1 | Basis of preparation and significant accounting policies |
Impact of transition to IFRS 17, at 1 January 2022 | Insurance manufacturing operations | Group | ||
Assets | Liabilities | Equity | Equity | |
$bn | $bn | $bn | $bn | |
Balance sheet values at 1 January 2022 under IFRS 4 | 144.6 | 127.6 | 17.0 | 206.8 |
Removal of PVIF | (9.5) | \u2014 | (9.5) | (9.5) |
Replacement of IFRS 4 liabilities with IFRS 17 | (0.4) | 7.3 | (7.7) | (8.1) |
Removal of IFRS 4 liabilities and recording of IFRS 17 fulfilment cash | (0.3) | (2.2) | 1.9 | 1.9 |
IFRS 17 contractual service margin | (0.1) | 9.5 | (9.6) | (10.0) |
Remeasurement effect of IFRS 9 re-designations | 4.9 | \u2014 | 4.9 | 4.9 |
Tax effect | 0.6 | (1.6) | 2.2 | 2.2 |
Estimated balance sheet values at 1 January 2022 under IFRS 17 | 140.2 | 133.3 | 6.9 | 196.3 |
Investments in subsidiaries are tested for impairment when there is an indication that the investment may be impaired, which involves estimations of value in use reflecting management\u2019s best estimate of the future cash flows of the investment and the rates used to discount these cash flows, both of which are subject to uncertain factors as follows: | |
Judgements | Estimates |
\u2022The accuracy of forecast cash flows is subject to a high degree of uncertainty in volatile market conditions. Where such circumstances are determined to exist, management re-tests for impairment more frequently than once a year when indicators of impairment exist. This ensures that the assumptions on which the cash flow forecasts are based continue to reflect current market conditions and management's best estimate of future business prospects. | \u2022The future cash flows of each investment are sensitive to the cash flows projected for the periods for which detailed forecasts are available and to assumptions regarding the long-term pattern of sustainable cash flows thereafter. Forecasts are compared with actual performance and verifiable economic data, but they reflect management\u2019s view of future business prospects at the time of the assessment. \u2022The rates used to discount future expected cash flows can have a significant effect on their valuation, and are based on the costs of equity assigned to the investment. The cost of equity percentage is generally derived from a capital asset pricing model and the market implied cost of equity, which incorporates inputs reflecting a number of financial and economic variables, including the risk-free interest rate in the country concerned and a premium for the risk of the business being evaluated. These variables are subject to fluctuations in external market rates and economic conditions beyond management\u2019s control. \u2022Key assumptions used in estimating impairment in subsidiaries are described in Note 19. |
The review of goodwill and non-financial assets (see Note 1.2(n)) for impairment reflects management\u2019s best estimate of the future cash flows of the CGUs and the rates used to discount these cash flows, both of which are subject to uncertain factors as follows: | |
Judgements | Estimates |
\u2022The accuracy of forecast cash flows is subject to a high degree of uncertainty in volatile market conditions. Where such circumstances are determined to exist, management re-tests goodwill for impairment more frequently than once a year when indicators of impairment exist. This ensures that the assumptions on which the cash flow forecasts are based continue to reflect current market conditions and management\u2019s best estimate of future business prospects. | \u2022The future cash flows of the CGUs are sensitive to the cash flows projected for the periods for which detailed forecasts are available and to assumptions regarding the long-term pattern of sustainable cash flows thereafter. Forecasts are compared with actual performance and verifiable economic data, but they reflect management\u2019s view of future business prospects at the time of the assessment. \u2022The rates used to discount future expected cash flows can have a significant effect on their valuation, and are based on the costs of equity assigned to individual CGUs. The cost of equity percentage is generally derived from a capital asset pricing model and market implied cost of equity, which incorporates inputs reflecting a number of financial and economic variables, including the risk-free interest rate in the country concerned and a premium for the risk of the business being evaluated. These variables are subject to fluctuations in external market rates and economic conditions beyond management\u2019s control. \u2022Key assumptions used in estimating goodwill and non-financial asset impairment are described in Note 21. |
The most significant critical accounting estimates relate to the assessment of impairment of our investment in Bank of Communications Co. Limited (\u2018BoCom\u2019), which involves estimations of value in use: | |
Judgements | Estimates |
\u2022Management\u2019s best estimate of BoCom\u2019s earnings is based on management\u2019s explicit forecasts over the short to medium term and the capital maintenance charge, which is management\u2019s forecast of the earnings that need to be withheld in order for BoCom to meet capital requirements over the forecast period, both of which are subject to uncertain factors. \u2022Key assumptions used in estimating BoCom\u2019s value in use, the sensitivity of the value in use calculations to different assumptions and a sensitivity analysis that shows the changes in key assumptions that would reduce the excess of value in use over the carrying amount (the \u2018headroom\u2019) to nil are described in Note 18. |
The majority of valuation techniques employ only observable market data. However, certain financial instruments are classified on the basis of valuation techniques that feature one or more significant market inputs that are unobservable, and for them, the measurement of fair value is more judgemental: | |
Judgements | Estimates |
\u2022An instrument in its entirety is classified as valued using significant unobservable inputs if, in the opinion of management, greater than 5% of the instrument\u2019s valuation is driven by unobservable inputs. \u2022\u2018Unobservable\u2019 in this context means that there is little or no current market data available from which to determine the price at which an arm\u2019s length transaction would be likely to occur. It generally does not mean that there is no data available at all upon which to base a determination of fair value (consensus pricing data may, for example, be used). | \u2022Details on the Group\u2019s level 3 financial instruments and the sensitivity of their valuation to the effect of applying reasonably possible alternative assumptions in determining their fair value are set out in Note 12. |
Origination CRR | Significance trigger \u2013 PD to increase by |
0.1\u20131.2 | 15bps |
2.1\u20133.3 | 30bps |
Origination CRR | Additional significance criteria \u2013 number of CRR grade notches deterioration required to identify as significant credit deterioration\u00a0(stage 2) (> or equal to) |
0.1 | 5 notches |
1.1\u20134.2 | 4 notches |
4.3\u20135.1 | 3 notches |
5.2\u20137.1 | 2 notches |
7.2\u20138.2 | 1 notch |
8.3 | 0 notch |
Model | Regulatory capital | IFRS 9 |
PD | \u2022Through the cycle (represents long-run average PD throughout a full economic cycle) \u2022The definition of default includes a backstop of\u00a090+ days past due, although this has been modified to 180+ days past due for some portfolios, particularly UK and US mortgages | \u2022Point in time (based on current conditions, adjusted to\u00a0take into account estimates of future conditions that will impact PD) \u2022Default backstop of 90+ days past due for all portfolios |
EAD | \u2022Cannot be lower than current balance | \u2022Amortisation captured for term products |
LGD | \u2022Downturn LGD (consistent losses expected to be suffered during a severe but plausible economic downturn) \u2022Regulatory floors may apply to mitigate risk of underestimating downturn LGD due to lack of historical data \u2022Discounted using cost of capital \u2022All collection costs included | \u2022Expected LGD (based on estimate of loss given default including the expected impact of future economic conditions such as changes in value of collateral) \u2022No floors \u2022Discounted using the original effective interest rate of the loan \u2022Only costs associated with obtaining/selling collateral included |
Other | \u2022Discounted back from point of default to balance sheet date |
The most significant critical accounting estimates relate to the determination of key assumptions applied in calculating the defined benefit pension obligation for the principal plan. | |
Judgements | Estimates |
\u2022A range of assumptions could be applied, and different assumptions could significantly alter the defined benefit obligation and the amounts recognised in profit or loss or OCI. \u2022The calculation of the defined benefit pension obligation includes assumptions with regard to the discount rate, inflation rate, pension payments and deferred pensions, pay and mortality. Management determines these assumptions in consultation with the plan\u2019s actuaries. \u2022Key assumptions used in calculating the defined benefit pension obligation for the principal plan and the sensitivity of the calculation to different assumptions are described in Note 5. |
The recognition of deferred tax assets depends on judgements and estimates. | |
Judgements | Estimates |
\u2022Specific judgements supporting deferred tax assets are described in Note\u00a07. | \u2022The recognition of deferred tax assets is sensitive to estimates of future cash flows projected for periods for which detailed forecasts are available and to assumptions regarding the long-term pattern of cash flows thereafter, on which forecasts of future taxable profit are based, and which affect the expected recovery periods and the pattern of utilisation of tax losses and tax credits. See Note 7 for further detail. |
The recognition and measurement of provisions requires the Group to make a number of judgements, assumptions and estimates. The most significant are set out below: | |
Judgements | Estimates |
\u2022Determining whether a present obligation exists. Professional advice is taken on the assessment of litigation and similar obligations. \u2022Provisions for legal proceedings and regulatory matters typically require a higher degree of judgement than other types of provisions. When matters are at an early stage, accounting judgements can be difficult because of the high degree of uncertainty associated with determining whether a present obligation exists, and estimating the probability and amount of any outflows that may arise. As matters progress, management and legal advisers evaluate on an ongoing basis whether provisions should be recognised, revising previous estimates as appropriate. At more advanced stages, it is typically easier to make estimates around a better defined set of possible outcomes. | \u2022Provisions for legal proceedings and regulatory matters remain very sensitive to the assumptions used in the estimate. There could be a wider range of possible outcomes for any pending legal proceedings, investigations or inquiries. As a result it is often not practicable to quantify a range of possible outcomes for individual matters. It is also not practicable to meaningfully quantify ranges of potential outcomes in aggregate for these types of provisions because of the diverse nature and circumstances of such matters and the wide range of uncertainties involved. |
The review of goodwill and other non-financial assets for impairment reflects management\u2019s best estimate of the future cash flows of the CGUs and the rates used to discount these cash flows, both of which are subject to uncertain factors as described in the Critical accounting estimates and judgements in Note 1.2(a). |
2 | Net fee income |
Net fee income by global business | |||||
2022 | |||||
Wealth and Personal Banking | Commercial Banking | Global Banking and Markets | Corporate Centre | Total | |
$m | $m | $m | $m | $m | |
Funds under management | 1,769 | 105 | 503 | \u2014 | 2,377 |
Cards | 2,146 | 313 | 32 | \u2014 | 2,491 |
Credit facilities | 100 | 776 | 598 | \u2014 | 1,474 |
Broking income | 575 | 40 | 634 | \u2014 | 1,249 |
Account services | 337 | 718 | 356 | 1 | 1,412 |
Unit trusts | 682 | 14 | \u2014 | \u2014 | 696 |
Underwriting | 1 | 2 | 443 | (5) | 441 |
Global custody | 140 | 14 | 767 | \u2014 | 921 |
Remittances | 72 | 378 | 348 | 1 | 799 |
Imports/exports | \u2014 | 475 | 159 | \u2014 | 634 |
Insurance agency commission | 283 | 16 | 1 | \u2014 | 300 |
Other | 1,423 | 1,082 | 2,382 | (2,468) | 2,419 |
Fee income | 7,528 | 3,933 | 6,223 | (2,471) | 15,213 |
Less: fee expense | (2,497) | (240) | (3,464) | 2,439 | (3,762) |
Net fee income | 5,031 | 3,693 | 2,759 | (32) | 11,451 |
2021 | |||||
Wealth and Personal Banking | Commercial Banking | Global Banking and Markets | Corporate Centre | Total | |
$m | $m | $m | $m | $m | |
Funds under management | 1,984 | 126 | 546 | \u2014 | 2,656 |
Cards | 1,949 | 240 | 23 | 1 | 2,213 |
Credit facilities | 103 | 833 | 690 | 1 | 1,627 |
Broking income | 863 | 69 | 669 | \u2014 | 1,601 |
Account services | 429 | 677 | 340 | 6 | 1,452 |
Unit trusts | 1,065 | 23 | \u2014 | \u2014 | 1,088 |
Underwriting | 4 | 6 | 1,009 | (2) | 1,017 |
Global custody | 167 | 24 | 787 | \u2014 | 978 |
Remittances | 75 | 357 | 343 | \u2014 | 775 |
Imports/exports | 1 | 474 | 145 | \u2014 | 620 |
Insurance agency commission | 324 | 17 | \u2014 | \u2014 | 341 |
Other | 1,305 | 1,077 | 2,503 | (2,465) | 2,420 |
Fee income | 8,269 | 3,923 | 7,055 | (2,459) | 16,788 |
Less: fee expense | (2,375) | (284) | (3,452) | 2,420 | (3,691) |
Net fee income | 5,894 | 3,639 | 3,603 | (39) | 13,097 |
2020 | |||||
Wealth and Personal Banking | Commercial Banking | Global Banking and Markets | Corporate Centre | Total | |
$m | $m | $m | $m | $m | |
Funds under management | 1,686 | 126 | 477 | \u2014 | 2,289 |
Cards | 1,564 | 360 | 25 | \u2014 | 1,949 |
Credit facilities | 93 | 740 | 626 | \u2014 | 1,459 |
Broking income | 862 | 61 | 616 | \u2014 | 1,539 |
Account services | 431 | 598 | 264 | \u2014 | 1,293 |
Unit trusts | 881 | 18 | \u2014 | \u2014 | 899 |
Underwriting | 5 | 9 | 1,002 | (1) | 1,015 |
Global custody | 189 | 22 | 723 | \u2014 | 934 |
Remittances | 77 | 313 | 288 | (1) | 677 |
Imports/exports | \u2014 | 417 | 160 | \u2014 | 577 |
Insurance agency commission | 307 | 17 | 1 | \u2014 | 325 |
Other | 1,123 | 893 | 2,369 | (2,290) | 2,095 |
Fee income | 7,218 | 3,574 | 6,551 | (2,292) | 15,051 |
Less: fee expense | (1,810) | (349) | (3,284) | 2,266 | (3,177) |
Net fee income | 5,408 | 3,225 | 3,267 | (26) | 11,874 |
3 | Net income from financial instruments measured at fair value through profit or loss |
2022 | 2021 | 2020 | |
$m | $m | $m | |
Net income/(expense) arising on: | |||
Net trading activities | 2,576 | 6,668 | 11,074 |
Other instruments managed on a fair value basis | 7,893 | 1,076 | (1,492) |
Net income from financial instruments held for trading or managed on a fair value basis | 10,469 | 7,744 | 9,582 |
Financial assets held to meet liabilities under insurance and investment contracts | (3,720) | 4,134 | 2,481 |
Liabilities to customers under investment contracts | 326 | (81) | (400) |
Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss | (3,394) | 4,053 | 2,081 |
Derivatives managed in conjunction with HSBC\u2019s issued debt securities | (7,086) | (2,811) | 2,619 |
Other changes in fair value | 7,009 | 2,629 | (2,388) |
Changes in fair value of designated debt and related derivatives1 | (77) | (182) | 231 |
Changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | 226 | 798 | 455 |
Year ended 31 Dec | 7,224 | 12,413 | 12,349 |
2022 | 2021 | 2020 | |
$m | $m | $m | |
Net income/(expense) arising on: | |||
\u2013\u00a0 trading activities | 2,094 | 87 | (336) |
\u2013\u00a0 other instruments managed on a fair value basis | 35 | 23 | 1,137 |
Net income from financial instruments held for trading or managed on a fair value basis | 2,129 | 110 | 801 |
Derivatives managed in conjunction with HSBC Holdings-issued debt securities | (1,529) | (625) | 694 |
Other changes in fair value | 3,673 | 974 | (1,020) |
Changes in fair value of designated debt and related derivatives | 2,144 | 349 | (326) |
Changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | (2,409) | (420) | 1,141 |
Year ended 31 Dec | 1,864 | 39 | 1,616 |
4 | Insurance business |
Net insurance premium income1 | ||||
Non-linked insurance | Linked life insurance | Investment contracts with DPF2 | Total | |
$m | $m | $m | $m | |
Gross insurance premium income | 11,685 | 824 | 1,547 | 14,056 |
Reinsurers\u2019 share of gross insurance premium income | (1,226) | (5) | \u2014 | (1,231) |
Year ended 31 Dec 2022 | 10,459 | 819 | 1,547 | 12,825 |
Gross insurance premium income | 8,529 | 1,027 | 1,873 | 11,429 |
Reinsurers\u2019 share of gross insurance premium income | (555) | (4) | \u2014 | (559) |
Year ended 31 Dec 2021 | 7,974 | 1,023 | 1,873 | 10,870 |
Gross insurance premium income | 8,321 | 579 | 1,563 | 10,463 |
Reinsurers\u2019 share of gross insurance premium income | (362) | (8) | \u2014 | (370) |
Year ended 31 Dec 2020 | 7,959 | 571 | 1,563 | 10,093 |
Liabilities under insurance contracts1 | ||||
Non-linked insurance | Linked life insurance | Investment contracts with DPF2 | Total | |
$m | $m | $m | $m | |
Gross liabilities under insurance contracts at 1 Jan 2022 | 79,475 | 6,513 | 26,757 | 112,745 |
Claims and benefits paid | (4,032) | (680) | (1,845) | (6,557) |
Increase in liabilities to policyholders | 11,008 | (124) | 183 | 11,067 |
Exchange differences and other movements2 | 2,004 | (313) | (4,102) | (2,411) |
Gross liabilities under insurance contracts at 31 Dec 2022 | 88,455 | 5,396 | 20,993 | 114,844 |
Reinsurers\u2019 share of liabilities under insurance contracts | (4,247) | (10) | \u2014 | (4,257) |
Net liabilities under insurance contracts at 31 Dec 2022 | 84,208 | 5,386 | 20,993 | 110,587 |
Gross liabilities under insurance contracts at 1 Jan 2021 | 72,464 | 6,449 | 28,278 | 107,191 |
Claims and benefits paid | (2,929) | (1,023) | (2,142) | (6,094) |
Increase in liabilities to policyholders | 10,474 | 1,134 | 3,332 | 14,940 |
Exchange differences and other movements3 | (534) | (47) | (2,711) | (3,292) |
Gross liabilities under insurance contracts at 31 Dec 2021 | 79,475 | 6,513 | 26,757 | 112,745 |
Reinsurers\u2019 share of liabilities under insurance contracts | (3,638) | (30) | \u2014 | (3,668) |
Net liabilities under insurance contracts at 31 Dec 2021 | 75,837 | 6,483 | 26,757 | 109,077 |
5 | Employee compensation and benefits |
2022 | 2021 | 2020 | |
$m | $m | $m | |
Employee compensation and benefits1 | 18,366 | 18,742 | 18,076 |
Capitalised wages and salaries | 922 | 870 | 1,320 |
Gross employee compensation and benefits for the year ended 31 Dec | 19,288 | 19,612 | 19,396 |
Consists of: | |||
Wages and salaries | 16,954 | 17,072 | 17,072 |
Social security costs | 1,413 | 1,503 | 1,378 |
Post-employment benefits | 921 | 1,037 | 946 |
Year ended 31 Dec | 19,288 | 19,612 | 19,396 |
Average number of persons employed by HSBC during the year by global business1 | |||
2022 | 2021 | 2020 | |
Wealth and Personal Banking | 135,676 | 138,026 | 144,615 |
Commercial Banking | 48,004 | 44,992 | 45,631 |
Global Banking and Markets | 48,597 | 48,179 | 49,055 |
Corporate Centre | 365 | 359 | 411 |
Year ended 31 Dec | 232,642 | 231,556 | 239,712 |
Reconciliation of total incentive awards granted to income statement charge | |||
2022 | 2021 | 2020 | |
$m | $m | $m | |
Total incentive awards approved for the current year | 3,359 | 3,495 | 2,659 |
Less: deferred bonuses awarded, expected to be recognised in future periods | (343) | (379) | (239) |
Total incentives awarded and recognised in the current year | 3,016 | 3,116 | 2,420 |
Add: current year charges for deferred bonuses from previous years | 239 | 270 | 286 |
Other | (22) | 4 | 2 |
Income statement charge for incentive awards | 3,233 | 3,390 | 2,708 |
2022 | 2021 | 2020 | |
$m | $m | $m | |
Conditional share awards | 402 | 479 | 411 |
Savings-related and other share award option plans | 22 | 27 | 51 |
Year ended 31 Dec | 424 | 506 | 462 |
HSBC share awards | |
Award | Policy |
Deferred share awards (including annual incentive awards, long- term incentive (\u2018LTI\u2019)\u00a0 awards delivered in shares) and Group Performance Share Plans (\u2018GPSP\u2019) | An assessment of performance over the relevant period ending on 31 December is used to determine the amount of\u00a0the award to be granted. \u2022\u00a0 Deferred awards generally require employees to remain in employment over the vesting period and are generally not subject to performance conditions after the grant date. An exception to these are LTI awards, which are subject to performance conditions. \u2022\u00a0 Deferred share awards generally vest over a period of three, four, five or seven years. \u2022\u00a0 Vested shares may be subject to a retention requirement post-vesting. \u2022\u00a0 Awards are subject to malus and clawback provisions. |
International Employee Share Purchase Plan (\u2018ShareMatch\u2019) | The plan was first introduced in Hong Kong in 2013 and now includes employees based in 31 jurisdictions. \u2022\u00a0 Shares are purchased in the market each quarter up to a maximum value of \u00a3750, or the equivalent in local currency. \u2022\u00a0 Matching awards are added at a ratio of one free share for every three purchased. In mainland China, matching awards are settled in cash. \u2022\u00a0 Matching awards vest subject to continued employment and the retention of the purchased shares for a maximum period of two years and nine months. |
Movement on HSBC share awards | ||
2022 | 2021 | |
Number | Number | |
(000s) | (000s) | |
Conditional share awards outstanding at 1 Jan | 109,364 | 103,473 |
Additions during the year | 90,190 | 75,549 |
Released in the year | (67,718) | (63,635) |
Forfeited in the year | (5,590) | (6,023) |
Conditional share awards outstanding at 31 Dec | 126,246 | 109,364 |
Weighted average fair value of awards granted ($) | 5.60 | 6.49 |
HSBC share option plans | |
Main plans | Policy |
Savings-related share option plans (\u2018Sharesave\u2019) | \u2022\u00a0 From 2014, employees eligible for the UK plan could save up to \u00a3500 per month with the option to use the savings to acquire shares. \u2022These are generally exercisable within six months following either the third or fifth anniversary of the commencement of a three-year or five-year contract, respectively. \u2022The exercise price is set at a 20% (2021: 20%) discount to the market value immediately preceding the date of invitation. |
Movement on HSBC share option plans | ||
Savings-related share option plans | ||
Number | WAEP1 | |
(000s) | \u00a3 | |
Outstanding at 1 Jan 2022 | 123,197 | 2.85 |
Granted during the year2 | 8,928 | 4.24 |
Exercised during the year3 | (3,483) | 3.49 |
Expired during the year | (9,047) | 3.55 |
Forfeited during the year | (3,944) | 2.79 |
Outstanding at 31 Dec 2022 | 115,651 | 2.89 |
\u2013\u00a0 of which exercisable | 4,029 | 4.11 |
Weighted average remaining contractual life (years) | 2.26 | |
Outstanding at 1 Jan 2021 | 130,953 | 2.97 |
Granted during the year2 | 15,410 | 3.15 |
Exercised during the year3 | (3,878) | 3.80 |
Expired during the year | (11,502) | 3.53 |
Forfeited during the year | (7,786) | 3.97 |
Outstanding at 31 Dec 2021 | 123,197 | 2.85 |
\u2013\u00a0 of which exercisable | 4,949 | 4.05 |
Weighted average remaining contractual life (years) | 3.02 |
Net assets/(liabilities) recognised on the balance sheet in respect of defined benefit plans | ||||
Fair value of plan assets | Present value of defined benefit obligations | Effect of limit on plan surpluses | Total | |
$m | $m | $m | $m | |
Defined benefit pension plans | 32,171 | (25,693) | \u2014 | 6,478 |
Defined benefit healthcare plans | 96 | (388) | \u2014 | (292) |
At 31 Dec 2022 | 32,267 | (26,081) | \u2014 | 6,186 |
Total employee benefit liabilities (within Note 27 \u2018Accruals, deferred income and other liabilities\u2019) | (1,096) | |||
Total employee benefit assets (within Note 22 \u2018Prepayments, accrued income and other assets\u2019) | 7,282 | |||
Defined benefit pension plans | 51,431 | (42,277) | (23) | 9,131 |
Defined benefit healthcare plans | 103 | (572) | \u2014 | (469) |
At 31 Dec 2021 | 51,534 | (42,849) | (23) | 8,662 |
Total employee benefit liabilities (within Note 27 \u2018Accruals, deferred income and other liabilities\u2019) | (1,607) | |||
Total employee benefit assets (within Note 22 \u2018Prepayments, accrued income and other assets\u2019) | 10,269 |
Fair value of plan assets by asset classes | ||||||||||
31 Dec 2022 | 31 Dec 2021 | |||||||||
Value | Quoted market price in active market | No quoted market price in active market | Thereof HSBC1 | Value | Quoted market price in active market | No quoted market price in active market | Thereof HSBC1 | |||
$m | $m | $m | $m | $m | $m | $m | $m | |||
The principal plan2 | ||||||||||
Fair value of plan assets | 25,121 | 13,915 | 11,206 | 510 | 41,384 | 36,270 | 5,114 | 1,037 | ||
\u2013\u00a0 equities3 | 112 | \u2014 | 112 | \u2014 | 197 | 5 | 192 | \u2014 | ||
\u2013\u00a0 bonds4 | 14,764 | 14,301 | 463 | \u2014 | 36,295 | 35,612 | 683 | \u2014 | ||
\u2013\u00a0 derivatives | 1,203 | \u2014 | 1,203 | 510 | 1,864 | \u2014 | 1,864 | 1,037 | ||
\u2013\u00a0 property | 842 | \u2014 | 842 | \u2014 | 1,094 | \u2014 | 1,094 | \u2014 | ||
\u2013\u00a0 other5 | 8,200 | (386) | 8,586 | \u2014 | 1,934 | 653 | 1,281 | \u2014 | ||
Other plans | ||||||||||
Fair value of plan assets | 7,050 | 5,848 | 1,202 | 37 | 10,047 | 8,248 | 1,799 | 52 | ||
\u2013\u00a0 equities | 639 | 486 | 153 | 2 | 892 | 668 | 224 | 5 | ||
\u2013\u00a0 bonds | 4,986 | 4,537 | 449 | 4 | 7,080 | 6,490 | 590 | 5 | ||
\u2013\u00a0 derivatives | 4 | (1) | 5 | \u2014 | 7 | (13) | 20 | \u2014 | ||
\u2013\u00a0 property | 109 | 104 | 5 | \u2014 | 123 | 119 | 4 | \u2014 | ||
\u2013\u00a0 other | 1,312 | 722 | 590 | 31 | 1,945 | 984 | 961 | 42 |
Key actuarial assumptions for the principal plan1 | |||||
Discount rate | Inflation rate (RPI) | Inflation rate (CPI) | Rate of increase for pensions | Rate of pay increase | |
% | % | % | % | % | |
UK | |||||
At 31 Dec 2022 | 4.93 | 3.39 | 2.84 | 3.27 | 3.34 |
At 31 Dec 2021 | 1.90 | 3.45 | 3.20 | 3.30 | 3.45 |
Mortality tables and average life expectancy at age 60 for the principal plan1 | |||||
Mortality table | Life expectancy at age 60 for a male member currently: | Life expectancy at age 60 for a female member currently: | |||
Aged 60 | Aged 40 | Aged 60 | Aged 40 | ||
UK | |||||
At 31 Dec 2022 | SAPS S32 | 27.1 | 28.6 | 28.4 | 29.9 |
At 31 Dec 2021 | SAPS S3 | 27.3 | 28.8 | 28.5 | 30.1 |
The effect of changes in key assumptions on the principal plan1 | ||||
Impact on HBUK section of the HSBC Bank (UK) Pension Scheme obligation2 | ||||
Financial impact of increase | Financial impact of decrease | |||
2022 | 2021 | 2022 | 2021 | |
$m | $m | $m | $m | |
Discount rate \u2013 increase/decrease of 0.25% | (582) | (1,337) | 612 | 1,425 |
Inflation rate (RPI and CPI) \u2013 increase/decrease of 0.25% | 466 | 1,211 | (446) | (980) |
Pension payments and deferred pensions \u2013 increase/decrease of 0.25% | 551 | 1,267 | (519) | (1,177) |
Pay \u2013 increase/decrease of 0.25% | 10 | 20 | (10) | (20) |
Change in mortality \u2013 increase of 1 year | 470 | 1,387 | N/A | N/A |
6 | Auditor\u2019s remuneration |
2022 | 2021 | 2020 | |
$m | $m | $m | |
Audit fees payable to PwC1 | 97.6 | 88.1 | 92.9 |
Other audit fees payable | 1.6 | 2.0 | 1.0 |
Year ended 31 Dec | 99.2 | 90.1 | 93.9 |
Fees payable by HSBC to PwC | |||
2022 | 2021 | 2020 | |
$m | $m | $m | |
Fees for HSBC Holdings\u2019 statutory audit2 | 21.9 | 19.5 | 21.9 |
Fees for other services provided to HSBC | 126.2 | 109.9 | 108.3 |
\u2013\u00a0 audit of HSBC\u2019s subsidiaries | 75.7 | 68.6 | 71.0 |
\u2013\u00a0 audit-related assurance services3 | 26.4 | 18.7 | 17.2 |
\u2013\u00a0 other assurance services4,5 | 24.1 | 22.6 | 20.1 |
Year ended 31 Dec | 148.1 | 129.4 | 130.2 |
Fees payable by HSBC\u2019s associated pension schemes to PwC | ||||
2022 | 2021 | 2020 | ||
$000 | $000 | $000 | ||
Audit of HSBC\u2019s associated pension schemes | 480 | 382 | 316 | |
Year ended 31 Dec | 480 | 382 | 316 |
7 | Tax |
Tax expense | |||
2022 | 2021 | 2020 | |
$m | $m | $m | |
Current tax1 | 2,991 | 3,250 | 2,700 |
\u2013\u00a0 for this year | 3,271 | 3,182 | 2,883 |
\u2013\u00a0 adjustments in respect of prior years | (280) | 68 | (183) |
Deferred tax | (2,133) | 963 | (22) |
\u2013\u00a0 origination and reversal of temporary differences | (2,236) | 874 | (341) |
\u2013\u00a0 effect of changes in tax rates | (293) | 132 | 58 |
\u2013\u00a0 adjustments in respect of prior years | 396 | (43) | 261 |
Year ended 31 Dec2 | 858 | 4,213 | 2,678 |
2022 | 2021 | 2020 | ||||
$m | % | $m | % | $m | % | |
Profit before tax | 17,528 | 18,906 | 8,777 | |||
Tax expense | ||||||
Taxation at UK corporation tax rate of 19.00% | 3,329 | 19.0 | 3,592 | 19.0 | 1,668 | 19.0 |
Impact of differently taxed overseas profits in overseas locations | 374 | 2.1 | 280 | 1.5 | 178 | 2.0 |
UK banking surcharge | 283 | 1.6 | 332 | 1.8 | (113) | (1.3) |
Items increasing tax charge in 2022: | ||||||
\u2013\u00a0 local taxes and overseas withholding taxes | 550 | 3.1 | 360 | 1.9 | 228 | 2.6 |
\u2013\u00a0 other permanent disallowables | 202 | 1.2 | 236 | 1.2 | 333 | 3.8 |
\u2013\u00a0 impacts of hyperinflation | 171 | 1.0 | 68 | 0.4 | 65 | 0.7 |
\u2013\u00a0 adjustments in respect of prior period liabilities | 116 | 0.7 | 25 | 0.1 | 78 | 0.9 |
\u2013\u00a0 tax impact of planned sale of French retail banking business | 115 | 0.7 | (434) | (2.3) | \u2014 | \u2014 |
\u2013\u00a0 bank levy | 59 | 0.3 | 93 | 0.5 | 202 | 2.3 |
\u2013\u00a0 movements in provisions for uncertain tax positions | 27 | 0.2 | 15 | 0.1 | 4 | \u2014 |
\u2013\u00a0 non-deductible goodwill write-down | 3 | \u2014 | 178 | 0.9 | \u2014 | \u2014 |
\u2013\u00a0 impact of differences between French tax basis and IFRSs | \u2014 | \u2014 | 434 | 2.3 | \u2014 | \u2014 |
Items reducing tax charge in 2022: | ||||||
\u2013\u00a0 movements in unrecognised UK deferred tax | (2,191) | (12.5) | 294 | 1.6 | 444 | 5.1 |
\u2013\u00a0 non-taxable income and gains | (825) | (4.7) | (641) | (3.4) | (515) | (5.8) |
\u2013\u00a0 effect of profits in associates and joint ventures | (504) | (2.9) | (414) | (2.2) | (250) | (2.8) |
\u2013\u00a0 non-UK movements in unrecognised deferred tax | (312) | (1.8) | (67) | (0.4) | 608 | 6.9 |
\u2013\u00a0 impact of changes in tax rates | (293) | (1.7) | 132 | 0.7 | 58 | 0.6 |
\u2013\u00a0 deductions for AT1 coupon payments | (246) | (1.4) | (270) | (1.4) | (310) | (3.5) |
Year ended 31 December 2022 | 858 | 4.9 | 4,213 | 22.3 | 2,678 | 30.5 |
Movement of deferred tax assets and liabilities | ||||||||
Loan impairment provisions | Unused tax losses and tax credits | Financial assets at FVOCI | Insurance business | Cash flow hedges | Retirement obligations | Other | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Assets | 1,162 | 2,001 | 84 | \u2014 | 176 | 109 | 1,690 | 5,222 |
Liabilities | \u2014 | \u2014 | (254) | (1,640) | (22) | (2,928) | (427) | (5,271) |
At 1 Jan 2022 | 1,162 | 2,001 | (170) | (1,640) | 154 | (2,819) | 1,263 | (49) |
Income statement | 6 | 2,425 | \u2014 | 170 | \u2014 | 217 | (685) | 2,133 |
Other comprehensive income | \u2014 | \u2014 | 1,679 | \u2014 | 1,159 | 692 | (642) | 2,888 |
Foreign exchange and other adjustments | 7 | (36) | (79) | 35 | (42) | 237 | (18) | 104 |
At 31 Dec 2022 | 1,175 | 4,390 | 1,430 | (1,435) | 1,271 | (1,673) | (82) | 5,076 |
Assets1 | 1,175 | 4,390 | 1,430 | \u2014 | 1,271 | \u2014 | 1,571 | 9,837 |
Liabilities1 | \u2014 | \u2014 | \u2014 | (1,435) | \u2014 | (1,673) | (1,653) | (4,761) |
Assets | 1,242 | 1,821 | 99 | \u2014 | 25 | \u2014 | 2,850 | 6,037 |
Liabilities | \u2014 | \u2014 | (896) | (1,622) | (70) | (2,306) | (973) | (5,867) |
At 1 Jan 2021 | 1,242 | 1,821 | (797) | (1,622) | (45) | (2,306) | 1,877 | 170 |
Income statement | (89) | 161 | \u2014 | (43) | \u2014 | (336) | (656) | (963) |
Other comprehensive income | (5) | 33 | 634 | \u2014 | 212 | (205) | 115 | 784 |
Foreign exchange and other adjustments | 14 | (14) | (7) | 25 | (13) | 28 | (73) | (40) |
At 31 Dec 2021 | 1,162 | 2,001 | (170) | (1,640) | 154 | (2,819) | 1,263 | (49) |
Assets1 | 1,162 | 2,001 | 84 | \u2014 | 176 | 109 | 1,690 | 5,222 |
Liabilities1 | \u2014 | \u2014 | (254) | (1,640) | (22) | (2,928) | (427) | (5,271) |
Basic and diluted earnings per share | |||||||||
2022 | 2021 | 2020 | |||||||
Profit | Number of shares | Per share | Profit | Number of shares | Per share | Profit | Number of shares | Per share | |
$m | (millions) | $ | $m | (millions) | $ | $m | (millions) | $ | |
Basic1 | 14,822 | 19,849 | 0.75 | 12,607 | 20,197 | 0.62 | 3,898 | 20,169 | 0.19 |
Effect of dilutive potential ordinary shares | 137 | 105 | 73 | ||||||
Diluted1 | 14,822 | 19,986 | 0.74 | 12,607 | 20,302 | 0.62 | 3,898 | 20,242 | 0.19 |
2020 | |||||
Net operating income/(expense) before change in expected credit losses and other credit impairment charges1 | 21,481 | 12,889 | 14,696 | (218) | 48,848 |
\u2013\u00a0 external | 19,521 | 13,278 | 17,635 | (1,586) | 48,848 |
\u2013\u00a0 inter-segment | 1,960 | (389) | (2,939) | 1,368 | \u2014 |
\u2013\u00a0 of which: net interest income/(expense) | 14,752 | 8,997 | 4,314 | (1,324) | 26,739 |
Change in expected credit losses and other credit impairment (charges)/ recoveries | (2,878) | (4,710) | (1,227) | \u2014 | (8,815) |
Net operating income/(expense) | 18,603 | 8,179 | 13,469 | (218) | 40,033 |
Total operating expenses | (14,536) | (6,475) | (8,895) | (539) | (30,445) |
Operating profit/(loss) | 4,067 | 1,704 | 4,574 | (757) | 9,588 |
Share of profit in associates and joint ventures | 6 | (1) | \u2014 | 2,102 | 2,107 |
Adjusted profit before tax | 4,073 | 1,703 | 4,574 | 1,345 | 11,695 |
% | % | % | % | % | |
Share of HSBC\u2019s adjusted profit before tax | 34.8 | 14.6 | 39.1 | 11.5 | 100.0 |
Adjusted cost efficiency ratio | 67.7 | 50.2 | 60.5 | (247.2) | 62.3 |
Adjusted balance sheet data | $m | $m | $m | $m | $m |
Loans and advances to customers (net) | 436,105 | 320,084 | 211,510 | 1,151 | 968,850 |
Interests in associates and joint ventures | 437 | 15 | 128 | 25,142 | 25,722 |
Total external assets | 828,309 | 530,203 | 1,238,781 | 184,030 | 2,781,323 |
Customer accounts | 788,043 | 439,889 | 310,757 | 540 | 1,539,229 |
2022 | 2021 | 2020 | |
$m | $m | $m | |
Reported external net operating income by country/territory1 | 51,727 | 49,552 | 50,429 |
\u2013\u00a0 UK | 11,767 | 10,909 | 9,163 |
\u2013\u00a0 Hong Kong | 15,894 | 14,245 | 15,783 |
\u2013\u00a0 US | 3,893 | 3,795 | 4,474 |
\u2013\u00a0 France | 136 | 2,179 | 1,753 |
\u2013\u00a0 other countries | 20,037 | 18,424 | 19,256 |
Adjusted results reconciliation | |||||||||||
2022 | 2021 | 2020 | |||||||||
Adjusted | Significant items | Reported | Adjusted | Currency translation | Significant items | Reported | Adjusted | Currency translation | Significant items | Reported | |
$m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | |
Revenue1 | 55,345 | (3,618) | 51,727 | 47,020 | 3,074 | (542) | 49,552 | 48,848 | 1,523 | 58 | 50,429 |
ECL | (3,592) | \u2014 | (3,592) | 754 | 174 | \u2014 | 928 | (8,815) | (2) | \u2014 | (8,817) |
Operating expenses | (30,466) | (2,864) | (33,330) | (30,104) | (2,181) | (2,335) | (34,620) | (30,445) | (1,170) | (2,817) | (34,432) |
Share of profit in associates and joint ventures | 2,723 | \u2014 | 2,723 | 2,933 | 113 | \u2014 | 3,046 | 2,107 | (48) | (462) | 1,597 |
Profit/(loss) before tax | 24,010 | (6,482) | 17,528 | 20,603 | 1,180 | (2,877) | 18,906 | 11,695 | 303 | (3,221) | 8,777 |
Adjusted balance sheet reconciliation | |||||||
2022 | 2021 | 2020 | |||||
Reported and adjusted | Adjusted | Currency translation | Reported | Adjusted | Currency translation | Reported | |
$m | $m | $m | $m | $m | $m | $m | |
Loans and advances to customers (net) | 924,854 | 991,197 | 54,617 | 1,045,814 | 968,850 | 69,137 | 1,037,987 |
Interests in associates and joint ventures | 29,254 | 28,086 | 1,523 | 29,609 | 25,722 | 962 | 26,684 |
Total external assets | 2,966,530 | 2,805,820 | 152,119 | 2,957,939 | 2,781,323 | 202,841 | 2,984,164 |
Customer accounts | 1,570,303 | 1,622,547 | 88,027 | 1,710,574 | 1,539,229 | 103,551 | 1,642,780 |
Adjusted profit reconciliation | |||
2022 | 2021 | 2020 | |
$m | $m | $m | |
Year ended 31 Dec | |||
Adjusted profit before tax | 24,010 | 20,603 | 11,695 |
Significant items | (6,482) | (2,877) | (3,221) |
\u2013\u00a0 customer redress programmes (revenue) | 8 | 11 | (21) |
\u2013\u00a0 disposals, acquisitions and investment in new businesses (revenue)1 | (2,799) | \u2014 | (10) |
\u2013\u00a0 fair value movements on financial instruments2 | (579) | (242) | 264 |
\u2013\u00a0 restructuring and other related costs (revenue)3 | (248) | (307) | (170) |
\u2013\u00a0 customer redress programmes (operating expenses) | 31 | (49) | 54 |
\u2013\u00a0 disposals, acquisitions and investment in new businesses (operating expenses) | (18) | \u2014 | \u2014 |
\u2013\u00a0 impairment of goodwill and other intangible assets | 4 | (587) | (1,090) |
\u2013\u00a0 past service costs of guaranteed minimum pension benefits equalisation | \u2014 | \u2014 | (17) |
\u2013\u00a0 restructuring and other related costs (operating expenses)4 | (2,881) | (1,836) | (1,908) |
\u2013\u00a0 settlements and provisions in connection with legal and other regulatory matters | \u2014 | \u2014 | (12) |
\u2013\u00a0 impairment of goodwill (share of profit in associates and joint ventures)5 | \u2014 | \u2014 | (462) |
\u2013\u00a0 currency translation on significant items | 133 | 151 | |
Currency translation | 1,180 | 303 | |
Reported profit before tax | 17,528 | 18,906 | 8,777 |
12 | Fair values of financial instruments carried at fair value |
Financial instruments carried at fair value and bases of valuation | ||||||||
2022 | 2021 | |||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Recurring fair value measurements at 31 Dec | ||||||||
Assets | ||||||||
Trading assets | 148,592 | 64,684 | 4,817 | 218,093 | 180,423 | 65,757 | 2,662 | 248,842 |
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | 15,978 | 13,019 | 16,066 | 45,063 | 17,937 | 17,629 | 14,238 | 49,804 |
Derivatives | 2,917 | 279,265 | 1,964 | 284,146 | 2,783 | 191,621 | 2,478 | 196,882 |
Financial investments | 182,231 | 71,621 | 2,965 | 256,817 | 247,745 | 97,838 | 3,389 | 348,972 |
Liabilities | ||||||||
Trading liabilities | 44,787 | 27,092 | 474 | 72,353 | 63,437 | 20,682 | 785 | 84,904 |
Financial liabilities designated at fair value | 1,130 | 115,765 | 10,432 | 127,327 | 1,379 | 136,243 | 7,880 | 145,502 |
Derivatives | 2,400 | 280,444 | 2,920 | 285,764 | 1,686 | 186,290 | 3,088 | 191,064 |
Financial instruments measured at fair value using a valuation technique with significant unobservable inputs \u2013 Level 3 | |||||||||
Assets | Liabilities | ||||||||
Financial investments | Trading assets | Designated and otherwise mandatorily measured at fair value through profit or loss | Derivatives | Total | Trading liabilities | Designated at fair value | Derivatives | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | $m | |
Private equity including strategic investments | 647 | 19 | 15,652 | \u2014 | 16,318 | 92 | \u2014 | \u2014 | 92 |
Asset-backed securities | 438 | 208 | 95 | \u2014 | 741 | \u2014 | \u2014 | \u2014 | \u2014 |
Structured notes | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 10,432 | \u2014 | 10,432 |
Other derivatives | \u2014 | \u2014 | \u2014 | 1,964 | 1,964 | \u2014 | \u2014 | 2,920 | 2,920 |
Other portfolios | 1,880 | 4,590 | 319 | \u2014 | 6,789 | 382 | \u2014 | \u2014 | 382 |
At 31 Dec 2022 | 2,965 | 4,817 | 16,066 | 1,964 | 25,812 | 474 | 10,432 | 2,920 | 13,826 |
Private equity including strategic investments | 544 | 2 | 13,732 | \u2014 | 14,278 | 9 | \u2014 | \u2014 | 9 |
Asset-backed securities | 1,008 | 132 | 1 | \u2014 | 1,141 | \u2014 | \u2014 | \u2014 | \u2014 |
Structured notes | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 7,879 | \u2014 | 7,879 |
Other derivatives | \u2014 | \u2014 | \u2014 | 2,478 | 2,478 | \u2014 | \u2014 | 3,088 | 3,088 |
Other portfolios | 1,837 | 2,528 | 505 | \u2014 | 4,870 | 776 | 1 | \u2014 | 777 |
At 31 Dec 2021 | 3,389 | 2,662 | 14,238 | 2,478 | 22,767 | 785 | 7,880 | 3,088 | 11,753 |
At 1 Jan 2021 | 3,654 | 2,499 | 11,477 | 2,670 | 162 | 5,306 | 4,188 |
Total gains/(losses) recognised in profit or\u00a0loss | (10) | (378) | 1,753 | 2,237 | 16 | (836) | 2,583 |
\u2013\u00a0 net income/(losses) from financial instruments held for trading or managed on a fair value basis | \u2014 | (378) | \u2014 | 2,237 | 16 | \u2014 | 2,583 |
\u2013\u00a0 changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | \u2014 | \u2014 | 1,753 | \u2014 | \u2014 | (836) | \u2014 |
\u2013\u00a0 gains less losses from financial investments at fair value through other comprehensive income | (10) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Total gains/(losses) recognised in other comprehensive income (\u2018OCI\u2019)1 | (521) | (18) | (285) | (27) | (8) | (61) | (26) |
\u2013\u00a0 financial investments: fair value gains/ (losses) | (428) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
\u2013\u00a0 exchange differences | (93) | (18) | (285) | (27) | (8) | (61) | (26) |
Purchases | 1,025 | 1,988 | 3,692 | \u2014 | 1,014 | 1 | \u2014 |
New issuances | \u2014 | \u2014 | \u2014 | \u2014 | 35 | 5,969 | \u2014 |
Sales | (580) | (473) | (1,216) | \u2014 | (4) | (27) | \u2014 |
Settlements | (336) | (747) | (1,049) | (2,347) | (681) | (2,922) | (3,962) |
Transfers out | (383) | (1,027) | (184) | (418) | (7) | (704) | (734) |
Transfers in | 540 | 818 | 50 | 363 | 258 | 1,154 | 1,039 |
At 31 Dec 2021 | 3,389 | 2,662 | 14,238 | 2,478 | 785 | 7,880 | 3,088 |
Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 31\u00a0Dec 2020 | \u2014 | (309) | 1,509 | 1,298 | \u2014 | 166 | (969) |
\u2013\u00a0 net income/(losses) from financial instruments held for trading or managed on a fair value basis | \u2014 | (309) | \u2014 | 1,298 | \u2014 | \u2014 | (969) |
\u2013\u00a0 changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | \u2014 | \u2014 | 1,509 | \u2014 | \u2014 | 166 | \u2014 |
Basis of valuing HSBC Holdings\u2019 financial assets and liabilities measured at fair value | ||
2022 | 2021 | |
$m | $m | |
Valuation technique using observable inputs: Level 2 | ||
Assets at 31 Dec | ||
\u2013\u00a0 derivatives | 3,801 | 2,811 |
\u2013\u00a0 designated and otherwise mandatorily measured at fair value through profit or loss | 52,322 | 51,408 |
Liabilities at 31 Dec | ||
\u2013\u00a0 designated at fair value | 32,123 | 32,418 |
\u2013\u00a0 derivatives | 6,922 | 1,220 |
Fair values of financial instruments not carried at fair value and bases of valuation \u2013 assets and disposal groups held for sale | |||||
Fair value | |||||
Carrying amount | Quoted market price Level 1 | Observable inputs Level 2 | Significant unobservable inputs Level 3 | Total | |
$m | $m | $m | $m | $m | |
At 31 Dec 2022 | |||||
Assets | |||||
Loans and advances to banks | 253 | \u2014 | 257 | \u2014 | 257 |
Loans and advances to customers | 80,687 | \u2014 | 111 | 78,048 | 78,159 |
Reverse repurchase agreements \u2013 non-trading | 4,646 | \u2014 | 4,646 | \u2014 | 4,646 |
Financial investments \u2013 at amortised cost | 6,165 | 6,042 | \u2014 | \u2014 | 6,042 |
Liabilities | |||||
Deposits by banks | 64 | \u2014 | 64 | \u2014 | 64 |
Customer accounts | 85,274 | \u2014 | 85,303 | \u2014 | 85,303 |
Repurchase agreements \u2013 non-trading | 3,266 | \u2014 | 3,266 | \u2014 | 3,266 |
Debt securities in issue | 12,928 | \u2014 | 12,575 | \u2014 | 12,575 |
Subordinated liabilities | 8 | \u2014 | 7 | \u2014 | 7 |
At 31 Dec 2021 | |||||
Assets | |||||
Loans and advances to banks | 3 | \u2014 | 3 | \u2014 | 3 |
Loans and advances to customers | 3,056 | \u2014 | 363 | 2,808 | 3,171 |
Liabilities | |||||
Deposits by banks | 87 | \u2014 | 87 | \u2014 | 87 |
Customer accounts | 8,750 | \u2014 | 8,750 | \u2014 | 8,750 |
