Cover
Cover | 6 Months Ended |
Jun. 30, 2021 | |
Cover [Abstract] | |
Document Type | 6-K |
Entity Registrant Name | HSBC Holdings plc |
Entity Central Index Key | 0001089113 |
Document Period End Date | Jun. 30, 2021 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Consolidated income statement
Consolidated income statement - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |
Profit or loss [abstract] | |||
Net interest income | $ 13,098 | $ 13,069 | $ 14,509 |
– interest income | 17,960 | 18,756 | 23,000 |
– interest expense | (4,862) | (5,687) | (8,491) |
Net fee income | 6,674 | 5,948 | 5,926 |
– fee income | 8,458 | 7,571 | 7,480 |
– fee expense | (1,784) | (1,623) | (1,554) |
Net income from financial instruments held for trading or managed on a fair value basis | 4,184 | 3,814 | 5,768 |
Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss | 2,795 | 3,371 | (1,290) |
Change in fair value of designated debt and related derivatives | (67) | 34 | 197 |
Changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | 548 | 375 | 80 |
Gains less losses from financial investments | 433 | 187 | 466 |
Net insurance premium income | 5,663 | 5,073 | 5,020 |
Other operating income | 155 | 56 | 471 |
Total operating income | 33,483 | 31,927 | 31,147 |
Net insurance claims and benefits paid and movement in liabilities to policyholders | (7,932) | (8,243) | (4,402) |
Net operating income before change in expected credit losses and other credit impairment charges | 25,551 | 23,684 | 26,745 |
Change in expected credit losses and other credit impairment charges | 719 | (1,959) | (6,858) |
Net operating income | 26,270 | 21,725 | 19,887 |
Employee compensation and benefits | (9,610) | (9,562) | (8,514) |
General and administrative expenses | (5,675) | (6,197) | (4,918) |
Depreciation and impairment of property, plant and equipment and right-of-use assets | (1,160) | (1,472) | (1,209) |
Amortisation and impairment of intangible assets | (642) | (674) | (1,845) |
Goodwill impairment | 0 | 0 | (41) |
Total operating expenses | (17,087) | (17,905) | (16,527) |
Operating profit | 9,183 | 3,820 | 3,360 |
Share of profit in associates and joint ventures | 1,656 | 639 | 958 |
Profit before tax | 10,839 | 4,459 | 4,318 |
Tax expense | (2,417) | (1,485) | (1,193) |
Profit for the period | 8,422 | 2,974 | 3,125 |
Attributable to: | |||
– ordinary shareholders of the parent company | 7,276 | 1,921 | 1,977 |
– preference shareholders of the parent company | 7 | 45 | 45 |
– other equity holders | 666 | 624 | 617 |
– non-controlling interests | 473 | 384 | 486 |
Profit for the period | $ 8,422 | $ 2,974 | $ 3,125 |
Basic earnings per ordinary share (in dollars per share) | $ 0.36 | $ 0.10 | $ 0.10 |
Diluted earnings per ordinary share (in dollars per share) | $ 0.36 | $ 0.09 | $ 0.10 |
Consolidated statement of compr
Consolidated statement of comprehensive income - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |
Statement of comprehensive income [abstract] | |||
Profit for the period | $ 8,422 | $ 2,974 | $ 3,125 |
Items that will be reclassified subsequently to profit or loss when specific conditions are met: | |||
Debt instruments at fair value through other comprehensive income | (1,368) | 3 | 1,747 |
– fair value gains/(losses) | (1,392) | 293 | 2,654 |
– fair value gains transferred to the income statement on disposal | (375) | (214) | (454) |
– expected credit recoveries/(losses) recognised in the income statement | (26) | (61) | 109 |
– income taxes | 425 | (15) | (562) |
Cash flow hedges | (238) | (5) | 476 |
– fair value gains/(losses) | 877 | (412) | 255 |
– fair value losses/(gains) reclassified to the income statement | (1,195) | 405 | 364 |
– income taxes and other movements | 80 | 2 | (143) |
Share of other comprehensive income/(expense) of associates and joint ventures | 104 | 42 | (115) |
– share for the period | 104 | 42 | (115) |
Exchange differences | (449) | 9,407 | (4,552) |
Items that will not be reclassified subsequently to profit or loss: | |||
Remeasurement of defined benefit asset/(liability) | (747) | (348) | 1,182 |
– before income taxes | (775) | (480) | 1,703 |
– income taxes | 28 | 132 | (521) |
Changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk | 155 | (2,187) | 2,354 |
– before income taxes | (2) | (2,746) | 2,936 |
– income taxes | 157 | 559 | (582) |
Equity instruments designated at fair value through other comprehensive income | (348) | 335 | (123) |
– fair value gains/(losses) | (345) | 334 | (122) |
– income taxes | (3) | 1 | (1) |
Effects of hyperinflation | 166 | 121 | 72 |
Other comprehensive income/(expense) for the period, net of tax | (2,725) | 7,368 | 1,041 |
Total comprehensive income for the period | 5,697 | 10,342 | 4,166 |
Attributable to: | |||
– ordinary shareholders of the parent company | 4,612 | 9,103 | 3,043 |
– preference shareholders of the parent company | 7 | 45 | 45 |
– other equity holders | 666 | 624 | 617 |
– non-controlling interests | 412 | 570 | 461 |
Total comprehensive income for the period | $ 5,697 | $ 10,342 | $ 4,166 |
Consolidated balance sheet
Consolidated balance sheet - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and balances at central banks | $ 393,559 | $ 304,481 |
Items in the course of collection from other banks | 9,406 | 4,094 |
Hong Kong Government certificates of indebtedness | 41,880 | 40,420 |
Trading assets | 260,250 | 231,990 |
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | 49,120 | 45,553 |
Derivatives | 209,516 | 307,726 |
Loans and advances to banks | 86,886 | 81,616 |
Loans and advances to customers | 1,037,987 | |
Reverse repurchase agreements – non-trading | 201,714 | 230,628 |
Financial investments | 434,576 | 490,693 |
Prepayments, accrued income and other assets | 175,155 | 156,412 |
Current tax assets | 405 | 954 |
Interests in associates and joint ventures | 26,684 | |
Goodwill and intangible assets | 20,703 | 20,443 |
Deferred tax assets | 4,615 | 4,483 |
Total assets | 2,984,164 | |
Liabilities | ||
Hong Kong currency notes in circulation | 41,880 | 40,420 |
Deposits by banks | 100,448 | 82,080 |
Customer accounts | 1,642,780 | |
Repurchase agreements – non-trading | 112,798 | 111,901 |
Items in the course of transmission to other banks | 15,100 | 4,343 |
Trading liabilities | 89,637 | 75,266 |
Financial liabilities designated at fair value | 151,686 | 157,439 |
Derivatives | 200,156 | 303,001 |
Debt securities in issue | 84,218 | 95,492 |
Accruals, deferred income and other liabilities | 164,800 | 128,624 |
Current tax liabilities | 929 | 690 |
Liabilities under insurance contracts | 110,572 | 107,191 |
Provisions | 2,814 | 3,678 |
Deferred tax liabilities | 4,338 | 4,313 |
Subordinated liabilities | 20,774 | 21,951 |
Total liabilities | 2,769,241 | 2,779,169 |
Equity | ||
Called up share capital | 10,376 | 10,347 |
Share premium account | 14,600 | 14,277 |
Other equity instruments | 22,414 | 22,414 |
Other reserves | 6,509 | 8,833 |
Retained earnings | 144,319 | 140,572 |
Total shareholders’ equity | 198,218 | 196,443 |
Non-controlling interests | 8,546 | 8,552 |
Total equity | 206,764 | 204,995 |
Total liabilities and equity | $ 2,976,005 | $ 2,984,164 |
Consolidated statement of cash
Consolidated statement of cash flows - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | ||
Cash flows from operating activities | ||||
Profit before tax | $ 10,839 | $ 4,459 | $ 4,318 | |
Adjustments for non-cash items: | ||||
Depreciation, amortisation and impairment | 1,802 | 2,146 | 3,095 | |
Net gain from investing activities | (485) | (136) | (405) | |
Share of profits in associates and joint ventures | (1,656) | (639) | (958) | |
Change in expected credit losses gross of recoveries and other credit impairment charges | (484) | 2,221 | 6,875 | |
Provisions including pensions | 301 | 887 | 277 | |
Share-based payment expense | 254 | 238 | 195 | |
Other non-cash items included in profit before tax | 205 | (188) | (718) | |
Change in operating assets | (3,811) | (23,788) | 11,185 | |
Change in operating liabilities | 49,015 | 68,164 | 134,734 | |
Elimination of exchange differences | [1] | 5,212 | (29,524) | 3,775 |
Dividends received from associates | 10 | 641 | 120 | |
Contributions paid to defined benefit plans | (342) | (160) | (335) | |
Tax paid | (997) | (1,886) | (2,373) | |
Net cash from operating activities | 59,863 | 22,435 | 159,785 | |
Cash flows from investing activities | ||||
Purchase of financial investments | (263,198) | (224,839) | (271,830) | |
Proceeds from the sale and maturity of financial investments | 298,596 | 251,257 | 225,733 | |
Net cash flows from the purchase and sale of property, plant and equipment | (375) | (999) | (447) | |
Net cash flows from purchase of customer and loan portfolios | 1,063 | 1,118 | 244 | |
Net investment in intangible assets | (1,011) | (1,107) | (957) | |
Net cash flow on (purchase)/disposal of subsidiaries, businesses, associates and joint ventures | (84) | (194) | (409) | |
Net cash from investing activities | 34,991 | 25,236 | (47,666) | |
Cash flows from financing activities | ||||
Issue of ordinary share capital and other equity instruments | 1,996 | 1,497 | 0 | |
Net sales/(purchases) of own shares for market-making and investment purposes | 1 | (133) | (48) | |
Redemption of preference shares and other equity instruments | (3,450) | 0 | (398) | |
Subordinated loan capital repaid | (852) | (2,000) | (1,538) | |
Dividends paid to shareholders of the parent company and non-controlling interests | (4,121) | (819) | (1,204) | |
Net cash from financing activities | (6,426) | (1,455) | (3,188) | |
Net increase/(decrease) in cash and cash equivalents | 88,428 | 46,216 | 108,931 | |
Cash and cash equivalents at the beginning of the period | 468,323 | 395,218 | 293,742 | |
Exchange differences in respect of cash and cash equivalents | (4,818) | 26,889 | (7,455) | |
Cash and cash equivalents at the end of the period | $ 551,933 | $ 468,323 | $ 395,218 | |
[1] | Adjustments 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. |
Consolidated statement of cas_2
Consolidated statement of cash flows (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |
Statement of cash flows [abstract] | |||
Interest received | $ 19,761 | $ 20,419 | $ 25,159 |
Interest paid | 6,552 | 7,167 | 10,573 |
Dividends received | $ 801 | $ 711 | $ 447 |
Consolidated statement of chang
Consolidated statement of changes in equity - USD ($) $ in Millions | Total | Total share- holders’ equity | Called up share capital and share premium | Other equity instru- ments | Retained earnings | Financial assets at FVOCI reserve | Cash flow hedging reserve | Foreign exchange reserve | Merger and other reserves | Non- controlling interests | |||||
Equity beginning of period at Dec. 31, 2019 | $ 192,668 | $ 183,955 | $ 24,278 | $ 20,871 | $ 136,679 | $ (108) | $ (2) | $ (25,133) | $ 27,370 | $ 8,713 | |||||
Profit for the period | 3,125 | 2,639 | 2,639 | 486 | |||||||||||
Other comprehensive income/(expense) for the period, net of tax | 1,041 | 1,066 | 3,506 | 1,654 | 465 | (4,559) | (25) | ||||||||
– debt instruments at fair value through other comprehensive income | 1,747 | 1,735 | 1,735 | 12 | |||||||||||
– equity instruments designated at fair value through other comprehensive income | (123) | (81) | (81) | (42) | |||||||||||
– cash flow hedges | 476 | 465 | 465 | 11 | |||||||||||
– changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk | 2,354 | 2,354 | 2,354 | ||||||||||||
– remeasurement of defined benefit asset/liability | 1,182 | 1,195 | 1,195 | (13) | |||||||||||
– share of other comprehensive income of associates and joint ventures | (115) | (115) | (115) | ||||||||||||
– effects of hyperinflation | 72 | 72 | 72 | ||||||||||||
– exchange differences | (4,552) | (4,559) | (4,559) | 7 | |||||||||||
Total comprehensive income for the period | 4,166 | 3,705 | 6,145 | 1,654 | 465 | (4,559) | 461 | ||||||||
Shares issued under employee remuneration and share plans | 7 | 7 | 336 | (329) | |||||||||||
Dividends to shareholders | (1,204) | (662) | (662) | (542) | |||||||||||
Cost of share-based payment arrangements | 195 | 195 | 195 | ||||||||||||
Other movements | (611) | (164) | 43 | (219) | 12 | (447) | |||||||||
Equity end of period at Jun. 30, 2020 | 195,221 | 187,036 | 24,614 | 20,914 | 141,809 | 1,558 | 463 | (29,692) | 27,370 | 8,185 | |||||
Equity beginning of period at Dec. 31, 2019 | 192,668 | 183,955 | 24,278 | 20,871 | 136,679 | (108) | (2) | (25,133) | 27,370 | 8,713 | |||||
Equity end of period at Dec. 31, 2020 | 204,995 | 196,443 | 24,624 | 22,414 | 140,572 | 1,816 | 457 | (20,375) | 26,935 | 8,552 | |||||
Equity beginning of period at Jun. 30, 2020 | 195,221 | 187,036 | 24,614 | 20,914 | 141,809 | 1,558 | 463 | (29,692) | 27,370 | 8,185 | |||||
Profit for the period | 2,974 | 2,590 | 2,590 | 384 | |||||||||||
Other comprehensive income/(expense) for the period, net of tax | 7,368 | 7,182 | (2,388) | 259 | (6) | 9,317 | 186 | ||||||||
– debt instruments at fair value through other comprehensive income | 3 | 11 | 11 | (8) | |||||||||||
– equity instruments designated at fair value through other comprehensive income | 335 | 248 | 248 | 87 | |||||||||||
– cash flow hedges | (5) | (6) | (6) | 1 | |||||||||||
– changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk | (2,187) | (2,187) | (2,187) | ||||||||||||
– remeasurement of defined benefit asset/liability | (348) | (364) | (364) | 16 | |||||||||||
– share of other comprehensive income of associates and joint ventures | 42 | 42 | 42 | ||||||||||||
– effects of hyperinflation | 121 | 121 | 121 | ||||||||||||
– exchange differences | 9,407 | 9,317 | 9,317 | 90 | |||||||||||
Total comprehensive income for the period | 10,342 | 9,772 | 202 | 259 | (6) | 9,317 | 570 | ||||||||
Shares issued under employee remuneration and share plans | 0 | 0 | 10 | (10) | |||||||||||
Capital securities issued | [1] | 1,497 | 1,497 | 1,500 | (3) | ||||||||||
Dividends to shareholders | (819) | (669) | (669) | (150) | |||||||||||
Redemption of securities | [2] | (1,450) | (1,450) | (1,450) | |||||||||||
Transfers | 0 | [2] | 0 | [2] | 435 | [3] | (435) | [3] | |||||||
Cost of share-based payment arrangements | 239 | 239 | 239 | ||||||||||||
Other movements | (35) | 18 | 19 | (1) | (53) | ||||||||||
Equity end of period at Dec. 31, 2020 | 204,995 | 196,443 | 24,624 | 22,414 | 140,572 | 1,816 | 457 | (20,375) | 26,935 | 8,552 | |||||
Profit for the period | 8,422 | 7,949 | 7,949 | 473 | |||||||||||
Other comprehensive income/(expense) for the period, net of tax | (2,725) | (2,664) | (337) | (1,629) | (234) | (464) | (61) | ||||||||
– debt instruments at fair value through other comprehensive income | (1,368) | (1,351) | (1,351) | (17) | |||||||||||
– equity instruments designated at fair value through other comprehensive income | (348) | (278) | (278) | (70) | |||||||||||
– cash flow hedges | (238) | (234) | (234) | (4) | |||||||||||
– changes in fair value of financial liabilities designated at fair value upon initial recognition arising from changes in own credit risk | 155 | 155 | 155 | ||||||||||||
– remeasurement of defined benefit asset/liability | (747) | (762) | (762) | 15 | |||||||||||
– share of other comprehensive income of associates and joint ventures | 104 | 104 | 104 | ||||||||||||
– effects of hyperinflation | 166 | 166 | 166 | ||||||||||||
– exchange differences | (449) | (464) | (464) | 15 | |||||||||||
Total comprehensive income for the period | 5,697 | 5,285 | 7,612 | (1,629) | (234) | (464) | 412 | ||||||||
Shares issued under employee remuneration and share plans | 17 | 17 | 352 | (335) | |||||||||||
Capital securities issued | [1] | 1,996 | 1,996 | 2,000 | (4) | ||||||||||
Dividends to shareholders | (4,121) | (3,732) | (3,732) | (389) | |||||||||||
Redemption of securities | [2] | (2,000) | (2,000) | (2,000) | |||||||||||
Cost of share-based payment arrangements | 254 | 254 | 254 | ||||||||||||
Other movements | (74) | (45) | (48) | 3 | (29) | ||||||||||
Equity end of period at Jun. 30, 2021 | $ 206,764 | $ 198,218 | $ 24,976 | $ 22,414 | $ 144,319 | $ 190 | $ 223 | $ (20,839) | $ 26,935 | $ 8,546 | |||||
[1] | During 2021, HSBC Holdings issued $2,000m of Additional Tier1 instruments on which there were $4m of external issue costs. In 2020, HSBC Holdings issued $1,500m of perpetual subordinated contingent convertible securities. | ||||||||||||||
[2] | During 2021, HSBC Holdings redeemed $2,000m 6.875% perpetual subordinated contingent convertible securities. In 2020, HSBC Holdings called and later redeemed $1,450m 6.20% non-cumulative US dollar preference shares. | ||||||||||||||
[3] | Permitted transfers from the merger reserve to retained earnings were made when the investment in HSBC Overseas Holdings (UK) Limited was previously impaired. In 2020, an additional impairment of $435m was recognised and a permitted transfer of this amount was made from the merger reserve to retained earnings. |
Consolidated statement of cha_2
Consolidated statement of changes in equity (Parenthetical) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | ||
Reduction of issued capital | $ 2,000,000,000 | [1] | |
HSBC Overseas Holdings (UK) Limited | |||
Impairment loss (reversal of impairment loss) recognised in profit or loss | $ 435,000,000 | ||
Preference shares | |||
Reduction of issued capital | $ 1,450,000,000 | ||
Other equity instruments interest rate | 6.20% | ||
HSBC Holdings | Tier 1 Instruments | |||
Notional amount | 2,000,000,000 | ||
Payments for debt issue costs | 4,000,000 | ||
HSBC Holdings | Contingent convertible securities | |||
Notional amount | $ 1,500,000,000 | ||
Reduction of issued capital | $ 2,000,000,000 | ||
Other equity instruments interest rate | 6.875% | ||
[1] | During 2021, HSBC Holdings redeemed $2,000m 6.875% perpetual subordinated contingent convertible securities. In 2020, HSBC Holdings called and later redeemed $1,450m 6.20% non-cumulative US dollar preference shares. |
Basis of preparation and signif
Basis of preparation and significant accounting policies | 6 Months Ended |
Jun. 30, 2021 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Basis of preparation and significant accounting policies | 1 Basis of preparation and significant accounting policies (a) Compliance with International Financial Reporting Standards Our interim condensed financial statements have been prepared on the basis of the policies set out in the 2020 annual financial statements and in accordance with UK adopted IAS 34 ‘Interim Financial Reporting’, IAS 34 ‘Interim Financial Reporting’ as issued by the International Accounting Standards Board (‘IASB’), IAS 34 ‘Interim Financial Reporting’ as adopted by the EU and the Disclosure Guidance and Transparency Rules sourcebook of the UK’s Financial Conduct Authority. Therefore, they include an explanation of events and transactions that are significant to an understanding of the changes in HSBC’s financial position and performance since the end of 2020. These financial statements should be read in conjunction with the Annual Report and Accounts 2020, which were prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union, and International Financial Reporting Standards (‘IFRSs’) as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee. At 30 June 2021, there were no unendorsed standards effective for the half-year to 30 June 2021 affecting these financial statements, and there was no difference between IFRSs adopted by the UK, IFRSs as adopted by the EU and IFRSs issued by the IASB in terms of their application to HSBC. The financial statements for HSBC for the year ended 31 December 2021 will be prepared in accordance with IFRS as adopted by the UK, international financial reporting standards adopted by the EU and IFRSs as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee. Standards applied during the half-year to 30 June 2021 There were no new standards or amendments to standards that had an effect on these interim condensed financial statements. (b) Use of estimates and judgements Management believes that our critical accounting estimates and judgements are those that relate to impairment of amortised cost and FVOCI debt financial assets, the valuation of financial instruments, deferred tax assets, provisions for liabilities, defined benefit obligations, interests in associates, impairment of non-financial assets and post-employment benefits. There were no changes in the current period to the critical accounting estimates and judgements applied in 2020, which are stated on pages 77 and 289 of the Annual Report and Accounts 2020. (c) Composition of the Group There were no material changes in the composition of the Group in the half-year to 30 June 2021. For further details of future business disposals, see Note 15 ‘Business disposals’. (d) Future accounting developments IFRS 17 ‘Insurance Contracts’ was issued in May 2017, with amendments to the standard issued in June 2020. It has not been adopted for use in the UK or in the EU. The standard sets out the requirements that an entity should apply in accounting for insurance contracts it issues and reinsurance contracts it holds. Following the amendments, IFRS 17 is effective from 1 January 2023. The Group is in the process of implementing IFRS 17. Industry practice and interpretation of the standard are still developing. Therefore, the likely impact of its implementation remains uncertain. However, compared with the Group’s current accounting policy for insurance, there will be no PVIF asset recognised; rather the estimated future profit will be included in the measurement of the insurance contract liability as the contractual service margin and gradually recognised in revenue as services are provided over the duration of the insurance contract. (e) Going concern The financial statements are prepared on a going concern basis, as the Directors are satisfied that the Group and parent company have the resources to continue in business for the foreseeable future. In making this assessment, the Directors have considered a wide range of information relating to present and future conditions, including future projections of profitability, cash flows, capital requirements and capital resources. These considerations include stressed scenarios that reflect the continuing uncertainty that the global Covid-19 pandemic has had on HSBC’s operations, as well as considering potential impacts from other top and emerging risks, and the related impact on profitability, capital and liquidity. (f) Accounting policies The accounting policies that we applied for these interim condensed consolidated financial statements are consistent with those described on pages 288 to 299 of the Annual Report and Accounts 2020 |
Net fee income
Net fee income | 6 Months Ended |
Jun. 30, 2021 | |
Analysis of income and expense [abstract] | |
Net fee income | 2 Net fee income Half-year to 30 Jun 30 Jun 31 Dec 2021 2020 2020 $m $m $m Net fee income by product Funds under management 1,304 1,113 1,176 Cards 1,035 954 995 Broking income 895 743 796 Credit facilities 827 726 733 Account services 714 649 644 Unit trusts 603 455 444 Underwriting 576 552 463 Global custody 500 446 488 Remittances 361 325 352 Imports/exports 300 288 289 Insurance agency commission 176 171 154 Other 1,167 1,058 1,037 Fee income 8,458 7,480 7,571 Less: fee expense (1,784) (1,554) (1,623) Net fee income 6,674 5,926 5,948 Net fee income by global business Wealth and Personal Banking 3,042 2,691 2,717 Commercial Banking 1,786 1,630 1,595 Global Banking and Markets 1,857 1,608 1,659 Corporate Centre (11) (3) (23) |
Dividends
Dividends | 6 Months Ended |
Jun. 30, 2021 | |
Interim Financial Reporting [Abstract] | |
Dividends | 3 Dividends On 2 August 2021, the Directors approved an interim dividend for the 2021 half-year of $0.07 per ordinary share in respect of the financial year ending 31 December 2021. This distribution amounts to approximately $1,430m and will be payable on 30 September 2021. No liability is recognised in the financial statements in respect of these dividends. Dividends paid to shareholders of HSBC Holdings plc Half-year to 30 Jun 2021 30 Jun 2020 31 Dec 2020 Per share Total Settled in scrip Per share Total Settled in scrip Per share Total Settled in scrip $ $m $m $ $m $m $ $m $m Dividends paid on ordinary shares In respect of previous year: – fourth interim dividend 0.15 3,059 — — — — — — — In respect of current year: – first interim dividend — — — — — — — — — – second interim dividend — — — — — — — — — – third interim dividend — — — — — — — — — Total 0.15 3,059 — — — — — — — Total dividends on preference shares classified as equity (paid quarterly) 1 4.99 7 31.00 45 31.00 45 Total coupons on capital securities classified as equity 666 617 624 Dividends to shareholders 3,732 662 669 1 HSBC Holdings called $1,450m 6.20% non-cumulative US dollar preference shares on 10 December 2020. The security was redeemed and cancelled on 13 January 2021. Total coupons on capital securities classified as equity Half-year to 30 Jun 30 Jun 31 Dec 2021 2020 2020 First call date Per security $m $m $m Perpetual subordinated contingent convertible securities 1 – $2,000m issued at 6.875% 2 Jun 2021 $68.750 69 69 69 – $2,250m issued at 6.375% Sep 2024 $63.750 72 72 71 – $2,450m issued at 6.375% Mar 2025 $63.750 78 78 78 – $3,000m issued at 6.000% May 2027 $60.000 90 90 90 – $2,350m issued at 6.250% Mar 2023 $62.500 73 73 74 – $1,800m issued at 6.500% Mar 2028 $65.000 59 59 58 – $1,500m issued at 4.600% 3 Dec 2030 $46.000 35 — — – $1,000m issued at 4.000% 4 Mar 2026 $40.000 — — — – $1,000m issued at 4.700% 5 Mar 2031 $47.000 — — — – €1,500m issued at 5.250% Sep 2022 €52.500 47 44 46 – €1,000m issued at 6.000% Sep 2023 €60.000 34 33 34 – €1,250m issued at 4.750% July 2029 €47.500 36 33 34 – £1,000m issued at 5.875% Sep 2026 £58.750 41 36 38 – SGD1,000m issued at 4.700% Jun 2022 SGD47.000 18 17 18 – SGD750m issued at 5.000% Sep 2023 SGD50.000 14 13 14 Total 666 617 624 1 Discretionary coupons are paid twice a year on the perpetual subordinated contingent convertible securities, in denominations of 1,000 per security in each security’s issuance currency. 2 This security was called by HSBC Holdings on 15 April 2021 and was redeemed and cancelled on 1 June 2021. 3 This security was issued by HSBC Holdings on 17 December 2020. The first call date commences six calendar months prior to the reset date of 4 This security was issued by HSBC Holdings on 9 March 2021. The first call date commences six calendar months prior to the reset date of 9 September 2026. 5 This security was issued by HSBC Holdings on 9 March 2021. The first call date commences six calendar months prior to the reset date of 9 September 2031. |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings per share [abstract] | |
Earnings per share | 4 Earnings per share Basic earnings per ordinary share is calculated by dividing the profit attributable to ordinary shareholders of the parent company by the weighted average number of ordinary shares outstanding, excluding own shares held. Diluted earnings per ordinary share is calculated by dividing the basic earnings, which require no adjustment for the effects of dilutive potential ordinary shares, by the weighted average number of ordinary shares outstanding, excluding own shares held, plus the weighted average number of ordinary shares that would be issued on conversion of dilutive potential ordinary shares. Profit attributable to ordinary shareholders of the parent company Half-year to 30 Jun 30 Jun 31 Dec 2021 2020 2020 $m $m $m Profit attributable to shareholders of the parent company 7,949 2,639 2,590 Dividend payable on preference shares classified as equity (7) (45) (45) Coupon payable on capital securities classified as equity (666) (617) (624) Profit attributable to ordinary shareholders of the parent company 7,276 1,977 1,921 Basic and diluted earnings per share Half-year to 30 Jun 2021 30 Jun 2020 31 Dec 2020 Profit Number Amount per share Profit Number Amount per share Profit Number Amount per share $m (millions) $ $m (millions) $ $m (millions) $ Basic 1 7,276 20,211 0.36 1,977 20,162 0.10 1,921 20,176 0.10 Effect of dilutive potential ordinary shares 97 58 63 Diluted 1 7,276 20,308 0.36 1,977 20,220 0.10 1,921 20,239 0.09 |
Segmental analysis
Segmental analysis | 6 Months Ended |
Jun. 30, 2021 | |
Operating Segments [Abstract] | |
Segmental analysis | 5 Segmental analysis The Group Chief Executive, supported by the rest of the Group Executive Committee (‘GEC’), is considered the Chief Operating Decision Maker (‘CODM’) for the purposes of identifying the Group’s reportable segments. Global business results are assessed by the CODM on the basis of adjusted performance that removes the effects of significant items and currency translation from reported results. Therefore, we present these results on an adjusted basis as required by IFRSs. The 2020 adjusted performance information is presented on a constant currency basis. The income statements for the half-years to 30 June 2020 and 31 December 2020 are converted at the average rates of exchange for 2021, and the balance sheets at 30 June 2020 and 31 December 2020 at the prevailing rates of exchange on 30 June 2021. Our operations are closely integrated and, accordingly, the presentation of data includes internal allocations of certain items of income and expense. These allocations include the costs of certain support services and global functions to the extent that they can be meaningfully attributed to global businesses. While such allocations have been made on a systematic and consistent basis, they necessarily involve a degree of subjectivity. Costs that are not allocated to global businesses are included in Corporate Centre. Where relevant, income and expense amounts presented include the results of inter-segment funding along with inter-company and inter-business line transactions. All such transactions are undertaken on arm’s length terms. The intra-Group elimination items for the global businesses are presented in Corporate Centre. Our global businesses We provide a comprehensive range of banking and related financial services to our customers in our three global businesses. The products and services offered to customers are organised by these global businesses: • Wealth and Personal Banking (‘WPB’) provides a full range of retail banking and wealth products to our customers from personal banking to ultra high net worth individuals. Typically, customer offerings include retail banking products, such as current and savings accounts, mortgages and personal loans, credit cards, debit cards and local and international payment services. We also provide wealth management services, including insurance and investment products, global asset management services, investment management and Private Wealth Solutions for customers with more sophisticated and international requirements. • Commercial Banking (‘CMB’) offers a broad range of products and services to serve the needs of our commercial customers, including small and medium-sized enterprises, mid-market enterprises and corporates. These include credit and lending, international trade and receivables finance, treasury management and liquidity solutions (payments and cash management and commercial cards), commercial insurance and investments. CMB also offers customers access to products and services offered by other global businesses, such as Global Banking and Markets, which include foreign exchange products, raising capital on debt and equity markets and advisory services. • Global Banking and Markets (‘GBM’) provides tailored financial solutions to major government, corporate and institutional clients and private investors worldwide. The client-focused business lines deliver a full range of banking capabilities, including financing, advisory and transaction services, a markets business that provides services in credit, rates, foreign exchange, equities, money markets and securities services, and principal investment activities. HSBC adjusted profit before tax and balance sheet data Half-year to 30 Jun 2021 Wealth and Personal Banking Commercial Global Corporate Centre Total $m $m $m $m $m Net operating income/(expense) before change in expected credit losses and other credit impairment charges 1 11,401 6,651 7,878 (133) 25,797 – external 11,168 6,626 8,631 (628) 25,797 – inter-segment 233 25 (753) 495 — of which: net interest income/(expense) 7,067 4,366 2,024 (378) 13,079 Change in expected credit losses and other credit impairment (charges)/recoveries 52 249 414 4 719 Net operating income 11,453 6,900 8,292 (129) 26,516 Total operating expenses (7,600) (3,525) (4,985) (112) (16,222) Operating profit 3,853 3,375 3,307 (241) 10,294 Share of profit in associates and joint ventures 11 1 — 1,644 1,656 Adjusted profit before tax 3,864 3,376 3,307 1,403 11,950 % % % % % Share of HSBC’s adjusted profit before tax 32.3 28.3 27.7 11.7 100.0 Adjusted cost efficiency ratio 66.7 53.0 63.3 (84.2) 62.9 Adjusted balance sheet data $m $m $m $m $m Loans and advances to customers (net) 491,320 350,945 216,098 1,148 1,059,511 Interests in associates and joint ventures 478 15 128 28,088 28,709 Total external assets 912,479 624,042 1,258,694 180,790 2,976,005 Customer accounts 841,257 485,689 341,242 903 1,669,091 HSBC adjusted profit before tax and balance sheet data (continued) Half-year to 30 Jun 2020 Wealth and Personal Banking Commercial Global Corporate Centre Total $m $m $m $m $m Net operating income before change in expected credit losses and other credit impairment charges 1 11,694 7,326 8,574 3 27,597 – external 10,071 7,742 10,511 (727) 27,597 – inter-segment 1,623 (416) (1,937) 730 — of which: net interest income/(expense) 8,331 5,080 2,435 (804) 15,042 Change in expected credit losses and other credit impairment charges (2,328) (3,751) (1,195) (13) (7,287) Net operating income/(expense) 9,366 3,575 7,379 (10) 20,310 Total operating expenses (7,695) (3,457) (4,813) 260 (15,705) Operating profit/(loss) 1,671 118 2,566 250 4,605 Share of profit in associates and joint ventures (8) — — 1,057 1,049 Adjusted profit before tax 1,663 118 2,566 1,307 5,654 % % % % % Share of HSBC’s adjusted profit before tax 29.4 2.1 45.4 23.1 100.0 Adjusted cost efficiency ratio 65.8 47.2 56.1 (8,666.7) 56.9 Adjusted balance sheet data $m $m $m $m $m Loans and advances to customers (net) 456,263 362,094 254,126 1,365 1,073,848 Interests in associates and joint ventures 428 15 140 25,659 26,242 Total external assets 856,599 579,865 1,472,925 173,932 3,083,321 Customer accounts 810,137 441,427 357,082 738 1,609,384 Half-year to 31 Dec 2020 Net operating income/(expense) before change in expected credit losses and other credit impairment charges 1 11,019 6,489 7,323 (308) 24,523 – external 10,534 6,468 8,257 (736) 24,523 – inter-segment 485 21 (934) 428 — of which: net interest income/(expense) 7,231 4,545 2,184 (533) 13,427 Change in expected credit losses and other credit impairment (charges)/recoveries (685) (1,265) (95) 14 (2,031) Net operating income/(expense) 10,334 5,224 7,228 (294) 22,492 Total operating expenses (7,871) (3,491) (4,916) (673) (16,951) Operating profit/(loss) 2,463 1,733 2,312 (967) 5,541 Share of profit in associates and joint ventures 15 (1) — 1,125 1,139 Adjusted profit before tax 2,478 1,732 2,312 158 6,680 % % % % % Share of HSBC’s adjusted profit before tax 37.1 25.9 34.6 2.4 100.0 Adjusted cost efficiency ratio 71.4 53.8 67.1 (218.5) 69.1 Adjusted balance sheet data $m $m $m $m $m Loans and advances to customers (net) 469,218 342,951 223,395 1,254 1,036,818 Interests in associates and joint ventures 446 14 141 26,261 26,862 Total external assets 882,042 570,369 1,342,544 186,633 2,981,588 Customer accounts 834,376 470,686 335,977 609 1,641,648 1 Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue. Reported external net operating income is attributed to countries and territories on the basis of the location of the branch responsible for reporting the results or advancing the funds: Half-year to 30 Jun 2021 30 Jun 2020 31 Dec 2020 $m $m $m Reported external net operating income by country/territory 1 25,551 26,745 23,684 – UK 5,610 4,166 4,997 – Hong Kong 7,476 8,703 7,080 – US 1,993 2,435 2,039 – France 1,228 697 1,056 – other countries 9,244 10,744 8,512 1 Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue. Adjusted results reconciliation Half-year to 30 Jun 2021 30 Jun 2020 31 Dec 2020 Adjusted Significant items Reported Adjusted Currency translation Significant items Reported Adjusted Currency translation Significant items Reported $m $m $m $m $m $m $m $m $m $m $m Revenue 1 25,797 (246) 25,551 27,597 (1,117) 265 26,745 24,523 (630) (209) 23,684 ECL 719 — 719 (7,287) 429 — (6,858) (2,031) 72 — (1,959) Operating expenses (16,222) (865) (17,087) (15,705) 887 (1,709) (16,527) (16,951) 471 (1,425) (17,905) Share of profit in associates and joint ventures 1,656 — 1,656 1,049 (91) — 958 1,139 (38) (462) 639 Profit before tax 11,950 (1,111) 10,839 5,654 108 (1,444) 4,318 6,680 (125) (2,096) 4,459 1 Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue. Adjusted balance sheet reconciliation At 30 Jun 2021 31 Dec 2020 Reported and adjusted Adjusted Currency translation Reported $m $m $m $m Loans and advances to customers (net) 1,059,511 1,036,818 1,169 1,037,987 Interests in associates and joint ventures 28,709 26,862 (178) 26,684 Total external assets 2,976,005 2,981,588 2,576 2,984,164 Customer accounts 1,669,091 1,641,648 1,132 1,642,780 Adjusted profit reconciliation Half-year to 30 Jun 2021 30 Jun 2020 31 Dec 2020 $m $m $m Adjusted profit before tax 11,950 5,654 6,680 Significant items (1,111) (1,444) (2,096) – customer redress programmes (revenue) 18 26 (47) – disposals, acquisitions and investment in new businesses (revenue) — (8) (2) – fair value movements on financial instruments 1 (194) 299 (35) – restructuring and other related costs (revenue) 2 (70) (49) (121) – customer redress programmes (operating expenses) (17) (50) 104 – impairment of goodwill and other intangible assets — (1,025) (65) – past service costs of guaranteed minimum pension benefits equalisation — — (17) – restructuring and other related costs (operating expenses) 3 (848) (505) (1,403) – settlements and provisions in connection with legal and other regulatory matters — (5) (7) – impairment of goodwill (share of profit in associates and joint ventures) 4 — — (462) – currency translation on significant items (127) (41) Currency translation 108 (125) Reported profit before tax 10,839 4,318 4,459 1 Includes fair value movements on non-qualifying hedges and debt valuation adjustments on derivatives. 2 Comprises losses associated with the RWA reduction commitments and gains relating to the business update in February 2020. 3 Includes impairment of software intangible assets of $173m in the six months to 30 June 2020 and $197m for the impairment of tangible assets in the six months to 31 December 2020. 4 During the six months to 31 December 2020, The Saudi British Bank (’SABB’), an associate of HSBC, impaired the goodwill that arose following the merger with Alawwal bank in 2019. HSBC’s post-tax share of the goodwill impairment was $462m. |
Fair values of financial instru
Fair values of financial instruments carried at fair value | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurement [Abstract] | |
Fair values of financial instruments carried at fair value | 6 Fair values of financial instruments carried at fair value The accounting policies, control framework and hierarchy used to determine fair values at 30 June 2021 are consistent with those applied for the Annual Report and Accounts 2020 . Financial instruments carried at fair value and bases of valuation Valuation techniques Quoted Using With significant Total Recurring fair value measurements $m $m $m $m At 30 Jun 2021 Assets Trading assets 186,338 71,403 2,509 260,250 Financial assets designated and otherwise mandatorily measured at fair value through profit or loss 20,468 15,664 12,988 49,120 Derivatives 1,630 205,209 2,677 209,516 Financial investments 253,593 93,166 3,243 350,002 Liabilities Trading liabilities 61,676 27,104 857 89,637 Financial liabilities designated at fair value 1,365 143,084 7,237 151,686 Derivatives 1,098 195,637 3,421 200,156 At 31 Dec 2020 Assets Trading assets 167,980 61,511 2,499 231,990 Financial assets designated and otherwise mandatorily measured at fair value through profit or loss 19,711 14,365 11,477 45,553 Derivatives 2,602 302,454 2,670 307,726 Financial investments 303,654 94,746 3,654 402,054 Liabilities Trading liabilities 53,290 21,814 162 75,266 Financial liabilities designated at fair value 1,267 150,866 5,306 157,439 Derivatives 1,788 297,025 4,188 303,001 Transfers between Level 1 and Level 2 fair values Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value Derivatives Trading liabilities Designated at fair value Derivatives $m $m $m $m $m $m $m At 30 Jun 2021 Transfers from Level 1 to Level 2 5,421 3,601 150 103 43 — 212 Transfers from Level 2 to Level 1 4,774 2,381 645 — 530 — — At 31 Dec 2020 Transfers from Level 1 to Level 2 4,514 3,891 245 — 155 7,414 — Transfers from Level 2 to Level 1 7,764 5,517 328 1 433 — — Fair value adjustments We adopt the use of fair value adjustments when we take into consideration additional factors not incorporated within the valuation model that would otherwise be considered by a market participant. We classify fair value adjustments as either ‘risk-related’ or ‘model-related’. The majority of these adjustments relate to GBM. Movements in the level of fair value adjustments do not necessarily result in the recognition of profits or losses within the income statement. For example, as models are enhanced, fair value adjustments may no longer be required. Similarly, fair value adjustments will decrease when the related positions are unwound, but this may not result in profit or loss. Global Banking and Markets fair value adjustments At 30 Jun 2021 31 Dec 2020 GBM Corporate Centre GBM Corporate Centre $m $m $m $m Type of adjustment Risk-related 922 23 1,170 28 – bid-offer 445 — 514 — – uncertainty 68 1 106 1 – credit valuation adjustment 287 22 445 27 – debt valuation adjustment (100) — (120) — – funding fair value adjustment 220 — 204 — – other 2 — 21 — Model-related 87 — 74 — – model limitation 87 — 70 — – other — — 4 — Inception profit (Day 1 P&L reserves) 1 120 — 104 — 1,129 23 1,348 28 1 See Note 8 on the interim condensed financial statements on page 115. We continue to observe losses on the disposals of certain uncollateralised over-the-counter (‘OTC’) derivatives as part of our commitments to reduce RWAs in GBM, as set out in our business update in February 2020. Based on our analysis, these losses are not considered to give rise to an adjustment within the IFRS 13 ‘Fair Value Measurement’ framework. We will continue to monitor and analyse disposals as they occur. The reduction in fair value adjustments was driven by increased liquidity, lower volatility and an improved credit environment. For further details of our risk-related and model-related adjustments, see pages 315 and 316 of the Annual Report and Accounts 2020. Fair value valuation bases Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3 Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through profit or loss Derivatives Total Trading liabilities Designated at fair value Derivatives Total $m $m $m $m $m $m $m $m $m Private equity including strategic investments 590 55 12,484 — 13,129 206 — — 206 Asset-backed securities 900 250 17 — 1,167 — — — — Loans held for securitisation — — — — — — — — — Structured notes — — — — — — 7,237 — 7,237 Derivatives with monolines — — — 52 52 — — — — Other derivatives — — — 2,625 2,625 — — 3,421 3,421 Other portfolios 1,753 2,204 487 — 4,444 651 — — 651 At 30 Jun 2021 3,243 2,509 12,988 2,677 21,417 857 7,237 3,421 11,515 Private equity including strategic investments 930 4 10,971 — 11,905 4 — — 4 Asset-backed securities 1,286 523 25 — 1,834 — — — — Loans held for securitisation — — — — — — — — — Structured notes — — — — — 29 5,301 — 5,330 Derivatives with monolines — — — 68 68 — — — — Other derivatives — — — 2,602 2,602 — — 4,187 4,187 Other portfolios 1,438 1,972 481 — 3,891 129 5 1 135 At 31 Dec 2020 3,654 2,499 11,477 2,670 20,300 162 5,306 4,188 9,656 The basis for determining the fair value of the financial instruments in the table above is explained on page 317 of the Annual Report and Accounts 2020. Reconciliation of fair value measurements in Level 3 of the fair value hierarchy Movement in Level 3 financial instruments Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through profit or loss Derivatives Trading liabilities Designated at fair value Derivatives $m $m $m $m $m $m $m At 1 Jan 2021 3,654 2,499 11,477 2,670 162 5,306 4,188 Total gains/(losses) recognised in profit or loss 2 (155) 1,038 195 15 (456) 466 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (155) — 195 15 — 466 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 1,038 — — (456) — – gains less losses from financial investments held at fair value through other comprehensive income 2 — — — — — — Total gains/(losses) recognised in other comprehensive income (‘OCI’) 1 (391) 23 (114) 23 (3) 2 29 – financial investments: fair value losses (360) — — — — — — – exchange differences (31) 23 (114) 23 (3) 2 29 Purchases 390 1,094 1,631 — 482 — — New issuances — — — — 24 2,725 — Sales (214) (244) (499) — — — — Settlements (177) (494) (436) (359) (8) (896) (1,537) Transfers out (311) (512) (159) (126) (1) (339) (221) Transfers in 290 298 50 274 186 895 496 At 30 Jun 2021 3,243 2,509 12,988 2,677 857 7,237 3,421 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 30 Jun 2021 — (99) 885 175 2 106 (4) – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (99) — 175 2 — (4) – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 885 — — 106 — At 1 Jan 2020 3,218 4,979 9,476 2,136 53 5,016 2,302 Total gains/(losses) recognised in profit or loss (13) (541) (106) 2,237 — (117) 2,105 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (541) — 2,237 — — 2,105 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — (106) — — (117) — – gains less losses from financial investments held at fair value through other comprehensive income (13) — — — — — — Total losses recognised in other comprehensive income (‘OCI’) 1 (29) (171) (4) (147) (2) (78) (162) – financial investments: fair value losses (19) — — — — — — – exchange differences (10) (171) (4) (147) (2) (78) (162) Purchases 610 199 1,594 — 63 — — New issuances — — — — 2 1,091 — Sales (271) (577) (424) — (1) — — Settlements (401) (22) (170) (262) (12) (853) (307) Transfers out (22) (797) (63) (139) (5) (275) (270) Transfers in 247 795 101 30 7 224 57 At 30 Jun 2020 3,339 3,865 10,404 3,855 105 5,008 3,725 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 30 Jun 2020 — (7) (140) 529 (3) 100 1,104 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (7) — 529 (3) — 1,104 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — (140) — — 100 — Movement in Level 3 financial instruments (continued) Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through Derivatives Trading liabilities Designated Derivatives $m $m $m $m $m $m $m At 1 Jul 2020 3,339 3,865 10,404 3,855 105 5,008 3,725 Total gains recognised in profit or loss 30 535 610 44 307 58 1,293 – net income from financial instruments held for trading or managed on a fair value basis — 535 — 44 307 — 1,293 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 610 — — 58 — – gains less losses from financial investments held at fair value through other comprehensive income 30 — — — — — — Total gains recognised in other comprehensive income (‘OCI’) 1 423 286 290 290 19 282 331 – financial investments: fair value gains 289 — — — — — — – exchange differences 134 286 290 290 19 282 331 Purchases 61 488 2,107 — 3 — — New issuances — — 1 — 4 785 — Sales (403) (1,002) (1,618) — (259) — — Settlements (129) (1,100) (265) (1,280) (14) (678) (1,155) Transfers out (79) (993) (77) (426) (4) (502) (258) Transfers in 412 420 25 187 1 353 252 At 31 Dec 2020 3,654 2,499 11,477 2,670 162 5,306 4,188 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 31 Dec 2020 — (32) 412 707 1 (91) (1,621) – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (32) — 707 1 — (1,621) – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 412 — — (91) — 1 Included in ‘Financial investments: fair value gains/(losses)’ in the current year and ‘Exchange differences’ in the consolidated statement of comprehensive income. Transfers between levels of the fair value hierarchy are deemed to occur at the end of each quarterly reporting period. Transfers into and out of levels of the fair value hierarchy are primarily attributable to observability of valuation inputs and price transparency. Effect of changes in significant unobservable assumptions to reasonably possible alternatives The following table shows the sensitivity of Level 3 fair values to reasonably possible alternative assumptions: Sensitivity of fair values to reasonably possible alternative assumptions Reflected in profit or loss Reflected in OCI Favourable Unfavourable Favourable Unfavourable $m $m $m $m Derivatives, trading assets and trading liabilities 1 179 (197) — — Financial assets and liabilities designated and otherwise mandatorily measured at fair value through profit or loss 795 (793) — — Financial investments 24 (24) 105 (104) At 30 Jun 2021 998 (1,014) 105 (104) Derivatives, trading assets and trading liabilities 1 271 (268) — — Financial assets and liabilities designated and otherwise mandatorily measured at fair value through profit or loss 625 (625) — — Financial investments 28 (28) 101 (104) At 30 Jun 2020 924 (921) 101 (104) Derivatives, trading assets and trading liabilities 1 229 (244) — — Financial assets and liabilities designated and otherwise mandatorily measured at fair value through profit or loss 644 (643) — — Financial investments 35 (35) 110 (110) At 31 Dec 2020 908 (922) 110 (110) 1 ‘Derivatives, trading assets and trading liabilities’ is presented as one category to reflect the manner in which these financial instruments are risk-managed. The sensitivity analysis aims to measure a range of fair values consistent with the application of a 95% confidence interval. Methodologies take account of the nature of the valuation technique employed, as well as the availability and reliability of observable proxy and historical data. Key unobservable inputs to Level 3 financial instruments The following table lists key unobservable inputs to Level 3 financial instruments and provides the range of those inputs at 30 June 2021. There has been no change to the key unobservable inputs to Level 3 financial instruments and inter-relationships therein, which are detailed on pages 320 and 321 of the Annual Report and Accounts 2020 . Quantitative information about significant unobservable inputs in Level 3 valuations Fair value Valuation techniques Key unobservable inputs 30 Jun 2021 31 Dec 2020 Assets Liabilities Full range of inputs Full range of inputs $m $m Lower Higher Lower Higher Private equity including strategic investments 13,129 206 See footnote 1 See footnote 1 Asset-backed securities 1,167 — – collateralised loan/debt obligation 80 — Market proxy Prepayment rate — — 0% 9% Market proxy Bid quotes — 100 — 100 – other ABSs 1,087 — Market proxy Bid quotes — 172 — 101 Loans held for securitisation — — Structured notes — 7,237 – equity-linked notes — 6,067 Model – Option model Equity volatility 5% 124% 6% 115% Model – Option model Equity correlation 7% 98% (4)% 88% – FX-linked notes — 634 Model – Option model FX volatility 3% 36% 0% 36% – other — 536 Derivatives with monolines 52 — Model – Discounted cash flow Credit spread 2% 2% 2% 2% Other derivatives 2,625 3,421 – interest rate derivatives 1,199 999 securitisation swaps 335 462 Model – Discounted cash flow Prepayment rate 5% 10% 6% 6% long-dated swaptions 436 312 Model – Option model IR volatility 6% 25% 6% 28% other 428 225 – FX derivatives 471 499 FX options 258 315 Model – Option model FX volatility 1% 36% 0% 43% other 213 184 – equity derivatives 885 1,813 long-dated single stock options 465 663 Model – Option model Equity volatility 2% 100% 0% 120% other 420 1,150 – credit derivatives 70 110 other 70 110 Other portfolios 4,444 651 – repurchase agreements 707 600 Model – Discounted cash flow IR curve 0% 5% 0% 5% – other 2 3,737 51 At 30 Jun 2021 21,417 11,515 1 Given the bespoke nature of the analysis in respect of each private equity holding, it is not practical to quote a range of key unobservable inputs . 2 ’Other’ includes a range of smaller asset holdings. 7 Fair values of financial instruments not carried at fair value The bases for measuring the fair values of loans and advances to banks and customers, financial investments, deposits by banks, customer accounts, debt securities in issue, subordinated liabilities and non-trading repurchase and reverse repurchase agreements are explained on page 322 of the Annual Report and Accounts 2020. Fair values of financial instruments not carried at fair value on the balance sheet At 30 Jun 2021 At 31 Dec 2020 Carrying Fair Carrying Fair $m $m $m $m Assets Loans and advances to banks 86,886 87,029 81,616 81,796 Loans and advances to customers 1,059,511 1,058,406 1,037,987 1,035,461 Reverse repurchase agreements – non-trading 201,714 201,694 230,628 230,602 Financial investments – at amortised cost 84,574 90,065 88,639 96,801 Liabilities Deposits by banks 100,448 100,412 82,080 81,996 Customer accounts 1,669,091 1,669,483 1,642,780 1,643,131 Repurchase agreements – non-trading 112,798 112,797 111,901 111,901 Debt securities in issue 84,218 85,416 95,492 97,028 Subordinated liabilities 20,774 26,966 21,951 28,552 Other financial instruments not carried at fair value are typically short term in nature and reprice to current market rates frequently. Accordingly, their carrying amount is a reasonable approximation of fair value. |
Fair values of financial inst_2
Fair values of financial instruments not carried at fair value | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurement [Abstract] | |
