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Consolidated statement of changes in equity (Parenthetical)
12 Months Ended
Dec. 31, 2018
USD ($)
$ / shares
shares
Dec. 31, 2017
USD ($)
$ / shares
shares
Dec. 31, 2016
USD ($)
$ / shares
shares
Dec. 31, 2018
SGD ($)
shares
May 31, 2018
USD ($)
Jul. 31, 2017
USD ($)
Feb. 28, 2017
USD ($)
Aug. 31, 2016
USD ($)
Dec. 31, 2009
USD ($)
Dec. 31, 2003
USD ($)
Dec. 31, 2000
USD ($)
Reduction of issued capital $ 6,088,000,000                    
Cumulative goodwill 5,138,000,000                    
Gain (loss) on acquisition related costs 149,000,000                    
Gain (loss) on contingent forward contract $ (121,000,000)                    
Dividends paid on ordinary shares per share (in usd per share) | $ / shares $ 0.51 $ 0.51 $ 0.51                
Total equity $ 194,249,000,000 $ 197,871,000,000 $ 182,578,000,000                
Cancellation of shares (1,998,000,000) [1],[2] (3,000,000,000) [3]                  
– profit for the year 15,025,000,000 11,879,000,000 $ 3,446,000,000                
Currency Risk, Rights Issue                      
Gains (losses) on hedging instrument (344,000,000)                    
Pension Plan | Principal plan                      
Remeasurement effects recognised in other comprehensive income 321,000,000 (3,140,000,000)                  
Pension Plan | Principal plan | Present value of defined benefit obligations                      
Remeasurement effects recognised in other comprehensive income 1,180,000,000 $ 1,730,000,000                  
$3,000m 6.000% Perpetual Subordinated Contingent Convertible Securities                      
Notional amount $ 3,000,000,000                    
Other equity instruments interest rate 6.00%     6.00%              
EUR 1,250m 4.750% Perpetual Subordinated Contingent Convertible Securities                      
Other equity instruments interest rate 4.75%     4.75%              
$2,000m 6.875% Perpetual Subordinated Contingent Convertible Securities                      
Notional amount $ 2,000,000,000                    
Other equity instruments interest rate 6.875%     6.875%              
8.125% Perpetual Subordinated Capital Securities                      
Notional amount $ 2,200,000,000                    
Other equity instruments interest rate 8.125%     8.125%              
8.000% Perpetual Subordinated Capital Securities, Series 2                      
Notional amount $ 3,800,000,000                    
Other equity instruments interest rate 8.00%     8.00%              
Contingent Convertible Securities | GBP 1,000m 5.875% Perpetual Subordinated Contingent Convertible Securities                      
Other equity instruments interest rate 5.875%     5.875%              
Contingent Convertible Securities | SGD 750m 5.000% Perpetual Subordinated Contingent Convertible Securities                      
Notional amount       $ 750,000,000              
Other equity instruments interest rate 5.00%     5.00%              
Contingent Convertible Securities | $3,000m 6.000% Perpetual Subordinated Contingent Convertible Securities                      
Notional amount $ 3,000,000,000                    
Other equity instruments interest rate 6.00%     6.00%              
Contingent Convertible Securities | SGD 1000m 4.700% Perpetual Subordinated Contingent Convertible Securities                      
Notional amount       $ 1,000,000,000              
Other equity instruments interest rate 4.70%     4.70%              
Contingent Convertible Securities | EUR 1,250m 4.750% Perpetual Subordinated Contingent Convertible Securities                      
Other equity instruments interest rate 4.75%     4.75%              
Contingent Convertible Securities | $2,000m 6.875% Perpetual Subordinated Contingent Convertible Securities                      
Notional amount $ 2,000,000,000                    
Other equity instruments interest rate 6.875%     6.875%              
Capital Securities Classified As Equity | 8.125% Perpetual Subordinated Capital Securities                      
Other equity instruments interest rate 8.125%     8.125%              
Capital Securities Classified As Equity | 8.000% Perpetual Subordinated Capital Securities, Series 2                      
Other equity instruments interest rate 8.00%     8.00%              
Treasury shares                      
Number of shares outstanding | shares 379,926,645 360,590,019 353,356,251 379,926,645              
Merger reserve                      
Cumulative goodwill $ 3,469,000,000                    
Cumulative acquisition value                 $ 15,796,000,000    
Cumulative acquisition costs 614,000,000                    
Total equity [4] 29,777,000,000 $ 27,308,000,000 $ 27,308,000,000                
Transfers [4],[5] 2,200,000,000                    
Merger reserve | HSBC France                      
Cumulative acquisition value                     $ 8,290,000,000
Merger reserve | HSBC Finance Corporation                      
Cumulative acquisition value                   $ 12,768,000,000  
Retained earnings                      
Reduction of issued capital [6],[7] 237,000,000                    
Cumulative goodwill 1,669,000,000                    
Total equity [6],[7] 138,191,000,000 139,999,000,000 136,795,000,000                
Transfers [5],[6],[7] (2,200,000,000)                    
Cancellation of shares [1],[2],[6],[7] (4,998,000,000)                    
– profit for the year [6],[7] 13,727,000,000 10,798,000,000 2,479,000,000                
Called up share capital and share premium                      
Total equity 23,789,000,000 20,337,000,000 22,715,000,000                
