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Consolidated statement of changes in equity (Parenthetical)
12 Months Ended
Dec. 31, 2019
USD ($)
$ / shares
shares
Dec. 31, 2018
USD ($)
$ / shares
shares
Dec. 31, 2017
USD ($)
$ / shares
shares
Dec. 31, 2019
GBP (£)
shares
Dec. 31, 2019
EUR (€)
shares
Dec. 31, 2019
SGD ($)
shares
Aug. 31, 2019
USD ($)
Dec. 31, 2018
GBP (£)
shares
Dec. 31, 2018
SGD ($)
shares
May 31, 2018
USD ($)
Jan. 01, 2018
USD ($)
Dec. 31, 2017
EUR (€)
shares
Dec. 31, 2017
SGD ($)
shares
Jul. 31, 2017
USD ($)
Feb. 28, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2009
USD ($)
Dec. 31, 2003
USD ($)
Dec. 31, 2000
USD ($)
Cumulative goodwill $ 5,138,000,000                                    
Total equity $ 192,668,000,000 $ 194,249,000,000 $ 197,871,000,000               $ 196,224,000,000         $ 182,578,000,000      
Dividends paid on ordinary shares per share (in dollars per share) | $ / shares $ 0.51 $ 0.51 $ 0.51                                
Profit for the year $ 8,708,000,000 $ 15,025,000,000 $ 11,879,000,000                                
Cancellation of shares [1] (1,000,000,000) (1,998,000,000) [2] $ (3,000,000,000)                                
Increase in Deferred tax assets $ 4,632,000,000 $ 4,450,000,000                                  
GBP 1,000m 5.875% Perpetual Subordinated Contingent Convertible Securities                                      
Notional amount | £       £ 1,000,000,000                              
Other equity instruments interest rate 5.875%     5.875% 5.875% 5.875%                          
SGD 750m 5.000% Perpetual Subordinated Contingent Convertible Securities                                      
Notional amount           $ 750,000,000                          
Other equity instruments interest rate 5.00%     5.00% 5.00% 5.00%                          
$3,000m 6.000% Perpetual Subordinated Contingent Convertible Securities                                      
Notional amount $ 3,000,000,000                                    
Other equity instruments interest rate 6.00%     6.00% 6.00% 6.00%                          
SGD 1000m 4.700% Perpetual Subordinated Contingent Convertible Securities                                      
Notional amount           $ 1,000,000,000                          
Other equity instruments interest rate 4.70%     4.70% 4.70% 4.70%                          
EUR 1,250m 4.750% Perpetual Subordinated Contingent Convertible Securities                                      
Notional amount | €         € 1,250,000,000                            
Other equity instruments interest rate 4.75%     4.75% 4.75% 4.75%                          
$1,500m 5.625% Perpetual Subordinated Contingent Convertible Securities                                      
Notional amount $ 1,500,000,000                                    
Other equity instruments interest rate 5.625%     5.625% 5.625% 5.625%                          
8.125% Perpetual Subordinated Capital Securities                                      
Notional amount $ 2,200,000,000                                    
Other equity instruments interest rate 8.125%     8.125% 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% 8.00% 8.00%                          
Contingent convertible securities | GBP 1,000m 5.875% Perpetual Subordinated Contingent Convertible Securities                                      
Notional amount | £       £ 1,000,000,000                              
Other equity instruments interest rate 5.875%     5.875% 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% 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% 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% 4.70% 4.70%                          
Contingent convertible securities | EUR 1,250m 4.750% Perpetual Subordinated Contingent Convertible Securities                                      
Notional amount | €         € 1,250,000,000                            
Other equity instruments interest rate 4.75%     4.75% 4.75% 4.75%                          
Contingent convertible securities | $1,500m 5.625% Perpetual Subordinated Contingent Convertible Securities                                      
Notional amount $ 1,500,000,000                                    
Other equity instruments interest rate 5.625%     5.625% 5.625% 5.625%                          
Treasury shares                                      
Number of shares outstanding | shares 432,108,782 379,926,645 360,590,019 432,108,782 432,108,782 432,108,782   379,926,645 379,926,645     360,590,019 360,590,019            
Merger and other reserves                                      
Cumulative goodwill $ 3,469,000,000                                    
Total equity [3],[4] 27,370,000,000 $ 29,777,000,000 $ 27,308,000,000               27,308,000,000         27,308,000,000      
Cumulative acquisition value                                 $ 15,796,000,000    
Transfers [3],[4],[5] (2,475,000,000) 2,200,000,000                                  
