30th Jul 2007 09:15
HSBC Holdings PLC30 July 2007 Additional Information 1. Net interest income Half-year ended Half-year endedFigures in HK$m 30Jun07 30Jun06 Net interest income 29,251 23,590Average interest-earning assets 2,498,886 2,179,207Net interest spread 2.02% 1.76%Net interest margin 2.36% 2.18% Net interest income of HK$29,251 million was HK$5,661 million, or 24.0 per cent,higher than the first half of 2006. Higher income was attributable to strongbalance sheet growth and improved deposit spreads throughout the region, coupledwith higher balance sheet management income. Net interest income in Personal Financial Services rose by HK$2,637 million, or18.3 per cent, partly due to strong growth in the deposit base in Hong Kong andin the region. Lending growth also contributed to the increase in interestincome, particularly personal loans in India, Korea and at Hang Seng Bank, andcredit cards in the Philippines, India, Australia and at Hang Seng Bank. Inaddition, strong returns were generated on investments held by the group'sinsurance companies, benefiting from higher yields and growth in portfolio size.Net interest income in Commercial Banking was HK$1,527 million, or 23.6 percent, higher than the first half of 2006 mainly due to balance sheet growth,notably in Hong Kong, India, mainland China and Singapore, and the widening ofdeposit spreads. In Corporate, Investment Banking and Markets, net interestincome increased significantly as a result of strong balance sheet managementincome, reflecting the replacement of maturing assets at higher yields. This wascoupled with business growth in the payments and cash management and securitiesservices businesses and improved deposits spreads, notably in mainland China,India, Hong Kong and Taiwan. Average interest-earning assets rose by HK$319.7 billion, or 14.7 per cent, toHK$2,498.9 billion. Average advances to customers grew by HK$77.9 billion, or7.6 per cent, with strong increases in corporate loans in mainland China andIndia, and a small rise in average mortgage balances in Hong Kong coupled withstronger growth in India and Singapore, partly offset by the disposal of thebroker-originated mortgage business in Australia and the reclassification ofpart of the mortgage book in New Zealand as 'held for sale' which is in the'Other assets' category. Average credit card balances rose in most areas,notably Hong Kong, Australia, India, the Philippines and Thailand, and personalinstalment loans grew, most significantly in India and Korea. Average placementswith banks were HK$151.9 billion higher, and holdings of available-for-salesecurities rose by HK$82.0 billion, reflecting the deployment of the commercialsurplus. The group's net interest margin of 2.36 per cent for the first half of 2007 was18 basis points higher than the comparable period in 2006. Net interest spreadimproved by 26 basis points, while the contribution from net free funds declinedby eight basis points reflecting the deployment of funds into trading assets. For the bank in Hong Kong, net interest margin increased by 19 basis points to2.27 per cent for the first half of 2007. Spread rose by 29 basis points,benefiting from higher yields on money market placements and debt securities,and improved deposit spreads, particularly on US dollar current and savingsaccounts as US dollar interest rates rose. This was partly offset by lowerspreads on mortgages and term lending as Hong Kong dollar lending ratesdecreased. The contribution from net free funds decreased by 10 basis pointsprimarily due to the reduction of free funds as a result of redeployment ofsurplus funds into trading assets. At Hang Seng Bank, net interest margin improved by nine basis points to 2.46 percent, benefiting from wider deposit spreads and the better yields on the balancesheet management portfolio. Balance sheet management income improved aslower-yielding securities gradually matured and were replaced by higher-yieldingassets. Net interest spread rose by five basis points to 1.87 per cent while thecontribution from net free funds increased by four basis points, benefiting fromthe rise in market interest rates and from interest-free customer balances.Notwithstanding the benefit from higher interest rates, the pricing ofresidential mortgages and corporate lending was still under pressure due tointense market competition. In the rest of Asia-Pacific, net interest margin at 2.30 per cent was 15 basispoints higher than the first half of 2006, and spread increased by 33 basispoints to 2.09 per cent. In mainland China, spread improved as the increase inlending rates outweighed the increase in deposit rates, coupled with