HSBC Holdings plc 1Q 2014 Interim Management Statement - Announcement made to the HK stock exchange - Chinese

Transcription

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2 Stuart Gulliver Iain Mackay HSBC / +44 (0) # +44 (0) (0) Guy Lewis Heidi Ashley +44 (0) (0) Hugh Pye Gareth Hewett

3 / / / IAS Solitaire Funding Limited / / 75 6, ,580 2

4 % % % 14.9% % % % 2% % 10.7% 10.9% 10.8% % ,785 8,434 (20)... 6,621 7,589 (13)... 5,069 6,211 (18) % 50.8% (10) % 3.1% (26) % 10.8% % 10.9% % ,009, ,089 17, ,366,034 1,361,297 4, ,257,672 1,214,939 42,733 1 説 聯 閲 6 3

5 ,884 18, (798) (1,171)... (8,852) (9,347)... 6,785 8, ,785 8, (148) (1,089) Bao Viet Holdings... (104) Household Insurance Group (18) (67)... 6,621 7, ,709 17, (796) (1,072)... (8,843) (9,014)... 6,621 7, (279) (142) (199) HFC Bank UK... (138)... (30)... (141) HSBC Private Bank Holdings (Suisse)SA 4

6 % 5

7 閲 % %... 15,884 18,416 (14) 15, (294) (107)... (148) (27) (1,230) (1,120)... 15,709 17,135 (8) 14, % %... (798) (1,171) 32 (1,140) (796) (1,072) 26 (1,105) 28 6

8 % %... (8,852) (9,347) 5 (10,573) (8,843) (9,014) 2 (10,493) % 52.6% 71.8% % %... 6,785 8,434 (20) 3, (67) (35)... (148) (16) (1,021) (1,081)... 6,621 7,589 (13) 3, 論 % % % HFC Bank UK , ,400 3,

9 % % ,300 3,500 2% 來 % % 255, , % 21.5% %

10 , % % % 11 7% 列 來 % 10.7% 10.9% 10.8% RWA 1, % 爲 内 101 内 48 9

11 狀 4 10

12 說 數 數 狀 參 2013 IAS 32 IAS 年 倫 黎... 紐... 錄... 錄 倫 紐 黎 年 年 年 年 年 年 10 9 狀 參 若 狀 念 例 料 理 類 行 不 / 易 料 金 不 朗 離 狀 不 例 惡 率 利率 流 不 流 不 力 行 金 流 金 不利 度 / 利 金 金狀 不利 理 例 行 金 利率 金 更 金 聯 流 金 行 降 金 例 例 更 例 不利 不 律 不 朗 律行 行金 行 更 烈 識 例 理 理 理 力 律 11

13 ,721 9,006 8,714 8,851 8, ,046 3,993 4,037 4,159 4, ,280 1,045 1,283 2,519 3, (275) (1,457) / (331) 553 / ,447 (293) (904) , ,136 2,665 3,049 3,054 3, , (55) 1, ,227 18,620 19,194 18,554 21, (3,343) (3,425) (4,116) (2,598) (3,553)... 15,884 15,195 15,078 15,956 18, (798) (1,140) (1,593) (1,945) (1,171)... 15,086 14,055 13,485 14,011 17, (8,852) (10,573) (9,584) (9,052) (9,347)... 6,234 3,482 3,901 4,959 7, ,785 3,964 4,530 5,637 8, (1,275) (995) (1,045) (1,401) (1,324)... 5,510 2,969 3,485 4,236 7, ,211 2,720 3,200 3,931 6, % % % % %

14 , , , , , , ,874 38,430 35, , , , , ,690 88, , , , ,009, , , , , , ,936 4,050 20, , , , ,758,447 2,671,318 2,645, , ,220 66, ,492 86,507 92, ,366,034 1,361,297 1,266, , , , ,767 89,084 84, , , , , , , ,055 74,181 69, ,003 2,804 19, , , , ,565,999 2,480,859 2,462, , , , ,503 8,588 8, , , , ,758,447 2,671,318 2,645, % 72.9% 74.1% 13

15 , , , , ,564 3,644 4,955 4, (15,839) (18,313) (7,942) (8,076)... (36,932) (35,969) (29,833) (29,858) / , , , , ,552 14,573 16,110 15, (165) (165) (7,006) (6,538) , , , , ,356 35,786 47,812 45, (248) (248) (11,958) (11,701) , , , , ,257,672 1,214,939 1,092,653 1,104,764 % % % % , , ,273 1, , , ,387 14,408 :... (1,160) (1,160)... (1,955) (1,955)... (10,727) (10,727) :... (335) (366) ,108 35,538 :... (2,218) (2,218)... (21,513) (21,513) :... (240) (240) (165) (165)... 15,260 11,747 14

16 , (1.7) (0.2) (0.8) , , , , , , , ,

17 兑 (0.9) (0.5) (0.2) (0.1) (0.3) (0.2) (1.5) (1.7) 0.3 (0.1) (4.9) / (4.9) (2.2) (5.5) (2.4) (10.1) (2.7)

