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Report Of The Directors Financial Review Risk Report (Tables)
 6 Months Ended
Jun. 30, 2020
Report Of The Directors Financial Review Risk Report [Abstract]  
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments
Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including
loan commitments and financial guarantees
 
Non-credit impaired
Credit impaired
 
 
Stage 1
Stage 2
Stage 3
POCI
Total
 
Gross carrying/ nominal amount

Allowance for ECL

Gross carrying/ nominal amount

Allowance for ECL

Gross carrying/ nominal amount

Allowance for ECL

Gross carrying/ nominal amount

Allowance for ECL

Gross carrying/ nominal amount

Allowance for ECL

 
$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

At 1 Jan 2019
1,502,976

(1,449
)
95,104

(2,278
)
14,232

(5,135
)
334

(194
)
1,612,646

(9,056
)
Transfers of financial instruments:
(36,244
)
(543
)
31,063

1,134

5,181

(591
)
—

—

—

—

– transfers from stage 1 to stage 2
(108,434
)
487

108,434

(487
)
—

—

—

—

—

—

– transfers from stage 2 to stage 1
73,086

(1,044
)
(73,086
)
1,044

—

—

—

—

—

—

– transfers to stage 3
(1,284
)
59

(5,022
)
665

6,306

(724
)
—

—

—

—

– transfers from stage 3
388

(45
)
737

(88
)
(1,125
)
133

—

—

—

—

Net remeasurement of ECL arising from transfer of stage
—

669

—

(676
)
—

(114
)
—

—

—

(121
)
New financial assets originated or purchased
504,064

(534
)
—

—

—

—

135

(21
)
504,199

(555
)
Assets derecognised (including final repayments)
(352,961
)
112

(19,909
)
553

(2,712
)
656

(26
)
8

(375,608
)
1,329

Changes to risk parameters – further lending/repayment
(72,239
)
291

(2,560
)
67

402

(6
)
28

12

(74,369
)
364

Changes in risk parameters – credit quality
—

2

—

(1,208
)
—

(2,704
)
—

(51
)
—

(3,961
)
Changes to models used for ECL calculation
—

(6
)
—

4

—

14

—

—

—

12

Assets written off
—

—

—

—

(2,657
)
2,657

(140
)
140

(2,797
)
2,797

Credit-related modifications that resulted in derecognition
—

—

—

—

(268
)
125

—

—

(268
)
125

Foreign exchange
16,838

(9
)
1,201

(40
)
160

(31
)
1

1

18,200

(79
)
Other
(821
)
3

652

3

(3
)
8

13

6

(159
)
20

At 31 Dec 2019
1,561,613

(1,464
)
105,551

(2,441
)
14,335

(5,121
)
345

(99
)
1,681,844

(9,125
)
ECL income statement change for the period


534



(1,260
)


(2,154
)


(52
)


(2,932
)
Recoveries


















361

Others


















(20
)
Total ECL income statement change for the period1


















(2,591
)
 
At 31 Dec 2019
12 months ended
31 Dec 2019

 
Gross carrying/nominal amount

Allowance for ECL

ECL charge

 
$m

$m

$m

As above
1,681,844

(9,125
)
(2,591
)
Other financial assets measured at amortised cost
615,179

(118
)
(26
)
Non-trading reverse purchase agreement commitments
53,093

—

—

Performance and other guarantees
—

—

(34
)
Summary of financial instruments to which the impairment requirements in IFRS 9 are applied/Summary consolidated income statement
2,350,116

(9,243
)
(2,651
)
Debt instruments measured at FVOCI
355,664

(166
)
(105
)
Total allowance for ECL/total income statement ECL charge for the period
n/a

(9,409
)
(2,756
)
1
The 31 December 2019 total ECL income statement change of $2,591m is attributable to $1,136m for the six months ended 30 June 2019 and $1,455m to the six months ended 31 December 2019.
Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including
loan commitments and financial guarantees
 
