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Report Of The Directors Strategic Report (Tables)
 6 Months Ended
Jun. 30, 2019
Report Of The Directors Strategic Report [Abstract]  
Analysis of adjusted results by global business
HSBC adjusted profit before tax and balance sheet data


Half-year to 30 Jun 2019


Retail
Banking and
Wealth
Management

Commercial
Banking

Global
Banking and
Markets

Global
Private
Banking

Corporate Centre

Total


Footnotes
$m

$m

$m

$m

$m

$m

Net operating income/(expense) before change in expected credit losses and other credit impairment charges
12
11,919

7,816

7,706

924

130

28,495

– external

8,789

7,545

9,493

675

1,993

28,495

– inter-segment

3,130

271

(1,787
)
249

(1,863
)
—

of which: net interest income/(expense)

8,155

5,653

2,861

441

(1,870
)
15,240

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

(540
)
(494
)
(95
)
(19
)
8

(1,140
)
Net operating income

11,379

7,322

7,611

905

138

27,355

Total operating expenses

(6,981
)
(3,297
)
(4,787
)
(709
)
(389
)
(16,163
)
Operating profit/(loss)

4,398

4,025

2,824

196

(251
)
11,192

Share of profit in associates and joint ventures

43

—

—

—

1,281

1,324

Adjusted profit before tax

4,441

4,025

2,824

196

1,030

12,516



%

%

%

%

%

%

Share of HSBC’s adjusted profit before tax

35.5

32.1

22.6

1.6

8.2

100.0

Adjusted cost efficiency ratio

58.6

42.2

62.1

76.7

299.2

56.7

Adjusted balance sheet data

$m

$m

$m

$m

$m

$m

Loans and advances to customers (net)

376,126

347,387

250,790

45,806

1,523

1,021,632

Interests in associates and joint ventures

456

—

—

—

23,436

23,892

Total external assets

498,045

377,142

1,120,235

50,757

705,094

2,751,273

Customer accounts

660,588

358,735

289,950

62,235

8,616

1,380,124

Adjusted risk-weighted assets

128,957

327,553

284,509

16,531

127,607

885,157



Half-year to 30 Jun 2018
 
 
Retail
Banking and
Wealth
Management

Commercial
Banking

Global
Banking and
Markets

Global
Private
Banking

Corporate Centre

Total

 
Footnotes
$m

$m

$m

$m

$m

$m

Net operating income/(expense) before change in expected credit losses and other credit impairment charges

12
10,668

7,140

7,916

907

(250
)
26,381

– external

8,741

7,001

9,181

782

676

26,381

– inter-segment

1,927

139

(1,265
)
125

(926
)
—

of which: net interest income/(expense)

7,389

4,985

2,385

436

(720
)
14,475

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

(514
)
(37
)
103

4

87

(357
)
Net operating income/(expense)

10,154

7,103

8,019

911

(163
)
26,024

Total operating expenses

(6,583
)
(3,128
)
(4,588
)
(724
)
(592
)
(15,615
)
Operating profit/(loss)

3,571

3,975

3,431

187

(755
)
10,409

Share of profit in associates and joint ventures

17

—

—

—

1,297

1,314

Adjusted profit before tax

3,588

3,975

3,431

187

542

11,723



%

%

%

%

%

%

Share of HSBC’s adjusted profit before tax

30.6

33.9

29.3

1.6

4.6

100.0

Adjusted cost efficiency ratio

61.7

43.8

58.0

79.8

(236.8
)
59.2

Adjusted balance sheet data

$m

$m

$m

$m

$m

$m

Loans and advances to customers (net)

345,029

324,717

246,900

40,809

2,012

959,467

Interests in associates and joint ventures

393

—

—

—

21,744

22,137

Total external assets

467,809

359,329

1,036,945

47,311

659,756

2,571,150

Customer accounts

628,536

351,422

286,690

63,164

9,675

1,339,487

Adjusted risk-weighted assets

122,679

310,278

282,439

16,881

121,666

853,943

For footnotes, see page 50.