a betterfunding structure comprising a higher proportion of low cost customer deposits.Spread improved in Indonesia as funding costs decreased following interest ratecuts. In the Philippines, local interest rates dropped but strong growth inhigh-yielding credit card receivables more than offset the decline in yields forother lending products. India benefited from higher margins on customer accountsin a rising interest rate environment as savings rates were contained, andyields improved on the back of strong growth in credit card advances andpersonal loans. The contribution from net free funds dropped by 18 basis pointsmainly due to an increase in net trading assets in Korea, mainland China andAustralia. 2. Net fee income Half-year ended Half-year endedFigures in HK$m 30Jun07 30Jun06 Account services 778 709Credit facilities 689 640Import/export 1,582 1,400Remittances 817 684Securities/stockbroking 4,261 2,572Cards 2,025 2,348Insurance 277 154Unit trusts 2,227 1,227Funds under management 1,781 1,658Other 2,959 1,793 Fee income 17,396 13,185 Fee expense (2,313) (2,271) 15,083 10,914 Net fee income was HK$4,169 million, or 38.2 per cent, higher than the firsthalf of 2006. Securities broking and custody fees rose by 65.7 per cent, reflectingsignificantly higher stock market turnover and IPO activity in Hong Kong. Thebuoyant stock markets also stimulated demand for unit trusts and fee incomeincreased by 81.5 per cent. Trade finance income was 13.0 per cent higher, notably in India, Hong Kong andmainland China, and in part due to the transfer into the group of HSBC's SouthAfrican operations in the second quarter of 2007. Remittance and other accountfees grew, reflecting the group's strong transactional capabilities. Gross fee income from credit cards was impacted by a loss of revenues in Taiwanas credit card activity fell in the wake of the country's curbs on consumercredit growth, and by the transfer in August 2006 of the majority of themerchant acquiring business to the joint venture company set up with GlobalPayments Inc. However, there was strong growth in issuing fees elsewhere in theregion, notably India, Hong Kong and the Philippines, due to an increase in thenumber of cards in circulation and higher cardholder spending. 'Other' includes investment banking fees which were higher as several IPOmandates in Hong Kong were won, and an increase in commissions received fromfellow HSBC Group companies in respect of treasury business. 3. Gains less losses from financial investments Half-year ended Half-year endedFigures in HK$m 30Jun07 30Jun06 Available-for-sale financial investments 420 1,150 420 1,150 The profit on the disposal of available-for-sale securities in 2007 largelycomprises gains on the sale of equity shares and further disposals of Philippinegovernment securities. Prior year gains include the profits made on the sale ofpart of the group's stake in UTI Bank, and also on Philippine governmentsecurities. 4. Other operating income Half-year ended Half-year endedFigures in HK$m 30Jun07 30Jun06 Rental income from investment properties 77 109Movement in present value of in-force insurance business 629 632Profit on disposal of property, plant and equipment, and assets held for sale 16 337Profit on disposal of subsidiaries, associates and business portfolios 35 -Net gains or losses from the disposal or revaluation of investment properties 275 477Other 1,044 895 2,076 2,450 Profit on the disposal of property, plant and equipment was lower than in 2006due to the non-recurrence of gains made on the sale of a commercial property inHong Kong. Gains on investment properties decreased reflecting lower property sales and dueto a lower revaluation surplus as property price rises in Hong Kong slowed. 'Other' largely comprises recoveries of IT and other operating costs from fellowHSBC Group companies which were incurred on their behalf. 5. Gains arising from dilution of investments in associates During the period, two associates of the group, Bank of Communications Limitedand Industrial Bank Co., Ltd., issued new shares. The group did not subscribefor any additional shares issued under these offers and, as a result, itsinterests in the associates' equity decreased from 19.90 per cent to 18.60 percent and from 15.98 per cent to 12.78 per cent, respectively. The net assets of both Bank of Communications and Industrial Bank increasedsubstantially when they received the proceeds from the new share issues. Afterthe new issues, the group's share of the net assets of both associates increasedby HK$4,632 million compared to the share of the net assets immediately prior.This increase in the group's share of net assets was regarded as a gain arisingfrom deemed disposals of part of its interests in the associates and has beenpresented in the consolidated income statement. The gains resulting from the dilution of the group's investments in theassociates were HK$3,167 million and HK$1,465 million in respect of Bank ofCommunications and Industrial Bank respectively. The dilution of the interests does not affect the classification of the group'sinvestments as investments in associates. 