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Consolidated income statement - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Profit or loss [abstract]      
Net interest expense $ 32,610 $ 26,489 $ 27,578
– interest income [1],[2] 55,059 36,188 41,756
– interest expense [3] (22,449) (9,699) (14,178)
Net fee income 11,451 13,097 11,874
– fee income 15,213 16,788 15,051
– fee expense (3,762) (3,691) (3,177)
Net income from financial instruments held for trading or managed on a fair value basis 10,469 7,744 9,582
Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss (3,394) 4,053 2,081
Changes in fair value of designated debt and related derivatives [4] (77) (182) 231
Changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss 226 798 455
Gains less losses from financial investments (3) 569 653
Net insurance premium income 12,825 10,870 10,093
Impairment loss relating to the planned sale of the retail banking operations in France [5] (2,378) 0 0
Other operating income [6] (133) 502 527
Total operating income 61,596 63,940 63,074
Net insurance claims and benefits paid and movement in liabilities to policyholders (9,869) (14,388) (12,645)
Net operating income before change in expected credit losses and other credit impairment charges 51,727 49,552 50,429
Change in expected credit losses and other credit impairment charges (3,592) 928 (8,817)
Net operating income 48,135 50,480 41,612
Employee compensation and benefits (18,366) (18,742) (18,076)
General and administrative expenses (11,091) (11,592) (11,115)
Depreciation and impairment of property, plant and equipment and right-of-use assets [7] (2,157) (2,261) (2,681)
Amortisation and impairment of intangible assets (1,716) (1,438) (2,519)
Goodwill impairment 0 (587) (41)
Total operating expenses (33,330) (34,620) (34,432)
Operating profit 14,805 15,860 7,180
Share of profit in associates and joint ventures 2,723 3,046 1,597
Profit before tax 17,528 18,906 8,777
Tax expense (858) (4,213) (2,678)
Profit for the year 16,670 14,693 6,099
Attributable to:      
– ordinary shareholders of the parent company 14,822 12,607 3,898
– preference shareholders of the parent company 0 7 90
– other equity holders 1,213 1,303 1,241
– non-controlling interests 635 776 870
Profit for the year $ 16,670 $ 14,693 $ 6,099
Basic earnings per ordinary share (in dollars per share) $ 0.75 $ 0.62 $ 0.19
Diluted earnings per ordinary share (in dollars per share) $ 0.74 $ 0.62 $ 0.19
[1] Interest income includes $48,134m (2021: $30,916m; 2020: $35,293m) of interest recognised on financial assets measured at amortised cost and $6,386m (2021: $4,337m; 2020: $5,614m) of interest recognised on financial assets measured at fair value through other comprehensive income.
[2] Interest income is calculated using the effective interest method and comprises interest recognised on financial assets measured at either amortised cost or fair value through other comprehensive income.
[3]     Interest expense includes $20,798m (2021: $8,227m; 2020: $12,426m) of interest on financial instruments, excluding interest on financial liabilities held for trading or designated or otherwise mandatorily measured at fair value.
[4] The debt instruments, issued for funding purposes, are designated under the fair value option to reduce an accounting mismatch.
[5] Includes impairment of goodwill of $425m.
[6] Other operating income includes a loss on net monetary positions of $678m (2021: $224m, 2020: $128m) as a result of applying IAS 29 ‘Financial Reporting in Hyperinflationary Economies’.
[7] Includes depreciation of the right-of-use assets of $723m (2021: $878m; 2020: $1,029m).