Fair values of financial instruments not carried at fair value | 6 Fair values of financial instruments carried at fair value The accounting policies, control framework and hierarchy used to determine fair values at 30 June 2021 are consistent with those applied for the Annual Report and Accounts 2020 . Financial instruments carried at fair value and bases of valuation Valuation techniques Quoted Using With significant Total Recurring fair value measurements $m $m $m $m At 30 Jun 2021 Assets Trading assets 186,338 71,403 2,509 260,250 Financial assets designated and otherwise mandatorily measured at fair value through profit or loss 20,468 15,664 12,988 49,120 Derivatives 1,630 205,209 2,677 209,516 Financial investments 253,593 93,166 3,243 350,002 Liabilities Trading liabilities 61,676 27,104 857 89,637 Financial liabilities designated at fair value 1,365 143,084 7,237 151,686 Derivatives 1,098 195,637 3,421 200,156 At 31 Dec 2020 Assets Trading assets 167,980 61,511 2,499 231,990 Financial assets designated and otherwise mandatorily measured at fair value through profit or loss 19,711 14,365 11,477 45,553 Derivatives 2,602 302,454 2,670 307,726 Financial investments 303,654 94,746 3,654 402,054 Liabilities Trading liabilities 53,290 21,814 162 75,266 Financial liabilities designated at fair value 1,267 150,866 5,306 157,439 Derivatives 1,788 297,025 4,188 303,001 Transfers between Level 1 and Level 2 fair values Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value Derivatives Trading liabilities Designated at fair value Derivatives $m $m $m $m $m $m $m At 30 Jun 2021 Transfers from Level 1 to Level 2 5,421 3,601 150 103 43 — 212 Transfers from Level 2 to Level 1 4,774 2,381 645 — 530 — — At 31 Dec 2020 Transfers from Level 1 to Level 2 4,514 3,891 245 — 155 7,414 — Transfers from Level 2 to Level 1 7,764 5,517 328 1 433 — — Fair value adjustments We adopt the use of fair value adjustments when we take into consideration additional factors not incorporated within the valuation model that would otherwise be considered by a market participant. We classify fair value adjustments as either ‘risk-related’ or ‘model-related’. The majority of these adjustments relate to GBM. Movements in the level of fair value adjustments do not necessarily result in the recognition of profits or losses within the income statement. For example, as models are enhanced, fair value adjustments may no longer be required. Similarly, fair value adjustments will decrease when the related positions are unwound, but this may not result in profit or loss. Global Banking and Markets fair value adjustments At 30 Jun 2021 31 Dec 2020 GBM Corporate Centre GBM Corporate Centre $m $m $m $m Type of adjustment Risk-related 922 23 1,170 28 – bid-offer 445 — 514 — – uncertainty 68 1 106 1 – credit valuation adjustment 287 22 445 27 – debt valuation adjustment (100) — (120) — – funding fair value adjustment 220 — 204 — – other 2 — 21 — Model-related 87 — 74 — – model limitation 87 — 70 — – other — — 4 — Inception profit (Day 1 P&L reserves) 1 120 — 104 — 1,129 23 1,348 28 1 See Note 8 on the interim condensed financial statements on page 115. We continue to observe losses on the disposals of certain uncollateralised over-the-counter (‘OTC’) derivatives as part of our commitments to reduce RWAs in GBM, as set out in our business update in February 2020. Based on our analysis, these losses are not considered to give rise to an adjustment within the IFRS 13 ‘Fair Value Measurement’ framework. We will continue to monitor and analyse disposals as they occur. The reduction in fair value adjustments was driven by increased liquidity, lower volatility and an improved credit environment. For further details of our risk-related and model-related adjustments, see pages 315 and 316 of the Annual Report and Accounts 2020. Fair value valuation bases Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3 Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through profit or loss Derivatives Total Trading liabilities Designated at fair value Derivatives Total $m $m $m $m $m $m $m $m $m Private equity including strategic investments 590 55 12,484 — 13,129 206 — — 206 Asset-backed securities 900 250 17 — 1,167 — — — — Loans held for securitisation — — — — — — — — — Structured notes — — — — — — 7,237 — 7,237 Derivatives with monolines — — — 52 52 — — — — Other derivatives — — — 2,625 2,625 — — 3,421 3,421 Other portfolios 1,753 2,204 487 — 4,444 651 — — 651 At 30 Jun 2021 3,243 2,509 12,988 2,677 21,417 857 7,237 3,421 11,515 Private equity including strategic investments 930 4 10,971 — 11,905 4 — — 4 Asset-backed securities 1,286 523 25 — 1,834 — — — — Loans held for securitisation — — — — — — — — — Structured notes — — — — — 29 5,301 — 5,330 Derivatives with monolines — — — 68 68 — — — — Other derivatives — — — 2,602 2,602 — — 4,187 4,187 Other portfolios 1,438 1,972 481 — 3,891 129 5 1 135 At 31 Dec 2020 3,654 2,499 11,477 2,670 20,300 162 5,306 4,188 9,656 The basis for determining the fair value of the financial instruments in the table above is explained on page 317 of the Annual Report and Accounts 2020. Reconciliation of fair value measurements in Level 3 of the fair value hierarchy Movement in Level 3 financial instruments Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through profit or loss Derivatives Trading liabilities Designated at fair value Derivatives $m $m $m $m $m $m $m At 1 Jan 2021 3,654 2,499 11,477 2,670 162 5,306 4,188 Total gains/(losses) recognised in profit or loss 2 (155) 1,038 195 15 (456) 466 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (155) — 195 15 — 466 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 1,038 — — (456) — – gains less losses from financial investments held at fair value through other comprehensive income 2 — — — — — — Total gains/(losses) recognised in other comprehensive income (‘OCI’) 1 (391) 23 (114) 23 (3) 2 29 – financial investments: fair value losses (360) — — — — — — – exchange differences (31) 23 (114) 23 (3) 2 29 Purchases 390 1,094 1,631 — 482 — — New issuances — — — — 24 2,725 — Sales (214) (244) (499) — — — — Settlements (177) (494) (436) (359) (8) (896) (1,537) Transfers out (311) (512) (159) (126) (1) (339) (221) Transfers in 290 298 50 274 186 895 496 At 30 Jun 2021 3,243 2,509 12,988 2,677 857 7,237 3,421 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 30 Jun 2021 — (99) 885 175 2 106 (4) – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (99) — 175 2 — (4) – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 885 — — 106 — At 1 Jan 2020 3,218 4,979 9,476 2,136 53 5,016 2,302 Total gains/(losses) recognised in profit or loss (13) (541) (106) 2,237 — (117) 2,105 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (541) — 2,237 — — 2,105 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — (106) — — (117) — – gains less losses from financial investments held at fair value through other comprehensive income (13) — — — — — — Total losses recognised in other comprehensive income (‘OCI’) 1 (29) (171) (4) (147) (2) (78) (162) – financial investments: fair value losses (19) — — — — — — – exchange differences (10) (171) (4) (147) (2) (78) (162) Purchases 610 199 1,594 — 63 — — New issuances — — — — 2 1,091 — Sales (271) (577) (424) — (1) — — Settlements (401) (22) (170) (262) (12) (853) (307) Transfers out (22) (797) (63) (139) (5) (275) (270) Transfers in 247 795 101 30 7 224 57 At 30 Jun 2020 3,339 3,865 10,404 3,855 105 5,008 3,725 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 30 Jun 2020 — (7) (140) 529 (3) 100 1,104 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (7) — 529 (3) — 1,104 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — (140) — — 100 — Movement in Level 3 financial instruments (continued) Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through Derivatives Trading liabilities Designated Derivatives $m $m $m $m $m $m $m At 1 Jul 2020 3,339 3,865 10,404 3,855 105 5,008 3,725 Total gains recognised in profit or loss 30 535 610 44 307 58 1,293 – net income from financial instruments held for trading or managed on a fair value basis — 535 — 44 307 — 1,293 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 610 — — 58 — – gains less losses from financial investments held at fair value through other comprehensive income 30 — — — — — — Total gains recognised in other comprehensive income (‘OCI’) 1 423 286 290 290 19 282 331 – financial investments: fair value gains 289 — — — — — — – exchange differences 134 286 290 290 19 282 331 Purchases 61 488 2,107 — 3 — — New issuances — — 1 — 4 785 — Sales (403) (1,002) (1,618) — (259) — — Settlements (129) (1,100) (265) (1,280) (14) (678) (1,155) Transfers out (79) (993) (77) (426) (4) (502) (258) Transfers in 412 420 25 187 1 353 252 At 31 Dec 2020 3,654 2,499 11,477 2,670 162 5,306 4,188 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 31 Dec 2020 — (32) 412 707 1 (91) (1,621) – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (32) — 707 1 — (1,621) – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 412 — — (91) — 1 Included in ‘Financial investments: fair value gains/(losses)’ in the current year and ‘Exchange differences’ in the consolidated statement of comprehensive income. Transfers between levels of the fair value hierarchy are deemed to occur at the end of each quarterly reporting period. Transfers into and out of levels of the fair value hierarchy are primarily attributable to observability of valuation inputs and price transparency. Effect of changes in significant unobservable assumptions to reasonably possible alternatives The following table shows the sensitivity of Level 3 fair values to reasonably possible alternative assumptions: Sensitivity of fair values to reasonably possible alternative assumptions Reflected in profit or loss Reflected in OCI Favourable Unfavourable Favourable Unfavourable $m $m $m $m Derivatives, trading assets and trading liabilities 1 179 (197) — — Financial assets and liabilities designated and otherwise mandatorily measured at fair value through profit or loss 795 (793) — — Financial investments 24 (24) 105 (104) At 30 Jun 2021 998 (1,014) 105 (104) Derivatives, trading assets and trading liabilities 1 271 (268) — — Financial assets and liabilities designated and otherwise mandatorily measured at fair value through profit or loss 625 (625) — — Financial investments 28 (28) 101 (104) At 30 Jun 2020 924 (921) 101 (104) Derivatives, trading assets and trading liabilities 1 229 (244) — — Financial assets and liabilities designated and otherwise mandatorily measured at fair value through profit or loss 644 (643) — — Financial investments 35 (35) 110 (110) At 31 Dec 2020 908 (922) 110 (110) 1 ‘Derivatives, trading assets and trading liabilities’ is presented as one category to reflect the manner in which these financial instruments are risk-managed. The sensitivity analysis aims to measure a range of fair values consistent with the application of a 95% confidence interval. Methodologies take account of the nature of the valuation technique employed, as well as the availability and reliability of observable proxy and historical data. Key unobservable inputs to Level 3 financial instruments The following table lists key unobservable inputs to Level 3 financial instruments and provides the range of those inputs at 30 June 2021. There has been no change to the key unobservable inputs to Level 3 financial instruments and inter-relationships therein, which are detailed on pages 320 and 321 of the Annual Report and Accounts 2020 . Quantitative information about significant unobservable inputs in Level 3 valuations Fair value Valuation techniques Key unobservable inputs 30 Jun 2021 31 Dec 2020 Assets Liabilities Full range of inputs Full range of inputs $m $m Lower Higher Lower Higher Private equity including strategic investments 13,129 206 See footnote 1 See footnote 1 Asset-backed securities 1,167 — – collateralised loan/debt obligation 80 — Market proxy Prepayment rate — — 0% 9% Market proxy Bid quotes — 100 — 100 – other ABSs 1,087 — Market proxy Bid quotes — 172 — 101 Loans held for securitisation — — Structured notes — 7,237 – equity-linked notes — 6,067 Model – Option model Equity volatility 5% 124% 6% 115% Model – Option model Equity correlation 7% 98% (4)% 88% – FX-linked notes — 634 Model – Option model FX volatility 3% 36% 0% 36% – other — 536 Derivatives with monolines 52 — Model – Discounted cash flow Credit spread 2% 2% 2% 2% Other derivatives 2,625 3,421 – interest rate derivatives 1,199 999 securitisation swaps 335 462 Model – Discounted cash flow Prepayment rate 5% 10% 6% 6% long-dated swaptions 436 312 Model – Option model IR volatility 6% 25% 6% 28% other 428 225 – FX derivatives 471 499 FX options 258 315 Model – Option model FX volatility 1% 36% 0% 43% other 213 184 – equity derivatives 885 1,813 long-dated single stock options 465 663 Model – Option model Equity volatility 2% 100% 0% 120% other 420 1,150 – credit derivatives 70 110 other 70 110 Other portfolios 4,444 651 – repurchase agreements 707 600 Model – Discounted cash flow IR curve 0% 5% 0% 5% – other 2 3,737 51 At 30 Jun 2021 21,417 11,515 1 Given the bespoke nature of the analysis in respect of each private equity holding, it is not practical to quote a range of key unobservable inputs . 2 ’Other’ includes a range of smaller asset holdings. 7 Fair values of financial instruments not carried at fair value The bases for measuring the fair values of loans and advances to banks and customers, financial investments, deposits by banks, customer accounts, debt securities in issue, subordinated liabilities and non-trading repurchase and reverse repurchase agreements are explained on page 322 of the Annual Report and Accounts 2020. Fair values of financial instruments not carried at fair value on the balance sheet At 30 Jun 2021 At 31 Dec 2020 Carrying Fair Carrying Fair $m $m $m $m Assets Loans and advances to banks 86,886 87,029 81,616 81,796 Loans and advances to customers 1,059,511 1,058,406 1,037,987 1,035,461 Reverse repurchase agreements – non-trading 201,714 201,694 230,628 230,602 Financial investments – at amortised cost 84,574 90,065 88,639 96,801 Liabilities Deposits by banks 100,448 100,412 82,080 81,996 Customer accounts 1,669,091 1,669,483 1,642,780 1,643,131 Repurchase agreements – non-trading 112,798 112,797 111,901 111,901 Debt securities in issue 84,218 85,416 95,492 97,028 Subordinated liabilities 20,774 26,966 21,951 28,552 Other financial instruments not carried at fair value are typically short term in nature and reprice to current market rates frequently. Accordingly, their carrying amount is a reasonable approximation of fair value. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2021 | |
Financial Instruments [Abstract] | |
Derivatives | 8 Derivatives Notional contract amounts and fair values of derivatives by product contract type held by HSBC Notional contract amount Fair value amount Assets and liabilities Assets Liabilities Trading Hedging Trading Hedging Total Trading Hedging Total $m $m $m $m $m $m $m $m Foreign exchange 7,610,890 32,493 71,412 861 72,273 68,509 624 69,133 Interest rate 15,063,325 129,369 175,722 1,723 177,445 167,385 1,360 168,745 Equities 742,764 — 13,835 — 13,835 15,414 — 15,414 Credit 218,085 — 2,259 — 2,259 3,083 — 3,083 Commodity and other 96,958 — 1,755 — 1,755 1,832 — 1,832 Gross total fair values 23,732,022 161,862 264,983 2,584 267,567 256,223 1,984 258,207 Offset (58,051) (58,051) At 30 Jun 2021 23,732,022 161,862 264,983 2,584 209,516 256,223 1,984 200,156 Foreign exchange 7,606,446 35,021 106,696 309 107,005 108,903 1,182 110,085 Interest rate 15,240,867 157,436 249,204 1,914 251,118 236,594 2,887 239,481 Equities 652,288 — 14,043 — 14,043 15,766 — 15,766 Credit 269,401 — 2,590 — 2,590 3,682 — 3,682 Commodity and other 120,259 — 2,073 — 2,073 3,090 — 3,090 Gross total fair values 23,889,261 192,457 374,606 2,223 376,829 368,035 4,069 372,104 Offset (69,103) (69,103) At 31 Dec 2020 23,889,261 192,457 374,606 2,223 307,726 368,035 4,069 303,001 The notional contract amounts of derivatives held for trading purposes and derivatives designated in qualifying hedge accounting relationships indicate the nominal value of transactions outstanding at the balance sheet date, not amounts at risk. Derivative assets and liabilities decreased during 1H21, reflecting changes in yield curves and the market environment. Derivatives valued using models with unobservable inputs The following table shows the difference between the fair value at initial recognition, which is the transaction price, and the value that would have been derived had valuation techniques used for subsequent measurement been applied at initial recognition, less subsequent releases. Unamortised balance of derivatives valued using models with significant unobservable inputs Half-year to 30 Jun 30 Jun 31 Dec 2021 2020 2020 $m $m $m Unamortised balance at beginning of period 104 73 89 Deferral on new transactions 187 106 126 Recognised in the income statement during the period (172) (87) (118) – amortisation (89) (51) (65) – subsequent to unobservable inputs becoming observable (3) (1) (3) – maturity, termination or offsetting derivative (80) (35) (50) Exchange differences 1 (3) 7 Unamortised balance at end of period 1 120 89 104 1 This amount is yet to be recognised in the consolidated income statement. Hedge accounting derivatives The notional contract amounts of derivatives held for hedge accounting purposes indicate the nominal value of transactions outstanding at the balance sheet date, not amounts at risk. Notional contract amounts of derivatives held for hedging purposes by product type At 30 Jun 2021 At 31 Dec 2020 Cash flow Fair value Cash flow Fair value $m $m $m $m Foreign exchange 21,672 4 24,506 15 Interest rate 31,490 97,879 35,863 121,573 Total 53,162 97,883 60,369 121,588 The Group applies hedge accounting in respect of certain consolidated net investments. Hedging is undertaken using forward foreign exchange contracts or by financing with foreign currency borrowings. At 30 June 2021, the notional contract values of outstanding financial instruments designated as hedges of net investments in foreign operations were $10,817m (31 December 2020: $10,500m). Interest rate benchmark reform: Amendments to IFRS 9 and IAS 39 ‘Financial Instruments’ The Group has cash flow and fair value hedge accounting relationships that are exposed to different Ibors, predominantly US dollar Libor, sterling Libor and Euribor, as well as overnight rates subject to the market-wide benchmarks reform such as the European Overnight Index Average rate (‘Eonia’). Existing financial instruments (such as derivatives, loans and bonds) designated in relationships referencing these benchmarks are expected to transition to RFRs in different ways and at different times. External progress on the transition to RFRs is being monitored, with the objective of ensuring a smooth transition for the Group’s hedge accounting relationships. The specific issues arising will vary with the details of each hedging relationship, but may arise due to the transition of existing products included in the designation, a change in expected volumes of products to be issued, a change in contractual terms of new products issued, or a combination of these factors. Some hedges may need to be de-designated and new relationships entered into, while others may survive the market-wide benchmarks reform. The hedged items that are affected by the Phase 2 amendments to the IASB’s Ibor reform are presented in the balance sheet as ‘Financial assets designated and otherwise mandatorily measured at fair value through other comprehensive income’, ‘Loans and advances to customers’, ‘Debt securities in issue’ and ‘Deposits by banks’. The notional amounts of interest rate derivatives designated in hedge accounting relationships represent the extent of the risk exposure managed by the Group that is expected to be directly affected by market-wide Ibor reform and in scope of the IASB Ibor reform Phase 1 and Phase 2 amendments. The cross-currency swaps designated in hedge accounting relationships and affected by Ibor reform are not significant and have not been presented below: Hedging instrument impacted by Ibor reform Hedging instrument Impacted by Ibor reform Not impacted by Ibor reform Notional amount 1 € £ $ Other Total $m $m $m $m $m $m $m Fair value hedges 9,615 311 25,511 7,024 42,461 55,418 97,879 Cash flow hedges 8,662 829 4,201 5,630 19,322 12,168 31,490 At 30 Jun 2021 18,277 1,140 29,712 12,654 61,783 67,586 129,369 Fair value hedges 17,792 3,706 32,789 10,128 64,415 57,158 121,573 Cash flow hedges 8,344 2,522 8,705 6,797 26,368 9,495 35,863 At 31 Dec 2020 26,136 6,228 41,494 16,925 90,783 66,653 157,436 1 The notional contract amounts of interest rate derivatives designated in qualifying hedge accounting relationships indicate the nominal value of transactions outstanding at the balance sheet date. They do not represent amounts at risk. 2 The notional contract amounts of euro interest rate derivatives impacted by Ibor reform mainly comprise hedges with a Euribor benchmark, which are ‘Fair value hedges’ of $8,793m (31 December 2020: $6,000m) and ‘Cash flow hedges’ of $8,662m (31 December 2020: $8,344m). |
Financial investments
Financial investments | 6 Months Ended |
Jun. 30, 2021 | |
Financial Instruments [Abstract] | |
Financial investments | 9 Financial investments Carrying amounts of financial investments 30 Jun 31 Dec 2021 2020 $m $m Financial investments measured at fair value through other comprehensive income 350,002 402,054 – treasury and other eligible bills 101,297 118,163 – debt securities 246,728 281,467 – equity securities 1,895 2,337 – other instruments 82 87 Debt instruments measured at amortised cost 84,574 88,639 – treasury and other eligible bills 8,085 11,757 – debt securities 76,489 76,882 At the end of the period 434,576 490,693 |
Interests in associates and joi
Interests in associates and joint ventures | 6 Months Ended |
Jun. 30, 2021 | |
Interests In Other Entities [Abstract] | |
Interests in associates and joint ventures | 10 Interests in associates and joint ventures At 30 June 2021, the carrying amount of HSBC’s interests in associates and joint ventures was $28,709m (31 December 2020: $26,684m). Principal associates of HSBC At 30 Jun 2021 31 Dec 2020 Carrying Fair value 1 Carrying Fair value 1 $m $m $m $m Bank of Communications Co., Limited 22,857 9,484 21,248 7,457 The Saudi British Bank 4,405 5,350 4,215 4,197 1 Principal associates are listed on recognised stock exchanges. The fair values are based on the quoted market prices of the shares held (Level 1 in the fair value hierarchy). Bank of Communications Co., Limited The Group’s investment in Bank of Communications Co., Limited (‘BoCom’) is classified as an associate. Significant influence in BoCom was established with consideration of all relevant factors, including representation on BoCom’s Board of Directors and participation in a Resource and Experience Sharing agreement (‘RES’). Under the RES, HSBC staff have been seconded to assist in the maintenance of BoCom’s financial and operating policies. Investments in associates are recognised using the equity method of accounting in accordance with IAS 28 whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the Group’s share of BoCom’s net assets. An impairment test is required if there is any indication of impairment. Impairment testing At 30 June 2021, the fair value of the Group’s investment in BoCom had been below the carrying amount for approximately nine years. As a result, the Group performed an impairment test on the carrying amount, which confirmed that there was no impairment at 30 June 2021 as the recoverable amount as determined by a value-in-use (‘VIU’) calculation was higher than the carrying value. At 30 Jun 2021 31 Dec 2020 VIU Carrying Fair VIU Carrying Fair $bn $bn $bn $bn $bn $bn BoCom 23.6 22.9 9.5 21.8 21.2 7.5 In future periods, the VIU may increase or decrease depending on the effect of changes to model inputs. The main model inputs are described below and are based on factors observed at period-end. The factors that could result in a change in the VIU and an impairment include a short-term underperformance by BoCom, a change in regulatory capital requirements, or an increase in uncertainty regarding the future performance of BoCom resulting in a downgrade of the forecast of future asset growth or profitability. An increase in the discount rate as a result of an increase in the risk premium or risk-free rates could also result in a reduction of VIU and an impairment. At the point where the carrying value exceeds the VIU, impairment would be recognised. If the Group did not have significant influence in BoCom, the investment would be carried at fair value rather than the current carrying value. Basis of recoverable amount The impairment test was performed by comparing the recoverable amount of BoCom, determined by a VIU calculation, with its carrying amount. The VIU calculation uses discounted cash flow projections based on management’s best estimates of future earnings available to ordinary shareholders prepared in accordance with IAS 36. Significant management judgement is required in arriving at the best estimate. There are two main components to the VIU calculation. The first component is management’s best estimate of BoCom’s earnings, which is based on explicit forecasts over the short to medium term. This results in forecast earnings growth that is lower than recent historical actual growth and also reflects the uncertainty arising from the current economic outlook. Earnings beyond the short to medium term are then extrapolated into perpetuity using a long-term growth rate to derive a terminal value, which comprises the majority of the VIU. The second component is the capital maintenance charge (‘CMC’), which is management’s forecast of the earnings that need to be withheld in order for BoCom to meet capital requirements over the forecast period (i.e. CMC is deducted when arriving at management’s estimate of future earnings available to ordinary shareholders). The principal inputs to the CMC calculation include estimates of asset growth, the ratio of risk-weighted assets to total assets, and the expected capital requirements. An increase in the CMC as a result of a change to these principal inputs would reduce VIU. Additionally, management considers other factors (including qualitative factors) to ensure that the inputs to the VIU calculation remain appropriate. Key assumptions in value-in-use calculation We used a number of assumptions in our VIU calculation, in accordance with the requirements of IAS 36: • Long-term profit growth rate: 3% (31 December 2020: 3%) for periods after 2024, which does not exceed forecast GDP growth in mainland China and is consistent with forecasts by external analysts. • Long-term asset growth rate: 3% (31 December 2020: 3%) for periods after 2024, which is the rate that assets are expected to grow to achieve long-term profit growth of 3%. • Discount rate: 10.59% (31 December 2020: 11.37%), which is based on a capital asset pricing model (‘CAPM’) calculation for BoCom, using market data. Management also compares the rate derived from the CAPM with discount rates from external sources. The discount rate used is within the range of 9.5% to 15.0% (31 December 2020: 10.3% to 15.0%) indicated by external sources. The lower rate reflects the impact of updates to certain components of CAPM arising from a relative reduction in the volatility of Chinese banks, the maturity of the Chinese banking industry, and a decrease in mainland China’s credit risk due to its relatively quick recovery from the impact of the Covid-19 outbreak. • Expected credit losses (‘ECL’) as a percentage of customer advances: ranges from 0.98% to 1.10% (31 December 2020: 0.98% to 1.22%) in the short to medium term, reflecting a decrease in the upper end of the range due to BoCom's actual results and an improved outlook for ECL following the peak of the Covid-19 outbreak in mainland China. For periods after 2024, the ratio is 0.88% (2020: 0.88%), which is slightly lower than BoCom’s average ECL in recent years prior to the Covid-19 outbreak. • Risk-weighted assets as a percentage of total assets: ranges from 61% to 62% (31 December 2020: 61% to 62%) in the short to medium term, reflecting increases that may arise from relatively elevated ECL in the short term, followed by reductions that may arise from a subsequent lowering of ECL and a continuation of the trend of strong retail loan growth. For periods after 2024, the ratio is 61% (2020: 61%). These rates are similar to BoCom’s actual results in recent years and are slightly below forecasts disclosed by external analysts. • Operating income growth rate: ranges from 4.4% to 6.3% (31 December 2020: 3.5% to 6.7%) in the short to medium term, and is lower than BoCom’s actual results in recent years and forecasts disclosed by external analysts, reflecting BoCom’s most recent actual results, global trade tensions and industry developments in mainland China. • Cost-income ratio: 36.1% (31 December 2020: 36.3% to 36.8%) in the short to medium term. These ratios are similar to BoCom’s actual results in recent years and slightly lower than forecasts disclosed by external analysts. • Effective tax rate: ranges from 10.0% to 14.3% (31 December 2020: 7.8% to 16.5%) in the short to medium term, reflecting BoCom’s actual results and an expected increase towards the long-term assumption through the forecast period. For periods after 2024, the rate is 16.8% (2020: 16.8%), which is higher than the recent historical average, above the most likely rate within the range of the minimum tax rate as proposed by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting, and forecasts for the short to medium term disclosed by external analysts. • Capital requirements: Capital adequacy ratio: 12.5% (31 December 2020: 11.5%) and tier 1 capital adequacy ratio: 9.5% (31 December 2020: 9.5%), based on BoCom’s capital risk appetite and the minimum regulatory requirements, respectively. The capital adequacy ratio assumption was updated to 12.5% from 11.5%, which was the minimum regulatory requirement, following the recent approval of BoCom’s capital management plan. The following table shows the change to each key assumption in the VIU calculation that on its own would reduce the headroom to nil: Key assumption Changes to key assumption to reduce headroom to nil • Long-term profit growth rate Decrease by 22 basis points • Long-term asset growth rate Increase by 19 basis points • Discount rate Increase by 27 basis points • Expected credit losses as a percentage of customer advances Increase by 3 basis points • Risk-weighted assets as a percentage of total assets Increase by 145 basis points • Operating income growth rate Decrease by 39 basis points • Cost-income ratio Increase by 87 basis points • Long-term effective tax rate Increase by 228 basis points • Capital requirements – capital adequacy ratio Increase by 30 basis points • Capital requirements – tier 1 capital adequacy ratio Increase by 199 basis points The following table further illustrates the impact on VIU of reasonably possible changes to key assumptions. This reflects the sensitivity of the VIU to each key assumption on its own and it is possible that more than one favourable and/or unfavourable change may occur at the same time. The selected rates of reasonably possible changes to key assumptions are largely based on external analysts’ forecasts, which can change period to period. Sensitivity of VIU to reasonably possible changes in key assumptions Favourable change Unfavourable change Increase VIU Decrease VIU bps $bn $bn bps $bn $bn At 30 Jun 2021 Long-term asset/profit growth rate 1 (50) / — 1.9 / — 25.5 / 23.6 — / (50) — / (1.7) 23.6 / 21.9 Discount rate (109) 3.8 27.4 31 (0.8) 22.8 Expected credit losses as a percentage of customer advances 2021 to 2024: 99 2025 onwards: 79 1.9 25.5 2021 to 2024: 112 2025 onwards: 102 (3.0) 20.6 Risk-weighted assets as a percentage of total assets (81) 0.3 23.9 87 (0.6) 23.0 Operating income growth rate 16 0.4 24.0 (46) (0.9) 22.7 Cost-income ratio (168) 1.7 25.3 287 (2.6) 21.0 Long-term effective tax rate (180) 0.6 24.2 820 (2.7) 20.9 Capital requirements – capital adequacy ratio — — 23.6 254 (7.4) 16.2 Capital requirements – tier 1 capital adequacy ratio — — 23.6 332 (4.8) 18.8 At 31 Dec 2020 Long-term asset/profit growth rate 1 (50) / — 1.4 / — 23.2 / 21.8 — / (50) — / (1.3) 21.8 / 20.5 Discount rate 1.2 23.0 53 (1.2) 20.6 Expected credit losses as a percentage of customer advances 2020 to 2024: 96 2025 onwards: 76 2.3 24.1 2020 to 2024: 122 2025 onwards: 95 (2.1) 19.7 Risk-weighted assets as a percentage of total assets (40) 0.1 21.9 166 (0.8) 21.0 Operating income growth rate 2 0.2 22.0 (69) (1.5) 20.3 Cost-income ratio (149) 1.3 23.1 120 (1.2) 20.6 Long-term effective tax rate (316) 0.9 22.7 820 (2.2) 19.6 Capital requirements – capital adequacy ratio — — 21.8 297 (7.8) 14.0 Capital requirements – tier 1 capital adequacy ratio — — 21.8 263 (5.3) 16.5 1 The reasonably possible ranges of the long-term profit growth rate and long-term asset growth rate assumptions reflect the close relationship between these assumptions, which would result in offsetting changes to each assumption. Considering the interrelationship of the changes set out in the table above, management estimates that the reasonably possible range of VIU is $19.6bn to $25.9bn (31 December 2020: $18.2bn to $24.2bn). The range is based on the favourable/unfavourable change in the earnings in the short to medium term and long-term expected credit losses as a percentage of customer advances as set out in the table above. All other long-term assumptions, the discount rate and the basis of the CMC have been kept unchanged when determining the reasonably possible range of the VIU. The Saudi British Bank The Group’s investment in The Saudi British Bank (‘SABB’) is classified as an associate. In June 2019, the merger between SABB and Alawwal bank (‘Alawwal’) became effective, which reduced HSBC’s 40% interest in SABB to 29.2%. On 3 December 2020, HSBC purchased additional shares in SABB, which increased the Group’s shareholding to 31%. HSBC remains the largest shareholder in SABB. Significant influence in SABB is established via representation on the Board of Directors. Investments in associates are recognised using the equity method of accounting in accordance with IAS 28, as described previously for BoCom. Impairment testing |
Provisions
Provisions | 6 Months Ended |
Jun. 30, 2021 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Provisions | 11 Provisions Restructuring Legal proceedings Customer Other Total $m $m $m $m $m Provisions (excluding contractual commitments) At 31 Dec 2020 671 756 858 305 2,590 Additions 158 61 92 100 411 Amounts utilised (273) (149) (298) (28) (748) Unused amounts reversed (72) (14) (93) (43) (222) Exchange and other movements 45 (27) 10 (29) (1) At 30 Jun 2021 529 627 569 305 2,030 Contractual commitments 1 At 31 Dec 2020 1,088 Net change in expected credit loss provision and other movements (304) At 30 Jun 2021 784 Total provisions At 31 Dec 2020 3,678 At 30 Jun 2021 2,814 1 Contractual commitments include the provision for contingent liabilities measured under IFRS 9 ‘Financial Instruments’ in respect of financial guarantees and the expected credit loss provision on off-balance sheet guarantees and commitments. Further details of ‘Legal proceedings and regulatory matters’ are set out in Note 13. Legal proceedings include civil court, arbitration or tribunal proceedings brought against HSBC companies (whether by way of claim or counterclaim); or civil disputes that may, if not settled, result in court, arbitration or tribunal proceedings. ‘Regulatory matters’ refers to investigations, reviews and other actions carried out by, or in response to, the actions of regulators or law enforcement agencies in connection with alleged wrongdoing by HSBC. Customer remediation refers to HSBC’s activities to compensate customers for losses or damages associated with a failure to comply with regulations or to treat customers fairly. Customer remediation is often initiated by HSBC in response to customer complaints and/or industry developments in sales practices, and is not necessarily initiated by regulatory action. Further details of customer remediation are set out in this note. At 30 June 2021, $278m (31 December 2020: $334m) of the customer remediation provision related to the estimated liability for redress in respect of the possible mis-selling of payment protection insurance (‘PPI’) policies in previous years. Payments totalling $74m were made during the first six months of 2021, and the provision was increased by $18m. At 30 June 2021, a provision of $124m (31 December 2020: $308m) was held relating to the liability for redress payable to customers following a review of collections and recoveries practices in the UK. During the first six months of 2021, redress payments and incurred operating costs totalled $157m, in addition to a net release of $27m of provision. This release takes account of the impact of the estimated cost of redress of the actual number of customers impacted and cost of redress paid. For further details of the impact of IFRS 9 on undrawn loan commitments and financial guarantees, presented in ‘Contractual commitments’, see Note 12. Further analysis of the movement in the expected credit loss provision is disclosed within the 'Reconciliation of allowances for loans and advances to banks and customers including loan commitments and financial guarantees' table on page 71. |
Contingent liabilities, contrac
Contingent liabilities, contractual commitments and guarantees | 6 Months Ended |
Jun. 30, 2021 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Contingent liabilities, contractual commitments and guarantees | 12 Contingent liabilities, contractual commitments and guarantees At 30 Jun 31 Dec 2021 2020 $m $m Guarantees and contingent liabilities: – financial guarantees 27,274 18,384 – performance and other guarantees 80,641 78,114 – other contingent liabilities 838 1,219 At the end of the period 108,753 97,717 Commitments: 1 – documentary credits and short-term trade-related transactions 9,201 7,178 – forward asset purchases and forward deposits placed 72,916 66,506 – standby facilities, credit lines and other commitments to lend 764,768 771,086 At the end of the period 846,885 844,770 1 Includes $661,373m of commitments at 30 June 2021 (31 December 2020: $659,783m), to which the impairment requirements in IFRS 9 are applied where HSBC has become party to an irrevocable commitment. The preceding table discloses the nominal principal amounts of off-balance sheet liabilities and commitments for the Group, which represent the maximum amounts at risk should the contracts be fully drawn upon and the clients default. As a significant portion of guarantees and commitments are expected to expire without being drawn upon, the total of the nominal principal amounts is not indicative of future liquidity requirements. The expected credit loss provision relating to guarantees and commitments under IFRS 9 is disclosed in Note 11. The majority of the guarantees have a term of less than one year, while guarantees with terms of more than one year are subject to HSBC’s annual credit review process. |
Legal proceedings and regulator
Legal proceedings and regulatory matters | 6 Months Ended |
Jun. 30, 2021 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Legal proceedings and regulatory matters | 13 Legal proceedings and regulatory matters HSBC is party to legal proceedings and regulatory matters in a number of jurisdictions arising out of its normal business operations. Apart from the matters described below, HSBC considers that none of these matters are material. The recognition of provisions is determined in accordance with the accounting policies set out in Note 1 of the Annual Report and Accounts 2020. While the outcomes of legal proceedings and regulatory matters are inherently uncertain, management believes that, based on the information available to it, appropriate provisions have been made in respect of these matters as at 30 June 2021 (see Note 11). Where an individual provision is material, the fact that a provision has been made is stated and quantified, except to the extent that doing so would be seriously prejudicial. Any provision recognised does not constitute an admission of wrongdoing or legal liability. It is not practicable to provide an aggregate estimate of potential liability for our legal proceedings and regulatory matters as a class of contingent liabilities. Bernard L. Madoff Investment Securities LLC Bernard L. Madoff (‘Madoff’) was arrested in December 2008 and later pleaded guilty to running a Ponzi scheme. His firm, Bernard L. Madoff Investment Securities LLC (‘Madoff Securities’), is being liquidated in the US by a trustee (the ‘Trustee’). Various non-US HSBC companies provided custodial, administration and similar services to a number of funds incorporated outside the US whose assets were invested with Madoff Securities. Based on information provided by Madoff Securities as at 30 November 2008, the purported aggregate value of these funds was $8.4bn, including fictitious profits reported by Madoff. Based on information available to HSBC, the funds’ actual transfers to Madoff Securities minus their actual withdrawals from Madoff Securities during the time HSBC serviced the funds are estimated to have totalled approximately $4bn. Various HSBC companies have been named as defendants in lawsuits arising out of Madoff Securities’ fraud. US litigation: The Trustee has brought lawsuits against various HSBC companies and others in the US Bankruptcy Court for the Southern District of New York (the ‘US Bankruptcy Court’), seeking recovery of transfers from Madoff Securities to HSBC in an amount not yet pleaded or determined. HSBC and other parties to the actions have moved to dismiss the Trustee’s claims. The US Bankruptcy Court granted HSBC’s motion to dismiss with respect to certain of the Trustee’s claims in November 2016. In February 2019, the US Court of Appeals for the Second Circuit (the ‘Second Circuit Court of Appeals’) reversed that dismissal. Following the US Supreme Court’s denial of certiorari in June 2020, the cases were remanded to the US Bankruptcy Court, where they are now pending. Fairfield Sentry Limited, Fairfield Sigma Limited and Fairfield Lambda Limited (together, ‘Fairfield’) (in liquidation since July 2009) have brought a lawsuit in the US against fund shareholders, including HSBC companies that acted as nominees for clients, seeking restitution of redemption payments. In December 2018, the US Bankruptcy Court issued an opinion, which ruled in favour of the defendants’ motion to dismiss in respect of certain claims by the liquidators for Fairfield and granted a motion by the liquidators to file amended complaints. As a result of that opinion, all claims against one of the HSBC companies, and certain claims against the remaining HSBC defendants, were dismissed. In May 2019, the liquidators appealed certain issues from the US Bankruptcy Court to the US District Court for the Southern District of New York (the ’New York District Court’) and these appeals remain pending. In January 2020, the liquidators filed amended complaints on the claims remaining in the US Bankruptcy Court. In December 2020, the US Bankruptcy Court granted in part and denied in part motions filed by the defendants, including HSBC, to dismiss the amended complaints. In March 2021, the liquidators and defendants appealed the US Bankruptcy Court’s decision, and these appeals are currently pending. Meanwhile, proceedings before the US Bankruptcy Court with respect to the remaining claims that were not dismissed are ongoing. UK litigation: The Trustee has filed a claim against various HSBC companies in the High Court of England and Wales, seeking recovery of transfers from Madoff Securities to HSBC in an amount not yet pleaded or determined. The deadline for service of the claim has been extended to September 2021 for UK-based defendants and November 2021 for all other defendants. Cayman Islands litigation: In February 2013, Primeo Fund (‘Primeo’) (in liquidation since April 2009) brought an action against HSBC Securities Services Luxembourg (‘HSSL’) and Bank of Bermuda (Cayman) Limited (now known as HSBC Cayman Limited), alleging breach of contract and breach of fiduciary duty and claiming damages and equitable compensation. The trial concluded in February 2017 and, in August 2017, the court dismissed all claims against the defendants. In September 2017, Primeo appealed to the Court of Appeal of the Cayman Islands and, in June 2019, the Court of Appeal of the Cayman Islands dismissed Primeo’s appeal. In August 2019, Primeo filed a notice of appeal to the UK Privy Council. The first of two possible hearings before the UK Privy Council took place during April 2021, where judgment is pending. Luxembourg litigation: In April 2009, Herald Fund SPC (‘Herald’) (in liquidation since July 2013) brought an action against HSSL before the Luxembourg District Court, seeking restitution of cash and securities that Herald purportedly lost because of Madoff Securities’ fraud, or money damages. The Luxembourg District Court dismissed Herald’s securities restitution claim, but reserved Herald’s cash restitution claim and its claim for money damages. Herald has appealed this judgment to the Luxembourg Court of Appeal, where the matter is pending. In late 2018, Herald brought additional claims against HSSL and HSBC Bank plc before the Luxembourg District Court, seeking further restitution and damages. In October 2009, Alpha Prime Fund Limited (‘Alpha Prime’) brought an action against HSSL before the Luxembourg District Court, seeking the restitution of securities, or the cash equivalent, or money damages. In December 2018, Alpha Prime brought additional claims before the Luxembourg District Court seeking damages against various HSBC companies. These matters are currently pending before the Luxembourg District Court. In December 2014, Senator Fund SPC (‘Senator’) brought an action against HSSL before the Luxembourg District Court, seeking restitution of securities, or the cash equivalent, or money damages. In April 2015, Senator commenced a separate action against the Luxembourg branch of HSBC Bank plc asserting identical claims before the Luxembourg District Court. In December 2018, Senator brought additional claims against HSSL and HSBC Bank plc Luxembourg branch before the Luxembourg District Court, seeking restitution of Senator’s securities or money damages. These matters are currently pending before the Luxembourg District Court. Ireland litigation: In November 2013, Defender Limited brought an action against HSBC Institutional Trust Services (Ireland) Limited (‘HTIE’) and others, based on allegations of breach of contract and claiming damages and indemnification for fund losses. The trial commenced in October 2018. In December 2018, the Irish High Court issued a judgment in HTIE’s favour on a preliminary issue, holding that Defender Limited had no effective claim against HTIE. This judgment concluded the trial without further issues in dispute being heard. In February 2019, Defender Limited appealed the decision. In July 2020, the Irish Supreme Court ruled in part in favour of Defender Limited and returned the case to the High Court for further proceedings. In April 2021, the parties reached an agreement to resolve the dispute and, in May 2021, the action against HTIE was discontinued. There are many factors that may affect the range of possible outcomes, and any resulting financial impact, of the various Madoff-related proceedings described above, including but not limited to the multiple jurisdictions in which the proceedings have been brought. Based upon the information currently available, management’s estimate of the possible aggregate damages that might arise as a result of all claims in the various Madoff-related proceedings is up to or exceeding $500m, excluding costs and interest. Due to uncertainties and limitations of this estimate, any possible damages that might ultimately arise could differ significantly from this amount. Anti-money laundering and sanctions-related matters In December 2012, HSBC Holdings entered into a number of agreements, including an undertaking with the UK Financial Services Authority (replaced with a Direction issued by the UK Financial Conduct Authority (‘FCA’) in 2013 and again in 2020) as well as a cease-and-desist order with the US Federal Reserve Board (‘FRB’), both of which contained certain forward-looking anti-money laundering (‘AML’) and sanctions-related obligations. HSBC also agreed to retain an independent compliance monitor (who was, for FCA purposes, a ‘Skilled Person’ under section 166 of the Financial Services and Markets Act and, for FRB purposes, an ‘Independent Consultant’) to produce periodic assessments of the Group’s AML and sanctions compliance programme. In 2020, HSBC’s engagement with the independent compliance monitor, acting in his roles as both Skilled Person and Independent Consultant, concluded. The role of FCA Skilled Person was assigned to a new individual in the second quarter of 2020. Separately, in early 2021, a new FRB Independent Consultant was appointed pursuant to the cease-and-desist order. The roles of each of the FCA Skilled Person and the FRB Independent Consultant are discussed on page 188 of the Annual Report and Accounts 2020 . The FCA is conducting an investigation into HSBC Bank plc’s and HSBC UK Bank plc’s compliance with UK money laundering regulations and financial crime systems and controls requirements. HSBC continues to cooperate with the FCA’s investigation, which is at or nearing completion. Since November 2014, a number of lawsuits have been filed in federal courts in the US against various HSBC companies and others on behalf of plaintiffs who are, or are related to, victims of terrorist attacks in the Middle East. In each case, it is alleged that the defendants aided and abetted the unlawful conduct of various sanctioned parties in violation of the US Anti-Terrorism Act. Currently, nine actions remain pending in federal courts in New York or the District of Columbia. The courts have granted HSBC’s motions to dismiss in five of these cases. Appeals remain pending in two cases, and the remaining three dismissals are also subject to appeal. The four remaining actions are at a very early stage. There are many factors that may affect the range of outcomes, and the resulting financial impact, of these matters, which could be significant. London interbank offered rates, European interbank offered rates and other benchmark interest rate investigations and litigation Euro interest rate derivatives: In December 2016, the European Commission (‘EC’) issued a decision finding that HSBC, among other banks, engaged in anti-competitive practices in connection with the pricing of euro interest rate derivatives in early 2007. The EC imposed a fine on HSBC based on a one-month infringement. HSBC appealed the decision and, in September 2019, the General Court of the European Union (the ‘General Court’) issued a decision largely upholding the EC’s findings on liability but annulling the fine. HSBC and the EC both appealed the General Court’s decision to the European Court of Justice (the ‘Court of Justice’). In June 2021, the EC adopted a new fining decision for an amount which was 5% less than the previously annulled fine, and subsequently withdrew its appeal to the Court of Justice. HSBC’s appeal remains pending. US dollar Libor: Beginning in 2011, HSBC and other panel banks have been named as defendants in a number of private lawsuits filed in the US with respect to the setting of US dollar Libor. The complaints assert claims under various US laws, including US antitrust and racketeering laws, the US Commodity Exchange Act (‘US CEA’) and state law. The lawsuits include individual and putative class actions, most of which have been transferred and/or consolidated for pre-trial purposes before the New York District Court. HSBC has reached class settlements with five groups of plaintiffs, and the court has approved these settlements. HSBC has also resolved several of the individual actions, although a number of other US dollar Libor-related actions remain pending against HSBC in the New York District Court and the Second Circuit Court of Appeals. Intercontinental Exchange (‘ICE’) Libor: Between January and March 2019, HSBC and other panel banks were named as defendants in three putative class actions filed in the New York District Court on behalf of persons and entities who purchased instruments paying interest indexed to US dollar ICE Libor from a panel bank. The complaints allege, among other things, misconduct related to the suppression of this benchmark rate in violation of US antitrust and state law. In July 2019, the three putative class actions were consolidated, and the plaintiffs filed a consolidated amended complaint. In March 2020, the court granted the defendants’ joint motion to dismiss in its entirety. This matter is on appeal. Singapore interbank offered rate (‘Sibor’), Singapore swap offer rate (‘SOR’) and Australia bank bill swap rate (‘BBSW’): In the Sibor/SOR litigation, in March 2021, following an appeal by the plaintiffs, the Second Circuit Court of Appeals reversed the dismissal of the plaintiffs’ third amended complaint and remanded the case to the New York District Court where it remains pending against the defendants, including The Hongkong and Shanghai Banking Corporation Limited. In the BBSW litigation, in November 2018, the court dismissed all foreign defendants, including all the HSBC entities, on personal jurisdiction grounds. In April 2019, the plaintiffs filed an amended complaint, which the defendants moved to dismiss. In February 2020, the court again dismissed the plaintiffs’ amended complaint against all the HSBC entities. There are many factors that may affect the range of outcomes, and the resulting financial impact, of these matters, which could be significant. Foreign exchange-related investigations and litigation Since at least 2014, the EC has been conducting an investigation into trading activities by a number of banks, including HSBC, in the foreign exchange spot market. HSBC is cooperating with this investigation. In January 2018, following the conclusion of the US Department of Justice’s (‘DoJ’) investigation into HSBC’s historical foreign exchange activities, HSBC Holdings entered into a three-year deferred prosecution agreement with the Criminal Division of the DoJ (the ‘FX DPA’), regarding fraudulent conduct in connection with two particular transactions in 2010 and 2011. In January 2021, the FX DPA expired and, in July 2021, the DoJ filed a motion to dismiss the charges deferred by the FX DPA, which remains pending. In December 2016, Brazil’s Administrative Council of Economic Defense initiated an investigation into the onshore foreign exchange market and identified a number of banks, including HSBC, as subjects of its investigation. In June 2020, the Competition Commission of South Africa, having initially referred a complaint for proceedings before the South African Competition Tribunal in February 2017, filed a revised complaint against 28 financial institutions, including HSBC Bank plc and HSBC Bank USA, for alleged anti-competitive behaviour in the South African foreign exchange market. In August 2020, HSBC Bank plc and HSBC Bank USA filed an application to dismiss the revised complaint, which remains pending. Beginning in 2013, various HSBC companies and other banks have been named as defendants in a number of putative class actions filed in, or transferred to, the New York District Court arising from allegations that the defendants conspired to manipulate foreign exchange rates. HSBC has reached class settlements with two groups of plaintiffs, including direct and indirect purchasers of foreign exchange products, and the court has granted final approval of these settlements. A putative class action by a group of retail customers of foreign exchange products remains pending. In September 2018, various HSBC companies and other banks were named as defendants in two motions for certification of class actions filed in Israel alleging foreign exchange-related misconduct. In July 2019, the Tel Aviv Court allowed the plaintiffs to consolidate their claims and, in September 2019, the plaintiffs filed a motion for certification of the consolidated class action. In August 2020, HSBC Bank plc filed a motion to dismiss and, in January 2021, HSBC Holdings filed a motion seeking to challenge the service of the motion for certification on defendants outside Israel. These motions remain pending. In November and December 2018, complaints alleging foreign exchange-related misconduct were filed in the New York District Court and the High Court of England and Wales against HSBC and other defendants by certain plaintiffs that opted out of the direct purchaser class action settlement in the US. These matters remain pending. Additionally, in May 2021, two civil actions were filed in Brazil alleging foreign exchange-related misconduct by various banks, including HSBC, for the period from 2007 to 2013. HSBC has not yet been served with these actions. It is possible that additional civil actions will be initiated against HSBC in relation to its historical foreign exchange activities. There are many factors that may affect the range of outcomes, and the resulting financial impact, of these matters, which could be significant. Precious metals fix-related litigation Gold: Beginning in March 2014, numerous putative class actions were filed in the New York District Court and the US District Courts for the District of New Jersey and the Northern District of California, naming HSBC and other members of The London Gold Market Fixing Limited as defendants. The complaints, which were consolidated in the New York District Court, allege that, from January 2004 to June 2013, the defendants conspired to manipulate the price of gold and gold derivatives for their collective benefit in violation of US antitrust laws, the US CEA and New York state law. In October 2020, HSBC reached a settlement in principle with the plaintiffs to resolve the consolidated action. The settlement remains subject to court approval. Beginning in December 2015, numerous putative class actions under Canadian law were filed in the Ontario and Quebec Superior Courts of Justice against various HSBC companies and other financial institutions. The plaintiffs allege that, among other things, from January 2004 to March 2014, the defendants conspired to manipulate the price of gold and gold derivatives in violation of the Canadian Competition Act and common law. These actions are ongoing. Silver: Beginning in July 2014, numerous putative class actions were filed in federal district courts in New York, naming HSBC and other members of The London Silver Market Fixing Limited as defendants. The complaints allege that, from January 2007 to December 2013, the defendants conspired to manipulate the price of silver and silver derivatives for their collective benefit in violation of US antitrust laws, the US CEA and New York state law. The actions were consolidated in the New York District Court, and discovery is proceeding. In April 2016, two putative class actions under Canadian law were filed in the Ontario and Quebec Superior Courts of Justice against various HSBC companies and other financial institutions. The plaintiffs in both actions allege that, from January 1999 to August 2014, the defendants conspired to manipulate the price of silver and silver derivatives in violation of the Canadian Competition Act and common law. These actions are ongoing. Platinum and palladium: Between late 2014 and early 2015, numerous putative class actions were filed in the New York District Court, naming HSBC and other members of The London Platinum and Palladium Fixing Company Limited as defendants. The complaints allege that, from January 2008 to November 2014, the defendants conspired to manipulate the price of platinum group metals (‘PGM’) and PGM-based financial products for their collective benefit in violation of US antitrust laws and the US CEA. In March 2020, the court granted the defendants' motion to dismiss the plaintiffs’ third amended complaint but granted the plaintiffs leave to re-plead certain claims. The plaintiffs have filed an appeal. Based on the facts currently known, it is not practicable at this time for HSBC to predict the resolution of these matters, including the timing or any possible impact on HSBC, which could be significant. Film finance litigation In July and November 2015, two actions were brought by individuals against HSBC Private Bank (UK) Limited (‘PBGB’) in the High Court of England and Wales seeking damages on various alleged grounds, including breach of duty to the claimants, in connection with their participation in certain Ingenious film finance schemes. These actions are ongoing. In December 2018, a separate action was brought against PBGB in the High Court of England and Wales by multiple claimants seeking damages for alleged unlawful means conspiracy and dishonest assistance in connection with lending provided by PBGB to third parties in respect of certain Ingenious film finance schemes in which the claimants participated. In June 2019, a similar claim was issued against PBGB in the High Court of England and Wales by additional claimants. These actions are ongoing. In June 2020, two separate claims were issued against HSBC UK Bank plc (as successor to PBGB’s business) in the High Court of England and Wales by two separate groups of investors in Eclipse film finance schemes in connection with PBGB’s role in the development of such schemes. These actions are ongoing. In April 2021, HSBC UK Bank plc (as successor to PBGB’s business) was served with a claim issued in the High Court of England and Wales in connection with PBGB’s role in the development of the Zeus film finance schemes. This action is at an early stage. It is possible that additional actions or investigations will be initiated against HSBC UK Bank plc as a result of PBGB’s historical involvement in the provision of certain film finance-related services. Based on the facts currently known, it is not practicable to predict the resolution of these matters, including the timing or any possible impact on HSBC, which could be significant. Other regulatory investigations, reviews and litigation HSBC Holdings and/or certain of its affiliates are subject to a number of other investigations and reviews by various regulators and competition and law enforcement authorities, as well as litigation, in connection with various matters relating to the firm’s businesses and operations, including: • investigations by tax administration, regulatory and law enforcement authorities in Argentina, India and elsewhere in connection with allegations of tax evasion or tax fraud, money laundering and unlawful cross-border banking solicitation; • an investigation by the US Commodity Futures Trading Commission regarding interest rate swap transactions related to, among other things, bond issuances; • an investigation by the FCA in connection with collections and recoveries operations in the UK; • an investigation by the UK Competition and Markets Authority concerning the financial services sector; • a putative class action brought in the New York District Court relating to the Mexican government bond market; • two group actions pending in the US courts and a claim issued in the High Court of England and Wales in connection with HSBC Bank plc’s role as a correspondent bank to Stanford International Bank Ltd from 2003 to 2009; and • litigation brought against various HSBC companies in the US courts relating to residential mortgage-backed securities, based primarily on (a) claims brought against HSBC Bank USA in connection with its role as trustee on behalf of various securitisation trusts; and (b) claims against several HSBC companies seeking that the defendants repurchase various mortgage loans. There are many factors that may affect the range of outcomes, and the resulting financial impact, of these matters, which could be significant. |
Transactions with related parti
Transactions with related parties | 6 Months Ended |
Jun. 30, 2021 | |
Related Party [Abstract] | |
Transactions with related parties | 14 Transactions with related parties There were no changes in the related party transactions described in the Annual Report and Accounts 2020 that have had a material effect on the financial position or performance of HSBC in the half-year to 30 June 2021. All related party transactions that took place in the half-year to 30 June 2021 were similar in nature to those disclosed in the Annual Report and Accounts 2020 . |
Business disposals
Business disposals | 6 Months Ended |
Jun. 30, 2021 | |
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners [abstract] | |
Business disposals | 15 Business disposals In the first half of 2021, we accelerated the pace of execution on our strategic ambition to be the preferred international financial partner for our clients with the announcements of the potential sale of our retail banking businesses in France, as well as the exit of domestic mass market retail banking in the US . Potential sale of the retail banking business in France On 18 June 2021, HSBC Continental Europe signed a memorandum of understanding with Promontoria MMB SAS (‘My Money Group’), its subsidiary Banque des Caraïbes SA and My Money Bank, regarding the potential sale of HSBC Continental Europe’s retail banking business in France. The potential sale includes: HSBC Continental Europe’s French retail banking business; the Crédit Commercial de France (‘CCF’) brand; and, subject to the satisfaction of relevant conditions, HSBC Continental Europe’s 100% ownership interest in HSBC SFH (France) and its 3% ownership interest in Crédit Logement. The sale would generate an estimated loss before tax including related transaction costs for the Group of $2.3bn, together with an additional $0.7bn impairment of goodwill. There would be no immediate tax benefit recognised in respect of the sale loss nor impairment. The vast majority of the estimated loss for the write-down of the disposal group to fair value less costs to sell will be recognised when it is classified as held for sale in accordance with IFRS 5, which is currently anticipated to be in 2022. Subsequently, the disposal group classified as held for sale will be remeasured at the lower of carrying amount and fair value less costs to sell at each reporting period. Any remaining gain or loss not previously recognised shall be recognised at the date of derecognition, which is currently anticipated to be in the first half of 2023. At 30 June 2021, the value of the total assets of the business to be sold was $28.2bn, including $25.6bn of loans and advances to customers, and the value of customer accounts was $23.5bn. US retail banking business On 26 May 2021, we announced that we will exit our US mass market retail banking business, including our Personal and Advance propositions, as well as retail business banking, and will rebrand approximately 20 to 25 of our retail branches into international wealth centres to serve our Premier and Jade customers. In conjunction with the execution of this strategy, HSBC Bank USA, N.A. has entered into definitive sale agreements with Citizens Bank and Cathay Bank to sell approximately 90 of our retail branches along with substantially all residential mortgage, unsecured and retail business banking loans and all deposits in our branch network not associated with our Premier, Jade and Private Banking customers. Certain assets under management associated with our mass market retail banking business will also be transferred. The remaining branches not sold or rebranded will be closed. |
