IFRS 4 | IFRS 17 | |
Balance sheet | \u2013 Insurance contract liabilities for non-linked life insurance contracts are calculated by local actuarial principles. Liabilities under unit-linked life insurance contracts are at least equivalent to the surrender or transfer value, by reference to the value of the relevant underlying funds or indices. Grouping requirements follow local regulations. \u2013 An intangible asset for the PVIF is recognised, representing the upfront recognition of future profits associated with in-force insurance contracts. | \u2013 Insurance contract liabilities are measured for groups of insurance contracts at current value, comprising the fulfilment cash flows and the CSM. \u2013 The fulfilment cash flows comprise the best estimate of the present value of the future cash flows, together with a risk adjustment for non-financial risk. \u2013 The CSM represents the unearned profit. |
Profit emergence/ recognition | \u2013 The value of new business is reported as revenue on Day\u00a01 as an increase in PVIF. \u2013 The impact of the majority of assumption changes is recognised immediately in the income statement. \u2013 Variances between actual and expected cash flows are recognised in the period they arise. | \u2013 The CSM is systematically recognised in revenue as services are provided over the expected coverage period of the group of contracts (i.e. no Day 1 profit). \u2013 Contracts are measured using the general measurement model (\u2018GMM\u2019) or the variable fee approach (\u2018VFA\u2019) model for insurance contracts with direct participation features upon meeting the eligibility criteria. Under the VFA model, the Group\u2019s share of the investment experience and assumption changes are absorbed by the CSM and released over time to profit or loss. For contracts measured under GMM, the Group\u2019s share of the investment volatility is recorded in profit or loss as it arises. \u2013 Losses from onerous contracts are recognised in the income statement immediately. |
Investment return assumptions (discount rate) | \u2013 PVIF is calculated based on long-term investment return assumptions based on assets held. It therefore includes investment margins expected to be earned in future. | \u2013 Under the market consistent approach, expected future investment spreads are not included in the investment return assumption. Instead, the discount rate includes an illiquidity premium that reflects the nature of the associated insurance contract liabilities. |
Expenses | \u2013 Total expenses to acquire and maintain the contract over its lifetime are included in the PVIF calculation. \u2013 Expenses are recognised across operating expenses and fee expense as incurred and the allowances for those expenses are released from the PVIF simultaneously. | \u2013 Projected lifetime expenses that are directly attributable costs are included in the insurance contract liabilities and recognised in the insurance service result. \u2013 Non-attributable costs are reported in operating expenses. |
IFRS 4 | IFRS 17 | |
Balance sheet | \u2013 Insurance contract liabilities for non-linked life insurance contracts are calculated by local actuarial principles. Liabilities under unit-linked life insurance contracts are at least equivalent to the surrender or transfer value, by reference to the value of the relevant underlying funds or indices. Grouping requirements follow local regulations. \u2013 An intangible asset for the PVIF is recognised, representing the upfront recognition of future profits associated with in-force insurance contracts. | \u2013 Insurance contract liabilities are measured for groups of insurance contracts at current value, comprising the fulfilment cash flows and the CSM. \u2013 The fulfilment cash flows comprise the best estimate of the present value of the future cash flows, together with a risk adjustment for non-financial risk. \u2013 The CSM represents the unearned profit. |
Profit emergence/ recognition | \u2013 The value of new business is reported as revenue on Day\u00a01 as an increase in PVIF. \u2013 The impact of the majority of assumption changes is recognised immediately in the income statement. \u2013 Variances between actual and expected cash flows are recognised in the period they arise. | \u2013 The CSM is systematically recognised in revenue as services are provided over the expected coverage period of the group of contracts (i.e. no Day 1 profit). \u2013 Contracts are measured using the general measurement model (\u2018GMM\u2019) or the variable fee approach (\u2018VFA\u2019) model for insurance contracts with direct participation features upon meeting the eligibility criteria. Under the VFA model, the Group\u2019s share of the investment experience and assumption changes are absorbed by the CSM and released over time to profit or loss. For contracts measured under GMM, the Group\u2019s share of the investment volatility is recorded in profit or loss as it arises. \u2013 Losses from onerous contracts are recognised in the income statement immediately. |
Investment return assumptions (discount rate) | \u2013 PVIF is calculated based on long-term investment return assumptions based on assets held. It therefore includes investment margins expected to be earned in future. | \u2013 Under the market consistent approach, expected future investment spreads are not included in the investment return assumption. Instead, the discount rate includes an illiquidity premium that reflects the nature of the associated insurance contract liabilities. |
Expenses | \u2013 Total expenses to acquire and maintain the contract over its lifetime are included in the PVIF calculation. \u2013 Expenses are recognised across operating expenses and fee expense as incurred and the allowances for those expenses are released from the PVIF simultaneously. | \u2013 Projected lifetime expenses that are directly attributable costs are included in the insurance contract liabilities and recognised in the insurance service result. \u2013 Non-attributable costs are reported in operating expenses. |
IFRS 4 | IFRS 17 | |
Balance sheet | \u2013 Insurance contract liabilities for non-linked life insurance contracts are calculated by local actuarial principles. Liabilities under unit-linked life insurance contracts are at least equivalent to the surrender or transfer value, by reference to the value of the relevant underlying funds or indices. Grouping requirements follow local regulations. \u2013 An intangible asset for the PVIF is recognised, representing the upfront recognition of future profits associated with in-force insurance contracts. | \u2013 Insurance contract liabilities are measured for groups of insurance contracts at current value, comprising the fulfilment cash flows and the CSM. \u2013 The fulfilment cash flows comprise the best estimate of the present value of the future cash flows, together with a risk adjustment for non-financial risk. \u2013 The CSM represents the unearned profit. |
Profit emergence/ recognition | \u2013 The value of new business is reported as revenue on Day\u00a01 as an increase in PVIF. \u2013 The impact of the majority of assumption changes is recognised immediately in the income statement. \u2013 Variances between actual and expected cash flows are recognised in the period they arise. | \u2013 The CSM is systematically recognised in revenue as services are provided over the expected coverage period of the group of contracts (i.e. no Day 1 profit). \u2013 Contracts are measured using the general measurement model (\u2018GMM\u2019) or the variable fee approach (\u2018VFA\u2019) model for insurance contracts with direct participation features upon meeting the eligibility criteria. Under the VFA model, the Group\u2019s share of the investment experience and assumption changes are absorbed by the CSM and released over time to profit or loss. For contracts measured under GMM, the Group\u2019s share of the investment volatility is recorded in profit or loss as it arises. \u2013 Losses from onerous contracts are recognised in the income statement immediately. |
Investment return assumptions (discount rate) | \u2013 PVIF is calculated based on long-term investment return assumptions based on assets held. It therefore includes investment margins expected to be earned in future. | \u2013 Under the market consistent approach, expected future investment spreads are not included in the investment return assumption. Instead, the discount rate includes an illiquidity premium that reflects the nature of the associated insurance contract liabilities. |
Expenses | \u2013 Total expenses to acquire and maintain the contract over its lifetime are included in the PVIF calculation. \u2013 Expenses are recognised across operating expenses and fee expense as incurred and the allowances for those expenses are released from the PVIF simultaneously. | \u2013 Projected lifetime expenses that are directly attributable costs are included in the insurance contract liabilities and recognised in the insurance service result. \u2013 Non-attributable costs are reported in operating expenses. |
38 | Effects of adoption of IFRS 17 |
Under IFRS 4 | Removal of PVIF and\u00a0 IFRS 4 balances | Remeasure- ment effect of IFRS 9 re- designations | Recognition of IFRS 17 fulfilment cash flows | Recognition of IFRS 17 contractual service margin | Tax effect | Under IFRS 17 | Total movements | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Assets | ||||||||
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | 49,804 | \u2014 | 60,991 | \u2014 | \u2014 | \u2014 | 110,795 | 60,991 |
Loans and advances to banks | 83,136 | \u2014 | (569) | \u2014 | \u2014 | \u2014 | 82,567 | (569) |
Loans and advances to customers | 1,045,814 | \u2014 | (1,280) | \u2014 | \u2014 | \u2014 | 1,044,534 | (1,280) |
Financial investments | 446,274 | \u2014 | (54,269) | \u2014 | \u2014 | \u2014 | 392,005 | (54,269) |
Goodwill and intangible assets | 20,622 | (9,453) | \u2014 | \u2014 | \u2014 | \u2014 | 11,169 | (9,453) |
Deferred tax assets | 4,624 | \u2014 | \u2014 | \u2014 | \u2014 | 808 | 5,432 | 808 |
All other assets | 1,307,665 | (4,468) | \u2014 | 4,198 | (105) | \u2014 | 1,307,290 | (375) |
Total assets | 2,957,939 | (13,921) | 4,873 | 4,198 | (105) | 808 | 2,953,792 | (4,147) |
Liabilities and equity | ||||||||
Liabilities | ||||||||
Insurance contract liabilities | 112,745 | (112,745) | \u2014 | 109,393 | 9,914 | \u2014 | 119,307 | 6,562 |
Deferred tax liabilities | 4,673 | \u2014 | \u2014 | \u2014 | \u2014 | (1,379) | 3,294 | (1,379) |
All other liabilities | 2,633,744 | 78 | \u2014 | 1,102 | (51) | \u2014 | 2,634,873 | 1,129 |
Total liabilities | 2,751,162 | (112,667) | \u2014 | 110,495 | 9,863 | (1,379) | 2,757,474 | 6,312 |
Total shareholders\u2019 equity | 198,250 | 92,738 | 4,558 | (99,631) | (8,847) | 1,947 | 189,015 | (9,235) |
Non-controlling interests | 8,527 | 6,008 | 315 | (6,666) | (1,121) | 240 | 7,303 | (1,224) |
Total equity | 206,777 | 98,746 | 4,873 | (106,297) | (9,968) | 2,187 | 196,318 | (10,459) |
Total liabilities and equity | 2,957,939 | (13,921) | 4,873 | 4,198 | (105) | 808 | 2,953,792 | (4,147) |
IFRS 17 transition impact on the reported Group consolidated income statement for the year ended 31 December 2022 | ||||||||||
Under IFRS 4 | Removal of PVIF and\u00a0 IFRS 4 balances | Remeasure- ment effect of IFRS 9 re- designations | Insurance finance income/ expense | Contrac - tual service margin | Onerous contracts | Experience variance and other | Attribut- able expenses | Tax effect | Under IFRS 17 | |
$m | $m | $m | $m | $m | $m | $m | $m | $m | $m | |
Net interest income | 32,610 | \u2014 | (2,233) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 30,377 |
Net fee income | 11,451 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 319 | \u2014 | 11,770 |
Net income from financial instruments held for trading or managed on a fair value basis | 10,469 | \u2014 | (191) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 10,278 |
Net expense from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss | (3,394) | \u2014 | (10,437) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (13,831) |
Net insurance premium income | 12,825 | (12,825) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Insurance finance income/(expense) | \u2014 | \u2014 | \u2014 | 13,799 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 13,799 |
Insurance service result | \u2014 | \u2014 | \u2014 | \u2014 | 965 | (186) | 30 | \u2014 | \u2014 | 809 |
\u2013\u00a0 insurance revenue | \u2014 | \u2014 | \u2014 | \u2014 | 965 | \u2014 | 1,012 | \u2014 | \u2014 | 1,977 |
\u2013\u00a0 insurance service expense | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (186) | (982) | \u2014 | \u2014 | (1,168) |
Other operating income/(loss) | (2,365) | (265) | \u2014 | 48 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (2,582) |
Total operating income | 61,596 | (13,090) | (12,861) | 13,847 | 965 | (186) | 30 | 319 | \u2014 | 50,620 |
Net insurance claims and benefits paid and movement in liabilities to policyholders | (9,869) | 9,869 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Net operating income before change in expected credit losses and other credit impairment charges | 51,727 | (3,221) | (12,861) | 13,847 | 965 | (186) | 30 | 319 | \u2014 | 50,620 |
Change in expected credit losses and other credit impairment charges | (3,592) | \u2014 | 8 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (3,584) |
Net operating income | 48,135 | (3,221) | (12,853) | 13,847 | 965 | (186) | 30 | 319 | \u2014 | 47,036 |
Total operating expenses | (33,330) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 629 | \u2014 | (32,701) |
Operating profit | 14,805 | (3,221) | (12,853) | 13,847 | 965 | (186) | 30 | 948 | \u2014 | 14,335 |
Share of profit in associates and joint ventures | 2,723 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 2,723 |
Profit before tax | 17,528 | (3,221) | (12,853) | 13,847 | 965 | (186) | 30 | 948 | \u2014 | 17,058 |
Tax expense | (858) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 49 | (809) |
Profit for the period | 16,670 | (3,221) | (12,853) | 13,847 | 965 | (186) | 30 | 948 | 49 | 16,249 |
Year ended 31 Dec 2022 | ||
Under IFRS 17 | Under IFRS 4 | |
$m | $m | |
Total equity at 1 Jan | 196,318 | 206,777 |
of which | ||
\u2013\u00a0 retained earnings | 135,236 | 144,458 |
\u2013\u00a0 financial assets at FVOCI reserve | 49 | (634) |
\u2013\u00a0 insurance finance reserve | (696) | \u2014 |
Profit for the period | 16,249 | 16,670 |
Debt instruments at fair value through other comprehensive income | (7,232) | (5,468) |
Equity instruments designated at fair value through other comprehensive income | 107 | 107 |
Insurance finance income recognised in other comprehensive income | 1,775 | \u2014 |
Other comprehensive expense for the period, net of tax | (11,892) | (11,940) |
Total comprehensive (expense)/income for the period | (993) | (631) |
Other movements | (10,128) | (10,118) |
Total equity at 31 Dec | 185,197 | 196,028 |
Group\u2018s consolidated balance sheet at the transition date and at 31 December 2022 | ||||
Under IFRS 17 | Under IFRS 4 | |||
31 Dec | 1 Jan | 31 Dec | 1 Jan | |
2022 | 2022 | 2022 | 2022 | |
$m | $m | $m | $m | |
Assets | ||||
Cash and balances at central banks | 327,002 | 403,018 | 327,002 | 403,018 |
Items in the course of collection from other banks | 7,297 | 4,136 | 7,299 | 4,136 |
Hong Kong Government certificates of indebtedness | 43,787 | 42,578 | 43,787 | 42,578 |
Trading assets | 218,093 | 248,842 | 218,093 | 248,842 |
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | 100,101 | 110,795 | 45,063 | 49,804 |
Derivatives | 284,159 | 196,882 | 284,146 | 196,882 |
Loans and advances to banks | 104,475 | 82,567 | 104,882 | 83,136 |
Loans and advances to customers | 923,561 | 1,044,534 | 924,854 | 1,045,814 |
Reverse repurchase agreements \u2013 non-trading | 253,754 | 241,648 | 253,754 | 241,648 |
Financial investments | 364,726 | 392,005 | 425,563 | 446,274 |
Assets held for sale | 115,919 | 3,411 | 115,919 | 3,411 |
Prepayments, accrued income and other assets | 156,149 | 136,196 | 156,865 | 136,571 |
Current tax assets | 1,230 | 970 | 1,230 | 970 |
Interests in associates and joint ventures | 29,254 | 29,609 | 29,254 | 29,609 |
Goodwill and intangible assets | 11,419 | 11,169 | 21,321 | 20,622 |
Deferred tax assets | 8,360 | 5,432 | 7,498 | 4,624 |
Total assets | 2,949,286 | 2,953,792 | 2,966,530 | 2,957,939 |
Liabilities and equity | ||||
Liabilities | ||||
Hong Kong currency notes in circulation | 43,787 | 42,578 | 43,787 | 42,578 |
Deposits by banks | 66,722 | 101,152 | 66,722 | 101,152 |
Customer accounts | 1,570,303 | 1,710,574 | 1,570,303 | 1,710,574 |
Repurchase agreements \u2013 non-trading | 127,747 | 126,670 | 127,747 | 126,670 |
Items in the course of transmission to other banks | 7,864 | 5,214 | 7,864 | 5,214 |
Trading liabilities | 72,353 | 84,904 | 72,353 | 84,904 |
Financial liabilities designated at fair value | 127,321 | 145,503 | 127,327 | 145,502 |
Derivatives | 285,762 | 191,064 | 285,764 | 191,064 |
Debt securities in issue | 78,149 | 78,557 | 78,149 | 78,557 |
Liabilities of disposal groups held for sale | 114,597 | 9,005 | 114,597 | 9,005 |
Accruals, deferred income and other liabilities | 134,313 | 115,900 | 133,240 | 114,773 |
Current tax liabilities | 1,135 | 699 | 1,135 | 698 |
Insurance contract liabilities | 108,816 | 119,307 | 114,844 | 112,745 |
Provisions | 1,958 | 2,566 | 1,958 | 2,566 |
Deferred tax liabilities | 972 | 3,294 | 2,422 | 4,673 |
Subordinated liabilities | 22,290 | 20,487 | 22,290 | 20,487 |
Total liabilities | 2,764,089 | 2,757,474 | 2,770,502 | 2,751,162 |
Equity | ||||
Called up share capital\u00a0 | 10,147 | 10,316 | 10,147 | 10,316 |
Share premium account | 14,664 | 14,602 | 14,664 | 14,602 |
Other equity instruments | 19,746 | 22,414 | 19,746 | 22,414 |
Other reserves | (9,133) | 6,447 | (9,141) | 6,460 |
Retained earnings | 142,409 | 135,236 | 152,068 | 144,458 |
Total shareholders\u2018 equity | 177,833 | 189,015 | 187,484 | 198,250 |
Non-controlling interests | 7,364 | 7,303 | 8,544 | 8,527 |
Total equity | 185,197 | 196,318 | 196,028 | 206,777 |
Total liabilities and equity | 2,949,286 | 2,953,792 | 2,966,530 | 2,957,939 |
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 |
\u2013 The 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 or reversal more frequently than once a year when indicators 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. | \u2013 The 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. \u2013 The 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. \u2013 Key assumptions used in estimating impairment in subsidiaries and their reversal where relevant are described in Note 19.\u00a0 |
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 |
\u2013 The 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. | \u2013 The 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. \u2013 The 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. \u2013 Key assumptions used in estimating goodwill and non-financial asset impairment are described in Note 21. |
The most significant critical 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 |
\u2013 The value in use calculation uses discounted cash flow projections based on management\u2019s best estimate of future earnings available to ordinary shareholders prepared in accordance with IAS 36 \u2018Impairment of Assets\u2019. \u2013 Key assumptions used in estimating BoCom\u2019s value in use and the sensitivity of the value in use calculations to different assumptions 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 |
\u2013 An 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. \u2013 \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). | \u2013 Details 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 |
\u2013 Defining what is considered to be a significant increase in credit risk \u2013 Determining the lifetime and point of initial recognition of overdrafts and credit cards \u2013 Selecting 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 \u2013 Selecting model inputs and economic forecasts, including determining whether sufficient and appropriately weighted economic forecasts are incorporated to calculate unbiased expected credit loss \u2013 Making management adjustments to account for late-breaking events, model and data limitations and deficiencies, and expert credit judgements \u2013 Selecting applicable recovery strategies for certain wholesale credit-impaired loans | \u2013 The section \u2018Measurement uncertainty and sensitivity analysis of ECL estimates\u2019, marked as audited from page 156, 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 estimates relate to the determination of key assumptions applied in calculating the defined benefit pension obligation for the principal plan. | |
Judgements | Estimates |
\u2013 A 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. \u2013 The 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. \u2013 Key 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 |
\u2013 Specific judgements supporting deferred tax assets are described in Note\u00a07. | \u2013 The 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 |
\u2013 Determining whether a present obligation exists. Professional advice is taken on the assessment of litigation and similar obligations. \u2013 Provisions 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. | \u2013 Provisions 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 \u2018Critical estimates and judgements\u2019 in Note 1.2(a). |
The classification as held for sale depends on certain judgements: |
Judgements |
Management judgement is required in determining whether the IFRS 5 held for sale criteria are met, including whether a sale is highly probable and expected to complete within one year of classification. The exercise of judgement will normally consider the likelihood of successfully securing any necessary regulatory or governmental approvals, which are almost always required for sales of banking businesses, and sanctions risk. For large and complex plans, judgement will also include an assessment of the enforceability of any binding sale agreement, the nature and magnitude of any disincentives for non-performance, and the ability of the counterparty to undertake necessary pre-completion preparatory work, comply with conditions precedent, and otherwise be able to comply with contractual undertakings to achieve completion within the expected timescale. Once classified as held for sale, judgement is required to be applied on a continuous basis to ensure that classification remains appropriate in future accounting periods. |
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 |
\u2013 The 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 or reversal more frequently than once a year when indicators 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. | \u2013 The 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. \u2013 The 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. \u2013 Key assumptions used in estimating impairment in subsidiaries and their reversal where relevant are described in Note 19.\u00a0 |
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 |
\u2013 The 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. | \u2013 The 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. \u2013 The 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. \u2013 Key assumptions used in estimating goodwill and non-financial asset impairment are described in Note 21. |
The most significant critical 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 |
\u2013 The value in use calculation uses discounted cash flow projections based on management\u2019s best estimate of future earnings available to ordinary shareholders prepared in accordance with IAS 36 \u2018Impairment of Assets\u2019. \u2013 Key assumptions used in estimating BoCom\u2019s value in use and the sensitivity of the value in use calculations to different assumptions 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 |
\u2013 An 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. \u2013 \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). | \u2013 Details 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 | \u2013 Through the cycle (represents long-run average PD throughout a full economic cycle) \u2013 The definition of default includes a backstop of\u00a090+ days past due | \u2013 Point in time (based on current conditions, adjusted to\u00a0take into account estimates of future conditions that will impact PD) \u2013 Default backstop of 90+ days past due for all portfolios |
EAD | \u2013 Cannot be lower than current balance | \u2013 Amortisation captured for term products |
LGD | \u2013 Downturn LGD (consistent losses expected to be suffered during a severe but plausible economic downturn) \u2013 Regulatory floors may apply to mitigate risk of underestimating downturn LGD due to lack of historical data \u2013 Discounted using cost of capital \u2013 All collection costs included | \u2013 Expected LGD (based on estimate of loss given default including the expected impact of future economic conditions such as changes in value of collateral) \u2013 No floors \u2013 Discounted using the original effective interest rate of the loan \u2013 Only costs associated with obtaining/selling collateral included |
Other | \u2013 Discounted back from point of default to balance sheet date |
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 |
\u2013 Defining what is considered to be a significant increase in credit risk \u2013 Determining the lifetime and point of initial recognition of overdrafts and credit cards \u2013 Selecting 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 \u2013 Selecting model inputs and economic forecasts, including determining whether sufficient and appropriately weighted economic forecasts are incorporated to calculate unbiased expected credit loss \u2013 Making management adjustments to account for late-breaking events, model and data limitations and deficiencies, and expert credit judgements \u2013 Selecting applicable recovery strategies for certain wholesale credit-impaired loans | \u2013 The section \u2018Measurement uncertainty and sensitivity analysis of ECL estimates\u2019, marked as audited from page 156, 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 estimates relate to the determination of key assumptions applied in calculating the defined benefit pension obligation for the principal plan. | |
Judgements | Estimates |
\u2013 A 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. \u2013 The 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. \u2013 Key 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 |
\u2013 Specific judgements supporting deferred tax assets are described in Note\u00a07. | \u2013 The 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 |
\u2013 Determining whether a present obligation exists. Professional advice is taken on the assessment of litigation and similar obligations. \u2013 Provisions 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. | \u2013 Provisions 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 \u2018Critical estimates and judgements\u2019 in Note 1.2(a). |
The classification as held for sale depends on certain judgements: |
Judgements |
Management judgement is required in determining whether the IFRS 5 held for sale criteria are met, including whether a sale is highly probable and expected to complete within one year of classification. The exercise of judgement will normally consider the likelihood of successfully securing any necessary regulatory or governmental approvals, which are almost always required for sales of banking businesses, and sanctions risk. For large and complex plans, judgement will also include an assessment of the enforceability of any binding sale agreement, the nature and magnitude of any disincentives for non-performance, and the ability of the counterparty to undertake necessary pre-completion preparatory work, comply with conditions precedent, and otherwise be able to comply with contractual undertakings to achieve completion within the expected timescale. Once classified as held for sale, judgement is required to be applied on a continuous basis to ensure that classification remains appropriate in future accounting periods. |
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 |
\u2013 The 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 or reversal more frequently than once a year when indicators 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. | \u2013 The 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. \u2013 The 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. \u2013 Key assumptions used in estimating impairment in subsidiaries and their reversal where relevant are described in Note 19.\u00a0 |
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 |
\u2013 The 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. | \u2013 The 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. \u2013 The 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. \u2013 Key assumptions used in estimating goodwill and non-financial asset impairment are described in Note 21. |
The most significant critical 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 |
\u2013 The value in use calculation uses discounted cash flow projections based on management\u2019s best estimate of future earnings available to ordinary shareholders prepared in accordance with IAS 36 \u2018Impairment of Assets\u2019. \u2013 Key assumptions used in estimating BoCom\u2019s value in use and the sensitivity of the value in use calculations to different assumptions 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 |
\u2013 The 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 or reversal more frequently than once a year when indicators 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. | \u2013 The 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. \u2013 The 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. \u2013 Key assumptions used in estimating impairment in subsidiaries and their reversal where relevant are described in Note 19.\u00a0 |
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 |
\u2013 The 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. | \u2013 The 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. \u2013 The 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. \u2013 Key assumptions used in estimating goodwill and non-financial asset impairment are described in Note 21. |
The most significant critical 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 |
\u2013 The value in use calculation uses discounted cash flow projections based on management\u2019s best estimate of future earnings available to ordinary shareholders prepared in accordance with IAS 36 \u2018Impairment of Assets\u2019. \u2013 Key assumptions used in estimating BoCom\u2019s value in use and the sensitivity of the value in use calculations to different assumptions 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 |
\u2013 An 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. \u2013 \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). | \u2013 Details 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 | \u2013 Through the cycle (represents long-run average PD throughout a full economic cycle) \u2013 The definition of default includes a backstop of\u00a090+ days past due | \u2013 Point in time (based on current conditions, adjusted to\u00a0take into account estimates of future conditions that will impact PD) \u2013 Default backstop of 90+ days past due for all portfolios |
EAD | \u2013 Cannot be lower than current balance | \u2013 Amortisation captured for term products |
LGD | \u2013 Downturn LGD (consistent losses expected to be suffered during a severe but plausible economic downturn) \u2013 Regulatory floors may apply to mitigate risk of underestimating downturn LGD due to lack of historical data \u2013 Discounted using cost of capital \u2013 All collection costs included | \u2013 Expected LGD (based on estimate of loss given default including the expected impact of future economic conditions such as changes in value of collateral) \u2013 No floors \u2013 Discounted using the original effective interest rate of the loan \u2013 Only costs associated with obtaining/selling collateral included |
Other | \u2013 Discounted back from point of default to balance sheet date |
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 |
\u2013 Defining what is considered to be a significant increase in credit risk \u2013 Determining the lifetime and point of initial recognition of overdrafts and credit cards \u2013 Selecting 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 \u2013 Selecting model inputs and economic forecasts, including determining whether sufficient and appropriately weighted economic forecasts are incorporated to calculate unbiased expected credit loss \u2013 Making management adjustments to account for late-breaking events, model and data limitations and deficiencies, and expert credit judgements \u2013 Selecting applicable recovery strategies for certain wholesale credit-impaired loans | \u2013 The section \u2018Measurement uncertainty and sensitivity analysis of ECL estimates\u2019, marked as audited from page 156, 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 estimates relate to the determination of key assumptions applied in calculating the defined benefit pension obligation for the principal plan. | |
Judgements | Estimates |
\u2013 A 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. \u2013 The 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. \u2013 Key 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 |
\u2013 Specific judgements supporting deferred tax assets are described in Note\u00a07. | \u2013 The 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 |
\u2013 Specific judgements supporting deferred tax assets are described in Note\u00a07. | \u2013 The 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 |
\u2013 Determining whether a present obligation exists. Professional advice is taken on the assessment of litigation and similar obligations. \u2013 Provisions 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. | \u2013 Provisions 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 \u2018Critical estimates and judgements\u2019 in Note 1.2(a). |
The classification as held for sale depends on certain judgements: |
Judgements |
Management judgement is required in determining whether the IFRS 5 held for sale criteria are met, including whether a sale is highly probable and expected to complete within one year of classification. The exercise of judgement will normally consider the likelihood of successfully securing any necessary regulatory or governmental approvals, which are almost always required for sales of banking businesses, and sanctions risk. For large and complex plans, judgement will also include an assessment of the enforceability of any binding sale agreement, the nature and magnitude of any disincentives for non-performance, and the ability of the counterparty to undertake necessary pre-completion preparatory work, comply with conditions precedent, and otherwise be able to comply with contractual undertakings to achieve completion within the expected timescale. Once classified as held for sale, judgement is required to be applied on a continuous basis to ensure that classification remains appropriate in future accounting periods. |
2 | Net fee income |
Net fee income by global business | |||||
2023 | |||||
Wealth and Personal Banking | Commercial Banking | Global Banking and Markets | Corporate Centre | Total | |
$m | $m | $m | $m | $m | |
Funds under management | 1,763 | 71 | 539 | \u2014 | 2,373 |
Cards | 2,385 | 353 | 38 | \u2014 | 2,776 |
Credit facilities | 103 | 856 | 615 | \u2014 | 1,574 |
Broking income | 463 | 22 | 592 | \u2014 | 1,077 |
Account services | 402 | 788 | 347 | \u2014 | 1,537 |
Unit trusts | 727 | 10 | 1 | \u2014 | 738 |
Underwriting | \u2014 | 3 | 583 | \u2014 | 586 |
Global custody | 128 | 6 | 730 | \u2014 | 864 |
Remittances | 86 | 389 | 347 | 1 | 823 |
Imports/exports | \u2014 | 470 | 154 | \u2014 | 624 |
Insurance agency commission | 280 | 18 | \u2014 | \u2014 | 298 |
Other | 1,433 | 1,161 | 2,458 | (2,706) | 2,346 |
Fee income | 7,770 | 4,147 | 6,404 | (2,705) | 15,616 |
Less: fee expense | (2,416) | (210) | (3,858) | 2,713 | (3,771) |
Net fee income | 5,354 | 3,937 | 2,546 | 8 | 11,845 |
20221 | |||||
Wealth and Personal Banking | Commercial Banking2 | Global Banking and Markets2 | Corporate Centre | Total | |
$m | $m | $m | $m | $m | |
Funds under management | 1,765 | 107 | 500 | (12) | 2,360 |
Cards | 2,146 | 313 | 32 | \u2014 | 2,491 |