HSBC adjusted profit before tax and balance sheet data (continued)


Half-year to 31 Dec 2018
 
 
Retail
Banking and
Wealth
Management

Commercial
Banking

Global
Banking and
Markets

Global
Private
Banking

Corporate Centre

Total

 
Footnotes
$m

$m

$m

$m

$m

$m

Net operating income/(expense) before change in expected credit losses and other credit impairment charges

12
10,834

7,420

7,230

854

(5
)
26,333

– external

8,155

7,313

8,483

694

1,688

26,333

– inter-segment

2,679

107

(1,253
)
160

(1,693
)
—

of which: net interest income/(expense)

8,135

5,461

2,768

440

(1,472
)
15,332

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

(634
)
(684
)
(70
)
3

28

(1,357
)
Net operating income

10,200

6,736

7,160

857

23

24,976

Total operating expenses

(6,772
)
(3,191
)
(4,653
)
(702
)
(1,232
)
(16,550
)
Operating profit/(loss)

3,428

3,545

2,507

155

(1,209
)
8,426

Share of profit in associates and joint ventures

17

—

—

—

1,150

1,167

Adjusted profit/(loss) before tax

3,445

3,545

2,507

155

(59
)
9,593



%

%

%

%

%

%

Share of HSBC’s adjusted profit before tax

35.9

37.0

26.1

1.6

(0.6
)
100.0

Adjusted cost efficiency ratio

62.5

43.0

64.4

82.2

(24,640.0
)
62.8

Adjusted balance sheet data

$m

$m

$m

$m

$m

$m

Loans and advances to customers (net)

362,262

333,854

245,261

39,265

2,459

983,101

Interests in associates and joint ventures

399

—

—

—

22,043

22,442

Total external assets

477,618

361,369

1,011,691

45,140

663,540

2,559,358

Customer accounts

641,833

358,201

290,964

64,660

8,679

1,364,337

Adjusted risk-weighted assets

126,929

321,717

281,338

16,811

118,826

865,621


For footnotes, see page 50.
Reconciliation of reported and adjusted items
Adjusted results reconciliation
 
 
Half-year to
 
 
30 Jun 2019
30 Jun 2018
31 Dec 2018
 
 
Adjusted

Significant items

Reported

Adjusted

Currency translation

Significant items

Reported

Adjusted

Currency translation

Significant items

Reported

 
Footnotes
$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Revenue
12
28,495

877

29,372

26,381

1,160

(254
)
27,287

26,333

75

85

26,493

ECL
 
(1,140
)
—

(1,140
)
(357
)
(50
)
—

(407
)
(1,357
)
(3
)
—

(1,360
)
Operating expenses
 
(16,163
)
(986
)
(17,149
)
(15,615
)
(770
)
(1,164
)
(17,549
)
(16,550
)
(72
)
(488
)
(17,110
)
Share of profit
in associates
and joint ventures
 
1,324

—

1,324

1,314

67

—

1,381

1,167

(12
)
—

1,155

Profit before tax
 
12,516

(109
)
12,407

11,723

407

(1,418
)
10,712

9,593

(12
)
(403
)
9,178

For footnotes, see page 50.
Adjusted balance sheet reconciliation
 
At
 
30 Jun 2019

31 Dec 2018
 
Reported and adjusted

Adjusted

Currency translation

Reported

 
$m

$m

$m

$m

Loans and advances to customers (net)
1,021,632

983,101

(1,405
)
981,696

Interests in associates and joint ventures
23,892

22,442

(35
)
22,407

Total external assets
2,751,273

2,559,358

(1,234
)
2,558,124

Customer accounts
1,380,124

1,364,337

(1,694
)
1,362,643

Adjusted profit reconciliation
 
 
Half-year to
 
 
30 Jun

30 Jun

31 Dec

 
 
2019

2018

2018

 
Footnotes
$m

$m

$m

Adjusted profit before tax
 
12,516

11,723

9,593

Significant items
 
(109
)
(1,418
)
(403
)
– customer redress programmes
 
(610
)
(54
)
(39
)
– disposals, acquisitions and investment in new businesses
 
827

(145
)
(20
)
– fair value movements on financial instruments
27
50

(152
)
52

– costs of structural reform
28
(91
)
(211
)
(150
)
– restructuring and other related costs
 
(287
)
(24
)
(42
)
– past service costs of guaranteed minimum pension benefits equalisation
 
—

—

(228
)
– settlements and provisions in connection with legal and regulatory matters
 
2

(841
)
25

– currency translation on significant items
 


9

(1
)
Currency translation
 


407

(12
)
Reported profit before tax
 
12,407

10,712

9,178


For footnotes, see page 50.