Events after the balance sheet
Events after the balance sheet date | 6 Months Ended |
Jun. 30, 2021 | |
Events After Reporting Period [Abstract] | |
Events after the balance sheet date | 16 Events after the balance sheet date In its assessment of events after the balance sheet date, HSBC has considered and concluded that no material events have occurred resulting in adjustments to the financial statements. |
Interim Report 2021 and statuto
Interim Report 2021 and statutory accounts | 6 Months Ended |
Jun. 30, 2021 | |
Interim Financial Reporting [Abstract] | |
Interim Report 2021 and statutory accounts | 17 Interim Report 2021 and statutory accounts The information in this Interim Report 2021 is unaudited and does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. This Interim Report 2021 |
Report of the directors financi
Report of the directors financial review risk report | 6 Months Ended |
Jun. 30, 2021 | |
Report Of The Directors Financial Review Risk Report [Abstract] | |
Report Of The Directors Financial Review Risk Report | Credit risk in the first half of 2021 There were no material changes to credit risk policy in the first half of 2021. A summary of our current policies and practices for the management of credit risk is set out in ‘Credit risk management’ on page 119 of the Annual Report and Accounts 2020. At 30 June 2021, gross loans and advances to customers and banks of $1,159bn increased by $25.2bn, compared with 31 December 2020. This included adverse foreign exchange movements of $1.5bn and a $2.6bn decrease due to the exit of domestic mass market retail banking in the US being reclassified to assets held for sale. Excluding foreign exchange movements, the growth was driven by a $21.2bn increase in personal loans and advances to customers and a $6.0bn increase in loans and advances to banks. Wholesale loans and advances to customers decreased by $0.5bn. The increase in personal loans and advances to customers was driven by other personal loans growth of $12.5bn, mainly in Hong Kong (up $13.0bn). Mortgages increased by $10.0bn, mainly in the UK (up 5.1bn), Hong Kong (up $2.9bn) and Canada (up $2.0bn). This was partly offset by a decrease of $1.0bn in credit cards, mainly in the US (down $0.4bn) and Hong Kong (down $0.2bn). During the first six months of 2021, the Group experienced a release in allowances for ECL, which was driven by improving economic forecasts. Excluding foreign exchange movements, the allowance for ECL in relation to loans and advances to customers decreased by $1.6bn from 31 December 2020. This was attributable to: • a $0.9bn decrease in wholesale loans and advances to customers, of which $0.7bn was driven by stages 1 and 2; and • a $0.7bn decrease in personal loans and advances to customers, of which $0.6bn was driven by stages 1 and 2. At 30 June 2021, the allowance for ECL of $13.8bn decreased by $1.9bn compared with 31 December 2020, including favourable foreign exchange movements of $0.1bn. The $13.8bn allowance comprised $13.1bn in respect of assets held at amortised cost, $0.6bn in respect of loan commitments and financial guarantees, and $0.1bn in respect of debt instruments measured at fair value through other comprehensive income (‘FVOCI’). Stage 3 balances at 30 June 2021 remained broadly stable compared with 31 December 2020. The ECL release for the first six months of 2021 was $719m, inclusive of recoveries. This comprised: $633m in respect of wholesale lending, of which the stage 3 and purchased or originated credit impaired ('POCI') charge was $196m; $116m in respect of personal lending, of which the stage 3 charge was $221m; and $26m in respect of debt instruments measured at FVOCI, partly offset by a charge of $56m in other financial assets measured at amortised cost. Uncertainty remains as countries emerge from the pandemic at different speeds, government support measures unwind and new virus strains test the efficacy of vaccination programmes. During 1H21, we continued to provide Covid-19-related support to customers under the current policy framework. For further details of market-specific measures to support our personal and business customers, see page 75. Summary of credit risk The following disclosure presents the gross carrying/nominal amount of financial instruments to which the impairment requirements in IFRS 9 are applied and the associated allowance for ECL. The following tables analyse loans by industry sector and represent the concentration of exposures on which credit risk is managed. The allowance for ECL decreased from $15.7bn at 31 December 2020 to $13.8bn at 30 June 2021. Summary of financial instruments to which the impairment requirements in IFRS 9 are applied At 30 Jun 2021 At 31 Dec 2020 Gross carrying/ Allowance for ECL 1 Gross carrying/ Allowance for ECL 1 $m $m $m $m Loans and advances to customers at amortised cost 1,072,375 (12,864) 1,052,477 (14,490) – personal 482,447 (4,006) 460,809 (4,731) – corporate and commercial 520,201 (8,640) 527,088 (9,494) – non-bank financial institutions 69,727 (218) 64,580 (265) Loans and advances to banks at amortised cost 86,905 (19) 81,658 (42) Other financial assets measured at amortised cost 854,504 (224) 772,408 (175) – cash and balances at central banks 393,562 (3) 304,486 (5) – items in the course of collection from other banks 9,406 — 4,094 — – Hong Kong Government certificates of indebtedness 41,880 — 40,420 — – reverse repurchase agreements – non-trading 201,714 — 230,628 — – financial investments 84,662 (88) 88,719 (80) – prepayments, accrued income and other assets 2 123,280 (133) 104,061 (90) Total gross carrying amount on-balance sheet 2,013,784 (13,107) 1,906,543 (14,707) Loans and other credit-related commitments 661,373 (530) 659,783 (734) – personal 238,559 (23) 236,170 (40) – corporate and commercial 288,414 (475) 299,802 (650) – financial 134,400 (32) 123,811 (44) Financial guarantees 27,274 (64) 18,384 (125) – personal 919 (1) 900 (1) – corporate and commercial 21,679 (58) 12,946 (114) – financial 4,676 (5) 4,538 (10) Total nominal amount off-balance sheet 3 688,647 (594) 678,167 (859) 2,702,431 (13,701) 2,584,710 (15,566) Fair Memorandum allowance for ECL 4 Fair Memorandum allowance for ECL 4 $m $m $m $m Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) 348,107 (111) 399,717 (141) 1 Total ECL is recognised in the loss allowance for the financial asset unless total ECL exceeds the gross carrying amount of the financial asset, in which case the ECL is recognised as a provision. 2 Includes only those financial instruments that are subject to the impairment requirements of IFRS 9. ‘Prepayments, accrued income and other assets’, as presented within the consolidated balance sheet on page 100, includes both financial and non-financial assets. The 30 June 2021 balances include $2,649m gross carrying amounts and $48m allowances for ECL related to assets held for sale due to the exit of domestic mass market retail banking in the US. 3 Represents the maximum amount at risk should the contracts be fully drawn upon and clients default. 4 Debt instruments measured at FVOCI continue to be measured at fair value with the allowance for ECL as a memorandum item. Change in ECL is recognised in ‘Change for expected credit losses and other credit impairment charges’ in the income statement. Measurement uncertainty and sensitivity analysis of ECL estimates There remains a high degree of uncertainty as countries emerge from the pandemic at different speeds, government support measures unwind and new virus strains test the efficacy of vaccination programmes. As a result of this uncertainty, management judgements and estimates reflect a degree of caution. Over 2020, stage 1 and stage 2 ECL provisions on loans increased by $3.9bn, reflecting mainly the evolution of the global pandemic, and while they reduced by $1.5bn in 1H21 as economic conditions recovered, $2.4bn of the 2020 uplift remained at 1H21 ($1.7bn wholesale and $0.7bn retail). Caution is reflected both in the selection of economic scenarios and their weightings, and in the management judgemental adjustments, which reflect how economic conditions interact with modelled outcomes, and are described in more detail below. The highest degree of uncertainty in ECL estimates relates to the UK. The recognition and measurement of ECL involves the use of significant judgement and estimation. We form multiple economic scenarios based on economic forecasts, apply these assumptions to credit risk models to estimate future credit losses, and Methodology Four economic scenarios have been used to capture the exceptional nature of the current economic environment and to articulate management’s view of the range of potential outcomes. Scenarios produced to calculate ECL are aligned to HSBC’s top and emerging risks. Three of these scenarios are drawn from consensus forecasts and distributional estimates. The Central scenario is deemed the ‘most likely’ scenario, and usually attracts the largest probability weighting, while the outer scenarios represent the tails of the distribution, which are less likely to occur. The Central scenario is created using the average of a panel of external forecasters, while consensus Upside and Downside scenarios are created with reference to distributions for select markets that capture forecasters’ views of the entire range of outcomes. Management has chosen to use an additional scenario to represent its view of severe downside risks. The use of an additional scenario is in line with HSBC’s forward economic guidance methodology and has been regularly used over the course of 2021. Management may include additional scenarios if it Description of consensus economic scenarios The economic assumptions presented in this section have been formed by HSBC, with reference to external forecasts specifically for the purpose of calculating ECL. Global economic growth is experiencing a recovery in 2021, following an unprecedented contraction in 2020. Restrictions to mobility have started to ease across our key markets, aided in some cases by the successful roll-out of vaccination programmes. Data from vaccinated groups suggests vaccines provide a high level of immunity against the Covid-19 virus despite the emergence of more transmissible variants. To date, vaccinations have shown their effectiveness in lowering hospitalisations and deaths. A rapid roll-out of vaccination programmes has been a key factor enabling economies to reopen and some resumption of travel. The emergence of new variants that reduce the efficacy of vaccines remains a risk. Economic forecasts are subject to a high degree of uncertainty in the current environment. While risks to the economic outlook are dominated by the progression and management of the pandemic and vaccine roll-out, geopolitical risks also present downside threats. These geopolitical risks include continued differences between the US and China over a range of issues, dampened business sentiment in Hong Kong, and the evolution of the UK’s relationship with the EU. Four global scenarios have been used for the purpose of calculating ECL at 30 June 2021. These are the consensus Central scenario, the consensus Upside scenario, the consensus Downside scenario and an additional Downside scenario. The scenarios used to calculate ECL in the Interim Report 2021 are described below. The consensus Central scenario Following a severe and unprecedented drop in global economic activity in 2020, HSBC’s Central scenario features a sharp recovery in 2021, followed by a subsequent normalisation of growth. The The Central scenario further assumes that the stringent restrictions on activity, employed across several countries and territories in 2020 and the first half of 2021, will not be repeated. This will allow economic activity to first rebound and then revert to more normal long-run trend rates of growth. Minimal long-term damage to economic prospects is expected. Cross-region differences in the speed and scale of recovery across the forecast horizon reflect timing differences in the progression of the Covid-19 outbreak, different speeds of roll-out of vaccination programmes, national level differences in restrictions imposed and the scale of support measures. Global GDP is expected to grow by 5.3% in 2021 in the Central scenario. The average rate of global GDP growth is expected to be 3.3% over the forecast period, which is higher than the average growth rate over the five-year period prior to the onset of the pandemic. The unique circumstances surrounding the current fall in economic activity make it difficult to compare current prospects for global economic activity with previous recessions. However, we note that the depth of the contraction in economic activity and the subsequent recovery are both expected to be sharper than experienced during the last global economic downturn of Across the key markets, the Central scenario assumes the following: • Economic growth is expected to increase sharply in 2021 as governments ease restrictions to mobility, encouraging consumers and firms to spend and invest. GDP is expected to grow across all our major markets in 2021. Country-specific measures aimed at supporting labour markets as economies reopen will affect the rate at which unemployment will decline. • Inflation is expected to rise in 2021 in line with the economic recovery, before gradually converging back to central bank targets over the forecast period. • Fiscal deficits are expected to reduce gradually over the course of the projection period from their peak in 2020 following a period where governments, in several of our key markets, provided extensive support to households and corporates. Sovereign indebtedness is expected to remain at high levels. • Interest rate policy is expected to be highly accommodative over the projection horizon after major central banks lowered their main policy interest rates, implemented emergency support measures for funding markets, and either restarted or increased quantitative easing programmes, in order to support economies and the financial system. • The West Texas Intermediate oil price is forecast to average $58 per barrel over the projection period. The Central scenario was first created with forecasts available in May, and subsequently updated in June to reflect significant changes to forecasts. Probability weights assigned to the Central scenario reflect both the higher level of uncertainty in the current global economic environment and relative differences across markets. Weights assigned to the Central scenario vary from 45% to 80%. The following table describes key macroeconomic variables and the probabilities assigned in the consensus Central scenario. Central scenario 3Q21–2Q26 UK US Hong Kong Mainland China Canada France UAE Mexico % % % % % % % % GDP growth rate 2021: Annual average growth rate 6.1 6.1 5.2 8.5 5.8 4.9 2.5 4.9 2022: Annual average growth rate 5.5 4.0 3.2 5.5 3.9 3.9 3.8 2.9 2023: Annual average growth rate 2.2 2.3 2.7 5.3 2.3 2.1 3.0 2.3 5-year average 3.0 2.9 2.6 5.0 2.6 2.1 3.6 2.4 Unemployment rate 2021: Annual average rate 5.8 5.5 6.2 3.9 7.6 8.9 2.7 4.5 2022: Annual average rate 5.8 4.3 4.6 3.8 6.3 8.7 2.7 4.2 2023: Annual average rate 5.0 4.0 3.9 3.8 6.1 8.4 2.7 4.1 5-year average 5.1 4.1 4.0 3.8 6.1 8.3 2.7 4.2 House price growth 2021: Annual average growth rate 8.3 11.9 2.6 4.3 16.1 4.5 (3.9) 5.4 2022: Annual average growth rate 2.7 6.2 3.9 6.0 6.4 3.5 (0.7) 5.2 2023: Annual average growth rate 2.5 4.4 2.5 5.4 2.6 4.2 0.3 4.7 5-year average 3.0 5.1 2.9 4.9 4.7 3.5 0.8 4.6 Short-term interest rate 2021: Annual average rate 0.2 0.3 0.9 3.4 0.5 (0.6) 0.8 4.5 2022: Annual average rate 0.3 0.4 1.2 3.4 0.7 (0.6) 0.9 5.5 2023: Annual average rate 0.5 0.7 1.6 3.5 1.2 (0.5) 1.2 6.4 5-year average 0.6 1.1 1.9 3.5 1.4 (0.4) 1.5 6.4 Probability 50 75 70 80 70 45 65 65 The graphs comparing the respective Central scenarios in the second quarters of 2020 and 2021 reveal the extent of economic dislocation that occurred in 2020 and compare current economic expectations with those held a year ago. GDP growth: Comparison of Central scenarios UK Note: Real GDP shown as year-on-year percentage change. Hong Kong Note: Real GDP shown as year-on-year percentage change. US Note: Real GDP shown as year-on-year percentage change. Mainland China Note: Real GDP shown as year-on-year percentage change. The consensus Upside scenario Compared with the consensus Central scenario, the consensus Upside scenario features a faster recovery in economic activity during the first two years, before converging to long-run trends. The scenario is consistent with a number of key upside risk themes. These include the orderly and rapid global abatement of Covid-19 via successful containment and prompt deployment of vaccines; de-escalation of tensions between the US and China; The following table describes key macroeconomic variables and the probabilities assigned in the consensus Upside scenario. Consensus Upside scenario best outcome UK US Hong Kong Mainland China Canada France UAE Mexico % % % % % % % % GDP growth rate 11.1 (1Q22) 11.0 (1Q22) 10.0 (2Q22) 13.5 (2Q22) 11.2 (2Q22) 8.3 (2Q22) 14.9 (1Q22) 8.6 (2Q22) Unemployment rate 3.4 (2Q23) 2.2 (1Q22) 3.2 (2Q23) 3.6 (3Q22) 4.7 (1Q22) 7.2 (3Q22) 2.2 (2Q22) 3.0 (1Q22) House price growth 9.1 (3Q21) 12.0 (3Q21) 8.9 (4Q21) 13.9 (2Q22) 20.2 (4Q21) 6.1 (3Q22) 21.1 (3Q22) 8.7 (3Q22) Short-term interest rate 0.2 (3Q21) 0.5 (3Q21) 1.2 (3Q21) 3.4 (3Q21) 0.6 (3Q21) (0.6) (1Q22) 1.0 (3Q21) 5.0 (3Q21) Probability 5 5 5 10 10 5 5 5 Note: Extreme point in the consensus Upside is ‘best outcome’ in the scenario, for example the highest GDP growth and the lowest unemployment rate, in the first two years of the scenario. The consensus Downside scenario In the consensus Downside scenario, economic recovery is considerably weaker compared with the Central scenario. GDP growth remains weak, unemployment rates stay elevated and asset and commodity prices fall before gradually recovering towards their long-run trends. The scenario is consistent with the key downside risks articulated above. Further outbreaks of Covid-19, coupled with delays in vaccination programmes, lead to longer-lasting restrictions on economic activity in this scenario. Other global risks also increase and drive a rise in risk aversion in asset markets. The following table describes key macroeconomic variables and the probabilities assigned in the consensus Downside scenario. Consensus Downside scenario worst outcome UK US Hong Kong Mainland China Canada France UAE Mexico % % % % % % % % GDP growth rate 0.4 (2Q23) (0.6) (2Q22) (6.0) (1Q22) (0.7) (4Q21) (0.5) (1Q22) (1.6) (3Q21) (3.3) (3Q22) (2.7) (1Q22) Unemployment rate 7.3 (2Q22) 6.9 (1Q22) 7.1 (3Q21) 4.1 (4Q21) 8.3 (4Q21) 11.0 (4Q21) 3.2 (2Q22) 5.5 (4Q21) House price growth (3.7) (4Q22) 2.7 (4Q22) (8.0) (2Q22) 0.8 (2Q22) (2.3) (4Q22) 0.3 (1Q22) (17.0) (4Q22) 2.3 (3Q22) Short-term interest rate 0.2 (2Q23) 0.4 (1Q22) 1.2 (2Q23) 3.1 (3Q21) 0.4 (2Q23) (0.6) (3Q21) 0.9 (4Q21) 3.4 (3Q21) Probability 30 15 20 8 10 35 25 25 Note: Extreme point in the consensus Downside is ‘worst outcome’ in the scenario, for example the lowest GDP growth and the highest unemployment rate, in the first two years of the scenario. Additional Downside scenario An additional Downside scenario that features a global recession has been created to reflect management’s view of severe risks. Such a scenario has been in use since 2Q20. In this scenario, infections rise over the second half of 2021, with setbacks to vaccine programmes such that it takes until the end of 2022 for the pandemic to come to an end. The scenario also assumes governments and central banks are unable to significantly increase fiscal and monetary programmes, which results in a rise in unemployment and a fall in asset prices. In Hong Kong and France, the impacts on the unemployment rate are similar to those in the consensus Downside scenario, reflective of recent historical experiences. GDP growth is stronger in the additional Downside scenario compared with the other scenarios and this stronger bounce-back is a consequence of the deeper initial economic contraction. The following table describes key macroeconomic variables and the probabilities assigned in the additional Downside scenario. Additional Downside scenario worst outcome UK US Hong Kong Mainland China Canada France UAE Mexico % % % % % % % % GDP growth rate (2.1) (2Q22) (4.4) (2Q22) (10.6) (1Q22) (7.4) (2Q22) (4.6) (2Q22) (3.1) (1Q22) (11.6) (2Q22) (7.6) (2Q22) Unemployment rate 9.3 (3Q22) 11.0 (2Q23) 7.1 (3Q21) 5.7 (1Q23) 9.8 (2Q22) 11.1 (4Q21) 4.4 (3Q21) 6.1 (4Q22) House price growth (7.8) (2Q22) (5.7) (2Q22) (17.0) (2Q22) (20.7) (2Q22) (16.1) (3Q22) (5.9) (2Q22) (18.1) (2Q22) 0.9 (4Q22) Short-term interest rate 1.0 (4Q21) 1.3 (4Q21) 2.1 (3Q21) 4.8 (4Q21) 0.5 (3Q21) 0.3 (4Q21) 0.4 (4Q21) 7.2 (4Q21) Probability 15 5 5 2 10 15 5 5 Note: Extreme point in the additional Downside is ‘worst outcome’ in the scenario, for example the lowest GDP growth and the highest unemployment rate, in the first two years of the scenario. In considering economic uncertainty and assigning probabilities to scenarios, management has considered both global and country-specific factors. This has led management to assigning scenario probabilities that are tailored to its view of uncertainty in individual markets. To inform its view, management has considered trends in the progression of the virus in individual countries, the expected reach and efficacy of vaccine roll-outs over the course of 2021, the size and effectiveness of future government support schemes and the connectivity with other countries. Management has also been guided by the actual response to the Covid-19 outbreak and by the economic experience across countries in 2020. China’s visible success at containing the virus and its repeated rapid response to localised outbreaks, coupled with government support programmes and clear signs of economic recovery, have led management to conclude that the economic outlook for mainland China is the least volatile out of all our top markets. The Central scenario for mainland China has an 80% probability while a total of 10% has been assigned to the two Downside scenarios. In Hong Kong, the combination of recurrent outbreaks in the recent past, delays to its vaccination programme, evidence of vaccine hesitancy which has delayed the original target of reaching widespread immunity by the end of the third quarter this year, and the other risks outlined above, have led management to assign 25% weight to the two Downside scenarios. The UK and France face the greatest economic uncertainties in our key markets. In the UK, the discovery of more infectious strains of the virus and subsequent national restrictions on activity imposed before the end of 2020, as well as the current increase in infections, have resulted in considerable uncertainty in the economic outlook. In France, the increases in cases and hospitalisations in the first few months of 2021, the difficulties experienced with the launch of a national vaccination programme and the spread of a more infectious strain of the virus similarly affect the economic outlook. Given these considerations, the consensus Central scenarios for the UK and France have been assigned probabilities of 50% and 45% respectively, while the consensus Downside scenarios have been allocated 30% and 35%. The additional Downside scenario has been assigned 15% probability to each of these markets to reflect the view that the balance of risks is weighted to the downside, and the consensus Upside scenario for these countries has been given a 5% probability. For the US, Canada and Mexico, connectivity across the three North American economies has been considered. In the UAE, the impact of the oil price on the economy and the ability of non-oil sectors to contribute to economic recovery have influenced the view of uncertainty. The Central scenario has been assigned between 65% and 75% weight for these four markets and, with risks perceived as being weighted to the downside, the two Downside scenarios have been given weights of between 20% and 30%. The following graphs show the historical and forecasted GDP growth rate for the various economic scenarios in our four largest markets. US UK Hong Kong Mainland China Note: Real GDP shown as year-on-year percentage change. Critical accounting estimates and judgements The calculation of ECL under IFRS 9 involves significant judgements, assumptions and estimates, as set out in the Annual Report and Accounts 2020 under ‘Critical accounting estimates and judgements’. The level of estimation uncertainty and judgement has remained high since 31 December 2020 as a result of the economic effects of the Covid-19 outbreak, including judgements relating to: • the selection and weighting of economic scenarios, given rapidly changing economic conditions in an unprecedented manner, uncertainty as to the effect of government and central bank support measures designed to alleviate adverse economic impacts, and a wide distribution of economic forecasts. There is judgement in making assumptions about the length of time and severity of the economic effects of the pandemic and the shape of recovery; • estimating the economic effects of those scenarios on ECL, when the volatility of economic changes associated with the pandemic are outside the observable historical trends that can be reflected in the models. Modelled assumptions and linkages between economic factors and credit losses may underestimate or overestimate ECL in these conditions, including the effect of real estate prices on modelled ECL outcomes; and • the identification of customers experiencing significant increases in credit risk and credit impairment, where judgements are made about the extent to which government support programmes have deferred or mitigated the risk of defaults, and the effects once support levels are reduced, particularly in relation to lending in high-risk and vulnerable sectors. Where customers have accepted payment deferrals and other reliefs designed to address short-term liquidity issues, or have extended those deferrals, judgements include the extent to which they are able to meet their financial obligations on returning to their original terms. The use of segmentation techniques for indicators of significant increases in credit risk for retail customers involves estimation uncertainty. How economic scenarios are reflected in ECL calculations The methodologies for the application of forward economic guidance into the calculation of ECL for wholesale and retail loans and portfolios are set out on page 132 of the Annual Report and Accounts 2020 . Models are used to reflect economic scenarios on ECL estimates. These models are based largely on historical observations and correlations with default rates. We continue to observe volatility in macroeconomic variables as a result of the Covid-19 pandemic, which – together with significant governmental support programmes, forbearance and payment holidays – have impacted model performance and historical correlations between macroeconomic variables and defaults. As economic forecasts begin to improve, the level and speed of economic recovery remains outside the range of historical experience used to calibrate the models, and the timing of defaults has considerably shifted from the modelled assumptions. Management judgements have been used to overcome the limitations in the model generated outcome, increasing the ECL. Management judgemental adjustments arise when data and model limitations are addressed in the short term using in-model and post-model adjustments. This includes refining model inputs and outputs and using post-model adjustments based on management judgement and higher level quantitative analysis for impacts that are difficult to model. Management judgemental adjustments In the context of IFRS 9, management judgemental adjustments are typically short-term increases or decreases to the ECL at either a customer or portfolio level to account for late-breaking events, model deficiencies and other assessments applied during management review and challenge. At 30 June 2021, management judgements were applied to reflect credit risk dynamics not captured by our models. The drivers of the management judgemental adjustments continue to evolve with the economic environment. We have internal governance in place to monitor management judgemental adjustments regularly and, where possible, to reduce the reliance on these through model recalibration or redevelopment, as appropriate. Wider-ranging model changes will take time to develop and need observable loss data on which models can be developed. Models will be revisited over time once the longer-term impacts of the Covid-19 outbreak are observed. Therefore, we continue to anticipate significant management judgemental adjustments for the foreseeable future. Judgemental adjustments, which primarily relate to delays in the timing and extent of defaults, will likely cease to occur when macroeconomic forecasts have stabilised and move within the range of historical experience, portfolio impacts due to unwinding of government schemes become visible and the uncertainty due to Covid-19 reduces. The wholesale and retail management judgemental adjustments are presented as part of the global business impairment committees with representation from Model Risk Management. This is in line with the governance process as set out on page 120 of the Annual Report and Accounts 2020 . Management judgemental adjustments made in estimating the reported ECL at 30 June 2021 are set out in the following table. The table includes adjustments in relation to data and model limitations resulting from the pandemic, and as a result of the regular process of model development and implementation. It shows the adjustments applicable to the scenario-weighted ECL numbers. Management judgemental adjustments to ECL at 30 June 2021 1 Retail Wholesale Total $bn $bn $bn Low-risk counterparties (banks, sovereigns and government entities) 0.1 (0.8) (0.7) Corporate lending adjustments 1.4 1.4 Retail lending probability of default adjustments (0.1) (0.1) Retail model default timing adjustments 0.4 0.4 Macroeconomic-related adjustments 0.6 0.6 Other retail lending adjustments 0.3 0.3 Total 1.3 0.7 2.0 Management judgemental adjustments to ECL at 31 December 2020 1 Retail Wholesale Total $bn $bn $bn Low-risk counterparties (banks, sovereigns and government entities) — (0.7) (0.7) Corporate lending adjustments 0.5 0.5 Retail lending probability of default adjustments (0.8) (0.8) Retail model default timing adjustments 1.9 1.9 Macroeconomic-related adjustments 0.1 0.1 Other retail lending adjustments 0.3 0.3 Total 1.5 (0.2) 1.3 1 Management judgemental adjustments presented in the table reflect increases or (decreases) to ECL, respectively. In the wholesale portfolio, management judgemental adjustments were an ECL increase of $0.7bn (31 December 2020: $0.2bn decrease). The adjustments relating to wholesale low-credit risk exposures decreased ECL by $0.8bn at 30 June 2021 (31 December 2020: $0.7bn decrease). These were mainly to highly rated banks, sovereigns and US government-sponsored entities, where modelled credit factors did not fully reflect the underlying fundamentals of these entities or the effect of government support and economic programmes in the Covid-19 environment. Adjustments to corporate exposures increased ECL by $1.4bn at 30 June 2021 (31 December 2020: $0.5bn increase). These principally reflected the outcome of management judgements for high-risk and vulnerable sectors in some of our key markets, supported by credit experts’ input, quantitative analyses and benchmarks. Considerations include uncertainty around vaccine efficacy and risk of new variants and, uncertainty around timing and extent of defaults in some sectors due to government intervention. The increase in adjustment impact relative to In the retail portfolio, management judgemental adjustments were an ECL increase of $1.3bn at 30 June 2021 (31 December 2020: $1.5bn increase). The retail model default timing adjustment increased ECL by $0.4bn (31 December 2020: $1.9bn increase). This was applied in several economies as customer relief and government support programmes continue to delay the emergence of defaults. The level of adjustment decreased during the period given the improvement in macroeconomic forecasts and the unwinding in a number of markets as customer relief and government support concludes. Retail models are reliant on the assumption that as macroeconomic conditions deteriorate, defaults will crystallise. We will monitor the continuation of customer relief and government support programmes that have stabilised macroeconomic conditions and therefore the timing of retail model defaults. The retail lending probability of default adjustments decreased ECL by $0.1bn (31 December 2020: $0.8bn decrease). These related to severe projections of macroeconomic variables that are outside the historical observations on which IFRS 9 models have been built and calibrated to operate. The majority of scenarios are now within historical observations leading to lower levels of adjustment. Macroeconomic-related adjustments increased ECL by $0.6bn Other retail lending adjustments increased ECL by $0.3bn (31 December 2020: $0.3bn increase), reflecting those who remain in or have recently exited customer support programmes and all other data and model adjustments. Economic scenarios sensitivity analysis of ECL estimates Management consid |
Basis of preparation and sign_2
Basis of preparation and significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Compliance with International Financial Reporting Standards | (a) Compliance with International Financial Reporting Standards Our interim condensed financial statements have been prepared on the basis of the policies set out in the 2020 annual financial statements and in accordance with UK adopted IAS 34 ‘Interim Financial Reporting’, IAS 34 ‘Interim Financial Reporting’ as issued by the International Accounting Standards Board (‘IASB’), IAS 34 ‘Interim Financial Reporting’ as adopted by the EU and the Disclosure Guidance and Transparency Rules sourcebook of the UK’s Financial Conduct Authority. Therefore, they include an explanation of events and transactions that are significant to an understanding of the changes in HSBC’s financial position and performance since the end of 2020. These financial statements should be read in conjunction with the Annual Report and Accounts 2020, which were prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and international financial reporting standards adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union, and International Financial Reporting Standards (‘IFRSs’) as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee. At 30 June 2021, there were no unendorsed standards effective for the half-year to 30 June 2021 affecting these financial statements, and there was no difference between IFRSs adopted by the UK, IFRSs as adopted by the EU and IFRSs issued by the IASB in terms of their application to HSBC. The financial statements for HSBC for the year ended 31 December 2021 will be prepared in accordance with IFRS as adopted by the UK, international financial reporting standards adopted by the EU and IFRSs as issued by the IASB, including interpretations issued by the IFRS Interpretations Committee. Standards applied during the half-year to 30 June 2021 |
Use of estimates and judgements | (b) Use of estimates and judgements Management believes that our critical accounting estimates and judgements are those that relate to impairment of amortised cost and FVOCI debt financial assets, the valuation of financial instruments, deferred tax assets, provisions for liabilities, defined benefit obligations, interests in associates, impairment of non-financial assets and post-employment benefits. There were no changes in the current period to the critical accounting estimates and judgements applied in 2020, which are stated on pages 77 and 289 of the Annual Report and Accounts 2020. |
Future accounting developments | (d) Future accounting developments IFRS 17 ‘Insurance Contracts’ was issued in May 2017, with amendments to the standard issued in June 2020. It has not been adopted for use in the UK or in the EU. The standard sets out the requirements that an entity should apply in accounting for insurance contracts it issues and reinsurance contracts it holds. Following the amendments, IFRS 17 is effective from 1 January 2023. The Group is in the process of implementing IFRS 17. Industry practice and interpretation of the standard are still developing. Therefore, the likely impact of its implementation remains uncertain. However, compared with the Group’s current accounting policy for insurance, there will be no PVIF asset recognised; rather the estimated future profit will be included in the measurement of the insurance contract liability as the contractual service margin and gradually recognised in revenue as services are provided over the duration of the insurance contract. |
Going concern | (e) Going concern The financial statements are prepared on a going concern basis, as the Directors are satisfied that the Group and parent company have the resources to continue in business for the foreseeable future. In making this assessment, the Directors have considered a wide range of information relating to present and future conditions, including future projections of profitability, cash flows, capital requirements and capital resources. These considerations include stressed scenarios that reflect the continuing uncertainty that the global Covid-19 pandemic has had on HSBC’s operations, as well as considering potential impacts from other top and emerging risks, and the related impact on profitability, capital and liquidity. |
Net fee income (Tables)
Net fee income (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Analysis of income and expense [abstract] | |
Summary of net fee income | Half-year to 30 Jun 30 Jun 31 Dec 2021 2020 2020 $m $m $m Net fee income by product Funds under management 1,304 1,113 1,176 Cards 1,035 954 995 Broking income 895 743 796 Credit facilities 827 726 733 Account services 714 649 644 Unit trusts 603 455 444 Underwriting 576 552 463 Global custody 500 446 488 Remittances 361 325 352 Imports/exports 300 288 289 Insurance agency commission 176 171 154 Other 1,167 1,058 1,037 Fee income 8,458 7,480 7,571 Less: fee expense (1,784) (1,554) (1,623) Net fee income 6,674 5,926 5,948 Net fee income by global business Wealth and Personal Banking 3,042 2,691 2,717 Commercial Banking 1,786 1,630 1,595 Global Banking and Markets 1,857 1,608 1,659 Corporate Centre (11) (3) (23) |
Dividends (Tables)
Dividends (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Interim Financial Reporting [Abstract] | |
Disclosure of dividends to shareholders | Dividends paid to shareholders of HSBC Holdings plc Half-year to 30 Jun 2021 30 Jun 2020 31 Dec 2020 Per share Total Settled in scrip Per share Total Settled in scrip Per share Total Settled in scrip $ $m $m $ $m $m $ $m $m Dividends paid on ordinary shares In respect of previous year: – fourth interim dividend 0.15 3,059 — — — — — — — In respect of current year: – first interim dividend — — — — — — — — — – second interim dividend — — — — — — — — — – third interim dividend — — — — — — — — — Total 0.15 3,059 — — — — — — — Total dividends on preference shares classified as equity (paid quarterly) 1 4.99 7 31.00 45 31.00 45 Total coupons on capital securities classified as equity 666 617 624 Dividends to shareholders 3,732 662 669 1 HSBC Holdings called $1,450m 6.20% non-cumulative US dollar preference shares on 10 December 2020. The security was redeemed and cancelled on 13 January 2021. |
Disclosure of coupons on capital securities classified as equity | Total coupons on capital securities classified as equity Half-year to 30 Jun 30 Jun 31 Dec 2021 2020 2020 First call date Per security $m $m $m Perpetual subordinated contingent convertible securities 1 – $2,000m issued at 6.875% 2 Jun 2021 $68.750 69 69 69 – $2,250m issued at 6.375% Sep 2024 $63.750 72 72 71 – $2,450m issued at 6.375% Mar 2025 $63.750 78 78 78 – $3,000m issued at 6.000% May 2027 $60.000 90 90 90 – $2,350m issued at 6.250% Mar 2023 $62.500 73 73 74 – $1,800m issued at 6.500% Mar 2028 $65.000 59 59 58 – $1,500m issued at 4.600% 3 Dec 2030 $46.000 35 — — – $1,000m issued at 4.000% 4 Mar 2026 $40.000 — — — – $1,000m issued at 4.700% 5 Mar 2031 $47.000 — — — – €1,500m issued at 5.250% Sep 2022 €52.500 47 44 46 – €1,000m issued at 6.000% Sep 2023 €60.000 34 33 34 – €1,250m issued at 4.750% July 2029 €47.500 36 33 34 – £1,000m issued at 5.875% Sep 2026 £58.750 41 36 38 – SGD1,000m issued at 4.700% Jun 2022 SGD47.000 18 17 18 – SGD750m issued at 5.000% Sep 2023 SGD50.000 14 13 14 Total 666 617 624 1 Discretionary coupons are paid twice a year on the perpetual subordinated contingent convertible securities, in denominations of 1,000 per security in each security’s issuance currency. 2 This security was called by HSBC Holdings on 15 April 2021 and was redeemed and cancelled on 1 June 2021. 3 This security was issued by HSBC Holdings on 17 December 2020. The first call date commences six calendar months prior to the reset date of 4 This security was issued by HSBC Holdings on 9 March 2021. The first call date commences six calendar months prior to the reset date of 9 September 2026. 5 This security was issued by HSBC Holdings on 9 March 2021. The first call date commences six calendar months prior to the reset date of 9 September 2031. |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings per share [abstract] | |
Disclosure of detailed information on earnings per share | Profit attributable to ordinary shareholders of the parent company Half-year to 30 Jun 30 Jun 31 Dec 2021 2020 2020 $m $m $m Profit attributable to shareholders of the parent company 7,949 2,639 2,590 Dividend payable on preference shares classified as equity (7) (45) (45) Coupon payable on capital securities classified as equity (666) (617) (624) Profit attributable to ordinary shareholders of the parent company 7,276 1,977 1,921 Basic and diluted earnings per share Half-year to 30 Jun 2021 30 Jun 2020 31 Dec 2020 Profit Number Amount per share Profit Number Amount per share Profit Number Amount per share $m (millions) $ $m (millions) $ $m (millions) $ Basic 1 7,276 20,211 0.36 1,977 20,162 0.10 1,921 20,176 0.10 Effect of dilutive potential ordinary shares 97 58 63 Diluted 1 7,276 20,308 0.36 1,977 20,220 0.10 1,921 20,239 0.09 |
Segmental analysis (Tables)
Segmental analysis (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Operating Segments [Abstract] | |
Adjusted profit before tax and balance sheet data | HSBC adjusted profit before tax and balance sheet data Half-year to 30 Jun 2021 Wealth and Personal Banking Commercial Global Corporate Centre Total $m $m $m $m $m Net operating income/(expense) before change in expected credit losses and other credit impairment charges 1 11,401 6,651 7,878 (133) 25,797 – external 11,168 6,626 8,631 (628) 25,797 – inter-segment 233 25 (753) 495 — of which: net interest income/(expense) 7,067 4,366 2,024 (378) 13,079 Change in expected credit losses and other credit impairment (charges)/recoveries 52 249 414 4 719 Net operating income 11,453 6,900 8,292 (129) 26,516 Total operating expenses (7,600) (3,525) (4,985) (112) (16,222) Operating profit 3,853 3,375 3,307 (241) 10,294 Share of profit in associates and joint ventures 11 1 — 1,644 1,656 Adjusted profit before tax 3,864 3,376 3,307 1,403 11,950 % % % % % Share of HSBC’s adjusted profit before tax 32.3 28.3 27.7 11.7 100.0 Adjusted cost efficiency ratio 66.7 53.0 63.3 (84.2) 62.9 Adjusted balance sheet data $m $m $m $m $m Loans and advances to customers (net) 491,320 350,945 216,098 1,148 1,059,511 Interests in associates and joint ventures 478 15 128 28,088 28,709 Total external assets 912,479 624,042 1,258,694 180,790 2,976,005 Customer accounts 841,257 485,689 341,242 903 1,669,091 HSBC adjusted profit before tax and balance sheet data (continued) Half-year to 30 Jun 2020 Wealth and Personal Banking Commercial Global Corporate Centre Total $m $m $m $m $m Net operating income before change in expected credit losses and other credit impairment charges 1 11,694 7,326 8,574 3 27,597 – external 10,071 7,742 10,511 (727) 27,597 – inter-segment 1,623 (416) (1,937) 730 — of which: net interest income/(expense) 8,331 5,080 2,435 (804) 15,042 Change in expected credit losses and other credit impairment charges (2,328) (3,751) (1,195) (13) (7,287) Net operating income/(expense) 9,366 3,575 7,379 (10) 20,310 Total operating expenses (7,695) (3,457) (4,813) 260 (15,705) Operating profit/(loss) 1,671 118 2,566 250 4,605 Share of profit in associates and joint ventures (8) — — 1,057 1,049 Adjusted profit before tax 1,663 118 2,566 1,307 5,654 % % % % % Share of HSBC’s adjusted profit before tax 29.4 2.1 45.4 23.1 100.0 Adjusted cost efficiency ratio 65.8 47.2 56.1 (8,666.7) 56.9 Adjusted balance sheet data $m $m $m $m $m Loans and advances to customers (net) 456,263 362,094 254,126 1,365 1,073,848 Interests in associates and joint ventures 428 15 140 25,659 26,242 Total external assets 856,599 579,865 1,472,925 173,932 3,083,321 Customer accounts 810,137 441,427 357,082 738 1,609,384 Half-year to 31 Dec 2020 Net operating income/(expense) before change in expected credit losses and other credit impairment charges 1 11,019 6,489 7,323 (308) 24,523 – external 10,534 6,468 8,257 (736) 24,523 – inter-segment 485 21 (934) 428 — of which: net interest income/(expense) 7,231 4,545 2,184 (533) 13,427 Change in expected credit losses and other credit impairment (charges)/recoveries (685) (1,265) (95) 14 (2,031) Net operating income/(expense) 10,334 5,224 7,228 (294) 22,492 Total operating expenses (7,871) (3,491) (4,916) (673) (16,951) Operating profit/(loss) 2,463 1,733 2,312 (967) 5,541 Share of profit in associates and joint ventures 15 (1) — 1,125 1,139 Adjusted profit before tax 2,478 1,732 2,312 158 6,680 % % % % % Share of HSBC’s adjusted profit before tax 37.1 25.9 34.6 2.4 100.0 Adjusted cost efficiency ratio 71.4 53.8 67.1 (218.5) 69.1 Adjusted balance sheet data $m $m $m $m $m Loans and advances to customers (net) 469,218 342,951 223,395 1,254 1,036,818 Interests in associates and joint ventures 446 14 141 26,261 26,862 Total external assets 882,042 570,369 1,342,544 186,633 2,981,588 Customer accounts 834,376 470,686 335,977 609 1,641,648 1 Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue. |
Reported external net operating income by country | Reported external net operating income is attributed to countries and territories on the basis of the location of the branch responsible for reporting the results or advancing the funds: Half-year to 30 Jun 2021 30 Jun 2020 31 Dec 2020 $m $m $m Reported external net operating income by country/territory 1 25,551 26,745 23,684 – UK 5,610 4,166 4,997 – Hong Kong 7,476 8,703 7,080 – US 1,993 2,435 2,039 – France 1,228 697 1,056 – other countries 9,244 10,744 8,512 |
Reconciliation of reported and adjusted items | Adjusted results reconciliation Half-year to 30 Jun 2021 30 Jun 2020 31 Dec 2020 Adjusted Significant items Reported Adjusted Currency translation Significant items Reported Adjusted Currency translation Significant items Reported $m $m $m $m $m $m $m $m $m $m $m Revenue 1 25,797 (246) 25,551 27,597 (1,117) 265 26,745 24,523 (630) (209) 23,684 ECL 719 — 719 (7,287) 429 — (6,858) (2,031) 72 — (1,959) Operating expenses (16,222) (865) (17,087) (15,705) 887 (1,709) (16,527) (16,951) 471 (1,425) (17,905) Share of profit in associates and joint ventures 1,656 — 1,656 1,049 (91) — 958 1,139 (38) (462) 639 Profit before tax 11,950 (1,111) 10,839 5,654 108 (1,444) 4,318 6,680 (125) (2,096) 4,459 1 Net operating income before change in expected credit losses and other credit impairment charges, also referred to as revenue. Adjusted balance sheet reconciliation At 30 Jun 2021 31 Dec 2020 Reported and adjusted Adjusted Currency translation Reported $m $m $m $m Loans and advances to customers (net) 1,059,511 1,036,818 1,169 1,037,987 Interests in associates and joint ventures 28,709 26,862 (178) 26,684 Total external assets 2,976,005 2,981,588 2,576 2,984,164 Customer accounts 1,669,091 1,641,648 1,132 1,642,780 Adjusted profit reconciliation Half-year to 30 Jun 2021 30 Jun 2020 31 Dec 2020 $m $m $m Adjusted profit before tax 11,950 5,654 6,680 Significant items (1,111) (1,444) (2,096) – customer redress programmes (revenue) 18 26 (47) – disposals, acquisitions and investment in new businesses (revenue) — (8) (2) – fair value movements on financial instruments 1 (194) 299 (35) – restructuring and other related costs (revenue) 2 (70) (49) (121) – customer redress programmes (operating expenses) (17) (50) 104 – impairment of goodwill and other intangible assets — (1,025) (65) – past service costs of guaranteed minimum pension benefits equalisation — — (17) – restructuring and other related costs (operating expenses) 3 (848) (505) (1,403) – settlements and provisions in connection with legal and other regulatory matters — (5) (7) – impairment of goodwill (share of profit in associates and joint ventures) 4 — — (462) – currency translation on significant items (127) (41) Currency translation 108 (125) Reported profit before tax 10,839 4,318 4,459 1 Includes fair value movements on non-qualifying hedges and debt valuation adjustments on derivatives. 2 Comprises losses associated with the RWA reduction commitments and gains relating to the business update in February 2020. 3 Includes impairment of software intangible assets of $173m in the six months to 30 June 2020 and $197m for the impairment of tangible assets in the six months to 31 December 2020. 4 During the six months to 31 December 2020, The Saudi British Bank (’SABB’), an associate of HSBC, impaired the goodwill that arose following the merger with Alawwal bank in 2019. HSBC’s post-tax share of the goodwill impairment was $462m. |
Fair values of financial inst_3
Fair values of financial instruments carried at fair value (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurement [Abstract] | |
Disclosure of fair value measurement of assets | Financial instruments carried at fair value and bases of valuation Valuation techniques Quoted Using With significant Total Recurring fair value measurements $m $m $m $m At 30 Jun 2021 Assets Trading assets 186,338 71,403 2,509 260,250 Financial assets designated and otherwise mandatorily measured at fair value through profit or loss 20,468 15,664 12,988 49,120 Derivatives 1,630 205,209 2,677 209,516 Financial investments 253,593 93,166 3,243 350,002 Liabilities Trading liabilities 61,676 27,104 857 89,637 Financial liabilities designated at fair value 1,365 143,084 7,237 151,686 Derivatives 1,098 195,637 3,421 200,156 At 31 Dec 2020 Assets Trading assets 167,980 61,511 2,499 231,990 Financial assets designated and otherwise mandatorily measured at fair value through profit or loss 19,711 14,365 11,477 45,553 Derivatives 2,602 302,454 2,670 307,726 Financial investments 303,654 94,746 3,654 402,054 Liabilities Trading liabilities 53,290 21,814 162 75,266 Financial liabilities designated at fair value 1,267 150,866 5,306 157,439 Derivatives 1,788 297,025 4,188 303,001 Transfers between Level 1 and Level 2 fair values Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value Derivatives Trading liabilities Designated at fair value Derivatives $m $m $m $m $m $m $m At 30 Jun 2021 Transfers from Level 1 to Level 2 5,421 3,601 150 103 43 — 212 Transfers from Level 2 to Level 1 4,774 2,381 645 — 530 — — At 31 Dec 2020 Transfers from Level 1 to Level 2 4,514 3,891 245 — 155 7,414 — Transfers from Level 2 to Level 1 7,764 5,517 328 1 433 — — Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3 Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through profit or loss Derivatives Total Trading liabilities Designated at fair value Derivatives Total $m $m $m $m $m $m $m $m $m Private equity including strategic investments 590 55 12,484 — 13,129 206 — — 206 Asset-backed securities 900 250 17 — 1,167 — — — — Loans held for securitisation — — — — — — — — — Structured notes — — — — — — 7,237 — 7,237 Derivatives with monolines — — — 52 52 — — — — Other derivatives — — — 2,625 2,625 — — 3,421 3,421 Other portfolios 1,753 2,204 487 — 4,444 651 — — 651 At 30 Jun 2021 3,243 2,509 12,988 2,677 21,417 857 7,237 3,421 11,515 Private equity including strategic investments 930 4 10,971 — 11,905 4 — — 4 Asset-backed securities 1,286 523 25 — 1,834 — — — — Loans held for securitisation — — — — — — — — — Structured notes — — — — — 29 5,301 — 5,330 Derivatives with monolines — — — 68 68 — — — — Other derivatives — — — 2,602 2,602 — — 4,187 4,187 Other portfolios 1,438 1,972 481 — 3,891 129 5 1 135 At 31 Dec 2020 3,654 2,499 11,477 2,670 20,300 162 5,306 4,188 9,656 Movement in Level 3 financial instruments Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through profit or loss Derivatives Trading liabilities Designated at fair value Derivatives $m $m $m $m $m $m $m At 1 Jan 2021 3,654 2,499 11,477 2,670 162 5,306 4,188 Total gains/(losses) recognised in profit or loss 2 (155) 1,038 195 15 (456) 466 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (155) — 195 15 — 466 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 1,038 — — (456) — – gains less losses from financial investments held at fair value through other comprehensive income 2 — — — — — — Total gains/(losses) recognised in other comprehensive income (‘OCI’) 1 (391) 23 (114) 23 (3) 2 29 – financial investments: fair value losses (360) — — — — — — – exchange differences (31) 23 (114) 23 (3) 2 29 Purchases 390 1,094 1,631 — 482 — — New issuances — — — — 24 2,725 — Sales (214) (244) (499) — — — — Settlements (177) (494) (436) (359) (8) (896) (1,537) Transfers out (311) (512) (159) (126) (1) (339) (221) Transfers in 290 298 50 274 186 895 496 At 30 Jun 2021 3,243 2,509 12,988 2,677 857 7,237 3,421 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 30 Jun 2021 — (99) 885 175 2 106 (4) – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (99) — 175 2 — (4) – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 885 — — 106 — At 1 Jan 2020 3,218 4,979 9,476 2,136 53 5,016 2,302 Total gains/(losses) recognised in profit or loss (13) (541) (106) 2,237 — (117) 2,105 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (541) — 2,237 — — 2,105 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — (106) — — (117) — – gains less losses from financial investments held at fair value through other comprehensive income (13) — — — — — — Total losses recognised in other comprehensive income (‘OCI’) 1 (29) (171) (4) (147) (2) (78) (162) – financial investments: fair value losses (19) — — — — — — – exchange differences (10) (171) (4) (147) (2) (78) (162) Purchases 610 199 1,594 — 63 — — New issuances — — — — 2 1,091 — Sales (271) (577) (424) — (1) — — Settlements (401) (22) (170) (262) (12) (853) (307) Transfers out (22) (797) (63) (139) (5) (275) (270) Transfers in 247 795 101 30 7 224 57 At 30 Jun 2020 3,339 3,865 10,404 3,855 105 5,008 3,725 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 30 Jun 2020 — (7) (140) 529 (3) 100 1,104 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (7) — 529 (3) — 1,104 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — (140) — — 100 — Movement in Level 3 financial instruments (continued) Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through Derivatives Trading liabilities Designated Derivatives $m $m $m $m $m $m $m At 1 Jul 2020 3,339 3,865 10,404 3,855 105 5,008 3,725 Total gains recognised in profit or loss 30 535 610 44 307 58 1,293 – net income from financial instruments held for trading or managed on a fair value basis — 535 — 44 307 — 1,293 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 610 — — 58 — – gains less losses from financial investments held at fair value through other comprehensive income 30 — — — — — — Total gains recognised in other comprehensive income (‘OCI’) 1 423 286 290 290 19 282 331 – financial investments: fair value gains 289 — — — — — — – exchange differences 134 286 290 290 19 282 331 Purchases 61 488 2,107 — 3 — — New issuances — — 1 — 4 785 — Sales (403) (1,002) (1,618) — (259) — — Settlements (129) (1,100) (265) (1,280) (14) (678) (1,155) Transfers out (79) (993) (77) (426) (4) (502) (258) Transfers in 412 420 25 187 1 353 252 At 31 Dec 2020 3,654 2,499 11,477 2,670 162 5,306 4,188 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 31 Dec 2020 — (32) 412 707 1 (91) (1,621) – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (32) — 707 1 — (1,621) – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 412 — — (91) — 1 Included in ‘Financial investments: fair value gains/(losses)’ in the current year and ‘Exchange differences’ in the consolidated statement of comprehensive income. Fair values of financial instruments not carried at fair value on the balance sheet At 30 Jun 2021 At 31 Dec 2020 Carrying Fair Carrying Fair $m $m $m $m Assets Loans and advances to banks 86,886 87,029 81,616 81,796 Loans and advances to customers 1,059,511 1,058,406 1,037,987 1,035,461 Reverse repurchase agreements – non-trading 201,714 201,694 230,628 230,602 Financial investments – at amortised cost 84,574 90,065 88,639 96,801 Liabilities Deposits by banks 100,448 100,412 82,080 81,996 Customer accounts 1,669,091 1,669,483 1,642,780 1,643,131 Repurchase agreements – non-trading 112,798 112,797 111,901 111,901 Debt securities in issue 84,218 85,416 95,492 97,028 Subordinated liabilities 20,774 26,966 21,951 28,552 |
