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Consolidated statement of changes in equity (Parenthetical)
1 Months Ended 12 Months Ended
Sep. 30, 2023
USD ($)
Sep. 30, 2023
EUR (€)
Sep. 30, 2023
SGD ($)
Mar. 31, 2023
USD ($)
Dec. 31, 2023
USD ($)
shares
Dec. 31, 2022
USD ($)
shares
Dec. 31, 2021
USD ($)
shares
Dec. 31, 2023
EUR (€)
shares
Dec. 31, 2023
SGD ($)
shares
Oct. 30, 2023
USD ($)
Aug. 31, 2023
USD ($)
May 31, 2023
USD ($)
Dec. 31, 2020
USD ($)
shares
Dec. 31, 2009
USD ($)
Dec. 31, 2003
USD ($)
Dec. 31, 2000
USD ($)
Dec. 31, 1997
USD ($)
Cumulative goodwill                                 $ 5,138,000,000
Redemption of securities         $ 4,003,000,000 [1] $ 2,266,000,000 $ 2,000,000,000                    
Authorized amount for share buy-back program                   $ 3,000,000,000.0 $ 2,000,000,000.0 $ 2,000,000,000.0          
Transfers         0 [2] 0 0                    
Shares issued under employee remuneration and share plans         0 0 18,000,000                    
Total equity         192,610,000,000 [3] 185,197,000,000 [3] 196,318,000,000 [3]           $ 204,995,000,000        
Total movements                                  
Total equity           (10,831,000,000) (10,459,000,000) [4]                    
HSBC Overseas Holdings (UK) Limited                                  
Impairment loss recognised in profit or loss         5,512,000,000                        
$2,000m issued at 8%                                  
Notional amount         2,000,000,000                        
$2,350m issued at 6.250%                                  
Notional amount         $ 2,350,000,000                        
Other equity instruments interest rate         6.25%     6.25% 6.25%                
EUR1,000m issued at 6%                                  
Notional amount | €               € 1,000,000,000                  
Other equity instruments interest rate         6.00%     6.00% 6.00%                
SGD750m issued at 5%                                  
Notional amount                 $ 750,000,000                
Other equity instruments interest rate         5.00%     5.00% 5.00%                
Merger and other reserves                                  
Cumulative goodwill                                 3,469,000,000
Cumulative acquisition value                           $ 15,796,000,000      
Transfers [5],[6]         $ (5,130,000,000) [2] 2,499,000,000 3,065,000,000                    
Total equity [5],[6]         28,601,000,000 33,209,000,000 30,060,000,000           26,935,000,000        
Merger and other reserves | HSBC Continental Europe                                  
Cumulative acquisition value                               $ 8,290,000,000  
Merger and other reserves | HSBC Finance Corporation                                  
Cumulative acquisition value                             $ 12,768,000,000    
Retained earnings                                  
Cumulative goodwill                                 $ 1,669,000,000
Redemption of securities [5],[7]         (20,000,000) [1] (402,000,000)                      
Transfers [5],[7]         5,130,000,000 [2] (2,499,000,000) (3,065,000,000)                    
Shares issued under employee remuneration and share plans [5],[7]         (79,000,000) (67,000,000) (336,000,000)                    
Total equity [5],[7]         $ 152,148,000,000 142,409,000,000 135,236,000,000           $ 140,572,000,000        
Retained earnings | Total movements                                  
Total equity [4],[5],[7]             $ (9,222,000,000)                    
Treasury shares                                  
Number of shares outstanding | shares         256,289,431   558,397,704 256,289,431 256,289,431       554,452,437        
HSBC Holdings                                  
Payments for debt issue costs       $ 20,000,000                          
Redemption of securities         $ 4,003,000,000 [8] 2,266,000,000 $ 2,000,000,000                    
Authorized amount for share buy-back program                   $ 3,000,000,000 $ 2,000,000,000 $ 2,000,000,000          
Transfers [9]         0 0 0                    
Shares issued under employee remuneration and share plans         (249,000,000) (94,000,000) 251,000,000                    
Total equity         141,306,000,000 153,108,000,000 150,330,000,000           $ 146,800,000,000        
HSBC Holdings | HSBC Overseas Holdings (UK) Limited                                  
Impairment loss recognised in profit or loss         5,512,000,000                        
HSBC Holdings | $2,000m issued at 8%                                  
Notional amount       $ 2,000,000,000                          
Other equity instruments interest rate       8.00%                          
Payments for debt issue costs       $ 4,000,000                          
HSBC Holdings | $2,350m issued at 6.250%                                  
Other equity instruments interest rate       6.25%                          
Redemption of securities       $ 2,350,000,000                          
HSBC Holdings | EUR1,000m issued at 6%                                  
Other equity instruments interest rate 6.00% 6.00% 6.00%                            
Redemption of securities $ 1,000,000,000 € 1,000,000,000                              