Credit facilities | 100 | 783 | 591 | \u2014 | 1,474 |
Broking income | 576 | 40 | 635 | \u2014 | 1,251 |
Account services | 337 | 730 | 344 | 1 | 1,412 |
Unit trusts | 682 | 14 | \u2014 | \u2014 | 696 |
Underwriting | 1 | 2 | 443 | (5) | 441 |
Global custody | 140 | 19 | 762 | \u2014 | 921 |
Remittances | 72 | 380 | 346 | 1 | 799 |
Imports/exports | \u2014 | 493 | 141 | \u2014 | 634 |
Insurance agency commission | 283 | 16 | 1 | \u2014 | 300 |
Other | 1,330 | 1,102 | 2,376 | (2,463) | 2,345 |
Fee income | 7,432 | 3,999 | 6,171 | (2,478) | 15,124 |
Less: fee expense | (2,128) | (212) | (3,459) | 2,445 | (3,354) |
Net fee income | 5,304 | 3,787 | 2,712 | (33) | 11,770 |
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 |
3 | Net income/(expense) from financial instruments measured at fair value through profit or loss |
2023 | 20221 | 2021 | |
$m | $m | $m | |
Net income/(expense) arising on: | |||
Net trading activities | 20,391 | 2,372 | 6,668 |
Other instruments managed on a fair value basis | (3,730) | 7,906 | 1,076 |
Net income from financial instruments held for trading or managed on a fair value basis | 16,661 | 10,278 | 7,744 |
Financial assets held to meet liabilities under insurance and investment contracts | 8,086 | (14,392) | 4,134 |
Liabilities to customers under investment contracts | (199) | 561 | (81) |
Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss | 7,887 | (13,831) | 4,053 |
2023 | 2022 | 2021 | |
$m | $m | $m | |
Net income/(expense) arising on: | |||
\u2013\u00a0 trading activities | (546) | 2,094 | 87 |
\u2013\u00a0 other instruments managed on a fair value basis | 1,609 | 35 | 23 |
Net income from financial instruments held for trading or managed on a fair value basis | 1,063 | 2,129 | 110 |
Derivatives managed in conjunction with HSBC Holdings-issued debt securities | 426 | (1,529) | (625) |
Other changes in fair value | (1,894) | 3,673 | 974 |
Changes in fair value of designated debt and related derivatives | (1,468) | 2,144 | 349 |
Changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | 3,692 | (2,409) | (420) |
Year ended 31 Dec | 3,287 | 1,864 | 39 |
4 | Insurance business |
Insurance service result | ||||||
Year ended 31 Dec 2023 | Year ended 31 Dec 2022\u00b9 | |||||
Life direct participating and investment DPF contracts2 | Life other contracts3 | Total | Life direct participating and investment DPF contracts2 | Life other contracts3 | Total | |
$m | $m | $m | $m | $m | $m | |
Insurance revenue | ||||||
Amounts relating to changes in liabilities for remaining coverage | 1,626 | 470 | 2,096 | 1,399 | 446 | 1,845 |
Contractual service margin recognised for services provided | 975 | 151 | 1,126 | 781 | 151 | 932 |
Change in risk adjustment for non-financial risk for risk expired | 21 | 15 | 36 | 17 | 17 | 34 |
Expected incurred claims and other insurance service expenses | 594 | 304 | 898 | 528 | 278 | 806 |
Other | 36 | \u2014 | 36 | 73 | \u2014 | 73 |
Recovery of insurance acquisition cash flows | 109 | 54 | 163 | 102 | 30 | 132 |
Total insurance revenue | 1,735 | 524 | 2,259 | 1,501 | 476 | 1,977 |
Insurance service expenses | ||||||
Incurred claims and other insurance service expenses | (615) | (292) | (907) | (573) | (280) | (853) |
Losses and reversal of losses on onerous contracts | (32) | (77) | (109) | (84) | (86) | (170) |
Amortisation of insurance acquisition cash flows | (109) | (54) | (163) | (102) | (30) | (132) |
Adjustments to liabilities for incurred claims | (1) | (1) | (2) | (2) | (11) | (13) |
Total insurance service expenses | (757) | (424) | (1,181) | (761) | (407) | (1,168) |
Total insurance service results | 978 | 100 | 1,078 | 740 | 69 | 809 |
Net investment return | ||||||
Year ended 31 Dec 2023 | Year ended 31 Dec 2022\u00b9 | |||||
Life direct participating and investment DPF contracts | Life other contracts | Total | Life direct participating and investment DPF contracts | Life other contracts | Total | |
$m | $m | $m | $m | $m | $m | |
Investment return | ||||||
Amounts recognised in profit or loss2 | 7,663 | 214 | 7,877 | (13,520) | (181) | (13,701) |
Amounts recognised in OCI3 | 493 | \u2014 | 493 | (2,392) | \u2014 | (2,392) |
Total investment return (memorandum) | 8,156 | 214 | 8,370 | (15,912) | (181) | (16,093) |
Net finance income/(expense) | ||||||
Changes in fair value of underlying items of direct participating contracts | (7,995) | \u2014 | (7,995) | 15,937 | \u2014 | 15,937 |
Effect of risk mitigation option | (35) | \u2014 | (35) | 99 | \u2014 | 99 |
Interest accreted | \u2014 | (127) | (127) | \u2014 | (80) | (80) |
Effect of changes in interest rates and other financial assumptions | (12) | (121) | (133) | \u2014 | 233 | 233 |
Effect of measuring changes in estimates at current rates and adjusting the CSM at rates on initial recognition | \u2014 | (10) | (10) | \u2014 | 3 | 3 |
Total net finance income/(expense) from insurance contracts | (8,042) | (258) | (8,300) | 16,036 | 156 | 16,192 |
Represented by: | ||||||
Amounts recognised in profit or loss | (7,551) | (258) | (7,809) | 13,643 | 156 | 13,799 |
Amounts recognised in OCI | (491) | \u2014 | (491) | 2,393 | \u2014 | 2,393 |
Total net investment results | 114 | (44) | 70 | 124 | (25) | 99 |
Represented by: | ||||||
Amounts recognised in profit or loss | 112 | (44) | 68 | 123 | (25) | 98 |
Amounts recognised in OCI | 2 | \u2014 | 2 | 1 | \u2014 | 1 |
Reconciliation of amounts included in other comprehensive income for financial assets measured at fair value through other comprehensive income \u2013 assets supporting contracts measured under the modified retrospective approach | ||
2023 | 2022 | |
$m | $m | |
Balance at 1 Jan | (973) | 622 |
Net change in fair value | 451 | (2,099) |
Net amount reclassified to profit or loss | (6) | (2) |
Related income tax | (115) | 543 |
Foreign exchange and other | (27) | (37) |
Balance at 31 Dec | (670) | (973) |
Movements in carrying amounts of insurance contracts \u2013 analysis by remaining coverage and incurred claims | |||||||||
Year ended 31 Dec 2023 | |||||||||
Life direct participating and investment DPF contracts | Life other contracts | ||||||||
Liabilities for remaining coverage: | Liabilities for remaining coverage: | ||||||||
Excluding loss component | Loss component | Incurred claims | Total | Excluding loss component | Loss component | Incurred claims | Total | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | $m | |
Opening assets | (5) | \u2014 | \u2014 | (5) | (187) | 21 | 35 | (131) | (136) |
Opening liabilities | 104,676 | 114 | 355 | 105,145 | 3,359 | 109 | 203 | 3,671 | 108,816 |
Net opening balance at 1 Jan 2023 | 104,671 | 114 | 355 | 105,140 | 3,172 | 130 | 238 | 3,540 | 108,680 |
Changes in the statement of profit or loss and other comprehensive income | |||||||||
Insurance revenue | |||||||||
Contracts under the fair value approach | (508) | \u2014 | \u2014 | (508) | (196) | \u2014 | \u2014 | (196) | (704) |
Contracts under the modified retrospective approach | (148) | \u2014 | \u2014 | (148) | (22) | \u2014 | \u2014 | (22) | (170) |
Other contracts2 | (1,079) | \u2014 | \u2014 | (1,079) | (306) | \u2014 | \u2014 | (306) | (1,385) |
Total insurance revenue | (1,735) | \u2014 | \u2014 | (1,735) | (524) | \u2014 | \u2014 | (524) | (2,259) |
Insurance service expenses | |||||||||
Incurred claims and other insurance service expenses | \u2014 | (6) | 621 | 615 | \u2014 | (24) | 316 | 292 | 907 |
Amortisation of insurance acquisition cash flows | 109 | \u2014 | \u2014 | 109 | 54 | \u2014 | \u2014 | 54 | 163 |
Losses and reversal of losses on onerous contracts | \u2014 | 32 | \u2014 | 32 | \u2014 | 77 | \u2014 | 77 | 109 |
Adjustments to liabilities for incurred claims | \u2014 | \u2014 | 1 | 1 | \u2014 | \u2014 | 1 | 1 | 2 |
Total insurance service expenses | 109 | 26 | 622 | 757 | 54 | 53 | 317 | 424 | 1,181 |
Investment components | (8,104) | \u2014 | 8,104 | \u2014 | (818) | \u2014 | 818 | \u2014 | \u2014 |
Insurance service result | (9,730) | 26 | 8,726 | (978) | (1,288) | 53 | 1,135 | (100) | (1,078) |
Net finance (income)/expense from insurance contracts3 | 8,042 | \u2014 | \u2014 | 8,042 | 254 | 3 | 1 | 258 | 8,300 |
Other movements recognised in the statement of profit or loss | 513 | (5) | (214) | 294 | (8) | 4 | (13) | (17) | 277 |
Effect of movements in exchange rates | 942 | 1 | 6 | 949 | 25 | (2) | 8 | 31 | 980 |
Total changes in the statement of profit or loss and other comprehensive income | (233) | 22 | 8,518 | 8,307 | (1,017) | 58 | 1,131 | 172 | 8,479 |
Cash flows | |||||||||
Premiums received | 12,616 | \u2014 | \u2014 | 12,616 | 1,256 | \u2014 | \u2014 | 1,256 | 13,872 |
Claims and other insurance service expenses paid, including investment components, and other cash flows | (15) | \u2014 | (8,502) | (8,517) | 1 | \u2014 | (1,112) | (1,111) | (9,628) |
Insurance acquisition cash flows | (522) | \u2014 | \u2014 | (522) | (282) | \u2014 | \u2014 | (282) | (804) |
Total cash flows | 12,079 | \u2014 | (8,502) | 3,577 | 975 | \u2014 | (1,112) | (137) | 3,440 |
Other movements | 14 | (14) | \u2014 | \u2014 | (9) | (13) | 22 | \u2014 | \u2014 |
Net closing balance at 31 Dec 2023 | 116,531 | 122 | 371 | 117,024 | 3,121 | 175 | 279 | 3,575 | 120,599 |
Closing assets | (15) | 1 | 1 | (13) | (279) | (16) | 56 | (239) | (252) |
Closing liabilities | 116,546 | 121 | 370 | 117,037 | 3,400 | 191 | 223 | 3,814 | 120,851 |
Net closing balance at 31 Dec 2023 | 116,531 | 122 | 371 | 117,024 | 3,121 | 175 | 279 | 3,575 | 120,599 |
Movements in carrying amounts of insurance contracts \u2013 analysis by remaining coverage and incurred claims (continued) | |||||||||
Year ended 31 Dec 20221 | |||||||||
Life direct participating and investment DPF contracts | Life other contracts | ||||||||
Liabilities for remaining coverage: | Liabilities for remaining coverage: | ||||||||
Excluding loss component | Loss component | Incurred claims | Total | Excluding loss component | Loss component | Incurred claims | Total | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | $m | |
Opening assets | \u2014 | \u2014 | \u2014 | \u2014 | (159) | 7 | 36 | (116) | (116) |
Opening liabilities | 114,952 | 93 | 226 | 115,271 | 3,825 | 67 | 144 | 4,036 | 119,307 |
Net opening balance at 1 Jan 2022 | 114,952 | 93 | 226 | 115,271 | 3,666 | 74 | 180 | 3,920 | 119,191 |
Changes in the statement of profit or loss and other comprehensive income | |||||||||
Insurance revenue | |||||||||
Contracts under the fair value approach | (571) | \u2014 | \u2014 | (571) | (234) | \u2014 | \u2014 | (234) | (805) |
Contracts under the modified retrospective approach | (147) | \u2014 | \u2014 | (147) | (24) | \u2014 | \u2014 | (24) | (171) |
Other contracts2 | (783) | \u2014 | \u2014 | (783) | (218) | \u2014 | \u2014 | (218) | (1,001) |
Total insurance revenue | (1,501) | \u2014 | \u2014 | (1,501) | (476) | \u2014 | \u2014 | (476) | (1,977) |
Insurance service expenses | |||||||||
Incurred claims and other insurance service expenses | \u2014 | 5 | 568 | 573 | \u2014 | (6) | 286 | 280 | 853 |
Amortisation of insurance acquisition cash flows | 102 | \u2014 | \u2014 | 102 | 30 | \u2014 | \u2014 | 30 | 132 |
Losses and reversal of losses on onerous contracts | \u2014 | 84 | \u2014 | 84 | \u2014 | 86 | \u2014 | 86 | 170 |
Adjustments to liabilities for incurred claims | \u2014 | \u2014 | 2 | 2 | \u2014 | \u2014 | 11 | 11 | 13 |
Total insurance service expenses | 102 | 89 | 570 | 761 | 30 | 80 | 297 | 407 | 1,168 |
Investment components | (5,487) | \u2014 | 5,487 | \u2014 | (549) | \u2014 | 549 | \u2014 | \u2014 |
Insurance service result | (6,886) | 89 | 6,057 | (740) | (995) | 80 | 846 | (69) | (809) |
Net finance (income)/expense from insurance contracts3 | (16,038) | \u2014 | 2 | (16,036) | (154) | 2 | (4) | (156) | (16,192) |
Effect of movements in exchange rates | (2,159) | (4) | (11) | (2,174) | (88) | (2) | (3) | (93) | (2,267) |
Total changes in the statement of profit or loss and other comprehensive income | (25,083) | 85 | 6,048 | (18,950) | (1,237) | 80 | 839 | (318) | (19,268) |
Cash flows | |||||||||
Premiums received | 12,740 | \u2014 | \u2014 | 12,740 | 882 | \u2014 | \u2014 | 882 | 13,622 |
Claims and other insurance service expenses paid, including investment components, and other cash flows | \u2014 | \u2014 | (5,783) | (5,783) | \u2014 | \u2014 | (880) | (880) | (6,663) |
Insurance acquisition cash flows | (423) | \u2014 | \u2014 | (423) | (162) | \u2014 | \u2014 | (162) | (585) |
Total cash flows | 12,317 | \u2014 | (5,783) | 6,534 | 720 | \u2014 | (880) | (160) | 6,374 |
Acquisition of subsidiaries and other movements | 2,485 | (64) | (136) | 2,285 | 23 | (24) | 99 | 98 | 2,383 |
Net closing balance at 31 Dec 2022 | 104,671 | 114 | 355 | 105,140 | 3,172 | 130 | 238 | 3,540 | 108,680 |
Closing assets | (5) | \u2014 | \u2014 | (5) | (187) | 21 | 35 | (131) | (136) |
Closing liabilities | 104,676 | 114 | 355 | 105,145 | 3,359 | 109 | 203 | 3,671 | 108,816 |
Net closing balance at 31 Dec 2022 | 104,671 | 114 | 355 | 105,140 | 3,172 | 130 | 238 | 3,540 | 108,680 |
Movements in carrying amounts of insurance contracts \u2013 analysis by measurement component | |||||||||||
Year ended 31 Dec 2023 | |||||||||||
Life direct participating and investment DPF contracts | Life other contracts | ||||||||||
Estimates of present value of future cash flows and risk adjustment | Contractual service margin | Estimates of present value of future cash flows and risk adjustment | Contractual service margin | ||||||||
Contracts under the fair value approach | Contracts under the modified retros- pective approach | Other contracts2 | Total | Contracts under the fair value approach | Contracts under the modified retros- pective approach | Other contracts2 | Total | Total | |||
$m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | |
Opening assets | (18) | 3 | \u2014 | 10 | (5) | (308) | 86 | \u2014 | 91 | (131) | (136) |
Opening liabilities | 96,174 | 4,364 | 792 | 3,815 | 105,145 | 3,162 | 325 | 18 | 166 | 3,671 | 108,816 |
Net opening balance at 1 Jan 2023 | 96,156 | 4,367 | 792 | 3,825 | 105,140 | 2,854 | 411 | 18 | 257 | 3,540 | 108,680 |
Changes in the statement of profit or loss and other comprehensive income | |||||||||||
Changes that relate to current services | |||||||||||
Contractual service margin recognised for services provided | \u2014 | (188) | (70) | (717) | (975) | \u2014 | (69) | (6) | (76) | (151) | (1,126) |
Change in risk adjustment for non-financial risk expired | (21) | \u2014 | \u2014 | \u2014 | (21) | (15) | \u2014 | \u2014 | \u2014 | (15) | (36) |
Experience adjustments | 21 | \u2014 | \u2014 | \u2014 | 21 | (12) | \u2014 | \u2014 | \u2014 | (12) | 9 |
Changes that relate to future services | |||||||||||
Contracts initially recognised in the year | (1,606) | \u2014 | \u2014 | 1,619 | 13 | (176) | \u2014 | \u2014 | 207 | 31 | 44 |
Changes in estimates that adjust the contractual service margin | (771) | 368 | (33) | 436 | \u2014 | 21 | 26 | 6 | (53) | \u2014 | \u2014 |
Changes in estimates that result in losses and reversal of losses on onerous contracts | 19 | \u2014 | \u2014 | \u2014 | 19 | 46 | \u2014 | \u2014 | \u2014 | 46 | 65 |
Changes that relate to past services | |||||||||||
Adjustments to liabilities for incurred claims | 1 | \u2014 | \u2014 | \u2014 | 1 | 1 | \u2014 | \u2014 | \u2014 | 1 | 2 |
Other movements recognised in insurance service result | (36) | \u2014 | \u2014 | \u2014 | (36) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (36) |
Insurance service result | (2,393) | 180 | (103) | 1,338 | (978) | (135) | (43) | \u2014 | 78 | (100) | (1,078) |
Net finance (income)/ expense from insurance contracts3 | 8,042 | \u2014 | \u2014 | \u2014 | 8,042 | 235 | 11 | \u2014 | 12 | 258 | 8,300 |
Other movements recognised in the statement of profit or loss | 145 | 133 | (1) | 17 | 294 | (43) | 6 | \u2014 | 20 | (17) | 277 |
Effect of movements in exchange rates | 883 | 2 | 27 | 37 | 949 | \u2014 | 12 | 1 | 18 | 31 | 980 |
Total changes in the statement of profit or loss and other comprehensive income | 6,677 | 315 | (77) | 1,392 | 8,307 | 57 | (14) | 1 | 128 | 172 | 8,479 |
Cash flows | |||||||||||
Premiums received | 12,616 | \u2014 | \u2014 | \u2014 | 12,616 | 1,256 | \u2014 | \u2014 | \u2014 | 1,256 | 13,872 |
Claims, other insurance service expenses paid (including investment components) and other cash flows | (8,517) | \u2014 | \u2014 | \u2014 | (8,517) | (1,111) | \u2014 | \u2014 | \u2014 | (1,111) | (9,628) |
Insurance acquisition cash flows | (522) | \u2014 | \u2014 | \u2014 | (522) | (282) | \u2014 | \u2014 | \u2014 | (282) | (804) |
Total cash flows | 3,577 | \u2014 | \u2014 | \u2014 | 3,577 | (137) | \u2014 | \u2014 | \u2014 | (137) | 3,440 |
Net closing balance at 31 Dec 2023 | 106,410 | 4,682 | 715 | 5,217 | 117,024 | 2,774 | 397 | 19 | 385 | 3,575 | 120,599 |
Closing assets | (30) | 3 | \u2014 | 14 | (13) | (339) | 36 | \u2014 | 64 | (239) | (252) |
Closing liabilities | 106,440 | 4,679 | 715 | 5,203 | 117,037 | 3,113 | 361 | 19 | 321 | 3,814 | 120,851 |
Net closing balance at 31 Dec 2023 | 106,410 | 4,682 | 715 | 5,217 | 117,024 | 2,774 | 397 | 19 | 385 | 3,575 | 120,599 |
Movements in carrying amounts of insurance contracts \u2013 analysis by measurement component (continued) | |||||||||||
Year ended 31 Dec 20221 | |||||||||||
Life direct participating and investment DPF contracts | Life other contracts | ||||||||||
Estimates of present value of future cash flows and risk adjustment | Contractual service margin | Estimates of present value of future cash flows and risk adjustment | Contractual service margin | ||||||||
Contracts under the fair value approach | Contracts under the modified retros- pective approach | Other contracts2 | Total | Contracts under the fair value approach | Contracts under the modified retros- pective approach | Other contracts2 | Total | Total | |||
$m | $m | $m | $m | $m | $m | $m | $m | $m | $m | $m | |
Opening assets | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (236) | 57 | \u2014 | 63 | (116) | (116) |
Opening liabilities | 105,861 | 5,823 | 704 | 2,883 | 115,271 | 3,532 | 331 | 26 | 147 | 4,036 | 119,307 |
Net opening balance at 1 Jan 2022 | 105,861 | 5,823 | 704 | 2,883 | 115,271 | 3,296 | 388 | 26 | 210 | 3,920 | 119,191 |
Changes in the statement of profit or loss and other comprehensive income | |||||||||||
Changes that relate to current services | |||||||||||
Contractual service margin recognised for services provided | \u2014 | (297) | (69) | (415) | (781) | \u2014 | (69) | (6) | (76) | (151) | (932) |
Change in risk adjustment for non-financial risk expired | (17) | \u2014 | \u2014 | \u2014 | (17) | (17) | \u2014 | \u2014 | \u2014 | (17) | (34) |
Experience adjustments | 45 | \u2014 | \u2014 | \u2014 | 45 | 2 | \u2014 | \u2014 | \u2014 | 2 | 47 |
Changes that relate to future services | |||||||||||
Contracts initially recognised in the year | (1,092) | \u2014 | \u2014 | 1,101 | 9 | (110) | \u2014 | \u2014 | 117 | 7 | 16 |
Changes in estimates that adjust contractual service margin | 820 | (1,349) | 208 | 321 | \u2014 | (7) | 23 | \u2014 | (16) | \u2014 | \u2014 |
Changes in estimates that result in losses and reversal of losses on onerous contracts | 75 | \u2014 | \u2014 | \u2014 | 75 | 79 | \u2014 | \u2014 | \u2014 | 79 | 154 |
Changes that relate to past services | |||||||||||
Adjustments to liabilities for incurred claims | 2 | \u2014 | \u2014 | \u2014 | 2 | 11 | \u2014 | \u2014 | \u2014 | 11 | 13 |
Other movements recognised in insurance service result | (73) | \u2014 | \u2014 | \u2014 | (73) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (73) |
Insurance service result | (240) | (1,646) | 139 | 1,007 | (740) | (42) | (46) | (6) | 25 | (69) | (809) |
Net finance (income)/expense from insurance contracts3 | (16,025) | (10) | \u2014 | (1) | (16,036) | (169) | 7 | \u2014 | 6 | (156) | (16,192) |
Effect of movements in exchange rates | (2,082) | (16) | (51) | (25) | (2,174) | (74) | (17) | (2) | \u2014 | (93) | (2,267) |
Total changes in the statement of profit or loss and other comprehensive income | (18,347) | (1,672) | 88 | 981 | (18,950) | (285) | (56) | (8) | 31 | (318) | (19,268) |
Cash flows | |||||||||||
Premiums received | 12,740 | \u2014 | \u2014 | \u2014 | 12,740 | 882 | \u2014 | \u2014 | \u2014 | 882 | 13,622 |
Claims, other insurance service expenses paid (including investment components) and other cash flows | (5,783) | \u2014 | \u2014 | \u2014 | (5,783) | (880) | \u2014 | \u2014 | \u2014 | (880) | (6,663) |
Insurance acquisition cash flows | (423) | \u2014 | \u2014 | \u2014 | (423) | (162) | \u2014 | \u2014 | \u2014 | (162) | (585) |
Total cash flows | 6,534 | \u2014 | \u2014 | \u2014 | 6,534 | (160) | \u2014 | \u2014 | \u2014 | (160) | 6,374 |
Acquisition of subsidiaries and other movements | 2,108 | 216 | \u2014 | (39) | 2,285 | 3 | 79 | \u2014 | 16 | 98 | 2,383 |
Net closing balance at 31 Dec 2022 | 96,156 | 4,367 | 792 | 3,825 | 105,140 | 2,854 | 411 | 18 | 257 | 3,540 | 108,680 |
Closing assets | (18) | 3 | \u2014 | 10 | (5) | (308) | 86 | \u2014 | 91 | (131) | (136) |
Closing liabilities | 96,174 | 4,364 | 792 | 3,815 | 105,145 | 3,162 | 325 | 18 | 166 | 3,671 | 108,816 |
Net closing balance at 31 Dec 2022 | 96,156 | 4,367 | 792 | 3,825 | 105,140 | 2,854 | 411 | 18 | 257 | 3,540 | 108,680 |
Effect of contracts initially recognised in the year | ||||||
Year ended 31 Dec 2023 | Year ended 31 Dec 20221 | |||||
Profitable contracts issued | Onerous contracts issued | Total | Profitable contracts issued | Onerous contracts issued | Total | |
$m | $m | $m | $m | $m | $m | |
Life direct participating and investment DPF contracts | ||||||
Estimates of present value of cash outflows | 12,418 | 215 | 12,633 | 9,714 | 123 | 9,837 |
\u2013\u00a0 insurance acquisition cash flows | 602 | 21 | 623 | 401 | 16 | 417 |
\u2013\u00a0 claims and other insurance service expenses payable | 11,816 | 194 | 12,010 | 9,313 | 107 | 9,420 |
Estimates of present value of cash inflows | (14,074) | (204) | (14,278) | (10,844) | (115) | (10,959) |
Risk adjustment for non-financial risk | 37 | 2 | 39 | 29 | 1 | 30 |
Contractual service margin | 1,619 | \u2014 | 1,619 | 1,101 | \u2014 | 1,101 |
Losses recognised on initial recognition | \u2014 | (13) | (13) | \u2014 | (9) | (9) |
Life other contracts | ||||||
Estimates of present value of cash outflows | 1,116 | 464 | 1,580 | 640 | 111 | 751 |
\u2013\u00a0 insurance acquisition cash flows | 106 | 50 | 156 | 57 | 9 | 66 |
\u2013\u00a0 claims and other insurance service expenses payable | 1,010 | 414 | 1,424 | 583 | 102 | 685 |
Estimates of present value of cash inflows | (1,350) | (438) | (1,788) | (778) | (105) | (883) |
Risk adjustment for non-financial risk | 27 | 5 | 32 | 21 | 1 | 22 |
Contractual service margin | 207 | \u2014 | 207 | 117 | \u2014 | 117 |
Losses recognised on initial recognition | \u2014 | (31) | (31) | \u2014 | (7) | (7) |
Present value of expected future cash flows of insurance contract liabilities and contractual service margin | |||||||||
Less than 1 year | 1\u20132 years | 2\u20133 years | 3\u20134 years | 4\u20135 years | 5\u201310 years | 10\u201320 years | Over 20 years | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | $m | |
Insurance liability future cash flows | |||||||||
Life direct participating and investment DPF contracts | (2,620) | (545) | 2,321 | 2,419 | 3,344 | 11,695 | 23,351 | 65,897 | 105,862 |
Life other contracts | 1,276 | 362 | (347) | 4 | (45) | 36 | 102 | 1,628 | 3,016 |
Insurance liability future cash flows at 31 Dec 2023 | (1,344) | (183) | 1,974 | 2,423 | 3,299 | 11,731 | 23,453 | 67,525 | 108,878 |
Remaining contractual service margin | |||||||||
Life direct participating and investment DPF contracts | 917 | 848 | 783 | 722 | 666 | 2,597 | 2,653 | 1,428 | 10,614 |
Life other contracts | 172 | 113 | 84 | 74 | 61 | 141 | 115 | 41 | 801 |
Remaining contractual service margin at 31 Dec 2023 | 1,089 | 961 | 867 | 796 | 727 | 2,738 | 2,768 | 1,469 | 11,415 |
Insurance liability future cash flows | |||||||||
Life direct participating and investment DPF contracts | (5,049) | (1,891) | 180 | 1,417 | 1,685 | 9,585 | 30,108 | 59,762 | 95,797 |
Life other contracts | 695 | 770 | 395 | (13) | 38 | 172 | 182 | 859 | 3,098 |
Insurance liability future cash flows at 31 Dec 20221 | (4,354) | (1,121) | 575 | 1,404 | 1,723 | 9,757 | 30,290 | 60,621 | 98,895 |
Remaining contractual service margin | |||||||||
Life direct participating and investment DPF contracts | 757 | 689 | 638 | 590 | 547 | 2,177 | 2,293 | 1,293 | 8,984 |
Life other contracts | 194 | 64 | 56 | 48 | 42 | 134 | 99 | 49 | 686 |
Remaining contractual service margin at 31 Dec 20221 | 951 | 753 | 694 | 638 | 589 | 2,311 | 2,392 | 1,342 | 9,670 |
HSBC Life (International) Ltd | Hang Seng Insurance Co Ltd | HSBC Assurances Vie (France) | |||
HK$ | US$ | HK$ | US$ | \u20ac | |
At 31 Dec 2023 | |||||
10-year discount rate (%) | 4.02 | 4.47 | 4.16 | 4.62 | 2.96 |
20-year discount rate (%) | 4.21 | 4.91 | 4.34 | 5.06 | 2.97 |
At 31 Dec 2022 | |||||
10-year discount rate (%) | 4.56 | 4.59 | 4.70 | 4.80 | 3.66 |
20-year discount rate (%) | 4.63 | 4.96 | 4.76 | 5.17 | 3.33 |
38 | Effects of adoption of IFRS 17 |
Under IFRS 4 | Removal of PVIF and\u00a0 IFRS 4 balances | Remeasure- ment effect of IFRS 9 re- designations | Recognition of IFRS 17 fulfilment cash flows | Recognition of IFRS 17 contractual service margin | Tax effect | Under IFRS 17 | Total movements | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Assets | ||||||||
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | 49,804 | \u2014 | 60,991 | \u2014 | \u2014 | \u2014 | 110,795 | 60,991 |
Loans and advances to banks | 83,136 | \u2014 | (569) | \u2014 | \u2014 | \u2014 | 82,567 | (569) |
Loans and advances to customers | 1,045,814 | \u2014 | (1,280) | \u2014 | \u2014 | \u2014 | 1,044,534 | (1,280) |
Financial investments | 446,274 | \u2014 | (54,269) | \u2014 | \u2014 | \u2014 | 392,005 | (54,269) |
Goodwill and intangible assets | 20,622 | (9,453) | \u2014 | \u2014 | \u2014 | \u2014 | 11,169 | (9,453) |
Deferred tax assets | 4,624 | \u2014 | \u2014 | \u2014 | \u2014 | 808 | 5,432 | 808 |
All other assets | 1,307,665 | (4,468) | \u2014 | 4,198 | (105) | \u2014 | 1,307,290 | (375) |
Total assets | 2,957,939 | (13,921) | 4,873 | 4,198 | (105) | 808 | 2,953,792 | (4,147) |
Liabilities and equity | ||||||||
Liabilities | ||||||||
Insurance contract liabilities | 112,745 | (112,745) | \u2014 | 109,393 | 9,914 | \u2014 | 119,307 | 6,562 |
Deferred tax liabilities | 4,673 | \u2014 | \u2014 | \u2014 | \u2014 | (1,379) | 3,294 | (1,379) |
All other liabilities | 2,633,744 | 78 | \u2014 | 1,102 | (51) | \u2014 | 2,634,873 | 1,129 |
Total liabilities | 2,751,162 | (112,667) | \u2014 | 110,495 | 9,863 | (1,379) | 2,757,474 | 6,312 |
Total shareholders\u2019 equity | 198,250 | 92,738 | 4,558 | (99,631) | (8,847) | 1,947 | 189,015 | (9,235) |
Non-controlling interests | 8,527 | 6,008 | 315 | (6,666) | (1,121) | 240 | 7,303 | (1,224) |
Total equity | 206,777 | 98,746 | 4,873 | (106,297) | (9,968) | 2,187 | 196,318 | (10,459) |
Total liabilities and equity | 2,957,939 | (13,921) | 4,873 | 4,198 | (105) | 808 | 2,953,792 | (4,147) |
IFRS 17 transition impact on the reported Group consolidated income statement for the year ended 31 December 2022 | ||||||||||
Under IFRS 4 | Removal of PVIF and\u00a0 IFRS 4 balances | Remeasure- ment effect of IFRS 9 re- designations | Insurance finance income/ expense | Contrac - tual service margin | Onerous contracts | Experience variance and other | Attribut- able expenses | Tax effect | Under IFRS 17 | |
$m | $m | $m | $m | $m | $m | $m | $m | $m | $m | |
Net interest income | 32,610 | \u2014 | (2,233) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 30,377 |
Net fee income | 11,451 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 319 | \u2014 | 11,770 |
Net income from financial instruments held for trading or managed on a fair value basis | 10,469 | \u2014 | (191) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 10,278 |
Net expense from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss | (3,394) | \u2014 | (10,437) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (13,831) |
Net insurance premium income | 12,825 | (12,825) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Insurance finance income/(expense) | \u2014 | \u2014 | \u2014 | 13,799 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 13,799 |
Insurance service result | \u2014 | \u2014 | \u2014 | \u2014 | 965 | (186) | 30 | \u2014 | \u2014 | 809 |
\u2013\u00a0 insurance revenue | \u2014 | \u2014 | \u2014 | \u2014 | 965 | \u2014 | 1,012 | \u2014 | \u2014 | 1,977 |
\u2013\u00a0 insurance service expense | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (186) | (982) | \u2014 | \u2014 | (1,168) |
Other operating income/(loss) | (2,365) | (265) | \u2014 | 48 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (2,582) |
Total operating income | 61,596 | (13,090) | (12,861) | 13,847 | 965 | (186) | 30 | 319 | \u2014 | 50,620 |
Net insurance claims and benefits paid and movement in liabilities to policyholders | (9,869) | 9,869 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Net operating income before change in expected credit losses and other credit impairment charges | 51,727 | (3,221) | (12,861) | 13,847 | 965 | (186) | 30 | 319 | \u2014 | 50,620 |
Change in expected credit losses and other credit impairment charges | (3,592) | \u2014 | 8 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (3,584) |
Net operating income | 48,135 | (3,221) | (12,853) | 13,847 | 965 | (186) | 30 | 319 | \u2014 | 47,036 |
Total operating expenses | (33,330) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 629 | \u2014 | (32,701) |
Operating profit | 14,805 | (3,221) | (12,853) | 13,847 | 965 | (186) | 30 | 948 | \u2014 | 14,335 |
Share of profit in associates and joint ventures | 2,723 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 2,723 |
Profit before tax | 17,528 | (3,221) | (12,853) | 13,847 | 965 | (186) | 30 | 948 | \u2014 | 17,058 |
Tax expense | (858) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 49 | (809) |
Profit for the period | 16,670 | (3,221) | (12,853) | 13,847 | 965 | (186) | 30 | 948 | 49 | 16,249 |
Year ended 31 Dec 2022 | ||
Under IFRS 17 | Under IFRS 4 | |
$m | $m | |
Total equity at 1 Jan | 196,318 | 206,777 |
of which | ||
\u2013\u00a0 retained earnings | 135,236 | 144,458 |
\u2013\u00a0 financial assets at FVOCI reserve | 49 | (634) |
\u2013\u00a0 insurance finance reserve | (696) | \u2014 |
Profit for the period | 16,249 | 16,670 |
Debt instruments at fair value through other comprehensive income | (7,232) | (5,468) |
Equity instruments designated at fair value through other comprehensive income | 107 | 107 |
Insurance finance income recognised in other comprehensive income | 1,775 | \u2014 |
Other comprehensive expense for the period, net of tax | (11,892) | (11,940) |
Total comprehensive (expense)/income for the period | (993) | (631) |
Other movements | (10,128) | (10,118) |
Total equity at 31 Dec | 185,197 | 196,028 |
Group\u2018s consolidated balance sheet at the transition date and at 31 December 2022 | ||||
Under IFRS 17 | Under IFRS 4 | |||
31 Dec | 1 Jan | 31 Dec | 1 Jan | |
2022 | 2022 | 2022 | 2022 | |
$m | $m | $m | $m | |
Assets | ||||
Cash and balances at central banks | 327,002 | 403,018 | 327,002 | 403,018 |
Items in the course of collection from other banks | 7,297 | 4,136 | 7,299 | 4,136 |
Hong Kong Government certificates of indebtedness | 43,787 | 42,578 | 43,787 | 42,578 |
Trading assets | 218,093 | 248,842 | 218,093 | 248,842 |
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | 100,101 | 110,795 | 45,063 | 49,804 |
Derivatives | 284,159 | 196,882 | 284,146 | 196,882 |
Loans and advances to banks | 104,475 | 82,567 | 104,882 | 83,136 |
Loans and advances to customers | 923,561 | 1,044,534 | 924,854 | 1,045,814 |
Reverse repurchase agreements \u2013 non-trading | 253,754 | 241,648 | 253,754 | 241,648 |
Financial investments | 364,726 | 392,005 | 425,563 | 446,274 |
Assets held for sale | 115,919 | 3,411 | 115,919 | 3,411 |
Prepayments, accrued income and other assets | 156,149 | 136,196 | 156,865 | 136,571 |
Current tax assets | 1,230 | 970 | 1,230 | 970 |
Interests in associates and joint ventures | 29,254 | 29,609 | 29,254 | 29,609 |
Goodwill and intangible assets | 11,419 | 11,169 | 21,321 | 20,622 |
Deferred tax assets | 8,360 | 5,432 | 7,498 | 4,624 |
Total assets | 2,949,286 | 2,953,792 | 2,966,530 | 2,957,939 |
Liabilities and equity | ||||
Liabilities | ||||
Hong Kong currency notes in circulation | 43,787 | 42,578 | 43,787 | 42,578 |
Deposits by banks | 66,722 | 101,152 | 66,722 | 101,152 |
Customer accounts | 1,570,303 | 1,710,574 | 1,570,303 | 1,710,574 |
Repurchase agreements \u2013 non-trading | 127,747 | 126,670 | 127,747 | 126,670 |
Items in the course of transmission to other banks | 7,864 | 5,214 | 7,864 | 5,214 |
Trading liabilities | 72,353 | 84,904 | 72,353 | 84,904 |
Financial liabilities designated at fair value | 127,321 | 145,503 | 127,327 | 145,502 |
Derivatives | 285,762 | 191,064 | 285,764 | 191,064 |
Debt securities in issue | 78,149 | 78,557 | 78,149 | 78,557 |
Liabilities of disposal groups held for sale | 114,597 | 9,005 | 114,597 | 9,005 |
Accruals, deferred income and other liabilities | 134,313 | 115,900 | 133,240 | 114,773 |
Current tax liabilities | 1,135 | 699 | 1,135 | 698 |
Insurance contract liabilities | 108,816 | 119,307 | 114,844 | 112,745 |
Provisions | 1,958 | 2,566 | 1,958 | 2,566 |
Deferred tax liabilities | 972 | 3,294 | 2,422 | 4,673 |
Subordinated liabilities | 22,290 | 20,487 | 22,290 | 20,487 |
Total liabilities | 2,764,089 | 2,757,474 | 2,770,502 | 2,751,162 |
Equity | ||||
Called up share capital\u00a0 | 10,147 | 10,316 | 10,147 | 10,316 |
Share premium account | 14,664 | 14,602 | 14,664 | 14,602 |
Other equity instruments | 19,746 | 22,414 | 19,746 | 22,414 |
Other reserves | (9,133) | 6,447 | (9,141) | 6,460 |
Retained earnings | 142,409 | 135,236 | 152,068 | 144,458 |
Total shareholders\u2018 equity | 177,833 | 189,015 | 187,484 | 198,250 |
Non-controlling interests | 7,364 | 7,303 | 8,544 | 8,527 |
Total equity | 185,197 | 196,318 | 196,028 | 206,777 |
Total liabilities and equity | 2,949,286 | 2,953,792 | 2,966,530 | 2,957,939 |
Insurance service result | ||||||
Year ended 31 Dec 2023 | Year ended 31 Dec 2022\u00b9 | |||||
Life direct participating and investment DPF contracts2 | Life other contracts3 | Total | Life direct participating and investment DPF contracts2 | Life other contracts3 | Total | |
$m | $m | $m | $m | $m | $m | |
Insurance revenue | ||||||
Amounts relating to changes in liabilities for remaining coverage | 1,626 | 470 | 2,096 | 1,399 | 446 | 1,845 |
Contractual service margin recognised for services provided | 975 | 151 | 1,126 | 781 | 151 | 932 |
Change in risk adjustment for non-financial risk for risk expired | 21 | 15 | 36 | 17 | 17 | 34 |
Expected incurred claims and other insurance service expenses | 594 | 304 | 898 | 528 | 278 | 806 |
Other | 36 | \u2014 | 36 | 73 | \u2014 | 73 |
Recovery of insurance acquisition cash flows | 109 | 54 | 163 | 102 | 30 | 132 |
Total insurance revenue | 1,735 | 524 | 2,259 | 1,501 | 476 | 1,977 |
Insurance service expenses | ||||||
Incurred claims and other insurance service expenses | (615) | (292) | (907) | (573) | (280) | (853) |
Losses and reversal of losses on onerous contracts | (32) | (77) | (109) | (84) | (86) | (170) |
Amortisation of insurance acquisition cash flows | (109) | (54) | (163) | (102) | (30) | (132) |
Adjustments to liabilities for incurred claims | (1) | (1) | (2) | (2) | (11) | (13) |
Total insurance service expenses | (757) | (424) | (1,181) | (761) | (407) | (1,168) |
Total insurance service results | 978 | 100 | 1,078 | 740 | 69 | 809 |
Net investment return | ||||||
Year ended 31 Dec 2023 | Year ended 31 Dec 2022\u00b9 | |||||
Life direct participating and investment DPF contracts | Life other contracts | Total | Life direct participating and investment DPF contracts | Life other contracts | Total | |
$m | $m | $m | $m | $m | $m | |
Investment return | ||||||
Amounts recognised in profit or loss2 | 7,663 | 214 | 7,877 | (13,520) | (181) | (13,701) |
Amounts recognised in OCI3 | 493 | \u2014 | 493 | (2,392) | \u2014 | (2,392) |
Total investment return (memorandum) | 8,156 | 214 | 8,370 | (15,912) | (181) | (16,093) |
Net finance income/(expense) | ||||||
Changes in fair value of underlying items of direct participating contracts | (7,995) | \u2014 | (7,995) | 15,937 | \u2014 | 15,937 |
Effect of risk mitigation option | (35) | \u2014 | (35) | 99 | \u2014 | 99 |
Interest accreted | \u2014 | (127) | (127) | \u2014 | (80) | (80) |
Effect of changes in interest rates and other financial assumptions | (12) | (121) | (133) | \u2014 | 233 | 233 |
