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MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  HSBC Holdings Plc    HSBA   GB0005405286

HSBC HOLDINGS PLC

(HSBA)
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HSBC : 4Q 2019 Data Pack

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02/17/2020 | 11:43pm EDT

HSBC HOLDINGS PLC

Incorporated in England with limited liability.

Data Pack

4Q 2019

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 2019. 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 2019, the Interim Report 2019, and other reports and financial information published by HSBC.

Index

Page

HSBC Holdings plc ‐ Income statement

1

HSBC Holdings plc ‐ Balance sheet data

2

HSBC Holdings plc ‐ Net interest margin

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 / countries / territory

Europe

9

Europe ‐ HSBC UK (UK ring‐fenced bank)

12

Europe ‐ HSBC Bank (non UK ring‐fenced bank)

15

Europe ‐ other

18

Asia

21

Hong Kong

24

Mainland China

27

Middle East and North Africa

30

North America

33

US

36

Latin America

39

Mexico

42

Further analysis

Risk‐weighted assets

45

HSBC

HSBC Holdings plc

Income Statement

Quarter ended

Year to date

31 Dec

30 Sep

30 Jun

31 Mar

31 Dec

31 Dec

2019

2019

2019

2019

2018

2019

$m

$m

$m

$m

$m

$m

Net interest income

7,654

7,568

7,772

7,468

7,709

30,462

Net fee income

2,938

2,961

3,098

3,026

2,827

12,023

Net income from financial instruments held for trading or managed on a fair value basis

2,354

2,546

2,450

2,881

2,046

10,231

Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives,

measured at fair value through profit or loss

1,160

122

486

1,710

(1,444)

3,478

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or

loss

195

160

187

270

154

812

Other income/(expense)

(930)

(2)

951

(927)

1,403

(908)

Net operating income before change in expected credit losses and other credit impairment charges1

13,371

13,355

14,944

14,428

12,695

56,098

Change in expected credit losses and other credit impairment charges

(733)

(883)

(555)

(585)

(853)

(2,756)

Net operating income

12,638

12,472

14,389

13,843

11,842

53,342

Total operating expenses1

(17,053)

(8,147)

(8,927)

(8,222)

(9,144)

(42,349)

of which: staff expenses

(4,545)

(4,202)

(4,678)

(4,577)

(4,245)

(18,002)

Operating profit

(4,415)

4,325

5,462

5,621

2,698

10,993

Share of profit in associates and joint ventures

518

512

732

592

558

2,354

Profit before tax

(3,897)

4,837

6,194

6,213

3,256

13,347

Tax expense

(1,127)

(1,042)

(1,167)

(1,303)

(1,163)

(4,639)

Profit after tax

(5,024)

3,795

5,027

4,910

2,093

8,708

Profit attributable to shareholders of the parent company

(5,310)

3,477

4,650

4,566

1,794

7,383

Profit attributable to non‐controlling interests

286

318

377

344

299

1,325

Profit attributable to the ordinary shareholders of the parent company

(5,509)

2,971

4,373

4,134

1,537

5,969

Significant items ‐ Totals

Revenue

(276)

88

855

22

131

689

ECL

-

-

-

-

-

-

Operating expenses

(7,969)

(599)

(827)

(159)

(262)

(9,554)

Share of profit in associates and joint ventures

-

-

-

-

-

-

Income statement Metrics ‐ Reported

Return on equity

(13.3)%

7.0%

10.5%

10.2%

3.8%

3.6%

Return on tangible equity

5.2%

6.4%

11.7%

10.6%

3.9%

8.4%

Cost efficiency ratio

127.5%

61.0%

59.7%

57.0%

72.0%

75.5%

Income statement Metrics ‐ Adjusted as originally reported

Adjusted cost efficiency ratio

66.6%

56.9%

57.5%

56.0%

70.7%

59.2%

Revenue

Significant items

Customer redress programmes

(45)

(118)

-

-

7

(163)

Disposals, acquisitions and investment in new businesses

(55)

(4)

827

-

29

768

Fair value movements on financial instruments

(176)

210

28

22

95

84

Operating expenses

Significant items

Costs of structural reform

(32)

(35)

(38)

(53)

(61)

(158)

Customer redress programmes

(183)

(488)

(554)

(56)

16

(1,281)

Disposals, acquisitions and investment in new businesses

-

-

-

-

2

-

Goodwill impairment

(7,349)

-

-

-

-

(7,349)

Past service costs of guaranteed minimum pension benefits equalisation

-

-

-

-

(228)

-

Restructuring and other related costs

(400)

(140)

(237)

(50)

(15)

(827)

Settlements and provisions in connection with legal and regulatory matters

(5)

64

2

-

24

61

1 The difference between the consolidated group result and the sum of geographical regions is attributable to inter‐segment eliminations and goodwill impairment recognised on the Global Banking and Ma rkets cash‐generating unit, which is monitored on a global basis.

Note: 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

2019

2019

2019

2019

2018

$m

$m

$m

$m

$m

Loans and advances to customers (gross)

1,045,475

1,026,414

1,030,152

1,013,830

990,321

Loans and advances to customers (net)

1,036,743

1,017,833

1,021,632

1,005,279

981,696

Total assets

2,715,152

2,728,347

2,751,273

2,658,996

2,558,124

Customer accounts

1,439,115

1,373,741

1,380,124

1,356,511

1,362,643

Financial Data Reported

Total shareholders equity

183,955

189,517

192,676

188,362

186,253

AT1 capital

(20,871)

(22,367)

(22,367)

(22,367)

(22,367)

Preference shares

(1,405)

(1,405)

(1,405)

(1,405)

(1,405)

Perpetual capital securities

-

-

-

-

-

NAV

161,679

165,745

168,904

164,590

162,481

Goodwill, PVIF and Other Intangibles (net of tax)

(17,535)

(23,913)

(23,463)

(22,942)

(22,425)

TNAV

144,144

141,831

145,441

141,648

140,056

Total regulatory capital

Transitional basis

Common equity tier 1 capital

123,966

123,791

126,949

125,802

121,022

Additional tier 1 capital

24,393

25,886

25,878

26,046

26,120

Tier 2 capital

23,791

25,446

25,432

25,952

26,096

Total regulatory capital

172,150

175,123

178,259

177,800

173,238

End point basis

Common equity tier 1 capital

123,966

123,791

126,949

125,802

121,022

Additional tier 1 capital

20,870

22,363

22,363

22,531

22,525

Tier 2 capital

14,473

15,984

16,107

24,313

24,511

Total regulatory capital

159,309

162,138

165,419

172,646

168,058

Capital ratios

Transitional basis

Common equity tier 1 ratio

14.7%

14.3%

14.3%

14.3%

14.0%

Tier 1 ratio

17.6%

17.3%

17.2%

17.3%

17.0%

Total capital ratio

20.4%

20.2%

20.1%

20.2%

20.0%

End point basis

Common equity tier 1 ratio

14.7%

14.3%

14.3%

14.3%

14.0%

Tier 1 ratio

17.2%

16.9%

16.9%

16.9%

16.6%

Total capital ratio

18.9%

18.7%

18.7%

19.6%

19.4%

Leverage Ratio

5.3%

5.4%

5.4%

5.4%

5.5%

Earnings Metrics

Basic number of $0.50 ordinary shares outstanding (millions)

20,206

20,191

20,221

20,082

19,981

Earnings per share

$(0.27)

$0.15

$0.22

$0.21

$0.07

Dividend per ordinary share (in respect of the period)

$0.21

$0.10

$0.10

$0.10

$0.21

NAV / share ($) at the end of the period

$8.00

$8.21

$8.35

$8.20

$8.13

TNAV / share ($) at the end of the period

$7.13

$7.02

$7.19

$7.05

$7.01

2

HSBC

HSBC Holdings plc

Net Interest Margin

Year to date

31 Dec

30 Sep

30 Jun

31 Mar

31 Dec

2019

2019

2019

2019

2018

$m

$m

$m

$m

$m

Average balances during period

Short‐term funds and loans and advances to banks

212,920

211,633

217,474

217,530

233,637

Loans and advances to customers

1,021,554

1,015,801

1,011,928

1,004,960

972,963

Reverse repurchase agreements - non‐trading

224,942

227,837

231,308

234,455

205,427

Financial investments

417,939

415,205

408,673

407,325

386,230

Other interest‐earning assets

45,467

44,673

43,325

38,642

41,089

Total interest‐earning assets

1,922,822

1,915,149

1,912,708

1,902,912

1,839,346

Interest income during period

Short‐term funds and loans and advances to banks

2,411

1,887

1,285

658

2,475

Loans and advances to customers

35,578

26,881

17,833

8,763

33,285

Reverse repurchase agreements - non‐trading

4,690

3,855

2,635

1,307

3,739

Financial investments

10,705

8,204

5,380

2,612

9,166

Other interest‐earning assets

1,311

640

617

204

944

Total

54,695

41,467

27,750

13,544

49,609

Average balances during period

Deposits by banks

52,515

52,037

51,199

51,663

44,530

Customer accounts

1,149,483

1,140,548

1,138,196

1,132,345

1,138,620

Repurchase agreements - non‐trading

160,850

169,446

170,342

171,473

161,204

Debt securities in issue - non‐trading

211,229

208,339

205,192

191,204

183,434

Other interest‐bearing liabilities

59,980

58,746

59,266

59,671

53,731

Total interest‐bearing liabilities

1,634,057

1,629,116

1,624,195

1,606,356

1,581,519

Non‐interest bearing current accounts

227,651

226,940

228,524

231,918

211,815

Interest expense during period

Deposits by banks

702

579

370

187

506

Customer accounts

11,238

8,516

5,637

2,780

8,287

Repurchase agreements - non‐trading

4,023

3,424

2,320

1,138

3,409

Debt securities in issue - non‐trading

6,522

4,974

3,361

1,576

5,675

Other interest‐bearing liabilities

1,748

1,167

822

395

1,243

Total

24,233

18,660

12,510

6,076

19,120

Net interest margin

1.58%

1.59%

1.61%

1.59%

1.66%

3

HSBC

Retail Banking and Wealth Management

Quarter ended

Year to date

31 Dec

30 Sep

30 Jun

31 Mar

31 Dec

31 Dec

2019

2019

2019

2019

2018

2019

$m

$m

$m

$m

$m

$m

Net interest income

4,144

4,075

4,190

3,965

4,058

16,374

Net fee income

1,161

1,213

1,292

1,206

1,160

4,872

Net income from financial instruments held for trading or managed on a fair value basis