Fair values of HSBC Holdings\u2019 financial instruments not carried at fair value on the balance sheet | ||||
2022 | 2021 | |||
Carrying amount | Fair value1 | Carrying amount | Fair value1 | |
$m | $m | $m | $m | |
Assets at 31 Dec | ||||
Loans and advances to HSBC undertakings | 26,765 | 26,962 | 25,108 | 25,671 |
Financial investments \u2013 at amortised cost | 19,466 | 19,314 | 26,194 | 26,176 |
Liabilities at 31 Dec | ||||
Debt securities in issue | 66,938 | 65,364 | 67,483 | 69,719 |
Subordinated liabilities | 19,727 | 20,644 | 17,059 | 21,066 |
14 | Financial assets designated and otherwise mandatorily measured at fair value through profit or loss |
2022 | 2021 | |||||
Designated at fair value | Mandatorily measured at fair value | Total | Designated at fair value | Mandatorily measured at fair value | Total | |
$m | $m | $m | $m | $m | $m | |
Securities | 3,079 | 38,529 | 41,608 | 2,251 | 42,062 | 44,313 |
\u2013\u00a0 treasury and other eligible bills | 649 | 95 | 744 | 599 | 31 | 630 |
\u2013\u00a0 debt securities | 2,430 | 3,969 | 6,399 | 1,652 | 5,177 | 6,829 |
\u2013\u00a0 equity securities | \u2014 | 34,465 | 34,465 | \u2014 | 36,854 | 36,854 |
Loans and advances to banks and customers | \u2014 | 1,841 | 1,841 | \u2014 | 4,307 | 4,307 |
Other | \u2014 | 1,614 | 1,614 | \u2014 | 1,184 | 1,184 |
At 31 Dec | 3,079 | 41,984 | 45,063 | 2,251 | 47,553 | 49,804 |
15 | Derivatives |
Notional contract amounts and fair values of derivatives by product contract type held by HSBC | ||||||||
Notional contract amount | Fair value \u2013 Assets | Fair value \u2013 Liabilities | ||||||
Trading | Hedging | Trading | Hedging | Total | Trading | Hedging | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Foreign exchange | 8,434,453 | 38,924 | 122,203 | 525 | 122,728 | 123,088 | 166 | 123,254 |
Interest rate | 15,213,232 | 276,589 | 285,438 | 5,066 | 290,504 | 287,877 | 3,501 | 291,378 |
Equities | 570,410 | \u2014 | 9,325 | \u2014 | 9,325 | 9,176 | \u2014 | 9,176 |
Credit | 183,995 | \u2014 | 1,091 | \u2014 | 1,091 | 1,264 | \u2014 | 1,264 |
Commodity and other | 78,413 | \u2014 | 1,485 | \u2014 | 1,485 | 1,679 | \u2014 | 1,679 |
Gross total fair values | 24,480,503 | 315,513 | 419,542 | 5,591 | 425,133 | 423,084 | 3,667 | 426,751 |
Offset (Note 31) | (140,987) | (140,987) | ||||||
At 31 Dec 2022 | 24,480,503 | 315,513 | 419,542 | 5,591 | 284,146 | 423,084 | 3,667 | 285,764 |
Foreign exchange | 7,723,034 | 43,839 | 79,801 | 1,062 | 80,863 | 77,670 | 207 | 77,877 |
Interest rate | 14,470,539 | 162,921 | 151,631 | 1,749 | 153,380 | 146,808 | 966 | 147,774 |
Equities | 659,142 | \u2014 | 12,637 | \u2014 | 12,637 | 14,379 | \u2014 | 14,379 |
Credit | 190,724 | \u2014 | 2,175 | \u2014 | 2,175 | 3,151 | \u2014 | 3,151 |
Commodity and other | 74,159 | \u2014 | 1,205 | \u2014 | 1,205 | 1,261 | \u2014 | 1,261 |
Gross total fair values | 23,117,598 | 206,760 | 247,449 | 2,811 | 250,260 | 243,269 | 1,173 | 244,442 |
Offset (Note 31) | (53,378) | (53,378) | ||||||
At 31 Dec 2021 | 23,117,598 | 206,760 | 247,449 | 2,811 | 196,882 | 243,269 | 1,173 | 191,064 |
HSBC hedging instrument by hedged risk | |||||
Hedging instrument | |||||
Carrying amount | |||||
Notional amount1 | Assets | Liabilities | Balance sheet presentation | Change in fair value2 | |
Hedged risk | $m | $m | $m | $m | |
Interest rate3 | 162,062 | 4,973 | 2,573 | Derivatives | 4,064 |
At 31 Dec 2022 | 162,062 | 4,973 | 2,573 | 4,064 |
Interest rate3 | 90,556 | 1,637 | 1,410 | Derivatives | 1,330 |
At 31 Dec 2021 | 90,556 | 1,637 | 1,410 | 1,330 |
HSBC hedged item by hedged risk | ||||||||
Hedged item | Ineffectiveness | |||||||
Carrying amount | Accumulated fair value hedge adjustments included in carrying amount2 | Change in fair value1 | Recognised in profit and loss | |||||
Assets | Liabilities | Assets | Liabilities | Balance sheet presentation | Profit and loss presentation | |||
Hedged risk | $m | $m | $m | $m | $m | $m | ||
Interest rate3 | 82,792 | (5,100) | Financial investments measured at fair value through other comprehensive income | (8,005) | (59) | Net income from financial instruments held for trading or managed on a fair value basis | ||
3,415 | (210) | Loans and advances to customers | (233) | |||||
519 | (18) | Reverse repos | (17) | |||||
49,180 | (2,006) | Debt securities in issue | 4,138 | |||||
83 | \u2014 | Deposits by banks | (5) | |||||
At 31 Dec 2022 | 86,726 | 49,263 | (5,328) | (2,006) | (4,122) | (59) |
Interest rate3 | 68,059 | 1,199 | Financial assets designated and otherwise mandatorily measured at fair value through other comprehensive income | (1,932) | (36) | Net income from financial instruments held for trading or managed on a fair value basis | ||
2 | (3) | Loans and advances to banks | (3) | |||||
3,066 | 9 | Loans and advances to customers | (41) | |||||
14,428 | 992 | Debt securities in issue | 609 | |||||
86 | 1 | Deposits by banks | 1 | |||||
At 31 Dec 2021 | 71,127 | 14,514 | 1,205 | 993 | (1,366) | (36) |
HSBC Holdings hedging instrument by hedged risk | |||||
Hedging instrument | |||||
Carrying amount | |||||
Notional amount1,4 | Assets | Liabilities | Balance sheet presentation | Change in fair value2 | |
Hedged risk | $m | $m | $m | $m | |
Interest rate3 | 81,873 | 913 | 4,413 | Derivatives | (5,599) |
At 31 Dec 2022 | 81,873 | 913 | 4,413 | (5,599) | |
Interest rate3 | 45,358 | 1,715 | 74 | Derivatives | (1,515) |
At 31 Dec 2021 | 45,358 | 1,715 | 74 | (1,515) |
HSBC Holdings hedged item by hedged risk | ||||||||
Hedged item | Ineffectiveness | |||||||
Carrying amount | Accumulated fair value hedge adjustments included in carrying amount2 | Change in fair value1 | Recognised in profit and loss | |||||
Assets | Liabilities | Assets | Liabilities | Balance sheet presentation | Profit and loss presentation | |||
Hedged risk | $m | $m | $m | $m | $m | $m | ||
Interest rate3 | 68,223 | (3,829) | Debt securities in issue | 6,258 | (34) | Net income from financial instruments held for trading or managed on a fair value basis | ||
6,812 | (789) | Loans and advances to banks | (693) | |||||
At 31 Dec 2022 | 6,812 | 68,223 | (789) | (3,829) | 5,565 | (34) | ||
Interest rate3 | 39,154 | 1,408 | Debt securities in issue | 1,599 | (21) | Net income from financial instruments held for trading or managed on a fair value basis | ||
7,863 | (104) | Loans and advances to banks | (104) | |||||
At 31 Dec 2021 | 7,863 | 39,154 | (104) | 1,408 | 1,495 | (21) |
Reconciliation of equity and analysis of other comprehensive income by risk type | ||
Interest rate | Foreign currency | |
$m | $m | |
Cash flow hedging reserve at 1 Jan 2022 | 8 | (205) |
Fair value gains/(losses) | (4,973) | 659 |
Fair value (gains)/losses reclassified from the cash flow hedge reserve to the income statement in respect of: | ||
Hedged items that have affected profit or loss1 | 325 | (926) |
Income taxes | 1,123 | 28 |
Others | 130 | 23 |
Cash flow hedging reserve at 31 Dec 2022 | (3,387) | (421) |
Hedging instrument impacted by Ibor reform | |||||||
Hedging instrument | |||||||
Impacted by Ibor reform | Not impacted by Ibor reform | Notional amount1 | |||||
\u20ac2 | \u00a3 | $ | Other3 | Total | |||
$m | $m | $m | $m | $m | $m | $m | |
Fair value hedges | 12,756 | \u2014 | 2,015 | 12,643 | 27,414 | 134,648 | 162,062 |
Cash flow hedges | 8,865 | \u2014 | \u2014 | 27,830 | 36,695 | 77,832 | 114,527 |
At 31 Dec 2022 | 21,621 | \u2014 | 2,015 | 40,473 | 64,109 | 212,480 | 276,589 |
Fair value hedges | 6,178 | \u2014 | 18,525 | 6,615 | 31,318 | 59,238 | 90,556 |
Cash flow hedges | 7,954 | \u2014 | 100 | 8,632 | 16,686 | 55,679 | 72,365 |
At 31 Dec 2021 | 14,132 | \u2014 | 18,625 | 15,247 | 48,004 | 114,917 | 162,921 |
Hedging instrument impacted by Ibor reform held by HSBC Holdings | |||||||
Hedging instrument | |||||||
Impacted by Ibor reform | Not impacted by Ibor reform | Notional amount | |||||
\u20ac | \u00a3 | $ | Other | Total | |||
$m | $m | $m | $m | $m | $m | $m | |
Fair value hedges | 15,210 | \u2014 | 2,000 | 1,336 | 18,546 | 63,327 | 81,873 |
At 31 Dec 2022 | 15,210 | \u2014 | 2,000 | 1,336 | 18,546 | 63,327 | 81,873 |
Fair value hedges | 9,944 | \u2014 | 20,035 | 1,458 | 31,437 | 13,921 | 45,358 |
At 31 Dec 2021 | 9,944 | \u2014 | 20,035 | 1,458 | 31,437 | 13,921 | 45,358 |
16 | Financial investments |
Carrying amount of financial investments | ||
2022 | 2021 | |
$m | $m | |
Financial investments measured at fair value through other comprehensive income | 256,817 | 348,972 |
\u2013\u00a0 treasury and other eligible bills | 86,749 | 100,158 |
\u2013\u00a0 debt securities | 168,264 | 246,998 |
\u2013\u00a0 equity securities | 1,696 | 1,770 |
\u2013\u00a0 other instruments | 108 | 46 |
Debt instruments measured at amortised cost | 168,747 | 97,302 |
\u2013\u00a0 treasury and other eligible bills | 35,282 | 21,634 |
\u2013\u00a0 debt securities | 133,465 | 75,668 |
At 31 Dec | 425,564 | 446,274 |
Equity instruments measured at fair value through other comprehensive income | ||
Fair value | Dividends recognised | |
Type of equity instruments | $m | $m |
Investments required by central institutions | 690 | 24 |
Business facilitation | 954 | 28 |
Others | 52 | 2 |
At 31 Dec 2022 | 1,696 | 54 |
Investments required by central institutions | 766 | 17 |
Business facilitation | 954 | 24 |
Others | 50 | 3 |
At 31 Dec 2021 | 1,770 | 44 |
HSBC Holdings carrying amount of financial investments | ||
2022 | 2021 | |
$m | $m | |
Debt instruments measured at amortised cost | ||
\u2013\u00a0 treasury and other eligible bills | 12,796 | 19,508 |
\u2013\u00a0 debt securities | 6,670 | 6,686 |
At 31 Dec | 19,466 | 26,194 |
At 31 Dec 2022 | |||
Country of incorporation and principal place of business | Principal activity | HSBC\u2019s interest % | |
Bank of Communications Co., Limited | People\u2019s Republic of China | Banking services | 19.03 |
The Saudi British Bank | Saudi Arabia | Banking services | 31.00 |
Share of profit in associates and joint ventures | ||
2022 | 2021 | |
$m | $m | |
Bank of Communications Co., Limited | 2,377 | 2,461 |
The Saudi British Bank | 342 | 276 |
Other associates and joint ventures | 4 | 309 |
Share of profit in associates and joint ventures | 2,723 | 3,046 |
At 31 Dec 2022 | At 31 Dec 2021 | |||||
VIU | Carrying value | Fair value | VIU | Carrying value | Fair value | |
$bn | $bn | $bn | $bn | $bn | $bn | |
BoCom | 23.5 | 23.3 | 8.1 | 24.8 | 23.6 | 8.5 |
Key assumption | Changes to key assumption to reduce headroom to nil |
\u2022Long-term profit growth rate | \u2022Decrease by 4 basis points |
\u2022Long-term asset growth rate | \u2022Increase by 3 basis points |
\u2022Discount rate | \u2022Increase by 5 basis points |
\u2022Expected credit losses as a percentage of customer advances | \u2022Increase by 1 basis points |
\u2022Risk-weighted assets as a percentage of total assets | \u2022Increase by 26 basis points |
\u2022Operating income growth rate | \u2022Decrease by 5 basis points |
\u2022Cost-income ratio | \u2022Increase by 15 basis points |
\u2022Long-term effective tax rate | \u2022Increase by 46 basis points |
\u2022Capital requirements \u2013 capital adequacy ratio | \u2022Increase by 5 basis points |
\u2022Capital requirements \u2013 tier 1 capital adequacy ratio | \u2022Increase by 175 basis points |
Sensitivity of VIU to reasonably possible changes in key assumptions | ||||||
Favourable change | Unfavourable change | |||||
Increase in VIU | VIU | Decrease in VIU | VIU | |||
bps | $bn | $bn | bps | $bn | $bn | |
At 31 Dec 2022 | ||||||
Long-term profit growth rate1 | 75 | 3.6 | 27.1 | (71) | (2.7) | 20.8 |
Long-term asset growth rate1 | (71) | 3.1 | 26.6 | 75 | (4.1) | 19.4 |
Discount rate | (164) | 6.9 | 30.4 | 136 | (3.7) | 19.8 |
Expected credit losses as a percentage of customer advances | 2022 to 2026: 95 2027 onwards: 91 | 1.9 | 25.4 | 2022 to 2026: 120 2027 onwards: 104 | (2.9) | 20.6 |
Risk-weighted assets as a percentage of total assets | (118) | 0.1 | 23.6 | 239 | (2.3) | 21.2 |
Operating income growth rate | 44 | 1.3 | 24.8 | (83) | (2.5) | 21.0 |
Cost-income ratio | (122) | 1.0 | 24.5 | 174 | (2.1) | 21.4 |
Long-term effective tax rate | (426) | 1.5 | 25.0 | 1,000 | (3.6) | 19.9 |
Capital requirements \u2013 capital adequacy ratio | \u2014 | \u2014 | 23.5 | 191 | (6.3) | 17.2 |
Capital requirements \u2013 tier 1 capital adequacy ratio | \u2014 | \u2014 | 23.5 | 266 | (3.2) | 20.3 |
At 31 Dec 2021 | ||||||
Long-term profit growth rate1 | 87 | 4.2 | 29.0 | (69) | (2.7) | 22.1 |
Long-term asset growth rate1 | (69) | 2.9 | 27.7 | 87 | (4.7) | 20.1 |
Discount rate | (133) | 5.4 | 30.2 | 207 | (5.3) | 19.5 |
Expected credit losses as a percentage of customer advances | 2021 to 2025: 103 2026 onwards: 91 | 1.5 | 26.3 | 2021 to 2025: 121 2026 onwards: 105 | (2.7) | 22.1 |
Risk-weighted assets as a percentage of total assets | (111) | 0.2 | 25.0 | 280 | (2.1) | 22.7 |
Operating income growth rate | 37 | 1.0 | 25.8 | (58) | (1.8) | 23.0 |
Cost-income ratio | (152) | 1.7 | 26.5 | 174 | (1.7) | 23.1 |
Long-term effective tax rate | (104) | 0.3 | 25.1 | 1,000 | (3.6) | 21.2 |
Capital requirements \u2013 capital adequacy ratio | \u2014 | \u2014 | 24.8 | 325 | (10.0) | 14.8 |
Capital requirements \u2013 tier 1 capital adequacy ratio | \u2014 | \u2014 | 24.8 | 364 | (6.5) | 18.3 |
Selected balance sheet information of BoCom | |||
At 30\u00a0 Sep | |||
2022 | 2021 | ||
$m | $m | ||
Cash and balances at central banks | 114,390 | 123,194 | |
Due from and placements with banks and other financial institutions | 99,802 | 98,932 | |
Loans and advances to customers | 1,022,223 | 993,956 | |
Other financial assets | 549,364 | 541,577 | |
Other assets | 55,884 | 47,679 | |
Total assets | 1,841,663 | 1,805,338 | |
Due to and placements from banks and other financial institutions | 277,185 | 287,057 | |
Deposits from customers | 1,144,297 | 1,099,266 | |
Other financial liabilities | 237,521 | 228,135 | |
Other liabilities | 35,543 | 40,070 | |
Total liabilities | 1,694,546 | 1,654,528 | |
Total equity | 147,117 | 150,810 |
Reconciliation of BoCom\u2019s total shareholders\u2019 equity to the carrying amount in HSBC\u2019s consolidated financial statements | ||
At 30 Sep | ||
2022 | 2021 | |
$m | $m | |
HSBC\u2019s share of total shareholders\u2019 equity | 22,828 | 23,097 |
Goodwill | 479 | 519 |
Carrying amount\u00a0 | 23,307 | 23,616 |
Selected income statement information of BoCom | ||
For the 12 months ended 30 Sep | ||
2022 | 2021 | |
$m | $m | |
Net interest income | 25,314 | 24,582 |
Net fee and commission income | 6,854 | 7,170 |
Credit and impairment losses | (9,712) | (9,701) |
Depreciation and amortisation | (2,351) | (2,297) |
Tax expense | (598) | (1,045) |
Profit for the year | 13,582 | 14,199 |
Other comprehensive income | (245) | (368) |
Total comprehensive income | 13,337 | 13,831 |
Dividends received from BoCom | 749 | 692 |
Main subsidiaries of HSBC Holdings1 | |||
At 31 Dec 2022 | |||
Place of incorporation or registration | HSBC\u2019s interest % | ||
Share class | |||
Europe | |||
HSBC Bank plc | England and Wales | 100 | \u00a31 Ordinary, $0.01 Non-Cumulative Third Dollar Preference |
HSBC UK Bank plc | England and Wales | 100 | \u00a31 Ordinary |
HSBC Continental Europe | France | 99.99 | \u20ac5 Actions |
HSBC Trinkaus & Burkhardt GmbH | Germany | 99.99 | \u20ac1 Ordinary |
Asia | |||
Hang Seng Bank Limited | Hong Kong | 62.14 | HK$5 Ordinary |
HSBC Bank (China) Company Limited | People\u2019s Republic of China | 100 | CNY1 Ordinary |
HSBC Bank Malaysia Berhad | Malaysia | 100 | RM0.5 Ordinary |
HSBC Life (International) Limited | Bermuda | 100 | HK$1 Ordinary |
The Hongkong and Shanghai Banking Corporation Limited | Hong Kong | 100 | Ordinary no par value |
Middle East and North Africa | |||
HSBC Bank Middle East Limited | United Arab Emirates | 100 | $1 Ordinary and $1 Cumulative Redeemable Preference shares |
North America | |||
HSBC Bank Canada | Canada | 100 | Common no par value and Preference no par value |
HSBC Bank USA, N.A. | US | 100 | $100 Common and $0.01 Preference |
Latin America | |||
HSBC Mexico, S.A., Instituci\u00f3n de Banca M\u00faltiple, Grupo Financiero HSBC | Mexico | 99.99 | MXN2 Ordinary |
Impairment test results | |||
Investments | Recoverable amount | Discount rate | Long-term growth rate |
At 31 Dec 2022 | $m | % | % |
HSBC North America Holdings Limited | 18,363 | 10.00 | 2.22 |
HSBC Bank Bermuda Limited | 2,471 | 10.40 | 1.87 |
At 31 Dec 2021 | |||
HSBC North America Holdings Limited | 20,560 | 9.20 | 3.50 |
HSBC Bank Bermuda Limited | 1,643 | 9.50 | 1.71 |
Reasonably possible changes in key assumptions | ||||
Input | Key assumptions | Associated risks | Reasonably possible change | |
Investment | ||||
HSBC North America Holdings Limited and HSBC Bank Bermuda Limited (subsidiaries of HSBC Overseas Holdings (UK) Limited) | Free cash flows projections | \u2022Level of interest rates and yield curves. \u2022Competitors\u2019 positions within the market. | \u2022Strategic actions relating to revenue and costs are not achieved. | \u2022Free cash flow projections decrease by 10%. |
Discount rate | \u2022Discount rate used is a reasonable estimate of a suitable market rate for the profile of the business. | \u2022External evidence arises to suggest that the rate used is not appropriate to the business. | \u2022Discount rate increases by 1%. |
Subsidiaries with significant non-controlling interests | ||
2022 | 2021 | |
Hang Seng Bank Limited | ||
Proportion of ownership interests and voting rights held by non-controlling interests | 37.86% | 37.86% |
Place of business | Hong Kong | Hong Kong |
$m | $m | |
Profit attributable to non-controlling interests | 520 | 708 |
Accumulated non-controlling interests of the subsidiary | 7,683 | 7,597 |
Dividends paid to non-controlling interests | 361 | 568 |
Summarised financial information: | ||
\u2013\u00a0 total assets | 240,679 | 230,866 |
\u2013\u00a0 total liabilities | 218,892 | 209,315 |
\u2013\u00a0 net operating income before changes in expected credit losses and other credit impairment charges | 4,325 | 4,280 |
\u2013\u00a0 profit for the year | 1,375 | 1,872 |
\u2013\u00a0 total comprehensive income for the year | 1,269 | 1,686 |
20 | Structured entities |
Total assets of HSBC\u2019s consolidated structured entities, split by entity type | |||||
Conduits | Securitisations | HSBC managed funds | Other | Total | |
$bn | $bn | $bn | $bn | $bn | |
At 31 Dec 2022 | 4.2 | 7.2 | 4.8 | 7.5 | 23.7 |
At 31 Dec 2021 | 4.4 | 10.0 | 6.3 | 8.4 | 29.1 |
Nature and risks associated with HSBC interests in unconsolidated structured entities | |||||
Securitisations | HSBC managed funds | Non-HSBC managed funds | Other | Total | |
Total asset values of the entities ($m) | |||||
0\u2013500 | 85 | 338 | 1,321 | 41 | 1,785 |
500\u20132,000 | 8 | 102 | 929 | 4 | 1,043 |
2,000\u20135,000 | \u2014 | 28 | 388 | \u2014 | 416 |
5,000\u201325,000 | \u2014 | 18 | 206 | \u2014 | 224 |
25,000+ | \u2014 | 5 | 24 | \u2014 | 29 |
Number of entities at 31 Dec 2022 | 93 | 491 | 2,868 | 45 | 3,497 |
$bn | $bn | $bn | $bn | $bn | |
Total assets in relation to HSBC\u2019s interests in the unconsolidated structured entities | 2.5 | 10.7 | 19.7 | 2.6 | 35.5 |
\u2013\u00a0 trading assets | \u2014 | 0.4 | 0.1 | \u2014 | 0.5 |
\u2013\u00a0 financial assets designated and otherwise mandatorily measured at fair value | \u2014 | 9.7 | 18.7 | \u2014 | 28.4 |
\u2013\u00a0 loans and advances to customers | 2.5 | \u2014 | 0.5 | 1.9 | 4.9 |
\u2013\u00a0 financial investments | \u2014 | 0.6 | 0.4 | \u2014 | 1.0 |
\u2013\u00a0 other assets | \u2014 | \u2014 | \u2014 | 0.7 | 0.7 |
Total liabilities in relation to HSBC\u2019s interests in the unconsolidated structured entities | \u2014 | \u2014 | \u2014 | 0.4 | 0.4 |
\u2013\u00a0 other liabilities | \u2014 | \u2014 | \u2014 | 0.4 | 0.4 |
Other off-balance sheet commitments | 0.2 | 1.5 | 4.6 | 1.8 | 8.1 |
HSBC\u2019s maximum exposure at 31 Dec 2022 | 2.7 | 12.2 | 24.3 | 4.0 | 43.2 |
Total asset values of the entities ($m) | |||||
0\u2013500 | 96 | 294 | 1,408 | 37 | 1,835 |
500\u20132,000 | 11 | 116 | 911 | 3 | 1,041 |
2,000\u20135,000 | \u2014 | 33 | 435 | \u2014 | 468 |
5,000\u201325,000 | \u2014 | 14 | 197 | \u2014 | 211 |
25,000+ | \u2014 | 4 | 11 | \u2014 | 15 |
Number of entities at 31 Dec 2021 | 107 | 461 | 2,962 | 40 | 3,570 |
$bn | $bn | $bn | $bn | $bn | |
Total assets in relation to HSBC\u2019s interests in the unconsolidated structured entities | 4.8 | 10.8 | 18.6 | 3.8 | 38.0 |
\u2013\u00a0 trading assets | \u2014 | 0.2 | 2.4 | 0.1 | 2.7 |
\u2013\u00a0 financial assets designated and otherwise mandatorily measured at fair value | \u2014 | 10.0 | 15.5 | \u2014 | 25.5 |
\u2013\u00a0 loans and advances to customers | 4.8 | \u2014 | 0.1 | 3.0 | 7.9 |
\u2013\u00a0 financial investments | \u2014 | 0.6 | 0.6 | \u2014 | 1.2 |
\u2013\u00a0 other assets | \u2014 | \u2014 | \u2014 | 0.7 | 0.7 |
Total liabilities in relation to HSBC\u2019s interests in the unconsolidated structured entities | \u2014 | \u2014 | \u2014 | 0.4 | 0.4 |
\u2013\u00a0 other liabilities | \u2014 | \u2014 | \u2014 | 0.4 | 0.4 |
Other off-balance sheet commitments | 0.1 | 0.9 | 4.6 | 1.2 | 6.8 |
HSBC\u2019s maximum exposure at 31 Dec 2021 | 4.9 | 11.7 | 23.2 | 4.6 | 44.4 |
21 | Goodwill and intangible assets |
2022 | 2021 | |
$m | $m | |
Goodwill | 4,156 | 5,033 |
Present value of in-force long-term insurance business | 9,900 | 9,453 |
Other intangible assets1 | 7,265 | 6,136 |
At 31 Dec | 21,321 | 20,622 |
Movement analysis of goodwill | ||
2022 | 2021 | |
$m | $m | |
Gross amount | ||
At 1 Jan | 22,215 | 23,135 |
Exchange differences | (776) | (905) |
Reclassified to held for sale and additions1 | (2,485) | \u2014 |
Other | 11 | (15) |
At 31 Dec | 18,965 | 22,215 |
Accumulated impairment losses | ||
At 1 Jan | (17,182) | (17,254) |
Impairment losses2 | \u2014 | (587) |
Exchange differences | 482 | 659 |
Reclassified to held for sale1 | 1,891 | \u2014 |
At 31 Dec | (14,809) | (17,182) |
Net carrying amount at 31 Dec | 4,156 | 5,033 |
Key assumptions in VIU calculation \u2013 significant CGUs at 1 October 2022 | ||||||||||
Carrying amount at 1\u00a0Oct 2022 | of which goodwill | Value in use at 1\u00a0Oct 2022 | Discount rate | Growth rate beyond initial cash flow | Carrying amount at 1\u00a0Oct\u00a02021 | of which goodwill | Value in use at 1\u00a0Oct 2021 | Discount rate | Growth rate beyond initial cash flow projections | |
$m | $m | $m | % | % | $m | $m | $m | % | % | |
Europe \u2013 WPB | 15,215 | 2,643 | 46,596 | 9.9 | 2.0 | 18,780 | 3,556 | 29,799 | 9.2 | 1.8 |
Movements in PVIF | ||
2022 | 2021 | |
$m | $m | |
At 1 Jan | 9,453 | 9,435 |
Acquisitions | 271 | \u2014 |
Change in PVIF of long-term insurance business | 263 | 130 |
\u2013\u00a0 value of new business written during the year | 1,322 | 1,090 |
\u2013\u00a0 expected return1 | (785) | (903) |
\u2013\u00a0 assumption changes and experience variances (see below) | (252) | (105) |
\u2013\u00a0 other adjustments | (22) | 48 |
Exchange differences and other movements | (87) | (112) |
At 31 Dec | 9,900 | 9,453 |
2022 | 2021 | |||
Hong Kong | France1 | Hong Kong | France1 | |
% | % | % | % | |
Weighted average risk-free rate | 3.85 | 2.80 | 1.40 | 0.69 |
Weighted average risk discount rate | 7.33 | 4.44 | 5.20 | 1.55 |
Expense inflation | 3.00 | 4.26 | 3.00 | 1.80 |
2022 | 2021 | |
$m | $m | |
Prepayments and accrued income | 10,316 | 8,233 |
Settlement accounts | 19,565 | 17,713 |
Cash collateral and margin receivables | 63,421 | 42,171 |
Bullion | 15,752 | 15,283 |
Endorsements and acceptances | 8,407 | 11,229 |
Reinsurers\u2019 share of liabilities under insurance contracts (Note 4) | 4,257 | 3,668 |
Employee benefit assets (Note 5) | 7,282 | 10,269 |
Right-of-use assets | 2,219 | 2,985 |
Owned property, plant and equipment | 10,365 | 10,255 |
Other accounts | 15,282 | 14,765 |
At 31 Dec | 156,866 | 136,571 |
23 | Assets held for sale and liabilities of disposal groups held for sale |
2022 | 2021 | |
$m | $m | |
Held for sale at 31 December | ||
Disposal groups | 118,055 | 2,921 |
Unallocated impairment losses1 | (2,385) | \u2014 |
Non-current assets held for sale | 249 | 490 |
Assets held for sale | 115,919 | 3,411 |
Liabilities of disposal groups held for sale | 114,597 | 9,005 |
Canada | Retail banking operations in France | Other | Total | |
$m | $m | $m | $m | |
Assets of disposal groups held for sale | ||||
Cash and balances at central banks | 4,664 | 71 | 1,811 | 6,546 |
Trading assets | 3,168 | \u2014 | 8 | 3,176 |
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | 13 | 47 | 1 | 61 |
Derivatives | 866 | \u2014 | \u2014 | 866 |
Loans and advances to banks | 99 | \u2014 | 154 | 253 |
Loans and advances to customers\u00a0 | 55,197 | 25,029 | 350 | 80,576 |
Reverse repurchase agreements \u2013 non-trading | 4,396 | \u2014 | 250 | 4,646 |
Financial investments1 | 17,243 | \u2014 | 106 | 17,349 |
Goodwill | 225 | \u2014 | \u2014 | 225 |
Prepayments, accrued income and other assets | 4,256 | 75 | 26 | 4,357 |
Total assets at 31 December 2022 | 90,127 | 25,222 | 2,706 | 118,055 |
Liabilities of disposal groups held for sale | ||||
Trading liabilities | 2,751 | \u2014 | 3 | 2,754 |
Deposits by banks | 62 | \u2014 | 2 | 64 |
Customer accounts\u00a0 | 60,606 | 22,348 | 2,320 | 85,274 |
Repurchase agreements \u2013 non-trading | 3,266 | \u2014 | \u2014 | 3,266 |
Financial liabilities designated at fair value | \u2014 | 3,523 | \u2014 | 3,523 |
Derivatives | 806 | 7 | \u2014 | 813 |
Debt securities in issue\u00a0 | 11,602 | 1,326 | \u2014 | 12,928 |
Subordinated liabilities | 8 | \u2014 | \u2014 | 8 |
Accruals, deferred income and other liabilities | 5,727 | 159 | 81 | 5,967 |
Total liabilities at 31 December 2022 | 84,828 | 27,363 | 2,406 | 114,597 |
Expected date of completion | Second half of 2023 | Second half of 2023 | ||
Operating segment | All global\u00a0 businesses | WPB |
Retail banking operations in France | |
$m | |
Net assets/(liabilities) classified as held for sale1 | (2,063) |
Expected cash contribution 2 | 4,094 |
Disposal group post-cash contribution 3 | 2,031 |
24 | Trading liabilities |
2022 | 2021 | |
$m | $m | |
Deposits by banks1 | 9,332 | 4,243 |
Customer accounts1 | 10,724 | 9,424 |
Other debt securities in issue (Note 26) | 978 | 1,792 |
Other liabilities \u2013 net short positions in securities | 51,319 | 69,445 |
At 31 Dec | 72,353 | 84,904 |
25 | Financial liabilities designated at fair value |
HSBC | ||
2022 | 2021 | |
$m | $m | |
Deposits by banks and customer accounts1 | 19,171 | 16,703 |
Liabilities to customers under investment contracts | 5,380 | 5,938 |
Debt securities in issue (Note 26) | 93,140 | 112,761 |
Subordinated liabilities (Note 29) | 9,636 | 10,100 |
At 31 Dec | 127,327 | 145,502 |
HSBC Holdings | ||
2022 | 2021 | |
$m | $m | |
Debt securities in issue (Note 26) | 25,423 | 26,818 |
Subordinated liabilities (Note 29) | 6,700 | 5,600 |
At 31 Dec | 32,123 | 32,418 |
HSBC | |||
2022 | 2021 | ||
$m | $m | ||
Bonds and medium-term notes | 145,240 | 166,537 | |
Other debt securities in issue | 27,027 | 26,573 | |
Total debt securities in issue | 172,267 | 193,110 | |
Included within: | |||
\u2013\u00a0 trading liabilities (Note 24) | (978) | (1,792) | |
\u2013\u00a0 financial liabilities designated at fair value (Note 25) | (93,140) | (112,761) | |
At 31 Dec | 78,149 | 78,557 |
HSBC Holdings | ||
2022 | 2021 | |
$m | $m | |
Debt securities | 92,361 | 94,301 |
Included within: | ||
\u2013\u00a0 financial liabilities designated at fair value (Note 25) | (25,423) | (26,818) |
At 31 Dec | 66,938 | 67,483 |
2022 | 2021 | |
$m | $m | |
Accruals and deferred income | 12,353 | 10,466 |
Settlement accounts | 18,176 | 15,226 |
Cash collateral and margin payables | 70,292 | 50,226 |
Endorsements and acceptances | 8,379 | 11,232 |
Employee benefit liabilities (Note 5) | 1,096 | 1,607 |
Lease liabilities | 2,767 | 3,586 |
Other liabilities | 20,177 | 22,430 |
At 31 Dec | 133,240 | 114,773 |
Restructuring costs | Legal proceedings and regulatory matters | Customer remediation | Other provisions | Total | |
$m | $m | $m | $m | $m | |
Provisions (excluding contractual commitments) | |||||
At 1 Jan 2022 | 383 | 619 | 386 | 558 | 1,946 |
Additions | 434 | 271 | 60 | 206 | 971 |
Amounts utilised | (288) | (393) | (106) | (168) | (955) |
Unused amounts reversed | (87) | (82) | (109) | (125) | (403) |
Exchange and other movements | 3 | (6) | (36) | (74) | (113) |
At 31 Dec 2022 | 445 | 409 | 195 | 397 | 1,446 |
Contractual commitments1 | |||||
At 1 Jan 2022 | 620 | ||||
Net change in expected credit loss provision and other movements | (108) | ||||
At 31 Dec 2022 | 512 | ||||
Total provisions | |||||
At 31 Dec 2021 | 2,566 | ||||
At 31 Dec 2022 | 1,958 |
Restructuring costs | Legal proceedings and regulatory matters | Customer remediation | Other provisions | Total | |
$m | $m | $m | $m | $m | |
Provisions (excluding contractual commitments) | |||||
At 1 Jan 2021 | 671 | 756 | 858 | 305 | 2,590 |
Additions | 347 | 249 | 192 | 471 | 1,259 |
Amounts utilised | (499) | (316) | (548) | (58) | (1,421) |
Unused amounts reversed | (170) | (59) | (113) | (124) | (466) |
Exchange and other movements | 34 | (11) | (3) | (36) | (16) |
At 31 Dec 2021 | 383 | 619 | 386 | 558 | 1,946 |
Contractual commitments1 | |||||
At 1 Jan 2021 | 1,088 | ||||
Net change in expected credit loss provision and other movements | (468) | ||||
At 31 Dec 2021 | 620 | ||||
Total provisions | |||||
At 31 Dec 2020 | 3,678 | ||||
At 31 Dec 2021 | 2,566 |
29 | Subordinated liabilities |
HSBC\u2019s subordinated liabilities | ||
2022 | 2021 | |
$m | $m | |
At amortised cost | 22,290 | 20,487 |
\u2013\u00a0 subordinated liabilities | 20,547 | 18,640 |
\u2013\u00a0 preferred securities | 1,743 | 1,847 |
Designated at fair value (Note 25) | 9,636 | 10,100 |
\u2013\u00a0 subordinated liabilities | 9,636 | 10,100 |
\u2013\u00a0 preferred securities | \u2014 | \u2014 |
At 31 Dec | 31,926 | 30,587 |
Issued by HSBC subsidiaries | 6,094 | 9,112 |
Issued by HSBC Holdings | 25,832 | 21,475 |
HSBC\u2019s subsidiaries subordinated liabilities in issue | |||||
2022 | 2021 | ||||
First call date | Maturity date | $m | $m | ||
Additional tier 1 capital securities guaranteed by HSBC Holdings1,2 | |||||
$900m | 10.176% non-cumulative step-up perpetual preferred securities, series 23 | Jun 2030 | 900 | 900 | |
900 | 900 | ||||
Additional tier 1 capital securities guaranteed by HSBC Bank plc1,2 | |||||
\u00a3700m | 5.844% non-cumulative step-up perpetual preferred securities4,5 | Nov 2031 | 684 | 947 | |
684 | 947 | ||||
Tier 2 securities issued by HSBC Bank plc | |||||
$750m | Undated floating rate primary capital notes | Jun 1990 | 750 | 750 | |
$500m | Undated floating rate primary capital notes | Sep 1990 | 500 | 500 | |
$300m | Undated floating rate primary capital notes, series 3 | Jun 1992 | 300 | 300 | |
$300m | 7.65% subordinated notes6 | \u2014 | May 2025 | 170 | 300 |
1,720 | 1,850 | ||||
\u00a3300m | 6.50% subordinated notes7 | \u2014 | Jul 2023 | 162 | 406 |
\u00a3350m | 5.375% callable subordinated step-up notes2,7,8 | Nov 2025 | Nov 2030 | 73 | 539 |
\u00a3500m | 5.375% subordinated notes7 | \u2014 | Aug 2033 | 186 | 900 |
\u00a3225m | 6.25% subordinated notes7 | \u2014 | Jan 2041 | 56 | 303 |
\u00a3600m | 4.75% subordinated notes7 | \u2014 | Mar 2046 | 230 | 805 |
707 | 2,953 | ||||
2,427 | 4,803 | ||||
Tier 2 securities issued by The Hongkong and Shanghai Banking Corporation Limited | |||||
$400m | Primary capital undated floating rate notes (third series) | Jul 1991 | 400 | 400 | |
400 | 400 | ||||
Tier 2 securities issued by HSBC Bank Malaysia Berhad | |||||
MYR500m | 5.05% subordinated bonds2,9 | Nov 2022 | Nov 2027 | \u2014 | 120 |
\u2014 | 120 | ||||
Tier 2 securities issued by HSBC USA Inc. | |||||
$250m | 7.20% subordinated debentures2 | \u2014 | Jul 2097 | 223 | 222 |
223 | 222 | ||||
Tier 2 securities issued by HSBC Bank USA, N.A. | |||||
$1,000m | 5.875% subordinated notes10 | \u2014 | Nov 2034 | 339 | 456 |
$750m | 5.625% subordinated notes10 | \u2014 | Aug 2035 | 366 | 489 |
$700m | 7.00% subordinated notes | \u2014 | Jan 2039 | 700 | 697 |
1,405 | 1,642 | ||||
Tier 2 securities issued by HSBC Bank Canada | |||||
Other subordinated liabilities each less than $150m2,11 | Oct 1996 | Nov 2083 | \u2014 | 9 | |
\u2014 | 9 | ||||
Securities issued by other HSBC subsidiaries | |||||
Other subordinated liabilities each less than $200m12 | 55 | 69 | |||
Subordinated liabilities issued by HSBC subsidiaries at 31 Dec | 6,094 | 9,112 |
HSBC Holdings\u2019 subordinated liabilities | ||
2022 | 2021 | |
$m | $m | |
At amortised cost | 19,727 | 17,059 |
Designated at fair value (Note 25) | 6,700 | 5,600 |
At 31 Dec | 26,427 | 22,659 |
HSBC Holdings\u2019 subordinated liabilities in issue | ||||||
First call | Maturity | 2022 | 2021 | |||
date | date | $m | $m | |||
Tier 2 securities issued by HSBC Holdings | ||||||
Amounts owed to third parties | ||||||
$2,000m | 4.25% subordinated notes2,3 | \u2014 | Mar 2024 | 1,941 | 2,072 | |
$1,500m | 4.25% subordinated notes2 | \u2014 | Aug 2025 | 1,450 | 1,615 | |
$1,500m | 4.375% subordinated notes2 | \u2014 | Nov 2026 | 1,450 | 1,641 | |
$264m | 7.625% subordinated notes1,4 | \u2014 | May 2032 | 308 | 536 | |
$223m | 7.625% subordinated notes2,6 | \u2014 | May 2032 | 223 | \u2014 | |
$125m | 7.35% subordinated notes1,4 | \u2014 | Nov 2032 | 143 | 241 | |
$97m | 7.35% subordinated notes2,6 | \u2014 | Nov 2032 | 97 | \u2014 | |
$1,431m | 6.50% subordinated notes1,5 | \u2014 | May 2036 | 1,461 | 2,032 | |
$569m | 6.50%subordinated notes2,6 | \u2014 | May 2036 | 568 | \u2014 | |
$1,515m | 6.50% subordinated notes1,5 | \u2014 | Sep 2037 | 1,178 | 2,825 | |
$985m | 6.50% subordinated notes2,6 | \u2014 | Sep 2037 | 977 | \u2014 | |
$961m | 6.80% subordinated notes1,5 | \u2014 | Jun 2038 | 953 | 1,491 | |
$539m | 6.80% subordinated notes2,6 | \u2014 | Jun 2038 | 540 | \u2014 | |
$1,500m | 5.25% subordinated notes2 | \u2014 | Mar 2044 | 1,447 | 1,946 | |
$2,000m | 4.762% subordinated notes2 | Mar 2032 | Mar 2033 | 1,766 | \u2014 | |
$2,000m | 8.113% subordinated notes2 | Nov 2032 | Nov 2033 | 2,008 | \u2014 | |
\u00a3650m | 5.75% subordinated notes2 | \u2014 | Dec 2027 | 775 | 1,040 | |
\u00a3650m | 6.75% subordinated notes2 | \u2014 | Sep 2028 | 816 | 877 | |
\u00a3750m | 7.00% subordinated notes2 | \u2014 | Apr 2038 | 817 | 1,082 | |
\u00a3900m | 6.00% subordinated notes2 | \u2014 | Mar 2040 | 776 | 1,320 | |
\u00a31,000m | 8.201% subordinated notes2 | Aug 2029 | Nov 2034 | 1,252 | \u2014 | |
\u20ac1,500m | 3.0% subordinated notes2 | \u2014 | Jun 2025 | 1,492 | 1,737 | |
\u20ac1,000m | 3.125% subordinated notes2 | \u2014 | Jun 2028 | 991 | 1,304 | |
\u20ac1,250m | 6.364% subordinated notes2 | Nov 2027 | Nov 2032 | 1,316 | \u2014 | |
SGD900m | 5.25%subordinated notes2 | Jun 2027 | Jun 2032 | 694 | \u2014 | |
JPY11,900m | 2.50% subordinated notes2 | Sep 2027 | Sep 2032 | 88 | \u2014 | |
25,527 | 21,759 | |||||
Amounts owed to HSBC undertakings | ||||||
$900m | 10.176% subordinated step-up cumulative notes | Jun 2030 | Jun 2040 | 900 | 900 | |
900 | 900 | |||||
At 31 Dec | 26,427 | 22,659 |
30 | Maturity analysis of assets, liabilities and off-balance sheet commitments |
Maturity analysis of assets, liabilities and off-balance sheet commitments | |||||||||
Due not more than 1 month | Due over 1 month but not more than 3 months | Due over 3 months but not more than 6 months | Due over 6 months but not more than 9 months | Due over 9 months but not more than 1 year | Due over 1 year but not more than 2 years | Due over 2 years but not more than 5 years | Due over 5 years | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | $m | |
Financial assets | |||||||||
Cash and balances at central banks | 327,002 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 327,002 |
Items in the course of collection from other banks | 7,297 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 7,297 |
Hong Kong Government certificates of indebtedness | 43,787 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 43,787 |
Trading assets | 213,234 | 1,333 | 1,343 | 338 | 425 | 808 | 222 | 390 | 218,093 |
Financial assets designated or otherwise mandatorily measured at fair value | 2,778 | 101 | 370 | 658 | (53) | 645 | 2,005 | 38,559 | 45,063 |
Derivatives | 281,710 | 133 | 30 | 21 | 64 | 261 | 1,052 | 875 | 284,146 |
Loans and advances to banks | 72,241 | 13,963 | 8,364 | 880 | 2,344 | 3,058 | 3,900 | 132 | 104,882 |
Loans and advances to customers | 139,935 | 75,487 | 58,983 | 35,642 | 33,738 | 100,027 | 173,306 | 307,736 | 924,854 |
\u2013\u00a0 personal | 41,835 | 9,142 | 6,664 | 5,754 | 5,779 | 18,375 | 51,104 | 273,487 | 412,140 |
\u2013\u00a0 corporate and commercial | 84,956 | 60,064 | 45,719 | 24,427 | 22,627 | 68,514 | 108,590 | 31,135 | 446,032 |
\u2013\u00a0 financial | 13,144 | 6,281 | 6,600 | 5,461 | 5,332 | 13,138 | 13,612 | 3,114 | 66,682 |
Reverse repurchase agreements \u2013 non-trading | 171,173 | 51,736 | 16,164 | 5,840 | 2,776 | 3,999 | 2,066 | \u2014 | 253,754 |
Financial investments | 46,997 | 79,912 | 31,629 | 12,301 | 13,581 | 41,968 | 79,410 | 119,766 | 425,564 |
Assets held for sale1 | 33,781 | 3,755 | 3,452 | 3,044 | 3,263 | 15,369 | 40,017 | 14,697 | 117,378 |
Accrued income and other financial assets | 99,409 | 6,249 | 3,772 | 616 | 777 | 546 | 303 | 1,708 | 113,380 |
Financial assets at 31 Dec 2022 | 1,439,344 | 232,669 | 124,107 | 59,340 | 56,915 | 166,681 | 302,281 | 483,863 | 2,865,200 |
Non-financial assets | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 101,330 | 101,330 |
Total assets at 31 Dec 2022 | 1,439,344 | 232,669 | 124,107 | 59,340 | 56,915 | 166,681 | 302,281 | 585,193 | 2,966,530 |
Off-balance sheet commitments received | |||||||||
Loan and other credit-related commitments | 27,340 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 27,340 |
Financial liabilities | |||||||||
Hong Kong currency notes in circulation | 43,787 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 43,787 |
Deposits by banks | 46,994 | 359 | 3,510 | 205 | 136 | 1,455 | 13,737 | 326 | 66,722 |
Customer accounts | 1,388,297 | 93,108 | 47,712 | 14,244 | 17,295 | 4,719 | 4,607 | 321 | 1,570,303 |
\u2013\u00a0 personal | 657,413 | 55,252 | 35,430 | 10,431 | 12,374 | 2,835 | 2,351 | 2 | 776,088 |
\u2013\u00a0 corporate and commercial | 555,539 | 31,624 | 10,385 | 3,080 | 3,824 | 1,667 | 2,146 | 274 | 608,539 |
\u2013\u00a0 financial | 175,345 | 6,232 | 1,897 | 733 | 1,097 | 217 | 110 | 45 | 185,676 |
Repurchase agreements \u2013 non-trading | 121,193 | 3,804 | 685 | 170 | 645 | 1,250 | \u2014 | \u2014 | 127,747 |
Items in the course of transmission to other banks | 7,864 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 7,864 |
Trading liabilities | 66,027 | 5,668 | 281 | 113 | 113 | 116 | 35 | \u2014 | 72,353 |
Financial liabilities designated at fair value | 16,431 | 7,399 | 6,561 | 4,307 | 5,326 | 19,287 | 34,885 | 33,131 | 127,327 |
\u2013\u00a0 debt securities in issue: covered bonds | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
\u2013\u00a0 debt securities in issue: unsecured | 7,057 | 3,621 | 4,792 | 3,156 | 4,289 | 16,234 | 29,940 | 23,510 | 92,599 |
\u2013\u00a0 subordinated liabilities and preferred securities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 1,971 | 3,675 | 3,990 | 9,636 |
\u2013\u00a0 other | 9,374 | 3,778 | 1,769 | 1,151 | 1,037 | 1,082 | 1,270 | 5,631 | 25,092 |
Derivatives | 284,414 | 73 | 18 | 46 | 57 | 171 | 849 | 136 | 285,764 |
Debt securities in issue | 4,514 | 7,400 | 7,476 | 4,745 | 3,585 | 9,198 | 19,240 | 21,991 | 78,149 |
\u2013\u00a0 covered bonds | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 601 | \u2014 | 601 |
\u2013\u00a0 otherwise secured | 705 | 28 | 40 | 38 | 36 | 124 | 656 | 1,346 | 2,973 |
\u2013\u00a0 unsecured | 3,809 | 7,372 | 7,436 | 4,707 | 3,549 | 9,074 | 17,983 | 20,645 | 74,575 |
Liabilities of disposal groups held for sale2 | 76,928 | 4,342 | 5,374 | 6,599 | 8,606 | 2,343 | 8,653 | 1,479 | 114,324 |
Accruals and other financial liabilities | 104,224 | 9,384 | 4,785 | 1,022 | 1,626 | 1,111 | 2,018 | 1,720 | 125,890 |
Subordinated liabilities | \u2014 | \u2014 | 11 | 160 | \u2014 | \u2014 | 1,689 | 20,430 | 22,290 |
Total financial liabilities at 31 Dec 2022 | 2,160,673 | 131,537 | 76,413 | 31,611 | 37,389 | 39,650 | 85,713 | 79,534 | 2,642,520 |
Non-financial liabilities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 127,982 | 127,982 |
Total liabilities at 31 Dec 2022 | 2,160,673 | 131,537 | 76,413 | 31,611 | 37,389 | 39,650 | 85,713 | 207,516 | 2,770,502 |
Off-balance sheet commitments given | |||||||||
Loan and other credit-related commitments | 825,781 | 184 | 75 | 59 | 210 | 242 | 975 | 328 | 827,854 |
\u2013\u00a0 personal | 242,953 | 2 | 3 | \u2014 | 110 | 199 | 811 | 300 | 244,378 |
\u2013\u00a0 corporate and commercial | 449,843 | 176 | 72 | 59 | 84 | 43 | 163 | 28 | 450,468 |
\u2013\u00a0 financial | 132,985 | 6 | \u2014 | \u2014 | 16 | \u2014 | 1 | \u2014 | 133,008 |
Maturity analysis of assets, liabilities and off-balance sheet commitments (continued) | |||||||||
Due not more than 1 month | Due over 1 month but not more than 3 months | Due over 3 months but not more than 6 months | Due over 6 months but not more than 9 months | Due over 9 months but not more than 1 year | Due over 1 year but not more than 2 years | Due over 2 years but not more than 5 years | Due over 5 years | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | $m | |
Financial assets | |||||||||
Cash and balances at central banks | 403,018 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 403,018 |
Items in the course of collection from other banks | 4,136 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 4,136 |
Hong Kong Government certificates of indebtedness | 42,578 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 42,578 |
Trading assets | 244,422 | 2,403 | 440 | 194 | 468 | 621 | 294 | \u2014 | 248,842 |
Financial assets designated at fair value | 4,968 | 89 | 585 | 515 | 224 | 855 | 1,852 | 40,716 | 49,804 |
Derivatives | 195,701 | 164 | 85 | 110 | 233 | 91 | 310 | 188 | 196,882 |
Loans and advances to banks | 55,572 | 10,889 | 5,469 | 1,078 | 1,512 | 5,321 | 3,134 | 161 | 83,136 |
Loans and advances to customers | 160,583 | 82,531 | 69,380 | 42,459 | 42,651 | 107,393 | 220,746 | 320,071 | 1,045,814 |
\u2013\u00a0 personal | 50,573 | 11,373 | 8,934 | 8,022 | 7,766 | 25,271 | 78,373 | 284,922 | 475,234 |
\u2013\u00a0 corporate and commercial | 97,554 | 64,511 | 52,548 | 29,341 | 28,749 | 72,441 | 127,527 | 32,664 | 505,335 |
\u2013\u00a0 financial | 12,456 | 6,647 | 7,898 | 5,096 | 6,136 | 9,681 | 14,846 | 2,485 | 65,245 |
Reverse repurchase agreements \u2013 non-trading | 155,997 | 49,392 | 18,697 | 9,386 | 3,661 | 2,672 | 1,843 | \u2014 | 241,648 |
Financial investments | 47,084 | 68,034 | 33,233 | 20,638 | 21,779 | 49,903 | 80,367 | 125,236 | 446,274 |
Assets held for sale1 | 58 | \u2014 | \u2014 | \u2014 | 180 | 11 | 549 | 2,033 | 2,831 |
Accrued income and other financial assets | 79,019 | 5,932 | 2,935 | 536 | 357 | 254 | 263 | 1,689 | 90,985 |
Financial assets at 31 Dec 2021 | 1,393,136 | 219,434 | 130,824 | 74,916 | 71,065 | 167,121 | 309,358 | 490,094 | 2,855,948 |
Non-financial assets | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 101,991 | 101,991 |
Total assets at 31 Dec 2021 | 1,393,136 | 219,434 | 130,824 | 74,916 | 71,065 | 167,121 | 309,358 | 592,085 | 2,957,939 |
Off-balance sheet commitments received | |||||||||
Loan and other credit-related commitments | 49,061 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 49,061 |
Financial liabilities | |||||||||
Hong Kong currency notes in circulation | 42,578 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 42,578 |
Deposits by banks | 63,660 | 2,695 | 2,419 | 238 | 125 | 14,653 | 16,734 | 628 | 101,152 |
Customer accounts | 1,615,025 | 51,835 | 19,167 | 8,007 | 9,710 | 3,143 | 3,585 | 102 | 1,710,574 |
\u2013\u00a0 personal | 802,777 | 24,725 | 12,038 | 5,961 | 5,255 | 2,304 | 2,242 | 26 | 855,328 |
\u2013\u00a0 corporate and commercial | 623,459 | 22,980 | 5,654 | 1,762 | 3,402 | 706 | 1,167 | 33 | 659,163 |
\u2013\u00a0 financial | 188,789 | 4,130 | 1,475 | 284 | 1,053 | 133 | 176 | 43 | 196,083 |
Repurchase agreements \u2013 non-trading | 117,625 | 4,613 | 1,716 | 292 | 142 | 975 | 377 | 930 | 126,670 |
Items in the course of transmission to other banks | 5,214 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 5,214 |
Trading liabilities | 79,789 | 3,810 | 346 | 218 | 223 | 445 | 73 | \u2014 | 84,904 |
