|
For the year ended
|
||
Reported results
|
2023
|
20221
|
2021
|
Profit before tax ($m)
|
30,348
|
17,058
|
18,906
|
Profit after tax ($m)
|
24,559
|
16,249
|
14,693
|
Cost efficiency ratio (%)
|
48.5
|
64.6
|
69.9
|
Net interest margin (%)
|
1.66
|
1.42
|
1.20
|
Basic earnings per share ($)
|
1.15
|
0.72
|
0.62
|
Diluted earnings per share ($)
|
1.14
|
0.72
|
0.62
|
Dividend per ordinary share (in respect of the period)
($)
|
0.61
|
0.32
|
0.25
|
Dividend
payout ratio (%)2
|
50
|
44
|
40
|
Alternative performance measures
|
|
|
|
Constant
currency profit before tax ($m)
|
30,348
|
16,541
|
17,400
|
Constant
currency cost efficiency ratio (%)
|
48.5
|
64.8
|
70.0
|
Expected credit losses and other credit impairment charges ('ECL')
as % of average gross loans and advances to customers
(%)
|
0.36
|
0.36
|
(0.07)
|
Expected
credit losses and other credit impairment charges ('ECL') as % of
average gross loans and advances to customers, including held for
sale (%)
|
0.33
|
0.35
|
(0.07)
|
Basic earnings per share excluding material notable items and
related impacts ($)
|
1.22
|
N/A
|
N/A
|
Return on average ordinary shareholders' equity (%)
|
13.6
|
9.0
|
7.1
|
Return on average tangible equity (%)
|
14.6
|
10.0
|
8.3
|
Return
on average tangible equity excluding strategic transactions and
impairment of BoCom (%)
|
15.6
|
11.3
|
N/A
|
Target
basis operating expenses ($m)
|
31,614
|
29,811
|
N/A
|
|
At 31 December
|
||
Balance sheet
|
2023
|
20221
|
2021
|
Total assets ($m)
|
3,038,677
|
2,949,286
|
2,957,939
|
Net loans and advances to customers ($m)
|
938,535
|
923,561
|
1,045,814
|
Customer accounts ($m)
|
1,611,647
|
1,570,303
|
1,710,574
|
Average interest-earning assets ($m)
|
2,161,746
|
2,143,758
|
2,209,513
|
Loans and advances to customers as % of customer accounts
(%)
|
58.2
|
58.8
|
61.1
|
Total shareholders' equity ($m)
|
185,329
|
177,833
|
198,250
|
Tangible ordinary shareholders' equity ($m)
|
155,710
|
146,927
|
158,193
|
Net asset value per ordinary share at period end ($)
|
8.82
|
8.01
|
8.76
|
Tangible net asset value per ordinary share at period end
($)
|
8.19
|
7.44
|
7.88
|
Capital, leverage and liquidity
|
|
|
|
Common
equity tier 1 capital ratio (%)3
|
14.8
|
14.2
|
15.8
|
Risk-weighted
assets ($m)3,4
|
854,114
|
839,720
|
838,263
|
Total
capital ratio (%)3,4
|
20.0
|
19.3
|
21.2
|
Leverage
ratio (%)3,4
|
5.6
|
5.8
|
5.2
|
High-quality
liquid assets (liquidity value) ($m)4,5
|
647,505
|
647,046
|
688,209
|
Liquidity
coverage ratio (%)4,5
|
136
|
132
|
139
|
Net
stable funding ratio (%)4,5
|
133
|
136
|
N/A
|
Share count
|
|
|
|
Period end basic number of $0.50 ordinary shares outstanding
(millions)
|
19,006
|
19,739
|
20,073
|
Period end basic number of $0.50 ordinary shares outstanding and
dilutive potential ordinary shares (millions)
|
19,135
|
19,876
|
20,189
|
Average basic number of $0.50 ordinary shares outstanding
(millions)
|
19,478
|
19,849
|
20,197
|
|
|
|
|
|
Year ended 31 Dec
|
|
|
2023
|
2022¹
|
|
$m
|
$m
|
Reported
|
|
|
Revenue2,3,4,5
|
66,058
|
50,620
|
Change in expected credit losses and other credit impairment
charges
|
(3,447)
|
(3,584)
|
Operating expenses
|
(32,070)
|
(32,701)
|
Share
of profit in associates and joint ventures less
impairment9
|
(193)
|
2,723
|
Profit before tax
|
30,348
|
17,058
|
Tax
charge
|
(5,789)
|
(809)
|
Profit after tax
|
24,559
|
16,249
|
Constant currency6
|
|
|
Revenue2,3,4,5
|
66,058
|
49,871
|
Change in expected credit losses and other credit impairment
charges
|
(3,447)
|
(3,630)
|
Operating expenses
|
(32,070)
|
(32,302)
|
Share
of profit in associates and joint ventures less
impairment9
|
(193)
|
2,602
|
Profit before tax
|
30,348
|
16,541
|
Tax
charge
|
(5,789)
|
(649)
|
Profit after tax
|
24,559
|
15,892
|
Notable items
|
|
|
Revenue
|
|
|
Disposals,
acquisitions and related costs3,4,5
|
1,298
|
(2,737)
|
Fair
value movements on financial instruments7
|
14
|
(618)
|
Restructuring
and other related costs8
|
-
|
(247)
|
Disposal losses on Markets Treasury repositioning
|
(977)
|
-
|
Operating expenses
|
|
|
Disposals, acquisitions and investment in new
businesses
|
(321)
|
(18)
|
Restructuring
and other related costs9
|
136
|
(2,882)
|
Impairment of interest in associate10
|
(3,000)
|
-
|
Tax
|
|
|
Tax
credit on notable items
|
207
|
1,026
|
Recognition of losses
|
-
|
2,333
|
Uncertain tax positions
|
427
|
(142)
|
|
Year ended 31 December
|
|
|
2023
|
2022¹
|
|
$m
|
$m
|
For the year
|
|
|
Profit before tax
|
30,348
|
17,058
|
Profit attributable to:
|
|
|
- ordinary shareholders of the parent company
|
22,432
|
14,346
|
Dividends