Disclosure of fair value measurement of liabilities | Financial instruments carried at fair value and bases of valuation Valuation techniques Quoted Using With significant Total Recurring fair value measurements $m $m $m $m At 30 Jun 2021 Assets Trading assets 186,338 71,403 2,509 260,250 Financial assets designated and otherwise mandatorily measured at fair value through profit or loss 20,468 15,664 12,988 49,120 Derivatives 1,630 205,209 2,677 209,516 Financial investments 253,593 93,166 3,243 350,002 Liabilities Trading liabilities 61,676 27,104 857 89,637 Financial liabilities designated at fair value 1,365 143,084 7,237 151,686 Derivatives 1,098 195,637 3,421 200,156 At 31 Dec 2020 Assets Trading assets 167,980 61,511 2,499 231,990 Financial assets designated and otherwise mandatorily measured at fair value through profit or loss 19,711 14,365 11,477 45,553 Derivatives 2,602 302,454 2,670 307,726 Financial investments 303,654 94,746 3,654 402,054 Liabilities Trading liabilities 53,290 21,814 162 75,266 Financial liabilities designated at fair value 1,267 150,866 5,306 157,439 Derivatives 1,788 297,025 4,188 303,001 Transfers between Level 1 and Level 2 fair values Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value Derivatives Trading liabilities Designated at fair value Derivatives $m $m $m $m $m $m $m At 30 Jun 2021 Transfers from Level 1 to Level 2 5,421 3,601 150 103 43 — 212 Transfers from Level 2 to Level 1 4,774 2,381 645 — 530 — — At 31 Dec 2020 Transfers from Level 1 to Level 2 4,514 3,891 245 — 155 7,414 — Transfers from Level 2 to Level 1 7,764 5,517 328 1 433 — — Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3 Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through profit or loss Derivatives Total Trading liabilities Designated at fair value Derivatives Total $m $m $m $m $m $m $m $m $m Private equity including strategic investments 590 55 12,484 — 13,129 206 — — 206 Asset-backed securities 900 250 17 — 1,167 — — — — Loans held for securitisation — — — — — — — — — Structured notes — — — — — — 7,237 — 7,237 Derivatives with monolines — — — 52 52 — — — — Other derivatives — — — 2,625 2,625 — — 3,421 3,421 Other portfolios 1,753 2,204 487 — 4,444 651 — — 651 At 30 Jun 2021 3,243 2,509 12,988 2,677 21,417 857 7,237 3,421 11,515 Private equity including strategic investments 930 4 10,971 — 11,905 4 — — 4 Asset-backed securities 1,286 523 25 — 1,834 — — — — Loans held for securitisation — — — — — — — — — Structured notes — — — — — 29 5,301 — 5,330 Derivatives with monolines — — — 68 68 — — — — Other derivatives — — — 2,602 2,602 — — 4,187 4,187 Other portfolios 1,438 1,972 481 — 3,891 129 5 1 135 At 31 Dec 2020 3,654 2,499 11,477 2,670 20,300 162 5,306 4,188 9,656 Movement in Level 3 financial instruments Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through profit or loss Derivatives Trading liabilities Designated at fair value Derivatives $m $m $m $m $m $m $m At 1 Jan 2021 3,654 2,499 11,477 2,670 162 5,306 4,188 Total gains/(losses) recognised in profit or loss 2 (155) 1,038 195 15 (456) 466 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (155) — 195 15 — 466 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 1,038 — — (456) — – gains less losses from financial investments held at fair value through other comprehensive income 2 — — — — — — Total gains/(losses) recognised in other comprehensive income (‘OCI’) 1 (391) 23 (114) 23 (3) 2 29 – financial investments: fair value losses (360) — — — — — — – exchange differences (31) 23 (114) 23 (3) 2 29 Purchases 390 1,094 1,631 — 482 — — New issuances — — — — 24 2,725 — Sales (214) (244) (499) — — — — Settlements (177) (494) (436) (359) (8) (896) (1,537) Transfers out (311) (512) (159) (126) (1) (339) (221) Transfers in 290 298 50 274 186 895 496 At 30 Jun 2021 3,243 2,509 12,988 2,677 857 7,237 3,421 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 30 Jun 2021 — (99) 885 175 2 106 (4) – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (99) — 175 2 — (4) – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 885 — — 106 — At 1 Jan 2020 3,218 4,979 9,476 2,136 53 5,016 2,302 Total gains/(losses) recognised in profit or loss (13) (541) (106) 2,237 — (117) 2,105 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (541) — 2,237 — — 2,105 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — (106) — — (117) — – gains less losses from financial investments held at fair value through other comprehensive income (13) — — — — — — Total losses recognised in other comprehensive income (‘OCI’) 1 (29) (171) (4) (147) (2) (78) (162) – financial investments: fair value losses (19) — — — — — — – exchange differences (10) (171) (4) (147) (2) (78) (162) Purchases 610 199 1,594 — 63 — — New issuances — — — — 2 1,091 — Sales (271) (577) (424) — (1) — — Settlements (401) (22) (170) (262) (12) (853) (307) Transfers out (22) (797) (63) (139) (5) (275) (270) Transfers in 247 795 101 30 7 224 57 At 30 Jun 2020 3,339 3,865 10,404 3,855 105 5,008 3,725 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 30 Jun 2020 — (7) (140) 529 (3) 100 1,104 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (7) — 529 (3) — 1,104 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — (140) — — 100 — Movement in Level 3 financial instruments (continued) Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through Derivatives Trading liabilities Designated Derivatives $m $m $m $m $m $m $m At 1 Jul 2020 3,339 3,865 10,404 3,855 105 5,008 3,725 Total gains recognised in profit or loss 30 535 610 44 307 58 1,293 – net income from financial instruments held for trading or managed on a fair value basis — 535 — 44 307 — 1,293 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 610 — — 58 — – gains less losses from financial investments held at fair value through other comprehensive income 30 — — — — — — Total gains recognised in other comprehensive income (‘OCI’) 1 423 286 290 290 19 282 331 – financial investments: fair value gains 289 — — — — — — – exchange differences 134 286 290 290 19 282 331 Purchases 61 488 2,107 — 3 — — New issuances — — 1 — 4 785 — Sales (403) (1,002) (1,618) — (259) — — Settlements (129) (1,100) (265) (1,280) (14) (678) (1,155) Transfers out (79) (993) (77) (426) (4) (502) (258) Transfers in 412 420 25 187 1 353 252 At 31 Dec 2020 3,654 2,499 11,477 2,670 162 5,306 4,188 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 31 Dec 2020 — (32) 412 707 1 (91) (1,621) – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (32) — 707 1 — (1,621) – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 412 — — (91) — 1 Included in ‘Financial investments: fair value gains/(losses)’ in the current year and ‘Exchange differences’ in the consolidated statement of comprehensive income. Fair values of financial instruments not carried at fair value on the balance sheet At 30 Jun 2021 At 31 Dec 2020 Carrying Fair Carrying Fair $m $m $m $m Assets Loans and advances to banks 86,886 87,029 81,616 81,796 Loans and advances to customers 1,059,511 1,058,406 1,037,987 1,035,461 Reverse repurchase agreements – non-trading 201,714 201,694 230,628 230,602 Financial investments – at amortised cost 84,574 90,065 88,639 96,801 Liabilities Deposits by banks 100,448 100,412 82,080 81,996 Customer accounts 1,669,091 1,669,483 1,642,780 1,643,131 Repurchase agreements – non-trading 112,798 112,797 111,901 111,901 Debt securities in issue 84,218 85,416 95,492 97,028 Subordinated liabilities 20,774 26,966 21,951 28,552 |
Disclosure of fair value adjustments on financial instruments | Global Banking and Markets fair value adjustments At 30 Jun 2021 31 Dec 2020 GBM Corporate Centre GBM Corporate Centre $m $m $m $m Type of adjustment Risk-related 922 23 1,170 28 – bid-offer 445 — 514 — – uncertainty 68 1 106 1 – credit valuation adjustment 287 22 445 27 – debt valuation adjustment (100) — (120) — – funding fair value adjustment 220 — 204 — – other 2 — 21 — Model-related 87 — 74 — – model limitation 87 — 70 — – other — — 4 — Inception profit (Day 1 P&L reserves) 1 120 — 104 — 1,129 23 1,348 28 1 See Note 8 on the interim condensed financial statements on page 115. |
Disclosure of the effect of changes in significant unobservable assumptions to reasonably possible alternatives, assets | The following table shows the sensitivity of Level 3 fair values to reasonably possible alternative assumptions: Sensitivity of fair values to reasonably possible alternative assumptions Reflected in profit or loss Reflected in OCI Favourable Unfavourable Favourable Unfavourable $m $m $m $m Derivatives, trading assets and trading liabilities 1 179 (197) — — Financial assets and liabilities designated and otherwise mandatorily measured at fair value through profit or loss 795 (793) — — Financial investments 24 (24) 105 (104) At 30 Jun 2021 998 (1,014) 105 (104) Derivatives, trading assets and trading liabilities 1 271 (268) — — Financial assets and liabilities designated and otherwise mandatorily measured at fair value through profit or loss 625 (625) — — Financial investments 28 (28) 101 (104) At 30 Jun 2020 924 (921) 101 (104) Derivatives, trading assets and trading liabilities 1 229 (244) — — Financial assets and liabilities designated and otherwise mandatorily measured at fair value through profit or loss 644 (643) — — Financial investments 35 (35) 110 (110) At 31 Dec 2020 908 (922) 110 (110) 1 ‘Derivatives, trading assets and trading liabilities’ is presented as one category to reflect the manner in which these financial instruments are risk-managed. |
Disclosure of the effect of changes in significant unobservable assumptions to reasonably possible alternatives, liabilities | The following table shows the sensitivity of Level 3 fair values to reasonably possible alternative assumptions: Sensitivity of fair values to reasonably possible alternative assumptions Reflected in profit or loss Reflected in OCI Favourable Unfavourable Favourable Unfavourable $m $m $m $m Derivatives, trading assets and trading liabilities 1 179 (197) — — Financial assets and liabilities designated and otherwise mandatorily measured at fair value through profit or loss 795 (793) — — Financial investments 24 (24) 105 (104) At 30 Jun 2021 998 (1,014) 105 (104) Derivatives, trading assets and trading liabilities 1 271 (268) — — Financial assets and liabilities designated and otherwise mandatorily measured at fair value through profit or loss 625 (625) — — Financial investments 28 (28) 101 (104) At 30 Jun 2020 924 (921) 101 (104) Derivatives, trading assets and trading liabilities 1 229 (244) — — Financial assets and liabilities designated and otherwise mandatorily measured at fair value through profit or loss 644 (643) — — Financial investments 35 (35) 110 (110) At 31 Dec 2020 908 (922) 110 (110) 1 ‘Derivatives, trading assets and trading liabilities’ is presented as one category to reflect the manner in which these financial instruments are risk-managed. |
Disclosure of significant unobservable inputs used in fair value measurement of assets | The following table lists key unobservable inputs to Level 3 financial instruments and provides the range of those inputs at 30 June 2021. There has been no change to the key unobservable inputs to Level 3 financial instruments and inter-relationships therein, which are detailed on pages 320 and 321 of the Annual Report and Accounts 2020 . Quantitative information about significant unobservable inputs in Level 3 valuations Fair value Valuation techniques Key unobservable inputs 30 Jun 2021 31 Dec 2020 Assets Liabilities Full range of inputs Full range of inputs $m $m Lower Higher Lower Higher Private equity including strategic investments 13,129 206 See footnote 1 See footnote 1 Asset-backed securities 1,167 — – collateralised loan/debt obligation 80 — Market proxy Prepayment rate — — 0% 9% Market proxy Bid quotes — 100 — 100 – other ABSs 1,087 — Market proxy Bid quotes — 172 — 101 Loans held for securitisation — — Structured notes — 7,237 – equity-linked notes — 6,067 Model – Option model Equity volatility 5% 124% 6% 115% Model – Option model Equity correlation 7% 98% (4)% 88% – FX-linked notes — 634 Model – Option model FX volatility 3% 36% 0% 36% – other — 536 Derivatives with monolines 52 — Model – Discounted cash flow Credit spread 2% 2% 2% 2% Other derivatives 2,625 3,421 – interest rate derivatives 1,199 999 securitisation swaps 335 462 Model – Discounted cash flow Prepayment rate 5% 10% 6% 6% long-dated swaptions 436 312 Model – Option model IR volatility 6% 25% 6% 28% other 428 225 – FX derivatives 471 499 FX options 258 315 Model – Option model FX volatility 1% 36% 0% 43% other 213 184 – equity derivatives 885 1,813 long-dated single stock options 465 663 Model – Option model Equity volatility 2% 100% 0% 120% other 420 1,150 – credit derivatives 70 110 other 70 110 Other portfolios 4,444 651 – repurchase agreements 707 600 Model – Discounted cash flow IR curve 0% 5% 0% 5% – other 2 3,737 51 At 30 Jun 2021 21,417 11,515 1 Given the bespoke nature of the analysis in respect of each private equity holding, it is not practical to quote a range of key unobservable inputs . 2 ’Other’ includes a range of smaller asset holdings. |
Disclosure of significant unobservable inputs used in fair value measurement of liabilities | The following table lists key unobservable inputs to Level 3 financial instruments and provides the range of those inputs at 30 June 2021. There has been no change to the key unobservable inputs to Level 3 financial instruments and inter-relationships therein, which are detailed on pages 320 and 321 of the Annual Report and Accounts 2020 . Quantitative information about significant unobservable inputs in Level 3 valuations Fair value Valuation techniques Key unobservable inputs 30 Jun 2021 31 Dec 2020 Assets Liabilities Full range of inputs Full range of inputs $m $m Lower Higher Lower Higher Private equity including strategic investments 13,129 206 See footnote 1 See footnote 1 Asset-backed securities 1,167 — – collateralised loan/debt obligation 80 — Market proxy Prepayment rate — — 0% 9% Market proxy Bid quotes — 100 — 100 – other ABSs 1,087 — Market proxy Bid quotes — 172 — 101 Loans held for securitisation — — Structured notes — 7,237 – equity-linked notes — 6,067 Model – Option model Equity volatility 5% 124% 6% 115% Model – Option model Equity correlation 7% 98% (4)% 88% – FX-linked notes — 634 Model – Option model FX volatility 3% 36% 0% 36% – other — 536 Derivatives with monolines 52 — Model – Discounted cash flow Credit spread 2% 2% 2% 2% Other derivatives 2,625 3,421 – interest rate derivatives 1,199 999 securitisation swaps 335 462 Model – Discounted cash flow Prepayment rate 5% 10% 6% 6% long-dated swaptions 436 312 Model – Option model IR volatility 6% 25% 6% 28% other 428 225 – FX derivatives 471 499 FX options 258 315 Model – Option model FX volatility 1% 36% 0% 43% other 213 184 – equity derivatives 885 1,813 long-dated single stock options 465 663 Model – Option model Equity volatility 2% 100% 0% 120% other 420 1,150 – credit derivatives 70 110 other 70 110 Other portfolios 4,444 651 – repurchase agreements 707 600 Model – Discounted cash flow IR curve 0% 5% 0% 5% – other 2 3,737 51 At 30 Jun 2021 21,417 11,515 1 Given the bespoke nature of the analysis in respect of each private equity holding, it is not practical to quote a range of key unobservable inputs . 2 ’Other’ includes a range of smaller asset holdings. |
Fair values of financial inst_4
Fair values of financial instruments not carried at fair value (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurement [Abstract] | |
Fair values of financial instruments not carried at fair value and bases of valuation - assets | Financial instruments carried at fair value and bases of valuation Valuation techniques Quoted Using With significant Total Recurring fair value measurements $m $m $m $m At 30 Jun 2021 Assets Trading assets 186,338 71,403 2,509 260,250 Financial assets designated and otherwise mandatorily measured at fair value through profit or loss 20,468 15,664 12,988 49,120 Derivatives 1,630 205,209 2,677 209,516 Financial investments 253,593 93,166 3,243 350,002 Liabilities Trading liabilities 61,676 27,104 857 89,637 Financial liabilities designated at fair value 1,365 143,084 7,237 151,686 Derivatives 1,098 195,637 3,421 200,156 At 31 Dec 2020 Assets Trading assets 167,980 61,511 2,499 231,990 Financial assets designated and otherwise mandatorily measured at fair value through profit or loss 19,711 14,365 11,477 45,553 Derivatives 2,602 302,454 2,670 307,726 Financial investments 303,654 94,746 3,654 402,054 Liabilities Trading liabilities 53,290 21,814 162 75,266 Financial liabilities designated at fair value 1,267 150,866 5,306 157,439 Derivatives 1,788 297,025 4,188 303,001 Transfers between Level 1 and Level 2 fair values Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value Derivatives Trading liabilities Designated at fair value Derivatives $m $m $m $m $m $m $m At 30 Jun 2021 Transfers from Level 1 to Level 2 5,421 3,601 150 103 43 — 212 Transfers from Level 2 to Level 1 4,774 2,381 645 — 530 — — At 31 Dec 2020 Transfers from Level 1 to Level 2 4,514 3,891 245 — 155 7,414 — Transfers from Level 2 to Level 1 7,764 5,517 328 1 433 — — Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3 Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through profit or loss Derivatives Total Trading liabilities Designated at fair value Derivatives Total $m $m $m $m $m $m $m $m $m Private equity including strategic investments 590 55 12,484 — 13,129 206 — — 206 Asset-backed securities 900 250 17 — 1,167 — — — — Loans held for securitisation — — — — — — — — — Structured notes — — — — — — 7,237 — 7,237 Derivatives with monolines — — — 52 52 — — — — Other derivatives — — — 2,625 2,625 — — 3,421 3,421 Other portfolios 1,753 2,204 487 — 4,444 651 — — 651 At 30 Jun 2021 3,243 2,509 12,988 2,677 21,417 857 7,237 3,421 11,515 Private equity including strategic investments 930 4 10,971 — 11,905 4 — — 4 Asset-backed securities 1,286 523 25 — 1,834 — — — — Loans held for securitisation — — — — — — — — — Structured notes — — — — — 29 5,301 — 5,330 Derivatives with monolines — — — 68 68 — — — — Other derivatives — — — 2,602 2,602 — — 4,187 4,187 Other portfolios 1,438 1,972 481 — 3,891 129 5 1 135 At 31 Dec 2020 3,654 2,499 11,477 2,670 20,300 162 5,306 4,188 9,656 Movement in Level 3 financial instruments Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through profit or loss Derivatives Trading liabilities Designated at fair value Derivatives $m $m $m $m $m $m $m At 1 Jan 2021 3,654 2,499 11,477 2,670 162 5,306 4,188 Total gains/(losses) recognised in profit or loss 2 (155) 1,038 195 15 (456) 466 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (155) — 195 15 — 466 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 1,038 — — (456) — – gains less losses from financial investments held at fair value through other comprehensive income 2 — — — — — — Total gains/(losses) recognised in other comprehensive income (‘OCI’) 1 (391) 23 (114) 23 (3) 2 29 – financial investments: fair value losses (360) — — — — — — – exchange differences (31) 23 (114) 23 (3) 2 29 Purchases 390 1,094 1,631 — 482 — — New issuances — — — — 24 2,725 — Sales (214) (244) (499) — — — — Settlements (177) (494) (436) (359) (8) (896) (1,537) Transfers out (311) (512) (159) (126) (1) (339) (221) Transfers in 290 298 50 274 186 895 496 At 30 Jun 2021 3,243 2,509 12,988 2,677 857 7,237 3,421 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 30 Jun 2021 — (99) 885 175 2 106 (4) – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (99) — 175 2 — (4) – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 885 — — 106 — At 1 Jan 2020 3,218 4,979 9,476 2,136 53 5,016 2,302 Total gains/(losses) recognised in profit or loss (13) (541) (106) 2,237 — (117) 2,105 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (541) — 2,237 — — 2,105 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — (106) — — (117) — – gains less losses from financial investments held at fair value through other comprehensive income (13) — — — — — — Total losses recognised in other comprehensive income (‘OCI’) 1 (29) (171) (4) (147) (2) (78) (162) – financial investments: fair value losses (19) — — — — — — – exchange differences (10) (171) (4) (147) (2) (78) (162) Purchases 610 199 1,594 — 63 — — New issuances — — — — 2 1,091 — Sales (271) (577) (424) — (1) — — Settlements (401) (22) (170) (262) (12) (853) (307) Transfers out (22) (797) (63) (139) (5) (275) (270) Transfers in 247 795 101 30 7 224 57 At 30 Jun 2020 3,339 3,865 10,404 3,855 105 5,008 3,725 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 30 Jun 2020 — (7) (140) 529 (3) 100 1,104 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (7) — 529 (3) — 1,104 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — (140) — — 100 — Movement in Level 3 financial instruments (continued) Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through Derivatives Trading liabilities Designated Derivatives $m $m $m $m $m $m $m At 1 Jul 2020 3,339 3,865 10,404 3,855 105 5,008 3,725 Total gains recognised in profit or loss 30 535 610 44 307 58 1,293 – net income from financial instruments held for trading or managed on a fair value basis — 535 — 44 307 — 1,293 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 610 — — 58 — – gains less losses from financial investments held at fair value through other comprehensive income 30 — — — — — — Total gains recognised in other comprehensive income (‘OCI’) 1 423 286 290 290 19 282 331 – financial investments: fair value gains 289 — — — — — — – exchange differences 134 286 290 290 19 282 331 Purchases 61 488 2,107 — 3 — — New issuances — — 1 — 4 785 — Sales (403) (1,002) (1,618) — (259) — — Settlements (129) (1,100) (265) (1,280) (14) (678) (1,155) Transfers out (79) (993) (77) (426) (4) (502) (258) Transfers in 412 420 25 187 1 353 252 At 31 Dec 2020 3,654 2,499 11,477 2,670 162 5,306 4,188 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 31 Dec 2020 — (32) 412 707 1 (91) (1,621) – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (32) — 707 1 — (1,621) – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 412 — — (91) — 1 Included in ‘Financial investments: fair value gains/(losses)’ in the current year and ‘Exchange differences’ in the consolidated statement of comprehensive income. Fair values of financial instruments not carried at fair value on the balance sheet At 30 Jun 2021 At 31 Dec 2020 Carrying Fair Carrying Fair $m $m $m $m Assets Loans and advances to banks 86,886 87,029 81,616 81,796 Loans and advances to customers 1,059,511 1,058,406 1,037,987 1,035,461 Reverse repurchase agreements – non-trading 201,714 201,694 230,628 230,602 Financial investments – at amortised cost 84,574 90,065 88,639 96,801 Liabilities Deposits by banks 100,448 100,412 82,080 81,996 Customer accounts 1,669,091 1,669,483 1,642,780 1,643,131 Repurchase agreements – non-trading 112,798 112,797 111,901 111,901 Debt securities in issue 84,218 85,416 95,492 97,028 Subordinated liabilities 20,774 26,966 21,951 28,552 |
Fair values of financial instruments not carried at fair value and bases of valuation - liabilities | Financial instruments carried at fair value and bases of valuation Valuation techniques Quoted Using With significant Total Recurring fair value measurements $m $m $m $m At 30 Jun 2021 Assets Trading assets 186,338 71,403 2,509 260,250 Financial assets designated and otherwise mandatorily measured at fair value through profit or loss 20,468 15,664 12,988 49,120 Derivatives 1,630 205,209 2,677 209,516 Financial investments 253,593 93,166 3,243 350,002 Liabilities Trading liabilities 61,676 27,104 857 89,637 Financial liabilities designated at fair value 1,365 143,084 7,237 151,686 Derivatives 1,098 195,637 3,421 200,156 At 31 Dec 2020 Assets Trading assets 167,980 61,511 2,499 231,990 Financial assets designated and otherwise mandatorily measured at fair value through profit or loss 19,711 14,365 11,477 45,553 Derivatives 2,602 302,454 2,670 307,726 Financial investments 303,654 94,746 3,654 402,054 Liabilities Trading liabilities 53,290 21,814 162 75,266 Financial liabilities designated at fair value 1,267 150,866 5,306 157,439 Derivatives 1,788 297,025 4,188 303,001 Transfers between Level 1 and Level 2 fair values Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value Derivatives Trading liabilities Designated at fair value Derivatives $m $m $m $m $m $m $m At 30 Jun 2021 Transfers from Level 1 to Level 2 5,421 3,601 150 103 43 — 212 Transfers from Level 2 to Level 1 4,774 2,381 645 — 530 — — At 31 Dec 2020 Transfers from Level 1 to Level 2 4,514 3,891 245 — 155 7,414 — Transfers from Level 2 to Level 1 7,764 5,517 328 1 433 — — Financial instruments measured at fair value using a valuation technique with significant unobservable inputs – Level 3 Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through profit or loss Derivatives Total Trading liabilities Designated at fair value Derivatives Total $m $m $m $m $m $m $m $m $m Private equity including strategic investments 590 55 12,484 — 13,129 206 — — 206 Asset-backed securities 900 250 17 — 1,167 — — — — Loans held for securitisation — — — — — — — — — Structured notes — — — — — — 7,237 — 7,237 Derivatives with monolines — — — 52 52 — — — — Other derivatives — — — 2,625 2,625 — — 3,421 3,421 Other portfolios 1,753 2,204 487 — 4,444 651 — — 651 At 30 Jun 2021 3,243 2,509 12,988 2,677 21,417 857 7,237 3,421 11,515 Private equity including strategic investments 930 4 10,971 — 11,905 4 — — 4 Asset-backed securities 1,286 523 25 — 1,834 — — — — Loans held for securitisation — — — — — — — — — Structured notes — — — — — 29 5,301 — 5,330 Derivatives with monolines — — — 68 68 — — — — Other derivatives — — — 2,602 2,602 — — 4,187 4,187 Other portfolios 1,438 1,972 481 — 3,891 129 5 1 135 At 31 Dec 2020 3,654 2,499 11,477 2,670 20,300 162 5,306 4,188 9,656 Movement in Level 3 financial instruments Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through profit or loss Derivatives Trading liabilities Designated at fair value Derivatives $m $m $m $m $m $m $m At 1 Jan 2021 3,654 2,499 11,477 2,670 162 5,306 4,188 Total gains/(losses) recognised in profit or loss 2 (155) 1,038 195 15 (456) 466 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (155) — 195 15 — 466 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 1,038 — — (456) — – gains less losses from financial investments held at fair value through other comprehensive income 2 — — — — — — Total gains/(losses) recognised in other comprehensive income (‘OCI’) 1 (391) 23 (114) 23 (3) 2 29 – financial investments: fair value losses (360) — — — — — — – exchange differences (31) 23 (114) 23 (3) 2 29 Purchases 390 1,094 1,631 — 482 — — New issuances — — — — 24 2,725 — Sales (214) (244) (499) — — — — Settlements (177) (494) (436) (359) (8) (896) (1,537) Transfers out (311) (512) (159) (126) (1) (339) (221) Transfers in 290 298 50 274 186 895 496 At 30 Jun 2021 3,243 2,509 12,988 2,677 857 7,237 3,421 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 30 Jun 2021 — (99) 885 175 2 106 (4) – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (99) — 175 2 — (4) – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 885 — — 106 — At 1 Jan 2020 3,218 4,979 9,476 2,136 53 5,016 2,302 Total gains/(losses) recognised in profit or loss (13) (541) (106) 2,237 — (117) 2,105 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (541) — 2,237 — — 2,105 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — (106) — — (117) — – gains less losses from financial investments held at fair value through other comprehensive income (13) — — — — — — Total losses recognised in other comprehensive income (‘OCI’) 1 (29) (171) (4) (147) (2) (78) (162) – financial investments: fair value losses (19) — — — — — — – exchange differences (10) (171) (4) (147) (2) (78) (162) Purchases 610 199 1,594 — 63 — — New issuances — — — — 2 1,091 — Sales (271) (577) (424) — (1) — — Settlements (401) (22) (170) (262) (12) (853) (307) Transfers out (22) (797) (63) (139) (5) (275) (270) Transfers in 247 795 101 30 7 224 57 At 30 Jun 2020 3,339 3,865 10,404 3,855 105 5,008 3,725 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 30 Jun 2020 — (7) (140) 529 (3) 100 1,104 – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (7) — 529 (3) — 1,104 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — (140) — — 100 — Movement in Level 3 financial instruments (continued) Assets Liabilities Financial investments Trading assets Designated and otherwise mandatorily measured at fair value through Derivatives Trading liabilities Designated Derivatives $m $m $m $m $m $m $m At 1 Jul 2020 3,339 3,865 10,404 3,855 105 5,008 3,725 Total gains recognised in profit or loss 30 535 610 44 307 58 1,293 – net income from financial instruments held for trading or managed on a fair value basis — 535 — 44 307 — 1,293 – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 610 — — 58 — – gains less losses from financial investments held at fair value through other comprehensive income 30 — — — — — — Total gains recognised in other comprehensive income (‘OCI’) 1 423 286 290 290 19 282 331 – financial investments: fair value gains 289 — — — — — — – exchange differences 134 286 290 290 19 282 331 Purchases 61 488 2,107 — 3 — — New issuances — — 1 — 4 785 — Sales (403) (1,002) (1,618) — (259) — — Settlements (129) (1,100) (265) (1,280) (14) (678) (1,155) Transfers out (79) (993) (77) (426) (4) (502) (258) Transfers in 412 420 25 187 1 353 252 At 31 Dec 2020 3,654 2,499 11,477 2,670 162 5,306 4,188 Unrealised gains/(losses) recognised in profit or loss relating to assets and liabilities held at 31 Dec 2020 — (32) 412 707 1 (91) (1,621) – net income/(losses) from financial instruments held for trading or managed on a fair value basis — (32) — 707 1 — (1,621) – changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss — — 412 — — (91) — 1 Included in ‘Financial investments: fair value gains/(losses)’ in the current year and ‘Exchange differences’ in the consolidated statement of comprehensive income. Fair values of financial instruments not carried at fair value on the balance sheet At 30 Jun 2021 At 31 Dec 2020 Carrying Fair Carrying Fair $m $m $m $m Assets Loans and advances to banks 86,886 87,029 81,616 81,796 Loans and advances to customers 1,059,511 1,058,406 1,037,987 1,035,461 Reverse repurchase agreements – non-trading 201,714 201,694 230,628 230,602 Financial investments – at amortised cost 84,574 90,065 88,639 96,801 Liabilities Deposits by banks 100,448 100,412 82,080 81,996 Customer accounts 1,669,091 1,669,483 1,642,780 1,643,131 Repurchase agreements – non-trading 112,798 112,797 111,901 111,901 Debt securities in issue 84,218 85,416 95,492 97,028 Subordinated liabilities 20,774 26,966 21,951 28,552 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Financial Instruments [Abstract] | |
Disclosure of detailed information about hedging instruments | Notional contract amounts and fair values of derivatives by product contract type held by HSBC Notional contract amount Fair value amount Assets and liabilities Assets Liabilities Trading Hedging Trading Hedging Total Trading Hedging Total $m $m $m $m $m $m $m $m Foreign exchange 7,610,890 32,493 71,412 861 72,273 68,509 624 69,133 Interest rate 15,063,325 129,369 175,722 1,723 177,445 167,385 1,360 168,745 Equities 742,764 — 13,835 — 13,835 15,414 — 15,414 Credit 218,085 — 2,259 — 2,259 3,083 — 3,083 Commodity and other 96,958 — 1,755 — 1,755 1,832 — 1,832 Gross total fair values 23,732,022 161,862 264,983 2,584 267,567 256,223 1,984 258,207 Offset (58,051) (58,051) At 30 Jun 2021 23,732,022 161,862 264,983 2,584 209,516 256,223 1,984 200,156 Foreign exchange 7,606,446 35,021 106,696 309 107,005 108,903 1,182 110,085 Interest rate 15,240,867 157,436 249,204 1,914 251,118 236,594 2,887 239,481 Equities 652,288 — 14,043 — 14,043 15,766 — 15,766 Credit 269,401 — 2,590 — 2,590 3,682 — 3,682 Commodity and other 120,259 — 2,073 — 2,073 3,090 — 3,090 Gross total fair values 23,889,261 192,457 374,606 2,223 376,829 368,035 4,069 372,104 Offset (69,103) (69,103) At 31 Dec 2020 23,889,261 192,457 374,606 2,223 307,726 368,035 4,069 303,001 Notional contract amounts of derivatives held for hedging purposes by product type At 30 Jun 2021 At 31 Dec 2020 Cash flow Fair value Cash flow Fair value $m $m $m $m Foreign exchange 21,672 4 24,506 15 Interest rate 31,490 97,879 35,863 121,573 Total 53,162 97,883 60,369 121,588 Hedging instrument impacted by Ibor reform Hedging instrument Impacted by Ibor reform Not impacted by Ibor reform Notional amount 1 € £ $ Other Total $m $m $m $m $m $m $m Fair value hedges 9,615 311 25,511 7,024 42,461 55,418 97,879 Cash flow hedges 8,662 829 4,201 5,630 19,322 12,168 31,490 At 30 Jun 2021 18,277 1,140 29,712 12,654 61,783 67,586 129,369 Fair value hedges 17,792 3,706 32,789 10,128 64,415 57,158 121,573 Cash flow hedges 8,344 2,522 8,705 6,797 26,368 9,495 35,863 At 31 Dec 2020 26,136 6,228 41,494 16,925 90,783 66,653 157,436 1 The notional contract amounts of interest rate derivatives designated in qualifying hedge accounting relationships indicate the nominal value of transactions outstanding at the balance sheet date. They do not represent amounts at risk. 2 The notional contract amounts of euro interest rate derivatives impacted by Ibor reform mainly comprise hedges with a Euribor benchmark, which are ‘Fair value hedges’ of $8,793m (31 December 2020: $6,000m) and ‘Cash flow hedges’ of $8,662m (31 December 2020: $8,344m). |
Disclosure of detailed information about financial instruments | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied At 30 Jun 2021 At 31 Dec 2020 Gross carrying/ Allowance for ECL 1 Gross carrying/ Allowance for ECL 1 $m $m $m $m Loans and advances to customers at amortised cost 1,072,375 (12,864) 1,052,477 (14,490) – personal 482,447 (4,006) 460,809 (4,731) – corporate and commercial 520,201 (8,640) 527,088 (9,494) – non-bank financial institutions 69,727 (218) 64,580 (265) Loans and advances to banks at amortised cost 86,905 (19) 81,658 (42) Other financial assets measured at amortised cost 854,504 (224) 772,408 (175) – cash and balances at central banks 393,562 (3) 304,486 (5) – items in the course of collection from other banks 9,406 — 4,094 — – Hong Kong Government certificates of indebtedness 41,880 — 40,420 — – reverse repurchase agreements – non-trading 201,714 — 230,628 — – financial investments 84,662 (88) 88,719 (80) – prepayments, accrued income and other assets 2 123,280 (133) 104,061 (90) Total gross carrying amount on-balance sheet 2,013,784 (13,107) 1,906,543 (14,707) Loans and other credit-related commitments 661,373 (530) 659,783 (734) – personal 238,559 (23) 236,170 (40) – corporate and commercial 288,414 (475) 299,802 (650) – financial 134,400 (32) 123,811 (44) Financial guarantees 27,274 (64) 18,384 (125) – personal 919 (1) 900 (1) – corporate and commercial 21,679 (58) 12,946 (114) – financial 4,676 (5) 4,538 (10) Total nominal amount off-balance sheet 3 688,647 (594) 678,167 (859) 2,702,431 (13,701) 2,584,710 (15,566) Fair Memorandum allowance for ECL 4 Fair Memorandum allowance for ECL 4 $m $m $m $m Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) 348,107 (111) 399,717 (141) 1 Total ECL is recognised in the loss allowance for the financial asset unless total ECL exceeds the gross carrying amount of the financial asset, in which case the ECL is recognised as a provision. 2 Includes only those financial instruments that are subject to the impairment requirements of IFRS 9. ‘Prepayments, accrued income and other assets’, as presented within the consolidated balance sheet on page 100, includes both financial and non-financial assets. The 30 June 2021 balances include $2,649m gross carrying amounts and $48m allowances for ECL related to assets held for sale due to the exit of domestic mass market retail banking in the US. 3 Represents the maximum amount at risk should the contracts be fully drawn upon and clients default. 4 Debt instruments measured at FVOCI continue to be measured at fair value with the allowance for ECL as a memorandum item. Change in ECL is recognised in ‘Change for expected credit losses and other credit impairment charges’ in the income statement. The following table shows the difference between the fair value at initial recognition, which is the transaction price, and the value that would have been derived had valuation techniques used for subsequent measurement been applied at initial recognition, less subsequent releases. Unamortised balance of derivatives valued using models with significant unobservable inputs Half-year to 30 Jun 30 Jun 31 Dec 2021 2020 2020 $m $m $m Unamortised balance at beginning of period 104 73 89 Deferral on new transactions 187 106 126 Recognised in the income statement during the period (172) (87) (118) – amortisation (89) (51) (65) – subsequent to unobservable inputs becoming observable (3) (1) (3) – maturity, termination or offsetting derivative (80) (35) (50) Exchange differences 1 (3) 7 Unamortised balance at end of period 1 120 89 104 1 This amount is yet to be recognised in the consolidated income statement. |
Financial investments (Tables)
Financial investments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Financial Instruments [Abstract] | |
Schedules of financial investments | Carrying amounts of financial investments 30 Jun 31 Dec 2021 2020 $m $m Financial investments measured at fair value through other comprehensive income 350,002 402,054 – treasury and other eligible bills 101,297 118,163 – debt securities 246,728 281,467 – equity securities 1,895 2,337 – other instruments 82 87 Debt instruments measured at amortised cost 84,574 88,639 – treasury and other eligible bills 8,085 11,757 – debt securities 76,489 76,882 At the end of the period 434,576 490,693 |
Interests in associates and j_2
Interests in associates and joint ventures (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Interests In Other Entities [Abstract] | |
Disclosure of interests in associates | Principal associates of HSBC At 30 Jun 2021 31 Dec 2020 Carrying Fair value 1 Carrying Fair value 1 $m $m $m $m Bank of Communications Co., Limited 22,857 9,484 21,248 7,457 The Saudi British Bank 4,405 5,350 4,215 4,197 1 Principal associates are listed on recognised stock exchanges. The fair values are based on the quoted market prices of the shares held (Level 1 in the fair value hierarchy). At 30 Jun 2021 31 Dec 2020 VIU Carrying Fair VIU Carrying Fair $bn $bn $bn $bn $bn $bn BoCom 23.6 22.9 9.5 21.8 21.2 7.5 |
Sensitivity of VIU to reasonably possible changes in key assumptions | The following table shows the change to each key assumption in the VIU calculation that on its own would reduce the headroom to nil: Key assumption Changes to key assumption to reduce headroom to nil • Long-term profit growth rate Decrease by 22 basis points • Long-term asset growth rate Increase by 19 basis points • Discount rate Increase by 27 basis points • Expected credit losses as a percentage of customer advances Increase by 3 basis points • Risk-weighted assets as a percentage of total assets Increase by 145 basis points • Operating income growth rate Decrease by 39 basis points • Cost-income ratio Increase by 87 basis points • Long-term effective tax rate Increase by 228 basis points • Capital requirements – capital adequacy ratio Increase by 30 basis points • Capital requirements – tier 1 capital adequacy ratio Increase by 199 basis points The following table further illustrates the impact on VIU of reasonably possible changes to key assumptions. This reflects the sensitivity of the VIU to each key assumption on its own and it is possible that more than one favourable and/or unfavourable change may occur at the same time. The selected rates of reasonably possible changes to key assumptions are largely based on external analysts’ forecasts, which can change period to period. Sensitivity of VIU to reasonably possible changes in key assumptions Favourable change Unfavourable change Increase VIU Decrease VIU bps $bn $bn bps $bn $bn At 30 Jun 2021 Long-term asset/profit growth rate 1 (50) / — 1.9 / — 25.5 / 23.6 — / (50) — / (1.7) 23.6 / 21.9 Discount rate (109) 3.8 27.4 31 (0.8) 22.8 Expected credit losses as a percentage of customer advances 2021 to 2024: 99 2025 onwards: 79 1.9 25.5 2021 to 2024: 112 2025 onwards: 102 (3.0) 20.6 Risk-weighted assets as a percentage of total assets (81) 0.3 23.9 87 (0.6) 23.0 Operating income growth rate 16 0.4 24.0 (46) (0.9) 22.7 Cost-income ratio (168) 1.7 25.3 287 (2.6) 21.0 Long-term effective tax rate (180) 0.6 24.2 820 (2.7) 20.9 Capital requirements – capital adequacy ratio — — 23.6 254 (7.4) 16.2 Capital requirements – tier 1 capital adequacy ratio — — 23.6 332 (4.8) 18.8 At 31 Dec 2020 Long-term asset/profit growth rate 1 (50) / — 1.4 / — 23.2 / 21.8 — / (50) — / (1.3) 21.8 / 20.5 Discount rate 1.2 23.0 53 (1.2) 20.6 Expected credit losses as a percentage of customer advances 2020 to 2024: 96 2025 onwards: 76 2.3 24.1 2020 to 2024: 122 2025 onwards: 95 (2.1) 19.7 Risk-weighted assets as a percentage of total assets (40) 0.1 21.9 166 (0.8) 21.0 Operating income growth rate 2 0.2 22.0 (69) (1.5) 20.3 Cost-income ratio (149) 1.3 23.1 120 (1.2) 20.6 Long-term effective tax rate (316) 0.9 22.7 820 (2.2) 19.6 Capital requirements – capital adequacy ratio — — 21.8 297 (7.8) 14.0 Capital requirements – tier 1 capital adequacy ratio — — 21.8 263 (5.3) 16.5 1 The reasonably possible ranges of the long-term profit growth rate and long-term asset growth rate assumptions reflect the close relationship between these assumptions, which would result in offsetting changes to each assumption. |
Provisions (Tables)
Provisions (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of other provisions rollforward | Restructuring Legal proceedings Customer Other Total $m $m $m $m $m Provisions (excluding contractual commitments) At 31 Dec 2020 671 756 858 305 2,590 Additions 158 61 92 100 411 Amounts utilised (273) (149) (298) (28) (748) Unused amounts reversed (72) (14) (93) (43) (222) Exchange and other movements 45 (27) 10 (29) (1) At 30 Jun 2021 529 627 569 305 2,030 Contractual commitments 1 At 31 Dec 2020 1,088 Net change in expected credit loss provision and other movements (304) At 30 Jun 2021 784 Total provisions At 31 Dec 2020 3,678 At 30 Jun 2021 2,814 1 Contractual commitments include the provision for contingent liabilities measured under IFRS 9 ‘Financial Instruments’ in respect of financial guarantees and the expected credit loss provision on off-balance sheet guarantees and commitments. |
Contingent liabilities, contr_2
Contingent liabilities, contractual commitments, and guarantees (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Summary of contingent liabilities, contractual commitments and guarantees | At 30 Jun 31 Dec 2021 2020 $m $m Guarantees and contingent liabilities: – financial guarantees 27,274 18,384 – performance and other guarantees 80,641 78,114 – other contingent liabilities 838 1,219 At the end of the period 108,753 97,717 Commitments: 1 – documentary credits and short-term trade-related transactions 9,201 7,178 – forward asset purchases and forward deposits placed 72,916 66,506 – standby facilities, credit lines and other commitments to lend 764,768 771,086 At the end of the period 846,885 844,770 1 Includes $661,373m of commitments at 30 June 2021 (31 December 2020: $659,783m), to which the impairment requirements in IFRS 9 are applied where HSBC has become party to an irrevocable commitment. |
Report of the directors finan_2
Report of the directors financial review risk report (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Report Of The Directors Financial Review Risk Report [Abstract] | |
Disclosure of detailed information about financial instruments | Summary of financial instruments to which the impairment requirements in IFRS 9 are applied At 30 Jun 2021 At 31 Dec 2020 Gross carrying/ Allowance for ECL 1 Gross carrying/ Allowance for ECL 1 $m $m $m $m Loans and advances to customers at amortised cost 1,072,375 (12,864) 1,052,477 (14,490) – personal 482,447 (4,006) 460,809 (4,731) – corporate and commercial 520,201 (8,640) 527,088 (9,494) – non-bank financial institutions 69,727 (218) 64,580 (265) Loans and advances to banks at amortised cost 86,905 (19) 81,658 (42) Other financial assets measured at amortised cost 854,504 (224) 772,408 (175) – cash and balances at central banks 393,562 (3) 304,486 (5) – items in the course of collection from other banks 9,406 — 4,094 — – Hong Kong Government certificates of indebtedness 41,880 — 40,420 — – reverse repurchase agreements – non-trading 201,714 — 230,628 — – financial investments 84,662 (88) 88,719 (80) – prepayments, accrued income and other assets 2 123,280 (133) 104,061 (90) Total gross carrying amount on-balance sheet 2,013,784 (13,107) 1,906,543 (14,707) Loans and other credit-related commitments 661,373 (530) 659,783 (734) – personal 238,559 (23) 236,170 (40) – corporate and commercial 288,414 (475) 299,802 (650) – financial 134,400 (32) 123,811 (44) Financial guarantees 27,274 (64) 18,384 (125) – personal 919 (1) 900 (1) – corporate and commercial 21,679 (58) 12,946 (114) – financial 4,676 (5) 4,538 (10) Total nominal amount off-balance sheet 3 688,647 (594) 678,167 (859) 2,702,431 (13,701) 2,584,710 (15,566) Fair Memorandum allowance for ECL 4 Fair Memorandum allowance for ECL 4 $m $m $m $m Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) 348,107 (111) 399,717 (141) 1 Total ECL is recognised in the loss allowance for the financial asset unless total ECL exceeds the gross carrying amount of the financial asset, in which case the ECL is recognised as a provision. 2 Includes only those financial instruments that are subject to the impairment requirements of IFRS 9. ‘Prepayments, accrued income and other assets’, as presented within the consolidated balance sheet on page 100, includes both financial and non-financial assets. The 30 June 2021 balances include $2,649m gross carrying amounts and $48m allowances for ECL related to assets held for sale due to the exit of domestic mass market retail banking in the US. 3 Represents the maximum amount at risk should the contracts be fully drawn upon and clients default. 4 Debt instruments measured at FVOCI continue to be measured at fair value with the allowance for ECL as a memorandum item. Change in ECL is recognised in ‘Change for expected credit losses and other credit impairment charges’ in the income statement. The following table shows the difference between the fair value at initial recognition, which is the transaction price, and the value that would have been derived had valuation techniques used for subsequent measurement been applied at initial recognition, less subsequent releases. Unamortised balance of derivatives valued using models with significant unobservable inputs Half-year to 30 Jun 30 Jun 31 Dec 2021 2020 2020 $m $m $m Unamortised balance at beginning of period 104 73 89 Deferral on new transactions 187 106 126 Recognised in the income statement during the period (172) (87) (118) – amortisation (89) (51) (65) – subsequent to unobservable inputs becoming observable (3) (1) (3) – maturity, termination or offsetting derivative (80) (35) (50) Exchange differences 1 (3) 7 Unamortised balance at end of period 1 120 89 104 1 This amount is yet to be recognised in the consolidated income statement. |
Disclosure of macroeconomic variables and probabilities | The following table describes key macroeconomic variables and the probabilities assigned in the consensus Central scenario. Central scenario 3Q21–2Q26 UK US Hong Kong Mainland China Canada France UAE Mexico % % % % % % % % GDP growth rate 2021: Annual average growth rate 6.1 6.1 5.2 8.5 5.8 4.9 2.5 4.9 2022: Annual average growth rate 5.5 4.0 3.2 5.5 3.9 3.9 3.8 2.9 2023: Annual average growth rate 2.2 2.3 2.7 5.3 2.3 2.1 3.0 2.3 5-year average 3.0 2.9 2.6 5.0 2.6 2.1 3.6 2.4 Unemployment rate 2021: Annual average rate 5.8 5.5 6.2 3.9 7.6 8.9 2.7 4.5 2022: Annual average rate 5.8 4.3 4.6 3.8 6.3 8.7 2.7 4.2 2023: Annual average rate 5.0 4.0 3.9 3.8 6.1 8.4 2.7 4.1 5-year average 5.1 4.1 4.0 3.8 6.1 8.3 2.7 4.2 House price growth 2021: Annual average growth rate 8.3 11.9 2.6 4.3 16.1 4.5 (3.9) 5.4 2022: Annual average growth rate 2.7 6.2 3.9 6.0 6.4 3.5 (0.7) 5.2 2023: Annual average growth rate 2.5 4.4 2.5 5.4 2.6 4.2 0.3 4.7 5-year average 3.0 5.1 2.9 4.9 4.7 3.5 0.8 4.6 Short-term interest rate 2021: Annual average rate 0.2 0.3 0.9 3.4 0.5 (0.6) 0.8 4.5 2022: Annual average rate 0.3 0.4 1.2 3.4 0.7 (0.6) 0.9 5.5 2023: Annual average rate 0.5 0.7 1.6 3.5 1.2 (0.5) 1.2 6.4 5-year average 0.6 1.1 1.9 3.5 1.4 (0.4) 1.5 6.4 Probability 50 75 70 80 70 45 65 65 The following table describes key macroeconomic variables and the probabilities assigned in the consensus Upside scenario. Consensus Upside scenario best outcome UK US Hong Kong Mainland China Canada France UAE Mexico % % % % % % % % GDP growth rate 11.1 (1Q22) 11.0 (1Q22) 10.0 (2Q22) 13.5 (2Q22) 11.2 (2Q22) 8.3 (2Q22) 14.9 (1Q22) 8.6 (2Q22) Unemployment rate 3.4 (2Q23) 2.2 (1Q22) 3.2 (2Q23) 3.6 (3Q22) 4.7 (1Q22) 7.2 (3Q22) 2.2 (2Q22) 3.0 (1Q22) House price growth 9.1 (3Q21) 12.0 (3Q21) 8.9 (4Q21) 13.9 (2Q22) 20.2 (4Q21) 6.1 (3Q22) 21.1 (3Q22) 8.7 (3Q22) Short-term interest rate 0.2 (3Q21) 0.5 (3Q21) 1.2 (3Q21) 3.4 (3Q21) 0.6 (3Q21) (0.6) (1Q22) 1.0 (3Q21) 5.0 (3Q21) Probability 5 5 5 10 10 5 5 5 Note: Extreme point in the consensus Upside is ‘best outcome’ in the scenario, for example the highest GDP growth and the lowest unemployment rate, in the first two years of the scenario. The following table describes key macroeconomic variables and the probabilities assigned in the consensus Downside scenario. Consensus Downside scenario worst outcome UK US Hong Kong Mainland China Canada France UAE Mexico % % % % % % % % GDP growth rate 0.4 (2Q23) (0.6) (2Q22) (6.0) (1Q22) (0.7) (4Q21) (0.5) (1Q22) (1.6) (3Q21) (3.3) (3Q22) (2.7) (1Q22) Unemployment rate 7.3 (2Q22) 6.9 (1Q22) 7.1 (3Q21) 4.1 (4Q21) 8.3 (4Q21) 11.0 (4Q21) 3.2 (2Q22) 5.5 (4Q21) House price growth (3.7) (4Q22) 2.7 (4Q22) (8.0) (2Q22) 0.8 (2Q22) (2.3) (4Q22) 0.3 (1Q22) (17.0) (4Q22) 2.3 (3Q22) Short-term interest rate 0.2 (2Q23) 0.4 (1Q22) 1.2 (2Q23) 3.1 (3Q21) 0.4 (2Q23) (0.6) (3Q21) 0.9 (4Q21) 3.4 (3Q21) Probability 30 15 20 8 10 35 25 25 Note: Extreme point in the consensus Downside is ‘worst outcome’ in the scenario, for example the lowest GDP growth and the highest unemployment rate, in the first two years of the scenario. The following table describes key macroeconomic variables and the probabilities assigned in the additional Downside scenario. Additional Downside scenario worst outcome UK US Hong Kong Mainland China Canada France UAE Mexico % % % % % % % % GDP growth rate (2.1) (2Q22) (4.4) (2Q22) (10.6) (1Q22) (7.4) (2Q22) (4.6) (2Q22) (3.1) (1Q22) (11.6) (2Q22) (7.6) (2Q22) Unemployment rate 9.3 (3Q22) 11.0 (2Q23) 7.1 (3Q21) 5.7 (1Q23) 9.8 (2Q22) 11.1 (4Q21) 4.4 (3Q21) 6.1 (4Q22) House price growth (7.8) (2Q22) (5.7) (2Q22) (17.0) (2Q22) (20.7) (2Q22) (16.1) (3Q22) (5.9) (2Q22) (18.1) (2Q22) 0.9 (4Q22) Short-term interest rate 1.0 (4Q21) 1.3 (4Q21) 2.1 (3Q21) 4.8 (4Q21) 0.5 (3Q21) 0.3 (4Q21) 0.4 (4Q21) 7.2 (4Q21) Probability 15 5 5 2 10 15 5 5 Note: Extreme point in the additional Downside is ‘worst outcome’ in the scenario, for example the lowest GDP growth and the highest unemployment rate, in the first two years of the scenario. IFRS 9 ECL sensitivity to future economic conditions 1, 2 Gross carrying amount Reported Central scenario ECL Upside scenario ECL Downside scenario ECL Additional Downside scenario ECL By geography at 30 Jun 2021 $m $m $m $m $m $m UK 481,849 1,740 1,433 1,083 1,888 2,949 US 229,768 270 253 185 319 490 Hong Kong 436,443 429 377 211 557 892 Mainland China 124,547 98 75 16 224 1,192 Canada 84,398 146 115 66 176 361 Mexico 24,971 180 161 123 210 358 UAE 45,997 201 164 119 257 607 France 197,175 133 115 107 147 233 By geography at 31 Dec 2020 UK 430,555 2,077 1,514 1,026 2,271 3,869 US 201,263 369 314 219 472 723 Hong Kong 452,983 474 388 211 672 1,363 Mainland China 118,163 116 93 28 252 1,158 Canada 85,720 183 140 82 253 528 Mexico 25,920 246 222 177 285 437 UAE 44,777 250 241 190 330 536 France 164,899 117 109 97 131 238 1 ECL sensitivity includes off-balance sheet financial instruments that are subject to significant measurement uncertainty. 2 Includes low credit-risk financial instruments such as debt instruments at FVOCI, which have high carrying amounts but low ECL under all the above scenarios. IFRS 9 ECL sensitivity to future economic conditions 1,2 Gross carrying amount Reported Central scenario ECL Upside scenario ECL Downside scenario ECL Additional Downside scenario By geography at 30 June 2021 $m $m $m $m $m $m UK Mortgages 151,435 205 199 193 210 221 Credit cards 7,563 678 625 533 767 945 Other 8,460 713 631 534 779 934 Mexico Mortgages 4,427 112 104 93 125 142 Credit cards 1,044 180 175 163 198 214 Other 2,626 395 380 357 412 437 Hong Kong Mortgages 93,283 — — — — — Credit cards 7,414 244 231 213 269 384 Other 5,787 102 96 89 119 141 UAE Mortgages 1,902 55 52 44 60 64 Credit cards 395 73 66 61 80 95 Other 613 28 28 26 29 31 France Mortgages 23,583 61 60 60 61 62 Other 1,668 75 75 74 76 77 US Mortgages 15,283 41 41 40 42 48 Credit cards 938 162 161 160 164 178 Canada Mortgages 24,681 31 30 27 32 38 Credit cards 232 10 10 10 10 10 Other 1,699 21 21 20 23 25 By geography at 31 December 2020 UK Mortgages 146,478 197 182 172 205 221 Credit cards 7,869 857 774 589 904 1,084 Other 9,164 897 795 471 1,022 1,165 Mexico Mortgages 3,896 111 101 79 136 167 Credit cards 1,113 260 255 243 269 290 Other 2,549 436 428 411 451 491 Hong Kong Mortgages 89,943 — — — — — Credit cards 7,422 266 259 247 277 405 Other 6,020 112 105 102 115 130 UAE Mortgages 1,889 66 63 53 73 78 Credit cards 426 92 81 62 107 126 Other 683 38 37 33 41 46 France Mortgages 24,565 68 68 68 69 70 Other 1,725 88 87 85 88 91 US Mortgages 15,399 41 39 38 41 53 Credit cards 570 86 84 81 88 119 Canada Mortgages 22,454 31 30 29 31 36 Credit cards 260 9 9 8 9 9 Other 1,775 22 21 20 24 28 1 ECL sensitivities exclude portfolios utilising less complex modelling approaches. 2 At 30 June 2021, US sensitivity includes the implementation of an enhanced model. Retail 1 Wholesale 1 Total Group ECL at 30 June 2021 $bn $bn Reported ECL 3.9 3.7 Scenarios 100% consensus Central scenario (0.2) (0.6) 100% consensus Upside scenario (0.5) (1.4) 100% consensus Downside scenario 0.3 0.7 100% additional Downside scenario 1.1 4.5 Total Group ECL at 31 December 2020 Reported ECL 4.5 4.5 Scenarios 100% consensus Central scenario (0.3) (0.9) 100% consensus Upside scenario (1.0) (2.0) 100% consensus Downside scenario 0.3 1.0 100% alternative Downside scenario 1.3 5.9 1 On the same basis as retail and wholesale sensitivity analysis. |
Disclosure of financial assets that are either past due or impaired | Management judgemental adjustments to ECL at 30 June 2021 1 Retail Wholesale Total $bn $bn $bn Low-risk counterparties (banks, sovereigns and government entities) 0.1 (0.8) (0.7) Corporate lending adjustments 1.4 1.4 Retail lending probability of default adjustments (0.1) (0.1) Retail model default timing adjustments 0.4 0.4 Macroeconomic-related adjustments 0.6 0.6 Other retail lending adjustments 0.3 0.3 Total 1.3 0.7 2.0 Management judgemental adjustments to ECL at 31 December 2020 1 Retail Wholesale Total $bn $bn $bn Low-risk counterparties (banks, sovereigns and government entities) — (0.7) (0.7) Corporate lending adjustments 0.5 0.5 Retail lending probability of default adjustments (0.8) (0.8) Retail model default timing adjustments 1.9 1.9 Macroeconomic-related adjustments 0.1 0.1 Other retail lending adjustments 0.3 0.3 Total 1.5 (0.2) 1.3 1 Management judgemental adjustments presented in the table reflect increases or (decreases) to ECL, respectively. Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation Gross carrying/nominal amount Allowance for ECL Net Strong Good Satisfactory Sub- Credit impaired Total $m $m $m $m $m $m $m $m Loans and advances to customers at amortised cost 528,036 232,101 258,457 34,496 19,285 1,072,375 (12,864) 1,059,511 – stage 1 522,137 204,332 164,251 4,826 — 895,546 (1,770) 893,776 – stage 2 5,899 27,769 94,206 29,670 — 157,544 (3,888) 153,656 – stage 3 — — — — 19,069 19,069 (7,131) 11,938 – POCI — — — — 216 216 (75) 141 Loans and advances to banks at amortised cost 77,928 4,819 3,155 1,003 — 86,905 (19) 86,886 – stage 1 77,739 4,662 3,062 23 — 85,486 (16) 85,470 – stage 2 189 157 93 980 — 1,419 (3) 1,416 – stage 3 — — — — — — — — – POCI — — — — — — — — Other financial assets measured at amortised cost 751,028 71,664 30,323 1,163 326 854,504 (224) 854,280 – stage 1 750,477 70,918 27,469 114 — 848,978 (130) 848,848 – stage 2 551 746 2,854 1,049 — 5,200 (38) 5,162 – stage 3 — — — — 284 284 (47) 237 – POCI — — — — 42 42 (9) 33 Loan and other credit-related commitments 408,027 150,779 91,284 10,537 746 661,373 (530) 660,843 – stage 1 404,424 139,198 67,581 1,766 — 612,969 (184) 612,785 – stage 2 3,603 11,581 23,703 8,771 — 47,658 (266) 47,392 – stage 3 — — — — 744 744 (80) 664 – POCI — — — — 2 2 — 2 Financial guarantees 15,693 5,018 5,125 1,216 222 27,274 (64) 27,210 – stage 1 15,592 4,178 3,151 248 — 23,169 (17) 23,152 – stage 2 101 840 1,974 968 — 3,883 (30) 3,853 – stage 3 — — — — 221 221 (17) 204 – POCI — — — — 1 1 — 1 At 30 Jun 2021 1,780,712 464,381 388,344 48,415 20,579 2,702,431 (13,701) 2,688,730 Debt instruments at FVOCI 1 – stage 1 317,105 13,039 11,126 — — 341,270 (65) 341,205 – stage 2 791 93 321 741 — 1,946 (15) 1,931 – stage 3 — — — — 226 226 (24) 202 – POCI — — — — 48 48 (7) 41 At 30 Jun 2021 317,896 13,132 11,447 741 274 343,490 (111) 343,379 1 For the purposes of this disclosure, gross carrying value is defined as the amortised cost of a financial asset, before adjusting for any loss allowance. As such, the gross carrying value of debt instruments at FVOCI will not reconcile to the balance sheet as it excludes fair value gains and losses. Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation (continued) Gross carrying/notional amount Strong Good Satisfactory Sub- standard Credit impaired Total Allowance for ECL Net $m $m $m $m $m $m $m $m Loans and advances to customers at amortised cost 506,231 233,320 256,584 36,970 19,372 1,052,477 (14,490) 1,037,987 – stage 1 499,836 199,138 165,507 5,439 — 869,920 (1,974) 867,946 – stage 2 6,395 34,182 91,077 31,531 — 163,185 (4,965) 158,220 – stage 3 — — — — 19,095 19,095 (7,439) 11,656 – POCI — — — — 277 277 (112) 165 Loans and advances to banks at amortised cost 71,318 5,496 3,568 1,276 — 81,658 (42) 81,616 – stage 1 71,126 5,098 3,357 73 — 79,654 (33) 79,621 – stage 2 192 398 211 1,203 — 2,004 (9) 1,995 – stage 3 — — — — — — — — – POCI — — — — — — — — Other financial assets measured at amortised cost 683,231 61,768 26,581 611 217 772,408 (175) 772,233 – stage 1 682,412 61,218 24,532 54 — 768,216 (80) 768,136 – stage 2 819 550 2,049 557 — 3,975 (44) 3,931 – stage 3 — — — — 177 177 (42) 135 – POCI — — — — 40 40 (9) 31 Loan and other credit-related commitments 400,911 157,339 90,784 9,668 1,081 659,783 (734) 659,049 – stage 1 396,028 143,600 63,592 1,265 — 604,485 (290) 604,195 – stage 2 4,883 13,739 27,192 8,403 — 54,217 (365) 53,852 – stage 3 — — — — 1,080 1,080 (78) 1,002 – POCI — — — — 1 1 (1) — Financial guarantees 6,356 5,194 5,317 1,247 270 18,384 (125) 18,259 – stage 1 6,286 4,431 3,163 210 — 14,090 (37) 14,053 – stage 2 70 763 2,154 1,037 — 4,024 (62) 3,962 – stage 3 — — — — 269 269 (26) 243 – POCI — — — — 1 1 — 1 At 31 Dec 2020 1,668,047 463,117 382,834 49,772 20,940 2,584,710 (15,566) 2,569,144 Debt instruments at FVOCI 1 – stage 1 367,542 12,585 10,066 — — 390,193 (88) 390,105 – stage 2 143 93 343 825 — 1,404 (20) 1,384 – stage 3 — — — — 257 257 (23) 234 – POCI — — — — 49 49 (10) 39 At 31 Dec 2020 367,685 12,678 10,409 825 306 391,903 (141) 391,762 1 For the purposes of this disclosure, gross carrying value is defined as the amortised cost of a financial asset, before adjusting for any loss allowance. As such, the gross carrying value of debt instruments at FVOCI will not reconcile to the balance sheet as it excludes fair value gains and losses. |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments | Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan commitments and financial guarantees Non-credit impaired Credit impaired Stage 1 Stage 2 Stage 3 POCI Total Gross carrying/ nominal amount Allowance for ECL Gross carrying/ nominal amount Allowance for ECL Gross carrying/ nominal amount Allowance for ECL Gross carrying/ nominal amount Allowance for ECL Gross carrying/ nominal amount Allowance for ECL $m $m $m $m $m $m $m $m $m $m At 1 Jan 2021 1,506,451 (2,331) 223,432 (5,403) 20,424 (7,544) 279 (113) 1,750,586 (15,391) Transfers of financial instruments: (9,572) (993) 6,141 1,411 3,431 (418) — — — — – transfers from stage 1 to stage 2 (88,050) 273 88,050 (273) — — — — — — – transfers from stage 2 to stage 1 79,249 (1,239) (79,249) 1,239 — — — — — — – transfers to stage 3 (1,092) 18 (3,248) 522 4,340 (540) — — — — – transfers from stage 3 321 (45) 588 (77) (909) 122 — — — — Net remeasurement of ECL arising from transfer of stage — 625 — (320) — (12) — — — 293 New financial assets originated or purchased 224,124 (268) — — — — 1 — 224,125 (268) Assets derecognised (including final repayments) (143,261) 82 (15,521) 258 (1,559) 234 (8) 6 (160,349) 580 Changes to risk parameters – further lending/repayments (25,456) 285 (3,440) 285 (808) 348 (44) 4 (29,748) 922 Change in risk parameters – credit quality — 609 — (397) — (1,229) — 28 — (989) Changes to models used for ECL calculation — 12 — (12) — — — — — — Assets written off — — — — (1,356) 1,352 (9) 1 (1,365) 1,353 Credit-related modifications that resulted in derecognition — — — — (1) — — — (1) — Foreign exchange (3,130) (7) (91) (19) (92) 35 (1) — (3,314) 9 Other (180) 7 (20) 5 (7) 2 — — (207) 14 At 30 Jun 2021 1,548,976 (1,979) 210,501 (4,192) 20,032 (7,232) 218 (74) 1,779,727 (13,477) ECL income statement change for the period 1,345 (186) (659) 38 538 Recoveries 209 Other (41) Total ECL income statement change for the period 706 At 30 Jun 2021 6 months ended 30 Jun 2021 Gross carrying/nominal amount Allowance for ECL release/(charge) $m $m $m As above 1,779,727 (13,477) 706 Other financial assets measured at amortised cost 854,504 (224) (56) Non-trading reverse purchase agreement commitments 68,200 — — Performance and other guarantees — — 43 Summary of financial instruments to which the impairment requirements in IFRS 9 are applied/Summary consolidated income statement 2,702,431 (13,701) 693 Debt instruments measured at FVOCI 348,107 (111) 26 Total allowance for ECL/total income statement ECL charge for the period n/a (13,812) 719 Reconciliation of changes in gross carrying/nominal amount and allowances for loans and advances to banks and customers including loan commitments and financial guarantees (continued) Non-credit impaired Credit impaired Stage 1 Stage 2 Stage 3 POCI Total Gross carrying/ nominal amount Allowance for ECL Gross carrying/ nominal amount Allowance for ECL Gross carrying/ nominal amount Allowance for ECL Gross carrying/ nominal amount Allowance for ECL Gross carrying/ nominal amount Allowance for ECL $m $m $m $m $m $m $m $m $m $m At 1 Jan 2020 1,561,613 (1,464) 105,551 (2,441) 14,335 (5,121) 345 (99) 1,681,844 (9,125) Transfers of financial instruments: (129,236) (1,122) 116,783 1,951 12,453 (829) — — — — – transfers from stage 1 to stage 2 (298,725) 947 298,725 (947) — — — — — — – transfers from stage 2 to stage 1 172,894 (2,073) (172,894) 2,073 — — — — — — – transfers to stage 3 (3,942) 30 (10,320) 986 14,262 (1,016) — — — — – transfers from stage 3 537 (26) 1,272 (161) (1,809) 187 — — — — Net remeasurement of ECL arising from transfer of stage — 907 — (1,158) — (750) — — — (1,001) New financial assets originated or purchased 437,836 (653) — — — — 25 (1) 437,861 (654) Assets derecognised (including final repayments) (313,347) 160 (37,409) 464 (3,430) 485 (23) 2 (354,209) 1,111 Changes to risk parameters – further lending/repayment (83,147) 157 29,092 85 (597) 248 (50) (2) (54,702) 488 Changes in risk parameters – credit quality — (408) — (4,374) — (4,378) — (39) — (9,199) Changes to models used for ECL calculation — 134 — 294 — 5 — — — 433 Assets written off — — — — (2,946) 2,944 (30) 30 (2,976) 2,974 Credit-related modifications that resulted in derecognition — — — — (23) 7 — — (23) 7 Foreign exchange 32,808 (47) 9,123 (223) 633 (163) 4 (3) 42,568 (436) Other (76) 5 292 (1) (1) 8 8 (1) 223 11 At 31 Dec 2020 1,506,451 (2,331) 223,432 (5,403) 20,424 (7,544) 279 (113) 1,750,586 (15,391) ECL income statement change for the period 297 (4,689) (4,390) (40) (8,822) Recoveries 326 Others (84) Total ECL income statement change for the period 1 (8,580) At 31 Dec 2020 12 months ended 31 Dec 2020 Gross carrying/nominal amount Allowance for ECL charge $m $m $m As above 1,750,586 (15,391) (8,580) Other financial assets measured at amortised cost 772,408 (175) (95) Non-trading reverse purchase agreement commitments 61,716 — — Performance and other guarantees — — (94) Summary of financial instruments to which the impairment requirements in IFRS 9 are applied/Summary consolidated income statement 2,584,710 (15,566) (8,769) Debt instruments measured at FVOCI 399,717 (141) (48) Total allowance for ECL/total income statement ECL charge for the period n/a (15,707) (8,817) 1 The 31 December 2020 total ECL income statement change of $8,580m is attributable to $6,464m for the six months ended 30 June 2020 and $2,116m to the six months ended 31 December 2020. |