6. Loan impairment charges and other credit risk provisions Half-year ended Half-year endedFigures in HK$m 30Jun07 30Jun06 Net charge for impairment of customer advances - Individually assessed impairment allowances: New allowances 983 815 Releases (323) (556) Recoveries (93) (133) 567 126 - Net charge for collectively assessed impairment allowances 2,084 2,434 2,651 2,560 Net (release)/charge for other credit risk provisions (16) 23 2,635 2,583 The net charge for loan impairment and other credit risk provisions was HK$52million higher than in the first half of 2006. The charge for new individually assessed allowances was higher, largelyattributable to the downgrading of certain corporate customers with activitiesin Thailand and mainland China. Releases and recoveries were lower, mainlyrelating to corporates in Hong Kong and mainland China. The net charge for collectively assessed allowances decreased, due to lowercharges in Taiwan and Indonesia where delinquency rates for personal unsecuredlending have improved. Charges rose in other parts of the region, reflectinghigher credit card and other personal lending volumes, particularly in India,Hong Kong, Thailand and Australia. Delinquency levels rose in Thailand due to adeterioration in economic conditions, coupled with a rise in the minimum monthlyrepayment amount on credit cards. Included in the net release of other credit risk provisions is an impairmentcharge of HK$8 million against an available-for-sale investment (half-year ended30 June 2006: nil). 7. Employee compensation and benefits Half-year ended Half-year endedFigures in HK$m 30Jun07 30Jun06 Wages and salaries 7,832 6,852Performance-related pay 3,602 2,655Social security costs 141 143Retirement benefit costs 536 459 12,111 10,109 Staff numbers by region^ At 30Jun07 At 30Jun06 Hong Kong 25,786 25,655Rest of Asia-Pacific 30,826 29,069Total 56,612 54,724 ^ Full-time equivalent Staff costs increased by HK$2,002 million, or 19.8 per cent, compared with thefirst half of 2006. Salaries rose by 14.3 per cent, in line with increases inheadcount throughout the region, and due to annual salary rises. Staff numbersrose significantly in India and Indonesia reflecting the establishment of theconsumer finance business and expansion of the sales force, and in mainlandChina to support new branch openings. Ownership of the group service centre inGuangdong was transferred to another HSBC Group entity in August 2006 with aresultant decrease in headcount of approximately 4,000 in the rest of theAsia-Pacific region. Performance-related pay increased in line with improvedoperating revenues, higher dealing income and the increase in headcount. 8. General and administrative expenses Half-year ended Half-year endedFigures in HK$m 30Jun07 30Jun06 Premises and equipment- Rental expenses 903 727- Amortisation of prepaid operating lease payments 29 29- Other premises and equipment 1,155 1,124 2,087 1,880 Marketing and advertising expenses 1,675 1,395 Other administrative expenses 3,845 3,039 Litigation and other provisions (450) 3 7,157 6,317 The increase in general and administrative expenses of HK$840 million, or 13.3per cent, reflected additional costs incurred in business expansion throughoutthe region. Premises and equipment costs rose due to new branch openings andrent increases. Marketing expenditure was higher, with higher credit card bonuspoint redemption costs, brand advertising at airports in mainland China,campaigns to support the launch of HSBC Direct in Korea, and retail bankingpromotions at Hang Seng Bank. Technology costs also increased as the groupcontinued to improve its customer relationship management systems and internetbanking capabilities. 9. Tax expense The tax expense in the consolidated income statement comprises: Half-year ended Half-year endedFigures in HK$m 30Jun07 30Jun06 Current income tax- Hong Kong profits tax 3,609 2,797- Overseas taxation 2,211 1,709Deferred taxation 584 63 6,404 4,569 The effective rate of tax for the first half of 2007 was 16.4 per cent, comparedwith 17.9 per cent for the first half of 2006. The decrease was attributable tothe dilution gains on investments in associates being tax-exempt. 