter ended
31 Dec	30 Sep	30 Jun	31 Mar	31 Dec
2018	2018	2018	2018	2017
$m	$m	$m	$m	$m
Net interest income	7,709	7,680	7,644	7,456	7,272
Net fee income	2,827	3,026	3,260	3,507	3,065
Net income from financial instruments held for trading or managed on a fair value
basis	2,046	2,602	2,499	2,384	2,099
Net income/(expense) from assets and liabilities of insurance businesses, including
related derivatives, measured at fair value through profit or loss2	(1,444)	178	(67)	(155)	627
Changes in fair value of other financial instruments mandatorily measured at fair
value through profit or loss	154	196	228	117	N/A
Other income/(expense)2	1,403	116	13	401	(762)
Net operating income before change in expected credit losses and other credit
impairment charges1	12,695	13,798	13,577	13,710	12,301
Change in expected credit losses and other credit impairment charges	(853)	(507)	(237)	(170)	N/A
Loan impairment charges and other credit risk provisions	N/A	N/A	N/A	N/A	(658)
Net operating income	11,842	13,291	13,340	13,540	11,643
Total operating expenses1	(9,144)	(7,966)	(8,166)	(9,383)	(9,895)
of which: staff expenses	(4,245)	(4,292)	(4,325)	(4,511)	(4,138)
Operating profit	2,698	5,325	5,174	4,157	1,748
Share of profit in associates and joint ventures	558	597	783	598	556
Profit before tax	3,256	5,922	5,957	4,755	2,304
Tax expense	(1,163)	(1,406)	(1,279)	(1,017)	(1,978)
Profit after tax	2,093	4,516	4,678	3,738	326
Profit attributable to shareholders of the parent company	1,794	4,185	4,352	3,396	52
Profit attributable to non‐controlling interests	299	331	326	342	274
Profit/(loss) attributable to the ordinary shareholders of the parent company	1,537	3,898	4,087	3,086	(274)
Significant items ‐ Totals
Revenue	131	(43)	(108)	(140)	(139)
ECL/LICs	-	-	-	-	-
Operating expenses	(262)	(228)	(41)	(1,138)	(1,137)
Share of profit in associates and joint ventures	-	-	-	-	-
Income statement Metrics ‐ Reported
Return on equity	3.8 %	9.6 %	10.0 %	7.5 %	(0.7)%
Return on tangible equity	3.9 %	10.9 %	11.0 %	8.4 %	(0.5)%
Cost efficiency ratio	72.0 %	57.7 %	60.1 %	68.4 %	80.4 %
Income statement Metrics ‐ Adjusted as originally reported
Adjusted Cost efficiency ratio	70.7 %	55.9 %	59.4 %	59.5 %	70.4 %
Adjusted RoRWA	1.6 %	2.9 %	2.8 %	2.7 %	1.6 %
Revenue
Significant items
Customer redress programmes	7	-	46	-	(105)
Disposals, acquisitions and investment in new business	29	-	(30)	(112)	(79)
Fair value movements on financial investments	95	(43)	(124)	(28)	45
Operating expenses
Significant items
Costs of structural reform	(61)	(89)	(85)	(126)	(131)
Costs to achieve	-	-	-	-	(655)
Customer redress programmes	16	(62)	(7)	(93)	(272)
Disposals, acquisitions and investment in new businesses	2	(51)	(1)	(2)	(39)
Gain on partial settlement of pension obligation	-	-	-	-	188
Past service costs of guaranteed minimum pension benefits equalisation	(228)	-	-	-	-
Restructuring and other related costs	(15)	(27)	(4)	(20)	-
Settlements and provisions in connection with legal and regulatory matters	24	1	56	(897)	(228)

• 1 The difference between the consolidated group result and the sum of geographical regions is attributable to inter‐segment eliminations.

• 2 Prior to 2018 foreign exchange exposure on some financial instruments designated at fair value was presented in the same line in the income statement as the underlying fair value movement on these instruments. In 2018 we have grouped the presentation of the entire effect of foreign exchange exposure in profit or loss and presented it within 'Net income from financial instruments held for trading or managed on a fair value basis'. Comparative data have been re‐presented. There is no net impact on 'Net operating income' and the impact on 'Other income/(expense)' is $(36)m in 4Q17.

Note: Risk‐weighted asset and return on average risk‐weighted asset data by Global business and Geographical region is provided separately at the end of this document.