Cancellation of shares [1],[3],[4] 68,000,000 269,000,000 [2]                                  
Merger and other reserves | HSBC France                                      
Cumulative acquisition value                                     $ 8,290,000,000
Merger and other reserves | HSBC Finance Corporation                                      
Cumulative acquisition value                                   $ 12,768,000,000  
Available-for-sale fair value reserve                                      
Total equity [6]     (350,000,000)                         (477,000,000)      
Retained earnings                                      
Cumulative goodwill 1,669,000,000                                    
Total equity [3],[7] 136,679,000,000 138,191,000,000 139,999,000,000               139,414,000,000         136,795,000,000      
Profit for the year [3],[7] 7,383,000,000 13,727,000,000 10,798,000,000                                
Transfers [3],[5],[7] 2,475,000,000 (2,200,000,000)                                  
Cancellation of shares [1],[3],[7] (1,000,000,000) (4,998,000,000) [2]                                  
Called up share capital and share premium                                      
Total equity 24,278,000,000 23,789,000,000 20,337,000,000               20,337,000,000         22,715,000,000      
Cancellation of shares [1] (68,000,000) 2,731,000,000 [2] (3,000,000,000)                                
HSBC Holdings                                      
Total equity $ 145,044,000,000 $ 147,353,000,000 $ 103,787,000,000               104,677,000,000         104,858,000,000      
Dividends paid on ordinary shares per share (in dollars per share) | $ / shares $ 0.51 $ 0.51 $ 0.51                                
Distributable reserve $ 31,656,000,000 $ 30,705,000,000                                  
Profit for the year 9,041,000,000 52,825,000,000 $ 5,539,000,000                                
Cancellation of shares (1,000,000,000) [8] (1,998,000,000) [9] (3,000,000,000)                                
Increase in Deferred tax assets 0 0                                  
HSBC Holdings | Contingent convertible securities                                      
Payments for debt issue costs   60,000,000 14,000,000                                
Intercompany debt issue costs   49,000,000 37,000,000                                
Tax effect of issuance of contingent convertible securities   11,000,000 10,000,000                                
HSBC Holdings | Contingent convertible securities | $4,150m Perpetual Subordinated Contingent Convertible Securities                                      
Notional amount   4,150,000,000                                  
HSBC Holdings | Contingent convertible securities | GBP 1,000m 5.875% Perpetual Subordinated Contingent Convertible Securities                                      
Notional amount | £               £ 1,000,000,000                      
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 | SGD 1000m 4.700% Perpetual Subordinated Contingent Convertible Securities                                      
Notional amount                         $ 1,000,000,000            
HSBC Holdings | Contingent convertible securities | EUR 1,250m 4.750% Perpetual Subordinated Contingent Convertible Securities                                      
Notional amount | €                       € 1,250,000,000              
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 | $1,500m 5.625% Perpetual Subordinated Contingent Convertible Securities                                      
Notional amount 1,500,000,000                                    
Payments for debt issue costs $ 12,000,000                                    
Other equity instruments interest rate 5.625%     5.625% 5.625% 5.625%                          
HSBC Holdings | Capital securities classified as equity | 8.125% Perpetual Subordinated Capital Securities                                      
Notional amount   $ 2,200,000,000                                  
Other equity instruments interest rate   8.125%           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% 8.00%                    
HSBC Holdings | Treasury shares                                      
Number of shares outstanding | shares 326,191,804 326,503,319 326,843,840 326,191,804 326,191,804 326,191,804   326,503,319 326,503,319     326,843,840 326,843,840            
Total equity $ 2,543,000,000 $ 2,546,000,000 $ 2,542,000,000                                
HSBC Holdings | Merger and other reserves                                      
Total equity [10] 37,539,000,000 39,899,000,000 37,381,000,000               37,381,000,000         37,371,000,000      
Distributable reserve 15,731,000,000 15,731,000,000                                  
Transfers [10],[11] (2,475,000,000) 2,200,000,000                                  
Cancellation of shares [10] 68,000,000 [8] 269,000,000 [9]                                  
HSBC Holdings | Available-for-sale fair value reserve                                      
