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Consolidated statement of changes in equity (Parenthetical)
12 Months Ended
Dec. 31, 2020
USD ($)
$ / shares
shares
Dec. 31, 2019
USD ($)
$ / shares
shares
Dec. 31, 2018
USD ($)
$ / shares
shares
Sep. 30, 2020
USD ($)
Aug. 31, 2019
USD ($)
May 31, 2018
USD ($)
Dec. 31, 2009
USD ($)
Dec. 31, 2003
USD ($)
Dec. 31, 2000
USD ($)
Redemption of securities $ 1,450,000,000 [1] $ 1,508,000,000 [1] $ 6,088,000,000 [1]            
Cumulative goodwill 5,138,000,000                
Transfers $ 0 [2] $ 0 [2] $ 0 [2]            
Dividends paid on ordinary shares per share (in dollars per share) | $ / shares $ 0 $ 0.51 $ 0.51            
Profit for the year $ 6,099,000,000 $ 8,708,000,000 $ 15,025,000,000            
Cancellation of shares   (1,000,000,000) [3] (1,998,000,000) [3]            
Total equity 204,995,000,000 $ 192,668,000,000 $ 194,249,000,000            
Preference shares                  
Redemption of securities $ 1,450,000,000                
Other equity instruments interest rate 6.20%                
Number of shares outstanding | shares 1,450,000 1,450,000              
GBP 1,000m 5.875% Perpetual Subordinated Contingent Convertible Securities                  
Other equity instruments interest rate 5.875%                
SGD 750m 5.000% Perpetual Subordinated Contingent Convertible Securities                  
Other equity instruments interest rate 5.00%                
8.125% Perpetual Subordinated Capital Securities                  
Notional amount $ 2,200                
Other equity instruments interest rate 8.125%                
8.000% Perpetual Subordinated Capital Securities, Series 2                  
Notional amount $ 3,800                
Other equity instruments interest rate 8.00%                
Contingent convertible securities | GBP 1,000m 5.875% Perpetual Subordinated Contingent Convertible Securities                  
Other equity instruments interest rate 5.875%                
Contingent convertible securities | SGD 750m 5.000% Perpetual Subordinated Contingent Convertible Securities                  
Other equity instruments interest rate 5.00%                
Treasury shares                  
Number of shares outstanding | shares 509,825,249 432,108,782 379,926,645            
Merger and other reserves                  
Cumulative goodwill $ 3,469,000,000                
Cumulative acquisition value             $ 15,796,000,000    
Transfers (435,000,000) [2],[4],[5] $ (2,475,000,000) [2],[4],[5] $ 2,200,000,000 [2],[5]            
Cancellation of shares   68,000,000 [3],[4],[5] 269,000,000 [3],[5]            
Total equity 26,935,000,000 [4],[5] 27,370,000,000 [4],[5] 29,777,000,000 [4],[5]            
Merger and other reserves | HSBC Continental Europe                  
Cumulative acquisition value                 $ 8,290,000,000
Merger and other reserves | HSBC Finance Corporation                  
Cumulative acquisition value               $ 12,768,000,000  
Retained earnings                  
Redemption of securities 1,450,000,000 [1] 12,000,000 [1],[4],[6] 237,000,000 [1],[4],[6]            
Cumulative goodwill 1,669,000,000                
Transfers 435,000,000 [2] 2,475,000,000 [2],[4],[6] (2,200,000,000) [2],[4],[6]            
Profit for the year 5,229,000,000 [4],[6] 7,383,000,000 [4],[6] 13,727,000,000 [4],[6]            
Cancellation of shares   (1,000,000,000) [3],[4],[6] (4,998,000,000) [3],[4],[6]            
Total equity 140,572,000,000 [4],[6] 136,679,000,000 [4],[6] 138,191,000,000 [4],[6]            
HSBC Holdings                  
Redemption of securities 1,450,000,000 1,508,000,000 6,079,000,000            
Transfers 0 [7] $ 0 [7] $ 0 [7]            
Dividends paid on ordinary shares per share (in dollars per share) | $ / shares   $ 0.51 $ 0.51            
Profit for the year 4,085,000,000 $ 9,041,000,000 $ 52,825,000,000            
Cancellation of shares   (1,000,000,000) [8] (1,998,000,000) [9]            
Total equity 146,800,000,000 145,044,000,000 147,353,000,000            
HSBC Holdings | HSBC Overseas Holdings (UK) Limited                  
Impairment loss 435,000,000                
HSBC Holdings | Contingent convertible securities                  
Notional amount $ 1,500,000,000                