10. Dividends Half-year ended Half-year ended 30Jun07 30Jun06 HK$ HK$m HK$ HK$m per share per share Dividends paid on ordinary share capital- Paid 0.56 5,000 0.42 3,757- Proposed 0.61 5,500 0.61 5,500 1.17 10,500 1.03 9,257 11. Advances to customers Figures in HK$m At 30Jun07 At 31Dec06 Gross advances to customers 1,161,956 1,050,625 Impairment allowances:- Individually assessed (2,284) (2,118)- Collectively assessed (4,681) (4,725) (6,965) (6,843) 1,154,991 1,043,782 Allowances as a percentage of gross advances to customers:- Individually assessed 0.20% 0.20%- Collectively assessed 0.40% 0.45%Total allowances 0.60% 0.65% 12. Impairment allowances against advances to customers Individually Collectively assessed assessedFigures in HK$m allowances allowances Total At 1Jan07 2,118 4,725 6,843Amounts written off (485) (2,425) (2,910)Recoveries of advances written off in previous years 92 329 421Net charge to income statement 567 2,084 2,651Unwinding of discount of loan impairment (50) (112) (162)Exchange and other adjustments 42 80 122 At 30Jun07 2,284 4,681 6,965 13. Impaired advances to customers and allowances The geographical information shown below, and in note 14, has been classified bylocation of the principal operations of the subsidiary company or, in the caseof the bank, by location of the branch responsible for advancing the funds. Rest ofFigures in HK$m Hong Kong Asia-Pacific Total Half-year ended 30Jun07 Impairment charge 641 2,010 2,651 Half-year ended 30Jun06 Impairment charge 514 2,046 2,560 At 30Jun07 Advances to customers which are considered to be impaired are as follows: Gross impaired advances 3,649 5,587 9,236 Individually assessed allowances (924) (1,360) (2,284) 2,725 4,227 6,952Individually assessed allowances as a percentage of gross impaired advances 25.3% 24.3% 24.7% Gross impaired advances as a percentage of gross advances to customers 0.5% 1.1% 0.8% Rest ofFigures in HK$m Hong Kong Asia-Pacific Total At 31Dec06 Advances to customers which are considered to be impaired are as follows: Gross impaired advances 3,530 5,071 8,601 Individually assessed allowances (1,016) (1,102) (2,118) 2,514 3,969 6,483 Individually assessed allowances as a percentage of gross impaired advances 28.8% 21.7% 24.6% Gross impaired advances as a percentage of gross advances to customers 0.6% 1.2% 0.8% Impaired advances to customers are those advances where objective evidenceexists that full repayment of principal or interest is considered unlikely. Individually assessed allowances are made after taking into account the value ofcollateral held in respect of such advances. 14. Analysis of advances to customers based on categories used by the HSBC Group The following analysis of advances to customers is based on categories used bythe HSBC Group, including The Hongkong and Shanghai Banking Corporation Limitedand its subsidiaries, for risk management purposes. Rest ofFigures in HK$m Hong Kong Asia-Pacific Total At 30Jun07 Residential mortgages 188,455 122,593 311,048 Hong Kong SAR Government's Home Ownership Scheme, Private Sector Participation Scheme and Tenants Purchase Scheme mortgages 31,050 - 31,050 Credit card advances 30,543 22,996 53,539 Other personal 65,483 39,123 104,606Total personal 315,531 184,712 500,243 Commercial, industrial and international trade 130,546 165,056 295,602 Commercial real estate 89,298 45,366 134,664 Other property-related lending 59,292 16,921 76,213 Government 2,785 5,016 7,801 Other commercial 41,758 46,940 88,698Total corporate and commercial 323,679 279,299 602,978 Non-bank financial institutions 28,700 25,784 54,484 Settlement accounts 3,935 316 4,251Total financial 32,635 26,100 58,735 Gross advances to customers 671,845 490,111 1,161,956 Individually assessed impairment allowances (924) (1,360) (2,284)Collectively assessed impairment allowances (1,699) (2,982) (4,681) Net advances to customers 669,222 485,769 1,154,991 At 31Dec06 Residential mortgages 191,522 112,905 304,427 Hong Kong SAR Government's Home Ownership Scheme, Private Sector Participation Scheme and Tenants Purchase Scheme mortgages 31,708 - 31,708 Credit card advances 31,315 19,999 51,314 Other personal 30,778 35,909 66,687Total personal 285,323 168,813 454,136 Commercial, industrial and international trade 130,994 133,560 264,554 Commercial real estate 94,706 36,052 130,758 Other property-related lending 53,832 15,627 69,459 Government 4,283 6,727 11,010 Other commercial 43,186 38,781 81,967Total corporate and commercial 327,001 230,747 557,748 Non-bank financial institutions 18,138 16,471 34,609 Settlement accounts 3,774 358 4,132Total financial 21,912 16,829 38,741 