18 兑... (6.5) (0.4) (0.3) (0.6) 0.1 (7.7)... (1.4) (1.4) (4.4) (0.3) (0.4) (2.8) 0.1 (0.5)... (0.2) (0.2)... /... (0.2) (0.2) (0.1) 兑.. (0.1) (0.1) (0.3) (0.3) (1.3) (0.2) (0.2) (1.1) (2.0) (3.1) (0.1) 0.3 (0.1) (4.9) (4.6) / (4.9) (4.6) (1.8) (2.6) (2.6) (5.6) (1.9) (10.1) (0.7) (8.2) (5.6) (0.4). (0.4) (0.5) (0.4). (0.6) (0.4) (1.3) (0.5) (6.3) (4.0)

19 ,758 2,671 IFRSs (498) (482)... (270) (282)... (228) (200) (30) (28)... 3,092 3, % 4.4% % 4.9% / ,712 1,797 1,585 1,700 1, ,420 2,426 1,882 1,946 2, ,871 1,866 1,852 2,135 3, (16) 233 (125)... (419) (2,226) (773) (377) 1,217 6,785 3,964 4,530 5,637 8, ,760 (898) (45) 973 1, ,764 2,991 3,600 3,748 5, , ,785 3,964 4,530 5,637 8,434 18

20 ,244 6,810 6,641 6,576 6, (604) (686) (773) (878) (890)... 5,640 6,124 5,868 5,698 5, (4,016) (4,421) (4,376) (4,112) (4,339)... 1,624 1,703 1,492 1,586 1, ,712 1,797 1,585 1,700 1,567 1,762 1,865 1,483 1,614 1, (50) (68) (320) ,712 1,797 1,585 1,700 1, (8)... (5) (313) (4) (14) ,707 1,486 1,592 1,735 1,647 % % % % % ,762 1,865 1,483 1,614 1, (8)... (5) (313) (4) (14) (32)... 1,757 1,554 1,490 1,649 1,847 19

21 ,010 4,517 3,985 3,930 3, (197) (543) (681) (802) (358)... 3,813 3,974 3,304 3,128 3, (1,739) (1,878) (1,834) (1,611) (1,726)... 2,074 2,096 1,470 1,517 1, ,420 2,426 1,882 1,946 2, ,420 2,426 1,882 1,946 2, (5) 25 (13)... (7) (486) (11) (21) (21)... 2,413 1,935 1,871 1,950 2,153 % % % % % ,494 1,541 1,554 1,520 1, ,322 1,363 1,345 1,304 1, ,010 4,517 3,985 3,930 3,

22 ,160 4,294 4,220 4,846 5,816 /... (3) 85 (118) (219) ,157 4,379 4,102 4,627 5, (2,397) (2,585) (2,368) (2,619) (2,388)... 2,760 1,794 1,734 2,008 3, ,871 1,866 1,852 2,135 3, ,871 1,866 1,852 2,135 3, (32) (25) (40) (26)... (5) (324) (69) 10 (19)... 2,866 1,510 1,758 2,105 3,543 % % % % % , ,225 1,290 1,575 1,839 2, , (195) (151) (21) (65) ,160 4,294 4,220 4,846 5,816 1,992 1,312 1,432 1,765 2,525 1,883 1,640 1,640 1,765 1, (45) (55) (43) (17) (40) 3.. 5,160 4,294 4,220 4,846 5,

23 / (21) (7) (7) (441) (537) (657) (469) (566) / (20) 231 (129) / (16) 233 (125) / / (16) 233 (125) (1) / (14) 237 (124) % % % % % (0.3) 4.3 (2.3) (2) (11) (5) (9) (1) (7) 7 (2) (2) 2 (1) (1)

24 , ,009 1,329 2, (652) (575) 224 (243) /.. 1 (39) 39 1, ,009 1,290 2,860 (1,639) (2,700) (1,784) (1,673) (1,639) /... (421) (2,208) (775) (383) 1,221 /... 2 (18) 2 6 (4) /... (419) (2,226) (773) (377) 1,217 / /... (419) (2,226) (773) (377) 1,217 (1) (3) (22) (21) (148) (224) (1,069) /... (566) (1,532) (187) (623)

25 ,852 4,628 4,865 5,506 5,968 (116) (166) (518) (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) 972 1,794 / (2) 1 1 /.. 1,760 (898) (45) 973 1,795 / /.. 1,760 (898) (45) 973 1, (149) (157) 154 (40) 20 2 /.. 1,611 (342) ,052 % % % % % (1.2) (0.1) / /... 1,358 (1,266) , (152) (147) 148 (40) 20 2 /.. 1,206 (704) ,906 / , (106) 128 (242) (423) (2,072) (852) (484) (244) /.. 1,760 (898) (45) 973 1,795 24

26 ,873 5,416 5,725 5,705 7,586 (104) (157) (143) (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, ,764 2,991 3,600 3,748 5, ,764 2,991 3,600 3,748 5,514 (11) (5) (49) (68) 2 (3) (1,129) 3,764 3,015 3,601 3,700 4,319 % % % % % ,107 1,812 2,072 2,047 2,158 (1) (3) 2 1 2,107 1,811 2,069 2,049 2,159 / ,156 1,042 1,079 1,059 1,239 1, ,169 1,196 1,114 1,295 1,000 1,069 1,230 1, (63) ,693 3,764 2,991 3,600 3,748 5,514 25

