4th Aug 2008 18:17
Consolidated income statement for the half-year to 30 June 2008
|
Half-year to |
||||||
|
30 June 2008 |
30 June 2007 |
31 December 2007 |
||||
|
Notes |
US$m |
US$m |
US$m |
|||
|
Interest income |
47,164 |
43,567 |
48,792 |
|||
|
Interest expense |
(25,986) |
(25,337) |
(29,227) |
|||
|
Net interest income |
21,178 |
18,230 |
19,565 |
|||
|
Fee income |
13,381 |
12,488 |
13,849 |
|||
|
Fee expense |
(2,390) |
(1,993) |
(2,342) |
|||
|
Net fee income |
10,991 |
10,495 |
11,507 |
|||
|
Trading income excluding net interest income |
639 |
3,351 |
1,107 |
|||
|
Net interest income on trading activities |
3,195 |
2,160 |
3,216 |
|||
|
Net trading income |
3,834 |
5,511 |
4,323 |
|||
|
Net income/(expense) from financial instruments designated at fair value |
(584) |
874 |
3,209 |
|||
|
Gains less losses from financial investments |
817 |
999 |
957 |
|||
|
Gains arising from dilution of interests in associates |
19 |
- |
1,076 |
16 |
||
|
Dividend income |
88 |
252 |
72 |
|||
|
Net earned insurance premiums |
5,153 |
3,977 |
5,099 |
|||
|
Other operating income |
1,435 |
678 |
761 |
|||
|
Total operating income |
42,912 |
42,092 |
45,509 |
|||
|
Net insurance claims incurred and movement in liabilities to policyholders |
(3,437) |
(3,599) |
(5,009) |
|||
|
Net operating income before loan impairment charges and other credit risk provisions |
39,475 |
38,493 |
40,500 |
|||
|
Loan impairment charges and other credit risk provisions |
(10,058) |
(6,346) |
(10,896) |
|||
|
Net operating income |
29,417 |
32,147 |
29,604 |
|||
|
Employee compensation and benefits |
(10,925) |
(10,430) |
(10,904) |
|||
|
General and administrative expenses |
(7,479) |
(7,022) |
(8,272) |
|||
|
Depreciation and impairment of property, plant and equipment |
(863) |
(817) |
(897) |
|||
|
Amortisation and impairment of intangible assets |
(346) |
(342) |
(358) |
|||
|
Goodwill impairment |
20 |
(527) |
- |
- |
||
|
Total operating expenses |
(20,140) |
(18,611) |
(20,431) |
|||
|
Operating profit |
9,277 |
13,536 |
9,173 |
|||
|
Share of profit in associates and joint ventures |
970 |
623 |
880 |
|||
|
Profit before tax |
10,247 |
14,159 |
10,053 |
|||
|
Tax expense |
6 |
(1,941) |
(2,645) |
(1,112) |
||
|
Profit for the period |
8,306 |
11,514 |
8,941 |
|||
|
Profit attributable to shareholders of the parent company |
15 |
7,722 |
10,895 |
8,238 |
||
|
Profit attributable to minority interests |
15 |
584 |
619 |
703 |
||
|
US$ |
US$ |
US$ |
||||
|
Basic earnings per ordinary share |
4 |
0.65 |
0.95 |
0.70 |
||
|
Diluted earnings per ordinary share |
4 |
0.65 |
0.94 |
0.69 |
||
|
Dividends per ordinary share |
3 |
0.57 |
0.53 |
0.34 |
||
Consolidated balance sheet at 30 June 2008
|
At 30 June |
At 30 June |
At 31 December |
||||
|
2008 |
2007 |
2007 |
||||
|
Notes |
US$m |
US$m |
US$m |
|||
|
ASSETS |
||||||
|
Cash and balances at central banks |
13,473 |
16,651 |
21,765 |
|||
|
Items in the course of collection from other banks |
16,719 |
23,152 |
9,777 |
|||
|
Hong Kong Government certificates of indebtedness |
14,378 |
12,947 |
13,893 |
|||
|
Trading assets |
7 |
473,537 |
424,645 |
445,968 |
||
|
Financial assets designated at fair value |
8 |
40,786 |
34,849 |
41,564 |
||
|
Derivatives |
9 |
260,664 |
149,181 |
187,854 |
||
|
Loans and advances to banks |
256,981 |
214,645 |
237,366 |
|||
|
Loans and advances to customers |
1,049,200 |
928,101 |
981,548 |
|||
|
Financial investments |
10 |
274,750 |
233,001 |
283,000 |
||
|
Interests in associates and joint ventures |