on ordinary shares
|
10,492
|
5,330
|
|
At 31 December
|
|
|
2023
|
2022
|
|
$m
|
$m
|
Total shareholders' equity
|
185,329
|
177,833
|
Total regulatory capital
|
171,204
|
162,423
|
Customer accounts
|
1,611,647
|
1,570,303
|
Total assets
|
3,038,677
|
2,949,286
|
Risk-weighted assets
|
854,114
|
839,720
|
|
|
|
Per ordinary share
|
$
|
$
|
Basic earnings per share
|
1.15
|
0.72
|
Dividend per ordinary share (in respect of the period)
|
0.61
|
0.32
|
Dividends per ordinary share (paid in the period)
|
0.53
|
0.27
|
Net
asset value per ordinary share at period end2
|
8.82
|
8.01
|
Tangible
net asset value per ordinary share at period end3
|
8.19
|
7.44
|
|
|
|
Share information
|
|
|
Number of $0.50 ordinary shares in issue (millions)
|
19,263
|
20,294
|
Basic number of $0.50 ordinary shares outstanding
(millions)
|
19,006
|
19,739
|
Basic number of $0.50 ordinary shares outstanding and dilutive
potential ordinary shares (millions)
|
19,135
|
19,876
|
Constant currency profit/(loss) before tax
|
||||
|
Year ended 31 Dec
|
|||
|
2023
|
20221
|
||
|
$m
|
%
|
$m
|
%
|
Wealth and Personal Banking
|
11,544
|
38.0
|
5,480
|
33.1
|
Commercial
Banking2
|
13,280
|
43.8
|
7,527
|
45.6
|
Global
Banking and Markets2
|
5,924
|
19.5
|
4,689
|
28.3
|
Corporate Centre
|
(400)
|
(1.3)
|
(1,155)
|
(7.0)
|
Profit before tax
|
30,348
|
100.0
|
16,541
|
100.0
|
Reported profit/(loss) before tax
|
||||
|
Year ended 31 Dec
|
|||
|
2023
|
20221
|
||
|
$m
|
%
|
$m
|
%
|
HSBC UK
Bank plc
|
8,270
|
27.2
|
4,487
|
26.3
|
HSBC
Bank plc
|
2,639
|
8.7
|
(1,395)
|
(8.2)
|
The
Hongkong and Shanghai Banking Corporation Limited
|
16,167
|
53.3
|
12,899
|
75.6
|
HSBC
Bank Middle East Limited
|
1,239
|
4.1
|
728
|
4.3
|
HSBC
North America Holdings Inc.
|
518
|
1.7
|
705
|
4.1
|
HSBC
Bank Canada
|
871
|
2.9
|
832
|
4.9
|
Grupo
Financiero HSBC, S.A. de C.V.
|
805
|
2.6
|
583
|
3.4
|
Other
trading entities2
|
2,359
|
7.8
|
1,432
|
8.4
|
- of which: other Middle East entities (including Oman,
Türkiye, Egypt and Saudi Arabia)
|
748
|
2.5
|
655
|
3.8
|
- of which: Saudi Awwal Bank
|
538
|
1.8
|
342
|
2.0
|
Holding companies, shared service centres and intra-Group
eliminations
|
(2,520)
|
(8.3)
|
(3,213)
|
(18.8)
|
Profit before tax
|
30,348
|
100.0
|
17,058
|
100.0
|
HSBC
constant currency profit before tax and balance sheet
data
|
|
2023
|
||||
|
Wealth and
Personal
Banking
|
Commercial
Banking3
|
Global
Banking and
Markets3
|
Corporate Centre
|
Total
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
Net operating income/(expense) before change in expected credit
losses and other credit impairment charges2
|
27,275
|
22,867
|
16,115
|
(199)
|
66,058
|
- external
|
19,107
|
24,209
|
28,021
|
(5,279)
|
66,058
|
- inter-segment
|
8,168
|
(1,342)
|
(11,906)
|
5,080
|
-
|
of which: net interest income/(expense)5
|
20,492
|
17,147
|
7,141
|
(8,984)
|
35,796
|
Change
in expected credit losses and other credit impairment
charges
|
(1,058)
|
(2,062)
|
(326)
|
(1)
|
(3,447)
|
Net operating income/(expense)
|
26,217
|
20,805
|
15,789
|
(200)
|
62,611
|
Total operating expenses
|
(14,738)
|
(7,524)
|
(9,865)
|
57
|
(32,070)
|
Operating profit/(loss)
|
11,479
|
13,281
|
5,924
|
(143)
|
30,541
|
Share
of profit in associates and joint ventures less
impairment6
|
65
|
(1)
|
-
|
(257)
|
(193)
|
Constant currency profit/(loss) before tax
|
11,544
|
13,280
|
5,924
|
(400)
|
30,348
|
|
%
|
%
|
%
|
%
|
%
|
Share
of HSBC's constant currency profit before tax
|
38.0
|
43.8
|
19.5
|
(1.3)
|
100.0
|
Constant
currency cost efficiency ratio
|
54.0
|
32.9
|
61.2
|
28.6
|
48.5
|
Constant currency balance sheet data
|
$m
|
$m
|
$m
|
$m
|
$m
|
Loans and advances to customers (net)
|
454,878
|
309,422
|
173,966
|
269
|
938,535
|
Interests in associates and joint ventures
|
551
|
28
|
111
|
26,654
|
27,344
|
Total external assets
|
937,079
|
632,406
|
1,331,395
|
137,797
|
3,038,677
|
Customer accounts
|
804,863
|
475,666
|
330,522
|
596
|
1,611,647
|
Constant
currency risk-weighted assets4
|
192,938
|
354,541
|
218,488
|
88,147
|
854,114
|
|
|
|
|
|
|
|
20221
|
||||
Net
operating income/(expense) before change in expected credit losses
and other credit impairment charges2
|
20,884
|
16,283
|
14,602
|
(1,898)
|
49,871
|
- external
|
18,299
|
16,973
|
18,744
|
(4,145)
|
49,871
|
- inter-segment
|
2,585
|
(690)
|
(4,142)
|
2,247
|
-
|
of which: net interest income/(expense)5
|
15,971
|
11,763
|
4,696
|
(2,668)
|
29,762
|
Change in expected credit losses and other credit impairment
charges
|
(1,186)
|
(1,862)
|
(573)
|
(9)
|
(3,630)
|
Net operating income/(expense)
|
19,698
|
14,421