27 / (53) (15) (295) (365) (308) (335) (281) 列 利 列 利 (1) 1 (4) (2) 3 利 % % % % % / (9) (21) (33) (21) (19)

28 ,061 1,979 2,192 2,336 2,296 (173) (238) (263) (249) (447) 1,888 1,741 1,929 2,087 1,849 (1,442) (1,578) (1,562) (1,562) (1,714) 列 利 列 利 (12) (14) (13) (24) (4) (62) 84 (17) 120 利 % % % % % / (14) (95) (280) 36 (27) (44) (50) (68) (320) (60) (66) (71) (44) (163)

29 ,130 3,314 2,296 2,453 2,505 (427) (627) (616) (907) (516) 1,703 2,687 1,680 1,546 1,989 (1,393) (1,401) (1,460) (1,541) (1,528) 310 1, , 列 利 / 列 利 310 1, (30) (34) (20) (72) (16) (1,116) (17) (49) (14) 利 / (64) 375 % % % % % / (27) (115) (4) (81) (3) (2) 2 4 (16) (4) (26) (6) (50) 310 1,

30 % , ,018 6,475 69,746 15, , ,385 93,175 2,521 58,554 4, , ,169 32,843 3,954 11,192 10, , , ,809 19,296 52,107 31, , ,191 32,728 2,506 12,547 13, , ,770 79,031 9,255 12,430 8, , ,420 34, ,157 2,503 74, ,458 28,625 1,391 8, , ,591 1,065 1, ,018 6, ,900 35,530 4,136 12,034 6, , ,862 10,032 2,580 7,854 1,540 51, ,620 9,643 2,579 7,854 1,359 49, , , , , , ,859 28, ,846 47,832 1,024, , ,529 6,484 72,690 14, , ,474 92,047 2,451 60,955 3, , ,633 32,482 4,033 11,735 10, , , ,394 19,760 50,306 30, , ,920 30,758 3,180 11,778 12, , ,113 79,368 8,629 11,676 8, , ,326 34, ,900 2,421 74, ,308 27,147 1,333 8, , ,340 1,021 1, , ,109 30,540 4,536 11,738 5, , ,872 10,188 2,532 9,056 1,376 51, ,315 9,858 2,532 9,056 1,277 49, , , , , , ,111 28, ,190 46,482 1,007, , ,822 6,377 78,959 15, , ,434 90,080 2,296 66,277 3, , ,836 30,742 4,081 12,682 11, , , ,075 21,416 48,327 30, , ,202 30,244 3,409 9,609 12, , ,317 77,798 9,458 13,082 7, , ,764 33, ,064 2,328 73, ,403 23,715 1,526 7, , ,834 3,220 1, ,431 8, ,608 29,682 4,461 11,499 6, , ,896 8,931 1,822 7,470 1,364 46, ,362 8,171 1,821 7,470 1,273 44, , , , , , ,828 29, ,903 46, , , ,

31 HSBC HOLDINGS PLC DATA PACK 1Q 2014 The financial information on which this supplement is based is unaudited and has been prepared in accordance with HSBC's significant accounting policies as described in the Annual Report and Accounts 2013, with the exception of the adoption of amendments to the offsetting requirements of IAS 32 Financial Instruments: Presentation. The amendments have been applied retrospectively and have not had a material effect on HSBC's financial information. The financial information does not constitute interim financial statements prepared in accordance with IAS 34 Interim Financial Reporting, is not complete and should be read in conjunction with the Annual Report and Accounts 2013, the Interim Management Statement 1Q 2014 and other reports and financial information published by HSBC.