Payments for debt issue costs     60,000,000            
Intercompany debt issue costs     49,000,000            
Tax effect of issuance of contingent convertible securities     11,000,000            
HSBC Holdings | Contingent convertible securities | $4,150m Perpetual Subordinated Contingent Convertible Securities                  
Notional amount     4,150,000,000            
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 | 8.125% Perpetual Subordinated Capital Securities                  
Notional amount   1,500,000,000 $ 2,200,000,000            
Payments for debt issue costs   $ 12,000,000              
Other equity instruments interest rate   5.625% 812.50%            
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%            
HSBC Holdings | Treasury shares                  
Number of shares outstanding | shares 326,766,253 326,191,804 326,503,319            
Total equity $ 2,521,000,000 $ 2,543,000,000 $ 2,546,000,000            
HSBC Holdings | Merger and other reserves                  
Transfers (435,000,000) [7] (2,475,000,000) [7] 2,200,000,000 [7]            
Cancellation of shares   68,000,000 [8] 269,000,000 [9]            
Total equity 34,757,000,000 37,539,000,000 39,899,000,000            
HSBC Holdings | Retained earnings                  
Redemption of securities 1,450,000,000 [10] 20,000,000 [10] 236,000,000 [10]            
Transfers 435,000,000 [7],[10] 2,475,000,000 [7],[10] (2,200,000,000) [7],[10]            
Profit for the year 4,085,000,000 [10] 9,041,000,000 [10] 52,825,000,000 [10]            
Cancellation of shares   (1,000,000,000) [8],[10] (4,998,000,000) [9],[10]            
Total equity 65,005,000,000 [10] 62,484,000,000 [10] 61,434,000,000 [10]            
Subsidiaries' repayment of capital invested 1,650,000,000                
HSBC Holdings | Share premium                  
Cancellation of shares     2,836,000,000 [9]            
Total equity $ 14,277,000,000 13,959,000,000 $ 13,609,000,000            
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       $ 1,000,000,000.0          
May 2018 Share Buy-Back Program                  
Authorized amount for share buy-back program           $ 2,000,000,000.0      
[1] During 2020, HSBC Holdings called $1,450m 6.20% non-cumulative US dollar preference shares. For further details, see Note 31 in the Annual Report and Accounts 2020. In 2019, HSBC Holdings redeemed $1,500m 5.625% perpetual subordinated capital securities on which there were $12m of external issuance costs. In 2018, HSBC Holdings redeemed $2,200m 8.125% perpetual subordinated capital securities and its $3,800m 8.000% perpetual subordinated capital securities, Series 2, on which there were $172m of external issuance costs and $23m of intra-Group issuance costs wound down. Under IFRSs external issuance costs are classified as equity.
[2] 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. In 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. During 2020, a further impairment of $435m was recognised and a permitted transfer of this amount was made from the merger reserve to retained earnings.
[3] For further details, see Note 31 in the Annual Report and Accounts 2020. 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.
[4] 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.
[5] 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 Continental Europe 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 Continental Europe 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.
[6] At 31 December 2020, retained earnings included 509,825,249 treasury shares (2019: 432,108,782; 2018: 379,926,645). 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.
[7] At 31 December 2020, an impairment of $435m of HSBC Overseas Holdings (UK) Limited (2019: $2,475m) was recognised and a permitted transfer of $435m (2019: $2,475m) was made from the merger reserve to retained earnings. In 2018, a part reversal of the impairment of HSBC Overseas Holdings (UK) Limited resulted in a transfer from retained earnings back to the merger reserve of $2,200m
[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 2018 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] At 31 December 2020, retained earnings included 326,766,253 ($2,521m) treasury shares (2019: 326,191,804 ($2,543m); 2018: 326,503,319 ($2,546m)).