1

HSBC

HSBC Holdings plc

Balance sheet data

At

31 Dec	30 Sep	30 Jun	31 Mar	31 Dec
2018	2018	2018	2018	2017
$m	$m	$m	$m	$m
Loans and advances to customers (gross)	990,321	989,942	982,178	990,523	970,448
Loans and advances to customers (net)	981,696	981,460	973,443	981,165	962,964
Total assets	2,558,124	2,603,035	2,607,314	2,652,123	2,521,771
Customer accounts	1,362,643	1,345,375	1,356,307	1,379,679	1,364,462
Financial Data Reported
Total shareholders equity	186,253	185,351	183,607	195,924	190,250
AT1 capital	(22,367)	(22,400)	(20,549)	(20,549)	(16,399)
Preference shares	(1,405)	(1,405)	(1,405)	(1,405)	(1,405)
Perpetual capital securities	-	-	-	(5,851)	(5,851)
NAV	162,481	161,546	161,653	168,119	166,595
Goodwill, PVIF and Other Intangibles (net of tax)	(22,425)	(22,172)	(21,899)	(22,286)	(21,680)
TNAV	140,056	139,374	139,754	145,833	144,915
Total regulatory capital
CRD IV transitional
Common equity tier 1 capital	121,022	123,136	122,757	129,646	126,144
Additional tier 1 capital	26,120	26,163	24,328	27,429	24,810
Tier 2 capital	26,096	28,849	29,525	28,116	31,429
Total regulatory capital	173,238	178,148	176,610	185,191	182,383
CRD IV end point
Common equity tier 1 capital	121,022	123,136	122,757	129,646	126,144
Additional tier 1 capital	22,525	22,549	20,704	20,699	16,531
Tier 2 capital	24,511	27,149	27,731	16,131	16,413
Total regulatory capital	168,058	172,834	171,192	166,476	159,088
Capital ratios
CRD IV transitional
Common equity tier 1 ratio	14.0 %	14.3 %	14.2 %	14.5 %	14.5 %
Tier 1 ratio	17.0 %	17.3 %	17.0 %	17.6 %	17.3 %
Total capital ratio	20.0 %	20.7 %	20.4 %	20.7 %	20.9 %
CRD IV end point
Common equity tier 1 ratio	14.0 %	14.3 %	14.2 %	14.5 %	14.5 %
Tier 1 ratio	16.6 %	16.9 %	16.6 %	16.8 %	16.4 %
Total capital ratio	19.4 %	20.0 %	19.8 %	18.6 %	18.3 %
Leverage Ratio	5.5 %	5.4 %	5.4 %	5.6 %	5.6 %
Earnings Metrics
Number of $0.50 ordinary shares in issue (millions)	20,361	20,253	20,317	20,378	20,320
Basic number of $0.50 ordinary shares outstanding (millions)	19,981	19,876	19,963	20,013	19,960
Earnings per share	$0.07	$0.19	$0.21	$0.15	‐$0.01
Dividend per ordinary share	$0.21	$0.10	$0.10	$0.10	$0.21
NAV / share ($) at the end of the period	$8.13	$8.13	$8.10	$8.40	$8.35
TNAV / share ($) at the end of the period	$7.01	$7.01	$7.00	$7.29	$7.26
2

HSBC

HSBC Holdings plc

Net Interest Margin	Year to date
31 Dec	30 Sep	31 Mar	31 Dec
2018	2018	2018	2018	2017
$m	$m	$m	$m	$m
Average balances during period
Short‐term funds and loans and advances to banks	233,637	230,176	240,804	229,271	236,126
Loans and advances to customers	972,963	970,145	966,481	961,259	902,214
Reverse repurchase agreements - non‐trading	205,427	197,069	198,154	188,903	173,760
Financial investments	386,230	384,671	385,907	388,395	389,807
Other interest‐earning assets	41,089	45,276	48,257	44,366	24,213
Total interest‐earning assets	1,839,346	1,827,337	1,839,603	1,812,194	1,726,120
Interest income during period
Short‐term funds and loans and advances to banks	2,475	1,755	1,116	587	2,030
Loans and advances to customers	33,285	24,581	16,036	7,818	28,751
Reverse repurchase agreements - non‐trading	3,739	2,552	1,589	692	2,191
Financial investments	9,166	6,584	4,220	2,122	7,440
Other interest‐earning assets	944	634	461	168	583
Total	49,609	36,106	23,422	11,386	40,995
Average balances during period
Deposits by banks	44,530	45,015	45,142	49,479	47,337
Financial liabilities designated at fair value - own debt issued	50,840	54,530	55,056	54,092	60,566
Customer accounts	1,138,620	1,139,241	1,138,617	1,136,295	1,094,920
Repurchase agreements - non‐trading	161,204	156,652	159,293	152,676	136,561
Debt securities in issue	132,594	129,615	124,847	119,364	108,677
Other interest‐bearing liabilities	53,731	49,628	48,649	50,043	7,009
Total interest‐bearing liabilities	1,581,519	1,574,681	1,571,604	1,561,949	1,455,070
Interest expense during period
Deposits by banks	506	360	226	98	451
Financial liabilities designated at fair value - own debt issued	1,421	1,057	685	360	1,261
Customer accounts	8,287	5,653	3,463	1,613	5,405
Repurchase agreements - non‐trading	3,409	2,373	1,488	676	1,665
Debt securities in issue	4,254	3,048	1,969	948	3,130
Other interest‐bearing liabilities	1,243	835	491	235	907
Total	19,120	13,326	8,322	3,930	12,819
Net interest margin	1.66 %	1.67 %	1.66 %	1.67 %	1.63 %
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30 Jun