32 HSBC HSBC Holdings plc Quarter ended 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar US$m US$m US$m US$m US$m Net interest income/(expense) 8,721 9,005 8,714 8,851 8,968 Net fee income/(expense) 4,046 3,993 4,037 4,157 4,245 Net trading income/(expense) 2,280 1,045 1,283 2,521 3,843 Other income/(expense) 837 1,152 1, ,360 Net operating income/(expense) before loan impairment charges and other credit risk provisions 15,884 15,195 15,078 15,956 18,416 Loan impairment (charges)/recoveries and other credit risk provisions (798) (1,140) (1,593) (1,945) (1,171) Net operating income/(expenses) 15,086 14,055 13,485 14,011 17,245 Total operating expenses (8,852) (10,573) (9,584) (9,052) (9,347) Operating profit/(loss) 6,234 3,482 3,901 4,959 7,898 Share of profit/(loss) in associates and joint ventures Profit/(loss) before tax 6,785 3,964 4,530 5,637 8,434 Reconciliation of reported and underlying profit before tax Reported profit/(loss) before tax 6,785 3,964 4,530 5,637 8,434 Currency translation adjustment (35) (15) 16 (67) Own credit spread (148) (224) 243 Gain/(loss) on disposal or dilution (18) (1,084) (70) (36) (1,112) Trading contributions of disposals and dilutions Underlying profit/(loss) before tax 6,621 3,500 5,020 5,404 7,589 Significant items Revenue Nonqualifying hedges (142) Loss on sale of HFC Bank UK secured loan portfolio (8) (138) Loss on termination of cash flow hedges in CML (199) Gain/(loss) on sale of several tranches of real estate secured accounts (30) (125) 3 (1) Loss on writeoff of goodwill relating to Monaco business (279) DVA adjustments 30 (195) (151) (21) 472 FX gains relating to the sterling debt issued by HSBC Holdings to HSBC Bank plc 442 Net gain recognised on completion of the Ping An sale 553 (142) (278) Operating expenses UK customer redress charges (83) (395) (428) (248) (164) Restructuring and related costs (40) (87) (158) (163) (75) UK accounting gain on changes in illhealth benefits 430 US customer remediation provision relating to CRS (100) Litigation provision in GB&M Europe (Thema / Madoff) (298) Provision for regulatory investigations in GPB (35) (198) (119) UK bank levy (907) (9) Balance sheet data (123) (1,424) (784) (288) (458) At 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar US$m US$m US$m US$m US$m Loans and advances to customers (net) 1,009, , , , ,225 Customer accounts 1,366,034 1,361,297 1,317,707 1,266,905 1,272,526 US$bn US$bn US$bn US$bn US$bn Riskweighted assets 1, , , , ,097.8 The financial information on which this supplement is based is unaudited and has been prepared in accordance with HSBC's significant accounting policies as described in the Annual Report and Accounts 2013, with the exception of the adoption of amendments to the offsetting requirements of IAS 32 Financial Instruments: Presentation. The amendments have been applied retrospectively and have not had a material effect on HSBC's financial information. The financial information does not constitute interim financial statements prepared in accordance with IAS 34 Interim Financial Reporting, is not complete and should be read in conjunction with the Annual Report and Accounts 2013, the Interim Management Statement 1Q 2014 and other reports and financial information published by HSBC. All information is 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 due to movements in credit spread on own longterm debt issues by the Group and designated at fair value. RWAs at 31 March 2014 are calculated and presented on a CRD IV basis. Prior periods are on a Basel 2.5 basis.

33 HSBC Banking and Wealth Management Quarter ended 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar US$m US$m US$m US$m US$m Net interest income/(expense) 4,352 4,518 4,511 4,561 4,748 Net fee income/(expense) 1,629 1,715 1,721 1,812 1,773 Net trading income/(expense) Other income/(expense) (64) 184 Net operating income/(expense) before loan impairment charges and other credit risk provisions 6,244 6,810 6,641 6,576 6,713 Loan impairment (charges)/recoveries and other credit risk provisions (604) (686) (773) (878) (890) Net operating income/(expenses) 5,640 6,124 5,868 5,698 5,823 Total operating expenses (4,016) (4,421) (4,376) (4,112) (4,339) Operating profit/(loss) 1,624 1,703 1,492 1,586 1,484 Share of profit/(loss) in associates and joint ventures Profit/(loss) before tax 1,712 1,797 1,585 1,700 1,567 Reconciliation of reported and underlying profit before tax Reported profit/(loss) before tax 1,712 1,797 1,585 1,700 1,567 Currency translation adjustment (8) Gain/(loss) on disposal or dilution (7) (320) (6) (22) (5) Trading contributions of disposals and dilutions Underlying profit/(loss) before tax 1,707 1,486 1,592 1,735 1,647 Significant items Revenue Nonqualifying hedges (80) Loss on sale of HFC Bank UK secured loan portfolio (8) (138) Loss on termination of cash flow hedges in CML (199) Gain/(loss) on sale of several tranches of real estate secured accounts (30) (125) 3 (1) (110) (89) (276) Operating expenses UK customer redress charges (83) (247) (294) (248) (164) Restructuring and related costs (8) (8) (74) (70) (15) UK accounting gain on changes in illhealth benefits 189 US customer remediation provision relating to CRS (100) Balance sheet data (91) (255) (368) (129) (279) At 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar US$m US$m US$m US$m US$m Loans and advances to customers (net) 373, , , , ,741 Customer accounts 583, , , , ,411 US$bn US$bn US$bn US$bn US$bn Riskweighted assets The financial information on which this supplement is based is unaudited and has been prepared in accordance with HSBC's significant accounting policies as described in the Annual Report and Accounts 2013, with the exception of the adoption of amendments to the offsetting requirements of IAS 32 Financial Instruments: Presentation. The amendments have been applied retrospectively and have not had a material effect on HSBC's financial information. The financial information does not constitute interim financial statements prepared in accordance with IAS 34 Interim Financial Reporting, is not complete and should be read in conjunction with the Annual Report and Accounts 2013, the Interim Management Statement 1Q 2014 and other reports and financial information published by HSBC. All information is 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 due to movements in credit spread on own longterm debt issues by the Group and designated at fair value. RWAs at 31 March 2014 are calculated and presented on a CRD IV basis. Prior periods are on a Basel 2.5 basis.