Financial liabilities designated at fair value | 18,080 | 9,437 | 4,514 | 3,287 | 4,485 | 17,422 | 42,116 | 46,161 | 145,502 |
\u2013\u00a0 debt securities in issue: covered bonds | \u2014 | 1,137 | \u2014 | \u2014 | \u2014 | 1,481 | 1,160 | \u2014 | 3,778 |
\u2013\u00a0 debt securities in issue: unsecured | 9,916 | 5,967 | 2,823 | 2,259 | 3,462 | 14,758 | 34,515 | 35,282 | 108,982 |
\u2013\u00a0 subordinated liabilities and preferred\u00a0 securities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 5,371 | 4,729 | 10,100 |
\u2013\u00a0 other | 8,164 | 2,333 | 1,691 | 1,028 | 1,023 | 1,183 | 1,070 | 6,150 | 22,642 |
Derivatives | 190,233 | 46 | 11 | 30 | 25 | 100 | 288 | 331 | 191,064 |
Debt securities in issue | 7,053 | 7,777 | 5,664 | 6,880 | 1,703 | 9,045 | 20,254 | 20,181 | 78,557 |
\u2013\u00a0 covered bonds | \u2014 | \u2014 | \u2014 | 997 | \u2014 | 996 | 860 | \u2014 | 2,853 |
\u2013\u00a0 otherwise secured | 957 | 164 | 42 | 31 | 193 | 896 | 1,696 | 1,207 | 5,186 |
\u2013\u00a0 unsecured | 6,096 | 7,613 | 5,622 | 5,852 | 1,510 | 7,153 | 17,698 | 18,974 | 70,518 |
Liabilities of disposal groups held for sale | 8,753 | 6 | 9 | 9 | 8 | 31 | 68 | 11 | 8,895 |
Accruals and other financial liabilities | 82,996 | 10,311 | 5,621 | 1,094 | 1,064 | 1,917 | 2,339 | 2,818 | 108,160 |
Subordinated liabilities | \u2014 | 1 | 11 | \u2014 | \u2014 | 417 | 2,055 | 18,003 | 20,487 |
Total financial liabilities at 31 Dec 2021 | 2,231,006 | 90,531 | 39,478 | 20,055 | 17,485 | 48,148 | 87,889 | 89,165 | 2,623,757 |
Non-financial liabilities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 127,405 | 127,405 |
Total liabilities at 31 Dec 2021 | 2,231,006 | 90,531 | 39,478 | 20,055 | 17,485 | 48,148 | 87,889 | 216,570 | 2,751,162 |
Off-balance sheet commitments given | |||||||||
Loan and other credit-related commitments | 813,491 | 121 | 133 | 228 | 254 | 78 | 931 | 238 | 815,474 |
\u2013\u00a0 personal | 239,207 | 34 | 34 | 54 | 108 | 32 | 688 | 238 | 240,395 |
\u2013\u00a0 corporate and commercial | 456,498 | 76 | 91 | 168 | 143 | 46 | 243 | \u2014 | 457,265 |
\u2013\u00a0 financial | 117,786 | 11 | 8 | 6 | 3 | \u2014 | \u2014 | \u2014 | 117,814 |
Maturity analysis of assets, liabilities and off-balance sheet commitments (continued) | |||||||||
Due not more than 1 month | Due over 1 month but not more than 3 months | Due over 3 months but not more than 6 months | Due over 6 months but not more than 9 months | Due over 9 months but not more than 1 year | Due over 1 year but not more than 2 years | Due over 2 years but not more than 5 years | Due over 5 years | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | $m | |
Financial assets | |||||||||
Cash at bank and in hand: | |||||||||
\u2013\u00a0 balances with HSBC undertakings | 3,210 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 3,210 |
Derivatives | 2,889 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 796 | 116 | 3,801 |
Loans and advances to HSBC undertakings | \u2014 | 2,163 | 240 | \u2014 | \u2014 | 2,035 | 4,414 | 17,913 | 26,765 |
Financial assets with HSBC undertakings designated and otherwise mandatorily measured at fair value | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 9,007 | 16,230 | 27,085 | 52,322 |
Financial investments | 1,517 | 2,712 | 8,870 | 1,020 | 2,194 | 3,153 | \u2014 | \u2014 | 19,466 |
Accrued income and other financial assets | 68 | 4,147 | 179 | 90 | 4 | \u2014 | 14 | \u2014 | 4,502 |
Total financial assets at 31 Dec 2022 | 7,684 | 9,022 | 9,289 | 1,110 | 2,198 | 14,195 | 21,454 | 45,114 | 110,066 |
Non-financial assets | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 171,035 | 171,035 |
Total assets at 31 Dec 2022 | 7,684 | 9,022 | 9,289 | 1,110 | 2,198 | 14,195 | 21,454 | 216,149 | 281,101 |
Financial liabilities | |||||||||
Amounts owed to HSBC undertakings | 48 | 266 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 314 |
Financial liabilities designated at fair\u00a0value | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 1,447 | 16,459 | 14,217 | 32,123 |
\u2013\u00a0 debt securities in issue | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 1,447 | 12,784 | 11,192 | 25,423 |
\u2013\u00a0 subordinated liabilities and preferred securities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 3,675 | 3,025 | 6,700 |
Derivatives | 2,540 | \u2014 | 35 | \u2014 | 102 | 460 | 1,638 | 2,147 | 6,922 |
Debt securities in issue | \u2014 | \u2014 | 1,972 | 448 | 714 | 11,046 | 25,380 | 27,378 | 66,938 |
Accruals and other financial liabilities | 722 | 450 | 648 | 61 | 35 | \u2014 | 14 | 31 | 1,961 |
Subordinated liabilities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 1,941 | 1,492 | 16,294 | 19,727 |
Total financial liabilities 31 Dec 2022 | 3,310 | 716 | 2,655 | 509 | 851 | 14,894 | 44,983 | 60,067 | 127,985 |
Non-financial liabilities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 8 | 8 |
Total liabilities at 31 Dec 2022 | 3,310 | 716 | 2,655 | 509 | 851 | 14,894 | 44,983 | 60,075 | 127,993 |
Financial assets | |||||||||
Cash at bank and in hand: | |||||||||
\u2013\u00a0 balances with HSBC undertakings | 2,590 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 2,590 |
Derivatives | 1,101 | \u2014 | \u2014 | \u2014 | \u2014 | 23 | 585 | 1,102 | 2,811 |
Loans and advances to HSBC undertakings | 120 | 750 | 341 | \u2014 | 3,017 | 5,608 | 13,333 | 1,939 | 25,108 |
Loans and advances to HSBC undertakings designated at fair value | \u2014 | 1,759 | 250 | 1,019 | \u2014 | 5,987 | 19,455 | 22,938 | 51,408 |
Financial investments in HSBC undertakings | 8,377 | 7,166 | 3,014 | 1,346 | 3,026 | 3,265 | \u2014 | \u2014 | 26,194 |
Accrued income and other financial assets | 129 | 874 | 108 | 58 | 4 | \u2014 | \u2014 | \u2014 | 1,173 |
Total financial assets at 31\u00a0Dec\u00a02021 | 12,317 | 10,549 | 3,713 | 2,423 | 6,047 | 14,883 | 33,373 | 25,979 | 109,284 |
Non-financial assets | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 163,888 | 163,888 |
Total assets at 31 Dec 2021 | 12,317 | 10,549 | 3,713 | 2,423 | 6,047 | 14,883 | 33,373 | 189,867 | 273,172 |
Financial liabilities | |||||||||
Amounts owed to HSBC undertakings | \u2014 | 111 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 111 |
Financial liabilities designated at fair value | 397 | 2,484 | \u2014 | \u2014 | \u2014 | 1,364 | 11,276 | 16,897 | 32,418 |
\u2013\u00a0 debt securities in issue | 397 | 2,484 | \u2014 | \u2014 | \u2014 | 1,364 | 8,020 | 14,553 | 26,818 |
\u2013\u00a0 subordinated liabilities and preferred securities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 3,256 | 2,344 | 5,600 |
Derivatives | 1,167 | \u2014 | \u2014 | \u2014 | \u2014 | 5 | 1 | 47 | 1,220 |
Debt securities in issue | 1,051 | \u2014 | \u2014 | \u2014 | \u2014 | 8,525 | 29,889 | 28,018 | 67,483 |
Accruals and other financial liabilities | 1,778 | 730 | 1,612 | 68 | 12 | \u2014 | \u2014 | 40 | 4,240 |
Subordinated liabilities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 3,809 | 13,250 | 17,059 |
Total financial liabilities at 31\u00a0Dec 2021 | 4,393 | 3,325 | 1,612 | 68 | 12 | 9,894 | 44,975 | 58,252 | 122,531 |
Non-financial liabilities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 311 | 311 |
Total liabilities at 31 Dec 2021 | 4,393 | 3,325 | 1,612 | 68 | 12 | 9,894 | 44,975 | 58,563 | 122,842 |
Cash flows payable by HSBC Holdings under financial liabilities by remaining contractual maturities | ||||||
Due not more than 1 month | Due over 1 month but not more than 3 months | Due over 3 months but not more than 1 year | Due over 1 year but not more than 5 years | Due over 5 years | Total | |
$m | $m | $m | $m | $m | $m | |
Amounts owed to HSBC undertakings | 48 | 266 | \u2014 | \u2014 | \u2014 | 314 |
Financial liabilities designated at fair value | 11 | 72 | 1,139 | 22,921 | 19,196 | 43,339 |
Derivatives | 1,182 | 177 | 1,089 | 4,231 | 1,321 | 8,000 |
Debt securities in issue | \u2014 | 544 | 4,899 | 44,608 | 32,540 | 82,591 |
Subordinated liabilities | 46 | 161 | 1,068 | 8,262 | 27,045 | 36,582 |
Other financial liabilities | 721 | 458 | 745 | 14 | 31 | 1,969 |
2,008 | 1,678 | 8,940 | 80,036 | 80,133 | 172,795 | |
Loan commitments | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Financial guarantees1 | 17,707 | \u2014 | \u2014 | \u2014 | \u2014 | 17,707 |
At 31 Dec 2022 | 19,715 | 1,678 | 8,940 | 80,036 | 80,133 | 190,502 |
Amounts owed to HSBC undertakings | \u2014 | 111 | \u2014 | \u2014 | \u2014 | 111 |
Financial liabilities designated at fair value | 473 | 2,611 | 621 | 15,017 | 17,557 | 36,279 |
Derivatives | 1,223 | 9 | 51 | 414 | 585 | 2,282 |
Debt securities in issue | 1,196 | 276 | 1,286 | 43,360 | 30,800 | 76,918 |
Subordinated liabilities | 81 | 155 | 722 | 7,222 | 20,777 | 28,957 |
Other financial liabilities | 1,778 | 730 | 1,692 | \u2014 | 40 | 4,240 |
4,751 | 3,892 | 4,372 | 66,013 | 69,759 | 148,787 | |
Loan commitments | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Financial guarantees1 | 13,746 | \u2014 | \u2014 | \u2014 | \u2014 | 13,746 |
At 31 Dec 2021 | 18,497 | 3,892 | 4,372 | 66,013 | 69,759 | 162,533 |
31 | Offsetting of financial assets and financial liabilities |
Offsetting of financial assets and financial liabilities | ||||||||
Amounts subject to enforceable netting arrangements | Amounts not subject to enforceable netting arrangements2 | Total | ||||||
Amounts not set off in the balance sheet | ||||||||
Gross amounts | Amounts offset | Net amounts in the balance sheet | Financial instruments, including non-cash collateral1 | Cash collateral | Net amount | |||
$m | $m | $m | $m | $m | $m | $m | $m | |
Financial assets | ||||||||
Derivatives (Note 15)3 | 419,006 | (140,987) | 278,019 | (236,373) | (36,486) | 5,160 | 6,127 | 284,146 |
Reverse repos, stock borrowing and similar agreements classified as:4 | ||||||||
\u2013\u00a0 trading assets | 24,372 | (236) | 24,136 | (24,106) | (29) | 1 | 1,367 | 25,503 |
\u2013\u00a0 non-trading assets | 335,193 | (102,888) | 232,305 | (231,432) | (449) | 424 | 21,689 | 253,994 |
Loans and advances to customers5 | 28,337 | (12,384) | 15,953 | (13,166) | \u2014 | 2,787 | 267 | 16,220 |
At 31 Dec 2022 | 806,908 | (256,495) | 550,413 | (505,077) | (36,964) | 8,372 | 29,450 | 579,863 |
Derivatives (Note 15)3 | 244,694 | (53,378) | 191,316 | (151,304) | (36,581) | 3,431 | 5,566 | 196,882 |
Reverse repos, stock borrowing and similar agreements classified as:4 | ||||||||
\u2013\u00a0 trading assets | 21,568 | (222) | 21,346 | (21,272) | (71) | 3 | 1,729 | 23,075 |
\u2013\u00a0 non-trading assets | 353,066 | (136,932) | 216,134 | (215,769) | (165) | 200 | 25,731 | 241,865 |
Loans and advances to customers5 | 27,045 | (10,919) | 16,126 | (13,065) | \u2014 | 3,061 | 327 | 16,453 |
At 31 Dec 2021 | 646,373 | (201,451) | 444,922 | (401,410) | (36,817) | 6,695 | 33,353 | 478,275 |
Financial liabilities | ||||||||
Derivatives (Note 15)3 | 419,994 | (140,987) | 279,007 | (239,235) | (29,276) | 10,496 | 6,757 | 285,764 |
Repos, stock lending and similar agreements classified as:4 | ||||||||
\u2013\u00a0 trading liabilities | 20,027 | (236) | 19,791 | (19,790) | \u2014 | 1 | 4 | 19,795 |
\u2013\u00a0 non-trading liabilities | 206,827 | (102,888) | 103,939 | (103,296) | (249) | 394 | 23,808 | 127,747 |
Customer accounts6 | 37,164 | (12,384) | 24,780 | (13,166) | \u2014 | 11,614 | 14 | 24,794 |
At 31 Dec 2022 | 684,012 | (256,495) | 427,517 | (375,487) | (29,525) | 22,505 | 30,583 | 458,100 |
Derivatives (Note 15)3 | 239,597 | (53,378) | 186,219 | (163,359) | (18,225) | 4,635 | 4,845 | 191,064 |
Repos, stock lending and similar agreements classified as:4 | ||||||||
\u2013\u00a0 trading liabilities | 13,540 | (222) | 13,318 | (13,318) | \u2014 | \u2014 | 17 | 13,335 |
\u2013\u00a0 non-trading liabilities | 235,042 | (136,932) | 98,110 | (97,816) | (203) | 91 | 28,560 | 126,670 |
Customer accounts6 | 40,875 | (10,919) | 29,956 | (13,065) | \u2014 | 16,891 | 17 | 29,973 |
At 31 Dec 2021 | 529,054 | (201,451) | 327,603 | (287,558) | (18,428) | 21,617 | 33,439 | 361,042 |
32 | Called up share capital and other equity instruments |
HSBC Holdings ordinary shares of $0.50 each, issued and fully paid | ||||
2022 | 2021 | |||
Number | $m | Number | $m | |
At 1 Jan | 20,631,520,439 | 10,316 | 20,693,621,100 | 10,347 |
Shares issued under HSBC employee share plans | 10,226,221 | 5 | 58,266,053 | 29 |
Shares issued in lieu of dividends | \u2014 | \u2014 | \u2014 | \u2014 |
Less: Shares repurchased and cancelled | 348,139,250 | 174 | 120,366,714 | 60 |
At 31 Dec1 | 20,293,607,410 | 10,147 | 20,631,520,439 | 10,316 |
Total called up share capital and share premium | ||
2022 | 2021 | |
$m | $m | |
At 31 Dec | 24,811 | 24,918 |
HSBC\u2019s additional tier 1 capital \u2013 contingent convertible securities in issue which are accounted for in equity | ||||
First call date | 2022 | 2021 | ||
$m | $m | |||
$2,250m | 6.375% perpetual subordinated contingent convertible securities | Sep 2024 | 2,250 | 2,250 |
$2,450m | 6.375% perpetual subordinated contingent convertible securities | Mar 2025 | 2,450 | 2,450 |
$3,000m | 6.000% perpetual subordinated contingent convertible securities | May 2027 | 3,000 | 3,000 |
$2,350m | 6.250% perpetual subordinated contingent convertible securities1 | Mar 2023 | 2,350 | 2,350 |
$1,800m | 6.500% perpetual subordinated contingent convertible securities | Mar 2028 | 1,800 | 1,800 |
$1,500m | 4.600% perpetual subordinated contingent convertible securities2 | Dec 2030 | 1,500 | 1,500 |
$1,000m | 4.000% perpetual subordinated contingent convertible securities3 | Mar 2026 | 1,000 | 1,000 |
$1,000m | 4.700% perpetual subordinated contingent convertible securities4 | Mar 2031 | 1,000 | 1,000 |
\u20ac1,500m | 5.250% perpetual subordinated contingent convertible securities5 | Sep 2022 | \u2014 | 1,945 |
\u20ac1,000m | 6.000% perpetual subordinated contingent convertible securities | Sep 2023 | 1,123 | 1,123 |
\u20ac1,250m | 4.750% perpetual subordinated contingent convertible securities | Jul 2029 | 1,422 | 1,422 |
\u00a31,000 | 5.875% perpetual subordinated contingent convertible securities | Sep 2026 | 1,301 | 1,301 |
SGD1,000m | 4.700% perpetual subordinated contingent convertible securities6 | Jun 2022 | \u2014 | 723 |
SGD750m | 5.000% perpetual subordinated contingent convertible securities | Sep 2023 | 550 | 550 |
At 31 Dec | 19,746 | 22,414 |
Aggregate options outstanding under these plans | |||||
31 Dec 2022 | 31 Dec 2021 | ||||
Number of HSBC Holdings ordinary shares | Usual period of exercise | Exercise price | Number of HSBC Holdings ordinary shares | Usual period of exercise | Exercise price |
115,650,723 | 2021 to 2028 | \u00a32.6270\u2013\u00a35.9640 | 123,196,850 | 2020 to 2027 | \u00a32.6270\u20135.9640 |
33 | Contingent liabilities, contractual commitments and guarantees |
HSBC | HSBC Holdings1 | |||
2022 | 2021 | 2022 | 2021 | |
$m | $m | $m | $m | |
Guarantees and other contingent liabilities: | ||||
\u2013\u00a0 financial guarantees | 18,783 | 27,795 | 17,707 | 13,746 |
\u2013\u00a0 performance and other guarantees | 88,240 | 85,534 | \u2014 | \u2014 |
\u2013\u00a0 other contingent liabilities | 676 | 858 | 90 | 133 |
At 31 Dec | 107,699 | 114,187 | 17,797 | 13,879 |
Commitments:2 | ||||
\u2013\u00a0 documentary credits and short-term trade-related transactions | 8,241 | 8,827 | \u2014 | \u2014 |
\u2013\u00a0 forward asset purchases and forward deposits placed | 50,852 | 47,184 | \u2014 | \u2014 |
\u2013\u00a0 standby facilities, credit lines and other commitments to lend | 768,761 | 759,463 | \u2014 | \u2014 |
At 31 Dec | 827,854 | 815,474 | \u2014 | \u2014 |
Shareholdings, options and other securities of Key Management Personnel | ||
2022 | 2021 | |
(000s) | (000s) | |
Number of options held over HSBC Holdings ordinary shares under employee share plans | 35 | 35 |
Number of HSBC Holdings ordinary shares held beneficially and non-beneficially | 18,185 | 13,529 |
Number of other HSBC securities held | 228 | 228 |
At 31 Dec | 18,448 | 13,792 |
Advances and credits, guarantees and deposit balances during the year with Key Management Personnel | ||||
2022 | 2021 | |||
Balance at 31\u00a0Dec | Highest amounts outstanding during year | Balance at 31 Dec | Highest amounts outstanding during year | |
$m | $m | $m | $m | |
Key Management Personnel | ||||
Advances and credits1 | 16 | 25 | 373 | 401 |
Guarantees | \u2014 | \u2014 | 25 | 45 |
Deposits | 53 | 123 | 284 | 3,190 |
Transactions and balances during the year with associates and joint ventures | ||||
2022 | 2021 | |||
Highest balance during the year | Balance at 31 Dec | Highest balance during the year | Balance at 31 Dec | |
$m | $m | $m | $m | |
Unsubordinated amounts due from joint ventures | 140 | 90 | 160 | 96 |
Unsubordinated amounts due from associates | 7,378 | 6,594 | 4,527 | 4,188 |
Amounts due to associates | 2,548 | 1,295 | 3,397 | 1,070 |
Amounts due to joint ventures | 57 | 53 | 102 | 44 |
Fair value of derivative assets with associates | 1,205 | 841 | 936 | 465 |
Fair value of derivative liabilities with associates | 4,319 | 3,648 | 696 | 555 |
Guarantees and commitments | 513 | 293 | 1,016 | 347 |
Transactions and balances during the year with subsidiaries | ||||
2022 | 2021 | |||
Highest balance during the year | Balance at 31 Dec | Highest balance during the year | Balance at 31 Dec | |
$m | $m | $m | $m | |
Assets | ||||
Cash and balances with HSBC undertakings | 7,421 | 3,210 | 3,397 | 2,590 |
Financial assets with HSBC undertakings designated and otherwise mandatorily measured at fair value | 52,322 | 52,322 | 64,686 | 51,408 |
Derivatives | 5,380 | 3,801 | 4,187 | 2,811 |
Loans and advances to HSBC undertakings | 26,765 | 26,765 | 27,142 | 25,108 |
Prepayments, accrued income and other assets | 4,893 | 4,803 | 1,555 | 1,135 |
Investments in subsidiaries | 167,542 | 167,542 | 163,211 | 163,211 |
Total related party assets at 31 Dec | 264,323 | 258,443 | 264,178 | 246,263 |
Liabilities | ||||
Amounts owed to HSBC undertakings | 314 | 314 | 340 | 111 |
Derivatives | 8,318 | 6,922 | 2,872 | 1,220 |
Accruals, deferred income and other liabilities | 1,375 | 429 | 2,036 | 1,732 |
Subordinated liabilities | 900 | 900 | 900 | 900 |
Total related party liabilities at 31 Dec | 10,907 | 8,565 | 6,148 | 3,963 |
Guarantees and commitments | 17,707 | 17,707 | 16,477 | 13,746 |
HSBC Bank (General Partner) Limited | 100.00 | 79 | |
HSBC Bank (Mauritius) Limited | 100.00 | 58 | |
HSBC Bank (RR) (Limited Liability Company) | N/A | 0, 13, 59 | |
HSBC Bank (Singapore) Limited | 100.00 | 20 | |
HSBC Bank (Taiwan) Limited | 100.00 | 60 | |
HSBC Bank (Uruguay) S.A. | 100.00 | 61 | |
HSBC Bank (Vietnam) Ltd. | 100.00 | 62 | |
HSBC Bank A.S. | 100.00 | (99.99) | 63 |
HSBC Bank Argentina S.A. | 99.99 | 51 | |
HSBC Bank Armenia cjsc | 100.00 | 64 | |
HSBC Bank Australia Limited | 100.00 | 55 | |
HSBC Bank Bermuda Limited | 100.00 | 23 | |
HSBC Bank Canada | 100.00 | 65 | |
HSBC Bank Capital Funding (Sterling 1) LP | N/A | 0, 79 | |
HSBC Bank Capital Funding (Sterling 2) LP | N/A | 0, 79 | |
HSBC Bank Egypt S.A.E | 94.54 | 66 | |
HSBC Bank Malaysia Berhad | 100.00 | 49 | |
HSBC Bank Malta p.l.c. | 70.03 | 67 | |
HSBC Bank Middle East Limited | 100.00 | 68 | |
HSBC Bank Middle East Limited Representative Office Morocco SARL (In Liquidation) | 100.00 | 69 | |
HSBC Bank Oman S.A.O.G. | 51.00 | 70 | |
HSBC Bank Pension Trust (UK) Limited | 100.00 | 18 | |
HSBC Bank plc | 100.00 | 2, 18 | |
HSBC Bank USA, National Association | 100.00 | 71 | |
HSBC Branch Nominee (UK) Limited | 100.00 | 17 | |
HSBC Brasil Holding S.A. | 100.00 | 21 | |
HSBC Broking Forex (Asia) Limited | 100.00 | 46 | |
HSBC Broking Futures (Asia) Limited | 100.00 | 46 | |
HSBC Broking Futures (Hong Kong) Limited | 100.00 | 46 | |
HSBC Broking Securities (Asia) Limited | 100.00 | 46 | |
HSBC Broking Securities (Hong Kong) Limited | 100.00 | 46 | |
HSBC Broking Services (Asia) Limited | 100.00 | 46 | |
HSBC Canadian Covered Bond (Legislative) GP Inc. | 100.00 | 72 | |
HSBC Canadian Covered Bond (Legislative) Guarantor Limited Partnership | N/A | 0, 72 | |
HSBC Capital (USA), Inc. | 100.00 | 15 | |
HSBC Capital Funding (Dollar 1) L.P. | N/A | 79 | |
HSBC Card Services Inc. | 100.00 | 15 | |
HSBC Casa de Bolsa, S.A. de C.V., Grupo | 100.00 | (99.99) | 16 |
HSBC Cayman Limited | 100.00 | 73 | |
HSBC Cayman Services Limited | 100.00 | 73 | |
HSBC City Funding Holdings | 100.00 | 18 | |
HSBC Client Holdings Nominee (UK) Limited | 100.00 | 18 | |
HSBC Client Nominee (Jersey) Limited | 100.00 | 74 | |
HSBC Columbia Funding, LLC | N/A | 0, 15 | |
HSBC Continental Europe | 99.99 | 35 | |
HSBC Corporate Advisory (Malaysia) Sdn Bhd | 100.00 | 49 | |
HSBC Corporate Finance (Hong Kong) Limited | 100.00 | 46 | |
HSBC Corporate Secretary (UK) Limited | 100.00 | 2, 18 | |
HSBC Corporate Trustee Company (UK) Limited | 100.00 | 18 | |
HSBC Custody Nominees (Australia) Limited | 100.00 | 55 | |
HSBC Custody Services (Guernsey) Limited | 100.00 | 22 | |
HSBC Daisy Investments (Mauritius) Limited | 100.00 | 75 | |
HSBC Diversified Loan Fund General Partner Sarl | N/A | 76 | |
HSBC Electronic Data Processing (Guangdong) Limited | 100.00 | 12, 77 | |
HSBC Electronic Data Processing (Malaysia) Sdn Bhd | 100.00 | 78 | |
HSBC Electronic Data Processing (Philippines), Inc. | 99.99 | 79 | |
HSBC Electronic Data Processing India Private Limited | 100.00 | 80 |
HSBC Infrastructure Debt GP 1 S.\u00e0 r.l. | N/A | 0, 93 | |
HSBC Infrastructure Debt GP 2 S.\u00e0 r.l. | N/A | 0, 93 | |
HSBC Infrastructure Limited | 100.00 | 18 | |
HSBC Institutional Trust Services (Asia) | 100.00 | 46 | |
HSBC Institutional Trust Services (Bermuda) Limited | 100.00 | 23 | |
HSBC Institutional Trust Services (Mauritius) Limited | 100.00 | 94 | |
HSBC Institutional Trust Services (Singapore) Limited | 100.00 | 20 | |
HSBC Insurance (Asia) Limited | 100.00 | 95 | |
HSBC Insurance (Asia-Pacific) Holdings Limited | 100.00 | 46 | |
HSBC Insurance (Bermuda) Limited | 100.00 | 23 | |
HSBC Insurance (Singapore) Pte. Limited | 100.00 | 20 | |
HSBC Insurance Agency (USA) Inc. | 100.00 | 91 | |
HSBC Insurance Brokerage Company Limited | 100.00 | 1, 96 | |
HSBC Insurance Brokers Greater China Limited | 100.00 | 1, 46 | |
HSBC Insurance Holdings Limited | 100.00 | 2, 18 | |
HSBC Insurance SAC 1 (Bermuda) Limited | 100.00 | 23 | |
HSBC Insurance SAC 2 (Bermuda) Limited | 100.00 | 1, 23 | |
HSBC Insurance Services Holdings Limited | 100.00 | 18 | |
HSBC International Finance Corporation (Delaware) | 100.00 | 97 | |
HSBC International Trustee (BVI) Limited | 100.00 | 98 | |
HSBC International Trustee (Holdings) Pte. Limited | 100.00 | 20 | |
HSBC International Trustee Limited | 100.00 | 99 | |
HSBC Inversiones S.A. | 100.00 | 56 | |
HSBC InvestDirect (India) Private Limited | 100.00 | 52 | |
HSBC InvestDirect Financial Services (India) Limited | 99.99 | (99.98) | 52 |
HSBC InvestDirect Sales & Marketing (India) Limited | 98.99 | (98.98) | 50 |
HSBC InvestDirect Securities (India) Private Limited | 99.99 | 52 | |
HSBC Investment and Insurance Brokerage, Philippines Inc. | 99.99 | 100 | |
HSBC Investment Bank Holdings B.V. | 100.00 | 18 | |
HSBC Investment Bank Holdings Limited | 100.00 | 18 | |
HSBC Investment Company Limited | 100.00 | 2, 18 | |
HSBC Investment Funds (Canada) Inc. | 100.00 | 65 | |
HSBC Investment Funds (Hong Kong) Limited | 100.00 | 46 | |
HSBC Investment Funds (Luxembourg) SA | 100.00 | 101 | |
HSBC Invoice Finance (UK) Limited | 100.00 | 102 | |
HSBC Issuer Services Common Depositary Nominee (UK) Limited | 100.00 | 18 | |
HSBC Issuer Services Depositary Nominee (UK) Limited | 100.00 | 18 | |
HSBC Latin America B.V. | 100.00 | 18 | |
HSBC Latin America Holdings (UK) Limited | 100.00 | 2, 18 | |
HSBC Leasing (Asia) Limited | 100.00 | 46 | |
HSBC Life (Bermuda) Limited | 100.00 | 23 | |
HSBC Life (Cornell Centre) Limited | 100.00 | 95 | |
HSBC Life (Edwick Centre) Limited | 100.00 | 95 | |
HSBC Life (International) Limited | 100.00 | 23 | |
HSBC Life (Property) Limited | 100.00 | 95 | |
HSBC Life (Tsing Yi Industrial) Limited | 100.00 | 95 | |
HSBC Life (UK) Limited | 100.00 | 18 | |
HSBC Life (Workshop) Limited | 100.00 | 1, 95 | |
HSBC Life Assurance (Malta) Limited | 100.00 | (70.03) | 88 |
HSBC Life Insurance Company Limited | 100.00 | 12, 57 | |
HSBC LU Nominees Limited | 100.00 | 18 | |
HSBC Management (Guernsey) Limited | 100.00 | 103 | |
HSBC Markets (USA) Inc. | 100.00 | 15 |
HSBC Marking Name Nominee (UK) Limited | 100.00 | 18 | |
HSBC Master Trust Trustee Limited | 100.00 | 18 | |
HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo Financiero HSBC | 99.99 | 16 | |
HSBC Middle East Asset Co. LLC | 100.00 | 104 | |
HSBC Middle East Holdings B.V. | 100.00 | 2, 68 | |
HSBC Middle East Leasing Partnership | N/A | 0, 68 | |
HSBC Middle East Securities L.L.C | 100.00 | 105 | |
HSBC Mortgage Corporation (Canada) | 100.00 | 65 | |
HSBC Mortgage Corporation (USA) | 100.00 | 15 | |
HSBC Nominees (Asing) Sdn Bhd | 100.00 | 49 | |
HSBC Nominees (Hong Kong) Limited | 100.00 | 46 | |
HSBC Nominees (New Zealand) Limited | 100.00 | 106 | |
HSBC Nominees (Tempatan) Sdn Bhd | 100.00 | 49 | |
HSBC North America Holdings Inc. | 100.00 | 3, 15 | |
HSBC Operational Services GmbH | 80.00 | 87 | |
HSBC Overseas Holdings (UK) Limited | 100.00 | 2, 18 | |
HSBC Overseas Investments Corporation (New York) | 100.00 | 107 | |
HSBC Overseas Nominee (UK) Limited | 100.00 | 18 | |
HSBC Participaciones (Argentina) S.A. | 100.00 | 51 | |
HSBC PB Corporate Services 1 Limited | 100.00 | 74 | |
HSBC PB Services (Suisse) SA | 100.00 | 108 | |
HSBC Pension Trust (Ireland) DAC | 100.00 | 109 | |
HSBC Pensiones, S.A. (In Liquidation) | 100.00 | 16 | |
HSBC PI Holdings (Mauritius) Limited | 100.00 | 94 | |
HSBC Portfoy Yonetimi A.S. | 100.00 | 63 | |
HSBC Preferential LP (UK) | 100.00 | 18 | |
HSBC Private Bank (Luxembourg) S.A. | 100.00 | 101 | |
HSBC Private Bank (Suisse) SA | 100.00 | 108 | |
HSBC Private Bank (UK) Limited | 100.00 | 18 | |
HSBC Private Banking Holdings (Suisse) SA | 100.00 | 108 | |
HSBC Private Banking Nominee 3 (Jersey) Limited | 100.00 | 74 | |
HSBC Private Equity Investments (UK) Limited | 100.00 | 18 | |
HSBC Private Investment Counsel (Canada) Inc. | 100.00 | 65 | |
HSBC Private Markets Management SARL | N/A | 0, 110 | |
HSBC Private Trustee (Hong Kong) Limited | 100.00 | 46 | |
HSBC Professional Services (India) Private Limited | 100.00 | 50 | |
HSBC Property (UK) Limited | 100.00 | 18 | |
HSBC Property Funds (Holding) Limited | 100.00 | 18 | |
HSBC Provident Fund Trustee (Hong Kong) Limited | 100.00 | 46 | |
HSBC Qianhai Securities Limited | 90.00 | 12, 111 | |
HSBC Real Estate Leasing (France) | 100.00 | (99.99) | 35 |
HSBC REGIO Fund General Partner S.\u00e0 r.l. | 100.00 | 1, 93 | |
HSBC REIM (France) | 100.00 | (99.99) | 54 |
HSBC Retirement Benefits Trustee (UK) Limited | 100.00 | 1, 2, 18 | |
HSBC Retirement Services Limited | 100.00 | 1, 18 | |
HSBC Saudi Arabia, Closed Joint Stock Company | 66.19 | 112 | |
HSBC Savings Bank (Philippines) Inc. | 99.99 | 113 | |
HSBC Securities (Canada) Inc. | 100.00 | 83 | |
HSBC Securities (Egypt) S.A.E. (In Liquidation) | 100.00 | (94.65) | 66 |
HSBC Securities (Japan) Co., Ltd. | 100.00 | 1, 53 | |
HSBC Securities (Japan) Limited | 100.00 | 18 | |
HSBC Securities (Singapore) Pte Limited | 100.00 | 20 | |
HSBC Securities (South Africa) (Pty) Limited | 100.00 | 114 | |
HSBC Securities (Taiwan) Corporation Limited | 100.00 | 60 | |
HSBC Securities (USA) Inc. | 100.00 | 15 |
HSBC Securities and Capital Markets (India) Private Limited | 99.99 | 50 | |
HSBC Securities Brokers (Asia) Limited | 100.00 | 46 | |
HSBC Securities Investments (Asia) Limited | 100.00 | 46 | |
HSBC Securities Services (Bermuda) Limited | 100.00 | 23 | |
HSBC Securities Services (Guernsey) Limited | 100.00 | 22 | |
HSBC Securities Services (Ireland) DAC | 100.00 | 109 | |
HSBC Securities Services (Luxembourg) S.A. | 100.00 | 101 | |
HSBC Securities Services Holdings (Ireland) DAC | 100.00 | 109 | |
HSBC Securities Services Nominees Limited | 100.00 | 1, 46 | |
HSBC Seguros de Retiro (Argentina) S.A. | 100.00 | (99.99) | 51 |
HSBC Seguros de Vida (Argentina) S.A. | 100.00 | (99.99) | 51 |
HSBC Seguros, S.A de C.V., Grupo Financiero HSBC | 100.00 | (99.99) | 16 |
HSBC Service Company Germany GmbH | 100.00 | (99.99) | 1, 87 |
HSBC Service Delivery (Polska) Sp. z o.o. | 100.00 | 115 | |
HSBC Services (France) | 100.00 | (99.99) | 35 |
HSBC Services Japan Limited | 100.00 | 92 | |
HSBC Services USA Inc. | 100.00 | 116 | |
HSBC Servicios Financieros, S.A. de C.V | 100.00 | (99.99) | 16 |
HSBC Servicios, S.A. DE C.V., Grupo Financiero HSBC | 100.00 | (99.99) | 16 |
HSBC SFH (France) | 100.00 | (99.99) | 4, 54 |
HSBC SFT (C.I.) Limited | 100.00 | 22 | |
HSBC Software Development (Guangdong) Limited | 100.00 | 117 | |
HSBC Software Development (India) Private Limited | 100.00 | 118 | |
HSBC Software Development (Malaysia) Sdn Bhd | 100.00 | 78 | |
HSBC Specialist Investments Limited | 100.00 | 18 | |
HSBC Technology & Services (China) Limited | 100.00 | 57 | |
HSBC Technology & Services (USA) Inc. | 100.00 | 15 | |
HSBC Titan GmbH & Co. KG | 100.00 | (99.99) | 1, 87 |
HSBC Transaction Services GmbH | 100.00 | (99.99) | 6, 87 |
HSBC Trinkaus & Burkhardt (International) S.A. | 100.00 | (99.99) | 119 |
HSBC Trinkaus & Burkhardt Gesellschaft fur Bankbeteiligungen mbH | 100.00 | (99.99) | 87 |
HSBC Trinkhaus & Burkhardt GmbH | 100.00 | (99.99) | 87 |
HSBC Trinkaus Europa Immobilien-Fonds Nr. 5 GmbH | 100.00 | (99.99) | 87 |
HSBC Trinkaus Family Office GmbH | 100.00 | (99.99) | 6, 87 |
HSBC Trinkaus Real Estate GmbH | 100.00 | (99.99) | 6, 87 |
HSBC Trust Company (Canada) | 100.00 | 65 | |
HSBC Trust Company (Delaware), National Association | 100.00 | 97 | |
HSBC Trust Company (UK) Limited | 100.00 | 18 | |
HSBC Trustee (C.I.) Limited | 100.00 | 74 | |
HSBC Trustee (Cayman) Limited | 100.00 | 120 | |
HSBC Trustee (Guernsey) Limited | 100.00 | 22 | |
HSBC Trustee (Hong Kong) Limited | 100.00 | 46 | |
HSBC Trustee (Singapore) Limited | 100.00 | 20 | |
HSBC UK Bank plc | 100.00 | 2, 17 | |
HSBC UK Client Nominee Limited | 100.00 | 17 | |
HSBC UK Covered Bonds LLP | N/A | 0, 17 | |
HSBC UK Holdings Limited | 100.00 | 2, 18 | |
HSBC USA Inc. | 100.00 | 107 | |
HSBC Ventures USA Inc. | 100.00 | 15 | |
HSBC Violet Investments (Mauritius) Limited | 100.00 | 75 | |
HSBC Wealth Client Nominee Limited | 100.00 | 1, 17 | |
HSBC Yatirim Menkul Degerler A.S. | 100.00 | 63 | |
HSI Asset Securitization Corporation | 100.00 | 15 | |
HSI International Limited | 100.00 | (62.14) | 38 |
HSIL Investments Limited | 100.00 | 18 |
St Cross Trustees Limited | 100.00 | 17 | |
Sun Hung Kai Development (Lujiazui III) Limited | 100.00 | 12, 57 | |
Swan National Limited | 100.00 | 18 | |
The Hongkong and Shanghai Banking Corporation Limited | 100.00 | 5, 46 | |
The Venture Catalysts Limited | 100.00 | 18 | |
Tooley Street View Limited | 100.00 | 2, 18 | |
Tower Investment Management | 100.00 | 130 | |
Trinkaus Australien Immobilien Fonds Nr. 1 Brisbane GmbH & Co. KG | 100.00 | (99.99) | 87 |
Trinkaus Australien Immobilien-Fonds Nr. 1 Treuhand-GmbH | 100.00 | (99.99) | 6, 87 |
Trinkaus Europa Immobilien-Fonds Nr.3 Objekt Utrecht Verwaltungs-GmbH | 100.00 | (99.99) | 87 |
Trinkaus Immobilien-Fonds Geschaeftsfuehrungs-GmbH | 100.00 | (99.99) | 6, 87 |
Trinkaus Immobilien-Fonds Verwaltungs- GmbH | 100.00 | (99.99) | 6, 87 |
Trinkaus Private Equity Management GmbH | 100.00 | (99.99) | 87 |
Trinkaus Private Equity Verwaltungs GmbH | 100.00 | (99.99) | 6, 87 |
Tropical Nominees Limited | 100.00 | 73 | |
Turnsonic (Nominees) Limited | 100.00 | 17 | |
Valeurs Mobili\u00e8res Elys\u00e9es | 100.00 | (99.99) | 35 |
Wardley Limited | 100.00 | 46 | |
Wayfoong Nominees Limited | 100.00 | 46 | |
Westminster House, LLC | N/A | 0, 15 | |
Woodex Limited | 100.00 | 23 | |
Yan Nin Development Company Limited | 100.00 | (62.14) | 38 |
Joint ventures | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
Climate Asset Management Limited | 40.00 | 1, 131 | |
Global Payments Technology Mexico S.A. De C.V | 50.00 | 16 | |
HCM Holdings Limited (In Liquidation) | 50.99 | 45 | |
Pentagreen Capital Pte. Ltd | 50.00 | 1, 132 | |
ProServe Bermuda Limited | 50.00 | 133 | |
The London Silver Market Fixing Limited | N/A | 0 1, 134 | |
Vaultex UK Limited | 50.00 | 135 |
Associates | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
Bank of Communications Co., Ltd. | 19.03 | 136 | |
Barrowgate Limited | 15.31 | 137 | |
BGF Group PLC | 24.61 | 138 | |
Bud Financial Limited | 5.36 | 1, 139 | |
Canara HSBC Life Insurance Company Limited | 26.00 | 140 | |
Contour Pte Ltd | 12.65 | 1, 141 | |
Divido Financial Services Limited | 5.56 | 1, 142 | |
Electronic Payment Services Company (Hong Kong) Limited | 38.66 | 46 | |
Episode Six Limited | 7.02 | 1, 143 | |
EPS Company (Hong Kong) Limited | 38.66 | 46 | |
EURO Secured Notes Issuer | 16.67 | 144 | |
GZHS Research Co Ltd | 20.50 | 145 | |
HSBC Jintrust Fund Management Company Limited | 49.00 | 57 | |
Liquidity Match LLC | N/A | 0, 1, 146 | |
London Precious Metals Clearing Limited | 30.00 | 1, 147 | |
MENA Infrastructure Fund (GP) Ltd | 33.33 | 145 | |
Monese Ltd | 5.39 | 1, 149 | |
Quantexa Ltd | 10.10 | 131 | |
Services Epargne Entreprise | 14.18 | 150 | |
The London Gold Market Fixing Limited | 25.00 | 134 | |
The Saudi British Bank | 31.00 | 152 | |
Threadneedle Software Holdings Limited | 6.56 | 1, 153 | |
Trade Information Network Limited | 16.67 | 1, 154 | |
Trinkaus Europa Immobilien-Fonds Nr. 7 Frankfurt Mertonviertel KG | N/A | 0, 87 | |
Vizolution Limited | 17.95 | 1, 155 | |
We Trade Innovation Designated Activity Company | 9.88 | 1, 156 |
Registered offices | |
15 | c/o The Corporation Trust Company 1209 Orange Street, Wilmington, Delaware, United States of America, 19801 |
16 | Paseo de la Reforma 347 Col. Cuauhtemoc, Mexico, 06500 |
17 | 1 Centenary Square, Birmingham, United Kingdom, B1 1HQ |
18 | 8 Canada Square, London, United Kingdom, E14 5HQ |
19 | 5 Donegal Square South, Northern Ireland, Belfast, United Kingdom, BT1 5JP |
20 | 10 Marina Boulevard #48-01 Marina Bay Financial Centre, Singapore, 018983 |
21 | 1909 Avenida Presidente Juscelino Kubitschek, 19\u00b0 andar, Torre Norte, S\u00e3o Paulo Corporate Towers, S\u00e3o Paulo, Brazil, 04551-903 |
22 | Arnold House, St Julians Avenue, St Peter Port, Guernsey, GY1 3NF |
23 | 37 Front Street, Hamilton, Bermuda, HM 11 |
24 | First Floor, Xinhua Bookstore Xindong Road (SE of roundabout), Miyun District, Beijing, China |
25 | Oak House Hirzel Street, St Peter Port, Guernsey, GY1 2NP |
26 | 2929 Walden Avenue, Depew, New York, United States of |
27 | Corporation Service Company 251 Little Falls Drive, Wilmington, Delaware, United States of America, 19808 |
28 | Solidere - Rue Saad Zaghloul Immeuble - 170 Marfaa, P.O. Box 17 5476 Mar Michael, Beyrouth, Lebanon, 11042040 |
29 | No 1, Bei Huan East Road Dazu County, Chongqing, China |
30 | No 107 Ping Du Avenue (E), Sanhe Town, Fengdu County, Chongqing, China |
31 | No. 3, 5, 7, Haitang Erzhi Road Changyuan, Rongchang, Chongqing, China, 402460 |
32 | c/o Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town, Grand Cayman, Cayman Islands, KY1-9005 |
33 | First & Second Floor, No.3 Nanshan Road, Pulandian , Dalian, Liaoning, China |
34 | 160 Mine Lake CT, Ste 200, Raleigh, North Carolina, United States Of America, 27615-6417 |
35 | 38 avenue Kl\u00e9ber, Paris, France, 75116 |
36 | MMG Tower, 23 floor Ave. Paseo del Mar Urbanizacion Costa del Este, Panama |
73 | P.O. Box 1109, Strathvale House, Ground Floor, 90 North Church Street , George Town, Grand Cayman, Cayman Islands, KY1-1102 |
74 | HSBC House Esplanade, St. Helier, Jersey, JE1 1HS |
75 | c/o Rogers Capital St. Louis Business Centre, Cnr Desroches & St Louis Streets, Port Louis, Mauritius |
76 | 49 avenue J.F. Kennedy, Luxembourg, 1855 |
77 | 4-17/F, Office Tower 2 TaiKoo Hui, No. 381 Tian He Road, Tian He District, Guangzhou, Guangdong, China |
78 | Suite 1005, 10th Floor, Wisma Hamzah Kwong, Hing No. 1, Leboh Ampang, Kuala Lumpur, Malaysia, 50100 |
79 | Filinvest One Building, Northgate Cyberzone, Filinvest Corporate City, Alabang, Muntinlupa City, Philippines |
80 | HSBC House, Plot No.8, Survey No.64 (Part), Hightec City Layout Madhapur, Hyderabad, India, 500081 |
81 | 439, Sri Jayawardenapura Mawatha Welikada, Rajagiriya, Colombo, Sri Lanka |
82 | Smart Village 28th Km Cairo- Alexandria Desert Road Building, Cairo, Egypt |
83 | 16 York Street, 6th Floor, Toronto, Ontario, Canada, M5J 0E6 |
84 | Centre Ville 1341 Building, 4th Floor, Patriarche Howayek Street (facing Beirut Souks), PO Box Riad El Solh, Lebanon, 9597 |
85 | World Trade Center, Montevideo Avenida Luis Alberto de Herrera 1248, Torre 1, Piso 15, Oficina 1502, Montevideo, Uruguay, CP 11300 |
86 | Room 655, Building A, No. 888, Huan Hu West Two Road, Lin Gang New Area of Shanghai (Pilot) Free Trade Zone, Shanghai, China |
87 | Hansaallee 3, D\u00fcsseldorf, Germany, 40549 |
88 | 80 Mill Street, Qormi, Malta, QRM 3101 |
89 | 26 Gartenstrasse, Zurich, Switzerland, 8002 |
90 | 24th Floor, 97-99, Sec.2, Tunhwa S. Road, Taipei, Taiwan |
91 | 452 Fifth Avenue, New York, United States of America, NY10018 |
92 | Mareva House, 4 George Street, Nassau, Bahamas |
93 | 4 rue Peternelchen, Howald, Luxembourg, 2370 |
94 | 6th floor HSBC Centre 18, Cybercity, Ebene, Mauritius, 72201 |
95 | 18th Floor, Tower 1, HSBC Centre, 1 Sham Mong Road, Kowloon, Hong Kong |
96 | Unit 201 Floor 2, Building 3, No. 12, Anxiang Street, Shunyi District, Beijing, China |
97 | 300 Delaware Avenue, Suite 1401, Wilmington, Delaware, United States of America, 19801 |
98 | Woodbourne Hall, Road Town, Tortola, British Virgin Islands, P.O. Box 916 |
99 | PO Box 71, Craigmuir Chambers, Road Town Tortola, British Virgin Islands |
100 | 5/F HSBC Centre 3058 Fifth Ave West, Bonifacio Global City, Taguig City, Philippines |
101 | 18 Boulevard de Kockelscheuer, Luxembourg, 1821 |
102 | 21 Farncombe Road Worthing, United Kingdom, BN11 2BW |
103 | Arnold House, St Julians Avenue, St Peter Port, Guernsey, GY1 1WA |
104 | 345-6791, HSBC Tower, Burj Khalifa Community, Dubai, United Arab Emirates |
105 | Office No.16, Owned by HSBC Bank Middle East Limited, Dubai Branch, Bur Dubai, Burj Khalifa, Dubai, United Arab Emirates |
106 | HSBC Tower, Level 21, 188 Quay Street, Auckland, New Zealand, 1010 |
107 | The Corporation Trust Incorporated, 2405 York Road, Suite 201, Lutherville Timonium, Maryland, United States of America, 21093 |
108 | Quai des Bergues 9-17, Geneva, Switzerland, 1201 |
109 | 1 Grand Canal Square, Grand Canal Harbour, Dublin 2, Ireland, D02 P820 |
110 | 5 rue Heienhaff, Senningerberg, Luxembourg, 1736 |
111 | Block 27 A&B, Qianhai Enterprise Dream Park No. 63 Qianwan Yi Road, Shenzhen-Hong Kong Cooperation Zone, Shenzhen, China, 518052 |
112 | HSBC Building 7267 Olaya - Al Murrooj, Riyadh, Saudi Arabia, 12283 - 2255 |
113 | Unit 1 GF The Commerical Complex Madrigal Avenue, Ayala Alabang Village, Muntinlupa City, Philippines, 1780 |
114 | 1 Mutual Place, 107 Rivonia Road, Sandton, Gauteng, South Africa, 2196 |
115 | Kapelanka 42A , Krakow, Poland, 30-347 |
116 | C T Corporation System 820 Bear Tavern Road, West Trenton, New Jersey, United States of America, 08628 |
117 | L22, Office Tower 2, Taikoo Hui, 381 Tianhe Road, Tianhe District, Guangzhou, Guangdong, China |
118 | Business Bay, Wing 2, Tower B, Survey no 103, Hissa no. 2, Airport road, Yerwada, Pune, India, 411006 |
119 | 16 Boulevard d\u2019Avranches, Luxembourg, Luxembourg, L-1160 |
120 | P.O. Box 309 Ugland House, Grand Cayman, Cayman Islands, KY1-1104 |
121 | No. 56 Yu Rong Street, Macheng, China, 438300 |
122 | No. 205 Lie Shan Road Suizhou, Hubei, China |
123 | Building 3, Yin Zuo Di Jing Wan Tianmen New City, Tianmen, Hubei Province, China |
124 | RM101, 102 & 106 Sunshine Fairview, Sunshine Garden, Pedestrian Walkway, Pingjiang, China |
125 | Kings Meadow Chester Business Park , Chester, United Kingdom, CH99 9FB |
126 | World Trade Center 1, Jalan Jenderal Sudirman Kavling 29 - 31, Jakarta, Indonesia, 12920 |
127 | No. 198-2 Chengshan Avenue (E), Rongcheng, China, 264300 |
128 | Room 1303-13062 Marine Center Main Tower, 59 Linhai Road, Nanshan District, Shenzhen, China |
129 | Woodbourne Hall, Road Town, Tortola, British Virgin Islands, P.O. Box 3162 |
130 | 25 Main St. P.O. Box 694, Grand Cayman KY1 1107, Cayman Islands, KY1 1107 |
131 | Hill House, 1 Little New Street, London , United Kingdom, EC4A 3TR |
132 | 60B Orchard Road #06-18, The Atrium @Orchard, Singapore, 238891 |
133 | c/o MUFG Fund Services (Bermuda) Limited, Cedar House, 4th Floor North, 41 Cedar Avenue, Hamilton, Bermuda, HM 12 |
134 | c/o Hackwood Secretaries Limited, One Silk Street, London, United Kingdom, EC2Y 8HQ |
135 | All Saints Triangle, Caledonian Road, London, United Kingdom, N19UT |
136 | No.188, Yin Cheng Zhong Road China (Shanghai), Pilot Free Trade Zone, Shanghai, China |
137 | 50/F, Lee Garden One, 33 Hysan Avenue, Hong Kong |
138 | 13-15 York Buildings, London, United Kingdom, WC2N 6JU |
139 | Linen Court, Floor 3, 10 East Road, London, United Kingdom, N1 6AD |
140 | Unit No. 208, 2nd Floor, Kanchenjunga Building 18, Barakhamba Road, New Delhi, India, 110001 |
141 | 50 Raffles Place, #32-01 Singapore Land Tower, Singapore, 048623 |
142 | Office 7, 35-37 Ludgate Hill, London, United Kingdom, EC4M 7JN |
143 | 100 Town Square Place, Suite 201, Jersey City, New Jersey, United States Of America, 07310 |
144 | 7th Floor, 62 Threadneedle Street, London, United Kingdom, EC2R 8HP |
145 | Precinct Building 4, Level 3, Dubai International Financial Centre, Dubai, United Arab Emirates, PO Box 506553 |
146 | 9/F Amtel Building, 148 des Voeux Road Central, Central, Hong Kong |
147 | 3 Avenue de l\u2019Opera , Paris, France, 75001 |
148 | Room 1303, 106 Feng Ze Dong Road, Nansha District, Guangzhou, Guangdong, China |
149 | Eagle House, 163 City Road, London, United Kingdom, EC1V 1NR |
150 | 32 rue du Champ de Tir, Nantes, France, 44300 |
151 | Ernst-Schneider-Platz 1 , Duesseldorf, Germany, 40212 |
152 | Al Amir Abdulaziz Ibn Mossaad Ibn Jalawi Street, Riyadh, Saudi Arabia |
153 | 2nd Floor, Regis House, 45 King William Street, London, United Kingdom, EC4R 9AN |
154 | 3 More London Riverside, London, United Kingdom, SE1 2AQ |
155 | Office Block A, Bay Studios Business Park, Fabian Way, Swansea, Wales, United Kingdom, SA1 8QB |
156 | 10 Earlsfort Terrace, Dublin, Ireland, DO2 T380 |
Impact of transition to IFRS 17, at 1 January 2022 | Insurance manufacturing operations | Group | ||
Assets | Liabilities | Equity | Equity | |
$bn | $bn | $bn | $bn | |
Balance sheet values at 1 January 2022 under IFRS 4 | 144.6 | 127.6 | 17.0 | 206.8 |
Removal of PVIF | (9.5) | \u2014 | (9.5) | (9.5) |
Replacement of IFRS 4 liabilities with IFRS 17 | (0.4) | 7.3 | (7.7) | (8.1) |
Removal of IFRS 4 liabilities and recording of IFRS 17 fulfilment cash | (0.3) | (2.2) | 1.9 | 1.9 |
IFRS 17 contractual service margin | (0.1) | 9.5 | (9.6) | (10.0) |
Remeasurement effect of IFRS 9 re-designations | 4.9 | \u2014 | 4.9 | 4.9 |
Tax effect | 0.6 | (1.6) | 2.2 | 2.2 |
Estimated balance sheet values at 1 January 2022 under IFRS 17 | 140.2 | 133.3 | 6.9 | 196.3 |
Impact of transition to IFRS 17, at 1 January 2022 | Insurance manufacturing operations | Group | ||
Assets | Liabilities | Equity | Equity | |
$bn | $bn | $bn | $bn | |
Balance sheet values at 1 January 2022 under IFRS 4 | 144.6 | 127.6 | 17.0 | 206.8 |
Removal of PVIF | (9.5) | \u2014 | (9.5) | (9.5) |
Replacement of IFRS 4 liabilities with IFRS 17 | (0.4) | 7.3 | (7.7) | (8.1) |
Removal of IFRS 4 liabilities and recording of IFRS 17 fulfilment cash | (0.3) | (2.2) | 1.9 | 1.9 |
IFRS 17 contractual service margin | (0.1) | 9.5 | (9.6) | (10.0) |
Remeasurement effect of IFRS 9 re-designations | 4.9 | \u2014 | 4.9 | 4.9 |
Tax effect | 0.6 | (1.6) | 2.2 | 2.2 |
Estimated balance sheet values at 1 January 2022 under IFRS 17 | 140.2 | 133.3 | 6.9 | 196.3 |
Investments in subsidiaries are tested for impairment when there is an indication that the investment may be impaired, which involves estimations of value in use reflecting management\u2019s best estimate of the future cash flows of the investment and the rates used to discount these cash flows, both of which are subject to uncertain factors as follows: | |
Judgements | Estimates |