42

158

64

78

77

342

Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives,

measured at fair value through profit or loss

1,151

141

505

1,712

(1,429)

3,509

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or

loss

68

2

(2)

157

(49)

225

Other income/(expense)

(809)

(74)

(100)

(1,147)

1,293

(2,130)

Net operating income before change in expected credit losses and other credit impairment charges

5,757

5,515

5,949

5,971

5,110

23,192

Change in expected credit losses and other credit impairment charges

(401)

(450)

(238)

(302)

(339)

(1,391)

Net operating income

5,356

5,065

5,711

5,669

4,771

21,801

Total operating expenses

(3,824)

(3,966)

(4,131)

(3,508)

(3,445)

(15,429)

of which: staff expenses

(1,369)

(1,260)

(1,295)

(1,253)

(1,187)

(5,177)

Operating profit

1,532

1,099

1,580

2,161

1,326

6,372

Share of profit in associates and joint ventures

5

7

30

13

12

55

Profit before tax

1,537

1,106

1,610

2,174

1,338

6,427

Significant items ‐ Totals

Revenue

(95)

(113)

-

-

-

(208)

ECL

-

-

-

-

-

-

Operating expenses

(278)

(477)

(600)

(57)

(16)

(1,412)

Share of profit in associates and joint ventures

-

-

-

-

-

-

Balance sheet data

At

At

31 Dec

30 Sep

30 Jun

31 Mar

31 Dec

31 Dec

2019

2019

2019

2019

2018

2019

Loans and advances to customers (gross)

398,515

379,299

379,053

372,142

364,794

398,515

Loans and advances to customers (net)

395,393

376,312

376,126

369,178

361,872

395,393

Total external assets

526,621

499,074

498,045

487,971

476,784

526,621

Customer accounts

689,283

655,592

660,588

653,969

640,924

689,283

Income statement Metrics ‐ Reported

Cost efficiency ratio

66.4%

71.9%

69.4%

58.8%

67.4%

66.5%

Income Statement Data ‐ Adjusted as originally reported

Adjusted cost efficiency ratio

60.6%

62.0%

59.4%

57.8%

67.1%

59.9%

Management View of Adjusted Revenue ‐ as originally reported

Retail Banking

3,989

3,981

4,002

3,870

3,916

15,842

Current Accounts, saving and deposits

2,425

2,422

2,449

2,197

2,318

9,493

Personal lending

1,564

1,559

1,553

1,673

1,598

6,349

Mortgages

392

379

407

433

415

1,611

Credit cards

705

711

688

789

718

2,893

Other personal lending

467

469

458

451

465

1,845

Wealth Management

1,655

1,476

1,706

1,907

1,129

6,744

Investment distribution

720

839

854

855

672

3,268

Life insurance manufacturing

677

395

590

793

208

2,455

Asset management

258

242

262

259

249

1,021

Other

208

171

241

194

65

814

Total

5,852

5,628

5,949

5,971

5,110

23,400

Revenue

Significant items

Customer redress programmes

(47)

(109)

-

-

-

(156)

Disposals, acquisitions and investment in new businesses

(48)

(4)

-

-

-

(52)

Fair value movement on financial instruments

-

-

-

-

-

-

Operating expenses

Significant items

Costs of structural reform

-

-

-

-

-

-

Customer redress programmes

(180)

(469)

(559)

(56)

(17)

(1,264)

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

Goodwill impairment

-

-

-

-

-

-

Past service costs of guaranteed minimum pension benefits equalisation

-

-

-

-

-

-

Restructuring and other related costs

(98)

(8)

(41)

(1)

-

(148)

Settlements and provisions in connection with legal and regulatory matters

-

-

-

-

-

-

4

HSBC

Commercial Banking

Net interest income Net fee income

Net income from financial instruments held for trading or managed on a fair value basis

Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss

Other income/(expense)

Net operating income before change in expected credit losses and other credit impairment charges Change in expected credit losses and other credit impairment charges

Net operating income Total operating expenses of which: staff expenses

Operating profit/(loss)

Share of profit in associates and joint ventures

Profit/(loss) before tax

Quarter ended

31 Dec

30 Sep

30 Jun

31 Mar

31 Dec

2019

2019

2019

2019

2018

$m

$m

$m

$m

$m

2,768

2,799

2,853

2,800

2,781

789

832

884

898

829

98

124

91

113

96

6

(21)

(6)

-

(15)

38

11

15

21

(32)

(11)

37

57

89

44

3,688

3,782

3,894

3,921

3,703

(276)

(413)

(248)

(247)

(444)

3,412

3,369

3,646

3,674

3,259

(4,740)

(1,765)

(1,662)

(1,662)

(1,574)

(644)

(620)

(634)

(618)

(579)

(1,328)

1,604

1,984

2,012

1,685

-

-

-

-

-

(1,328)

1,604

1,984

2,012

1,685

Year to date

31 Dec

2019 $m 11,220 3,403 426

(21)

85

172

15,285

(1,184)

14,101

(9,829)

(2,516)

4,272

-

4,272

Significant items ‐ Totals

Revenue

2

(9)

-

-

7

ECL

-

-

-

-

-

Operating expenses

(2,983)

(19)

(22)

(4)

8

Share of profit in associates and joint ventures

-

-

-

-

-

Balance sheet data

At

31 Dec

30 Sep

30 Jun

31 Mar

31 Dec

2019

2019

2019

2019

2018

Loans and advances to customers (gross)

350,603

345,911

351,838

344,198

337,660

Loans and advances to customers (net)

346,060

341,339

347,387

339,729

333,162

Total external assets

367,509

370,337

377,142

368,591

360,216

Customer accounts

386,522

353,037

358,735

349,352

357,596

Income statement Metrics ‐ Reported

Cost efficiency ratio

128.5%

46.7%

42.7%

42.4%

42.5%

Income statement Metrics ‐ Adjusted as originally reported

Adjusted cost efficiency ratio

47.7%

46.1%

42.1%

42.3%

42.8%

Management View of Adjusted Revenue ‐ as originally reported

Global Trade and Receivables Finance1

432

464

470

468

449

Credit and Lending

1,328

1,367

1,385

1,360

1,335

Global Liquidity and Cash Management

1,425

1,506

1,540

1,508

1,525

Markets products, Insurance and Investments and other

501

454

499

585

387

Total

3,686

3,791

3,894

3,921

3,696

Revenue

Significant items

Customer redress programmes

3

(9)

-

-

7

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

Fair value movement on financial instruments

-

-

-

-

-

Operating expenses

Significant items

Costs of structural reform

-

(1)

(1)

(2)

(3)

Customer redress programmes

(2)

(16)

1

-

11

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

Goodwill impairment

(2,956)

-

-

-

-

Past service costs of guaranteed minimum pension benefits equalisation

-

-

-

-

-

Restructuring and other related costs

(24)

(3)

(22)

(2)

-

Settlements and provisions in connection with legal and regulatory matters

-

-

-

-

-

(7)

-

(3,028)

-

At

31 Dec

2019

350,603

346,060

367,509

386,522

64.3%

44.5%

1,834

5,440

5,979

2,039

15,292

(6)

-

-

(4)

(17)

-

(2,956)

-

(51)

-

1. With effect from the third quarter of 2019, a change in the transfer pricing of Acceptances within GTRF resulted in a reduction in revenue for GTRF, offset in Other, leaving CMB quarterly revenue unchanged. All prior quarters have be re‐presented on the revised basis.

5

HSBC

Global Banking and Markets

Quarter ended

Year to date

31 Dec

30 Sep

30 Jun

31 Mar

31 Dec

31 Dec

2019

2019

2019

2019

2018

2019

$m

$m

$m

$m

$m

$m

Net interest income

1,378

1,363

1,439

1,422

1,432

5,602

Net fee income

815

739

742

757

657

3,053

Net income from financial instruments held for trading or managed on a fair value basis

1,375

1,199

1,468

1,518

480

5,560

Net income from assets and liabilities of insurance businesses, including related derivatives, measured at

fair value through profit or loss

-

-

-

-

-

-

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or

loss

84

140

104

65

225

393

Other income/(expense)

44

67

(132)

253

318

232

Net operating income before change in expected credit losses and other credit impairment charges

3,696

3,508

3,621

4,015

3,112

14,840

Change in expected credit losses and other credit impairment charges

(32)

(26)

(55)

(40)

(64)

(153)

Net operating income

3,664

3,482

3,566

3,975

3,048

14,687

Total operating expenses2

(6,483)

(2,249)

(2,468)

(2,440)

(2,271)

(13,640)

of which: staff expenses

(1,003)

(870)

(1,069)

(1,038)

(900)

(3,980)

Operating profit/(loss)

(2,819)

1,233

1,098

1,535

777

1,047

Share of profit in associates and joint ventures

-

-

-

-

-

-

Profit/(loss) before tax

(2,819)

1,233

1,098

1,535

777

1,047

Significant items ‐ Totals

Revenue

(44)

38

(17)

(53)

49

(76)

ECL

-

-

-

-

-

-

Operating expenses

(4,057)

(45)

(70)

(51)

29

(4,223)

Share of profit in associates and joint ventures

-

-

-

-

-

-

Balance sheet data

At

At

31 Dec

30 Sep

30 Jun

31 Mar

31 Dec

31 Dec

2019

2019

2019

2019

2018

2019

Loans and advances to customers (gross)

247,198

253,353

251,803

253,185

246,070

247,198

Loans and advances to customers (net)

246,266

252,462

250,790

252,180

244,978

246,266

Total external assets

1,066,584

1,131,673

1,120,235

1,077,505

1,012,272

1,066,584

Customer accounts

292,284

295,900

289,950

281,462

290,914

292,284

Income statement Metrics ‐ Reported

Cost efficiency ratio

175.4%

64.1%

68.2%

60.8%

73.0%

91.9%

Income Statement Data ‐ Adjusted as originally reported

Adjusted cost efficiency ratio

64.9%

63.5%

65.9%

58.7%

75.1%

63.1%

Management View of Adjusted Revenue ‐ as originally reported

GLobal Markets

1,247

1,352

1,423

1,741

1,101

5,763

‐ FICC

1,073

1,145

1,189

1,364

885

4,771

Foreign Exchange

669

713

610

698

603

2,690

Rates

276

300

400

490

208

1,466

Credit

128

132

179

176

74

615

‐ Equities

174

207

234

377

216

992

Securities Services

518

509

525

478

484

2,030

Global Banking

986

989

996

935

939

3,906

Global Liquidity and Cash Management

674

692

700

687

678

2,753

Global Trade and Receivables Finance1

198

202

202

211

198

813

Principal Investments

45

93

38

84

(60)