Effect of measuring changes in estimates at current rates and adjusting the CSM at rates on initial recognition | \u2014 | (10) | (10) | \u2014 | 3 | 3 |
Total net finance income/(expense) from insurance contracts | (8,042) | (258) | (8,300) | 16,036 | 156 | 16,192 |
Represented by: | ||||||
Amounts recognised in profit or loss | (7,551) | (258) | (7,809) | 13,643 | 156 | 13,799 |
Amounts recognised in OCI | (491) | \u2014 | (491) | 2,393 | \u2014 | 2,393 |
Total net investment results | 114 | (44) | 70 | 124 | (25) | 99 |
Represented by: | ||||||
Amounts recognised in profit or loss | 112 | (44) | 68 | 123 | (25) | 98 |
Amounts recognised in OCI | 2 | \u2014 | 2 | 1 | \u2014 | 1 |
5 | Employee compensation and benefits |
2023 | 2022 | 2021 | |
$m | $m | $m | |
Employee compensation and benefits1 | 18,220 | 18,003 | 18,742 |
Capitalised wages and salaries2 | 1,403 | 1,285 | 870 |
Gross employee compensation and benefits for the year ended 31 Dec | 19,623 | 19,288 | 19,612 |
Consists of: | |||
Wages and salaries | 17,359 | 16,970 | 17,072 |
Social security costs | 1,507 | 1,403 | 1,503 |
Post-employment benefits | 757 | 915 | 1,037 |
Year ended 31 Dec | 19,623 | 19,288 | 19,612 |
Average number of persons employed by HSBC during the year by global business1 | |||
2023 | 2022 | 2021 | |
Wealth and Personal Banking | 132,336 | 135,676 | 138,026 |
Commercial Banking | 46,826 | 48,004 | 44,992 |
Global Banking and Markets | 48,043 | 48,597 | 48,179 |
Corporate Centre | 347 | 365 | 359 |
Year ended 31 Dec | 227,552 | 232,642 | 231,556 |
Average number of persons employed by HSBC during the year by legal entity1 | |||
2023 | 2022 | 2021 | |
HSBC UK Bank plc | 20,415 | 20,501 | 21,447 |
HSBC Bank plc | 14,809 | 15,405 | 16,823 |
The Hongkong and Shanghai Banking Corporation Limited | 54,321 | 54,792 | 55,253 |
HSBC Bank Middle East Limited | 3,316 | 3,338 | 3,429 |
HSBC North America Holdings Inc. | 6,046 | 6,749 | 8,197 |
HSBC Bank Canada | 4,354 | 4,241 | 4,369 |
Grupo Financiero HSBC, S.A. de C.V. | 14,412 | 14,484 | 14,529 |
Other trading entities2 | 9,247 | 10,026 | 10,442 |
Holding companies, shared service centres and intra-Group eliminations | 100,632 | 103,106 | 97,067 |
Year ended 31 Dec | 227,552 | 232,642 | 231,556 |
Reconciliation of total incentive awards granted to income statement charge | |||
2023 | 2022 | 2021 | |
$m | $m | $m | |
Total incentive awards approved for the current year | 3,774 | 3,359 | 3,495 |
Less: deferred bonuses awarded, expected to be recognised in future periods | (353) | (343) | (379) |
Total incentives awarded and recognised in the current year | 3,421 | 3,016 | 3,116 |
Add: current year charges for deferred bonuses from previous years | 375 | 239 | 270 |
Other | (56) | (22) | 4 |
Income statement charge for incentive awards | 3,740 | 3,233 | 3,390 |
2023 | 2022 | 2021 | |
$m | $m | $m | |
Conditional share awards | 499 | 402 | 479 |
Savings-related and other share award option plans | 23 | 22 | 27 |
Year ended 31 Dec | 522 | 424 | 506 |
HSBC share awards | |
Award | Policy |
Deferred share awards (including annual incentive awards, long- term incentive (\u2018LTI\u2019) awards delivered in shares) | An assessment of performance over the relevant period ending on 31 December is used to determine the amount of\u00a0the award to be granted. \u2013 Deferred awards generally require employees to remain in employment over the vesting period and are generally not subject to performance conditions after the grant date. An exception to these are LTI awards, which are subject to performance conditions. \u2013 Deferred share awards generally vest over a period of three, four, five or seven years. \u2013 Vested shares may be subject to a retention requirement post-vesting. \u2013 Awards are generally subject to malus and clawback provisions. |
International Employee Share Purchase Plan (\u2018ShareMatch\u2019) | The plan was first introduced in Hong Kong in 2013 and now includes employees based in 30 jurisdictions. \u2013 Shares are purchased in the market each quarter up to a maximum value of \u00a3750, or the equivalent in local currency. \u2013 Matching awards are added at a ratio of one free share for every three purchased. In mainland China, matching awards are settled in cash. \u2013 Matching awards vest subject to continued employment and the retention of the purchased shares for a maximum period of two years and nine months. |
Movement on HSBC share awards | ||
2023 | 2022 | |
Number | Number | |
(000s) | (000s) | |
Conditional share awards outstanding at 1 Jan | 126,246 | 109,364 |
Additions during the year | 72,289 | 90,190 |
Released in the year | (70,054) | (67,718) |
Forfeited in the year | (3,458) | (5,590) |
Conditional share awards outstanding at 31 Dec | 125,023 | 126,246 |
Weighted average fair value of awards granted ($) | 5.84 | 5.60 |
HSBC share option plans | |
Main plans | Policy |
Savings-related share option plans (\u2018Sharesave\u2019) | \u2013 From 2014, employees eligible for the UK plan could save up to \u00a3 500 per month with the option to use the savings to acquire shares. \u2013 These 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. \u2013 The exercise price is set at a 20% (2022: 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 2023 | 115,651 | 2.89 |
Granted during the year2 | 23,382 | 4.70 |
Exercised during the year3 | (49,007) | 2.73 |
Expired during the year | (3,832) | 3.78 |
Forfeited during the year | (2,200) | 2.88 |
Outstanding at 31 Dec 2023 | 83,994 | 3.42 |
\u2013\u00a0 of which exercisable | 7,165 | 2.70 |
Weighted average remaining contractual life (years) | 2.41 | |
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 |
Income statement charge/(credit) | |||
2023 | 2022 | 2021 | |
$m | $m | $m | |
Defined benefit pension plans | (151) | 42 | 243 |
Defined contribution pension plans | 874 | 845 | 767 |
Pension plans | 723 | 887 | 1,010 |
Defined benefit and contribution healthcare plans | 34 | 28 | 27 |
Year ended 31 Dec | 757 | 915 | 1,037 |
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 | 33,897 | (27,011) | \u2014 | 6,886 |
Defined benefit healthcare plans | 107 | (403) | \u2014 | (296) |
At 31 Dec 2023 | 34,004 | (27,414) | \u2014 | 6,590 |
Total employee benefit liabilities (within Note 27 \u2018Accruals, deferred income and other liabilities\u2019) | (1,160) | |||
Total employee benefit assets (within Note 22 \u2018Prepayments, accrued income and other assets\u2019) | 7,750 | |||
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 |
Net asset/(liability) under defined benefit pension plans | ||||||||
Fair value of plan assets | Present value of defined benefit obligations | Effect of the asset ceiling | Net defined benefit asset/(liability) | |||||
Principal1 plan | Other plans | Principal1 plan | Other plans | Principal1 plan | Other plans | Principal1 plan | Other plans | |
$m | $m | $m | $m | $m | $m | $m | $m | |
At 1 Jan 2023 | 25,121 | 7,050 | (18,787) | (6,906) | \u2014 | \u2014 | 6,334 | 144 |
Service cost | \u2014 | \u2014 | (10) | (150) | \u2014 | \u2014 | (10) | (150) |
\u2013\u00a0 current service cost | \u2014 | \u2014 | (14) | (135) | \u2014 | \u2014 | (14) | (135) |
\u2013\u00a0 past service cost and gains/(losses) from\u00a0settlements | \u2014 | 4 | (15) | \u2014 | \u2014 | 4 | (15) | |
Net interest income/(cost) on the net defined benefit asset/ (liability) | 1,247 | 298 | (925) | (286) | \u2014 | \u2014 | 322 | 12 |
Remeasurement effects recognised in other comprehensive income | (225) | 110 | 7 | (300) | \u2014 | \u2014 | (218) | (190) |
\u2013\u00a0 return on plan assets (excluding interest income) | (225) | 110 | \u2014 | \u2014 | \u2014 | \u2014 | (225) | 110 |
\u2013\u00a0 actuarial gains/(losses) financial assumptions | \u2014 | \u2014 | (123) | (327) | \u2014 | \u2014 | (123) | (327) |
\u2013\u00a0 actuarial gains/(losses) demographic assumptions | \u2014 | \u2014 | 357 | 17 | \u2014 | \u2014 | 357 | 17 |
\u2013\u00a0 actuarial gains/(losses) experience adjustments | \u2014 | \u2014 | (227) | 10 | \u2014 | \u2014 | (227) | 10 |
\u2013\u00a0 other changes | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Exchange differences | 1,472 | 228 | (1,098) | (190) | \u2014 | \u2014 | 374 | 38 |
Benefits paid | (1,063) | (548) | 1,063 | 629 | \u2014 | \u2014 | \u2014 | 81 |
Other movements2 | 38 | 169 | (32) | (26) | \u2014 | \u2014 | 6 | 143 |
At 31 Dec 2023 | 26,590 | 7,307 | (19,782) | (7,229) | \u2014 | \u2014 | 6,808 | 78 |
At 1 Jan 2022 | 41,384 | 10,047 | (32,255) | (10,022) | \u2014 | (23) | 9,129 | 2 |
Service cost | \u2014 | \u2014 | (30) | (170) | \u2014 | \u2014 | (30) | (170) |
\u2013\u00a0 current service cost | \u2014 | \u2014 | (12) | (161) | \u2014 | \u2014 | (12) | (161) |
\u2013\u00a0 past service cost and losses from\u00a0settlements | \u2014 | \u2014 | (18) | (9) | \u2014 | \u2014 | (18) | (9) |
Net interest income/(cost) on the net defined benefit asset/ (liability) | 703 | 198 | (546) | (202) | \u2014 | (1) | 157 | (5) |
Remeasurement effects recognised in other comprehensive income | (11,505) | (2,181) | 9,532 | 2,360 | \u2014 | (3) | (1,973) | 176 |
\u2013\u00a0 return on plan assets (excluding interest income) | (11,505) | (2,181) | \u2014 | \u2014 | \u2014 | \u2014 | (11,505) | (2,181) |
\u2013\u00a0 actuarial gains/(losses) financial assumptions | \u2014 | \u2014 | 10,543 | 2,383 | \u2014 | \u2014 | 10,543 | 2,383 |
\u2013\u00a0 actuarial gains/(losses) demographic assumptions | \u2014 | \u2014 | (123) | 24 | \u2014 | \u2014 | (123) | 24 |
\u2013\u00a0 actuarial gains/(losses) experience adjustments | \u2014 | \u2014 | (888) | (47) | \u2014 | \u2014 | (888) | (47) |
\u2013\u00a0 other changes | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (3) | \u2014 | (3) |
Exchange differences | (4,288) | (180) | 3,325 | 35 | \u2014 | 2 | (963) | (143) |
Benefits paid | (1,222) | (616) | 1,222 | 686 | \u2014 | \u2014 | \u2014 | 70 |
Other movements2 | 49 | (218) | (35) | 407 | \u2014 | 25 | 14 | 214 |
At 31 Dec 2022 | 25,121 | 7,050 | (18,787) | (6,906) | \u2014 | \u2014 | 6,334 | 144 |
Benefits expected to be paid from plans | ||||||
2024 | 2025 | 2026 | 2027 | 2028 | 2029-2033 | |
$m | $m | $m | $m | $m | $m | |
The principal plan1,2 | 1,125 | 1,160 | 1,196 | 1,234 | 1,273 | 6,988 |
Other plans1 | 465 | 473 | 456 | 478 | 476 | 2,403 |
Fair value of plan assets by asset classes | ||||||||
31 Dec 2023 | 31 Dec 2022 | |||||||
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 | 26,590 | 15,006 | 11,584 | 547 | 25,121 | 13,915 | 11,206 | 510 |
\u2013\u00a0 equities3 | 83 | \u2014 | 83 | \u2014 | 112 | \u2014 | 112 | \u2014 |
\u2013\u00a0 bonds fixed income | 5,262 | 4,739 | 523 | \u2014 | 5,285 | 4,822 | 463 | \u2014 |
\u2013\u00a0 bonds index-linked | 10,300 | 10,300 | \u2014 | \u2014 | 9,479 | 9,479 | \u2014 | \u2014 |
\u2013\u00a0 derivatives | 1,061 | \u2014 | 1,061 | 547 | 1,203 | \u2014 | 1,203 | 510 |
\u2013\u00a0 property | 830 | \u2014 | 830 | \u2014 | 842 | \u2014 | 842 | \u2014 |
\u2013\u00a0 pooled investment vehicles | 9,087 | \u2014 | 9,087 | \u2014 | 8,586 | \u2014 | 8,586 | \u2014 |
\u2013\u00a0 other | (33) | (33) | \u2014 | \u2014 | (386) | (386) | \u2014 | \u2014 |
Other plans | ||||||||
Fair value of plan assets | 7,307 | 5,361 | 1,946 | 39 | 7,050 | 5,848 | 1,202 | 37 |
\u2013\u00a0 equities | 556 | 556 | \u2014 | 3 | 639 | 486 | 153 | 2 |
\u2013\u00a0 bonds fixed income | 3,624 | 3,623 | 1 | 5 | 3,571 | 3,472 | 99 | 4 |
\u2013\u00a0 bonds index-linked | 90 | 90 | \u2014 | \u2014 | 58 | 58 | \u2014 | \u2014 |
\u2013\u00a0 bonds other | 447 | 415 | 32 | \u2014 | 1,357 | 1,007 | 350 | \u2014 |
\u2013\u00a0 derivatives | 2 | (1) | 3 | \u2014 | 4 | (1) | 5 | \u2014 |
\u2013\u00a0 property | 112 | 108 | 4 | \u2014 | 109 | 104 | 5 | \u2014 |
\u2013\u00a0 other | 2,476 | 570 | 1,906 | 31 | 1,312 | 722 | 590 | 31 |
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 2023 | 4.65 | 3.23 | 2.67 | 3.14 | 3.42 |
At 31 Dec 2022 | 4.93 | 3.39 | 2.84 | 3.27 | 3.34 |
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 2023 | SAPS S32 | 26.2 | 27.7 | 28.3 | 29.8 |
At 31 Dec 2022 | SAPS S3 | 27.1 | 28.6 | 28.4 | 29.9 |
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 | |||
2023 | 2022 | 2023 | 2022 | |
$m | $m | $m | $m | |
Discount rate \u2013 increase/decrease of 0.25% | (599) | (582) | 631 | 612 |
Inflation rate (RPI and CPI) \u2013 increase/decrease of 0.25% | 500 | 466 | (497) | (446) |
Pension payments and deferred pensions \u2013 increase/decrease of 0.25% | 622 | 551 | (590) | (519) |
Pay \u2013 increase/decrease of 0.25% | 8 | 10 | (6) | (10) |
Change in mortality \u2013 increase/decrease of 1 year | 613 | 470 | (613) | (489) |
Average number of persons employed by HSBC during the year by global business1 | |||
2023 | 2022 | 2021 | |
Wealth and Personal Banking | 132,336 | 135,676 | 138,026 |
Commercial Banking | 46,826 | 48,004 | 44,992 |
Global Banking and Markets | 48,043 | 48,597 | 48,179 |
Corporate Centre | 347 | 365 | 359 |
Year ended 31 Dec | 227,552 | 232,642 | 231,556 |
Average number of persons employed by HSBC during the year by legal entity1 | |||
2023 | 2022 | 2021 | |
HSBC UK Bank plc | 20,415 | 20,501 | 21,447 |
HSBC Bank plc | 14,809 | 15,405 | 16,823 |
The Hongkong and Shanghai Banking Corporation Limited | 54,321 | 54,792 | 55,253 |
HSBC Bank Middle East Limited | 3,316 | 3,338 | 3,429 |
HSBC North America Holdings Inc. | 6,046 | 6,749 | 8,197 |
HSBC Bank Canada | 4,354 | 4,241 | 4,369 |
Grupo Financiero HSBC, S.A. de C.V. | 14,412 | 14,484 | 14,529 |
Other trading entities2 | 9,247 | 10,026 | 10,442 |
Holding companies, shared service centres and intra-Group eliminations | 100,632 | 103,106 | 97,067 |
Year ended 31 Dec | 227,552 | 232,642 | 231,556 |
2023 | 2022 | 2021 | |
$m | $m | $m | |
Conditional share awards | 499 | 402 | 479 |
Savings-related and other share award option plans | 23 | 22 | 27 |
Year ended 31 Dec | 522 | 424 | 506 |
HSBC share awards | |
Award | Policy |
Deferred share awards (including annual incentive awards, long- term incentive (\u2018LTI\u2019) awards delivered in shares) | An assessment of performance over the relevant period ending on 31 December is used to determine the amount of\u00a0the award to be granted. \u2013 Deferred awards generally require employees to remain in employment over the vesting period and are generally not subject to performance conditions after the grant date. An exception to these are LTI awards, which are subject to performance conditions. \u2013 Deferred share awards generally vest over a period of three, four, five or seven years. \u2013 Vested shares may be subject to a retention requirement post-vesting. \u2013 Awards are generally subject to malus and clawback provisions. |
International Employee Share Purchase Plan (\u2018ShareMatch\u2019) | The plan was first introduced in Hong Kong in 2013 and now includes employees based in 30 jurisdictions. \u2013 Shares are purchased in the market each quarter up to a maximum value of \u00a3750, or the equivalent in local currency. \u2013 Matching awards are added at a ratio of one free share for every three purchased. In mainland China, matching awards are settled in cash. \u2013 Matching awards vest subject to continued employment and the retention of the purchased shares for a maximum period of two years and nine months. |
Movement on HSBC share awards | ||
2023 | 2022 | |
Number | Number | |
(000s) | (000s) | |
Conditional share awards outstanding at 1 Jan | 126,246 | 109,364 |
Additions during the year | 72,289 | 90,190 |
Released in the year | (70,054) | (67,718) |
Forfeited in the year | (3,458) | (5,590) |
Conditional share awards outstanding at 31 Dec | 125,023 | 126,246 |
Weighted average fair value of awards granted ($) | 5.84 | 5.60 |
HSBC share option plans | |
Main plans | Policy |
Savings-related share option plans (\u2018Sharesave\u2019) | \u2013 From 2014, employees eligible for the UK plan could save up to \u00a3 500 per month with the option to use the savings to acquire shares. \u2013 These 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. \u2013 The exercise price is set at a 20% (2022: 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 2023 | 115,651 | 2.89 |
Granted during the year2 | 23,382 | 4.70 |
Exercised during the year3 | (49,007) | 2.73 |
Expired during the year | (3,832) | 3.78 |
Forfeited during the year | (2,200) | 2.88 |
Outstanding at 31 Dec 2023 | 83,994 | 3.42 |
\u2013\u00a0 of which exercisable | 7,165 | 2.70 |
Weighted average remaining contractual life (years) | 2.41 | |
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 |
Net asset/(liability) under defined benefit pension plans | ||||||||
Fair value of plan assets | Present value of defined benefit obligations | Effect of the asset ceiling | Net defined benefit asset/(liability) | |||||
Principal1 plan | Other plans | Principal1 plan | Other plans | Principal1 plan | Other plans | Principal1 plan | Other plans | |
$m | $m | $m | $m | $m | $m | $m | $m | |
At 1 Jan 2023 | 25,121 | 7,050 | (18,787) | (6,906) | \u2014 | \u2014 | 6,334 | 144 |
Service cost | \u2014 | \u2014 | (10) | (150) | \u2014 | \u2014 | (10) | (150) |
\u2013\u00a0 current service cost | \u2014 | \u2014 | (14) | (135) | \u2014 | \u2014 | (14) | (135) |
\u2013\u00a0 past service cost and gains/(losses) from\u00a0settlements | \u2014 | 4 | (15) | \u2014 | \u2014 | 4 | (15) | |
Net interest income/(cost) on the net defined benefit asset/ (liability) | 1,247 | 298 | (925) | (286) | \u2014 | \u2014 | 322 | 12 |
Remeasurement effects recognised in other comprehensive income | (225) | 110 | 7 | (300) | \u2014 | \u2014 | (218) | (190) |
\u2013\u00a0 return on plan assets (excluding interest income) | (225) | 110 | \u2014 | \u2014 | \u2014 | \u2014 | (225) | 110 |
\u2013\u00a0 actuarial gains/(losses) financial assumptions | \u2014 | \u2014 | (123) | (327) | \u2014 | \u2014 | (123) | (327) |
\u2013\u00a0 actuarial gains/(losses) demographic assumptions | \u2014 | \u2014 | 357 | 17 | \u2014 | \u2014 | 357 | 17 |
\u2013\u00a0 actuarial gains/(losses) experience adjustments | \u2014 | \u2014 | (227) | 10 | \u2014 | \u2014 | (227) | 10 |
\u2013\u00a0 other changes | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Exchange differences | 1,472 | 228 | (1,098) | (190) | \u2014 | \u2014 | 374 | 38 |
Benefits paid | (1,063) | (548) | 1,063 | 629 | \u2014 | \u2014 | \u2014 | 81 |
Other movements2 | 38 | 169 | (32) | (26) | \u2014 | \u2014 | 6 | 143 |
At 31 Dec 2023 | 26,590 | 7,307 | (19,782) | (7,229) | \u2014 | \u2014 | 6,808 | 78 |
At 1 Jan 2022 | 41,384 | 10,047 | (32,255) | (10,022) | \u2014 | (23) | 9,129 | 2 |
Service cost | \u2014 | \u2014 | (30) | (170) | \u2014 | \u2014 | (30) | (170) |
\u2013\u00a0 current service cost | \u2014 | \u2014 | (12) | (161) | \u2014 | \u2014 | (12) | (161) |
\u2013\u00a0 past service cost and losses from\u00a0settlements | \u2014 | \u2014 | (18) | (9) | \u2014 | \u2014 | (18) | (9) |
Net interest income/(cost) on the net defined benefit asset/ (liability) | 703 | 198 | (546) | (202) | \u2014 | (1) | 157 | (5) |
Remeasurement effects recognised in other comprehensive income | (11,505) | (2,181) | 9,532 | 2,360 | \u2014 | (3) | (1,973) | 176 |
\u2013\u00a0 return on plan assets (excluding interest income) | (11,505) | (2,181) | \u2014 | \u2014 | \u2014 | \u2014 | (11,505) | (2,181) |
\u2013\u00a0 actuarial gains/(losses) financial assumptions | \u2014 | \u2014 | 10,543 | 2,383 | \u2014 | \u2014 | 10,543 | 2,383 |
\u2013\u00a0 actuarial gains/(losses) demographic assumptions | \u2014 | \u2014 | (123) | 24 | \u2014 | \u2014 | (123) | 24 |
\u2013\u00a0 actuarial gains/(losses) experience adjustments | \u2014 | \u2014 | (888) | (47) | \u2014 | \u2014 | (888) | (47) |
\u2013\u00a0 other changes | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (3) | \u2014 | (3) |
Exchange differences | (4,288) | (180) | 3,325 | 35 | \u2014 | 2 | (963) | (143) |
Benefits paid | (1,222) | (616) | 1,222 | 686 | \u2014 | \u2014 | \u2014 | 70 |
Other movements2 | 49 | (218) | (35) | 407 | \u2014 | 25 | 14 | 214 |
At 31 Dec 2022 | 25,121 | 7,050 | (18,787) | (6,906) | \u2014 | \u2014 | 6,334 | 144 |
6 | Auditor\u2019s remuneration |
2023 | 2022 | 2021 | |
$m | $m | $m | |
Audit fees payable to PwC1 | 109.8 | 97.6 | 88.1 |
Other audit fees payable | 2.2 | 1.6 | 2.0 |
Year ended 31 Dec | 112.0 | 99.2 | 90.1 |
Fees payable by HSBC to PwC | |||
2023 | 2022 | 2021 | |
$m | $m | $m | |
Fees for HSBC Holdings\u2019 statutory audit2 | 24.1 | 21.9 | 19.5 |
Fees for other services provided to HSBC | 131.8 | 126.2 | 109.9 |
\u2013\u00a0 audit of HSBC\u2019s subsidiaries | 85.7 | 75.7 | 68.6 |
\u2013\u00a0 audit-related assurance services3 | 26.0 | 26.4 | 18.7 |
\u2013\u00a0 other assurance services4,5 | 20.1 | 24.1 | 22.6 |
Year ended 31 Dec | 155.9 | 148.1 | 129.4 |
Fees payable by HSBC\u2019s associated pension schemes to PwC | ||||
2023 | 2022 | 2021 | ||
$000 | $000 | $000 | ||
Audit of HSBC\u2019s associated pension schemes | 297 | 480 | 382 | |
Year ended 31 Dec | 297 | 480 | 382 |
7 | Tax |
Tax expense | |||
2023 | 2022 | 2021 | |
$m | $m | $m | |
Current tax1 | 5,718 | 2,984 | 3,250 |
\u2013\u00a0 for this year | 5,737 | 3,264 | 3,182 |
\u2013\u00a0 adjustments in respect of prior years | (19) | (280) | 68 |
Deferred tax | 71 | (2,175) | 963 |
\u2013\u00a0 origination and reversal of temporary differences | 19 | (2,278) | 874 |
\u2013\u00a0 effect of changes in tax rates | 17 | (293) | 132 |
\u2013\u00a0 adjustments in respect of prior years | 35 | 396 | (43) |
Year ended 31 Dec2 | 5,789 | 809 | 4,213 |
2023 | 2022 | 2021 | ||||
$m | % | $m | % | $m | % | |
Profit before tax | 30,348 | 17,058 | 18,906 | |||
Tax expense | ||||||
Taxation at UK corporation tax rate of 23.5% (2022: 19.0%, 2021: 19.0%) | 7,132 | 23.5 | 3,241 | 19.0 | 3,592 | 19.0 |
Impact of differently taxed overseas profits in overseas locations | (612) | (2.0) | 459 | 2.7 | 280 | 1.5 |
UK banking surcharge | 350 | 1.2 | 283 | 1.7 | 332 | 1.8 |
Items increasing tax charge in 2023: | ||||||
\u2013\u00a0 impairment of interest in associate | 705 | 2.3 | \u2014 | \u2014 | \u2014 | \u2014 |
\u2013\u00a0 local taxes and overseas withholding taxes | 419 | 1.4 | 346 | 2.0 | 360 | 1.9 |
\u2013\u00a0 impacts of hyperinflation | 348 | 1.1 | 171 | 1.0 | 68 | 0.4 |
\u2013\u00a0 other permanent disallowables | 227 | 0.7 | 363 | 2.1 | 414 | 2.2 |
\u2013\u00a0 bank levy | 112 | 0.4 | 59 | 0.3 | 93 | 0.5 |
\u2013\u00a0 impact of changes in tax rates | 17 | 0.1 | (293) | (1.7) | 132 | 0.7 |
\u2013\u00a0 adjustments in respect of prior period | 16 | 0.1 | 116 | 0.7 | 25 | 0.1 |
\u2013\u00a0 tax impact of sale of French retail banking business | \u2014 | \u2014 | 115 | 0.7 | (434) | (2.3) |
\u2013\u00a0 impact of differences between French tax basis and IFRSs | \u2014 | \u2014 | \u2014 | \u2014 | 434 | 2.3 |
Items reducing tax charge in 2023: | ||||||
\u2013\u00a0 non-taxable income and gains | (1,189) | (3.9) | (825) | (4.8) | (641) | (3.4) |
\u2013\u00a0 effect of profits in associates and joint ventures | (571) | (1.9) | (504) | (3.1) | (414) | (2.2) |
\u2013\u00a0 movements in provisions for uncertain tax positions | (472) | (1.6) | 27 | 0.2 | 15 | 0.1 |
\u2013\u00a0 accounting gain on acquisition of SVB UK | (442) | (1.5) | \u2014 | \u2014 | \u2014 | \u2014 |
\u2013\u00a0 deductions for AT1 coupon payments | (229) | (0.7) | (246) | (1.4) | (270) | (1.4) |
\u2013\u00a0 movements in unrecognised deferred tax | (22) | (0.1) | (2,503) | (14.7) | 227 | 1.1 |
Year ended 31 December | 5,789 | 19.1 | 809 | 4.7 | 4,213 | 22.3 |
Movement of deferred tax assets and liabilities | |||||||
Loan impairment provisions | Unused tax losses and tax credits | Financial assets at FVOCI | Cash flow hedges | Retirement obligations | Other | Total | |
$m | $m | $m | $m | $m | $m | $m | |
Assets | 1,062 | 4,397 | 850 | 1,271 | \u2014 | 3,048 | 10,628 |
Liabilities | \u2014 | \u2014 | \u2014 | \u2014 | (1,673) | (1,567) | (3,240) |
At 1 Jan 2023 | 1,062 | 4,397 | 850 | 1,271 | (1,673) | 1,481 | 7,388 |
Income statement | (39) | 102 | 541 | 1 | (114) | (562) | (71) |
Other comprehensive income | \u2014 | \u2014 | (598) | (974) | 99 | 399 | (1,074) |
Foreign exchange and other adjustments | 135 | 45 | 83 | 121 | (126) | 15 | 273 |
At 31 Dec 2023 | 1,158 | 4,544 | 876 | 419 | (1,814) | 1,333 | 6,516 |
Assets1 | 1,158 | 4,544 | 876 | 419 | \u2014 | 2,933 | 9,930 |
Liabilities1 | \u2014 | \u2014 | \u2014 | \u2014 | (1,814) | (1,600) | (3,414) |
Assets2 | 1,151 | 2,001 | 382 | 154 | \u2014 | 1,744 | 5,432 |
Liabilities2 | \u2014 | \u2014 | \u2014 | \u2014 | (2,819) | (475) | (3,294) |
At 1 Jan 2022 | 1,151 | 2,001 | 382 | 154 | (2,819) | 1,269 | 2,138 |
Income statement | 7 | 2,425 | (1,127) | 1 | 217 | 652 | 2,175 |
Other comprehensive income | \u2014 | \u2014 | 2,281 | 1,159 | 692 | (1,260) | 2,872 |
Foreign exchange and other adjustments | (96) | (29) | (686) | (43) | 237 | 820 | 203 |
At 31 Dec 2022 | 1,062 | 4,397 | 850 | 1,271 | (1,673) | 1,481 | 7,388 |
Assets1 | 1,062 | 4,397 | 850 | 1,271 | \u2014 | 3,048 | 10,628 |
Liabilities1 | \u2014 | \u2014 | \u2014 | \u2014 | (1,673) | (1,567) | (3,240) |
Movement of deferred tax assets and liabilities | |||||||
Loan impairment provisions | Unused tax losses and tax credits | Financial assets at FVOCI | Cash flow hedges | Retirement obligations | Other | Total | |
$m | $m | $m | $m | $m | $m | $m | |
Assets | 1,062 | 4,397 | 850 | 1,271 | \u2014 | 3,048 | 10,628 |
Liabilities | \u2014 | \u2014 | \u2014 | \u2014 | (1,673) | (1,567) | (3,240) |
At 1 Jan 2023 | 1,062 | 4,397 | 850 | 1,271 | (1,673) | 1,481 | 7,388 |
Income statement | (39) | 102 | 541 | 1 | (114) | (562) | (71) |
Other comprehensive income | \u2014 | \u2014 | (598) | (974) | 99 | 399 | (1,074) |
Foreign exchange and other adjustments | 135 | 45 | 83 | 121 | (126) | 15 | 273 |
At 31 Dec 2023 | 1,158 | 4,544 | 876 | 419 | (1,814) | 1,333 | 6,516 |
Assets1 | 1,158 | 4,544 | 876 | 419 | \u2014 | 2,933 | 9,930 |
Liabilities1 | \u2014 | \u2014 | \u2014 | \u2014 | (1,814) | (1,600) | (3,414) |
Assets2 | 1,151 | 2,001 | 382 | 154 | \u2014 | 1,744 | 5,432 |
Liabilities2 | \u2014 | \u2014 | \u2014 | \u2014 | (2,819) | (475) | (3,294) |
At 1 Jan 2022 | 1,151 | 2,001 | 382 | 154 | (2,819) | 1,269 | 2,138 |
Income statement | 7 | 2,425 | (1,127) | 1 | 217 | 652 | 2,175 |
Other comprehensive income | \u2014 | \u2014 | 2,281 | 1,159 | 692 | (1,260) | 2,872 |
Foreign exchange and other adjustments | (96) | (29) | (686) | (43) | 237 | 820 | 203 |
At 31 Dec 2022 | 1,062 | 4,397 | 850 | 1,271 | (1,673) | 1,481 | 7,388 |
Assets1 | 1,062 | 4,397 | 850 | 1,271 | \u2014 | 3,048 | 10,628 |
Liabilities1 | \u2014 | \u2014 | \u2014 | \u2014 | (1,673) | (1,567) | (3,240) |
8 | Dividends |
Dividends to shareholders of the parent company | ||||||
2023 | 2022 | 2021 | ||||
Per share | Total | Per share | Total | Per share | Total | |
$ | $m | $ | $m | $ | $m | |
Dividends paid on ordinary shares | ||||||
In respect of previous year: | ||||||
\u2013\u00a0 second interim dividend | 0.23 | 4,589 | 0.18 | 3,576 | 0.15 | 3,059 |
In respect of current year: | ||||||
\u2013\u00a0 first interim dividend | 0.10 | 2,001 | 0.09 | 1,754 | 0.07 | 1,421 |
\u2013\u00a0 second interim dividend | 0.10 | 1,956 | \u2014 | \u2014 | \u2014 | \u2014 |
\u2013\u00a0 third interim dividend | 0.10 | 1,946 | \u2014 | \u2014 | \u2014 | \u2014 |
Total | 0.53 | 10,492 | 0.27 | 5,330 | 0.22 | 4,480 |
Total dividends on preference shares classified as equity (paid quarterly)1 | \u2014 | \u2014 | \u2014 | \u2014 | 4.99 | 7 |
Total coupons on capital securities classified as equity | 1,101 | 1,214 | 1,303 | |||
Dividends to shareholders | 11,593 | 6,544 | 5,790 |
Total coupons on capital securities classified as equity | |||||
2023 | 2022 | 2021 | |||
Total | Total | Total | |||
First call date | Per security | $m | $m | $m | |
Perpetual subordinated contingent convertible securities1 | |||||
$2,000m issued at 6.875%2 | Jun 2021 | $68.750 | \u2014 | \u2014 | 69 |
$2,250m issued at 6.375% | Sep 2024 | $63.750 | 143 | 143 | 143 |
$2,450m issued at 6.375% | Mar 2025 | $63.750 | 156 | 156 | 156 |
$3,000m issued at 6.000% | May 2027 | $60.000 | 180 | 180 | 180 |
$2,350m issued at 6.250%3 | Mar 2023 | $62.500 | 52 | 147 | 147 |
$1,800m issued at 6.500% | Mar 2028 | $65.000 | 117 | 117 | 117 |
$1,500m issued at 4.600% | Dec 2030 | $46.000 | 69 | 69 | 69 |
$1,000m issued at 4.000%4 | Mar 2026 | $40.000 | 40 | 40 | 20 |
$1,000m issued at 4.700%5 | Mar 2031 | $47.000 | 47 | 47 | 24 |
$2,000m issued at 8.000%6 | Mar 2028 | $80.000 | 80 | \u2014 | \u2014 |
\u20ac1,500m issued at 5.250%7 | Sep 2022 | \u20ac52.500 | \u2014 | 76 | 93 |
\u20ac1,000m issued at 6.000%8 | Sep 2023 | \u20ac60.000 | 56 | 63 | 70 |
\u20ac1,250m issued at 4.750% | Jul 2029 | \u20ac47.500 | 64 | 65 | 72 |
\u00a31,000m issued at 5.875% | Sep 2026 | \u00a358.750 | 72 | 70 | 80 |
SGD1,000m issued at 4.700%9 | Jun 2022 | SGD47.000 | \u2014 | 14 | 35 |
SGD750m issued at 5.000%10 | Sep 2023 | SGD50.000 | 25 | 27 | 28 |
Total | 1,101 | 1,214 | 1,303 |
9 | Earnings per share |
Basic and diluted earnings per share | |||||||||
2023 | 2022\u00b9 | 2021 | |||||||
Profit | Number of shares | Per share | Profit | Number of shares | Per share | Profit | Number of shares | Per share | |
$m | (millions) | $ | $m | (millions) | $ | $m | (millions) | $ | |
Basic2 | 22,432 | 19,478 | 1.15 | 14,346 | 19,849 | 0.72 | 12,607 | 20,197 | 0.62 |
Effect of dilutive potential ordinary shares | 122 | 137 | 105 | ||||||
Diluted2 | 22,432 | 19,600 | 1.14 | 14,346 | 19,986 | 0.72 | 12,607 | 20,302 | 0.62 |
10 | Segmental analysis |
HSBC constant currency profit before tax and balance sheet data | |||||
2023 | |||||
Wealth and Personal Banking | Commercial Banking3 | Global Banking and Markets3 | Corporate Centre | Total | |
$m | $m | $m | $m | $m | |
Net operating income/(expense) before change in expected credit losses and other credit impairment charges2 | 27,275 | 22,867 | 16,115 | (199) | 66,058 |
\u2013\u00a0 external | 19,107 | 24,209 | 28,021 | (5,279) | 66,058 |
\u2013\u00a0 inter-segment | 8,168 | (1,342) | (11,906) | 5,080 | \u2014 |
\u2013\u00a0 of which: net interest income/(expense)4 | 20,492 | 17,147 | 7,141 | (8,984) | 35,796 |
Change in expected credit losses and other credit impairment charges | (1,058) | (2,062) | (326) | (1) | (3,447) |
Net operating income/(expense) | 26,217 | 20,805 | 15,789 | (200) | 62,611 |
Total operating expenses | (14,738) | (7,524) | (9,865) | 57 | (32,070) |
Operating profit/(loss) | 11,479 | 13,281 | 5,924 | (143) | 30,541 |
Share of profit/(loss) in associates and joint ventures less impairment5 | 65 | (1) | \u2014 | (257) | (193) |
Constant currency profit before tax | 11,544 | 13,280 | 5,924 | (400) | 30,348 |
% | % | % | % | % | |
Share of HSBC\u2019s constant currency profit before tax | 38.0 | 43.8 | 19.5 | (1.3) | 100.0 |
Constant currency cost efficiency ratio | 54.0 | 32.9 | 61.2 | 28.6 | 48.5 |
Constant currency balance sheet data | $m | $m | $m | $m | $m |
Loans and advances to customers (net) | 454,878 | 309,422 | 173,966 | 269 | 938,535 |
Interests in associates and joint ventures | 551 | 28 | 111 | 26,654 | 27,344 |
Total external assets | 937,079 | 632,406 | 1,331,395 | 137,797 | 3,038,677 |
Customer accounts | 804,863 | 475,666 | 330,522 | 596 | 1,611,647 |
2022\u00b9 | |||||
Net operating income/(expense) before change in expected credit losses and other credit impairment charges2 | 20,884 | 16,283 | 14,602 | (1,898) | 49,871 |
\u2013\u00a0 external | 18,299 | 16,973 | 18,744 | (4,145) | 49,871 |
\u2013\u00a0 inter-segment | 2,585 | (690) | (4,142) | 2,247 | \u2014 |
\u2013\u00a0 of which: net interest income/(expense)4 | 15,971 | 11,763 | 4,696 | (2,668) | 29,762 |
Change in expected credit losses and other credit impairment charges | (1,186) | (1,862) | (573) | (9) | (3,630) |
Net operating income/(expense) | 19,698 | 14,421 | 14,029 | (1,907) | 46,241 |
Total operating expenses | (14,248) | (6,894) | (9,338) | (1,822) | (32,302) |
Operating profit/(loss) | 5,450 | 7,527 | 4,691 | (3,729) | 13,939 |
Share of profit/(loss) in associates and joint ventures | 30 | \u2014 | (2) | 2,574 | 2,602 |
Constant currency profit/(loss) before tax | 5,480 | 7,527 | 4,689 | (1,155) | 16,541 |
% | % | % | % | % | |
Share of HSBC\u2019s constant currency profit before tax | 33.1 | 45.6 | 28.3 | (7.0) | 100.0 |
Constant currency cost efficiency ratio | 68.2 | 42.3 | 64.0 | (96.0) | 64.8 |
Constant currency balance sheet data | $m | $m | $m | $m | $m |
Loans and advances to customers (net) | 434,122 | 316,863 | 190,202 | 361 | 941,548 |
Interests in associates and joint ventures | 514 | 33 | 93 | 28,143 | 28,783 |
Total external assets | 893,867 | 620,193 | 1,341,575 | 152,049 | 3,007,684 |
Customer accounts | 793,310 | 472,424 | 332,303 | 458 | 1,598,495 |
HSBC constant currency profit before tax and balance sheet data (continued) | |||||
2021 | |||||
Wealth and Personal Banking | Commercial Banking | Global Banking and Markets | Corporate Centre | Total | |
$m | $m | $m | $m | $m | |
Net operating income/(expense) before change in expected credit losses and other credit impairment charges2 | 20,972 | 12,699 | 13,086 | (678) | 46,079 |
\u2013\u00a0 external | 20,787 | 12,685 | 14,533 | (1,926) | 46,079 |
\u2013\u00a0 inter-segment | 185 | 14 | (1,447) | 1,248 | \u2014 |
\u2013\u00a0 of which: net interest income/(expense)4 | 13,445 | 8,467 | 3,419 | (714) | 24,617 |
Change in expected credit losses and other credit impairment charges | 195 | 339 | 221 | 3 | 758 |
Net operating income/(expense) | 21,167 | 13,038 | 13,307 | (675) | 46,837 |
Total operating expenses | (15,338) | (6,691) | (9,255) | (960) | (32,244) |
Operating profit/(loss) | 5,829 | 6,347 | 4,052 | (1,635) | 14,593 |
Share of profit in associates and joint ventures | 36 | 1 | \u2014 | 2,770 | 2,807 |
Constant currency profit/(loss) before tax | 5,865 | 6,348 | 4,052 | 1,135 | 17,400 |
% | % | % | % | % | |
Share of HSBC\u2019s constant currency profit before tax | 33.7 | 36.5 | 23.3 | 6.5 | 100.0 |
Constant currency cost efficiency ratio | 73.1 | 52.7 | 70.7 | (141.6) | 70.0 |
Constant currency balance sheet data | $m | $m | $m | $m | $m |
Loans and advances to customers (net) | 473,304 | 340,603 | 196,193 | 712 | 1,010,812 |
Interests in associates and joint ventures | 493 | 31 | 101 | 27,036 | 27,661 |
Total external assets | 905,024 | 605,696 | 1,171,909 | 178,074 | 2,860,703 |
Customer accounts | 834,767 | 495,492 | 322,306 | 622 | 1,653,187 |
2023 | 2022\u00b9 | 2021 | |
$m | $m | $m | |
Reported external net operating income/(expense) by country/territory2 | 66,058 | 50,620 | 49,552 |
\u2013\u00a0 UK | 11,027 | 11,710 | 10,909 |
\u2013\u00a0 Hong Kong | 20,185 | 15,454 | 14,245 |
\u2013\u00a0 US | 3,816 | 3,893 | 3,795 |
\u2013\u00a0 France | 4,208 | (177) | 2,179 |
\u2013\u00a0 other countries/territories | 26,822 | 19,740 | 18,424 |
Constant currency results reconciliation | |||||||
2023 | 2022\u00b9 | 2021 | |||||
Reported and constant currency | Constant currency | Currency translation | Reported | Constant currency | Currency translation | Reported | |
$m | $m | $m | $m | $m | $m | $m | |
Revenue2 | 66,058 | 49,871 | (749) | 50,620 | 46,079 | (3,473) | 49,552 |
ECL | (3,447) | (3,630) | (46) | (3,584) | 758 | (170) | 928 |
Operating expenses | (32,070) | (32,302) | 399 | (32,701) | (32,244) | 2,376 | (34,620) |
Share of profit in associates and joint ventures less impairment3 | (193) | 2,602 | (121) | 2,723 | 2,807 | (239) | 3,046 |
Profit before tax | 30,348 | 16,541 | (517) | 17,058 | 17,400 | (1,506) | 18,906 |
Constant currency balance sheet reconciliation | |||||||
2023 | 2022\u00b9 | 2021 | |||||
Reported and constant currency | Constant currency | Currency translation | Reported | Constant currency | Currency translation | Reported | |
$m | $m | $m | $m | $m | $m | $m | |
Loans and advances to customers (net) | 938,535 | 941,548 | (17,987) | 923,561 | 1,010,812 | 35,002 | 1,045,814 |
Interests in associates and joint ventures | 27,344 | 28,783 | 471 | 29,254 | 27,661 | 1,948 | 29,609 |
Total external assets | 3,038,677 | 3,007,684 | (58,398) | 2,949,286 | 2,860,703 | 97,236 | 2,957,939 |
Customer accounts | 1,611,647 | 1,598,495 | (28,192) | 1,570,303 | 1,653,187 | 57,387 | 1,710,574 |
Notable items | |||
2023 | 2022 | 2021 | |
$m | $m | $m | |
Year ended 31 Dec | |||
Notable items | |||
Revenue | |||
Disposals, acquisitions and related costs1,2 | 1,298 | (2,737) | \u2014 |
Fair value movements on financial instruments3 | 14 | (618) | (221) |
Restructuring and other related costs | \u2014 | (247) | (307) |
Disposal losses on Markets Treasury repositioning | (977) | \u2014 | \u2014 |
Operating expenses | |||
Disposals, acquisitions and related costs | (321) | (18) | \u2014 |
Impairment of non-financial items | \u2014 | \u2014 | (587) |
Restructuring and other related costs4 | 136 | (2,882) | (1,836) |