34 HSBC Commercial Banking Quarter ended 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar US$m US$m US$m US$m US$m Net interest income/(expense) 2,551 2,604 2,547 2,535 2,515 Net fee income/(expense) 1,201 1,185 1,196 1,191 1,145 Net trading income/(expense) Other income/(expense) Net operating income/(expense) before loan impairment charges and other credit risk provisions 4,010 4,517 3,985 3,930 3,933 Loan impairment (charges)/recoveries and other credit risk provisions (197) (543) (681) (802) (358) Net operating income/(expenses) 3,813 3,974 3,304 3,128 3,575 Total operating expenses (1,739) (1,878) (1,834) (1,611) (1,726) Operating profit/(loss) 2,074 2,096 1,470 1,517 1,849 Share of profit/(loss) in associates and joint ventures Profit/(loss) before tax 2,420 2,426 1,882 1,946 2,187 Reconciliation of reported and underlying profit before tax Reported profit/(loss) before tax 2,420 2,426 1,882 1,946 2,187 Currency translation adjustment (5) 25 (13) Gain/(loss) on disposal or dilution (7) (481) 10 (5) (1) Trading contributions of disposals and dilutions (5) (21) (16) (20) Underlying profit/(loss) before tax 2,413 1,935 1,871 1,950 2,153 Significant items Revenue Operating expenses UK customer redress charges (80) (68) Restructuring and related costs (1) 19 (28) (21) (1) UK accounting gain on changes in illhealth benefit 160 (1) (61) (96) 139 (1) Management view of revenue Trade and Receivables Finance Credit and lending 1,494 1,541 1,554 1,520 1,488 Payments and Cash Management 1, current accounts and savings deposits 1,322 1,363 1,345 1,304 1,275 Other Net operating income 2 4,010 4,517 3,985 3,930 3,933 1 ' Trade and Receivables Finance' and 'Payments and Cash Management' include revenue attributable to foreign exchange products. 2 Net operating income before loan impairment charges and other credit risk provisions, also referred to as revenue. Balance sheet data At 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar US$m US$m US$m US$m US$m Loans and advances to customers (net) 301, , , , ,391 Customer accounts 353, , , , ,085 US$bn US$bn US$bn US$bn US$bn Riskweighted assets The financial information on which this supplement is based is unaudited and has been prepared in accordance with HSBC's significant accounting policies as described in the Annual Report and Accounts 2013, with the exception of the adoption of amendments to the offsetting requirements of IAS 32 Financial Instruments: Presentation. The amendments have been applied retrospectively and have not had a material effect on HSBC's financial information. The financial information does not constitute interim financial statements prepared in accordance with IAS 34 Interim Financial Reporting, is not complete and should be read in conjunction with the Annual Report and Accounts 2013, the Interim Management Statement 1Q 2014 and other reports and financial information published by HSBC. All information is 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 due to movements in credit spread o own longterm debt issues by the Group and designated at fair value. RWAs at 31 March 2014 are calculated and presented on a CRD IV basis. Prior periods are on a Basel 2.5 basis.

35 HSBC Banking and Markets Quarter ended 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar US$m US$m US$m US$m US$m Net interest income/(expense) 1,769 1,842 1,590 1,662 1,672 Net fee income/(expense) Net trading income/(expense) 2, ,931 3,676 Other income/(expense) 448 1,070 1, (503) Net operating income/(expense) before loan impairment charges and other credit risk provisions 5,160 4,294 4,220 4,846 5,816 Loan impairment (charges)/recoveries and other credit risk provisions (3) 85 (118) (219) 45 Net operating income/(expenses) 5,157 4,379 4,102 4,627 5,861 Total operating expenses (2,397) (2,585) (2,368) (2,619) (2,388) Operating profit/(loss) 2,760 1,794 1,734 2,008 3,473 Share of profit/(loss) in associates and joint ventures Profit/(loss) before tax 2,871 1,866 1,852 2,135 3,588 Reconciliation of reported and underlying profit before tax Reported profit/(loss) before tax 2,871 1,866 1,852 2,135 3,588 Currency translation adjustment (32) (25) (40) (26) Gain/(loss) on disposal or dilution (5) (324) (81) (5) (17) Trading contributions of disposals and dilutions (2) Underlying profit/(loss) before tax 2,866 1,510 1,758 2,105 3,543 Significant items Revenue DVA adjustments 30 (195) (151) (21) 472 Nonqualifying hedges (2) 2 (16) (2) 30 (197) (149) (37) 470 Operating expenses Restructuring and related costs (4) (5) (8) UK accounting gain on changes in illhealth benefits 81 Litigation provision in GB&M Europe (Thema/Madoff) (298) UK customer redress charges (68) (66) (4) (68) (71) (217) (8)

