Professional Documents
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7 May 2014
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Table of contents
Highlights ........................................................................
13
Capital .............................................................................
14
15
18
19
10
24
Notes ................................................................................
11
29
11
12
29
4Q13
CET1
CMB
Commercial Banking
CML
CRD IV
CRS
DVA
FTEs
FX
Foreign exchange
GB&M
GMB
GPB
HTS
IAS
Industrial Bank
Legacy Credit
A portfolio of assets comprising Solitaire Funding Limited, securities investment conduits, asset-backed
securities trading and correlation portfolios and derivative transactions entered into with monoline insurers
LGD
LICs
NCOA
Fair value movements on our long-term debt designated at fair value resulting from changes in credit spread
PBT
Ping An
PPI
PRA
Principal RBWM
RBWM excluding the effects of the US run-off portfolio and the disposal of the CRS business in the US
RBWM
RoRWA
Pre-tax RoRWA is calculated using average RWAs on a Basel 2.5 basis for all periods up to and including
31 December 2013 and on a CRD IV end point basis from 1 January 2014
RWAs
Risk-weighted assets
US$m / US$bn
Note to editors
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves
customers worldwide from over 6,300 offices in over 75 countries and territories in Europe, Asia, North and Latin
America, and the Middle East and North Africa. With assets of US$2,758bn at 31 March 2014, HSBC is one of the
worlds largest banking and financial services organisations.
Highlights
Reported profit before tax (PBT) down 20% in the first quarter of 2014 (1Q14) at US$6,785m compared
with US$8,434m in the same period in 2013 (1Q13).
Underlying PBT was down US$968m or 13% in 1Q14 at US$6,621m, compared with US$7,589m in 1Q13,
primarily reflecting the reduced impact of significant items (US$741m net reduction in PBT between 1Q13 and
1Q14, comprising lower revenue items of US$1,076m and lower operating expense items of US$335m).
Earnings per share and dividends per ordinary share for the first quarter of 2014 were US$0.27 and US$0.10,
respectively, compared with US$0.34 and US$0.10 for the equivalent period in 2013.
Return on average ordinary shareholders equity (annualised) was 3.2% lower at 11.7%, compared with 14.9%
for the equivalent period in 2013.
Lower 1Q14 revenue 1Q14 underlying revenue was US$15,709m, down 8% from US$17,135m in the same period
in 2013 mainly reflecting the reduced impact from significant items of US$1,076m. Excluding these items, revenue
was lower by US$350m or 2%, driven by Retail Banking and Wealth Management and Global Banking and Markets,
partly offset by growth in Commercial Banking.
Further progress made on executing against strategy with market share gains in several product categories in
Global Banking and Markets including equity and debt capital markets, advisory and lending. We also achieved
positive net new money in targeted areas of growth in Global Private Banking.
Lower 1Q14 underlying operating expenses 1Q14 operating expenses were US$8,843m, down 2% from
US$9,014m in the same period in 2013. Excluding significant items, operating expenses increased by 2% in part
reflecting increased investment in Global Standards, Risk and Compliance, and inflation, partly offset by cost saving
initiatives.
Capital at 1Q14, the CRD IV transitional basis CET1 capital ratio was 10.7%, down from 10.8% at 31 December
2013, and the end point CET1 capital ratio was 10.8%, down from 10.9%. This largely reflected increased RWAs
resulting from regulatory change.
8,434
7,589
6,211
50.8%
3.1%
At
31 March
2014
At
31 December
2013
10.7%
10.8%
10.8%
10.9%
Basel 2.5
Core tier 1 ratio ....................................................................................................
Loans and advances to customers ............................................................................
Customer accounts ...................................................................................................
CRD IV risk-weighted assets ...................................................................................
Change
%
(20)
(13)
(18)
(10)
(26)
Change from
31 December
2013 to
31 March 2014
13.6%
US$m
US$m
US$m
1,009,830
1,366,034
1,257,672
992,089
1,361,297
1,214,939
17,741
4,737
42,733
1 All on a reported basis, unless otherwise stated. Underlying basis eliminates effects of foreign currency translation differences, acquisitions, disposals and
changes in ownership levels of subsidiaries, associates, joint ventures and businesses, and changes in fair value (FV) due to movements in credit spread on
own long-term debt issued by the Group and designated at fair value. A reconciliation of reported results to underlying results is shown on page 7.
2 For details of the implementation of CRD IV, see page 6.
15,884
(798)
(8,852)
6,785
18,416
(1,171)
(9,347)
8,434
6,785
(148)
(18)
2
8,434
243
(1,089)
(104)
99
73
(67)
6,621
7,589
Underlying
Revenue1 ...............................................................................................................................................
Loan impairment charges and other credit risk provisions ............................................................................
Operating expenses ...............................................................................................................................
Profit before tax ....................................................................................................................................
15,709
(796)
(8,843)
6,621
17,135
(1,072)
(9,014)
7,589
31
(142)
(30)
553
(279)
442
472
84
(199)
(138)
(141)
935
83
164
83
40
113
75
119
100
123
458
1 Net operating income before loan impairment charges, also referred to as revenue.
2 The gain of US$553m represents the net impact of the disposal of available-for-sale investments in Ping An offset by adverse changes in
fair value of the contingent forward sale contract to the point of delivery of the shares.