HSBC Holdings | SGD750m issued at 5%                                  
Other equity instruments interest rate 5.00% 5.00% 5.00%                            
Redemption of securities     $ 750,000,000                            
HSBC Holdings | Merger and other reserves                                  
Transfers [9]         (5,130,000,000) 2,499,000,000 3,065,000,000                    
Total equity         35,946,000,000 40,555,000,000 37,882,000,000           34,757,000,000        
HSBC Holdings | Retained earnings                                  
Redemption of securities [10],[11]         (20,000,000) [8] (402,000,000)                      
Transfers [9],[10],[11]         5,130,000,000 (2,499,000,000) (3,065,000,000)                    
Shares issued under employee remuneration and share plans [10],[11]         (328,000,000) (161,000,000) (103,000,000)                    
Total equity [10],[11]         $ 63,288,000,000 $ 67,996,000,000 $ 65,116,000,000           $ 65,005,000,000        
HSBC Holdings | Treasury shares                                  
Number of shares outstanding | shares         20,018,490 331,874,221 329,871,829 20,018,490 20,018,490                
Total equity         $ 100,000,000 $ 2,615,000,000 $ 2,542,000,000                    
HSBC Holdings | Reserve of share-based payments                                  
Shares issued under employee remuneration and share plans         $ (382,000,000)                        
[1] In March 2023, HSBC Holdings redeemed $2,350m 6.250% contingent convertible securities. In September 2023, HSBC Holdings further redeemed
€1,000m 6.000% and SGD750m 5.000% contingent convertible securities.
[2] At 31 December 2023, an impairment of $5,512m of HSBC Overseas Holdings (UK) Limited was recognised, resulting in a permitted transfer of
$5,130m from the merger reserve to retained earnings and a realisation of $382m shared-based payment reserve within retained earnings.
[3] From 1 January 2023, we adopted IFRS 17 ‘Insurance Contracts’, which replaced IFRS 4 ‘Insurance Contracts’. We have restated 2022 comparative
data and the IFRS 17 transition impact on the balance sheet at 1 January 2022.
[4] The impact of IFRS 17 on previously reported total equity was $(10,831)m at 31 December 2022.
[5] Cumulative goodwill amounting to $5,138m was charged against reserves in respect of acquisitions of subsidiaries prior to 1 January 1998, including
$3,469m charged against the merger reserve arising on the acquisition of HSBC Bank plc. The balance of $1,669m was charged against retained
earnings.
[6] Statutory share premium relief under section 131 of the Companies Act 1985 was taken in respect of the acquisition of HSBC Bank plc in 1992,
HSBC Continental Europe in 2000 and HSBC Finance Corporation in 2003, and the shares issued were recorded at their nominal value only. In HSBC’s
consolidated financial statements, the fair value differences of $8,290m in respect of HSBC Continental Europe and $12,768m in respect of HSBC
Finance Corporation were recognised in the merger reserve. The merger reserve created on the acquisition of HSBC Finance Corporation
subsequently became attached to HSBC Overseas Holdings (UK) Limited, following a number of intra-Group reorganisations. During 2009, pursuant to
section 131 of the Companies Act 1985, statutory share premium relief was taken in respect of the rights issue and $15,796m was recognised in the
merger reserve.
[7] At 31 December 2023, retained earnings included 256,289,431 treasury shares (2022: 554,452,437; 2021: 558,397,704). These include treasury
shares held within HSBC’s insurance business’s retirement funds for the benefit of policyholders or beneficiaries within employee trusts for the
settlement of shares expected to be delivered under employee share schemes or bonus plans, and the market-making activities in Markets and
Securities Services.
[8] n March 2023, HSBC Holdings redeemed $2,350m 6.250% contingent convertible securities. In September 2023, HSBC Holdings further redeemed
€1,000m 6.000% and SGD750m 5.000% contingent convertible securities.
[9] At 31 December 2023, an impairment of $5,512m of HSBC Overseas Holdings (UK) Limited was recognised, resulting in a permitted transfer of
$5,130m from the merger reserve to retained earnings, and a realisation of $382m share-based payment reserve within retained earnings. In 2022, a
part-reversal of the impairment resulted in a transfer from retained earnings back to the merger reserve of $2,499m (2021: $3,065m).
[10] At 31 December 2023, retained earnings included 20,018,490 ($100m) treasury shares (2022: 331,874,221 ($2,615m); 2021: 329,871,829 ($2,542m)).
[11] Retained earnings include unrealised profits from intercompany transactions and share-based payment reserves, which are excluded from distributable
reserves. Distributable reserves include the distributable portions of retained earnings and the merger reserve. Distributable reserves are reduced by
ordinary dividend payments, distributions on additional tier 1 instruments, share buy-backs and impairments in investments in subsidiaries. They are
increased by profits and the realisation of retained earnings or merger reserves upon impairment of an associated investment in subsidiary.