Disclosure of value at risk | Trading VaR, 99% 1 day Foreign exchange Interest Equity Credit Portfolio diversification 1 Total $m $m $m $m $m $m Half-year to 30 Jun 2021 13.6 33.5 15.8 18.3 (42.5) 38.7 Average 15.0 33.4 16.5 18.1 (46.2) 36.8 Maximum 31.8 50.4 24.3 29.4 48.2 Minimum 6.9 18.5 12.1 12.2 31.1 Half-year to 30 Jun 2020 10.4 36.8 26.3 18.7 (47.8) 44.4 Average 10.6 27.6 25.0 23.1 (36.2) 50.1 Maximum 19.9 43.5 41.3 44.1 69.3 Minimum 5.6 19.1 13.6 13.7 33.6 Half-year to 31 Dec 2020 13.7 20.3 21.5 24.3 (36.4) 43.4 Average 11.3 25.5 29.0 20.2 (40.2) 45.8 Maximum 25.7 38.1 40.5 28.6 62.2 Minimum 7.1 19.8 21.1 12.6 37.2 1 When VaR is calculated at a portfolio level, natural offsets in risk can occur when compared with aggregating VaR at the asset class level. This difference is called portfolio diversification. The asset class VaR maxima and minima reported in the table occurred on different dates within the reporting period. For this reason, we do not report an implied portfolio diversification measure between the maximum (minimum) asset class VaR measures and the maximum (minimum) total VaR measures in this table. Non-trading VaR, 99% 1 day Interest Credit Portfolio diversification 1 Total $m $m $m $m Half-year to 30 Jun 2021 193.7 73.8 (18.0) 249.5 Average 201.1 80.5 (31.2) 250.4 Maximum 248.7 99.3 298.8 Minimum 163.3 64.7 193.5 Half-year to 30 Jun 2020 184.3 83.2 (61.6) 205.9 Average 122.8 80.9 (60.7) 143.0 Maximum 190.1 133.4 219.7 Minimum 59.0 44.2 79.7 Half-year to 31 Dec 2020 166.6 87.0 (5.7) 247.8 Average 176.7 84.0 (23.7) 237.0 Maximum 196.4 102.1 274.6 Minimum 159.2 67.5 179.7 1 When VaR is calculated at a portfolio level, natural offsets in risk can occur when compared with aggregating VaR at the asset class level. This difference is called portfolio diversification. The asset class VaR maxima and minima reported in the table occurred on different dates within the reporting period. For this reason, we do not report an implied portfolio diversification measure between the maximum (minimum) asset class VaR measures and the maximum (minimum) total VaR measures in this table. |
Disclosure of amounts arising from insurance contracts | Balance sheet of insurance manufacturing subsidiaries by type of contract With Unit- Other contracts 1 Shareholder Total $m $m $m $m $m Financial assets 87,984 9,134 19,402 9,238 125,758 – trading assets — — — — — – financial assets designated and otherwise mandatorily measured at fair value through profit or loss 29,111 8,788 3,651 1,907 43,457 – derivatives 146 1 6 2 155 – financial investments – at amortised cost 41,201 93 14,145 4,391 59,830 – financial investments – at fair value through other comprehensive income 11,851 — 490 1,700 14,041 – other financial assets 2 5,675 252 1,110 1,238 8,275 Reinsurance assets 2,191 77 1,625 1 3,894 PVIF 3 — — — 9,449 9,449 Other assets and investment properties 2,551 3 658 717 3,929 Total assets at June 2021 92,726 9,214 21,685 19,405 143,030 Liabilities under investment contracts designated at fair value — 2,390 3,941 — 6,331 Liabilities under insurance contracts 87,685 6,726 16,225 — 110,636 Deferred tax 4 180 8 19 1,407 1,614 Other liabilities — — — 8,068 8,068 Total liabilities 87,865 9,124 20,185 9,475 126,649 Total equity — — — 16,381 16,381 Total liabilities and equity at June 2021 87,865 9,124 20,185 25,856 143,030 Financial assets 84,478 8,802 18,932 8,915 121,127 – trading assets — — — — — – financial assets designated at fair value 26,002 8,558 3,508 1,485 39,553 – derivatives 262 3 13 3 281 – financial investments at amortised cost 39,891 30 13,984 4,521 58,426 – financial investments at fair value through other comprehensive income 12,531 — 459 1,931 14,921 – other financial assets 2 5,792 211 968 975 7,946 Reinsurance assets 2,256 65 1,447 2 3,770 PVIF 3 — — — 9,435 9,435 Other assets and investment properties 2,628 1 227 721 3,577 Total assets at December 2020 89,362 8,868 20,606 19,073 137,909 Liabilities under investment contracts designated at fair value — 2,285 4,100 — 6,385 Liabilities under insurance contracts 84,931 6,503 15,827 — 107,261 Deferred tax 4 145 5 25 1,400 1,575 Other liabilities — — — 7,244 7,244 Total liabilities 85,076 8,793 19,952 8,644 122,465 Total equity — — — 15,444 15,444 Total liabilities and equity at December 2020 85,076 8,793 19,952 24,088 137,909 1 Other contracts includes term assurance, credit life insurance, universal life insurance and certain investment contracts not included in the ‘Unit-linked’ or ‘With DPF’ columns. 2 Comprise mainly loans and advances to banks, cash and inter-company balances with other non-insurance legal entities. 3 Present value of in-force long-term insurance business. 4 Deferred tax includes the deferred tax liabilities arising on recognition of PVIF. |
Disclosure of sensitivity to insurance risk | Sensitivity of HSBC’s insurance manufacturing subsidiaries to market risk factors At 30 Jun 2021 At 31 Dec 2020 Effect on Effect on Effect on Effect on $m $m $m $m +100 basis point parallel shift in yield curves (42) (188) (67) (188) -100 basis point parallel shift in yield curves (53) 97 (68) 58 10% increase in equity prices 366 366 332 332 10% decrease in equity prices (372) (372) (338) (338) 10% increase in US dollar exchange rate compared with all currencies 10 10 84 84 10% decrease in US dollar exchange rate compared with all currencies (10) (10) (84) (84) |
Net fee income - Summary of net
Net fee income - Summary of net fee income (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |
Disclosure Of Analysis Of Income And Expense [Line Items] | |||
Funds under management | $ 1,304 | $ 1,176 | $ 1,113 |
Cards | 1,035 | 995 | 954 |
Broking income | 895 | 796 | 743 |
Credit facilities | 827 | 733 | 726 |
Account services | 714 | 644 | 649 |
Unit trusts | 603 | 444 | 455 |
Underwriting | 576 | 463 | 552 |
Global custody | 500 | 488 | 446 |
Remittances | 361 | 352 | 325 |
Imports/exports | 300 | 289 | 288 |
Insurance agency commission | 176 | 154 | 171 |
Other | 1,167 | 1,037 | 1,058 |
Fee income | 8,458 | 7,571 | 7,480 |
Less: fee expense | (1,784) | (1,623) | (1,554) |
Net fee income | 6,674 | 5,948 | 5,926 |
Wealth and Personal Banking | |||
Disclosure Of Analysis Of Income And Expense [Line Items] | |||
Net fee income | 3,042 | 2,717 | 2,691 |
Commercial Banking | |||
Disclosure Of Analysis Of Income And Expense [Line Items] | |||
Net fee income | 1,786 | 1,595 | 1,630 |
Global Banking and Markets | |||
Disclosure Of Analysis Of Income And Expense [Line Items] | |||
Net fee income | 1,857 | 1,659 | 1,608 |
Corporate Centre | |||
Disclosure Of Analysis Of Income And Expense [Line Items] | |||
Net fee income | $ (11) | $ (23) | $ (3) |
Dividends - Commentary (Details
Dividends - Commentary (Details) - Fourth quarter dividend $ / shares in Units, $ in Millions | Aug. 02, 2021USD ($)$ / shares |
Disclosure of classes of share capital [line items] | |
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners | $ | $ 1,430 |
Ordinary shares | |
Disclosure of classes of share capital [line items] | |
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share (in USD per share) | $ / shares | $ 0.07 |
Dividends - Dividends to shareh
Dividends - Dividends to shareholders of the parent company (Details) - USD ($) | Dec. 10, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | |
Dividends Payable [Line Items] | ||||||
Dividends paid on ordinary shares (in usd per share) | $ 0.15 | $ 0 | $ 0 | |||
Dividends paid on ordinary shares | $ 3,059,000,000 | $ 0 | $ 0 | |||
Settled in scrip | 0 | 0 | 0 | |||
Dividends on preference shares classified as equity | 3,732,000,000 | 669,000,000 | $ 662,000,000 | |||
Reduction of issued capital | [1] | $ 2,000,000,000 | $ 1,450,000,000 | |||
Preference shares | ||||||
Dividends Payable [Line Items] | ||||||
Reduction of issued capital | $ 1,450,000,000 | $ 1,450,000,000 | ||||
Other equity instruments interest rate | 6.20% | 6.20% | 6.20% | |||
Preference shares | ||||||
Dividends Payable [Line Items] | ||||||
Dividends on preference shares classified as equity (in usd per share) | $ 4.99 | $ 31 | $ 31 | |||
Dividends on preference shares classified as equity | $ 7,000,000 | $ 45,000,000 | $ 45,000,000 | |||
Other equity instru- ments | ||||||
Dividends Payable [Line Items] | ||||||
Dividends on preference shares classified as equity | 666,000,000 | $ 624,000,000 | $ 617,000,000 | |||
Reduction of issued capital | [1] | $ 2,000,000,000 | ||||
– fourth interim dividend | ||||||
Dividends Payable [Line Items] | ||||||
Dividends paid on ordinary shares (in usd per share) | $ 0.15 | $ 0 | $ 0 | |||
Dividends paid on ordinary shares | $ 3,059,000,000 | $ 0 | $ 0 | |||
Settled in scrip | $ 0 | $ 0 | $ 0 | |||
– first interim dividend | ||||||
Dividends Payable [Line Items] | ||||||
Dividends paid on ordinary shares (in usd per share) | $ 0 | $ 0 | $ 0 | |||
Dividends paid on ordinary shares | $ 0 | $ 0 | $ 0 | |||
Settled in scrip | $ 0 | $ 0 | $ 0 | |||
– second interim dividend | ||||||
Dividends Payable [Line Items] | ||||||
Dividends paid on ordinary shares (in usd per share) | $ 0 | $ 0 | $ 0 | |||
Dividends paid on ordinary shares | $ 0 | $ 0 | $ 0 | |||
Settled in scrip | $ 0 | $ 0 | $ 0 | |||
– third interim dividend | ||||||
Dividends Payable [Line Items] | ||||||
Dividends paid on ordinary shares (in usd per share) | $ 0 | $ 0 | $ 0 | |||
Dividends paid on ordinary shares | $ 0 | $ 0 | $ 0 | |||
Settled in scrip | $ 0 | $ 0 | $ 0 | |||
[1] | During 2021, HSBC Holdings redeemed $2,000m 6.875% perpetual subordinated contingent convertible securities. In 2020, HSBC Holdings called and later redeemed $1,450m 6.20% non-cumulative US dollar preference shares. |
Dividends - Total coupons on ca
Dividends - Total coupons on capital securities classified as equity (Details) | 6 Months Ended | ||||||||
Jun. 30, 2021USD ($)$ / shares | Jun. 30, 2021USD ($)€ / shares | Jun. 30, 2021USD ($)£ / shares | Jun. 30, 2021USD ($)$ / shares | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021EUR (€) | Jun. 30, 2021GBP (£) | Jun. 30, 2021SGD ($) | |
Disclosure Of Other Equity [Line Items] | |||||||||
Dividends on other equity instruments | $ 3,732,000,000 | $ 669,000,000 | $ 662,000,000 | ||||||
Other equity instru- ments | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Dividends on other equity instruments | 666,000,000 | 624,000,000 | 617,000,000 | ||||||
Contingent convertible securities | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Discretionary coupons denominations per security | 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | |||||
– $2,000m issued at 6.875% | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Notional amount | $ 2,000 | $ 2,000 | $ 2,000 | $ 2,000 | |||||
Other equity instruments interest rate | 6.875% | 6.875% | 6.875% | 6.875% | 6.875% | 6.875% | 6.875% | ||
– $2,000m issued at 6.875% | Other equity instru- ments | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Dividends on other equity instruments (per share) | $ / shares | $ 68.750 | ||||||||
Dividends on other equity instruments | $ 69,000,000 | 69,000,000 | 69,000,000 | ||||||
– $2,250m issued at 6.375% | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Notional amount | $ 2,250 | $ 2,250 | $ 2,250 | $ 2,250 | |||||
Other equity instruments interest rate | 6.375% | 6.375% | 6.375% | 6.375% | 6.375% | 6.375% | 6.375% | ||
– $2,250m issued at 6.375% | Other equity instru- ments | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Dividends on other equity instruments (per share) | $ / shares | $ 63.750 | ||||||||
Dividends on other equity instruments | $ 72,000,000 | 71,000,000 | 72,000,000 | ||||||
– $2,450m issued at 6.375% | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Notional amount | $ 2,450 | $ 2,450 | $ 2,450 | $ 2,450 | |||||
Other equity instruments interest rate | 6.375% | 6.375% | 6.375% | 6.375% | 6.375% | 6.375% | 6.375% | ||
– $2,450m issued at 6.375% | Other equity instru- ments | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Dividends on other equity instruments (per share) | $ / shares | $ 63.750 | ||||||||
Dividends on other equity instruments | $ 78,000,000 | 78,000,000 | 78,000,000 | ||||||
– $3,000m issued at 6.000% | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Notional amount | $ 3,000 | $ 3,000 | $ 3,000 | $ 3,000 | |||||
Other equity instruments interest rate | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | ||
– $3,000m issued at 6.000% | Other equity instru- ments | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Dividends on other equity instruments (per share) | $ / shares | $ 60 | ||||||||
Dividends on other equity instruments | $ 90,000,000 | 90,000,000 | 90,000,000 | ||||||
– $2,350m issued at 6.250% | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Notional amount | $ 2,350 | $ 2,350 | $ 2,350 | $ 2,350 | |||||
Other equity instruments interest rate | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% | 6.25% | ||
– $2,350m issued at 6.250% | Other equity instru- ments | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Dividends on other equity instruments (per share) | $ / shares | $ 62.500 | ||||||||
Dividends on other equity instruments | $ 73,000,000 | 74,000,000 | 73,000,000 | ||||||
– $1,800m issued at 6.500% | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Notional amount | $ 1,800 | $ 1,800 | $ 1,800 | $ 1,800 | |||||
Other equity instruments interest rate | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | 6.50% | ||
– $1,800m issued at 6.500% | Other equity instru- ments | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Dividends on other equity instruments (per share) | $ / shares | $ 65 | ||||||||
Dividends on other equity instruments | $ 59,000,000 | 58,000,000 | 59,000,000 | ||||||
– $1,500m issued at 4.600% | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Notional amount | $ 1,500 | $ 1,500 | $ 1,500 | $ 1,500 | |||||
Other equity instruments interest rate | 4.60% | 4.60% | 4.60% | 4.60% | 4.60% | 4.60% | 4.60% | ||
– $1,500m issued at 4.600% | Other equity instru- ments | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Dividends on other equity instruments (per share) | $ / shares | $ 46 | ||||||||
Dividends on other equity instruments | $ 35,000,000 | 0 | 0 | ||||||
– $1,000m issued at 4.000% | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Notional amount | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | |||||
Other equity instruments interest rate | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | ||
– $1,000m issued at 4.000% | Other equity instru- ments | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Dividends on other equity instruments (per share) | $ / shares | $ 40 | ||||||||
Dividends on other equity instruments | $ 0 | 0 | 0 | ||||||
– $1,000m issued at 4.700% | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Notional amount | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | |||||
Other equity instruments interest rate | 4.70% | 4.70% | 4.70% | 4.70% | 4.70% | 4.70% | 4.70% | ||
– $1,000m issued at 4.700% | Other equity instru- ments | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Dividends on other equity instruments (per share) | $ / shares | $ 47 | ||||||||
Dividends on other equity instruments | $ 0 | 0 | 0 | ||||||
– €1,500m issued at 5.250% | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Notional amount | € | € 1,500 | ||||||||
Other equity instruments interest rate | 5.25% | 5.25% | 5.25% | 5.25% | 5.25% | 5.25% | 5.25% | ||
– €1,500m issued at 5.250% | Other equity instru- ments | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Dividends on other equity instruments (per share) | € / shares | $ 52.500 | ||||||||
Dividends on other equity instruments | $ 47,000,000 | 46,000,000 | 44,000,000 | ||||||
– €1,000m issued at 6.000% | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Notional amount | € | € 1,000 | ||||||||
Other equity instruments interest rate | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | 6.00% | ||
– €1,000m issued at 6.000% | Other equity instru- ments | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Dividends on other equity instruments (per share) | € / shares | $ 60 | ||||||||
Dividends on other equity instruments | $ 34,000,000 | 34,000,000 | 33,000,000 | ||||||
– €1,250m issued at 4.750% | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Notional amount | € | € 1,250 | ||||||||
Other equity instruments interest rate | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | ||
– €1,250m issued at 4.750% | Other equity instru- ments | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Dividends on other equity instruments (per share) | € / shares | $ 47.500 | ||||||||
Dividends on other equity instruments | $ 36,000,000 | 34,000,000 | 33,000,000 | ||||||
– £1,000m issued at 5.875% | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Notional amount | £ | £ 1,000 | ||||||||
Other equity instruments interest rate | 5.875% | 5.875% | 5.875% | 5.875% | 5.875% | 5.875% | 5.875% | ||
– £1,000m issued at 5.875% | Other equity instru- ments | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Dividends on other equity instruments (per share) | £ / shares | $ 58.750 | ||||||||
Dividends on other equity instruments | $ 41,000,000 | 38,000,000 | 36,000,000 | ||||||
– SGD1,000m issued at 4.700% | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Notional amount | $ 1,000 | ||||||||
Other equity instruments interest rate | 4.70% | 4.70% | 4.70% | 4.70% | 4.70% | 4.70% | 4.70% | ||
– SGD1,000m issued at 4.700% | Other equity instru- ments | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Dividends on other equity instruments (per share) | $ / shares | $ 47 | ||||||||
Dividends on other equity instruments | $ 18,000,000 | 18,000,000 | 17,000,000 | ||||||
– SGD750m issued at 5.000% | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Notional amount | $ 750 | ||||||||
Other equity instruments interest rate | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | ||
– SGD750m issued at 5.000% | Other equity instru- ments | |||||||||
Disclosure Of Other Equity [Line Items] | |||||||||
Dividends on other equity instruments (per share) | $ / shares | $ 50 | ||||||||
Dividends on other equity instruments | $ 14,000,000 | $ 14,000,000 | $ 13,000,000 |
Earnings per share - Profit att
Earnings per share - Profit attributable to ordinary shareholders (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |
Earnings per share [abstract] | |||
Profit attributable to shareholders of the parent company | $ 7,949 | $ 2,590 | $ 2,639 |
Dividend payable on preference shares classified as equity | (7) | (45) | (45) |
Coupon payable on capital securities classified as equity | (666) | (624) | (617) |
Profit attributable to ordinary shareholders of the parent company | $ 7,276 | $ 1,921 | $ 1,977 |
Earnings per share - Basic and
Earnings per share - Basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |
Earnings per share [abstract] | |||
Profit | $ 7,276 | $ 1,921 | $ 1,977 |
Basic, number of shares (in shares) | 20,211 | 20,176 | 20,162 |
Effect of dilutive potential ordinary shares (in shares) | 97 | 63 | 58 |
Diluted, number of shares (in shares) | 20,308 | 20,239 | 20,220 |
Basic, amount per share (in dollars per share) | $ 0.36 | $ 0.10 | $ 0.10 |
Diluted, amount per share (in dollars per share) | $ 0.36 | $ 0.09 | $ 0.10 |
Segmental analysis - Adjusted p
Segmental analysis - Adjusted profit before tax and balance sheet data (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021USD ($)global_function | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | |
Disclosure of operating segments [line items] | |||
Number of global functions | global_function | 3 | ||
Revenue and other operating income | $ 25,551 | $ 23,684 | $ 26,745 |
of which: net interest income/(expense) | 13,098 | 13,069 | 14,509 |
Change in expected credit losses and other credit impairment charges | 719 | (1,959) | (6,858) |
Net operating income | 26,270 | 21,725 | 19,887 |
Total operating expenses | (17,087) | (17,905) | (16,527) |
Operating profit | 9,183 | 3,820 | 3,360 |
Share of profit in associates and joint ventures | 1,656 | 639 | 958 |
Profit before tax | 10,839 | 4,459 | 4,318 |
Loans and advances to customers (net) | 1,037,987 | ||
Interests in associates and joint ventures | 26,684 | ||
Total external assets | 2,984,164 | ||
Customer accounts | 1,642,780 | ||
– inter-segment | |||
Disclosure of operating segments [line items] | |||
Revenue and other operating income | 0 | 0 | 0 |
– inter-segment | Wealth and Personal Banking | |||
Disclosure of operating segments [line items] | |||
Revenue and other operating income | 233 | 485 | 1,623 |
– inter-segment | Commercial Banking | |||
Disclosure of operating segments [line items] | |||
Revenue and other operating income | 25 | 21 | (416) |
– inter-segment | Global Banking and Markets | |||
Disclosure of operating segments [line items] | |||
Revenue and other operating income | (753) | (934) | (1,937) |
– inter-segment | Corporate Centre | |||
Disclosure of operating segments [line items] | |||
Revenue and other operating income | 495 | 428 | 730 |
Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue and other operating income | 25,797 | 24,523 | 27,597 |
Change in expected credit losses and other credit impairment charges | 719 | (2,031) | (7,287) |
Net operating income | 26,516 | 22,492 | 20,310 |
Total operating expenses | (16,222) | (16,951) | (15,705) |
Operating profit | 10,294 | 5,541 | 4,605 |
Share of profit in associates and joint ventures | 1,656 | 1,139 | 1,049 |
Profit before tax | $ 11,950 | $ 6,680 | $ 5,654 |
Share of HSBC’s adjusted profit before tax | 100.00% | 100.00% | 100.00% |
Adjusted cost efficiency ratio | 0.629 | 0.691 | 0.569 |
Loans and advances to customers (net) | $ 1,059,511 | $ 1,036,818 | $ 1,073,848 |
Interests in associates and joint ventures | 28,709 | 26,862 | 26,242 |
Total external assets | 2,976,005 | 2,981,588 | 3,083,321 |
Customer accounts | 1,669,091 | 1,641,648 | 1,609,384 |
Operating segments | Wealth and Personal Banking | |||
Disclosure of operating segments [line items] | |||
Revenue and other operating income | 11,401 | 11,019 | 11,694 |
Change in expected credit losses and other credit impairment charges | 52 | (685) | (2,328) |
Net operating income | 11,453 | 10,334 | 9,366 |
Total operating expenses | (7,600) | (7,871) | (7,695) |
Operating profit | 3,853 | 2,463 | 1,671 |
Share of profit in associates and joint ventures | 11 | 15 | (8) |
Profit before tax | $ 3,864 | $ 2,478 | $ 1,663 |
Share of HSBC’s adjusted profit before tax | 32.30% | 37.10% | 29.40% |
Adjusted cost efficiency ratio | 0.667 | 0.714 | 0.658 |
Loans and advances to customers (net) | $ 491,320 | $ 469,218 | $ 456,263 |
Interests in associates and joint ventures | 478 | 446 | 428 |
Total external assets | 912,479 | 882,042 | 856,599 |
Customer accounts | 841,257 | 834,376 | 810,137 |
Operating segments | Commercial Banking | |||
Disclosure of operating segments [line items] | |||
Revenue and other operating income | 6,651 | 6,489 | 7,326 |
Change in expected credit losses and other credit impairment charges | 249 | (1,265) | (3,751) |
Net operating income | 6,900 | 5,224 | 3,575 |
Total operating expenses | (3,525) | (3,491) | (3,457) |
Operating profit | 3,375 | 1,733 | 118 |
Share of profit in associates and joint ventures | 1 | (1) | 0 |
Profit before tax | $ 3,376 | $ 1,732 | $ 118 |
Share of HSBC’s adjusted profit before tax | 28.30% | 25.90% | 2.10% |
Adjusted cost efficiency ratio | 0.530 | 0.538 | 0.472 |
Loans and advances to customers (net) | $ 350,945 | $ 342,951 | $ 362,094 |
Interests in associates and joint ventures | 15 | 14 | 15 |
Total external assets | 624,042 | 570,369 | 579,865 |
Customer accounts | 485,689 | 470,686 | 441,427 |
Operating segments | Global Banking and Markets | |||
Disclosure of operating segments [line items] | |||
Revenue and other operating income | 7,878 | 7,323 | 8,574 |
Change in expected credit losses and other credit impairment charges | 414 | (95) | (1,195) |
Net operating income | 8,292 | 7,228 | 7,379 |
Total operating expenses | (4,985) | (4,916) | (4,813) |
Operating profit | 3,307 | 2,312 | 2,566 |
Share of profit in associates and joint ventures | 0 | 0 | 0 |
Profit before tax | $ 3,307 | $ 2,312 | $ 2,566 |
Share of HSBC’s adjusted profit before tax | 27.70% | 34.60% | 45.40% |
Adjusted cost efficiency ratio | 0.633 | 0.671 | 0.561 |
Loans and advances to customers (net) | $ 216,098 | $ 223,395 | $ 254,126 |
Interests in associates and joint ventures | 128 | 141 | 140 |
Total external assets | 1,258,694 | 1,342,544 | 1,472,925 |
Customer accounts | 341,242 | 335,977 | 357,082 |
Operating segments | Corporate Centre | |||
Disclosure of operating segments [line items] | |||
Revenue and other operating income | (133) | (308) | 3 |
Change in expected credit losses and other credit impairment charges | 4 | 14 | (13) |
Net operating income | (129) | (294) | (10) |
Total operating expenses | (112) | (673) | 260 |
Operating profit | (241) | (967) | 250 |
Share of profit in associates and joint ventures | 1,644 | 1,125 | 1,057 |
Profit before tax | $ 1,403 | $ 158 | $ 1,307 |
Share of HSBC’s adjusted profit before tax | 11.70% | 2.40% | 23.10% |
Adjusted cost efficiency ratio | (0.842) | (2.185) | (86.667) |
Loans and advances to customers (net) | $ 1,148 | $ 1,254 | $ 1,365 |
Interests in associates and joint ventures | 28,088 | 26,261 | 25,659 |
Total external assets | 180,790 | 186,633 | 173,932 |
Customer accounts | 903 | 609 | 738 |
Operating segments excluding intersegment elimination | |||
Disclosure of operating segments [line items] | |||
Revenue and other operating income | 25,797 | 24,523 | 27,597 |
of which: net interest income/(expense) | 13,079 | 13,427 | 15,042 |
Change in expected credit losses and other credit impairment charges | (2,031) | (7,287) | |
Total operating expenses | (16,222) | (16,951) | (15,705) |
Share of profit in associates and joint ventures | 1,139 | 1,049 | |
Profit before tax | 6,680 | 5,654 | |
Loans and advances to customers (net) | 1,059,511 | ||
Customer accounts | 1,669,091 | ||
Operating segments excluding intersegment elimination | Wealth and Personal Banking | |||
Disclosure of operating segments [line items] | |||
Revenue and other operating income | 11,168 | 10,534 | 10,071 |
of which: net interest income/(expense) | 7,067 | 7,231 | 8,331 |
Operating segments excluding intersegment elimination | Commercial Banking | |||
Disclosure of operating segments [line items] | |||
Revenue and other operating income | 6,626 | 6,468 | 7,742 |
of which: net interest income/(expense) | 4,366 | 4,545 | 5,080 |
Operating segments excluding intersegment elimination | Global Banking and Markets | |||
Disclosure of operating segments [line items] | |||
Revenue and other operating income | 8,631 | 8,257 | 10,511 |
of which: net interest income/(expense) | 2,024 | 2,184 | 2,435 |
Operating segments excluding intersegment elimination | Corporate Centre | |||
Disclosure of operating segments [line items] | |||
Revenue and other operating income | (628) | (736) | (727) |
of which: net interest income/(expense) | $ (378) | $ (533) | $ (804) |
Segmental analysis - Reported e
Segmental analysis - Reported external net operating income by country/territory (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |
Disclosure of geographical areas [line items] | |||
Net operating income | $ 25,551 | $ 23,684 | $ 26,745 |
UK | |||
Disclosure of geographical areas [line items] | |||
Net operating income | 5,610 | 4,997 | 4,166 |
Hong Kong | |||
Disclosure of geographical areas [line items] | |||
Net operating income | 7,476 | 7,080 | 8,703 |
US | |||
Disclosure of geographical areas [line items] | |||
Net operating income | 1,993 | 2,039 | 2,435 |
France | |||
Disclosure of geographical areas [line items] | |||
Net operating income | 1,228 | 1,056 | 697 |
– other countries | |||
Disclosure of geographical areas [line items] | |||
Net operating income | $ 9,244 | $ 8,512 | $ 10,744 |
Segmental analysis - Adjusted r
Segmental analysis - Adjusted results reconciliation (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |
Disclosure of operating segments [line items] | |||
Revenue | $ 25,551 | $ 23,684 | $ 26,745 |
ECL | 719 | (1,959) | (6,858) |
Operating expenses | (17,087) | (17,905) | (16,527) |
Share of profit in associates and joint ventures | 1,656 | 639 | 958 |
Profit before tax | 10,839 | 4,459 | 4,318 |
Operating segments | |||
Disclosure of operating segments [line items] | |||
Revenue | 25,797 | 24,523 | 27,597 |
ECL | 719 | (2,031) | (7,287) |
Operating expenses | (16,222) | (16,951) | (15,705) |
Share of profit in associates and joint ventures | 1,656 | 1,139 | 1,049 |
Profit before tax | 11,950 | 6,680 | 5,654 |
Significant items | |||
Disclosure of operating segments [line items] | |||
Revenue | (246) | (209) | 265 |
ECL | 0 | 0 | 0 |
Operating expenses | (865) | (1,425) | (1,709) |
Share of profit in associates and joint ventures | 0 | (462) | 0 |
Profit before tax | (1,111) | (2,096) | (1,444) |
Currency translation | |||
Disclosure of operating segments [line items] | |||
Revenue | (630) | (1,117) | |
ECL | 72 | 429 | |
Operating expenses | 471 | 887 | |
Share of profit in associates and joint ventures | (38) | (91) | |
Profit before tax | (125) | 108 | |
Operating segments excluding intersegment elimination | |||
Disclosure of operating segments [line items] | |||
Revenue | 25,797 | 24,523 | 27,597 |
ECL | (2,031) | (7,287) | |
Operating expenses | $ (16,222) | (16,951) | (15,705) |
Share of profit in associates and joint ventures | 1,139 | 1,049 | |
Profit before tax | $ 6,680 | $ 5,654 |
Segmental analysis - Adjusted b
Segmental analysis - Adjusted balance sheet reconciliation (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure of operating segments [line items] | |||
Loans and advances to customers (net) | $ 1,037,987 | ||
Interests in associates and joint ventures | 26,684 | ||
Total external assets | 2,984,164 | ||
Customer accounts | 1,642,780 | ||
Operating segments excluding intersegment elimination | |||
Disclosure of operating segments [line items] | |||
Loans and advances to customers (net) | $ 1,059,511 | ||
Customer accounts | 1,669,091 | ||
Currency translation | |||
Disclosure of operating segments [line items] | |||
Loans and advances to customers (net) | 1,169 | ||
Interests in associates and joint ventures | (178) | ||
Total external assets | 2,576 | ||
Customer accounts | 1,132 | ||
Operating segments | |||
Disclosure of operating segments [line items] | |||
Loans and advances to customers (net) | 1,059,511 | 1,036,818 | $ 1,073,848 |
Interests in associates and joint ventures | 28,709 | 26,862 | 26,242 |
Total external assets | 2,976,005 | 2,981,588 | 3,083,321 |
Customer accounts | $ 1,669,091 | $ 1,641,648 | $ 1,609,384 |
Segmental analysis - Adjusted_2
Segmental analysis - Adjusted profit reconciliation (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |
Disclosure of operating segments [line items] | |||
Profit before tax | $ 10,839 | $ 4,459 | $ 4,318 |
Goodwill impairment | 0 | 0 | 41 |
Goodwill | The Saudi British Bank | |||
Disclosure of operating segments [line items] | |||
Goodwill impairment | 462 | ||
Operating segments | |||
Disclosure of operating segments [line items] | |||
Profit before tax | 11,950 | 6,680 | 5,654 |
Significant items | |||
Disclosure of operating segments [line items] | |||
Profit before tax | (1,111) | (2,096) | (1,444) |
– customer redress programmes (revenue) | 18 | (47) | 26 |
– disposals, acquisitions and investment in new businesses (revenue) | 0 | (2) | (8) |
Fair value movements on financial instruments | (194) | (35) | 299 |
Restructuring and other related costs (revenue) | (70) | (121) | (49) |
– customer redress programmes (operating expenses) | (17) | 104 | (50) |
– impairment of goodwill and other intangible assets | 0 | 65 | 1,025 |
– past service costs of guaranteed minimum pension benefits equalisation | 0 | (17) | 0 |
Restructuring and other related costs (operating expenses) | (848) | (1,403) | (505) |
– settlements and provisions in connection with legal and other regulatory matters | 0 | (7) | (5) |
Impairment of goodwill (share of profit in associates and joint ventures) | 0 | (462) | 0 |
– currency translation on significant items | (41) | (127) | |
Impairment loss recognised in profit or loss, property, plant and equipment | 197 | ||
Currency translation | |||
Disclosure of operating segments [line items] | |||
Profit before tax | $ (125) | 108 | |
Software | Significant items | |||
Disclosure of operating segments [line items] | |||
– impairment of goodwill and other intangible assets | $ 173 |
Fair values of financial inst_5
Fair values of financial instruments carried at fair value - Financial instruments carried at fair value and bases of valuation (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | $ 350,002 | $ 402,054 | ||
Recurring fair value measurement | Level 3 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 21,417 | 20,300 | ||
Financial liabilities | 11,515 | 9,656 | ||
Recurring fair value measurement | Trading liabilities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 89,637 | 75,266 | ||
Recurring fair value measurement | Trading liabilities | Level 1 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 61,676 | 53,290 | ||
Recurring fair value measurement | Trading liabilities | Level 2 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 27,104 | 21,814 | ||
Recurring fair value measurement | Trading liabilities | Level 3 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 857 | 162 | $ 105 | $ 53 |
Recurring fair value measurement | Financial liabilities designated at fair value | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 151,686 | 157,439 | ||
Recurring fair value measurement | Financial liabilities designated at fair value | Level 1 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 1,365 | 1,267 | ||
Recurring fair value measurement | Financial liabilities designated at fair value | Level 2 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 143,084 | 150,866 | ||
Recurring fair value measurement | Financial liabilities designated at fair value | Level 3 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 7,237 | 5,306 | 5,008 | 5,016 |
Recurring fair value measurement | Derivatives | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 200,156 | 303,001 | ||
Recurring fair value measurement | Derivatives | Level 1 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 1,098 | 1,788 | ||
Recurring fair value measurement | Derivatives | Level 2 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 195,637 | 297,025 | ||
Recurring fair value measurement | Derivatives | Level 3 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 3,421 | 4,188 | 3,725 | 2,302 |
Recurring fair value measurement | Trading assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 260,250 | 231,990 | ||
Recurring fair value measurement | Trading assets | Level 1 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 186,338 | 167,980 | ||
Recurring fair value measurement | Trading assets | Level 2 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 71,403 | 61,511 | ||
Recurring fair value measurement | Trading assets | Level 3 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 2,509 | 2,499 | 3,865 | 4,979 |
Recurring fair value measurement | Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 49,120 | 45,553 | ||
Recurring fair value measurement | Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | Level 1 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 20,468 | 19,711 | ||
Recurring fair value measurement | Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | Level 2 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 15,664 | 14,365 | ||
Recurring fair value measurement | Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | Level 3 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 12,988 | 11,477 | 10,404 | 9,476 |
Recurring fair value measurement | Derivatives | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 209,516 | 307,726 | ||
Recurring fair value measurement | Derivatives | Level 1 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 1,630 | 2,602 | ||
Recurring fair value measurement | Derivatives | Level 2 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 205,209 | 302,454 | ||
Recurring fair value measurement | Derivatives | Level 3 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 2,677 | 2,670 | 3,855 | 2,136 |
Recurring fair value measurement | Financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 350,002 | 402,054 | ||
Recurring fair value measurement | Financial investments | Level 1 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 253,593 | 303,654 | ||
Recurring fair value measurement | Financial investments | Level 2 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 93,166 | 94,746 | ||
Recurring fair value measurement | Financial investments | Level 3 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | $ 3,243 | $ 3,654 | $ 3,339 | $ 3,218 |
Fair values of financial inst_6
Fair values of financial instruments carried at fair value - Transfers between Level 1 and Level 2 fair values (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Trading liabilities | ||
Liabilities | ||
Transfers from Level 1 to Level 2 | $ 43 | $ 155 |
Transfers from Level 2 to Level 1 | 530 | 433 |
Designated at fair value | ||
Liabilities | ||
Transfers from Level 1 to Level 2 | 0 | 7,414 |
Transfers from Level 2 to Level 1 | 0 | 0 |
Derivatives | ||
Liabilities | ||
Transfers from Level 1 to Level 2 | 212 | 0 |
Transfers from Level 2 to Level 1 | 0 | 0 |
Financial investments | ||
Assets | ||
Transfers from Level 1 to Level 2 | 5,421 | 4,514 |
Transfers from Level 2 to Level 1 | 4,774 | 7,764 |
Trading assets | ||
Assets | ||
Transfers from Level 1 to Level 2 | 3,601 | 3,891 |
Transfers from Level 2 to Level 1 | 2,381 | 5,517 |
Designated and otherwise mandatorily measured at fair value | ||
Assets | ||
Transfers from Level 1 to Level 2 | 150 | 245 |
Transfers from Level 2 to Level 1 | 645 | 328 |
Derivatives | ||
Assets | ||
Transfers from Level 1 to Level 2 | 103 | 0 |
Transfers from Level 2 to Level 1 | $ 0 | $ 1 |
Fair values of financial inst_7
Fair values of financial instruments carried at fair value - Global Banking and Markets fair value adjustments (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
GBM | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | $ 1,129 | $ 1,348 |
Corporate Centre | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 23 | 28 |
Risk-related | GBM | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 922 | 1,170 |
Risk-related | Corporate Centre | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 23 | 28 |
– bid-offer | GBM | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 445 | 514 |
– bid-offer | Corporate Centre | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 0 | 0 |
– uncertainty | GBM | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 68 | 106 |
– uncertainty | Corporate Centre | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 1 | 1 |
– credit valuation adjustment | GBM | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 287 | 445 |
– credit valuation adjustment | Corporate Centre | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 22 | 27 |
– debt valuation adjustment | GBM | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | (100) | (120) |
– debt valuation adjustment | Corporate Centre | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 0 | 0 |
– funding fair value adjustment | GBM | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 220 | 204 |
– funding fair value adjustment | Corporate Centre | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 0 | 0 |
– other | GBM | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 2 | 21 |
– other | Corporate Centre | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 0 | 0 |
Model-related | GBM | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 87 | 74 |
Model-related | Corporate Centre | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 0 | 0 |
– model limitation | GBM | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 87 | 70 |
– model limitation | Corporate Centre | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 0 | 0 |
– other | GBM | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 0 | 4 |
– other | Corporate Centre | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 0 | 0 |
Inception profit (Day 1 P&L reserves)1 | GBM | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | 120 | 104 |
Inception profit (Day 1 P&L reserves)1 | Corporate Centre | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Fair value adjustments | $ 0 | $ 0 |
Fair values of financial inst_8
Fair values of financial instruments carried at fair value - Financial instruments measured at fair value using a valuation technique with significant unobservable inputs - Level 3 (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | $ 350,002 | $ 402,054 | ||
Recurring fair value measurement | Trading liabilities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 89,637 | 75,266 | ||
Recurring fair value measurement | Designated at fair value | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 151,686 | 157,439 | ||
Recurring fair value measurement | Derivatives | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 200,156 | 303,001 | ||
Recurring fair value measurement | Financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 350,002 | 402,054 | ||
Recurring fair value measurement | Trading assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 260,250 | 231,990 | ||
Recurring fair value measurement | Designated and otherwise mandatorily measured at fair value through profit or loss | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 49,120 | 45,553 | ||
Recurring fair value measurement | Derivatives | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 209,516 | 307,726 | ||
Recurring fair value measurement | Level 3 | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 21,417 | 20,300 | ||
Financial liabilities | 11,515 | 9,656 | ||
Recurring fair value measurement | Level 3 | Private equity including strategic investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 206 | 4 | ||
Recurring fair value measurement | Level 3 | Asset-backed securities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Loans held for securitisation | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Structured notes | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 7,237 | 5,330 | ||
Recurring fair value measurement | Level 3 | Derivatives with monolines | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Other derivatives | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 3,421 | 4,187 | ||
Recurring fair value measurement | Level 3 | Other portfolios | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 651 | 135 | ||
Recurring fair value measurement | Level 3 | Trading liabilities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 857 | 162 | $ 105 | $ 53 |
Recurring fair value measurement | Level 3 | Trading liabilities | Private equity including strategic investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 206 | 4 | ||
Recurring fair value measurement | Level 3 | Trading liabilities | Asset-backed securities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Trading liabilities | Loans held for securitisation | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Trading liabilities | Structured notes | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 29 | ||
Recurring fair value measurement | Level 3 | Trading liabilities | Derivatives with monolines | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Trading liabilities | Other derivatives | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Trading liabilities | Other portfolios | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 651 | 129 | ||
Recurring fair value measurement | Level 3 | Designated at fair value | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 7,237 | 5,306 | 5,008 | 5,016 |
Recurring fair value measurement | Level 3 | Designated at fair value | Private equity including strategic investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Designated at fair value | Asset-backed securities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Designated at fair value | Loans held for securitisation | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Designated at fair value | Structured notes | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 7,237 | 5,301 | ||
Recurring fair value measurement | Level 3 | Designated at fair value | Derivatives with monolines | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Designated at fair value | Other derivatives | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Designated at fair value | Other portfolios | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 5 | ||
Recurring fair value measurement | Level 3 | Derivatives | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 3,421 | 4,188 | 3,725 | 2,302 |
Recurring fair value measurement | Level 3 | Derivatives | Private equity including strategic investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Derivatives | Asset-backed securities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Derivatives | Loans held for securitisation | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Derivatives | Structured notes | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Derivatives | Derivatives with monolines | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Derivatives | Other derivatives | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 3,421 | 4,187 | ||
Recurring fair value measurement | Level 3 | Derivatives | Other portfolios | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial liabilities | 0 | 1 | ||
Recurring fair value measurement | Level 3 | Private equity including strategic investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 13,129 | 11,905 | ||
Recurring fair value measurement | Level 3 | Asset-backed securities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 1,167 | 1,834 | ||
Recurring fair value measurement | Level 3 | Loans held for securitisation | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Structured notes | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Derivatives with monolines | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 52 | 68 | ||
Recurring fair value measurement | Level 3 | Other derivatives | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 2,625 | 2,602 | ||
Recurring fair value measurement | Level 3 | Other portfolios | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 4,444 | 3,891 | ||
Recurring fair value measurement | Level 3 | Financial investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 3,243 | 3,654 | 3,339 | 3,218 |
Recurring fair value measurement | Level 3 | Financial investments | Private equity including strategic investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 590 | 930 | ||
Recurring fair value measurement | Level 3 | Financial investments | Asset-backed securities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 900 | 1,286 | ||
Recurring fair value measurement | Level 3 | Financial investments | Loans held for securitisation | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Financial investments | Structured notes | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Financial investments | Derivatives with monolines | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Financial investments | Other derivatives | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Financial investments | Other portfolios | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 1,753 | 1,438 | ||
Recurring fair value measurement | Level 3 | Trading assets | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 2,509 | 2,499 | 3,865 | 4,979 |
Recurring fair value measurement | Level 3 | Trading assets | Private equity including strategic investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 55 | 4 | ||
Recurring fair value measurement | Level 3 | Trading assets | Asset-backed securities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 250 | 523 | ||
Recurring fair value measurement | Level 3 | Trading assets | Loans held for securitisation | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Trading assets | Structured notes | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Trading assets | Derivatives with monolines | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Trading assets | Other derivatives | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Trading assets | Other portfolios | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 2,204 | 1,972 | ||
Recurring fair value measurement | Level 3 | Designated and otherwise mandatorily measured at fair value through profit or loss | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 12,988 | 11,477 | 10,404 | 9,476 |
Recurring fair value measurement | Level 3 | Designated and otherwise mandatorily measured at fair value through profit or loss | Private equity including strategic investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 12,484 | 10,971 | ||
Recurring fair value measurement | Level 3 | Designated and otherwise mandatorily measured at fair value through profit or loss | Asset-backed securities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 17 | 25 | ||
Recurring fair value measurement | Level 3 | Designated and otherwise mandatorily measured at fair value through profit or loss | Loans held for securitisation | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Designated and otherwise mandatorily measured at fair value through profit or loss | Structured notes | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Designated and otherwise mandatorily measured at fair value through profit or loss | Derivatives with monolines | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Designated and otherwise mandatorily measured at fair value through profit or loss | Other derivatives | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Designated and otherwise mandatorily measured at fair value through profit or loss | Other portfolios | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 487 | 481 | ||
Recurring fair value measurement | Level 3 | Derivatives | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 2,677 | 2,670 | $ 3,855 | $ 2,136 |
Recurring fair value measurement | Level 3 | Derivatives | Private equity including strategic investments | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Derivatives | Asset-backed securities | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Derivatives | Loans held for securitisation | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Derivatives | Structured notes | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 0 | 0 | ||
Recurring fair value measurement | Level 3 | Derivatives | Derivatives with monolines | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 52 | 68 | ||
Recurring fair value measurement | Level 3 | Derivatives | Other derivatives | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | 2,625 | 2,602 | ||
Recurring fair value measurement | Level 3 | Derivatives | Other portfolios | ||||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||||
Financial assets | $ 0 | $ 0 |
Fair values of financial inst_9
Fair values of financial instruments carried at fair value - Movement in Level 3 financial instruments (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |
Reconciliation of changes in fair value measurement, assets [abstract] | |||
– financial investments: fair value gains | $ (1,392) | $ 293 | $ 2,654 |
Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Financial assets, beginning balance | 20,300 | ||
Financial assets, ending balance | 21,417 | 20,300 | |
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Financial liabilities, beginning balance | 9,656 | ||
Financial liabilities, ending balance | 11,515 | 9,656 | |
Trading liabilities | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Financial liabilities, beginning balance | 75,266 | ||
Financial liabilities, ending balance | 89,637 | 75,266 | |
Trading liabilities | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
– financial investments: fair value gains | 0 | 0 | 0 |
– exchange differences | (3) | 19 | (2) |
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Financial liabilities, beginning balance | 162 | 105 | 53 |
Total gains recognised in profit or loss | 15 | 307 | 0 |
Total gains/(losses) recognised in other comprehensive income (‘OCI’) | (3) | 19 | (2) |
– exchange differences | (3) | 19 | (2) |
Purchases | 482 | 3 | 63 |
New issuances | 24 | 4 | 2 |
Sales | 0 | (259) | (1) |
Settlements | (8) | (14) | (12) |
Transfers out | (1) | (4) | (5) |
Transfers in | 186 | 1 | 7 |
Financial liabilities, ending balance | 857 | 162 | 105 |
Unrealised gains/(losses) recognised in profit or loss relating to liabilities held | 2 | 1 | (3) |
Designated at fair value | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Financial liabilities, beginning balance | 157,439 | ||
Financial liabilities, ending balance | 151,686 | 157,439 | |
Designated at fair value | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
– financial investments: fair value gains | 0 | 0 | 0 |
– exchange differences | 2 | 282 | (78) |
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Financial liabilities, beginning balance | 5,306 | 5,008 | 5,016 |
Total gains recognised in profit or loss | (456) | 58 | (117) |
Total gains/(losses) recognised in other comprehensive income (‘OCI’) | 2 | 282 | (78) |
– exchange differences | 2 | 282 | (78) |
Purchases | 0 | 0 | 0 |
New issuances | 2,725 | 785 | 1,091 |
Sales | 0 | 0 | 0 |
Settlements | (896) | (678) | (853) |
Transfers out | (339) | (502) | (275) |
Transfers in | 895 | 353 | 224 |
Financial liabilities, ending balance | 7,237 | 5,306 | 5,008 |
Unrealised gains/(losses) recognised in profit or loss relating to liabilities held | 106 | (91) | 100 |
Derivatives | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Financial liabilities, beginning balance | 303,001 | ||
Financial liabilities, ending balance | 200,156 | 303,001 | |
Derivatives | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
– financial investments: fair value gains | 0 | 0 | 0 |
– exchange differences | 29 | 331 | (162) |
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Financial liabilities, beginning balance | 4,188 | 3,725 | 2,302 |
Total gains recognised in profit or loss | 466 | 1,293 | 2,105 |
Total gains/(losses) recognised in other comprehensive income (‘OCI’) | 29 | 331 | (162) |
– exchange differences | 29 | 331 | (162) |
Purchases | 0 | 0 | 0 |
New issuances | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Settlements | (1,537) | (1,155) | (307) |
Transfers out | (221) | (258) | (270) |
Transfers in | 496 | 252 | 57 |
Financial liabilities, ending balance | 3,421 | 4,188 | 3,725 |
Unrealised gains/(losses) recognised in profit or loss relating to liabilities held | (4) | (1,621) | 1,104 |
Financial investments | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Financial assets, beginning balance | 402,054 | ||
Financial assets, ending balance | 350,002 | 402,054 | |
Financial investments | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Financial assets, beginning balance | 402,054 | ||
Financial assets, ending balance | 350,002 | 402,054 | |
Financial investments | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Financial assets, beginning balance | 3,654 | 3,339 | 3,218 |
Total gains recognised in profit or loss | 2 | 30 | (13) |
Total gains/(losses) recognised in other comprehensive income (‘OCI’) | (391) | 423 | (29) |
– financial investments: fair value gains | (360) | 289 | (19) |
– exchange differences | (31) | 134 | (10) |
Purchases | 390 | 61 | 610 |
New issuances | 0 | 0 | 0 |
Sales | (214) | (403) | (271) |
Settlements | (177) | (129) | (401) |
Transfers out | (311) | (79) | (22) |
Transfers in | 290 | 412 | 247 |
Financial assets, ending balance | 3,243 | 3,654 | 3,339 |
Unrealised gains/(losses) recognised in profit or loss relating to assets held | 0 | 0 | 0 |
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
– exchange differences | (31) | 134 | (10) |
Trading assets | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Financial assets, beginning balance | 231,990 | ||
Financial assets, ending balance | 260,250 | 231,990 | |
Trading assets | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Financial assets, beginning balance | 2,499 | 3,865 | 4,979 |
Total gains recognised in profit or loss | (155) | 535 | (541) |
Total gains/(losses) recognised in other comprehensive income (‘OCI’) | 23 | 286 | (171) |
– financial investments: fair value gains | 0 | 0 | 0 |
– exchange differences | 23 | 286 | (171) |
Purchases | 1,094 | 488 | 199 |
New issuances | 0 | 0 | 0 |
Sales | (244) | (1,002) | (577) |
Settlements | (494) | (1,100) | (22) |
Transfers out | (512) | (993) | (797) |
Transfers in | 298 | 420 | 795 |
Financial assets, ending balance | 2,509 | 2,499 | 3,865 |
Unrealised gains/(losses) recognised in profit or loss relating to assets held | (99) | (32) | (7) |
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
– exchange differences | 23 | 286 | (171) |
Designated and otherwise mandatorily measured at fair value through profit or loss | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Financial assets, beginning balance | 45,553 | ||
Financial assets, ending balance | 49,120 | 45,553 | |
Designated and otherwise mandatorily measured at fair value through profit or loss | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Financial assets, beginning balance | 11,477 | 10,404 | 9,476 |
Total gains recognised in profit or loss | 1,038 | 610 | (106) |
Total gains/(losses) recognised in other comprehensive income (‘OCI’) | (114) | 290 | (4) |
– financial investments: fair value gains | 0 | 0 | 0 |
– exchange differences | (114) | 290 | (4) |
Purchases | 1,631 | 2,107 | 1,594 |
New issuances | 0 | 1 | 0 |
Sales | (499) | (1,618) | (424) |
Settlements | (436) | (265) | (170) |
Transfers out | (159) | (77) | (63) |
Transfers in | 50 | 25 | 101 |
Financial assets, ending balance | 12,988 | 11,477 | 10,404 |
Unrealised gains/(losses) recognised in profit or loss relating to assets held | 885 | 412 | (140) |
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
– exchange differences | (114) | 290 | (4) |
Derivatives | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Financial assets, beginning balance | 307,726 | ||
Financial assets, ending balance | 209,516 | 307,726 | |
Derivatives | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Financial assets, beginning balance | 2,670 | 3,855 | 2,136 |
Total gains recognised in profit or loss | 195 | 44 | 2,237 |
Total gains/(losses) recognised in other comprehensive income (‘OCI’) | 23 | 290 | (147) |
– financial investments: fair value gains | 0 | 0 | 0 |
– exchange differences | 23 | 290 | (147) |
Purchases | 0 | 0 | 0 |
New issuances | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Settlements | (359) | (1,280) | (262) |
