hsbc2011irn - 1 August 2011 HSBC HOLDINGS PLC 2011 INTERIM...

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1 August 2011 HSBC HOLDINGS PLC 2011 INTERIM RESULTS – HIGHLIGHTS Financial highlights: Reported pre-tax profit US$11.5bn: up 3% on 1H10, and 45% on 2H10* Profit attributable to ordinary shareholders US$8.9bn: up 35% on 1H10, 46% on 2H10 Return on average ordinary shareholders’ equity 12.3%: up from 10.4% in 1H10, 8.9% in 2H10 Earnings per share US$0.51: up 34% on 1H10, and 46% on 2H10 Net assets per share of US$8.59: up 17% on 1H10, and 8% on 2H10 Dividends declared in respect of 2011 totalling US$0.18 per ordinary share, up 12.5% Loan impairment and other credit risk provisions US$5.3bn: down 30% on 1H10, 19% on 2H10 Advances-to-deposits ratio 78.7%: up from 77.9% in 1H10, and 78.1% in 2H10 Core tier 1 capital ratio increased to 10.8% from 10.5% during the period Business highlights: Commercial Banking profits up 31%: supported by revenues up 14% and customer lending up 12% compared to year end Retail Banking and Wealth Management profits up 131% as loan impairment charges fell Global Banking and Markets profits down 12%, but held up well against strong 1H10 Profitable in all regions: profits up in Asia, Latin America, the Middle East and North America Revenues stable at US$35.7bn: double digit growth in Asia and Latin America Customer lending up 8% on year end: led by demand in trade, emerging markets and Europe In the US, made progress on strategic review of credit card business and announced disposal of 195 non-strategic branches, principally in upstate New York Announced: closure of retail banking in Russia and Poland; disposal of three insurance businesses Cost efficiency ratio of 57.5%: compared with 50.9% in 1H10, and 59.9% in 2H10 Stuart Gulliver, Group Chief Executive said: “I am pleased with these results, which mark a first step in the right direction on what will be a long journey.” Key performance indicators*: 1H11 1H10 2H10 Target/ benchmark Return on average ordinary shareholders’ equity 12.3% 10.4% 8.9% 12-15% Cost efficiency ratio 57.5% 50.9% 59.9% 48-52% Earnings per share (US$) 0.51 0.38 0.35 Core tier 1 ratio 10.8% 9.9% 10.5% 9.5-10.5%** * All figures are given on a reported basis, unless otherwise stated ** Assumed common equity tier 1 ratio under Basel III
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