\u2022The accuracy of forecast cash flows is subject to a high degree of uncertainty in volatile market conditions. Where such circumstances are determined to exist, management re-tests for impairment more frequently than once a year when indicators of impairment exist. This ensures that the assumptions on which the cash flow forecasts are based continue to reflect current market conditions and management's best estimate of future business prospects. | \u2022The future cash flows of each investment are sensitive to the cash flows projected for the periods for which detailed forecasts are available and to assumptions regarding the long-term pattern of sustainable cash flows thereafter. Forecasts are compared with actual performance and verifiable economic data, but they reflect management\u2019s view of future business prospects at the time of the assessment. \u2022The rates used to discount future expected cash flows can have a significant effect on their valuation, and are based on the costs of equity assigned to the investment. The cost of equity percentage is generally derived from a capital asset pricing model and the market implied cost of equity, which incorporates inputs reflecting a number of financial and economic variables, including the risk-free interest rate in the country concerned and a premium for the risk of the business being evaluated. These variables are subject to fluctuations in external market rates and economic conditions beyond management\u2019s control. \u2022Key assumptions used in estimating impairment in subsidiaries are described in Note 19. |
The review of goodwill and non-financial assets (see Note 1.2(n)) for impairment reflects management\u2019s best estimate of the future cash flows of the CGUs and the rates used to discount these cash flows, both of which are subject to uncertain factors as follows: | |
Judgements | Estimates |
\u2022The accuracy of forecast cash flows is subject to a high degree of uncertainty in volatile market conditions. Where such circumstances are determined to exist, management re-tests goodwill for impairment more frequently than once a year when indicators of impairment exist. This ensures that the assumptions on which the cash flow forecasts are based continue to reflect current market conditions and management\u2019s best estimate of future business prospects. | \u2022The future cash flows of the CGUs are sensitive to the cash flows projected for the periods for which detailed forecasts are available and to assumptions regarding the long-term pattern of sustainable cash flows thereafter. Forecasts are compared with actual performance and verifiable economic data, but they reflect management\u2019s view of future business prospects at the time of the assessment. \u2022The rates used to discount future expected cash flows can have a significant effect on their valuation, and are based on the costs of equity assigned to individual CGUs. The cost of equity percentage is generally derived from a capital asset pricing model and market implied cost of equity, which incorporates inputs reflecting a number of financial and economic variables, including the risk-free interest rate in the country concerned and a premium for the risk of the business being evaluated. These variables are subject to fluctuations in external market rates and economic conditions beyond management\u2019s control. \u2022Key assumptions used in estimating goodwill and non-financial asset impairment are described in Note 21. |
The most significant critical accounting estimates relate to the assessment of impairment of our investment in Bank of Communications Co. Limited (\u2018BoCom\u2019), which involves estimations of value in use: | |
Judgements | Estimates |
\u2022Management\u2019s best estimate of BoCom\u2019s earnings is based on management\u2019s explicit forecasts over the short to medium term and the capital maintenance charge, which is management\u2019s forecast of the earnings that need to be withheld in order for BoCom to meet capital requirements over the forecast period, both of which are subject to uncertain factors. \u2022Key assumptions used in estimating BoCom\u2019s value in use, the sensitivity of the value in use calculations to different assumptions and a sensitivity analysis that shows the changes in key assumptions that would reduce the excess of value in use over the carrying amount (the \u2018headroom\u2019) to nil are described in Note 18. |
The majority of valuation techniques employ only observable market data. However, certain financial instruments are classified on the basis of valuation techniques that feature one or more significant market inputs that are unobservable, and for them, the measurement of fair value is more judgemental: | |
Judgements | Estimates |
\u2022An instrument in its entirety is classified as valued using significant unobservable inputs if, in the opinion of management, greater than 5% of the instrument\u2019s valuation is driven by unobservable inputs. \u2022\u2018Unobservable\u2019 in this context means that there is little or no current market data available from which to determine the price at which an arm\u2019s length transaction would be likely to occur. It generally does not mean that there is no data available at all upon which to base a determination of fair value (consensus pricing data may, for example, be used). | \u2022Details on the Group\u2019s level 3 financial instruments and the sensitivity of their valuation to the effect of applying reasonably possible alternative assumptions in determining their fair value are set out in Note 12. |
The calculation of the Group\u2019s ECL under IFRS 9 requires the Group to make a number of judgements, assumptions and estimates. The most significant are set out below: | |
Judgements | Estimates |
\u2022Defining what is considered to be a significant increase in credit risk \u2022Determining the lifetime and point of initial recognition of overdrafts and credit cards \u2022Selecting and calibrating the PD, LGD and EAD models, which support the calculations, including making reasonable and supportable judgements about how models react to current and future economic conditions \u2022Selecting model inputs and economic forecasts, including determining whether sufficient and appropriately weighted economic forecasts are incorporated to calculate unbiased expected loss \u2022Making management adjustments to account for late-breaking events, model and data limitations and deficiencies, and expert credit judgements \u2022Selecting applicable recovery strategies for certain wholesale credit-impaired loans | \u2022The section \u2018Measurement uncertainty and sensitivity analysis of ECL estimates\u2019, marked as audited from page 153, sets out the assumptions used in determining ECL, and provides an indication of the sensitivity of the result to the application of different weightings being applied to different economic assumptions |
The most significant critical accounting estimates relate to the determination of key assumptions applied in calculating the defined benefit pension obligation for the principal plan. | |
Judgements | Estimates |
\u2022A range of assumptions could be applied, and different assumptions could significantly alter the defined benefit obligation and the amounts recognised in profit or loss or OCI. \u2022The calculation of the defined benefit pension obligation includes assumptions with regard to the discount rate, inflation rate, pension payments and deferred pensions, pay and mortality. Management determines these assumptions in consultation with the plan\u2019s actuaries. \u2022Key assumptions used in calculating the defined benefit pension obligation for the principal plan and the sensitivity of the calculation to different assumptions are described in Note 5. |
The recognition of deferred tax assets depends on judgements and estimates. | |
Judgements | Estimates |
\u2022Specific judgements supporting deferred tax assets are described in Note\u00a07. | \u2022The recognition of deferred tax assets is sensitive to estimates of future cash flows projected for periods for which detailed forecasts are available and to assumptions regarding the long-term pattern of cash flows thereafter, on which forecasts of future taxable profit are based, and which affect the expected recovery periods and the pattern of utilisation of tax losses and tax credits. See Note 7 for further detail. |
The recognition and measurement of provisions requires the Group to make a number of judgements, assumptions and estimates. The most significant are set out below: | |
Judgements | Estimates |
\u2022Determining whether a present obligation exists. Professional advice is taken on the assessment of litigation and similar obligations. \u2022Provisions for legal proceedings and regulatory matters typically require a higher degree of judgement than other types of provisions. When matters are at an early stage, accounting judgements can be difficult because of the high degree of uncertainty associated with determining whether a present obligation exists, and estimating the probability and amount of any outflows that may arise. As matters progress, management and legal advisers evaluate on an ongoing basis whether provisions should be recognised, revising previous estimates as appropriate. At more advanced stages, it is typically easier to make estimates around a better defined set of possible outcomes. | \u2022Provisions for legal proceedings and regulatory matters remain very sensitive to the assumptions used in the estimate. There could be a wider range of possible outcomes for any pending legal proceedings, investigations or inquiries. As a result it is often not practicable to quantify a range of possible outcomes for individual matters. It is also not practicable to meaningfully quantify ranges of potential outcomes in aggregate for these types of provisions because of the diverse nature and circumstances of such matters and the wide range of uncertainties involved. |
The review of goodwill and other non-financial assets for impairment reflects management\u2019s best estimate of the future cash flows of the CGUs and the rates used to discount these cash flows, both of which are subject to uncertain factors as described in the Critical accounting estimates and judgements in Note 1.2(a). |
Investments in subsidiaries are tested for impairment when there is an indication that the investment may be impaired, which involves estimations of value in use reflecting management\u2019s best estimate of the future cash flows of the investment and the rates used to discount these cash flows, both of which are subject to uncertain factors as follows: | |
Judgements | Estimates |
\u2022The accuracy of forecast cash flows is subject to a high degree of uncertainty in volatile market conditions. Where such circumstances are determined to exist, management re-tests for impairment more frequently than once a year when indicators of impairment exist. This ensures that the assumptions on which the cash flow forecasts are based continue to reflect current market conditions and management's best estimate of future business prospects. | \u2022The future cash flows of each investment are sensitive to the cash flows projected for the periods for which detailed forecasts are available and to assumptions regarding the long-term pattern of sustainable cash flows thereafter. Forecasts are compared with actual performance and verifiable economic data, but they reflect management\u2019s view of future business prospects at the time of the assessment. \u2022The rates used to discount future expected cash flows can have a significant effect on their valuation, and are based on the costs of equity assigned to the investment. The cost of equity percentage is generally derived from a capital asset pricing model and the market implied cost of equity, which incorporates inputs reflecting a number of financial and economic variables, including the risk-free interest rate in the country concerned and a premium for the risk of the business being evaluated. These variables are subject to fluctuations in external market rates and economic conditions beyond management\u2019s control. \u2022Key assumptions used in estimating impairment in subsidiaries are described in Note 19. |
The review of goodwill and non-financial assets (see Note 1.2(n)) for impairment reflects management\u2019s best estimate of the future cash flows of the CGUs and the rates used to discount these cash flows, both of which are subject to uncertain factors as follows: | |
Judgements | Estimates |
\u2022The accuracy of forecast cash flows is subject to a high degree of uncertainty in volatile market conditions. Where such circumstances are determined to exist, management re-tests goodwill for impairment more frequently than once a year when indicators of impairment exist. This ensures that the assumptions on which the cash flow forecasts are based continue to reflect current market conditions and management\u2019s best estimate of future business prospects. | \u2022The future cash flows of the CGUs are sensitive to the cash flows projected for the periods for which detailed forecasts are available and to assumptions regarding the long-term pattern of sustainable cash flows thereafter. Forecasts are compared with actual performance and verifiable economic data, but they reflect management\u2019s view of future business prospects at the time of the assessment. \u2022The rates used to discount future expected cash flows can have a significant effect on their valuation, and are based on the costs of equity assigned to individual CGUs. The cost of equity percentage is generally derived from a capital asset pricing model and market implied cost of equity, which incorporates inputs reflecting a number of financial and economic variables, including the risk-free interest rate in the country concerned and a premium for the risk of the business being evaluated. These variables are subject to fluctuations in external market rates and economic conditions beyond management\u2019s control. \u2022Key assumptions used in estimating goodwill and non-financial asset impairment are described in Note 21. |
The most significant critical accounting estimates relate to the assessment of impairment of our investment in Bank of Communications Co. Limited (\u2018BoCom\u2019), which involves estimations of value in use: | |
Judgements | Estimates |
\u2022Management\u2019s best estimate of BoCom\u2019s earnings is based on management\u2019s explicit forecasts over the short to medium term and the capital maintenance charge, which is management\u2019s forecast of the earnings that need to be withheld in order for BoCom to meet capital requirements over the forecast period, both of which are subject to uncertain factors. \u2022Key assumptions used in estimating BoCom\u2019s value in use, the sensitivity of the value in use calculations to different assumptions and a sensitivity analysis that shows the changes in key assumptions that would reduce the excess of value in use over the carrying amount (the \u2018headroom\u2019) to nil are described in Note 18. |
The majority of valuation techniques employ only observable market data. However, certain financial instruments are classified on the basis of valuation techniques that feature one or more significant market inputs that are unobservable, and for them, the measurement of fair value is more judgemental: | |
Judgements | Estimates |
\u2022An instrument in its entirety is classified as valued using significant unobservable inputs if, in the opinion of management, greater than 5% of the instrument\u2019s valuation is driven by unobservable inputs. \u2022\u2018Unobservable\u2019 in this context means that there is little or no current market data available from which to determine the price at which an arm\u2019s length transaction would be likely to occur. It generally does not mean that there is no data available at all upon which to base a determination of fair value (consensus pricing data may, for example, be used). | \u2022Details on the Group\u2019s level 3 financial instruments and the sensitivity of their valuation to the effect of applying reasonably possible alternative assumptions in determining their fair value are set out in Note 12. |
Origination CRR | Significance trigger \u2013 PD to increase by |
0.1\u20131.2 | 15bps |
2.1\u20133.3 | 30bps |
Origination CRR | Additional significance criteria \u2013 number of CRR grade notches deterioration required to identify as significant credit deterioration\u00a0(stage 2) (> or equal to) |
0.1 | 5 notches |
1.1\u20134.2 | 4 notches |
4.3\u20135.1 | 3 notches |
5.2\u20137.1 | 2 notches |
7.2\u20138.2 | 1 notch |
8.3 | 0 notch |
Model | Regulatory capital | IFRS 9 |
PD | \u2022Through the cycle (represents long-run average PD throughout a full economic cycle) \u2022The definition of default includes a backstop of\u00a090+ days past due, although this has been modified to 180+ days past due for some portfolios, particularly UK and US mortgages | \u2022Point in time (based on current conditions, adjusted to\u00a0take into account estimates of future conditions that will impact PD) \u2022Default backstop of 90+ days past due for all portfolios |
EAD | \u2022Cannot be lower than current balance | \u2022Amortisation captured for term products |
LGD | \u2022Downturn LGD (consistent losses expected to be suffered during a severe but plausible economic downturn) \u2022Regulatory floors may apply to mitigate risk of underestimating downturn LGD due to lack of historical data \u2022Discounted using cost of capital \u2022All collection costs included | \u2022Expected LGD (based on estimate of loss given default including the expected impact of future economic conditions such as changes in value of collateral) \u2022No floors \u2022Discounted using the original effective interest rate of the loan \u2022Only costs associated with obtaining/selling collateral included |
Other | \u2022Discounted back from point of default to balance sheet date |
The most significant critical accounting estimates relate to the determination of key assumptions applied in calculating the defined benefit pension obligation for the principal plan. | |
Judgements | Estimates |
\u2022A range of assumptions could be applied, and different assumptions could significantly alter the defined benefit obligation and the amounts recognised in profit or loss or OCI. \u2022The calculation of the defined benefit pension obligation includes assumptions with regard to the discount rate, inflation rate, pension payments and deferred pensions, pay and mortality. Management determines these assumptions in consultation with the plan\u2019s actuaries. \u2022Key assumptions used in calculating the defined benefit pension obligation for the principal plan and the sensitivity of the calculation to different assumptions are described in Note 5. |
The recognition of deferred tax assets depends on judgements and estimates. | |
Judgements | Estimates |
\u2022Specific judgements supporting deferred tax assets are described in Note\u00a07. | \u2022The recognition of deferred tax assets is sensitive to estimates of future cash flows projected for periods for which detailed forecasts are available and to assumptions regarding the long-term pattern of cash flows thereafter, on which forecasts of future taxable profit are based, and which affect the expected recovery periods and the pattern of utilisation of tax losses and tax credits. See Note 7 for further detail. |
The recognition and measurement of provisions requires the Group to make a number of judgements, assumptions and estimates. The most significant are set out below: | |
Judgements | Estimates |
\u2022Determining whether a present obligation exists. Professional advice is taken on the assessment of litigation and similar obligations. \u2022Provisions for legal proceedings and regulatory matters typically require a higher degree of judgement than other types of provisions. When matters are at an early stage, accounting judgements can be difficult because of the high degree of uncertainty associated with determining whether a present obligation exists, and estimating the probability and amount of any outflows that may arise. As matters progress, management and legal advisers evaluate on an ongoing basis whether provisions should be recognised, revising previous estimates as appropriate. At more advanced stages, it is typically easier to make estimates around a better defined set of possible outcomes. | \u2022Provisions for legal proceedings and regulatory matters remain very sensitive to the assumptions used in the estimate. There could be a wider range of possible outcomes for any pending legal proceedings, investigations or inquiries. As a result it is often not practicable to quantify a range of possible outcomes for individual matters. It is also not practicable to meaningfully quantify ranges of potential outcomes in aggregate for these types of provisions because of the diverse nature and circumstances of such matters and the wide range of uncertainties involved. |
The review of goodwill and other non-financial assets for impairment reflects management\u2019s best estimate of the future cash flows of the CGUs and the rates used to discount these cash flows, both of which are subject to uncertain factors as described in the Critical accounting estimates and judgements in Note 1.2(a). |
Investments in subsidiaries are tested for impairment when there is an indication that the investment may be impaired, which involves estimations of value in use reflecting management\u2019s best estimate of the future cash flows of the investment and the rates used to discount these cash flows, both of which are subject to uncertain factors as follows: | |
Judgements | Estimates |
\u2022The accuracy of forecast cash flows is subject to a high degree of uncertainty in volatile market conditions. Where such circumstances are determined to exist, management re-tests for impairment more frequently than once a year when indicators of impairment exist. This ensures that the assumptions on which the cash flow forecasts are based continue to reflect current market conditions and management's best estimate of future business prospects. | \u2022The future cash flows of each investment are sensitive to the cash flows projected for the periods for which detailed forecasts are available and to assumptions regarding the long-term pattern of sustainable cash flows thereafter. Forecasts are compared with actual performance and verifiable economic data, but they reflect management\u2019s view of future business prospects at the time of the assessment. \u2022The rates used to discount future expected cash flows can have a significant effect on their valuation, and are based on the costs of equity assigned to the investment. The cost of equity percentage is generally derived from a capital asset pricing model and the market implied cost of equity, which incorporates inputs reflecting a number of financial and economic variables, including the risk-free interest rate in the country concerned and a premium for the risk of the business being evaluated. These variables are subject to fluctuations in external market rates and economic conditions beyond management\u2019s control. \u2022Key assumptions used in estimating impairment in subsidiaries are described in Note 19. |
The review of goodwill and non-financial assets (see Note 1.2(n)) for impairment reflects management\u2019s best estimate of the future cash flows of the CGUs and the rates used to discount these cash flows, both of which are subject to uncertain factors as follows: | |
Judgements | Estimates |
\u2022The accuracy of forecast cash flows is subject to a high degree of uncertainty in volatile market conditions. Where such circumstances are determined to exist, management re-tests goodwill for impairment more frequently than once a year when indicators of impairment exist. This ensures that the assumptions on which the cash flow forecasts are based continue to reflect current market conditions and management\u2019s best estimate of future business prospects. | \u2022The future cash flows of the CGUs are sensitive to the cash flows projected for the periods for which detailed forecasts are available and to assumptions regarding the long-term pattern of sustainable cash flows thereafter. Forecasts are compared with actual performance and verifiable economic data, but they reflect management\u2019s view of future business prospects at the time of the assessment. \u2022The rates used to discount future expected cash flows can have a significant effect on their valuation, and are based on the costs of equity assigned to individual CGUs. The cost of equity percentage is generally derived from a capital asset pricing model and market implied cost of equity, which incorporates inputs reflecting a number of financial and economic variables, including the risk-free interest rate in the country concerned and a premium for the risk of the business being evaluated. These variables are subject to fluctuations in external market rates and economic conditions beyond management\u2019s control. \u2022Key assumptions used in estimating goodwill and non-financial asset impairment are described in Note 21. |
The most significant critical accounting estimates relate to the assessment of impairment of our investment in Bank of Communications Co. Limited (\u2018BoCom\u2019), which involves estimations of value in use: | |
Judgements | Estimates |
\u2022Management\u2019s best estimate of BoCom\u2019s earnings is based on management\u2019s explicit forecasts over the short to medium term and the capital maintenance charge, which is management\u2019s forecast of the earnings that need to be withheld in order for BoCom to meet capital requirements over the forecast period, both of which are subject to uncertain factors. \u2022Key assumptions used in estimating BoCom\u2019s value in use, the sensitivity of the value in use calculations to different assumptions and a sensitivity analysis that shows the changes in key assumptions that would reduce the excess of value in use over the carrying amount (the \u2018headroom\u2019) to nil are described in Note 18. |
Investments in subsidiaries are tested for impairment when there is an indication that the investment may be impaired, which involves estimations of value in use reflecting management\u2019s best estimate of the future cash flows of the investment and the rates used to discount these cash flows, both of which are subject to uncertain factors as follows: | |
Judgements | Estimates |
\u2022The accuracy of forecast cash flows is subject to a high degree of uncertainty in volatile market conditions. Where such circumstances are determined to exist, management re-tests for impairment more frequently than once a year when indicators of impairment exist. This ensures that the assumptions on which the cash flow forecasts are based continue to reflect current market conditions and management's best estimate of future business prospects. | \u2022The future cash flows of each investment are sensitive to the cash flows projected for the periods for which detailed forecasts are available and to assumptions regarding the long-term pattern of sustainable cash flows thereafter. Forecasts are compared with actual performance and verifiable economic data, but they reflect management\u2019s view of future business prospects at the time of the assessment. \u2022The rates used to discount future expected cash flows can have a significant effect on their valuation, and are based on the costs of equity assigned to the investment. The cost of equity percentage is generally derived from a capital asset pricing model and the market implied cost of equity, which incorporates inputs reflecting a number of financial and economic variables, including the risk-free interest rate in the country concerned and a premium for the risk of the business being evaluated. These variables are subject to fluctuations in external market rates and economic conditions beyond management\u2019s control. \u2022Key assumptions used in estimating impairment in subsidiaries are described in Note 19. |
The review of goodwill and non-financial assets (see Note 1.2(n)) for impairment reflects management\u2019s best estimate of the future cash flows of the CGUs and the rates used to discount these cash flows, both of which are subject to uncertain factors as follows: | |
Judgements | Estimates |
\u2022The accuracy of forecast cash flows is subject to a high degree of uncertainty in volatile market conditions. Where such circumstances are determined to exist, management re-tests goodwill for impairment more frequently than once a year when indicators of impairment exist. This ensures that the assumptions on which the cash flow forecasts are based continue to reflect current market conditions and management\u2019s best estimate of future business prospects. | \u2022The future cash flows of the CGUs are sensitive to the cash flows projected for the periods for which detailed forecasts are available and to assumptions regarding the long-term pattern of sustainable cash flows thereafter. Forecasts are compared with actual performance and verifiable economic data, but they reflect management\u2019s view of future business prospects at the time of the assessment. \u2022The rates used to discount future expected cash flows can have a significant effect on their valuation, and are based on the costs of equity assigned to individual CGUs. The cost of equity percentage is generally derived from a capital asset pricing model and market implied cost of equity, which incorporates inputs reflecting a number of financial and economic variables, including the risk-free interest rate in the country concerned and a premium for the risk of the business being evaluated. These variables are subject to fluctuations in external market rates and economic conditions beyond management\u2019s control. \u2022Key assumptions used in estimating goodwill and non-financial asset impairment are described in Note 21. |
The most significant critical accounting estimates relate to the assessment of impairment of our investment in Bank of Communications Co. Limited (\u2018BoCom\u2019), which involves estimations of value in use: | |
Judgements | Estimates |
\u2022Management\u2019s best estimate of BoCom\u2019s earnings is based on management\u2019s explicit forecasts over the short to medium term and the capital maintenance charge, which is management\u2019s forecast of the earnings that need to be withheld in order for BoCom to meet capital requirements over the forecast period, both of which are subject to uncertain factors. \u2022Key assumptions used in estimating BoCom\u2019s value in use, the sensitivity of the value in use calculations to different assumptions and a sensitivity analysis that shows the changes in key assumptions that would reduce the excess of value in use over the carrying amount (the \u2018headroom\u2019) to nil are described in Note 18. |
The majority of valuation techniques employ only observable market data. However, certain financial instruments are classified on the basis of valuation techniques that feature one or more significant market inputs that are unobservable, and for them, the measurement of fair value is more judgemental: | |
Judgements | Estimates |
\u2022An instrument in its entirety is classified as valued using significant unobservable inputs if, in the opinion of management, greater than 5% of the instrument\u2019s valuation is driven by unobservable inputs. \u2022\u2018Unobservable\u2019 in this context means that there is little or no current market data available from which to determine the price at which an arm\u2019s length transaction would be likely to occur. It generally does not mean that there is no data available at all upon which to base a determination of fair value (consensus pricing data may, for example, be used). | \u2022Details on the Group\u2019s level 3 financial instruments and the sensitivity of their valuation to the effect of applying reasonably possible alternative assumptions in determining their fair value are set out in Note 12. |
Origination CRR | Significance trigger \u2013 PD to increase by |
0.1\u20131.2 | 15bps |
2.1\u20133.3 | 30bps |
Origination CRR | Additional significance criteria \u2013 number of CRR grade notches deterioration required to identify as significant credit deterioration\u00a0(stage 2) (> or equal to) |
0.1 | 5 notches |
1.1\u20134.2 | 4 notches |
4.3\u20135.1 | 3 notches |
5.2\u20137.1 | 2 notches |
7.2\u20138.2 | 1 notch |
8.3 | 0 notch |
Model | Regulatory capital | IFRS 9 |
PD | \u2022Through the cycle (represents long-run average PD throughout a full economic cycle) \u2022The definition of default includes a backstop of\u00a090+ days past due, although this has been modified to 180+ days past due for some portfolios, particularly UK and US mortgages | \u2022Point in time (based on current conditions, adjusted to\u00a0take into account estimates of future conditions that will impact PD) \u2022Default backstop of 90+ days past due for all portfolios |
EAD | \u2022Cannot be lower than current balance | \u2022Amortisation captured for term products |
LGD | \u2022Downturn LGD (consistent losses expected to be suffered during a severe but plausible economic downturn) \u2022Regulatory floors may apply to mitigate risk of underestimating downturn LGD due to lack of historical data \u2022Discounted using cost of capital \u2022All collection costs included | \u2022Expected LGD (based on estimate of loss given default including the expected impact of future economic conditions such as changes in value of collateral) \u2022No floors \u2022Discounted using the original effective interest rate of the loan \u2022Only costs associated with obtaining/selling collateral included |
Other | \u2022Discounted back from point of default to balance sheet date |
The most significant critical accounting estimates relate to the determination of key assumptions applied in calculating the defined benefit pension obligation for the principal plan. | |
Judgements | Estimates |
\u2022A range of assumptions could be applied, and different assumptions could significantly alter the defined benefit obligation and the amounts recognised in profit or loss or OCI. \u2022The calculation of the defined benefit pension obligation includes assumptions with regard to the discount rate, inflation rate, pension payments and deferred pensions, pay and mortality. Management determines these assumptions in consultation with the plan\u2019s actuaries. \u2022Key assumptions used in calculating the defined benefit pension obligation for the principal plan and the sensitivity of the calculation to different assumptions are described in Note 5. |
The recognition of deferred tax assets depends on judgements and estimates. | |
Judgements | Estimates |
\u2022Specific judgements supporting deferred tax assets are described in Note\u00a07. | \u2022The recognition of deferred tax assets is sensitive to estimates of future cash flows projected for periods for which detailed forecasts are available and to assumptions regarding the long-term pattern of cash flows thereafter, on which forecasts of future taxable profit are based, and which affect the expected recovery periods and the pattern of utilisation of tax losses and tax credits. See Note 7 for further detail. |
The recognition of deferred tax assets depends on judgements and estimates. | |
Judgements | Estimates |
\u2022Specific judgements supporting deferred tax assets are described in Note\u00a07. | \u2022The recognition of deferred tax assets is sensitive to estimates of future cash flows projected for periods for which detailed forecasts are available and to assumptions regarding the long-term pattern of cash flows thereafter, on which forecasts of future taxable profit are based, and which affect the expected recovery periods and the pattern of utilisation of tax losses and tax credits. See Note 7 for further detail. |
The recognition and measurement of provisions requires the Group to make a number of judgements, assumptions and estimates. The most significant are set out below: | |
Judgements | Estimates |
\u2022Determining whether a present obligation exists. Professional advice is taken on the assessment of litigation and similar obligations. \u2022Provisions for legal proceedings and regulatory matters typically require a higher degree of judgement than other types of provisions. When matters are at an early stage, accounting judgements can be difficult because of the high degree of uncertainty associated with determining whether a present obligation exists, and estimating the probability and amount of any outflows that may arise. As matters progress, management and legal advisers evaluate on an ongoing basis whether provisions should be recognised, revising previous estimates as appropriate. At more advanced stages, it is typically easier to make estimates around a better defined set of possible outcomes. | \u2022Provisions for legal proceedings and regulatory matters remain very sensitive to the assumptions used in the estimate. There could be a wider range of possible outcomes for any pending legal proceedings, investigations or inquiries. As a result it is often not practicable to quantify a range of possible outcomes for individual matters. It is also not practicable to meaningfully quantify ranges of potential outcomes in aggregate for these types of provisions because of the diverse nature and circumstances of such matters and the wide range of uncertainties involved. |
The review of goodwill and other non-financial assets for impairment reflects management\u2019s best estimate of the future cash flows of the CGUs and the rates used to discount these cash flows, both of which are subject to uncertain factors as described in the Critical accounting estimates and judgements in Note 1.2(a). |
2 | Net fee income |
Net fee income by global business | |||||
2022 | |||||
Wealth and Personal Banking | Commercial Banking | Global Banking and Markets | Corporate Centre | Total | |
$m | $m | $m | $m | $m | |
Funds under management | 1,769 | 105 | 503 | \u2014 | 2,377 |
Cards | 2,146 | 313 | 32 | \u2014 | 2,491 |
Credit facilities | 100 | 776 | 598 | \u2014 | 1,474 |
Broking income | 575 | 40 | 634 | \u2014 | 1,249 |
Account services | 337 | 718 | 356 | 1 | 1,412 |
Unit trusts | 682 | 14 | \u2014 | \u2014 | 696 |
Underwriting | 1 | 2 | 443 | (5) | 441 |
Global custody | 140 | 14 | 767 | \u2014 | 921 |
Remittances | 72 | 378 | 348 | 1 | 799 |
Imports/exports | \u2014 | 475 | 159 | \u2014 | 634 |
Insurance agency commission | 283 | 16 | 1 | \u2014 | 300 |
Other | 1,423 | 1,082 | 2,382 | (2,468) | 2,419 |
Fee income | 7,528 | 3,933 | 6,223 | (2,471) | 15,213 |
Less: fee expense | (2,497) | (240) | (3,464) | 2,439 | (3,762) |
Net fee income | 5,031 | 3,693 | 2,759 | (32) | 11,451 |
2021 | |||||
Wealth and Personal Banking | Commercial Banking | Global Banking and Markets | Corporate Centre | Total | |
$m | $m | $m | $m | $m | |
Funds under management | 1,984 | 126 | 546 | \u2014 | 2,656 |
Cards | 1,949 | 240 | 23 | 1 | 2,213 |
Credit facilities | 103 | 833 | 690 | 1 | 1,627 |
Broking income | 863 | 69 | 669 | \u2014 | 1,601 |
Account services | 429 | 677 | 340 | 6 | 1,452 |
Unit trusts | 1,065 | 23 | \u2014 | \u2014 | 1,088 |
Underwriting | 4 | 6 | 1,009 | (2) | 1,017 |
Global custody | 167 | 24 | 787 | \u2014 | 978 |
Remittances | 75 | 357 | 343 | \u2014 | 775 |
Imports/exports | 1 | 474 | 145 | \u2014 | 620 |
Insurance agency commission | 324 | 17 | \u2014 | \u2014 | 341 |
Other | 1,305 | 1,077 | 2,503 | (2,465) | 2,420 |
Fee income | 8,269 | 3,923 | 7,055 | (2,459) | 16,788 |
Less: fee expense | (2,375) | (284) | (3,452) | 2,420 | (3,691) |
Net fee income | 5,894 | 3,639 | 3,603 | (39) | 13,097 |
2020 | |||||
Wealth and Personal Banking | Commercial Banking | Global Banking and Markets | Corporate Centre | Total | |
$m | $m | $m | $m | $m | |
Funds under management | 1,686 | 126 | 477 | \u2014 | 2,289 |
Cards | 1,564 | 360 | 25 | \u2014 | 1,949 |
Credit facilities | 93 | 740 | 626 | \u2014 | 1,459 |
Broking income | 862 | 61 | 616 | \u2014 | 1,539 |
Account services | 431 | 598 | 264 | \u2014 | 1,293 |
Unit trusts | 881 | 18 | \u2014 | \u2014 | 899 |
Underwriting | 5 | 9 | 1,002 | (1) | 1,015 |
Global custody | 189 | 22 | 723 | \u2014 | 934 |
Remittances | 77 | 313 | 288 | (1) | 677 |
Imports/exports | \u2014 | 417 | 160 | \u2014 | 577 |
Insurance agency commission | 307 | 17 | 1 | \u2014 | 325 |
Other | 1,123 | 893 | 2,369 | (2,290) | 2,095 |
Fee income | 7,218 | 3,574 | 6,551 | (2,292) | 15,051 |
Less: fee expense | (1,810) | (349) | (3,284) | 2,266 | (3,177) |
Net fee income | 5,408 | 3,225 | 3,267 | (26) | 11,874 |
3 | Net income from financial instruments measured at fair value through profit or loss |
2022 | 2021 | 2020 | |
$m | $m | $m | |
Net income/(expense) arising on: | |||
Net trading activities | 2,576 | 6,668 | 11,074 |
Other instruments managed on a fair value basis | 7,893 | 1,076 | (1,492) |
Net income from financial instruments held for trading or managed on a fair value basis | 10,469 | 7,744 | 9,582 |
Financial assets held to meet liabilities under insurance and investment contracts | (3,720) | 4,134 | 2,481 |
Liabilities to customers under investment contracts | 326 | (81) | (400) |
Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss | (3,394) | 4,053 | 2,081 |
Derivatives managed in conjunction with HSBC\u2019s issued debt securities | (7,086) | (2,811) | 2,619 |
Other changes in fair value | 7,009 | 2,629 | (2,388) |
Changes in fair value of designated debt and related derivatives1 | (77) | (182) | 231 |
Changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | 226 | 798 | 455 |
Year ended 31 Dec | 7,224 | 12,413 | 12,349 |
2022 | 2021 | 2020 | |
$m | $m | $m | |
Net income/(expense) arising on: | |||
\u2013\u00a0 trading activities | 2,094 | 87 | (336) |
\u2013\u00a0 other instruments managed on a fair value basis | 35 | 23 | 1,137 |
Net income from financial instruments held for trading or managed on a fair value basis | 2,129 | 110 | 801 |
Derivatives managed in conjunction with HSBC Holdings-issued debt securities | (1,529) | (625) | 694 |
Other changes in fair value | 3,673 | 974 | (1,020) |
Changes in fair value of designated debt and related derivatives | 2,144 | 349 | (326) |
Changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | (2,409) | (420) | 1,141 |
Year ended 31 Dec | 1,864 | 39 | 1,616 |
4 | Insurance business |
Net insurance premium income1 | ||||
Non-linked insurance | Linked life insurance | Investment contracts with DPF2 | Total | |
$m | $m | $m | $m | |
Gross insurance premium income | 11,685 | 824 | 1,547 | 14,056 |
Reinsurers\u2019 share of gross insurance premium income | (1,226) | (5) | \u2014 | (1,231) |
Year ended 31 Dec 2022 | 10,459 | 819 | 1,547 | 12,825 |
Gross insurance premium income | 8,529 | 1,027 | 1,873 | 11,429 |
Reinsurers\u2019 share of gross insurance premium income | (555) | (4) | \u2014 | (559) |
Year ended 31 Dec 2021 | 7,974 | 1,023 | 1,873 | 10,870 |
Gross insurance premium income | 8,321 | 579 | 1,563 | 10,463 |
Reinsurers\u2019 share of gross insurance premium income | (362) | (8) | \u2014 | (370) |
Year ended 31 Dec 2020 | 7,959 | 571 | 1,563 | 10,093 |
Liabilities under insurance contracts1 | ||||
Non-linked insurance | Linked life insurance | Investment contracts with DPF2 | Total | |
$m | $m | $m | $m | |
Gross liabilities under insurance contracts at 1 Jan 2022 | 79,475 | 6,513 | 26,757 | 112,745 |
Claims and benefits paid | (4,032) | (680) | (1,845) | (6,557) |
Increase in liabilities to policyholders | 11,008 | (124) | 183 | 11,067 |
Exchange differences and other movements2 | 2,004 | (313) | (4,102) | (2,411) |
Gross liabilities under insurance contracts at 31 Dec 2022 | 88,455 | 5,396 | 20,993 | 114,844 |
Reinsurers\u2019 share of liabilities under insurance contracts | (4,247) | (10) | \u2014 | (4,257) |
Net liabilities under insurance contracts at 31 Dec 2022 | 84,208 | 5,386 | 20,993 | 110,587 |
Gross liabilities under insurance contracts at 1 Jan 2021 | 72,464 | 6,449 | 28,278 | 107,191 |
Claims and benefits paid | (2,929) | (1,023) | (2,142) | (6,094) |
Increase in liabilities to policyholders | 10,474 | 1,134 | 3,332 | 14,940 |
Exchange differences and other movements3 | (534) | (47) | (2,711) | (3,292) |