Transfers out | (126) | (426) | (139) |
Transfers in | 274 | 187 | 30 |
Financial assets, ending balance | 2,677 | 2,670 | 3,855 |
Unrealised gains/(losses) recognised in profit or loss relating to assets held | 175 | 707 | 529 |
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
– exchange differences | 23 | 290 | (147) |
– net income/(losses) from financial instruments held for trading or managed on a fair value basis | Trading liabilities | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Total gains recognised in profit or loss | 15 | 307 | 0 |
Unrealised gains/(losses) recognised in profit or loss relating to liabilities held | 2 | 1 | (3) |
– net income/(losses) from financial instruments held for trading or managed on a fair value basis | Designated at fair value | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Total gains recognised in profit or loss | 0 | 0 | 0 |
Unrealised gains/(losses) recognised in profit or loss relating to liabilities held | 0 | 0 | 0 |
– net income/(losses) from financial instruments held for trading or managed on a fair value basis | Derivatives | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Total gains recognised in profit or loss | 466 | 1,293 | 2,105 |
Unrealised gains/(losses) recognised in profit or loss relating to liabilities held | (4) | (1,621) | 1,104 |
– net income/(losses) from financial instruments held for trading or managed on a fair value basis | Financial investments | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Total gains recognised in profit or loss | 0 | 0 | 0 |
Unrealised gains/(losses) recognised in profit or loss relating to assets held | 0 | 0 | 0 |
– net income/(losses) from financial instruments held for trading or managed on a fair value basis | Trading assets | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Total gains recognised in profit or loss | (155) | 535 | (541) |
Unrealised gains/(losses) recognised in profit or loss relating to assets held | (99) | (32) | (7) |
– net income/(losses) from financial instruments held for trading or managed on a fair value basis | Designated and otherwise mandatorily measured at fair value through profit or loss | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Total gains recognised in profit or loss | 0 | 0 | 0 |
Unrealised gains/(losses) recognised in profit or loss relating to assets held | 0 | 0 | 0 |
– net income/(losses) from financial instruments held for trading or managed on a fair value basis | Derivatives | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Total gains recognised in profit or loss | 195 | 44 | 2,237 |
Unrealised gains/(losses) recognised in profit or loss relating to assets held | 175 | 707 | 529 |
– changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | Trading liabilities | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Total gains recognised in profit or loss | 0 | 0 | 0 |
Unrealised gains/(losses) recognised in profit or loss relating to liabilities held | 0 | 0 | 0 |
– changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | Designated at fair value | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Total gains recognised in profit or loss | (456) | 58 | (117) |
Unrealised gains/(losses) recognised in profit or loss relating to liabilities held | 106 | (91) | 100 |
– changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | Derivatives | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Total gains recognised in profit or loss | 0 | 0 | 0 |
Unrealised gains/(losses) recognised in profit or loss relating to liabilities held | 0 | 0 | 0 |
– changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | Financial investments | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Total gains recognised in profit or loss | 0 | 0 | 0 |
Unrealised gains/(losses) recognised in profit or loss relating to assets held | 0 | 0 | 0 |
– changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | Trading assets | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Total gains recognised in profit or loss | 0 | 0 | 0 |
Unrealised gains/(losses) recognised in profit or loss relating to assets held | 0 | 0 | 0 |
– changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | Designated and otherwise mandatorily measured at fair value through profit or loss | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Total gains recognised in profit or loss | 1,038 | 610 | (106) |
Unrealised gains/(losses) recognised in profit or loss relating to assets held | 885 | 412 | (140) |
– changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss | Derivatives | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Total gains recognised in profit or loss | 0 | 0 | 0 |
Unrealised gains/(losses) recognised in profit or loss relating to assets held | 0 | 0 | 0 |
– gains less losses from financial investments held at fair value through other comprehensive income | Trading liabilities | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Total gains recognised in profit or loss | 0 | 0 | 0 |
– gains less losses from financial investments held at fair value through other comprehensive income | Designated at fair value | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Total gains recognised in profit or loss | 0 | 0 | 0 |
– gains less losses from financial investments held at fair value through other comprehensive income | Derivatives | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, liabilities [abstract] | |||
Total gains recognised in profit or loss | 0 | 0 | 0 |
– gains less losses from financial investments held at fair value through other comprehensive income | Financial investments | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Total gains recognised in profit or loss | 2 | 30 | (13) |
– gains less losses from financial investments held at fair value through other comprehensive income | Trading assets | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Total gains recognised in profit or loss | 0 | 0 | 0 |
– gains less losses from financial investments held at fair value through other comprehensive income | Designated and otherwise mandatorily measured at fair value through profit or loss | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Total gains recognised in profit or loss | 0 | 0 | 0 |
– gains less losses from financial investments held at fair value through other comprehensive income | Derivatives | Level 3 | Recurring fair value measurement | |||
Reconciliation of changes in fair value measurement, assets [abstract] | |||
Total gains recognised in profit or loss | $ 0 | $ 0 | $ 0 |
Fair values of financial ins_10
Fair values of financial instruments carried at fair value - Sensitivity of Level 3 fair values to reasonably possible alternative assumptions (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021USD ($)category | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Favourable changes reflected in profit or loss | $ 998 | $ 908 | $ 924 |
Unfavourable changes reflected in profit or loss | (1,014) | (922) | (921) |
Favourable changes recognized in OCI | 105 | 110 | 101 |
Unfavourable changes recognized in OCI | $ (104) | (110) | (104) |
Number of financial instrument categories | category | 1 | ||
Confidence level | 95.00% | ||
Derivatives, trading assets and trading liabilities | Derivatives, trading liabilities | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Favourable changes reflected in profit or loss | $ 179 | 229 | 271 |
Unfavourable changes reflected in profit or loss | (197) | (244) | (268) |
Favourable changes recognized in OCI | 0 | 0 | 0 |
Unfavourable changes recognized in OCI | 0 | 0 | 0 |
Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | Financial liabilities designated at fair value | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Favourable changes reflected in profit or loss | 795 | 644 | 625 |
Unfavourable changes reflected in profit or loss | (793) | (643) | (625) |
Favourable changes recognized in OCI | 0 | 0 | 0 |
Unfavourable changes recognized in OCI | 0 | 0 | 0 |
Financial investments | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Favourable changes reflected in profit or loss | 24 | 35 | 28 |
Unfavourable changes reflected in profit or loss | (24) | (35) | (28) |
Favourable changes recognized in OCI | 105 | 110 | 101 |
Unfavourable changes recognized in OCI | $ (104) | $ (110) | $ (104) |
Fair values of financial ins_11
Fair values of financial instruments carried at fair value - Quantitative information about significant unobservable inputs in Level 3 valuations (Details) - Recurring fair value measurement $ in Millions | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Level 3 | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | $ 21,417 | $ 20,300 |
Financial liabilities | 11,515 | 9,656 |
Level 3 | Private equity including strategic investments | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 206 | |
Level 3 | Structured notes | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 7,237 | 5,330 |
Level 3 | – equity-linked notes | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 6,067 | |
Level 3 | – FX-linked notes | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 634 | |
Level 3 | – other | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 536 | |
Level 3 | Other derivatives | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 3,421 | 4,187 |
Level 3 | Other portfolios | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 651 | 135 |
Level 3 | – other | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 51 | |
Level 3 | Private equity including strategic investments | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 13,129 | 11,905 |
Level 3 | Asset-backed securities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 1,167 | 1,834 |
Level 3 | – CLO/CDO | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 80 | |
Level 3 | – other ABSs | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 1,087 | |
Level 3 | Derivatives with monolines | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 52 | $ 68 |
Level 3 | Other derivatives | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 2,625 | |
Level 3 | long-dated single stock options | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 4,444 | |
Level 3 | – repurchase agreements | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 707 | |
Financial liabilities | 600 | |
Level 3 | – other | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 3,737 | |
Level 3 | Interest rate | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 1,199 | |
Financial liabilities | 999 | |
Level 3 | Interest rate | securitisation swaps | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 462 | |
Level 3 | Interest rate | long-dated swaptions | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 312 | |
Level 3 | Interest rate | other | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 225 | |
Level 3 | Interest rate | securitisation swaps | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 335 | |
Level 3 | Interest rate | long-dated swaptions | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 436 | |
Level 3 | Interest rate | other | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 428 | |
Level 3 | Foreign exchange | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 471 | |
Financial liabilities | 499 | |
Level 3 | Foreign exchange | other | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 184 | |
Level 3 | Foreign exchange | FX options | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 315 | |
Level 3 | Foreign exchange | other | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 213 | |
Level 3 | Foreign exchange | FX options | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 258 | |
Level 3 | Equities | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 885 | |
Financial liabilities | 1,813 | |
Level 3 | Equities | other | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 1,150 | |
Level 3 | Equities | long-dated single stock options | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 663 | |
Level 3 | Equities | other | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 420 | |
Level 3 | Equities | long-dated single stock options | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 465 | |
Level 3 | Credit | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 70 | |
Financial liabilities | 110 | |
Level 3 | Credit | other | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 110 | |
Level 3 | Credit | other | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | $ 70 | |
Prepayment rate | Minimum | Interest rate | securitisation swaps | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, liabilities, percentage | 0.06 | |
Prepayment rate | Maximum | Interest rate | securitisation swaps | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, liabilities, percentage | 0.06 | |
Prepayment rate | Market proxy | Minimum | – CLO/CDO | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 0 | 0 |
Prepayment rate | Market proxy | Maximum | – CLO/CDO | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 0 | 0.09 |
Prepayment rate | Model – Discounted cash flow | Minimum | Interest rate | securitisation swaps | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 0.05 | 0.06 |
Prepayment rate | Model – Discounted cash flow | Maximum | Interest rate | securitisation swaps | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 0.10 | 0.06 |
Bid quotes | Market proxy | Minimum | – CLO/CDO | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 0 | 0 |
Bid quotes | Market proxy | Minimum | – other ABSs | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 0 | 0 |
Bid quotes | Market proxy | Maximum | – CLO/CDO | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 100 | 100 |
Bid quotes | Market proxy | Maximum | – other ABSs | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 172 | 101 |
Equity volatility | Minimum | Equities | long-dated single stock options | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, liabilities, percentage | 0 | |
Equity volatility | Maximum | Equities | long-dated single stock options | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, liabilities, percentage | 1.20 | |
Equity volatility | Model – Option model | Minimum | – equity-linked notes | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, liabilities, percentage | 0.05 | 0.06 |
Equity volatility | Model – Option model | Minimum | Equities | long-dated single stock options | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 0.02 | 0 |
Equity volatility | Model – Option model | Maximum | – equity-linked notes | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, liabilities, percentage | 1.24 | 1.15 |
Equity volatility | Model – Option model | Maximum | Equities | long-dated single stock options | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 1 | 1.20 |
Equity correlation | Model – Option model | Minimum | – equity-linked notes two | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, liabilities, percentage | 0.07 | (0.04) |
Equity correlation | Model – Option model | Maximum | – equity-linked notes two | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, liabilities, percentage | 0.98 | 0.88 |
FX volatility | Minimum | Foreign exchange | FX options | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, liabilities, percentage | 0 | |
FX volatility | Maximum | Foreign exchange | FX options | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, liabilities, percentage | 0.43 | |
FX volatility | Model – Option model | Minimum | – FX-linked notes | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, liabilities, percentage | 0.03 | 0 |
FX volatility | Model – Option model | Minimum | Foreign exchange | FX options | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 0.01 | 0 |
FX volatility | Model – Option model | Maximum | – FX-linked notes | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, liabilities, percentage | 0.36 | 0.36 |
FX volatility | Model – Option model | Maximum | Foreign exchange | FX options | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 0.36 | 0.43 |
Credit spread | Model – Discounted cash flow | Minimum | Derivatives with monolines | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 0.02 | 0.02 |
Credit spread | Model – Discounted cash flow | Maximum | Derivatives with monolines | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 0.02 | 0.02 |
IR volatility | Minimum | Interest rate | long-dated swaptions | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, liabilities, percentage | 0.06 | |
IR volatility | Maximum | Interest rate | long-dated swaptions | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, liabilities, percentage | 0.28 | |
IR volatility | Model – Option model | Minimum | Interest rate | long-dated swaptions | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 0.06 | 0.06 |
IR volatility | Model – Option model | Maximum | Interest rate | long-dated swaptions | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 0.25 | 0.28 |
IR volatility | Model – Discounted cash flow | Minimum | – repurchase agreements | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 0 | 0 |
IR volatility | Model – Discounted cash flow | Maximum | – repurchase agreements | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Significant unobservable input, assets, percentage | 0.05 | 0.05 |
Fair values of financial ins_12
Fair values of financial instruments not carried at fair value - Fair value of financial instruments not carried at fair value and bases of valuation (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Deposits by banks | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | $ 100,448 | $ 82,080 |
Deposits by banks | Fair value | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 100,412 | 81,996 |
Customer accounts | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 1,669,091 | 1,642,780 |
Customer accounts | Fair value | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 1,669,483 | 1,643,131 |
Repurchase agreements – non-trading | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 112,798 | 111,901 |
Repurchase agreements – non-trading | Fair value | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 112,797 | 111,901 |
Debt securities in issue | At cost | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 84,218 | 95,492 |
Debt securities in issue | Fair value | At cost | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 85,416 | 97,028 |
Subordinated liabilities | At cost | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 20,774 | 21,951 |
Subordinated liabilities | Fair value | At cost | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial liabilities | 26,966 | 28,552 |
Loans and advances to banks | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 86,886 | 81,616 |
Loans and advances to banks | Fair value | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 87,029 | 81,796 |
Loans and advances to customers | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 1,059,511 | 1,037,987 |
Loans and advances to customers | Fair value | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 1,058,406 | 1,035,461 |
Repurchase agreements – non-trading | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 201,714 | 230,628 |
Repurchase agreements – non-trading | Fair value | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 201,694 | 230,602 |
Financial investments – at amortised cost | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | 84,574 | 88,639 |
Financial investments – at amortised cost | Fair value | ||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | ||
Financial assets | $ 90,065 | $ 96,801 |
Derivatives - Notional contract
Derivatives - Notional contract amounts and fair value of derivatives by product contract type held by HSBC (Details) number in Millions, $ in Millions | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Disclosure of detailed information about hedging instruments [line items] | ||
Notional contract amount of trading instruments | $ 23,732,022 | $ 23,889,261 |
Notional contract amount of hedging instruments | 161,862 | 192,457 |
Fair value of trading assets | $ 264,983 | $ 374,606 |
Fair value of hedging assets | 2,584 | 2,223 |
Gross total fair values of derivative assets | 267,567 | 376,829 |
Fair value of derivative assets | 209,516 | 307,726 |
Fair value of trading liabilities | 256,223 | 368,035 |
Fair value of hedging liabilities | 1,984 | 4,069 |
Gross total fair values of derivative liabilities | 258,207 | 372,104 |
Fair value of derivative liabilities | 200,156 | 303,001 |
Derivatives | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Amounts offset on derivative liabilities | (58,051) | (69,103) |
Derivatives | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Amounts offset on derivative assets | (58,051) | (69,103) |
Foreign exchange | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional contract amount of trading instruments | $ 7,610,890 | $ 7,606,446 |
Notional contract amount of hedging instruments | 32,493 | 35,021 |
Fair value of trading assets | $ 71,412 | $ 106,696 |
Fair value of hedging assets | 861 | 309 |
Gross total fair values of derivative assets | 72,273 | 107,005 |
Fair value of trading liabilities | 68,509 | 108,903 |
Fair value of hedging liabilities | 624 | 1,182 |
Gross total fair values of derivative liabilities | 69,133 | 110,085 |
Interest rate | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional contract amount of trading instruments | $ 15,063,325 | $ 15,240,867 |
Notional contract amount of hedging instruments | 129,369 | 157,436 |
Fair value of trading assets | $ 175,722 | $ 249,204 |
Fair value of hedging assets | 1,723 | 1,914 |
Gross total fair values of derivative assets | 177,445 | 251,118 |
Fair value of trading liabilities | 167,385 | 236,594 |
Fair value of hedging liabilities | 1,360 | 2,887 |
Gross total fair values of derivative liabilities | 168,745 | 239,481 |
Equities | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional contract amount of trading instruments | $ 742,764 | $ 652,288 |
Notional contract amount of hedging instruments | 0 | 0 |
Fair value of trading assets | $ 13,835 | $ 14,043 |
Fair value of hedging assets | 0 | 0 |
Gross total fair values of derivative assets | 13,835 | 14,043 |
Fair value of trading liabilities | 15,414 | 15,766 |
Fair value of hedging liabilities | 0 | 0 |
Gross total fair values of derivative liabilities | 15,414 | 15,766 |
Credit | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional contract amount of trading instruments | $ 218,085 | $ 269,401 |
Notional contract amount of hedging instruments | 0 | 0 |
Fair value of trading assets | $ 2,259 | $ 2,590 |
Fair value of hedging assets | 0 | 0 |
Gross total fair values of derivative assets | 2,259 | 2,590 |
Fair value of trading liabilities | 3,083 | 3,682 |
Fair value of hedging liabilities | 0 | 0 |
Gross total fair values of derivative liabilities | 3,083 | 3,682 |
Commodity and other | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Notional contract amount of trading instruments | $ 96,958 | $ 120,259 |
Notional contract amount of hedging instruments | 0 | 0 |
Fair value of trading assets | $ 1,755 | $ 2,073 |
Fair value of hedging assets | 0 | 0 |
Gross total fair values of derivative assets | 1,755 | 2,073 |
Fair value of trading liabilities | 1,832 | 3,090 |
Fair value of hedging liabilities | 0 | 0 |
Gross total fair values of derivative liabilities | $ 1,832 | $ 3,090 |
Derivatives - Unamortised balan
Derivatives - Unamortised balance of derivatives valued using models with significant unobservable inputs (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |
Reconciliation of aggregate difference between fair value at initial recognition and transaction price yet to be recognised in profit or loss [abstract] | |||
Unamortised balance at beginning of period | $ 104 | $ 89 | $ 73 |
Deferral on new transactions | 187 | 126 | 106 |
Recognised in the income statement during the period | (172) | (118) | (87) |
– amortisation | (89) | (65) | (51) |
– subsequent to unobservable inputs becoming observable | (3) | (3) | (1) |
– maturity, termination or offsetting derivative | (80) | (50) | (35) |
Exchange differences | 1 | 7 | (3) |
Unamortised balance at end of period | $ 120 | $ 104 | $ 89 |
Derivatives - Notional contra_2
Derivatives - Notional contract amounts of derivatives held for hedging purposes by product type (Details) number in Millions, $ in Millions | Jun. 30, 2021USD ($) | Jun. 30, 2021 | Dec. 31, 2020USD ($) | Dec. 31, 2020 |
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 161,862 | 192,457 | ||
Cash flow hedges | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 53,162 | 60,369 | ||
Fair value hedges | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 97,883 | 121,588 | ||
Hedges of net investment in foreign operations | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 10,817 | 10,500 | ||
Foreign exchange | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 32,493 | 35,021 | ||
Foreign exchange | Cash flow hedges | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 21,672 | 24,506 | ||
Foreign exchange | Fair value hedges | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 4 | 15 | ||
Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 129,369 | 129,369 | 157,436 | 157,436 |
Interest rate | Cash flow hedges | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 31,490 | 31,490 | 35,863 | 35,863 |
Interest rate | Fair value hedges | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 97,879 | 97,879 | 121,573 | 121,573 |
Derivatives - Hedging instrumen
Derivatives - Hedging instrument impacted by Ibor reform (Details) number in Millions, $ in Millions | Jun. 30, 2021USD ($) | Jun. 30, 2021 | Dec. 31, 2020USD ($) | Dec. 31, 2020 |
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 161,862 | 192,457 | ||
Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 129,369 | 129,369 | 157,436 | 157,436 |
Fair value hedges | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 97,883 | 121,588 | ||
Fair value hedges | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 97,879 | 97,879 | 121,573 | 121,573 |
Cash flow hedges | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 53,162 | 60,369 | ||
Cash flow hedges | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 31,490 | 31,490 | 35,863 | 35,863 |
Impacted by Ibor reform | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 61,783 | 90,783 | ||
Impacted by Ibor reform | Fair value hedges | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 42,461 | 64,415 | ||
Impacted by Ibor reform | Cash flow hedges | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 19,322 | 26,368 | ||
Not impacted by Ibor reform | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 67,586 | 66,653 | ||
Not impacted by Ibor reform | Fair value hedges | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 55,418 | 57,158 | ||
Not impacted by Ibor reform | Cash flow hedges | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 12,168 | 9,495 | ||
€ | Impacted by Ibor reform | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 18,277 | 26,136 | ||
€ | Impacted by Ibor reform | Fair value hedges | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 9,615 | 17,792 | ||
€ | Impacted by Ibor reform | Fair value hedges | Interest rate | Euribor | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 8,793 | 6,000 | ||
€ | Impacted by Ibor reform | Cash flow hedges | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 8,662 | 8,344 | ||
€ | Impacted by Ibor reform | Cash flow hedges | Interest rate | Euribor | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 8,662 | 8,344 | ||
£ | Impacted by Ibor reform | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 1,140 | 6,228 | ||
£ | Impacted by Ibor reform | Fair value hedges | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 311 | 3,706 | ||
£ | Impacted by Ibor reform | Cash flow hedges | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 829 | 2,522 | ||
$ | Impacted by Ibor reform | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 29,712 | 41,494 | ||
$ | Impacted by Ibor reform | Fair value hedges | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 25,511 | 32,789 | ||
$ | Impacted by Ibor reform | Cash flow hedges | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 4,201 | 8,705 | ||
Other | Impacted by Ibor reform | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 12,654 | 16,925 | ||
Other | Impacted by Ibor reform | Fair value hedges | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 7,024 | 10,128 | ||
Other | Impacted by Ibor reform | Cash flow hedges | Interest rate | ||||
Disclosure of detailed information about hedging instruments [line items] | ||||
Notional | 5,630 | 6,797 |
Financial investments - Carryin
Financial investments - Carrying amount of financial investments (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Financial investments measured at fair value through other comprehensive income | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 350,002 | $ 402,054 |
Financial investments measured at fair value through other comprehensive income | – treasury and other eligible bills | ||
Disclosure of financial assets [line items] | ||
Financial assets | 101,297 | 118,163 |
Financial investments measured at fair value through other comprehensive income | – debt securities | ||
Disclosure of financial assets [line items] | ||
Financial assets | 246,728 | 281,467 |
Financial investments measured at fair value through other comprehensive income | – equity securities | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,895 | 2,337 |
Financial investments measured at fair value through other comprehensive income | – other instruments | ||
Disclosure of financial assets [line items] | ||
Financial assets | 82 | 87 |
Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 84,574 | 88,639 |
Debt instruments measured at amortised cost | – treasury and other eligible bills | ||
Disclosure of financial assets [line items] | ||
Financial assets | 8,085 | 11,757 |
Debt instruments measured at amortised cost | – debt securities | ||
Disclosure of financial assets [line items] | ||
Financial assets | 76,489 | 76,882 |
Financial investments | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 434,576 | $ 490,693 |
Interests in associates and j_3
Interests in associates and joint ventures - Associates and Joint Ventures Commentary (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Disclosure of associates [line items] | ||
Interests in associates and joint ventures | $ 26,684,000,000 | |
Bank of Communications Co., Limited | ||
Disclosure of associates [line items] | ||
Investment's fair value below carrying amount, period | 9 years | |
Impairment loss | $ 0 |
Interests in associates and j_4
Interests in associates and joint ventures - Principal associates of HSBC (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Bank of Communications Co., Limited | ||
Disclosure of associates [line items] | ||
Carrying amount | $ 22,857 | $ 21,248 |
Fair value | 9,484 | 7,457 |
The Saudi British Bank | ||
Disclosure of associates [line items] | ||
Carrying amount | 4,405 | 4,215 |
Fair value | $ 5,350 | $ 4,197 |
Interests in associates and j_5
Interests in associates and joint ventures - Impairment testing (Details) - BoCom - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Disclosure of associates [line items] | ||
VIU | $ 23,600 | $ 21,800 |
Carrying value | 22,857 | 21,248 |
Fair value | $ 9,484 | $ 7,457 |
Interests in associates and j_6
Interests in associates and joint ventures - Key assumptions in value in use calculation (Details) - Bank of Communications Co., Limited | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Disclosure of associates [line items] | ||
Long-term profit growth rate | 3.00% | 3.00% |
Long-term asset growth rate | 3.00% | 3.00% |
Discount rate | 10.59% | 11.37% |
Expected credit losses as a percentage of customer advances in the long term | 0.88% | 0.88% |
Cost-income ratio | 36.10% | |
Effective tax rate in the long-term | 16.80% | 16.80% |
Capital adequacy ratio | 12.50% | 11.50% |
Tier 1 capital adequacy ratio | 9.50% | 9.50% |
Long-term profit growth rate | ||
Disclosure of associates [line items] | ||
Changes to key assumption to reduce headroom to nil | 0.22% | |
Long-term asset growth rate | ||
Disclosure of associates [line items] | ||
Changes to key assumption to reduce headroom to nil | (0.19%) | |
Discount rate | ||
Disclosure of associates [line items] | ||
Changes to key assumption to reduce headroom to nil | (0.27%) | |
Expected credit losses as a percentage of customer advances | ||
Disclosure of associates [line items] | ||
Changes to key assumption to reduce headroom to nil | (0.03%) | |
Risk-weighted assets as a percentage of total assets | ||
Disclosure of associates [line items] | ||
Changes to key assumption to reduce headroom to nil | (1.45%) | |
Operating income growth rate | ||
Disclosure of associates [line items] | ||
Changes to key assumption to reduce headroom to nil | 0.39% | |
Cost-income ratio | ||
Disclosure of associates [line items] | ||
Changes to key assumption to reduce headroom to nil | (0.87%) | |
Long-term effective tax rate | ||
Disclosure of associates [line items] | ||
Changes to key assumption to reduce headroom to nil | (2.28%) | |
Capital requirements – capital adequacy ratio | ||
Disclosure of associates [line items] | ||
Changes to key assumption to reduce headroom to nil | (0.30%) | |
Capital requirements – tier 1 capital adequacy ratio | ||
Disclosure of associates [line items] | ||
Changes to key assumption to reduce headroom to nil | (1.99%) | |
Minimum | ||
Disclosure of associates [line items] | ||
Discount rate | 9.50% | 10.30% |
Expected credit losses as a percentage of customer advances in the short to medium term | 0.98% | 0.98% |
Risk-weighted assets as a percentage of total assets | 61.00% | 61.00% |
Operating Income Ratio | 4.40% | 3.50% |
Cost-income ratio | 36.30% | |
Effective tax rate in the short to medium-term | 10.00% | 7.80% |
Maximum | ||
Disclosure of associates [line items] | ||
Discount rate | 15.00% | 15.00% |
Expected credit losses as a percentage of customer advances in the short to medium term | 1.10% | 1.22% |
Risk-weighted assets as a percentage of total assets | 62.00% | 62.00% |
Operating Income Ratio | 6.30% | 6.70% |
Cost-income ratio | 36.80% | |
Effective tax rate in the short to medium-term | 14.30% | 16.50% |
Risk-weighted assets as a percentage of total assets | ||
Disclosure of associates [line items] | ||
Risk-weighted assets as a percentage of total assets | 61.00% | 61.00% |
Interests in associates and j_7
Interests in associates and joint ventures - Sensitivity of VIU (Details) - USD ($) $ in Millions | May 31, 2019 | Jun. 30, 2019 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Bank of Communications Co., Limited | |||||
Disclosure of associates [line items] | |||||
Fair value of investments in associates for which there are quoted market prices | $ 9,484 | $ 7,457 | |||
Carrying amount | 22,857 | 21,248 | |||
Bank of Communications Co., Limited | Minimum | |||||
Disclosure of associates [line items] | |||||
Value in use of investments in associates after reasonably possible changes in key assumptions | 19,600 | 18,200 | |||
Bank of Communications Co., Limited | Maximum | |||||
Disclosure of associates [line items] | |||||
Value in use of investments in associates after reasonably possible changes in key assumptions | $ 25,900 | $ 24,200 | |||
Bank of Communications Co., Limited | Long-term profit growth rate | |||||
Disclosure of associates [line items] | |||||
Change in bps due to reasonably possible favourable changes in key assumptions | (0.50%) | (0.50%) | |||
Change in VIU due to reasonably possible favourable changes in key assumptions | $ 1,900 | $ 1,400 | |||
VIU after reasonably possible favourable changes in key assumptions | $ 25,500 | $ 23,200 | |||
Change in bps due to reasonably possible unfavourable changes in key assumptions | 0.00% | 0.00% | |||
Change in VIU due to reasonably possible unfavourable changes in key assumptions | $ 0 | $ 0 | |||
VIU after reasonably possible unfavourable changes in key assumptions | $ 23,600 | $ 21,800 | |||
Bank of Communications Co., Limited | Long-term asset growth rate | |||||
Disclosure of associates [line items] | |||||
Change in bps due to reasonably possible favourable changes in key assumptions | 0.00% | 0.00% | |||
Change in VIU due to reasonably possible favourable changes in key assumptions | $ 0 | $ 0 | |||
VIU after reasonably possible favourable changes in key assumptions | $ 23,600 | $ 21,800 | |||
Change in bps due to reasonably possible unfavourable changes in key assumptions | (0.50%) | (0.50%) | |||
Change in VIU due to reasonably possible unfavourable changes in key assumptions | $ (1,700) | $ (1,300) | |||
VIU after reasonably possible unfavourable changes in key assumptions | $ 21,900 | $ 20,500 | |||
Bank of Communications Co., Limited | Discount rate | |||||
Disclosure of associates [line items] | |||||
Change in bps due to reasonably possible favourable changes in key assumptions | (1.09%) | ||||
Change in VIU due to reasonably possible favourable changes in key assumptions | $ 3,800 | $ 1,200 | |||
VIU after reasonably possible favourable changes in key assumptions | $ 27,400 | $ 23,000 | |||
Change in bps due to reasonably possible unfavourable changes in key assumptions | 0.31% | 0.53% | |||
Change in VIU due to reasonably possible unfavourable changes in key assumptions | $ (800) | $ (1,200) | |||
VIU after reasonably possible unfavourable changes in key assumptions | 22,800 | 20,600 | |||
Bank of Communications Co., Limited | Expected credit losses as a percentage of customer advances | |||||
Disclosure of associates [line items] | |||||
Change in VIU due to reasonably possible favourable changes in key assumptions | 1,900 | 2,300 | |||
VIU after reasonably possible favourable changes in key assumptions | 25,500 | 24,100 | |||
Change in VIU due to reasonably possible unfavourable changes in key assumptions | (3,000) | (2,100) | |||
VIU after reasonably possible unfavourable changes in key assumptions | $ 20,600 | $ 19,700 | |||
Bank of Communications Co., Limited | Expected credit losses as a percentage of customer advances | Not later than four years | |||||
Disclosure of associates [line items] | |||||
Change in bps due to reasonably possible favourable changes in key assumptions | 0.99% | 0.96% | |||
Change in bps due to reasonably possible unfavourable changes in key assumptions | 1.12% | 1.22% | |||
Bank of Communications Co., Limited | Expected credit losses as a percentage of customer advances | After four years | |||||
Disclosure of associates [line items] | |||||
Change in bps due to reasonably possible favourable changes in key assumptions | 0.79% | 0.76% | |||
Change in bps due to reasonably possible unfavourable changes in key assumptions | 1.02% | 0.95% | |||
Bank of Communications Co., Limited | Risk-weighted assets as a percentage of total assets | |||||
Disclosure of associates [line items] | |||||
Change in bps due to reasonably possible favourable changes in key assumptions | (0.81%) | (0.40%) | |||
Change in VIU due to reasonably possible favourable changes in key assumptions | $ 300 | $ 100 | |||
VIU after reasonably possible favourable changes in key assumptions | $ 23,900 | $ 21,900 | |||
Change in bps due to reasonably possible unfavourable changes in key assumptions | 0.87% | 1.66% | |||
Change in VIU due to reasonably possible unfavourable changes in key assumptions | $ (600) | $ (800) | |||
VIU after reasonably possible unfavourable changes in key assumptions | $ 23,000 | $ 21,000 | |||
Bank of Communications Co., Limited | Operating income growth rate | |||||
Disclosure of associates [line items] | |||||
Change in bps due to reasonably possible favourable changes in key assumptions | 0.16% | 0.02% | |||
Change in VIU due to reasonably possible favourable changes in key assumptions | $ 400 | $ 200 | |||
VIU after reasonably possible favourable changes in key assumptions | $ 24,000 | $ 22,000 | |||
Change in bps due to reasonably possible unfavourable changes in key assumptions | (0.46%) | (0.69%) | |||
Change in VIU due to reasonably possible unfavourable changes in key assumptions | $ (900) | $ (1,500) | |||
VIU after reasonably possible unfavourable changes in key assumptions | $ 22,700 | $ 20,300 | |||
Bank of Communications Co., Limited | Cost-income ratio | |||||
Disclosure of associates [line items] | |||||
Change in bps due to reasonably possible favourable changes in key assumptions | (1.68%) | (1.49%) | |||
Change in VIU due to reasonably possible favourable changes in key assumptions | $ 1,700 | $ 1,300 | |||
VIU after reasonably possible favourable changes in key assumptions | $ 25,300 | $ 23,100 | |||
Change in bps due to reasonably possible unfavourable changes in key assumptions | 2.87% | 1.20% | |||
Change in VIU due to reasonably possible unfavourable changes in key assumptions | $ (2,600) | $ (1,200) | |||
VIU after reasonably possible unfavourable changes in key assumptions | $ 21,000 | $ 20,600 | |||
Bank of Communications Co., Limited | Long-term effective tax rate | |||||
Disclosure of associates [line items] | |||||
Change in bps due to reasonably possible favourable changes in key assumptions | (1.80%) | (3.16%) | |||
Change in VIU due to reasonably possible favourable changes in key assumptions | $ 600 | $ 900 | |||
VIU after reasonably possible favourable changes in key assumptions | $ 24,200 | $ 22,700 | |||
Change in bps due to reasonably possible unfavourable changes in key assumptions | 8.20% | 8.20% | |||
Change in VIU due to reasonably possible unfavourable changes in key assumptions | $ (2,700) | $ (2,200) | |||
VIU after reasonably possible unfavourable changes in key assumptions | $ 20,900 | $ 19,600 | |||
Bank of Communications Co., Limited | Capital requirements – capital adequacy ratio | |||||
Disclosure of associates [line items] | |||||
Change in bps due to reasonably possible favourable changes in key assumptions | 0.00% | 0.00% | |||
Change in VIU due to reasonably possible favourable changes in key assumptions | $ 0 | $ 0 | |||
VIU after reasonably possible favourable changes in key assumptions | $ 23,600 | $ 21,800 | |||
Change in bps due to reasonably possible unfavourable changes in key assumptions | 2.54% | 2.97% | |||
Change in VIU due to reasonably possible unfavourable changes in key assumptions | $ (7,400) | $ (7,800) | |||
VIU after reasonably possible unfavourable changes in key assumptions | $ 16,200 | $ 14,000 | |||
Bank of Communications Co., Limited | Capital requirements – tier 1 capital adequacy ratio | |||||
Disclosure of associates [line items] | |||||
Change in bps due to reasonably possible favourable changes in key assumptions | 0.00% | 0.00% | |||
Change in VIU due to reasonably possible favourable changes in key assumptions | $ 0 | $ 0 | |||
VIU after reasonably possible favourable changes in key assumptions | $ 23,600 | $ 21,800 | |||
Change in bps due to reasonably possible unfavourable changes in key assumptions | 3.32% | 2.63% | |||
Change in VIU due to reasonably possible unfavourable changes in key assumptions | $ (4,800) | $ (5,300) | |||
VIU after reasonably possible unfavourable changes in key assumptions | $ 18,800 | 16,500 | |||
The Saudi British Bank | |||||
Disclosure of associates [line items] | |||||
Proportion of ownership interest in associate | 40.00% | 29.20% | 31.00% | ||
Fair value of investments in associates for which there are quoted market prices | $ 5,350 | 4,197 | |||
Carrying amount | $ 4,405 | $ 4,215 |
Provisions - Rollforward of pro
Provisions - Rollforward of provisions (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Reconciliation of changes in other provisions [abstract] | |
Other provisions, beginning balance | $ 3,678 |
Other provisions, ending balance | 2,814 |
Provisions (excluding contractual commitments) | |
Reconciliation of changes in other provisions [abstract] | |
Other provisions, beginning balance | 2,590 |
Additions | 411 |
Amounts utilised | (748) |
Unused amounts reversed | (222) |
Exchange and other movements | (1) |
Other provisions, ending balance | 2,030 |
Restructuring costs | |
Reconciliation of changes in other provisions [abstract] | |
Other provisions, beginning balance | 671 |
Additions | 158 |
Amounts utilised | (273) |
Unused amounts reversed | (72) |
Exchange and other movements | 45 |
Other provisions, ending balance | 529 |
Legal proceedings and regulatory matters | |
Reconciliation of changes in other provisions [abstract] | |
Other provisions, beginning balance | 756 |
Additions | 61 |
Amounts utilised | (149) |
Unused amounts reversed | (14) |
Exchange and other movements | (27) |
Other provisions, ending balance | 627 |
Customer remediation | |
Reconciliation of changes in other provisions [abstract] | |
Other provisions, beginning balance | 858 |
Additions | 92 |
Amounts utilised | (298) |
Unused amounts reversed | (93) |
Exchange and other movements | 10 |
Other provisions, ending balance | 569 |
Other provisions | |
Reconciliation of changes in other provisions [abstract] | |
Other provisions, beginning balance | 305 |
Additions | 100 |
Amounts utilised | (28) |
Unused amounts reversed | (43) |
Exchange and other movements | (29) |
Other provisions, ending balance | 305 |
Contractual commitments | |
Reconciliation of changes in other provisions [abstract] | |
Other provisions, beginning balance | 1,088 |
Net change in expected credit loss provision and other movements | (304) |
Other provisions, ending balance | $ 784 |
Provisions - Payment protection
Provisions - Payment protection insurance (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Disclosure of other provisions [line items] | ||
Provisions | $ 2,814 | $ 3,678 |
Insurance provision | ||
Disclosure of other provisions [line items] | ||
Provisions | 278 | 334 |
Provision used, other provisions | 74 | |
Increase in existing provisions, other provisions | 18 | |
Redress payable | ||
Disclosure of other provisions [line items] | ||
Provisions | 124 | $ 308 |
Provision used, other provisions | 157 | |
Unused amounts reversed | $ (27) |
Contingent liabilities, contr_3
Contingent liabilities, contractual commitments, and guarantees - Summary of contingent liabilities, guarantees, and commitments (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Disclosure of contingent liabilities [line items] | ||
Guarantees and contingent liabilities: | $ 108,753 | $ 97,717 |
Commitments | 846,885 | 844,770 |
IFRS 9 | Gross carrying/ nominal amount | ||
Disclosure of contingent liabilities [line items] | ||
Commitments to which the impairment requirements in IFRS 9 are applied where HSBC has become party to an irrevocable commitment | 688,647 | 678,167 |
– documentary credits and short-term trade-related transactions | ||
Disclosure of contingent liabilities [line items] | ||
Commitments | 9,201 | 7,178 |
– forward asset purchases and forward deposits placed | ||
Disclosure of contingent liabilities [line items] | ||
Commitments | 72,916 | 66,506 |
– standby facilities, credit lines and other commitments to lend | ||
Disclosure of contingent liabilities [line items] | ||
Commitments | 764,768 | 771,086 |
Loans and other credit-related commitments | IFRS 9 | ||
Disclosure of contingent liabilities [line items] | ||
Commitments to which the impairment requirements in IFRS 9 are applied where HSBC has become party to an irrevocable commitment | 660,843 | 659,049 |
Loans and other credit-related commitments | IFRS 9 | Gross carrying/ nominal amount | ||
Disclosure of contingent liabilities [line items] | ||
Commitments to which the impairment requirements in IFRS 9 are applied where HSBC has become party to an irrevocable commitment | 661,373 | 659,783 |
– financial guarantees | ||
Disclosure of contingent liabilities [line items] | ||
Guarantees and contingent liabilities: | 27,274 | 18,384 |
– performance and other guarantees | ||
Disclosure of contingent liabilities [line items] | ||
Guarantees and contingent liabilities: | 80,641 | 78,114 |
– other contingent liabilities | ||
Disclosure of contingent liabilities [line items] | ||
Guarantees and contingent liabilities: | $ 838 | $ 1,219 |
Legal proceedings and regulat_2
Legal proceedings and regulatory matters (Details) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 21 Months Ended | ||||||||
Jun. 30, 2021USD ($) | May 31, 2021lawsuit | Jun. 30, 2020financial_institutionclaiminvestorGroup | Jul. 31, 2019lawsuit | Sep. 30, 2018lawsuit | Jan. 31, 2018lawsuit | Dec. 31, 2016 | Apr. 30, 2016action | Aug. 31, 2016lawsuit | Mar. 31, 2019lawsuit | Nov. 30, 2015action | Jun. 30, 2021USD ($)actionclaimplaintiff | Nov. 30, 2020action | Dec. 31, 2020USD ($) | |
Disclosure of contingent liabilities [line items] | ||||||||||||||
Estimated financial effect of contingent liabilities | $ | $ 108,753 | $ 108,753 | $ 97,717 | |||||||||||
Madoff Securities | ||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||
Aggregate value of funds with assets invested in securities under litigation | $ | 8,400 | 8,400 | ||||||||||||
Estimated fund transfers, less withdrawals from securities under litigation | $ | $ 4,000 | $ 4,000 | ||||||||||||
Anti-money laundering and sanctions-related matters | New York | HSBC Holdings | ||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||
Number of pending claims | 9 | |||||||||||||
Number of claims dismissed | 5 | |||||||||||||
Number of claims on appeal | 2 | |||||||||||||
Number of claims subject to appeal | 3 | |||||||||||||
Number of remaining actions at a very early stage | 4 | |||||||||||||
Benchmark rate litigation | ||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||
Infringement period | 1 month | |||||||||||||
% Increase estimated financial effect of contingent liabilities | 5.00% | |||||||||||||
Number of groups of plaintiffs | plaintiff | 5 | |||||||||||||
ICE Libor | ||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||
Number of lawsuits/claims filed | lawsuit | 3 | 3 | ||||||||||||
Sibor, SOR, and BBSW | ||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||
Number of lawsuits/claims filed | lawsuit | 2 | |||||||||||||
Foreign exchange rate investigations and litigation | ||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||
Number of groups of plaintiffs | lawsuit | 2 | |||||||||||||
Number of lawsuits/claims filed | lawsuit | 2 | 2 | ||||||||||||
Deferred prosecution agreement period | 3 years | |||||||||||||
Number of transactions | lawsuit | 2 | |||||||||||||
Number of financial institutions | financial_institution | 28 | |||||||||||||
Precious metals fix-related investigations and litigation | ||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||
Number of lawsuits/claims filed | 2 | |||||||||||||
Film finance litigation | HSBC Private Bank (UK) Limited | ||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||
Number of groups of plaintiffs | investorGroup | 2 | |||||||||||||
Number of new claims filed | 2 | 2 | ||||||||||||
Other regulatory investigations, reviews and litigation | ||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||
Number of pending claims | claim | 2 | |||||||||||||
Legal proceedings contingent liability | Madoff litigation | ||||||||||||||
Disclosure of contingent liabilities [line items] | ||||||||||||||
Estimated financial effect of contingent liabilities | $ | $ 500 | $ 500 |
Transactions with related par_2
Transactions with related parties (Details) | 6 Months Ended |
Jun. 30, 2021change | |
Related Party [Abstract] | |
Changes in related party transactions | 0 |
Business disposals (Details)
Business disposals (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021USD ($)branch | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | |
Disclosure of detailed information about business combination [line items] | |||
Goodwill impairment | $ 0 | $ 0 | $ 41 |
Potential sale of the retail banking business in France | |||
Disclosure of detailed information about business combination [line items] | |||
Profit (loss) from discontinued operations | 2,300 | ||
Goodwill impairment | 700 | ||
Non-current assets or disposal groups classified as held for sale | 28,200 | ||
Potential sale of the retail banking business in France | Customer accounts | |||
Disclosure of detailed information about business combination [line items] | |||
Liabilities included in disposal groups classified as held for sale | 23,500 | ||
Potential sale of the retail banking business in France | Loans and advances to customers | |||
Disclosure of detailed information about business combination [line items] | |||
Non-current assets or disposal groups classified as held for sale | $ 25,600 | ||
Potential sale of the retail banking business in France | HSBC SFH (France) | HSBC Continental Europe | |||
Disclosure of detailed information about business combination [line items] | |||
Proportion of ownership interest in subsidiary | 100.00% | ||
Potential sale of the retail banking business in France | Crédit Logement | HSBC Continental Europe | |||
Disclosure of detailed information about business combination [line items] | |||
Proportion of ownership interest in subsidiary | 3.00% | ||
US retail banking business restructure | Minimum | Retail | |||
Disclosure of detailed information about business combination [line items] | |||
Number of branches | branch | 20 | ||
US retail banking business restructure | Maximum | Retail | |||
Disclosure of detailed information about business combination [line items] | |||
Number of branches | branch | 25 | ||
Number of branches held for sale | branch | 90 | ||
US retail banking business restructure | Customer accounts | Retail | |||
Disclosure of detailed information about business combination [line items] | |||
Liabilities included in disposal groups classified as held for sale | $ 9,900 | ||
US retail banking business restructure | Loans and advances to customers | Retail | |||
Disclosure of detailed information about business combination [line items] | |||
Non-current assets or disposal groups classified as held for sale | $ 2,600 |
Report of the directors finan_3
Report of the directors financial review risk report - Credit risk in the first half of 2021 (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Loans and advances to customers | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 1,059,511 | $ 1,037,987 |
Loans and advances to banks | ||
Disclosure of financial assets [line items] | ||
Financial assets | 86,886 | 81,616 |
Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 84,574 | 88,639 |
Debt instruments measured at amortised cost | Loans and advances to customers | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,059,511 | 1,037,987 |
Debt instruments measured at amortised cost | Loans and advances to banks | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Financial assets | 86,886 | 81,616 |
Debt instruments measured at amortised cost | Debt securities in issue | ||
Disclosure of financial assets [line items] | ||
Financial assets | 76,489 | 76,882 |
Debt instruments measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Financial assets | 854,280 | 772,233 |
Debt instruments at FVOCI | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Financial assets | 343,379 | 391,762 |
Gross carrying/ nominal amount | Wholesale | Hong Kong | ||
Disclosure of financial assets [line items] | ||
Financial assets | 436,443 | 452,983 |
Gross carrying/ nominal amount | Wholesale | UK | ||
Disclosure of financial assets [line items] | ||
Financial assets | 481,849 | 430,555 |
Gross carrying/ nominal amount | Wholesale | Canada | ||
Disclosure of financial assets [line items] | ||
Financial assets | 84,398 | 85,720 |
Gross carrying/ nominal amount | Wholesale | US | ||
Disclosure of financial assets [line items] | ||
Financial assets | 229,768 | 201,263 |
Gross carrying/ nominal amount | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | 688,647 | 678,167 |
Gross carrying/ nominal amount | Mortgages | Retail | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | 10,000 | |
Gross carrying/ nominal amount | Mortgages | Retail | Hong Kong | ||
Disclosure of financial assets [line items] | ||
Financial assets | 93,283 | 89,943 |
Increase (decrease) in financial assets | 2,900 | |
Gross carrying/ nominal amount | Mortgages | Retail | UK | ||
Disclosure of financial assets [line items] | ||
Financial assets | 151,435 | 146,478 |
Increase (decrease) in financial assets | 5,100 | |
Gross carrying/ nominal amount | Mortgages | Retail | Canada | ||
Disclosure of financial assets [line items] | ||
Financial assets | 24,681 | 22,454 |
Gross carrying/ nominal amount | Mortgages | Retail | US | ||
Disclosure of financial assets [line items] | ||
Financial assets | 15,283 | 15,399 |
Gross carrying/ nominal amount | Personal loans and overdrafts | Retail | Canada | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | 2,000 | |
Gross carrying/ nominal amount | Credit cards | Retail | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | (1,000) | |
Gross carrying/ nominal amount | Credit cards | Retail | Hong Kong | ||
Disclosure of financial assets [line items] | ||
Financial assets | 7,414 | 7,422 |
Increase (decrease) in financial assets | (200) | |
Gross carrying/ nominal amount | Credit cards | Retail | UK | ||
Disclosure of financial assets [line items] | ||
Financial assets | 7,563 | 7,869 |
Gross carrying/ nominal amount | Credit cards | Retail | Canada | ||
Disclosure of financial assets [line items] | ||
Financial assets | 232 | 260 |
Gross carrying/ nominal amount | Credit cards | Retail | US | ||
Disclosure of financial assets [line items] | ||
Financial assets | 938 | 570 |
Increase (decrease) in financial assets | (400) | |
Gross carrying/ nominal amount | Other financial assets measured at amortised cost | Retail | Hong Kong | ||
Disclosure of financial assets [line items] | ||
Financial assets | 5,787 | 6,020 |
Gross carrying/ nominal amount | Other financial assets measured at amortised cost | Retail | UK | ||
Disclosure of financial assets [line items] | ||
Financial assets | 8,460 | 9,164 |
Gross carrying/ nominal amount | Other financial assets measured at amortised cost | Retail | Canada | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,699 | 1,775 |
Gross carrying/ nominal amount | Debt instruments measured at amortised cost | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Financial assets | 2,013,784 | 1,906,543 |
Gross carrying/ nominal amount | Debt instruments measured at amortised cost | Loans and advances to customers and banks | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,159,000 | |
Increase (decrease) in financial assets | 25,200 | |
Increase (decrease) through foreign exchange, financial assets | 1,500 | |
Gross carrying/ nominal amount | Debt instruments measured at amortised cost | Loans and advances to customers and banks | IFRS 9 | Disposal groups classified as held for sale | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | (2,600) | |
Gross carrying/ nominal amount | Debt instruments measured at amortised cost | Loans and advances to customers | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,072,375 | 1,052,477 |
Increase (decrease) in financial assets | 21,200 | |
Gross carrying/ nominal amount | Debt instruments measured at amortised cost | Loans and advances to customers | IFRS 9 | Personal | ||
Disclosure of financial assets [line items] | ||
Financial assets | 482,447 | 460,809 |
Increase (decrease) in financial assets | 12,500 | |
Gross carrying/ nominal amount | Debt instruments measured at amortised cost | Loans and advances to customers | IFRS 9 | Personal | Hong Kong | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | 13,000 | |
Gross carrying/ nominal amount | Debt instruments measured at amortised cost | Loans and advances to customers | IFRS 9 | Wholesale | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | 500 | |
Gross carrying/ nominal amount | Debt instruments measured at amortised cost | Loans and advances to banks | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Financial assets | 86,905 | 81,658 |
Increase (decrease) in financial assets | 6,000 | |
Gross carrying/ nominal amount | Debt instruments measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Financial assets | 854,504 | 772,408 |
Gross carrying/ nominal amount | Debt instruments at FVOCI | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Financial assets | 343,490 | 391,903 |
Gross carrying/ nominal amount | Debt instruments at FVOCI | Debt securities in issue | ||
Disclosure of financial assets [line items] | ||
Financial assets | 348,107 | 399,717 |
Allowance for ECL | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | 2,000 | 1,300 |
Allowance for ECL | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | (3,700) | (4,500) |
