HSBC HOLDINGS PLC Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this document, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this document.
3 May 2016(Hong Kong Stock Code: 5)
HSBC Holdings plc - Earnings ReleaseHSBC Holdings plc ('HSBC') will be conducting a trading update conference call with analysts and investors today to coincide with the publication of its Earnings Release. The call will take place at 08.15am BST. Details of how to participate in the call and the live audio webcast can be found at www.hsbc.com/investor-relations.
HSBC Holdings plcRegistered Office and Group Head Office:
8 Canada Square, London E14 5HQ, United Kingdom Web: www.hsbc.com
Incorporated in England with limited liability. Registered in England: number 617987
HSBC HOLDINGS PLC 1
Summary information - global businesses | 20 |
Summary information - geographical regions | 25 |
Appendix - selected information | 30 |
Reconciliation of reported results to adjusted performance | 30 |
Gross loans and advances by industry sector and by geographical region | 36 |
Capital | 37 |
Risk-weighted assets | 38 |
First interim dividend | 40 |
Dividend on Series A dollar preference shares | 40 |
Table of contents
Highlights | 4 |
Group Chief Executive's comments | 5 |
Adjusted performance | 6 |
Financial performance commentary | 8 |
Cautionary statement regarding forward-looking statements | 13 |
Summary consolidated income statement | 14 |
Summary consolidated balance sheet | 15 |
Capital | 16 |
Risk-weighted assets | 17 |
Leverage | 18 |
Profit/(loss) before tax by global business and geographical region | 19 |
Terms and Abbreviations
1Q16 | First quarter of 2016 |
1Q15 | First quarter of 2015 |
4Q15 | Fourth quarter of 2015 |
BoCom | Bank of Communications Co., Limited, one of China's largest banks |
CET1 | Common equity tier 1 |
CMB | Commercial Banking, a global business |
CML | Consumer and Mortgage Lending (US) |
Costs-to-achieve | Transformation costs to deliver the cost reduction and productivity outcomes outlined in the Investor Update of June 2015 |
CRD IV | Capital Requirements Directive IV |
CRS | Card and Retail Services |
DVA | Debit valuation adjustment |
EBA | European Banking Authority |
FCA | Financial Conduct Authority (UK) |
FTEs | Full-time equivalent staff |
FX | Foreign Exchange |
GB&M | Global Banking and Markets, a global business |
GPB | Global Private Banking, a global business |
IFRSs | International Financial Reporting Standards |
Industrial Bank | Industrial Bank Co. Limited, a national joint-stock bank in mainland China in which Hang Seng Bank Limited has a shareholding |
IRB | Internal ratings-based |
Jaws | The difference between the rate of growth of revenue and the rate of growth of costs |
Legacy Credit | A portfolio of assets comprising Solitaire Funding Limited, securities investment conduits, asset-backed securities trading and credit correlation portfolios and derivative transactions entered into directly with monoline insurers |
LICs | Loan impairment charges and other credit risk provisions |
MENA | Middle East and North Africa |
NCOA | Non-credit obligation assets |
Own credit spread | Fair value movements on our long-term debt designated at fair value resulting from changes in credit spread |
PBT | Profit before tax |
PRA | Prudential Regulation Authority (UK) |
Principal RBWM | RBWM excluding the effects of the US run-off portfolio |
Revenue | Net operating income before LICs |
RBWM | Retail Banking and Wealth Management, a global business |
RoRWA | Pre-tax Return on RWAs is calculated using an average of RWAs at quarter-ends |
RWAs | Risk-weighted assets |
SME | Small and medium-sized enterprise |
STD | Standardised approach |
$m/$bn | United States dollar millions/billions |
VaR | Value at risk |
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 around 6,000 offices in 71 countries and territories in Europe, Asia, North and Latin America, and the Middle East and North Africa. With assets of $2,596bn at 31 March 2016, HSBC is one of the world's largest banking and financial services organisations.
Highlights1Q16 compared with 1Q15
Reported PBT of $6,106m in 1Q16, down by $953m or 14%, a resilient performance despite challenging market conditions.
Adjusted PBT of $5,434m in 1Q16, down by $1,162m or 18%.
Adjusted revenue of $13,914m, down by $543m or 4% in challenging market conditions. This was mainly in GB&M (FX, Equities and Credit) and RBWM (life insurance manufacturing), partly offset by continued momentum in CMB.
Adjusted LICs of $1,161m, up by $692m from higher specific charges across a number of countries.
Adjusted operating expenses down $76m or 1% at $7,874m. Excluding the UK bank levy, operating expenses were broadly unchanged reflecting tight cost control and the continued impact of cost saving plans.
1Q16 compared with 4Q15
Reported PBT up by $6,964m and adjusted PBT up by $3,577m. Operating expenses excluding the bank levy down by $236m and significantly lower LICs, down by $450m.
Dividends and capital
Earnings per share in respect of 1Q16 were $0.20 compared with $0.26 for the equivalent period in 2015.
Dividends per ordinary share in respect of 1Q16 were $0.10 compared with $0.10 for the equivalent period in 2015.
CET1 ratio remained strong at 11.9%.
Leverage ratio remained strong at 5.0%.
Issued TLAC securities of $10.5bn, the largest fund-raising by a bank since 2008.
Quarter ended 31 March
2016 | 2015 | Change |
$m | $m | % |
6,106 | 7,059 | (14) |
5,434 | 6,596 | (18) |
9.0% | 11.5% | |
(2.8)% | ||
Reported PBT
Adjusted PBT
Return on average ordinary shareholders' equity (annualised)
Adjusted jaws
At
31 Mar | 31 Dec |
2016 | 2015 |
% | % |
11.9 | 11.9 |
5.0 | 5.0 |
$m | $m |
920,139 | 924,454 |
1,315,058 | 1,289,586 |
1,115,172 | 1,102,995 |
Common equity tier 1 ratio1
Leverage ratio
Loans and advances to customers
Customer accounts
Risk-weighted assets
1 From 1 January 2015 the transitional CET1 and end point CET1 capital ratios became aligned for HSBC Holdings plc due to the recognition of unrealised gains on investment property and available-for-sale securities.
HSBC Holdings plc issued this content on 03 May 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 03 May 2016 04:58:02 UTC. Original document available at http://www.hsbc.com/~/media/hsbc-com/investorrelationsassets/stockexchangeannouncements/2016/may/160503-e-q1-2016-earnings-release.pdf |