Gross liabilities under insurance contracts at 31 Dec 2021 | 79,475 | 6,513 | 26,757 | 112,745 |
Reinsurers\u2019 share of liabilities under insurance contracts | (3,638) | (30) | \u2014 | (3,668) |
Net liabilities under insurance contracts at 31 Dec 2021 | 75,837 | 6,483 | 26,757 | 109,077 |
5 | Employee compensation and benefits |
2022 | 2021 | 2020 | |
$m | $m | $m | |
Employee compensation and benefits1 | 18,366 | 18,742 | 18,076 |
Capitalised wages and salaries | 922 | 870 | 1,320 |
Gross employee compensation and benefits for the year ended 31 Dec | 19,288 | 19,612 | 19,396 |
Consists of: | |||
Wages and salaries | 16,954 | 17,072 | 17,072 |
Social security costs | 1,413 | 1,503 | 1,378 |
Post-employment benefits | 921 | 1,037 | 946 |
Year ended 31 Dec | 19,288 | 19,612 | 19,396 |
Average number of persons employed by HSBC during the year by global business1 | |||
2022 | 2021 | 2020 | |
Wealth and Personal Banking | 135,676 | 138,026 | 144,615 |
Commercial Banking | 48,004 | 44,992 | 45,631 |
Global Banking and Markets | 48,597 | 48,179 | 49,055 |
Corporate Centre | 365 | 359 | 411 |
Year ended 31 Dec | 232,642 | 231,556 | 239,712 |
Reconciliation of total incentive awards granted to income statement charge | |||
2022 | 2021 | 2020 | |
$m | $m | $m | |
Total incentive awards approved for the current year | 3,359 | 3,495 | 2,659 |
Less: deferred bonuses awarded, expected to be recognised in future periods | (343) | (379) | (239) |
Total incentives awarded and recognised in the current year | 3,016 | 3,116 | 2,420 |
Add: current year charges for deferred bonuses from previous years | 239 | 270 | 286 |
Other | (22) | 4 | 2 |
Income statement charge for incentive awards | 3,233 | 3,390 | 2,708 |
2022 | 2021 | 2020 | |
$m | $m | $m | |
Conditional share awards | 402 | 479 | 411 |
Savings-related and other share award option plans | 22 | 27 | 51 |
Year ended 31 Dec | 424 | 506 | 462 |
HSBC share awards | |
Award | Policy |
Deferred share awards (including annual incentive awards, long- term incentive (\u2018LTI\u2019)\u00a0 awards delivered in shares) and Group Performance Share Plans (\u2018GPSP\u2019) | An assessment of performance over the relevant period ending on 31 December is used to determine the amount of\u00a0the award to be granted. \u2022\u00a0 Deferred awards generally require employees to remain in employment over the vesting period and are generally not subject to performance conditions after the grant date. An exception to these are LTI awards, which are subject to performance conditions. \u2022\u00a0 Deferred share awards generally vest over a period of three, four, five or seven years. \u2022\u00a0 Vested shares may be subject to a retention requirement post-vesting. \u2022\u00a0 Awards are subject to malus and clawback provisions. |
International Employee Share Purchase Plan (\u2018ShareMatch\u2019) | The plan was first introduced in Hong Kong in 2013 and now includes employees based in 31 jurisdictions. \u2022\u00a0 Shares are purchased in the market each quarter up to a maximum value of \u00a3750, or the equivalent in local currency. \u2022\u00a0 Matching awards are added at a ratio of one free share for every three purchased. In mainland China, matching awards are settled in cash. \u2022\u00a0 Matching awards vest subject to continued employment and the retention of the purchased shares for a maximum period of two years and nine months. |
Movement on HSBC share awards | ||
2022 | 2021 | |
Number | Number | |
(000s) | (000s) | |
Conditional share awards outstanding at 1 Jan | 109,364 | 103,473 |
Additions during the year | 90,190 | 75,549 |
Released in the year | (67,718) | (63,635) |
Forfeited in the year | (5,590) | (6,023) |
Conditional share awards outstanding at 31 Dec | 126,246 | 109,364 |
Weighted average fair value of awards granted ($) | 5.60 | 6.49 |
HSBC share option plans | |
Main plans | Policy |
Savings-related share option plans (\u2018Sharesave\u2019) | \u2022\u00a0 From 2014, employees eligible for the UK plan could save up to \u00a3500 per month with the option to use the savings to acquire shares. \u2022These are generally exercisable within six months following either the third or fifth anniversary of the commencement of a three-year or five-year contract, respectively. \u2022The exercise price is set at a 20% (2021: 20%) discount to the market value immediately preceding the date of invitation. |
Movement on HSBC share option plans | ||
Savings-related share option plans | ||
Number | WAEP1 | |
(000s) | \u00a3 | |
Outstanding at 1 Jan 2022 | 123,197 | 2.85 |
Granted during the year2 | 8,928 | 4.24 |
Exercised during the year3 | (3,483) | 3.49 |
Expired during the year | (9,047) | 3.55 |
Forfeited during the year | (3,944) | 2.79 |
Outstanding at 31 Dec 2022 | 115,651 | 2.89 |
\u2013\u00a0 of which exercisable | 4,029 | 4.11 |
Weighted average remaining contractual life (years) | 2.26 | |
Outstanding at 1 Jan 2021 | 130,953 | 2.97 |
Granted during the year2 | 15,410 | 3.15 |
Exercised during the year3 | (3,878) | 3.80 |
Expired during the year | (11,502) | 3.53 |
Forfeited during the year | (7,786) | 3.97 |
Outstanding at 31 Dec 2021 | 123,197 | 2.85 |
\u2013\u00a0 of which exercisable | 4,949 | 4.05 |
Weighted average remaining contractual life (years) | 3.02 |
Net assets/(liabilities) recognised on the balance sheet in respect of defined benefit plans | ||||
Fair value of plan assets | Present value of defined benefit obligations | Effect of limit on plan surpluses | Total | |
$m | $m | $m | $m | |
Defined benefit pension plans | 32,171 | (25,693) | \u2014 | 6,478 |
Defined benefit healthcare plans | 96 | (388) | \u2014 | (292) |
At 31 Dec 2022 | 32,267 | (26,081) | \u2014 | 6,186 |
Total employee benefit liabilities (within Note 27 \u2018Accruals, deferred income and other liabilities\u2019) | (1,096) | |||
Total employee benefit assets (within Note 22 \u2018Prepayments, accrued income and other assets\u2019) | 7,282 | |||
Defined benefit pension plans | 51,431 | (42,277) | (23) | 9,131 |
Defined benefit healthcare plans | 103 | (572) | \u2014 | (469) |
At 31 Dec 2021 | 51,534 | (42,849) | (23) | 8,662 |
Total employee benefit liabilities (within Note 27 \u2018Accruals, deferred income and other liabilities\u2019) | (1,607) | |||
Total employee benefit assets (within Note 22 \u2018Prepayments, accrued income and other assets\u2019) | 10,269 |
Fair value of plan assets by asset classes | ||||||||||
31 Dec 2022 | 31 Dec 2021 | |||||||||
Value | Quoted market price in active market | No quoted market price in active market | Thereof HSBC1 | Value | Quoted market price in active market | No quoted market price in active market | Thereof HSBC1 | |||
$m | $m | $m | $m | $m | $m | $m | $m | |||
The principal plan2 | ||||||||||
Fair value of plan assets | 25,121 | 13,915 | 11,206 | 510 | 41,384 | 36,270 | 5,114 | 1,037 | ||
\u2013\u00a0 equities3 | 112 | \u2014 | 112 | \u2014 | 197 | 5 | 192 | \u2014 | ||
\u2013\u00a0 bonds4 | 14,764 | 14,301 | 463 | \u2014 | 36,295 | 35,612 | 683 | \u2014 | ||
\u2013\u00a0 derivatives | 1,203 | \u2014 | 1,203 | 510 | 1,864 | \u2014 | 1,864 | 1,037 | ||
\u2013\u00a0 property | 842 | \u2014 | 842 | \u2014 | 1,094 | \u2014 | 1,094 | \u2014 | ||
\u2013\u00a0 other5 | 8,200 | (386) | 8,586 | \u2014 | 1,934 | 653 | 1,281 | \u2014 | ||
Other plans | ||||||||||
Fair value of plan assets | 7,050 | 5,848 | 1,202 | 37 | 10,047 | 8,248 | 1,799 | 52 | ||
\u2013\u00a0 equities | 639 | 486 | 153 | 2 | 892 | 668 | 224 | 5 | ||
\u2013\u00a0 bonds | 4,986 | 4,537 | 449 | 4 | 7,080 | 6,490 | 590 | 5 | ||
\u2013\u00a0 derivatives | 4 | (1) | 5 | \u2014 | 7 | (13) | 20 | \u2014 | ||
\u2013\u00a0 property | 109 | 104 | 5 | \u2014 | 123 | 119 | 4 | \u2014 | ||
\u2013\u00a0 other | 1,312 | 722 | 590 | 31 | 1,945 | 984 | 961 | 42 |
Key actuarial assumptions for the principal plan1 | |||||
Discount rate | Inflation rate (RPI) | Inflation rate (CPI) | Rate of increase for pensions | Rate of pay increase | |
% | % | % | % | % | |
UK | |||||
At 31 Dec 2022 | 4.93 | 3.39 | 2.84 | 3.27 | 3.34 |
At 31 Dec 2021 | 1.90 | 3.45 | 3.20 | 3.30 | 3.45 |
Mortality tables and average life expectancy at age 60 for the principal plan1 | |||||
Mortality table | Life expectancy at age 60 for a male member currently: | Life expectancy at age 60 for a female member currently: | |||
Aged 60 | Aged 40 | Aged 60 | Aged 40 | ||
UK | |||||
At 31 Dec 2022 | SAPS S32 | 27.1 | 28.6 | 28.4 | 29.9 |
At 31 Dec 2021 | SAPS S3 | 27.3 | 28.8 | 28.5 | 30.1 |
The effect of changes in key assumptions on the principal plan1 | ||||
Impact on HBUK section of the HSBC Bank (UK) Pension Scheme obligation2 | ||||
Financial impact of increase | Financial impact of decrease | |||
2022 | 2021 | 2022 | 2021 | |
$m | $m | $m | $m | |
Discount rate \u2013 increase/decrease of 0.25% | (582) | (1,337) | 612 | 1,425 |
Inflation rate (RPI and CPI) \u2013 increase/decrease of 0.25% | 466 | 1,211 | (446) | (980) |
Pension payments and deferred pensions \u2013 increase/decrease of 0.25% | 551 | 1,267 | (519) | (1,177) |
Pay \u2013 increase/decrease of 0.25% | 10 | 20 | (10) | (20) |
Change in mortality \u2013 increase of 1 year | 470 | 1,387 | N/A | N/A |
Average number of persons employed by HSBC during the year by global business1 | |||
2022 | 2021 | 2020 | |
Wealth and Personal Banking | 135,676 | 138,026 | 144,615 |
Commercial Banking | 48,004 | 44,992 | 45,631 |
Global Banking and Markets | 48,597 | 48,179 | 49,055 |
Corporate Centre | 365 | 359 | 411 |
Year ended 31 Dec | 232,642 | 231,556 | 239,712 |
2022 | 2021 | 2020 | |
$m | $m | $m | |
Conditional share awards | 402 | 479 | 411 |
Savings-related and other share award option plans | 22 | 27 | 51 |
Year ended 31 Dec | 424 | 506 | 462 |
HSBC share awards | |
Award | Policy |
Deferred share awards (including annual incentive awards, long- term incentive (\u2018LTI\u2019)\u00a0 awards delivered in shares) and Group Performance Share Plans (\u2018GPSP\u2019) | An assessment of performance over the relevant period ending on 31 December is used to determine the amount of\u00a0the award to be granted. \u2022\u00a0 Deferred awards generally require employees to remain in employment over the vesting period and are generally not subject to performance conditions after the grant date. An exception to these are LTI awards, which are subject to performance conditions. \u2022\u00a0 Deferred share awards generally vest over a period of three, four, five or seven years. \u2022\u00a0 Vested shares may be subject to a retention requirement post-vesting. \u2022\u00a0 Awards are subject to malus and clawback provisions. |
International Employee Share Purchase Plan (\u2018ShareMatch\u2019) | The plan was first introduced in Hong Kong in 2013 and now includes employees based in 31 jurisdictions. \u2022\u00a0 Shares are purchased in the market each quarter up to a maximum value of \u00a3750, or the equivalent in local currency. \u2022\u00a0 Matching awards are added at a ratio of one free share for every three purchased. In mainland China, matching awards are settled in cash. \u2022\u00a0 Matching awards vest subject to continued employment and the retention of the purchased shares for a maximum period of two years and nine months. |
Movement on HSBC share awards | ||
2022 | 2021 | |
Number | Number | |
(000s) | (000s) | |
Conditional share awards outstanding at 1 Jan | 109,364 | 103,473 |
Additions during the year | 90,190 | 75,549 |
Released in the year | (67,718) | (63,635) |
Forfeited in the year | (5,590) | (6,023) |
Conditional share awards outstanding at 31 Dec | 126,246 | 109,364 |
Weighted average fair value of awards granted ($) | 5.60 | 6.49 |
HSBC share option plans | |
Main plans | Policy |
Savings-related share option plans (\u2018Sharesave\u2019) | \u2022\u00a0 From 2014, employees eligible for the UK plan could save up to \u00a3500 per month with the option to use the savings to acquire shares. \u2022These are generally exercisable within six months following either the third or fifth anniversary of the commencement of a three-year or five-year contract, respectively. \u2022The exercise price is set at a 20% (2021: 20%) discount to the market value immediately preceding the date of invitation. |
Movement on HSBC share option plans | ||
Savings-related share option plans | ||
Number | WAEP1 | |
(000s) | \u00a3 | |
Outstanding at 1 Jan 2022 | 123,197 | 2.85 |
Granted during the year2 | 8,928 | 4.24 |
Exercised during the year3 | (3,483) | 3.49 |
Expired during the year | (9,047) | 3.55 |
Forfeited during the year | (3,944) | 2.79 |
Outstanding at 31 Dec 2022 | 115,651 | 2.89 |
\u2013\u00a0 of which exercisable | 4,029 | 4.11 |
Weighted average remaining contractual life (years) | 2.26 | |
Outstanding at 1 Jan 2021 | 130,953 | 2.97 |
Granted during the year2 | 15,410 | 3.15 |
Exercised during the year3 | (3,878) | 3.80 |
Expired during the year | (11,502) | 3.53 |
Forfeited during the year | (7,786) | 3.97 |
Outstanding at 31 Dec 2021 | 123,197 | 2.85 |
\u2013\u00a0 of which exercisable | 4,949 | 4.05 |
Weighted average remaining contractual life (years) | 3.02 |
Fees payable by HSBC to PwC | |||
2022 | 2021 | 2020 | |
$m | $m | $m | |
Fees for HSBC Holdings\u2019 statutory audit2 | 21.9 | 19.5 | 21.9 |
Fees for other services provided to HSBC | 126.2 | 109.9 | 108.3 |
\u2013\u00a0 audit of HSBC\u2019s subsidiaries | 75.7 | 68.6 | 71.0 |
\u2013\u00a0 audit-related assurance services3 | 26.4 | 18.7 | 17.2 |
\u2013\u00a0 other assurance services4,5 | 24.1 | 22.6 | 20.1 |
Year ended 31 Dec | 148.1 | 129.4 | 130.2 |
Fees payable by HSBC\u2019s associated pension schemes to PwC | ||||
2022 | 2021 | 2020 | ||
$000 | $000 | $000 | ||
Audit of HSBC\u2019s associated pension schemes | 480 | 382 | 316 | |
Year ended 31 Dec | 480 | 382 | 316 |
7 | Tax |
Tax expense | |||
2022 | 2021 | 2020 | |
$m | $m | $m | |
Current tax1 | 2,991 | 3,250 | 2,700 |
\u2013\u00a0 for this year | 3,271 | 3,182 | 2,883 |
\u2013\u00a0 adjustments in respect of prior years | (280) | 68 | (183) |
Deferred tax | (2,133) | 963 | (22) |
\u2013\u00a0 origination and reversal of temporary differences | (2,236) | 874 | (341) |
\u2013\u00a0 effect of changes in tax rates | (293) | 132 | 58 |
\u2013\u00a0 adjustments in respect of prior years | 396 | (43) | 261 |
Year ended 31 Dec2 | 858 | 4,213 | 2,678 |
2022 | 2021 | 2020 | ||||
$m | % | $m | % | $m | % | |
Profit before tax | 17,528 | 18,906 | 8,777 | |||
Tax expense | ||||||
Taxation at UK corporation tax rate of 19.00% | 3,329 | 19.0 | 3,592 | 19.0 | 1,668 | 19.0 |
Impact of differently taxed overseas profits in overseas locations | 374 | 2.1 | 280 | 1.5 | 178 | 2.0 |
UK banking surcharge | 283 | 1.6 | 332 | 1.8 | (113) | (1.3) |
Items increasing tax charge in 2022: | ||||||
\u2013\u00a0 local taxes and overseas withholding taxes | 550 | 3.1 | 360 | 1.9 | 228 | 2.6 |
\u2013\u00a0 other permanent disallowables | 202 | 1.2 | 236 | 1.2 | 333 | 3.8 |
\u2013\u00a0 impacts of hyperinflation | 171 | 1.0 | 68 | 0.4 | 65 | 0.7 |
\u2013\u00a0 adjustments in respect of prior period liabilities | 116 | 0.7 | 25 | 0.1 | 78 | 0.9 |
\u2013\u00a0 tax impact of planned sale of French retail banking business | 115 | 0.7 | (434) | (2.3) | \u2014 | \u2014 |
\u2013\u00a0 bank levy | 59 | 0.3 | 93 | 0.5 | 202 | 2.3 |
\u2013\u00a0 movements in provisions for uncertain tax positions | 27 | 0.2 | 15 | 0.1 | 4 | \u2014 |
\u2013\u00a0 non-deductible goodwill write-down | 3 | \u2014 | 178 | 0.9 | \u2014 | \u2014 |
\u2013\u00a0 impact of differences between French tax basis and IFRSs | \u2014 | \u2014 | 434 | 2.3 | \u2014 | \u2014 |
Items reducing tax charge in 2022: | ||||||
\u2013\u00a0 movements in unrecognised UK deferred tax | (2,191) | (12.5) | 294 | 1.6 | 444 | 5.1 |
\u2013\u00a0 non-taxable income and gains | (825) | (4.7) | (641) | (3.4) | (515) | (5.8) |
\u2013\u00a0 effect of profits in associates and joint ventures | (504) | (2.9) | (414) | (2.2) | (250) | (2.8) |
\u2013\u00a0 non-UK movements in unrecognised deferred tax | (312) | (1.8) | (67) | (0.4) | 608 | 6.9 |
\u2013\u00a0 impact of changes in tax rates | (293) | (1.7) | 132 | 0.7 | 58 | 0.6 |
\u2013\u00a0 deductions for AT1 coupon payments | (246) | (1.4) | (270) | (1.4) | (310) | (3.5) |
Year ended 31 December 2022 | 858 | 4.9 | 4,213 | 22.3 | 2,678 | 30.5 |
Movement of deferred tax assets and liabilities | ||||||||
Loan impairment provisions | Unused tax losses and tax credits | Financial assets at FVOCI | Insurance business | Cash flow hedges | Retirement obligations | Other | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Assets | 1,162 | 2,001 | 84 | \u2014 | 176 | 109 | 1,690 | 5,222 |
Liabilities | \u2014 | \u2014 | (254) | (1,640) | (22) | (2,928) | (427) | (5,271) |
At 1 Jan 2022 | 1,162 | 2,001 | (170) | (1,640) | 154 | (2,819) | 1,263 | (49) |
Income statement | 6 | 2,425 | \u2014 | 170 | \u2014 | 217 | (685) | 2,133 |
Other comprehensive income | \u2014 | \u2014 | 1,679 | \u2014 | 1,159 | 692 | (642) | 2,888 |
Foreign exchange and other adjustments | 7 | (36) | (79) | 35 | (42) | 237 | (18) | 104 |
At 31 Dec 2022 | 1,175 | 4,390 | 1,430 | (1,435) | 1,271 | (1,673) | (82) | 5,076 |
Assets1 | 1,175 | 4,390 | 1,430 | \u2014 | 1,271 | \u2014 | 1,571 | 9,837 |
Liabilities1 | \u2014 | \u2014 | \u2014 | (1,435) | \u2014 | (1,673) | (1,653) | (4,761) |
Assets | 1,242 | 1,821 | 99 | \u2014 | 25 | \u2014 | 2,850 | 6,037 |
Liabilities | \u2014 | \u2014 | (896) | (1,622) | (70) | (2,306) | (973) | (5,867) |
At 1 Jan 2021 | 1,242 | 1,821 | (797) | (1,622) | (45) | (2,306) | 1,877 | 170 |
Income statement | (89) | 161 | \u2014 | (43) | \u2014 | (336) | (656) | (963) |
Other comprehensive income | (5) | 33 | 634 | \u2014 | 212 | (205) | 115 | 784 |
Foreign exchange and other adjustments | 14 | (14) | (7) | 25 | (13) | 28 | (73) | (40) |
At 31 Dec 2021 | 1,162 | 2,001 | (170) | (1,640) | 154 | (2,819) | 1,263 | (49) |
Assets1 | 1,162 | 2,001 | 84 | \u2014 | 176 | 109 | 1,690 | 5,222 |
Liabilities1 | \u2014 | \u2014 | (254) | (1,640) | (22) | (2,928) | (427) | (5,271) |
2020 | |||||
Net operating income/(expense) before change in expected credit losses and other credit impairment charges1 | 21,481 | 12,889 | 14,696 | (218) | 48,848 |
\u2013\u00a0 external | 19,521 | 13,278 | 17,635 | (1,586) | 48,848 |
\u2013\u00a0 inter-segment | 1,960 | (389) | (2,939) | 1,368 | \u2014 |
\u2013\u00a0 of which: net interest income/(expense) | 14,752 | 8,997 | 4,314 | (1,324) | 26,739 |
Change in expected credit losses and other credit impairment (charges)/ recoveries | (2,878) | (4,710) | (1,227) | \u2014 | (8,815) |
Net operating income/(expense) | 18,603 | 8,179 | 13,469 | (218) | 40,033 |
Total operating expenses | (14,536) | (6,475) | (8,895) | (539) | (30,445) |
Operating profit/(loss) | 4,067 | 1,704 | 4,574 | (757) | 9,588 |
Share of profit in associates and joint ventures | 6 | (1) | \u2014 | 2,102 | 2,107 |
Adjusted profit before tax | 4,073 | 1,703 | 4,574 | 1,345 | 11,695 |
% | % | % | % | % | |
Share of HSBC\u2019s adjusted profit before tax | 34.8 | 14.6 | 39.1 | 11.5 | 100.0 |
Adjusted cost efficiency ratio | 67.7 | 50.2 | 60.5 | (247.2) | 62.3 |
Adjusted balance sheet data | $m | $m | $m | $m | $m |
Loans and advances to customers (net) | 436,105 | 320,084 | 211,510 | 1,151 | 968,850 |
Interests in associates and joint ventures | 437 | 15 | 128 | 25,142 | 25,722 |
Total external assets | 828,309 | 530,203 | 1,238,781 | 184,030 | 2,781,323 |
Customer accounts | 788,043 | 439,889 | 310,757 | 540 | 1,539,229 |
2022 | 2021 | 2020 | |
$m | $m | $m | |
Reported external net operating income by country/territory1 | 51,727 | 49,552 | 50,429 |
\u2013\u00a0 UK | 11,767 | 10,909 | 9,163 |
\u2013\u00a0 Hong Kong | 15,894 | 14,245 | 15,783 |
\u2013\u00a0 US | 3,893 | 3,795 | 4,474 |
\u2013\u00a0 France | 136 | 2,179 | 1,753 |
\u2013\u00a0 other countries | 20,037 | 18,424 | 19,256 |
Adjusted results reconciliation | |||||||||||
2022 | 2021 | 2020 | |||||||||
Adjusted | Significant items | Reported | Adjusted | Currency translation | Significant items | Reported | Adjusted | Currency translation | Significant items | Reported | |
$m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | |
Revenue1 | 55,345 | (3,618) | 51,727 | 47,020 | 3,074 | (542) | 49,552 | 48,848 | 1,523 | 58 | 50,429 |
ECL | (3,592) | \u2014 | (3,592) | 754 | 174 | \u2014 | 928 | (8,815) | (2) | \u2014 | (8,817) |
Operating expenses | (30,466) | (2,864) | (33,330) | (30,104) | (2,181) | (2,335) | (34,620) | (30,445) | (1,170) | (2,817) | (34,432) |
Share of profit in associates and joint ventures | 2,723 | \u2014 | 2,723 | 2,933 | 113 | \u2014 | 3,046 | 2,107 | (48) | (462) | 1,597 |
Profit/(loss) before tax | 24,010 | (6,482) | 17,528 | 20,603 | 1,180 | (2,877) | 18,906 | 11,695 | 303 | (3,221) | 8,777 |
Adjusted balance sheet reconciliation | |||||||
2022 | 2021 | 2020 | |||||
Reported and adjusted | Adjusted | Currency translation | Reported | Adjusted | Currency translation | Reported | |
$m | $m | $m | $m | $m | $m | $m | |
Loans and advances to customers (net) | 924,854 | 991,197 | 54,617 | 1,045,814 | 968,850 | 69,137 | 1,037,987 |
Interests in associates and joint ventures | 29,254 | 28,086 | 1,523 | 29,609 | 25,722 | 962 | 26,684 |
Total external assets | 2,966,530 | 2,805,820 | 152,119 | 2,957,939 | 2,781,323 | 202,841 | 2,984,164 |
Customer accounts | 1,570,303 | 1,622,547 | 88,027 | 1,710,574 | 1,539,229 | 103,551 | 1,642,780 |
Adjusted profit reconciliation | |||
2022 | 2021 | 2020 | |
$m | $m | $m | |
Year ended 31 Dec | |||
Adjusted profit before tax | 24,010 | 20,603 | 11,695 |
Significant items | (6,482) | (2,877) | (3,221) |
\u2013\u00a0 customer redress programmes (revenue) | 8 | 11 | (21) |
\u2013\u00a0 disposals, acquisitions and investment in new businesses (revenue)1 | (2,799) | \u2014 | (10) |
\u2013\u00a0 fair value movements on financial instruments2 | (579) | (242) | 264 |
\u2013\u00a0 restructuring and other related costs (revenue)3 | (248) | (307) | (170) |
\u2013\u00a0 customer redress programmes (operating expenses) | 31 | (49) | 54 |
\u2013\u00a0 disposals, acquisitions and investment in new businesses (operating expenses) | (18) | \u2014 | \u2014 |
\u2013\u00a0 impairment of goodwill and other intangible assets | 4 | (587) | (1,090) |
\u2013\u00a0 past service costs of guaranteed minimum pension benefits equalisation | \u2014 | \u2014 | (17) |
\u2013\u00a0 restructuring and other related costs (operating expenses)4 | (2,881) | (1,836) | (1,908) |
\u2013\u00a0 settlements and provisions in connection with legal and other regulatory matters | \u2014 | \u2014 | (12) |
\u2013\u00a0 impairment of goodwill (share of profit in associates and joint ventures)5 | \u2014 | \u2014 | (462) |
\u2013\u00a0 currency translation on significant items | 133 | 151 | |
Currency translation | 1,180 | 303 | |
Reported profit before tax | 17,528 | 18,906 | 8,777 |
12 | Fair values of financial instruments carried at fair value |
Financial instruments carried at fair value and bases of valuation | ||||||||
2022 | 2021 | |||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Recurring fair value measurements at 31 Dec | ||||||||
Assets | ||||||||
Trading assets | 148,592 | 64,684 | 4,817 | 218,093 | 180,423 | 65,757 | 2,662 | 248,842 |
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | 15,978 | 13,019 | 16,066 | 45,063 | 17,937 | 17,629 | 14,238 | 49,804 |
Derivatives | 2,917 | 279,265 | 1,964 | 284,146 | 2,783 | 191,621 | 2,478 | 196,882 |
Financial investments | 182,231 | 71,621 | 2,965 | 256,817 | 247,745 | 97,838 | 3,389 | 348,972 |
Liabilities | ||||||||
Trading liabilities | 44,787 | 27,092 | 474 | 72,353 | 63,437 | 20,682 | 785 | 84,904 |
Financial liabilities designated at fair value | 1,130 | 115,765 | 10,432 | 127,327 | 1,379 | 136,243 | 7,880 | 145,502 |
Derivatives | 2,400 | 280,444 | 2,920 | 285,764 | 1,686 | 186,290 | 3,088 | 191,064 |
Financial instruments measured at fair value using a valuation technique with significant unobservable inputs \u2013 Level 3 | |||||||||
Assets | Liabilities | ||||||||
Financial investments | Trading assets | Designated and otherwise mandatorily measured at fair value through profit or loss | Derivatives | Total | Trading liabilities | Designated at fair value | Derivatives | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | $m | |
Private equity including strategic investments | 647 | 19 | 15,652 | \u2014 | 16,318 | 92 | \u2014 | \u2014 | 92 |
Asset-backed securities | 438 | 208 | 95 | \u2014 | 741 | \u2014 | \u2014 | \u2014 | \u2014 |
Structured notes | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 10,432 | \u2014 | 10,432 |
Other derivatives | \u2014 | \u2014 | \u2014 | 1,964 | 1,964 | \u2014 | \u2014 | 2,920 | 2,920 |
Other portfolios | 1,880 | 4,590 | 319 | \u2014 | 6,789 | 382 | \u2014 | \u2014 | 382 |
At 31 Dec 2022 | 2,965 | 4,817 | 16,066 | 1,964 | 25,812 | 474 | 10,432 | 2,920 | 13,826 |
Private equity including strategic investments | 544 | 2 | 13,732 | \u2014 | 14,278 | 9 | \u2014 | \u2014 | 9 |
Asset-backed securities | 1,008 | 132 | 1 | \u2014 | 1,141 | \u2014 | \u2014 | \u2014 | \u2014 |
Structured notes | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 7,879 | \u2014 | 7,879 |
Other derivatives | \u2014 | \u2014 | \u2014 | 2,478 | 2,478 | \u2014 | \u2014 | 3,088 | 3,088 |
Other portfolios | 1,837 | 2,528 | 505 | \u2014 | 4,870 | 776 | 1 | \u2014 | 777 |
At 31 Dec 2021 | 3,389 | 2,662 | 14,238 | 2,478 | 22,767 | 785 | 7,880 | 3,088 | 11,753 |
At 1 Jan 2021 | 3,654 | 2,499 | 11,477 | 2,670 | 162 | 5,306 | 4,188 |
Total gains/(losses) recognised in profit or\u00a0loss | (10) | (378) | 1,753 | 2,237 | 16 | (836) | 2,583 |
\u2013\u00a0 net income/(losses) from financial instruments held for trading or managed on a fair value basis | \u2014 | (378) | \u2014 | 2,237 | 16 | \u2014 | 2,583 |
\u2013\u00a0 changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | \u2014 | \u2014 | 1,753 | \u2014 | \u2014 | (836) | \u2014 |
\u2013\u00a0 gains less losses from financial investments at fair value through other comprehensive income | (10) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Total gains/(losses) recognised in other comprehensive income (\u2018OCI\u2019)1 | (521) | (18) | (285) | (27) | (8) | (61) | (26) |
\u2013\u00a0 financial investments: fair value gains/ (losses) | (428) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
\u2013\u00a0 exchange differences | (93) | (18) | (285) | (27) | (8) | (61) | (26) |
Purchases | 1,025 | 1,988 | 3,692 | \u2014 | 1,014 | 1 | \u2014 |
New issuances | \u2014 | \u2014 | \u2014 | \u2014 | 35 | 5,969 | \u2014 |
Sales | (580) | (473) | (1,216) | \u2014 | (4) | (27) | \u2014 |
Settlements | (336) | (747) | (1,049) | (2,347) | (681) | (2,922) | (3,962) |
Transfers out | (383) | (1,027) | (184) | (418) | (7) | (704) | (734) |
Transfers in | 540 | 818 | 50 | 363 | 258 | 1,154 | 1,039 |
At 31 Dec 2021 | 3,389 | 2,662 | 14,238 | 2,478 | 785 | 7,880 | 3,088 |
Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 31\u00a0Dec 2020 | \u2014 | (309) | 1,509 | 1,298 | \u2014 | 166 | (969) |
\u2013\u00a0 net income/(losses) from financial instruments held for trading or managed on a fair value basis | \u2014 | (309) | \u2014 | 1,298 | \u2014 | \u2014 | (969) |
\u2013\u00a0 changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | \u2014 | \u2014 | 1,509 | \u2014 | \u2014 | 166 | \u2014 |
Quantitative information about significant unobservable inputs in Level 3 valuations | ||||||||
Fair value | 2022 | 2021 | ||||||
Assets | Liabilities | Valuation techniques | Key unobservable inputs | Full range of inputs | Full range of inputs | |||
$m | $m | Lower | Higher | Lower | Higher | |||
Private equity including strategic investments | 16,318 | 92 | See below | See below | ||||
Asset-backed securities | 741 | \u2014 | ||||||
\u2013\u00a0 collateralised loan/debt obligation | 188 | \u2014 | Market proxy | Bid quotes | \u2014 | 92 | \u2014 | 100 |
\u2013\u00a0 other ABSs | 553 | \u2014 | Market proxy | Bid quotes | \u2014 | 99 | \u2014 | 100 |
Structured notes | \u2014 | 10,432 | ||||||
\u2013\u00a0 equity-linked notes | \u2014 | 6,833 | Model \u2013 Option model | Equity volatility | 6% | 142% | 6% | 124% |
Model \u2013 Option model | Equity correlation | 32% | 99% | 22% | 99% | |||
\u2013\u00a0 Foreign exchange-linked notes | \u2014 | 2,694 | Model \u2013 Option model | Foreign exchange volatility | 3% | 37% | 1% | 99% |
\u2013\u00a0 other | \u2014 | 905 | ||||||
Derivatives | 1,964 | 2,920 | \u00a0 | \u00a0 | ||||
\u2013\u00a0 interest rate derivatives | 560 | 710 | \u00a0 | \u00a0 | ||||
\u00a0 securitisation swaps | 259 | 209 | Model \u2013 Discounted cash flow | Prepayment rate | 5% | 10% | 5% | 10% |
\u00a0 long-dated swaptions | 53 | 67 | Model \u2013 Option model | Interest rate volatility | 8% | 53% | 15% | 35% |
\u00a0 other | 248 | 434 | ||||||
\u2013\u00a0 Foreign exchange derivatives | 445 | 304 | ||||||
\u00a0 Foreign exchange options | 404 | 274 | Model \u2013 Option model | Foreign exchange volatility | 1% | 46% | 1% | 99% |
\u00a0 other | 41 | 30 | ||||||
\u2013\u00a0 equity derivatives | 850 | 1,658 | ||||||
\u00a0 long-dated single stock options | 415 | 502 | Model \u2013 Option model | Equity volatility | 7% | 153% | 4% | 138% |
\u00a0 other | 435 | 1,156 | ||||||
\u2013\u00a0 credit derivatives | 109 | 248 | ||||||
Other portfolios | 6,789 | 382 | ||||||
\u2013\u00a0 repurchase agreements | 750 | 328 | Model \u2013 Discounted cash flow | Interest rate curve | 1% | 9% | 1% | 5% |
\u2013\u00a0 other1 | 6,039 | 54 | ||||||
At 31 Dec 2022 | 25,812 | 13,826 |
Basis of valuing HSBC Holdings\u2019 financial assets and liabilities measured at fair value | ||
2022 | 2021 | |
$m | $m | |
Valuation technique using observable inputs: Level 2 | ||
Assets at 31 Dec | ||
\u2013\u00a0 derivatives | 3,801 | 2,811 |
\u2013\u00a0 designated and otherwise mandatorily measured at fair value through profit or loss | 52,322 | 51,408 |
Liabilities at 31 Dec | ||
\u2013\u00a0 designated at fair value | 32,123 | 32,418 |
\u2013\u00a0 derivatives | 6,922 | 1,220 |
Fair values of financial instruments not carried at fair value and bases of valuation \u2013 assets and disposal groups held for sale | |||||
Fair value | |||||
Carrying amount | Quoted market price Level 1 | Observable inputs Level 2 | Significant unobservable inputs Level 3 | Total | |
$m | $m | $m | $m | $m | |
At 31 Dec 2022 | |||||
Assets | |||||
Loans and advances to banks | 253 | \u2014 | 257 | \u2014 | 257 |
Loans and advances to customers | 80,687 | \u2014 | 111 | 78,048 | 78,159 |
Reverse repurchase agreements \u2013 non-trading | 4,646 | \u2014 | 4,646 | \u2014 | 4,646 |
Financial investments \u2013 at amortised cost | 6,165 | 6,042 | \u2014 | \u2014 | 6,042 |
Liabilities | |||||
Deposits by banks | 64 | \u2014 | 64 | \u2014 | 64 |
Customer accounts | 85,274 | \u2014 | 85,303 | \u2014 | 85,303 |
Repurchase agreements \u2013 non-trading | 3,266 | \u2014 | 3,266 | \u2014 | 3,266 |
Debt securities in issue | 12,928 | \u2014 | 12,575 | \u2014 | 12,575 |
Subordinated liabilities | 8 | \u2014 | 7 | \u2014 | 7 |
At 31 Dec 2021 | |||||
Assets | |||||
Loans and advances to banks | 3 | \u2014 | 3 | \u2014 | 3 |
Loans and advances to customers | 3,056 | \u2014 | 363 | 2,808 | 3,171 |
Liabilities | |||||
Deposits by banks | 87 | \u2014 | 87 | \u2014 | 87 |
Customer accounts | 8,750 | \u2014 | 8,750 | \u2014 | 8,750 |
Fair values of HSBC Holdings\u2019 financial instruments not carried at fair value on the balance sheet | ||||
2022 | 2021 | |||
Carrying amount | Fair value1 | Carrying amount | Fair value1 | |
$m | $m | $m | $m | |
Assets at 31 Dec | ||||
Loans and advances to HSBC undertakings | 26,765 | 26,962 | 25,108 | 25,671 |
Financial investments \u2013 at amortised cost | 19,466 | 19,314 | 26,194 | 26,176 |
Liabilities at 31 Dec | ||||
Debt securities in issue | 66,938 | 65,364 | 67,483 | 69,719 |
Subordinated liabilities | 19,727 | 20,644 | 17,059 | 21,066 |
14 | Financial assets designated and otherwise mandatorily measured at fair value through profit or loss |
2022 | 2021 | |||||
Designated at fair value | Mandatorily measured at fair value | Total | Designated at fair value | Mandatorily measured at fair value | Total | |
$m | $m | $m | $m | $m | $m | |
Securities | 3,079 | 38,529 | 41,608 | 2,251 | 42,062 | 44,313 |
\u2013\u00a0 treasury and other eligible bills | 649 | 95 | 744 | 599 | 31 | 630 |
\u2013\u00a0 debt securities | 2,430 | 3,969 | 6,399 | 1,652 | 5,177 | 6,829 |
\u2013\u00a0 equity securities | \u2014 | 34,465 | 34,465 | \u2014 | 36,854 | 36,854 |
Loans and advances to banks and customers | \u2014 | 1,841 | 1,841 | \u2014 | 4,307 | 4,307 |
Other | \u2014 | 1,614 | 1,614 | \u2014 | 1,184 | 1,184 |
At 31 Dec | 3,079 | 41,984 | 45,063 | 2,251 | 47,553 | 49,804 |
15 | Derivatives |
Notional contract amounts and fair values of derivatives by product contract type held by HSBC | ||||||||
Notional contract amount | Fair value \u2013 Assets | Fair value \u2013 Liabilities | ||||||
Trading | Hedging | Trading | Hedging | Total | Trading | Hedging | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Foreign exchange | 8,434,453 | 38,924 | 122,203 | 525 | 122,728 | 123,088 | 166 | 123,254 |
Interest rate | 15,213,232 | 276,589 | 285,438 | 5,066 | 290,504 | 287,877 | 3,501 | 291,378 |
Equities | 570,410 | \u2014 | 9,325 | \u2014 | 9,325 | 9,176 | \u2014 | 9,176 |
Credit | 183,995 | \u2014 | 1,091 | \u2014 | 1,091 | 1,264 | \u2014 | 1,264 |
Commodity and other | 78,413 | \u2014 | 1,485 | \u2014 | 1,485 | 1,679 | \u2014 | 1,679 |
Gross total fair values | 24,480,503 | 315,513 | 419,542 | 5,591 | 425,133 | 423,084 | 3,667 | 426,751 |
Offset (Note 31) | (140,987) | (140,987) | ||||||
At 31 Dec 2022 | 24,480,503 | 315,513 | 419,542 | 5,591 | 284,146 | 423,084 | 3,667 | 285,764 |
Foreign exchange | 7,723,034 | 43,839 | 79,801 | 1,062 | 80,863 | 77,670 | 207 | 77,877 |
Interest rate | 14,470,539 | 162,921 | 151,631 | 1,749 | 153,380 | 146,808 | 966 | 147,774 |
Equities | 659,142 | \u2014 | 12,637 | \u2014 | 12,637 | 14,379 | \u2014 | 14,379 |
Credit | 190,724 | \u2014 | 2,175 | \u2014 | 2,175 | 3,151 | \u2014 | 3,151 |
Commodity and other | 74,159 | \u2014 | 1,205 | \u2014 | 1,205 | 1,261 | \u2014 | 1,261 |
Gross total fair values | 23,117,598 | 206,760 | 247,449 | 2,811 | 250,260 | 243,269 | 1,173 | 244,442 |
Offset (Note 31) | (53,378) | (53,378) | ||||||
At 31 Dec 2021 | 23,117,598 | 206,760 | 247,449 | 2,811 | 196,882 | 243,269 | 1,173 | 191,064 |
HSBC hedging instrument by hedged risk | |||||
Hedging instrument | |||||
Carrying amount | |||||
Notional amount1 | Assets | Liabilities | Balance sheet presentation | Change in fair value2 | |
Hedged risk | $m | $m | $m | $m | |
Interest rate3 | 162,062 | 4,973 | 2,573 | Derivatives | 4,064 |
At 31 Dec 2022 | 162,062 | 4,973 | 2,573 | 4,064 |
Interest rate3 | 90,556 | 1,637 | 1,410 | Derivatives | 1,330 |
At 31 Dec 2021 | 90,556 | 1,637 | 1,410 | 1,330 |
HSBC hedged item by hedged risk | ||||||||
Hedged item | Ineffectiveness | |||||||
Carrying amount | Accumulated fair value hedge adjustments included in carrying amount2 | Change in fair value1 | Recognised in profit and loss | |||||
Assets | Liabilities | Assets | Liabilities | Balance sheet presentation | Profit and loss presentation | |||
Hedged risk | $m | $m | $m | $m | $m | $m | ||
Interest rate3 | 82,792 | (5,100) | Financial investments measured at fair value through other comprehensive income | (8,005) | (59) | Net income from financial instruments held for trading or managed on a fair value basis | ||
3,415 | (210) | Loans and advances to customers | (233) | |||||
519 | (18) | Reverse repos | (17) | |||||
49,180 | (2,006) | Debt securities in issue | 4,138 | |||||
83 | \u2014 | Deposits by banks | (5) | |||||
At 31 Dec 2022 | 86,726 | 49,263 | (5,328) | (2,006) | (4,122) | (59) |
Interest rate3 | 68,059 | 1,199 | Financial assets designated and otherwise mandatorily measured at fair value through other comprehensive income | (1,932) | (36) | Net income from financial instruments held for trading or managed on a fair value basis | ||
2 | (3) | Loans and advances to banks | (3) | |||||
3,066 | 9 | Loans and advances to customers | (41) | |||||
14,428 | 992 | Debt securities in issue | 609 | |||||
86 | 1 | Deposits by banks | 1 | |||||
At 31 Dec 2021 | 71,127 | 14,514 | 1,205 | 993 | (1,366) | (36) |
HSBC Holdings hedging instrument by hedged risk | |||||
Hedging instrument | |||||
Carrying amount | |||||
Notional amount1,4 | Assets | Liabilities | Balance sheet presentation | Change in fair value2 | |
Hedged risk | $m | $m | $m | $m | |
Interest rate3 | 81,873 | 913 | 4,413 | Derivatives | (5,599) |
At 31 Dec 2022 | 81,873 | 913 | 4,413 | (5,599) | |
Interest rate3 | 45,358 | 1,715 | 74 | Derivatives | (1,515) |
At 31 Dec 2021 | 45,358 | 1,715 | 74 | (1,515) |
HSBC Holdings hedged item by hedged risk | ||||||||
Hedged item | Ineffectiveness | |||||||
Carrying amount | Accumulated fair value hedge adjustments included in carrying amount2 | Change in fair value1 | Recognised in profit and loss | |||||
Assets | Liabilities | Assets | Liabilities | Balance sheet presentation | Profit and loss presentation | |||
Hedged risk | $m | $m | $m | $m | $m | $m | ||
Interest rate3 | 68,223 | (3,829) | Debt securities in issue | 6,258 | (34) | Net income from financial instruments held for trading or managed on a fair value basis | ||
6,812 | (789) | Loans and advances to banks | (693) | |||||
At 31 Dec 2022 | 6,812 | 68,223 | (789) | (3,829) | 5,565 | (34) | ||
Interest rate3 | 39,154 | 1,408 | Debt securities in issue | 1,599 | (21) | Net income from financial instruments held for trading or managed on a fair value basis | ||
7,863 | (104) | Loans and advances to banks | (104) | |||||
At 31 Dec 2021 | 7,863 | 39,154 | (104) | 1,408 | 1,495 | (21) |
Reconciliation of equity and analysis of other comprehensive income by risk type | ||
Interest rate | Foreign currency | |
$m | $m | |
Cash flow hedging reserve at 1 Jan 2022 | 8 | (205) |
Fair value gains/(losses) | (4,973) | 659 |
Fair value (gains)/losses reclassified from the cash flow hedge reserve to the income statement in respect of: | ||
Hedged items that have affected profit or loss1 | 325 | (926) |
Income taxes | 1,123 | 28 |
Others | 130 | 23 |
Cash flow hedging reserve at 31 Dec 2022 | (3,387) | (421) |
Hedging instrument impacted by Ibor reform | |||||||
Hedging instrument | |||||||
Impacted by Ibor reform | Not impacted by Ibor reform | Notional amount1 | |||||
\u20ac2 | \u00a3 | $ | Other3 | Total | |||
$m | $m | $m | $m | $m | $m | $m | |
Fair value hedges | 12,756 | \u2014 | 2,015 | 12,643 | 27,414 | 134,648 | 162,062 |
Cash flow hedges | 8,865 | \u2014 | \u2014 | 27,830 | 36,695 | 77,832 | 114,527 |
At 31 Dec 2022 | 21,621 | \u2014 | 2,015 | 40,473 | 64,109 | 212,480 | 276,589 |
Fair value hedges | 6,178 | \u2014 | 18,525 | 6,615 | 31,318 | 59,238 | 90,556 |
Cash flow hedges | 7,954 | \u2014 | 100 | 8,632 | 16,686 | 55,679 | 72,365 |
At 31 Dec 2021 | 14,132 | \u2014 | 18,625 | 15,247 | 48,004 | 114,917 | 162,921 |
Hedging instrument impacted by Ibor reform held by HSBC Holdings | |||||||
Hedging instrument | |||||||
Impacted by Ibor reform | Not impacted by Ibor reform | Notional amount | |||||
\u20ac | \u00a3 | $ | Other | Total | |||
$m | $m | $m | $m | $m | $m | $m | |
Fair value hedges | 15,210 | \u2014 | 2,000 | 1,336 | 18,546 | 63,327 | 81,873 |
At 31 Dec 2022 | 15,210 | \u2014 | 2,000 | 1,336 | 18,546 | 63,327 | 81,873 |
Fair value hedges | 9,944 | \u2014 | 20,035 | 1,458 | 31,437 | 13,921 | 45,358 |
At 31 Dec 2021 | 9,944 | \u2014 | 20,035 | 1,458 | 31,437 | 13,921 | 45,358 |
16 | Financial investments |
Carrying amount of financial investments | ||
2022 | 2021 | |
$m | $m | |
Financial investments measured at fair value through other comprehensive income | 256,817 | 348,972 |
\u2013\u00a0 treasury and other eligible bills | 86,749 | 100,158 |
\u2013\u00a0 debt securities | 168,264 | 246,998 |
\u2013\u00a0 equity securities | 1,696 | 1,770 |
\u2013\u00a0 other instruments | 108 | 46 |
Debt instruments measured at amortised cost | 168,747 | 97,302 |
\u2013\u00a0 treasury and other eligible bills | 35,282 | 21,634 |
\u2013\u00a0 debt securities | 133,465 | 75,668 |
At 31 Dec | 425,564 | 446,274 |
Equity instruments measured at fair value through other comprehensive income | ||
Fair value | Dividends recognised | |
Type of equity instruments | $m | $m |
Investments required by central institutions | 690 | 24 |
Business facilitation | 954 | 28 |
Others | 52 | 2 |
At 31 Dec 2022 | 1,696 | 54 |
Investments required by central institutions | 766 | 17 |
Business facilitation | 954 | 24 |
Others | 50 | 3 |
At 31 Dec 2021 | 1,770 | 44 |
HSBC Holdings carrying amount of financial investments | ||
2022 | 2021 | |
$m | $m | |
Debt instruments measured at amortised cost | ||
\u2013\u00a0 treasury and other eligible bills | 12,796 | 19,508 |
\u2013\u00a0 debt securities | 6,670 | 6,686 |
At 31 Dec | 19,466 | 26,194 |
25 | Financial liabilities designated at fair value |
HSBC | ||
2022 | 2021 | |
$m | $m | |
Deposits by banks and customer accounts1 | 19,171 | 16,703 |
Liabilities to customers under investment contracts | 5,380 | 5,938 |
Debt securities in issue (Note 26) | 93,140 | 112,761 |
Subordinated liabilities (Note 29) | 9,636 | 10,100 |
At 31 Dec | 127,327 | 145,502 |
HSBC Holdings | ||
2022 | 2021 | |
$m | $m | |
Debt securities in issue (Note 26) | 25,423 | 26,818 |
Subordinated liabilities (Note 29) | 6,700 | 5,600 |
At 31 Dec | 32,123 | 32,418 |
31 | Offsetting of financial assets and financial liabilities |
Offsetting of financial assets and financial liabilities | ||||||||
Amounts subject to enforceable netting arrangements | Amounts not subject to enforceable netting arrangements2 | Total | ||||||
Amounts not set off in the balance sheet | ||||||||
Gross amounts | Amounts offset | Net amounts in the balance sheet | Financial instruments, including non-cash collateral1 | Cash collateral | Net amount | |||
$m | $m | $m | $m | $m | $m | $m | $m | |
Financial assets | ||||||||
Derivatives (Note 15)3 | 419,006 | (140,987) | 278,019 | (236,373) | (36,486) | 5,160 | 6,127 | 284,146 |
Reverse repos, stock borrowing and similar agreements classified as:4 | ||||||||
\u2013\u00a0 trading assets | 24,372 | (236) | 24,136 | (24,106) | (29) | 1 | 1,367 | 25,503 |
\u2013\u00a0 non-trading assets | 335,193 | (102,888) | 232,305 | (231,432) | (449) | 424 | 21,689 | 253,994 |
Loans and advances to customers5 | 28,337 | (12,384) | 15,953 | (13,166) | \u2014 | 2,787 | 267 | 16,220 |
At 31 Dec 2022 | 806,908 | (256,495) | 550,413 | (505,077) | (36,964) | 8,372 | 29,450 | 579,863 |
Derivatives (Note 15)3 | 244,694 | (53,378) | 191,316 | (151,304) | (36,581) | 3,431 | 5,566 | 196,882 |
Reverse repos, stock borrowing and similar agreements classified as:4 | ||||||||
\u2013\u00a0 trading assets | 21,568 | (222) | 21,346 | (21,272) | (71) | 3 | 1,729 | 23,075 |
\u2013\u00a0 non-trading assets | 353,066 | (136,932) | 216,134 | (215,769) | (165) | 200 | 25,731 | 241,865 |
Loans and advances to customers5 | 27,045 | (10,919) | 16,126 | (13,065) | \u2014 | 3,061 | 327 | 16,453 |
At 31 Dec 2021 | 646,373 | (201,451) | 444,922 | (401,410) | (36,817) | 6,695 | 33,353 | 478,275 |
Financial liabilities | ||||||||
Derivatives (Note 15)3 | 419,994 | (140,987) | 279,007 | (239,235) | (29,276) | 10,496 | 6,757 | 285,764 |
Repos, stock lending and similar agreements classified as:4 | ||||||||
\u2013\u00a0 trading liabilities | 20,027 | (236) | 19,791 | (19,790) | \u2014 | 1 | 4 | 19,795 |
\u2013\u00a0 non-trading liabilities | 206,827 | (102,888) | 103,939 | (103,296) | (249) | 394 | 23,808 | 127,747 |
Customer accounts6 | 37,164 | (12,384) | 24,780 | (13,166) | \u2014 | 11,614 | 14 | 24,794 |
At 31 Dec 2022 | 684,012 | (256,495) | 427,517 | (375,487) | (29,525) | 22,505 | 30,583 | 458,100 |
Derivatives (Note 15)3 | 239,597 | (53,378) | 186,219 | (163,359) | (18,225) | 4,635 | 4,845 | 191,064 |
Repos, stock lending and similar agreements classified as:4 | ||||||||
\u2013\u00a0 trading liabilities | 13,540 | (222) | 13,318 | (13,318) | \u2014 | \u2014 | 17 | 13,335 |
\u2013\u00a0 non-trading liabilities | 235,042 | (136,932) | 98,110 | (97,816) | (203) | 91 | 28,560 | 126,670 |
Customer accounts6 | 40,875 | (10,919) | 29,956 | (13,065) | \u2014 | 16,891 | 17 | 29,973 |
At 31 Dec 2021 | 529,054 | (201,451) | 327,603 | (287,558) | (18,428) | 21,617 | 33,439 | 361,042 |
11 | Trading assets |
2022 | 2021 | |
$m | $m | |