|
14,029
|
(1,907)
|
46,241
|
Total operating expenses
|
(14,248)
|
(6,894)
|
(9,338)
|
(1,822)
|
(32,302)
|
Operating profit/(loss)
|
5,450
|
7,527
|
4,691
|
(3,729)
|
13,939
|
Share of profit in associates and joint ventures
|
30
|
-
|
(2)
|
2,574
|
2,602
|
Constant
currency profit/(loss) before tax
|
5,480
|
7,527
|
4,689
|
(1,155)
|
16,541
|
|
%
|
%
|
%
|
%
|
%
|
Share
of HSBC's constant currency profit before tax
|
33.1
|
45.6
|
28.3
|
(7.0)
|
100.0
|
Constant
currency cost efficiency ratio
|
68.2
|
42.3
|
64.0
|
(96.0)
|
64.8
|
Constant
currency balance sheet data
|
$m
|
$m
|
$m
|
$m
|
$m
|
Loans and advances to customers (net)
|
434,122
|
316,863
|
190,202
|
361
|
941,548
|
Interests in associates and joint ventures
|
514
|
33
|
93
|
28,143
|
28,783
|
Total external assets
|
893,867
|
620,193
|
1,341,575
|
152,049
|
3,007,684
|
Customer
accounts
|
793,310
|
472,424
|
332,303
|
458
|
1,598,495
|
Constant
currency risk-weighted assets4
|
184,519
|
344,217
|
225,836
|
88,496
|
843,068
|
Consolidated
income statement
|
|
2023
|
20221
|
|
$m
|
$m
|
Net interest income
|
35,796
|
30,377
|
-
interest income2,3
|
100,868
|
52,826
|
-
interest expense4
|
(65,072)
|
(22,449)
|
Net fee income
|
11,845
|
11,770
|
- fee income
|
15,616
|
15,124
|
- fee expense
|
(3,771)
|
(3,354)
|
Net income from financial instruments held for trading or managed
on a fair value basis
|
16,661
|
10,278
|
Net income/(expense) from assets and liabilities of insurance
businesses, including related derivatives, measured at fair value
through profit or loss
|
7,887
|
(13,831)
|
Insurance
finance (expense)/income
|
(7,809)
|
13,799
|
Insurance service result
|
1,078
|
809
|
-
insurance revenue
|
2,259
|
1,977
|
- insurance service expense
|
(1,181)
|
(1,168)
|
Gain on
acquisition5
|
1,591
|
-
|
(Impairment)/reversal
of impairment relating to the sale of our retail banking operations
in France6
|
150
|
(2,316)
|
Other
operating (expense)/income7
|
(1,141)
|
(266)
|
Net operating income before change in expected credit losses and
other credit impairment charges8
|
66,058
|
50,620
|
Change in expected credit losses and other credit impairment
charges
|
(3,447)
|
(3,584)
|
Net operating income
|
62,611
|
47,036
|
Employee compensation and benefits
|
(18,220)
|
(18,003)
|
General and administrative expenses
|
(10,383)
|
(10,848)
|
Depreciation
and impairment of property, plant and equipment and right-of-use
assets9
|
(1,640)
|
(2,149)
|
Amortisation and impairment of intangible assets
|
(1,827)
|
(1,701)
|
Total operating expenses
|
(32,070)
|
(32,701)
|
Operating profit
|
30,541
|
14,335
|
Share
of profit in associates and joint ventures
|
2,807
|
2,723
|
Impairment
of interest in associate
|
(3,000)
|
-
|
Profit before tax
|
30,348
|
17,058
|
Tax expense
|
(5,789)
|
(809)
|
Profit for the year
|
24,559
|
16,249
|
Attributable to:
|
|
|
- ordinary shareholders of the parent company
|
22,432
|
14,346
|
- other equity holders
|
1,101
|
1,213
|
- non-controlling interests
|
1,026
|
690
|
Profit for the year
|
24,559
|
16,249
|
|
$
|
$
|
Basic earnings per ordinary share
|
1.15
|
0.72
|
Diluted earnings per ordinary share
|
1.14
|
0.72
|
Consolidated
statement of comprehensive income
|
|
2023
|
2022¹
|
|
$m
|
$m
|
Profit for the year
|
24,559
|
16,249
|
Other comprehensive income/(expense)
|
|
|
Items that will be reclassified subsequently to profit or loss when
specific conditions are met:
|
|
|
Debt instruments at fair value through other comprehensive
income
|
2,599
|
(7,232)
|
- fair value gains/(losses)
|
2,381
|
(9,618)
|
-
fair value losses/(gains) transferred to the income statement on
disposal
|
905
|
(18)
|
-
expected credit (recoveries)/losses recognised in the income
statement
|
59
|
56
|
- income taxes
|
(746)
|
2,348
|
Cash flow hedges
|
2,953
|
(3,655)
|
- fair value gains/(losses)
|
2,534
|
(4,207)
|
- fair value (gains)/losses reclassified to the income
statement
|
1,463
|
(758)
|
- income taxes
|
(1,044)
|
1,310
|
Share of other comprehensive income/(expense) of associates and
joint ventures
|
47
|
(367)
|
- share for the year
|
47
|
(367)
|
Net
finance income/(expenses) from insurance contracts
|
(364)
|
1,775
|
- before income taxes
|
(491)
|
2,393
|
- income taxes
|
127
|
(618)
|
Exchange differences
|
(204)
|
(9,918)
|
Items that will not be reclassified subsequently to profit or
loss:
|
|
|
Fair value gains on property revaluation
|
1
|
280
|
Remeasurement
of defined benefit liability
|
(314)
|
(1,031)
|
- before income taxes
|
(413)
|
(1,723)
|
- income taxes
|
99
|
692
|
Changes
in fair value of financial liabilities designated at fair value