Impairment of interests in associates5 | (3,000) | \u2014 | \u2014 |
11 | Trading assets |
2023 | 2022 | |
$m | $m | |
Treasury and other eligible bills | 24,433 | 22,897 |
Debt securities | 106,108 | 78,126 |
Equity securities | 123,663 | 88,026 |
Trading securities | 254,204 | 189,049 |
Loans and advances to banks1 | 9,761 | 8,769 |
Loans and advances to customers1 | 25,194 | 20,275 |
Year ended 31 Dec | 289,159 | 218,093 |
11 | Trading assets |
2023 | 2022 | |
$m | $m | |
Treasury and other eligible bills | 24,433 | 22,897 |
Debt securities | 106,108 | 78,126 |
Equity securities | 123,663 | 88,026 |
Trading securities | 254,204 | 189,049 |
Loans and advances to banks1 | 9,761 | 8,769 |
Loans and advances to customers1 | 25,194 | 20,275 |
Year ended 31 Dec | 289,159 | 218,093 |
12 | Fair values of financial instruments carried at fair value |
Financial instruments carried at fair value and bases of valuation | ||||||||
2023 | 20221 | |||||||
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 | 202,020 | 82,833 | 4,306 | 289,159 | 148,592 | 64,684 | 4,817 | 218,093 |
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | 27,030 | 63,825 | 19,788 | 110,643 | 23,146 | 59,548 | 17,407 | 100,101 |
Derivatives | 931 | 226,714 | 2,069 | 229,714 | 2,917 | 279,278 | 1,964 | 284,159 |
Financial investments | 215,228 | 76,591 | 2,618 | 294,437 | 181,659 | 71,040 | 2,961 | 255,660 |
Liabilities | ||||||||
Trading liabilities | 53,354 | 19,318 | 478 | 73,150 | 44,787 | 27,092 | 474 | 72,353 |
Financial liabilities designated at fair value | 1,266 | 129,232 | 10,928 | 141,426 | 1,125 | 115,764 | 10,432 | 127,321 |
Derivatives | 1,918 | 230,285 | 2,569 | 234,772 | 2,399 | 280,443 | 2,920 | 285,762 |
Financial instruments carried at fair value and bases of valuation \u2013 assets and liabilities held for sale | ||||||||
2023 | 2022 | |||||||
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 | 2,403 | 61 | \u2014 | 2,465 | 2,932 | 244 | \u2014 | 3,176 |
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | \u2014 | 15 | 49 | 64 | \u2014 | 14 | 47 | 61 |
Derivatives | \u2014 | 528 | \u2014 | 528 | \u2014 | 866 | \u2014 | 866 |
Financial investments | 9,357 | \u2014 | 28 | 9,385 | 11,184 | \u2014 | \u2014 | 11,184 |
Liabilities | ||||||||
Trading liabilities | 1,352 | 64 | \u2014 | 1,417 | 2,572 | 182 | \u2014 | 2,754 |
Financial liabilities designated at fair value | \u2014 | 2,370 | \u2014 | 2,370 | \u2014 | 3,523 | \u2014 | 3,523 |
Derivatives | \u2014 | 615 | \u2014 | 615 | \u2014 | 813 | \u2014 | 813 |
Transfers between Level 1 and Level 2 fair values | |||||||
Assets | Liabilities | ||||||
Financial investments | Trading assets | Designated and otherwise mandatorily measured at fair value | Derivatives | Trading liabilities | Designated at fair value | Derivatives | |
$m | $m | $m | $m | $m | $m | $m | |
At 31 Dec 2023 | |||||||
Transfers from Level 1 to Level 2 | 13,200 | 8,066 | 1,709 | \u2014 | 54 | \u2014 | \u2014 |
Transfers from Level 2 to Level 1 | 9,975 | 5,758 | 2,477 | \u2014 | 309 | \u2014 | \u2014 |
At 31 Dec 2022 | |||||||
Transfers from Level 1 to Level 2 | 4,721 | 5,284 | 2,565 | \u2014 | 113 | \u2014 | \u2014 |
Transfers from Level 2 to Level 1 | 8,208 | 5,964 | 3,340 | \u2014 | 233 | \u2014 | \u2014 |
Global Banking and Markets fair value adjustments | ||||
2023 | 2022 | |||
GBM | Corporate Centre | GBM | Corporate Centre | |
$m | $m | $m | $m | |
Type of adjustment | ||||
Risk-related | 692 | 41 | 650 | 40 |
\u2013\u00a0 bid-offer | 414 | \u2014 | 426 | \u2014 |
\u2013\u00a0 uncertainty | 75 | 3 | 86 | \u2014 |
\u2013\u00a0 credit valuation adjustment | 164 | 35 | 245 | 35 |
\u2013\u00a0 debit valuation adjustment | (54) | \u2014 | (175) | \u2014 |
\u2013\u00a0 funding fair value adjustment | 93 | 3 | 68 | 5 |
Model-related | 63 | \u2014 | 61 | \u2014 |
\u2013\u00a0 model limitation | 63 | \u2014 | 61 | \u2014 |
Inception profit (Day 1 P&L reserves) | 86 | \u2014 | 97 | \u2014 |
At 31 Dec | 841 | 41 | 808 | 40 |
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 | 507 | 7 | 17,640 | \u2014 | 18,154 | \u2014 | 1 | \u2014 | 1 |
Asset-backed securities | 309 | 128 | 8 | \u2014 | 445 | \u2014 | \u2014 | \u2014 | \u2014 |
Structured notes | \u2014 | \u2014 | 3 | \u2014 | 3 | \u2014 | 10,331 | \u2014 | 10,331 |
Other derivatives | \u2014 | \u2014 | \u2014 | 2,069 | 2,069 | \u2014 | \u2014 | 2,569 | 2,569 |
Other portfolios | 1,802 | 4,171 | 2,137 | \u2014 | 8,110 | 478 | 596 | \u2014 | 1,074 |
At 31 Dec 2023 | 2,618 | 4,306 | 19,788 | 2,069 | 28,781 | 478 | 10,928 | 2,569 | 13,975 |
Private equity including strategic investments | 647 | 19 | 15,653 | \u2014 | 16,319 | 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 | 1,876 | 4,590 | 1,659 | \u2014 | 8,125 | 382 | \u2014 | \u2014 | 382 |
At 31 Dec 2022 | 2,961 | 4,817 | 17,407 | 1,964 | 27,149 | 474 | 10,432 | 2,920 | 13,826 |
Movement in Level 3 financial instruments | |||||||
Assets | Liabilities | ||||||
Financial investments | Trading assets | Designated and otherwise mandatorily measured at fair value through profit or loss | Derivatives | Trading liabilities | Designated at fair value | Derivatives | |
$m | $m | $m | $m | $m | $m | $m | |
At 1 Jan 2023 | 2,961 | 4,817 | 17,407 | 1,964 | 474 | 10,432 | 2,920 |
Total gains/(losses) recognised in profit or\u00a0loss | (44) | 266 | 921 | 692 | 75 | 97 | 910 |
\u2013\u00a0 net income/(losses) from financial instruments held for trading or managed on a fair value basis | \u2014 | 266 | \u2014 | 692 | 75 | 97 | 910 |
\u2013\u00a0 changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | \u2014 | \u2014 | 921 | \u2014 | \u2014 | \u2014 | \u2014 |
\u2013\u00a0 gains less losses from financial investments at fair value through other comprehensive income | (44) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Total gains/(losses) recognised in other comprehensive income (\u2018OCI\u2019)1 | 28 | 108 | 87 | 81 | 24 | 523 | 111 |
\u2013\u00a0 financial investments: fair value gains/(losses) | (44) | \u2014 | \u2014 | \u2014 | \u2014 | 335 | \u2014 |
\u2013\u00a0 exchange differences | 72 | 108 | 87 | 81 | 24 | 188 | 111 |
Purchases | 353 | 2,276 | 3,555 | \u2014 | 291 | \u2014 | \u2014 |
New issuances | \u2014 | 2 | \u2014 | \u2014 | 2 | 5,389 | \u2014 |
Sales | (290) | (2,478) | (658) | \u2014 | (320) | (2) | \u2014 |
Settlements | (352) | (872) | (1,886) | (1,018) | (74) | (3,258) | (1,565) |
Transfers out | (662) | (922) | (156) | (240) | (45) | (2,881) | (358) |
Transfers in | 624 | 1,109 | 518 | 590 | 51 | 628 | 551 |
At 31 Dec 2023 | 2,618 | 4,306 | 19,788 | 2,069 | 478 | 10,928 | 2,569 |
Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 31\u00a0Dec 2023 | \u2014 | (152) | 82 | 737 | \u2014 | (433) | (903) |
\u2013\u00a0 net income/(losses) from financial instruments held for trading or managed on a fair value basis | \u2014 | (152) | \u2014 | 737 | \u2014 | \u2014 | (903) |
\u2013\u00a0 changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | \u2014 | \u2014 | 82 | \u2014 | \u2014 | (433) | \u2014 |
At 1 Jan 2022 | 3,389 | 2,662 | 14,238 | 2,478 | 785 | 7,880 | 3,088 |
IFRS 17 impacts | (12) | \u2014 | 1,468 | \u2014 | \u2014 | \u2014 | \u2014 |
At 1 Jan 2022 (as restated) | 3,377 | 2,662 | 15,706 | 2,478 | 785 | 7,880 | 3,088 |
Total gains/(losses) recognised in profit or\u00a0loss | (4) | (245) | 132 | 390 | (52) | (1,334) | 1,014 |
\u2013\u00a0 net income/(losses) from financial instruments held for trading or managed on a fair value basis | \u2014 | (245) | \u2014 | 390 | (52) | \u2014 | 1,014 |
\u2013\u00a0 changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | \u2014 | \u2014 | 132 | \u2014 | \u2014 | (1,334) | \u2014 |
\u2013\u00a0 gains less losses from financial investments at fair value through other comprehensive income | (4) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Total gains/(losses) recognised in other comprehensive income (\u2018OCI\u2019)1 | (325) | (137) | (217) | (219) | (11) | (345) | (226) |
\u2013\u00a0 financial investments: fair value gains/(losses) | (202) | \u2014 | \u2014 | \u2014 | \u2014 | 82 | \u2014 |
\u2013\u00a0 exchange differences | (123) | (137) | (217) | (219) | (11) | (427) | (226) |
Purchases | 1,048 | 3,436 | 4,410 | \u2014 | 178 | \u2014 | \u2014 |
New issuances | 1 | \u2014 | \u2014 | \u2014 | 8 | 4,183 | \u2014 |
Sales | (240) | (1,102) | (801) | \u2014 | (152) | (94) | \u2014 |
Settlements | (464) | (1,273) | (1,883) | (918) | (644) | 182 | (993) |
Transfers out | (489) | (442) | (76) | (409) | (18) | (1,296) | (632) |
Transfers in | 57 | 1,918 | 136 | 642 | 380 | 1,256 | 669 |
At 31 Dec 2022 | 2,961 | 4,817 | 17,407 | 1,964 | 474 | 10,432 | 2,920 |
Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 31\u00a0Dec 2022 | \u2014 | (100) | (158) | 707 | 2 | 100 | 2,779 |
\u2013\u00a0 net income/(losses) from financial instruments held for trading or managed on a fair value basis | \u2014 | (100) | \u2014 | 707 | 2 | \u2014 | 2,779 |
\u2013\u00a0 changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | \u2014 | \u2014 | (158) | \u2014 | \u2014 | 100 | \u2014 |
Sensitivity of fair values to reasonably possible alternative assumptions | ||||||||
2023 | 2022 | |||||||
Reflected in profit or loss | Reflected in OCI | Reflected in profit or loss | Reflected in OCI | |||||
Favourable changes | Un- favourable changes | Favourable changes | Un- favourable changes | Favourable changes | Un- favourable changes | Favourable changes | Un- favourable changes | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Derivatives, trading assets and trading liabilities1 | 492 | (531) | \u2014 | \u2014 | 264 | (291) | \u2014 | \u2014 |
Financial assets and liabilities designated and otherwise mandatorily measured at fair value through profit or loss | 1,092 | (1,100) | \u2014 | \u2014 | 981 | (978) | \u2014 | \u2014 |
Financial investments | 13 | (12) | 61 | (66) | 11 | (11) | 65 | (55) |
At 31 Dec | 1,597 | (1,643) | 61 | (66) | 1,256 | (1,280) | 65 | (55) |
Quantitative information about significant unobservable inputs in Level 3 valuations | ||||||||
Fair value | 2023 | 2022 | ||||||
Assets | Liabilities | Key valuation techniques | Key unobservable inputs | Full range of inputs | Full range of inputs | |||
$m | $m | Lower | Higher | Lower | Higher | |||
Private equity including strategic investments | 18,154 | 1 | See below | See below | ||||
Asset-backed securities | 445 | \u2014 | ||||||
\u2013\u00a0 collateralised loan/debt obligation | 44 | \u2014 | Market proxy | Bid quotes | \u2014 | 94 | \u2014 | 92 |
\u2013\u00a0 other ABSs | 401 | \u2014 | Market proxy | Bid quotes | \u2014 | 220 | \u2014 | 99 |
Structured notes | 3 | 10,331 | ||||||
\u2013\u00a0 equity-linked notes | 3 | 7,054 | Model \u2013 Option model | Equity volatility | 6% | 154% | 6% | 142% |
Model \u2013 Option model | Equity correlation | 34% | 100% | 32% | 99% | |||
\u2013\u00a0 Foreign exchange-linked notes | \u2014 | 1,733 | Model \u2013 Option model | Foreign exchange volatility | 1% | 34% | 3% | 37% |
\u2013\u00a0 other | \u2014 | 1,544 | ||||||
Derivatives | 2,069 | 2,569 | \u00a0 | \u00a0 | ||||
\u2013\u00a0 interest rate derivatives | 864 | 784 | \u00a0 | \u00a0 | ||||
\u00a0 securitisation swaps | 146 | 136 | Model \u2013 Discounted cash flow | Prepayment rate | 5% | 10% | 5% | 10% |
\u00a0 long-dated swaptions | 57 | 69 | Model \u2013 Option model | Interest rate volatility | 11% | 37% | 8% | 53% |
\u00a0 other | 661 | 579 | ||||||
\u2013\u00a0 Foreign exchange derivatives | 308 | 427 | ||||||
\u00a0 Foreign exchange options | 255 | 356 | Model \u2013 Option model | Foreign exchange volatility | 1% | 31% | 1% | 46% |
\u00a0 other | 53 | 71 | ||||||
\u2013\u00a0 equity derivatives | 600 | 981 | ||||||
\u00a0 long-dated single stock options | 391 | 609 | Model \u2013 Option model | Equity volatility | 6% | 110% | 7% | 153% |
\u00a0 other | 209 | 372 | ||||||
\u2013\u00a0 credit derivatives | 297 | 377 | ||||||
Other portfolios | 8,110 | 1,074 | ||||||
\u2013\u00a0 repurchase agreements | 1,090 | 310 | Model \u2013 Discounted cash flow | Interest rate curve | 3% | 8% | 1% | 9% |
\u2013\u00a0 bonds | 3,278 | 1 | Market proxy | Mid quotes | \u2014 | 101 | \u2014 | 102 |
\u2013\u00a0 other1 | 3,742 | 763 | ||||||
At 31 Dec 2023 | 28,781 | 13,975 |
Basis of valuing HSBC Holdings\u2019 financial assets and liabilities measured at fair value | ||
2023 | 2022 | |
$m | $m | |
Valuation technique using observable inputs: Level 2 | ||
Assets at 31 Dec | ||
\u2013\u00a0 derivatives | 3,344 | 3,801 |
\u2013\u00a0 designated and otherwise mandatorily measured at fair value through profit or loss | 59,879 | 52,322 |
Liabilities at 31 Dec | ||
\u2013\u00a0 designated at fair value | 43,638 | 32,123 |
\u2013\u00a0 derivatives | 6,090 | 6,922 |
13 | Fair values of financial instruments not carried at fair value |
Fair values of financial instruments not carried at fair value and bases of valuation | |||||
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 2023 | |||||
Assets | |||||
Loans and advances to banks | 112,902 | 2 | 111,263 | 1,479 | 112,744 |
Loans and advances to customers | 938,535 | \u2014 | 13,258 | 911,124 | 924,382 |
Reverse repurchase agreements \u2013 non-trading | 252,217 | \u2014 | 252,243 | \u2014 | 252,243 |
Financial investments \u2013 at amortised cost | 148,326 | 115,383 | 30,765 | 440 | 146,588 |
Liabilities | |||||
Deposits by banks | 73,163 | \u2014 | 73,176 | \u2014 | 73,176 |
Customer accounts | 1,611,647 | \u2014 | 1,611,795 | \u2014 | 1,611,795 |
Repurchase agreements \u2013 non-trading | 172,100 | \u2014 | 172,081 | \u2014 | 172,081 |
Debt securities in issue | 93,917 | \u2014 | 93,196 | 706 | 93,902 |
Subordinated liabilities | 24,954 | \u2014 | 27,151 | \u2014 | 27,151 |
At 31 Dec 20221 | |||||
Assets | |||||
Loans and advances to banks | 104,475 | 4 | 103,641 | 814 | 104,459 |
Loans and advances to customers | 923,561 | \u2014 | 8,791 | 903,107 | 911,898 |
Reverse repurchase agreements \u2013 non-trading | 253,754 | \u2014 | 253,668 | \u2014 | 253,668 |
Financial investments \u2013 at amortised cost | 109,066 | 84,087 | 21,850 | 475 | 106,412 |
Liabilities | |||||
Deposits by banks | 66,722 | \u2014 | 66,831 | \u2014 | 66,831 |
Customer accounts | 1,570,303 | \u2014 | 1,570,209 | \u2014 | 1,570,209 |
Repurchase agreements \u2013 non-trading | 127,747 | \u2014 | 127,500 | \u2014 | 127,500 |
Debt securities in issue | 78,149 | \u2014 | 76,640 | 381 | 77,021 |
Subordinated liabilities | 22,290 | \u2014 | 22,723 | \u2014 | 22,723 |
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 2023 | |||||
Assets | |||||
Loans and advances to banks | 10,487 | \u2014 | 10,487 | \u2014 | 10,487 |
Loans and advances to customers | 73,376 | \u2014 | 90 | 72,200 | 72,290 |
Reverse repurchase agreements \u2013 non-trading | 2,723 | \u2014 | 2,723 | \u2014 | 2,723 |
Financial investments \u2013 at amortised cost | 7,624 | 7,530 | \u2014 | 5 | 7,535 |
Liabilities | |||||
Deposits by banks | 78 | \u2014 | 78 | \u2014 | 78 |
Customer accounts | 85,950 | \u2014 | 86,475 | \u2014 | 86,475 |
Repurchase agreements \u2013 non-trading | 2,768 | \u2014 | 2,768 | \u2014 | 2,768 |
Debt securities in issue | 9,084 | \u2014 | 8,820 | \u2014 | 8,820 |
Subordinated liabilities | 8 | \u2014 | 7 | \u2014 | 7 |
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 |
Fair values of HSBC Holdings\u2019 financial instruments not carried at fair value on the balance sheet | ||||
2023 | 2022 | |||
Carrying amount | Fair value1 | Carrying amount | Fair value1 | |
$m | $m | $m | $m | |
Assets at 31 Dec | ||||
Loans and advances to HSBC undertakings | 27,354 | 27,878 | 26,765 | 26,962 |
Financial investments \u2013 at amortised cost | 19,558 | 19,531 | 19,466 | 19,314 |
Liabilities at 31 Dec | ||||
Debt securities in issue | 65,239 | 65,172 | 66,938 | 65,364 |
Subordinated liabilities | 24,439 | 26,651 | 19,727 | 20,644 |
14 | Financial assets designated and otherwise mandatorily measured at fair value through profit or loss |
2023 | 2022\u00b9 | |||||
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 | 2,353 | 101,152 | 103,505 | 3,096 | 91,936 | 95,032 |
\u2013\u00a0 treasury and other eligible bills | 695 | 724 | 1,419 | 649 | 869 | 1,518 |
\u2013\u00a0 debt securities | 1,658 | 60,045 | 61,703 | 2,447 | 56,633 | 59,080 |
\u2013\u00a0 equity securities | \u2014 | 40,383 | 40,383 | \u2014 | 34,434 | 34,434 |
Loans and advances to banks and customers | 371 | 5,495 | 5,866 | \u2014 | 3,455 | 3,455 |
Other | \u2014 | 1,272 | 1,272 | \u2014 | 1,614 | 1,614 |
At 31 Dec | 2,724 | 107,919 | 110,643 | 3,096 | 97,005 | 100,101 |
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 | 9,463,768 | 63,547 | 99,014 | 935 | 99,949 | 99,949 | 780 | 100,729 |
Interest rate | 14,853,397 | 361,312 | 223,534 | 5,119 | 228,653 | 225,443 | 4,080 | 229,523 |
Equities | 677,149 | \u2014 | 14,427 | \u2014 | 14,427 | 17,603 | \u2014 | 17,603 |
Credit | 153,606 | \u2014 | 1,351 | \u2014 | 1,351 | 1,861 | \u2014 | 1,861 |
Commodity and other | 90,007 | \u2014 | 1,820 | \u2014 | 1,820 | 1,542 | \u2014 | 1,542 |
Gross total fair values | 25,237,927 | 424,859 | 340,146 | 6,054 | 346,200 | 346,398 | 4,860 | 351,258 |
Offset (Note 31) | (116,486) | (116,486) | ||||||
At 31 Dec 2023 | 25,237,927 | 424,859 | 340,146 | 6,054 | 229,714 | 346,398 | 4,860 | 234,772 |
Foreign exchange | 8,434,453 | 38,924 | 122,206 | 525 | 122,731 | 123,088 | 166 | 123,254 |
Interest rate | 15,213,232 | 276,589 | 285,449 | 5,066 | 290,515 | 287,876 | 3,501 | 291,377 |
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 | 78,414 | \u2014 | 1,484 | \u2014 | 1,484 | 1,678 | \u2014 | 1,678 |
Gross total fair values | 24,480,504 | 315,513 | 419,555 | 5,591 | 425,146 | 423,082 | 3,667 | 426,749 |
Offset (Note 31) | (140,987) | (140,987) | ||||||
At 31 Dec 2022 | 24,480,504 | 315,513 | 419,555 | 5,591 | 284,159 | 423,082 | 3,667 | 285,762 |
Notional contract amounts and fair values of derivatives by product contract type held by HSBC Holdings with subsidiaries | ||||||||
Notional contract amount | Assets | Liabilities | ||||||
Trading | Hedging | Trading | Hedging | Total | Trading | Hedging | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Foreign exchange | 66,711 | \u2014 | 486 | \u2014 | 486 | 1,705 | \u2014 | 1,705 |
Interest rate | 33,480 | 92,268 | 1,730 | 1,128 | 2,858 | 747 | 3,638 | 4,385 |
At 31 Dec 2023 | 100,191 | 92,268 | 2,216 | 1,128 | 3,344 | 2,452 | 3,638 | 6,090 |
Foreign exchange | 60,630 | \u2014 | 502 | \u2014 | 502 | 1,683 | \u2014 | 1,683 |
Interest rate | 34,322 | 81,873 | 2,386 | 913 | 3,299 | 826 | 4,413 | 5,239 |
At 31 Dec 2022 | 94,952 | 81,873 | 2,888 | 913 | 3,801 | 2,509 | 4,413 | 6,922 |
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 | 172,985 | 3,729 | 2,965 | Derivatives | (1,043) |
At 31 Dec 2023 | 172,985 | 3,729 | 2,965 | (1,043) |
Interest rate3 | 162,062 | 4,973 | 2,573 | Derivatives | 4,064 |
At 31 Dec 2022 | 162,062 | 4,973 | 2,573 | 4,064 |
HSBC hedged item by hedged risk | ||||||||
Hedged item | Ineffectiveness | |||||||
Carrying amount | Accumulated fair value hedge adjustments included in carrying amount1 | Change in fair value2 | 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 | 82,321 | (2,282) | Financial investments - measured at fair value through other comprehensive income | 2,053 | 5 | Net income from financial instruments held for trading or managed on a fair value basis | ||
514 | 32 | Financial investments - measured at amortised cost | 32 | |||||
4,701 | (18) | Loans and advances to customers | 122 | |||||
\u2014 | \u2014 | Reverse repurchase agreements \u2013 non- trading | 15 | |||||
64,269 | (2,147) | Debt securities in issue | (1,179) | |||||
\u2014 | \u2014 | Deposits by banks | \u2014 | |||||
\u2014 | \u2014 | Subordinated liabilities | 5 | |||||
At 31 Dec 2023 | 87,536 | 64,269 | (2,268) | (2,147) | 1,048 | 5 |
HSBC hedged item by hedged risk (continued) | ||||||||
Hedged item | Ineffectiveness | |||||||
Carrying amount | Accumulated fair value hedge adjustments included in carrying amount1 | Change in fair value2 | 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 repurchase agreements \u2013 non-trading | (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) |
HSBC Holdings hedging instrument by hedged risk | |||||
Hedging instrument | |||||
Carrying amount | |||||
Notional amount1,2 | Assets | Liabilities | Balance sheet presentation | Change in fair value3 | |
Hedged risk | $m | $m | $m | $m | |
Interest rate4 | 92,268 | 1,128 | 3,638 | Derivatives | 1,426 |
At 31 Dec 2023 | 92,268 | 1,128 | 3,638 | 1,426 | |
Interest rate4 | 81,873 | 913 | 4,413 | Derivatives | (5,599) |
At 31 Dec 2022 | 81,873 | 913 | 4,413 | (5,599) |
HSBC Holdings hedged item by hedged risk | ||||||||
Hedged item | Ineffectiveness | |||||||
Carrying amount | Accumulated fair value hedge adjustments included in carrying amount1 | Change in fair value2 | 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 | 80,889 | (2,971) | Debt securities in issue | (1,716) | 29 | Net income from financial instruments held for trading or managed on a fair value basis | ||
7,772 | (490) | Loans and advances to banks | 319 | |||||
At 31 Dec 2023 | 7,772 | 80,889 | (490) | (2,971) | (1,397) | 29 | ||
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) |
Hedging instrument by hedged risk | ||||||||
Hedging instrument | Hedged item | Ineffectiveness | ||||||
Carrying amount | Change in fair value2 | Change in fair value3 | Recognised in profit and loss | Profit and loss presentation | ||||
Notional amount1 | Assets | Liabilities | Balance sheet presentation | |||||
Hedged risk | $m | $m | $m | $m | $m | $m | ||
Foreign currency | 29,772 | 935 | 257 | Derivatives | 977 | 977 | \u2014 | Net income from financial instruments held for trading or managed on a fair value basis |
Interest rate | 188,327 | 1,390 | 1,116 | Derivatives | 1,542 | 1,512 | 30 | |
At 31 Dec 2023 | 218,099 | 2,325 | 1,373 | 2,519 | 2,489 | 30 |
Foreign currency | 8,781 | 418 | 166 | Derivatives | 659 | 659 | \u2014 | Net income from financial instruments held for trading or managed on a fair value basis |
Interest rate | 114,527 | 93 | 950 | Derivatives | (4,997) | (4,973) | (24) | |
At 31 Dec 2022 | 123,308 | 511 | 1,116 | (4,338) | (4,314) | (24) |
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 2023 | (3,387) | (421) |
Fair value gains/(losses) | 1,512 | 977 |
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 | 2,196 | (718) |
Income taxes | (937) | (29) |
Others | (285) | 59 |
Cash flow hedging reserve at 31 Dec 2023 | (901) | (132) |
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 loss | 325 | (926) |
Income taxes | 1,123 | 28 |
Others | 130 | 23 |
Cash flow hedging reserve at 31 Dec 2022 | (3,387) | (421) |
Hedges of net investment in foreign operations | ||||||
Carrying amount | Nominal amount | Amounts recognised in OCI1 | Change in fair value2 | Hedge ineffectiveness recognised in income statement | ||
Derivative assets | Derivative liabilities | |||||
Description of hedged risk | $m | $m | $m | $m | $m | $m |
2023 | ||||||
Pound sterling-denominated structural foreign exchange | (404) | 16,415 | 604 | (843) | \u2014 | |
Swiss franc-denominated structural foreign exchange | (23) | 526 | 49 | (62) | \u2014 | |
Hong Kong dollar-denominated structural foreign exchange | \u2014 | 5,792 | \u2014 | 2 | \u2014 | |
Other structural foreign exchange3 | (96) | 11,042 | 477 | 102 | \u2014 | |
Total | \u2014 | (523) | 33,775 | 1,130 | (801) | \u2014 |
2022 | ||||||
Pound sterling-denominated structural foreign exchange | 264 | \u2014 | 14,000 | 1,447 | 1,573 | \u2014 |
Swiss franc-denominated structural foreign exchange | \u2014 | (21) | 727 | 111 | 10 | \u2014 |
Hong Kong dollar-denominated structural foreign exchange | \u2014 | (19) | 4,597 | (2) | (7) | \u2014 |
Other structural foreign exchange3 | \u2014 | (117) | 10,819 | 375 | 369 | \u2014 |
Total | 264 | (157) | 30,143 | 1,931 | 1,945 | \u2014 |
Hedging instrument impacted by Ibor reform | |||||||
Hedging instrument | |||||||
Impacted by Ibor reform | Not impacted by Ibor reform | Notional amount3 | |||||
\u20ac1 | \u00a3 | $ | Other2 | Total | |||
$m | $m | $m | $m | $m | $m | $m | |
Fair value hedges | 16,907 | \u2014 | \u2014 | 4,384 | 21,291 | 151,694 | 172,985 |
Cash flow hedges | 10,850 | \u2014 | \u2014 | 3,504 | 14,354 | 173,973 | 188,327 |
At 31 Dec 2023 | 27,757 | \u2014 | \u2014 | 7,888 | 35,645 | 325,667 | 361,312 |
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 |
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 | 19,614 | \u2014 | \u2014 | 583 | 20,197 | 72,071 | 92,268 |
At 31 Dec 2023 | 19,614 | \u2014 | \u2014 | 583 | 20,197 | 72,071 | 92,268 |
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 |
16 | Financial investments |
Carrying amount of financial investments | ||
2023 | 2022\u00b9 | |
$m | $m | |
Financial investments measured at fair value through other comprehensive income | 294,437 | 255,660 |
\u2013\u00a0 treasury and other eligible bills | 102,438 | 86,749 |
\u2013\u00a0 debt securities | 190,119 | 167,107 |
\u2013\u00a0 equity securities | 1,447 | 1,696 |
\u2013\u00a0 other instruments | 433 | 108 |
Debt instruments measured at amortised cost | 148,326 | 109,066 |
\u2013\u00a0 treasury and other eligible bills | 30,733 | 34,507 |
\u2013\u00a0 debt securities | 117,593 | 74,559 |
At 31 Dec | 442,763 | 364,726 |
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 | 609 | 27 |
Business facilitation | 793 | 35 |
Others | 45 | 2 |
At 31 Dec 2023 | 1,447 | 64 |
Investments required by central institutions | 690 | 24 |
Business facilitation | 954 | 28 |
Others | 52 | 2 |
At 31 Dec 2022 | 1,696 | 54 |
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 | 2.1 | 2.0 | 2.0 | 2.4 |
US Government agencies | 3.6 | 3.1 | 3.3 | 3.0 |
US Government-sponsored agencies | 1.0 | 2.6 | 2.1 | 1.8 |
UK Government | 0.2 | 2.8 | 0.8 | 2.5 |
Hong Kong Government | 1.0 | 1.4 | 1.6 | \u2014 |
Other governments | 3.2 | 3.5 | 3.3 | 2.9 |
Asset-backed securities | 1.4 | 6.6 | 4.8 | 5.3 |
Corporate debt and other securities | 5.5 | 3.1 | 3.1 | 2.4 |
Debt securities measured at amortised cost | ||||
US Treasury | 8.9 | 3.7 | 3.7 | 2.1 |
US Government agencies | 7.9 | 7.8 | 5.8 | 4.5 |
US Government-sponsored agencies | 2.3 | 3.7 | 3.4 | 2.9 |
UK Government | \u2014 | \u2014 | 0.9 | 4.5 |
Hong Kong Government | \u2014 | 2.6 | \u2014 | \u2014 |
Other governments | 2.7 | 3.5 | 5.3 | \u2014 |
Asset-backed securities | 4.7 | \u2014 | 7.7 | \u2014 |
Corporate debt and other securities | 2.6 | 2.6 | 3.5 | 5.2 |
HSBC Holdings carrying amount of financial investments | ||
2023 | 2022 | |
$m | $m | |
Debt instruments measured at amortised cost | ||
\u2013\u00a0 treasury and other eligible bills | 15,629 | 12,796 |
\u2013\u00a0 debt securities | 3,929 | 6,670 |
At 31 Dec | 19,558 | 19,466 |
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 amortised cost | ||||
US Treasury | 3.2 | 4.3 | \u2014 | \u2014 |
24 | Trading liabilities |
2023 | 2022 | |
$m | $m | |
Deposits by banks1 | 6,779 | 9,332 |
Customer accounts1 | 8,955 | 10,724 |
Other debt securities in issue (Note 26) | 27 | 978 |
Other liabilities \u2013 net short positions in securities | 57,389 | 51,319 |
At 31 Dec | 73,150 | 72,353 |
25 | Financial liabilities designated at fair value |
HSBC | ||
2023 | 2022\u00b9 | |
$m | $m | |
Deposits by banks and customer accounts2 | 21,043 | 19,171 |
Liabilities to customers under investment contracts | 5,103 | 5,374 |
Debt securities in issue (Note 26) | 103,803 | 93,140 |
Subordinated liabilities (Note 29) | 11,477 | 9,636 |
At 31 Dec | 141,426 | 127,321 |
HSBC Holdings | ||
2023 | 2022 | |
$m | $m | |
Debt securities in issue (Note 26) | 35,189 | 25,423 |
Subordinated liabilities (Note 29) | 8,449 | 6,700 |
At 31 Dec | 43,638 | 32,123 |
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 | 285,868 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 285,868 |
Items in the course of collection from other banks | 6,342 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 6,342 |
Hong Kong Government certificates of indebtedness | 42,024 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 42,024 |
Trading assets | 284,865 | 2,010 | 637 | 363 | 555 | 165 | 564 | \u2014 | 289,159 |
Financial assets designated or otherwise mandatorily measured at fair value | 5,530 | 697 | 821 | 753 | 581 | 4,839 | 11,917 | 85,505 | 110,643 |
Derivatives | 227,343 | 138 | 134 | 71 | 35 | 383 | 570 | 1,040 | 229,714 |
Loans and advances to banks | 76,524 | 18,662 | 6,487 | 2,689 | 3,281 | 2,756 | 2,328 | 175 | 112,902 |
Loans and advances to customers | 142,803 | 66,425 | 52,218 | 40,135 | 36,323 | 94,206 | 175,381 | 331,044 | 938,535 |
\u2013\u00a0 personal | 44,105 | 9,558 | 6,960 | 6,422 | 6,127 | 19,606 | 54,365 | 297,512 | 444,655 |
\u2013\u00a0 corporate and commercial | 83,281 | 50,268 | 38,250 | 24,685 | 24,566 | 61,612 | 106,598 | 30,592 | 419,852 |
\u2013\u00a0 financial | 15,417 | 6,599 | 7,008 | 9,028 | 5,630 | 12,988 | 14,418 | 2,940 | 74,028 |
Reverse repurchase agreements \u2013 non-trading | 164,826 | 43,893 | 23,840 | 6,708 | 5,126 | 6,113 | 1,711 | \u2014 | 252,217 |
Financial investments | 48,969 | 69,816 | 44,493 | 16,348 | 18,603 | 46,124 | 106,117 | 92,293 | 442,763 |
Assets held for sale2 | 39,882 | 2,929 | 7,041 | 4,176 | 3,261 | 17,085 | 33,015 | 7,943 | 115,332 |
Accrued income and other financial assets | 108,138 | 6,574 | 4,404 | 550 | 698 | 220 | 764 | 1,513 | 122,861 |
Financial assets at 31 Dec 2023 | 1,433,114 | 211,144 | 140,075 | 71,793 | 68,463 | 171,891 | 332,367 | 519,513 | 2,948,360 |
Non-financial assets | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 90,317 | 90,317 |
Total assets at 31 Dec 2023 | 1,433,114 | 211,144 | 140,075 | 71,793 | 68,463 | 171,891 | 332,367 | 609,830 | 3,038,677 |
Off-balance sheet commitments received | |||||||||
Loan and other credit-related commitments | 39,836 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 39,836 |
Financial liabilities | |||||||||
Hong Kong currency notes in circulation | 42,024 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 42,024 |
Deposits by banks | 52,747 | 2,758 | 2,324 | 381 | 94 | 1,458 | 13,064 | 337 | 73,163 |
Customer accounts | 1,343,858 | 138,117 | 78,611 | 20,832 | 17,724 | 7,785 | 4,616 | 104 | 1,611,647 |
\u2013\u00a0 personal | 621,112 | 84,909 | 61,286 | 14,794 | 12,465 | 5,507 | 2,742 | 2 | 802,817 |
\u2013\u00a0 corporate and commercial | 545,207 | 43,562 | 14,525 | 4,605 | 3,393 | 2,165 | 1,527 | 92 | 615,076 |
\u2013\u00a0 financial | 177,539 | 9,646 | 2,800 | 1,433 | 1,866 | 113 | 347 | 10 | 193,754 |
Repurchase agreements \u2013 non-trading | 158,882 | 10,311 | 1,759 | 300 | 847 | 1 | \u2014 | \u2014 | 172,100 |
Items in the course of transmission to other banks | 7,295 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 7,295 |
Trading liabilities | 66,548 | 6,302 | 300 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 73,150 |
Financial liabilities designated at fair value | 22,080 | 8,366 | 7,823 | 7,197 | 6,239 | 16,679 | 39,497 | 33,545 | 141,426 |
\u2013\u00a0 debt securities in issue: covered bonds | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
\u2013\u00a0 debt securities in issue: unsecured | 10,383 | 2,760 | 5,748 | 6,225 | 5,390 | 14,090 | 34,757 | 23,898 | 103,251 |
\u2013\u00a0 subordinated liabilities and preferred securities | \u2014 | 1,995 | \u2014 | \u2014 | \u2014 | 1,471 | 3,429 | 4,581 | 11,476 |
\u2013\u00a0 other | 11,697 | 3,611 | 2,075 | 972 | 849 | 1,118 | 1,311 | 5,066 | 26,699 |
Derivatives | 233,134 | 113 | 25 | 9 | 47 | 73 | 1,223 | 148 | 234,772 |
Debt securities in issue | 6,891 | 6,664 | 10,816 | 6,896 | 6,427 | 6,317 | 27,452 | 22,454 | 93,917 |
\u2013\u00a0 covered bonds | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 1,273 | \u2014 | 1,273 |
\u2013\u00a0 otherwise secured | 447 | 44 | 62 | 58 | 55 | 188 | 861 | 1,679 | 3,394 |
\u2013\u00a0 unsecured | 6,444 | 6,620 | 10,754 | 6,838 | 6,372 | 6,129 | 25,318 | 20,775 | 89,250 |
Liabilities of disposal groups held for sale3 | 69,868 | 5,231 | 5,479 | 6,728 | 6,541 | 4,730 | 7,918 | 1,511 | 108,006 |
Accruals and other financial liabilities | 104,264 | 11,827 | 6,007 | 1,205 | 1,414 | 1,053 | 1,491 | 2,137 | 129,398 |
Subordinated liabilities | \u2014 | 13 | \u2014 | \u2014 | \u2014 | 1,790 | 897 | 22,254 | 24,954 |
Total financial liabilities at 31 Dec 2023 | 2,107,591 | 189,702 | 113,144 | 43,548 | 39,333 | 39,886 | 96,158 | 82,490 | 2,711,852 |
Non-financial liabilities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 134,215 | 134,215 |
Total liabilities at 31 Dec 2023 | 2,107,591 | 189,702 | 113,144 | 43,548 | 39,333 | 39,886 | 96,158 | 216,705 | 2,846,067 |
Off-balance sheet commitments given | |||||||||
Loan and other credit-related commitments | 895,140 | 95 | 126 | 72 | 171 | 439 | 807 | 300 | 897,150 |
\u2013\u00a0 personal | 256,272 | 21 | 30 | 46 | 107 | 279 | 745 | 192 | 257,692 |
\u2013\u00a0 corporate and commercial | 472,507 | 74 | 26 | 26 | 64 | 160 | 62 | 108 | 473,027 |
\u2013\u00a0 financial | 166,361 | \u2014 | 70 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 166,431 |
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 | 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 at fair value | 3,282 | 718 | 1,369 | 1,178 | 479 | 1,967 | 13,353 | 77,755 | 100,101 |
Derivatives | 281,724 | 132 | 29 | 21 | 65 | 261 | 1,052 | 875 | 284,159 |
Loans and advances to banks | 72,240 | 13,965 | 8,323 | 860 | 2,328 | 3,058 | 3,569 | 132 | 104,475 |
Loans and advances to customers | 139,934 | 75,486 | 58,951 | 35,633 | 33,730 | 99,933 | 173,076 | 306,818 | 923,561 |
\u2013\u00a0 personal | 41,834 | 9,141 | 6,659 | 5,745 | 5,773 | 18,326 | 51,050 | 273,487 | 412,015 |
\u2013\u00a0 corporate and commercial | 84,955 | 60,067 | 45,695 | 24,430 | 22,629 | 68,473 | 108,418 | 30,231 | 444,898 |
\u2013\u00a0 financial | 13,145 | 6,278 | 6,597 | 5,458 | 5,328 | 13,134 | 13,608 | 3,100 | 66,648 |
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 | 46,493 | 79,309 | 30,722 | 11,798 | 13,067 | 40,710 | 67,951 | 74,676 | 364,726 |
Assets held for sale2 | 33,781 | 3,755 | 3,452 | 3,044 | 3,263 | 15,369 | 40,017 | 14,697 | 117,378 |
Accrued income and other financial assets | 99,113 | 6,042 | 3,766 | 620 | 703 | 543 | 302 | 1,295 | 112,384 |
Financial assets at 31 Dec 2022 | 1,439,060 | 232,476 | 124,119 | 59,332 | 56,836 | 166,648 | 301,608 | 476,638 | 2,856,717 |
Non-financial assets | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 92,569 | 92,569 |
Total assets at 31 Dec 2022 | 1,439,060 | 232,476 | 124,119 | 59,332 | 56,836 | 166,648 | 301,608 | 569,207 | 2,949,286 |
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 | 16,430 | 7,398 | 6,562 | 4,308 | 5,325 | 19,287 | 34,886 | 33,125 | 127,321 |
\u2013\u00a0 debt securities in issue: covered bonds | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
\u2013\u00a0 debt securities in issue: unsecured | 7,056 | 3,620 | 4,793 | 3,157 | 4,288 | 16,234 | 29,941 | 23,510 | 92,599 |
\u2013\u00a0 subordinated liabilities and preferred\u00a0 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 | 5,625 | 25,086 |
Derivatives | 284,412 | 73 | 18 | 46 | 57 | 171 | 849 | 136 | 285,762 |
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 sale3 | 76,928 | 4,342 | 5,374 | 6,599 | 8,606 | 2,343 | 8,653 | 1,479 | 114,324 |
Accruals and other financial liabilities | 104,295 | 9,576 | 4,776 | 967 | 1,564 | 1,028 | 2,016 | 1,725 | 125,947 |
Subordinated liabilities | \u2014 | \u2014 | 11 | 160 | \u2014 | \u2014 | 1,689 | 20,430 | 22,290 |
Total financial liabilities at 31 Dec 2022 | 2,160,741 | 131,728 | 76,405 | 31,557 | 37,326 | 39,567 | 85,712 | 79,533 | 2,642,569 |
Non-financial liabilities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 121,520 | 121,520 |
Total liabilities at 31 Dec 2022 | 2,160,741 | 131,728 | 76,405 | 31,557 | 37,326 | 39,567 | 85,712 | 201,053 | 2,764,089 |
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 | |||||||||
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 | 7,029 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 7,029 |
Financial assets with HSBC undertakings designated and otherwise mandatorily measured at fair value | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 3,815 | 26,284 | 29,780 | 59,879 |
Derivatives | 2,217 | \u2014 | \u2014 | \u2014 | \u2014 | 18 | 675 | 434 | 3,344 |
Loans and advances to HSBC undertakings | \u2014 | \u2014 | 120 | \u2014 | \u2014 | 1,016 | 6,783 | 19,435 | 27,354 |
Financial investments | 10,365 | 6,017 | 898 | 750 | 757 | 771 | \u2014 | \u2014 | 19,558 |
Accrued income and other financial assets | 3,511 | 860 | 254 | 229 | 5 | \u2014 | \u2014 | \u2014 | 4,859 |
Total financial assets at 31 Dec 2023 | 23,122 | 6,877 | 1,272 | 979 | 762 | 5,620 | 33,742 | 49,649 | 122,023 |
Non-financial assets | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 163,146 | 163,146 |