3 In 1Q13, the private banking operations of HSBC Private Bank Holdings (Suisse) SA in Monaco were classified as held for sale. At this
time a loss on reclassification to held for sale was recognised following a write down in the value of goodwill allocated to the operation.
Following a strategic review we decided to retain the operation and the assets and liabilities of the business were reclassified to the
relevant balance sheet categories; however, the loss on classification was not reversed.
Geographical regions
Underlying performance
Underlying performance:
Implementation of CRD IV
On 1 January 2014, CRD IV came into force and
capital and RWAs at 31 March 2014 are calculated
and presented on this basis. Prior to this date, capital
and RWAs were calculated and presented on a Basel
2.5 basis. In addition, capital and RWAs at
31 December 2013 were also estimated based on the
Groups interpretation of final CRD IV legislation
and final rules issued by the PRA, details of which
can be found in the basis of preparation on page 324
of the Annual Report and Accounts 2013.
31 Mar
2014
US$m
31 Mar
2013
US$m
15,884
18,416
(294)
243
(1,230)
(14)
15,195
(107)
652
(1,120)
15,709
17,135
(8)
14,620
31 Mar
2014
US$m
31 Mar
2013
US$m
31 Dec
2013
US$m
Change
%
(148)
(27)
Change
%
31 Dec
2013
US$m
Change
%
(798)
(796)
Quarter ended
Change
%
(1,171)
75
24
32
(1,140)
29
6
30
(1,072)
26
(1,105)
28
(8,852)
9
31 Mar
2013
US$m
Quarter ended
Change
%
31 Dec
2013
US$m
Change
%
(9,347)
141
192
(10,573)
44
36
16
(10,493)
16
(8,843)
(9,014)
56.3%
52.6%
71.8%
6,785
6,621
(148)
(16)
31 Mar
2013
US$m
Quarter ended
Change
%
31 Dec
2013
US$m
Change
%
8,434
(67)
243
(1,021)
(20)
3,964
(35)
652
(1,081)
71
7,589
(13)
3,500
89
1 Currency translation adjustment is the effect of translating the results of subsidiaries and associates for the previous period at the
average rates of exchange applicable in the current period.
10
Notes
Income statement comparisons, unless stated otherwise, are between the quarter ended 31 March 2014 and the quarter ended
31 March 2013. Balance sheet comparisons, unless otherwise stated, are between balances at 31 March 2014 and the corresponding
balances at 31 December 2013.
The financial information on which this Interim Management Statement is based, and the data set out in the appendix to this
statement, are unaudited and have been prepared in accordance with HSBCs significant accounting policies as described in the
Annual Report and Accounts 2013, with the exception of the adoption of the following new or revised standards: On 1 January 2014
HSBC adopted amendments to IAS 32 Offsetting Financial assets and Financial Liabilities which clarified the requirements for
offsetting financial instruments and addressed inconsistencies in current market practice when applying the offsetting criteria in
IAS 32 Financial Instruments: Presentation. The amendments have been applied retrospectively and have not had a material effect
on HSBCs financial statements.
The Board has adopted a policy of paying quarterly interim dividends on the ordinary shares. Under this policy, it is intended to have
a pattern of three equal interim dividends with a variable fourth interim dividend. Dividends are declared in US dollars and, at the
election of the shareholder, paid in cash in one of, or in a combination of, US dollars, sterling and Hong Kong dollars or, subject to
the Boards determination that a scrip dividend is to be offered in respect of that dividend, may be satisfied in whole or in part by the
issue of new shares in lieu of a cash dividend.
Interim Report 2014 announcement date ..................................................................................................................
Shares quoted ex-dividend in London, Hong Kong, Paris and Bermuda ..................................................................
ADSs quoted ex-dividend in New York ...................................................................................................................
Dividend record date in Hong Kong .........................................................................................................................
Dividend record date in London, New York, Paris and Bermuda .............................................................................
Dividend payment date .............................................................................................................................................
The Interim Management Statement contains certain forwardlooking statements with respect to HSBCs financial condition,
results of operations, capital position and business.
factors specific to HSBC, including discretionary riskweighted asset growth and our success in adequately
identifying the risks we face, such as the incidence of
loan losses or delinquency, and managing those risks
(through account management, hedging and other
techniques). Effective risk management depends on,
among other things, our ability through stress testing and
other techniques to prepare for events that cannot be
captured by the statistical models it uses; and our success
in addressing operational, legal and regulatory, and
litigation challenges, notably compliance with the
Deferred Prosecution Agreements with US authorities.