Increase (decrease) in financial assets | 700 | (200) |
Allowance for ECL | Wholesale | Hong Kong | ||
Disclosure of financial assets [line items] | ||
Financial assets | (429) | (474) |
Allowance for ECL | Wholesale | UK | ||
Disclosure of financial assets [line items] | ||
Financial assets | (1,740) | (2,077) |
Allowance for ECL | Wholesale | Canada | ||
Disclosure of financial assets [line items] | ||
Financial assets | (146) | (183) |
Allowance for ECL | Wholesale | US | ||
Disclosure of financial assets [line items] | ||
Financial assets | (270) | (369) |
Allowance for ECL | Retail | ||
Disclosure of financial assets [line items] | ||
Financial assets | (3,900) | (4,500) |
Increase (decrease) in financial assets | 1,300 | 1,500 |
Allowance for ECL | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Financial assets | (13,800) | (15,700) |
Increase (decrease) in financial assets | 1,900 | |
Increase (decrease) through foreign exchange, financial assets | 100 | |
Off-balance sheet commitments | (594) | (859) |
ECL income statement change for the period | 719 | |
Allowance for ECL | Mortgages | Retail | Hong Kong | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Allowance for ECL | Mortgages | Retail | UK | ||
Disclosure of financial assets [line items] | ||
Financial assets | (205) | (197) |
Allowance for ECL | Mortgages | Retail | Canada | ||
Disclosure of financial assets [line items] | ||
Financial assets | (31) | (31) |
Allowance for ECL | Mortgages | Retail | US | ||
Disclosure of financial assets [line items] | ||
Financial assets | (41) | (41) |
Allowance for ECL | Credit cards | Retail | Hong Kong | ||
Disclosure of financial assets [line items] | ||
Financial assets | (244) | (266) |
Allowance for ECL | Credit cards | Retail | UK | ||
Disclosure of financial assets [line items] | ||
Financial assets | (678) | (857) |
Allowance for ECL | Credit cards | Retail | Canada | ||
Disclosure of financial assets [line items] | ||
Financial assets | (10) | (9) |
Allowance for ECL | Credit cards | Retail | US | ||
Disclosure of financial assets [line items] | ||
Financial assets | (162) | (86) |
Allowance for ECL | Other financial assets measured at amortised cost | Retail | Hong Kong | ||
Disclosure of financial assets [line items] | ||
Financial assets | (102) | (112) |
Allowance for ECL | Other financial assets measured at amortised cost | Retail | UK | ||
Disclosure of financial assets [line items] | ||
Financial assets | (713) | (897) |
Allowance for ECL | Other financial assets measured at amortised cost | Retail | Canada | ||
Disclosure of financial assets [line items] | ||
Financial assets | (21) | (22) |
Allowance for ECL | Debt instruments measured at amortised cost | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Financial assets | (13,107) | (14,707) |
Allowance for ECL | Debt instruments measured at amortised cost | Loans and advances to customers | Non-credit impaired | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | (1,500) | 3,900 |
Allowance for ECL | Debt instruments measured at amortised cost | Loans and advances to customers | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Financial assets | (12,864) | (14,490) |
Increase (decrease) in financial assets | 1,600 | |
Allowance for ECL | Debt instruments measured at amortised cost | Loans and advances to customers | IFRS 9 | Personal | ||
Disclosure of financial assets [line items] | ||
Financial assets | (4,006) | (4,731) |
Increase (decrease) in financial assets | 700 | |
ECL income statement change for the period | 116 | |
Allowance for ECL | Debt instruments measured at amortised cost | Loans and advances to customers | IFRS 9 | Personal | Non-credit impaired | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | 600 | |
Allowance for ECL | Debt instruments measured at amortised cost | Loans and advances to customers | IFRS 9 | Personal | Financial instruments credit-impaired | ||
Disclosure of financial assets [line items] | ||
ECL income statement change for the period | 221 | |
Allowance for ECL | Debt instruments measured at amortised cost | Loans and advances to customers | IFRS 9 | Wholesale | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | 900 | |
ECL income statement change for the period | 633 | |
Allowance for ECL | Debt instruments measured at amortised cost | Loans and advances to customers | IFRS 9 | Wholesale | Non-credit impaired | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | 700 | |
Allowance for ECL | Debt instruments measured at amortised cost | Loans and advances to customers | IFRS 9 | Wholesale | Financial instruments credit-impaired | ||
Disclosure of financial assets [line items] | ||
ECL income statement change for the period | 196 | |
Allowance for ECL | Debt instruments measured at amortised cost | Loans and advances to banks | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Financial assets | (19) | (42) |
Allowance for ECL | Debt instruments measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Financial assets | (224) | (175) |
ECL income statement change for the period | (56) | |
Allowance for ECL | Debt instruments at FVOCI | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Financial assets | (111) | (141) |
Allowance for ECL | Debt instruments at FVOCI | Loans and advances to customers | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
ECL income statement change for the period | 26 | |
Allowance for ECL | Debt instruments at FVOCI | Debt securities in issue | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ (111) | $ (141) |
Report of the directors finan_4
Report of the directors financial review risk report - Summary of financial instruments to which the impairment requirements in IFRS 9 are applied (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 84,574 | $ 88,639 |
Loans and advances to customers at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,059,511 | 1,037,987 |
Loans and advances to banks at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 86,886 | 81,616 |
Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 76,489 | 76,882 |
Gross carrying/ nominal amount | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | ||
Disclosure of financial assets [line items] | ||
Financial assets | 348,107 | 399,717 |
Allowance for ECL | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | ||
Disclosure of financial assets [line items] | ||
Financial assets | (111) | (141) |
IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Financial assets and off-balance sheet loan commitments | 2,688,730 | 2,569,144 |
IFRS 9 | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | ||
Disclosure of financial assets [line items] | ||
Financial assets | 343,379 | 391,762 |
IFRS 9 | Loans and advances to customers at amortised cost | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,059,511 | 1,037,987 |
IFRS 9 | Loans and advances to banks at amortised cost | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 86,886 | 81,616 |
IFRS 9 | Other financial assets measured at amortised cost | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 854,280 | 772,233 |
IFRS 9 | Gross carrying/ nominal amount | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | 688,647 | 678,167 |
Financial assets and off-balance sheet loan commitments | 2,702,431 | 2,584,710 |
IFRS 9 | Gross carrying/ nominal amount | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 2,013,784 | 1,906,543 |
IFRS 9 | Gross carrying/ nominal amount | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | ||
Disclosure of financial assets [line items] | ||
Financial assets | 343,490 | 391,903 |
IFRS 9 | Gross carrying/ nominal amount | Loans and advances to customers at amortised cost | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,072,375 | 1,052,477 |
IFRS 9 | Gross carrying/ nominal amount | Loans and advances to banks at amortised cost | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 86,905 | 81,658 |
IFRS 9 | Gross carrying/ nominal amount | Other financial assets measured at amortised cost | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 854,504 | 772,408 |
IFRS 9 | Gross carrying/ nominal amount | – cash and balances at central banks | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 393,562 | 304,486 |
IFRS 9 | Gross carrying/ nominal amount | – items in the course of collection from other banks | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 9,406 | 4,094 |
IFRS 9 | Gross carrying/ nominal amount | – Hong Kong Government certificates of indebtedness | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 41,880 | 40,420 |
IFRS 9 | Gross carrying/ nominal amount | Non-trading reverse purchase agreement commitments | ||
Disclosure of financial assets [line items] | ||
Financial assets | 68,200 | 61,716 |
IFRS 9 | Gross carrying/ nominal amount | Non-trading reverse purchase agreement commitments | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 201,714 | 230,628 |
IFRS 9 | Gross carrying/ nominal amount | – financial investments | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 84,662 | 88,719 |
IFRS 9 | Gross carrying/ nominal amount | Prepayments, accrued income and other assets | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 123,280 | 104,061 |
IFRS 9 | Gross carrying/ nominal amount | Prepayments, accrued income and other assets | Debt instruments measured at amortised cost | Disposal groups classified as held for sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 2,649 | |
IFRS 9 | Allowance for ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (13,800) | (15,700) |
Off-balance sheet commitments | (594) | (859) |
Financial assets and off-balance sheet loan commitments | (13,701) | (15,566) |
IFRS 9 | Allowance for ECL | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | (13,107) | (14,707) |
IFRS 9 | Allowance for ECL | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | ||
Disclosure of financial assets [line items] | ||
Financial assets | (111) | (141) |
IFRS 9 | Allowance for ECL | Loans and advances to customers at amortised cost | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | (12,864) | (14,490) |
IFRS 9 | Allowance for ECL | Loans and advances to banks at amortised cost | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | (19) | (42) |
IFRS 9 | Allowance for ECL | Other financial assets measured at amortised cost | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | (224) | (175) |
IFRS 9 | Allowance for ECL | – cash and balances at central banks | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | (3) | (5) |
IFRS 9 | Allowance for ECL | – items in the course of collection from other banks | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
IFRS 9 | Allowance for ECL | – Hong Kong Government certificates of indebtedness | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
IFRS 9 | Allowance for ECL | Non-trading reverse purchase agreement commitments | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
IFRS 9 | Allowance for ECL | – financial investments | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | (88) | (80) |
IFRS 9 | Allowance for ECL | Prepayments, accrued income and other assets | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | (133) | (90) |
IFRS 9 | Allowance for ECL | Prepayments, accrued income and other assets | Debt instruments measured at amortised cost | Disposal groups classified as held for sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | (48) | |
– personal | IFRS 9 | Gross carrying/ nominal amount | Loans and advances to customers at amortised cost | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 482,447 | 460,809 |
– personal | IFRS 9 | Allowance for ECL | Loans and advances to customers at amortised cost | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | (4,006) | (4,731) |
– corporate and commercial | IFRS 9 | Gross carrying/ nominal amount | Loans and advances to customers at amortised cost | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 520,201 | 527,088 |
– corporate and commercial | IFRS 9 | Allowance for ECL | Loans and advances to customers at amortised cost | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | (8,640) | (9,494) |
– non-bank financial institutions | IFRS 9 | Gross carrying/ nominal amount | Loans and advances to customers at amortised cost | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 69,727 | 64,580 |
– non-bank financial institutions | IFRS 9 | Allowance for ECL | Loans and advances to customers at amortised cost | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | (218) | (265) |
Loans and other credit-related commitments | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | 660,843 | 659,049 |
Loans and other credit-related commitments | IFRS 9 | Gross carrying/ nominal amount | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | 661,373 | 659,783 |
Loans and other credit-related commitments | IFRS 9 | Allowance for ECL | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | (530) | (734) |
Loans and other credit-related commitments | – personal | IFRS 9 | Gross carrying/ nominal amount | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | 238,559 | 236,170 |
Loans and other credit-related commitments | – personal | IFRS 9 | Allowance for ECL | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | (23) | (40) |
Loans and other credit-related commitments | – corporate and commercial | IFRS 9 | Gross carrying/ nominal amount | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | 288,414 | 299,802 |
Loans and other credit-related commitments | – corporate and commercial | IFRS 9 | Allowance for ECL | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | (475) | (650) |
Loans and other credit-related commitments | – non-bank financial institutions | IFRS 9 | Gross carrying/ nominal amount | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | 134,400 | 123,811 |
Loans and other credit-related commitments | – non-bank financial institutions | IFRS 9 | Allowance for ECL | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | (32) | (44) |
Financial guarantees | IFRS 9 | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | 27,210 | 18,259 |
Financial guarantees | IFRS 9 | Gross carrying/ nominal amount | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | 27,274 | 18,384 |
Financial guarantees | IFRS 9 | Allowance for ECL | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | (64) | (125) |
Financial guarantees | – personal | IFRS 9 | Gross carrying/ nominal amount | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | 919 | 900 |
Financial guarantees | – personal | IFRS 9 | Allowance for ECL | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | (1) | (1) |
Financial guarantees | – corporate and commercial | IFRS 9 | Gross carrying/ nominal amount | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | 21,679 | 12,946 |
Financial guarantees | – corporate and commercial | IFRS 9 | Allowance for ECL | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | (58) | (114) |
Financial guarantees | – non-bank financial institutions | IFRS 9 | Gross carrying/ nominal amount | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | 4,676 | 4,538 |
Financial guarantees | – non-bank financial institutions | IFRS 9 | Allowance for ECL | ||
Disclosure of financial assets [line items] | ||
Off-balance sheet commitments | $ (5) | $ (10) |
Report of the directors finan_5
Report of the directors financial review risk report - Measurement uncertainty and sensitivity analysis of ECL estimates (Details) $ in Billions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)economic_scenario | Dec. 31, 2020USD ($) | |
Disclosure of financial assets [line items] | ||
Number of economic scenarios to calculate ECL | economic_scenario | 4 | |
Number of economic scenarios drawn from consensus forecasts and distributional estimates | economic_scenario | 3 | |
Allowance for ECL | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | $ 2 | $ 1.3 |
Allowance for ECL | Wholesale | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | 0.7 | (0.2) |
Allowance for ECL | Retail | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | 1.3 | 1.5 |
Allowance for ECL | Non-credit impaired | Loans and advances to customers | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | (1.5) | $ 3.9 |
Increase in financial assets from prior year that still remains | 2.4 | |
Allowance for ECL | Non-credit impaired | Wholesale | Loans and advances to customers | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Increase in financial assets from prior year that still remains | 1.7 | |
Allowance for ECL | Non-credit impaired | Retail | Loans and advances to customers | Debt instruments measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Increase in financial assets from prior year that still remains | $ 0.7 |
Report of the directors finan_6
Report of the directors financial review risk report - The consensus Central scenario (Details) | 6 Months Ended |
Jun. 30, 2021$ / bbl | |
West Texas Intermediate Oil | |
Disclosure of financial assets [line items] | |
Oil and gas, average sale price | 58 |
Central scenario ECL | |
Disclosure of financial assets [line items] | |
GDP growth rate, 5 year average | 3.30% |
Forecast period | 5 years |
Central scenario ECL | UK | |
Disclosure of financial assets [line items] | |
Probability | 50.00% |
GDP growth rate, 5 year average | 3.00% |
Unemployment rate, 5 year average | 5.10% |
House price growth, 5 year average | 3.00% |
Short term interest rate, 5 year average | 0.60% |
Central scenario ECL | US | |
Disclosure of financial assets [line items] | |
Probability | 75.00% |
GDP growth rate, 5 year average | 2.90% |
Unemployment rate, 5 year average | 4.10% |
House price growth, 5 year average | 5.10% |
Short term interest rate, 5 year average | 1.10% |
Central scenario ECL | Hong Kong | |
Disclosure of financial assets [line items] | |
Probability | 70.00% |
GDP growth rate, 5 year average | 2.60% |
Unemployment rate, 5 year average | 4.00% |
House price growth, 5 year average | 2.90% |
Short term interest rate, 5 year average | 1.90% |
Central scenario ECL | Mainland China | |
Disclosure of financial assets [line items] | |
Probability | 80.00% |
GDP growth rate, 5 year average | 5.00% |
Unemployment rate, 5 year average | 3.80% |
House price growth, 5 year average | 4.90% |
Short term interest rate, 5 year average | 3.50% |
Central scenario ECL | Canada | |
Disclosure of financial assets [line items] | |
Probability | 70.00% |
GDP growth rate, 5 year average | 2.60% |
Unemployment rate, 5 year average | 6.10% |
House price growth, 5 year average | 4.70% |
Short term interest rate, 5 year average | 1.40% |
Central scenario ECL | France | |
Disclosure of financial assets [line items] | |
Probability | 45.00% |
GDP growth rate, 5 year average | 2.10% |
Unemployment rate, 5 year average | 8.30% |
House price growth, 5 year average | 3.50% |
Short term interest rate, 5 year average | (0.40%) |
Central scenario ECL | UAE | |
Disclosure of financial assets [line items] | |
Probability | 65.00% |
GDP growth rate, 5 year average | 3.60% |
Unemployment rate, 5 year average | 2.70% |
House price growth, 5 year average | 0.80% |
Short term interest rate, 5 year average | 1.50% |
Central scenario ECL | Mexico | |
Disclosure of financial assets [line items] | |
Probability | 65.00% |
GDP growth rate, 5 year average | 2.40% |
Unemployment rate, 5 year average | 4.20% |
House price growth, 5 year average | 4.60% |
Short term interest rate, 5 year average | 6.40% |
Central scenario ECL | Minimum | |
Disclosure of financial assets [line items] | |
Probability | 45.00% |
Central scenario ECL | Maximum | |
Disclosure of financial assets [line items] | |
Probability | 80.00% |
Central scenario ECL | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | 5.30% |
Central scenario ECL | 2021: Annual average growth rate | UK | |
Disclosure of financial assets [line items] | |
GDP growth rate | 6.10% |
Unemployment rate | 5.80% |
House price growth | 8.30% |
Short-term interest rate | 0.20% |
Central scenario ECL | 2021: Annual average growth rate | US | |
Disclosure of financial assets [line items] | |
GDP growth rate | 6.10% |
Unemployment rate | 5.50% |
House price growth | 11.90% |
Short-term interest rate | 0.30% |
Central scenario ECL | 2021: Annual average growth rate | Hong Kong | |
Disclosure of financial assets [line items] | |
GDP growth rate | 5.20% |
Unemployment rate | 6.20% |
House price growth | 2.60% |
Short-term interest rate | 0.90% |
Central scenario ECL | 2021: Annual average growth rate | Mainland China | |
Disclosure of financial assets [line items] | |
GDP growth rate | 8.50% |
Unemployment rate | 3.90% |
House price growth | 4.30% |
Short-term interest rate | 3.40% |
Central scenario ECL | 2021: Annual average growth rate | Canada | |
Disclosure of financial assets [line items] | |
GDP growth rate | 5.80% |
Unemployment rate | 7.60% |
House price growth | 16.10% |
Short-term interest rate | 0.50% |
Central scenario ECL | 2021: Annual average growth rate | France | |
Disclosure of financial assets [line items] | |
GDP growth rate | 4.90% |
Unemployment rate | 8.90% |
House price growth | 4.50% |
Short-term interest rate | (0.60%) |
Central scenario ECL | 2021: Annual average growth rate | UAE | |
Disclosure of financial assets [line items] | |
GDP growth rate | 2.50% |
Unemployment rate | 2.70% |
House price growth | (3.90%) |
Short-term interest rate | 0.80% |
Central scenario ECL | 2021: Annual average growth rate | Mexico | |
Disclosure of financial assets [line items] | |
GDP growth rate | 4.90% |
Unemployment rate | 4.50% |
House price growth | 5.40% |
Short-term interest rate | 4.50% |
Central scenario ECL | 2022: Annual average growth rate | UK | |
Disclosure of financial assets [line items] | |
GDP growth rate | 5.50% |
Unemployment rate | 5.80% |
House price growth | 2.70% |
Short-term interest rate | 0.30% |
Central scenario ECL | 2022: Annual average growth rate | US | |
Disclosure of financial assets [line items] | |
GDP growth rate | 4.00% |
Unemployment rate | 4.30% |
House price growth | 6.20% |
Short-term interest rate | 0.40% |
Central scenario ECL | 2022: Annual average growth rate | Hong Kong | |
Disclosure of financial assets [line items] | |
GDP growth rate | 3.20% |
Unemployment rate | 4.60% |
House price growth | 3.90% |
Short-term interest rate | 1.20% |
Central scenario ECL | 2022: Annual average growth rate | Mainland China | |
Disclosure of financial assets [line items] | |
GDP growth rate | 5.50% |
Unemployment rate | 3.80% |
House price growth | 6.00% |
Short-term interest rate | 3.40% |
Central scenario ECL | 2022: Annual average growth rate | Canada | |
Disclosure of financial assets [line items] | |
GDP growth rate | 3.90% |
Unemployment rate | 6.30% |
House price growth | 6.40% |
Short-term interest rate | 0.70% |
Central scenario ECL | 2022: Annual average growth rate | France | |
Disclosure of financial assets [line items] | |
GDP growth rate | 3.90% |
Unemployment rate | 8.70% |
House price growth | 3.50% |
Short-term interest rate | (0.60%) |
Central scenario ECL | 2022: Annual average growth rate | UAE | |
Disclosure of financial assets [line items] | |
GDP growth rate | 3.80% |
Unemployment rate | 2.70% |
House price growth | (0.70%) |
Short-term interest rate | 0.90% |
Central scenario ECL | 2022: Annual average growth rate | Mexico | |
Disclosure of financial assets [line items] | |
GDP growth rate | 2.90% |
Unemployment rate | 4.20% |
House price growth | 5.20% |
Short-term interest rate | 5.50% |
Central scenario ECL | 2023: Annual average growth rate | UK | |
Disclosure of financial assets [line items] | |
GDP growth rate | 2.20% |
Unemployment rate | 5.00% |
House price growth | 2.50% |
Short-term interest rate | 0.50% |
Central scenario ECL | 2023: Annual average growth rate | US | |
Disclosure of financial assets [line items] | |
GDP growth rate | 2.30% |
Unemployment rate | 4.00% |
House price growth | 4.40% |
Short-term interest rate | 0.70% |
Central scenario ECL | 2023: Annual average growth rate | Hong Kong | |
Disclosure of financial assets [line items] | |
GDP growth rate | 2.70% |
Unemployment rate | 3.90% |
House price growth | 2.50% |
Short-term interest rate | 1.60% |
Central scenario ECL | 2023: Annual average growth rate | Mainland China | |
Disclosure of financial assets [line items] | |
GDP growth rate | 5.30% |
Unemployment rate | 3.80% |
House price growth | 5.40% |
Short-term interest rate | 3.50% |
Central scenario ECL | 2023: Annual average growth rate | Canada | |
Disclosure of financial assets [line items] | |
GDP growth rate | 2.30% |
Unemployment rate | 6.10% |
House price growth | 2.60% |
Short-term interest rate | 1.20% |
Central scenario ECL | 2023: Annual average growth rate | France | |
Disclosure of financial assets [line items] | |
GDP growth rate | 2.10% |
Unemployment rate | 8.40% |
House price growth | 4.20% |
Short-term interest rate | (0.50%) |
Central scenario ECL | 2023: Annual average growth rate | UAE | |
Disclosure of financial assets [line items] | |
GDP growth rate | 3.00% |
Unemployment rate | 2.70% |
House price growth | 0.30% |
Short-term interest rate | 1.20% |
Central scenario ECL | 2023: Annual average growth rate | Mexico | |
Disclosure of financial assets [line items] | |
GDP growth rate | 2.30% |
Unemployment rate | 4.10% |
House price growth | 4.70% |
Short-term interest rate | 6.40% |
Report of the directors finan_7
Report of the directors financial review risk report - The consensus Upside scenario (Details) - Upside scenario ECL | 6 Months Ended |
Jun. 30, 2021 | |
UK | |
Disclosure of financial assets [line items] | |
Probability | 5.00% |
UK | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | 11.10% |
UK | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 3.40% |
House price growth | 9.10% |
Short-term interest rate | 0.20% |
US | |
Disclosure of financial assets [line items] | |
Probability | 5.00% |
US | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | 11.00% |
US | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 2.20% |
House price growth | 12.00% |
Short-term interest rate | 0.50% |
Hong Kong | |
Disclosure of financial assets [line items] | |
Probability | 5.00% |
Hong Kong | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | 10.00% |
Hong Kong | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 3.20% |
House price growth | 8.90% |
Short-term interest rate | 1.20% |
Mainland China | |
Disclosure of financial assets [line items] | |
Probability | 10.00% |
Mainland China | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | 13.50% |
Mainland China | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 3.60% |
House price growth | 13.90% |
Short-term interest rate | 3.40% |
Canada | |
Disclosure of financial assets [line items] | |
Probability | 10.00% |
Canada | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | 11.20% |
Canada | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 4.70% |
House price growth | 20.20% |
Short-term interest rate | 0.60% |
France | |
Disclosure of financial assets [line items] | |
Probability | 5.00% |
France | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | 8.30% |
France | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 7.20% |
House price growth | 6.10% |
Short-term interest rate | (0.60%) |
UAE | |
Disclosure of financial assets [line items] | |
Probability | 5.00% |
UAE | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | 14.90% |
UAE | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 2.20% |
House price growth | 21.10% |
Short-term interest rate | 1.00% |
Mexico | |
Disclosure of financial assets [line items] | |
Probability | 5.00% |
Mexico | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | 8.60% |
Mexico | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 3.00% |
House price growth | 8.70% |
Short-term interest rate | 5.00% |
Report of the directors finan_8
Report of the directors financial review risk report - The consensus Downside scenario (Details) - Downside scenario ECL | 6 Months Ended |
Jun. 30, 2021 | |
UK | |
Disclosure of financial assets [line items] | |
Probability | 30.00% |
UK | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | 0.40% |
UK | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 7.30% |
House price growth | (3.70%) |
Short-term interest rate | 0.20% |
US | |
Disclosure of financial assets [line items] | |
Probability | 15.00% |
US | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | (0.60%) |
US | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 6.90% |
House price growth | 2.70% |
Short-term interest rate | 0.40% |
Hong Kong | |
Disclosure of financial assets [line items] | |
Probability | 20.00% |
Hong Kong | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | (6.00%) |
Hong Kong | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 7.10% |
House price growth | (8.00%) |
Short-term interest rate | 1.20% |
Mainland China | |
Disclosure of financial assets [line items] | |
Probability | 8.00% |
Mainland China | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | (0.70%) |
Mainland China | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 4.10% |
House price growth | 0.80% |
Short-term interest rate | 3.10% |
Canada | |
Disclosure of financial assets [line items] | |
Probability | 10.00% |
Canada | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | (0.50%) |
Canada | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 8.30% |
House price growth | (2.30%) |
Short-term interest rate | 0.40% |
France | |
Disclosure of financial assets [line items] | |
Probability | 35.00% |
France | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | (1.60%) |
France | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 11.00% |
House price growth | 0.30% |
Short-term interest rate | (0.60%) |
UAE | |
Disclosure of financial assets [line items] | |
Probability | 25.00% |
UAE | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | (3.30%) |
UAE | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 3.20% |
House price growth | (17.00%) |
Short-term interest rate | 0.90% |
Mexico | |
Disclosure of financial assets [line items] | |
Probability | 25.00% |
Mexico | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | (2.70%) |
Mexico | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 5.50% |
House price growth | 2.30% |
Short-term interest rate | 3.40% |
Report of the directors finan_9
Report of the directors financial review risk report - Additional Downside Scenario (Details) - Additional Downside scenario ECL | 6 Months Ended |
Jun. 30, 2021 | |
UK | |
Disclosure of financial assets [line items] | |
Probability | 15.00% |
UK | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | (2.10%) |
UK | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 9.30% |
House price growth | (7.80%) |
Short-term interest rate | 1.00% |
US | |
Disclosure of financial assets [line items] | |
Probability | 5.00% |
US | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | (4.40%) |
US | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 11.00% |
House price growth | (5.70%) |
Short-term interest rate | 1.30% |
Hong Kong | |
Disclosure of financial assets [line items] | |
Probability | 5.00% |
Hong Kong | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | (10.60%) |
Hong Kong | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 7.10% |
House price growth | (17.00%) |
Short-term interest rate | 2.10% |
Mainland China | |
Disclosure of financial assets [line items] | |
Probability | 2.00% |
Mainland China | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | (7.40%) |
Mainland China | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 5.70% |
House price growth | (20.70%) |
Short-term interest rate | 4.80% |
Canada | |
Disclosure of financial assets [line items] | |
Probability | 10.00% |
Canada | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | (4.60%) |
Canada | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 9.80% |
House price growth | (16.10%) |
Short-term interest rate | 0.50% |
France | |
Disclosure of financial assets [line items] | |
Probability | 15.00% |
France | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | (3.10%) |
France | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 11.10% |
House price growth | (5.90%) |
Short-term interest rate | 0.30% |
UAE | |
Disclosure of financial assets [line items] | |
Probability | 5.00% |
UAE | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | (11.60%) |
UAE | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 4.40% |
House price growth | (18.10%) |
Short-term interest rate | 0.40% |
Mexico | |
Disclosure of financial assets [line items] | |
Probability | 5.00% |
Mexico | 2021: Annual average growth rate | |
Disclosure of financial assets [line items] | |
GDP growth rate | (7.60%) |
Mexico | 2022: Annual average growth rate | |
Disclosure of financial assets [line items] | |
Unemployment rate | 6.10% |
House price growth | 0.90% |
Short-term interest rate | 7.20% |
Report of the directors fina_10
Report of the directors financial review risk report - Macroeconomic projections (Details) | 6 Months Ended |
Jun. 30, 2021marketeconomic_scenarioeconomy | |
Disclosure of financial assets [line items] | |
Number of economic scenarios to calculate ECL | economic_scenario | 4 |
Markets with lower uncertainty | market | 4 |
North America | |
Disclosure of financial assets [line items] | |
Number of economies | economy | 3 |
United States, Canada, Mexico, United Arab Emirates | |
Disclosure of financial assets [line items] | |
Markets with lower uncertainty | market | 4 |
Central scenario ECL | Minimum | |
Disclosure of financial assets [line items] | |
Probability | 45.00% |
Central scenario ECL | Maximum | |
Disclosure of financial assets [line items] | |
Probability | 80.00% |
Central scenario ECL | Mainland China | |
Disclosure of financial assets [line items] | |
Probability | 80.00% |
Central scenario ECL | Hong Kong | |
Disclosure of financial assets [line items] | |
Probability | 70.00% |
Central scenario ECL | UK | |
Disclosure of financial assets [line items] | |
Probability | 50.00% |
Central scenario ECL | France | |
Disclosure of financial assets [line items] | |
Probability | 45.00% |
Central scenario ECL | United States, Canada, Mexico, United Arab Emirates | Minimum | |
Disclosure of financial assets [line items] | |
Probability | 65.00% |
Central scenario ECL | United States, Canada, Mexico, United Arab Emirates | Maximum | |
Disclosure of financial assets [line items] | |
Probability | 75.00% |
Downside scenario | |
Disclosure of financial assets [line items] | |
Number of economic scenarios to calculate ECL | economic_scenario | 2 |
Downside scenario | Mainland China | |
Disclosure of financial assets [line items] | |
Probability | 10.00% |
Downside scenario | Hong Kong | |
Disclosure of financial assets [line items] | |
Probability | 25.00% |
Downside scenario | United States, Canada, Mexico, United Arab Emirates | Minimum | |
Disclosure of financial assets [line items] | |
Probability | 20.00% |
Downside scenario | United States, Canada, Mexico, United Arab Emirates | Maximum | |
Disclosure of financial assets [line items] | |
Probability | 30.00% |
Downside scenario ECL | Mainland China | |
Disclosure of financial assets [line items] | |
Probability | 8.00% |
Downside scenario ECL | Hong Kong | |
Disclosure of financial assets [line items] | |
Probability | 20.00% |
Downside scenario ECL | UK | |
Disclosure of financial assets [line items] | |
Probability | 30.00% |
Downside scenario ECL | France | |
Disclosure of financial assets [line items] | |
Probability | 35.00% |
Additional Downside scenario ECL | Mainland China | |
Disclosure of financial assets [line items] | |
Probability | 2.00% |
Additional Downside scenario ECL | Hong Kong | |
Disclosure of financial assets [line items] | |
Probability | 5.00% |
Additional Downside scenario ECL | UK | |
Disclosure of financial assets [line items] | |
Probability | 15.00% |
Additional Downside scenario ECL | France | |
Disclosure of financial assets [line items] | |
Probability | 15.00% |
Upside scenario ECL | Mainland China | |
Disclosure of financial assets [line items] | |
Probability | 10.00% |
Upside scenario ECL | Hong Kong | |
Disclosure of financial assets [line items] | |
Probability | 5.00% |
Upside scenario ECL | UK | |
Disclosure of financial assets [line items] | |
Probability | 5.00% |
Upside scenario ECL | France | |
Disclosure of financial assets [line items] | |
Probability | 5.00% |
Report of the directors fina_11
Report of the directors financial review risk report - Management judgemental adjustments (Details) - Allowance for ECL - USD ($) $ in Billions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Disclosure of financial assets [line items] | |||
Increase (decrease) in financial assets | $ 2 | $ 1.3 | |
Retail | |||
Disclosure of financial assets [line items] | |||
Increase (decrease) in financial assets | 1.3 | 1.5 | |
Wholesale | |||
Disclosure of financial assets [line items] | |||
Increase (decrease) in financial assets | 0.7 | (0.2) | |
Low-risk counterparties (banks, sovereigns and government entities) | |||
Disclosure of financial assets [line items] | |||
Increase (decrease) in financial assets | (0.7) | (0.7) | |
Low-risk counterparties (banks, sovereigns and government entities) | Retail | |||
Disclosure of financial assets [line items] | |||
Increase (decrease) in financial assets | 0.1 | 0 | |
Low-risk counterparties (banks, sovereigns and government entities) | Wholesale | |||
Disclosure of financial assets [line items] | |||
Increase (decrease) in financial assets | (0.8) | (0.7) | |
Corporate lending adjustments | |||
Disclosure of financial assets [line items] | |||
Increase (decrease) in financial assets | 1.4 | $ 1.4 | 0.5 |
Corporate lending adjustments | Wholesale | |||
Disclosure of financial assets [line items] | |||
Increase (decrease) in financial assets | 1.4 | 0.5 | |
Retail lending probability of default adjustments | |||
Disclosure of financial assets [line items] | |||
Increase (decrease) in financial assets | (0.1) | (0.8) | |
Retail lending probability of default adjustments | Retail | |||
Disclosure of financial assets [line items] | |||
Increase (decrease) in financial assets | (0.1) | (0.8) | |
Retail model default timing adjustments | |||
Disclosure of financial assets [line items] | |||
Increase (decrease) in financial assets | 0.4 | 1.9 | |
Retail model default timing adjustments | Retail | |||
Disclosure of financial assets [line items] | |||
Increase (decrease) in financial assets | 0.4 | 1.9 | |
Macroeconomic-related adjustments | |||
Disclosure of financial assets [line items] | |||
Increase (decrease) in financial assets | 0.6 | 0.1 | |
Macroeconomic-related adjustments | Retail | |||
Disclosure of financial assets [line items] | |||
Increase (decrease) in financial assets | 0.6 | 0.1 | |
Other retail lending adjustments | |||
Disclosure of financial assets [line items] | |||
Increase (decrease) in financial assets | 0.3 | 0.3 | |
Other retail lending adjustments | Retail | |||
Disclosure of financial assets [line items] | |||
Increase (decrease) in financial assets | $ 0.3 | $ 0.3 |
Report of the directors fina_12
Report of the directors financial review risk report - Economic scenarios sensitivity analysis of ECL estimates (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure of financial assets [line items] | |
ECL, weight assigned to scenarios | 100.00% |
Report of the directors fina_13
Report of the directors financial review risk report - Wholesale analysis (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Allowance for ECL | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ (3,700) | $ (4,500) |
UK | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 50.00% | |
UK | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 5.00% | |
UK | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 30.00% | |
UK | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 15.00% | |
UK | Gross carrying/ nominal amount | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 481,849 | 430,555 |
UK | Allowance for ECL | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | (1,740) | (2,077) |
UK | Allowance for ECL | Wholesale | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (1,433) | (1,514) |
UK | Allowance for ECL | Wholesale | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (1,083) | (1,026) |
UK | Allowance for ECL | Wholesale | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (1,888) | (2,271) |
UK | Allowance for ECL | Wholesale | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ (2,949) | (3,869) |
US | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 75.00% | |
US | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 5.00% | |
US | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 15.00% | |
US | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 5.00% | |
US | Gross carrying/ nominal amount | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 229,768 | 201,263 |
US | Allowance for ECL | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | (270) | (369) |
US | Allowance for ECL | Wholesale | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (253) | (314) |
US | Allowance for ECL | Wholesale | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (185) | (219) |
US | Allowance for ECL | Wholesale | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (319) | (472) |
US | Allowance for ECL | Wholesale | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ (490) | (723) |
Hong Kong | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 70.00% | |
Hong Kong | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 5.00% | |
Hong Kong | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 20.00% | |
Hong Kong | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 5.00% | |
Hong Kong | Gross carrying/ nominal amount | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 436,443 | 452,983 |
Hong Kong | Allowance for ECL | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | (429) | (474) |
Hong Kong | Allowance for ECL | Wholesale | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (377) | (388) |
Hong Kong | Allowance for ECL | Wholesale | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (211) | (211) |
Hong Kong | Allowance for ECL | Wholesale | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (557) | (672) |
Hong Kong | Allowance for ECL | Wholesale | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ (892) | (1,363) |
Mainland China | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 80.00% | |
Mainland China | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 10.00% | |
Mainland China | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 8.00% | |
Mainland China | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 2.00% | |
Mainland China | Gross carrying/ nominal amount | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 124,547 | 118,163 |
Mainland China | Allowance for ECL | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | (98) | (116) |
Mainland China | Allowance for ECL | Wholesale | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (75) | (93) |
Mainland China | Allowance for ECL | Wholesale | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (16) | (28) |
Mainland China | Allowance for ECL | Wholesale | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (224) | (252) |
Mainland China | Allowance for ECL | Wholesale | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ (1,192) | (1,158) |
Canada | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 70.00% | |
Canada | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 10.00% | |
Canada | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 10.00% | |
Canada | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 10.00% | |
Canada | Gross carrying/ nominal amount | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 84,398 | 85,720 |
Canada | Allowance for ECL | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | (146) | (183) |
Canada | Allowance for ECL | Wholesale | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (115) | (140) |
Canada | Allowance for ECL | Wholesale | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (66) | (82) |
Canada | Allowance for ECL | Wholesale | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (176) | (253) |
Canada | Allowance for ECL | Wholesale | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ (361) | (528) |
Mexico | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 65.00% | |
Mexico | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 5.00% | |
Mexico | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 25.00% | |
Mexico | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 5.00% | |
Mexico | Gross carrying/ nominal amount | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 24,971 | 25,920 |
Mexico | Allowance for ECL | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | (180) | (246) |
Mexico | Allowance for ECL | Wholesale | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (161) | (222) |
Mexico | Allowance for ECL | Wholesale | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (123) | (177) |
Mexico | Allowance for ECL | Wholesale | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (210) | (285) |
Mexico | Allowance for ECL | Wholesale | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ (358) | (437) |
UAE | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 65.00% | |
UAE | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 5.00% | |
UAE | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 25.00% | |
UAE | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 5.00% | |
UAE | Gross carrying/ nominal amount | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 45,997 | 44,777 |
UAE | Allowance for ECL | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | (201) | (250) |
UAE | Allowance for ECL | Wholesale | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (164) | (241) |
UAE | Allowance for ECL | Wholesale | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (119) | (190) |
UAE | Allowance for ECL | Wholesale | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (257) | (330) |
UAE | Allowance for ECL | Wholesale | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ (607) | (536) |
France | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 45.00% | |
France | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 5.00% | |
France | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 35.00% | |
France | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Probability | 15.00% | |
France | Gross carrying/ nominal amount | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 197,175 | 164,899 |
France | Allowance for ECL | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | (133) | (117) |
France | Allowance for ECL | Wholesale | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (115) | (109) |
France | Allowance for ECL | Wholesale | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (107) | (97) |
France | Allowance for ECL | Wholesale | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (147) | (131) |
France | Allowance for ECL | Wholesale | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ (233) | $ (238) |
Report of the directors fina_14
Report of the directors financial review risk report - Retail analysis (Details) - Retail - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Allowance for ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ (3,900) | $ (4,500) |
UK | Gross carrying/ nominal amount | Mortgages | ||
Disclosure of financial assets [line items] | ||
Financial assets | 151,435 | 146,478 |
UK | Gross carrying/ nominal amount | Credit cards | ||
Disclosure of financial assets [line items] | ||
Financial assets | 7,563 | 7,869 |
UK | Gross carrying/ nominal amount | Other financial assets measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 8,460 | 9,164 |
UK | Allowance for ECL | Mortgages | ||
Disclosure of financial assets [line items] | ||
Financial assets | (205) | (197) |
UK | Allowance for ECL | Mortgages | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (199) | (182) |
UK | Allowance for ECL | Mortgages | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (193) | (172) |
UK | Allowance for ECL | Mortgages | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (210) | (205) |
UK | Allowance for ECL | Mortgages | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (221) | (221) |
UK | Allowance for ECL | Credit cards | ||
Disclosure of financial assets [line items] | ||
Financial assets | (678) | (857) |
UK | Allowance for ECL | Credit cards | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (625) | (774) |
UK | Allowance for ECL | Credit cards | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (533) | (589) |
UK | Allowance for ECL | Credit cards | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (767) | (904) |
UK | Allowance for ECL | Credit cards | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (945) | (1,084) |
UK | Allowance for ECL | Other financial assets measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | (713) | (897) |
UK | Allowance for ECL | Other financial assets measured at amortised cost | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (631) | (795) |
UK | Allowance for ECL | Other financial assets measured at amortised cost | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (534) | (471) |
UK | Allowance for ECL | Other financial assets measured at amortised cost | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (779) | (1,022) |
UK | Allowance for ECL | Other financial assets measured at amortised cost | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (934) | (1,165) |
Mexico | Gross carrying/ nominal amount | Mortgages | ||
Disclosure of financial assets [line items] | ||
Financial assets | 4,427 | 3,896 |
Mexico | Gross carrying/ nominal amount | Credit cards | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,044 | 1,113 |
Mexico | Gross carrying/ nominal amount | Other financial assets measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 2,626 | 2,549 |
Mexico | Allowance for ECL | Mortgages | ||
Disclosure of financial assets [line items] | ||
Financial assets | (112) | (111) |
Mexico | Allowance for ECL | Mortgages | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (104) | (101) |
Mexico | Allowance for ECL | Mortgages | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (93) | (79) |
Mexico | Allowance for ECL | Mortgages | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (125) | (136) |
Mexico | Allowance for ECL | Mortgages | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (142) | (167) |
Mexico | Allowance for ECL | Credit cards | ||
Disclosure of financial assets [line items] | ||
Financial assets | (180) | (260) |
Mexico | Allowance for ECL | Credit cards | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (175) | (255) |
Mexico | Allowance for ECL | Credit cards | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (163) | (243) |
Mexico | Allowance for ECL | Credit cards | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (198) | (269) |
Mexico | Allowance for ECL | Credit cards | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (214) | (290) |
Mexico | Allowance for ECL | Other financial assets measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | (395) | (436) |
Mexico | Allowance for ECL | Other financial assets measured at amortised cost | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (380) | (428) |
Mexico | Allowance for ECL | Other financial assets measured at amortised cost | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (357) | (411) |
Mexico | Allowance for ECL | Other financial assets measured at amortised cost | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (412) | (451) |
Mexico | Allowance for ECL | Other financial assets measured at amortised cost | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (437) | (491) |
Hong Kong | Gross carrying/ nominal amount | Mortgages | ||
Disclosure of financial assets [line items] | ||
Financial assets | 93,283 | 89,943 |
Hong Kong | Gross carrying/ nominal amount | Credit cards | ||
Disclosure of financial assets [line items] | ||
Financial assets | 7,414 | 7,422 |
Hong Kong | Gross carrying/ nominal amount | Other financial assets measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 5,787 | 6,020 |
Hong Kong | Allowance for ECL | Mortgages | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Hong Kong | Allowance for ECL | Mortgages | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Hong Kong | Allowance for ECL | Mortgages | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Hong Kong | Allowance for ECL | Mortgages | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Hong Kong | Allowance for ECL | Mortgages | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | 0 | 0 |
Hong Kong | Allowance for ECL | Credit cards | ||
Disclosure of financial assets [line items] | ||
Financial assets | (244) | (266) |
Hong Kong | Allowance for ECL | Credit cards | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (231) | (259) |
Hong Kong | Allowance for ECL | Credit cards | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (213) | (247) |
Hong Kong | Allowance for ECL | Credit cards | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (269) | (277) |
Hong Kong | Allowance for ECL | Credit cards | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (384) | (405) |
Hong Kong | Allowance for ECL | Other financial assets measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | (102) | (112) |
Hong Kong | Allowance for ECL | Other financial assets measured at amortised cost | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (96) | (105) |
Hong Kong | Allowance for ECL | Other financial assets measured at amortised cost | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (89) | (102) |
Hong Kong | Allowance for ECL | Other financial assets measured at amortised cost | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (119) | (115) |
Hong Kong | Allowance for ECL | Other financial assets measured at amortised cost | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (141) | (130) |
UAE | Gross carrying/ nominal amount | Mortgages | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,902 | 1,889 |
UAE | Gross carrying/ nominal amount | Credit cards | ||
Disclosure of financial assets [line items] | ||
Financial assets | 395 | 426 |
UAE | Gross carrying/ nominal amount | Other financial assets measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 613 | 683 |
UAE | Allowance for ECL | Mortgages | ||
Disclosure of financial assets [line items] | ||
Financial assets | (55) | (66) |
UAE | Allowance for ECL | Mortgages | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (52) | (63) |
UAE | Allowance for ECL | Mortgages | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (44) | (53) |
UAE | Allowance for ECL | Mortgages | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (60) | (73) |
UAE | Allowance for ECL | Mortgages | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (64) | (78) |
UAE | Allowance for ECL | Credit cards | ||
Disclosure of financial assets [line items] | ||
Financial assets | (73) | (92) |
UAE | Allowance for ECL | Credit cards | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (66) | (81) |
UAE | Allowance for ECL | Credit cards | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (61) | (62) |
UAE | Allowance for ECL | Credit cards | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (80) | (107) |
UAE | Allowance for ECL | Credit cards | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (95) | (126) |
UAE | Allowance for ECL | Other financial assets measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | (28) | (38) |
UAE | Allowance for ECL | Other financial assets measured at amortised cost | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (28) | (37) |
UAE | Allowance for ECL | Other financial assets measured at amortised cost | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (26) | (33) |
UAE | Allowance for ECL | Other financial assets measured at amortised cost | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (29) | (41) |
UAE | Allowance for ECL | Other financial assets measured at amortised cost | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (31) | (46) |
France | Gross carrying/ nominal amount | Mortgages | ||
Disclosure of financial assets [line items] | ||
Financial assets | 23,583 | 24,565 |
France | Gross carrying/ nominal amount | Other financial assets measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,668 | 1,725 |
France | Allowance for ECL | Mortgages | ||
Disclosure of financial assets [line items] | ||
Financial assets | (61) | (68) |
France | Allowance for ECL | Mortgages | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (60) | (68) |
France | Allowance for ECL | Mortgages | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (60) | (68) |
France | Allowance for ECL | Mortgages | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (61) | (69) |
France | Allowance for ECL | Mortgages | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (62) | (70) |
France | Allowance for ECL | Other financial assets measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | (75) | (88) |
France | Allowance for ECL | Other financial assets measured at amortised cost | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (75) | (87) |
France | Allowance for ECL | Other financial assets measured at amortised cost | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (74) | (85) |
France | Allowance for ECL | Other financial assets measured at amortised cost | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (76) | (88) |
France | Allowance for ECL | Other financial assets measured at amortised cost | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (77) | (91) |
US | Gross carrying/ nominal amount | Mortgages | ||
Disclosure of financial assets [line items] | ||
Financial assets | 15,283 | 15,399 |
US | Gross carrying/ nominal amount | Credit cards | ||
Disclosure of financial assets [line items] | ||
Financial assets | 938 | 570 |
US | Allowance for ECL | Mortgages | ||
Disclosure of financial assets [line items] | ||
Financial assets | (41) | (41) |
US | Allowance for ECL | Mortgages | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (41) | (39) |
US | Allowance for ECL | Mortgages | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (40) | (38) |
US | Allowance for ECL | Mortgages | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (42) | (41) |
US | Allowance for ECL | Mortgages | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (48) | (53) |
US | Allowance for ECL | Credit cards | ||
Disclosure of financial assets [line items] | ||
Financial assets | (162) | (86) |
US | Allowance for ECL | Credit cards | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (161) | (84) |
US | Allowance for ECL | Credit cards | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (160) | (81) |
US | Allowance for ECL | Credit cards | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (164) | (88) |
US | Allowance for ECL | Credit cards | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (178) | (119) |
Canada | Gross carrying/ nominal amount | Mortgages | ||
Disclosure of financial assets [line items] | ||
Financial assets | 24,681 | 22,454 |
Canada | Gross carrying/ nominal amount | Credit cards | ||
Disclosure of financial assets [line items] | ||
Financial assets | 232 | 260 |
Canada | Gross carrying/ nominal amount | Other financial assets measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,699 | 1,775 |
Canada | Allowance for ECL | Mortgages | ||
Disclosure of financial assets [line items] | ||
Financial assets | (31) | (31) |
Canada | Allowance for ECL | Mortgages | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (30) | (30) |
Canada | Allowance for ECL | Mortgages | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (27) | (29) |
Canada | Allowance for ECL | Mortgages | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (32) | (31) |
Canada | Allowance for ECL | Mortgages | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (38) | (36) |
Canada | Allowance for ECL | Credit cards | ||
Disclosure of financial assets [line items] | ||
Financial assets | (10) | (9) |
Canada | Allowance for ECL | Credit cards | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (10) | (9) |
Canada | Allowance for ECL | Credit cards | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (10) | (8) |
Canada | Allowance for ECL | Credit cards | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (10) | (9) |
Canada | Allowance for ECL | Credit cards | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (10) | (9) |
Canada | Allowance for ECL | Other financial assets measured at amortised cost | ||
Disclosure of financial assets [line items] | ||
Financial assets | (21) | (22) |