Total assets at 31 Dec 2023 | 23,122 | 6,877 | 1,272 | 979 | 762 | 5,620 | 33,742 | 212,795 | 285,169 |
Financial liabilities | |||||||||
Amounts owed to HSBC undertakings | \u2014 | 168 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 168 |
Financial liabilities designated at fair\u00a0value | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 5,287 | 19,604 | 18,747 | 43,638 |
\u2013\u00a0 debt securities in issue | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 3,816 | 16,175 | 15,198 | 35,189 |
\u2013\u00a0 subordinated liabilities and preferred securities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 1,471 | 3,429 | 3,549 | 8,449 |
Derivatives | 2,452 | 209 | 7 | 59 | 75 | 558 | 1,318 | 1,412 | 6,090 |
Debt securities in issue | \u2014 | \u2014 | 816 | 2,158 | \u2014 | 4,920 | 33,735 | 23,610 | 65,239 |
Accruals and other financial liabilities | 1,437 | 1,599 | 1,049 | 127 | 34 | \u2014 | \u2014 | 23 | 4,269 |
Subordinated liabilities | \u2014 | 1,987 | \u2014 | \u2014 | \u2014 | 1,600 | 880 | 19,972 | 24,439 |
Total financial liabilities 31 Dec 2023 | 3,889 | 3,963 | 1,872 | 2,344 | 109 | 12,365 | 55,537 | 63,764 | 143,843 |
Non-financial liabilities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 20 | 20 |
Total liabilities at 31 Dec 2023 | 3,889 | 3,963 | 1,872 | 2,344 | 109 | 12,365 | 55,537 | 63,784 | 143,863 |
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 |
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 |
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 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\u00a0Dec\u00a02022 | 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 value | \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 at 31\u00a0Dec 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 |
Cash flows payable by HSBC 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 | |
Deposits by banks | 52,938 | 2,898 | 3,304 | 17,123 | 362 | 76,625 |
Customer accounts | 1,345,006 | 141,348 | 119,660 | 13,423 | 109 | 1,619,546 |
Repurchase agreements \u2013 non-trading | 159,264 | 10,457 | 2,996 | 1 | \u2014 | 172,718 |
Trading liabilities | 73,150 | \u2014 | \u2014 | \u2014 | \u2014 | 73,150 |
Financial liabilities designated at fair value | 22,262 | 9,156 | 26,033 | 63,960 | 44,886 | 166,297 |
Derivatives | 232,598 | 609 | 1,295 | 2,445 | 2,910 | 239,857 |
Debt securities in issue | 6,837 | 7,407 | 24,117 | 43,513 | 27,119 | 108,993 |
Subordinated liabilities | 39 | 135 | 1,465 | 9,020 | 34,920 | 45,579 |
Other financial liabilities1 | 149,904 | 9,752 | 5,943 | 2,555 | 2,109 | 170,263 |
2,041,998 | 181,762 | 184,813 | 152,040 | 112,415 | 2,673,028 | |
Loan and other credit-related commitments | 895,156 | 95 | 371 | 1,437 | 91 | 897,150 |
Financial guarantees2 | 16,966 | 4 | 39 | \u2014 | \u2014 | 17,009 |
At 31 Dec 2023 | 2,954,120 | 181,861 | 185,223 | 153,477 | 112,506 | 3,587,187 |
Proportion of cash flows payable in period | 83% | 5% | 5% | 4% | 3% | |
Deposits by banks | 47,082 | 406 | 4,024 | 16,050 | 359 | 67,921 |
Customer accounts | 1,387,125 | 96,474 | 80,608 | 9,961 | 346 | 1,574,514 |
Repurchase agreements \u2013 non-trading | 121,328 | 3,852 | 1,535 | 1,268 | \u2014 | 127,983 |
Trading liabilities | 72,353 | \u2014 | \u2014 | \u2014 | \u2014 | 72,353 |
Financial liabilities designated at fair value | 16,687 | 7,859 | 18,740 | 63,606 | 43,475 | 150,367 |
Derivatives | 283,512 | 171 | 1,181 | 2,222 | 1,059 | 288,145 |
Debt securities in issue | 4,329 | 8,217 | 17,522 | 34,283 | 26,428 | 90,779 |
Subordinated liabilities | 37 | 168 | 1,395 | 7,321 | 32,946 | 41,867 |
Other financial liabilities1 | 153,597 | 8,670 | 5,994 | 3,230 | 1,704 | 173,195 |
2,086,050 | 125,817 | 130,999 | 137,941 | 106,317 | 2,587,124 | |
Loan and other credit-related commitments | 825,781 | 184 | 344 | 1,217 | 328 | 827,854 |
Financial guarantees2 | 18,696 | 25 | 62 | \u2014 | \u2014 | 18,783 |
At 31 Dec 2022 | 2,930,527 | 126,026 | 131,405 | 139,158 | 106,645 | 3,433,761 |
Proportion of cash flows payable in period | 85% | 4% | 4% | 4% | 3% |
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 | \u2014 | 168 | \u2014 | \u2014 | \u2014 | 168 |
Financial liabilities designated at fair value | 23 | 405 | 1,437 | 31,050 | 25,610 | 58,525 |
Derivatives | 1,244 | 556 | 1,651 | 2,227 | 726 | 6,404 |
Debt securities in issue | \u2014 | 680 | 4,787 | 46,909 | 27,745 | 80,121 |
Subordinated liabilities | 46 | 2,163 | 1,360 | 8,239 | 30,862 | 42,670 |
Other financial liabilities | 1,436 | 1,620 | 1,210 | \u2014 | 23 | 4,289 |
2,749 | 5,592 | 10,445 | 88,425 | 84,966 | 192,177 | |
Loan commitments | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Financial guarantees1 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
At 31 Dec 2023 | 2,749 | 5,592 | 10,445 | 88,425 | 84,966 | 192,177 |
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 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
At 31 Dec 2022 | 2,008 | 1,678 | 8,940 | 80,036 | 80,133 | 172,795 |
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 arrangements1 | Total | ||||||
Amounts not set off in the balance sheet | ||||||||
Gross amounts | Amounts offset | Net amounts in the balance sheet | Financial instruments, including non-cash collateral | Cash collateral | Net amount | |||
$m | $m | $m | $m | $m | $m | $m | $m | |
Financial assets | ||||||||
Derivatives (Note 15)2 | 341,473 | (116,486) | 224,987 | (198,743) | (22,926) | 3,318 | 4,727 | 229,714 |
Reverse repos, stock borrowing and similar agreements classified as:3 | ||||||||
\u2013\u00a0 trading assets | 29,152 | (602) | 28,550 | (28,513) | (34) | 3 | 2,633 | 31,183 |
\u2013\u00a0 non-trading assets | 365,922 | (135,210) | 230,712 | (230,240) | (80) | 392 | 21,653 | 252,365 |
Loans and advances to customers4 | 34,173 | (15,792) | 18,381 | (15,613) | (93) | 2,675 | 2 | 18,383 |
At 31 Dec 2023 | 770,720 | (268,090) | 502,630 | (473,109) | (23,133) | 6,388 | 29,015 | 531,645 |
Derivatives (Note 15)2 | 419,020 | (140,987) | 278,033 | (236,372) | (36,486) | 5,175 | 6,126 | 284,159 |
Reverse repos, stock borrowing and similar agreements classified as:3 | ||||||||
\u2013\u00a0 trading assets | 24,370 | (236) | 24,134 | (24,105) | (29) | \u2014 | 1,369 | 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 customers4 | 28,336 | (12,384) | 15,952 | (13,166) | \u2014 | 2,786 | 267 | 16,219 |
At 31 Dec 20226 | 806,919 | (256,495) | 550,424 | (505,075) | (36,964) | 8,385 | 29,451 | 579,875 |
Financial liabilities | ||||||||
Derivatives (Note 15)2 | 344,799 | (116,486) | 228,313 | (198,640) | (23,748) | 5,925 | 6,459 | 234,772 |
Repos, stock lending and similar agreements classified as:3 | ||||||||
\u2013\u00a0 trading liabilities | 15,686 | (172) | 15,514 | (15,453) | \u2014 | 61 | 6 | 15,520 |
\u2013\u00a0 non-trading liabilities | 270,493 | (135,640) | 134,853 | (134,095) | (669) | 89 | 37,247 | 172,100 |
Customer accounts6 | 42,522 | (15,792) | 26,730 | (15,613) | (93) | 11,024 | 13 | 26,743 |
At 31 Dec 2023 | 673,500 | (268,090) | 405,410 | (363,801) | (24,510) | 17,099 | 43,725 | 449,135 |
Derivatives (Note 15)2 | 419,992 | (140,987) | 279,005 | (239,234) | (29,276) | 10,495 | 6,757 | 285,762 |
Repos, stock lending and similar agreements classified as:3 | ||||||||
\u2013\u00a0 trading liabilities | 20,026 | (236) | 19,790 | (19,790) | \u2014 | \u2014 | 5 | 19,795 |
\u2013\u00a0 non-trading liabilities | 206,827 | (102,888) | 103,939 | (103,296) | (249) | 394 | 23,809 | 127,748 |
Customer accounts6 | 37,164 | (12,384) | 24,780 | (13,166) | \u2014 | 11,614 | 14 | 24,794 |
At 31 Dec 20226 | 684,009 | (256,495) | 427,514 | (375,486) | (29,525) | 22,503 | 30,585 | 458,099 |
32 | Interest rate benchmark reform |
Financial instruments yet to transition to alternative benchmarks, by main benchmark | ||||||
USD Libor | GBP Libor3 | JPY Libor | CDOR | TIIE | Others1 | |
At 31 Dec 2023 | $m | $m | $m | $m | $m | $m |
Non-derivative financial assets2 | 2,644 | 45 | \u2014 | 2,132 | 3,961 | 1,941 |
Non-derivative financial liabilities | 905 | 2,054 | 558 | 181 | 1,323 | 9 |
Derivative notional contract amount | 12,013 | \u2014 | \u2014 | 134,636 | 32,836 | 11,821 |
At 31 Dec 2022 | ||||||
Non-derivative financial assets2 | 54,348 | 304 | \u2014 | 1,695 | 3,635 | 4,144 |
Non-derivative financial liabilities | 25,564 | 1,804 | 1,179 | 176 | \u2014 | \u2014 |
Derivative notional contract amount | 2,348,412 | 68 | \u2014 | 119,832 | 17,698 | 56,759 |
12 | Fair values of financial instruments carried at fair value |
Financial instruments carried at fair value and bases of valuation | ||||||||
2023 | 20221 | |||||||
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 | 202,020 | 82,833 | 4,306 | 289,159 | 148,592 | 64,684 | 4,817 | 218,093 |
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | 27,030 | 63,825 | 19,788 | 110,643 | 23,146 | 59,548 | 17,407 | 100,101 |
Derivatives | 931 | 226,714 | 2,069 | 229,714 | 2,917 | 279,278 | 1,964 | 284,159 |
Financial investments | 215,228 | 76,591 | 2,618 | 294,437 | 181,659 | 71,040 | 2,961 | 255,660 |
Liabilities | ||||||||
Trading liabilities | 53,354 | 19,318 | 478 | 73,150 | 44,787 | 27,092 | 474 | 72,353 |
Financial liabilities designated at fair value | 1,266 | 129,232 | 10,928 | 141,426 | 1,125 | 115,764 | 10,432 | 127,321 |
Derivatives | 1,918 | 230,285 | 2,569 | 234,772 | 2,399 | 280,443 | 2,920 | 285,762 |
Financial instruments carried at fair value and bases of valuation \u2013 assets and liabilities held for sale | ||||||||
2023 | 2022 | |||||||
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 | 2,403 | 61 | \u2014 | 2,465 | 2,932 | 244 | \u2014 | 3,176 |
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | \u2014 | 15 | 49 | 64 | \u2014 | 14 | 47 | 61 |
Derivatives | \u2014 | 528 | \u2014 | 528 | \u2014 | 866 | \u2014 | 866 |
Financial investments | 9,357 | \u2014 | 28 | 9,385 | 11,184 | \u2014 | \u2014 | 11,184 |
Liabilities | ||||||||
Trading liabilities | 1,352 | 64 | \u2014 | 1,417 | 2,572 | 182 | \u2014 | 2,754 |
Financial liabilities designated at fair value | \u2014 | 2,370 | \u2014 | 2,370 | \u2014 | 3,523 | \u2014 | 3,523 |
Derivatives | \u2014 | 615 | \u2014 | 615 | \u2014 | 813 | \u2014 | 813 |
Transfers between Level 1 and Level 2 fair values | |||||||
Assets | Liabilities | ||||||
Financial investments | Trading assets | Designated and otherwise mandatorily measured at fair value | Derivatives | Trading liabilities | Designated at fair value | Derivatives | |
$m | $m | $m | $m | $m | $m | $m | |
At 31 Dec 2023 | |||||||
Transfers from Level 1 to Level 2 | 13,200 | 8,066 | 1,709 | \u2014 | 54 | \u2014 | \u2014 |
Transfers from Level 2 to Level 1 | 9,975 | 5,758 | 2,477 | \u2014 | 309 | \u2014 | \u2014 |
At 31 Dec 2022 | |||||||
Transfers from Level 1 to Level 2 | 4,721 | 5,284 | 2,565 | \u2014 | 113 | \u2014 | \u2014 |
Transfers from Level 2 to Level 1 | 8,208 | 5,964 | 3,340 | \u2014 | 233 | \u2014 | \u2014 |
Global Banking and Markets fair value adjustments | ||||
2023 | 2022 | |||
GBM | Corporate Centre | GBM | Corporate Centre | |
$m | $m | $m | $m | |
Type of adjustment | ||||
Risk-related | 692 | 41 | 650 | 40 |
\u2013\u00a0 bid-offer | 414 | \u2014 | 426 | \u2014 |
\u2013\u00a0 uncertainty | 75 | 3 | 86 | \u2014 |
\u2013\u00a0 credit valuation adjustment | 164 | 35 | 245 | 35 |
\u2013\u00a0 debit valuation adjustment | (54) | \u2014 | (175) | \u2014 |
\u2013\u00a0 funding fair value adjustment | 93 | 3 | 68 | 5 |
Model-related | 63 | \u2014 | 61 | \u2014 |
\u2013\u00a0 model limitation | 63 | \u2014 | 61 | \u2014 |
Inception profit (Day 1 P&L reserves) | 86 | \u2014 | 97 | \u2014 |
At 31 Dec | 841 | 41 | 808 | 40 |
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 | 507 | 7 | 17,640 | \u2014 | 18,154 | \u2014 | 1 | \u2014 | 1 |
Asset-backed securities | 309 | 128 | 8 | \u2014 | 445 | \u2014 | \u2014 | \u2014 | \u2014 |
Structured notes | \u2014 | \u2014 | 3 | \u2014 | 3 | \u2014 | 10,331 | \u2014 | 10,331 |
Other derivatives | \u2014 | \u2014 | \u2014 | 2,069 | 2,069 | \u2014 | \u2014 | 2,569 | 2,569 |
Other portfolios | 1,802 | 4,171 | 2,137 | \u2014 | 8,110 | 478 | 596 | \u2014 | 1,074 |
At 31 Dec 2023 | 2,618 | 4,306 | 19,788 | 2,069 | 28,781 | 478 | 10,928 | 2,569 | 13,975 |
Private equity including strategic investments | 647 | 19 | 15,653 | \u2014 | 16,319 | 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 | 1,876 | 4,590 | 1,659 | \u2014 | 8,125 | 382 | \u2014 | \u2014 | 382 |
At 31 Dec 2022 | 2,961 | 4,817 | 17,407 | 1,964 | 27,149 | 474 | 10,432 | 2,920 | 13,826 |
Movement in Level 3 financial instruments | |||||||
Assets | Liabilities | ||||||
Financial investments | Trading assets | Designated and otherwise mandatorily measured at fair value through profit or loss | Derivatives | Trading liabilities | Designated at fair value | Derivatives | |
$m | $m | $m | $m | $m | $m | $m | |
At 1 Jan 2023 | 2,961 | 4,817 | 17,407 | 1,964 | 474 | 10,432 | 2,920 |
Total gains/(losses) recognised in profit or\u00a0loss | (44) | 266 | 921 | 692 | 75 | 97 | 910 |
\u2013\u00a0 net income/(losses) from financial instruments held for trading or managed on a fair value basis | \u2014 | 266 | \u2014 | 692 | 75 | 97 | 910 |
\u2013\u00a0 changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | \u2014 | \u2014 | 921 | \u2014 | \u2014 | \u2014 | \u2014 |
\u2013\u00a0 gains less losses from financial investments at fair value through other comprehensive income | (44) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Total gains/(losses) recognised in other comprehensive income (\u2018OCI\u2019)1 | 28 | 108 | 87 | 81 | 24 | 523 | 111 |
\u2013\u00a0 financial investments: fair value gains/(losses) | (44) | \u2014 | \u2014 | \u2014 | \u2014 | 335 | \u2014 |
\u2013\u00a0 exchange differences | 72 | 108 | 87 | 81 | 24 | 188 | 111 |
Purchases | 353 | 2,276 | 3,555 | \u2014 | 291 | \u2014 | \u2014 |
New issuances | \u2014 | 2 | \u2014 | \u2014 | 2 | 5,389 | \u2014 |
Sales | (290) | (2,478) | (658) | \u2014 | (320) | (2) | \u2014 |
Settlements | (352) | (872) | (1,886) | (1,018) | (74) | (3,258) | (1,565) |
Transfers out | (662) | (922) | (156) | (240) | (45) | (2,881) | (358) |
Transfers in | 624 | 1,109 | 518 | 590 | 51 | 628 | 551 |
At 31 Dec 2023 | 2,618 | 4,306 | 19,788 | 2,069 | 478 | 10,928 | 2,569 |
Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 31\u00a0Dec 2023 | \u2014 | (152) | 82 | 737 | \u2014 | (433) | (903) |
\u2013\u00a0 net income/(losses) from financial instruments held for trading or managed on a fair value basis | \u2014 | (152) | \u2014 | 737 | \u2014 | \u2014 | (903) |
\u2013\u00a0 changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | \u2014 | \u2014 | 82 | \u2014 | \u2014 | (433) | \u2014 |
At 1 Jan 2022 | 3,389 | 2,662 | 14,238 | 2,478 | 785 | 7,880 | 3,088 |
IFRS 17 impacts | (12) | \u2014 | 1,468 | \u2014 | \u2014 | \u2014 | \u2014 |
At 1 Jan 2022 (as restated) | 3,377 | 2,662 | 15,706 | 2,478 | 785 | 7,880 | 3,088 |
Total gains/(losses) recognised in profit or\u00a0loss | (4) | (245) | 132 | 390 | (52) | (1,334) | 1,014 |
\u2013\u00a0 net income/(losses) from financial instruments held for trading or managed on a fair value basis | \u2014 | (245) | \u2014 | 390 | (52) | \u2014 | 1,014 |
\u2013\u00a0 changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | \u2014 | \u2014 | 132 | \u2014 | \u2014 | (1,334) | \u2014 |
\u2013\u00a0 gains less losses from financial investments at fair value through other comprehensive income | (4) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Total gains/(losses) recognised in other comprehensive income (\u2018OCI\u2019)1 | (325) | (137) | (217) | (219) | (11) | (345) | (226) |
\u2013\u00a0 financial investments: fair value gains/(losses) | (202) | \u2014 | \u2014 | \u2014 | \u2014 | 82 | \u2014 |
\u2013\u00a0 exchange differences | (123) | (137) | (217) | (219) | (11) | (427) | (226) |
Purchases | 1,048 | 3,436 | 4,410 | \u2014 | 178 | \u2014 | \u2014 |
New issuances | 1 | \u2014 | \u2014 | \u2014 | 8 | 4,183 | \u2014 |
Sales | (240) | (1,102) | (801) | \u2014 | (152) | (94) | \u2014 |
Settlements | (464) | (1,273) | (1,883) | (918) | (644) | 182 | (993) |
Transfers out | (489) | (442) | (76) | (409) | (18) | (1,296) | (632) |
Transfers in | 57 | 1,918 | 136 | 642 | 380 | 1,256 | 669 |
At 31 Dec 2022 | 2,961 | 4,817 | 17,407 | 1,964 | 474 | 10,432 | 2,920 |
Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 31\u00a0Dec 2022 | \u2014 | (100) | (158) | 707 | 2 | 100 | 2,779 |
\u2013\u00a0 net income/(losses) from financial instruments held for trading or managed on a fair value basis | \u2014 | (100) | \u2014 | 707 | 2 | \u2014 | 2,779 |
\u2013\u00a0 changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | \u2014 | \u2014 | (158) | \u2014 | \u2014 | 100 | \u2014 |
Sensitivity of fair values to reasonably possible alternative assumptions | ||||||||
2023 | 2022 | |||||||
Reflected in profit or loss | Reflected in OCI | Reflected in profit or loss | Reflected in OCI | |||||
Favourable changes | Un- favourable changes | Favourable changes | Un- favourable changes | Favourable changes | Un- favourable changes | Favourable changes | Un- favourable changes | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Derivatives, trading assets and trading liabilities1 | 492 | (531) | \u2014 | \u2014 | 264 | (291) | \u2014 | \u2014 |
Financial assets and liabilities designated and otherwise mandatorily measured at fair value through profit or loss | 1,092 | (1,100) | \u2014 | \u2014 | 981 | (978) | \u2014 | \u2014 |
Financial investments | 13 | (12) | 61 | (66) | 11 | (11) | 65 | (55) |
At 31 Dec | 1,597 | (1,643) | 61 | (66) | 1,256 | (1,280) | 65 | (55) |
Quantitative information about significant unobservable inputs in Level 3 valuations | ||||||||
Fair value | 2023 | 2022 | ||||||
Assets | Liabilities | Key valuation techniques | Key unobservable inputs | Full range of inputs | Full range of inputs | |||
$m | $m | Lower | Higher | Lower | Higher | |||
Private equity including strategic investments | 18,154 | 1 | See below | See below | ||||
Asset-backed securities | 445 | \u2014 | ||||||
\u2013\u00a0 collateralised loan/debt obligation | 44 | \u2014 | Market proxy | Bid quotes | \u2014 | 94 | \u2014 | 92 |
\u2013\u00a0 other ABSs | 401 | \u2014 | Market proxy | Bid quotes | \u2014 | 220 | \u2014 | 99 |
Structured notes | 3 | 10,331 | ||||||
\u2013\u00a0 equity-linked notes | 3 | 7,054 | Model \u2013 Option model | Equity volatility | 6% | 154% | 6% | 142% |
Model \u2013 Option model | Equity correlation | 34% | 100% | 32% | 99% | |||
\u2013\u00a0 Foreign exchange-linked notes | \u2014 | 1,733 | Model \u2013 Option model | Foreign exchange volatility | 1% | 34% | 3% | 37% |
\u2013\u00a0 other | \u2014 | 1,544 | ||||||
Derivatives | 2,069 | 2,569 | \u00a0 | \u00a0 | ||||
\u2013\u00a0 interest rate derivatives | 864 | 784 | \u00a0 | \u00a0 | ||||
\u00a0 securitisation swaps | 146 | 136 | Model \u2013 Discounted cash flow | Prepayment rate | 5% | 10% | 5% | 10% |
\u00a0 long-dated swaptions | 57 | 69 | Model \u2013 Option model | Interest rate volatility | 11% | 37% | 8% | 53% |
\u00a0 other | 661 | 579 | ||||||
\u2013\u00a0 Foreign exchange derivatives | 308 | 427 | ||||||
\u00a0 Foreign exchange options | 255 | 356 | Model \u2013 Option model | Foreign exchange volatility | 1% | 31% | 1% | 46% |
\u00a0 other | 53 | 71 | ||||||
\u2013\u00a0 equity derivatives | 600 | 981 | ||||||
\u00a0 long-dated single stock options | 391 | 609 | Model \u2013 Option model | Equity volatility | 6% | 110% | 7% | 153% |
\u00a0 other | 209 | 372 | ||||||
\u2013\u00a0 credit derivatives | 297 | 377 | ||||||
Other portfolios | 8,110 | 1,074 | ||||||
\u2013\u00a0 repurchase agreements | 1,090 | 310 | Model \u2013 Discounted cash flow | Interest rate curve | 3% | 8% | 1% | 9% |
\u2013\u00a0 bonds | 3,278 | 1 | Market proxy | Mid quotes | \u2014 | 101 | \u2014 | 102 |
\u2013\u00a0 other1 | 3,742 | 763 | ||||||
At 31 Dec 2023 | 28,781 | 13,975 |
Basis of valuing HSBC Holdings\u2019 financial assets and liabilities measured at fair value | ||
2023 | 2022 | |
$m | $m | |
Valuation technique using observable inputs: Level 2 | ||
Assets at 31 Dec | ||
\u2013\u00a0 derivatives | 3,344 | 3,801 |
\u2013\u00a0 designated and otherwise mandatorily measured at fair value through profit or loss | 59,879 | 52,322 |
Liabilities at 31 Dec | ||
\u2013\u00a0 designated at fair value | 43,638 | 32,123 |
\u2013\u00a0 derivatives | 6,090 | 6,922 |
13 | Fair values of financial instruments not carried at fair value |
Fair values of financial instruments not carried at fair value and bases of valuation | |||||
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 2023 | |||||
Assets | |||||
Loans and advances to banks | 112,902 | 2 | 111,263 | 1,479 | 112,744 |
Loans and advances to customers | 938,535 | \u2014 | 13,258 | 911,124 | 924,382 |
Reverse repurchase agreements \u2013 non-trading | 252,217 | \u2014 | 252,243 | \u2014 | 252,243 |
Financial investments \u2013 at amortised cost | 148,326 | 115,383 | 30,765 | 440 | 146,588 |
Liabilities | |||||
Deposits by banks | 73,163 | \u2014 | 73,176 | \u2014 | 73,176 |
Customer accounts | 1,611,647 | \u2014 | 1,611,795 | \u2014 | 1,611,795 |
Repurchase agreements \u2013 non-trading | 172,100 | \u2014 | 172,081 | \u2014 | 172,081 |
Debt securities in issue | 93,917 | \u2014 | 93,196 | 706 | 93,902 |
Subordinated liabilities | 24,954 | \u2014 | 27,151 | \u2014 | 27,151 |
At 31 Dec 20221 | |||||
Assets | |||||
Loans and advances to banks | 104,475 | 4 | 103,641 | 814 | 104,459 |
Loans and advances to customers | 923,561 | \u2014 | 8,791 | 903,107 | 911,898 |
Reverse repurchase agreements \u2013 non-trading | 253,754 | \u2014 | 253,668 | \u2014 | 253,668 |
Financial investments \u2013 at amortised cost | 109,066 | 84,087 | 21,850 | 475 | 106,412 |
Liabilities | |||||
Deposits by banks | 66,722 | \u2014 | 66,831 | \u2014 | 66,831 |
Customer accounts | 1,570,303 | \u2014 | 1,570,209 | \u2014 | 1,570,209 |
Repurchase agreements \u2013 non-trading | 127,747 | \u2014 | 127,500 | \u2014 | 127,500 |
Debt securities in issue | 78,149 | \u2014 | 76,640 | 381 | 77,021 |
Subordinated liabilities | 22,290 | \u2014 | 22,723 | \u2014 | 22,723 |
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 2023 | |||||
Assets | |||||
Loans and advances to banks | 10,487 | \u2014 | 10,487 | \u2014 | 10,487 |
Loans and advances to customers | 73,376 | \u2014 | 90 | 72,200 | 72,290 |
Reverse repurchase agreements \u2013 non-trading | 2,723 | \u2014 | 2,723 | \u2014 | 2,723 |
Financial investments \u2013 at amortised cost | 7,624 | 7,530 | \u2014 | 5 | 7,535 |
Liabilities | |||||
Deposits by banks | 78 | \u2014 | 78 | \u2014 | 78 |
Customer accounts | 85,950 | \u2014 | 86,475 | \u2014 | 86,475 |
Repurchase agreements \u2013 non-trading | 2,768 | \u2014 | 2,768 | \u2014 | 2,768 |
Debt securities in issue | 9,084 | \u2014 | 8,820 | \u2014 | 8,820 |
Subordinated liabilities | 8 | \u2014 | 7 | \u2014 | 7 |
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 |
Fair values of HSBC Holdings\u2019 financial instruments not carried at fair value on the balance sheet | ||||
2023 | 2022 | |||
Carrying amount | Fair value1 | Carrying amount | Fair value1 | |
$m | $m | $m | $m | |
Assets at 31 Dec | ||||
Loans and advances to HSBC undertakings | 27,354 | 27,878 | 26,765 | 26,962 |
Financial investments \u2013 at amortised cost | 19,558 | 19,531 | 19,466 | 19,314 |
Liabilities at 31 Dec | ||||
Debt securities in issue | 65,239 | 65,172 | 66,938 | 65,364 |
Subordinated liabilities | 24,439 | 26,651 | 19,727 | 20,644 |
14 | Financial assets designated and otherwise mandatorily measured at fair value through profit or loss |
2023 | 2022\u00b9 | |||||
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 | 2,353 | 101,152 | 103,505 | 3,096 | 91,936 | 95,032 |
\u2013\u00a0 treasury and other eligible bills | 695 | 724 | 1,419 | 649 | 869 | 1,518 |
\u2013\u00a0 debt securities | 1,658 | 60,045 | 61,703 | 2,447 | 56,633 | 59,080 |
\u2013\u00a0 equity securities | \u2014 | 40,383 | 40,383 | \u2014 | 34,434 | 34,434 |
Loans and advances to banks and customers | 371 | 5,495 | 5,866 | \u2014 | 3,455 | 3,455 |
Other | \u2014 | 1,272 | 1,272 | \u2014 | 1,614 | 1,614 |
At 31 Dec | 2,724 | 107,919 | 110,643 | 3,096 | 97,005 | 100,101 |
Carrying amount of financial investments | ||
2023 | 2022\u00b9 | |
$m | $m | |
Financial investments measured at fair value through other comprehensive income | 294,437 | 255,660 |
\u2013\u00a0 treasury and other eligible bills | 102,438 | 86,749 |
\u2013\u00a0 debt securities | 190,119 | 167,107 |
\u2013\u00a0 equity securities | 1,447 | 1,696 |
\u2013\u00a0 other instruments | 433 | 108 |
Debt instruments measured at amortised cost | 148,326 | 109,066 |
\u2013\u00a0 treasury and other eligible bills | 30,733 | 34,507 |
\u2013\u00a0 debt securities | 117,593 | 74,559 |
At 31 Dec | 442,763 | 364,726 |
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 | 2.1 | 2.0 | 2.0 | 2.4 |
US Government agencies | 3.6 | 3.1 | 3.3 | 3.0 |
US Government-sponsored agencies | 1.0 | 2.6 | 2.1 | 1.8 |
UK Government | 0.2 | 2.8 | 0.8 | 2.5 |
Hong Kong Government | 1.0 | 1.4 | 1.6 | \u2014 |
Other governments | 3.2 | 3.5 | 3.3 | 2.9 |
Asset-backed securities | 1.4 | 6.6 | 4.8 | 5.3 |
Corporate debt and other securities | 5.5 | 3.1 | 3.1 | 2.4 |
Debt securities measured at amortised cost | ||||
US Treasury | 8.9 | 3.7 | 3.7 | 2.1 |
US Government agencies | 7.9 | 7.8 | 5.8 | 4.5 |
US Government-sponsored agencies | 2.3 | 3.7 | 3.4 | 2.9 |
UK Government | \u2014 | \u2014 | 0.9 | 4.5 |
Hong Kong Government | \u2014 | 2.6 | \u2014 | \u2014 |
Other governments | 2.7 | 3.5 | 5.3 | \u2014 |
Asset-backed securities | 4.7 | \u2014 | 7.7 | \u2014 |
Corporate debt and other securities | 2.6 | 2.6 | 3.5 | 5.2 |
HSBC Holdings carrying amount of financial investments | ||
2023 | 2022 | |
$m | $m | |
Debt instruments measured at amortised cost | ||
\u2013\u00a0 treasury and other eligible bills | 15,629 | 12,796 |
\u2013\u00a0 debt securities | 3,929 | 6,670 |
At 31 Dec | 19,558 | 19,466 |
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 amortised cost | ||||
US Treasury | 3.2 | 4.3 | \u2014 | \u2014 |
14 | Financial assets designated and otherwise mandatorily measured at fair value through profit or loss |
2023 | 2022\u00b9 | |||||
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 | 2,353 | 101,152 | 103,505 | 3,096 | 91,936 | 95,032 |
\u2013\u00a0 treasury and other eligible bills | 695 | 724 | 1,419 | 649 | 869 | 1,518 |
\u2013\u00a0 debt securities | 1,658 | 60,045 | 61,703 | 2,447 | 56,633 | 59,080 |
\u2013\u00a0 equity securities | \u2014 | 40,383 | 40,383 | \u2014 | 34,434 | 34,434 |
Loans and advances to banks and customers | 371 | 5,495 | 5,866 | \u2014 | 3,455 | 3,455 |
Other | \u2014 | 1,272 | 1,272 | \u2014 | 1,614 | 1,614 |
At 31 Dec | 2,724 | 107,919 | 110,643 | 3,096 | 97,005 | 100,101 |
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 | 9,463,768 | 63,547 | 99,014 | 935 | 99,949 | 99,949 | 780 | 100,729 |
Interest rate | 14,853,397 | 361,312 | 223,534 | 5,119 | 228,653 | 225,443 | 4,080 | 229,523 |
Equities | 677,149 | \u2014 | 14,427 | \u2014 | 14,427 | 17,603 | \u2014 | 17,603 |
Credit | 153,606 | \u2014 | 1,351 | \u2014 | 1,351 | 1,861 | \u2014 | 1,861 |
Commodity and other | 90,007 | \u2014 | 1,820 | \u2014 | 1,820 | 1,542 | \u2014 | 1,542 |
Gross total fair values | 25,237,927 | 424,859 | 340,146 | 6,054 | 346,200 | 346,398 | 4,860 | 351,258 |
Offset (Note 31) | (116,486) | (116,486) | ||||||
At 31 Dec 2023 | 25,237,927 | 424,859 | 340,146 | 6,054 | 229,714 | 346,398 | 4,860 | 234,772 |
Foreign exchange | 8,434,453 | 38,924 | 122,206 | 525 | 122,731 | 123,088 | 166 | 123,254 |
Interest rate | 15,213,232 | 276,589 | 285,449 | 5,066 | 290,515 | 287,876 | 3,501 | 291,377 |
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 | 78,414 | \u2014 | 1,484 | \u2014 | 1,484 | 1,678 | \u2014 | 1,678 |
Gross total fair values | 24,480,504 | 315,513 | 419,555 | 5,591 | 425,146 | 423,082 | 3,667 | 426,749 |
Offset (Note 31) | (140,987) | (140,987) | ||||||
At 31 Dec 2022 | 24,480,504 | 315,513 | 419,555 | 5,591 | 284,159 | 423,082 | 3,667 | 285,762 |
Notional contract amounts and fair values of derivatives by product contract type held by HSBC Holdings with subsidiaries | ||||||||
Notional contract amount | Assets | Liabilities | ||||||
Trading | Hedging | Trading | Hedging | Total | Trading | Hedging | Total | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Foreign exchange | 66,711 | \u2014 | 486 | \u2014 | 486 | 1,705 | \u2014 | 1,705 |
Interest rate | 33,480 | 92,268 | 1,730 | 1,128 | 2,858 | 747 | 3,638 | 4,385 |
At 31 Dec 2023 | 100,191 | 92,268 | 2,216 | 1,128 | 3,344 | 2,452 | 3,638 | 6,090 |
Foreign exchange | 60,630 | \u2014 | 502 | \u2014 | 502 | 1,683 | \u2014 | 1,683 |
Interest rate | 34,322 | 81,873 | 2,386 | 913 | 3,299 | 826 | 4,413 | 5,239 |
At 31 Dec 2022 | 94,952 | 81,873 | 2,888 | 913 | 3,801 | 2,509 | 4,413 | 6,922 |
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 | 172,985 | 3,729 | 2,965 | Derivatives | (1,043) |
At 31 Dec 2023 | 172,985 | 3,729 | 2,965 | (1,043) |
Interest rate3 | 162,062 | 4,973 | 2,573 | Derivatives | 4,064 |
At 31 Dec 2022 | 162,062 | 4,973 | 2,573 | 4,064 |
HSBC hedged item by hedged risk | ||||||||
Hedged item | Ineffectiveness | |||||||
Carrying amount | Accumulated fair value hedge adjustments included in carrying amount1 | Change in fair value2 | 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 | 82,321 | (2,282) | Financial investments - measured at fair value through other comprehensive income | 2,053 | 5 | Net income from financial instruments held for trading or managed on a fair value basis | ||
514 | 32 | Financial investments - measured at amortised cost | 32 | |||||
4,701 | (18) | Loans and advances to customers | 122 | |||||
\u2014 | \u2014 | Reverse repurchase agreements \u2013 non- trading | 15 | |||||
64,269 | (2,147) | Debt securities in issue | (1,179) | |||||
\u2014 | \u2014 | Deposits by banks | \u2014 | |||||
\u2014 | \u2014 | Subordinated liabilities | 5 | |||||
At 31 Dec 2023 | 87,536 | 64,269 | (2,268) | (2,147) | 1,048 | 5 |
HSBC hedged item by hedged risk (continued) | ||||||||
Hedged item | Ineffectiveness | |||||||
Carrying amount | Accumulated fair value hedge adjustments included in carrying amount1 | Change in fair value2 | 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 repurchase agreements \u2013 non-trading | (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) |
HSBC Holdings hedging instrument by hedged risk | |||||
Hedging instrument | |||||
Carrying amount | |||||
Notional amount1,2 | Assets | Liabilities | Balance sheet presentation | Change in fair value3 | |
Hedged risk | $m | $m | $m | $m | |
Interest rate4 | 92,268 | 1,128 | 3,638 | Derivatives | 1,426 |
At 31 Dec 2023 | 92,268 | 1,128 | 3,638 | 1,426 | |
Interest rate4 | 81,873 | 913 | 4,413 | Derivatives | (5,599) |
At 31 Dec 2022 | 81,873 | 913 | 4,413 | (5,599) |
HSBC Holdings hedged item by hedged risk | ||||||||
Hedged item | Ineffectiveness | |||||||
Carrying amount | Accumulated fair value hedge adjustments included in carrying amount1 | Change in fair value2 | 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 | 80,889 | (2,971) | Debt securities in issue | (1,716) | 29 | Net income from financial instruments held for trading or managed on a fair value basis | ||
7,772 | (490) | Loans and advances to banks | 319 | |||||
At 31 Dec 2023 | 7,772 | 80,889 | (490) | (2,971) | (1,397) | 29 | ||
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) |
Hedging instrument by hedged risk | ||||||||
Hedging instrument | Hedged item | Ineffectiveness | ||||||
Carrying amount | Change in fair value2 | Change in fair value3 | Recognised in profit and loss | Profit and loss presentation | ||||
Notional amount1 | Assets | Liabilities | Balance sheet presentation | |||||
Hedged risk | $m | $m | $m | $m | $m | $m | ||
Foreign currency | 29,772 | 935 | 257 | Derivatives | 977 | 977 | \u2014 | Net income from financial instruments held for trading or managed on a fair value basis |
Interest rate | 188,327 | 1,390 | 1,116 | Derivatives | 1,542 | 1,512 | 30 | |
At 31 Dec 2023 | 218,099 | 2,325 | 1,373 | 2,519 | 2,489 | 30 |
Foreign currency | 8,781 | 418 | 166 | Derivatives | 659 | 659 | \u2014 | Net income from financial instruments held for trading or managed on a fair value basis |
Interest rate | 114,527 | 93 | 950 | Derivatives | (4,997) | (4,973) | (24) | |
At 31 Dec 2022 | 123,308 | 511 | 1,116 | (4,338) | (4,314) | (24) |
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 2023 | (3,387) | (421) |
Fair value gains/(losses) | 1,512 | 977 |
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 | 2,196 | (718) |
Income taxes | (937) | (29) |
Others | (285) | 59 |
Cash flow hedging reserve at 31 Dec 2023 | (901) | (132) |
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 loss | 325 | (926) |
Income taxes | 1,123 | 28 |
Others | 130 | 23 |
Cash flow hedging reserve at 31 Dec 2022 | (3,387) | (421) |
Hedges of net investment in foreign operations | ||||||
Carrying amount | Nominal amount | Amounts recognised in OCI1 | Change in fair value2 | Hedge ineffectiveness recognised in income statement | ||
Derivative assets | Derivative liabilities | |||||
Description of hedged risk | $m | $m | $m | $m | $m | $m |
2023 | ||||||
Pound sterling-denominated structural foreign exchange | (404) | 16,415 | 604 | (843) | \u2014 | |
Swiss franc-denominated structural foreign exchange | (23) | 526 | 49 | (62) | \u2014 | |
Hong Kong dollar-denominated structural foreign exchange | \u2014 | 5,792 | \u2014 | 2 | \u2014 | |
Other structural foreign exchange3 | (96) | 11,042 | 477 | 102 | \u2014 | |
Total | \u2014 | (523) | 33,775 | 1,130 | (801) | \u2014 |
2022 | ||||||
Pound sterling-denominated structural foreign exchange | 264 | \u2014 | 14,000 | 1,447 | 1,573 | \u2014 |
Swiss franc-denominated structural foreign exchange | \u2014 | (21) | 727 | 111 | 10 | \u2014 |
Hong Kong dollar-denominated structural foreign exchange | \u2014 | (19) | 4,597 | (2) | (7) | \u2014 |
Other structural foreign exchange3 | \u2014 | (117) | 10,819 | 375 | 369 | \u2014 |
Total | 264 | (157) | 30,143 | 1,931 | 1,945 | \u2014 |
Hedging instrument impacted by Ibor reform | |||||||
Hedging instrument | |||||||
Impacted by Ibor reform | Not impacted by Ibor reform | Notional amount3 | |||||
\u20ac1 | \u00a3 | $ | Other2 | Total | |||
$m | $m | $m | $m | $m | $m | $m | |
Fair value hedges | 16,907 | \u2014 | \u2014 | 4,384 | 21,291 | 151,694 | 172,985 |
Cash flow hedges | 10,850 | \u2014 | \u2014 | 3,504 | 14,354 | 173,973 | 188,327 |
At 31 Dec 2023 | 27,757 | \u2014 | \u2014 | 7,888 | 35,645 | 325,667 | 361,312 |
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 |
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 | 19,614 | \u2014 | \u2014 | 583 | 20,197 | 72,071 | 92,268 |
At 31 Dec 2023 | 19,614 | \u2014 | \u2014 | 583 | 20,197 | 72,071 | 92,268 |
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 |
17 | Assets pledged, collateral received and assets transferred |
Financial assets pledged as collateral | ||
2023 | 2022 | |
$m | $m | |
Treasury bills and other eligible securities | 20,504 | 18,364 |
Loans and advances to banks | 13,636 | 10,198 |
Loans and advances to customers | 27,490 | 27,627 |
Debt securities | 88,367 | 60,542 |
Equity securities | 40,280 | 26,902 |
Other | 61,223 | 67,576 |
Assets pledged at 31 Dec | 251,500 | 211,209 |
Financial assets pledged as collateral which the counterparty has the right to sell or repledge | ||
2023 | 2022 | |
$m | $m | |
Trading assets | 77,847 | 56,894 |
Financial investments | 39,324 | 27,841 |
At 31 Dec | 117,171 | 84,735 |
Transferred financial assets not qualifying for full derecognition and associated financial liabilities | ||
Carrying amount of: | ||
Transferred assets | Associated liabilities | |
$m | $m | |
At 31 Dec 2023 | ||
Repurchase agreements | 81,486 | 74,517 |
Securities lending agreements | 46,663 | 3,826 |
At 31 Dec 2022 | ||
Repurchase agreements | 52,604 | 48,501 |
Securities lending agreements | 39,134 | 4,613 |
18 | Interests in associates and joint ventures |
Carrying amount of HSBC\u2019s interests in associates and joint ventures | ||
2023 | 2022 | |
$m | $m | |
Interests in associates | 27,200 | 29,127 |
Interests in joint ventures | 144 | 127 |
Interests in associates and joint ventures | 27,344 | 29,254 |
Principal associates of HSBC | |||||
2023 | 2022 | ||||
Carrying amount | Fair value1 | Carrying amount | Fair value1 | ||
$m | $m | $m | $m | ||
Bank of Communications Co., Limited | 21,210 | 8,812 | 23,307 | 8,141 | |
Saudi Awwal Bank | 4,659 | 6,438 | 4,494 | 6,602 |
At 31 Dec 2023 | |||
Jurisdiction of incorporation and principal place of business | Principal activity | HSBC\u2019s interest1 % | |