4 August 2014
20 August 2014
20 August 2014
21 August 2014
22 August 2014
9 October 2014
11
31 Mar
2014
US$m
31 Dec
2013
US$m
8,721
4,046
2,280
9,006
3,993
1,045
Quarter ended
30 Sep
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
8,714
4,037
1,283
8,851
4,159
2,519
8,968
4,245
3,843
203
(275)
466
38
305
793
981
(331)
553
508
184
24
3,136
328
518
136
44
2,665
1,213
1,447
20
171
3,049
473
(293)
246
73
3,054
(55)
(904)
1,610
34
3,172
1,001
19,227
18,620
19,194
18,554
21,969
(3,343)
(3,425)
(4,116)
(2,598)
(3,553)
15,884
15,195
15,078
15,956
18,416
(798)
(1,457)
(1,140)
(1,593)
(1,945)
(1,171)
15,086
14,055
13,485
14,011
17,245
(8,852)
(10,573)
(9,584)
(9,052)
(9,347)
6,234
3,482
3,901
4,959
7,898
551
482
629
678
536
6,785
3,964
(1,275)
5,510
12
4,530
5,637
8,434
(1,045)
(1,401)
(1,324)
2,969
3,485
4,236
7,110
5,211
299
2,720
249
3,200
285
3,931
305
6,353
757
US$
US$
US$
US$
US$
0.27
0.27
0.10
0.14
0.14
0.19
0.16
0.16
0.10
0.20
0.20
0.10
0.34
0.33
0.10
11.7
2.3
55.7
5.9
1.4
69.6
7.2
1.6
63.6
9.1
2.1
56.7
14.9
3.1
50.8
(995)
At
31 December
2013
US$m
At
30 June
2013
US$m
165,838
355,193
39,874
270,353
205,332
129,530
1,009,830
418,178
3,936
160,383
166,599
303,192
38,430
282,265
179,690
120,046
992,089
425,925
4,050
159,032
148,285
432,601
35,318
299,213
88,400
127,810
938,294
404,214
20,377
150,804
2,758,447
2,671,318
2,645,316
218,379
89,492
1,366,034
241,455
87,767
260,991
102,395
76,055
2,003
121,428
164,220
86,507
1,361,297
207,025
89,084
274,284
104,080
74,181
2,804
117,377
66,591
92,709
1,266,905
342,432
84,254
293,669
109,389
69,771
19,519
117,716
2,565,999
2,480,859
2,462,955
Equity
Total shareholders equity ........................................................................................
Non-controlling interests .........................................................................................
183,945
8,503
181,871
8,588
174,070
8,291
192,448
190,459
182,361
2,758,447
2,671,318
2,645,316
73.9%
72.9%
74.1%
ASSETS
Cash and balances at central banks ..........................................................................
Trading assets ..........................................................................................................
Financial assets designated at fair value ..................................................................
Derivatives ...............................................................................................................
Reverse repurchase agreements non-trading .........................................................
Loans and advances to banks ...................................................................................
Loans and advances to customers ............................................................................
Financial investments ..............................................................................................
Assets held for sale ..................................................................................................
Other assets ..............................................................................................................
13
Capital
Capital structure
CRD IV year 1 transition
At
Estimated at
31 March
31 December
2014
2013
US$m
US$m
Basel 2.5
At
31 December
2013
US$m
At
30 June
2013
US$m
183,945
3,564
(15,839)
(36,932)
181,871
3,644
(18,313)
(35,969)
181,871
4,955
(7,942)
(29,833)
174,070
4,754
(8,076)
(29,858)
134,738
131,233
149,051
140,890
14,552
(165)
149,125
39,356
(248)
14,573
(165)
145,641
35,786
(248)
16,110
(7,006)
15,790
(6,538)
158,155
150,142
47,812
(11,958)
45,009
(11,701)
188,233
181,179
194,009
183,450
1,257,672
1,214,939
1,092,653
1,104,764
10.7
10.8
11.9
15.0
12.0
14.9
13.6
14.5
17.8
12.7
13.6
16.6
Capital ratios
Common equity tier 1 ratio .........................................................
Core tier 1 ratio ...........................................................................
Tier 1 ratio ..................................................................................
Total capital ratio ........................................................................
1 Includes externally verified profits for the period ended 31 March 2014.
Reconciliation of regulatory capital from Year 1 transitional basis to an estimated CRD IV end point basis
At
31 March
2014
US$m
Estimated at
31 December
2013
US$m
134,738
1,273
131,233
1,281
136,011
132,514
14,387
14,408
(1,160)
(1,955)
(10,727)
(1,160)
(1,955)
(10,727)
(335)
165
(366)
165
375
365
39,108
35,538
(2,218)
(21,513)
(2,218)
(21,513)
(240)
288
(165)
(240)
345
(165)
14
15,260
11,747
Capital and RWA movements by major driver CRD IV end point basis
Common
equity
tier 1 capital
US$bn
RWAs
US$bn
132.5
5.1
(1.7)
1.1
(0.2)
(0.8)
1,214.9
34.4
7.6
0.8
136.0
1,257.7
1 In respect of 2014. This includes dividends declared on ordinary shares, quarterly dividends on preference shares and coupons on
capital securities, classified as equity.
2 In respect of 2013.
Risk-weighted assets
RWAs by risk type
CRD IV transition and end point
At
At
31 Mar 2014
31 Dec 2013
US$bn
US$bn
Basel 2.5
At
31 Dec 2013
US$bn
965.9
107.2
66.2
118.4
936.5
95.8
63.4
119.2
864.3
45.8
63.4
119.2
1,257.7
1,214.9
1,092.7
CRD IV
transition and
end point
31 Mar 2014
US$bn
Basel 2.5 at
31 Dec 2013
US$bn
226.6
414.6
553.5
23.2
39.8
233.5
391.7
422.3
21.7
23.5
1,257.7
1,092.7
CRD IV
transition and
end point
31 Mar 2014
US$bn
Basel 2.5 at
31 Dec 2013
US$bn
Total ....................................................................................................................................................