Gross advances to customers 634,236 416,389 1,050,625 Individually assessed impairment allowances (1,016) (1,102) (2,118)Collectively assessed impairment allowances (1,822) (2,903) (4,725) Net advances to customers 631,398 412,384 1,043,782 Net advances to customers increased by HK$111.2 billion, or 10.7 per cent, sincethe end of 2006. Net advances in Hong Kong grew by HK$37.8 billion, or 6.0 per cent, since theend of 2006. This was primarily attributable to IPO financing loans, mainly topersonal customers, reflecting the significant IPO activity in the first half of2007. Mortgage balances were marginally lower due to muted demand and intenseprice competition. Corporate and commercial balances fell slightly althoughadvances to smaller businesses grew, particularly to manufacturers withoperations in mainland China. In the rest of Asia-Pacific, net advances rose by HK$73.4 billion, or 17.8 percent, since the end of 2006. Mortgage balances grew by 8.6 per cent withincreases in Australia, India and Singapore. Credit card advances rose by 15.0per cent, notably in Australia, India, Thailand and the Philippines, and thegrowth in other personal lending was largely attributable to business expansionin India. Lending to corporate and commercial customers rose by HK$48.6 billion,notably in mainland China, Singapore, India and Mauritius. 15. Customer accounts Figures in HK$m At 30Jun07 At 31Dec06 Current accounts 346,060 292,450Savings accounts 839,011 785,659Other deposit accounts 978,153 911,358 2,163,224 1,989,467 Customer accounts increased by HK$173.8 billion, or 8.7 per cent, since the endof 2006. In Hong Kong, customer accounts rose by HK$71.6 billion, or 5.0 per cent, in thefirst half of 2007 following successful deposit campaigns. Deposits frompersonal customers increased by HK$23.9 billion, or 2.6 per cent, and inCommercial Banking and Corporate, Investment Banking and Markets, customeraccount balances grew by HK$47.7 billion, or 9.2 per cent. In the rest of Asia-Pacific, customer accounts increased by HK$102.2 billion, or18.5 per cent, as the group continued to expand the deposit base throughout theregion, with particular focus on attracting high net worth accounts through HSBCPremier and increasing corporate balances by growing the payments and cashmanagement and securities services businesses. Deposits from personal customersincreased by HK$30.8 billion, or 15.2 per cent, notably in mainland China,Singapore, India and Australia. Customer account balances held by corporatecustomers rose by HK$71.4 billion, or 20.3 per cent, largely in Singapore,mainland China, Australia and Taiwan. The group's advances-to-deposits ratio increased to 53.4 per cent at 30 June2007, from 52.5 per cent at 31 December 2006. 16. Reserves Figures in HK$m At 30Jun07 At 31Dec06 Other reserves- Property revaluation reserve 5,785 4,798- Available-for-sale investment reserve 38,409 25,812- Cash flow hedge reserve (416) (166)- Foreign exchange reserve 5,795 2,805- Other 7,089 2,265 56,662 35,514Retained profits 95,645 80,942Total reserves 152,307 116,456 The bank and its banking subsidiary companies operate under regulatoryjurisdictions which require the maintenance of minimum impairment allowances inexcess of those required under Hong Kong Financial Reporting Standards. At 30June 2007, the effect of this requirement is to restrict the amount of reserveswhich can be distributed to shareholders by HK$3,093 million (31 December 2006:HK$1,689 million). The property revaluation reserve includes an amount of HK$206 million inrelation to properties classified as assets held for sale (31 December 2006:HK$62 million). An amount of HK$4,632 million, being the amount of the gains arising from thedilution of investments in associates, has been transferred from retainedprofits to other reserves. 17. Contingent liabilities and commitments Figures in HK$m At 30Jun07 At 31Dec06 Contract amount Contingent liabilities 119,489 100,999Commitments 1,143,308 1,039,819 1,262,797 1,140,818 18. Segmental analysis The allocation of earnings reflects the benefits of shareholders' funds to theextent that these are actually allocated to businesses in the segment by way ofintra-group capital and funding structures. Common costs are included insegments on the basis of the actual recharges made. Geographical information hasbeen classified by the location of the principal operations of the subsidiarycompany or, in the case of the bank, by the location of the branch responsiblefor reporting the results or advancing the funds. Due to the nature of the groupstructure, the analysis of profits shown below includes intra-group itemsbetween geographical