36 HSBC Banking and Markets Management view of total operating income 1 Quarter ended 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar US$m US$m US$m US$m US$m Markets 2,225 1,290 1,575 1,839 2,231 Credit Rates Foreign Exchange Equities Capital Financing ,054 Payments and Cash Management Securities Services Trade and Receivables Finance Balance Sheet Management Principal Investments Debit valuation adjustment 31 (195) (151) (21) 472 Other (65) Total operating income 2 5,160 4,294 4,220 4,846 5,816 1 The management view of income reflects the new management structure of GB&M which has been in place since 12 August Comparatives have been restated for this change. 2 Net operating income before loan impairment charges and other credit risk provisions, also referred to as 'revenue'. Balance sheet data Quarter ended 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar US$m US$m US$m US$m US$m Loans and advances to customers (net) 286, , , , ,302 Customer accounts 330, , , , ,088 US$bn US$bn US$bn US$bn US$bn Riskweighted assets The financial information on which this supplement is based is unaudited and has been prepared in accordance with HSBC's significant accounting policies as described in the Annual Report and Accounts 2013, with the exception of the adoption of amendments to the offsetting requirements of IAS 32 Financial Instruments: Presentation. The amendments have been applied retrospectively and have not had a material effect on HSBC's financial information. The financial information does not constitute interim financial statements prepared in accordance with IAS 34 Interim Financial Reporting, is not complete and should be read in conjunction with the Annual Report and Accounts 2013, the Interim Management Statement 1Q 2014 and other reports and financial information published by HSBC. All information is 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 due to movements in credit spread on own longterm debt issues by the Group and designated at fair value. RWAs at 31 March 2014 are calculated and presented on a CRD IV basis. Prior periods are on a Basel 2.5 basis.

37 HSBC Private Banking Quarter ended 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar US$m US$m US$m US$m US$m Net interest income/(expense) Net fee income/(expense) Net trading income/(expense) Other income/(expense) 12 (4) (268) Net operating income/(expense) before loan impairment charges and other credit risk provisions Loan impairment (charges)/recoveries and other credit risk provisions 5 4 (21) (7) (7) Net operating income/(expenses) Total operating expenses (441) (537) (657) (469) (566) Operating profit/(loss) (20) 231 (129) Share of profit/(loss) in associates and joint ventures Profit/(loss) before tax (16) 233 (125) Reconciliation of reported and underlying profit before tax Reported profit/(loss) before tax (16) 233 (125) Currency translation adjustment Gain/(loss) on disposal or dilution (1) Trading contributions of disposals and dilutions Underlying profit/(loss) before tax (14) 237 (124) Significant items Revenue Nonqualifying hedges 3 (1) (3) 2 Loss on writeoff of goodwill relating to Monaco business (279) 3 (1) (3) (277) Operating expenses Restructuring and related costs (67) (5) (1) Provision for regulatory investigations in GPB (35) (198) (119) (102) (198) (5) (120) Balance sheet data At 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar US$m US$m US$m US$m US$m Loans and advances to customers (net) 45,629 44,224 43,723 39,161 40,142 Customer accounts 96,760 96, ,018 92,298 95,306 US$bn US$bn US$bn US$bn US$bn Riskweighted assets The financial information on which this supplement is based is unaudited and has been prepared in accordance with HSBC's significant accounting policies as described in the Annual Report and Accounts 2013, with the exception of the adoption of amendments to the offsetting requirements of IAS 32 Financial Instruments: Presentation. The amendments have been applied retrospectively and have not had a material effect on HSBC's financial information. The financial information does not constitute interim financial statements prepared in accordance with IAS 34 Interim Financial Reporting, is not complete and should be read in conjunction with the Annual Report and Accounts 2013, the Interim Management Statement 1Q 2014 and other reports and financial information published by HSBC. All information is 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 due to movements in credit spread on own longterm debt issues by the Group and designated at fair value. RWAs at 31 March 2014 are calculated and presented on a CRD IV basis. Prior periods are on a Basel 2.5 basis.

38 HSBC Other Quarter ended 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar US$m US$m US$m US$m US$m Net interest income/(expense) (183) (200) (159) (185) (190) Net fee income/(expense) 4 (9) Net trading income/(expense) (44) (1) (200) Other income/(expense) 1, ,420 3,156 Net operating income/(expense) before loan impairment charges and other credit risk provisions 1, ,009 1,329 2,821 Loan impairment (charges)/recoveries and other credit risk provisions 1 (39) 39 Net operating income/(expenses) 1, ,009 1,290 2,860 Total operating expenses (1,639) (2,700) (1,784) (1,673) (1,639) Operating profit/(loss) (421) (2,208) (775) (383) 1,221 Share of profit/(loss) in associates and joint ventures 2 (18) 2 6 (4) Profit/(loss) before tax (419) (2,226) (773) (377) 1,217 Reconciliation of reported and underlying profit before tax Reported profit/(loss) before tax (419) (2,226) (773) (377) 1,217 Currency translation adjustment (1) (3) (22) (21) Own credit spread (148) (224) 243 Gain/(loss) on disposal or dilution 42 7 (4) (1,089) Trading contributions of disposals and dilutions Underlying profit before tax (566) (1,532) (187) (623) 370 Significant items Revenue Nonqualifying hedges (62) FX gains relating to the sterling ( ) debt issued by HSBC Holdings to HSBC Bank plc 442 Net gain recognised on completion of the Ping An sale 553 (62) ,018 Operating expenses Restructuring and related costs (27) (31) (51) (67) (50) UK bank levy (907) (9) (27) (938) (51) (76) (50) Balance sheet data Quarter ended 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar US$m US$m US$m US$m US$m Loans and advances to customers (net) 2,517 2,453 2,462 2,361 2,649 Customer accounts 1,944 1,435 1,766 1,355 1,636 US$bn US$bn US$bn US$bn US$bn Riskweighted assets The financial information on which this supplement is based is unaudited and has been prepared in accordance with HSBC's significant accounting policies as described in the Annual Report and Accounts 2013, with the exception of the adoption of amendments to the offsetting requirements of IAS 32 Financial Instruments: Presentation. The amendments have been applied retrospectively and have not had a material effect on HSBC's financial information. The financial information does not constitute interim financial statements prepared in accordance with IAS 34 Interim Financial Reporting, is not complete and should be read in conjunction with the Annual Report and Accounts 2013, the Interim Management Statement 1Q 2014 and other reports and financial information published by HSBC. All information is 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 due to movements in credit spread on own longterm debt issues by the Group and designated at fair value. RWAs at 31 March 2014 are calculated and presented on a CRD IV basis. Prior periods are on a Basel 2.5 basis.