1,257.7
1,092.7
Europe ..................................................................................................................................................
Asia ......................................................................................................................................................
Middle East and North Africa ...............................................................................................................
North America ......................................................................................................................................
Latin America .......................................................................................................................................
401.1
475.5
64.3
243.3
94.6
300.1
430.7
62.5
223.8
89.5
1 RWAs are non-additive across geographical regions due to market risk diversification effects within the Group.
15
Europe
US$bn
Asia
US$bn
MENA
US$bn
North
America
US$bn
Latin
America
US$bn
Total
US$bn
220.8
10.1
46.2
208.4
167.1
13.1
4.1
39.7
158.8
29.4
11.1
57.1
612.2
14.2
339.5
277.1
375.5
56.9
188.2
68.2
965.9
157.1
9.8
44.5
182.9
165.9
11.2
3.8
40.0
161.5
22.7
8.5
56.4
521.2
13.6
329.5
211.4
348.8
55.0
184.2
64.9
864.3
Retail
Banking and
Wealth
Management
US$bn
Commercial
Banking
US$bn
Global
Banking
and
Markets
US$bn
Global
Private
Banking
US$bn
Other
US$bn
Total
US$bn
125.4
63.2
197.2
6.5
178.1
257.2
6.4
73.9
11.6
0.1
6.8
20.8
1.2
17.5
612.2
14.2
339.5
188.6
381.8
337.5
18.5
39.5
965.9
131.0
63.7
183.2
6.3
169.3
192.8
5.8
71.6
10.4
0.1
6.9
3.8
1.4
18.0
521.2
13.6
329.5
194.7
358.8
270.2
17.4
23.2
864.3
RWA movement by geographical region by key driver credit risk IRB only
Europe
US$bn
Asia
US$bn
MENA
US$bn
North
America
US$bn
Latin
America
US$bn
Total
US$bn
166.9
182.9
15.0
161.5
8.5
534.8
2.3
(0.2)
3.1
(1.5)
14.9
14.9
0.6
2.5
2.3
0.3
0.3
(0.2)
0.5
(0.9)
0.7
(1.7)
(4.9)
(4.9)
(0.5)
(0.1)
0.9
0.3
1.5
(0.3)
7.0
(0.1)
10.3
10.3
45.4
(2.2)
2.2
37.0
8.4
19.8
(5.5)
6.7
5.7
12.9
1.9
0.2
0.4
1.3
4.1
(2.4)
0.7
4.9
0.9
2.0
0.1
0.2
1.7
73.2
(10.1)
9.9
48.2
25.2
64.0
25.5
2.2
(2.7)
2.6
91.6
230.9
208.4
17.2
11.1
626.4
16
158.8
Europe
US$bn
Asia
US$bn
MENA
US$bn
North
America
US$bn
Latin
America
US$bn
Total
US$bn
150.7
162.3
12.6
187.1
11.2
523.9
(6.5)
(1.4)
3.9
(0.4)
(0.4)
4.7
0.7
4.7
2.3
2.4
6.4
6.4
(0.3)
0.9
1.9
(0.6)
(4.4)
(2.8)
(0.2)
(0.2)
0.3
11.4
2.5
151.0
173.7
15.1
0.1
(0.3)
0.1
11.0
0.8
10.2
(7.7)
(1.4)
4.8
(0.5)
(0.2)
(0.2)
3.0
190.1
22.1
3.1
19.0
(0.1)
17.1
11.1
541.0
RWA movement by global businesses by key driver credit risk IRB only
Principal
RBWM
US$bn
US
run-off
portfolio
US$bn
Total
RBWM
US$bn
CMB
US$bn
GB&M
US$bn
GPB
US$bn
Other
US$bn
Total
US$bn
131.0
189.5
198.5
10.6
5.2
534.8
gggg
1.5
58.4
72.6
(0.1)
1.1
(1.1)
0.3
(1.3)
(2.0)
(4.9)
(0.1)
(0.2)
(3.1)
(4.6)
0.4
4.3
2.1
9.2
1.2
(0.3)
3.1
0.7
5.4
0.3
(4.9)
(4.6)
9.2
5.4
0.3
2.4
(2.6)
2.4
(2.6)
(1.8)
(5.6)
55.0
(1.9)
1.1
16.5
73.2
(10.1)
2.7
(0.7)
6.5
48.6
0.5
0.2
0.2
0.1
9.9
48.2
2.6
(8.2)
61.0
64.4
(0.3)
7.0
(0.1)
10.3
10.3
5.0
5.0
1.8
1.8
0.4
16.2
25.2
(5.6)
14.2
65.1
1.1
16.8
91.6
203.7
263.6
11.7
22.0
626.4
2014
US$bn
52.2
2013
US$bn
US$bn
52.2
44.5
125.4
(0.2)
(0.1)
0.3
0.3
2014
US$bn
42.2
2013
US$bn
US$bn
42.2
45.7
3.4
(0.4)
2.2
7.5
(0.6)
8.1
3.4
(0.4)
(0.4)
(0.5)
2.2
7.5
(0.4)
(0.6)
(0.4)
8.1
40.9
40.9
53.6
53.6
(1.3)
95.8
95.8
44.4
17
(0.5)
0.5
0.5
52.2
(0.5)
(6.3)
0.5
2.3
0.5
2.3
(4.0)
52.2
40.5
2,758
75
(498)
(270)
(228)
2,671
93
(482)
(282)
(200)
387
229
158
386
239
147
400
388
(30)
(28)
3,092
3,028
136
133
4.4%
4.4%
Tier 1 capital under CRD IV (including instruments which will be ineligible for inclusion after
Basel III transitional period has fully elapsed) ..................................................................................