regions. Consolidated income statement Intra- Rest of segmentFigures in HK$m Hong Kong Asia-Pacific elimination Total Half-year ended 30Jun07 Interest income 45,937 25,425 (3,812) 67,550Interest expense (26,335) (15,785) 3,821 (38,299)Net interest income 19,602 9,640 9 29,251Fee income 11,779 6,040 (423) 17,396Fee expense (1,670) (1,066) 423 (2,313)Net trading income 2,574 4,386 (6) 6,954Net income from financial instruments designated at fair value 1,661 629 (3) 2,287Gains less losses from financial investments 256 164 - 420Gains arising from dilution of investments in associates - 4,632 - 4,632Dividend income 181 165 - 346Net earned insurance premiums 11,208 850 - 12,058Other operating income 3,260 280 (1,464) 2,076Total operating income 48,851 25,720 (1,464) 73,107Net insurance claims incurred and movement in policyholders' liabilities (11,824) (1,106) - (12,930)Net operating income before loan impairment charges and other credit risk provisions 37,027 24,614 (1,464) 60,177Loan impairment charges and other credit risk provisions (629) (2,006) - (2,635)Net operating income 36,398 22,608 (1,464) 57,542Operating expenses (12,019) (9,985) 1,464 (20,540)Operating profit 24,379 12,623 - 37,002Share of profit in associates and joint venture 103 1,898 - 2,001Profit before tax 24,482 14,521 - 39,003Tax expense (3,941) (2,463) - (6,404)Profit for the period 20,541 12,058 - 32,599 Profit attributable to shareholders 17,628 11,359 - 28,987Profit attributable to minority interests 2,913 699 - 3,612 Half-year ended 30Jun06 Interest income 38,238 19,254 (3,747) 53,745Interest expense (22,167) (11,735) 3,747 (30,155)Net interest income 16,071 7,519 - 23,590Fee income 8,491 4,998 (304) 13,185Fee expense (1,518) (1,057) 304 (2,271)Net trading income 1,816 2,646 - 4,462Net income from financial instruments designated at fair value 64 (36) - 28Gains less losses from financial investments 945 205 - 1,150Gains arising from dilution of investments in associates - - - -Dividend income 579 12 - 591Net earned insurance premiums 10,218 694 - 10,912Other operating income 3,183 523 (1,256) 2,450Total operating income 39,849 15,504 (1,256) 54,097Net insurance claims incurred and movement in policyholders' liabilities (9,253) (491) - (9,744)Net operating income before loan impairment charges and other credit risk provisions 30,596 15,013 (1,256) 44,353Loan impairment charges and other credit risk provisions (544) (2,039) - (2,583)Net operating income 30,052 12,974 (1,256) 41,770Operating expenses (10,762) (7,983) 1,256 (17,489)Operating profit 19,290 4,991 - 24,281Share of profit in associates 81 1,154 - 1,235Profit before tax 19,371 6,145 - 25,516Tax expense (2,968) (1,601) - (4,569)Profit for the period 16,403 4,544 - 20,947 Profit attributable to shareholders 14,006 4,465 - 18,471Profit attributable to minority interests 2,397 79 - 2,476 19. Accounting policies The accounting policies applied in preparing this news release are the same asthose applied in preparing the accounts for the year ended 31 December 2006, asdisclosed in the Annual Report and Accounts for 2006. 20. Additional information Additional financial information, including the group's capital ratios, relatingto the period ended 30 June 2007, prepared in accordance with the Banking(Disclosure) Rules made under section 60A of the Banking Ordinance, will be madeavailable on our website: www.hsbc.com.hk. A further press release will beissued to announce the availability of this information. 21. Statutory accounts The information in this news release is not audited and does not constitutestatutory accounts. Certain financial information in this news release is extracted from thestatutory accounts for the year ended 31 December 2006 which have been deliveredto the Registrar of Companies and the Hong Kong Monetary Authority. The Auditorsexpressed an unqualified opinion on those statutory accounts in their reportdated 5 March 2007. The Annual Report and Accounts for the year ended 31December 2006, which include the statutory accounts, can be obtained on requestfrom Group Public Affairs, The Hongkong and Shanghai Banking CorporationLimited, 1 Queen's Road Central, Hong Kong, and may be viewed on our website:www.hsbc.com.hk. 22. Ultimate holding company The Hongkong and Shanghai Banking Corporation Limited is an indirectly-held,wholly-owned subsidiary of HSBC Holdings plc. 23. Statement of compliance The information in this news release for the half-year ended 30 June 2007complies with Hong Kong Accounting Standard 34, Interim Financial Reporting. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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