Bank of Communications Co., Limited | Mainland China | Banking services | 19.03 |
Saudi Awwal Bank | Saudi Arabia | Banking services | 31.00 |
Share of profit in associates and joint ventures | ||
2023 | 2022 | |
$m | $m | |
Bank of Communications Co., Limited | 2,250 | 2,377 |
Saudi Awwal Bank | 538 | 342 |
Other associates and joint ventures | 19 | 4 |
Share of profit in associates and joint ventures | 2,807 | 2,723 |
Less: Impairment of interest in BoCom | (3,000) | \u2014 |
At 31 Dec 2023 | At 31 Dec 2022 | |||||
VIU | Carrying value | Fair value | VIU | Carrying value | Fair value | |
$bn | $bn | $bn | $bn | $bn | $bn | |
BoCom | 21.2 | 21.2 | 8.8 | 23.5 | 23.3 | 8.1 |
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 2023 | ||||||
Long-term profit growth rate1 | 58 | 3.3 | 24.5 | (79) | (3.4) | 17.8 |
Long-term asset growth rate1 | (79) | 4.5 | 25.7 | 58 | (4.0) | 17.2 |
Discount rate | (110) | 4.5 | 25.7 | 280 | (6.1) | 15.1 |
Expected credit losses as a percentage of loans and advances to customers | 2023 to 2027: 78 2028 onwards: 91 | 2.9 | 24.1 | 2023 to 2027: 120 2028 onwards: 104 | (4.4) | 16.8 |
Risk-weighted assets as a percentage of total assets | (150) | 0.9 | 22.1 | 216 | (1.6) | 19.6 |
Loans and advances to customers growth rate | (213) | 3.2 | 24.4 | 207 | (2.9) | 18.3 |
Operating income growth rate | 57 | 2.6 | 23.8 | (81) | (2.6) | 18.6 |
Cost-income ratio | (212) | 0.8 | 22.0 | 99 | (2.9) | 18.3 |
Long-term effective tax rate | (426) | 1.6 | 22.8 | 1,000 | (3.5) | 17.7 |
Capital requirements \u2013 capital adequacy ratio | \u2014 | \u2014 | 21.2 | 215 | (7.5) | 13.7 |
Capital requirements \u2013 tier 1 capital adequacy ratio | \u2014 | \u2014 | 21.2 | 248 | (3.7) | 17.5 |
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 loans and advances to customers | 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 |
Loans and advances to customers growth rate | (75) | 1.1 | 24.6 | 295 | (3.2) | 20.3 |
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 |
Selected balance sheet information of BoCom | ||
At 30 Sep | At 31 Dec | |
2023 | 2022 | |
$m | $m | |
Cash and balances at central banks | 112,800 | 116,942 |
Due from and placements with banks and other financial institutions | 100,464 | 100,160 |
Loans and advances to customers | 1,087,613 | 1,035,151 |
Other financial assets | 587,949 | 583,898 |
Other assets | 59,215 | 48,796 |
Total assets | 1,948,041 | 1,884,947 |
Due to and placements from banks and other financial institutions | 292,065 | 295,205 |
Deposits from customers | 1,216,611 | 1,153,184 |
Other financial liabilities | 251,246 | 249,230 |
Other liabilities | 36,776 | 37,153 |
Total liabilities | 1,796,698 | 1,734,772 |
Total equity | 151,343 | 150,175 |
Reconciliation of BoCom\u2019s total shareholders\u2019 equity to the carrying amount in HSBC\u2019s consolidated financial statements | ||
At 30 Sep | ||
2023 | 2022 | |
$m | $m | |
HSBC\u2019s share of total shareholders\u2019 equity | 23,746 | 22,828 |
Goodwill originally arising on acquisition | 464 | 479 |
Impairment | (3,000) | \u2014 |
Carrying amount\u00a0 | 21,210 | 23,307 |
Selected income statement information of BoCom | ||
For the 9 months ended 30 Sep | ||
2023 | 2022 | |
$m | $m | |
Net interest income | 17,519 | 19,004 |
Net fee and commission income | 4,815 | 5,181 |
Credit and impairment losses | (6,836) | (7,641) |
Depreciation and amortisation | (1,977) | (1,785) |
Tax expense | (552) | (436) |
Profit for the year | 9,835 | 10,102 |
Other comprehensive income | 631 | (37) |
Total comprehensive income | 10,466 | 10,065 |
Dividends received from BoCom | 736 | 749 |
Transactions and balances during the year with associates and joint ventures | ||||
2023 | 2022 | |||
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 | 98 | 94 | 140 | 90 |
Unsubordinated amounts due from associates | 7,907 | 5,910 | 7,378 | 6,594 |
Amounts due to associates | 3,002 | 1,668 | 2,548 | 1,295 |
Amounts due to joint ventures | 95 | 61 | 57 | 53 |
Fair value of derivative assets with associates | 1,514 | 795 | 1,205 | 841 |
Fair value of derivative liabilities with associates | 4,388 | 2,962 | 4,319 | 3,648 |
Guarantees and commitments | 503 | 331 | 513 | 293 |
Associates | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
Bank of Communications Co., Ltd. | 19.03 | 168 | |
Barrowgate Limited | 15.31 | 169 | |
BGF Group plc | 24.62 | 170 | |
Bud Financial Limited | 4.84 | 1, 171 | |
Canara HSBC Life Insurance Company Limited | 26.00 | 172 | |
Contour Pte Ltd | 9.87 | 1, 173 | |
Divido Financial Services Limited | 7.70 | 1, 174 | |
Electronic Payment Services Company (Hong Kong) Limited | 38.66 | 48 | |
Episode Six Inc. | 5.69 | 1, 175 | |
EPS Company (Hong Kong) Limited | 38.66 | 48 | |
Euro Secured Notes Issuer | 16.67 | 176 | |
HSBC Jintrust Fund Management Company Limited | N/A | 0, 177 | |
HSBC UK Covered Bonds (LM) Limited | 20.00 | 1, 178 | |
HSBC UK Covered Bonds LLP | N/A | 0, 1, 18 | |
Liquidity Match LLC | N/A | 0, 1, 179 | |
London Precious Metals Clearing Limited | 30.00 | 1, 180 | |
MENA Infrastructure Fund (GP) Ltd | 33.33 | 181 | |
Monese Ltd | 5.39 | 1, 182 | |
Quantexa Ltd | 9.36 | 183 | |
RadiantESG Global Investors LLC | N/A | 0, 1, 184 | |
Saudi Awwal Bank | 31.00 | 186 | |
Services Epargne Entreprise | 14.18 | 187 | |
The London Gold Market Fixing Limited | N/A | 0, 188 | |
Threadneedle Software Holdings Limited | 7.10 | 1, 189 | |
Trade Information Network Limited | 12.76 | 1, 161 | |
Trinkaus Europa Immobilien-Fonds Nr. 7 Frankfurt Mertonviertel KG | N/A | 0, 92 | |
We Trade Innovation Designated Activity Company (In Liquidation) | 9.88 | 1, 190 |
18 | Interests in associates and joint ventures |
Carrying amount of HSBC\u2019s interests in associates and joint ventures | ||
2023 | 2022 | |
$m | $m | |
Interests in associates | 27,200 | 29,127 |
Interests in joint ventures | 144 | 127 |
Interests in associates and joint ventures | 27,344 | 29,254 |
Transactions and balances during the year with associates and joint ventures | ||||
2023 | 2022 | |||
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 | 98 | 94 | 140 | 90 |
Unsubordinated amounts due from associates | 7,907 | 5,910 | 7,378 | 6,594 |
Amounts due to associates | 3,002 | 1,668 | 2,548 | 1,295 |
Amounts due to joint ventures | 95 | 61 | 57 | 53 |
Fair value of derivative assets with associates | 1,514 | 795 | 1,205 | 841 |
Fair value of derivative liabilities with associates | 4,388 | 2,962 | 4,319 | 3,648 |
Guarantees and commitments | 503 | 331 | 513 | 293 |
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, 161 | |
Global Payments Technology Mexico S.A. De C.V | 50.00 | 162 | |
HCM Holdings Limited (In Liquidation) | 50.99 | 19 | |
MK HoldCo Limited | 50.32 | 1, 163 | |
Pentagreen Capital Pte. Ltd | 50.00 | 1, 164 | |
ProServe Bermuda Limited | 50.00 | 165 | |
The London Silver Market Fixing Limited | N/A | 0, 1, 166 | |
Vaultex UK Limited | 50.00 | 167 |
At 31 Dec 2023 | At 31 Dec 2022 | |||||
VIU | Carrying value | Fair value | VIU | Carrying value | Fair value | |
$bn | $bn | $bn | $bn | $bn | $bn | |
BoCom | 21.2 | 21.2 | 8.8 | 23.5 | 23.3 | 8.1 |
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 2023 | ||||||
Long-term profit growth rate1 | 58 | 3.3 | 24.5 | (79) | (3.4) | 17.8 |
Long-term asset growth rate1 | (79) | 4.5 | 25.7 | 58 | (4.0) | 17.2 |
Discount rate | (110) | 4.5 | 25.7 | 280 | (6.1) | 15.1 |
Expected credit losses as a percentage of loans and advances to customers | 2023 to 2027: 78 2028 onwards: 91 | 2.9 | 24.1 | 2023 to 2027: 120 2028 onwards: 104 | (4.4) | 16.8 |
Risk-weighted assets as a percentage of total assets | (150) | 0.9 | 22.1 | 216 | (1.6) | 19.6 |
Loans and advances to customers growth rate | (213) | 3.2 | 24.4 | 207 | (2.9) | 18.3 |
Operating income growth rate | 57 | 2.6 | 23.8 | (81) | (2.6) | 18.6 |
Cost-income ratio | (212) | 0.8 | 22.0 | 99 | (2.9) | 18.3 |
Long-term effective tax rate | (426) | 1.6 | 22.8 | 1,000 | (3.5) | 17.7 |
Capital requirements \u2013 capital adequacy ratio | \u2014 | \u2014 | 21.2 | 215 | (7.5) | 13.7 |
Capital requirements \u2013 tier 1 capital adequacy ratio | \u2014 | \u2014 | 21.2 | 248 | (3.7) | 17.5 |
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 loans and advances to customers | 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 |
Loans and advances to customers growth rate | (75) | 1.1 | 24.6 | 295 | (3.2) | 20.3 |
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 |
Key assumptions in VIU calculation \u2013 significant CGUs at 1 October 2023 | ||||||||||
Carrying amount at 1\u00a0Oct 2023 | of which goodwill | Value in use at 1\u00a0Oct 2023 | Discount rate | Growth rate beyond initial cash flow | Carrying amount at 1\u00a0Oct\u00a02022 | of which goodwill | Value in use at 1\u00a0Oct 2022 | Discount rate | Growth rate beyond initial cash flow projections | |
$m | $m | $m | % | % | $m | $m | $m | % | % | |
HSBC UK Bank plc \u2013 WPB1 | 11,167 | 2,597 | 27,933 | 10.4 | 2.0 | N/A | N/A | N/A | N/A | N/A |
Europe \u2013 WPB1 | N/A | N/A | N/A | N/A | N/A | 15,215 | 2,643 | 46,596 | 9.9 | 2.0 |
19 | Investments in subsidiaries |
Main subsidiaries of HSBC Holdings1 | |||
At 31 Dec 2023 | |||
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 Limited2 | 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, North Africa and T\u00fcrkiye | |||
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 2023 | $m | % | % |
HSBC North America Holdings Limited | 12,756 | 10.50 | 2.17 |
At 31 Dec 2022 | |||
HSBC North America Holdings Limited | 18,363 | 10.00 | 2.22 |
Reasonably possible changes in key assumptions | ||||
Input | Key assumptions | Associated risks | Reasonably possible change | |
Investment | ||||
HSBC North America Holdings Limited (subsidiary of HSBC Overseas Holdings (UK) Limited) | Free cash flows projections | \u2013 Level of interest rates and yield curves. \u2013 Competitors\u2019 positions within the market. | \u2013 Strategic actions relating to revenue and costs are not achieved. | \u2013 Free cash flow projections decrease by 10%. |
Discount rate | \u2013 Discount rate used is a reasonable estimate of a suitable market rate for the profile of the business. | \u2013 External evidence arises to suggest that the rate used is not appropriate to the business. | \u2013 Discount rate decreases by 1%. \u2013 Discount rate increases by 1%. |
Sensitivity of VIU to reasonably possible changes in key assumptions | |
In $bn (unless otherwise stated) | HSBC North America Holdings Limited |
At 31 December 2023 | |
VIU | 12.8 |
Impact on VIU | |
100bps decrease in the discount rate \u2013 single variable1 | 1.6 |
100bps increase in the discount rate \u2013 single variable1, 2\u00a0 | (1.2) |
10% decrease in forecast profitability \u2013 single variable1, 2 | (1.3) |
Subsidiaries with significant non-controlling interests | ||
2023 | 2022\u00b9 | |
Hang Seng Bank Limited | ||
Proportion of ownership interests and voting rights held by non-controlling interests (%)2 | 37.86 | 37.86 |
Place of business | Hong Kong | Hong Kong |
$m | $m | |
Profit attributable to non-controlling interests | 889 | 574 |
Accumulated non-controlling interests of the subsidiary | 6,877 | 6,513 |
Dividends paid to non-controlling interests | 490 | 361 |
Summarised financial information: | ||
\u2013\u00a0 total assets | 214,321 | 235,630 |
\u2013\u00a0 total liabilities | 194,621 | 216,917 |
\u2013\u00a0 net operating income before changes in expected credit losses and other credit impairment charges | 5,210 | 4,379 |
\u2013\u00a0 profit for the year | 2,356 | 1,518 |
\u2013\u00a0 total comprehensive income for the year | 2,723 | 1,428 |
Transactions and balances during the year with subsidiaries | ||||
2023 | 2022 | |||
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 | 8,396 | 7,029 | 7,421 | 3,210 |
Financial assets with HSBC undertakings designated and otherwise mandatorily measured at fair value | 60,309 | 59,879 | 52,322 | 52,322 |
Derivatives | 4,010 | 3,344 | 5,380 | 3,801 |
Loans and advances to HSBC undertakings | 28,213 | 27,354 | 26,765 | 26,765 |
Prepayments, accrued income and other assets | 7,417 | 5,145 | 4,893 | 4,803 |
Investments in subsidiaries | 167,542 | 159,478 | 167,542 | 167,542 |
Total related party assets at 31 Dec | 275,887 | 262,229 | 264,323 | 258,443 |
Liabilities | ||||
Amounts owed to HSBC undertakings | 179 | 168 | 314 | 314 |
Derivatives | 9,309 | 6,090 | 8,318 | 6,922 |
Accruals, deferred income and other liabilities | 505 | 341 | 1,375 | 429 |
Subordinated liabilities | 927 | 913 | 900 | 900 |
Total related party liabilities at 31 Dec | 10,920 | 7,512 | 10,907 | 8,565 |
Guarantees and commitments | 7,723 | 7,723 | 17,707 | 17,707 |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | ||||
452 TALF SPV LLC | 100.00 | 1, 15 | ||||
AI Nominees (UK) One Limited | 100.00 | 1, 16 | ||||
AI Nominees (UK) Two Limited | 100.00 | 116 | ||||
Almacenadora Banpacifico S.A. (In Liquidation) | 99.99 | 17 | ||||
Assetfinance December (F) Limited | 100.00 | 18 | ||||
Assetfinance December (H) Limited | 100.00 | 16 | ||||
Assetfinance December (P) Limited | 100.00 | 16 | ||||
Assetfinance December (R) Limited | 100.00 | 16 | ||||
Assetfinance June (A) Limited | 100.00 | 16 | ||||
Assetfinance June (D) Limited | 100.00 | 18 | ||||
Assetfinance Limited (In Liquidation) | 100.00 | 19 | ||||
Assetfinance March (B) Limited | 100.00 | 20 | ||||
Assetfinance March (D) Limited | 100.00 | 18 | ||||
Assetfinance March (F) Limited | 100.00 | 16 | ||||
Assetfinance September (F) Limited | 100.00 | 16 | ||||
Assetfinance September (G) Limited | 100.00 | 18 | ||||
B&Q Financial Services Limited | 100.00 | 16 | ||||
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, 24 | ||||
Beijing HSBC Real Estate Leasing Company Limited | 100.00 | 1, 12, 25 | ||||
Beijing Miyun HSBC Rural Bank Company Limited | 100.00 | 12, 26 | ||||
BentallGreenOak China Real Estate Investments, L.P. | N/A | 0, 1, 27 | ||||
Canada Crescent Nominees (UK) Limited | 100.00 | 16 | ||||
Canada Square Nominees (UK) Limited | 100.00 | 16 | ||||
Canada Water Nominees (UK) Limited (In Liquidation) | 100.00 | 19 | ||||
Capco/Cove, Inc. | 100.00 | 28 | ||||
Card-Flo #1, Inc. | 100.00 | 15 | ||||
Card-Flo #3, Inc. | 100.00 | 15 | ||||
CC&H Holdings LLC | 100.00 | 29 | ||||
CCF & Partners Asset Management Limited | 100.00 | (99.99) | 16 | |||
CCF Holding (Liban) S.A.L. (In Liquidation) | 74.99 | 30 | ||||
Charterhouse Administrators (D.T.) Limited | 100.00 | (99.99) | 16 | |||
Charterhouse Management Services Limited | 100.00 | (99.99) | 16 | |||
Charterhouse Pensions Limited | 100.00 | 16 | ||||
Chongqing Dazu HSBC Rural Bank Company Limited | 100.00 | 12, 31 | ||||
Chongqing Fengdu HSBC Rural Bank Company Limited | 100.00 | 12, 32 | ||||
Chongqing Rongchang HSBC Rural Bank Company Limited | 100.00 | 12, 33 | ||||
COIF Nominees Limited | N/A | 0, 16 | ||||
Corsair IV Financial Services Capital Partners - B LP | N/A | 0, 1, 34 | ||||
Dalian Pulandian HSBC Rural Bank Company Limited | 100.00 | 12, 35 | ||||
Decision One Mortgage Company, LLC | N/A | 0, 36 | ||||
Dempar 1 | 100.00 | (99.99) | 4, 37 | |||
Desarrollo Turistico, S.A. de C.V. (In Liquidation) | 100.00 | (99.99) | 17 | |||
Electronic Data Process M\u00e9xico, S.A. de C.V. | 100.00 | 1, 38 | ||||
Eton Corporate Services Limited | 100.00 | 22 | ||||
Flandres Contentieux S.A. | 100.00 | (99.99) | 4, 37 | |||
Fonci\u00e8re Elys\u00e9es | 100.00 | (99.99) | 4, 37 | |||
Fujian Yongan HSBC Rural Bank Company Limited | 100.00 | 12, 39 | ||||
Fulcher Enterprises Company Limited | 100.00 | (62.14) | 40 | |||
Fundacion HSBC, A.C. | 100.00 | (99.99) | 11, 17 | |||
Giller Ltd. | 100.00 | 28 |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
GPIF Co-Investment, LLC | N/A | 0, 15 | |
Griffin International Limited | 100.00 | 16 | |
Grupo Financiero HSBC, S. A. de C. V. | 99.99 | 17 | |
Guangdong Enping HSBC Rural Bank Company Limited | 100.00 | 12, 41 | |
Guangzhou HSBC Real Estate Company Ltd (\u5e7f\u5dde\u6c47\u4e30\u623f\u5730\u4ea7\u6709\u9650\u516c\u53f8) | 100.00 | 1, 12, 42 | |
Hang Seng (Nominee) Limited | 100.00 | (62.14) | 40 |
Hang Seng Bank (China) Limited | N/A | 0, 12, 43 | |
Hang Seng Bank (Trustee) Limited | 100.00 | (62.14) | 40 |
Hang Seng Bank Limited | 62.14 | 40 | |
Hang Seng Bullion Company Limited | 100.00 | (62.14) | 40 |
Hang Seng Credit Limited | 100.00 | (62.14) | 40 |
Hang Seng Data Services Limited | 100.00 | (62.14) | 40 |
Hang Seng Finance Limited | 100.00 | (62.14) | 40 |
Hang Seng Financial Information Limited | 100.00 | (62.14) | 40 |
Hang Seng Indexes (Netherlands) B.V. | N/A | 0, 1, 44 | |
Hang Seng Indexes Company Limited | 100.00 | (62.14) | 40 |
Hang Seng Insurance Company Limited | 100.00 | (62.14) | 40 |
Hang Seng Investment Management Limited | 100.00 | (62.14) | 40 |
Hang Seng Investment Services Limited | 100.00 | (62.14) | 40 |
Hang Seng Qianhai Fund Management Company Limited | N/A | 0, 12, 45 | |
Hang Seng Real Estate Management Limited | 100.00 | (62.14) | 40 |
Hang Seng Securities Limited | 100.00 | (62.14) | 40 |
Hang Seng Security Management Limited | 100.00 | (62.14) | 40 |
HASE Wealth Limited | 100.00 | (62.14) | 1, 40 |
Haseba Investment Company Limited | 100.00 | (62.14) | 40 |
HFC Bank Limited (In Liquidation) | 100.00 | 19 | |
High Time Investments Limited | 100.00 | (62.14) | 40 |
HLF | 100.00 | (99.99) | 4, 37 |
Honey Blue Enterprises Limited (\u4ea8\u4eac\u4f01\u696d\u6709 \u9650\u516c\u53f8) | 100.00 | 1, 46 | |
Honey Green Enterprises Ltd. | 100.00 | 47 | |
Honey Grey Enterprises Limited (\u4ea8\u7a57\u4f01\u696d\u6709 \u9650\u516c\u53f8) | 100.00 | 1, 48 | |
Honey Silver Enterprises Limited (\u4ea8\u6df1\u4f01\u696d\u6709 \u9650\u516c\u53f8) | 100.00 | 1, 48 | |
Household International Europe Limited (In Liquidation) | 100.00 | 5, 49 | |
Household Pooling Corporation | 100.00 | 50 | |
Housing (USA) LLP | N/A | 0, 1, 29 | |
HSBC (BGF) Investments Limited | 100.00 | 16 | |
HSBC (General Partner) Limited | 100.00 | 2, 51 | |
HSBC (Guernsey) GP PCC Limited | 100.00 | 22 | |
HSBC (Kuala Lumpur) Nominees Sdn Bhd | 100.00 | 52 | |
HSBC (Malaysia) Trustee Berhad | 100.00 | 53 | |
HSBC (Singapore) Nominees Pte Ltd | 100.00 | 54 | |
HSBC Agency (India) Private Limited | 100.00 | 55 | |
HSBC Alternative Investments Limited | 100.00 | 16 | |
HSBC Amanah Malaysia Berhad | 100.00 | 52 | |
HSBC Americas Corporation (Delaware) | 100.00 | 15 | |
HSBC Argentina Holdings S.A. | 100.00 | 56 | |
HSBC Asia Holdings B.V. | 100.00 | 16 | |
HSBC Asia Holdings Limited | 100.00 | 2, 48 | |
HSBC Asia Pacific Holdings (UK) Limited | 100.00 | 5, 16 | |
HSBC Asset Finance (UK) Limited | 100.00 | 16 | |
HSBC Asset Finance M.O.G. Holdings (UK) Limited | 100.00 | 16 | |
HSBC Asset Management (Fund Services UK) Limited | 100.00 | 1, 16 | |
HSBC Asset Management (India) Private Limited | 99.99 | 3, 57 | |
HSBC Asset Management (Japan) Limited | 100.00 | 58 | |
HSBC Assurances Vie (France) | 100.00 | (99.99) | 4, 59 |
HSBC Australia Holdings Pty Limited | 100.00 | 5, 60 |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
HSBC BANK (CHILE) | 100.00 | 61 | |
HSBC Bank (China) Company Limited | N/A | 0, 12, 62 | |
HSBC Bank (General Partner) Limited | 100.00 | 51 | |
HSBC Bank (Mauritius) Limited | 100.00 | 63 | |
HSBC Bank (RR) (Limited Liability Company) | N/A | 0, 13, 64 | |
HSBC Bank (Singapore) Limited | 100.00 | 54 | |
HSBC Bank (Taiwan) Limited | 100.00 | 65 | |
HSBC Bank (Uruguay) S.A. | 100.00 | 66 | |
HSBC Bank (Vietnam) Ltd. | 100.00 | 67 | |
HSBC Bank A.S. | 100.00 | (99.99) | 68 |
HSBC Bank Argentina S.A. | 99.99 | 56 | |
HSBC Bank Armenia cjsc | 100.00 | 69 | |
HSBC Bank Australia Limited | 100.00 | 60 | |
HSBC Bank Bermuda Limited | 100.00 | 23 | |
HSBC Bank Canada | 100.00 | 3, 70 | |
HSBC Bank Capital Funding (Sterling 1) LP | N/A | 0, 51 | |
HSBC Bank Capital Funding (Sterling 2) LP | N/A | 0, 51 | |
HSBC Bank Egypt S.A.E | 99.62 | (94.54) | 71 |
HSBC Bank Malaysia Berhad | 100.00 | 3, 52 | |
HSBC Bank Malta p.l.c. | 70.03 | 72 | |
HSBC Bank Middle East Limited | 100.00 | 3, 73 | |
HSBC Bank Middle East Limited Representative Office Morocco SARL (In Liquidation) | 100.00 | 74 | |
HSBC Bank Pension Trust (UK) Limited | 100.00 | 16 | |
HSBC Bank plc | 100.00 | 2, 3, 16 | |
HSBC Bank USA, National Association | 100.00 | 3, 75 | |
HSBC Branch Nominee (UK) Limited | 100.00 | 18 | |
HSBC Brasil Holding S.A. | 100.00 | 21 | |
HSBC Broking Forex (Asia) Limited | 100.00 | 48 | |
HSBC Broking Futures (Asia) Limited | 100.00 | 48 | |
HSBC Broking Futures (Hong Kong) Limited | 100.00 | 48 | |
HSBC Broking Securities (Asia) Limited | 100.00 | 48 | |
HSBC Broking Securities (Hong Kong) Limited | 100.00 | 48 | |
HSBC Broking Services (Asia) Limited | 100.00 | 48 | |
HSBC Canadian Covered Bond (Legislative) GP Inc. | 100.00 | 76 | |
HSBC Canadian Covered Bond (Legislative) Guarantor Limited Partnership | N/A | 0, 76 | |
HSBC Capital (USA), Inc. | 100.00 | 3, 15 | |
HSBC Capital Funding (Dollar 1) L.P. | N/A | 0, 51 | |
HSBC Card Services Inc. | 100.00 | 15 | |
HSBC Casa de Bolsa, S.A. de C.V., Grupo Financiero HSBC | 100.00 | (99.99) | 17 |
HSBC Cayman Limited | 100.00 | 192 | |
HSBC Cayman Services Limited | 100.00 | 77 | |
HSBC City Funding Holdings (In Liquidation) | 100.00 | 19 | |
HSBC Client Holdings Nominee (UK) Limited | 100.00 | 16 | |
HSBC Client Nominee (Jersey) Limited | 100.00 | 78 | |
HSBC Columbia Funding, LLC | N/A | 0, 15 | |
HSBC Continental Europe | 99.99 | 4, 37 | |
HSBC Corporate Advisory (Malaysia) Sdn Bhd | 100.00 | 52 | |
HSBC Corporate Finance (Hong Kong) Limited | 100.00 | 48 | |
HSBC Corporate Secretary (UK) Limited | 100.00 | 1, 2, 16 | |
HSBC Corporate Services (Shanghai) Co., Ltd | N/A | 0, 1, 79 | |
HSBC Corporate Trustee Company (UK) Limited | 100.00 | 16 | |
HSBC Custody Nominees (Australia) Limited | 100.00 | 60 | |
HSBC Custody Services (Guernsey) Limited | 100.00 | 22 | |
HSBC Daisy Investments (Mauritius) Limited | 100.00 | 80 | |
HSBC Diversified Loan Fund General Partner Sarl | N/A | 0, 81 | |
HSBC Electronic Data Processing (Guangdong) Limited | N/A | 0, 12, 82 | |
HSBC Electronic Data Processing (Malaysia) Sdn Bhd | 100.00 | 83 | |
HSBC Electronic Data Processing (Philippines), Inc. | 99.99 | 84 |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
HSBC Electronic Data Processing India Private Limited | 100.00 | 85 | |
HSBC Electronic Data Processing Lanka (Private) Limited | 100.00 | 86 | |
HSBC Electronic Data Service Delivery (Egypt) S.A.E. | 100.00 | 87 | |
HSBC Epargne Entreprise (France) | 100.00 | (99.99) | 4, 59 |
HSBC Equipment Finance (UK) Limited | 100.00 | 18 | |
HSBC Equity (UK) Limited | 100.00 | 16 | |
HSBC Europe B.V. | 100.00 | 16 | |
HSBC Executor & Trustee Company (UK) Limited | 100.00 | 18 | |
HSBC Factoring (France) | 100.00 | (99.99) | 4, 37 |
HSBC Finance (Netherlands) | 100.00 | 2, 16 | |
HSBC Finance Corporation | 100.00 | 3, 15 | |
HSBC Finance Limited | 100.00 | 16 | |
HSBC Finance Mortgages Inc. | 100.00 | 88 | |
HSBC Finance Transformation (UK) Limited | 100.00 | 16 | |
HSBC Financial Advisors Singapore Pte. Ltd. | 100.00 | 1, 54 | |
HSBC Financial Services (Lebanon) s.a.l. | 99.80 | 89 | |
HSBC Financial Services (Uruguay) S.A. (In Liquidation) | 100.00 | 90 | |
HSBC FinTech Services (Shanghai) Company Limited | N/A | 0, 1, 91 | |
HSBC Global Asset Management (Bermuda) Limited | 100.00 | 3, 23 | |
HSBC Global Asset Management (Canada) Limited | 100.00 | 70 | |
HSBC Global Asset Management (Deutschland) GmbH | 100.00 | (99.99) | 6, 92 |
HSBC Global Asset Management (France) | 100.00 | (99.99) | 4, 59 |
HSBC Global Asset Management (Hong Kong) Limited | 100.00 | 24 | |
HSBC Global Asset Management (Malta) Limited | 100.00 | (70.03) | 93 |
HSBC Global Asset Management (M\u00e9xico), S.A. de C.V., Sociedad Operadora de Fondos de Inversi\u00f3n, Grupo Financiero HSBC | 100.00 | (99.99) | 17 |
HSBC Global Asset Management (Singapore) Limited | 100.00 | 54 | |
HSBC Global Asset Management (Switzerland) AG | 100.00 | 4, 94 | |
HSBC Global Asset Management (Taiwan) Limited | 100.00 | 95 | |
HSBC Global Asset Management (UK) Limited | 100.00 | 16 | |
HSBC Global Asset Management (USA) Inc. | 100.00 | 96 | |
HSBC Global Asset Management Argentina S.A. Sociedad Gerente de Fondos Comunes de Inversi\u00f3n | 100.00 | (99.99) | 97 |
HSBC Global Asset Management Holdings (Bahamas) Limited | 100.00 | 98 | |
HSBC Global Asset Management Limited | 100.00 | 2, 16 | |
HSBC Global Custody Nominee (UK) Limited | 100.00 | 16 | |
HSBC Global Custody Proprietary Nominee (UK) Limited | 100.00 | 1, 16 | |
HSBC Global Services (Canada) Limited | 100.00 | 88 | |
HSBC Global Services (China) Holdings Limited | 100.00 | 16 | |
HSBC Global Services (Hong Kong) Limited | 100.00 | 99 | |
HSBC Global Services (UK) Limited | 100.00 | 16 | |
HSBC Global Services Limited | 100.00 | 2, 16 | |
HSBC Group Management Services Limited | 100.00 | 16 | |
HSBC Group Nominees UK Limited | 100.00 | 2, 16 | |
HSBC Holdings B.V. | 100.00 | 16 | |
HSBC IM Pension Trust Limited | 100.00 | 16 | |
HSBC Infrastructure Debt GP 1 S.\u00e0 r.l. | N/A | 0, 1, 100 | |
HSBC Infrastructure Debt GP 2 S.\u00e0 r.l. | N/A | 0, 1, 100 |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
HSBC Infrastructure Limited (In Liquidation) | 100.00 | 19 | |
HSBC Innovation Bank Limited | 100.00 | 1, 101 | |
HSBC INSN (Non Operating) Pte. Ltd. (In Liquidation) | 100.00 | 54 | |
HSBC Institutional Trust Services (Asia) Limited | 100.00 | 48 | |
HSBC Institutional Trust Services (Bermuda) Limited | 100.00 | 23 | |
HSBC Institutional Trust Services (Mauritius) Limited | 100.00 | 102 | |
HSBC Institutional Trust Services (Singapore) Limited | 100.00 | 54 | |
HSBC Insurance (Asia-Pacific) Holdings Limited | 100.00 | 103 | |
HSBC Insurance (Asia) Limited | 100.00 | 104 | |
HSBC Insurance (Bermuda) Limited | 100.00 | 105 | |
HSBC Insurance Agency (USA) Inc. | 100.00 | 106 | |
HSBC Insurance Brokerage Company Limited | N/A | 0, 1, 107 | |
HSBC Insurance Brokers Greater China Limited | 100.00 | 1, 108 | |
HSBC Insurance Holdings Limited (In Liquidation) | 100.00 | 2, 16 | |
HSBC Insurance SAC 1 (Bermuda) Limited | 100.00 | 23 | |
HSBC Insurance SAC 2 (Bermuda) Limited | 100.00 | 1, 109 | |
HSBC Insurance Services Holdings Limited | 100.00 | 16 | |
HSBC International Finance Corporation (Delaware) | 100.00 | 110 | |
HSBC International Trustee (BVI) Limited | 100.00 | 10, 111 | |
HSBC International Trustee (Holdings) Pte. Limited | 100.00 | 54 | |
HSBC International Trustee Limited | 100.00 | 112 | |
HSBC Inversiones S.A. | 100.00 | 61 | |
HSBC InvestDirect (India) Private Limited | 99.99 | 57 | |
HSBC InvestDirect Financial Services (India) Limited | 99.99 | 57 | |
HSBC InvestDirect Sales & Marketing (India) Limited | 98.99 | 113 | |
HSBC InvestDirect Securities (India) Private Limited | 99.99 | 57 | |
HSBC Investment and Insurance Brokerage, Philippines Inc. | 99.99 | 114 | |
HSBC Investment Bank Holdings B.V. | 100.00 | 16 | |
HSBC Investment Bank Holdings Limited | 100.00 | 16 | |
HSBC Investment Company Limited | 100.00 | 2, 16 | |
HSBC Investment Funds (Canada) Inc. | 100.00 | 5, 115 | |
HSBC Investment Funds (Hong Kong) Limited | 100.00 | 24 | |
HSBC Investment Funds (Luxembourg) SA | 100.00 | 116 | |
HSBC Invoice Finance (UK) Limited | 100.00 | 18 | |
HSBC Issuer Services Common Depositary Nominee (UK) Limited | 100.00 | 16 | |
HSBC Issuer Services Depositary Nominee (UK) Limited (In Liquidation) | 100.00 | 19 | |
HSBC Latin America B.V. | 100.00 | 16 | |
HSBC Latin America Holdings (UK) Limited | 100.00 | 2, 16 | |
HSBC Leasing (Asia) Limited | 100.00 | 48 | |
HSBC Life (Bermuda) Limited | 100.00 | 1, 23 | |
HSBC Life (Cornell Centre) Limited | 100.00 | 104 | |
HSBC Life (Edwick Centre) Limited | 100.00 | 104 | |
HSBC Life (International) Limited | 100.00 | 23 | |
HSBC Life (Property) Limited | 100.00 | 104 | |
HSBC Life (Singapore) Pte. Ltd. | 100.00 | 1, 54 | |
HSBC Life (Tsing Yi Industrial) Limited | 100.00 | 104 | |
HSBC Life (UK) Limited | 100.00 | 16 | |
HSBC Life (Workshop) Limited | 100.00 | 1, 104 | |
HSBC Life Assurance (Malta) Limited | 100.00 | (70.03) | 93 |
HSBC Life Insurance Company Limited | N/A | 0, 12, 117 | |
HSBC LU Nominees Limited | 100.00 | 16 | |
HSBC Management (Guernsey) Limited | 100.00 | 118 |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
HSBC Markets (USA) Inc. | 100.00 | 15 | |
HSBC Marking Name Nominee (UK) Limited | 100.00 | 16 | |
HSBC Master Trust Trustee Limited | 100.00 | 16 | |
HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo Financiero HSBC | 99.99 | 17 | |
HSBC Middle East Asset CO. LLC | 100.00 | 119 | |
HSBC Middle East Holdings B.V. | 100.00 | 2, 3, 73 | |
HSBC Middle East Leasing Partnership | N/A | 0, 120 | |
HSBC Middle East Securities L.L.C | 100.00 | 121 | |
HSBC Mortgage Corporation (Canada) | 100.00 | 122 | |
HSBC Mortgage Corporation (USA) | 100.00 | 15 | |
HSBC Nominees (Asing) Sdn Bhd | 100.00 | 52 | |
HSBC Nominees (Hong Kong) Limited | 100.00 | 48 | |
HSBC Nominees (New Zealand) Limited | 100.00 | 123 | |
HSBC Nominees (Tempatan) Sdn Bhd | 100.00 | 52 | |
HSBC North America Holdings Inc. | 100.00 | 3, 15 | |
HSBC Operational Services GmbH | 100.00 | (99.99) | 6, 92 |
HSBC Overseas Holdings (UK) Limited | 100.00 | 2, 3, 16 | |
HSBC Overseas Investments Corporation (New York) | 100.00 | 124 | |
HSBC Overseas Nominee (UK) Limited | 100.00 | 16 | |
HSBC Participaciones (Argentina) S.A. | 100.00 | (99.99) | 56 |
HSBC PB Corporate Services 1 Limited | 100.00 | 125 | |
HSBC PB Services (Suisse) SA | 100.00 | 126 | |
HSBC Pension Trust (Ireland) DAC | 100.00 | 127 | |
HSBC Pensiones, S.A. (In Liquidation) | 100.00 | (99.99) | 17 |
HSBC Philanthropy Foundation Beijing | N/A | 0, 191 | |
HSBC PI Holdings (Mauritius) Limited | 100.00 | 128 | |
HSBC Portfoy Yonetimi A.S. | 100.00 | 129 | |
HSBC Preferential LP (UK) | 100.00 | 16 | |
HSBC Private Bank (Luxembourg) S.A. | 100.00 | (99.99) | 116 |
HSBC Private Bank (Suisse) SA | 100.00 | 130 | |
HSBC Private Bank (UK) Limited | 100.00 | 16 | |
HSBC Private Banking Holdings (Suisse) SA | 100.00 | 126 | |
HSBC Private Banking Nominee 3 (Jersey) Limited | 100.00 | 125 | |
HSBC Private Equity Investments (UK) Limited | 100.00 | 16 | |
HSBC Private Investment Counsel (Canada) Inc. | 100.00 | 3, 115 | |
HSBC Private Markets Management SARL | N/A | 0, 1, 131 | |
HSBC Private Trustee (Hong Kong) Limited | 100.00 | 48 | |
HSBC Professional Services (India) Private Limited | 100.00 | 132 | |
HSBC Property (UK) Limited | 100.00 | 16 | |
HSBC Property Funds (Holding) Limited | 100.00 | 16 | |
HSBC Provident Fund Trustee (Hong Kong) Limited | 100.00 | 48 | |
HSBC Qianhai Securities Limited | N/A | 0, 12, 133 | |
HSBC Real Estate Leasing (France) | 100.00 | (99.99) | 4, 37 |
HSBC REGIO Fund General Partner S.\u00e0 r.l. | N/A | 0, 1, 100 | |
HSBC REIM (France) | 100.00 | (99.99) | 4, 59 |
HSBC Retirement Benefits Trustee (UK) Limited | 100.00 | 1, 2, 16 | |
HSBC Retirement Services Limited | 100.00 | 1, 16 | |
HSBC Saudi Arabia, Closed Joint Stock Company | 100.00 | (66.18) | 134 |
HSBC Savings Bank (Philippines) Inc. | 99.99 | 135 | |
HSBC Securities (Canada) Inc. | 100.00 | 88 | |
HSBC Securities (Egypt) S.A.E. (In Liquidation) | 100.00 | (94.65) | 71 |
HSBC Securities (Japan) Co., Ltd. | 100.00 | 1, 58 | |
HSBC Securities (Japan) Limited (In Liquidation) | 100.00 | 16 | |
HSBC Securities (Singapore) Pte Limited | 100.00 | 54 | |
HSBC Securities (South Africa) (Pty) Limited | 100.00 | 136 | |
HSBC Securities (Taiwan) Corporation Limited | 100.00 | 65 |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
HSBC Securities (USA) Inc. | 100.00 | 15 | |
HSBC Securities and Capital Markets (India) Private Limited | 99.99 | 5, 113 | |
HSBC Securities Brokers (Asia) Limited | 100.00 | 48 | |
HSBC Securities Investments (Asia) Limited | 100.00 | 48 | |
HSBC Securities Services (Bermuda) Limited | 100.00 | 23 | |
HSBC Securities Services (Guernsey) Limited | 100.00 | 22 | |
HSBC Securities Services (Ireland) DAC | 100.00 | 127 | |
HSBC Securities Services (Luxembourg) S.A. | 100.00 | 116 | |
HSBC Securities Services Holdings (Ireland) DAC | 100.00 | 127 | |
HSBC Securities Services Nominees Limited | 100.00 | 1, 48 | |
HSBC Seguros de Retiro (Argentina) S.A. | 100.00 | (99.99) | 56 |
HSBC Seguros de Vida (Argentina) S.A. | 100.00 | (99.99) | 56 |
HSBC Seguros, S.A de C.V., Grupo Financiero HSBC | 100.00 | (99.99) | 17 |
HSBC Service Company Germany GmbH | 100.00 | (99.99) | 1, 6, 92 |
HSBC Service Delivery (Polska) Sp. z o.o. | 100.00 | 137 | |
HSBC Services (France) | 100.00 | (99.99) | 4, 37 |
HSBC Services Japan Limited | 100.00 | 138 | |
HSBC Services USA Inc. | 100.00 | 139 | |
HSBC Servicios Financieros, S.A. de C.V | 100.00 | (99.99) | 17 |
HSBC Servicios, S.A. DE C.V., Grupo Financiero HSBC | 100.00 | (99.99) | 17 |
HSBC SFH (France) | 100.00 | (99.99) | 59 |
HSBC SFT (C.I.) Limited | 100.00 | 22 | |
HSBC Software Development (Guangdong) Limited | N/A | 0, 12, 140 | |
HSBC Software Development (India) Private Limited | 100.00 | (99.99) | 141 |
HSBC Software Development (Malaysia) Sdn Bhd | 100.00 | 83 | |
HSBC Specialist Investments Limited | 100.00 | 3, 16 | |
HSBC Technology & Services (China) Limited | N/A | 0, 12, 142 | |
HSBC Technology & Services (USA) Inc. | 100.00 | 15 | |
HSBC Transaction Services GmbH | 100.00 | (99.99) | 6, 92 |
HSBC Trinkaus & Burkhardt (International) S.A. | 100.00 | (99.99) | 143 |
HSBC Trinkaus & Burkhardt Gesellschaft fur Bankbeteiligungen mbH | 100.00 | (99.99) | 92 |
HSBC Trinkhaus & Burkhardt GmbH | 100.00 | (99.99) | 1, 6, 144 |
HSBC Trinkaus Family Office GmbH | 100.00 | (99.99) | 6, 92 |
HSBC Trinkaus Real Estate GmbH | 100.00 | (99.99) | 6, 92 |
HSBC Trust Company (Canada) | 100.00 | 122 | |
HSBC Trust Company (Delaware), National Association | 100.00 | 110 | |
HSBC Trust Company (UK) Limited | 100.00 | 16 | |
HSBC Trustee (C.I.) Limited | 100.00 | 125 | |
HSBC Trustee (Cayman) Limited | 100.00 | 145 | |
HSBC Trustee (Guernsey) Limited | 100.00 | 22 | |
HSBC Trustee (Hong Kong) Limited | 100.00 | 48 | |
HSBC Trustee (Singapore) Limited | 100.00 | 54 | |
HSBC UK Bank plc | 100.00 | 2, 18 | |
HSBC UK Client Nominee Limited | 100.00 | 18 | |
HSBC UK Holdings Limited (In Liquidation) | 100.00 | 2, 3, 146 | |
HSBC UK Societal Projects Limited | N/A | 0, 1, 18 | |
HSBC USA Inc. | 100.00 | 3, 124 | |
HSBC Ventures USA Inc. | 100.00 | 15 | |
HSBC Violet Investments (Mauritius) Limited | 100.00 | 80 | |
HSBC Wealth Client Nominee Limited | 100.00 | 1, 18 | |
HSBC Yatirim Menkul Degerler A.S. | 100.00 | 68 | |
HSI Asset Securitization Corporation | 100.00 | 15 | |
HSI International Limited | 100.00 | (62.14) | 40 |
HSIL Investments Limited | 100.00 | 16 | |
Hubei Macheng HSBC Rural Bank Company Limited | N/A | 0, 12, 147 | |
Hubei Suizhou Cengdu HSBC Rural Bank Company Limited | N/A | 0, 12, 148 |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
Hubei Tianmen HSBC Rural Bank Company Limited | N/A | 0, 12, 149 | |
Hunan Pingjiang HSBC Rural Bank Company Limited | N/A | 0, 12, 150 | |
Imenson Limited | 100.00 | (62.14) | 40 |
INKA Internationale Kapitalanlagegesellschaft mbH | 100.00 | (99.99) | 92 |
Inmobiliaria Bisa, S.A. de C.V. | 99.98 | 17 | |
Inmobiliaria Grufin, S.A. de C.V. | 100.00 | (99.99) | 17 |
Inmobiliaria Guatusi, S.A. de C.V. | 100.00 | (99.99) | 17 |
James Capel (Nominees) Limited | 100.00 | 16 | |
James Capel (Taiwan) Nominees Limited | 100.00 | 16 | |
John Lewis Financial Services Limited | 100.00 | 16 | |
Keyser Ullmann Limited | 100.00 | (99.99) | 16 |
Lion Corporate Services Limited | 100.00 | 48 | |
Lion International Corporate Services Limited | 100.00 | 1, 151 | |
Lion International Management Limited | 100.00 | 151 | |
Lion Management (Hong Kong) Limited | 100.00 | 1, 48 | |
Lyndholme Limited | 100.00 | 48 | |
Marks and Spencer Financial Services plc | 100.00 | 152 | |
Marks and Spencer Unit Trust Management Limited | 100.00 | 152 | |
Midcorp Limited | 100.00 | 16 | |
Midland Bank (Branch Nominees) Limited | 100.00 | 18 | |
Midland Nominees Limited | 100.00 | 18 | |
MP Payments Group Limited | 100.00 | 1, 16 | |
MP Payments Netherlands B.V. | 100.00 | 1, 153 | |
MP Payments Operations Limited | 100.00 | 1, 16 | |
MP Payments Singapore Pte. Ltd. | 100.00 | 1, 154 | |
MP Payments UK Limited | 100.00 | 1, 16 | |
MW Gestion SA | 100.00 | 56 | |
Prudential Client HSBC GIS Nominee (UK) Limited | 100.00 | 16 | |
PT Bank HSBC Indonesia | 99.99 | (98.93) | 155 |
PT HSBC Sekuritas Indonesia | 100.00 | (85.00) | 155 |
R/CLIP Corp. | 100.00 | 15 | |
Real Estate Collateral Management Company | 100.00 | 15 | |
Republic Nominees Limited | 100.00 | 22 | |
RLUKREF Nominees (UK) One Limited | 100.00 | 1, 16 | |
RLUKREF Nominees (UK) Two Limited | 100.00 | 1, 16 | |
S.A.P.C. - Ufipro Recouvrement | 99.99 | 11, 37 | |
Saf Baiyun | 100.00 | (99.99) | 4, 37 |