151
149
Estimated leverage ratio (including instruments which will be ineligible for inclusion after
Basel III transitional period has fully elapsed) .............................................................................
4.9%
4.9%
By global business
Retail Banking and Wealth Management ..................................
Commercial Banking ................................................................
Global Banking and Markets ....................................................
Global Private Banking .............................................................
Other .........................................................................................
By geographical region
Europe ......................................................................................
Asia ...........................................................................................
Middle East and North Africa ...................................................
North America ..........................................................................
Latin America ...........................................................................
18
31 Dec
2013
US$m
Quarter ended
30 Sep
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
1,712
2,420
2,871
201
(419)
1,797
2,426
1,866
101
(2,226)
1,585
1,882
1,852
(16)
(773)
1,700
1,946
2,135
233
(377)
1,567
2,187
3,588
(125)
1,217
6,785
3,964
4,530
5,637
8,434
1,760
3,764
502
449
310
(898)
2,991
406
179
1,286
(45)
3,600
379
376
220
973
3,748
385
526
5
1,795
5,514
524
140
461
6,785
3,964
4,530
5,637
8,434
31 Mar
2014
US$m
31 Dec
2013
US$m
6,244
6,810
(604)
(686)
Quarter ended
30 Sep
2013
US$m
6,641
(773)
30 Jun
2013
US$m
31 Mar
2013
US$m
6,576
6,713
(878)
(890)
5,640
6,124
5,868
5,698
5,823
(4,016)
(4,421)
(4,376)
(4,112)
(4,339)
1,624
1,703
1,492
1,586
1,484
88
94
93
114
83
1,712
1,797
1,585
1,700
1,567
1,762
(50)
1,865
(68)
1,483
102
1,614
86
1,887
(320)
1 31 March 2013 includes the loss on sale and results of the US Insurance business.
1,712
Quarter ended
30 Sep
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
1,797
2
(313)
1,585
11
(4)
1,700
49
(14)
1,567
(8)
88
1,707
1,486
1,592
1,735
1,647
64.3
3.0
64.9
3.0
65.9
2.6
62.5
2.7
64.6
2.4
30 Jun
2013
US$m
31 Mar
2013
US$m
(5)
31 Dec
2013
US$m
1,762
1,757
(5)
19
31 Dec
2013
US$m
Quarter ended
30 Sep
2013
US$m
1,865
2
(313)
1,483
11
(4)
1,614
49
(14)
1,887
(8)
(32)
1,554
1,490
1,649
1,847
Commercial Banking
31 Mar
2014
US$m
31 Dec
2013
US$m
4,010
4,517
(197)
(543)
Quarter ended
30 Sep
2013
US$m
3,985
(681)
30 Jun
2013
US$m
31 Mar
2013
US$m
3,930
3,933
(802)
(358)
3,813
3,974
3,304
3,128
3,575
(1,739)
(1,878)
(1,834)
(1,611)
(1,726)
2,074
2,096
1,470
1,517
1,849
346
330
412
429
338
2,420
2,426
1,882
1,946
2,187
31 Mar
2014
US$m
31 Dec
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
2,420
Quarter ended
30 Sep
2013
US$m
2,426
(5)
(486)
1,882
(11)
1,946
25
(21)
2,187
(13)
(21)
2,413
1,935
1,871
1,950
2,153
43.4
2.4
41.6
2.4
46.0
1.9
41.0
2.1
43.9
2.3
31 Mar
2014
US$m
31 Dec
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
686
1,494
713
1,541
757
1,554
746
1,520
713
1,488
1,322
508
1,363
900
1,345
329
1,304
360
1,275
457
4,010
4,517
3,985
3,930
3,933
(7)
1 Global Trade and Receivables Finance and Payments and Cash Management include revenue attributable to foreign exchange
products.
2 Net operating income before loan impairment charges and other credit risk provisions, also referred to as revenue.
20
31 Mar
2014
US$m
31 Dec
2013
US$m
5,160
4,294
(3)
85
Quarter ended
30 Sep
2013
US$m
4,220
(118)
30 Jun
2013
US$m
31 Mar
2013
US$m
4,846
5,816
(219)
45
5,157
4,379
4,102
4,627
5,861
(2,397)
(2,585)
(2,368)
(2,619)
(2,388)
2,760
1,794
1,734
2,008
3,473
111
72
118
127
115
2,871
1,866
1,852
2,135
3,588
31 Mar
2014
US$m
31 Dec
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
2,871
Quarter ended
30 Sep
2013
US$m
1,866
(32)
(324)
1,852
(25)
(69)
2,135
(40)
10
3,588
(26)
(19)
2,866
1,510
1,758
2,105
3,543
46.5
2.4
60.2
1.8
56.1
1.7
54.0
2.0
41.1
3.6
31 Mar
2014
US$m
31 Dec
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
Markets .....................................................................................