11,259 |
8,583 |
10,384 |
|||
|
Goodwill and intangible assets |
40,814 |
38,445 |
39,689 |
|||
|
Property, plant and equipment |
15,713 |
14,982 |
15,694 |
|||
|
Other assets |
11 |
52,670 |
30,164 |
39,493 |
||
|
Current tax asset |
1,443 |
675 |
896 |
|||
|
Deferred tax asset |
6,490 |
3,327 |
5,284 |
|||
|
Prepayments and accrued income |
17,801 |
17,093 |
20,091 |
|||
|
Total assets |
2,546,678 |
2,150,441 |
2,354,266 |
|||
|
LIABILITIES AND EQUITY |
||||||
|
Liabilities |
||||||
|
Hong Kong currency notes in circulation |
14,378 |
12,947 |
13,893 |
|||
|
Deposits by banks |
154,152 |
128,773 |
132,181 |
|||
|
Customer accounts |
1,161,923 |
980,832 |
1,096,140 |
|||
|
Items in the course of transmission to other banks |
15,329 |
20,339 |
8,672 |
|||
|
Trading liabilities |
12 |
340,611 |
313,193 |
314,580 |
||
|
Financial liabilities designated at fair value |
13 |
89,758 |
75,966 |
89,939 |
||
|
Derivatives |
9 |
251,357 |
144,284 |
183,393 |
||
|
Debt securities in issue |
230,267 |
229,239 |
246,579 |
|||
|
Retirement benefit liabilities |
3,619 |
2,984 |
2,893 |
|||
|
Other liabilities |
48,435 |
31,937 |
35,013 |
|||
|
Current tax liability |
3,082 |
2,563 |
2,559 |
|||
|
Liabilities under insurance contracts |
46,851 |
36,929 |
42,606 |
|||
|
Accruals and deferred income |
17,592 |
16,857 |
21,766 |
|||
|
Provisions |
1,872 |
1,603 |
1,958 |
|||
|
Deferred tax liability |
1,924 |
2,000 |
1,859 |
|||
|
Subordinated liabilities |
31,517 |
23,504 |
24,819 |
|||
|
Total liabilities |
2,412,667 |
2,023,950 |
2,218,850 |
|||
|
Equity |
||||||
|
Called up share capital |
6,003 |
5,857 |
5,915 |
|||
|
Share premium account |
8,097 |
7,834 |
8,134 |
|||
|
Other equity instruments |
2,134 |
- |
- |
|||
|
Other reserves |
27,561 |
31,838 |
33,014 |
|||
|
Retained earnings |
82,990 |
74,251 |
81,097 |
|||
|
Total shareholders' equity |
126,785 |
119,780 |
128,160 |
|||
|
Minority interests |
7,226 |
6,711 |
7,256 |
|||
|
Total equity |
15 |
134,011 |
126,491 |
135,416 |
||
|
Total equity and liabilities |
2,546,678 |
2,150,441 |
2,354,266 |
Consolidated statement of recognised income and expense for the half-year to 30 June 2008
|
Half-year to |
|||||
|
30 June |
30 June |
31 December |
|||
|
2008 |
2007 |
2007 |
|||
|
US$m |
US$m |
US$m |
|||
|
Available-for-sale investments: |
|||||
|
- fair value gains/(losses) taken to equity |
(8,475) |
1,162 |
(406) |
||
|
- fair value gains transferred to income statement on disposal |
(920) |
(763) |
(1,011) |
||
|
- amounts transferred to/(from) the income statement in respect of impairment |
384 |
(20) |
54 |
||
|
Cash flow hedges: |
|||||
|
- fair value gains taken to equity |
914 |
395 |
230 |
||
|
- fair value gains transferred to income statement |
(1,134) |
(568) |
(1,318) |
||
|
Share of changes in equity of associates and joint ventures |
(342) |
186 |
186 |
||
|
Exchange differences |
3,170 |
2,293 |
3,653 |
||
|
Actuarial gains/(losses) on defined benefit plans |
(910) |
2,028 |
139 |
||
|
(7,313) |
4,713 |
1,527 |
|||
|
Tax on items taken directly to equity |
936 |
(455) |
229 |
||
|
Total income and expense taken to equity during the period |
(6,377) |
4,258 |
1,756 |
||
|
Profit for the period |
8,306 |
11,514 |
8,941 |
||
|
Total recognised income and expense for the period |
1,929 |
15,772 |
10,697 |
||
|
Total recognised income and expense for the period attributable to: |
|||||
|
- shareholders of the parent company |
1,523 |
14,950 |
9,851 |
||
|
- minority interests |
406 |
822 |
846 |
||
|
1,929 |