Non-credit impaired
Credit impaired
 
 
Stage 1
Stage 2
Stage 3
POCI
Total
 
Gross carrying/ nominal amount

Allowance for ECL

Gross carrying/ nominal amount

Allowance for ECL

Gross carrying/ nominal amount

Allowance for ECL

Gross carrying/ nominal amount

Allowance for ECL

Gross carrying/ nominal amount

Allowance for ECL

 
$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

At 1 Jan 2020
1,561,613

(1,464
)
105,551

(2,441
)
14,335

(5,121
)
345

(99
)
1,681,844

(9,125
)
Transfers of financial instruments:
(138,661
)
(148
)
131,316

498

7,345

(350
)
—

—

—

—

– transfers from stage 1 to stage 2
(175,849
)
489

175,849

(489
)
—

—

—

—

—

—

– transfers from stage 2 to stage 1
39,559

(638
)
(39,559
)
638

—

—

—

—

—

—

– transfers to stage 3
(2,724
)
11

(5,434
)
392

8,158

(403
)
—

—

—

—

– transfers from stage 3
353

(10
)
460

(43
)
(813
)
53

—

—

—

—

Net remeasurement of ECL arising from transfer of stage
—

355

—

(558
)
—

(712
)
—

—

—

(915
)
Changes due to modifications not derecognised
—

—

—

—

—

—

—

—

—

—

New financial assets originated or purchased
215,501

(291
)
—

—

—

—

12

—

215,513

(291
)
Asset derecognised (including final repayments)
(163,342
)
52

(12,522
)
203

(1,064
)
176

(20
)
1

(176,948
)
432

Changes to risk parameters – further lending/repayments
13,119

(169
)
2,831

(221
)
(300
)
63

(31
)
(1
)
15,619

(328
)
Change in risk parameters – credit quality
—

(620
)
—

(2,561
)
—

(2,266
)
—

(3
)
—

(5,450
)
Changes to models used for ECL calculation
—

30

—

(63
)
—

(9
)
—

—

—

(42
)
Assets written off
—

—

—

—

(1,249
)
1,249

—

—

(1,249
)
1,249

Credit-related modifications that resulted in derecognition
—

—

—

—

(1
)
—

—

—

(1
)
—

Foreign exchange
(43,145
)
90

(2,672
)
162

(588
)
196

(13
)
4

(46,418
)
452

Other
36

12

93

(7
)
16

(8
)
7

(1
)
152

(4
)
At 30 Jun 2020
1,445,121

(2,153
)
224,597

(4,988
)
18,494

(6,782
)
300

(99
)
1,688,512

(14,022
)
ECL income statement change for the period1


(643
)


(3,200
)


(2,748
)


(3
)


(6,594
)
Recoveries
 
 
 
 
 
 
 
 
 
127

Other
 
 
 
 
 
 
 
 
 
3

Total ECL income statement change for the period
 
 
 
 
 
 
 
 
 
(6,464
)
1
In addition to the $2.8bn stage 3 (personal: $0.6bn, wholesale: $2.2bn) and POCI ECL income statement charge for the period presented above, the Group also recognised a stage 3 and POCI ECL income statement charge of $0.2bn in respect of other financial assets measured at amortised cost, performance and other guarantees and debt instruments measured at FVOCI.
 
At 30 Jun 2020
6 months ended 30 Jun 2020

 
Gross carrying/nominal amount

Allowance for ECL

ECL charge

 
$m

$m

$m

As above
1,688,512

(14,022
)
(6,464
)
Other financial assets measured at amortised cost
751,872

(243
)
(127
)
Non-trading reverse purchase agreement commitments
86,949

—

—

Performance and other guarantees
—

—

(157
)
Summary of financial instruments to which the impairment requirements in IFRS 9 are applied/Summary consolidated income statement
2,527,333

(14,265
)
(6,748
)
Debt instruments measured at FVOCI
402,331

(242
)
(110
)
Total allowance for ECL/total income statement ECL charge for the period
n/a

(14,507
)
(6,858
)
Disclosure of financial assets that are either past due or impaired
Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation
 
 
Gross carrying/nominal amount
Allowance for ECL

Net

 
 