260

Credit and Funding Valuation Adjustment

191

(160)

(34)

47

(178)

44

Other Revenue

(119)

(207)

(212)

(115)

(99)

(653)

Total

3,740

3,470

3,638

4,068

3,063

14,916

Revenue

Significant items

Customer redress programmes

-

-

-

-

-

-

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

Fair value movement on financial instruments

(43)

38

(17)

(53)

49

(75)

Operating expenses

Significant items

Costs of structural reform

(6)

(7)

(16)

(13)

(14)

(42)

Customer redress programmes

-

(4)

4

-

22

-

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

Goodwill impairment

(3,962)

-

-

-

-

(3,962)

Past service costs of guaranteed minimum pension benefits equalisation

-

-

-

-

-

-

Restructuring and other related costs

(86)

(35)

(58)

(38)

-

(217)

Settlements and provisions in connection with legal and regulatory matters

(2)

-

-

-

21

(2)

  1. With effect from the third quarter of 2019, a change in the transfer pricing of Acceptances within GTRF resulted in a reduction in revenue for GTRF, offset in Other, leaving GBM quarterly revenue unchanged. All prior quarters have be re‐presented on the revised basis.
  2. Includes the goodwill impairment recognised on the Global Banking and Markets cash‐genera ng unit, for which goodwill is monitored on a global basis and has not been reflected in the geographical regions' or countries' data.

6

HSBC

Global Private Banking

Quarter ended

Year to date

31 Dec

30 Sep

30 Jun

31 Mar

31 Dec

31 Dec

2019

2019

2019

2019

2018

2019

$m

$m

$m

$m

$m

$m

Net interest income

217

220

225

215

220

877

Net fee income

190

206

194

181

179

771

Net income from financial instruments held for trading or managed on a fair value basis

41

51

44

50

26

186

Net income from assets and liabilities of insurance businesses, including related derivatives, measured at

fair value through profit or loss

-

-

-

-

-

-

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or

loss

(2)

(4)

(4)

(3)

(3)

(13)

Other income/(expense)

6

(2)

14

7

7

25

Net operating income before change in expected credit losses and other credit impairment charges

452

471

473

450

429

1,846

Change in expected credit losses and other credit impairment charges

3

(7)

(16)

(2)

(8)

(22)

Net operating income

455

464

457

448

421

1,824

Total operating expenses

(811)

(284)

(370)

(352)

(355)

(1,817)

of which: staff expenses

(179)

(158)

(178)

(169)

(146)

(684)

Operating profit/(loss)

(356)

180

87

96

66

7

Share of profit in associates and joint ventures

-

-

-

-

-

-

Profit/(loss) before tax

(356)

180

87

96

66

7

Significant items ‐ Totals

Revenue

-

-

-

-

5

-

ECL

-

-

-

-

-

-

Operating expenses

(440)

60

(11)

(2)

2

(393)

Share of profit in associates and joint ventures

-

-

-

-

-

-

Balance sheet data

At

At

31 Dec

30 Sep

30 Jun

31 Mar

31 Dec

31 Dec

2019

2019

2019

2019

2018

2019

Loans and advances to customers (gross)

47,714

46,249

45,921

42,597

39,314

47,714

Loans and advances to customers (net)

47,593

46,132

45,806

42,497

39,217

47,593

Total external assets

52,224

52,058

50,757

47,901

43,790

52,224

Customer accounts

62,943

61,464

62,235

64,489

64,658

62,943

Income statement metrics‐ Reported

Cost efficiency ratio

179.4%

60.3%

78.2%

78.2%

82.8%

98.4%

Income statement metrics ‐ Adjusted as originally reported

Adjusted cost efficiency ratio

82.1%

73.0%

75.9%

77.8%

84.2%

77.1%

Management View of Adjusted Revenue ‐ as originally reported

Investment

188

207

198

184

162

777

Lending

110

109

107

97

93

423

Deposit

111

112

119

121

126

463

Other

43

44

49

48

43

184

Total

452

472

473

450

424

1,847

Revenue

Significant items

Customer redress programmes

-

-

-

-

-

-

Disposals, acquisitions and investment in new businesses

-

-

-

-

5

-

Fair value movement on financial instruments

-

-

-

-

-

-

Operating expenses

Significant items

Costs of structural reform

-

-

-

-

-

-

Customer redress programmes

-

-

-

-

-

-

Disposals, acquisitions and investment in new businesses

-

-

-

-

2

-

Goodwill impairment

(431)

-

-

-

-

(431)

Past service costs of guaranteed minimum pension benefits equalisation

-

-

-

-

-

-

Restructuring and other related costs

(13)

(5)

(12)

(2)

-

(32)

Settlements and provisions in connection with legal and regulatory matters

4

65

1

-

-

70

7

HSBC

Corporate Centre

Quarter ended

Year to date

31 Dec

30 Sep

30 Jun

31 Mar

31 Dec

31 Dec

2019

2019

2019

2019

2018

2019

$m

$m

$m

$m

$m

$m

Net interest income

(852)

(890)

(935)

(934)

(783)

(3,611)

Net fee income/(expense)

(18)

(28)

(14)

(16)

4

(76)

Net income from financial instruments held for trading or managed on a fair value basis

798

1,014

783

1,122

1,367

3,717

Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives,

measured at fair value through profit or loss

3

2

(13)

(2)

-

(10)

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or

loss

7

11

74

30

15

122

Other income/(expense)

(161)

(31)

1,112

(129)

(262)

791

Net operating income before change in expected credit losses and other credit impairment charges

(223)

78

1,007

71

341

933

Change in expected credit losses and other credit impairment (charges)/recoveries

(27)

13

2

6

2

(6)

Net operating income/(expense)

(250)

91

1,009

77

343

927

Total operating expenses

(1,193)

115

(296)

(260)

(1,499)

(1,634)

of which: staff expenses

(1,350)

(1,295)

(1,501)

(1,499)

(1,434)

(5,645)

Operating profit/(loss)

(1,443)

206

713

(183)

(1,156)

(707)

Share of profit in associates and joint ventures

513

505

702

579

546

2,299

Profit/(loss) before tax

(930)

711

1,415

396

(610)

1,592

Significant items ‐ Totals

Revenue

(140)

173

872

75

70

980

ECL

-

-

-

-

-

-

Operating expenses

(211)

(118)

(124)

(45)

(285)

(498)

Share of profit in associates and joint ventures

-

-

-

-

-

-

Balance sheet data

At

At

31 Dec

30 Sep

30 Jun

31 Mar

31 Dec

31 Dec

2019

2019

2019

2019

2018

2019

Loans and advances to customers (gross)

1,445

1,602

1,537

1,708

2,483

1,445

Loans and advances to customers (net)

1,431

1,589

1,523

1,695

2,467

1,431

Total external assets

702,214

675,205

705,094

677,028

665,062

702,214

Customer accounts

8,083

7,747

8,616

7,239

8,551

8,083

Income statement Metrics ‐ Reported

Cost efficiency ratio

(535.0)%

(147.4)%

29.4%

366.2%

439.6%

175.1%

Income statement Metrics ‐ Adjusted as originally reported

Adjusted cost efficiency ratio

(1,183.1)%

245.3%

127.4%

(5,375.0)%

448.0%

(2,417.0)%

Management View of Adjusted Revenue ‐ as originally reported

Central Treasury

(23)

313

269

305

283

864

Of which:

Balance Sheet Management

450

626

593

623

635

2,292

Holdings interest expense1,2

(318)

(321)

(348)

(338)

(360)

(1,325)

Valuation differences on long‐term debt and associated swaps

(73)

76

93

50

67

146

Other central treasury

(82)

(68)

(69)

(30)

(59)

(249)

Legacy Credit

13

(40)

(13)

(71)

(12)

(111)

Other1

(73)

(367)

(121)

(238)

-

(799)

Of which Argentina hyperinflation

30

(132)

14

(56)

73

(144)

Total2

(83)

(94)

135

(4)

271

(46)

Revenue

Significant items

Customer redress programmes

-

-

-

-

-

-

Disposals, acquisitions and investment in new businesses

(7)

-

827

-

24

820

Fair value movement on financial instruments

(133)

173

45

75

46

160

Operating expenses

Significant items

Costs of structural reform

(27)

(26)

(21)

(38)

(45)

(112)

Customer redress programmes

-

-

-

-

-

-

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

Goodwill impairment

-

-

-

-

-

-

Past service costs of guaranteed minimum pension benefits equalisation

-

-

-

-

(228)

-

Restructuring and other related costs

(178)

(90)

(104)

(7)

(15)

(379)

Settlements and provisions in connection with legal and regulatory matters

(6)

(2)

1

-

3

(7)

1 With effect from 3Q19, we have changed the presentation of interest expense on certain derivatives from Other to Holdings Interest Expense. Total Corporate Centre quarterly revenue is unchanged. 2 All quarters have been re‐presented for all three of these changes.