Canada | Allowance for ECL | Other financial assets measured at amortised cost | Central scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (21) | (21) |
Canada | Allowance for ECL | Other financial assets measured at amortised cost | Upside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (20) | (20) |
Canada | Allowance for ECL | Other financial assets measured at amortised cost | Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | (23) | (24) |
Canada | Allowance for ECL | Other financial assets measured at amortised cost | Additional Downside scenario ECL | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ (25) | $ (28) |
Report of the directors fina_15
Report of the directors financial review risk report - Group ECL sensitivity results (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Central scenario ECL | UK | ||
Disclosure of financial assets [line items] | ||
Probability | 50.00% | |
Upside scenario ECL | UK | ||
Disclosure of financial assets [line items] | ||
Probability | 5.00% | |
Downside scenario ECL | UK | ||
Disclosure of financial assets [line items] | ||
Probability | 30.00% | |
Downside scenario ECL | Maximum | UK | ||
Disclosure of financial assets [line items] | ||
Probability | 100.00% | |
Additional Downside scenario ECL | UK | ||
Disclosure of financial assets [line items] | ||
Probability | 15.00% | |
Additional Downside scenario ECL | Maximum | UK | ||
Disclosure of financial assets [line items] | ||
Probability | 100.00% | |
Allowance for ECL | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | $ 2,000 | $ 1,300 |
Allowance for ECL | Retail | ||
Disclosure of financial assets [line items] | ||
Financial assets | 3,900 | 4,500 |
Increase (decrease) in financial assets | 1,300 | 1,500 |
Allowance for ECL | Retail | Central scenario ECL | Maximum | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | (200) | (300) |
Allowance for ECL | Retail | Upside scenario ECL | Maximum | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | (500) | (1,000) |
Allowance for ECL | Retail | Downside scenario ECL | Maximum | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | 300 | 300 |
Allowance for ECL | Retail | Downside scenario ECL | Maximum | UK | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | 200 | |
Allowance for ECL | Retail | Additional Downside scenario ECL | Maximum | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | 1,100 | 1,300 |
Allowance for ECL | Retail | Additional Downside scenario ECL | Maximum | UK | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | 500 | |
Allowance for ECL | Wholesale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 3,700 | 4,500 |
Increase (decrease) in financial assets | 700 | (200) |
Allowance for ECL | Wholesale | UK | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,740 | 2,077 |
Allowance for ECL | Wholesale | Central scenario ECL | UK | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,433 | 1,514 |
Allowance for ECL | Wholesale | Central scenario ECL | Maximum | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | (600) | (900) |
Allowance for ECL | Wholesale | Upside scenario ECL | UK | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,083 | 1,026 |
Allowance for ECL | Wholesale | Upside scenario ECL | Maximum | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | (1,400) | (2,000) |
Allowance for ECL | Wholesale | Downside scenario ECL | UK | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,888 | 2,271 |
Allowance for ECL | Wholesale | Downside scenario ECL | Maximum | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | 700 | 1,000 |
Allowance for ECL | Wholesale | Downside scenario ECL | Maximum | UK | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | 100 | |
Allowance for ECL | Wholesale | Additional Downside scenario ECL | UK | ||
Disclosure of financial assets [line items] | ||
Financial assets | 2,949 | 3,869 |
Allowance for ECL | Wholesale | Additional Downside scenario ECL | Maximum | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | 4,500 | $ 5,900 |
Allowance for ECL | Wholesale | Additional Downside scenario ECL | Maximum | UK | ||
Disclosure of financial assets [line items] | ||
Increase (decrease) in financial assets | $ 1,200 |
Report of the directors fina_16
Report of the directors financial review risk report - Reconciliation of gross carrying/notional amount and allow. for loans and advances to banks and customers incl. loan commitments and financial guarantees (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | |
Other financial assets measured at amortised cost | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | $ 88,639 | |||
Financial assets, ending balance | 84,574 | $ 88,639 | ||
Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 391,762 | |||
Financial assets, ending balance | 343,379 | 391,762 | ||
Other financial assets measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 772,233 | |||
Financial assets, ending balance | 854,280 | 772,233 | ||
Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Other financial assets measured at amortised cost | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 76,882 | |||
Financial assets, ending balance | 76,489 | 76,882 | ||
12-month expected credit losses | Non-credit impaired | Other financial assets measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 768,136 | |||
Financial assets, ending balance | 848,848 | 768,136 | ||
12-month expected credit losses | Non-credit impaired | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 390,105 | |||
Financial assets, ending balance | 341,205 | 390,105 | ||
Lifetime expected credit losses | Non-credit impaired | Other financial assets measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 3,931 | |||
Financial assets, ending balance | 5,162 | 3,931 | ||
Lifetime expected credit losses | Non-credit impaired | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 1,384 | |||
Financial assets, ending balance | 1,931 | 1,384 | ||
Lifetime expected credit losses | Credit impaired | Other financial assets measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 135 | |||
Financial assets, ending balance | 237 | 135 | ||
Lifetime expected credit losses | Credit impaired | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 234 | |||
Financial assets, ending balance | 202 | 234 | ||
Lifetime expected credit losses | POCI | Other financial assets measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 31 | |||
Financial assets, ending balance | 33 | 31 | ||
Lifetime expected credit losses | POCI | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 39 | |||
Financial assets, ending balance | 41 | 39 | ||
Gross carrying/ nominal amount | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 1,906,543 | |||
Financial assets, ending balance | 2,013,784 | 1,906,543 | ||
Gross carrying/ nominal amount | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 391,903 | |||
Financial assets, ending balance | 343,490 | 391,903 | ||
Gross carrying/ nominal amount | Financial instruments including loan commitments and financial guarantees | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 2,584,710 | |||
Financial assets, ending balance | 2,702,431 | 2,584,710 | ||
Gross carrying/ nominal amount | Loans and advances to bank and customers including loan commitments and financial guarantees | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 1,750,586 | $ 1,681,844 | 1,681,844 | |
New financial assets originated or purchased | 224,125 | 437,861 | ||
Assets derecognised (including final repayments) | (160,349) | (354,209) | ||
Changes to risk parameters – further lending/repayments | (29,748) | (54,702) | ||
Assets written off | (1,365) | (2,976) | ||
Credit-related modifications that resulted in derecognition | (1) | (23) | ||
Foreign exchange | (3,314) | 42,568 | ||
Other | (207) | 223 | ||
Financial assets, ending balance | 1,779,727 | $ 1,681,844 | 1,750,586 | |
Gross carrying/ nominal amount | Other financial assets measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 772,408 | |||
Financial assets, ending balance | 854,504 | 772,408 | ||
Gross carrying/ nominal amount | Non-trading reverse purchase agreement commitments | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 61,716 | |||
Financial assets, ending balance | 68,200 | 61,716 | ||
Gross carrying/ nominal amount | Non-trading reverse purchase agreement commitments | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 230,628 | |||
Financial assets, ending balance | 201,714 | 230,628 | ||
Gross carrying/ nominal amount | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 399,717 | |||
Financial assets, ending balance | 348,107 | 399,717 | ||
Gross carrying/ nominal amount | 12-month expected credit losses | Non-credit impaired | Loans and advances to bank and customers including loan commitments and financial guarantees | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 1,506,451 | 1,561,613 | 1,561,613 | |
Transfers of financial instruments: | (9,572) | (129,236) | ||
– transfers from stage 1 to stage 2 | (88,050) | (298,725) | ||
– transfers from stage 2 to stage 1 | 79,249 | 172,894 | ||
– transfers to stage 3 | (1,092) | (3,942) | ||
– transfers from stage 3 | 321 | 537 | ||
New financial assets originated or purchased | 224,124 | 437,836 | ||
Assets derecognised (including final repayments) | (143,261) | (313,347) | ||
Changes to risk parameters – further lending/repayments | (25,456) | (83,147) | ||
Foreign exchange | (3,130) | 32,808 | ||
Other | (180) | (76) | ||
Financial assets, ending balance | 1,548,976 | 1,561,613 | 1,506,451 | |
Gross carrying/ nominal amount | 12-month expected credit losses | Non-credit impaired | Other financial assets measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 768,216 | |||
Financial assets, ending balance | 848,978 | 768,216 | ||
Gross carrying/ nominal amount | 12-month expected credit losses | Non-credit impaired | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 390,193 | |||
Financial assets, ending balance | 341,270 | 390,193 | ||
Gross carrying/ nominal amount | Lifetime expected credit losses | Non-credit impaired | Loans and advances to bank and customers including loan commitments and financial guarantees | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 223,432 | 105,551 | 105,551 | |
Transfers of financial instruments: | 6,141 | 116,783 | ||
– transfers from stage 1 to stage 2 | 88,050 | 298,725 | ||
– transfers from stage 2 to stage 1 | (79,249) | (172,894) | ||
– transfers to stage 3 | (3,248) | (10,320) | ||
– transfers from stage 3 | 588 | 1,272 | ||
Assets derecognised (including final repayments) | (15,521) | (37,409) | ||
Changes to risk parameters – further lending/repayments | (3,440) | 29,092 | ||
Foreign exchange | (91) | 9,123 | ||
Other | (20) | 292 | ||
Financial assets, ending balance | 210,501 | 105,551 | 223,432 | |
Gross carrying/ nominal amount | Lifetime expected credit losses | Non-credit impaired | Other financial assets measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 3,975 | |||
Financial assets, ending balance | 5,200 | 3,975 | ||
Gross carrying/ nominal amount | Lifetime expected credit losses | Non-credit impaired | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 1,404 | |||
Financial assets, ending balance | 1,946 | 1,404 | ||
Gross carrying/ nominal amount | Lifetime expected credit losses | Credit impaired | Loans and advances to bank and customers including loan commitments and financial guarantees | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 20,424 | 14,335 | 14,335 | |
Transfers of financial instruments: | 3,431 | 12,453 | ||
– transfers to stage 3 | 4,340 | 14,262 | ||
– transfers from stage 3 | (909) | (1,809) | ||
Assets derecognised (including final repayments) | (1,559) | (3,430) | ||
Changes to risk parameters – further lending/repayments | (808) | (597) | ||
Assets written off | (1,356) | (2,946) | ||
Credit-related modifications that resulted in derecognition | (1) | (23) | ||
Foreign exchange | (92) | 633 | ||
Other | (7) | (1) | ||
Financial assets, ending balance | 20,032 | 14,335 | 20,424 | |
Gross carrying/ nominal amount | Lifetime expected credit losses | Credit impaired | Other financial assets measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 177 | |||
Financial assets, ending balance | 284 | 177 | ||
Gross carrying/ nominal amount | Lifetime expected credit losses | Credit impaired | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 257 | |||
Financial assets, ending balance | 226 | 257 | ||
Gross carrying/ nominal amount | Lifetime expected credit losses | POCI | Loans and advances to bank and customers including loan commitments and financial guarantees | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 279 | 345 | 345 | |
New financial assets originated or purchased | 1 | 25 | ||
Assets derecognised (including final repayments) | (8) | (23) | ||
Changes to risk parameters – further lending/repayments | (44) | (50) | ||
Assets written off | (9) | (30) | ||
Foreign exchange | (1) | 4 | ||
Other | 8 | |||
Financial assets, ending balance | 218 | 345 | 279 | |
Gross carrying/ nominal amount | Lifetime expected credit losses | POCI | Other financial assets measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 40 | |||
Financial assets, ending balance | 42 | 40 | ||
Gross carrying/ nominal amount | Lifetime expected credit losses | POCI | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 49 | |||
Financial assets, ending balance | 48 | 49 | ||
Allowance for ECL | ||||
Increase (decrease) in financial assets [abstract] | ||||
Increase in financial assets | (2,000) | (1,300) | ||
Allowance for ECL | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (15,700) | |||
Foreign exchange | (100) | |||
Financial assets, ending balance | (13,800) | (15,700) | ||
ECL income statement change for the period | 719 | |||
Increase in financial assets | (1,900) | |||
Allowance for ECL | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (14,707) | |||
Financial assets, ending balance | (13,107) | (14,707) | ||
Allowance for ECL | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (141) | |||
Financial assets, ending balance | (111) | (141) | ||
Allowance for ECL | Financial instruments including loan commitments and financial guarantees | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (15,707) | |||
Financial assets, ending balance | (13,812) | (15,707) | ||
Total ECL income statement change for the period | 719 | (8,817) | ||
Allowance for ECL | Financial instruments including loan commitments and financial guarantees | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (15,566) | |||
Financial assets, ending balance | (13,701) | (15,566) | ||
Total ECL income statement change for the period | 693 | (8,769) | ||
Allowance for ECL | Loans and advances to bank and customers including loan commitments and financial guarantees | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (15,391) | (9,125) | (9,125) | |
Net remeasurement of ECL arising from transfer of stage | 293 | (1,001) | ||
New financial assets originated or purchased | (268) | (654) | ||
Assets derecognised (including final repayments) | 580 | 1,111 | ||
Changes to risk parameters – further lending/repayments | 922 | 488 | ||
Change in risk parameters – credit quality | 989 | (9,199) | ||
Changes to models used for ECL calculation | 0 | 433 | ||
Assets written off | 1,353 | 2,974 | ||
Credit-related modifications that resulted in derecognition | 7 | |||
Foreign exchange | 9 | (436) | ||
Other | 14 | 11 | ||
Financial assets, ending balance | (13,477) | (9,125) | (15,391) | |
ECL income statement change for the period | 538 | (8,822) | ||
Recoveries | 209 | 326 | ||
Other | (41) | (84) | ||
Total ECL income statement change for the period | 706 | (6,464) | (2,116) | (8,580) |
Increase in financial assets | (1,914) | |||
Increase relating to volume movements | 1,234 | |||
Exchange and other movements | 23 | |||
Allowance for ECL | Other financial assets measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (175) | |||
Financial assets, ending balance | (224) | (175) | ||
ECL income statement change for the period | (56) | |||
Total ECL income statement change for the period | (56) | (95) | ||
Allowance for ECL | Non-trading reverse purchase agreement commitments | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | 0 | |||
Financial assets, ending balance | 0 | 0 | ||
Allowance for ECL | Performance and other guarantees | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Total ECL income statement change for the period | 43 | (94) | ||
Allowance for ECL | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (141) | |||
Financial assets, ending balance | (111) | (141) | ||
Total ECL income statement change for the period | 26 | (48) | ||
Allowance for ECL | 12-month expected credit losses | Non-credit impaired | Loans and advances to bank and customers including loan commitments and financial guarantees | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (2,331) | (1,464) | (1,464) | |
Transfers of financial instruments: | (993) | (1,122) | ||
– transfers from stage 1 to stage 2 | 273 | 947 | ||
– transfers from stage 2 to stage 1 | (1,239) | (2,073) | ||
– transfers to stage 3 | 18 | 30 | ||
– transfers from stage 3 | (45) | (26) | ||
Net remeasurement of ECL arising from transfer of stage | 625 | 907 | ||
New financial assets originated or purchased | (268) | (653) | ||
Assets derecognised (including final repayments) | 82 | 160 | ||
Changes to risk parameters – further lending/repayments | 285 | 157 | ||
Change in risk parameters – credit quality | 609 | (408) | ||
Changes to models used for ECL calculation | 12 | 134 | ||
Foreign exchange | (7) | (47) | ||
Other | 7 | 5 | ||
Financial assets, ending balance | (1,979) | (1,464) | (2,331) | |
ECL income statement change for the period | 1,345 | 297 | ||
Allowance for ECL | 12-month expected credit losses | Non-credit impaired | Other financial assets measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (80) | |||
Financial assets, ending balance | (130) | (80) | ||
Allowance for ECL | 12-month expected credit losses | Non-credit impaired | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (88) | |||
Financial assets, ending balance | (65) | (88) | ||
Allowance for ECL | Lifetime expected credit losses | Non-credit impaired | Loans and advances to bank and customers including loan commitments and financial guarantees | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (5,403) | (2,441) | (2,441) | |
Transfers of financial instruments: | 1,411 | 1,951 | ||
– transfers from stage 1 to stage 2 | (273) | (947) | ||
– transfers from stage 2 to stage 1 | 1,239 | 2,073 | ||
– transfers to stage 3 | 522 | 986 | ||
– transfers from stage 3 | (77) | (161) | ||
Net remeasurement of ECL arising from transfer of stage | (320) | (1,158) | ||
Assets derecognised (including final repayments) | 258 | 464 | ||
Changes to risk parameters – further lending/repayments | 285 | 85 | ||
Change in risk parameters – credit quality | (397) | (4,374) | ||
Changes to models used for ECL calculation | (12) | 294 | ||
Foreign exchange | (19) | (223) | ||
Other | 5 | (1) | ||
Financial assets, ending balance | (4,192) | (2,441) | (5,403) | |
ECL income statement change for the period | (186) | (4,689) | ||
Allowance for ECL | Lifetime expected credit losses | Non-credit impaired | Other financial assets measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (44) | |||
Financial assets, ending balance | (38) | (44) | ||
Allowance for ECL | Lifetime expected credit losses | Non-credit impaired | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (20) | |||
Financial assets, ending balance | (15) | (20) | ||
Allowance for ECL | Lifetime expected credit losses | Credit impaired | Loans and advances to bank and customers including loan commitments and financial guarantees | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (7,544) | (5,121) | (5,121) | |
Transfers of financial instruments: | (418) | (829) | ||
– transfers to stage 3 | (540) | (1,016) | ||
– transfers from stage 3 | 122 | 187 | ||
Net remeasurement of ECL arising from transfer of stage | (12) | (750) | ||
Assets derecognised (including final repayments) | 234 | 485 | ||
Changes to risk parameters – further lending/repayments | 348 | 248 | ||
Change in risk parameters – credit quality | (1,229) | (4,378) | ||
Changes to models used for ECL calculation | 0 | 5 | ||
Assets written off | 1,352 | 2,944 | ||
Credit-related modifications that resulted in derecognition | 7 | |||
Foreign exchange | 35 | (163) | ||
Other | 2 | 8 | ||
Financial assets, ending balance | (7,232) | (5,121) | (7,544) | |
ECL income statement change for the period | (659) | (4,390) | ||
Allowance for ECL | Lifetime expected credit losses | Credit impaired | Other financial assets measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (42) | |||
Financial assets, ending balance | (47) | (42) | ||
Allowance for ECL | Lifetime expected credit losses | Credit impaired | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (23) | |||
Financial assets, ending balance | (24) | (23) | ||
Allowance for ECL | Lifetime expected credit losses | POCI | Loans and advances to bank and customers including loan commitments and financial guarantees | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (113) | $ (99) | (99) | |
New financial assets originated or purchased | (1) | |||
Assets derecognised (including final repayments) | 6 | 2 | ||
Changes to risk parameters – further lending/repayments | 4 | (2) | ||
Change in risk parameters – credit quality | 28 | (39) | ||
Assets written off | 1 | 30 | ||
Foreign exchange | (3) | |||
Other | (1) | |||
Financial assets, ending balance | (74) | $ (99) | (113) | |
ECL income statement change for the period | 38 | (40) | ||
Allowance for ECL | Lifetime expected credit losses | POCI | Other financial assets measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (9) | |||
Financial assets, ending balance | (9) | (9) | ||
Allowance for ECL | Lifetime expected credit losses | POCI | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | ||||
Increase (decrease) in financial assets [abstract] | ||||
Financial assets, beginning balance | (10) | |||
Financial assets, ending balance | $ (7) | $ (10) |
Report of the directors fina_17
Report of the directors financial review risk report - Distribution of financial instruments to which the impairment requirements in IFRS 9 are applied, by credit quality and stage allocation (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets and off-balance sheet loan commitments | $ 2,688,730 | $ 2,569,144 |
Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 688,647 | 678,167 |
Financial assets and off-balance sheet loan commitments | 2,702,431 | 2,584,710 |
Allowance for ECL | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (13,800) | (15,700) |
Off-balance sheet commitments | (594) | (859) |
Financial assets and off-balance sheet loan commitments | (13,701) | (15,566) |
Loans and advances to customers at amortised cost | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 1,059,511 | 1,037,987 |
Loans and advances to banks at amortised cost | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 86,886 | 81,616 |
Loans and other credit-related commitments | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 660,843 | 659,049 |
Loans and other credit-related commitments | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 661,373 | 659,783 |
Loans and other credit-related commitments | Allowance for ECL | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | (530) | (734) |
Loans and other credit-related commitments | 12-month expected credit losses | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 612,785 | 604,195 |
Loans and other credit-related commitments | 12-month expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 612,969 | 604,485 |
Loans and other credit-related commitments | 12-month expected credit losses | Allowance for ECL | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | (184) | (290) |
Loans and other credit-related commitments | Lifetime expected credit losses | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 47,392 | 53,852 |
Loans and other credit-related commitments | Lifetime expected credit losses | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 664 | 1,002 |
Loans and other credit-related commitments | Lifetime expected credit losses | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 2 | 0 |
Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 47,658 | 54,217 |
Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 744 | 1,080 |
Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 2 | 1 |
Loans and other credit-related commitments | Lifetime expected credit losses | Allowance for ECL | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | (266) | (365) |
Loans and other credit-related commitments | Lifetime expected credit losses | Allowance for ECL | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | (80) | (78) |
Loans and other credit-related commitments | Lifetime expected credit losses | Allowance for ECL | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | (1) |
Financial guarantees | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 27,210 | 18,259 |
Financial guarantees | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 27,274 | 18,384 |
Financial guarantees | Allowance for ECL | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | (64) | (125) |
Financial guarantees | 12-month expected credit losses | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 23,152 | 14,053 |
Financial guarantees | 12-month expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 23,169 | 14,090 |
Financial guarantees | 12-month expected credit losses | Allowance for ECL | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | (17) | (37) |
Financial guarantees | Lifetime expected credit losses | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 3,853 | 3,962 |
Financial guarantees | Lifetime expected credit losses | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 204 | 243 |
Financial guarantees | Lifetime expected credit losses | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 1 | 1 |
Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 3,883 | 4,024 |
Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 221 | 269 |
Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 1 | 1 |
Financial guarantees | Lifetime expected credit losses | Allowance for ECL | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | (30) | (62) |
Financial guarantees | Lifetime expected credit losses | Allowance for ECL | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | (17) | (26) |
Financial guarantees | Lifetime expected credit losses | Allowance for ECL | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Debt instruments measured at amortised cost | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 84,574 | 88,639 |
Debt instruments measured at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 2,013,784 | 1,906,543 |
Debt instruments measured at amortised cost | Allowance for ECL | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (13,107) | (14,707) |
Debt instruments measured at amortised cost | Loans and advances to customers at amortised cost | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 1,059,511 | 1,037,987 |
Debt instruments measured at amortised cost | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 1,072,375 | 1,052,477 |
Debt instruments measured at amortised cost | Loans and advances to customers at amortised cost | Allowance for ECL | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (12,864) | (14,490) |
Debt instruments measured at amortised cost | Loans and advances to banks at amortised cost | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 86,886 | 81,616 |
Debt instruments measured at amortised cost | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 86,905 | 81,658 |
Debt instruments measured at amortised cost | Loans and advances to banks at amortised cost | Allowance for ECL | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (19) | (42) |
Debt instruments measured at amortised cost | Other financial assets measured at amortised cost | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 854,280 | 772,233 |
Debt instruments measured at amortised cost | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 854,504 | 772,408 |
Debt instruments measured at amortised cost | Other financial assets measured at amortised cost | Allowance for ECL | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (224) | (175) |
Debt instruments measured at amortised cost | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 76,489 | 76,882 |
Debt instruments measured at amortised cost | 12-month expected credit losses | Loans and advances to customers at amortised cost | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 893,776 | 867,946 |
Debt instruments measured at amortised cost | 12-month expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 895,546 | 869,920 |
Debt instruments measured at amortised cost | 12-month expected credit losses | Loans and advances to customers at amortised cost | Allowance for ECL | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (1,770) | (1,974) |
Debt instruments measured at amortised cost | 12-month expected credit losses | Loans and advances to banks at amortised cost | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 85,470 | 79,621 |
Debt instruments measured at amortised cost | 12-month expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 85,486 | 79,654 |
Debt instruments measured at amortised cost | 12-month expected credit losses | Loans and advances to banks at amortised cost | Allowance for ECL | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (16) | (33) |
Debt instruments measured at amortised cost | 12-month expected credit losses | Other financial assets measured at amortised cost | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 848,848 | 768,136 |
Debt instruments measured at amortised cost | 12-month expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 848,978 | 768,216 |
Debt instruments measured at amortised cost | 12-month expected credit losses | Other financial assets measured at amortised cost | Allowance for ECL | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (130) | (80) |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 153,656 | 158,220 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 11,938 | 11,656 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 141 | 165 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 157,544 | 163,185 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 19,069 | 19,095 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 216 | 277 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Allowance for ECL | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (3,888) | (4,965) |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Allowance for ECL | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (7,131) | (7,439) |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Allowance for ECL | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (75) | (112) |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 1,416 | 1,995 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 1,419 | 2,004 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Allowance for ECL | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (3) | (9) |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Allowance for ECL | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Allowance for ECL | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 5,162 | 3,931 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 237 | 135 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 33 | 31 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 5,200 | 3,975 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 284 | 177 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 42 | 40 |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Allowance for ECL | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (38) | (44) |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Allowance for ECL | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (47) | (42) |
Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Allowance for ECL | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (9) | (9) |
Debt instruments at FVOCI | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 343,379 | 391,762 |
Debt instruments at FVOCI | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 343,490 | 391,903 |
Debt instruments at FVOCI | Allowance for ECL | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (111) | (141) |
Debt instruments at FVOCI | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 348,107 | 399,717 |
Debt instruments at FVOCI | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Allowance for ECL | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (111) | (141) |
Debt instruments at FVOCI | 12-month expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 341,205 | 390,105 |
Debt instruments at FVOCI | 12-month expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 341,270 | 390,193 |
Debt instruments at FVOCI | 12-month expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Allowance for ECL | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (65) | (88) |
Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 1,931 | 1,384 |
Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 202 | 234 |
Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 41 | 39 |
Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 1,946 | 1,404 |
Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 226 | 257 |
Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 48 | 49 |
Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Allowance for ECL | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (15) | (20) |
Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Allowance for ECL | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (24) | (23) |
Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Allowance for ECL | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | (7) | (10) |
Strong | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets and off-balance sheet loan commitments | 1,780,712 | 1,668,047 |
Strong | Loans and other credit-related commitments | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 408,027 | 400,911 |
Strong | Loans and other credit-related commitments | 12-month expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 404,424 | 396,028 |
Strong | Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 3,603 | 4,883 |
Strong | Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Strong | Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Strong | Financial guarantees | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 15,693 | 6,356 |
Strong | Financial guarantees | 12-month expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 15,592 | 6,286 |
Strong | Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 101 | 70 |
Strong | Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Strong | Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Strong | Debt instruments measured at amortised cost | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 528,036 | 506,231 |
Strong | Debt instruments measured at amortised cost | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 77,928 | 71,318 |
Strong | Debt instruments measured at amortised cost | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 751,028 | 683,231 |
Strong | Debt instruments measured at amortised cost | 12-month expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 522,137 | 499,836 |
Strong | Debt instruments measured at amortised cost | 12-month expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 77,739 | 71,126 |
Strong | Debt instruments measured at amortised cost | 12-month expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 750,477 | 682,412 |
Strong | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 5,899 | 6,395 |
Strong | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Strong | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Strong | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 189 | 192 |
Strong | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Strong | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Strong | Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 551 | 819 |
Strong | Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Strong | Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Strong | Debt instruments at FVOCI | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 317,896 | 367,685 |
Strong | Debt instruments at FVOCI | 12-month expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 317,105 | 367,542 |
Strong | Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 791 | 143 |
Strong | Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Strong | Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Good | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets and off-balance sheet loan commitments | 464,381 | 463,117 |
Good | Loans and other credit-related commitments | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 150,779 | 157,339 |
Good | Loans and other credit-related commitments | 12-month expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 139,198 | 143,600 |
Good | Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 11,581 | 13,739 |
Good | Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Good | Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Good | Financial guarantees | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 5,018 | 5,194 |
Good | Financial guarantees | 12-month expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 4,178 | 4,431 |
Good | Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 840 | 763 |
Good | Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Good | Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Good | Debt instruments measured at amortised cost | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 232,101 | 233,320 |
Good | Debt instruments measured at amortised cost | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 4,819 | 5,496 |
Good | Debt instruments measured at amortised cost | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 71,664 | 61,768 |
Good | Debt instruments measured at amortised cost | 12-month expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 204,332 | 199,138 |
Good | Debt instruments measured at amortised cost | 12-month expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 4,662 | 5,098 |
Good | Debt instruments measured at amortised cost | 12-month expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 70,918 | 61,218 |
Good | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 27,769 | 34,182 |
Good | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Good | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Good | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 157 | 398 |
Good | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Good | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Good | Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 746 | 550 |
Good | Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Good | Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Good | Debt instruments at FVOCI | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 13,132 | 12,678 |
Good | Debt instruments at FVOCI | 12-month expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 13,039 | 12,585 |
Good | Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 93 | 93 |
Good | Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Good | Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Satisfactory | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets and off-balance sheet loan commitments | 388,344 | 382,834 |
Satisfactory | Loans and other credit-related commitments | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 91,284 | 90,784 |
Satisfactory | Loans and other credit-related commitments | 12-month expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 67,581 | 63,592 |
Satisfactory | Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 23,703 | 27,192 |
Satisfactory | Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Satisfactory | Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Satisfactory | Financial guarantees | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 5,125 | 5,317 |
Satisfactory | Financial guarantees | 12-month expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 3,151 | 3,163 |
Satisfactory | Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 1,974 | 2,154 |
Satisfactory | Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Satisfactory | Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Satisfactory | Debt instruments measured at amortised cost | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 258,457 | 256,584 |
Satisfactory | Debt instruments measured at amortised cost | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 3,155 | 3,568 |
Satisfactory | Debt instruments measured at amortised cost | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 30,323 | 26,581 |
Satisfactory | Debt instruments measured at amortised cost | 12-month expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 164,251 | 165,507 |
Satisfactory | Debt instruments measured at amortised cost | 12-month expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 3,062 | 3,357 |
Satisfactory | Debt instruments measured at amortised cost | 12-month expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 27,469 | 24,532 |
Satisfactory | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 94,206 | 91,077 |
Satisfactory | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Satisfactory | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Satisfactory | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 93 | 211 |
Satisfactory | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Satisfactory | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Satisfactory | Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 2,854 | 2,049 |
Satisfactory | Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Satisfactory | Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Satisfactory | Debt instruments at FVOCI | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 11,447 | 10,409 |
Satisfactory | Debt instruments at FVOCI | 12-month expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 11,126 | 10,066 |
Satisfactory | Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 321 | 343 |
Satisfactory | Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Satisfactory | Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Sub- standard | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets and off-balance sheet loan commitments | 48,415 | 49,772 |
Sub- standard | Loans and other credit-related commitments | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 10,537 | 9,668 |
Sub- standard | Loans and other credit-related commitments | 12-month expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 1,766 | 1,265 |
Sub- standard | Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 8,771 | 8,403 |
Sub- standard | Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Sub- standard | Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Sub- standard | Financial guarantees | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 1,216 | 1,247 |
Sub- standard | Financial guarantees | 12-month expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 248 | 210 |
Sub- standard | Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 968 | 1,037 |
Sub- standard | Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Sub- standard | Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Sub- standard | Debt instruments measured at amortised cost | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 34,496 | 36,970 |
Sub- standard | Debt instruments measured at amortised cost | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 1,003 | 1,276 |
Sub- standard | Debt instruments measured at amortised cost | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 1,163 | 611 |
Sub- standard | Debt instruments measured at amortised cost | 12-month expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 4,826 | 5,439 |
Sub- standard | Debt instruments measured at amortised cost | 12-month expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 23 | 73 |
Sub- standard | Debt instruments measured at amortised cost | 12-month expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 114 | 54 |
Sub- standard | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 29,670 | 31,531 |
Sub- standard | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Sub- standard | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Sub- standard | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 980 | 1,203 |
Sub- standard | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Sub- standard | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Sub- standard | Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 1,049 | 557 |
Sub- standard | Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Sub- standard | Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Sub- standard | Debt instruments at FVOCI | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 741 | 825 |
Sub- standard | Debt instruments at FVOCI | 12-month expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Sub- standard | Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 741 | 825 |
Sub- standard | Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Sub- standard | Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Credit impaired | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets and off-balance sheet loan commitments | 20,579 | 20,940 |
Credit impaired | Loans and other credit-related commitments | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 746 | 1,081 |
Credit impaired | Loans and other credit-related commitments | 12-month expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Credit impaired | Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Credit impaired | Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 744 | 1,080 |
Credit impaired | Loans and other credit-related commitments | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 2 | 1 |
Credit impaired | Financial guarantees | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 222 | 270 |
Credit impaired | Financial guarantees | 12-month expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Credit impaired | Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 0 | 0 |
Credit impaired | Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 221 | 269 |
Credit impaired | Financial guarantees | Lifetime expected credit losses | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Off-balance sheet commitments | 1 | 1 |
Credit impaired | Debt instruments measured at amortised cost | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 19,285 | 19,372 |
Credit impaired | Debt instruments measured at amortised cost | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Credit impaired | Debt instruments measured at amortised cost | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 326 | 217 |
Credit impaired | Debt instruments measured at amortised cost | 12-month expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Credit impaired | Debt instruments measured at amortised cost | 12-month expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Credit impaired | Debt instruments measured at amortised cost | 12-month expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Credit impaired | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Credit impaired | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 19,069 | 19,095 |
Credit impaired | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to customers at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 216 | 277 |
Credit impaired | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Credit impaired | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Credit impaired | Debt instruments measured at amortised cost | Lifetime expected credit losses | Loans and advances to banks at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Credit impaired | Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Credit impaired | Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 284 | 177 |
Credit impaired | Debt instruments measured at amortised cost | Lifetime expected credit losses | Other financial assets measured at amortised cost | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 42 | 40 |
Credit impaired | Debt instruments at FVOCI | Gross carrying/notional amount | IFRS 9 | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 274 | 306 |
Credit impaired | Debt instruments at FVOCI | 12-month expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Credit impaired | Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Non-credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Credit impaired | Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | Credit impaired | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 226 | 257 |
Credit impaired | Debt instruments at FVOCI | Lifetime expected credit losses | Debt instruments measured at fair value through other comprehensive income (‘FVOCI’) | Gross carrying/notional amount | IFRS 9 | POCI | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | $ 48 | $ 49 |
Report of the directors fina_18
Report of the directors financial review risk report - Trading VaR, 99% 1 day (Details) - Trading Portfolios - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure of financial assets [line items] | |||
Value at risk | $ 38.7 | $ 43.4 | $ 44.4 |
Average | |||
Disclosure of financial assets [line items] | |||
Value at risk | 36.8 | 45.8 | 50.1 |
Maximum | |||
Disclosure of financial assets [line items] | |||
Value at risk | 48.2 | 62.2 | 69.3 |
Minimum | |||
Disclosure of financial assets [line items] | |||
Value at risk | 31.1 | 37.2 | 33.6 |
Foreign exchange and commodity | |||
Disclosure of financial assets [line items] | |||
Value at risk | 13.6 | 13.7 | 10.4 |
Foreign exchange and commodity | Average | |||
Disclosure of financial assets [line items] | |||
Value at risk | 15 | 11.3 | 10.6 |
Foreign exchange and commodity | Maximum | |||
Disclosure of financial assets [line items] | |||
Value at risk | 31.8 | 25.7 | 19.9 |
Foreign exchange and commodity | Minimum | |||
Disclosure of financial assets [line items] | |||
Value at risk | 6.9 | 7.1 | 5.6 |
Interest rate | |||
Disclosure of financial assets [line items] | |||
Value at risk | 33.5 | 20.3 | 36.8 |
Interest rate | Average | |||
Disclosure of financial assets [line items] | |||
Value at risk | 33.4 | 25.5 | 27.6 |
Interest rate | Maximum | |||
Disclosure of financial assets [line items] | |||
Value at risk | 50.4 | 38.1 | 43.5 |
Interest rate | Minimum | |||
Disclosure of financial assets [line items] | |||
Value at risk | 18.5 | 19.8 | 19.1 |
Equity | |||
Disclosure of financial assets [line items] | |||
Value at risk | 15.8 | 21.5 | 26.3 |
Equity | Average | |||
Disclosure of financial assets [line items] | |||
Value at risk | 16.5 | 29 | 25 |
Equity | Maximum | |||
Disclosure of financial assets [line items] | |||
Value at risk | 24.3 | 40.5 | 41.3 |
Equity | Minimum | |||
Disclosure of financial assets [line items] | |||
Value at risk | 12.1 | 21.1 | 13.6 |
Credit spread | |||
Disclosure of financial assets [line items] | |||
Value at risk | 18.3 | 24.3 | 18.7 |
Credit spread | Average | |||
Disclosure of financial assets [line items] | |||
Value at risk | 18.1 | 20.2 | 23.1 |
Credit spread | Maximum | |||
Disclosure of financial assets [line items] | |||
Value at risk | 29.4 | 28.6 | 44.1 |
Credit spread | Minimum | |||
Disclosure of financial assets [line items] | |||
Value at risk | 12.2 | 12.6 | 13.7 |
Portfolio diversification | |||
Disclosure of financial assets [line items] | |||
Value at risk | (42.5) | (36.4) | (47.8) |
Portfolio diversification | Average | |||
Disclosure of financial assets [line items] | |||
Value at risk | (46.2) | $ (40.2) | $ (36.2) |
Portfolio diversification | Maximum | |||
Disclosure of financial assets [line items] | |||
Value at risk | |||
Portfolio diversification | Minimum | |||
Disclosure of financial assets [line items] | |||
Value at risk |
Report of the directors fina_19
Report of the directors financial review risk report - Non-trading VaR, 99% 1 day (Details) - Non-trading portfolios - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Disclosure of financial assets [line items] | |||
Value at risk | $ 249.5 | $ 247.8 | $ 205.9 |
Average | |||
Disclosure of financial assets [line items] | |||
Value at risk | 250.4 | 237 | 143 |
Maximum | |||
Disclosure of financial assets [line items] | |||
Value at risk | 298.8 | 274.6 | 219.7 |
Minimum | |||
Disclosure of financial assets [line items] | |||
Value at risk | 193.5 | 179.7 | 79.7 |
Interest rate | |||
Disclosure of financial assets [line items] | |||
Value at risk | 193.7 | 166.6 | 184.3 |
Interest rate | Average | |||
Disclosure of financial assets [line items] | |||
Value at risk | 201.1 | 176.7 | 122.8 |
Interest rate | Maximum | |||
Disclosure of financial assets [line items] | |||
Value at risk | 248.7 | 196.4 | 190.1 |
Interest rate | Minimum | |||
Disclosure of financial assets [line items] | |||
Value at risk | 163.3 | 159.2 | 59 |
Credit spread | |||
Disclosure of financial assets [line items] | |||
Value at risk | 73.8 | 87 | 83.2 |
Credit spread | Average | |||
Disclosure of financial assets [line items] | |||
Value at risk | 80.5 | 84 | 80.9 |
Credit spread | Maximum | |||
Disclosure of financial assets [line items] | |||
Value at risk | 99.3 | 102.1 | 133.4 |
Credit spread | Minimum | |||
Disclosure of financial assets [line items] | |||
Value at risk | 64.7 | 67.5 | 44.2 |
Portfolio diversification | |||
Disclosure of financial assets [line items] | |||
Value at risk | (18) | (5.7) | (61.6) |
Portfolio diversification | Average | |||
Disclosure of financial assets [line items] | |||
Value at risk | $ (31.2) | $ (23.7) | $ (60.7) |
Report of the directors fina_20
Report of the directors financial review risk report - Balance sheet of insurance manufacturing subsidiaries by type of contract (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Disclosure of financial assets [line items] | ||||
– trading assets | $ 260,250 | $ 231,990 | ||
– derivatives | 209,516 | 307,726 | ||
Total external assets | 2,984,164 | |||
Deferred tax liabilities | 4,338 | 4,313 | ||
Total liabilities | 2,769,241 | 2,779,169 | ||
Total equity | 206,764 | 204,995 | $ 195,221 | $ 192,668 |
Total equity and liabilities | 2,976,005 | 2,984,164 | ||
Insurance manufacturing subsidiaries | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 125,758 | 121,127 | ||
– trading assets | 0 | 0 | ||
Financial assets at fair value | 43,457 | 39,553 | ||
– derivatives | 155 | 281 | ||
– financial investments – at amortised cost | 59,830 | 58,426 | ||
– financial investments – at fair value through other comprehensive income | 14,041 | 14,921 | ||
Other financial assets | 8,275 | 7,946 | ||
Reinsurance assets | 3,894 | 3,770 | ||
PVIF | 9,449 | 9,435 | ||
Other assets and investment properties | 3,929 | 3,577 | ||
Total external assets | 143,030 | 137,909 | ||
Liabilities under investment contracts designated at fair value | 6,331 | 6,385 | ||
Liabilities under insurance contracts | 110,636 | 107,261 | ||
Deferred tax liabilities | 1,614 | 1,575 | ||
Other liabilities | 8,068 | 7,244 | ||
Total liabilities | 126,649 | 122,465 | ||
Total equity | 16,381 | 15,444 | ||
Total equity and liabilities | 143,030 | 137,909 | ||
Assets and liabilities related to insurance contracts | Insurance manufacturing subsidiaries | With DPF | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 87,984 | 84,478 | ||
– trading assets | 0 | 0 | ||
Financial assets at fair value | 29,111 | 26,002 | ||
– derivatives | 146 | 262 | ||
– financial investments – at amortised cost | 41,201 | 39,891 | ||
– financial investments – at fair value through other comprehensive income | 11,851 | 12,531 | ||
Other financial assets | 5,675 | 5,792 | ||
Reinsurance assets | 2,191 | 2,256 | ||
PVIF | 0 | 0 | ||
Other assets and investment properties | 2,551 | 2,628 | ||
Total external assets | 92,726 | 89,362 | ||
Liabilities under investment contracts designated at fair value | 0 | 0 | ||
Liabilities under insurance contracts | 87,685 | 84,931 | ||
Deferred tax liabilities | 180 | 145 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 87,865 | 85,076 | ||
Total equity | 0 | 0 | ||
Total equity and liabilities | 87,865 | 85,076 | ||
Assets and liabilities related to insurance contracts | Insurance manufacturing subsidiaries | Unit- linked | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 9,134 | 8,802 | ||
– trading assets | 0 | 0 | ||
Financial assets at fair value | 8,788 | 8,558 | ||
– derivatives | 1 | 3 | ||
– financial investments – at amortised cost | 93 | 30 | ||
– financial investments – at fair value through other comprehensive income | 0 | 0 | ||
Other financial assets | 252 | 211 | ||
Reinsurance assets | 77 | 65 | ||
PVIF | 0 | 0 | ||
Other assets and investment properties | 3 | 1 | ||
Total external assets | 9,214 | 8,868 | ||
Liabilities under investment contracts designated at fair value | 2,390 | 2,285 | ||
Liabilities under insurance contracts | 6,726 | 6,503 | ||
Deferred tax liabilities | 8 | 5 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 9,124 | 8,793 | ||
Total equity | 0 | 0 | ||
Total equity and liabilities | 9,124 | 8,793 | ||
Assets and liabilities related to insurance contracts | Insurance manufacturing subsidiaries | Other contracts | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 19,402 | 18,932 | ||
– trading assets | 0 | 0 | ||
Financial assets at fair value | 3,651 | 3,508 | ||
– derivatives | 6 | 13 | ||
– financial investments – at amortised cost | 14,145 | 13,984 | ||
– financial investments – at fair value through other comprehensive income | 490 | 459 | ||
Other financial assets | 1,110 | 968 | ||
Reinsurance assets | 1,625 | 1,447 | ||
PVIF | 0 | 0 | ||
Other assets and investment properties | 658 | 227 | ||
Total external assets | 21,685 | 20,606 | ||
Liabilities under investment contracts designated at fair value | 3,941 | 4,100 | ||
Liabilities under insurance contracts | 16,225 | 15,827 | ||
Deferred tax liabilities | 19 | 25 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 20,185 | 19,952 | ||
Total equity | 0 | 0 | ||
Total equity and liabilities | 20,185 | 19,952 | ||
Shareholder assets and liabilities | Insurance manufacturing subsidiaries | ||||
Disclosure of financial assets [line items] | ||||
Financial assets | 9,238 | 8,915 | ||
– trading assets | 0 | 0 | ||
Financial assets at fair value | 1,907 | 1,485 | ||
– derivatives | 2 | 3 | ||
– financial investments – at amortised cost | 4,391 | 4,521 | ||
– financial investments – at fair value through other comprehensive income | 1,700 | 1,931 | ||
Other financial assets | 1,238 | 975 | ||
Reinsurance assets | 1 | 2 | ||
PVIF | 9,449 | 9,435 | ||
Other assets and investment properties | 717 | 721 | ||
Total external assets | 19,405 | 19,073 | ||
Liabilities under investment contracts designated at fair value | 0 | 0 | ||
Liabilities under insurance contracts | 0 | 0 | ||
Deferred tax liabilities | 1,407 | 1,400 | ||
Other liabilities | 8,068 | 7,244 | ||
Total liabilities | 9,475 | 8,644 | ||
Total equity | 16,381 | 15,444 | ||
Total equity and liabilities | $ 25,856 | $ 24,088 |
Report of the directors fina_21
Report of the directors financial review risk report - Sensitivity of HSBC’s insurance manufacturing subsidiaries to market risk factors (Details) - Market risk - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Disclosure of financial assets [line items] | ||
+100 basis point parallel shift in yield curves, effect on profit after tax | $ (42) | $ (67) |
+100 basis point parallel shift in yield curves, effect on equity | (188) | (188) |
-100 basis point parallel shift in yield curves, effect on profit after tax | (53) | (68) |
-100 basis point parallel shift in yield curves, effect on equity | 97 | 58 |
10% increase in equity prices, effect on profit after tax | 366 | 332 |
10% increase in equity prices, effect on equity | 366 | 332 |
10% decrease in equity prices, effect on profit after tax | (372) | (338) |
10% decrease in equity prices, effect on equity | (372) | (338) |
10% increase in US dollar exchange rate compared with all currencies, effect on profit after tax | 10 | 84 |
10% increase in US dollar exchange rate compared with all currencies, effect on equity | 10 | 84 |
10% decrease in US dollar exchange rate compared with all currencies, effect on profit after tax | (10) | (84) |
10% decrease in US dollar exchange rate compared with all currencies, effect on equity | $ (10) | $ (84) |