39 Europe Quarter ended 31 Mar 2014 Banking Banking Interand Net interest income/(expense) 1, (189) (43) 2,748 Net fee income/(expense) ,547 Net trading income/(expense) (69) (54) Other income/(expense) (12) Net operating income/(expense) before loan impairment charges and other credit risk provisions 1,973 1,381 1, ,852 Loan impairment (charges)/recoveries and other credit risk provisions (45) (69) (3) 1 (116) Net operating income/(expense) 1,928 1,312 1, ,736 Total operating expenses (1,412) (567) (1,166) (283) (548) (2) (3,978) Operating profit/(loss) (424) 1,758 Share of profit/(loss) in associates and joint ventures (1) Profit/(loss) before tax (423) 1,760 Reconciliation of reported and underlying profit before tax Reported profit/(loss) before tax (423) 1,760 Currency translation adjustmen Own credit spread (149) (149) Gain/(loss) on disposal or dilution Trading contributions of disposals and dilution Underlying profit/(loss) before tax (572) 1,611 Significant items Revenue DVA adjustments FX gains relating to the sterling ( ) debt issued by HSBC Holdings to HSBC Bank plc Nonqualifying hedges 5 (68) (63) Loss on sale of HFC Bank UK secured loan portfolio Loss on writeoff of goodwill relating to Monaco busines 27 (68) (41) Operating expenses UK customer redress charges (83) (83) Restructuring and related costs (3) (4) (15) (22) Provision for regulatory investigations in GPB UK accounting gain on changes in illhealth benefits UK bank levy Litigation provision in GB&M Europe (Thema/Madoff) Reconciliation of reported and underlying UK profit/(loss) before tax (86) (4) (15) (105) Reported profit/(loss) before tax (388) 1,358 Currency translation adjustment Own credit spread (152) (152) Gain/(loss) on disposal or dilution Trading contributions of disposals and dilutions Underlying profit/(loss) before tax (540) 1,206 Balance sheet data At 31 Mar 2014 Banking Banking Interand Loans and advances to customers (net) 177, , ,093 28, ,133 Customer accounts 210, , ,117 49,737 1, ,404 Note: Riskweighted asset data by geographical region is provided in a separate tab at the end of this document. The financial information on which this supplement is based is unaudited and has been prepared in accordance with HSBC's significan accounting policies as described in the Annual Report and Accounts 2013, with the exception of the adoption of amendments to the offsetting requirements of IAS 32 Financial Instruments: Presentation. The amendments have been applied retrospectively and have not had a material effect on HSBC's financial information. The financial information does not constitute interim financial statements prepared in accordance with IAS 34 Interim Financial Reporting, is not complete and should be read in conjunction with the Annual Report and Accounts 2013, the Interim Management Statement 1Q 2014 and other reports and financial information published by HSBC. All information is 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 due to movements in credit spread on own longterm debt issues by the Group and designated at fair value.