upon initial recognition arising from changes in own credit
risk
|
(1,219)
|
1,922
|
-
before income taxes
|
(1,617)
|
2,573
|
-
income taxes
|
398
|
(651)
|
Equity instruments designated at fair value through other
comprehensive income
|
(120)
|
107
|
- fair value gains/(losses)
|
(120)
|
107
|
Effects of hyperinflation
|
1,604
|
877
|
Other comprehensive income/(expense) for the year, net of
tax
|
4,983
|
(17,242)
|
Total comprehensive income/(expense) for the year
|
29,542
|
(993)
|
Attributable to:
|
|
|
- ordinary shareholders of the parent company
|
27,397
|
(2,810)
|
- other equity holders
|
1,101
|
1,213
|
- non-controlling interests
|
1,044
|
604
|
Total comprehensive income/(expense) for the year
|
29,542
|
(993)
|
Consolidated
balance sheet
|
|
|
at 31 December 2023
|
|
|
|
At1
|
|
|
31 Dec
|
31 Dec
|
|
2023
|
2022
|
|
$m
|
$m
|
Assets
|
|
|
Cash and balances at central banks
|
285,868
|
327,002
|
Items in the course of collection from other banks
|
6,342
|
7,297
|
Hong Kong Government certificates of indebtedness
|
42,024
|
43,787
|
Trading assets
|
289,159
|
218,093
|
Financial assets designated and otherwise mandatorily measured at
fair value through profit or loss
|
110,643
|
100,101
|
Derivatives
|
229,714
|
284,159
|
Loans and advances to banks
|
112,902
|
104,475
|
Loans and advances to customers
|
938,535
|
923,561
|
Reverse repurchase agreements - non-trading
|
252,217
|
253,754
|
Financial investments
|
442,763
|
364,726
|
Assets
held for sale
|
114,134
|
115,919
|
Prepayments, accrued income and other assets
|
165,255
|
156,149
|
Current tax assets
|
1,536
|
1,230
|
Interests in associates and joint ventures
|
27,344
|
29,254
|
Goodwill and intangible assets
|
12,487
|
11,419
|
Deferred tax assets
|
7,754
|
8,360
|
Total assets
|
3,038,677
|
2,949,286
|
Liabilities
|
|
|
Hong Kong currency notes in circulation
|
42,024
|
43,787
|
Deposits by banks
|
73,163
|
66,722
|
Customer accounts
|
1,611,647
|
1,570,303
|
Repurchase agreements - non-trading
|
172,100
|
127,747
|
Items in the course of transmission to other banks
|
7,295
|
7,864
|
Trading liabilities
|
73,150
|
72,353
|
Financial liabilities designated at fair value
|
141,426
|
127,321
|
Derivatives
|
234,772
|
285,762
|
Debt securities in issue
|
93,917
|
78,149
|
Liabilities
of disposal groups held for sale
|
108,406
|
114,597
|
Accruals, deferred income and other liabilities
|
136,606
|
134,313
|
Current tax liabilities
|
2,777
|
1,135
|
Insurance
contract liabilities
|
120,851
|
108,816
|
Provisions
|
1,741
|
1,958
|
Deferred tax liabilities
|
1,238
|
972
|
Subordinated liabilities
|
24,954
|
22,290
|
Total liabilities
|
2,846,067
|
2,764,089
|
Equity
|
|
|
Called up share capital
|
9,631
|
10,147
|
Share premium account
|
14,738
|
14,664
|
Other equity instruments
|
17,719
|
19,746
|
Other reserves
|
(8,907)
|
(9,133)
|
Retained earnings
|
152,148
|
142,409
|
Total shareholders' equity
|
185,329
|
177,833
|
Non-controlling interests
|
7,281
|
7,364
|
Total equity
|
192,610
|
185,197
|
Total liabilities and equity
|
3,038,677
|
2,949,286
|
Consolidated
statement of changes in equity
|
|
|
|
Other reserves
|
|
|
|
|
||||
|
Called up
share capital
and share
premium
|
Other
equity
instru-ments
|
Financial
assets at
FVOCI
reserve
|
Cash
flow
hedging
reserve
|
Foreign
exchange
reserve
|
Merger
and other
reserves1,2
|
Insurance
finance
reserve3
|
Retained earnings
1,4
|
Total
share-
holders'
equity
|
Non-
controlling
interests
|
Total
equity
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
At 1 Jan 2023
|
24,811
|
19,746
|
(7,038)
|
(3,808)
|
(32,575)
|
33,209
|
1,079
|
142,409
|
177,833
|
7,364
|
185,197
|
Profit for the year
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
23,533
|
23,533
|
1,026
|
24,559
|
Other comprehensive income (net of tax)
|
-
|
-
|
2,402
|
3,030
|
(211)
|
1
|
(371)
|
114
|
4,965
|
18
|
4,983
|
- debt instruments at fair value through other comprehensive
income
|
-
|
-
|
2,574
|
-
|
-
|
-
|
-
|
-
|
2,574
|
25
|
2,599
|
- equity instruments designated at fair value through other
comprehensive income
|
-
|
-
|
(93)
|
-
|
-
|
-
|
-
|
-
|
(93)
|
(27)
|
(120)
|
- cash flow hedges
|
-
|
-
|
-
|
2,919
|
-
|
-
|
-
|
-
|
2,919
|
34
|
2,953
|
- changes in fair value of financial liabilities designated
at fair value upon initial recognition arising from changes in own
credit risk
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,220)
|
(1,220)
|
1
|
(1,219)
|
- property revaluation
|
-
|
-
|
-
|
-
|
-
|
1
|
-
|
-
|
1
|
-
|
1
|
- remeasurement of defined benefit
asset/liability
