Net income from financial instruments measured at fair value through profit and loss

12 Months Ended

Dec. 31, 2019

Analysis of income and expense [abstract]

Net income from financial instruments measured at fair value through profit and loss

3 Net income from financial instruments measured at fair value through profit or loss

		2019		2018		2017
	Footnotes	$m		$m		$m
Net income/(expense) arising on:
Net trading activities	1	16,121		6,982		8,236
Other instruments managed on a fair value basis	1	(5,890	)	2,549		190
Net income from financial instruments held for trading or managed on a fair value basis		10,231		9,531		8,426
Financial assets held to meet liabilities under insurance and investment contracts		3,830		(1,585	)	3,211
Liabilities to customers under investment contracts		(352	)	97		(375	)
Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss		3,478		(1,488	)	2,836
Derivatives managed in conjunction with HSBC’s issued debt securities		2,561		(626	)	(343	)
Other changes in fair value		(2,471	)	529		498
Changes in fair value of designated debt and related derivatives	2	90		(97	)	155
Changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss		812		695		N/A
Year ended 31 Dec		14,611		8,641		11,417

1 At 1 January 2018 we changed our accounting policy for financial liabilities that contain both deposit and derivative components. As a result, net income from these instruments is reported in ‘Other instruments managed on a fair value basis’ rather than ‘Trading activities’. Comparative periods have not been re-presented.

2 The debt instruments, issued for funding purposes, are designated under the fair value option to reduce an accounting mismatch.

HSBC Holdings

	2019		2018		2017
	$m		$m		$m
Net income/(expense) arising on:
– trading activities	(559	)	(176	)	(392	)
– other instruments managed at on a fair value basis	2,036		421		211
Net income from financial instruments held for trading or managed on a fair value basis	1,477		245		(181	)
– Derivatives managed in conjunction with HSBC Holdings-issued debt securities	764		(337	)	292
– Other changes in fair value	(1,124	)	260		(189	)
Changes in fair value of designated debt and related derivatives	(360	)	(77	)	103
Changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss	1,659		43		—
Year ended 31 Dec	2,776		211		(78	)