8

HSBC

Europe

Quarter ended 31 Dec 2019

Quarter ended 30 Sep 2019

Retail

Global

Retail

Global

Banking

Banking

Global

Banking

Banking

Global

and Wealth

Commercial

and

Private

Corporate

and Wealth

Commercial

and

Private

Corporate

Management

Banking

Markets

Banking

Centre

Total

Management

Banking

Markets

Banking

Centre

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Net interest income/(expense)

1,056

840

218

91

(856)

1,349

963

830

233

95

(1,179)

942

Net fee income/(expense)

350

335

169

89

(20)

923

362

321

134

83

(24)

876

Net income from financial instruments held for trading or managed on a fair value basis

9

-

565

10

205

789

(3)

14

329

11

807

1,158

Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives,

measured at fair value through profit or loss

392

-

-

-

1

393

208

-

-

-

(1)

207

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or

loss

47

29

110

-

280

466

4

-

169

-

281

454

Other income/(expense)

220

301

173

4

(45)

653

32

152

131

(4)

281

592

Net operating income before change in expected credit losses and other credit impairment charges

2,074

1,505

1,235

194

(435)

4,573

1,566

1,317

996

185

165

4,229

Change in expected credit losses and other credit impairment charges

(84)

(67)

2

1

20

(128)

(124)

(174)

25

(4)

5

(272)

Net operating income/(expense)

1,990

1,438

1,237

195

(415)

4,445

1,442

1,143

1,021

181

170

3,957

Total operating expenses

(1,932)

(3,518)

(1,404)

(185)

(1,084)

(8,123)

(2,000)

(859)

(1,156)

(112)

(264)

(4,391)

of which: staff expenses

(477)

(253)

(487)

(78)

(498)

(1,793)

(400)

(238)

(372)

(70)

(411)

(1,491)

Operating profit/(loss)

58

(2,080)

(167)

10

(1,499)

(3,678)

(558)

284

(135)

69

(94)

(434)

Share of profit/(loss) in associates and joint ventures

-

-

-

-

(30)

(30)

-

-

-

-

11

11

Profit/(loss) before tax

58

(2,080)

(167)

10

(1,529)

(3,708)

(558)

284

(135)

69

(83)

(423)

Significant items ‐ Totals

Revenue

(46)

3

(24)

-

(134)

(201)

(109)

(9)

16

-

173

71

ECL

-

-

-

-

-

-

-

-

-

-

-

-

Operating expenses

(253)

(2,544)

(74)

(7)

(120)

(2,998)

(470)

(18)

(34)

61

(86)

(547)

Share of profit in associates and joint ventures

-

-

-

-

-

-

-

-

-

-

-

-

At 31 Dec 2019

At 30 Sep 2019

Balance sheet data

Loans and advances to customers (gross)

181,403

123,110

71,192

20,514

1,245

397,464

166,711

119,669

74,140

18,816

1,289

380,625

Loans and advances to customers (net)

180,241

121,238

70,742

20,396

1,233

393,850

165,674

117,801

73,698

18,704

1,275

377,152

Total external assets

220,325

123,845

559,591

23,610

246,755

1,174,126

204,015

122,479

575,839

22,128

240,146

1,164,607

Customer accounts

219,531

148,334

124,131

31,159

5,563

528,718

203,243

133,647

126,593

28,500

4,891

496,874

Income statement Metrics ‐ Reported

Cost efficiency ratio

93.2%

233.8%

113.7%

95.4%

(249.2)%

177.6%

127.7%

65.2%

116.1%

60.5%

160.0%

103.8%

Income Statement metrics ‐ Adjusted as originally reported

Adjusted cost efficiency ratio

79.2%

64.8%

105.6%

91.8%

(320.3)%

107.4%

91.3%

63.4%

114.5%

93.5%

(2,225.0)%

92.4%

Revenue

Significant items

Customer redress programmes

(48)

3

-

-

-

(45)

(109)

(9)

-

-

-

(118)

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Fair value movements on financial instruments

-

-

(24)

-

(135)

(159)

-

-

16

-

173

189

Operating expenses

Significant items

Costs of structural reform

-

-

(6)

-

(25)

(31)

-

(1)

(7)

-

(24)

(32)

Customer redress programmes

(180)

(2)

-

-

-

(182)

(469)

(16)

(4)

-

-

(489)

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Goodwill impairment

-

(2,521)

-

-

-

(2,521)

-

-

-

-

-

-

Past service costs of guaranteed minimum pension benefits equalisation

-

-

-

-

-

-

-

-

-

-

-

-

Restructuring and other related costs

(73)

(20)

(67)

(10)

(89)

(259)

(1)

(1)

(23)

(4)

(60)

(89)

Settlements and provisions in connection with legal and regulatory matters

-

-

(2)

3

(5)

(4)

-

-

-

65

(2)

63

9

HSBC

Europe

Quarter ended 30 Jun 2019

Quarter ended 31 Mar 2019

Retail

Global

Retail

Global

Banking

Banking

Global

Banking

Banking

Global

and Wealth

Commercial

and

Private

Corporate

and Wealth

Commercial

and

Private

Corporate

Management

Banking

Markets

Banking

Centre

Total

Management

Banking

Markets

Banking

Centre

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Net interest income/(expense)

1,086

874

248

93

(516)

1,785

1,103

878

231

90

(777)

1,525

Net fee income/(expense)

409

370

109

81

(11)

958

334

348

162

78

(11)

911

Net income from financial instruments held for trading or managed on a fair value basis

1

4

738

10

(122)

631

(23)

14

588

8

620

1,207

Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives,

324

-

-

-

(15)

309

747

-

-

-

-

747

measured at fair value through profit or loss

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or

(19)

10

128

-

186

305

105

19

100

-

67

291

loss

Other income/(expense)

(3)

64

(70)

10

660

661

(591)

25

318

4

168

(76)

Net operating income before change in expected credit losses and other credit impairment charges

1,798

1,322

1,153

194

182

4,649

1,675

1,284

1,399

180

67

4,605

Change in expected credit losses and other credit impairment charges

(88)

(102)

(33)

(16)

4

(235)

(83)

(176)

(48)

(3)

7

(303)

Net operating income/(expense)

1,710

1,220

1,120

178

186

4,414

1,592

1,108

1,351

177

74

4,302

Total operating expenses

(2,058)

(723)

(1,319)

(184)

(642)

(4,926)

(1,505)

(696)

(1,324)

(179)

(614)

(4,318)

of which: staff expenses

(430)

(238)

(489)

(83)

(520)

(1,760)

(422)

(236)

(462)

(78)

(508)

(1,706)

Operating profit/(loss)

(348)

497

(199)

(6)

(456)

(512)

87

412

27

(2)

(540)

(16)

Share of profit/(loss) in associates and joint ventures

-

-

-

-

5

5

-

-

-

-

2

2

Profit/(loss) before tax

(348)

497

(199)

(6)

(451)

(507)

87

412

27

(2)

(538)

(14)

Significant items ‐ Totals

Revenue

-

-

(7)

-

54

47

-

-

(21)

-

81

60

ECL

-

-

-

-

-

-

-

-

-

-

-

-

Operating expenses

(588)

(12)

(47)

(11)

(89)

(747)

(56)

(3)

(42)

(2)

(40)

(143)

Share of profit in associates and joint ventures

-

-

-

-

-

-

-

-

-

-

-

-

At 30 Jun 2019

At 31 Mar 2019

Balance sheet data

Loans and advances to customers (gross)

169,196

122,946

74,208

19,241

1,336

386,927

169,024

122,552

76,286

18,398

1,485

387,745

Loans and advances to customers (net)

168,201

121,098

73,613

19,129

1,322

383,363

168,041

120,583

75,732

18,302

1,471

384,129

Total external assets

207,459

126,439

554,789

22,213

248,538

1,159,438

206,728

125,626

536,617

21,630

229,999

1,120,600

Customer accounts

207,157

136,183

125,575

30,742

4,729

504,386

207,681

136,920

127,205

31,687

3,966

507,459

Income statement Metrics ‐ Reported

Cost efficiency ratio

114.5%

54.7%

114.4%

94.8%

352.7%

106.0%

89.9%

54.2%

94.6%

99.4%

916.4%

93.8%

Income Statement metrics ‐ Adjusted as originally reported

Adjusted cost efficiency ratio

81.8%

53.8%

109.7%

89.2%

432.0%

90.8%

86.5%

54.0%

90.3%

98.3%

(4,100.0)%

91.9%

Revenue

Significant items

Customer redress programmes

-

-

-

-

-

-

-

-

-

-

-

-

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Fair value movements on financial instruments

-

-

(7)

-

54

47

-

-

(21)

-

81

60

Operating expenses

Significant items

Costs of structural reform

-

(1)

(16)

-

(22)

(39)

-

(2)

(13)

-

(37)

(52)

Customer redress programmes

(559)

1

4

-

-

(554)

(56)

-

-

-

-

(56)

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Goodwill impairment

-

-

-

-

-

-

-

-

-

-

-

-

Past service costs of guaranteed minimum pension benefits equalisation

-

-

-

-

-

-

-

-

-

-

-

-

Restructuring and other related costs

(29)

(12)

(35)

(11)

(68)

(155)

-

(1)

(28)

(2)

(4)

(35)

Settlements and provisions in connection with legal and regulatory matters

-

-

-

-

1

1

-

-

-

-

-

-

10

HSBC

Europe

Quarter ended 31 Dec 2018

Year to date 31 Dec 2019

Retail

Global

Retail

Global

Banking

Banking

Global

Banking

Banking

Global

and Wealth

Commercial

and

Private

Corporate

and Wealth

Commercial

and

Private

Corporate

Management

Banking

Markets

Banking

Centre

Total

Management

Banking

Markets

Banking

Centre

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Net interest income/(expense)

1,121

873

258

92

(715)

1,629

4,208

3,422

930

369

(3,328)

5,601

Net fee income/(expense)

386

346

112

78

(12)

910

1,455

1,374

574

331

(66)

3,668

Net income from financial instruments held for trading or managed on a fair value basis

25

4

(101)

9

957

894

(16)

32

2,220

39

1,510

3,785

Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives,

(752)

-

-

-

-

(752)

1,671

-

-

-

(15)

1,656

measured at fair value through profit or loss

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or

(60)

(32)

244

-

(247)

(95)

137

58

507

-

814

1,516

loss

Other income/(expense)

837

67

370

3

134

1,411

(342)

542

552

14

1,064

1,830

Net operating income before change in expected credit losses and other credit impairment charges

1,557

1,258

883

182

117

3,997

7,113

5,428

4,783

753

(21)

18,056

Change in expected credit losses and other credit impairment charges

(157)

(217)

(56)

(6)

13

(423)

(379)

(519)

(54)

(22)

36

(938)

Net operating income/(expense)

1,400

1,041

827

176

130

3,574

6,734

4,909

4,729

731

15

17,118

Total operating expenses

(1,433)

(649)

(1,240)

(186)

(1,629)

(5,137)

(7,495)

(5,796)

(5,203)

(660)

(2,604)

(21,758)

of which: staff expenses

(396)

(224)

(427)

(74)

(608)

(1,729)

(1,729)

(965)

(1,810)

(309)

(1,937)

(6,750)

Operating profit/(loss)

(33)

392

(413)

(10)

(1,499)

(1,563)

(761)

(887)