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(317)
|
(317)
|
3
|
(314)
|
- share of other comprehensive income of associates and joint
ventures
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
47
|
47
|
-
|
47
|
- effects of hyperinflation
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,604
|
1,604
|
-
|
1,604
|
- insurance finance income/(expense) recognised in other
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
(364)
|
-
|
(364)
|
-
|
(364)
|
- exchange differences
|
-
|
-
|
(79)
|
111
|
(211)
|
-
|
(7)
|
-
|
(186)
|
(18)
|
(204)
|
Total comprehensive income for the year
|
-
|
-
|
2,402
|
3,030
|
(211)
|
1
|
(371)
|
23,647
|
28,498
|
1,044
|
29,542
|
Shares issued under employee remuneration and
share plans
|
79
|
-
|
-
|
-
|
-
|
-
|
-
|
(79)
|
-
|
-
|
-
|
Capital
securities issued5
|
-
|
1,996
|
-
|
-
|
-
|
-
|
-
|
-
|
1,996
|
-
|
1,996
|
Dividends to shareholders
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(11,593)
|
(11,593)
|
(603)
|
(12,196)
|
Redemption
of securities6
|
-
|
(4,023)
|
-
|
-
|
-
|
-
|
-
|
20
|
(4,003)
|
-
|
(4,003)
|
Transfers7
|
-
|
-
|
-
|
-
|
-
|
(5,130)
|
-
|
5,130
|
-
|
-
|
-
|
Cost of share-based payment arrangements
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
482
|
482
|
-
|
482
|
Share
buy-back8
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(7,025)
|
(7,025)
|
-
|
(7,025)
|
Cancellation
of shares
|
(521)
|
-
|
-
|
-
|
-
|
521
|
-
|
-
|
-
|
-
|
-
|
Other movements
|
-
|
-
|
1,129
|
(255)
|
(967)
|
-
|
77
|
(843)
|
(859)
|
(524)
|
(1,383)
|
At 31 Dec 2023
|
24,369
|
17,719
|
(3,507)
|
(1,033)
|
(33,753)
|
28,601
|
785
|
152,148
|
185,329
|
7,281
|
192,610
|
Consolidated statement of changes in equity
(continued)
|
|||||||||||
for the year ended 31 December 2022
|
|||||||||||
|
|
|
Other reserves
|
|
|
|
|
||||
|
Called up share capital and share premium
|
Other
equity
instru-ments
|
Financial assets at FVOCI reserve
|
Cash flow
hedging
reserve
|
Foreign
exchange
reserve
|
Merger
and
other reserves1,2
|
Insurance
finance
reserve3
|
Retainedearnings
1,4
|
Total
share-
holders'
equity
|
Non-
controlling
interests
|
Total
equity
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
At 31 Dec 2021 (IFRS 4)
|
24,918
|
22,414
|
(634)
|
(197)
|
(22,769)
|
30,060
|
-
|
144,458
|
198,250
|
8,527
|
206,777
|
Impact
on transition to IFRS 179
|
-
|
-
|
683
|
-
|
-
|
-
|
(696)
|
(9,222)
|
(9,235)
|
(1,224)
|
(10,459)
|
At 1 Jan 2022
|
24,918
|
22,414
|
49
|
(197)
|
(22,769)
|
30,060
|
(696)
|
135,236
|
189,015
|
7,303
|
196,318
|
Profit for the year
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
15,559
|
15,559
|
690
|
16,249
|
Other comprehensive income (net of tax)
|
-
|
-
|
(7,089)
|
(3,613)
|
(9,806)
|
174
|
1,775
|
1,403
|
(17,156)
|
(86)
|
(17,242)
|
- debt instruments at fair value through other comprehensive
income
|
-
|
-
|
(7,181)
|
-
|
-
|
-
|
-
|
-
|
(7,181)
|
(51)
|
(7,232)
|
- equity
instruments designated at fair value through other comprehensive
income
|
-
|
-
|
92
|
-
|
-
|
-
|
-
|
-
|
92
|
15
|
107
|
- cash flow hedges
|
-
|
-
|
-
|
(3,613)
|
-
|
-
|
-
|
-
|
(3,613)
|
(42)
|
(3,655)
|
- changes in fair value of financial liabilities designated
at fair value upon initial recognition arising from changes in own
credit risk
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,922
|
1,922
|
-
|
1,922
|
- property revaluation
|
-
|
-
|
-
|
-
|
-
|
174
|
-
|
-
|
174
|
106
|
280
|
- remeasurement of defined benefit
asset/liability
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,029)
|
(1,029)
|
(2)
|
(1,031)
|
- share of other comprehensive income of associates and joint
ventures
|
-
|
-
|
-
|
-
|
-
|
-
|
|
(367)
|
(367)
|
-
|
(367)
|
- effects of hyperinflation
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
877
|
877
|
-
|
877
|
- insurance finance income/(expense) recognised in other
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
1,775
|
-
|
1,775
|
-
|
1,775
|
- exchange differences
|
-
|
-
|
-
|
-
|
(9,806)
|
-
|
-
|
-
|
(9,806)
|
(112)
|
(9,918)
|
Total comprehensive income for the year
|
-
|
-
|
(7,089)
|
(3,613)
|
(9,806)
|
174
|
1,775
|
16,962
|
(1,597)
|
604
|
(993)
|
Shares issued under employee remuneration and
share plans
|
67
|
-
|
-
|
-
|
-
|
-
|
-
|
(67)
|
-
|
-
|
-
|
Dividends to shareholders
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(6,544)
|
(6,544)
|
(426)
|
(6,970)
|
Redemption
of securities
|
-
|
(2,668)
|
-
|
-
|
-
|
-
|
-
|
402
|
(2,266)
|
-
|
(2,266)
|
Transfers
|
-
|
-
|
-
|
-
|
-
|
2,499
|
-
|
(2,499)
|
-
|
-
|
-
|
Cost of share-based payment arrangements