Credit ....................................................................................
Rates .....................................................................................
Foreign Exchange .................................................................
Equities .................................................................................
2,225
347
631
803
444
1,290
154
40
693
403
1,839
183
377
962
317
2,231
305
729
871
326
997
444
413
187
750
94
31
19
977
472
407
181
719
165
(195)
278
988
439
442
191
704
172
(21)
92
1,054
423
405
180
976
33
472
42
5,160
4,294
4,220
4,846
5,816
By geographical region
Europe ........................................................................................
Asia ............................................................................................
Middle East and North Africa .....................................................
North America ............................................................................
Latin America .............................................................................
Intra-HSBC items .......................................................................
1,992
1,883
253
678
399
(45)
1,312
1,640
202
541
654
(55)
1,432
1,640
216
606
369
(43)
1,765
1,765
197
746
390
(17)
2,525
1,943
212
774
402
(40)
5,160
4,294
4,220
4,846
5,816
(5)
1 The management view of income reflects the management structure of GB&M which has been in place since 12 August 2013.
Comparatives have been re-presented for this change.
2 Figures on a reported basis, unless otherwise stated.
3 Net operating income before loan impairment charges and other credit risk provisions, also referred to as revenue.
21
31 Mar
2014
US$m
31 Dec
2013
US$m
633
630
Quarter ended
30 Sep
2013
US$m
658
30 Jun
2013
US$m
31 Mar
2013
US$m
707
444
638
634
637
700
437
(441)
(537)
(657)
(469)
(566)
197
97
(20)
231
(129)
201
101
(16)
233
31 Dec
2013
US$m
Quarter ended
30 Sep
2013
US$m
30 Jun
2013
US$m
101
1
(1)
(16)
2
233
4
(125)
1
101
(14)
237
(124)
(21)
(7)
(7)
4
(125)
31 Mar
2013
US$m
201
201
%
69.7
3.6
85.2
1.8
99.8
(0.3)
66.3
4.6
4.3
31 Mar
2014
US$bn
31 Dec
2013
US$bn
Quarter ended
30 Sep
2013
US$bn
30 Jun
2013
US$bn
31 Mar
2013
US$bn
Europe ........................................................................................
Asia ............................................................................................
North America ............................................................................
Latin America .............................................................................
195
109
65
12
197
108
65
12
205
106
65
14
203
104
64
15
214
106
67
16
Total ...........................................................................................
381
382
390
386
403
31 Mar
2014
US$bn
31 Dec
2013
US$bn
30 Jun
2013
US$bn
31 Mar
2013
US$bn
%
127.5
(2.3)
Client assets1
Quarter ended
30 Sep
2013
US$bn
382
(2)
3
(2)
390
(11)
5
(2)
386
(5)
7
2
403
(9)
(7)
(1)
398
(1)
7
(1)
381
382
390
386
403
1 Client assets are translated at the rates of exchange applicable for their respective period-ends, with the effects of currency translation
reported separately. The main components of client assets are funds under management, which are not reported on the Groups balance
sheet, and customer deposits, which are reported on the Groups balance sheet.
22
Other1
31 Mar
2014
US$m
31 Dec
2013
US$m
1,217
492
148
(652)
Quarter ended
30 Sep
2013
US$m
1,009
(575)
30 Jun
2013
US$m
31 Mar
2013
US$m
1,329
2,821
224
(243)
(39)
39
1,218
492
1,009
1,290
2,860
(1,639)
(2,700)
(1,784)
(1,673)
(1,639)
(421)
(2,208)
(775)
(383)
(419)
(18)
(2,226)
2
(773)
6
(377)
1,221
(4)
1,217
(419)
31 Dec
2013
US$m
Quarter ended
30 Sep
2013
US$m
30 Jun
2013
US$m
(148)
1
(2,226)
(1)
652
43
(773)
(3)
575
14
(377)
(22)
(224)
(566)
(1,532)
(187)
(623)
31 Mar
2013
US$m
1,217
(21)
243
(1,069)
370
1 The main items reported under Other are the results of HSBCs holding company and financing operations, which include net interest
earned on free capital held centrally, operating costs incurred by the head office operations in providing stewardship and central
management services to HSBC, along with the costs incurred by the Group Service Centres and Shared Service Organisations and
associated recoveries. The results also include fines and penalties as part of the settlement of investigations into past inadequate
compliance with anti-money laundering and sanctions laws, the UK bank levy and unallocated investment activities, centrally held
investment companies, gains arising from the dilution of interests in associates and joint ventures and certain property transactions. In
addition, Other includes part of the movement in the fair value of long-term debt designated at fair value (the remainder of the
Groups movement on own debt is included in GB&M).