(474)

71

(2,589)

(4,640)

Share of profit/(loss) in associates and joint ventures

-

-

-

-

4

4

-

-

-

-

(12)

(12)

Profit/(loss) before tax

(33)

392

(413)

(10)

(1,495)

(1,559)

(761)

(887)

(474)

71

(2,601)

(4,652)

Significant items ‐ Totals

Revenue

-

7

22

5

68

102

(155)

(6)

(36)

-

174

(23)

ECL

-

-

-

-

-

-

-

-

-

-

-

-

Operating expenses

(15)

8

29

1

(272)

(249)

(1,367)

(2,577)

(197)

41

(335)

(4,435)

Share of profit in associates and joint ventures

-

-

-

-

-

-

-

-

-

-

-

-

At 31 Dec 2018

At 31 Dec 2019

Balance sheet data

Loans and advances to customers (gross)

165,063

119,478

71,632

18,197

2,301

376,671

181,403

123,110

71,192

20,514

1,245

397,464

Loans and advances to customers (net)

164,112

117,544

71,031

18,103

2,286

373,076

180,241

121,238

70,742

20,396

1,233

393,850

Total external assets

201,790

122,802

499,112

21,313

215,878

1,060,895

220,325

123,845

559,591

23,610

246,755

1,174,126

Customer accounts

202,207

134,905

130,033

31,408

4,601

503,154

219,531

148,334

124,131

31,159

5,563

528,718

Income statement Metrics ‐ Reported

Cost efficiency ratio

92.0%

51.6%

140.4%

102.2%

1,392.3%

128.5%

105.4%

106.8%

108.8%

87.6%

(12,400.0)%

120.5%

Income Statement metrics ‐ Adjusted as originally reported

Adjusted cost efficiency ratio

91.1%

52.5%

147.4%

105.6%

2,769.4%

125.5%

84.3%

59.2%

103.9%

93.1%

(1,163.6)%

95.8%

Revenue

Significant items

Customer redress programmes

-

7

-

-

-

7

(157)

(6)

-

-

-

(163)

Disposals, acquisitions and investment in new businesses

-

-

-

5

-

5

-

-

-

-

-

-

Fair value movements on financial instruments

-

-

22

-

68

90

-

-

(36)

-

173

137

Operating expenses

Significant items

Costs of structural reform

1

(3)

(14)

-

(41)

(57)

-

(4)

(42)

-

(108)

(154)

Customer redress programmes

(16)

11

21

-

-

16

(1,264)

(17)

-

-

-

(1,281)

Disposals, acquisitions and investment in new businesses

-

-

-

2

-

2

-

-

-

-

-

-

Goodwill impairment

-

-

-

-

-

-

-

(2,521)

-

-

-

(2,521)

Past service costs of guaranteed minimum pension benefits equalisation

-

-

-

-

(228)

(228)

-

-

-

-

-

-

Restructuring and other related costs

-

-

-

-

(6)

(6)

(103)

(34)

(153)

(27)

(221)

(538)

Settlements and provisions in connection with legal and regulatory matters

-

-

22

(1)

3

24

-

-

(2)

68

(6)

60

11

HSBC

HSBC UK

UK ring‐fenced bank

Quarter ended 31 Dec 2019

Quarter ended 30 Sep 2019

Retail

Global

Retail

Global

Banking

Banking

Global

Banking

Banking

Global

and Wealth

Commercial

and

Private

Corporate

and Wealth

Commercial

and

Private

Corporate

Management

Banking

Markets

Banking

Centre

Total

Management

Banking

Markets

Banking

Centre

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Net interest income/(expense)

858

613

(4)

33

10

1,510

762

591

2

33

17

1,405

Net fee income/(expense)

211

232

(66)

10

(4)

383

205

213

(41)

13

(4)

386

Net income from financial instruments held for trading or managed on a fair value basis

8

(4)

127

1

(1)

131

17

6

90

1

(2)

112

Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives,

measured at fair value through profit or loss

-

-

-

-

-

-

-

-

-

-

-

-

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or

loss

-

1

-

-

-

1

-

1

-

-

-

1

Other income

6

8

-

7

16

37

7

8

-

3

5

23

Net operating income before change in expected credit losses and other credit impairment charges

1,083

850

57

51

21

2,062

991

819

51

50

16

1,927

Change in expected credit losses and other credit impairment charges

(82)

(19)

-

(1)

-

(102)

(118)

(128)

-

(3)

-

(249)

Net operating income

1,001

831

57

50

21

1,960

873

691

51

47

16

1,678

Total operating expenses

(962)

(414)

(35)

(41)

18

(1,434)

(1,207)

(421)

(38)

(42)

7

(1,701)

of which: staff expenses

(240)

(115)

(5)

(14)

59

(315)

(186)

(111)

(2)

(15)

44

(270)

Operating profit

39

417

22

9

39

526

(334)

270

13

5

23

(23)

Share of profit in associates and joint ventures

-

-

-

-

-

-

-

-

-

-

-

-

Profit before tax

39

417

22

9

39

526

(334)

270

13

5

23

(23)

Significant items ‐ Totals

Revenue

(45)

3

-

-

-

(42)

(109)

(9)

-

-

-

(118)

ECL

-

-

-

-

-

-

-

-

-

-

-

-

Operating expenses

(226)

(5)

-

(1)

(19)

(251)

(467)

(15)

-

-

(18)

(500)

Share of profit in associates and joint ventures

-

-

-

-

-

-

-

-

-

-

-

-

At 31 Dec 2019

At 30 Sep 2019

Balance sheet data

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Loans and advances to customers (gross)

151,302

86,475

-

5,755

705

244,237

138,212

82,492

-

5,420

682

226,806

Loans and advances to customers (net)

150,366

85,272

-

5,675

705

242,018

137,401

81,302

-

5,346

681

224,730

Total external assets

154,171

87,935

65

6,232

90,239

338,642

141,015

83,742

29

5,894

82,564

313,244

Customer accounts

178,135

99,544

-

7,828

348

285,855

163,826

90,334

-

7,692

274

262,126

Income Statement Metrics

Cost efficiency ratio

88.8%

48.7%

61.4%

80.4%

(85.7)%

69.5%

121.8%

51.4%

74.5%

84.0%

(43.8)%

88.3%

Income Statement metrics ‐ Adjusted as originally reported

Adjusted cost efficiency ratio

65.2%

48.3%

61.4%

78.4%

(176.2)%

56.2%

67.3%

49.0%

74.5%

84.0%

(156.3)%

58.7%

Revenue

Significant items

Customer redress programmes

(45)

3

-

-

-

(42)

(109)

(9)

-

-

-

(118)

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Fair value movements on financial instruments

-

-

-

-

-

-

-

-

-

-

-

-

Operating expenses

Significant items

Costs of structural reform

-

-

-

-

-

-

-

-

-

-

-

-

Customer redress programmes

(180)

(2)

-

-

-

(182)

(469)

(15)

-

-

-

(484)

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

-

Goodwill impairment

-

-

-

-

-

-

-

-

-

-

-

-

Past service costs of guaranteed minimum pension benefits equalisation

-

-

-

-

-

-

-

-

-

-

-

-

Restructuring and other related costs

(46)

(3)

-

(1)

(19)

(69)

2

-

-

-

(18)

(16)

Settlements and provisions in connection with legal and regulatory matters

-

-

-

-

-

-

-

-

-

-

-

-

12

HSBC

HSBC UK

UK ring‐fenced bank

Quarter ended 30 Jun 2019

Quarter ended 31 Mar 2019

Retail

Global

Retail

Global

Banking

Banking

Global

Banking

Banking

Global

and Wealth

Commercial

and

Private

Corporate

and Wealth

Commercial

and

Private

Corporate

Management

Banking

Markets

Banking

Centre

Total

Management

Banking

Markets

Banking

Centre

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Net interest income/(expense)

876

638

2

34

14

1,564

894

643

-

35

16

1,588

Net fee income/(expense)

243

254

(62)

11

(2)

444

182

226

(61)

10

(2)

355

Net income from financial instruments held for trading or managed on a fair value basis

14

1

114

1

1

131

9

1

123

1

3

137

Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives,

-

-

-

-

-

-

-

-

-

-

-

-

measured at fair value through profit or loss

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or

-

(1)

-

-

-

(1)

-

1

-

-

-

1

loss

Other income

1

10

-

4

13

28

1

8

-

5

24

38

Net operating income before change in expected credit losses and other credit impairment charges

1,134

902

54

50

26

2,166

1,086

879

62

51

41

2,119

Change in expected credit losses and other credit impairment charges

(88)

(78)

-

(18)

-

(184)

(87)

(156)

-

(2)

-

(245)

Net operating income

1,046

824

54

32

26

1,982

999

723

62

49

41

1,874

Total operating expenses

(1,352)

(391)

(36)

(38)

(8)

(1,825)

(799)

(346)

(45)

(41)

-

(1,231)

of which: staff expenses

(227)

(122)

(3)

(15)

45

(322)

(199)

(115)

(4)

(16)

48

(286)

Operating profit

(306)

433

18

(6)

18

157

200

377

17

8

41

643

Share of profit in associates and joint ventures

-

-

-

-

-

-

-

-

-

-

-

-

Profit before tax

(306)

433

18

(6)

18

157

200

377

17

8

41

643

Significant items ‐ Totals

Revenue

-

-

-

-

-

-

-

-

-

-

-

-

ECL

-

-

-

-

-

-

-

-

-

-

-

-

Operating expenses

(586)

(11)

-

-

(18)

(615)

(56)

-

-

-

(1)

(57)

Share of profit in associates and joint ventures

-

-

-

-

-

-

-

-

-

-

-

-

At 30 Jun 2019

At 31 Mar 2019

Balance sheet data

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Loans and advances to customers (gross)

140,353

84,365

-

5,561

764

231,043

141,068

85,693

-

5,574

918

233,253

Loans and advances to customers (net)