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
400
|
400
|
-
|
400
|
Share
buy-back
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,000)
|
(1,000)
|
-
|
(1,000)
|
Cancellation
of shares
|
(174)
|
-
|
-
|
-
|
-
|
174
|
-
|
-
|
-
|
-
|
-
|
Other movements
|
-
|
-
|
2
|
2
|
-
|
302
|
-
|
(481)
|
(175)
|
(117)
|
(292)
|
At 31 Dec 2022
|
24,811
|
19,746
|
(7,038)
|
(3,808)
|
(32,575)
|
33,209
|
1,079
|
142,409
|
177,833
|
7,364
|
185,197
|
Consolidated
statement of cash flows
|
||
for the year ended 31 December 2023
|
||
|
2023
|
20221
|
|
$m
|
$m
|
Profit before tax
|
30,348
|
17,058
|
Adjustments for non-cash items:
|
|
|
Depreciation, amortisation and impairment
|
3,466
|
3,850
|
Net loss/(gain) from investing activities
|
1,213
|
11
|
Share
of profit in associates and joint ventures
|
(2,807)
|
(2,723)
|
Impairment
of interest in associate
|
3,000
|
-
|
(Gain)/loss
on acquisition/disposal of subsidiaries, businesses, associates and
joint ventures
|
(1,775)
|
2,554
|
Change
in expected credit losses gross of recoveries and other credit
impairment charges
|
3,717
|
3,898
|
Provisions
including pensions
|
266
|
638
|
Share-based
payment expense
|
482
|
400
|
Other
non-cash items included in profit before tax
|
(4,299)
|
(774)
|
Elimination
of exchange differences2
|
(10,678)
|
48,718
|
Changes in operating assets and liabilities
|
|
|
Change
in net trading securities and derivatives
|
(63,247)
|
20,166
|
Change
in loans and advances to banks and customers
|
(14,145)
|
31,649
|
Change
in reverse repurchase agreements - non-trading
|
(2,095)
|
(23,405)
|
Change in financial assets designated and otherwise mandatorily
measured at fair value
|
(9,994)
|
14,164
|
Change
in other assets3
|
(10,254)
|
(12,858)
|
Change
in deposits by banks and customer accounts
|
45,021
|
(91,194)
|
Change
in repurchase agreements - non-trading
|
43,366
|
4,344
|
Change
in debt securities in issue
|
11,945
|
12,518
|
Change
in financial liabilities designated at fair value
|
10,097
|
(13,654)
|
Change
in other liabilities
|
8,742
|
6,021
|
Dividends
received from associates
|
1,067
|
944
|
Contributions
paid to defined benefit plans
|
(208)
|
(194)
|
Tax
paid
|
(4,117)
|
(2,776)
|
Net cash from operating activities
|
39,111
|
19,355
|
Purchase
of financial investments3
|
(563,561)
|
(511,097)
|
Proceeds
from the sale and maturity of financial investments3
|
504,174
|
492,624
|
Net
cash flows from the purchase and sale of property, plant and
equipment
|
(1,145)
|
(1,284)
|
Net
cash flows from disposal of loan portfolio and customer
accounts
|
623
|
(3,530)
|
Net
investment in intangible assets
|
(2,550)
|
(3,125)
|
Net
cash flow from (acquisition)/disposal of subsidiaries, businesses,
associates and joint ventures4
|
(453)
|
(989)
|
Net cash from investing activities
|
(62,912)
|
(27,401)
|
Issue
of ordinary share capital and other equity instruments
|
1,996
|
-
|
Cancellation
of shares
|
(5,812)
|
(2,285)
|
Net
sales/(purchases) of own shares for market-making and investment
purposes
|
(614)
|
(91)
|
Net cash flow from change in stake of subsidiaries
|
(19)
|
(197)
|
Redemption
of preference shares and other equity instruments
|
(4,003)
|
(2,266)
|
Subordinated
loan capital issued
|
5,237
|
7,300
|
Subordinated
loan capital repaid5
|
(2,147)
|
(1,777)
|
Dividends
paid to shareholders of the parent company and non-controlling
interests
|
(12,196)
|
(6,970)
|
Net cash from financing activities
|
(17,558)
|
(6,286)
|
Net increase/(decrease) in cash and cash equivalents
|
(41,359)
|
(14,332)
|
Cash and cash equivalents at 1 Jan
|
521,671
|
574,032
|
Exchange
differences in respect of cash and cash equivalents
|
10,621
|
(38,029)
|
Cash and cash equivalents at 31 Dec6
|
490,933
|
521,671
|
Cash and cash equivalents comprise:
|
|
|
- cash and balances at central banks
|
285,868
|
327,002
|
- items in the course of collection from other
banks
|
6,342
|
7,297
|
- loans and advances to banks of one month or
less
|
76,620
|
72,295
|
- reverse repurchase agreements with banks of one month or
less
|
64,341
|
68,682
|
- treasury bills, other bills and certificates of deposit
less than three months
|
33,303
|
26,727
|
- cash collateral and net settlement accounts
|
15,819
|
19,445
|
-
cash and cash equivalents held for sale7
|
15,935
|
8,087
|
- less: items in the course of transmission to other
banks
|
(7,295)
|
(7,864)
|
Cash and cash equivalents at 31 Dec6
|
490,933
|
521,671
|
1
|
Basis
of preparation and material accounting policies
|
2
|
Tax
|
Tax expense
|
||
|
2023
|
2022
|
|
$m
|
$m
|
Current
tax1
|
5,718
|
2,984
|
- for this year
|
5,737
|
3,264
|