Treasury and other eligible bills | 22,897 | 23,110 |
Debt securities | 78,126 | 89,944 |
Equity securities | 88,026 | 109,614 |
Trading securities | 189,049 | 222,668 |
Loans and advances to banks1 | 8,769 | 7,767 |
Loans and advances to customers1 | 20,275 | 18,407 |
Year ended 31 Dec | 218,093 | 248,842 |
12 | Fair values of financial instruments carried at fair value |
Financial instruments carried at fair value and bases of valuation | ||||||||
2022 | 2021 | |||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Recurring fair value measurements at 31 Dec | ||||||||
Assets | ||||||||
Trading assets | 148,592 | 64,684 | 4,817 | 218,093 | 180,423 | 65,757 | 2,662 | 248,842 |
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | 15,978 | 13,019 | 16,066 | 45,063 | 17,937 | 17,629 | 14,238 | 49,804 |
Derivatives | 2,917 | 279,265 | 1,964 | 284,146 | 2,783 | 191,621 | 2,478 | 196,882 |
Financial investments | 182,231 | 71,621 | 2,965 | 256,817 | 247,745 | 97,838 | 3,389 | 348,972 |
Liabilities | ||||||||
Trading liabilities | 44,787 | 27,092 | 474 | 72,353 | 63,437 | 20,682 | 785 | 84,904 |
Financial liabilities designated at fair value | 1,130 | 115,765 | 10,432 | 127,327 | 1,379 | 136,243 | 7,880 | 145,502 |
Derivatives | 2,400 | 280,444 | 2,920 | 285,764 | 1,686 | 186,290 | 3,088 | 191,064 |
Financial instruments measured at fair value using a valuation technique with significant unobservable inputs \u2013 Level 3 | |||||||||
Assets | Liabilities | ||||||||
Financial investments | Trading assets | Designated and otherwise mandatorily measured at fair value through profit or loss | Derivatives | Total | Trading liabilities | Designated at fair value | Derivatives | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | $m | |
Private equity including strategic investments | 647 | 19 | 15,652 | \u2014 | 16,318 | 92 | \u2014 | \u2014 | 92 |
Asset-backed securities | 438 | 208 | 95 | \u2014 | 741 | \u2014 | \u2014 | \u2014 | \u2014 |
Structured notes | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 10,432 | \u2014 | 10,432 |
Other derivatives | \u2014 | \u2014 | \u2014 | 1,964 | 1,964 | \u2014 | \u2014 | 2,920 | 2,920 |
Other portfolios | 1,880 | 4,590 | 319 | \u2014 | 6,789 | 382 | \u2014 | \u2014 | 382 |
At 31 Dec 2022 | 2,965 | 4,817 | 16,066 | 1,964 | 25,812 | 474 | 10,432 | 2,920 | 13,826 |
Private equity including strategic investments | 544 | 2 | 13,732 | \u2014 | 14,278 | 9 | \u2014 | \u2014 | 9 |
Asset-backed securities | 1,008 | 132 | 1 | \u2014 | 1,141 | \u2014 | \u2014 | \u2014 | \u2014 |
Structured notes | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 7,879 | \u2014 | 7,879 |
Other derivatives | \u2014 | \u2014 | \u2014 | 2,478 | 2,478 | \u2014 | \u2014 | 3,088 | 3,088 |
Other portfolios | 1,837 | 2,528 | 505 | \u2014 | 4,870 | 776 | 1 | \u2014 | 777 |
At 31 Dec 2021 | 3,389 | 2,662 | 14,238 | 2,478 | 22,767 | 785 | 7,880 | 3,088 | 11,753 |
At 1 Jan 2021 | 3,654 | 2,499 | 11,477 | 2,670 | 162 | 5,306 | 4,188 |
Total gains/(losses) recognised in profit or\u00a0loss | (10) | (378) | 1,753 | 2,237 | 16 | (836) | 2,583 |
\u2013\u00a0 net income/(losses) from financial instruments held for trading or managed on a fair value basis | \u2014 | (378) | \u2014 | 2,237 | 16 | \u2014 | 2,583 |
\u2013\u00a0 changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | \u2014 | \u2014 | 1,753 | \u2014 | \u2014 | (836) | \u2014 |
\u2013\u00a0 gains less losses from financial investments at fair value through other comprehensive income | (10) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Total gains/(losses) recognised in other comprehensive income (\u2018OCI\u2019)1 | (521) | (18) | (285) | (27) | (8) | (61) | (26) |
\u2013\u00a0 financial investments: fair value gains/ (losses) | (428) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
\u2013\u00a0 exchange differences | (93) | (18) | (285) | (27) | (8) | (61) | (26) |
Purchases | 1,025 | 1,988 | 3,692 | \u2014 | 1,014 | 1 | \u2014 |
New issuances | \u2014 | \u2014 | \u2014 | \u2014 | 35 | 5,969 | \u2014 |
Sales | (580) | (473) | (1,216) | \u2014 | (4) | (27) | \u2014 |
Settlements | (336) | (747) | (1,049) | (2,347) | (681) | (2,922) | (3,962) |
Transfers out | (383) | (1,027) | (184) | (418) | (7) | (704) | (734) |
Transfers in | 540 | 818 | 50 | 363 | 258 | 1,154 | 1,039 |
At 31 Dec 2021 | 3,389 | 2,662 | 14,238 | 2,478 | 785 | 7,880 | 3,088 |
Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 31\u00a0Dec 2020 | \u2014 | (309) | 1,509 | 1,298 | \u2014 | 166 | (969) |
\u2013\u00a0 net income/(losses) from financial instruments held for trading or managed on a fair value basis | \u2014 | (309) | \u2014 | 1,298 | \u2014 | \u2014 | (969) |
\u2013\u00a0 changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | \u2014 | \u2014 | 1,509 | \u2014 | \u2014 | 166 | \u2014 |
Quantitative information about significant unobservable inputs in Level 3 valuations | ||||||||
Fair value | 2022 | 2021 | ||||||
Assets | Liabilities | Valuation techniques | Key unobservable inputs | Full range of inputs | Full range of inputs | |||
$m | $m | Lower | Higher | Lower | Higher | |||
Private equity including strategic investments | 16,318 | 92 | See below | See below | ||||
Asset-backed securities | 741 | \u2014 | ||||||
\u2013\u00a0 collateralised loan/debt obligation | 188 | \u2014 | Market proxy | Bid quotes | \u2014 | 92 | \u2014 | 100 |
\u2013\u00a0 other ABSs | 553 | \u2014 | Market proxy | Bid quotes | \u2014 | 99 | \u2014 | 100 |
Structured notes | \u2014 | 10,432 | ||||||
\u2013\u00a0 equity-linked notes | \u2014 | 6,833 | Model \u2013 Option model | Equity volatility | 6% | 142% | 6% | 124% |
Model \u2013 Option model | Equity correlation | 32% | 99% | 22% | 99% | |||
\u2013\u00a0 Foreign exchange-linked notes | \u2014 | 2,694 | Model \u2013 Option model | Foreign exchange volatility | 3% | 37% | 1% | 99% |
\u2013\u00a0 other | \u2014 | 905 | ||||||
Derivatives | 1,964 | 2,920 | \u00a0 | \u00a0 | ||||
\u2013\u00a0 interest rate derivatives | 560 | 710 | \u00a0 | \u00a0 | ||||
\u00a0 securitisation swaps | 259 | 209 | Model \u2013 Discounted cash flow | Prepayment rate | 5% | 10% | 5% | 10% |
\u00a0 long-dated swaptions | 53 | 67 | Model \u2013 Option model | Interest rate volatility | 8% | 53% | 15% | 35% |
\u00a0 other | 248 | 434 | ||||||
\u2013\u00a0 Foreign exchange derivatives | 445 | 304 | ||||||
\u00a0 Foreign exchange options | 404 | 274 | Model \u2013 Option model | Foreign exchange volatility | 1% | 46% | 1% | 99% |
\u00a0 other | 41 | 30 | ||||||
\u2013\u00a0 equity derivatives | 850 | 1,658 | ||||||
\u00a0 long-dated single stock options | 415 | 502 | Model \u2013 Option model | Equity volatility | 7% | 153% | 4% | 138% |
\u00a0 other | 435 | 1,156 | ||||||
\u2013\u00a0 credit derivatives | 109 | 248 | ||||||
Other portfolios | 6,789 | 382 | ||||||
\u2013\u00a0 repurchase agreements | 750 | 328 | Model \u2013 Discounted cash flow | Interest rate curve | 1% | 9% | 1% | 5% |
\u2013\u00a0 other1 | 6,039 | 54 | ||||||
At 31 Dec 2022 | 25,812 | 13,826 |
Basis of valuing HSBC Holdings\u2019 financial assets and liabilities measured at fair value | ||
2022 | 2021 | |
$m | $m | |
Valuation technique using observable inputs: Level 2 | ||
Assets at 31 Dec | ||
\u2013\u00a0 derivatives | 3,801 | 2,811 |
\u2013\u00a0 designated and otherwise mandatorily measured at fair value through profit or loss | 52,322 | 51,408 |
Liabilities at 31 Dec | ||
\u2013\u00a0 designated at fair value | 32,123 | 32,418 |
\u2013\u00a0 derivatives | 6,922 | 1,220 |
Fair values of financial instruments not carried at fair value and bases of valuation \u2013 assets and disposal groups held for sale | |||||
Fair value | |||||
Carrying amount | Quoted market price Level 1 | Observable inputs Level 2 | Significant unobservable inputs Level 3 | Total | |
$m | $m | $m | $m | $m | |
At 31 Dec 2022 | |||||
Assets | |||||
Loans and advances to banks | 253 | \u2014 | 257 | \u2014 | 257 |
Loans and advances to customers | 80,687 | \u2014 | 111 | 78,048 | 78,159 |
Reverse repurchase agreements \u2013 non-trading | 4,646 | \u2014 | 4,646 | \u2014 | 4,646 |
Financial investments \u2013 at amortised cost | 6,165 | 6,042 | \u2014 | \u2014 | 6,042 |
Liabilities | |||||
Deposits by banks | 64 | \u2014 | 64 | \u2014 | 64 |
Customer accounts | 85,274 | \u2014 | 85,303 | \u2014 | 85,303 |
Repurchase agreements \u2013 non-trading | 3,266 | \u2014 | 3,266 | \u2014 | 3,266 |
Debt securities in issue | 12,928 | \u2014 | 12,575 | \u2014 | 12,575 |
Subordinated liabilities | 8 | \u2014 | 7 | \u2014 | 7 |
At 31 Dec 2021 | |||||
Assets | |||||
Loans and advances to banks | 3 | \u2014 | 3 | \u2014 | 3 |
Loans and advances to customers | 3,056 | \u2014 | 363 | 2,808 | 3,171 |
Liabilities | |||||
Deposits by banks | 87 | \u2014 | 87 | \u2014 | 87 |
Customer accounts | 8,750 | \u2014 | 8,750 | \u2014 | 8,750 |
Fair values of HSBC Holdings\u2019 financial instruments not carried at fair value on the balance sheet | ||||
2022 | 2021 | |||
Carrying amount | Fair value1 | Carrying amount | Fair value1 | |
$m | $m | $m | $m | |
Assets at 31 Dec | ||||
Loans and advances to HSBC undertakings | 26,765 | 26,962 | 25,108 | 25,671 |
Financial investments \u2013 at amortised cost | 19,466 | 19,314 | 26,194 | 26,176 |
Liabilities at 31 Dec | ||||
Debt securities in issue | 66,938 | 65,364 | 67,483 | 69,719 |
Subordinated liabilities | 19,727 | 20,644 | 17,059 | 21,066 |
14 | Financial assets designated and otherwise mandatorily measured at fair value through profit or loss |
2022 | 2021 | |||||
Designated at fair value | Mandatorily measured at fair value | Total | Designated at fair value | Mandatorily measured at fair value | Total | |
$m | $m | $m | $m | $m | $m | |
Securities | 3,079 | 38,529 | 41,608 | 2,251 | 42,062 | 44,313 |
\u2013\u00a0 treasury and other eligible bills | 649 | 95 | 744 | 599 | 31 | 630 |
\u2013\u00a0 debt securities | 2,430 | 3,969 | 6,399 | 1,652 | 5,177 | 6,829 |
\u2013\u00a0 equity securities | \u2014 | 34,465 | 34,465 | \u2014 | 36,854 | 36,854 |
Loans and advances to banks and customers | \u2014 | 1,841 | 1,841 | \u2014 | 4,307 | 4,307 |
Other | \u2014 | 1,614 | 1,614 | \u2014 | 1,184 | 1,184 |
At 31 Dec | 3,079 | 41,984 | 45,063 | 2,251 | 47,553 | 49,804 |
14 | Financial assets designated and otherwise mandatorily measured at fair value through profit or loss |
2022 | 2021 | |||||
Designated at fair value | Mandatorily measured at fair value | Total | Designated at fair value | Mandatorily measured at fair value | Total | |
$m | $m | $m | $m | $m | $m | |
Securities | 3,079 | 38,529 | 41,608 | 2,251 | 42,062 | 44,313 |
\u2013\u00a0 treasury and other eligible bills | 649 | 95 | 744 | 599 | 31 | 630 |
\u2013\u00a0 debt securities | 2,430 | 3,969 | 6,399 | 1,652 | 5,177 | 6,829 |
\u2013\u00a0 equity securities | \u2014 | 34,465 | 34,465 | \u2014 | 36,854 | 36,854 |
Loans and advances to banks and customers | \u2014 | 1,841 | 1,841 | \u2014 | 4,307 | 4,307 |
Other | \u2014 | 1,614 | 1,614 | \u2014 | 1,184 | 1,184 |
At 31 Dec | 3,079 | 41,984 | 45,063 | 2,251 | 47,553 | 49,804 |
Carrying amount of financial investments | ||
2022 | 2021 | |
$m | $m | |
Financial investments measured at fair value through other comprehensive income | 256,817 | 348,972 |
\u2013\u00a0 treasury and other eligible bills | 86,749 | 100,158 |
\u2013\u00a0 debt securities | 168,264 | 246,998 |
\u2013\u00a0 equity securities | 1,696 | 1,770 |
\u2013\u00a0 other instruments | 108 | 46 |
Debt instruments measured at amortised cost | 168,747 | 97,302 |
\u2013\u00a0 treasury and other eligible bills | 35,282 | 21,634 |
\u2013\u00a0 debt securities | 133,465 | 75,668 |
At 31 Dec | 425,564 | 446,274 |
Weighted average yields of investment debt securities | ||||
Up to 1 year | 1 to 5 years | 5 to 10 years | Over 10 years | |
Yield | Yield | Yield | Yield | |
% | % | % | % | |
Debt securities measured at fair value through other comprehensive income | ||||
US Treasury | 1.0 | 1.3 | 1.3 | 2.3 |
US Government agencies | 4.7 | 0.9 | 3.2 | 2.5 |
US Government-sponsored agencies | 1.1 | 1.7 | 2.1 | 1.7 |
UK Government | 0.5 | 0.8 | 0.4 | 1.3 |
Hong Kong Government | 1.3 | 1.6 | 1.7 | \u2014 |
Other governments | 2.3 | 3.0 | 2.9 | 3.7 |
Asset-backed securities | 6.7 | 0.2 | 2.7 | 2.4 |
Corporate debt and other securities | 3.4 | 1.8 | 2.5 | 2.2 |
Debt securities measured at amortised cost | ||||
US Treasury | 10.2 | 3.4 | 3.8 | 2.8 |
US Government agencies | \u2014 | 2.9 | 7.2 | 3.2 |
US Government-sponsored agencies | 2.9 | 2.4 | 3.2 | 3.3 |
UK Government | \u2014 | \u2014 | 0.7 | 0.9 |
Hong Kong Government | 1.9 | 3.8 | 2.2 | 4.5 |
Other governments | 2.1 | 4.2 | 3.6 | 3.8 |
Asset-backed securities | 4.0 | 4.7 | \u2014 | 7.7 |
Corporate debt and other securities | 3.2 | 3.2 | 3.3 | 4.0 |
HSBC Holdings carrying amount of financial investments | ||
2022 | 2021 | |
$m | $m | |
Debt instruments measured at amortised cost | ||
\u2013\u00a0 treasury and other eligible bills | 12,796 | 19,508 |
\u2013\u00a0 debt securities | 6,670 | 6,686 |
At 31 Dec | 19,466 | 26,194 |
Interest rate3 | 90,556 | 1,637 | 1,410 | Derivatives | 1,330 |
At 31 Dec 2021 | 90,556 | 1,637 | 1,410 | 1,330 |
HSBC hedged item by hedged risk | ||||||||
Hedged item | Ineffectiveness | |||||||
Carrying amount | Accumulated fair value hedge adjustments included in carrying amount2 | Change in fair value1 | Recognised in profit and loss | |||||
Assets | Liabilities | Assets | Liabilities | Balance sheet presentation | Profit and loss presentation | |||
Hedged risk | $m | $m | $m | $m | $m | $m | ||
Interest rate3 | 82,792 | (5,100) | Financial investments measured at fair value through other comprehensive income | (8,005) | (59) | Net income from financial instruments held for trading or managed on a fair value basis | ||
3,415 | (210) | Loans and advances to customers | (233) | |||||
519 | (18) | Reverse repos | (17) | |||||
49,180 | (2,006) | Debt securities in issue | 4,138 | |||||
83 | \u2014 | Deposits by banks | (5) | |||||
At 31 Dec 2022 | 86,726 | 49,263 | (5,328) | (2,006) | (4,122) | (59) |
Interest rate3 | 68,059 | 1,199 | Financial assets designated and otherwise mandatorily measured at fair value through other comprehensive income | (1,932) | (36) | Net income from financial instruments held for trading or managed on a fair value basis | ||
2 | (3) | Loans and advances to banks | (3) | |||||
3,066 | 9 | Loans and advances to customers | (41) | |||||
14,428 | 992 | Debt securities in issue | 609 | |||||
86 | 1 | Deposits by banks | 1 | |||||
At 31 Dec 2021 | 71,127 | 14,514 | 1,205 | 993 | (1,366) | (36) |
HSBC Holdings hedging instrument by hedged risk | |||||
Hedging instrument | |||||
Carrying amount | |||||
Notional amount1,4 | Assets | Liabilities | Balance sheet presentation | Change in fair value2 | |
Hedged risk | $m | $m | $m | $m | |
Interest rate3 | 81,873 | 913 | 4,413 | Derivatives | (5,599) |
At 31 Dec 2022 | 81,873 | 913 | 4,413 | (5,599) | |
Interest rate3 | 45,358 | 1,715 | 74 | Derivatives | (1,515) |
At 31 Dec 2021 | 45,358 | 1,715 | 74 | (1,515) |
HSBC Holdings hedged item by hedged risk | ||||||||
Hedged item | Ineffectiveness | |||||||
Carrying amount | Accumulated fair value hedge adjustments included in carrying amount2 | Change in fair value1 | Recognised in profit and loss | |||||
Assets | Liabilities | Assets | Liabilities | Balance sheet presentation | Profit and loss presentation | |||
Hedged risk | $m | $m | $m | $m | $m | $m | ||
Interest rate3 | 68,223 | (3,829) | Debt securities in issue | 6,258 | (34) | Net income from financial instruments held for trading or managed on a fair value basis | ||
6,812 | (789) | Loans and advances to banks | (693) | |||||
At 31 Dec 2022 | 6,812 | 68,223 | (789) | (3,829) | 5,565 | (34) | ||
Interest rate3 | 39,154 | 1,408 | Debt securities in issue | 1,599 | (21) | Net income from financial instruments held for trading or managed on a fair value basis | ||
7,863 | (104) | Loans and advances to banks | (104) | |||||
At 31 Dec 2021 | 7,863 | 39,154 | (104) | 1,408 | 1,495 | (21) |
Reconciliation of equity and analysis of other comprehensive income by risk type | ||
Interest rate | Foreign currency | |
$m | $m | |
Cash flow hedging reserve at 1 Jan 2022 | 8 | (205) |
Fair value gains/(losses) | (4,973) | 659 |
Fair value (gains)/losses reclassified from the cash flow hedge reserve to the income statement in respect of: | ||
Hedged items that have affected profit or loss1 | 325 | (926) |
Income taxes | 1,123 | 28 |
Others | 130 | 23 |
Cash flow hedging reserve at 31 Dec 2022 | (3,387) | (421) |
Hedging instrument impacted by Ibor reform | |||||||
Hedging instrument | |||||||
Impacted by Ibor reform | Not impacted by Ibor reform | Notional amount1 | |||||
\u20ac2 | \u00a3 | $ | Other3 | Total | |||
$m | $m | $m | $m | $m | $m | $m | |
Fair value hedges | 12,756 | \u2014 | 2,015 | 12,643 | 27,414 | 134,648 | 162,062 |
Cash flow hedges | 8,865 | \u2014 | \u2014 | 27,830 | 36,695 | 77,832 | 114,527 |
At 31 Dec 2022 | 21,621 | \u2014 | 2,015 | 40,473 | 64,109 | 212,480 | 276,589 |
Fair value hedges | 6,178 | \u2014 | 18,525 | 6,615 | 31,318 | 59,238 | 90,556 |
Cash flow hedges | 7,954 | \u2014 | 100 | 8,632 | 16,686 | 55,679 | 72,365 |
At 31 Dec 2021 | 14,132 | \u2014 | 18,625 | 15,247 | 48,004 | 114,917 | 162,921 |
Hedging instrument impacted by Ibor reform held by HSBC Holdings | |||||||
Hedging instrument | |||||||
Impacted by Ibor reform | Not impacted by Ibor reform | Notional amount | |||||
\u20ac | \u00a3 | $ | Other | Total | |||
$m | $m | $m | $m | $m | $m | $m | |
Fair value hedges | 15,210 | \u2014 | 2,000 | 1,336 | 18,546 | 63,327 | 81,873 |
At 31 Dec 2022 | 15,210 | \u2014 | 2,000 | 1,336 | 18,546 | 63,327 | 81,873 |
Fair value hedges | 9,944 | \u2014 | 20,035 | 1,458 | 31,437 | 13,921 | 45,358 |
At 31 Dec 2021 | 9,944 | \u2014 | 20,035 | 1,458 | 31,437 | 13,921 | 45,358 |
17 | Assets pledged, collateral received and assets transferred |
Financial assets pledged as collateral | ||
2022 | 2021 | |
$m | $m | |
Treasury bills and other eligible securities | 18,364 | 9,613 |
Loans and advances to banks | 10,198 | 412 |
Loans and advances to customers | 27,627 | 55,370 |
Debt securities | 60,542 | 66,629 |
Equity securities | 26,902 | 34,472 |
Other | 67,576 | 45,396 |
Assets pledged at 31 Dec | 211,209 | 211,892 |
HSBC Bank (General Partner) Limited | 100.00 | 79 | |
HSBC Bank (Mauritius) Limited | 100.00 | 58 | |
HSBC Bank (RR) (Limited Liability Company) | N/A | 0, 13, 59 | |
HSBC Bank (Singapore) Limited | 100.00 | 20 | |
HSBC Bank (Taiwan) Limited | 100.00 | 60 | |
HSBC Bank (Uruguay) S.A. | 100.00 | 61 | |
HSBC Bank (Vietnam) Ltd. | 100.00 | 62 | |
HSBC Bank A.S. | 100.00 | (99.99) | 63 |
HSBC Bank Argentina S.A. | 99.99 | 51 | |
HSBC Bank Armenia cjsc | 100.00 | 64 | |
HSBC Bank Australia Limited | 100.00 | 55 | |
HSBC Bank Bermuda Limited | 100.00 | 23 | |
HSBC Bank Canada | 100.00 | 65 | |
HSBC Bank Capital Funding (Sterling 1) LP | N/A | 0, 79 | |
HSBC Bank Capital Funding (Sterling 2) LP | N/A | 0, 79 | |
HSBC Bank Egypt S.A.E | 94.54 | 66 | |
HSBC Bank Malaysia Berhad | 100.00 | 49 | |
HSBC Bank Malta p.l.c. | 70.03 | 67 | |
HSBC Bank Middle East Limited | 100.00 | 68 | |
HSBC Bank Middle East Limited Representative Office Morocco SARL (In Liquidation) | 100.00 | 69 | |
HSBC Bank Oman S.A.O.G. | 51.00 | 70 | |
HSBC Bank Pension Trust (UK) Limited | 100.00 | 18 | |
HSBC Bank plc | 100.00 | 2, 18 | |
HSBC Bank USA, National Association | 100.00 | 71 | |
HSBC Branch Nominee (UK) Limited | 100.00 | 17 | |
HSBC Brasil Holding S.A. | 100.00 | 21 | |
HSBC Broking Forex (Asia) Limited | 100.00 | 46 | |
HSBC Broking Futures (Asia) Limited | 100.00 | 46 | |
HSBC Broking Futures (Hong Kong) Limited | 100.00 | 46 | |
HSBC Broking Securities (Asia) Limited | 100.00 | 46 | |
HSBC Broking Securities (Hong Kong) Limited | 100.00 | 46 | |
HSBC Broking Services (Asia) Limited | 100.00 | 46 | |
HSBC Canadian Covered Bond (Legislative) GP Inc. | 100.00 | 72 | |
HSBC Canadian Covered Bond (Legislative) Guarantor Limited Partnership | N/A | 0, 72 | |
HSBC Capital (USA), Inc. | 100.00 | 15 | |
HSBC Capital Funding (Dollar 1) L.P. | N/A | 79 | |
HSBC Card Services Inc. | 100.00 | 15 | |
HSBC Casa de Bolsa, S.A. de C.V., Grupo | 100.00 | (99.99) | 16 |
HSBC Cayman Limited | 100.00 | 73 | |
HSBC Cayman Services Limited | 100.00 | 73 | |
HSBC City Funding Holdings | 100.00 | 18 | |
HSBC Client Holdings Nominee (UK) Limited | 100.00 | 18 | |
HSBC Client Nominee (Jersey) Limited | 100.00 | 74 | |
HSBC Columbia Funding, LLC | N/A | 0, 15 | |
HSBC Continental Europe | 99.99 | 35 | |
HSBC Corporate Advisory (Malaysia) Sdn Bhd | 100.00 | 49 | |
HSBC Corporate Finance (Hong Kong) Limited | 100.00 | 46 | |
HSBC Corporate Secretary (UK) Limited | 100.00 | 2, 18 | |
HSBC Corporate Trustee Company (UK) Limited | 100.00 | 18 | |
HSBC Custody Nominees (Australia) Limited | 100.00 | 55 | |
HSBC Custody Services (Guernsey) Limited | 100.00 | 22 | |
HSBC Daisy Investments (Mauritius) Limited | 100.00 | 75 | |
HSBC Diversified Loan Fund General Partner Sarl | N/A | 76 | |
HSBC Electronic Data Processing (Guangdong) Limited | 100.00 | 12, 77 | |
HSBC Electronic Data Processing (Malaysia) Sdn Bhd | 100.00 | 78 | |
HSBC Electronic Data Processing (Philippines), Inc. | 99.99 | 79 | |
HSBC Electronic Data Processing India Private Limited | 100.00 | 80 |
HSBC Infrastructure Debt GP 1 S.\u00e0 r.l. | N/A | 0, 93 | |
HSBC Infrastructure Debt GP 2 S.\u00e0 r.l. | N/A | 0, 93 | |
HSBC Infrastructure Limited | 100.00 | 18 | |
HSBC Institutional Trust Services (Asia) | 100.00 | 46 | |
HSBC Institutional Trust Services (Bermuda) Limited | 100.00 | 23 | |
HSBC Institutional Trust Services (Mauritius) Limited | 100.00 | 94 | |
HSBC Institutional Trust Services (Singapore) Limited | 100.00 | 20 | |
HSBC Insurance (Asia) Limited | 100.00 | 95 | |
HSBC Insurance (Asia-Pacific) Holdings Limited | 100.00 | 46 | |
HSBC Insurance (Bermuda) Limited | 100.00 | 23 | |
HSBC Insurance (Singapore) Pte. Limited | 100.00 | 20 | |
HSBC Insurance Agency (USA) Inc. | 100.00 | 91 | |
HSBC Insurance Brokerage Company Limited | 100.00 | 1, 96 | |
HSBC Insurance Brokers Greater China Limited | 100.00 | 1, 46 | |
HSBC Insurance Holdings Limited | 100.00 | 2, 18 | |
HSBC Insurance SAC 1 (Bermuda) Limited | 100.00 | 23 | |
HSBC Insurance SAC 2 (Bermuda) Limited | 100.00 | 1, 23 | |
HSBC Insurance Services Holdings Limited | 100.00 | 18 | |
HSBC International Finance Corporation (Delaware) | 100.00 | 97 | |
HSBC International Trustee (BVI) Limited | 100.00 | 98 | |
HSBC International Trustee (Holdings) Pte. Limited | 100.00 | 20 | |
HSBC International Trustee Limited | 100.00 | 99 | |
HSBC Inversiones S.A. | 100.00 | 56 | |
HSBC InvestDirect (India) Private Limited | 100.00 | 52 | |
HSBC InvestDirect Financial Services (India) Limited | 99.99 | (99.98) | 52 |
HSBC InvestDirect Sales & Marketing (India) Limited | 98.99 | (98.98) | 50 |
HSBC InvestDirect Securities (India) Private Limited | 99.99 | 52 | |
HSBC Investment and Insurance Brokerage, Philippines Inc. | 99.99 | 100 | |
HSBC Investment Bank Holdings B.V. | 100.00 | 18 | |
HSBC Investment Bank Holdings Limited | 100.00 | 18 | |
HSBC Investment Company Limited | 100.00 | 2, 18 | |
HSBC Investment Funds (Canada) Inc. | 100.00 | 65 | |
HSBC Investment Funds (Hong Kong) Limited | 100.00 | 46 | |
HSBC Investment Funds (Luxembourg) SA | 100.00 | 101 | |
HSBC Invoice Finance (UK) Limited | 100.00 | 102 | |
HSBC Issuer Services Common Depositary Nominee (UK) Limited | 100.00 | 18 | |
HSBC Issuer Services Depositary Nominee (UK) Limited | 100.00 | 18 | |
HSBC Latin America B.V. | 100.00 | 18 | |
HSBC Latin America Holdings (UK) Limited | 100.00 | 2, 18 | |
HSBC Leasing (Asia) Limited | 100.00 | 46 | |
HSBC Life (Bermuda) Limited | 100.00 | 23 | |
HSBC Life (Cornell Centre) Limited | 100.00 | 95 | |
HSBC Life (Edwick Centre) Limited | 100.00 | 95 | |
HSBC Life (International) Limited | 100.00 | 23 | |
HSBC Life (Property) Limited | 100.00 | 95 | |
HSBC Life (Tsing Yi Industrial) Limited | 100.00 | 95 | |
HSBC Life (UK) Limited | 100.00 | 18 | |
HSBC Life (Workshop) Limited | 100.00 | 1, 95 | |
HSBC Life Assurance (Malta) Limited | 100.00 | (70.03) | 88 |
HSBC Life Insurance Company Limited | 100.00 | 12, 57 | |
HSBC LU Nominees Limited | 100.00 | 18 | |
HSBC Management (Guernsey) Limited | 100.00 | 103 | |
HSBC Markets (USA) Inc. | 100.00 | 15 |
HSBC Marking Name Nominee (UK) Limited | 100.00 | 18 | |
HSBC Master Trust Trustee Limited | 100.00 | 18 | |
HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo Financiero HSBC | 99.99 | 16 | |
HSBC Middle East Asset Co. LLC | 100.00 | 104 | |
HSBC Middle East Holdings B.V. | 100.00 | 2, 68 | |
HSBC Middle East Leasing Partnership | N/A | 0, 68 | |
HSBC Middle East Securities L.L.C | 100.00 | 105 | |
HSBC Mortgage Corporation (Canada) | 100.00 | 65 | |
HSBC Mortgage Corporation (USA) | 100.00 | 15 | |
HSBC Nominees (Asing) Sdn Bhd | 100.00 | 49 | |
HSBC Nominees (Hong Kong) Limited | 100.00 | 46 | |
HSBC Nominees (New Zealand) Limited | 100.00 | 106 | |
HSBC Nominees (Tempatan) Sdn Bhd | 100.00 | 49 | |
HSBC North America Holdings Inc. | 100.00 | 3, 15 | |
HSBC Operational Services GmbH | 80.00 | 87 | |
HSBC Overseas Holdings (UK) Limited | 100.00 | 2, 18 | |
HSBC Overseas Investments Corporation (New York) | 100.00 | 107 | |
HSBC Overseas Nominee (UK) Limited | 100.00 | 18 | |
HSBC Participaciones (Argentina) S.A. | 100.00 | 51 | |
HSBC PB Corporate Services 1 Limited | 100.00 | 74 | |
HSBC PB Services (Suisse) SA | 100.00 | 108 | |
HSBC Pension Trust (Ireland) DAC | 100.00 | 109 | |
HSBC Pensiones, S.A. (In Liquidation) | 100.00 | 16 | |
HSBC PI Holdings (Mauritius) Limited | 100.00 | 94 | |
HSBC Portfoy Yonetimi A.S. | 100.00 | 63 | |
HSBC Preferential LP (UK) | 100.00 | 18 | |
HSBC Private Bank (Luxembourg) S.A. | 100.00 | 101 | |
HSBC Private Bank (Suisse) SA | 100.00 | 108 | |
HSBC Private Bank (UK) Limited | 100.00 | 18 | |
HSBC Private Banking Holdings (Suisse) SA | 100.00 | 108 | |
HSBC Private Banking Nominee 3 (Jersey) Limited | 100.00 | 74 | |
HSBC Private Equity Investments (UK) Limited | 100.00 | 18 | |
HSBC Private Investment Counsel (Canada) Inc. | 100.00 | 65 | |
HSBC Private Markets Management SARL | N/A | 0, 110 | |
HSBC Private Trustee (Hong Kong) Limited | 100.00 | 46 | |
HSBC Professional Services (India) Private Limited | 100.00 | 50 | |
HSBC Property (UK) Limited | 100.00 | 18 | |
HSBC Property Funds (Holding) Limited | 100.00 | 18 | |
HSBC Provident Fund Trustee (Hong Kong) Limited | 100.00 | 46 | |
HSBC Qianhai Securities Limited | 90.00 | 12, 111 | |
HSBC Real Estate Leasing (France) | 100.00 | (99.99) | 35 |
HSBC REGIO Fund General Partner S.\u00e0 r.l. | 100.00 | 1, 93 | |
HSBC REIM (France) | 100.00 | (99.99) | 54 |
HSBC Retirement Benefits Trustee (UK) Limited | 100.00 | 1, 2, 18 | |
HSBC Retirement Services Limited | 100.00 | 1, 18 | |
HSBC Saudi Arabia, Closed Joint Stock Company | 66.19 | 112 | |
HSBC Savings Bank (Philippines) Inc. | 99.99 | 113 | |
HSBC Securities (Canada) Inc. | 100.00 | 83 | |
HSBC Securities (Egypt) S.A.E. (In Liquidation) | 100.00 | (94.65) | 66 |
HSBC Securities (Japan) Co., Ltd. | 100.00 | 1, 53 | |
HSBC Securities (Japan) Limited | 100.00 | 18 | |
HSBC Securities (Singapore) Pte Limited | 100.00 | 20 | |
HSBC Securities (South Africa) (Pty) Limited | 100.00 | 114 | |
HSBC Securities (Taiwan) Corporation Limited | 100.00 | 60 | |
HSBC Securities (USA) Inc. | 100.00 | 15 |
HSBC Securities and Capital Markets (India) Private Limited | 99.99 | 50 | |
HSBC Securities Brokers (Asia) Limited | 100.00 | 46 | |
HSBC Securities Investments (Asia) Limited | 100.00 | 46 | |
HSBC Securities Services (Bermuda) Limited | 100.00 | 23 | |
HSBC Securities Services (Guernsey) Limited | 100.00 | 22 | |
HSBC Securities Services (Ireland) DAC | 100.00 | 109 | |
HSBC Securities Services (Luxembourg) S.A. | 100.00 | 101 | |
HSBC Securities Services Holdings (Ireland) DAC | 100.00 | 109 | |
HSBC Securities Services Nominees Limited | 100.00 | 1, 46 | |
HSBC Seguros de Retiro (Argentina) S.A. | 100.00 | (99.99) | 51 |
HSBC Seguros de Vida (Argentina) S.A. | 100.00 | (99.99) | 51 |
HSBC Seguros, S.A de C.V., Grupo Financiero HSBC | 100.00 | (99.99) | 16 |
HSBC Service Company Germany GmbH | 100.00 | (99.99) | 1, 87 |
HSBC Service Delivery (Polska) Sp. z o.o. | 100.00 | 115 | |
HSBC Services (France) | 100.00 | (99.99) | 35 |
HSBC Services Japan Limited | 100.00 | 92 | |
HSBC Services USA Inc. | 100.00 | 116 | |
HSBC Servicios Financieros, S.A. de C.V | 100.00 | (99.99) | 16 |
HSBC Servicios, S.A. DE C.V., Grupo Financiero HSBC | 100.00 | (99.99) | 16 |
HSBC SFH (France) | 100.00 | (99.99) | 4, 54 |
HSBC SFT (C.I.) Limited | 100.00 | 22 | |
HSBC Software Development (Guangdong) Limited | 100.00 | 117 | |
HSBC Software Development (India) Private Limited | 100.00 | 118 | |
HSBC Software Development (Malaysia) Sdn Bhd | 100.00 | 78 | |
HSBC Specialist Investments Limited | 100.00 | 18 | |
HSBC Technology & Services (China) Limited | 100.00 | 57 | |
HSBC Technology & Services (USA) Inc. | 100.00 | 15 | |
HSBC Titan GmbH & Co. KG | 100.00 | (99.99) | 1, 87 |
HSBC Transaction Services GmbH | 100.00 | (99.99) | 6, 87 |
HSBC Trinkaus & Burkhardt (International) S.A. | 100.00 | (99.99) | 119 |
HSBC Trinkaus & Burkhardt Gesellschaft fur Bankbeteiligungen mbH | 100.00 | (99.99) | 87 |
HSBC Trinkhaus & Burkhardt GmbH | 100.00 | (99.99) | 87 |
HSBC Trinkaus Europa Immobilien-Fonds Nr. 5 GmbH | 100.00 | (99.99) | 87 |
HSBC Trinkaus Family Office GmbH | 100.00 | (99.99) | 6, 87 |
HSBC Trinkaus Real Estate GmbH | 100.00 | (99.99) | 6, 87 |
HSBC Trust Company (Canada) | 100.00 | 65 | |
HSBC Trust Company (Delaware), National Association | 100.00 | 97 | |
HSBC Trust Company (UK) Limited | 100.00 | 18 | |
HSBC Trustee (C.I.) Limited | 100.00 | 74 | |
HSBC Trustee (Cayman) Limited | 100.00 | 120 | |
HSBC Trustee (Guernsey) Limited | 100.00 | 22 | |
HSBC Trustee (Hong Kong) Limited | 100.00 | 46 | |
HSBC Trustee (Singapore) Limited | 100.00 | 20 | |
HSBC UK Bank plc | 100.00 | 2, 17 | |
HSBC UK Client Nominee Limited | 100.00 | 17 | |
HSBC UK Covered Bonds LLP | N/A | 0, 17 | |
HSBC UK Holdings Limited | 100.00 | 2, 18 | |
HSBC USA Inc. | 100.00 | 107 | |
HSBC Ventures USA Inc. | 100.00 | 15 | |
HSBC Violet Investments (Mauritius) Limited | 100.00 | 75 | |
HSBC Wealth Client Nominee Limited | 100.00 | 1, 17 | |
HSBC Yatirim Menkul Degerler A.S. | 100.00 | 63 | |
HSI Asset Securitization Corporation | 100.00 | 15 | |
HSI International Limited | 100.00 | (62.14) | 38 |
HSIL Investments Limited | 100.00 | 18 |
St Cross Trustees Limited | 100.00 | 17 | |
Sun Hung Kai Development (Lujiazui III) Limited | 100.00 | 12, 57 | |
Swan National Limited | 100.00 | 18 | |
The Hongkong and Shanghai Banking Corporation Limited | 100.00 | 5, 46 | |
The Venture Catalysts Limited | 100.00 | 18 | |
Tooley Street View Limited | 100.00 | 2, 18 | |
Tower Investment Management | 100.00 | 130 | |
Trinkaus Australien Immobilien Fonds Nr. 1 Brisbane GmbH & Co. KG | 100.00 | (99.99) | 87 |
Trinkaus Australien Immobilien-Fonds Nr. 1 Treuhand-GmbH | 100.00 | (99.99) | 6, 87 |
Trinkaus Europa Immobilien-Fonds Nr.3 Objekt Utrecht Verwaltungs-GmbH | 100.00 | (99.99) | 87 |
Trinkaus Immobilien-Fonds Geschaeftsfuehrungs-GmbH | 100.00 | (99.99) | 6, 87 |
Trinkaus Immobilien-Fonds Verwaltungs- GmbH | 100.00 | (99.99) | 6, 87 |
Trinkaus Private Equity Management GmbH | 100.00 | (99.99) | 87 |
Trinkaus Private Equity Verwaltungs GmbH | 100.00 | (99.99) | 6, 87 |
Tropical Nominees Limited | 100.00 | 73 | |
Turnsonic (Nominees) Limited | 100.00 | 17 | |
Valeurs Mobili\u00e8res Elys\u00e9es | 100.00 | (99.99) | 35 |
Wardley Limited | 100.00 | 46 | |
Wayfoong Nominees Limited | 100.00 | 46 | |
Westminster House, LLC | N/A | 0, 15 | |
Woodex Limited | 100.00 | 23 | |
Yan Nin Development Company Limited | 100.00 | (62.14) | 38 |
Joint ventures | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
Climate Asset Management Limited | 40.00 | 1, 131 | |
Global Payments Technology Mexico S.A. De C.V | 50.00 | 16 | |
HCM Holdings Limited (In Liquidation) | 50.99 | 45 | |
Pentagreen Capital Pte. Ltd | 50.00 | 1, 132 | |
ProServe Bermuda Limited | 50.00 | 133 | |
The London Silver Market Fixing Limited | N/A | 0 1, 134 | |
Vaultex UK Limited | 50.00 | 135 |
Associates | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
Bank of Communications Co., Ltd. | 19.03 | 136 | |
Barrowgate Limited | 15.31 | 137 | |
BGF Group PLC | 24.61 | 138 | |
Bud Financial Limited | 5.36 | 1, 139 | |
Canara HSBC Life Insurance Company Limited | 26.00 | 140 | |
Contour Pte Ltd | 12.65 | 1, 141 | |
Divido Financial Services Limited | 5.56 | 1, 142 | |
Electronic Payment Services Company (Hong Kong) Limited | 38.66 | 46 | |
Episode Six Limited | 7.02 | 1, 143 | |
EPS Company (Hong Kong) Limited | 38.66 | 46 | |
EURO Secured Notes Issuer | 16.67 | 144 | |
GZHS Research Co Ltd | 20.50 | 145 | |
HSBC Jintrust Fund Management Company Limited | 49.00 | 57 | |
Liquidity Match LLC | N/A | 0, 1, 146 | |
London Precious Metals Clearing Limited | 30.00 | 1, 147 | |
MENA Infrastructure Fund (GP) Ltd | 33.33 | 145 | |
Monese Ltd | 5.39 | 1, 149 | |
Quantexa Ltd | 10.10 | 131 | |
Services Epargne Entreprise | 14.18 | 150 | |
The London Gold Market Fixing Limited | 25.00 | 134 | |
The Saudi British Bank | 31.00 | 152 | |
Threadneedle Software Holdings Limited | 6.56 | 1, 153 | |
Trade Information Network Limited | 16.67 | 1, 154 | |
Trinkaus Europa Immobilien-Fonds Nr. 7 Frankfurt Mertonviertel KG | N/A | 0, 87 | |
Vizolution Limited | 17.95 | 1, 155 | |
We Trade Innovation Designated Activity Company | 9.88 | 1, 156 |
Registered offices | |
15 | c/o The Corporation Trust Company 1209 Orange Street, Wilmington, Delaware, United States of America, 19801 |
16 | Paseo de la Reforma 347 Col. Cuauhtemoc, Mexico, 06500 |
17 | 1 Centenary Square, Birmingham, United Kingdom, B1 1HQ |
18 | 8 Canada Square, London, United Kingdom, E14 5HQ |
19 | 5 Donegal Square South, Northern Ireland, Belfast, United Kingdom, BT1 5JP |
20 | 10 Marina Boulevard #48-01 Marina Bay Financial Centre, Singapore, 018983 |
21 | 1909 Avenida Presidente Juscelino Kubitschek, 19\u00b0 andar, Torre Norte, S\u00e3o Paulo Corporate Towers, S\u00e3o Paulo, Brazil, 04551-903 |
22 | Arnold House, St Julians Avenue, St Peter Port, Guernsey, GY1 3NF |
23 | 37 Front Street, Hamilton, Bermuda, HM 11 |
24 | First Floor, Xinhua Bookstore Xindong Road (SE of roundabout), Miyun District, Beijing, China |
25 | Oak House Hirzel Street, St Peter Port, Guernsey, GY1 2NP |
26 | 2929 Walden Avenue, Depew, New York, United States of |
27 | Corporation Service Company 251 Little Falls Drive, Wilmington, Delaware, United States of America, 19808 |
28 | Solidere - Rue Saad Zaghloul Immeuble - 170 Marfaa, P.O. Box 17 5476 Mar Michael, Beyrouth, Lebanon, 11042040 |
29 | No 1, Bei Huan East Road Dazu County, Chongqing, China |
30 | No 107 Ping Du Avenue (E), Sanhe Town, Fengdu County, Chongqing, China |
31 | No. 3, 5, 7, Haitang Erzhi Road Changyuan, Rongchang, Chongqing, China, 402460 |
32 | c/o Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town, Grand Cayman, Cayman Islands, KY1-9005 |
33 | First & Second Floor, No.3 Nanshan Road, Pulandian , Dalian, Liaoning, China |
34 | 160 Mine Lake CT, Ste 200, Raleigh, North Carolina, United States Of America, 27615-6417 |
35 | 38 avenue Kl\u00e9ber, Paris, France, 75116 |
36 | MMG Tower, 23 floor Ave. Paseo del Mar Urbanizacion Costa del Este, Panama |
73 | P.O. Box 1109, Strathvale House, Ground Floor, 90 North Church Street , George Town, Grand Cayman, Cayman Islands, KY1-1102 |
74 | HSBC House Esplanade, St. Helier, Jersey, JE1 1HS |
75 | c/o Rogers Capital St. Louis Business Centre, Cnr Desroches & St Louis Streets, Port Louis, Mauritius |
76 | 49 avenue J.F. Kennedy, Luxembourg, 1855 |
77 | 4-17/F, Office Tower 2 TaiKoo Hui, No. 381 Tian He Road, Tian He District, Guangzhou, Guangdong, China |
78 | Suite 1005, 10th Floor, Wisma Hamzah Kwong, Hing No. 1, Leboh Ampang, Kuala Lumpur, Malaysia, 50100 |
79 | Filinvest One Building, Northgate Cyberzone, Filinvest Corporate City, Alabang, Muntinlupa City, Philippines |
80 | HSBC House, Plot No.8, Survey No.64 (Part), Hightec City Layout Madhapur, Hyderabad, India, 500081 |
81 | 439, Sri Jayawardenapura Mawatha Welikada, Rajagiriya, Colombo, Sri Lanka |
82 | Smart Village 28th Km Cairo- Alexandria Desert Road Building, Cairo, Egypt |
83 | 16 York Street, 6th Floor, Toronto, Ontario, Canada, M5J 0E6 |
84 | Centre Ville 1341 Building, 4th Floor, Patriarche Howayek Street (facing Beirut Souks), PO Box Riad El Solh, Lebanon, 9597 |
85 | World Trade Center, Montevideo Avenida Luis Alberto de Herrera 1248, Torre 1, Piso 15, Oficina 1502, Montevideo, Uruguay, CP 11300 |
86 | Room 655, Building A, No. 888, Huan Hu West Two Road, Lin Gang New Area of Shanghai (Pilot) Free Trade Zone, Shanghai, China |
87 | Hansaallee 3, D\u00fcsseldorf, Germany, 40549 |
88 | 80 Mill Street, Qormi, Malta, QRM 3101 |
89 | 26 Gartenstrasse, Zurich, Switzerland, 8002 |
90 | 24th Floor, 97-99, Sec.2, Tunhwa S. Road, Taipei, Taiwan |
91 | 452 Fifth Avenue, New York, United States of America, NY10018 |
92 | Mareva House, 4 George Street, Nassau, Bahamas |
93 | 4 rue Peternelchen, Howald, Luxembourg, 2370 |
94 | 6th floor HSBC Centre 18, Cybercity, Ebene, Mauritius, 72201 |
95 | 18th Floor, Tower 1, HSBC Centre, 1 Sham Mong Road, Kowloon, Hong Kong |
96 | Unit 201 Floor 2, Building 3, No. 12, Anxiang Street, Shunyi District, Beijing, China |
97 | 300 Delaware Avenue, Suite 1401, Wilmington, Delaware, United States of America, 19801 |
98 | Woodbourne Hall, Road Town, Tortola, British Virgin Islands, P.O. Box 916 |
99 | PO Box 71, Craigmuir Chambers, Road Town Tortola, British Virgin Islands |
100 | 5/F HSBC Centre 3058 Fifth Ave West, Bonifacio Global City, Taguig City, Philippines |
101 | 18 Boulevard de Kockelscheuer, Luxembourg, 1821 |
102 | 21 Farncombe Road Worthing, United Kingdom, BN11 2BW |
103 | Arnold House, St Julians Avenue, St Peter Port, Guernsey, GY1 1WA |
104 | 345-6791, HSBC Tower, Burj Khalifa Community, Dubai, United Arab Emirates |
105 | Office No.16, Owned by HSBC Bank Middle East Limited, Dubai Branch, Bur Dubai, Burj Khalifa, Dubai, United Arab Emirates |
106 | HSBC Tower, Level 21, 188 Quay Street, Auckland, New Zealand, 1010 |
107 | The Corporation Trust Incorporated, 2405 York Road, Suite 201, Lutherville Timonium, Maryland, United States of America, 21093 |
108 | Quai des Bergues 9-17, Geneva, Switzerland, 1201 |
109 | 1 Grand Canal Square, Grand Canal Harbour, Dublin 2, Ireland, D02 P820 |
110 | 5 rue Heienhaff, Senningerberg, Luxembourg, 1736 |
111 | Block 27 A&B, Qianhai Enterprise Dream Park No. 63 Qianwan Yi Road, Shenzhen-Hong Kong Cooperation Zone, Shenzhen, China, 518052 |
112 | HSBC Building 7267 Olaya - Al Murrooj, Riyadh, Saudi Arabia, 12283 - 2255 |
113 | Unit 1 GF The Commerical Complex Madrigal Avenue, Ayala Alabang Village, Muntinlupa City, Philippines, 1780 |
114 | 1 Mutual Place, 107 Rivonia Road, Sandton, Gauteng, South Africa, 2196 |
115 | Kapelanka 42A , Krakow, Poland, 30-347 |
116 | C T Corporation System 820 Bear Tavern Road, West Trenton, New Jersey, United States of America, 08628 |
117 | L22, Office Tower 2, Taikoo Hui, 381 Tianhe Road, Tianhe District, Guangzhou, Guangdong, China |
118 | Business Bay, Wing 2, Tower B, Survey no 103, Hissa no. 2, Airport road, Yerwada, Pune, India, 411006 |
119 | 16 Boulevard d\u2019Avranches, Luxembourg, Luxembourg, L-1160 |
120 | P.O. Box 309 Ugland House, Grand Cayman, Cayman Islands, KY1-1104 |
121 | No. 56 Yu Rong Street, Macheng, China, 438300 |
122 | No. 205 Lie Shan Road Suizhou, Hubei, China |
123 | Building 3, Yin Zuo Di Jing Wan Tianmen New City, Tianmen, Hubei Province, China |
124 | RM101, 102 & 106 Sunshine Fairview, Sunshine Garden, Pedestrian Walkway, Pingjiang, China |
125 | Kings Meadow Chester Business Park , Chester, United Kingdom, CH99 9FB |
126 | World Trade Center 1, Jalan Jenderal Sudirman Kavling 29 - 31, Jakarta, Indonesia, 12920 |
127 | No. 198-2 Chengshan Avenue (E), Rongcheng, China, 264300 |
128 | Room 1303-13062 Marine Center Main Tower, 59 Linhai Road, Nanshan District, Shenzhen, China |
129 | Woodbourne Hall, Road Town, Tortola, British Virgin Islands, P.O. Box 3162 |
130 | 25 Main St. P.O. Box 694, Grand Cayman KY1 1107, Cayman Islands, KY1 1107 |
131 | Hill House, 1 Little New Street, London , United Kingdom, EC4A 3TR |
132 | 60B Orchard Road #06-18, The Atrium @Orchard, Singapore, 238891 |
133 | c/o MUFG Fund Services (Bermuda) Limited, Cedar House, 4th Floor North, 41 Cedar Avenue, Hamilton, Bermuda, HM 12 |
134 | c/o Hackwood Secretaries Limited, One Silk Street, London, United Kingdom, EC2Y 8HQ |
135 | All Saints Triangle, Caledonian Road, London, United Kingdom, N19UT |
136 | No.188, Yin Cheng Zhong Road China (Shanghai), Pilot Free Trade Zone, Shanghai, China |
137 | 50/F, Lee Garden One, 33 Hysan Avenue, Hong Kong |
138 | 13-15 York Buildings, London, United Kingdom, WC2N 6JU |
139 | Linen Court, Floor 3, 10 East Road, London, United Kingdom, N1 6AD |
140 | Unit No. 208, 2nd Floor, Kanchenjunga Building 18, Barakhamba Road, New Delhi, India, 110001 |
141 | 50 Raffles Place, #32-01 Singapore Land Tower, Singapore, 048623 |
142 | Office 7, 35-37 Ludgate Hill, London, United Kingdom, EC4M 7JN |
143 | 100 Town Square Place, Suite 201, Jersey City, New Jersey, United States Of America, 07310 |
144 | 7th Floor, 62 Threadneedle Street, London, United Kingdom, EC2R 8HP |
145 | Precinct Building 4, Level 3, Dubai International Financial Centre, Dubai, United Arab Emirates, PO Box 506553 |
146 | 9/F Amtel Building, 148 des Voeux Road Central, Central, Hong Kong |
147 | 3 Avenue de l\u2019Opera , Paris, France, 75001 |
148 | Room 1303, 106 Feng Ze Dong Road, Nansha District, Guangzhou, Guangdong, China |
149 | Eagle House, 163 City Road, London, United Kingdom, EC1V 1NR |
150 | 32 rue du Champ de Tir, Nantes, France, 44300 |
151 | Ernst-Schneider-Platz 1 , Duesseldorf, Germany, 40212 |
152 | Al Amir Abdulaziz Ibn Mossaad Ibn Jalawi Street, Riyadh, Saudi Arabia |
153 | 2nd Floor, Regis House, 45 King William Street, London, United Kingdom, EC4R 9AN |
154 | 3 More London Riverside, London, United Kingdom, SE1 2AQ |
155 | Office Block A, Bay Studios Business Park, Fabian Way, Swansea, Wales, United Kingdom, SA1 8QB |
156 | 10 Earlsfort Terrace, Dublin, Ireland, DO2 T380 |
18 | Interests in associates and joint ventures |
Carrying amount of HSBC\u2019s interests in associates and joint ventures | ||
2022 | 2021 | |
$m | $m | |
Interests in associates | 29,127 | 29,515 |
Interests in joint ventures | 127 | 94 |
Interests in associates and joint ventures | 29,254 | 29,609 |
Principal associates of HSBC | |||||
2022 | 2021 | ||||
Carrying amount | Fair value1 | Carrying amount | Fair value1 | ||
$m | $m | $m | $m | ||
Bank of Communications Co., Limited | 23,307 | 8,141 | 23,616 | 8,537 | |
The Saudi British Bank | 4,494 | 6,602 | 4,426 | 5,599 |
At 31 Dec 2022 | |||
Country of incorporation and principal place of business | Principal activity | HSBC\u2019s interest % | |
Bank of Communications Co., Limited | People\u2019s Republic of China | Banking services | 19.03 |
The Saudi British Bank | Saudi Arabia | Banking services | 31.00 |
Share of profit in associates and joint ventures | ||
2022 | 2021 | |
$m | $m | |
Bank of Communications Co., Limited | 2,377 | 2,461 |
The Saudi British Bank | 342 | 276 |
Other associates and joint ventures | 4 | 309 |
Share of profit in associates and joint ventures | 2,723 | 3,046 |
At 31 Dec 2022 | At 31 Dec 2021 | |||||
VIU | Carrying value | Fair value | VIU | Carrying value | Fair value | |
$bn | $bn | $bn | $bn | $bn | $bn | |
BoCom | 23.5 | 23.3 | 8.1 | 24.8 | 23.6 | 8.5 |
Key assumption | Changes to key assumption to reduce headroom to nil |
\u2022Long-term profit growth rate | \u2022Decrease by 4 basis points |
\u2022Long-term asset growth rate | \u2022Increase by 3 basis points |
\u2022Discount rate | \u2022Increase by 5 basis points |
\u2022Expected credit losses as a percentage of customer advances | \u2022Increase by 1 basis points |
\u2022Risk-weighted assets as a percentage of total assets | \u2022Increase by 26 basis points |
\u2022Operating income growth rate | \u2022Decrease by 5 basis points |
\u2022Cost-income ratio | \u2022Increase by 15 basis points |
\u2022Long-term effective tax rate | \u2022Increase by 46 basis points |