139,614

83,220

-

5,487

764

229,085

140,325

84,507

-

5,517

918

231,267

Total external assets

143,404

85,990

22

6,040

79,836

315,292

144,146

87,419

80

6,075

78,297

316,017

Customer accounts

167,167

90,210

-

7,191

107

264,675

168,841

90,406

-

7,173

48

266,468

Income Statement Metrics

Cost efficiency ratio

119.2%

43.3%

66.7%

76.0%

30.8%

84.3%

73.6%

39.4%

72.6%

80.4%

-%

58.1%

Income Statement metrics ‐ Adjusted as originally reported

Adjusted cost efficiency ratio

67.5%

42.1%

66.7%

76.0%

(38.5)%

55.9%

68.4%

39.4%

72.6%

80.4%

(2.4)%

55.4%

Revenue

Significant items

Customer redress programmes

-

-

-

-

-

-

-

-

-

-

-

-

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Fair value movements on financial instruments

-

-

-

-

-

-

-

-

-

-

-

-

Operating expenses

Significant items

Costs of structural reform

-

-

-

-

-

-

-

-

-

-

(1)

(1)

Customer redress programmes

(559)

-

-

-

-

(559)

(56)

-

-

-

-

(56)

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Goodwill impairment

-

-

-

-

-

-

-

-

-

-

-

-

Past service costs of guaranteed minimum pension benefits equalisation

-

-

-

-

-

-

-

-

-

-

-

-

Restructuring and other related costs

(27)

(11)

-

-

(18)

(56)

-

-

-

-

-

-

Settlements and provisions in connection with legal and regulatory matters

-

-

-

-

-

-

-

-

-

-

-

-

13

HSBC

HSBC UK

UK ring‐fenced bank

Quarter ended 31 Dec 2018

Year to date 31 Dec 2019

Retail

Global

Retail

Global

Banking

Banking

Global

Banking

Banking

Global

and Wealth

Commercial

and

Private

Corporate

and Wealth

Commercial

and

Private

Corporate

Management

Banking

Markets

Banking

Centre

Total

Management

Banking

Markets

Banking

Centre

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Net interest income/(expense)

900

645

(3)

35

9

1,586

3,390

2,485

-

135

57

6,067

Net fee income/(expense)

224

240

(65)

9

12

420

841

925

(230)

44

(12)

1,568

Net income from financial instruments held for trading or managed on a fair value basis

6

1

116

1

(4)

120

48

4

454

4

1

511

Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives,

-

-

-

-

-

-

-

-

-

-

-

-

measured at fair value through profit or loss

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or

1

(2)

-

-

-

(1)

-

2

-

-

-

2

loss

Other income

(6)

22

-

3

12

31

15

34

-

19

58

126

Net operating income before change in expected credit losses and other credit impairment charges

1,125

906

48

48

29

2,156

4,294

3,450

224

202

104

8,274

Change in expected credit losses and other credit impairment charges

(152)

(183)

-

(7)

-

(342)

(375)

(381)

-

(24)

-

(780)

Net operating income

973

723

48

41

29

1,814

3,919

3,069

224

178

104

7,494

Total operating expenses

(746)

(327)

(48)

(34)

(205)

(1,360)

(4,320)

(1,572)

(154)

(162)

17

(6,191)

of which: staff expenses

(192)

(108)

(4)

(12)

(186)

(502)

(852)

(463)

(14)

(60)

196

(1,193)

Operating profit

227

396

-

7

(176)

454

(401)

1,497

70

16

121

1,303

Share of profit in associates and joint ventures

-

-

-

-

-

-

-

-

-

-

-

-

Profit before tax

227

396

-

7

(176)

454

(401)

1,497

70

16

121

1,303

Significant items ‐ Totals

Revenue

-

6

-

-

-

6

(154)

(6)

-

-

-

(160)

ECL

-

-

-

-

-

-

-

-

-

-

-

-

Operating expenses

(15)

10

-

-

(235)

(240)

(1,335)

(31)

-

(1)

(56)

(1,423)

Share of profit in associates and joint ventures

-

-

-

-

-

-

-

-

-

-

-

-

At 31 Dec 2018

At 31 Dec 2019

Balance sheet data

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Loans and advances to customers (gross)

136,814

81,602

-

5,506

1,135

225,057

151,302

86,475

-

5,755

705

244,237

Loans and advances to customers (net)

136,119

80,489

-

5,451

1,135

223,194

150,366

85,272

-

5,675

705

242,018

Total external assets

139,741

83,174

179

5,979

74,374

303,447

154,171

87,935

65

6,232

90,239

338,642

Customer accounts

163,952

90,583

-

6,816

184

261,535

178,135

99,544

-

7,828

348

285,855

Income Statement Metrics

Cost efficiency ratio

66.3%

36.1%

100.0%

70.8%

706.9%

63.1%

100.6%

45.6%

68.8%

80.2%

(16.3)%

74.8%

Income Statement metrics ‐ Adjusted as originally reported

Adjusted cost efficiency ratio

65.0%

37.4%

100.0%

70.8%

(103.4)%

52.1%

67.1%

44.6%

68.8%

79.7%

(70.2)%

56.5%

Revenue

Significant items

Customer redress programmes

-

6

-

-

-

6

(154)

(6)

-

-

-

(160)

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Fair value movements on financial instruments

-

-

-

-

-

-

-

-

-

-

-

-

Operating expenses

Significant items

Costs of structural reform

1

(1)

-

-

(3)

(3)

-

-

-

-

(1)

(1)

Customer redress programmes

(16)

11

-

-

-

(5)

(1,264)

(17)

-

-

-

(1,281)

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Goodwill impairment

-

-

-

-

-

-

-

-

-

-

-

-

Past service costs of guaranteed minimum pension benefits equalisation

-

-

-

-

(232)

(232)

-

-

-

-

-

-

Restructuring and other related costs

-

-

-

-

-

-

(71)

(14)

-

(1)

(55)

(141)

Settlements and provisions in connection with legal and regulatory matters

-

-

-

-

-

-

-

-

-

-

-

-

14

HSBC

HSBC Bank

Non ring‐fenced bank

Quarter ended 31 Dec 2019

Quarter ended 30 Sep 2019

Retail

Global

Retail

Global

Banking

Banking

Global

Banking

Banking

Global

and Wealth

Commercial

and

Private

Corporate

and Wealth

Commercial

and

Private

Corporate

Management

Banking

Markets

Banking

Centre

Total

Management

Banking

Markets

Banking

Centre

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Net interest income/(expense)

200

226

214

26

(165)

501

203

239

226

28

(175)

521

Net fee income/(expense)

78

103

235

38

(10)

444

90

107

175

31

(7)

396

Net income from financial instruments held for trading or managed on a fair value basis

(4)

5

475

2

197

675

(17)

8

245

3

164

403

Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives,

measured at fair value through profit or loss

392

-

-

-

1

393

208

-

-

-

(1)

207

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or

loss

36

28

110

-

8

182

3

(1)

169

-

5

176

Other income/(expense)

(206)

6

144

3

(47)

(100)

(268)

6

154

(6)

(13)

(127)

Net operating income before change in expected credit losses and other credit impairment charges

496

368

1,178

69

(16)

2,095

219

359

969

56

(27)

1,576

Change in expected credit losses and other credit impairment charges

(2)

(48)

2

1

19

(28)

(6)

(45)

25

-

3

(23)

Net operating income

494

320

1,180

70

3

2,067

213

314

994

56

(24)

1,553

Total operating expenses

(266)

(198)

(1,188)

(48)

(109)

(1,809)

(296)

(203)

(1,042)

(46)

(35)

(1,622)

of which: staff expenses

(114)

(72)

(384)

(18)

(165)

(753)

(111)

(75)

(294)

(16)

(118)

(614)

Operating profit/(loss)

228

122

(8)

22

(106)

258

(83)

111

(48)

10

(59)

(69)

Share of profit/(loss) in associates and joint ventures

-

-

-

-

(29)

(29)

-

-

-

-

10

10

Profit/(loss) before tax

228

122

(8)

22

(135)

229

(83)

111

(48)

10

(49)

(59)

Significant items ‐ Totals

Revenue

(1)

-

(24)

-

1

(24)

-

-

16

-

(1)

15

ECL

-

-

-

-

-

-

-

-

-

-

-

-

Operating expenses

(16)

(6)

(71)

(3)

(63)

(159)

(1)

-

(37)

(1)

(26)

(65)

Share of profit in associates and joint ventures

-

-

-

-

-

-

-

-

-

-

-

-

At 31 Dec 2019

At 30 Sep 2019

Balance sheet data

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Loans and advances to customers (gross)

30,100

36,635

71,192

5,680

541

144,148

28,499

37,177

74,140

5,083

607

145,506

Loans and advances to customers (net)

29,875

35,966

70,742

5,665

527

142,775

28,273

36,499

73,698

5,067

595

144,132

Total external assets

64,689

38,168

558,111

6,113

132,811

799,892

61,594

38,493

574,395

5,526

134,409

814,417

Customer accounts

41,395

48,789

124,131

9,915

5,129

229,359

39,417

43,313

126,593

9,835

4,533

223,691

Income Statement Metrics

Cost efficiency ratio

53.6%

53.8%

100.8%

69.6%

(681.3)%

86.3%

135.2%

56.5%

107.5%

82.1%

(129.6)%

102.9%

Income Statement metrics ‐ Adjusted as originally reported

Adjusted cost efficiency ratio

50.3%

52.2%

92.9%

65.2%

(270.6)%

77.9%

134.7%

56.5%

105.5%

80.4%

(34.6)%

99.7%

Revenue

Significant items

Customer redress programmes

(1)

-

-

-

-

(1)

-

-

-

-

-

-

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Fair value movements on financial instruments

-

-

(24)

-

1

(23)

-

-

16

-

(1)

15

Operating expenses

Significant items

Costs of structural reform

-

-

(4)

-

(11)

(15)

-

(1)

(10)

-

(10)

(21)

Customer redress programmes

(1)

-

-

-

-

(1)

-

1

(4)

-

-

(3)

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Goodwill impairment

-

-

-

-

-

-

-

-

-

-

-

-

Past service costs of guaranteed minimum pension benefits equalisation

-

-

-

-

-

-

-

-

-

-

-

-

Restructuring and other related costs

(16)

(6)

(65)

(3)

(45)

(135)

(1)

-

(24)

(1)

(13)

(39)

Settlements and provisions in connection with legal and regulatory matters

-

-

(2)

-

(6)

(8)

-

-

-

-

(2)

(2)

15

HSBC

HSBC Bank

Non ring‐fenced bank

Quarter ended 30 Jun 2019

Quarter ended 31 Mar 2019

Retail

Global

Retail

Global

Banking

Banking

Global

Banking

Banking

Global

and Wealth

Commercial

and

Private

Corporate

and Wealth

Commercial

and

Private

Corporate

Management

Banking

Markets

Banking

Centre

Total

Management

Banking

Markets

Banking

Centre

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Net interest income/(expense)