- adjustments in respect of prior years
|
(19)
|
(280)
|
Deferred tax
|
71
|
(2,175)
|
- origination and reversal of temporary
differences
|
19
|
(2,278)
|
- effect of changes in tax rates
|
17
|
(293)
|
- adjustments in respect of prior years
|
35
|
396
|
Year ended 31 Dec2
|
5,789
|
809
|
|
2023
|
2022
|
||
|
$m
|
%
|
$m
|
%
|
Profit before tax
|
30,348
|
|
17,058
|
|
Tax expense
|
|
|
|
|
Taxation
at UK corporation tax rate of 23.5% (2022: 19.0%)
|
7,132
|
23.5
|
3,241
|
19.0
|
Impact of differently taxed overseas profits in overseas
locations
|
(612)
|
(2.0)
|
459
|
2.7
|
UK banking surcharge
|
350
|
1.2
|
283
|
1.7
|
Items increasing tax charge in 2023:
|
|
|
|
|
-
impairment of interest in associate
|
705
|
2.3
|
-
|
-
|
-
local taxes and overseas withholding taxes
|
419
|
1.4
|
346
|
2.0
|
- impacts of hyperinflation
|
348
|
1.1
|
171
|
1.0
|
-
other permanent disallowables
|
227
|
0.7
|
363
|
2.1
|
-
bank levy
|
112
|
0.4
|
59
|
0.3
|
-
impact of changes in tax rates
|
17
|
0.1
|
(293)
|
(1.7)
|
-
adjustments in respect of prior period
|
16
|
0.1
|
116
|
0.7
|
-
tax impact of sale of French retail banking business
|
-
|
-
|
115
|
0.7
|
Items reducing tax charge in 2023:
|
|
|
|
|
- non-taxable income and gains
|
(1,189)
|
(3.9)
|
(825)
|
(4.8)
|
- effect of profits in associates and joint
ventures
|
(571)
|
(1.9)
|
(504)
|
(3.1)
|
- movements in provisions for uncertain tax
positions
|
(472)
|
(1.6)
|
27
|
0.2
|
-
accounting gain on acquisition of SVB UK
|
(442)
|
(1.5)
|
-
|
-
|
- deductions for AT1 coupon payments
|
(229)
|
(0.7)
|
(246)
|
(1.4)
|
- movements in unrecognised deferred tax
|
(22)
|
(0.1)
|
(2,503)
|
(14.7)
|
Year ended 31 December
|
5,789
|
19.1
|
809
|
4.7
|
Movement of deferred tax assets and liabilities
|
|||||||
|
Loan
impairment
provisions
|
Unused tax
losses and
tax credits
|
Financial assets at FVOCI
|
Cash flow hedges
|
Retirement obligations
|
Other
|
Total
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
Assets
|
1,062
|
4,397
|
850
|
1,271
|
-
|
3,048
|
10,628
|
Liabilities
|
-
|
-
|
-
|
-
|
(1,673)
|
(1,567)
|
(3,240)
|
At 1 Jan 2023
|
1,062
|
4,397
|
850
|
1,271
|
(1,673)
|
1,481
|
7,388
|
Income statement
|
(39)
|
102
|
541
|
1
|
(114)
|
(562)
|
(71)
|
Other comprehensive income
|
-
|
-
|
(598)
|
(974)
|
99
|
399
|
(1,074)
|
Foreign exchange and other adjustments
|
135
|
45
|
83
|
121
|
(126)
|
15
|
273
|
At 31 Dec 2023
|
1,158
|
4,544
|
876
|
419
|
(1,814)
|
1,333
|
6,516
|
Assets1
|
1,158
|
4,544
|
876
|
419
|
-
|
2,933
|
9,930
|
Liabilities1
|
-
|
-
|
-
|
-
|
(1,814)
|
(1,600)
|
(3,414)
|
|
|
|
|
|
|
|
|
Assets2
|
1,151
|
2,001
|
382
|
154
|
-
|
1,744
|
5,432
|
Liabilities2
|
-
|
-
|
-
|
-
|
(2,819)
|
(475)
|
(3,294)
|
At 1
Jan 2022
|
1,151
|
2,001
|
382
|
154
|
(2,819)
|
1,269
|
2,138
|
Income statement
|
7
|
2,425
|
(1,127)
|
1
|
217
|
652
|
2,175
|
Other comprehensive income
|
-
|
-
|
2,281
|
1,159
|
692
|
(1,260)
|
2,872
|
Foreign exchange and other adjustments
|
(96)
|
(29)
|
(686)
|
(43)
|
237
|
820
|
203
|
At 31
Dec 2022
|
1,062
|
4,397
|
850
|
1,271
|
(1,673)
|
1,481
|
7,388
|
Assets1
|
1,062
|
4,397
|
850
|
1,271
|
-
|
3,048
|
10,628
|
Liabilities1
|
-
|
-
|
-
|
-
|
(1,673)
|
(1,567)
|
(3,240)
|
3
|
Dividends
|
Dividends to shareholders of the parent company
|
||||
|
2023
|
2022
|
||
|
Per
share
|
Total
|
Per
share
|
Total
|
|
$
|
$m
|
$
|
$m
|
Dividends paid on ordinary shares
|
|
|
|
|
In respect of previous year:
|
|
|
|
|
-
second interim dividend
|
0.23
|
4,589
|
0.18
|
3,576
|
In respect of current year:
|
|
|
|
|
- first interim dividend
|
0.10
|
2,001
|
0.09
|
1,754
|
-
second interim dividend
|
0.10
|
1,956
|
-
|
-
|
-
third interim dividend
|
0.10
|
1,946
|
-
|
-
|
Total
|
0.53
|
10,492
|
0.27
|
5,330
|
Total coupons on capital securities classified as
equity
|
|
1,101
|
|
1,214
|
Dividends to shareholders
|
|
11,593
|
|
6,544
|
4
|
Earnings
per share
|
Basic and diluted earnings per share
|
||||||
|
2023
|
2022¹
|
||||
|
Profit
|
Number of
shares
|
Per share
|
Profit
|
Number of
shares
|
Per share
|
|
$m
|
(millions)
|
$
|
$m
|
(millions)
|
$
|
Basic2
|
22,432
|
19,478
|
1.15
|
14,346
|
19,849
|
0.72
|
Effect of dilutive potential ordinary shares
|
|
122
|
|
|
137
|
|
Diluted2
|
22,432
|
19,600
|
1.14
|
14,346
|
19,986
|
0.72
|
5
|
Constant
currency balance sheet reconciliation
|
|
At
|
|||
|
31 Dec 2023
|
31 Dec
20221
|
||
|
Reported and
constant
currency
|
Constant currency
|
Currency translation
|
Reported
|
|
$m
|
$m
|
$m
|
$m
|
Loans and advances to customers (net)
|
938,535
|
941,548
|
(17,987)
|
923,561
|
Interests in associates and joint ventures