Cancellation of shares [3]   (3,000,000,000)                  
Available-for-sale fair value reserve                      
Total equity   $ (350,000,000) [8] $ (477,000,000)                
HSBC Holdings                      
Reduction of issued capital $ (6,079,000,000)                    
Dividends paid on ordinary shares per share (in usd per share) | $ / shares $ 0.51 $ 0.51 $ 0.51                
Total equity $ 147,353,000,000 $ 103,787,000,000 $ 104,858,000,000                
Cancellation of shares (1,998,000,000) [9] (3,000,000,000)                  
Distributable reserve 30,705,000,000 38,031,000,000                  
– profit for the year 52,825,000,000 5,539,000,000 6,595,000,000                
HSBC Holdings | Contingent Convertible Securities                      
Payments for debt issue costs 60,000,000 14,000,000 6,000,000                
Intercompany debt issue costs 49,000,000 37,000,000                  
Tax effect of issuance of contingent convertible securities 11,000,000 10,000,000 4,000,000                
HSBC Holdings | Contingent Convertible Securities | $4,150m Perpetual Subordinated Contingent Convertible Securities                      
Notional amount 4,150,000,000                    
HSBC Holdings | Contingent Convertible Securities | SGD 750m 5.000% Perpetual Subordinated Contingent Convertible Securities                      
Notional amount       $ 750,000,000              
HSBC Holdings | Contingent Convertible Securities | $3,000m 6.000% Perpetual Subordinated Contingent Convertible Securities                      
Notional amount   $ 3,000,000,000                  
HSBC Holdings | Contingent Convertible Securities | $2,000m 6.875% Perpetual Subordinated Contingent Convertible Securities                      
Notional amount     $ 2,000,000,000                
HSBC Holdings | Capital Securities Classified As Equity                      
Payments for debt issue costs 172,000,000                    
Intercompany debt issue costs 23,000,000                    
HSBC Holdings | Capital Securities Classified As Equity | 8.125% Perpetual Subordinated Capital Securities                      
Notional amount $ 2,200                    
Other equity instruments interest rate 8.125%     8.125%              
HSBC Holdings | Capital Securities Classified As Equity | 8.000% Perpetual Subordinated Capital Securities, Series 2                      
Notional amount       $ 3,800,000,000              
Other equity instruments interest rate 8.00%     8.00%              
HSBC Holdings | Treasury shares                      
Number of shares outstanding | shares 326,503,319 326,843,840 325,499,152 326,503,319              
Total equity $ 2,546,000,000 $ 2,542,000,000 $ 2,499,000,000                
HSBC Holdings | Merger reserve                      
Total equity [10] 37,599,000,000 35,127,000,000 35,127,000,000                
Transfers [10],[11] 2,200,000,000                    
Cancellation of shares [9],[10] 269,000,000                    
Distributable reserve 15,731,000,000 15,731,000,000                  
HSBC Holdings | Retained earnings                      
Reduction of issued capital [10],[12] 236,000,000                    
Total equity [10],[12] 61,434,000,000 23,903,000,000 27,656,000,000                
Transfers [10],[11],[12] (2,200,000,000)                    
Cancellation of shares [10],[12] (4,998,000,000) [9] 0                  
Distributable reserve 14,974,000,000 22,300,000,000                  
– profit for the year [10],[12] 52,825,000,000 5,539,000,000 6,595,000,000                
HSBC Holdings | Retained earnings | HSBC Asia Holdings Overseas Limited                      
– profit for the year 44,893,000,000 0                  
HSBC Holdings | Available-for-sale fair value reserve                      
Total equity   59,000,000 112,000,000                
HSBC Holdings | Share premium                      
Total equity 13,609,000,000 10,177,000,000 $ 12,619,000,000                
Cancellation of shares 2,836,000,000 [9] $ (2,836,000,000)                  
May 2018 Share Buy-Back Program                      
Authorized amount for share buy-back program         $ 2,000,000,000.0            
February 2017 Share Buy-Back Program                      
Authorized amount for share buy-back program             $ 1,000,000,000.0        
July 2017 Share Buy-Back Program                      
Authorized amount for share buy-back program           $ 2,000,000,000.0          
August 2016 Share Buy-Back Program                      
Authorized amount for share buy-back program               $ 2,500,000,000.0      
2017 Share Buy-Back Program | Merger reserve                      
Cancellation of shares [1],[2],[4] 269,000,000                    
2017 Share Buy-Back Program | Retained earnings                      
Cancellation of shares (3,000,000,000)                    
2017 Share Buy-Back Program | Called up share capital and share premium                      
Cancellation of shares [1],[2] 2,731,000,000                    
2017 Share Buy-Back Program | HSBC Holdings | Merger reserve                      
Cancellation of shares 164,000,000                    
2017 Share Buy-Back Program | HSBC Holdings | Retained earnings                      
Cancellation of shares (3,000,000,000)                    
2017 Share Buy-Back Program | HSBC Holdings | Share premium                      
Cancellation of shares $ 2,836,000,000                    
[1] For further details refer to Note 32 .In May 2018, HSBC announced a share buy-back of up to $2.0bn, which was completed in August 2018.