213

236

242

26

(220)

497

212

236

229

23

(331)

369

Net fee income/(expense)

99

116

171

32

(5)

413

89

122

222

32

-

465

Net income from financial instruments held for trading or managed on a fair value basis

(12)

3

428

2

222

643

(33)

13

668

2

268

918

Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives,

324

-

-

-

(15)

309

747

-

-

-

-

747

measured at fair value through profit or loss

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or

(26)

11

128

-

28

141

82

18

100

-

-

200

loss

Other income/(expense)

(178)

11

159

2

30

24

(772)

2

143

(3)

(34)

(664)

Net operating income before change in expected credit losses and other credit impairment charges

420

377

1,128

62

40

2,027

325

391

1,362

54

(97)

2,035

Change in expected credit losses and other credit impairment charges

-

(24)

(33)

-

4

(53)

5

(21)

(48)

-

8

(56)

Net operating income

420

353

1,095

62

44

1,974

330

370

1,314

54

(89)

1,979

Total operating expenses

(296)

(196)

(1,224)

(47)

(108)

(1,871)

(343)

(219)

(1,177)

(47)

(106)

(1,892)

of which: staff expenses

(107)

(74)

(395)

(17)

(148)

(741)

(116)

(78)

(375)

(16)

(150)

(735)

Operating profit/(loss)

124

157

(129)

15

(64)

103

(13)

151

137

7

(195)

87

Share of profit/(loss) in associates and joint ventures

-

-

-

-

4

4

-

-

-

-

2

2

Profit/(loss) before tax

124

157

(129)

15

(60)

107

(13)

151

137

7

(193)

89

Significant items ‐ Totals

Revenue

-

-

(7)

-

3

(4)

-

-

(21)

-

-

(21)

ECL

-

-

-

-

-

-

-

-

-

-

-

-

Operating expenses

(2)

(2)

(41)

(2)

(35)

(82)

-

(3)

(39)

-

(31)

(73)

Share of profit in associates and joint ventures

-

-

-

-

-

-

-

-

-

-

-

-

At 30 Jun 2019

At 31 Mar 2019

Balance sheet data

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Loans and advances to customers (gross)

28,843

38,581

74,208

5,088

572

147,292

27,956

36,859

76,286

4,706

567

146,374

Loans and advances to customers (net)

28,587

37,878

73,613

5,073

558

145,709

27,716

36,076

75,732

4,690

554

144,768

Total external assets

62,613

40,181

553,271

5,569

147,905

809,539

60,863

37,945

535,121

5,155

142,315

781,399

Customer accounts

39,990

45,973

125,575

11,848

4,538

227,924

38,840

46,514

127,205

11,522

3,838

227,919

Income Statement Metrics

Cost efficiency ratio

70.5%

52.0%

108.5%

75.8%

270.0%

92.3%

105.5%

56.0%

86.4%

87.0%

(109.3)%

93.0%

Income Statement metrics ‐ Adjusted as originally reported

Adjusted cost efficiency ratio

70.0%

51.5%

104.2%

72.6%

197.3%

88.1%

105.5%

55.2%

82.3%

87.0%

(77.3)%

88.5%

Revenue

Significant items

Customer redress programmes

-

-

-

-

-

-

-

-

-

-

-

-

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Fair value movements on financial instruments

-

-

(7)

-

3

(4)

-

-

(21)

-

-

(21)

Operating expenses

Significant items

Costs of structural reform

-

(1)

(12)

-

(17)

(30)

-

(2)

(11)

-

(31)

(44)

Customer redress programmes

-

-

4

-

-

4

-

-

-

-

-

-

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Goodwill impairment

-

-

-

-

-

-

-

-

-

-

-

-

Past service costs of guaranteed minimum pension benefits equalisation

-

-

-

-

-

-

-

-

-

-

-

-

Restructuring and other related costs

(1)

(1)

(33)

(2)

(20)

(57)

-

(1)

(28)

-

(1)

(30)

Settlements and provisions in connection with legal and regulatory matters

-

-

-

-

1

1

-

-

-

-

-

-

16

HSBC

HSBC Bank

Non ring‐fenced bank

Quarter ended 31 Dec 2018

Year to date 31 Dec 2019

Retail

Global

Retail

Global

Banking

Banking

Global

Banking

Banking

Global

and Wealth

Commercial

and

Private

Corporate

and Wealth

Commercial

and

Private

Corporate

Management

Banking

Markets

Banking

Centre

Total

Management

Banking

Markets

Banking

Centre

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Net interest income/(expense)

224

227

258

26

(321)

414

828

937

911

103

(891)

1,888

Net fee income/(expense)

93

106

285

31

(14)

501

356

448

803

133

(22)

1,718

Net income from financial instruments held for trading or managed on a fair value basis

16

3

(65)

2

310

266

(66)

29

1,816

9

851

2,639

Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives,

(723)

-

-

-

-

(723)

1,671

-

-

-

(15)

1,656

measured at fair value through profit or loss

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or

(60)

(30)

244

-

(4)

150

95

56

507

-

41

699

loss

Other income/(expense)

693

32

154

(4)

18

893

(1,424)

25

600

(4)

(64)

(867)

Net operating income before change in expected credit losses and other credit impairment charges

243

338

876

55

(11)

1,501

1,460

1,495

4,637

241

(100)

7,733

Change in expected credit losses and other credit impairment charges

(5)

(34)

(56)

(1)

14

(82)

(3)

(138)

(54)

1

34

(160)

Net operating income

238

304

820

54

3

1,419

1,457

1,357

4,583

242

(66)

7,573

Total operating expenses

(304)

(199)

(1,107)

(42)

(114)

(1,766)

(1,201)

(816)

(4,631)

(188)

(358)

(7,194)

of which: staff expenses

(113)

(77)

(347)

(15)

(150)

(702)

(448)

(299)

(1,448)

(67)

(581)

(2,843)

Operating profit/(loss)

(66)

105

(287)

12

(111)

(347)

256

541

(48)

54

(424)

379

Share of profit/(loss) in associates and joint ventures

-

-

-

-

4

4

-

-

-

-

(13)

(13)

Profit/(loss) before tax

(66)

105

(287)

12

(107)

(343)

256

541

(48)

54

(437)

366

Significant items ‐ Totals

Revenue

-

-

21

-

(1)

20

(1)

-

(36)

-

3

(34)

ECL

-

-

-

-

-

-

-

-

-

-

-

-

Operating expenses

-

(2)

31

-

(24)

5

(19)

(11)

(188)

(6)

(155)

(379)

Share of profit in associates and joint ventures

-

-

-

-

-

-

-

-

-

-

-

-

At 31 Dec 2018

At 31 Dec 2019

Balance sheet data

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Loans and advances to customers (gross)

28,250

37,876

71,632

4,538

1,165

143,461

30,100

36,635

71,192

5,680

541

144,148

Loans and advances to customers (net)

27,993

37,055

71,031

4,522

1,151

141,751

29,875

35,966

70,742

5,665

527

142,775

Total external assets

60,239

39,357

497,425

5,000

128,071

730,093

64,689

38,168

558,111

6,113

132,811

799,892

Customer accounts

38,255

44,322

130,033

8,297

4,337

225,243

41,395

48,789

124,131

9,915

5,129

229,359

Income Statement Metrics

Cost efficiency ratio

125.1%

58.9%

126.4%

76.4%

(1,036.4)%

117.7%

82.3%

54.6%

99.9%

78.0%

(358.0)%

93.0%

Income Statement metrics ‐ Adjusted as originally reported

Adjusted cost efficiency ratio

125.1%

58.3%

133.1%

76.4%

(900.0)%

119.6%

80.9%

53.8%

95.1%

75.5%

(197.1)%

87.7%

Revenue

Significant items

Customer redress programmes

-

-

-

-

-

-

(1)

-

-

-

-

(1)

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Fair value movements on financial instruments

-

-

21

-

(1)

20

-

-

(36)

-

3

(33)

Operating expenses

Significant items

Costs of structural reform

-

(2)

(11)

-

(23)

(36)

-

(4)

(37)

-

(69)

(110)

Customer redress programmes

-

-

22

-

-

22

(1)

1

-

-

-

-

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Goodwill impairment

-

-

-

-

-

-

-

-

-

-

-

-

Past service costs of guaranteed minimum pension benefits equalisation

-

-

-

-

3

3

-

-

-

-

-

-

Restructuring and other related costs

-

-

-

-

(7)

(7)

(18)

(8)

(150)

(6)

(79)

(261)

Settlements and provisions in connection with legal and regulatory matters

-

-

20

-

3

23

-

-

(2)

-

(7)

(9)

17

HSBC

Europe ‐ other

Quarter ended 31 Dec 2019

Quarter ended 30 Sep 2019

Retail

Global

Retail

Global

Banking

Banking

Global

Banking

Banking

Global

and Wealth

Commercial

and

Private

Corporate

and Wealth

Commercial

and

Private

Corporate

Management

Banking

Markets

Banking

Centre

Total

Management

Banking

Markets

Banking

Centre

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Net interest income/(expense)

(2)

-

8

32

(701)

(663)

(1)

-

5

34

(1,021)

(983)

Net fee income/(expense)

60

-

-

41

(5)

96

67

-

-

39

(12)

94

Net income from financial instruments held for trading or managed on a fair value basis

5

-

(38)

6

11

(16)

(3)

-

(6)

8

644

643

Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives,

measured at fair value through profit or loss

-

-

-

-

-

-

-

-

-

-

-

-

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or

loss

11

-

-

-

271

282

1

-

-

-

276

277

Other income/(expense)

421

286

29

(5)

(14)

717

293

138

(23)

(2)

291

697

Net operating income before change in expected credit losses and other credit impairment charges

495

286

(1)

74

(438)

416

357

138

(24)

79

178

728

Change in expected credit losses and other credit impairment charges

-

-

-

1

-

1

-

-

-

(1)

1

-

Net operating income/(expense)

495

286

(1)

75

(438)

417

357

138

(24)

78

179

728

Total operating expenses

(704)

(2,906)

(181)

(97)

(994)

(4,882)

(499)

(236)

(75)

(25)

(235)