Total equity     59,000,000                         112,000,000      
HSBC Holdings | Retained earnings                                      
Total equity [10],[12] 62,484,000,000 61,434,000,000 23,903,000,000               24,852,000,000         27,656,000,000      
Distributable reserve 11,516,000,000 14,974,000,000                                  
Profit for the year [10],[12] 9,041,000,000 52,825,000,000 5,539,000,000                                
Transfers [10],[11],[12] 2,475,000,000 (2,200,000,000)                                  
Cancellation of shares [10],[12] (1,000,000,000) [8] (4,998,000,000) [9]                                  
HSBC Holdings | Retained earnings | HSBC Asia Holdings Overseas Limited                                      
Profit for the year 0 44,893,000,000                                  
HSBC Holdings | Share premium                                      
Total equity $ 13,959,000,000 13,609,000,000 10,177,000,000               10,177,000,000         $ 12,619,000,000      
Cancellation of shares   2,836,000,000 [9] $ (2,836,000,000)                                
2017 Share Buy-Back Program | Merger and other reserves                                      
Cancellation of shares   164,000,000                                  
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   2,836,000,000                                  
2017 Share Buy-Back Program | HSBC Holdings | Merger and other reserves                                      
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                                  
August 2019 Share Buy Back Program                                      
Authorized amount for share buy-back program             $ 1,000,000,000.0                        
August 2019 Share Buy Back Program | HSBC Holdings                                      
Authorized amount for share buy-back program             $ 1,000,000,000                        
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          
IFRS 9                                      
Decrease in net assets                     1,600,000,000                
Additional impairment allowance                     2,200,000,000                
Remeasurement of financial assets and liabilities                     1,100,000,000                
Increase in Deferred tax assets                     400,000,000                
Associates | IFRS 9                                      
Decrease in net assets                     $ 900,000,000                
[1] For further details, refer to Note 31 in the Annual Report and Accounts 2019. In August 2019, HSBC announced a share buy-back of up to $1.0bn, which was completed in September 2019. In May 2018, HSBC announced a share buy-back of up to $2.0bn, which was completed in August 2018. 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 buy-back programmes have been cancelled.
[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 $2,836m and other reserves increased by $164m.
[3] 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.
[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.
[5] Permitted transfers from the merger reserve to retained earnings were made when the investment in HSBC Overseas Holdings (UK) Limited was previously impaired. In 2018, a part reversal of this impairment resulted in a transfer from retained earnings back to the merger reserve of $2,200m. At 31 December 2019, an additional impairment of $2,475m was recognised and a permitted transfer of this amount was made from the merger reserve to retained earnings.
[6] The $350m at 31 December 2017 represents the IAS 39 available-for-sale fair value reserve as at 31 December 2017.
[7] At 31 December 2019, retained earnings included 432,108,782 treasury shares (2018: 379,926,645; 2017: 360,590,019). 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.
[8] In August 2019, HSBC announced a share buy-back of up to $1.0bn, which was completed in September 2019.
[9] The 2018 year included 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 2019 of $31,656m (2018: $30,705m) represents realised profits for the year included in retained earnings of $11,516m (2018: $14,974m) and in merger reserve of $15,731m (2018: $15,731m). The distributable reserves are lower than retained earnings of $62,484m (2018: $61,434m). In 2018, $44,893m (2019: nil) represented income generated from restructuring the Group’s Asia operation to meet resolution and recovery requirements, which 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. In 2018, a part reversal of this impairment resulted in a transfer from retained earnings back to the merger reserve of $2,200m. At 31 December 2019, an additional impairment of $2,475m was recognised and a permitted transfer of this amount was made from the merger reserve to retained earnings.
[12] At 31 December 2019, retained earnings included 326,191,804 ($2,543m) of treasury shares (2018: 326,503,319 ($2,546m); 2017: 326,843,840 ($2,542m)).