23
31 Mar
2014
US$m
31 Dec
2013
US$m
5,852
4,628
(116)
(166)
Quarter ended
30 Sep
2013
US$m
4,865
(518)
30 Jun
2013
US$m
31 Mar
2013
US$m
5,506
5,968
(656)
(190)
5,736
4,462
4,347
4,850
5,778
(3,978)
(5,361)
(4,390)
(3,878)
(3,984)
1,758
(899)
(43)
1,760
1
(898)
972
1,794
(2)
(45)
973
1,795
Quarter ended
30 Sep
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
1,760
1,611
(149)
%
68.0
2.0
31 Dec
2013
US$m
(898)
19
537
(45)
38
482
(40)
973
97
(157)
20
1,795
101
154
2
(342)
435
933
2,052
90.2
(0.1)
70.4
1.3
66.8
2.4
Quarter ended
30 Sep
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
%
115.8
(1.2)
1,358
1,206
(152)
31 Dec
2013
US$m
(1,266)
17
545
(704)
206
39
464
(40)
560
92
(147)
20
1,660
96
148
2
669
525
1,906
30 Jun
2013
US$m
31 Mar
2013
US$m
1,760
24
31 Dec
2013
US$m
Quarter ended
30 Sep
2013
US$m
442
640
37
55
(2,072)
355
362
196
(106)
(852)
556
541
232
128
(484)
400
545
1,336
(242)
(244)
(898)
(45)
973
1,795
Asia
31 Mar
2014
US$m
31 Dec
2013
US$m
5,873
5,416
(104)
(157)
Quarter ended
30 Sep
2013
US$m
5,725
(143)
30 Jun
2013
US$m
31 Mar
2013
US$m
5,705
7,586
(118)
(80)
5,769
5,259
5,582
5,587
7,506
(2,428)
(2,617)
(2,507)
(2,401)
(2,411)
3,341
2,642
3,075
3,186
5,095
423
349
525
562
419
3,764
2,991
3,600
3,748
5,514
31 Mar
2014
US$m
31 Dec
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
3,764
2,991
(11)
35
3,600
(5)
2
4
3,748
(49)
(3)
4
5,514
(68)
2
(1,129)
3,764
3,015
3,601
3,700
4,319
41.3
3.4
48.3
2.8
43.8
3.4
42.1
3.7
31.8
5.5
Quarter ended
30 Sep
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
Quarter ended
30 Sep
2013
US$m
31 Dec
2013
US$m
2,107
1,812
(1)
2,072
(3)
2,047
2
2,158
1
2,107
1,811
2,069
2,049
2,159
31 Mar
2014
US$m
31 Dec
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
1,156
1,154
1,295
70
89
1,042
979
1,000
33
(63)
1,079
1,169
1,069
74
209
1,059
1,196
1,230
85
178
1,239
1,114
1,376
92
1,693
3,764
2,991
3,600
3,748
5,514
25
31 Mar
2014
US$m
31 Dec
2013
US$m
652
607
22
48
Quarter ended
30 Sep
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
643
621
632
(53)
(15)
62
674
655
590
606
694
(295)
(365)
(308)
(335)
(281)
379
290
282
271
413
123
116
97
114
111
502
406
379
385
524
31 Mar
2014
US$m
31 Dec
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
502
406
(1)
1
379
385
1
(2)
524
(4)
3
507
406
381
384
523
45.2
3.2
60.1
2.5
47.9
2.3
53.9
2.4
44.5
3.3
31 Mar
2014
US$m
31 Dec
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
Quarter ended
30 Sep
2013
US$m
82
181
244
4
(9)
19
164
239
5
(21)
59
130
219
4
(33)
90
159
155
2
(21)
90
192
256
5
(19)
502
406
379
385
524
26
North America
31 Mar
2014
US$m
31 Dec
2013
US$m
2,061
1,979
(173)
(238)
Quarter ended
30 Sep
2013
US$m
2,192
(263)
30 Jun
2013
US$m
31 Mar
2013
US$m
2,336
2,296
(249)
(447)
1,888
1,741
1,929
2,087
1,849
(1,442)
(1,578)
(1,562)
(1,562)
(1,714)
446
163
367
525
135
16
449
179
376
526
140
31 Mar
2014
US$m
31 Dec
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
449
179
(12)
114
376
(14)
89
(17)
526
(13)
(62)
140
(24)
84
120
445
281
434
451
320
70.0
0.8
79.7
0.3
71.3
0.6
66.9
0.9
74.7
0.2
31 Mar
2014
US$m
31 Dec
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
(4)
Quarter ended
30 Sep
2013
US$m
(14)
36
(50)
233
262
28
(60)
(95)
(27)
(68)
244
85
11
(66)
58
(44)
102
225
150
14
(71)
110
24
86
131
313
16
(44)
(280)
40
(320)
186
381
16
(163)
449
179
376
526
140
1 31 March 2013 includes the loss on sale and results of the US Insurance business.