Saf Guangzhou | 100.00 | (99.99) | 4, 37 |
SCI HSBC Assurances Immo | 100.00 | (99.99) | 11, 59 |
Serai Limited | 100.00 | 48 | |
Serai Technology Development (Shanghai) Limited (\u4e1d\u777f\u79d1\u6280\u5f00\u53d1\uff08\u4e0a\u6d77\uff09\u6709\u9650\u516c\u53f8) | N/A | 0, 1, 12, 156 | |
SFM | 100.00 | (99.99) | 4, 37 |
SFSS Nominees (Pty) Limited | 100.00 | 136 | |
Shandong Rongcheng HSBC Rural Bank Company Limited | N/A | 0, 12, 157 | |
Shenzhen HSBC Development Company Ltd | N/A | 0, 1, 12, 158 | |
Sico Limited | 100.00 | 159 | |
SNC Les Oliviers D'Antibes | 60.00 | (59.99) | 11, 59 |
SNCB/M6-2008 A | 100.00 | (99.99) | 4, 37 |
SNCB/M6-2007 A | 100.00 | (99.99) | 4, 37 |
SNCB/M6-2007 B | 100.00 | (99.99) | 4, 37 |
Soci\u00e9t\u00e9 Fran\u00e7aise et Suisse | 100.00 | (99.99) | 4, 37 |
Somers Dublin DAC | 100.00 | (99.99) | 127 |
Somers Nominees (Far East) Limited | 100.00 | 23 | |
Sopingest | 100.00 | (99.99) | 4, 37 |
South Yorkshire Light Rail Limited | 100.00 | 16 | |
St Cross Trustees Limited | 100.00 | 18 | |
Sterling Credit Limited | 100.00 | 183 | |
Sun Hung Kai Development (Lujiazui III) Limited | N/A | 0, 12, 160 |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
Swan National Limited (In Liquidation) | 100.00 | 19 | |
The Hongkong and Shanghai Banking Corporation Limited | 100.00 | 5, 48 | |
The Venture Catalysts Limited (In Liquidation) | 100.00 | 19 | |
Tooley Street View Limited | 100.00 | 2, 16 | |
Trinkaus Europa Immobilien-Fonds Nr.3 Objekt Utrecht Verwaltungs-GmbH | 100.00 | (99.99) | 6, 92 |
Trinkaus Immobilien-Fonds Geschaeftsfuehrungs-GmbH | 100.00 | (99.99) | 6, 92 |
Trinkaus Immobilien-Fonds Verwaltungs- GmbH | 100.00 | (99.99) | 6, 92 |
Trinkaus Private Equity Management GmbH | 100.00 | (99.99) | 6, 92 |
Trinkaus Private Equity Verwaltungs GmbH | 100.00 | (99.99) | 6, 92 |
Turnsonic (Nominees) Limited | 100.00 | 18 | |
Valeurs Mobili\u00e8res Elys\u00e9es | 100.00 | (99.99) | 4, 37 |
Wardley Limited | 100.00 | 48 | |
Wayfoong Nominees Limited | 100.00 | 48 | |
Westminster House, LLC | N/A | 0, 15 | |
Woodex Limited | 100.00 | 23 | |
Yan Nin Development Company Limited | 100.00 | (62.14) | 40 |
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 | $bn | |
At 31 Dec 2023 | 3.6 | 7.8 | 5.5 | 8.2 | 25.1 |
At 31 Dec 2022 | 4.2 | 7.2 | 4.8 | 7.5 | 23.7 |
Nature and risks associated with HSBC interests in unconsolidated structured entities | |||||
Securitisations | HSBC managed funds | Non-HSBC managed funds | Other | Total | |
Total asset values of the entities ($m) | |||||
0\u2013500 | 120 | 337 | 1,271 | 42 | 1,770 |
500\u20132,000 | 4 | 96 | 1,069 | 3 | 1,172 |
2,000\u20135,000 | \u2014 | 39 | 418 | \u2014 | 457 |
5,000\u201325,000 | \u2014 | 24 | 217 | \u2014 | 241 |
25,000+ | \u2014 | 3 | 11 | \u2014 | 14 |
Number of entities at 31 Dec 2023 | 124 | 499 | 2,986 | 45 | 3,654 |
$bn | $bn | $bn | $bn | $bn | |
Total assets in relation to HSBC\u2019s interests in the unconsolidated structured entities | 3.2 | 13.9 | 20.7 | 3.3 | 41.1 |
\u2013\u00a0 trading assets | \u2014 | 0.6 | \u2014 | \u2014 | 0.6 |
\u2013\u00a0 financial assets designated and otherwise mandatorily measured at fair value | \u2014 | 12.6 | 19.7 | \u2014 | 32.3 |
\u2013\u00a0 loans and advances to customers | 3.2 | \u2014 | 0.6 | 2.5 | 6.3 |
\u2013\u00a0 financial investments | \u2014 | 0.7 | 0.4 | \u2014 | 1.1 |
\u2013\u00a0 other assets | \u2014 | \u2014 | \u2014 | 0.8 | 0.8 |
Total liabilities in relation to HSBC\u2019s interests in the unconsolidated structured entities | \u2014 | \u2014 | \u2014 | 0.3 | 0.3 |
\u2013\u00a0 other liabilities | \u2014 | \u2014 | \u2014 | 0.3 | 0.3 |
Other off-balance sheet commitments | 0.1 | 1.9 | 5.0 | 1.2 | 8.2 |
HSBC\u2019s maximum exposure at 31 Dec 2023 | 3.3 | 15.8 | 25.7 | 4.2 | 49.0 |
Total asset values of the entities ($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 |
\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 | 43.2 |
40 | 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 SPV LLC | 100.00 | 1, 15 | ||||
AI Nominees (UK) One Limited | 100.00 | 1, 16 | ||||
AI Nominees (UK) Two Limited | 100.00 | 116 | ||||
Almacenadora Banpacifico S.A. (In Liquidation) | 99.99 | 17 | ||||
Assetfinance December (F) Limited | 100.00 | 18 | ||||
Assetfinance December (H) Limited | 100.00 | 16 | ||||
Assetfinance December (P) Limited | 100.00 | 16 | ||||
Assetfinance December (R) Limited | 100.00 | 16 | ||||
Assetfinance June (A) Limited | 100.00 | 16 | ||||
Assetfinance June (D) Limited | 100.00 | 18 | ||||
Assetfinance Limited (In Liquidation) | 100.00 | 19 | ||||
Assetfinance March (B) Limited | 100.00 | 20 | ||||
Assetfinance March (D) Limited | 100.00 | 18 | ||||
Assetfinance March (F) Limited | 100.00 | 16 | ||||
Assetfinance September (F) Limited | 100.00 | 16 | ||||
Assetfinance September (G) Limited | 100.00 | 18 | ||||
B&Q Financial Services Limited | 100.00 | 16 | ||||
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, 24 | ||||
Beijing HSBC Real Estate Leasing Company Limited | 100.00 | 1, 12, 25 | ||||
Beijing Miyun HSBC Rural Bank Company Limited | 100.00 | 12, 26 | ||||
BentallGreenOak China Real Estate Investments, L.P. | N/A | 0, 1, 27 | ||||
Canada Crescent Nominees (UK) Limited | 100.00 | 16 | ||||
Canada Square Nominees (UK) Limited | 100.00 | 16 | ||||
Canada Water Nominees (UK) Limited (In Liquidation) | 100.00 | 19 | ||||
Capco/Cove, Inc. | 100.00 | 28 | ||||
Card-Flo #1, Inc. | 100.00 | 15 | ||||
Card-Flo #3, Inc. | 100.00 | 15 | ||||
CC&H Holdings LLC | 100.00 | 29 | ||||
CCF & Partners Asset Management Limited | 100.00 | (99.99) | 16 | |||
CCF Holding (Liban) S.A.L. (In Liquidation) | 74.99 | 30 | ||||
Charterhouse Administrators (D.T.) Limited | 100.00 | (99.99) | 16 | |||
Charterhouse Management Services Limited | 100.00 | (99.99) | 16 | |||
Charterhouse Pensions Limited | 100.00 | 16 | ||||
Chongqing Dazu HSBC Rural Bank Company Limited | 100.00 | 12, 31 | ||||
Chongqing Fengdu HSBC Rural Bank Company Limited | 100.00 | 12, 32 | ||||
Chongqing Rongchang HSBC Rural Bank Company Limited | 100.00 | 12, 33 | ||||
COIF Nominees Limited | N/A | 0, 16 | ||||
Corsair IV Financial Services Capital Partners - B LP | N/A | 0, 1, 34 | ||||
Dalian Pulandian HSBC Rural Bank Company Limited | 100.00 | 12, 35 | ||||
Decision One Mortgage Company, LLC | N/A | 0, 36 | ||||
Dempar 1 | 100.00 | (99.99) | 4, 37 | |||
Desarrollo Turistico, S.A. de C.V. (In Liquidation) | 100.00 | (99.99) | 17 | |||
Electronic Data Process M\u00e9xico, S.A. de C.V. | 100.00 | 1, 38 | ||||
Eton Corporate Services Limited | 100.00 | 22 | ||||
Flandres Contentieux S.A. | 100.00 | (99.99) | 4, 37 | |||
Fonci\u00e8re Elys\u00e9es | 100.00 | (99.99) | 4, 37 | |||
Fujian Yongan HSBC Rural Bank Company Limited | 100.00 | 12, 39 | ||||
Fulcher Enterprises Company Limited | 100.00 | (62.14) | 40 | |||
Fundacion HSBC, A.C. | 100.00 | (99.99) | 11, 17 | |||
Giller Ltd. | 100.00 | 28 |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
GPIF Co-Investment, LLC | N/A | 0, 15 | |
Griffin International Limited | 100.00 | 16 | |
Grupo Financiero HSBC, S. A. de C. V. | 99.99 | 17 | |
Guangdong Enping HSBC Rural Bank Company Limited | 100.00 | 12, 41 | |
Guangzhou HSBC Real Estate Company Ltd (\u5e7f\u5dde\u6c47\u4e30\u623f\u5730\u4ea7\u6709\u9650\u516c\u53f8) | 100.00 | 1, 12, 42 | |
Hang Seng (Nominee) Limited | 100.00 | (62.14) | 40 |
Hang Seng Bank (China) Limited | N/A | 0, 12, 43 | |
Hang Seng Bank (Trustee) Limited | 100.00 | (62.14) | 40 |
Hang Seng Bank Limited | 62.14 | 40 | |
Hang Seng Bullion Company Limited | 100.00 | (62.14) | 40 |
Hang Seng Credit Limited | 100.00 | (62.14) | 40 |
Hang Seng Data Services Limited | 100.00 | (62.14) | 40 |
Hang Seng Finance Limited | 100.00 | (62.14) | 40 |
Hang Seng Financial Information Limited | 100.00 | (62.14) | 40 |
Hang Seng Indexes (Netherlands) B.V. | N/A | 0, 1, 44 | |
Hang Seng Indexes Company Limited | 100.00 | (62.14) | 40 |
Hang Seng Insurance Company Limited | 100.00 | (62.14) | 40 |
Hang Seng Investment Management Limited | 100.00 | (62.14) | 40 |
Hang Seng Investment Services Limited | 100.00 | (62.14) | 40 |
Hang Seng Qianhai Fund Management Company Limited | N/A | 0, 12, 45 | |
Hang Seng Real Estate Management Limited | 100.00 | (62.14) | 40 |
Hang Seng Securities Limited | 100.00 | (62.14) | 40 |
Hang Seng Security Management Limited | 100.00 | (62.14) | 40 |
HASE Wealth Limited | 100.00 | (62.14) | 1, 40 |
Haseba Investment Company Limited | 100.00 | (62.14) | 40 |
HFC Bank Limited (In Liquidation) | 100.00 | 19 | |
High Time Investments Limited | 100.00 | (62.14) | 40 |
HLF | 100.00 | (99.99) | 4, 37 |
Honey Blue Enterprises Limited (\u4ea8\u4eac\u4f01\u696d\u6709 \u9650\u516c\u53f8) | 100.00 | 1, 46 | |
Honey Green Enterprises Ltd. | 100.00 | 47 | |
Honey Grey Enterprises Limited (\u4ea8\u7a57\u4f01\u696d\u6709 \u9650\u516c\u53f8) | 100.00 | 1, 48 | |
Honey Silver Enterprises Limited (\u4ea8\u6df1\u4f01\u696d\u6709 \u9650\u516c\u53f8) | 100.00 | 1, 48 | |
Household International Europe Limited (In Liquidation) | 100.00 | 5, 49 | |
Household Pooling Corporation | 100.00 | 50 | |
Housing (USA) LLP | N/A | 0, 1, 29 | |
HSBC (BGF) Investments Limited | 100.00 | 16 | |
HSBC (General Partner) Limited | 100.00 | 2, 51 | |
HSBC (Guernsey) GP PCC Limited | 100.00 | 22 | |
HSBC (Kuala Lumpur) Nominees Sdn Bhd | 100.00 | 52 | |
HSBC (Malaysia) Trustee Berhad | 100.00 | 53 | |
HSBC (Singapore) Nominees Pte Ltd | 100.00 | 54 | |
HSBC Agency (India) Private Limited | 100.00 | 55 | |
HSBC Alternative Investments Limited | 100.00 | 16 | |
HSBC Amanah Malaysia Berhad | 100.00 | 52 | |
HSBC Americas Corporation (Delaware) | 100.00 | 15 | |
HSBC Argentina Holdings S.A. | 100.00 | 56 | |
HSBC Asia Holdings B.V. | 100.00 | 16 | |
HSBC Asia Holdings Limited | 100.00 | 2, 48 | |
HSBC Asia Pacific Holdings (UK) Limited | 100.00 | 5, 16 | |
HSBC Asset Finance (UK) Limited | 100.00 | 16 | |
HSBC Asset Finance M.O.G. Holdings (UK) Limited | 100.00 | 16 | |
HSBC Asset Management (Fund Services UK) Limited | 100.00 | 1, 16 | |
HSBC Asset Management (India) Private Limited | 99.99 | 3, 57 | |
HSBC Asset Management (Japan) Limited | 100.00 | 58 | |
HSBC Assurances Vie (France) | 100.00 | (99.99) | 4, 59 |
HSBC Australia Holdings Pty Limited | 100.00 | 5, 60 |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
HSBC BANK (CHILE) | 100.00 | 61 | |
HSBC Bank (China) Company Limited | N/A | 0, 12, 62 | |
HSBC Bank (General Partner) Limited | 100.00 | 51 | |
HSBC Bank (Mauritius) Limited | 100.00 | 63 | |
HSBC Bank (RR) (Limited Liability Company) | N/A | 0, 13, 64 | |
HSBC Bank (Singapore) Limited | 100.00 | 54 | |
HSBC Bank (Taiwan) Limited | 100.00 | 65 | |
HSBC Bank (Uruguay) S.A. | 100.00 | 66 | |
HSBC Bank (Vietnam) Ltd. | 100.00 | 67 | |
HSBC Bank A.S. | 100.00 | (99.99) | 68 |
HSBC Bank Argentina S.A. | 99.99 | 56 | |
HSBC Bank Armenia cjsc | 100.00 | 69 | |
HSBC Bank Australia Limited | 100.00 | 60 | |
HSBC Bank Bermuda Limited | 100.00 | 23 | |
HSBC Bank Canada | 100.00 | 3, 70 | |
HSBC Bank Capital Funding (Sterling 1) LP | N/A | 0, 51 | |
HSBC Bank Capital Funding (Sterling 2) LP | N/A | 0, 51 | |
HSBC Bank Egypt S.A.E | 99.62 | (94.54) | 71 |
HSBC Bank Malaysia Berhad | 100.00 | 3, 52 | |
HSBC Bank Malta p.l.c. | 70.03 | 72 | |
HSBC Bank Middle East Limited | 100.00 | 3, 73 | |
HSBC Bank Middle East Limited Representative Office Morocco SARL (In Liquidation) | 100.00 | 74 | |
HSBC Bank Pension Trust (UK) Limited | 100.00 | 16 | |
HSBC Bank plc | 100.00 | 2, 3, 16 | |
HSBC Bank USA, National Association | 100.00 | 3, 75 | |
HSBC Branch Nominee (UK) Limited | 100.00 | 18 | |
HSBC Brasil Holding S.A. | 100.00 | 21 | |
HSBC Broking Forex (Asia) Limited | 100.00 | 48 | |
HSBC Broking Futures (Asia) Limited | 100.00 | 48 | |
HSBC Broking Futures (Hong Kong) Limited | 100.00 | 48 | |
HSBC Broking Securities (Asia) Limited | 100.00 | 48 | |
HSBC Broking Securities (Hong Kong) Limited | 100.00 | 48 | |
HSBC Broking Services (Asia) Limited | 100.00 | 48 | |
HSBC Canadian Covered Bond (Legislative) GP Inc. | 100.00 | 76 | |
HSBC Canadian Covered Bond (Legislative) Guarantor Limited Partnership | N/A | 0, 76 | |
HSBC Capital (USA), Inc. | 100.00 | 3, 15 | |
HSBC Capital Funding (Dollar 1) L.P. | N/A | 0, 51 | |
HSBC Card Services Inc. | 100.00 | 15 | |
HSBC Casa de Bolsa, S.A. de C.V., Grupo Financiero HSBC | 100.00 | (99.99) | 17 |
HSBC Cayman Limited | 100.00 | 192 | |
HSBC Cayman Services Limited | 100.00 | 77 | |
HSBC City Funding Holdings (In Liquidation) | 100.00 | 19 | |
HSBC Client Holdings Nominee (UK) Limited | 100.00 | 16 | |
HSBC Client Nominee (Jersey) Limited | 100.00 | 78 | |
HSBC Columbia Funding, LLC | N/A | 0, 15 | |
HSBC Continental Europe | 99.99 | 4, 37 | |
HSBC Corporate Advisory (Malaysia) Sdn Bhd | 100.00 | 52 | |
HSBC Corporate Finance (Hong Kong) Limited | 100.00 | 48 | |
HSBC Corporate Secretary (UK) Limited | 100.00 | 1, 2, 16 | |
HSBC Corporate Services (Shanghai) Co., Ltd | N/A | 0, 1, 79 | |
HSBC Corporate Trustee Company (UK) Limited | 100.00 | 16 | |
HSBC Custody Nominees (Australia) Limited | 100.00 | 60 | |
HSBC Custody Services (Guernsey) Limited | 100.00 | 22 | |
HSBC Daisy Investments (Mauritius) Limited | 100.00 | 80 | |
HSBC Diversified Loan Fund General Partner Sarl | N/A | 0, 81 | |
HSBC Electronic Data Processing (Guangdong) Limited | N/A | 0, 12, 82 | |
HSBC Electronic Data Processing (Malaysia) Sdn Bhd | 100.00 | 83 | |
HSBC Electronic Data Processing (Philippines), Inc. | 99.99 | 84 |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
HSBC Electronic Data Processing India Private Limited | 100.00 | 85 | |
HSBC Electronic Data Processing Lanka (Private) Limited | 100.00 | 86 | |
HSBC Electronic Data Service Delivery (Egypt) S.A.E. | 100.00 | 87 | |
HSBC Epargne Entreprise (France) | 100.00 | (99.99) | 4, 59 |
HSBC Equipment Finance (UK) Limited | 100.00 | 18 | |
HSBC Equity (UK) Limited | 100.00 | 16 | |
HSBC Europe B.V. | 100.00 | 16 | |
HSBC Executor & Trustee Company (UK) Limited | 100.00 | 18 | |
HSBC Factoring (France) | 100.00 | (99.99) | 4, 37 |
HSBC Finance (Netherlands) | 100.00 | 2, 16 | |
HSBC Finance Corporation | 100.00 | 3, 15 | |
HSBC Finance Limited | 100.00 | 16 | |
HSBC Finance Mortgages Inc. | 100.00 | 88 | |
HSBC Finance Transformation (UK) Limited | 100.00 | 16 | |
HSBC Financial Advisors Singapore Pte. Ltd. | 100.00 | 1, 54 | |
HSBC Financial Services (Lebanon) s.a.l. | 99.80 | 89 | |
HSBC Financial Services (Uruguay) S.A. (In Liquidation) | 100.00 | 90 | |
HSBC FinTech Services (Shanghai) Company Limited | N/A | 0, 1, 91 | |
HSBC Global Asset Management (Bermuda) Limited | 100.00 | 3, 23 | |
HSBC Global Asset Management (Canada) Limited | 100.00 | 70 | |
HSBC Global Asset Management (Deutschland) GmbH | 100.00 | (99.99) | 6, 92 |
HSBC Global Asset Management (France) | 100.00 | (99.99) | 4, 59 |
HSBC Global Asset Management (Hong Kong) Limited | 100.00 | 24 | |
HSBC Global Asset Management (Malta) Limited | 100.00 | (70.03) | 93 |
HSBC Global Asset Management (M\u00e9xico), S.A. de C.V., Sociedad Operadora de Fondos de Inversi\u00f3n, Grupo Financiero HSBC | 100.00 | (99.99) | 17 |
HSBC Global Asset Management (Singapore) Limited | 100.00 | 54 | |
HSBC Global Asset Management (Switzerland) AG | 100.00 | 4, 94 | |
HSBC Global Asset Management (Taiwan) Limited | 100.00 | 95 | |
HSBC Global Asset Management (UK) Limited | 100.00 | 16 | |
HSBC Global Asset Management (USA) Inc. | 100.00 | 96 | |
HSBC Global Asset Management Argentina S.A. Sociedad Gerente de Fondos Comunes de Inversi\u00f3n | 100.00 | (99.99) | 97 |
HSBC Global Asset Management Holdings (Bahamas) Limited | 100.00 | 98 | |
HSBC Global Asset Management Limited | 100.00 | 2, 16 | |
HSBC Global Custody Nominee (UK) Limited | 100.00 | 16 | |
HSBC Global Custody Proprietary Nominee (UK) Limited | 100.00 | 1, 16 | |
HSBC Global Services (Canada) Limited | 100.00 | 88 | |
HSBC Global Services (China) Holdings Limited | 100.00 | 16 | |
HSBC Global Services (Hong Kong) Limited | 100.00 | 99 | |
HSBC Global Services (UK) Limited | 100.00 | 16 | |
HSBC Global Services Limited | 100.00 | 2, 16 | |
HSBC Group Management Services Limited | 100.00 | 16 | |
HSBC Group Nominees UK Limited | 100.00 | 2, 16 | |
HSBC Holdings B.V. | 100.00 | 16 | |
HSBC IM Pension Trust Limited | 100.00 | 16 | |
HSBC Infrastructure Debt GP 1 S.\u00e0 r.l. | N/A | 0, 1, 100 | |
HSBC Infrastructure Debt GP 2 S.\u00e0 r.l. | N/A | 0, 1, 100 |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
HSBC Infrastructure Limited (In Liquidation) | 100.00 | 19 | |
HSBC Innovation Bank Limited | 100.00 | 1, 101 | |
HSBC INSN (Non Operating) Pte. Ltd. (In Liquidation) | 100.00 | 54 | |
HSBC Institutional Trust Services (Asia) Limited | 100.00 | 48 | |
HSBC Institutional Trust Services (Bermuda) Limited | 100.00 | 23 | |
HSBC Institutional Trust Services (Mauritius) Limited | 100.00 | 102 | |
HSBC Institutional Trust Services (Singapore) Limited | 100.00 | 54 | |
HSBC Insurance (Asia-Pacific) Holdings Limited | 100.00 | 103 | |
HSBC Insurance (Asia) Limited | 100.00 | 104 | |
HSBC Insurance (Bermuda) Limited | 100.00 | 105 | |
HSBC Insurance Agency (USA) Inc. | 100.00 | 106 | |
HSBC Insurance Brokerage Company Limited | N/A | 0, 1, 107 | |
HSBC Insurance Brokers Greater China Limited | 100.00 | 1, 108 | |
HSBC Insurance Holdings Limited (In Liquidation) | 100.00 | 2, 16 | |
HSBC Insurance SAC 1 (Bermuda) Limited | 100.00 | 23 | |
HSBC Insurance SAC 2 (Bermuda) Limited | 100.00 | 1, 109 | |
HSBC Insurance Services Holdings Limited | 100.00 | 16 | |
HSBC International Finance Corporation (Delaware) | 100.00 | 110 | |
HSBC International Trustee (BVI) Limited | 100.00 | 10, 111 | |
HSBC International Trustee (Holdings) Pte. Limited | 100.00 | 54 | |
HSBC International Trustee Limited | 100.00 | 112 | |
HSBC Inversiones S.A. | 100.00 | 61 | |
HSBC InvestDirect (India) Private Limited | 99.99 | 57 | |
HSBC InvestDirect Financial Services (India) Limited | 99.99 | 57 | |
HSBC InvestDirect Sales & Marketing (India) Limited | 98.99 | 113 | |
HSBC InvestDirect Securities (India) Private Limited | 99.99 | 57 | |
HSBC Investment and Insurance Brokerage, Philippines Inc. | 99.99 | 114 | |
HSBC Investment Bank Holdings B.V. | 100.00 | 16 | |
HSBC Investment Bank Holdings Limited | 100.00 | 16 | |
HSBC Investment Company Limited | 100.00 | 2, 16 | |
HSBC Investment Funds (Canada) Inc. | 100.00 | 5, 115 | |
HSBC Investment Funds (Hong Kong) Limited | 100.00 | 24 | |
HSBC Investment Funds (Luxembourg) SA | 100.00 | 116 | |
HSBC Invoice Finance (UK) Limited | 100.00 | 18 | |
HSBC Issuer Services Common Depositary Nominee (UK) Limited | 100.00 | 16 | |
HSBC Issuer Services Depositary Nominee (UK) Limited (In Liquidation) | 100.00 | 19 | |
HSBC Latin America B.V. | 100.00 | 16 | |
HSBC Latin America Holdings (UK) Limited | 100.00 | 2, 16 | |
HSBC Leasing (Asia) Limited | 100.00 | 48 | |
HSBC Life (Bermuda) Limited | 100.00 | 1, 23 | |
HSBC Life (Cornell Centre) Limited | 100.00 | 104 | |
HSBC Life (Edwick Centre) Limited | 100.00 | 104 | |
HSBC Life (International) Limited | 100.00 | 23 | |
HSBC Life (Property) Limited | 100.00 | 104 | |
HSBC Life (Singapore) Pte. Ltd. | 100.00 | 1, 54 | |
HSBC Life (Tsing Yi Industrial) Limited | 100.00 | 104 | |
HSBC Life (UK) Limited | 100.00 | 16 | |
HSBC Life (Workshop) Limited | 100.00 | 1, 104 | |
HSBC Life Assurance (Malta) Limited | 100.00 | (70.03) | 93 |
HSBC Life Insurance Company Limited | N/A | 0, 12, 117 | |
HSBC LU Nominees Limited | 100.00 | 16 | |
HSBC Management (Guernsey) Limited | 100.00 | 118 |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
HSBC Markets (USA) Inc. | 100.00 | 15 | |
HSBC Marking Name Nominee (UK) Limited | 100.00 | 16 | |
HSBC Master Trust Trustee Limited | 100.00 | 16 | |
HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo Financiero HSBC | 99.99 | 17 | |
HSBC Middle East Asset CO. LLC | 100.00 | 119 | |
HSBC Middle East Holdings B.V. | 100.00 | 2, 3, 73 | |
HSBC Middle East Leasing Partnership | N/A | 0, 120 | |
HSBC Middle East Securities L.L.C | 100.00 | 121 | |
HSBC Mortgage Corporation (Canada) | 100.00 | 122 | |
HSBC Mortgage Corporation (USA) | 100.00 | 15 | |
HSBC Nominees (Asing) Sdn Bhd | 100.00 | 52 | |
HSBC Nominees (Hong Kong) Limited | 100.00 | 48 | |
HSBC Nominees (New Zealand) Limited | 100.00 | 123 | |
HSBC Nominees (Tempatan) Sdn Bhd | 100.00 | 52 | |
HSBC North America Holdings Inc. | 100.00 | 3, 15 | |
HSBC Operational Services GmbH | 100.00 | (99.99) | 6, 92 |
HSBC Overseas Holdings (UK) Limited | 100.00 | 2, 3, 16 | |
HSBC Overseas Investments Corporation (New York) | 100.00 | 124 | |
HSBC Overseas Nominee (UK) Limited | 100.00 | 16 | |
HSBC Participaciones (Argentina) S.A. | 100.00 | (99.99) | 56 |
HSBC PB Corporate Services 1 Limited | 100.00 | 125 | |
HSBC PB Services (Suisse) SA | 100.00 | 126 | |
HSBC Pension Trust (Ireland) DAC | 100.00 | 127 | |
HSBC Pensiones, S.A. (In Liquidation) | 100.00 | (99.99) | 17 |
HSBC Philanthropy Foundation Beijing | N/A | 0, 191 | |
HSBC PI Holdings (Mauritius) Limited | 100.00 | 128 | |
HSBC Portfoy Yonetimi A.S. | 100.00 | 129 | |
HSBC Preferential LP (UK) | 100.00 | 16 | |
HSBC Private Bank (Luxembourg) S.A. | 100.00 | (99.99) | 116 |
HSBC Private Bank (Suisse) SA | 100.00 | 130 | |
HSBC Private Bank (UK) Limited | 100.00 | 16 | |
HSBC Private Banking Holdings (Suisse) SA | 100.00 | 126 | |
HSBC Private Banking Nominee 3 (Jersey) Limited | 100.00 | 125 | |
HSBC Private Equity Investments (UK) Limited | 100.00 | 16 | |
HSBC Private Investment Counsel (Canada) Inc. | 100.00 | 3, 115 | |
HSBC Private Markets Management SARL | N/A | 0, 1, 131 | |
HSBC Private Trustee (Hong Kong) Limited | 100.00 | 48 | |
HSBC Professional Services (India) Private Limited | 100.00 | 132 | |
HSBC Property (UK) Limited | 100.00 | 16 | |
HSBC Property Funds (Holding) Limited | 100.00 | 16 | |
HSBC Provident Fund Trustee (Hong Kong) Limited | 100.00 | 48 | |
HSBC Qianhai Securities Limited | N/A | 0, 12, 133 | |
HSBC Real Estate Leasing (France) | 100.00 | (99.99) | 4, 37 |
HSBC REGIO Fund General Partner S.\u00e0 r.l. | N/A | 0, 1, 100 | |
HSBC REIM (France) | 100.00 | (99.99) | 4, 59 |
HSBC Retirement Benefits Trustee (UK) Limited | 100.00 | 1, 2, 16 | |
HSBC Retirement Services Limited | 100.00 | 1, 16 | |
HSBC Saudi Arabia, Closed Joint Stock Company | 100.00 | (66.18) | 134 |
HSBC Savings Bank (Philippines) Inc. | 99.99 | 135 | |
HSBC Securities (Canada) Inc. | 100.00 | 88 | |
HSBC Securities (Egypt) S.A.E. (In Liquidation) | 100.00 | (94.65) | 71 |
HSBC Securities (Japan) Co., Ltd. | 100.00 | 1, 58 | |
HSBC Securities (Japan) Limited (In Liquidation) | 100.00 | 16 | |
HSBC Securities (Singapore) Pte Limited | 100.00 | 54 | |
HSBC Securities (South Africa) (Pty) Limited | 100.00 | 136 | |
HSBC Securities (Taiwan) Corporation Limited | 100.00 | 65 |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
HSBC Securities (USA) Inc. | 100.00 | 15 | |
HSBC Securities and Capital Markets (India) Private Limited | 99.99 | 5, 113 | |
HSBC Securities Brokers (Asia) Limited | 100.00 | 48 | |
HSBC Securities Investments (Asia) Limited | 100.00 | 48 | |
HSBC Securities Services (Bermuda) Limited | 100.00 | 23 | |
HSBC Securities Services (Guernsey) Limited | 100.00 | 22 | |
HSBC Securities Services (Ireland) DAC | 100.00 | 127 | |
HSBC Securities Services (Luxembourg) S.A. | 100.00 | 116 | |
HSBC Securities Services Holdings (Ireland) DAC | 100.00 | 127 | |
HSBC Securities Services Nominees Limited | 100.00 | 1, 48 | |
HSBC Seguros de Retiro (Argentina) S.A. | 100.00 | (99.99) | 56 |
HSBC Seguros de Vida (Argentina) S.A. | 100.00 | (99.99) | 56 |
HSBC Seguros, S.A de C.V., Grupo Financiero HSBC | 100.00 | (99.99) | 17 |
HSBC Service Company Germany GmbH | 100.00 | (99.99) | 1, 6, 92 |
HSBC Service Delivery (Polska) Sp. z o.o. | 100.00 | 137 | |
HSBC Services (France) | 100.00 | (99.99) | 4, 37 |
HSBC Services Japan Limited | 100.00 | 138 | |
HSBC Services USA Inc. | 100.00 | 139 | |
HSBC Servicios Financieros, S.A. de C.V | 100.00 | (99.99) | 17 |
HSBC Servicios, S.A. DE C.V., Grupo Financiero HSBC | 100.00 | (99.99) | 17 |
HSBC SFH (France) | 100.00 | (99.99) | 59 |
HSBC SFT (C.I.) Limited | 100.00 | 22 | |
HSBC Software Development (Guangdong) Limited | N/A | 0, 12, 140 | |
HSBC Software Development (India) Private Limited | 100.00 | (99.99) | 141 |
HSBC Software Development (Malaysia) Sdn Bhd | 100.00 | 83 | |
HSBC Specialist Investments Limited | 100.00 | 3, 16 | |
HSBC Technology & Services (China) Limited | N/A | 0, 12, 142 | |
HSBC Technology & Services (USA) Inc. | 100.00 | 15 | |
HSBC Transaction Services GmbH | 100.00 | (99.99) | 6, 92 |
HSBC Trinkaus & Burkhardt (International) S.A. | 100.00 | (99.99) | 143 |
HSBC Trinkaus & Burkhardt Gesellschaft fur Bankbeteiligungen mbH | 100.00 | (99.99) | 92 |
HSBC Trinkhaus & Burkhardt GmbH | 100.00 | (99.99) | 1, 6, 144 |
HSBC Trinkaus Family Office GmbH | 100.00 | (99.99) | 6, 92 |
HSBC Trinkaus Real Estate GmbH | 100.00 | (99.99) | 6, 92 |
HSBC Trust Company (Canada) | 100.00 | 122 | |
HSBC Trust Company (Delaware), National Association | 100.00 | 110 | |
HSBC Trust Company (UK) Limited | 100.00 | 16 | |
HSBC Trustee (C.I.) Limited | 100.00 | 125 | |
HSBC Trustee (Cayman) Limited | 100.00 | 145 | |
HSBC Trustee (Guernsey) Limited | 100.00 | 22 | |
HSBC Trustee (Hong Kong) Limited | 100.00 | 48 | |
HSBC Trustee (Singapore) Limited | 100.00 | 54 | |
HSBC UK Bank plc | 100.00 | 2, 18 | |
HSBC UK Client Nominee Limited | 100.00 | 18 | |
HSBC UK Holdings Limited (In Liquidation) | 100.00 | 2, 3, 146 | |
HSBC UK Societal Projects Limited | N/A | 0, 1, 18 | |
HSBC USA Inc. | 100.00 | 3, 124 | |
HSBC Ventures USA Inc. | 100.00 | 15 | |
HSBC Violet Investments (Mauritius) Limited | 100.00 | 80 | |
HSBC Wealth Client Nominee Limited | 100.00 | 1, 18 | |
HSBC Yatirim Menkul Degerler A.S. | 100.00 | 68 | |
HSI Asset Securitization Corporation | 100.00 | 15 | |
HSI International Limited | 100.00 | (62.14) | 40 |
HSIL Investments Limited | 100.00 | 16 | |
Hubei Macheng HSBC Rural Bank Company Limited | N/A | 0, 12, 147 | |
Hubei Suizhou Cengdu HSBC Rural Bank Company Limited | N/A | 0, 12, 148 |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
Hubei Tianmen HSBC Rural Bank Company Limited | N/A | 0, 12, 149 | |
Hunan Pingjiang HSBC Rural Bank Company Limited | N/A | 0, 12, 150 | |
Imenson Limited | 100.00 | (62.14) | 40 |
INKA Internationale Kapitalanlagegesellschaft mbH | 100.00 | (99.99) | 92 |
Inmobiliaria Bisa, S.A. de C.V. | 99.98 | 17 | |
Inmobiliaria Grufin, S.A. de C.V. | 100.00 | (99.99) | 17 |
Inmobiliaria Guatusi, S.A. de C.V. | 100.00 | (99.99) | 17 |
James Capel (Nominees) Limited | 100.00 | 16 | |
James Capel (Taiwan) Nominees Limited | 100.00 | 16 | |
John Lewis Financial Services Limited | 100.00 | 16 | |
Keyser Ullmann Limited | 100.00 | (99.99) | 16 |
Lion Corporate Services Limited | 100.00 | 48 | |
Lion International Corporate Services Limited | 100.00 | 1, 151 | |
Lion International Management Limited | 100.00 | 151 | |
Lion Management (Hong Kong) Limited | 100.00 | 1, 48 | |
Lyndholme Limited | 100.00 | 48 | |
Marks and Spencer Financial Services plc | 100.00 | 152 | |
Marks and Spencer Unit Trust Management Limited | 100.00 | 152 | |
Midcorp Limited | 100.00 | 16 | |
Midland Bank (Branch Nominees) Limited | 100.00 | 18 | |
Midland Nominees Limited | 100.00 | 18 | |
MP Payments Group Limited | 100.00 | 1, 16 | |
MP Payments Netherlands B.V. | 100.00 | 1, 153 | |
MP Payments Operations Limited | 100.00 | 1, 16 | |
MP Payments Singapore Pte. Ltd. | 100.00 | 1, 154 | |
MP Payments UK Limited | 100.00 | 1, 16 | |
MW Gestion SA | 100.00 | 56 | |
Prudential Client HSBC GIS Nominee (UK) Limited | 100.00 | 16 | |
PT Bank HSBC Indonesia | 99.99 | (98.93) | 155 |
PT HSBC Sekuritas Indonesia | 100.00 | (85.00) | 155 |
R/CLIP Corp. | 100.00 | 15 | |
Real Estate Collateral Management Company | 100.00 | 15 | |
Republic Nominees Limited | 100.00 | 22 | |
RLUKREF Nominees (UK) One Limited | 100.00 | 1, 16 | |
RLUKREF Nominees (UK) Two Limited | 100.00 | 1, 16 | |
S.A.P.C. - Ufipro Recouvrement | 99.99 | 11, 37 | |
Saf Baiyun | 100.00 | (99.99) | 4, 37 |
Saf Guangzhou | 100.00 | (99.99) | 4, 37 |
SCI HSBC Assurances Immo | 100.00 | (99.99) | 11, 59 |
Serai Limited | 100.00 | 48 | |
Serai Technology Development (Shanghai) Limited (\u4e1d\u777f\u79d1\u6280\u5f00\u53d1\uff08\u4e0a\u6d77\uff09\u6709\u9650\u516c\u53f8) | N/A | 0, 1, 12, 156 | |
SFM | 100.00 | (99.99) | 4, 37 |
SFSS Nominees (Pty) Limited | 100.00 | 136 | |
Shandong Rongcheng HSBC Rural Bank Company Limited | N/A | 0, 12, 157 | |
Shenzhen HSBC Development Company Ltd | N/A | 0, 1, 12, 158 | |
Sico Limited | 100.00 | 159 | |
SNC Les Oliviers D'Antibes | 60.00 | (59.99) | 11, 59 |
SNCB/M6-2008 A | 100.00 | (99.99) | 4, 37 |
SNCB/M6-2007 A | 100.00 | (99.99) | 4, 37 |
SNCB/M6-2007 B | 100.00 | (99.99) | 4, 37 |
Soci\u00e9t\u00e9 Fran\u00e7aise et Suisse | 100.00 | (99.99) | 4, 37 |
Somers Dublin DAC | 100.00 | (99.99) | 127 |
Somers Nominees (Far East) Limited | 100.00 | 23 | |
Sopingest | 100.00 | (99.99) | 4, 37 |
South Yorkshire Light Rail Limited | 100.00 | 16 | |
St Cross Trustees Limited | 100.00 | 18 | |
Sterling Credit Limited | 100.00 | 183 | |
Sun Hung Kai Development (Lujiazui III) Limited | N/A | 0, 12, 160 |
Subsidiaries | % of share class held by immediate parent company (or by the Group where this varies) | Footnotes | |
Swan National Limited (In Liquidation) | 100.00 | 19 | |
The Hongkong and Shanghai Banking Corporation Limited | 100.00 | 5, 48 | |
The Venture Catalysts Limited (In Liquidation) | 100.00 | 19 | |
Tooley Street View Limited | 100.00 | 2, 16 | |
Trinkaus Europa Immobilien-Fonds Nr.3 Objekt Utrecht Verwaltungs-GmbH | 100.00 | (99.99) | 6, 92 |
Trinkaus Immobilien-Fonds Geschaeftsfuehrungs-GmbH | 100.00 | (99.99) | 6, 92 |
Trinkaus Immobilien-Fonds Verwaltungs- GmbH | 100.00 | (99.99) | 6, 92 |
Trinkaus Private Equity Management GmbH | 100.00 | (99.99) | 6, 92 |
Trinkaus Private Equity Verwaltungs GmbH | 100.00 | (99.99) | 6, 92 |
Turnsonic (Nominees) Limited | 100.00 | 18 | |
Valeurs Mobili\u00e8res Elys\u00e9es | 100.00 | (99.99) | 4, 37 |
Wardley Limited | 100.00 | 48 | |
Wayfoong Nominees Limited | 100.00 | 48 | |
Westminster House, LLC | N/A | 0, 15 | |
Woodex Limited | 100.00 | 23 | |
Yan Nin Development Company Limited | 100.00 | (62.14) | 40 |
21 | Goodwill and intangible assets |
2023 | 2022\u00b9 | |
$m | $m | |
Goodwill | 4,323 | 4,156 |
Other intangible assets2 | 8,164 | 7,263 |
At 31 Dec | 12,487 | 11,419 |
Movement analysis of goodwill | ||
2023 | 2022 | |
$m | $m | |
Gross amount | ||
At 1 Jan | 18,965 | 22,215 |
Exchange differences | 523 | (776) |
Reclassified to held for sale and additions1 | 73 | (2,485) |
Other | (1) | 11 |
At 31 Dec | 19,560 | 18,965 |
Accumulated impairment losses | ||
At 1 Jan | (14,809) | (17,182) |
Exchange differences | (428) | 482 |
Reclassified to held for sale1 | \u2014 | 1,891 |
At 31 Dec | (15,237) | (14,809) |
Net carrying amount at 31 Dec | 4,323 | 4,156 |
Key assumptions in VIU calculation \u2013 significant CGUs at 1 October 2023 | ||||||||||
Carrying amount at 1\u00a0Oct 2023 | of which goodwill | Value in use at 1\u00a0Oct 2023 | Discount rate | Growth rate beyond initial cash flow | Carrying amount at 1\u00a0Oct\u00a02022 | of which goodwill | Value in use at 1\u00a0Oct 2022 | Discount rate | Growth rate beyond initial cash flow projections | |
$m | $m | $m | % | % | $m | $m | $m | % | % | |
HSBC UK Bank plc \u2013 WPB1 | 11,167 | 2,597 | 27,933 | 10.4 | 2.0 | N/A | N/A | N/A | N/A | N/A |
Europe \u2013 WPB1 | N/A | N/A | N/A | N/A | N/A | 15,215 | 2,643 | 46,596 | 9.9 | 2.0 |
Movement analysis of goodwill | ||
2023 | 2022 | |
$m | $m | |
Gross amount | ||
At 1 Jan | 18,965 | 22,215 |
Exchange differences | 523 | (776) |
Reclassified to held for sale and additions1 | 73 | (2,485) |
Other | (1) | 11 |
At 31 Dec | 19,560 | 18,965 |
Accumulated impairment losses | ||
At 1 Jan | (14,809) | (17,182) |
Exchange differences | (428) | 482 |
Reclassified to held for sale1 | \u2014 | 1,891 |
At 31 Dec | (15,237) | (14,809) |
Net carrying amount at 31 Dec | 4,323 | 4,156 |
Key assumptions in VIU calculation \u2013 significant CGUs at 1 October 2023 | ||||||||||
Carrying amount at 1\u00a0Oct 2023 | of which goodwill | Value in use at 1\u00a0Oct 2023 | Discount rate | Growth rate beyond initial cash flow | Carrying amount at 1\u00a0Oct\u00a02022 | of which goodwill | Value in use at 1\u00a0Oct 2022 | Discount rate | Growth rate beyond initial cash flow projections | |
$m | $m | $m | % | % | $m | $m | $m | % | % | |
HSBC UK Bank plc \u2013 WPB1 | 11,167 | 2,597 | 27,933 | 10.4 | 2.0 | N/A | N/A | N/A | N/A | N/A |
Europe \u2013 WPB1 | N/A | N/A | N/A | N/A | N/A | 15,215 | 2,643 | 46,596 | 9.9 | 2.0 |
22 | Prepayments, accrued income and other assets |
2023 | 2022\u00b9 | |
$m | $m | |
Prepayments and accrued income | 13,854 | 10,279 |
Settlement accounts | 32,853 | 19,565 |
Cash collateral and margin receivables | 57,058 | 63,421 |
Bullion | 13,701 | 15,752 |
Endorsements and acceptances | 7,939 | 8,407 |
Insurance contract assets (Note 4) | 252 | 136 |
Reinsurance contract assets | 4,728 | 4,310 |
Employee benefit assets (Note 5) | 7,750 | 7,282 |
Right-of-use assets | 2,456 | 2,219 |
Owned property, plant and equipment | 10,478 | 10,365 |
Other accounts | 14,186 | 14,413 |
At 31 Dec | 165,255 | 156,149 |
23 | Assets held for sale, liabilities of disposal groups held for sale and business acquisitions |
2023 | 2022 | |
$m | $m | |
Held for sale at 31 Dec | ||
Disposal groups | 115,836 | 118,055 |
Unallocated impairment losses1 | (1,975) | (2,385) |
Non-current assets held for sale | 273 | 249 |
Assets held for sale | 114,134 | 115,919 |
Liabilities of disposal groups held for sale | 108,406 | 114,597 |
Canada | Retail banking operations in France | Other1 | Total | |
$m | $m | $m | $m | |
Assets of disposal groups held for sale | ||||
Cash and balances at central banks2 | 5,370 | 226 | \u2014 | 5,596 |
Trading assets | 2,465 | \u2014 | \u2014 | 2,465 |
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | 15 | 49 | \u2014 | 64 |
Derivatives | 528 | \u2014 | \u2014 | 528 |
Loans and advances to banks2 | 154 | 10,333 | \u2014 | 10,487 |
Loans and advances to customers\u00a0 | 56,129 | 16,902 | 254 | 73,285 |
Reverse repurchase agreements \u2013 non-trading | 2,723 | \u2014 | \u2014 | 2,723 |
Financial investments3 | 16,978 | 33 | 17,011 | |
Goodwill | 225 | \u2014 | 225 | |
Prepayments, accrued income and other assets | 3,318 | 132 | 2 | 3,452 |
Total assets at 31 Dec 2023 | 87,905 | 27,675 | 256 | 115,836 |
Liabilities of disposal groups held for sale | ||||
Trading liabilities | 1,417 | \u2014 | \u2014 | 1,417 |
Deposits by banks | 78 | \u2014 | \u2014 | 78 |
Customer accounts\u00a0 | 63,001 | 22,307 | 642 | 85,950 |
Repurchase agreements \u2013 non-trading | 2,768 | \u2014 | \u2014 | 2,768 |
Financial liabilities designated at fair value | \u2014 | 2,370 | \u2014 | 2,370 |
Derivatives | 608 | 7 | \u2014 | 615 |
Debt securities in issue\u00a0 | 7,707 | 1,377 | \u2014 | 9,084 |
Subordinated liabilities | 8 | \u2014 | \u2014 | 8 |
Accruals, deferred income and other liabilities | 5,916 | 196 | 4 | 6,116 |
Total liabilities at 31 Dec 2023 | 81,503 | 26,257 | 646 | 108,406 |
Expected date of completion | First quarter of 2024 | 1 January 2024 | ||
Operating segment | All global businesses | WPB |
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 | 4,245 | 75 | 26 | 4,357 |
Total assets at 31 Dec 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 Dec 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 businesses | WPB |
At | |
13 Mar | |
2023 | |
$m | |
Fair value of assets acquired | 11,367 |
Fair value of liabilities acquired | (9,776) |
Fair value of net assets acquired | 1,591 |
Provisional gain on acquisition | 1,591 |
Consideration transferred settled in cash | \u2014 |
Cash and cash equivalents acquired | 1,243 |
Net cash inflow on acquisition | 1,243 |
24 | Trading liabilities |
2023 | 2022 | |
$m | $m | |
Deposits by banks1 | 6,779 | 9,332 |
Customer accounts1 | 8,955 | 10,724 |
Other debt securities in issue (Note 26) | 27 | 978 |
Other liabilities \u2013 net short positions in securities | 57,389 | 51,319 |
At 31 Dec | 73,150 | 72,353 |
26 | Debt securities in issue |
HSBC | ||
2023 | 2022 | |
$m | $m | |
Bonds and medium-term notes | 160,632 | 145,240 |
Other debt securities in issue | 37,115 | 27,027 |
Total debt securities in issue | 197,747 | 172,267 |
Included within: | ||
\u2013\u00a0 trading liabilities (Note 24) | (27) | (978) |
\u2013\u00a0 financial liabilities designated at fair value (Note 25) | (103,803) | (93,140) |
At 31 Dec | 93,917 | 78,149 |
HSBC Holdings | ||
2023 | 2022 | |
$m | $m | |
Debt securities | 100,428 | 92,361 |
Included within: | ||
\u2013\u00a0 financial liabilities designated at fair value (Note 25) | (35,189) | (25,423) |