\u2022Capital requirements \u2013 capital adequacy ratio | \u2022Increase by 5 basis points |
\u2022Capital requirements \u2013 tier 1 capital adequacy ratio | \u2022Increase by 175 basis points |
Sensitivity of VIU to reasonably possible changes in key assumptions | ||||||
Favourable change | Unfavourable change | |||||
Increase in VIU | VIU | Decrease in VIU | VIU | |||
bps | $bn | $bn | bps | $bn | $bn | |
At 31 Dec 2022 | ||||||
Long-term profit growth rate1 | 75 | 3.6 | 27.1 | (71) | (2.7) | 20.8 |
Long-term asset growth rate1 | (71) | 3.1 | 26.6 | 75 | (4.1) | 19.4 |
Discount rate | (164) | 6.9 | 30.4 | 136 | (3.7) | 19.8 |
Expected credit losses as a percentage of customer advances | 2022 to 2026: 95 2027 onwards: 91 | 1.9 | 25.4 | 2022 to 2026: 120 2027 onwards: 104 | (2.9) | 20.6 |
Risk-weighted assets as a percentage of total assets | (118) | 0.1 | 23.6 | 239 | (2.3) | 21.2 |
Operating income growth rate | 44 | 1.3 | 24.8 | (83) | (2.5) | 21.0 |
Cost-income ratio | (122) | 1.0 | 24.5 | 174 | (2.1) | 21.4 |
Long-term effective tax rate | (426) | 1.5 | 25.0 | 1,000 | (3.6) | 19.9 |
Capital requirements \u2013 capital adequacy ratio | \u2014 | \u2014 | 23.5 | 191 | (6.3) | 17.2 |
Capital requirements \u2013 tier 1 capital adequacy ratio | \u2014 | \u2014 | 23.5 | 266 | (3.2) | 20.3 |
At 31 Dec 2021 | ||||||
Long-term profit growth rate1 | 87 | 4.2 | 29.0 | (69) | (2.7) | 22.1 |
Long-term asset growth rate1 | (69) | 2.9 | 27.7 | 87 | (4.7) | 20.1 |
Discount rate | (133) | 5.4 | 30.2 | 207 | (5.3) | 19.5 |
Expected credit losses as a percentage of customer advances | 2021 to 2025: 103 2026 onwards: 91 | 1.5 | 26.3 | 2021 to 2025: 121 2026 onwards: 105 | (2.7) | 22.1 |
Risk-weighted assets as a percentage of total assets | (111) | 0.2 | 25.0 | 280 | (2.1) | 22.7 |
Operating income growth rate | 37 | 1.0 | 25.8 | (58) | (1.8) | 23.0 |
Cost-income ratio | (152) | 1.7 | 26.5 | 174 | (1.7) | 23.1 |
Long-term effective tax rate | (104) | 0.3 | 25.1 | 1,000 | (3.6) | 21.2 |
Capital requirements \u2013 capital adequacy ratio | \u2014 | \u2014 | 24.8 | 325 | (10.0) | 14.8 |
Capital requirements \u2013 tier 1 capital adequacy ratio | \u2014 | \u2014 | 24.8 | 364 | (6.5) | 18.3 |
Selected balance sheet information of BoCom | |||
At 30\u00a0 Sep | |||
2022 | 2021 | ||
$m | $m | ||
Cash and balances at central banks | 114,390 | 123,194 | |
Due from and placements with banks and other financial institutions | 99,802 | 98,932 | |
Loans and advances to customers | 1,022,223 | 993,956 | |
Other financial assets | 549,364 | 541,577 | |
Other assets | 55,884 | 47,679 | |
Total assets | 1,841,663 | 1,805,338 | |
Due to and placements from banks and other financial institutions | 277,185 | 287,057 | |
Deposits from customers | 1,144,297 | 1,099,266 | |
Other financial liabilities | 237,521 | 228,135 | |
Other liabilities | 35,543 | 40,070 | |
Total liabilities | 1,694,546 | 1,654,528 | |
Total equity | 147,117 | 150,810 |
Reconciliation of BoCom\u2019s total shareholders\u2019 equity to the carrying amount in HSBC\u2019s consolidated financial statements | ||
At 30 Sep | ||
2022 | 2021 | |
$m | $m | |
HSBC\u2019s share of total shareholders\u2019 equity | 22,828 | 23,097 |
Goodwill | 479 | 519 |
Carrying amount\u00a0 | 23,307 | 23,616 |
Selected income statement information of BoCom | ||
For the 12 months ended 30 Sep | ||
2022 | 2021 | |
$m | $m | |
Net interest income | 25,314 | 24,582 |
Net fee and commission income | 6,854 | 7,170 |
Credit and impairment losses | (9,712) | (9,701) |
Depreciation and amortisation | (2,351) | (2,297) |
Tax expense | (598) | (1,045) |
Profit for the year | 13,582 | 14,199 |
Other comprehensive income | (245) | (368) |
Total comprehensive income | 13,337 | 13,831 |
Dividends received from BoCom | 749 | 692 |
Transactions and balances during the year with associates and joint ventures | ||||
2022 | 2021 | |||
Highest balance during the year | Balance at 31 Dec | Highest balance during the year | Balance at 31 Dec | |
$m | $m | $m | $m | |
Unsubordinated amounts due from joint ventures | 140 | 90 | 160 | 96 |
Unsubordinated amounts due from associates | 7,378 | 6,594 | 4,527 | 4,188 |
Amounts due to associates | 2,548 | 1,295 | 3,397 | 1,070 |
Amounts due to joint ventures | 57 | 53 | 102 | 44 |
Fair value of derivative assets with associates | 1,205 | 841 | 936 | 465 |
Fair value of derivative liabilities with associates | 4,319 | 3,648 | 696 | 555 |
Guarantees and commitments | 513 | 293 | 1,016 | 347 |
38 | HSBC Holdings\u2019 subsidiaries, joint ventures and associates |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | ||||
452 TALF Plus ABS Opportunities SPV LLC | 100.00 | 15 | ||||
452 TALF SPV LLC | 100.00 | 15 | ||||
Almacenadora Banpacifico S.A. (In Liquidation) | 99.99 | 16 | ||||
Assetfinance December (F) Limited | 100.00 | 17 | ||||
Assetfinance December (H) Limited | 100.00 | 18 | ||||
Assetfinance December (P) Limited | 100.00 | 18 | ||||
Assetfinance December (R) Limited | 100.00 | 18 | ||||
Assetfinance June (A) Limited | 100.00 | 18 | ||||
Assetfinance June (D) Limited | 100.00 | 17 | ||||
Assetfinance Limited | 100.00 | 18 | ||||
Assetfinance March (B) Limited | 100.00 | 19 | ||||
Assetfinance March (D) Limited | 100.00 | 17 | ||||
Assetfinance March (F) Limited | 100.00 | 18 | ||||
Assetfinance September (F) Limited | 100.00 | 18 | ||||
Assetfinance September (G) Limited | 100.00 | 17 | ||||
AXA Insurance Pte. Ltd. | 100.00 | 1, 20 | ||||
B&Q Financial Services Limited | 100.00 | 18 | ||||
Banco HSBC S.A. | 100.00 | 21 | ||||
Banco Nominees (Guernsey) Limited | 100.00 | 22 | ||||
Banco Nominees 2 (Guernsey) Limited | 100.00 | 22 | ||||
Banco Nominees Limited | 100.00 | 23 | ||||
Beau Soleil Limited Partnership | N/A | 0, 46 | ||||
Beijing Miyun HSBC Rural Bank Company Limited | 100.00 | 12, 24 | ||||
BentallGreenOak China Real Estate Investments L.P. | N/A | 0, 1, 25 | ||||
Canada Crescent Nominees (UK) Limited | 100.00 | 18 | ||||
Canada Square Nominees (UK) Limited | 100.00 | 18 | ||||
Capco/Cove, Inc. | 100.00 | 26 | ||||
Card-Flo #1, Inc. | 100.00 | 15 | ||||
Card-Flo #3, Inc. | 100.00 | 15 | ||||
CC&H Holdings LLC | 100.00 | 27 | ||||
CCF & Partners Asset Management Limited | 100.00 | (99.99) | 18 | |||
CCF Holding (Liban) S.A.L. (In Liquidation) | 74.99 | 28 | ||||
Charterhouse Administrators (D.T.) Limited | 100.00 | (99.99) | 18 | |||
Charterhouse Management Services Limited | 100.00 | (99.99) | 18 | |||
Charterhouse Pensions Limited | 100.00 | 18 | ||||
Chongqing Dazu HSBC Rural Bank Company Limited | 100.00 | 12, 29 | ||||
Chongqing Fengdu HSBC Rural Bank Company Limited | 100.00 | 12, 30 | ||||
Chongqing Rongchang HSBC Rural Bank Company Limited | 100.00 | 12, 31 | ||||
COIF Nominees Limited | N/A | 0, 18 | ||||
Corsair IV Financial Services Capital Partners - B, LP | N/A | 0, 1, 32 | ||||
Dalian Pulandian HSBC Rural Bank Company Limited | 100.00 | 12, 33 | ||||
Decision One Mortgage Company, LLC | N/A | 0, 34 | ||||
Dem 9 | 100.00 | (99.99) | 4, 35 | |||
Dempar 1 | 100.00 | (99.99) | 4, 35 | |||
Desarrollo Turistico, S.A. de C.V. (In Liquidation) | 100.00 | (99.99) | 16 | |||
Electronic Data Process M\u00e9xico, S.A. de C.V. | 100.00 | 1, 16 | ||||
Eton Corporate Services Limited | 100.00 | 22 | ||||
Far East Leasing SA (In Dissolution) | 100.00 | 36 | ||||
Flandres Contentieux S.A. | 100.00 | (99.99) | 35 | |||
Fonci\u00e8re Elys\u00e9es | 100.00 | (99.99) | 35 | |||
Fujian Yongan HSBC Rural Bank Company Limited | 100.00 | 12, 37 | ||||
Fulcher Enterprises Company Limited | 100.00 | (62.14) | 38 | |||
Fundacion HSBC, A.C. | 100.00 | (99.99) | 11, 16 | |||
Giller Ltd. | 100.00 | 26 |
HSBC Bank (General Partner) Limited | 100.00 | 79 | |
HSBC Bank (Mauritius) Limited | 100.00 | 58 | |
HSBC Bank (RR) (Limited Liability Company) | N/A | 0, 13, 59 | |
HSBC Bank (Singapore) Limited | 100.00 | 20 | |
HSBC Bank (Taiwan) Limited | 100.00 | 60 | |
HSBC Bank (Uruguay) S.A. | 100.00 | 61 | |
HSBC Bank (Vietnam) Ltd. | 100.00 | 62 | |
HSBC Bank A.S. | 100.00 | (99.99) | 63 |
HSBC Bank Argentina S.A. | 99.99 | 51 | |
HSBC Bank Armenia cjsc | 100.00 | 64 | |
HSBC Bank Australia Limited | 100.00 | 55 | |
HSBC Bank Bermuda Limited | 100.00 | 23 | |
HSBC Bank Canada | 100.00 | 65 | |
HSBC Bank Capital Funding (Sterling 1) LP | N/A | 0, 79 | |
HSBC Bank Capital Funding (Sterling 2) LP | N/A | 0, 79 | |
HSBC Bank Egypt S.A.E | 94.54 | 66 | |
HSBC Bank Malaysia Berhad | 100.00 | 49 | |
HSBC Bank Malta p.l.c. | 70.03 | 67 | |
HSBC Bank Middle East Limited | 100.00 | 68 | |
HSBC Bank Middle East Limited Representative Office Morocco SARL (In Liquidation) | 100.00 | 69 | |
HSBC Bank Oman S.A.O.G. | 51.00 | 70 | |
HSBC Bank Pension Trust (UK) Limited | 100.00 | 18 | |
HSBC Bank plc | 100.00 | 2, 18 | |
HSBC Bank USA, National Association | 100.00 | 71 | |
HSBC Branch Nominee (UK) Limited | 100.00 | 17 | |
HSBC Brasil Holding S.A. | 100.00 | 21 | |
HSBC Broking Forex (Asia) Limited | 100.00 | 46 | |
HSBC Broking Futures (Asia) Limited | 100.00 | 46 | |
HSBC Broking Futures (Hong Kong) Limited | 100.00 | 46 | |
HSBC Broking Securities (Asia) Limited | 100.00 | 46 | |
HSBC Broking Securities (Hong Kong) Limited | 100.00 | 46 | |
HSBC Broking Services (Asia) Limited | 100.00 | 46 | |
HSBC Canadian Covered Bond (Legislative) GP Inc. | 100.00 | 72 | |
HSBC Canadian Covered Bond (Legislative) Guarantor Limited Partnership | N/A | 0, 72 | |
HSBC Capital (USA), Inc. | 100.00 | 15 | |
HSBC Capital Funding (Dollar 1) L.P. | N/A | 79 | |
HSBC Card Services Inc. | 100.00 | 15 | |
HSBC Casa de Bolsa, S.A. de C.V., Grupo | 100.00 | (99.99) | 16 |
HSBC Cayman Limited | 100.00 | 73 | |
HSBC Cayman Services Limited | 100.00 | 73 | |
HSBC City Funding Holdings | 100.00 | 18 | |
HSBC Client Holdings Nominee (UK) Limited | 100.00 | 18 | |
HSBC Client Nominee (Jersey) Limited | 100.00 | 74 | |
HSBC Columbia Funding, LLC | N/A | 0, 15 | |
HSBC Continental Europe | 99.99 | 35 | |
HSBC Corporate Advisory (Malaysia) Sdn Bhd | 100.00 | 49 | |
HSBC Corporate Finance (Hong Kong) Limited | 100.00 | 46 | |
HSBC Corporate Secretary (UK) Limited | 100.00 | 2, 18 | |
HSBC Corporate Trustee Company (UK) Limited | 100.00 | 18 | |
HSBC Custody Nominees (Australia) Limited | 100.00 | 55 | |
HSBC Custody Services (Guernsey) Limited | 100.00 | 22 | |
HSBC Daisy Investments (Mauritius) Limited | 100.00 | 75 | |
HSBC Diversified Loan Fund General Partner Sarl | N/A | 76 | |
HSBC Electronic Data Processing (Guangdong) Limited | 100.00 | 12, 77 | |
HSBC Electronic Data Processing (Malaysia) Sdn Bhd | 100.00 | 78 | |
HSBC Electronic Data Processing (Philippines), Inc. | 99.99 | 79 | |
HSBC Electronic Data Processing India Private Limited | 100.00 | 80 |
HSBC Infrastructure Debt GP 1 S.\u00e0 r.l. | N/A | 0, 93 | |
HSBC Infrastructure Debt GP 2 S.\u00e0 r.l. | N/A | 0, 93 | |
HSBC Infrastructure Limited | 100.00 | 18 | |
HSBC Institutional Trust Services (Asia) | 100.00 | 46 | |
HSBC Institutional Trust Services (Bermuda) Limited | 100.00 | 23 | |
HSBC Institutional Trust Services (Mauritius) Limited | 100.00 | 94 | |
HSBC Institutional Trust Services (Singapore) Limited | 100.00 | 20 | |
HSBC Insurance (Asia) Limited | 100.00 | 95 | |
HSBC Insurance (Asia-Pacific) Holdings Limited | 100.00 | 46 | |
HSBC Insurance (Bermuda) Limited | 100.00 | 23 | |
HSBC Insurance (Singapore) Pte. Limited | 100.00 | 20 | |
HSBC Insurance Agency (USA) Inc. | 100.00 | 91 | |
HSBC Insurance Brokerage Company Limited | 100.00 | 1, 96 | |
HSBC Insurance Brokers Greater China Limited | 100.00 | 1, 46 | |
HSBC Insurance Holdings Limited | 100.00 | 2, 18 | |
HSBC Insurance SAC 1 (Bermuda) Limited | 100.00 | 23 | |
HSBC Insurance SAC 2 (Bermuda) Limited | 100.00 | 1, 23 | |
HSBC Insurance Services Holdings Limited | 100.00 | 18 | |
HSBC International Finance Corporation (Delaware) | 100.00 | 97 | |
HSBC International Trustee (BVI) Limited | 100.00 | 98 | |
HSBC International Trustee (Holdings) Pte. Limited | 100.00 | 20 | |
HSBC International Trustee Limited | 100.00 | 99 | |
HSBC Inversiones S.A. | 100.00 | 56 | |
HSBC InvestDirect (India) Private Limited | 100.00 | 52 | |
HSBC InvestDirect Financial Services (India) Limited | 99.99 | (99.98) | 52 |
HSBC InvestDirect Sales & Marketing (India) Limited | 98.99 | (98.98) | 50 |
HSBC InvestDirect Securities (India) Private Limited | 99.99 | 52 | |
HSBC Investment and Insurance Brokerage, Philippines Inc. | 99.99 | 100 | |
HSBC Investment Bank Holdings B.V. | 100.00 | 18 | |
HSBC Investment Bank Holdings Limited | 100.00 | 18 | |
HSBC Investment Company Limited | 100.00 | 2, 18 | |
HSBC Investment Funds (Canada) Inc. | 100.00 | 65 | |
HSBC Investment Funds (Hong Kong) Limited | 100.00 | 46 | |
HSBC Investment Funds (Luxembourg) SA | 100.00 | 101 | |
HSBC Invoice Finance (UK) Limited | 100.00 | 102 | |
HSBC Issuer Services Common Depositary Nominee (UK) Limited | 100.00 | 18 | |
HSBC Issuer Services Depositary Nominee (UK) Limited | 100.00 | 18 | |
HSBC Latin America B.V. | 100.00 | 18 | |
HSBC Latin America Holdings (UK) Limited | 100.00 | 2, 18 | |
HSBC Leasing (Asia) Limited | 100.00 | 46 | |
HSBC Life (Bermuda) Limited | 100.00 | 23 | |
HSBC Life (Cornell Centre) Limited | 100.00 | 95 | |
HSBC Life (Edwick Centre) Limited | 100.00 | 95 | |
HSBC Life (International) Limited | 100.00 | 23 | |
HSBC Life (Property) Limited | 100.00 | 95 | |
HSBC Life (Tsing Yi Industrial) Limited | 100.00 | 95 | |
HSBC Life (UK) Limited | 100.00 | 18 | |
HSBC Life (Workshop) Limited | 100.00 | 1, 95 | |
HSBC Life Assurance (Malta) Limited | 100.00 | (70.03) | 88 |
HSBC Life Insurance Company Limited | 100.00 | 12, 57 | |
HSBC LU Nominees Limited | 100.00 | 18 | |
HSBC Management (Guernsey) Limited | 100.00 | 103 | |
HSBC Markets (USA) Inc. | 100.00 | 15 |
HSBC Marking Name Nominee (UK) Limited | 100.00 | 18 | |
HSBC Master Trust Trustee Limited | 100.00 | 18 | |
HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo Financiero HSBC | 99.99 | 16 | |
HSBC Middle East Asset Co. LLC | 100.00 | 104 | |
HSBC Middle East Holdings B.V. | 100.00 | 2, 68 | |
HSBC Middle East Leasing Partnership | N/A | 0, 68 | |
HSBC Middle East Securities L.L.C | 100.00 | 105 | |
HSBC Mortgage Corporation (Canada) | 100.00 | 65 | |
HSBC Mortgage Corporation (USA) | 100.00 | 15 | |
HSBC Nominees (Asing) Sdn Bhd | 100.00 | 49 | |
HSBC Nominees (Hong Kong) Limited | 100.00 | 46 | |
HSBC Nominees (New Zealand) Limited | 100.00 | 106 | |
HSBC Nominees (Tempatan) Sdn Bhd | 100.00 | 49 | |
HSBC North America Holdings Inc. | 100.00 | 3, 15 | |
HSBC Operational Services GmbH | 80.00 | 87 | |
HSBC Overseas Holdings (UK) Limited | 100.00 | 2, 18 | |
HSBC Overseas Investments Corporation (New York) | 100.00 | 107 | |
HSBC Overseas Nominee (UK) Limited | 100.00 | 18 | |
HSBC Participaciones (Argentina) S.A. | 100.00 | 51 | |
HSBC PB Corporate Services 1 Limited | 100.00 | 74 | |
HSBC PB Services (Suisse) SA | 100.00 | 108 | |
HSBC Pension Trust (Ireland) DAC | 100.00 | 109 | |
HSBC Pensiones, S.A. (In Liquidation) | 100.00 | 16 | |
HSBC PI Holdings (Mauritius) Limited | 100.00 | 94 | |
HSBC Portfoy Yonetimi A.S. | 100.00 | 63 | |
HSBC Preferential LP (UK) | 100.00 | 18 | |
HSBC Private Bank (Luxembourg) S.A. | 100.00 | 101 | |
HSBC Private Bank (Suisse) SA | 100.00 | 108 | |
HSBC Private Bank (UK) Limited | 100.00 | 18 | |
HSBC Private Banking Holdings (Suisse) SA | 100.00 | 108 | |
HSBC Private Banking Nominee 3 (Jersey) Limited | 100.00 | 74 | |
HSBC Private Equity Investments (UK) Limited | 100.00 | 18 | |
HSBC Private Investment Counsel (Canada) Inc. | 100.00 | 65 | |
HSBC Private Markets Management SARL | N/A | 0, 110 | |
HSBC Private Trustee (Hong Kong) Limited | 100.00 | 46 | |
HSBC Professional Services (India) Private Limited | 100.00 | 50 | |
HSBC Property (UK) Limited | 100.00 | 18 | |
HSBC Property Funds (Holding) Limited | 100.00 | 18 | |
HSBC Provident Fund Trustee (Hong Kong) Limited | 100.00 | 46 | |
HSBC Qianhai Securities Limited | 90.00 | 12, 111 | |
HSBC Real Estate Leasing (France) | 100.00 | (99.99) | 35 |
HSBC REGIO Fund General Partner S.\u00e0 r.l. | 100.00 | 1, 93 | |
HSBC REIM (France) | 100.00 | (99.99) | 54 |
HSBC Retirement Benefits Trustee (UK) Limited | 100.00 | 1, 2, 18 | |
HSBC Retirement Services Limited | 100.00 | 1, 18 | |
HSBC Saudi Arabia, Closed Joint Stock Company | 66.19 | 112 | |
HSBC Savings Bank (Philippines) Inc. | 99.99 | 113 | |
HSBC Securities (Canada) Inc. | 100.00 | 83 | |
HSBC Securities (Egypt) S.A.E. (In Liquidation) | 100.00 | (94.65) | 66 |
HSBC Securities (Japan) Co., Ltd. | 100.00 | 1, 53 | |
HSBC Securities (Japan) Limited | 100.00 | 18 | |
HSBC Securities (Singapore) Pte Limited | 100.00 | 20 | |
HSBC Securities (South Africa) (Pty) Limited | 100.00 | 114 | |
HSBC Securities (Taiwan) Corporation Limited | 100.00 | 60 | |
HSBC Securities (USA) Inc. | 100.00 | 15 |
HSBC Securities and Capital Markets (India) Private Limited | 99.99 | 50 | |
HSBC Securities Brokers (Asia) Limited | 100.00 | 46 | |
HSBC Securities Investments (Asia) Limited | 100.00 | 46 | |
HSBC Securities Services (Bermuda) Limited | 100.00 | 23 | |
HSBC Securities Services (Guernsey) Limited | 100.00 | 22 | |
HSBC Securities Services (Ireland) DAC | 100.00 | 109 | |
HSBC Securities Services (Luxembourg) S.A. | 100.00 | 101 | |
HSBC Securities Services Holdings (Ireland) DAC | 100.00 | 109 | |
HSBC Securities Services Nominees Limited | 100.00 | 1, 46 | |
HSBC Seguros de Retiro (Argentina) S.A. | 100.00 | (99.99) | 51 |
HSBC Seguros de Vida (Argentina) S.A. | 100.00 | (99.99) | 51 |
HSBC Seguros, S.A de C.V., Grupo Financiero HSBC | 100.00 | (99.99) | 16 |
HSBC Service Company Germany GmbH | 100.00 | (99.99) | 1, 87 |
HSBC Service Delivery (Polska) Sp. z o.o. | 100.00 | 115 | |
HSBC Services (France) | 100.00 | (99.99) | 35 |
HSBC Services Japan Limited | 100.00 | 92 | |
HSBC Services USA Inc. | 100.00 | 116 | |
HSBC Servicios Financieros, S.A. de C.V | 100.00 | (99.99) | 16 |
HSBC Servicios, S.A. DE C.V., Grupo Financiero HSBC | 100.00 | (99.99) | 16 |
HSBC SFH (France) | 100.00 | (99.99) | 4, 54 |
HSBC SFT (C.I.) Limited | 100.00 | 22 | |
HSBC Software Development (Guangdong) Limited | 100.00 | 117 | |
HSBC Software Development (India) Private Limited | 100.00 | 118 | |
HSBC Software Development (Malaysia) Sdn Bhd | 100.00 | 78 | |
HSBC Specialist Investments Limited | 100.00 | 18 | |
HSBC Technology & Services (China) Limited | 100.00 | 57 | |
HSBC Technology & Services (USA) Inc. | 100.00 | 15 | |
HSBC Titan GmbH & Co. KG | 100.00 | (99.99) | 1, 87 |
HSBC Transaction Services GmbH | 100.00 | (99.99) | 6, 87 |
HSBC Trinkaus & Burkhardt (International) S.A. | 100.00 | (99.99) | 119 |
HSBC Trinkaus & Burkhardt Gesellschaft fur Bankbeteiligungen mbH | 100.00 | (99.99) | 87 |
HSBC Trinkhaus & Burkhardt GmbH | 100.00 | (99.99) | 87 |
HSBC Trinkaus Europa Immobilien-Fonds Nr. 5 GmbH | 100.00 | (99.99) | 87 |
HSBC Trinkaus Family Office GmbH | 100.00 | (99.99) | 6, 87 |
HSBC Trinkaus Real Estate GmbH | 100.00 | (99.99) | 6, 87 |
HSBC Trust Company (Canada) | 100.00 | 65 | |
HSBC Trust Company (Delaware), National Association | 100.00 | 97 | |
HSBC Trust Company (UK) Limited | 100.00 | 18 | |
HSBC Trustee (C.I.) Limited | 100.00 | 74 | |
HSBC Trustee (Cayman) Limited | 100.00 | 120 | |
HSBC Trustee (Guernsey) Limited | 100.00 | 22 | |
HSBC Trustee (Hong Kong) Limited | 100.00 | 46 | |
HSBC Trustee (Singapore) Limited | 100.00 | 20 | |
HSBC UK Bank plc | 100.00 | 2, 17 | |
HSBC UK Client Nominee Limited | 100.00 | 17 | |
HSBC UK Covered Bonds LLP | N/A | 0, 17 | |
HSBC UK Holdings Limited | 100.00 | 2, 18 | |
HSBC USA Inc. | 100.00 | 107 | |
HSBC Ventures USA Inc. | 100.00 | 15 | |
HSBC Violet Investments (Mauritius) Limited | 100.00 | 75 | |
HSBC Wealth Client Nominee Limited | 100.00 | 1, 17 | |
HSBC Yatirim Menkul Degerler A.S. | 100.00 | 63 | |
HSI Asset Securitization Corporation | 100.00 | 15 | |
HSI International Limited | 100.00 | (62.14) | 38 |
HSIL Investments Limited | 100.00 | 18 |
St Cross Trustees Limited | 100.00 | 17 | |
Sun Hung Kai Development (Lujiazui III) Limited | 100.00 | 12, 57 | |
Swan National Limited | 100.00 | 18 | |
The Hongkong and Shanghai Banking Corporation Limited | 100.00 | 5, 46 | |
The Venture Catalysts Limited | 100.00 | 18 | |
Tooley Street View Limited | 100.00 | 2, 18 | |
Tower Investment Management | 100.00 | 130 | |
Trinkaus Australien Immobilien Fonds Nr. 1 Brisbane GmbH & Co. KG | 100.00 | (99.99) | 87 |
Trinkaus Australien Immobilien-Fonds Nr. 1 Treuhand-GmbH | 100.00 | (99.99) | 6, 87 |
Trinkaus Europa Immobilien-Fonds Nr.3 Objekt Utrecht Verwaltungs-GmbH | 100.00 | (99.99) | 87 |
Trinkaus Immobilien-Fonds Geschaeftsfuehrungs-GmbH | 100.00 | (99.99) | 6, 87 |
Trinkaus Immobilien-Fonds Verwaltungs- GmbH | 100.00 | (99.99) | 6, 87 |
Trinkaus Private Equity Management GmbH | 100.00 | (99.99) | 87 |
Trinkaus Private Equity Verwaltungs GmbH | 100.00 | (99.99) | 6, 87 |
Tropical Nominees Limited | 100.00 | 73 | |
Turnsonic (Nominees) Limited | 100.00 | 17 | |
Valeurs Mobili\u00e8res Elys\u00e9es | 100.00 | (99.99) | 35 |
Wardley Limited | 100.00 | 46 | |
Wayfoong Nominees Limited | 100.00 | 46 | |
Westminster House, LLC | N/A | 0, 15 | |
Woodex Limited | 100.00 | 23 | |
Yan Nin Development Company Limited | 100.00 | (62.14) | 38 |
Joint ventures | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
Climate Asset Management Limited | 40.00 | 1, 131 | |
Global Payments Technology Mexico S.A. De C.V | 50.00 | 16 | |
HCM Holdings Limited (In Liquidation) | 50.99 | 45 | |
Pentagreen Capital Pte. Ltd | 50.00 | 1, 132 | |
ProServe Bermuda Limited | 50.00 | 133 | |
The London Silver Market Fixing Limited | N/A | 0 1, 134 | |
Vaultex UK Limited | 50.00 | 135 |
Associates | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
Bank of Communications Co., Ltd. | 19.03 | 136 | |
Barrowgate Limited | 15.31 | 137 | |
BGF Group PLC | 24.61 | 138 | |
Bud Financial Limited | 5.36 | 1, 139 | |
Canara HSBC Life Insurance Company Limited | 26.00 | 140 | |
Contour Pte Ltd | 12.65 | 1, 141 | |
Divido Financial Services Limited | 5.56 | 1, 142 | |
Electronic Payment Services Company (Hong Kong) Limited | 38.66 | 46 | |
Episode Six Limited | 7.02 | 1, 143 | |
EPS Company (Hong Kong) Limited | 38.66 | 46 | |
EURO Secured Notes Issuer | 16.67 | 144 | |
GZHS Research Co Ltd | 20.50 | 145 | |
HSBC Jintrust Fund Management Company Limited | 49.00 | 57 | |
Liquidity Match LLC | N/A | 0, 1, 146 | |
London Precious Metals Clearing Limited | 30.00 | 1, 147 | |
MENA Infrastructure Fund (GP) Ltd | 33.33 | 145 | |
Monese Ltd | 5.39 | 1, 149 | |
Quantexa Ltd | 10.10 | 131 | |
Services Epargne Entreprise | 14.18 | 150 | |
The London Gold Market Fixing Limited | 25.00 | 134 | |
The Saudi British Bank | 31.00 | 152 | |
Threadneedle Software Holdings Limited | 6.56 | 1, 153 | |
Trade Information Network Limited | 16.67 | 1, 154 | |
Trinkaus Europa Immobilien-Fonds Nr. 7 Frankfurt Mertonviertel KG | N/A | 0, 87 | |
Vizolution Limited | 17.95 | 1, 155 | |
We Trade Innovation Designated Activity Company | 9.88 | 1, 156 |
Registered offices | |
15 | c/o The Corporation Trust Company 1209 Orange Street, Wilmington, Delaware, United States of America, 19801 |
16 | Paseo de la Reforma 347 Col. Cuauhtemoc, Mexico, 06500 |
17 | 1 Centenary Square, Birmingham, United Kingdom, B1 1HQ |
18 | 8 Canada Square, London, United Kingdom, E14 5HQ |
19 | 5 Donegal Square South, Northern Ireland, Belfast, United Kingdom, BT1 5JP |
20 | 10 Marina Boulevard #48-01 Marina Bay Financial Centre, Singapore, 018983 |
21 | 1909 Avenida Presidente Juscelino Kubitschek, 19\u00b0 andar, Torre Norte, S\u00e3o Paulo Corporate Towers, S\u00e3o Paulo, Brazil, 04551-903 |
22 | Arnold House, St Julians Avenue, St Peter Port, Guernsey, GY1 3NF |
23 | 37 Front Street, Hamilton, Bermuda, HM 11 |
24 | First Floor, Xinhua Bookstore Xindong Road (SE of roundabout), Miyun District, Beijing, China |
25 | Oak House Hirzel Street, St Peter Port, Guernsey, GY1 2NP |
26 | 2929 Walden Avenue, Depew, New York, United States of |
27 | Corporation Service Company 251 Little Falls Drive, Wilmington, Delaware, United States of America, 19808 |
28 | Solidere - Rue Saad Zaghloul Immeuble - 170 Marfaa, P.O. Box 17 5476 Mar Michael, Beyrouth, Lebanon, 11042040 |
29 | No 1, Bei Huan East Road Dazu County, Chongqing, China |
30 | No 107 Ping Du Avenue (E), Sanhe Town, Fengdu County, Chongqing, China |
31 | No. 3, 5, 7, Haitang Erzhi Road Changyuan, Rongchang, Chongqing, China, 402460 |
32 | c/o Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town, Grand Cayman, Cayman Islands, KY1-9005 |
33 | First & Second Floor, No.3 Nanshan Road, Pulandian , Dalian, Liaoning, China |
34 | 160 Mine Lake CT, Ste 200, Raleigh, North Carolina, United States Of America, 27615-6417 |
35 | 38 avenue Kl\u00e9ber, Paris, France, 75116 |
36 | MMG Tower, 23 floor Ave. Paseo del Mar Urbanizacion Costa del Este, Panama |
73 | P.O. Box 1109, Strathvale House, Ground Floor, 90 North Church Street , George Town, Grand Cayman, Cayman Islands, KY1-1102 |
74 | HSBC House Esplanade, St. Helier, Jersey, JE1 1HS |
75 | c/o Rogers Capital St. Louis Business Centre, Cnr Desroches & St Louis Streets, Port Louis, Mauritius |
76 | 49 avenue J.F. Kennedy, Luxembourg, 1855 |
77 | 4-17/F, Office Tower 2 TaiKoo Hui, No. 381 Tian He Road, Tian He District, Guangzhou, Guangdong, China |
78 | Suite 1005, 10th Floor, Wisma Hamzah Kwong, Hing No. 1, Leboh Ampang, Kuala Lumpur, Malaysia, 50100 |
79 | Filinvest One Building, Northgate Cyberzone, Filinvest Corporate City, Alabang, Muntinlupa City, Philippines |
80 | HSBC House, Plot No.8, Survey No.64 (Part), Hightec City Layout Madhapur, Hyderabad, India, 500081 |
81 | 439, Sri Jayawardenapura Mawatha Welikada, Rajagiriya, Colombo, Sri Lanka |
82 | Smart Village 28th Km Cairo- Alexandria Desert Road Building, Cairo, Egypt |
83 | 16 York Street, 6th Floor, Toronto, Ontario, Canada, M5J 0E6 |
84 | Centre Ville 1341 Building, 4th Floor, Patriarche Howayek Street (facing Beirut Souks), PO Box Riad El Solh, Lebanon, 9597 |
85 | World Trade Center, Montevideo Avenida Luis Alberto de Herrera 1248, Torre 1, Piso 15, Oficina 1502, Montevideo, Uruguay, CP 11300 |
86 | Room 655, Building A, No. 888, Huan Hu West Two Road, Lin Gang New Area of Shanghai (Pilot) Free Trade Zone, Shanghai, China |
87 | Hansaallee 3, D\u00fcsseldorf, Germany, 40549 |
88 | 80 Mill Street, Qormi, Malta, QRM 3101 |
89 | 26 Gartenstrasse, Zurich, Switzerland, 8002 |
90 | 24th Floor, 97-99, Sec.2, Tunhwa S. Road, Taipei, Taiwan |
91 | 452 Fifth Avenue, New York, United States of America, NY10018 |
92 | Mareva House, 4 George Street, Nassau, Bahamas |
93 | 4 rue Peternelchen, Howald, Luxembourg, 2370 |
94 | 6th floor HSBC Centre 18, Cybercity, Ebene, Mauritius, 72201 |
95 | 18th Floor, Tower 1, HSBC Centre, 1 Sham Mong Road, Kowloon, Hong Kong |
96 | Unit 201 Floor 2, Building 3, No. 12, Anxiang Street, Shunyi District, Beijing, China |
97 | 300 Delaware Avenue, Suite 1401, Wilmington, Delaware, United States of America, 19801 |
98 | Woodbourne Hall, Road Town, Tortola, British Virgin Islands, P.O. Box 916 |
99 | PO Box 71, Craigmuir Chambers, Road Town Tortola, British Virgin Islands |
100 | 5/F HSBC Centre 3058 Fifth Ave West, Bonifacio Global City, Taguig City, Philippines |
101 | 18 Boulevard de Kockelscheuer, Luxembourg, 1821 |
102 | 21 Farncombe Road Worthing, United Kingdom, BN11 2BW |
103 | Arnold House, St Julians Avenue, St Peter Port, Guernsey, GY1 1WA |
104 | 345-6791, HSBC Tower, Burj Khalifa Community, Dubai, United Arab Emirates |
105 | Office No.16, Owned by HSBC Bank Middle East Limited, Dubai Branch, Bur Dubai, Burj Khalifa, Dubai, United Arab Emirates |
106 | HSBC Tower, Level 21, 188 Quay Street, Auckland, New Zealand, 1010 |
107 | The Corporation Trust Incorporated, 2405 York Road, Suite 201, Lutherville Timonium, Maryland, United States of America, 21093 |
108 | Quai des Bergues 9-17, Geneva, Switzerland, 1201 |
109 | 1 Grand Canal Square, Grand Canal Harbour, Dublin 2, Ireland, D02 P820 |
110 | 5 rue Heienhaff, Senningerberg, Luxembourg, 1736 |
111 | Block 27 A&B, Qianhai Enterprise Dream Park No. 63 Qianwan Yi Road, Shenzhen-Hong Kong Cooperation Zone, Shenzhen, China, 518052 |
112 | HSBC Building 7267 Olaya - Al Murrooj, Riyadh, Saudi Arabia, 12283 - 2255 |
113 | Unit 1 GF The Commerical Complex Madrigal Avenue, Ayala Alabang Village, Muntinlupa City, Philippines, 1780 |
114 | 1 Mutual Place, 107 Rivonia Road, Sandton, Gauteng, South Africa, 2196 |
115 | Kapelanka 42A , Krakow, Poland, 30-347 |
116 | C T Corporation System 820 Bear Tavern Road, West Trenton, New Jersey, United States of America, 08628 |
117 | L22, Office Tower 2, Taikoo Hui, 381 Tianhe Road, Tianhe District, Guangzhou, Guangdong, China |
118 | Business Bay, Wing 2, Tower B, Survey no 103, Hissa no. 2, Airport road, Yerwada, Pune, India, 411006 |
119 | 16 Boulevard d\u2019Avranches, Luxembourg, Luxembourg, L-1160 |
120 | P.O. Box 309 Ugland House, Grand Cayman, Cayman Islands, KY1-1104 |
121 | No. 56 Yu Rong Street, Macheng, China, 438300 |
122 | No. 205 Lie Shan Road Suizhou, Hubei, China |
123 | Building 3, Yin Zuo Di Jing Wan Tianmen New City, Tianmen, Hubei Province, China |
124 | RM101, 102 & 106 Sunshine Fairview, Sunshine Garden, Pedestrian Walkway, Pingjiang, China |
125 | Kings Meadow Chester Business Park , Chester, United Kingdom, CH99 9FB |
126 | World Trade Center 1, Jalan Jenderal Sudirman Kavling 29 - 31, Jakarta, Indonesia, 12920 |
127 | No. 198-2 Chengshan Avenue (E), Rongcheng, China, 264300 |
128 | Room 1303-13062 Marine Center Main Tower, 59 Linhai Road, Nanshan District, Shenzhen, China |
129 | Woodbourne Hall, Road Town, Tortola, British Virgin Islands, P.O. Box 3162 |
130 | 25 Main St. P.O. Box 694, Grand Cayman KY1 1107, Cayman Islands, KY1 1107 |
131 | Hill House, 1 Little New Street, London , United Kingdom, EC4A 3TR |
132 | 60B Orchard Road #06-18, The Atrium @Orchard, Singapore, 238891 |
133 | c/o MUFG Fund Services (Bermuda) Limited, Cedar House, 4th Floor North, 41 Cedar Avenue, Hamilton, Bermuda, HM 12 |
134 | c/o Hackwood Secretaries Limited, One Silk Street, London, United Kingdom, EC2Y 8HQ |
135 | All Saints Triangle, Caledonian Road, London, United Kingdom, N19UT |
136 | No.188, Yin Cheng Zhong Road China (Shanghai), Pilot Free Trade Zone, Shanghai, China |
137 | 50/F, Lee Garden One, 33 Hysan Avenue, Hong Kong |
138 | 13-15 York Buildings, London, United Kingdom, WC2N 6JU |
139 | Linen Court, Floor 3, 10 East Road, London, United Kingdom, N1 6AD |
140 | Unit No. 208, 2nd Floor, Kanchenjunga Building 18, Barakhamba Road, New Delhi, India, 110001 |
141 | 50 Raffles Place, #32-01 Singapore Land Tower, Singapore, 048623 |
142 | Office 7, 35-37 Ludgate Hill, London, United Kingdom, EC4M 7JN |
143 | 100 Town Square Place, Suite 201, Jersey City, New Jersey, United States Of America, 07310 |
144 | 7th Floor, 62 Threadneedle Street, London, United Kingdom, EC2R 8HP |
145 | Precinct Building 4, Level 3, Dubai International Financial Centre, Dubai, United Arab Emirates, PO Box 506553 |
146 | 9/F Amtel Building, 148 des Voeux Road Central, Central, Hong Kong |
147 | 3 Avenue de l\u2019Opera , Paris, France, 75001 |
148 | Room 1303, 106 Feng Ze Dong Road, Nansha District, Guangzhou, Guangdong, China |
149 | Eagle House, 163 City Road, London, United Kingdom, EC1V 1NR |
150 | 32 rue du Champ de Tir, Nantes, France, 44300 |
151 | Ernst-Schneider-Platz 1 , Duesseldorf, Germany, 40212 |
152 | Al Amir Abdulaziz Ibn Mossaad Ibn Jalawi Street, Riyadh, Saudi Arabia |
153 | 2nd Floor, Regis House, 45 King William Street, London, United Kingdom, EC4R 9AN |
154 | 3 More London Riverside, London, United Kingdom, SE1 2AQ |
155 | Office Block A, Bay Studios Business Park, Fabian Way, Swansea, Wales, United Kingdom, SA1 8QB |
156 | 10 Earlsfort Terrace, Dublin, Ireland, DO2 T380 |
19 | Investments in subsidiaries |
Main subsidiaries of HSBC Holdings1 | |||
At 31 Dec 2022 | |||
Place of incorporation or registration | HSBC\u2019s interest % | ||
Share class | |||
Europe | |||
HSBC Bank plc | England and Wales | 100 | \u00a31 Ordinary, $0.01 Non-Cumulative Third Dollar Preference |
HSBC UK Bank plc | England and Wales | 100 | \u00a31 Ordinary |
HSBC Continental Europe | France | 99.99 | \u20ac5 Actions |
HSBC Trinkaus & Burkhardt GmbH | Germany | 99.99 | \u20ac1 Ordinary |
Asia | |||
Hang Seng Bank Limited | Hong Kong | 62.14 | HK$5 Ordinary |
HSBC Bank (China) Company Limited | People\u2019s Republic of China | 100 | CNY1 Ordinary |
HSBC Bank Malaysia Berhad | Malaysia | 100 | RM0.5 Ordinary |
HSBC Life (International) Limited | Bermuda | 100 | HK$1 Ordinary |
The Hongkong and Shanghai Banking Corporation Limited | Hong Kong | 100 | Ordinary no par value |
Middle East and North Africa | |||
HSBC Bank Middle East Limited | United Arab Emirates | 100 | $1 Ordinary and $1 Cumulative Redeemable Preference shares |
North America | |||
HSBC Bank Canada | Canada | 100 | Common no par value and Preference no par value |
HSBC Bank USA, N.A. | US | 100 | $100 Common and $0.01 Preference |
Latin America | |||
HSBC Mexico, S.A., Instituci\u00f3n de Banca M\u00faltiple, Grupo Financiero HSBC | Mexico | 99.99 | MXN2 Ordinary |
Impairment test results | |||
Investments | Recoverable amount | Discount rate | Long-term growth rate |
At 31 Dec 2022 | $m | % | % |
HSBC North America Holdings Limited | 18,363 | 10.00 | 2.22 |
HSBC Bank Bermuda Limited | 2,471 | 10.40 | 1.87 |
At 31 Dec 2021 | |||
HSBC North America Holdings Limited | 20,560 | 9.20 | 3.50 |
HSBC Bank Bermuda Limited | 1,643 | 9.50 | 1.71 |
Reasonably possible changes in key assumptions | ||||
Input | Key assumptions | Associated risks | Reasonably possible change | |
Investment | ||||
HSBC North America Holdings Limited and HSBC Bank Bermuda Limited (subsidiaries of HSBC Overseas Holdings (UK) Limited) | Free cash flows projections | \u2022Level of interest rates and yield curves. \u2022Competitors\u2019 positions within the market. | \u2022Strategic actions relating to revenue and costs are not achieved. | \u2022Free cash flow projections decrease by 10%. |
Discount rate | \u2022Discount rate used is a reasonable estimate of a suitable market rate for the profile of the business. | \u2022External evidence arises to suggest that the rate used is not appropriate to the business. | \u2022Discount rate increases by 1%. |
38 | HSBC Holdings\u2019 subsidiaries, joint ventures and associates |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | ||||
452 TALF Plus ABS Opportunities SPV LLC | 100.00 | 15 | ||||
452 TALF SPV LLC | 100.00 | 15 | ||||
Almacenadora Banpacifico S.A. (In Liquidation) | 99.99 | 16 | ||||
Assetfinance December (F) Limited | 100.00 | 17 | ||||
Assetfinance December (H) Limited | 100.00 | 18 | ||||
Assetfinance December (P) Limited | 100.00 | 18 | ||||
Assetfinance December (R) Limited | 100.00 | 18 | ||||
Assetfinance June (A) Limited | 100.00 | 18 | ||||
Assetfinance June (D) Limited | 100.00 | 17 | ||||
Assetfinance Limited | 100.00 | 18 | ||||
Assetfinance March (B) Limited | 100.00 | 19 | ||||
Assetfinance March (D) Limited | 100.00 | 17 | ||||
Assetfinance March (F) Limited | 100.00 | 18 | ||||
Assetfinance September (F) Limited | 100.00 | 18 | ||||
Assetfinance September (G) Limited | 100.00 | 17 | ||||
AXA Insurance Pte. Ltd. | 100.00 | 1, 20 | ||||
B&Q Financial Services Limited | 100.00 | 18 | ||||
Banco HSBC S.A. | 100.00 | 21 | ||||
Banco Nominees (Guernsey) Limited | 100.00 | 22 | ||||
Banco Nominees 2 (Guernsey) Limited | 100.00 | 22 | ||||
Banco Nominees Limited | 100.00 | 23 | ||||
Beau Soleil Limited Partnership | N/A | 0, 46 | ||||
Beijing Miyun HSBC Rural Bank Company Limited | 100.00 | 12, 24 | ||||
BentallGreenOak China Real Estate Investments L.P. | N/A | 0, 1, 25 | ||||
Canada Crescent Nominees (UK) Limited | 100.00 | 18 | ||||
Canada Square Nominees (UK) Limited | 100.00 | 18 | ||||
Capco/Cove, Inc. | 100.00 | 26 | ||||
Card-Flo #1, Inc. | 100.00 | 15 | ||||
Card-Flo #3, Inc. | 100.00 | 15 | ||||
CC&H Holdings LLC | 100.00 | 27 | ||||
CCF & Partners Asset Management Limited | 100.00 | (99.99) | 18 | |||
CCF Holding (Liban) S.A.L. (In Liquidation) | 74.99 | 28 | ||||
Charterhouse Administrators (D.T.) Limited | 100.00 | (99.99) | 18 | |||
Charterhouse Management Services Limited | 100.00 | (99.99) | 18 | |||
Charterhouse Pensions Limited | 100.00 | 18 | ||||
Chongqing Dazu HSBC Rural Bank Company Limited | 100.00 | 12, 29 | ||||
Chongqing Fengdu HSBC Rural Bank Company Limited | 100.00 | 12, 30 | ||||
Chongqing Rongchang HSBC Rural Bank Company Limited | 100.00 | 12, 31 | ||||
COIF Nominees Limited | N/A | 0, 18 | ||||
Corsair IV Financial Services Capital Partners - B, LP | N/A | 0, 1, 32 | ||||
Dalian Pulandian HSBC Rural Bank Company Limited | 100.00 | 12, 33 | ||||
Decision One Mortgage Company, LLC | N/A | 0, 34 | ||||
Dem 9 | 100.00 | (99.99) | 4, 35 | |||
Dempar 1 | 100.00 | (99.99) | 4, 35 | |||
Desarrollo Turistico, S.A. de C.V. (In Liquidation) | 100.00 | (99.99) | 16 | |||
Electronic Data Process M\u00e9xico, S.A. de C.V. | 100.00 | 1, 16 | ||||
Eton Corporate Services Limited | 100.00 | 22 | ||||
Far East Leasing SA (In Dissolution) | 100.00 | 36 | ||||
Flandres Contentieux S.A. | 100.00 | (99.99) | 35 | |||
Fonci\u00e8re Elys\u00e9es | 100.00 | (99.99) | 35 | |||
Fujian Yongan HSBC Rural Bank Company Limited | 100.00 | 12, 37 | ||||
Fulcher Enterprises Company Limited | 100.00 | (62.14) | 38 | |||
Fundacion HSBC, A.C. | 100.00 | (99.99) | 11, 16 | |||
Giller Ltd. | 100.00 | 26 |
HSBC Bank (General Partner) Limited | 100.00 | 79 | |
HSBC Bank (Mauritius) Limited | 100.00 | 58 | |
HSBC Bank (RR) (Limited Liability Company) | N/A | 0, 13, 59 | |
HSBC Bank (Singapore) Limited | 100.00 | 20 | |
HSBC Bank (Taiwan) Limited | 100.00 | 60 | |
HSBC Bank (Uruguay) S.A. | 100.00 | 61 | |
HSBC Bank (Vietnam) Ltd. | 100.00 | 62 | |
HSBC Bank A.S. | 100.00 | (99.99) | 63 |
HSBC Bank Argentina S.A. | 99.99 | 51 | |
HSBC Bank Armenia cjsc | 100.00 | 64 | |
HSBC Bank Australia Limited | 100.00 | 55 | |
HSBC Bank Bermuda Limited | 100.00 | 23 | |
HSBC Bank Canada | 100.00 | 65 | |
HSBC Bank Capital Funding (Sterling 1) LP | N/A | 0, 79 | |
HSBC Bank Capital Funding (Sterling 2) LP | N/A | 0, 79 | |
HSBC Bank Egypt S.A.E | 94.54 | 66 | |
HSBC Bank Malaysia Berhad | 100.00 | 49 | |
HSBC Bank Malta p.l.c. | 70.03 | 67 | |
HSBC Bank Middle East Limited | 100.00 | 68 | |
HSBC Bank Middle East Limited Representative Office Morocco SARL (In Liquidation) | 100.00 | 69 | |
HSBC Bank Oman S.A.O.G. | 51.00 | 70 | |
HSBC Bank Pension Trust (UK) Limited | 100.00 | 18 | |
HSBC Bank plc | 100.00 | 2, 18 | |
HSBC Bank USA, National Association | 100.00 | 71 | |
HSBC Branch Nominee (UK) Limited | 100.00 | 17 | |
HSBC Brasil Holding S.A. | 100.00 | 21 | |
HSBC Broking Forex (Asia) Limited | 100.00 | 46 | |
HSBC Broking Futures (Asia) Limited | 100.00 | 46 | |
HSBC Broking Futures (Hong Kong) Limited | 100.00 | 46 | |
HSBC Broking Securities (Asia) Limited | 100.00 | 46 | |
HSBC Broking Securities (Hong Kong) Limited | 100.00 | 46 | |
HSBC Broking Services (Asia) Limited | 100.00 | 46 | |
HSBC Canadian Covered Bond (Legislative) GP Inc. | 100.00 | 72 | |
HSBC Canadian Covered Bond (Legislative) Guarantor Limited Partnership | N/A | 0, 72 | |
HSBC Capital (USA), Inc. | 100.00 | 15 | |
HSBC Capital Funding (Dollar 1) L.P. | N/A | 79 | |
HSBC Card Services Inc. | 100.00 | 15 | |
HSBC Casa de Bolsa, S.A. de C.V., Grupo | 100.00 | (99.99) | 16 |
HSBC Cayman Limited | 100.00 | 73 | |
HSBC Cayman Services Limited | 100.00 | 73 | |
HSBC City Funding Holdings | 100.00 | 18 | |
HSBC Client Holdings Nominee (UK) Limited | 100.00 | 18 | |
HSBC Client Nominee (Jersey) Limited | 100.00 | 74 | |
HSBC Columbia Funding, LLC | N/A | 0, 15 | |
HSBC Continental Europe | 99.99 | 35 | |
HSBC Corporate Advisory (Malaysia) Sdn Bhd | 100.00 | 49 | |
HSBC Corporate Finance (Hong Kong) Limited | 100.00 | 46 | |
HSBC Corporate Secretary (UK) Limited | 100.00 | 2, 18 | |
HSBC Corporate Trustee Company (UK) Limited | 100.00 | 18 | |
HSBC Custody Nominees (Australia) Limited | 100.00 | 55 | |
HSBC Custody Services (Guernsey) Limited | 100.00 | 22 | |
HSBC Daisy Investments (Mauritius) Limited | 100.00 | 75 | |
HSBC Diversified Loan Fund General Partner Sarl | N/A | 76 | |
HSBC Electronic Data Processing (Guangdong) Limited | 100.00 | 12, 77 | |
HSBC Electronic Data Processing (Malaysia) Sdn Bhd | 100.00 | 78 | |
HSBC Electronic Data Processing (Philippines), Inc. | 99.99 | 79 | |
HSBC Electronic Data Processing India Private Limited | 100.00 | 80 |
HSBC Infrastructure Debt GP 1 S.\u00e0 r.l. | N/A | 0, 93 | |
HSBC Infrastructure Debt GP 2 S.\u00e0 r.l. | N/A | 0, 93 | |
HSBC Infrastructure Limited | 100.00 | 18 | |
HSBC Institutional Trust Services (Asia) | 100.00 | 46 | |
HSBC Institutional Trust Services (Bermuda) Limited | 100.00 | 23 | |
HSBC Institutional Trust Services (Mauritius) Limited | 100.00 | 94 | |
HSBC Institutional Trust Services (Singapore) Limited | 100.00 | 20 | |
HSBC Insurance (Asia) Limited | 100.00 | 95 | |
HSBC Insurance (Asia-Pacific) Holdings Limited | 100.00 | 46 | |
HSBC Insurance (Bermuda) Limited | 100.00 | 23 | |
HSBC Insurance (Singapore) Pte. Limited | 100.00 | 20 | |
HSBC Insurance Agency (USA) Inc. | 100.00 | 91 | |
HSBC Insurance Brokerage Company Limited | 100.00 | 1, 96 | |
HSBC Insurance Brokers Greater China Limited | 100.00 | 1, 46 | |
HSBC Insurance Holdings Limited | 100.00 | 2, 18 | |
HSBC Insurance SAC 1 (Bermuda) Limited | 100.00 | 23 | |
HSBC Insurance SAC 2 (Bermuda) Limited | 100.00 | 1, 23 | |
HSBC Insurance Services Holdings Limited | 100.00 | 18 | |
HSBC International Finance Corporation (Delaware) | 100.00 | 97 | |
HSBC International Trustee (BVI) Limited | 100.00 | 98 | |
HSBC International Trustee (Holdings) Pte. Limited | 100.00 | 20 | |
HSBC International Trustee Limited | 100.00 | 99 | |
HSBC Inversiones S.A. | 100.00 | 56 | |
HSBC InvestDirect (India) Private Limited | 100.00 | 52 | |
HSBC InvestDirect Financial Services (India) Limited | 99.99 | (99.98) | 52 |
HSBC InvestDirect Sales & Marketing (India) Limited | 98.99 | (98.98) | 50 |
HSBC InvestDirect Securities (India) Private Limited | 99.99 | 52 | |
HSBC Investment and Insurance Brokerage, Philippines Inc. | 99.99 | 100 | |
HSBC Investment Bank Holdings B.V. | 100.00 | 18 | |
HSBC Investment Bank Holdings Limited | 100.00 | 18 | |
HSBC Investment Company Limited | 100.00 | 2, 18 | |
HSBC Investment Funds (Canada) Inc. | 100.00 | 65 | |
HSBC Investment Funds (Hong Kong) Limited | 100.00 | 46 | |
HSBC Investment Funds (Luxembourg) SA | 100.00 | 101 | |
HSBC Invoice Finance (UK) Limited | 100.00 | 102 | |
HSBC Issuer Services Common Depositary Nominee (UK) Limited | 100.00 | 18 | |
HSBC Issuer Services Depositary Nominee (UK) Limited | 100.00 | 18 | |
HSBC Latin America B.V. | 100.00 | 18 | |
HSBC Latin America Holdings (UK) Limited | 100.00 | 2, 18 | |
HSBC Leasing (Asia) Limited | 100.00 | 46 | |
HSBC Life (Bermuda) Limited | 100.00 | 23 | |
HSBC Life (Cornell Centre) Limited | 100.00 | 95 | |
HSBC Life (Edwick Centre) Limited | 100.00 | 95 | |
HSBC Life (International) Limited | 100.00 | 23 | |
HSBC Life (Property) Limited | 100.00 | 95 | |
HSBC Life (Tsing Yi Industrial) Limited | 100.00 | 95 | |
HSBC Life (UK) Limited | 100.00 | 18 | |
HSBC Life (Workshop) Limited | 100.00 | 1, 95 | |
HSBC Life Assurance (Malta) Limited | 100.00 | (70.03) | 88 |
HSBC Life Insurance Company Limited | 100.00 | 12, 57 | |
HSBC LU Nominees Limited | 100.00 | 18 | |
HSBC Management (Guernsey) Limited | 100.00 | 103 | |
HSBC Markets (USA) Inc. | 100.00 | 15 |
HSBC Marking Name Nominee (UK) Limited | 100.00 | 18 | |
HSBC Master Trust Trustee Limited | 100.00 | 18 | |
HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo Financiero HSBC | 99.99 | 16 | |
HSBC Middle East Asset Co. LLC | 100.00 | 104 | |
HSBC Middle East Holdings B.V. | 100.00 | 2, 68 | |
HSBC Middle East Leasing Partnership | N/A | 0, 68 | |
HSBC Middle East Securities L.L.C | 100.00 | 105 | |
HSBC Mortgage Corporation (Canada) | 100.00 | 65 | |
HSBC Mortgage Corporation (USA) | 100.00 | 15 | |
HSBC Nominees (Asing) Sdn Bhd | 100.00 | 49 | |
HSBC Nominees (Hong Kong) Limited | 100.00 | 46 | |
HSBC Nominees (New Zealand) Limited | 100.00 | 106 | |
HSBC Nominees (Tempatan) Sdn Bhd | 100.00 | 49 | |
HSBC North America Holdings Inc. | 100.00 | 3, 15 | |
HSBC Operational Services GmbH | 80.00 | 87 | |
HSBC Overseas Holdings (UK) Limited | 100.00 | 2, 18 | |
HSBC Overseas Investments Corporation (New York) | 100.00 | 107 | |