[2] This includes a re-presentation of the cancellation of shares to retained earnings and capital redemption reserve in respect of the 2017 share buy-back, under which retained earnings have been reduced by $3,000m, called up capital and share premium increased by $2,731m and other reserves increased by $269m.
[3] For further details, refer to Note 32. In February 2017, HSBC announced a share buy-back of up to $1.0bn, which was completed in April 2017. In July 2017, HSBC announced a share buy-back of up to $2.0bn, which was completed in November 2017. Shares bought back from these two buy-back programmes have been cancelled. In August 2016, HSBC announced a share buy-back of up to $2.5bn, which was completed in December 2016 and resulted in a net increase in shares held in treasury.
[4] Statutory share premium relief under Section 131 of the Companies Act 1985 (the ‘Act’) was taken in respect of the acquisition of HSBC Bank plc in 1992, HSBC France in 2000 and HSBC Finance Corporation in 2003, and the shares issued were recorded at their nominal value only. In HSBC’s consolidated financial statements, the fair value differences of $8,290m in respect of HSBC France and $12,768m in respect of HSBC Finance Corporation were recognised in the merger reserve. The merger reserve created on the acquisition of HSBC Finance Corporation subsequently became attached to HSBC Overseas Holdings (UK) Limited (‘HOHU’), following a number of intra-Group reorganisations. During 2009, pursuant to Section 131 of the Companies Act 1985, statutory share premium relief was taken in respect of the rights issue and $15,796m was recognised in the merger reserve. The merger reserve includes a deduction of $614m in respect of costs relating to the rights issue, of which $149m was subsequently transferred to the income statement. Of this $149m, $121m was a loss arising from accounting for the agreement with the underwriters as a contingent forward contract. The merger reserve excludes the loss of $344m on a forward foreign exchange contract associated with hedging the proceeds of the rights issue.
[5] Permitted transfers from the merger reserve to retained earnings were made when the investment in HSBC Overseas Holdings (UK) Limited was previously impaired. A part reversal of this impairment results in a transfer from retained earnings back to the merger reserve of $2,200m.
[6] At 31 December 2018, retained earnings included 379,926,645 treasury shares (2017: 360,590,019; 2016: 353,356,251). In addition, treasury shares are also held within HSBC’s Insurance business retirement funds for the benefit of policyholders or beneficiaries within employee trusts for the settlement of shares expected to be delivered under employee share schemes or bonus plans, and the market-making activities in Global Markets.
[7] Cumulative goodwill amounting to $5,138m has been charged against reserves in respect of acquisitions of subsidiaries prior to 1 January 1998, including $3,469m charged against the merger reserve arising on the acquisition of HSBC Bank plc. The balance of $1,669m has been charged against retained earnings.
[8] During 2018, an actuarial gain of $1,180m has arisen as a result of the remeasurement of the defined benefit pension obligation of the HSBC Bank (UK) Pension Scheme. During 2017, an actuarial gain of $1,730m has arisen as a result of the remeasurement of the defined benefit pension obligation of the HSBC Bank (UK) Pension Scheme. Refer to Note 6 for further detail.
[9] This includes a re-presentation of the cancellation of shares to retained earnings and capital redemption reserve in respect of the 2017 share buy-back, under which retained earnings has been reduced by $3,000m, share premium increased by $2,836m and other reserves increased by $164m.
[10] HSBC Holdings distributable reserves at 31 December 2018 of $30,705m (2017: $38,031m) represents realised profits included in retained earnings of $14,974m (2017: $22,300m) and in merger reserve of $15,731m (2017: $15,731m). The distributable reserves are lower than retained earnings of $61,434m (2017: $23,903m). In 2018, income of $44,893m (2017:nil) generated from restructuring the Group’s Asia operation to meet resolution and recovery requirements does not form part of distributable reserves.
[11] Permitted transfers from the merger reserve to retained earnings were made when the investment in HSBC Overseas Holdings (UK) Limited was previously impaired. A part reversal of this impairment results in a transfer from retained earnings back to the merger reserve of $2,200m.
[12] At 31 December 2018, retained earnings includes 326,503,319 ($2,546m) of treasury shares (2017: 326,843,840 ($2,542m); 2016: 325,499,152 ($2,499m)). Treasury shares are held to fund employee share plans.