40 Europe Net interest income/(expense) Net fee income/(expense) Net trading income/(expense) Other income/(expense) Net operating income/(expense) before loan impairment charges and other credit risk provisions Loan impairment (charges)/recoveries and other credit risk provisions Net operating income/(expense) Total operating expenses Operating profit/(loss) Share of profit/(loss) in associates and joint ventures Profit/(loss) before tax Reconciliation of reported and underlying profit before tax Reported profit/(loss) before tax Currency translation adjustmen Own credit spread Gain/(loss) on disposal or dilution Trading contributions of disposals and dilution Underlying profit/(loss) before tax Significant items Revenue DVA adjustments FX gains relating to the sterling ( ) debt issued by HSBC Holdings to HSBC Bank plc Nonqualifying hedges Loss on sale of HFC Bank UK secured loan portfolio Loss on writeoff of goodwill relating to Monaco busines Quarter ended 31 Dec 2013 Banking Banking Interand 1, (204) (44) 2, (1) 1, (116) 41 (7) 45 9 (32) (13) (386) (9) 215 2,102 1,434 1, (596) (9) 4,628 (67) (146) 42 5 (166) 2,035 1,288 1, (596) (9) 4,462 (1,597) (647) (1,318) (333) (1,475) 9 (5,361) (2,071) (899) 4 (1) (1) (1) (2,072) (898) (2,072) (898) (3) 2 (1) (1,536) (342) (137) (137) (2) (8) (8) (10) (131) 3 1 (137) Operating expenses UK customer redress charges Restructuring and related costs Provision for regulatory investigations in GPB UK accounting gain on changes in illhealth benefits UK bank levy Litigation provision in GB&M Europe (Thema/Madoff) Reconciliation of reported and underlying UK profit/(loss) before tax Reported profit/(loss) before tax Currency translation adjustment Own credit spread Gain/(loss) on disposal or dilution Trading contributions of disposals and dilutions Underlying profit/(loss) before tax (247) (80) (68) (395) (67) (8) (41) (907) (907) (237) (59) (65) (67) (915) (1,343) (193) 73 (2,041) (1,266) 9 13 (3) (1) (1) (196) 72 (1,497) (704) Balance sheet data Loans and advances to customers (net) Customer accounts At31 Dec 2013 Banking Banking Interand 177, , ,135 27, , , , ,715 49,790 1, ,933 Note: Riskweighted asset data by geographical region is provided in a separate tab at the end of this document. The financial information on which this supplement is based is unaudited and has been prepared in accordance with HSBC's significan accounting policies as described in the Annual Report and Accounts 2013, with the exception of the adoption of amendments to the offsetting requirements of IAS 32 Financial Instruments: Presentation. The amendments have been applied retrospectively and have not had a material effect on HSBC's financial information. The financial information does not constitute interim financial statements prepared in accordance with IAS 34 Interim Financial Reporting, is not complete and should be read in conjunction with the Annual Report and Accounts 2013, the Interim Management Statement 1Q 2014 and other reports and financial information published by HSBC. All information is 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 due to movements in credit spread on own longterm debt issues by the Group and designated at fair value.

41 Europe Net interest income/(expense) Net fee income/(expense) Net trading income/(expense) Other income/(expense) Net operating income/(expense) before loan impairment charges and other credit risk provisions Loan impairment (charges)/recoveries and other credit risk provisions Net operating income/(expense) Total operating expenses Operating profit/(loss) Share of profit/(loss) in associates and joint ventures Profit/(loss) before tax Reconciliation of reported and underlying profit before tax Reported profit/(loss) before tax Currency translation adjustmen Own credit spread Gain/(loss) on disposal or dilution Trading contributions of disposals and dilution Underlying profit/(loss) before tax Significant items Revenue DVA adjustments FX gains relating to the sterling ( ) debt issued by HSBC Holdings to HSBC Bank plc Nonqualifying hedges Loss on sale of HFC Bank UK secured loan portfolio Loss on writeoff of goodwill relating to Monaco busines Quarter ended 30 Sep 2013 Banking Banking Interand 1, (179) (19) 2, , (3) (245) (65) 9 1,054 (317) ,054 1,287 1, (310) 7 4,865 (93) (291) (118) (16) (518) 1, , (310) 7 4,347 (1,606) (634) (1,115) (486) (542) (7) (4,390) (107) (852) (43) (3) 1 (2) (106) (852) (45) (106) (852) (45) (4) 2 (5) (62) (62) (104) (375) 435 (105) (105) (94) Operating expenses UK customer redress charges Restructuring and related costs Provision for regulatory investigations in GPB UK accounting gain on changes in illhealth benefits UK bank levy Litigation provision in GB&M Europe (Thema/Madoff) Reconciliation of reported and underlying UK profit/(loss) before tax Reported profit/(loss) before tax Currency translation adjustment Own credit spread Gain/(loss) on disposal or dilution Trading contributions of disposals and dilutions Underlying profit/(loss) before tax (294) (68) (66) (428) (15) (27) (8) (1) (22) (73) (198) (198) (309) (95) (74) (199) (22) (699) (795) (2) (49) (49) (330) 669 Balance sheet data Loans and advances to customers (net) Customer accounts At 30 Sep 2013 Banking Banking Interand 167, , ,759 27, , , , ,656 54,182 1, ,564 Note: Riskweighted asset data by geographical region is provided in a separate tab at the end of this document. The financial information on which this supplement is based is unaudited and has been prepared in accordance with HSBC's significan accounting policies as described in the Annual Report and Accounts 2013, with the exception of the adoption of amendments to the offsetting requirements of IAS 32 Financial Instruments: Presentation. The amendments have been applied retrospectively and have not had a material effect on HSBC's financial information. The financial information does not constitute interim financial statements prepared in accordance with IAS 34 Interim Financial Reporting, is not complete and should be read in conjunction with the Annual Report and Accounts 2013, the Interim Management Statement 1Q 2014 and other reports and financial information published by HSBC. All information is 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 due to movements in credit spread on own longterm debt issues by the Group and designated at fair value.