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Consolidated income statement - USD ($)
$ in Millions
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Disclosure Of Face Statements [Line Items]      
Net interest expense $ 27,578 $ 30,462 $ 30,489
– interest income [1],[2] 41,756 54,695 49,609
– interest expense [3] (14,178) (24,233) (19,120)
Net fee income 11,874 12,023 12,620
– fee income 15,051 15,439 16,044
– fee expense (3,177) (3,416) (3,424)
Net income from financial instruments held for trading or managed on a fair value basis 9,582 10,231 9,531
Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss 2,081 3,478 (1,488)
Changes in fair value of designated debt and related derivatives [4] 231 90 (97)
Changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss 455 812 695
Gains less losses from financial investments 653 335 218
Net insurance premium income 10,093 10,636 10,659
Other operating income 527 2,957 960
Total operating income 63,074 71,024 63,587
Net insurance claims and benefits paid and movement in liabilities to policyholders (12,645) (14,926) (9,807)
Net operating income before change in expected credit losses and other credit impairment charges 50,429 56,098 53,780
Change in expected credit losses and other credit impairment charges (8,817) (2,756) (1,767)
Net operating income 41,612 53,342 52,013
Employee compensation and benefits (18,076) (18,002) (17,373)
General and administrative expenses (11,115) (13,828) (15,353)
Depreciation and impairment of property, plant and equipment and right-of-use assets [5] (2,681) (2,100) (1,119)
Amortisation and impairment of intangible assets (2,519) (1,070) (814)
Goodwill impairment (41) (7,349) 0
Total operating expenses (34,432) (42,349) (34,659)
Operating profit 7,180 10,993 17,354
Share of profit in associates and joint ventures 1,597 2,354 2,536
Profit before tax 8,777 13,347 19,890
Tax expense (2,678) (4,639) (4,865)
Profit for the year 6,099 8,708 15,025
Attributable to:      
– ordinary shareholders of the parent company 3,898 5,969 12,608
– preference shareholders of the parent company 90 90 90
– other equity holders 1,241 1,324 1,029
– non-controlling interests 870 1,325 1,298
Profit for the year $ 6,099 $ 8,708 $ 15,025
Basic earnings per ordinary share (in dollars per share) $ 0.19 $ 0.30 $ 0.63
Diluted earnings per ordinary share (in dollars per share) $ 0.19 $ 0.30 $ 0.63
HSBC Holdings      
Disclosure Of Face Statements [Line Items]      
Net interest expense $ (2,632) $ (2,554) $ (1,112)
– interest income 473 1,249 2,193
– interest expense (3,105) (3,803) (3,305)
Net fee income (12) (2) 0
Net income from financial instruments held for trading or managed on a fair value basis 801 1,477 245
Changes in fair value of designated debt and related derivatives [6] (326) (360) (77)
Changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss 1,141 1,659 43
Gains less losses from financial investments 0 0 4
Dividend income from subsidiaries [7] 8,156 15,117 55,304
Other operating income 1,889 1,293 960
Net operating income before change in expected credit losses and other credit impairment charges 9,017 16,630 55,367
Employee compensation and benefits (56) (37) (37)
General and administrative expenses (4,276) (4,772) (4,507)
Impairment of subsidiaries (435) (2,562) 2,064
Total operating expenses (4,767) (7,371) (2,480)
Profit before tax 4,250 9,259 52,887
Tax expense (165) (218) (62)
Profit for the year 4,085 9,041 52,825
Attributable to:      
Profit for the year $ 4,085 $ 9,041 $ 52,825
[1] Interest income includes $35,293m (2019: $45,708m) of interest recognised on financial assets measured at amortised cost and $5,614m (2019: $8,259m) of interest recognised on financial assets measured at fair value through other comprehensive income.
[2] Interest revenue calculated using the effective interest method comprises interest recognised on financial assets measured at either amortised cost or fair value through other comprehensive income.
[3]     Interest expense includes $12,426m (2019: $21,922m) of interest on financial instruments, excluding interest on financial liabilities held for trading or designated or otherwise mandatorily measured at fair value.
[4] The debt instruments, issued for funding purposes, are designated under the fair value option to reduce an accounting mismatch.
[5] Includes depreciation of the right-of-use assets of $1,029m (2019: $912m). Right-of-use assets have been recognised from 1 January 2019 following the adoption of IFRS 16. Comparatives have not been restated.
[6] The debt instruments, issued for funding purposes, are designated under the fair value option to reduce an accounting mismatch.
[7] The 2018 year included $44,893m (2020 and 2019: nil) return on capital from HSBC Finance (Netherlands) resulting from restructuring the Group’s Asia operation to meet resolution and recovery requirements.