HSBC Overseas Nominee (UK) Limited | 100.00 | 18 | |
HSBC Participaciones (Argentina) S.A. | 100.00 | 51 | |
HSBC PB Corporate Services 1 Limited | 100.00 | 74 | |
HSBC PB Services (Suisse) SA | 100.00 | 108 | |
HSBC Pension Trust (Ireland) DAC | 100.00 | 109 | |
HSBC Pensiones, S.A. (In Liquidation) | 100.00 | 16 | |
HSBC PI Holdings (Mauritius) Limited | 100.00 | 94 | |
HSBC Portfoy Yonetimi A.S. | 100.00 | 63 | |
HSBC Preferential LP (UK) | 100.00 | 18 | |
HSBC Private Bank (Luxembourg) S.A. | 100.00 | 101 | |
HSBC Private Bank (Suisse) SA | 100.00 | 108 | |
HSBC Private Bank (UK) Limited | 100.00 | 18 | |
HSBC Private Banking Holdings (Suisse) SA | 100.00 | 108 | |
HSBC Private Banking Nominee 3 (Jersey) Limited | 100.00 | 74 | |
HSBC Private Equity Investments (UK) Limited | 100.00 | 18 | |
HSBC Private Investment Counsel (Canada) Inc. | 100.00 | 65 | |
HSBC Private Markets Management SARL | N/A | 0, 110 | |
HSBC Private Trustee (Hong Kong) Limited | 100.00 | 46 | |
HSBC Professional Services (India) Private Limited | 100.00 | 50 | |
HSBC Property (UK) Limited | 100.00 | 18 | |
HSBC Property Funds (Holding) Limited | 100.00 | 18 | |
HSBC Provident Fund Trustee (Hong Kong) Limited | 100.00 | 46 | |
HSBC Qianhai Securities Limited | 90.00 | 12, 111 | |
HSBC Real Estate Leasing (France) | 100.00 | (99.99) | 35 |
HSBC REGIO Fund General Partner S.\u00e0 r.l. | 100.00 | 1, 93 | |
HSBC REIM (France) | 100.00 | (99.99) | 54 |
HSBC Retirement Benefits Trustee (UK) Limited | 100.00 | 1, 2, 18 | |
HSBC Retirement Services Limited | 100.00 | 1, 18 | |
HSBC Saudi Arabia, Closed Joint Stock Company | 66.19 | 112 | |
HSBC Savings Bank (Philippines) Inc. | 99.99 | 113 | |
HSBC Securities (Canada) Inc. | 100.00 | 83 | |
HSBC Securities (Egypt) S.A.E. (In Liquidation) | 100.00 | (94.65) | 66 |
HSBC Securities (Japan) Co., Ltd. | 100.00 | 1, 53 | |
HSBC Securities (Japan) Limited | 100.00 | 18 | |
HSBC Securities (Singapore) Pte Limited | 100.00 | 20 | |
HSBC Securities (South Africa) (Pty) Limited | 100.00 | 114 | |
HSBC Securities (Taiwan) Corporation Limited | 100.00 | 60 | |
HSBC Securities (USA) Inc. | 100.00 | 15 |
HSBC Securities and Capital Markets (India) Private Limited | 99.99 | 50 | |
HSBC Securities Brokers (Asia) Limited | 100.00 | 46 | |
HSBC Securities Investments (Asia) Limited | 100.00 | 46 | |
HSBC Securities Services (Bermuda) Limited | 100.00 | 23 | |
HSBC Securities Services (Guernsey) Limited | 100.00 | 22 | |
HSBC Securities Services (Ireland) DAC | 100.00 | 109 | |
HSBC Securities Services (Luxembourg) S.A. | 100.00 | 101 | |
HSBC Securities Services Holdings (Ireland) DAC | 100.00 | 109 | |
HSBC Securities Services Nominees Limited | 100.00 | 1, 46 | |
HSBC Seguros de Retiro (Argentina) S.A. | 100.00 | (99.99) | 51 |
HSBC Seguros de Vida (Argentina) S.A. | 100.00 | (99.99) | 51 |
HSBC Seguros, S.A de C.V., Grupo Financiero HSBC | 100.00 | (99.99) | 16 |
HSBC Service Company Germany GmbH | 100.00 | (99.99) | 1, 87 |
HSBC Service Delivery (Polska) Sp. z o.o. | 100.00 | 115 | |
HSBC Services (France) | 100.00 | (99.99) | 35 |
HSBC Services Japan Limited | 100.00 | 92 | |
HSBC Services USA Inc. | 100.00 | 116 | |
HSBC Servicios Financieros, S.A. de C.V | 100.00 | (99.99) | 16 |
HSBC Servicios, S.A. DE C.V., Grupo Financiero HSBC | 100.00 | (99.99) | 16 |
HSBC SFH (France) | 100.00 | (99.99) | 4, 54 |
HSBC SFT (C.I.) Limited | 100.00 | 22 | |
HSBC Software Development (Guangdong) Limited | 100.00 | 117 | |
HSBC Software Development (India) Private Limited | 100.00 | 118 | |
HSBC Software Development (Malaysia) Sdn Bhd | 100.00 | 78 | |
HSBC Specialist Investments Limited | 100.00 | 18 | |
HSBC Technology & Services (China) Limited | 100.00 | 57 | |
HSBC Technology & Services (USA) Inc. | 100.00 | 15 | |
HSBC Titan GmbH & Co. KG | 100.00 | (99.99) | 1, 87 |
HSBC Transaction Services GmbH | 100.00 | (99.99) | 6, 87 |
HSBC Trinkaus & Burkhardt (International) S.A. | 100.00 | (99.99) | 119 |
HSBC Trinkaus & Burkhardt Gesellschaft fur Bankbeteiligungen mbH | 100.00 | (99.99) | 87 |
HSBC Trinkhaus & Burkhardt GmbH | 100.00 | (99.99) | 87 |
HSBC Trinkaus Europa Immobilien-Fonds Nr. 5 GmbH | 100.00 | (99.99) | 87 |
HSBC Trinkaus Family Office GmbH | 100.00 | (99.99) | 6, 87 |
HSBC Trinkaus Real Estate GmbH | 100.00 | (99.99) | 6, 87 |
HSBC Trust Company (Canada) | 100.00 | 65 | |
HSBC Trust Company (Delaware), National Association | 100.00 | 97 | |
HSBC Trust Company (UK) Limited | 100.00 | 18 | |
HSBC Trustee (C.I.) Limited | 100.00 | 74 | |
HSBC Trustee (Cayman) Limited | 100.00 | 120 | |
HSBC Trustee (Guernsey) Limited | 100.00 | 22 | |
HSBC Trustee (Hong Kong) Limited | 100.00 | 46 | |
HSBC Trustee (Singapore) Limited | 100.00 | 20 | |
HSBC UK Bank plc | 100.00 | 2, 17 | |
HSBC UK Client Nominee Limited | 100.00 | 17 | |
HSBC UK Covered Bonds LLP | N/A | 0, 17 | |
HSBC UK Holdings Limited | 100.00 | 2, 18 | |
HSBC USA Inc. | 100.00 | 107 | |
HSBC Ventures USA Inc. | 100.00 | 15 | |
HSBC Violet Investments (Mauritius) Limited | 100.00 | 75 | |
HSBC Wealth Client Nominee Limited | 100.00 | 1, 17 | |
HSBC Yatirim Menkul Degerler A.S. | 100.00 | 63 | |
HSI Asset Securitization Corporation | 100.00 | 15 | |
HSI International Limited | 100.00 | (62.14) | 38 |
HSIL Investments Limited | 100.00 | 18 |
St Cross Trustees Limited | 100.00 | 17 | |
Sun Hung Kai Development (Lujiazui III) Limited | 100.00 | 12, 57 | |
Swan National Limited | 100.00 | 18 | |
The Hongkong and Shanghai Banking Corporation Limited | 100.00 | 5, 46 | |
The Venture Catalysts Limited | 100.00 | 18 | |
Tooley Street View Limited | 100.00 | 2, 18 | |
Tower Investment Management | 100.00 | 130 | |
Trinkaus Australien Immobilien Fonds Nr. 1 Brisbane GmbH & Co. KG | 100.00 | (99.99) | 87 |
Trinkaus Australien Immobilien-Fonds Nr. 1 Treuhand-GmbH | 100.00 | (99.99) | 6, 87 |
Trinkaus Europa Immobilien-Fonds Nr.3 Objekt Utrecht Verwaltungs-GmbH | 100.00 | (99.99) | 87 |
Trinkaus Immobilien-Fonds Geschaeftsfuehrungs-GmbH | 100.00 | (99.99) | 6, 87 |
Trinkaus Immobilien-Fonds Verwaltungs- GmbH | 100.00 | (99.99) | 6, 87 |
Trinkaus Private Equity Management GmbH | 100.00 | (99.99) | 87 |
Trinkaus Private Equity Verwaltungs GmbH | 100.00 | (99.99) | 6, 87 |
Tropical Nominees Limited | 100.00 | 73 | |
Turnsonic (Nominees) Limited | 100.00 | 17 | |
Valeurs Mobili\u00e8res Elys\u00e9es | 100.00 | (99.99) | 35 |
Wardley Limited | 100.00 | 46 | |
Wayfoong Nominees Limited | 100.00 | 46 | |
Westminster House, LLC | N/A | 0, 15 | |
Woodex Limited | 100.00 | 23 | |
Yan Nin Development Company Limited | 100.00 | (62.14) | 38 |
Joint ventures | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
Climate Asset Management Limited | 40.00 | 1, 131 | |
Global Payments Technology Mexico S.A. De C.V | 50.00 | 16 | |
HCM Holdings Limited (In Liquidation) | 50.99 | 45 | |
Pentagreen Capital Pte. Ltd | 50.00 | 1, 132 | |
ProServe Bermuda Limited | 50.00 | 133 | |
The London Silver Market Fixing Limited | N/A | 0 1, 134 | |
Vaultex UK Limited | 50.00 | 135 |
Associates | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
Bank of Communications Co., Ltd. | 19.03 | 136 | |
Barrowgate Limited | 15.31 | 137 | |
BGF Group PLC | 24.61 | 138 | |
Bud Financial Limited | 5.36 | 1, 139 | |
Canara HSBC Life Insurance Company Limited | 26.00 | 140 | |
Contour Pte Ltd | 12.65 | 1, 141 | |
Divido Financial Services Limited | 5.56 | 1, 142 | |
Electronic Payment Services Company (Hong Kong) Limited | 38.66 | 46 | |
Episode Six Limited | 7.02 | 1, 143 | |
EPS Company (Hong Kong) Limited | 38.66 | 46 | |
EURO Secured Notes Issuer | 16.67 | 144 | |
GZHS Research Co Ltd | 20.50 | 145 | |
HSBC Jintrust Fund Management Company Limited | 49.00 | 57 | |
Liquidity Match LLC | N/A | 0, 1, 146 | |
London Precious Metals Clearing Limited | 30.00 | 1, 147 | |
MENA Infrastructure Fund (GP) Ltd | 33.33 | 145 | |
Monese Ltd | 5.39 | 1, 149 | |
Quantexa Ltd | 10.10 | 131 | |
Services Epargne Entreprise | 14.18 | 150 | |
The London Gold Market Fixing Limited | 25.00 | 134 | |
The Saudi British Bank | 31.00 | 152 | |
Threadneedle Software Holdings Limited | 6.56 | 1, 153 | |
Trade Information Network Limited | 16.67 | 1, 154 | |
Trinkaus Europa Immobilien-Fonds Nr. 7 Frankfurt Mertonviertel KG | N/A | 0, 87 | |
Vizolution Limited | 17.95 | 1, 155 | |
We Trade Innovation Designated Activity Company | 9.88 | 1, 156 |
Registered offices | |
15 | c/o The Corporation Trust Company 1209 Orange Street, Wilmington, Delaware, United States of America, 19801 |
16 | Paseo de la Reforma 347 Col. Cuauhtemoc, Mexico, 06500 |
17 | 1 Centenary Square, Birmingham, United Kingdom, B1 1HQ |
18 | 8 Canada Square, London, United Kingdom, E14 5HQ |
19 | 5 Donegal Square South, Northern Ireland, Belfast, United Kingdom, BT1 5JP |
20 | 10 Marina Boulevard #48-01 Marina Bay Financial Centre, Singapore, 018983 |
21 | 1909 Avenida Presidente Juscelino Kubitschek, 19\u00b0 andar, Torre Norte, S\u00e3o Paulo Corporate Towers, S\u00e3o Paulo, Brazil, 04551-903 |
22 | Arnold House, St Julians Avenue, St Peter Port, Guernsey, GY1 3NF |
23 | 37 Front Street, Hamilton, Bermuda, HM 11 |
24 | First Floor, Xinhua Bookstore Xindong Road (SE of roundabout), Miyun District, Beijing, China |
25 | Oak House Hirzel Street, St Peter Port, Guernsey, GY1 2NP |
26 | 2929 Walden Avenue, Depew, New York, United States of |
27 | Corporation Service Company 251 Little Falls Drive, Wilmington, Delaware, United States of America, 19808 |
28 | Solidere - Rue Saad Zaghloul Immeuble - 170 Marfaa, P.O. Box 17 5476 Mar Michael, Beyrouth, Lebanon, 11042040 |
29 | No 1, Bei Huan East Road Dazu County, Chongqing, China |
30 | No 107 Ping Du Avenue (E), Sanhe Town, Fengdu County, Chongqing, China |
31 | No. 3, 5, 7, Haitang Erzhi Road Changyuan, Rongchang, Chongqing, China, 402460 |
32 | c/o Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town, Grand Cayman, Cayman Islands, KY1-9005 |
33 | First & Second Floor, No.3 Nanshan Road, Pulandian , Dalian, Liaoning, China |
34 | 160 Mine Lake CT, Ste 200, Raleigh, North Carolina, United States Of America, 27615-6417 |
35 | 38 avenue Kl\u00e9ber, Paris, France, 75116 |
36 | MMG Tower, 23 floor Ave. Paseo del Mar Urbanizacion Costa del Este, Panama |
73 | P.O. Box 1109, Strathvale House, Ground Floor, 90 North Church Street , George Town, Grand Cayman, Cayman Islands, KY1-1102 |
74 | HSBC House Esplanade, St. Helier, Jersey, JE1 1HS |
75 | c/o Rogers Capital St. Louis Business Centre, Cnr Desroches & St Louis Streets, Port Louis, Mauritius |
76 | 49 avenue J.F. Kennedy, Luxembourg, 1855 |
77 | 4-17/F, Office Tower 2 TaiKoo Hui, No. 381 Tian He Road, Tian He District, Guangzhou, Guangdong, China |
78 | Suite 1005, 10th Floor, Wisma Hamzah Kwong, Hing No. 1, Leboh Ampang, Kuala Lumpur, Malaysia, 50100 |
79 | Filinvest One Building, Northgate Cyberzone, Filinvest Corporate City, Alabang, Muntinlupa City, Philippines |
80 | HSBC House, Plot No.8, Survey No.64 (Part), Hightec City Layout Madhapur, Hyderabad, India, 500081 |
81 | 439, Sri Jayawardenapura Mawatha Welikada, Rajagiriya, Colombo, Sri Lanka |
82 | Smart Village 28th Km Cairo- Alexandria Desert Road Building, Cairo, Egypt |
83 | 16 York Street, 6th Floor, Toronto, Ontario, Canada, M5J 0E6 |
84 | Centre Ville 1341 Building, 4th Floor, Patriarche Howayek Street (facing Beirut Souks), PO Box Riad El Solh, Lebanon, 9597 |
85 | World Trade Center, Montevideo Avenida Luis Alberto de Herrera 1248, Torre 1, Piso 15, Oficina 1502, Montevideo, Uruguay, CP 11300 |
86 | Room 655, Building A, No. 888, Huan Hu West Two Road, Lin Gang New Area of Shanghai (Pilot) Free Trade Zone, Shanghai, China |
87 | Hansaallee 3, D\u00fcsseldorf, Germany, 40549 |
88 | 80 Mill Street, Qormi, Malta, QRM 3101 |
89 | 26 Gartenstrasse, Zurich, Switzerland, 8002 |
90 | 24th Floor, 97-99, Sec.2, Tunhwa S. Road, Taipei, Taiwan |
91 | 452 Fifth Avenue, New York, United States of America, NY10018 |
92 | Mareva House, 4 George Street, Nassau, Bahamas |
93 | 4 rue Peternelchen, Howald, Luxembourg, 2370 |
94 | 6th floor HSBC Centre 18, Cybercity, Ebene, Mauritius, 72201 |
95 | 18th Floor, Tower 1, HSBC Centre, 1 Sham Mong Road, Kowloon, Hong Kong |
96 | Unit 201 Floor 2, Building 3, No. 12, Anxiang Street, Shunyi District, Beijing, China |
97 | 300 Delaware Avenue, Suite 1401, Wilmington, Delaware, United States of America, 19801 |
98 | Woodbourne Hall, Road Town, Tortola, British Virgin Islands, P.O. Box 916 |
99 | PO Box 71, Craigmuir Chambers, Road Town Tortola, British Virgin Islands |
100 | 5/F HSBC Centre 3058 Fifth Ave West, Bonifacio Global City, Taguig City, Philippines |
101 | 18 Boulevard de Kockelscheuer, Luxembourg, 1821 |
102 | 21 Farncombe Road Worthing, United Kingdom, BN11 2BW |
103 | Arnold House, St Julians Avenue, St Peter Port, Guernsey, GY1 1WA |
104 | 345-6791, HSBC Tower, Burj Khalifa Community, Dubai, United Arab Emirates |
105 | Office No.16, Owned by HSBC Bank Middle East Limited, Dubai Branch, Bur Dubai, Burj Khalifa, Dubai, United Arab Emirates |
106 | HSBC Tower, Level 21, 188 Quay Street, Auckland, New Zealand, 1010 |
107 | The Corporation Trust Incorporated, 2405 York Road, Suite 201, Lutherville Timonium, Maryland, United States of America, 21093 |
108 | Quai des Bergues 9-17, Geneva, Switzerland, 1201 |
109 | 1 Grand Canal Square, Grand Canal Harbour, Dublin 2, Ireland, D02 P820 |
110 | 5 rue Heienhaff, Senningerberg, Luxembourg, 1736 |
111 | Block 27 A&B, Qianhai Enterprise Dream Park No. 63 Qianwan Yi Road, Shenzhen-Hong Kong Cooperation Zone, Shenzhen, China, 518052 |
112 | HSBC Building 7267 Olaya - Al Murrooj, Riyadh, Saudi Arabia, 12283 - 2255 |
113 | Unit 1 GF The Commerical Complex Madrigal Avenue, Ayala Alabang Village, Muntinlupa City, Philippines, 1780 |
114 | 1 Mutual Place, 107 Rivonia Road, Sandton, Gauteng, South Africa, 2196 |
115 | Kapelanka 42A , Krakow, Poland, 30-347 |
116 | C T Corporation System 820 Bear Tavern Road, West Trenton, New Jersey, United States of America, 08628 |
117 | L22, Office Tower 2, Taikoo Hui, 381 Tianhe Road, Tianhe District, Guangzhou, Guangdong, China |
118 | Business Bay, Wing 2, Tower B, Survey no 103, Hissa no. 2, Airport road, Yerwada, Pune, India, 411006 |
119 | 16 Boulevard d\u2019Avranches, Luxembourg, Luxembourg, L-1160 |
120 | P.O. Box 309 Ugland House, Grand Cayman, Cayman Islands, KY1-1104 |
121 | No. 56 Yu Rong Street, Macheng, China, 438300 |
122 | No. 205 Lie Shan Road Suizhou, Hubei, China |
123 | Building 3, Yin Zuo Di Jing Wan Tianmen New City, Tianmen, Hubei Province, China |
124 | RM101, 102 & 106 Sunshine Fairview, Sunshine Garden, Pedestrian Walkway, Pingjiang, China |
125 | Kings Meadow Chester Business Park , Chester, United Kingdom, CH99 9FB |
126 | World Trade Center 1, Jalan Jenderal Sudirman Kavling 29 - 31, Jakarta, Indonesia, 12920 |
127 | No. 198-2 Chengshan Avenue (E), Rongcheng, China, 264300 |
128 | Room 1303-13062 Marine Center Main Tower, 59 Linhai Road, Nanshan District, Shenzhen, China |
129 | Woodbourne Hall, Road Town, Tortola, British Virgin Islands, P.O. Box 3162 |
130 | 25 Main St. P.O. Box 694, Grand Cayman KY1 1107, Cayman Islands, KY1 1107 |
131 | Hill House, 1 Little New Street, London , United Kingdom, EC4A 3TR |
132 | 60B Orchard Road #06-18, The Atrium @Orchard, Singapore, 238891 |
133 | c/o MUFG Fund Services (Bermuda) Limited, Cedar House, 4th Floor North, 41 Cedar Avenue, Hamilton, Bermuda, HM 12 |
134 | c/o Hackwood Secretaries Limited, One Silk Street, London, United Kingdom, EC2Y 8HQ |
135 | All Saints Triangle, Caledonian Road, London, United Kingdom, N19UT |
136 | No.188, Yin Cheng Zhong Road China (Shanghai), Pilot Free Trade Zone, Shanghai, China |
137 | 50/F, Lee Garden One, 33 Hysan Avenue, Hong Kong |
138 | 13-15 York Buildings, London, United Kingdom, WC2N 6JU |
139 | Linen Court, Floor 3, 10 East Road, London, United Kingdom, N1 6AD |
140 | Unit No. 208, 2nd Floor, Kanchenjunga Building 18, Barakhamba Road, New Delhi, India, 110001 |
141 | 50 Raffles Place, #32-01 Singapore Land Tower, Singapore, 048623 |
142 | Office 7, 35-37 Ludgate Hill, London, United Kingdom, EC4M 7JN |
143 | 100 Town Square Place, Suite 201, Jersey City, New Jersey, United States Of America, 07310 |
144 | 7th Floor, 62 Threadneedle Street, London, United Kingdom, EC2R 8HP |
145 | Precinct Building 4, Level 3, Dubai International Financial Centre, Dubai, United Arab Emirates, PO Box 506553 |
146 | 9/F Amtel Building, 148 des Voeux Road Central, Central, Hong Kong |
147 | 3 Avenue de l\u2019Opera , Paris, France, 75001 |
148 | Room 1303, 106 Feng Ze Dong Road, Nansha District, Guangzhou, Guangdong, China |
149 | Eagle House, 163 City Road, London, United Kingdom, EC1V 1NR |
150 | 32 rue du Champ de Tir, Nantes, France, 44300 |
151 | Ernst-Schneider-Platz 1 , Duesseldorf, Germany, 40212 |
152 | Al Amir Abdulaziz Ibn Mossaad Ibn Jalawi Street, Riyadh, Saudi Arabia |
153 | 2nd Floor, Regis House, 45 King William Street, London, United Kingdom, EC4R 9AN |
154 | 3 More London Riverside, London, United Kingdom, SE1 2AQ |
155 | Office Block A, Bay Studios Business Park, Fabian Way, Swansea, Wales, United Kingdom, SA1 8QB |
156 | 10 Earlsfort Terrace, Dublin, Ireland, DO2 T380 |
21 | Goodwill and intangible assets |
2022 | 2021 | |
$m | $m | |
Goodwill | 4,156 | 5,033 |
Present value of in-force long-term insurance business | 9,900 | 9,453 |
Other intangible assets1 | 7,265 | 6,136 |
At 31 Dec | 21,321 | 20,622 |
Movement analysis of goodwill | ||
2022 | 2021 | |
$m | $m | |
Gross amount | ||
At 1 Jan | 22,215 | 23,135 |
Exchange differences | (776) | (905) |
Reclassified to held for sale and additions1 | (2,485) | \u2014 |
Other | 11 | (15) |
At 31 Dec | 18,965 | 22,215 |
Accumulated impairment losses | ||
At 1 Jan | (17,182) | (17,254) |
Impairment losses2 | \u2014 | (587) |
Exchange differences | 482 | 659 |
Reclassified to held for sale1 | 1,891 | \u2014 |
At 31 Dec | (14,809) | (17,182) |
Net carrying amount at 31 Dec | 4,156 | 5,033 |
Key assumptions in VIU calculation \u2013 significant CGUs at 1 October 2022 | ||||||||||
Carrying amount at 1\u00a0Oct 2022 | of which goodwill | Value in use at 1\u00a0Oct 2022 | Discount rate | Growth rate beyond initial cash flow | Carrying amount at 1\u00a0Oct\u00a02021 | of which goodwill | Value in use at 1\u00a0Oct 2021 | Discount rate | Growth rate beyond initial cash flow projections | |
$m | $m | $m | % | % | $m | $m | $m | % | % | |
Europe \u2013 WPB | 15,215 | 2,643 | 46,596 | 9.9 | 2.0 | 18,780 | 3,556 | 29,799 | 9.2 | 1.8 |
Movements in PVIF | ||
2022 | 2021 | |
$m | $m | |
At 1 Jan | 9,453 | 9,435 |
Acquisitions | 271 | \u2014 |
Change in PVIF of long-term insurance business | 263 | 130 |
\u2013\u00a0 value of new business written during the year | 1,322 | 1,090 |
\u2013\u00a0 expected return1 | (785) | (903) |
\u2013\u00a0 assumption changes and experience variances (see below) | (252) | (105) |
\u2013\u00a0 other adjustments | (22) | 48 |
Exchange differences and other movements | (87) | (112) |
At 31 Dec | 9,900 | 9,453 |
2022 | 2021 | |||
Hong Kong | France1 | Hong Kong | France1 | |
% | % | % | % | |
Weighted average risk-free rate | 3.85 | 2.80 | 1.40 | 0.69 |
Weighted average risk discount rate | 7.33 | 4.44 | 5.20 | 1.55 |
Expense inflation | 3.00 | 4.26 | 3.00 | 1.80 |
Movement analysis of goodwill | ||
2022 | 2021 | |
$m | $m | |
Gross amount | ||
At 1 Jan | 22,215 | 23,135 |
Exchange differences | (776) | (905) |
Reclassified to held for sale and additions1 | (2,485) | \u2014 |
Other | 11 | (15) |
At 31 Dec | 18,965 | 22,215 |
Accumulated impairment losses | ||
At 1 Jan | (17,182) | (17,254) |
Impairment losses2 | \u2014 | (587) |
Exchange differences | 482 | 659 |
Reclassified to held for sale1 | 1,891 | \u2014 |
At 31 Dec | (14,809) | (17,182) |
Net carrying amount at 31 Dec | 4,156 | 5,033 |
Key assumptions in VIU calculation \u2013 significant CGUs at 1 October 2022 | ||||||||||
Carrying amount at 1\u00a0Oct 2022 | of which goodwill | Value in use at 1\u00a0Oct 2022 | Discount rate | Growth rate beyond initial cash flow | Carrying amount at 1\u00a0Oct\u00a02021 | of which goodwill | Value in use at 1\u00a0Oct 2021 | Discount rate | Growth rate beyond initial cash flow projections | |
$m | $m | $m | % | % | $m | $m | $m | % | % | |
Europe \u2013 WPB | 15,215 | 2,643 | 46,596 | 9.9 | 2.0 | 18,780 | 3,556 | 29,799 | 9.2 | 1.8 |
Movements in PVIF | ||
2022 | 2021 | |
$m | $m | |
At 1 Jan | 9,453 | 9,435 |
Acquisitions | 271 | \u2014 |
Change in PVIF of long-term insurance business | 263 | 130 |
\u2013\u00a0 value of new business written during the year | 1,322 | 1,090 |
\u2013\u00a0 expected return1 | (785) | (903) |
\u2013\u00a0 assumption changes and experience variances (see below) | (252) | (105) |
\u2013\u00a0 other adjustments | (22) | 48 |
Exchange differences and other movements | (87) | (112) |
At 31 Dec | 9,900 | 9,453 |
2022 | 2021 | |||
Hong Kong | France1 | Hong Kong | France1 | |
% | % | % | % | |
Weighted average risk-free rate | 3.85 | 2.80 | 1.40 | 0.69 |
Weighted average risk discount rate | 7.33 | 4.44 | 5.20 | 1.55 |
Expense inflation | 3.00 | 4.26 | 3.00 | 1.80 |
22 | Prepayments, accrued income and other assets |
2022 | 2021 | |
$m | $m | |
Prepayments and accrued income | 10,316 | 8,233 |
Settlement accounts | 19,565 | 17,713 |
Cash collateral and margin receivables | 63,421 | 42,171 |
Bullion | 15,752 | 15,283 |
Endorsements and acceptances | 8,407 | 11,229 |
Reinsurers\u2019 share of liabilities under insurance contracts (Note 4) | 4,257 | 3,668 |
Employee benefit assets (Note 5) | 7,282 | 10,269 |
Right-of-use assets | 2,219 | 2,985 |
Owned property, plant and equipment | 10,365 | 10,255 |
Other accounts | 15,282 | 14,765 |
At 31 Dec | 156,866 | 136,571 |
Canada | Retail banking operations in France | Other | Total | |
$m | $m | $m | $m | |
Assets of disposal groups held for sale | ||||
Cash and balances at central banks | 4,664 | 71 | 1,811 | 6,546 |
Trading assets | 3,168 | \u2014 | 8 | 3,176 |
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | 13 | 47 | 1 | 61 |
Derivatives | 866 | \u2014 | \u2014 | 866 |
Loans and advances to banks | 99 | \u2014 | 154 | 253 |
Loans and advances to customers\u00a0 | 55,197 | 25,029 | 350 | 80,576 |
Reverse repurchase agreements \u2013 non-trading | 4,396 | \u2014 | 250 | 4,646 |
Financial investments1 | 17,243 | \u2014 | 106 | 17,349 |
Goodwill | 225 | \u2014 | \u2014 | 225 |
Prepayments, accrued income and other assets | 4,256 | 75 | 26 | 4,357 |
Total assets at 31 December 2022 | 90,127 | 25,222 | 2,706 | 118,055 |
Liabilities of disposal groups held for sale | ||||
Trading liabilities | 2,751 | \u2014 | 3 | 2,754 |
Deposits by banks | 62 | \u2014 | 2 | 64 |
Customer accounts\u00a0 | 60,606 | 22,348 | 2,320 | 85,274 |
Repurchase agreements \u2013 non-trading | 3,266 | \u2014 | \u2014 | 3,266 |
Financial liabilities designated at fair value | \u2014 | 3,523 | \u2014 | 3,523 |
Derivatives | 806 | 7 | \u2014 | 813 |
Debt securities in issue\u00a0 | 11,602 | 1,326 | \u2014 | 12,928 |
Subordinated liabilities | 8 | \u2014 | \u2014 | 8 |
Accruals, deferred income and other liabilities | 5,727 | 159 | 81 | 5,967 |
Total liabilities at 31 December 2022 | 84,828 | 27,363 | 2,406 | 114,597 |
Expected date of completion | Second half of 2023 | Second half of 2023 | ||
Operating segment | All global\u00a0 businesses | WPB |
Retail banking operations in France | |
$m | |
Net assets/(liabilities) classified as held for sale1 | (2,063) |
Expected cash contribution 2 | 4,094 |
Disposal group post-cash contribution 3 | 2,031 |
24 | Trading liabilities |
2022 | 2021 | |
$m | $m | |
Deposits by banks1 | 9,332 | 4,243 |
Customer accounts1 | 10,724 | 9,424 |
Other debt securities in issue (Note 26) | 978 | 1,792 |
Other liabilities \u2013 net short positions in securities | 51,319 | 69,445 |
At 31 Dec | 72,353 | 84,904 |
26 | Debt securities in issue |
HSBC | |||
2022 | 2021 | ||
$m | $m | ||
Bonds and medium-term notes | 145,240 | 166,537 | |
Other debt securities in issue | 27,027 | 26,573 | |
Total debt securities in issue | 172,267 | 193,110 | |
Included within: | |||
\u2013\u00a0 trading liabilities (Note 24) | (978) | (1,792) | |
\u2013\u00a0 financial liabilities designated at fair value (Note 25) | (93,140) | (112,761) | |
At 31 Dec | 78,149 | 78,557 |
HSBC Holdings | ||
2022 | 2021 | |
$m | $m | |
Debt securities | 92,361 | 94,301 |
Included within: | ||
\u2013\u00a0 financial liabilities designated at fair value (Note 25) | (25,423) | (26,818) |
At 31 Dec | 66,938 | 67,483 |
27 | Accruals, deferred income and other liabilities |
2022 | 2021 | |
$m | $m | |
Accruals and deferred income | 12,353 | 10,466 |
Settlement accounts | 18,176 | 15,226 |
Cash collateral and margin payables | 70,292 | 50,226 |
Endorsements and acceptances | 8,379 | 11,232 |
Employee benefit liabilities (Note 5) | 1,096 | 1,607 |
Lease liabilities | 2,767 | 3,586 |
Other liabilities | 20,177 | 22,430 |
At 31 Dec | 133,240 | 114,773 |
27 | Accruals, deferred income and other liabilities |
2022 | 2021 | |
$m | $m | |
Accruals and deferred income | 12,353 | 10,466 |
Settlement accounts | 18,176 | 15,226 |
Cash collateral and margin payables | 70,292 | 50,226 |
Endorsements and acceptances | 8,379 | 11,232 |
Employee benefit liabilities (Note 5) | 1,096 | 1,607 |
Lease liabilities | 2,767 | 3,586 |
Other liabilities | 20,177 | 22,430 |
At 31 Dec | 133,240 | 114,773 |
28 | Provisions |
Restructuring costs | Legal proceedings and regulatory matters | Customer remediation | Other provisions | Total | |
$m | $m | $m | $m | $m | |
Provisions (excluding contractual commitments) | |||||
At 1 Jan 2022 | 383 | 619 | 386 | 558 | 1,946 |
Additions | 434 | 271 | 60 | 206 | 971 |
Amounts utilised | (288) | (393) | (106) | (168) | (955) |
Unused amounts reversed | (87) | (82) | (109) | (125) | (403) |
Exchange and other movements | 3 | (6) | (36) | (74) | (113) |
At 31 Dec 2022 | 445 | 409 | 195 | 397 | 1,446 |
Contractual commitments1 | |||||
At 1 Jan 2022 | 620 | ||||
Net change in expected credit loss provision and other movements | (108) | ||||
At 31 Dec 2022 | 512 | ||||
Total provisions | |||||
At 31 Dec 2021 | 2,566 | ||||
At 31 Dec 2022 | 1,958 |
Restructuring costs | Legal proceedings and regulatory matters | Customer remediation | Other provisions | Total | |
$m | $m | $m | $m | $m | |
Provisions (excluding contractual commitments) | |||||
At 1 Jan 2021 | 671 | 756 | 858 | 305 | 2,590 |
Additions | 347 | 249 | 192 | 471 | 1,259 |
Amounts utilised | (499) | (316) | (548) | (58) | (1,421) |
Unused amounts reversed | (170) | (59) | (113) | (124) | (466) |
Exchange and other movements | 34 | (11) | (3) | (36) | (16) |
At 31 Dec 2021 | 383 | 619 | 386 | 558 | 1,946 |
Contractual commitments1 | |||||
At 1 Jan 2021 | 1,088 | ||||
Net change in expected credit loss provision and other movements | (468) | ||||
At 31 Dec 2021 | 620 | ||||
Total provisions | |||||
At 31 Dec 2020 | 3,678 | ||||
At 31 Dec 2021 | 2,566 |
29 | Subordinated liabilities |
HSBC\u2019s subordinated liabilities | ||
2022 | 2021 | |
$m | $m | |
At amortised cost | 22,290 | 20,487 |
\u2013\u00a0 subordinated liabilities | 20,547 | 18,640 |
\u2013\u00a0 preferred securities | 1,743 | 1,847 |
Designated at fair value (Note 25) | 9,636 | 10,100 |
\u2013\u00a0 subordinated liabilities | 9,636 | 10,100 |
\u2013\u00a0 preferred securities | \u2014 | \u2014 |
At 31 Dec | 31,926 | 30,587 |
Issued by HSBC subsidiaries | 6,094 | 9,112 |
Issued by HSBC Holdings | 25,832 | 21,475 |
HSBC\u2019s subsidiaries subordinated liabilities in issue | |||||
2022 | 2021 | ||||
First call date | Maturity date | $m | $m | ||
Additional tier 1 capital securities guaranteed by HSBC Holdings1,2 | |||||
$900m | 10.176% non-cumulative step-up perpetual preferred securities, series 23 | Jun 2030 | 900 | 900 | |
900 | 900 | ||||
Additional tier 1 capital securities guaranteed by HSBC Bank plc1,2 | |||||
\u00a3700m | 5.844% non-cumulative step-up perpetual preferred securities4,5 | Nov 2031 | 684 | 947 | |
684 | 947 | ||||
Tier 2 securities issued by HSBC Bank plc | |||||
$750m | Undated floating rate primary capital notes | Jun 1990 | 750 | 750 | |
$500m | Undated floating rate primary capital notes | Sep 1990 | 500 | 500 | |
$300m | Undated floating rate primary capital notes, series 3 | Jun 1992 | 300 | 300 | |
$300m | 7.65% subordinated notes6 | \u2014 | May 2025 | 170 | 300 |
1,720 | 1,850 | ||||
\u00a3300m | 6.50% subordinated notes7 | \u2014 | Jul 2023 | 162 | 406 |
\u00a3350m | 5.375% callable subordinated step-up notes2,7,8 | Nov 2025 | Nov 2030 | 73 | 539 |
\u00a3500m | 5.375% subordinated notes7 | \u2014 | Aug 2033 | 186 | 900 |
\u00a3225m | 6.25% subordinated notes7 | \u2014 | Jan 2041 | 56 | 303 |
\u00a3600m | 4.75% subordinated notes7 | \u2014 | Mar 2046 | 230 | 805 |
707 | 2,953 | ||||
2,427 | 4,803 | ||||
Tier 2 securities issued by The Hongkong and Shanghai Banking Corporation Limited | |||||
$400m | Primary capital undated floating rate notes (third series) | Jul 1991 | 400 | 400 | |
400 | 400 | ||||
Tier 2 securities issued by HSBC Bank Malaysia Berhad | |||||
MYR500m | 5.05% subordinated bonds2,9 | Nov 2022 | Nov 2027 | \u2014 | 120 |
\u2014 | 120 | ||||
Tier 2 securities issued by HSBC USA Inc. | |||||
$250m | 7.20% subordinated debentures2 | \u2014 | Jul 2097 | 223 | 222 |
223 | 222 | ||||
Tier 2 securities issued by HSBC Bank USA, N.A. | |||||
$1,000m | 5.875% subordinated notes10 | \u2014 | Nov 2034 | 339 | 456 |
$750m | 5.625% subordinated notes10 | \u2014 | Aug 2035 | 366 | 489 |
$700m | 7.00% subordinated notes | \u2014 | Jan 2039 | 700 | 697 |
1,405 | 1,642 | ||||
Tier 2 securities issued by HSBC Bank Canada | |||||
Other subordinated liabilities each less than $150m2,11 | Oct 1996 | Nov 2083 | \u2014 | 9 | |
\u2014 | 9 | ||||
Securities issued by other HSBC subsidiaries | |||||
Other subordinated liabilities each less than $200m12 | 55 | 69 | |||
Subordinated liabilities issued by HSBC subsidiaries at 31 Dec | 6,094 | 9,112 |
HSBC Holdings\u2019 subordinated liabilities | ||
2022 | 2021 | |
$m | $m | |
At amortised cost | 19,727 | 17,059 |
Designated at fair value (Note 25) | 6,700 | 5,600 |
At 31 Dec | 26,427 | 22,659 |
HSBC Holdings\u2019 subordinated liabilities in issue | ||||||
First call | Maturity | 2022 | 2021 | |||
date | date | $m | $m | |||
Tier 2 securities issued by HSBC Holdings | ||||||
Amounts owed to third parties | ||||||
$2,000m | 4.25% subordinated notes2,3 | \u2014 | Mar 2024 | 1,941 | 2,072 | |
$1,500m | 4.25% subordinated notes2 | \u2014 | Aug 2025 | 1,450 | 1,615 | |
$1,500m | 4.375% subordinated notes2 | \u2014 | Nov 2026 | 1,450 | 1,641 | |
$264m | 7.625% subordinated notes1,4 | \u2014 | May 2032 | 308 | 536 | |
$223m | 7.625% subordinated notes2,6 | \u2014 | May 2032 | 223 | \u2014 | |
$125m | 7.35% subordinated notes1,4 | \u2014 | Nov 2032 | 143 | 241 | |
$97m | 7.35% subordinated notes2,6 | \u2014 | Nov 2032 | 97 | \u2014 | |
$1,431m | 6.50% subordinated notes1,5 | \u2014 | May 2036 | 1,461 | 2,032 | |
$569m | 6.50%subordinated notes2,6 | \u2014 | May 2036 | 568 | \u2014 | |
$1,515m | 6.50% subordinated notes1,5 | \u2014 | Sep 2037 | 1,178 | 2,825 | |
$985m | 6.50% subordinated notes2,6 | \u2014 | Sep 2037 | 977 | \u2014 | |
$961m | 6.80% subordinated notes1,5 | \u2014 | Jun 2038 | 953 | 1,491 | |
$539m | 6.80% subordinated notes2,6 | \u2014 | Jun 2038 | 540 | \u2014 | |
$1,500m | 5.25% subordinated notes2 | \u2014 | Mar 2044 | 1,447 | 1,946 | |
$2,000m | 4.762% subordinated notes2 | Mar 2032 | Mar 2033 | 1,766 | \u2014 | |
$2,000m | 8.113% subordinated notes2 | Nov 2032 | Nov 2033 | 2,008 | \u2014 | |
\u00a3650m | 5.75% subordinated notes2 | \u2014 | Dec 2027 | 775 | 1,040 | |
\u00a3650m | 6.75% subordinated notes2 | \u2014 | Sep 2028 | 816 | 877 | |
\u00a3750m | 7.00% subordinated notes2 | \u2014 | Apr 2038 | 817 | 1,082 | |
\u00a3900m | 6.00% subordinated notes2 | \u2014 | Mar 2040 | 776 | 1,320 | |
\u00a31,000m | 8.201% subordinated notes2 | Aug 2029 | Nov 2034 | 1,252 | \u2014 | |
\u20ac1,500m | 3.0% subordinated notes2 | \u2014 | Jun 2025 | 1,492 | 1,737 | |
\u20ac1,000m | 3.125% subordinated notes2 | \u2014 | Jun 2028 | 991 | 1,304 | |
\u20ac1,250m | 6.364% subordinated notes2 | Nov 2027 | Nov 2032 | 1,316 | \u2014 | |
SGD900m | 5.25%subordinated notes2 | Jun 2027 | Jun 2032 | 694 | \u2014 | |
JPY11,900m | 2.50% subordinated notes2 | Sep 2027 | Sep 2032 | 88 | \u2014 | |
25,527 | 21,759 | |||||
Amounts owed to HSBC undertakings | ||||||
$900m | 10.176% subordinated step-up cumulative notes | Jun 2030 | Jun 2040 | 900 | 900 | |
900 | 900 | |||||
At 31 Dec | 26,427 | 22,659 |
HSBC\u2019s subordinated liabilities | ||
2022 | 2021 | |
$m | $m | |
At amortised cost | 22,290 | 20,487 |
\u2013\u00a0 subordinated liabilities | 20,547 | 18,640 |
\u2013\u00a0 preferred securities | 1,743 | 1,847 |
Designated at fair value (Note 25) | 9,636 | 10,100 |
\u2013\u00a0 subordinated liabilities | 9,636 | 10,100 |
\u2013\u00a0 preferred securities | \u2014 | \u2014 |
At 31 Dec | 31,926 | 30,587 |
Issued by HSBC subsidiaries | 6,094 | 9,112 |
Issued by HSBC Holdings | 25,832 | 21,475 |
HSBC\u2019s subsidiaries subordinated liabilities in issue | |||||
2022 | 2021 | ||||
First call date | Maturity date | $m | $m | ||
Additional tier 1 capital securities guaranteed by HSBC Holdings1,2 | |||||
$900m | 10.176% non-cumulative step-up perpetual preferred securities, series 23 | Jun 2030 | 900 | 900 | |
900 | 900 | ||||
Additional tier 1 capital securities guaranteed by HSBC Bank plc1,2 | |||||
\u00a3700m | 5.844% non-cumulative step-up perpetual preferred securities4,5 | Nov 2031 | 684 | 947 | |
684 | 947 | ||||
Tier 2 securities issued by HSBC Bank plc | |||||
$750m | Undated floating rate primary capital notes | Jun 1990 | 750 | 750 | |
$500m | Undated floating rate primary capital notes | Sep 1990 | 500 | 500 | |
$300m | Undated floating rate primary capital notes, series 3 | Jun 1992 | 300 | 300 | |
$300m | 7.65% subordinated notes6 | \u2014 | May 2025 | 170 | 300 |
1,720 | 1,850 | ||||
\u00a3300m | 6.50% subordinated notes7 | \u2014 | Jul 2023 | 162 | 406 |
\u00a3350m | 5.375% callable subordinated step-up notes2,7,8 | Nov 2025 | Nov 2030 | 73 | 539 |
\u00a3500m | 5.375% subordinated notes7 | \u2014 | Aug 2033 | 186 | 900 |
\u00a3225m | 6.25% subordinated notes7 | \u2014 | Jan 2041 | 56 | 303 |
\u00a3600m | 4.75% subordinated notes7 | \u2014 | Mar 2046 | 230 | 805 |
707 | 2,953 | ||||
2,427 | 4,803 | ||||
Tier 2 securities issued by The Hongkong and Shanghai Banking Corporation Limited | |||||
$400m | Primary capital undated floating rate notes (third series) | Jul 1991 | 400 | 400 | |
400 | 400 | ||||
Tier 2 securities issued by HSBC Bank Malaysia Berhad | |||||
MYR500m | 5.05% subordinated bonds2,9 | Nov 2022 | Nov 2027 | \u2014 | 120 |
\u2014 | 120 | ||||
Tier 2 securities issued by HSBC USA Inc. | |||||
$250m | 7.20% subordinated debentures2 | \u2014 | Jul 2097 | 223 | 222 |
223 | 222 | ||||
Tier 2 securities issued by HSBC Bank USA, N.A. | |||||
$1,000m | 5.875% subordinated notes10 | \u2014 | Nov 2034 | 339 | 456 |
$750m | 5.625% subordinated notes10 | \u2014 | Aug 2035 | 366 | 489 |
$700m | 7.00% subordinated notes | \u2014 | Jan 2039 | 700 | 697 |
1,405 | 1,642 | ||||
Tier 2 securities issued by HSBC Bank Canada | |||||
Other subordinated liabilities each less than $150m2,11 | Oct 1996 | Nov 2083 | \u2014 | 9 | |
\u2014 | 9 | ||||
Securities issued by other HSBC subsidiaries | |||||
Other subordinated liabilities each less than $200m12 | 55 | 69 | |||
Subordinated liabilities issued by HSBC subsidiaries at 31 Dec | 6,094 | 9,112 |
HSBC Holdings\u2019 subordinated liabilities | ||
2022 | 2021 | |
$m | $m | |
At amortised cost | 19,727 | 17,059 |
Designated at fair value (Note 25) | 6,700 | 5,600 |
At 31 Dec | 26,427 | 22,659 |
HSBC Holdings\u2019 subordinated liabilities in issue | ||||||
First call | Maturity | 2022 | 2021 | |||
date | date | $m | $m | |||
Tier 2 securities issued by HSBC Holdings | ||||||
Amounts owed to third parties | ||||||
$2,000m | 4.25% subordinated notes2,3 | \u2014 | Mar 2024 | 1,941 | 2,072 | |
$1,500m | 4.25% subordinated notes2 | \u2014 | Aug 2025 | 1,450 | 1,615 | |
$1,500m | 4.375% subordinated notes2 | \u2014 | Nov 2026 | 1,450 | 1,641 | |
$264m | 7.625% subordinated notes1,4 | \u2014 | May 2032 | 308 | 536 | |
$223m | 7.625% subordinated notes2,6 | \u2014 | May 2032 | 223 | \u2014 | |
$125m | 7.35% subordinated notes1,4 | \u2014 | Nov 2032 | 143 | 241 | |
$97m | 7.35% subordinated notes2,6 | \u2014 | Nov 2032 | 97 | \u2014 | |
$1,431m | 6.50% subordinated notes1,5 | \u2014 | May 2036 | 1,461 | 2,032 | |
$569m | 6.50%subordinated notes2,6 | \u2014 | May 2036 | 568 | \u2014 | |
$1,515m | 6.50% subordinated notes1,5 | \u2014 | Sep 2037 | 1,178 | 2,825 | |
$985m | 6.50% subordinated notes2,6 | \u2014 | Sep 2037 | 977 | \u2014 | |
$961m | 6.80% subordinated notes1,5 | \u2014 | Jun 2038 | 953 | 1,491 | |
$539m | 6.80% subordinated notes2,6 | \u2014 | Jun 2038 | 540 | \u2014 | |
$1,500m | 5.25% subordinated notes2 | \u2014 | Mar 2044 | 1,447 | 1,946 | |
$2,000m | 4.762% subordinated notes2 | Mar 2032 | Mar 2033 | 1,766 | \u2014 | |
$2,000m | 8.113% subordinated notes2 | Nov 2032 | Nov 2033 | 2,008 | \u2014 | |
\u00a3650m | 5.75% subordinated notes2 | \u2014 | Dec 2027 | 775 | 1,040 | |
\u00a3650m | 6.75% subordinated notes2 | \u2014 | Sep 2028 | 816 | 877 | |
\u00a3750m | 7.00% subordinated notes2 | \u2014 | Apr 2038 | 817 | 1,082 | |
\u00a3900m | 6.00% subordinated notes2 | \u2014 | Mar 2040 | 776 | 1,320 | |
\u00a31,000m | 8.201% subordinated notes2 | Aug 2029 | Nov 2034 | 1,252 | \u2014 | |
\u20ac1,500m | 3.0% subordinated notes2 | \u2014 | Jun 2025 | 1,492 | 1,737 | |
\u20ac1,000m | 3.125% subordinated notes2 | \u2014 | Jun 2028 | 991 | 1,304 | |
\u20ac1,250m | 6.364% subordinated notes2 | Nov 2027 | Nov 2032 | 1,316 | \u2014 | |
SGD900m | 5.25%subordinated notes2 | Jun 2027 | Jun 2032 | 694 | \u2014 | |
JPY11,900m | 2.50% subordinated notes2 | Sep 2027 | Sep 2032 | 88 | \u2014 | |
25,527 | 21,759 | |||||
Amounts owed to HSBC undertakings | ||||||
$900m | 10.176% subordinated step-up cumulative notes | Jun 2030 | Jun 2040 | 900 | 900 | |
900 | 900 | |||||
At 31 Dec | 26,427 | 22,659 |
32 | Called up share capital and other equity instruments |
HSBC Holdings ordinary shares of $0.50 each, issued and fully paid | ||||
2022 | 2021 | |||
Number | $m | Number | $m | |
At 1 Jan | 20,631,520,439 | 10,316 | 20,693,621,100 | 10,347 |
Shares issued under HSBC employee share plans | 10,226,221 | 5 | 58,266,053 | 29 |
Shares issued in lieu of dividends | \u2014 | \u2014 | \u2014 | \u2014 |
Less: Shares repurchased and cancelled | 348,139,250 | 174 | 120,366,714 | 60 |
At 31 Dec1 | 20,293,607,410 | 10,147 | 20,631,520,439 | 10,316 |
Total called up share capital and share premium | ||
2022 | 2021 | |
$m | $m | |
At 31 Dec | 24,811 | 24,918 |
HSBC\u2019s additional tier 1 capital \u2013 contingent convertible securities in issue which are accounted for in equity | ||||
First call date | 2022 | 2021 | ||
$m | $m | |||
$2,250m | 6.375% perpetual subordinated contingent convertible securities | Sep 2024 | 2,250 | 2,250 |
$2,450m | 6.375% perpetual subordinated contingent convertible securities | Mar 2025 | 2,450 | 2,450 |
$3,000m | 6.000% perpetual subordinated contingent convertible securities | May 2027 | 3,000 | 3,000 |
$2,350m | 6.250% perpetual subordinated contingent convertible securities1 | Mar 2023 | 2,350 | 2,350 |
$1,800m | 6.500% perpetual subordinated contingent convertible securities | Mar 2028 | 1,800 | 1,800 |
$1,500m | 4.600% perpetual subordinated contingent convertible securities2 | Dec 2030 | 1,500 | 1,500 |
$1,000m | 4.000% perpetual subordinated contingent convertible securities3 | Mar 2026 | 1,000 | 1,000 |
$1,000m | 4.700% perpetual subordinated contingent convertible securities4 | Mar 2031 | 1,000 | 1,000 |
\u20ac1,500m | 5.250% perpetual subordinated contingent convertible securities5 | Sep 2022 | \u2014 | 1,945 |
\u20ac1,000m | 6.000% perpetual subordinated contingent convertible securities | Sep 2023 | 1,123 | 1,123 |
\u20ac1,250m | 4.750% perpetual subordinated contingent convertible securities | Jul 2029 | 1,422 | 1,422 |
\u00a31,000 | 5.875% perpetual subordinated contingent convertible securities | Sep 2026 | 1,301 | 1,301 |
SGD1,000m | 4.700% perpetual subordinated contingent convertible securities6 | Jun 2022 | \u2014 | 723 |
SGD750m | 5.000% perpetual subordinated contingent convertible securities | Sep 2023 | 550 | 550 |
At 31 Dec | 19,746 | 22,414 |
Aggregate options outstanding under these plans | |||||
31 Dec 2022 | 31 Dec 2021 | ||||
Number of HSBC Holdings ordinary shares | Usual period of exercise | Exercise price | Number of HSBC Holdings ordinary shares | Usual period of exercise | Exercise price |
115,650,723 | 2021 to 2028 | \u00a32.6270\u2013\u00a35.9640 | 123,196,850 | 2020 to 2027 | \u00a32.6270\u20135.9640 |
33 | Contingent liabilities, contractual commitments and guarantees |
HSBC | HSBC Holdings1 | |||
2022 | 2021 | 2022 | 2021 | |
$m | $m | $m | $m | |
Guarantees and other contingent liabilities: | ||||
\u2013\u00a0 financial guarantees | 18,783 | 27,795 | 17,707 | 13,746 |
\u2013\u00a0 performance and other guarantees | 88,240 | 85,534 | \u2014 | \u2014 |
\u2013\u00a0 other contingent liabilities | 676 | 858 | 90 | 133 |
At 31 Dec | 107,699 | 114,187 | 17,797 | 13,879 |
Commitments:2 | ||||
\u2013\u00a0 documentary credits and short-term trade-related transactions | 8,241 | 8,827 | \u2014 | \u2014 |
\u2013\u00a0 forward asset purchases and forward deposits placed | 50,852 | 47,184 | \u2014 | \u2014 |
\u2013\u00a0 standby facilities, credit lines and other commitments to lend | 768,761 | 759,463 | \u2014 | \u2014 |
At 31 Dec | 827,854 | 815,474 | \u2014 | \u2014 |
Transactions and balances during the year with associates and joint ventures | ||||
2022 | 2021 | |||
Highest balance during the year | Balance at 31 Dec | Highest balance during the year | Balance at 31 Dec | |
$m | $m | $m | $m | |
Unsubordinated amounts due from joint ventures | 140 | 90 | 160 | 96 |
Unsubordinated amounts due from associates | 7,378 | 6,594 | 4,527 | 4,188 |
Amounts due to associates | 2,548 | 1,295 | 3,397 | 1,070 |
Amounts due to joint ventures | 57 | 53 | 102 | 44 |
Fair value of derivative assets with associates | 1,205 | 841 | 936 | 465 |
Fair value of derivative liabilities with associates | 4,319 | 3,648 | 696 | 555 |
Guarantees and commitments | 513 | 293 | 1,016 | 347 |
Transactions and balances during the year with subsidiaries | ||||
2022 | 2021 | |||
Highest balance during the year | Balance at 31 Dec | Highest balance during the year | Balance at 31 Dec | |
$m | $m | $m | $m | |
Assets | ||||
Cash and balances with HSBC undertakings | 7,421 | 3,210 | 3,397 | 2,590 |
Financial assets with HSBC undertakings designated and otherwise mandatorily measured at fair value | 52,322 | 52,322 | 64,686 | 51,408 |
Derivatives | 5,380 | 3,801 | 4,187 | 2,811 |
Loans and advances to HSBC undertakings | 26,765 | 26,765 | 27,142 | 25,108 |
Prepayments, accrued income and other assets | 4,893 | 4,803 | 1,555 | 1,135 |
Investments in subsidiaries | 167,542 | 167,542 | 163,211 | 163,211 |
Total related party assets at 31 Dec | 264,323 | 258,443 | 264,178 | 246,263 |
Liabilities | ||||
Amounts owed to HSBC undertakings | 314 | 314 | 340 | 111 |
Derivatives | 8,318 | 6,922 | 2,872 | 1,220 |
Accruals, deferred income and other liabilities | 1,375 | 429 | 2,036 | 1,732 |
Subordinated liabilities | 900 | 900 | 900 | 900 |
Total related party liabilities at 31 Dec | 10,907 | 8,565 | 6,148 | 3,963 |
Guarantees and commitments | 17,707 | 17,707 | 16,477 | 13,746 |
Shareholdings, options and other securities of Key Management Personnel | ||
2022 | 2021 | |
(000s) | (000s) | |
Number of options held over HSBC Holdings ordinary shares under employee share plans | 35 | 35 |
Number of HSBC Holdings ordinary shares held beneficially and non-beneficially | 18,185 | 13,529 |
Number of other HSBC securities held | 228 | 228 |
At 31 Dec | 18,448 | 13,792 |
Advances and credits, guarantees and deposit balances during the year with Key Management Personnel | ||||
2022 | 2021 | |||
Balance at 31\u00a0Dec | Highest amounts outstanding during year | Balance at 31 Dec | Highest amounts outstanding during year | |
$m | $m | $m | $m | |
Key Management Personnel | ||||
Advances and credits1 | 16 | 25 | 373 | 401 |
Guarantees | \u2014 | \u2014 | 25 | 45 |
Deposits | 53 | 123 | 284 | 3,190 |
37 | Events after the balance sheet date |