27
Latin America
31 Mar
2014
US$m
31 Dec
2013
US$m
2,130
3,314
(427)
(627)
Quarter ended
30 Sep
2013
US$m
2,296
(616)
30 Jun
2013
US$m
31 Mar
2013
US$m
2,453
2,505
(907)
(516)
1,703
2,687
1,680
1,546
1,989
(1,393)
(1,401)
(1,460)
(1,541)
(1,528)
310
1,286
220
461
310
1,286
220
461
30 Jun
2013
US$m
31 Mar
2013
US$m
310
294
1,286
(30)
(1,116)
Quarter ended
30 Sep
2013
US$m
220
(34)
(17)
5
(20)
(49)
461
(72)
(14)
140
169
(64)
375
65.4
1.4
42.3
5.4
63.6
0.9
62.8
61.0
1.9
31 Mar
2014
US$m
31 Dec
2013
US$m
30 Jun
2013
US$m
31 Mar
2013
US$m
(16)
31 Dec
2013
US$m
(27)
106
246
1
(16)
310
28
389
399
505
(3)
(4)
1,286
Quarter ended
30 Sep
2013
US$m
34
(4)
218
(2)
(26)
220
(115)
(81)
205
2
(6)
5
118
150
239
4
(50)
461
At 31 March 2014
Personal ...............................................
First lien residential mortgages ........
Other personal .................................
Europe
US$m
Asia
US$m
Middle
East and
North
Africa
US$m
192,554
141,385
51,169
126,018
93,175
32,843
6,475
2,521
3,954
69,746
58,554
11,192
15,007
4,244
10,763
409,800
299,879
109,921
40.0
29.3
10.7
245,330
60,191
76,770
30,420
8,458
2,591
66,900
211,809
32,728
79,031
34,830
28,625
1,065
35,530
19,296
2,506
9,255
559
1,391
1,449
4,136
52,107
12,547
12,430
6,157
8,370
569
12,034
31,285
13,012
8,306
2,503
327
1,018
6,119
559,827
120,984
185,792
74,469
47,171
6,692
124,719
54.7
11.8
18.1
7.3
4.6
0.7
12.2
Financial ..............................................
Non-bank financial institutions ........
Settlement accounts .........................
29,862
27,620
2,242
10,032
9,643
389
2,580
2,579
1
7,854
7,854
1,540
1,359
181
51,868
49,055
2,813
5.1
4.8
0.3
2,472
139
2,611
0.2
470,218
347,859
28,351
129,846
47,832
1,024,106
100.0
At 31 December 2013
Personal ...............................................
First lien residential mortgages ........
Other personal .................................
192,107
140,474
51,633
124,529
92,047
32,482
6,484
2,451
4,033
72,690
60,955
11,735
14,918
3,948
10,970
410,728
299,875
110,853
40.8
29.8
11.0
239,116
55,920
77,113
31,326
7,308
3,340
64,109
203,394
30,758
79,368
34,560
27,147
1,021
30,540
19,760
3,180
8,629
639
1,333
1,443
4,536
50,306
11,778
11,676
5,900
8,716
498
11,738
30,188
12,214
8,295
2,421
328
974
5,956
542,764
113,850
185,081
74,846
44,832
7,276
116,879
53.8
11.3
18.4
7.4
4.4
0.7
11.6
Financial ..............................................
Non-bank financial institutions ........
Settlement accounts .........................
.........................................................
Asset-backed securities reclassified .....
27,872
26,315
1,557
10,188
9,858
330
2,532
2,532
9,056
9,056
1,376
1,277
99
51,024
49,038
1,986
5.1
4.9
0.2
North
America
US$m
Gross
loans and
Latin advances to
America
customers
US$m
US$m
Gross
loans by
industry
sector as a
% of total
gross loans
%
2,578
138
2,716
0.3
461,673
338,111
28,776
132,190
46,482
1,007,232
100.0
At 30 June 2013
Personal ...............................................
First lien residential mortgages ........
Other personal .................................
173,270
127,434
45,836
120,822
90,080
30,742
6,377
2,296
4,081
78,959
66,277
12,682
15,081
3,561
11,520
394,509
289,648
104,861
41.4
30.4
11.0
211,128
46,202
66,317
30,764
7,403
1,834
58,608
198,075
30,244
77,798
33,416
23,715
3,220
29,682
21,416
3,409
9,458
898
1,526
1,664
4,461
48,327
9,609
13,082
6,064
7,725
348
11,499
30,451
12,128
7,771
2,328
285
1,431
6,508
509,397
101,592
174,426
73,470
40,654
8,497
110,758
53.4
10.6
18.3
7.7
4.3
0.9
11.6
Financial ..............................................
Non-bank financial institutions ........
Settlement accounts .........................
26,896
25,362
1,534
8,931
8,171
760
1,822
1,821
1
7,470
7,470
1,364
1,273
91
46,483
44,097
2,386
4.8
4.6
0.2
3,319
147
3,466
0.4
414,613
327,828
29,615
134,903
46,896
953,855
100.0
1 The table previously included non-trading reverse repurchase agreement, which had been presented as part of Loans and advances to
customers. Consistent with the balance sheet presentation, non-trading reverse repurchase agreements are now reported separately
and have been excluded from gross loans and advances. Comparative data have been re-presented to reflect this change. Non-trading
reverse repurchase agreements with customers at 31 March 2014 were US$101,396m (31 December 2013: US$88,215m; 30 June 2013:
US$31,088m), the majority of which were transacted with non-bank financial institutions; 31 March 2014: US$100,221m (31 December
2013: US$87,157m; 30 June 2013: US$30,680m). These are now included within Reverse repurchase agreements non-trading along
with non-trading reverse repurchase agreements with banks.
29