(1,070)

of which: staff expenses

(123)

(66)

(98)

(45)

(393)

(725)

(103)

(51)

(76)

(38)

(339)

(607)

Operating profit/(loss)

(209)

(2,620)

(182)

(22)

(1,432)

(4,465)

(142)

(98)

(99)

53

(56)

(342)

Share of profit/(loss) in associates and joint ventures

-

-

-

-

(2)

(2)

-

-

-

-

1

1

Profit/(loss) before tax

(209)

(2,620)

(182)

(22)

(1,434)

(4,467)

(142)

(98)

(99)

53

(55)

(341)

Significant items ‐ Totals

Revenue

-

-

-

-

(135)

(135)

-

-

-

-

174

174

ECL

-

-

-

-

-

-

-

-

-

-

-

-

Operating expenses

(11)

(2,533)

(3)

(3)

(38)

(2,588)

(2)

(2)

3

63

(43)

19

Share of profit in associates and joint ventures

-

-

-

-

-

-

-

-

-

-

-

-

At 31 Dec 2019

At 30 Sep 2019

Balance sheet data

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Loans and advances to customers (gross)

-

-

-

9,079

-

9,079

-

-

-

8,313

-

8,313

Loans and advances to customers (net)

-

-

-

9,055

-

9,055

-

-

-

8,291

-

8,291

Total external assets

1,466

(2,259)

1,416

11,266

23,704

35,593

1,405

244

1,415

10,708

23,174

36,946

Customer accounts

-

-

-

13,416

86

13,502

-

-

-

10,973

83

11,056

Income Statement Metrics

Cost efficiency ratio

142.2%

1,016.1%

(18,100.0)%

131.1%

(226.9)%

1,173.6%

139.8%

171.0%

(312.5)%

31.6%

132.0%

147.0%

Income Statement metrics ‐ Adjusted as originally reported

Adjusted cost efficiency ratio

140.0%

130.4%

(17,800.0)%

127.0%

(315.5)%

416.3%

139.2%

169.6%

(325.0)%

111.4%

4,800.0%

196.6%

Revenue

Significant items

Customer redress programmes

-

-

-

-

-

-

-

-

-

-

-

-

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Fair value movements on financial instruments

-

-

-

-

(135)

(135)

-

-

-

-

174

174

Operating expenses

Significant items

Costs of structural reform

-

-

(1)

-

(14)

(15)

-

-

3

-

(14)

(11)

Customer redress programmes

-

-

-

-

-

-

-

(1)

-

-

-

(1)

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Goodwill impairment

-

(2,521)

-

-

-

(2,521)

-

-

-

-

-

-

Past service costs of guaranteed minimum pension benefits equalisation

-

-

-

-

-

-

-

-

-

-

-

-

Restructuring and other related costs

(11)

(12)

(2)

(6)

(24)

(55)

(2)

(1)

-

(2)

(29)

(34)

Settlements and provisions in connection with legal and regulatory matters

-

-

-

3

-

3

-

-

-

65

-

65

18

HSBC

Europe ‐ other

Quarter ended 30 Jun 2019

Quarter ended 31 Mar 2019

Retail

Global

Retail

Global

Banking

Banking

Global

Banking

Banking

Global

and Wealth

Commercial

and

Private

Corporate

and Wealth

Commercial

and

Private

Corporate

Management

Banking

Markets

Banking

Centre

Total

Management

Banking

Markets

Banking

Centre

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Net interest income/(expense)

(3)

-

4

33

(310)

(276)

(3)

-

2

32

(464)

(433)

Net fee income/(expense)

67

-

-

38

(4)

101

64

-

-

36

(9)

91

Net income from financial instruments held for trading or managed on a fair value basis

(1)

-

196

7

(345)

(143)

-

-

(203)

5

350

152

Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives,

-

-

-

-

-

-

-

-

-

-

-

-

measured at fair value through profit or loss

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or

7

-

-

-

158

165

23

-

-

-

67

90

loss

Other income/(expense)

174

43

(229)

4

617

609

181

16

175

1

176

549

Net operating income before change in expected credit losses and other credit impairment charges

244

43

(29)

82

116

456

265

16

(26)

74

120

449

Change in expected credit losses and other credit impairment charges

-

-

-

2

-

2

-

-

-

(1)

-

(1)

Net operating income/(expense)

244

43

(29)

84

116

458

265

16

(26)

73

120

448

Total operating expenses

(410)

(136)

(59)

(99)

(526)

(1,230)

(363)

(130)

(102)

(90)

(508)

(1,193)

of which: staff expenses

(96)

(42)

(91)

(51)

(417)

(697)

(106)

(43)

(84)

(47)

(404)

(684)

Operating profit/(loss)

(166)

(93)

(88)

(15)

(410)

(772)

(98)

(114)

(128)

(17)

(388)

(745)

Share of profit/(loss) in associates and joint ventures

-

-

-

-

1

1

-

-

-

-

1

1

Profit/(loss) before tax

(166)

(93)

(88)

(15)

(409)

(771)

(98)

(114)

(128)

(17)

(387)

(744)

Significant items ‐ Totals

Revenue

-

-

-

-

51

51

-

-

-

-

80

80

ECL

-

-

-

-

-

-

-

-

-

-

-

-

Operating expenses

-

1

(6)

(9)

(36)

(50)

-

-

(3)

(2)

(7)

(12)

Share of profit in associates and joint ventures

-

-

-

-

-

-

-

-

-

-

-

-

At 30 Jun 2019

At 31 Mar 2019

Balance sheet data

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Loans and advances to customers (gross)

-

-

-

8,592

-

8,592

-

-

-

8,117

-

8,117

Loans and advances to customers (net)

-

-

-

8,569

-

8,569

-

-

-

8,095

-

8,095

Total external assets

1,442

268

1,496

10,604

20,797

34,607

1,718

262

1,416

10,400

9,389

23,185

Customer accounts

-

-

-

11,703

84

11,787

-

-

-

12,992

82

13,074

Income Statement Metrics

Cost efficiency ratio

168.0%

316.3%

(203.4)%

120.7%

453.4%

269.7%

137.0%

812.5%

(392.3)%

121.6%

423.3%

265.7%

Income Statement metrics ‐ Adjusted as originally reported

Adjusted cost efficiency ratio

168.0%

318.6%

(182.8)%

109.8%

753.8%

291.4%

137.0%

812.5%

(380.8)%

118.9%

1,252.5%

320.1%

Revenue

Significant items

Customer redress programmes

-

-

-

-

-

-

-

-

-

-

-

-

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Fair value movements on financial instruments

-

-

-

-

51

51

-

-

-

-

80

80

Operating expenses

Significant items

Costs of structural reform

-

-

(4)

-

(5)

(9)

-

-

-

-

-

-

Customer redress programmes

-

1

-

-

-

1

-

-

-

-

-

-

Disposals, acquisitions and investment in new businesses

-

-

-

-

-

-

-

-

-

-

-

-

Goodwill impairment

-

-

-

-

-

-

-

-

-

-

-

-

Past service costs of guaranteed minimum pension benefits equalisation

-

-

-

-

-

-

-

-

-

(2)

(2)

(4)

Restructuring and other related costs

-

-

(2)

(9)

(31)

(42)

-

-

-

-

-

-

Settlements and provisions in connection with legal and regulatory matters

-

-

-

-

-

-

-

-

(3)

(2)

(7)

(12)

19

HSBC

Europe ‐ other

Quarter ended 31 Dec 2018

Year to date 31 Dec 2019

Retail

Global

Retail

Global

Banking

Banking

Global

Banking

Banking

Global

and Wealth

Commercial

and

Private

Corporate

and Wealth

Commercial

and

Private

Corporate

Management

Banking

Markets

Banking

Centre

Total

Management

Banking

Markets

Banking

Centre

Total

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Net interest income/(expense)

(3)

-

3

32

(401)

(369)

(9)

-

19

131

(2,496)

(2,355)

Net fee income/(expense)

68

-

-

38

(9)

97

258

-

-

154

(30)

382

Net income from financial instruments held for trading or managed on a fair value basis

2

-

(260)

6

652

400

1

-

(51)

26

660

636

Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives,

(28)

-

-

-

-

(28)

-

-

-

-

-

-

measured at fair value through profit or loss

Changes in fair value of other financial instruments mandatorily measured at fair value through profit or

(1)

-

-

-

(243)

(244)

42

-

-

-

772

814

loss

Other income/(expense)

153

13

215

4

98

483

1,069

483

(48)

(2)

1,070

2,572

Net operating income before change in expected credit losses and other credit impairment charges

191

13

(42)

80

97

339

1,361

483

(80)

309

(24)

2,049

Change in expected credit losses and other credit impairment charges

-

-

-

1

(1)

-

-

-

-

1

1

2

Net operating income/(expense)

191

13

(42)

81

96

339

1,361

483

(80)

310

(23)

2,051

Total operating expenses

(382)

(123)

(85)

(110)

(1,310)

(2,010)

(1,976)

(3,408)

(417)

(311)

(2,263)

(8,375)

of which: staff expenses

(91)

(39)

(76)

(47)

(272)

(525)

(428)

(202)

(349)

(181)

(1,553)

(2,713)

Operating profit/(loss)

(191)

(110)

(127)

(29)

(1,214)

(1,671)

(615)

(2,925)

(497)

(1)

(2,286)

(6,324)

Share of profit/(loss) in associates and joint ventures

-

-

-

-

-

-

-

-

-

-

1

1

Profit/(loss) before tax

(191)

(110)

(127)

(29)

(1,214)

(1,671)

(615)

(2,925)

(497)

(1)

(2,285)

(6,323)

Significant items ‐ Totals

Revenue

-

-

-

5

69

74

-

-

-

-

170

170

ECL

-

-

-

-

-

-

-

-

-

-

-

-

Operating expenses

-

-

(3)

-

(15)

(18)

(13)

(2,534)

(9)

49

(124)

(2,631)

Share of profit in associates and joint ventures

-

-

-

-

-

-

-

-

-

-

-

-

At 31 Dec 2018

At 31 Dec 2019

Balance sheet data

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Loans and advances to customers (gross)

-

-

-

8,153

-

8,153

-

-

-

9,079

-

9,079

Loans and advances to customers (net)

-

-

-

8,131

-

8,131

-

-

-

9,055

-

9,055

Total external assets

1,810

271

1,508

10,333

13,433