At 31 Dec | 65,239 | 66,938 |
27 | Accruals, deferred income and other liabilities |
2023 | 2022 | |
$m | $m | |
Accruals and deferred income | 16,814 | 12,605 |
Settlement accounts | 28,423 | 18,178 |
Cash collateral and margin payables | 56,832 | 70,298 |
Endorsements and acceptances | 7,911 | 8,379 |
Employee benefit liabilities (Note 5) | 1,160 | 1,096 |
Reinsurance contract liabilities | 819 | 748 |
Lease liabilities | 2,813 | 2,767 |
Other liabilities | 21,834 | 20,242 |
At 31 Dec | 136,606 | 134,313 |
27 | Accruals, deferred income and other liabilities |
2023 | 2022 | |
$m | $m | |
Accruals and deferred income | 16,814 | 12,605 |
Settlement accounts | 28,423 | 18,178 |
Cash collateral and margin payables | 56,832 | 70,298 |
Endorsements and acceptances | 7,911 | 8,379 |
Employee benefit liabilities (Note 5) | 1,160 | 1,096 |
Reinsurance contract liabilities | 819 | 748 |
Lease liabilities | 2,813 | 2,767 |
Other liabilities | 21,834 | 20,242 |
At 31 Dec | 136,606 | 134,313 |
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 2023 | 445 | 409 | 195 | 397 | 1,446 |
Additions | 255 | 236 | 37 | 170 | 698 |
Amounts utilised | (288) | (231) | (69) | (68) | (656) |
Unused amounts reversed | (149) | (30) | (41) | (95) | (315) |
Exchange and other movements | 21 | (4) | 8 | 16 | 41 |
At 31 Dec 2023 | 284 | 380 | 130 | 420 | 1,214 |
Contractual commitments1 | |||||
At 1 Jan 2023 | 512 | ||||
Net change in expected credit loss provision and other movements | 15 | ||||
At 31 Dec 2023 | 527 | ||||
Total provisions | |||||
At 31 Dec 2022 | 1,958 | ||||
At 31 Dec 2023 | 1,741 |
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 |
29 | Subordinated liabilities |
HSBC\u2019s subordinated liabilities | ||
2023 | 2022 | |
$m | $m | |
At amortised cost | 24,954 | 22,290 |
\u2013\u00a0 subordinated liabilities | 23,149 | 20,547 |
\u2013\u00a0 preferred securities | 1,805 | 1,743 |
Designated at fair value (Note 25) | 11,477 | 9,636 |
\u2013\u00a0 subordinated liabilities | 11,477 | 9,636 |
\u2013\u00a0 preferred securities | \u2014 | \u2014 |
At 31 Dec | 36,431 | 31,926 |
Issued by HSBC subsidiaries | 4,154 | 6,094 |
Issued by HSBC Holdings | 32,277 | 25,832 |
HSBC\u2019s subordinated liabilities: subsidiaries | ||
2023 | 2022 | |
$m | $m | |
Additional tier 1 capital securities issued by HSBC subsidiaries | 1,672 | 1,584 |
Tier 2 securities issued by HSBC subsidiaries | ||
\u2013\u00a0 Tier 2 securities issued by HSBC Bank plc | 764 | 2,427 |
\u2013\u00a0 Tier 2 securities issued by The Hongkong and Shanghai Banking Corporation Limited | \u2014 | 400 |
\u2013\u00a0 Tier 2 securities issued by HSBC Bank USA Inc | 223 | 223 |
\u2013\u00a0 Tier 2 securities issued by HSBC Bank USA N.A. | 1,449 | 1,405 |
\u2013\u00a0 Tier 2 securities issued by HSBC Bank Canada1 | \u2014 | \u2014 |
Securities issued by other HSBC subsidiaries | 46 | 55 |
Subordinated liabilities issued by HSBC subsidiaries at 31 Dec | 4,154 | 6,094 |
HSBC Holdings\u2019 subordinated liabilities | ||
2023 | 2022 | |
$m | $m | |
At amortised cost | 24,439 | 19,727 |
Designated at fair value (Note 25) | 8,449 | 6,700 |
At 31 Dec | 32,888 | 26,427 |
HSBC Holdings\u2019 subordinated liabilities in issue | ||
2023 | 2022 | |
$m | $m | |
Tier 2 securities issued by HSBC Holdings | ||
Amounts owed to third parties | 31,975 | 25,527 |
Amounts owed to HSBC undertakings | 913 | 900 |
Subordinated liabilities issued by HSBC Holdings at 31 Dec | 32,888 | 26,427 |
29 | Subordinated liabilities |
HSBC\u2019s subordinated liabilities | ||
2023 | 2022 | |
$m | $m | |
At amortised cost | 24,954 | 22,290 |
\u2013\u00a0 subordinated liabilities | 23,149 | 20,547 |
\u2013\u00a0 preferred securities | 1,805 | 1,743 |
Designated at fair value (Note 25) | 11,477 | 9,636 |
\u2013\u00a0 subordinated liabilities | 11,477 | 9,636 |
\u2013\u00a0 preferred securities | \u2014 | \u2014 |
At 31 Dec | 36,431 | 31,926 |
Issued by HSBC subsidiaries | 4,154 | 6,094 |
Issued by HSBC Holdings | 32,277 | 25,832 |
HSBC\u2019s subordinated liabilities: subsidiaries | ||
2023 | 2022 | |
$m | $m | |
Additional tier 1 capital securities issued by HSBC subsidiaries | 1,672 | 1,584 |
Tier 2 securities issued by HSBC subsidiaries | ||
\u2013\u00a0 Tier 2 securities issued by HSBC Bank plc | 764 | 2,427 |
\u2013\u00a0 Tier 2 securities issued by The Hongkong and Shanghai Banking Corporation Limited | \u2014 | 400 |
\u2013\u00a0 Tier 2 securities issued by HSBC Bank USA Inc | 223 | 223 |
\u2013\u00a0 Tier 2 securities issued by HSBC Bank USA N.A. | 1,449 | 1,405 |
\u2013\u00a0 Tier 2 securities issued by HSBC Bank Canada1 | \u2014 | \u2014 |
Securities issued by other HSBC subsidiaries | 46 | 55 |
Subordinated liabilities issued by HSBC subsidiaries at 31 Dec | 4,154 | 6,094 |
HSBC Holdings\u2019 subordinated liabilities | ||
2023 | 2022 | |
$m | $m | |
At amortised cost | 24,439 | 19,727 |
Designated at fair value (Note 25) | 8,449 | 6,700 |
At 31 Dec | 32,888 | 26,427 |
HSBC Holdings\u2019 subordinated liabilities in issue | ||
2023 | 2022 | |
$m | $m | |
Tier 2 securities issued by HSBC Holdings | ||
Amounts owed to third parties | 31,975 | 25,527 |
Amounts owed to HSBC undertakings | 913 | 900 |
Subordinated liabilities issued by HSBC Holdings at 31 Dec | 32,888 | 26,427 |
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 | 285,868 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 285,868 |
Items in the course of collection from other banks | 6,342 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 6,342 |
Hong Kong Government certificates of indebtedness | 42,024 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 42,024 |
Trading assets | 284,865 | 2,010 | 637 | 363 | 555 | 165 | 564 | \u2014 | 289,159 |
Financial assets designated or otherwise mandatorily measured at fair value | 5,530 | 697 | 821 | 753 | 581 | 4,839 | 11,917 | 85,505 | 110,643 |
Derivatives | 227,343 | 138 | 134 | 71 | 35 | 383 | 570 | 1,040 | 229,714 |
Loans and advances to banks | 76,524 | 18,662 | 6,487 | 2,689 | 3,281 | 2,756 | 2,328 | 175 | 112,902 |
Loans and advances to customers | 142,803 | 66,425 | 52,218 | 40,135 | 36,323 | 94,206 | 175,381 | 331,044 | 938,535 |
\u2013\u00a0 personal | 44,105 | 9,558 | 6,960 | 6,422 | 6,127 | 19,606 | 54,365 | 297,512 | 444,655 |
\u2013\u00a0 corporate and commercial | 83,281 | 50,268 | 38,250 | 24,685 | 24,566 | 61,612 | 106,598 | 30,592 | 419,852 |
\u2013\u00a0 financial | 15,417 | 6,599 | 7,008 | 9,028 | 5,630 | 12,988 | 14,418 | 2,940 | 74,028 |
Reverse repurchase agreements \u2013 non-trading | 164,826 | 43,893 | 23,840 | 6,708 | 5,126 | 6,113 | 1,711 | \u2014 | 252,217 |
Financial investments | 48,969 | 69,816 | 44,493 | 16,348 | 18,603 | 46,124 | 106,117 | 92,293 | 442,763 |
Assets held for sale2 | 39,882 | 2,929 | 7,041 | 4,176 | 3,261 | 17,085 | 33,015 | 7,943 | 115,332 |
Accrued income and other financial assets | 108,138 | 6,574 | 4,404 | 550 | 698 | 220 | 764 | 1,513 | 122,861 |
Financial assets at 31 Dec 2023 | 1,433,114 | 211,144 | 140,075 | 71,793 | 68,463 | 171,891 | 332,367 | 519,513 | 2,948,360 |
Non-financial assets | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 90,317 | 90,317 |
Total assets at 31 Dec 2023 | 1,433,114 | 211,144 | 140,075 | 71,793 | 68,463 | 171,891 | 332,367 | 609,830 | 3,038,677 |
Off-balance sheet commitments received | |||||||||
Loan and other credit-related commitments | 39,836 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 39,836 |
Financial liabilities | |||||||||
Hong Kong currency notes in circulation | 42,024 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 42,024 |
Deposits by banks | 52,747 | 2,758 | 2,324 | 381 | 94 | 1,458 | 13,064 | 337 | 73,163 |
Customer accounts | 1,343,858 | 138,117 | 78,611 | 20,832 | 17,724 | 7,785 | 4,616 | 104 | 1,611,647 |
\u2013\u00a0 personal | 621,112 | 84,909 | 61,286 | 14,794 | 12,465 | 5,507 | 2,742 | 2 | 802,817 |
\u2013\u00a0 corporate and commercial | 545,207 | 43,562 | 14,525 | 4,605 | 3,393 | 2,165 | 1,527 | 92 | 615,076 |
\u2013\u00a0 financial | 177,539 | 9,646 | 2,800 | 1,433 | 1,866 | 113 | 347 | 10 | 193,754 |
Repurchase agreements \u2013 non-trading | 158,882 | 10,311 | 1,759 | 300 | 847 | 1 | \u2014 | \u2014 | 172,100 |
Items in the course of transmission to other banks | 7,295 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 7,295 |
Trading liabilities | 66,548 | 6,302 | 300 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 73,150 |
Financial liabilities designated at fair value | 22,080 | 8,366 | 7,823 | 7,197 | 6,239 | 16,679 | 39,497 | 33,545 | 141,426 |
\u2013\u00a0 debt securities in issue: covered bonds | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
\u2013\u00a0 debt securities in issue: unsecured | 10,383 | 2,760 | 5,748 | 6,225 | 5,390 | 14,090 | 34,757 | 23,898 | 103,251 |
\u2013\u00a0 subordinated liabilities and preferred securities | \u2014 | 1,995 | \u2014 | \u2014 | \u2014 | 1,471 | 3,429 | 4,581 | 11,476 |
\u2013\u00a0 other | 11,697 | 3,611 | 2,075 | 972 | 849 | 1,118 | 1,311 | 5,066 | 26,699 |
Derivatives | 233,134 | 113 | 25 | 9 | 47 | 73 | 1,223 | 148 | 234,772 |
Debt securities in issue | 6,891 | 6,664 | 10,816 | 6,896 | 6,427 | 6,317 | 27,452 | 22,454 | 93,917 |
\u2013\u00a0 covered bonds | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 1,273 | \u2014 | 1,273 |
\u2013\u00a0 otherwise secured | 447 | 44 | 62 | 58 | 55 | 188 | 861 | 1,679 | 3,394 |
\u2013\u00a0 unsecured | 6,444 | 6,620 | 10,754 | 6,838 | 6,372 | 6,129 | 25,318 | 20,775 | 89,250 |
Liabilities of disposal groups held for sale3 | 69,868 | 5,231 | 5,479 | 6,728 | 6,541 | 4,730 | 7,918 | 1,511 | 108,006 |
Accruals and other financial liabilities | 104,264 | 11,827 | 6,007 | 1,205 | 1,414 | 1,053 | 1,491 | 2,137 | 129,398 |
Subordinated liabilities | \u2014 | 13 | \u2014 | \u2014 | \u2014 | 1,790 | 897 | 22,254 | 24,954 |
Total financial liabilities at 31 Dec 2023 | 2,107,591 | 189,702 | 113,144 | 43,548 | 39,333 | 39,886 | 96,158 | 82,490 | 2,711,852 |
Non-financial liabilities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 134,215 | 134,215 |
Total liabilities at 31 Dec 2023 | 2,107,591 | 189,702 | 113,144 | 43,548 | 39,333 | 39,886 | 96,158 | 216,705 | 2,846,067 |
Off-balance sheet commitments given | |||||||||
Loan and other credit-related commitments | 895,140 | 95 | 126 | 72 | 171 | 439 | 807 | 300 | 897,150 |
\u2013\u00a0 personal | 256,272 | 21 | 30 | 46 | 107 | 279 | 745 | 192 | 257,692 |
\u2013\u00a0 corporate and commercial | 472,507 | 74 | 26 | 26 | 64 | 160 | 62 | 108 | 473,027 |
\u2013\u00a0 financial | 166,361 | \u2014 | 70 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 166,431 |
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 | 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 at fair value | 3,282 | 718 | 1,369 | 1,178 | 479 | 1,967 | 13,353 | 77,755 | 100,101 |
Derivatives | 281,724 | 132 | 29 | 21 | 65 | 261 | 1,052 | 875 | 284,159 |
Loans and advances to banks | 72,240 | 13,965 | 8,323 | 860 | 2,328 | 3,058 | 3,569 | 132 | 104,475 |
Loans and advances to customers | 139,934 | 75,486 | 58,951 | 35,633 | 33,730 | 99,933 | 173,076 | 306,818 | 923,561 |
\u2013\u00a0 personal | 41,834 | 9,141 | 6,659 | 5,745 | 5,773 | 18,326 | 51,050 | 273,487 | 412,015 |
\u2013\u00a0 corporate and commercial | 84,955 | 60,067 | 45,695 | 24,430 | 22,629 | 68,473 | 108,418 | 30,231 | 444,898 |
\u2013\u00a0 financial | 13,145 | 6,278 | 6,597 | 5,458 | 5,328 | 13,134 | 13,608 | 3,100 | 66,648 |
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 | 46,493 | 79,309 | 30,722 | 11,798 | 13,067 | 40,710 | 67,951 | 74,676 | 364,726 |
Assets held for sale2 | 33,781 | 3,755 | 3,452 | 3,044 | 3,263 | 15,369 | 40,017 | 14,697 | 117,378 |
Accrued income and other financial assets | 99,113 | 6,042 | 3,766 | 620 | 703 | 543 | 302 | 1,295 | 112,384 |
Financial assets at 31 Dec 2022 | 1,439,060 | 232,476 | 124,119 | 59,332 | 56,836 | 166,648 | 301,608 | 476,638 | 2,856,717 |
Non-financial assets | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 92,569 | 92,569 |
Total assets at 31 Dec 2022 | 1,439,060 | 232,476 | 124,119 | 59,332 | 56,836 | 166,648 | 301,608 | 569,207 | 2,949,286 |
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 | 16,430 | 7,398 | 6,562 | 4,308 | 5,325 | 19,287 | 34,886 | 33,125 | 127,321 |
\u2013\u00a0 debt securities in issue: covered bonds | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
\u2013\u00a0 debt securities in issue: unsecured | 7,056 | 3,620 | 4,793 | 3,157 | 4,288 | 16,234 | 29,941 | 23,510 | 92,599 |
\u2013\u00a0 subordinated liabilities and preferred\u00a0 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 | 5,625 | 25,086 |
Derivatives | 284,412 | 73 | 18 | 46 | 57 | 171 | 849 | 136 | 285,762 |
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 sale3 | 76,928 | 4,342 | 5,374 | 6,599 | 8,606 | 2,343 | 8,653 | 1,479 | 114,324 |
Accruals and other financial liabilities | 104,295 | 9,576 | 4,776 | 967 | 1,564 | 1,028 | 2,016 | 1,725 | 125,947 |
Subordinated liabilities | \u2014 | \u2014 | 11 | 160 | \u2014 | \u2014 | 1,689 | 20,430 | 22,290 |
Total financial liabilities at 31 Dec 2022 | 2,160,741 | 131,728 | 76,405 | 31,557 | 37,326 | 39,567 | 85,712 | 79,533 | 2,642,569 |
Non-financial liabilities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 121,520 | 121,520 |
Total liabilities at 31 Dec 2022 | 2,160,741 | 131,728 | 76,405 | 31,557 | 37,326 | 39,567 | 85,712 | 201,053 | 2,764,089 |
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 | |||||||||
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 | 7,029 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 7,029 |
Financial assets with HSBC undertakings designated and otherwise mandatorily measured at fair value | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 3,815 | 26,284 | 29,780 | 59,879 |
Derivatives | 2,217 | \u2014 | \u2014 | \u2014 | \u2014 | 18 | 675 | 434 | 3,344 |
Loans and advances to HSBC undertakings | \u2014 | \u2014 | 120 | \u2014 | \u2014 | 1,016 | 6,783 | 19,435 | 27,354 |
Financial investments | 10,365 | 6,017 | 898 | 750 | 757 | 771 | \u2014 | \u2014 | 19,558 |
Accrued income and other financial assets | 3,511 | 860 | 254 | 229 | 5 | \u2014 | \u2014 | \u2014 | 4,859 |
Total financial assets at 31 Dec 2023 | 23,122 | 6,877 | 1,272 | 979 | 762 | 5,620 | 33,742 | 49,649 | 122,023 |
Non-financial assets | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 163,146 | 163,146 |
Total assets at 31 Dec 2023 | 23,122 | 6,877 | 1,272 | 979 | 762 | 5,620 | 33,742 | 212,795 | 285,169 |
Financial liabilities | |||||||||
Amounts owed to HSBC undertakings | \u2014 | 168 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 168 |
Financial liabilities designated at fair\u00a0value | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 5,287 | 19,604 | 18,747 | 43,638 |
\u2013\u00a0 debt securities in issue | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 3,816 | 16,175 | 15,198 | 35,189 |
\u2013\u00a0 subordinated liabilities and preferred securities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 1,471 | 3,429 | 3,549 | 8,449 |
Derivatives | 2,452 | 209 | 7 | 59 | 75 | 558 | 1,318 | 1,412 | 6,090 |
Debt securities in issue | \u2014 | \u2014 | 816 | 2,158 | \u2014 | 4,920 | 33,735 | 23,610 | 65,239 |
Accruals and other financial liabilities | 1,437 | 1,599 | 1,049 | 127 | 34 | \u2014 | \u2014 | 23 | 4,269 |
Subordinated liabilities | \u2014 | 1,987 | \u2014 | \u2014 | \u2014 | 1,600 | 880 | 19,972 | 24,439 |
Total financial liabilities 31 Dec 2023 | 3,889 | 3,963 | 1,872 | 2,344 | 109 | 12,365 | 55,537 | 63,764 | 143,843 |
Non-financial liabilities | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 20 | 20 |
Total liabilities at 31 Dec 2023 | 3,889 | 3,963 | 1,872 | 2,344 | 109 | 12,365 | 55,537 | 63,784 | 143,863 |
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 |
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 |
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 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\u00a0Dec\u00a02022 | 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 value | \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 at 31\u00a0Dec 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 |
Cash flows payable by HSBC 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 | |
Deposits by banks | 52,938 | 2,898 | 3,304 | 17,123 | 362 | 76,625 |
Customer accounts | 1,345,006 | 141,348 | 119,660 | 13,423 | 109 | 1,619,546 |
Repurchase agreements \u2013 non-trading | 159,264 | 10,457 | 2,996 | 1 | \u2014 | 172,718 |
Trading liabilities | 73,150 | \u2014 | \u2014 | \u2014 | \u2014 | 73,150 |
Financial liabilities designated at fair value | 22,262 | 9,156 | 26,033 | 63,960 | 44,886 | 166,297 |
Derivatives | 232,598 | 609 | 1,295 | 2,445 | 2,910 | 239,857 |
Debt securities in issue | 6,837 | 7,407 | 24,117 | 43,513 | 27,119 | 108,993 |
Subordinated liabilities | 39 | 135 | 1,465 | 9,020 | 34,920 | 45,579 |
Other financial liabilities1 | 149,904 | 9,752 | 5,943 | 2,555 | 2,109 | 170,263 |
2,041,998 | 181,762 | 184,813 | 152,040 | 112,415 | 2,673,028 | |
Loan and other credit-related commitments | 895,156 | 95 | 371 | 1,437 | 91 | 897,150 |
Financial guarantees2 | 16,966 | 4 | 39 | \u2014 | \u2014 | 17,009 |
At 31 Dec 2023 | 2,954,120 | 181,861 | 185,223 | 153,477 | 112,506 | 3,587,187 |
Proportion of cash flows payable in period | 83% | 5% | 5% | 4% | 3% | |
Deposits by banks | 47,082 | 406 | 4,024 | 16,050 | 359 | 67,921 |
Customer accounts | 1,387,125 | 96,474 | 80,608 | 9,961 | 346 | 1,574,514 |
Repurchase agreements \u2013 non-trading | 121,328 | 3,852 | 1,535 | 1,268 | \u2014 | 127,983 |
Trading liabilities | 72,353 | \u2014 | \u2014 | \u2014 | \u2014 | 72,353 |
Financial liabilities designated at fair value | 16,687 | 7,859 | 18,740 | 63,606 | 43,475 | 150,367 |
Derivatives | 283,512 | 171 | 1,181 | 2,222 | 1,059 | 288,145 |
Debt securities in issue | 4,329 | 8,217 | 17,522 | 34,283 | 26,428 | 90,779 |
Subordinated liabilities | 37 | 168 | 1,395 | 7,321 | 32,946 | 41,867 |
Other financial liabilities1 | 153,597 | 8,670 | 5,994 | 3,230 | 1,704 | 173,195 |
2,086,050 | 125,817 | 130,999 | 137,941 | 106,317 | 2,587,124 | |
Loan and other credit-related commitments | 825,781 | 184 | 344 | 1,217 | 328 | 827,854 |
Financial guarantees2 | 18,696 | 25 | 62 | \u2014 | \u2014 | 18,783 |
At 31 Dec 2022 | 2,930,527 | 126,026 | 131,405 | 139,158 | 106,645 | 3,433,761 |
Proportion of cash flows payable in period | 85% | 4% | 4% | 4% | 3% |
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 | \u2014 | 168 | \u2014 | \u2014 | \u2014 | 168 |
Financial liabilities designated at fair value | 23 | 405 | 1,437 | 31,050 | 25,610 | 58,525 |
Derivatives | 1,244 | 556 | 1,651 | 2,227 | 726 | 6,404 |
Debt securities in issue | \u2014 | 680 | 4,787 | 46,909 | 27,745 | 80,121 |
Subordinated liabilities | 46 | 2,163 | 1,360 | 8,239 | 30,862 | 42,670 |
Other financial liabilities | 1,436 | 1,620 | 1,210 | \u2014 | 23 | 4,289 |
2,749 | 5,592 | 10,445 | 88,425 | 84,966 | 192,177 | |
Loan commitments | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Financial guarantees1 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
At 31 Dec 2023 | 2,749 | 5,592 | 10,445 | 88,425 | 84,966 | 192,177 |
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 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
At 31 Dec 2022 | 2,008 | 1,678 | 8,940 | 80,036 | 80,133 | 172,795 |
33 | Called up share capital and other equity instruments |
HSBC Holdings ordinary shares of $0.50 each, issued and fully paid | ||||
2023 | 2022 | |||
Number | $m | Number | $m | |
At 1 Jan | 20,293,607,410 | 10,147 | 20,631,520,439 | 10,316 |
Shares issued under HSBC employee share plans | 10,778,479 | 5 | 10,226,221 | 5 |
Shares issued in lieu of dividends | \u2014 | \u2014 | \u2014 | \u2014 |
Less: shares repurchased and cancelled | 716,384,289 | 358 | 348,139,250 | 174 |
Less: treasury shares cancelled | 325,273,407 | 163 | \u2014 | \u2014 |
At 31 Dec1 | 19,262,728,193 | 9,631 | 20,293,607,410 | 10,147 |
HSBC Holdings share premium | ||
2023 | 2022 | |
$m | $m | |
At 31 Dec | 14,738 | 14,664 |
Total called up share capital and share premium | ||
2023 | 2022 | |
$m | $m | |
At 31 Dec | 24,369 | 24,811 |
HSBC\u2019s additional tier 1 capital \u2013 contingent convertible securities in issue which are accounted for in equity | ||||
Original nominal amount (LCY) | First call date | 2023 | 2022 | |
$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 | \u2014 | 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 |
\u20ac1,000m | 4.000% perpetual subordinated contingent convertible securitiess3 | Mar 2026 | 1,000 | 1,000 |
$1,000m | 4.700% perpetual subordinated contingent convertible securities4 | Mar 2031 | 1,000 | 1,000 |
$2,000m | 8.000% perpetual subordinated contingent convertible securities5 | Mar 2028 | 1,980 | \u2014 |
\u20ac1,000m | 6.000% perpetual subordinated contingent convertible securities6 | Sep 2023 | \u2014 | 1,123 |
\u20ac1,250m | 4.750% perpetual subordinated contingent convertible securities | Jul 2029 | 1,422 | 1,422 |
S$750m | 5.000% perpetual subordinated contingent convertible securities7 | Sep 2023 | \u2014 | 550 |
\u20ac1,000m | 5.875% perpetual subordinated contingent convertible securities | Sep 2026 | 1,301 | 1,301 |
At 31 Dec | 17,703 | 19,746 |
Aggregate options outstanding under these plans | |||||
31 Dec 2023 | 31 Dec 2022 | ||||
Number of HSBC Holdings ordinary shares | Usual period of exercise | Exercise price | Number of HSBC Holdings ordinary shares | Usual period of exercise | Exercise price |
83,993,678 | 2022 to 2029 | \u00a32.6270\u2013\u00a35.4490 | 115,650,723 | 2021 to 2028 | \u00a32.6270\u20135.9640 |
HSBC Holdings ordinary shares of $0.50 each, issued and fully paid | ||||
2023 | 2022 | |||
Number | $m | Number | $m | |
At 1 Jan | 20,293,607,410 | 10,147 | 20,631,520,439 | 10,316 |
Shares issued under HSBC employee share plans | 10,778,479 | 5 | 10,226,221 | 5 |
Shares issued in lieu of dividends | \u2014 | \u2014 | \u2014 | \u2014 |
Less: shares repurchased and cancelled | 716,384,289 | 358 | 348,139,250 | 174 |
Less: treasury shares cancelled | 325,273,407 | 163 | \u2014 | \u2014 |
At 31 Dec1 | 19,262,728,193 | 9,631 | 20,293,607,410 | 10,147 |
Total called up share capital and share premium | ||
2023 | 2022 | |
$m | $m | |
At 31 Dec | 24,369 | 24,811 |
34 | Contingent liabilities, contractual commitments and guarantees |
HSBC | HSBC Holdings1 | |||
2023 | 2022 | 2023 | 2022 | |
$m | $m | $m | $m | |
Guarantees and other contingent liabilities: | ||||
\u2013\u00a0 financial guarantees | 17,009 | 18,783 | \u2014 | \u2014 |
\u2013\u00a0 performance and other guarantees | 94,277 | 88,240 | 7,723 | 17,707 |
\u2013\u00a0 other contingent liabilities | 636 | 676 | \u2014 | 90 |
At 31 Dec | 111,922 | 107,699 | 7,723 | 17,797 |
Commitments:2 | ||||
\u2013\u00a0 documentary credits and short-term trade-related transactions | 7,818 | 8,241 | \u2014 | \u2014 |
\u2013\u00a0 forward asset purchases and forward deposits placed | 78,535 | 50,852 | \u2014 | \u2014 |
\u2013\u00a0 standby facilities, credit lines and other commitments to lend | 810,797 | 768,761 | \u2014 | \u2014 |
At 31 Dec | 897,150 | 827,854 | \u2014 | \u2014 |
35 | Finance lease receivables |
2023 | 2022 | |||||
Total future minimum payments | Unearned finance income | Present value | Total future minimum payments | Unearned finance income | Present value | |
$m | $m | $m | $m | $m | $m | |
Lease receivables: | ||||||
No later than one year | 2,355 | (308) | 2,047 | 2,159 | (236) | 1,923 |
One to two years | 1,954 | (249) | 1,705 | 1,652 | (201) | 1,451 |
Two to three years | 1,380 | (189) | 1,191 | 1,391 | (161) | 1,230 |
Three to four years | 930 | (153) | 777 | 906 | (131) | 775 |
Four to five years | 593 | (132) | 461 | 613 | (112) | 501 |
Later than one year and no later than five\u00a0years | 4,857 | (723) | 4,134 | 4,562 | (605) | 3,957 |
Later than five years | 4,116 | (838) | 3,278 | 4,064 | (736) | 3,328 |
At 31 Dec | 11,328 | (1,869) | 9,459 | 10,785 | (1,577) | 9,208 |
36 | Legal proceedings and regulatory matters |
37 | Related party transactions\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 |
Compensation of Key Management Personnel | |||
2023 | 2022 | 2021 | |
$m | $m | $m | |
Short-term employee benefits | 51 | 52 | 50 |
Post-employment benefits | 1 | 1 | \u2014 |
Other long-term employee benefits | 10 | 8 | 6 |
Share-based payments | 29 | 26 | 27 |
Year ended 31 Dec | 91 | 87 | 83 |
Shareholdings, options and other securities of Key Management Personnel | ||
2023 | 2022 | |
(000s) | (000s) | |
Number of options held over HSBC Holdings ordinary shares under employee share plans | 32 | 35 |
Number of HSBC Holdings ordinary shares held beneficially and non-beneficially | 20,409 | 18,185 |
Number of other HSBC securities held | 228 | 228 |
At 31 Dec | 20,669 | 18,448 |
Advances and credits, guarantees and deposit balances during the year with Key Management Personnel | ||||
2023 | 2022 | |||
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 | 11 | 16 | 16 | 25 |
Deposits | 60 | 130 | 53 | 123 |
Transactions and balances during the year with associates and joint ventures | ||||
2023 | 2022 | |||
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 | 98 | 94 | 140 | 90 |
Unsubordinated amounts due from associates | 7,907 | 5,910 | 7,378 | 6,594 |
Amounts due to associates | 3,002 | 1,668 | 2,548 | 1,295 |
Amounts due to joint ventures | 95 | 61 | 57 | 53 |
Fair value of derivative assets with associates | 1,514 | 795 | 1,205 | 841 |
Fair value of derivative liabilities with associates | 4,388 | 2,962 | 4,319 | 3,648 |
Guarantees and commitments | 503 | 331 | 513 | 293 |
Transactions and balances during the year with subsidiaries | ||||
2023 | 2022 | |||
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 | 8,396 | 7,029 | 7,421 | 3,210 |
Financial assets with HSBC undertakings designated and otherwise mandatorily measured at fair value | 60,309 | 59,879 | 52,322 | 52,322 |
Derivatives | 4,010 | 3,344 | 5,380 | 3,801 |
Loans and advances to HSBC undertakings | 28,213 | 27,354 | 26,765 | 26,765 |
Prepayments, accrued income and other assets | 7,417 | 5,145 | 4,893 | 4,803 |
Investments in subsidiaries | 167,542 | 159,478 | 167,542 | 167,542 |
Total related party assets at 31 Dec | 275,887 | 262,229 | 264,323 | 258,443 |
Liabilities | ||||
Amounts owed to HSBC undertakings | 179 | 168 | 314 | 314 |
Derivatives | 9,309 | 6,090 | 8,318 | 6,922 |
Accruals, deferred income and other liabilities | 505 | 341 | 1,375 | 429 |
Subordinated liabilities | 927 | 913 | 900 | 900 |
Total related party liabilities at 31 Dec | 10,920 | 7,512 | 10,907 | 8,565 |
Guarantees and commitments | 7,723 | 7,723 | 17,707 | 17,707 |
Compensation of Key Management Personnel | |||
2023 | 2022 | 2021 | |
$m | $m | $m | |
Short-term employee benefits | 51 | 52 | 50 |
Post-employment benefits | 1 | 1 | \u2014 |
Other long-term employee benefits | 10 | 8 | 6 |
Share-based payments | 29 | 26 | 27 |
Year ended 31 Dec | 91 | 87 | 83 |
Shareholdings, options and other securities of Key Management Personnel | ||
2023 | 2022 | |
(000s) | (000s) | |
Number of options held over HSBC Holdings ordinary shares under employee share plans | 32 | 35 |
Number of HSBC Holdings ordinary shares held beneficially and non-beneficially | 20,409 | 18,185 |
Number of other HSBC securities held | 228 | 228 |
At 31 Dec | 20,669 | 18,448 |
Advances and credits, guarantees and deposit balances during the year with Key Management Personnel | ||||
2023 | 2022 | |||
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 | 11 | 16 | 16 | 25 |
Deposits | 60 | 130 | 53 | 123 |
38 | Effects of adoption of IFRS 17 |
Under IFRS 4 | Removal of PVIF and\u00a0 IFRS 4 balances | Remeasure- ment effect of IFRS 9 re- designations | Recognition of IFRS 17 fulfilment cash flows | Recognition of IFRS 17 contractual service margin | Tax effect | Under IFRS 17 | Total movements | |
$m | $m | $m | $m | $m | $m | $m | $m | |
Assets | ||||||||
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | 49,804 | \u2014 | 60,991 | \u2014 | \u2014 | \u2014 | 110,795 | 60,991 |
Loans and advances to banks | 83,136 | \u2014 | (569) | \u2014 | \u2014 | \u2014 | 82,567 | (569) |
Loans and advances to customers | 1,045,814 | \u2014 | (1,280) | \u2014 | \u2014 | \u2014 | 1,044,534 | (1,280) |
Financial investments | 446,274 | \u2014 | (54,269) | \u2014 | \u2014 | \u2014 | 392,005 | (54,269) |
Goodwill and intangible assets | 20,622 | (9,453) | \u2014 | \u2014 | \u2014 | \u2014 | 11,169 | (9,453) |
Deferred tax assets | 4,624 | \u2014 | \u2014 | \u2014 | \u2014 | 808 | 5,432 | 808 |
All other assets | 1,307,665 | (4,468) | \u2014 | 4,198 | (105) | \u2014 | 1,307,290 | (375) |
Total assets | 2,957,939 | (13,921) | 4,873 | 4,198 | (105) | 808 | 2,953,792 | (4,147) |
Liabilities and equity | ||||||||
Liabilities | ||||||||
Insurance contract liabilities | 112,745 | (112,745) | \u2014 | 109,393 | 9,914 | \u2014 | 119,307 | 6,562 |
Deferred tax liabilities | 4,673 | \u2014 | \u2014 | \u2014 | \u2014 | (1,379) | 3,294 | (1,379) |
All other liabilities | 2,633,744 | 78 | \u2014 | 1,102 | (51) | \u2014 | 2,634,873 | 1,129 |
Total liabilities | 2,751,162 | (112,667) | \u2014 | 110,495 | 9,863 | (1,379) | 2,757,474 | 6,312 |
Total shareholders\u2019 equity | 198,250 | 92,738 | 4,558 | (99,631) | (8,847) | 1,947 | 189,015 | (9,235) |
Non-controlling interests | 8,527 | 6,008 | 315 | (6,666) | (1,121) | 240 | 7,303 | (1,224) |
Total equity | 206,777 | 98,746 | 4,873 | (106,297) | (9,968) | 2,187 | 196,318 | (10,459) |
Total liabilities and equity | 2,957,939 | (13,921) | 4,873 | 4,198 | (105) | 808 | 2,953,792 | (4,147) |
IFRS 17 transition impact on the reported Group consolidated income statement for the year ended 31 December 2022 | ||||||||||
Under IFRS 4 | Removal of PVIF and\u00a0 IFRS 4 balances | Remeasure- ment effect of IFRS 9 re- designations | Insurance finance income/ expense | Contrac - tual service margin | Onerous contracts | Experience variance and other | Attribut- able expenses | Tax effect | Under IFRS 17 | |
$m | $m | $m | $m | $m | $m | $m | $m | $m | $m | |
Net interest income | 32,610 | \u2014 | (2,233) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 30,377 |
Net fee income | 11,451 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 319 | \u2014 | 11,770 |
Net income from financial instruments held for trading or managed on a fair value basis | 10,469 | \u2014 | (191) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 10,278 |
Net expense from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss | (3,394) | \u2014 | (10,437) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (13,831) |
Net insurance premium income | 12,825 | (12,825) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Insurance finance income/(expense) | \u2014 | \u2014 | \u2014 | 13,799 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 13,799 |
Insurance service result | \u2014 | \u2014 | \u2014 | \u2014 | 965 | (186) | 30 | \u2014 | \u2014 | 809 |
\u2013\u00a0 insurance revenue | \u2014 | \u2014 | \u2014 | \u2014 | 965 | \u2014 | 1,012 | \u2014 | \u2014 | 1,977 |
\u2013\u00a0 insurance service expense | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (186) | (982) | \u2014 | \u2014 | (1,168) |
Other operating income/(loss) | (2,365) | (265) | \u2014 | 48 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (2,582) |
Total operating income | 61,596 | (13,090) | (12,861) | 13,847 | 965 | (186) | 30 | 319 | \u2014 | 50,620 |
Net insurance claims and benefits paid and movement in liabilities to policyholders | (9,869) | 9,869 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 |
Net operating income before change in expected credit losses and other credit impairment charges | 51,727 | (3,221) | (12,861) | 13,847 | 965 | (186) | 30 | 319 | \u2014 | 50,620 |
Change in expected credit losses and other credit impairment charges | (3,592) | \u2014 | 8 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | (3,584) |
Net operating income | 48,135 | (3,221) | (12,853) | 13,847 | 965 | (186) | 30 | 319 | \u2014 | 47,036 |
Total operating expenses | (33,330) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 629 | \u2014 | (32,701) |
Operating profit | 14,805 | (3,221) | (12,853) | 13,847 | 965 | (186) | 30 | 948 | \u2014 | 14,335 |
Share of profit in associates and joint ventures | 2,723 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 2,723 |
Profit before tax | 17,528 | (3,221) | (12,853) | 13,847 | 965 | (186) | 30 | 948 | \u2014 | 17,058 |
Tax expense | (858) | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | \u2014 | 49 | (809) |
Profit for the period | 16,670 | (3,221) | (12,853) | 13,847 | 965 | (186) | 30 | 948 | 49 | 16,249 |
Year ended 31 Dec 2022 | ||
Under IFRS 17 | Under IFRS 4 | |
$m | $m | |
Total equity at 1 Jan | 196,318 | 206,777 |
of which | ||
\u2013\u00a0 retained earnings | 135,236 | 144,458 |
\u2013\u00a0 financial assets at FVOCI reserve | 49 | (634) |
\u2013\u00a0 insurance finance reserve | (696) | \u2014 |
Profit for the period | 16,249 | 16,670 |
Debt instruments at fair value through other comprehensive income | (7,232) | (5,468) |
Equity instruments designated at fair value through other comprehensive income | 107 | 107 |
Insurance finance income recognised in other comprehensive income | 1,775 | \u2014 |
Other comprehensive expense for the period, net of tax | (11,892) | (11,940) |
Total comprehensive (expense)/income for the period | (993) | (631) |
Other movements | (10,128) | (10,118) |
Total equity at 31 Dec | 185,197 | 196,028 |
Group\u2018s consolidated balance sheet at the transition date and at 31 December 2022 | ||||
Under IFRS 17 | Under IFRS 4 | |||
31 Dec | 1 Jan | 31 Dec | 1 Jan | |
2022 | 2022 | 2022 | 2022 | |
$m | $m | $m | $m | |
Assets | ||||
Cash and balances at central banks | 327,002 | 403,018 | 327,002 | 403,018 |
Items in the course of collection from other banks | 7,297 | 4,136 | 7,299 | 4,136 |
Hong Kong Government certificates of indebtedness | 43,787 | 42,578 | 43,787 | 42,578 |
Trading assets | 218,093 | 248,842 | 218,093 | 248,842 |
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | 100,101 | 110,795 | 45,063 | 49,804 |
Derivatives | 284,159 | 196,882 | 284,146 | 196,882 |
Loans and advances to banks | 104,475 | 82,567 | 104,882 | 83,136 |
Loans and advances to customers | 923,561 | 1,044,534 | 924,854 | 1,045,814 |
Reverse repurchase agreements \u2013 non-trading | 253,754 | 241,648 | 253,754 | 241,648 |
Financial investments | 364,726 | 392,005 | 425,563 | 446,274 |
Assets held for sale | 115,919 | 3,411 | 115,919 | 3,411 |
Prepayments, accrued income and other assets | 156,149 | 136,196 | 156,865 | 136,571 |
Current tax assets | 1,230 | 970 | 1,230 | 970 |
Interests in associates and joint ventures | 29,254 | 29,609 | 29,254 | 29,609 |
Goodwill and intangible assets | 11,419 | 11,169 | 21,321 | 20,622 |
Deferred tax assets | 8,360 | 5,432 | 7,498 | 4,624 |
Total assets | 2,949,286 | 2,953,792 | 2,966,530 | 2,957,939 |
Liabilities and equity | ||||
Liabilities | ||||
Hong Kong currency notes in circulation | 43,787 | 42,578 | 43,787 | 42,578 |
Deposits by banks | 66,722 | 101,152 | 66,722 | 101,152 |
Customer accounts | 1,570,303 | 1,710,574 | 1,570,303 | 1,710,574 |
Repurchase agreements \u2013 non-trading | 127,747 | 126,670 | 127,747 | 126,670 |
Items in the course of transmission to other banks | 7,864 | 5,214 | 7,864 | 5,214 |
Trading liabilities | 72,353 | 84,904 | 72,353 | 84,904 |
Financial liabilities designated at fair value | 127,321 | 145,503 | 127,327 | 145,502 |
Derivatives | 285,762 | 191,064 | 285,764 | 191,064 |
Debt securities in issue | 78,149 | 78,557 | 78,149 | 78,557 |
Liabilities of disposal groups held for sale | 114,597 | 9,005 | 114,597 | 9,005 |
Accruals, deferred income and other liabilities | 134,313 | 115,900 | 133,240 | 114,773 |
Current tax liabilities | 1,135 | 699 | 1,135 | 698 |
Insurance contract liabilities | 108,816 | 119,307 | 114,844 | 112,745 |
Provisions | 1,958 | 2,566 | 1,958 | 2,566 |
Deferred tax liabilities | 972 | 3,294 | 2,422 | 4,673 |
Subordinated liabilities | 22,290 | 20,487 | 22,290 | 20,487 |
Total liabilities | 2,764,089 | 2,757,474 | 2,770,502 | 2,751,162 |
Equity | ||||
Called up share capital\u00a0 | 10,147 | 10,316 | 10,147 | 10,316 |
Share premium account | 14,664 | 14,602 | 14,664 | 14,602 |
Other equity instruments | 19,746 | 22,414 | 19,746 | 22,414 |
Other reserves | (9,133) | 6,447 | (9,141) | 6,460 |
Retained earnings | 142,409 | 135,236 | 152,068 | 144,458 |
Total shareholders\u2018 equity | 177,833 | 189,015 | 187,484 | 198,250 |
Non-controlling interests | 7,364 | 7,303 | 8,544 | 8,527 |
Total equity | 185,197 | 196,318 | 196,028 | 206,777 |
Total liabilities and equity | 2,949,286 | 2,953,792 | 2,966,530 | 2,957,939 |
39 | Events after the balance sheet date\u00a0 |