15,772 |
10,697 |
|||
Consolidated cash flow statement for the half-year to 30 June 2008
|
Half-year to |
||||||
|
Notes |
30 June 2008 |
30 June 2007 |
31 December 2007 |
|||
|
US$m |
US$m |
US$m |
||||
|
Cash flows from operating activities |
||||||
|
Profit before tax |
10,247 |
14,159 |
10,053 |
|||
|
Adjustments for: |
||||||
|
- non-cash items included in profit before tax |
16 |
12,900 |
7,358 |
14,343 |
||
|
- change in operating assets |
16 |
(101,131) |
(65,685) |
(110,853) |
||
|
- change in operating liabilities |
16 |
69,395 |
123,248 |
126,847 |
||
|
- elimination of exchange differences1
|
(11,632) |
(5,871) |
(12,731) |
|||
|
- net gain from investing activities |
(1,555) |
(1,149) |
(1,060) |
|||
|
- share of profit in associates and joint ventures |
(970) |
(623) |
(880) |
|||
|
- dividends received from associates |
405 |
146 |
217 |
|||
|
- contribution paid to defined benefit plans |
(416) |
(970) |
(423) |
|||
|
- tax paid |
(2,152) |
(2,217) |
(2,871) |
|||
|
Net cash generated from/(used in) operating activities |
(24,909) |
68,396 |
22,642 |
|||
|
Cash flows from investing activities |
||||||
|
Purchase of financial investments |
(123,464) |
(126,316) |
(134,664) |
|||
|
Proceeds from the sale and maturity of financial investments |
126,384 |
115,063 |
123,584 |
|||
|
Purchase of property, plant and equipment |
(1,112) |
(965) |
(1,755) |
|||
|
Proceeds from the sale of property, plant and equipment |
2,156 |
1,368 |
1,810 |
|||
|
Proceeds from the sale of loan portfolios |
- |
- |
1,665 |
|||
|
Net purchase of intangible assets |
(553) |
(451) |
(499) |
|||
|
Net cash inflow/(outflow) from acquisition of and increase in stake of subsidiaries |
1,608 |
(323) |
(300) |
|||
|
Net cash inflow from disposal of subsidiaries |
440 |
- |
187 |
|||
|
Net cash outflow from acquisition of and increase in stake of associates |
(122) |
(9) |
(342) |
|||
|
Net cash inflow from the consolidation of funds |
- |
- |
1,600 |
|||
|
Proceeds from disposal of associates |
(8) |
- |
69 |
|||
|
Net cash generated from/(used in) investing activities |
5,329 |
(11,633) |
(8,645) |
|||
|
Cash flows from financing activities |
||||||
|
Issue of ordinary share capital |
52 |
116 |
358 |
|||
|
Issue of other equity instruments |
2,134 |
- |
- |
|||
|
Net purchases and sales of own shares for market-making and investment purposes |
(202) |
220 |
(94) |
|||
|
Purchases of own shares to meet share awards and share option awards |
(783) |
(807) |
171 |
|||
|
On exercise of share options |
14 |
58 |
46 |
|||
|
Subordinated loan capital issued |
5,582 |
563 |
5,142 |
|||
|
Subordinated loan capital repaid |
6 |
(87) |
(602) |
|||
|
Dividends paid to shareholders of the parent company |
(3,825) |
(3,591) |
(2,412) |
|||
|
Dividends paid to minority interests |
(394) |
(460) |
(258) |
|||
|
Net cash generated from/(used in) financing activities |
2,584 |
(3,988) |
2,351 |
|||
|
Net increase/(decrease) in cash and cash equivalents |
(16,996) |
52,775 |
16,348 |
|||
|
Cash and cash equivalents at the beginning of the period |
297,009 |
215,486 |
272,284 |
|||
|
Exchange differences in respect of cash and cash equivalents |
7,525 |
4,023 |
8,377 |
|||
|
Cash and cash equivalents at the end of the period |
16 |
287,538 |
272,284 |
297,009 |
||
1 Adjustment to bring changes between opening and closing balance sheet amounts to average rates. This is not done on a line-by-line basis, as details cannot be determined without unreasonable expense.
Related Shares:
HSBC Holdings