|
27,344
|
28,783
|
471
|
29,254
|
Total external assets
|
3,038,677
|
3,007,684
|
(58,398)
|
2,949,286
|
Customer accounts
|
1,611,647
|
1,598,495
|
(28,192)
|
1,570,303
|
6
|
Reported and constant currency results1
|
|
Year ended
|
|
|
2023
|
20222
|
|
$m
|
$m
|
Revenue3
|
|
|
Reported
|
66,058
|
50,620
|
Currency translation
|
0
|
(749)
|
Constant currency
|
66,058
|
49,871
|
Change in expected credit losses and other credit impairment
charges
|
|
|
Reported
|
(3,447)
|
(3,584)
|
Currency translation
|
0
|
(46)
|
Constant currency
|
(3,447)
|
(3,630)
|
Operating expenses
|
|
|
Reported
|
(32,070)
|
(32,701)
|
Currency translation
|
0
|
399
|
Constant currency
|
(32,070)
|
(32,302)
|
Share of profit in associates and joint ventures less
impairment
|
|
|
Reported4
|
(193)
|
2,723
|
Currency translation
|
0
|
(121)
|
Constant currency
|
(193)
|
2,602
|
Profit before tax
|
|
|
Reported
|
30,348
|
17,058
|
Currency translation
|
0
|
(517)
|
Constant currency
|
30,348
|
16,541
|
Notable items
|
||
|
Year ended
|
|
|
2023
|
2022
|
|
$m
|
$m
|
Revenue
|
|
|
Disposals,
acquisitions and related costs1,2,3
|
1,298
|
(2,737)
|
Fair
value movements on financial instruments4
|
14
|
(618)
|
Restructuring
and other related costs5
|
-
|
(247)
|
Disposal
losses on Markets Treasury repositioning
|
(977)
|
-
|
Operating expenses
|
|
|
Disposals,
acquisitions and related costs
|
(321)
|
(18)
|
Restructuring
and other related costs6
|
136
|
(2,882)
|
Impairment of interest in associate7
|
(3,000)
|
-
|
Tax
|
|
|
Tax
credit on notable items
|
207
|
1,026
|
Recognition of losses
|
-
|
2,333
|
Uncertain
tax positions
|
427
|
(142)
|
7
|
Contingent
liabilities, contractual commitments and guarantees
|
|
2023
|
2022
|
|
$m
|
$m
|
Guarantees and other contingent liabilities:
|
|
|
- financial guarantees
|
17,009
|
18,783
|
- performance and other guarantees
|
94,277
|
88,240
|
- other contingent liabilities
|
636
|
676
|
At 31 Dec
|
111,922
|
107,699
|
Commitments1:
|
|
|
- documentary credits and short-term trade-related
transactions
|
7,818
|
8,241
|
- forward asset purchases and forward deposits
placed
|
78,535
|
50,852
|
- standby facilities, credit lines and other commitments to
lend
|
810,797
|
768,761
|
At 31 Dec
|
897,150
|
827,854
|
8
|
Legal
proceedings and regulatory matters
|
9
|
Impairment
of interest in associate
|
10
|
Events
after the balance sheet date
|
11
|
Capital
structure
|
Capital ratios
|
||
|
At 31 Dec
|
|
|
2023
|
2022
|
|
%
|
%
|
Transitional basis
|
|
|
Common
equity tier 1 ratio
|
14.8
|
14.2
|
Tier 1 ratio
|
16.9
|
16.6
|
Total capital ratio
|
20.0
|
19.3
|
|
|
|
End point basis
|
|
|
Common equity tier 1 ratio
|
14.8
|
14.2
|
Tier 1 ratio
|
16.9
|
16.6
|
Total capital ratio
|
19.6
|
18.7
|
Total regulatory capital and risk-weighted assets
|
||
|
At 31 Dec
|
|
|
2023
|
2022
|
|
$m
|
$m
|
Transitional basis
|
|
|
Common
equity tier 1 capital
|
126,501
|
119,291
|
Additional tier 1 capital
|
17,662
|
19,776
|
Tier 2 capital
|
27,041
|
23,356
|
Total regulatory capital
|
171,204
|
162,423
|
Risk-weighted assets
|
854,114
|
839,720
|
|
|
|
End point basis
|
|
|
Common equity tier 1 capital
|
126,501
|
119,291
|
Additional tier 1 capital
|
17,662
|
19,776
|
Tier 2 capital
|
22,894
|
18,091
|
Total regulatory capital
|
167,057
|
157,158
|
Risk-weighted assets
|
854,114
|
839,720
|
Leverage ratio1
|
|
|
|
At 31 Dec
|
|
|
2023
|
2022
|
|
$bn
|
$bn
|
Tier 1 capital
|
144.2
|
139.1
|
Total leverage ratio exposure
|
2,574.8
|
2,417.2
|
|
%
|
%
|
Leverage ratio
|
5.6
|
5.8
|
12
|
Statutory
accounts
|
13
|
Dealings
in HSBC Holdings plc listed securities
|
14
|
Interim
dividends for 2024
|
15
|
Earnings releases and interim results
|
16
|
Corporate
governance codes
|
17
|
Board
composition
|
18
|
Cautionary
statement regarding forward-looking statements
|
19
|
Use of
alternative performance measures
|
20
|
Certain
defined terms
|
21
|
For
further information contact:
|
Media Relations
UK -
Gillian James
Telephone:
+44 (0)7584 404 238
Email:
pressoffice@hsbc.com
UK -
Kirsten Smart
Telephone:
+44 (0)7725 733 311
Email:
pressoffice@hsbc.com
|
Investor Relations
UK -
Neil Sankoff
Telephone:
+44 (0) 20 7991 5072
Email:
investorrelations@hsbc.com
Hong
Kong - Yafei Tian
Telephone:
+852 2899 8909
Email:
investorrelations@hsbc.com.hk
|
Hong
Kong - Aman Ullah
Telephone:
+852 3941 1120
Email:
aspmediarelations@hsbc.com.hk
|
|
22
|
Registered
Office and Group Head Office
|
HSBC
Holdings plc
|
|
|
|
|
By:
|
|
Name:
Aileen Taylor
|
|
Title:
Group Company Secretary and Chief Governance Officer
|
|
|
|
Date:
21 February 2024
|