Strong

Good

Satisfactory

Sub-
standard

Credit impaired

Total

 
Footnotes
$m

$m

$m

$m

$m

$m

$m

$m

Loans and advances to customers at amortised cost
 
493,586

243,340

248,791

28,756

17,435

1,031,908

(13,227
)
1,018,681

– stage 1
 
480,945

203,612

160,839

7,282

—

852,678

(1,906
)
850,772

– stage 2
 
12,641

39,728

87,952

21,474

—

161,795

(4,553
)
157,242

– stage 3
 
—

—

—

—

17,139

17,139

(6,669
)
10,470

– POCI
 
—

—

—

—

296

296

(99
)
197

Loans and advances to banks at amortised cost
 
69,599

4,039

2,382

1,040

9

77,069

(54
)
77,015

– stage 1
 
66,544

2,919

2,142

88

—

71,693

(26
)
71,667

– stage 2
 
3,055

1,120

240

952

—

5,367

(23
)
5,344

– stage 3
 
—

—

—

—

9

9

(5
)
4

– POCI
 
—

—

—

—

—

—

—

—

Other financial assets measured at amortised cost
 
665,256

60,821

24,788

774

233

751,872

(243
)
751,629

– stage 1
 
664,153

58,654

21,716

201

—

744,724

(96
)
744,628

– stage 2
 
1,103

2,167

3,072

573

—

6,915

(63
)
6,852

– stage 3
 
—

—

—

—

232

232

(84
)
148

– POCI
 
—

—

—

—

1

1

—

1

Loan and other credit-related commitments
 
407,827

149,477

81,707

8,087

1,058

648,156

(622
)
647,534

– stage 1
 
400,182

131,509

60,334

2,375

—

594,400

(193
)
594,207

– stage 2
 
7,645

17,968

21,373

5,712

—

52,698

(339
)
52,359

– stage 3
 
—

—

—

—

1,055

1,055

(90
)
965

– POCI
 
—

—

—

—

3

3

—

3

Financial guarantees
 
6,348

5,393

5,068

1,223

296

18,328

(119
)
18,209

– stage 1
 
5,918

4,290

2,590

331

—

13,129

(28
)
13,101

– stage 2
 
430

1,103

2,478

892

—

4,903

(73
)
4,830

– stage 3
 
—

—

—

—

295

295

(18
)
277

– POCI
 
—

—

—

—

1

1

—

1

At 30 Jun 2020
 
1,642,616

463,070

362,736

39,880

19,031

2,527,333

(14,265
)
2,513,068

Debt instruments at FVOCI
1
 
 
 
 
 
 
 
 
– stage 1
 
369,864

9,395

9,533

—

—

388,792

(124
)
388,668

– stage 2
 
2,812

616

387

962

—

4,777

(18
)
4,759

– stage 3
 
—

—

—

—

280

280

(100
)
180

– POCI
 
—

—

—

—

—

—

—

—

At 30 Jun 2020
 
372,676

10,011

9,920

962

280

393,849

(242
)
393,607

Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation
(continued)
 
 
Gross carrying/notional amount
 
 
 
 
Strong

Good

Satisfactory

Sub-standard

Credit impaired

Total

Allowance for ECL

 Net

 
Footnotes
$m

$m

$m

$m

$m

$m

$m

$m

Loans and advances to customers at amortised cost
 
524,889

258,402

228,485

20,007

13,692

1,045,475

(8,732
)
1,036,743

– stage 1
 
523,092

242,631

181,056

4,804

—

951,583

(1,297
)
950,286

– stage 2
 
1,797

15,771

47,429

15,185

—

80,182

(2,284
)
77,898

– stage 3
 
—

—

—

—

13,378

13,378

(5,052
)
8,326

– POCI
 
—

—

—

18

314

332

(99
)
233

Loans and advances to banks at amortised cost
 
60,636

5,329

1,859

1,395

—

69,219

(16
)
69,203

– stage 1
 
60,548

5,312

1,797

112

—

67,769

(14
)
67,755

– stage 2
 
88

17

62

1,283

—

1,450

(2
)
1,448

– stage 3
 
—

—

—

—

—

—

—

—

– POCI
 
—

—

—

—

—

—

—

—

Other financial assets measured at amortised cost
 
537,253

54,505

22,766

503

152

615,179

(118
)
615,061

– stage 1
 
536,942

54,058

21,921

279

—

613,200

(38
)
613,162

– stage 2
 
311

447

845

224

—

1,827

(38
)
1,789

– stage 3
 
—

—

—

—

151

151

(42
)
109

– POCI
 
—

—

—

—

1

1

—

1

Loan and other credit-related commitments
 
369,424

146,988

77,499

5,338

780

600,029

(329
)
599,700

– stage 1
 
368,711

141,322

66,283

1,315

—

577,631

(137
)
577,494

– stage 2
 
713

5,666

11,216

4,023

—

21,618

(133
)
21,485

– stage 3
 
—

—

—

—

771

771

(59
)
712

– POCI
 
—

—

—

—

9

9

—

9

Financial guarantees
 
7,441

6,033

5,539

1,011

190

20,214

(48
)
20,166

– stage 1
 
7,400

5,746

4,200

338

—

17,684

(16
)
17,668

– stage 2
 
41

287

1,339

673

—

2,340

(22
)
2,318

– stage 3
 
—

—

—

—

186

186

(10
)
176

– POCI
 
—

—

—

—

4

4

—

4

At 31 Dec 2019
 
1,499,643

471,257

336,148

28,254

14,814

2,350,116

(9,243
)
2,340,873

Debt instruments at FVOCI
1








– stage 1
 
333,072

10,941

6,902

—

—

350,915

(39
)
350,876

– stage 2
 
86

25

320

544

—

975

(127
)
848

– stage 3
 
—

—

—

—

—

—

—

—

– POCI
 
—

—

—

—

1

1

—

1

At 31 Dec 2019
 
333,158

10,966

7,222

544

1

351,891

(166
)
351,725

1
For the purposes of this disclosure, gross carrying value is defined as the amortised cost of a financial asset, before adjusting for any loss allowance. As such, the gross carrying value of debt instruments at FVOCI will not reconcile to the balance sheet as it excludes fair value gains and losses.