# Financial review

The financial review gives detailed reporting of our financial performance at Group level as well as across the global businesses we reported on in 2024 and legal entities.

- 86 Financial summary
- 98 Global businesses and legal entities
- 120 Reconciliation of alternative performance measures

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# Financial summary

## Contents
- 86 Key financial measures: basis of preparation
- 86 Use of alternative performance measures
- 88 Critical estimates and judgements
- 88 Impact of hyperinflationary accounting
- 89 Consolidated income statement
- 90 Income statement commentary
- 94 Consolidated balance sheet

## Key financial measures: basis of preparation

### Return on average tangible equity excluding notable items
From 1 January 2024, we revised the adjustments made to our adjusted RoTE measure. Prior to this, we adjusted RoTE for the impact of strategic transactions and the impairment of our investment in Bank of Communications Co., Limited (‘BoCom’), whereas from 1 January 2024 we have excluded all notable items. This was intended to improve alignment with the treatment of notable items in our other income statement disclosures. The calculation for RoTE excluding notable items, adjusts the ‘profit attributable to the ordinary shareholders, excluding goodwill and other intangible assets impairment’ for the post-tax impact of notable items. It also adjusts the ‘average tangible equity’ for the post-tax impact of notable items in each period, which remain as adjusting items for all relevant periods within that calendar year. For a reconciliation from return on equity (‘RoE’) to RoTE excluding notable items, see page 122.

We do not reconcile our forward RoTE guidance to the equivalent reported measure.

### Banking net interest income
Banking net interest income (‘banking NII’) adjusts our NII, primarily for the impact of funding trading and fair value activities reported in interest expense. It represents the Group’s banking revenue that is directly impacted by changes in interest rates.

We use this measure to determine the deployment of our surplus funding, and to help optimise our structural hedging and risk management actions. For more information on banking NII, see page 91.

### Target basis operating expenses
Target basis operating expenses is computed by excluding the direct cost impact of our France retail banking operations and Canada banking business disposals from the 2023 baseline. It is measured on a constant currency basis and excludes notable items and the impact of retranslating the prior year results of hyperinflationary economies at constant currency, which we consider to be outside of our control.

We consider target basis operating expenses to provide useful information to investors by quantifying and excluding the notable items that management considered when setting and assessing cost-related targets. For a reconciliation from reported operating expenses to target basis operating expenses, see page 124.

In 2024, we targeted operating expenses growth on a target basis of approximately 5% compared with 2023. This target reflected our business plan for 2024, which included an increase in staff compensation, higher spend and investment in technology for growth and efficiency, in part mitigated by cost savings from actions taken during 2023.

We are targeting growth in target basis operating expenses of approximately 3% in 2025 compared with 2024. Our target basis operating expenses for 2025 excludes the direct cost impact of the business disposals in Canada and Argentina, notable items and the impact of retranslating the prior year results of hyperinflationary economies at constant currency.

Our cost target includes the impact of simplification-related saves associated with our announced reorganisation, see page 98, which aims to generate approximately $0.3bn of cost reductions in 2025. To deliver these reductions, we plan to incur severance and other up-front costs of $1.8bn over 2025 and 2026, which will be classified as notable items.

We do not reconcile our forward target basis operating expenses guidance to the reported operating expenses.

### Dividend payout ratio target basis
We established a dividend payout ratio target basis of 50% for 2023 and 2024, and we continue to target a payout ratio target basis of 50% for 2025. For the purposes of computing our dividend payout ratio target basis, we exclude from earnings per share material notable items and related impacts. Material notable items are components of our income statement that management would consider as outside the normal course of business and generally non-recurring in nature, which are excluded from our dividend payout ratio calculation and our earnings per share measure, along with related impacts.

Material notable items are a subset of notable items for which categorisation is dependent on the nature of each item in conjunction with the financial impact on the Group’s income statement. They comprise the impacts of the sales of our banking business in Canada and our retail banking operations in France, the gain following the acquisition of SVB UK, the impacts of the sale of our business in Argentina and the impairment of BoCom. We also exclude HSBC Bank Canada’s financial results from the 30 June 2022 net asset reference date until completion, as the gain on sale was recognised through a combination of the consolidation of HSBC Bank Canada’s results in the Group’s results since this date, and the remaining gain on sale recognised at completion, inclusive of the recycling of related reserves and fair value gains on related hedges. Following the completion of the sale of our banking business in Canada, the Board approved a special dividend of $0.21 per share, which was paid in June 2024, alongside the first interim dividend.

For a reconciliation of basic earnings per share to basic earnings per share excluding material notable items and related impacts, see page 125. We do not reconcile our forward dividend payout ratio target basis guidance to the reported dividend payout ratio.

## Use of alternative performance measures
Our reported results are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (‘IFRS Accounting Standards’), as detailed in the financial statements starting on page 341.

To measure our performance, we supplement our IFRS Accounting Standards figures with non-IFRS Accounting Standards measures, which constitute alternative performance measures under European Securities and Markets Authority guidance and non-GAAP financial measures defined in and presented in accordance with US Securities and Exchange Commission rules and regulations. These measures include those derived from our reported results that eliminate factors distorting year-on-year comparisons. The ‘constant currency performance’ measure used throughout this report is described below. Definitions and calculations of other alternative performance measures are included in our ‘Reconciliation of alternative performance measures’ on page 120. Also, the insurance-specific non-GAAP measure ‘Insurance equity plus CSM net of tax’, is provided on page 106, along with its definition and reconciliation to the GAAP measure. All alternative performance measures are reconciled to the closest reported performance measure.

The global business segmental results are presented on a constant currency basis in accordance with IFRS 8 ‘Operating Segments’ as detailed in Note 10 ‘Segmental analysis’ on page 383.

## Constant currency performance
Constant currency performance is computed by adjusting reported results for the effects of foreign currency translation differences, which distort year-on-year comparisons.

We consider constant currency performance to provide useful information for investors by aligning internal and external reporting, and reflecting how management assesses year-on-year performance.

## Notable items and material notable items
We separately disclose ‘notable items’, which are components of our income statement that management would consider as outside the normal course of business and generally non-recurring in nature.

Certain notable items are classified as ‘material notable items’, which are a subset of notable items. Categorisation as a material notable item is dependent on the nature of each item in conjunction with the financial impact on the Group’s income statement. We exclude material notable items when computing our dividend payout ratio target basis. Material notable items currently comprise the sale of our retail operations in France and our banking business in Canada, the sale of our business in Argentina, the acquisition of SVB UK and the impairment of our investment in BoCom.

## Impact of strategic transactions
To aid the understanding of our results, we separately disclose the impact of strategic transactions classified as material notable items on the results of the Group and our global businesses. At 31 December 2024, strategic transactions classified as material notable items in current and comparative periods comprise the disposal of our retail banking operations in France, the disposal of our banking business in Canada, the sale of our business in Argentina and the acquisition of SVB UK.

The impacts of strategic transactions include the gains or losses on classification to held for sale or on acquisition and all other related notable items. They also include the distorting impact between the periods of the operating income statement results related to acquisitions and disposals that affect period-on-period comparisons. This is computed by including the operating income statement results of each business in any period for which there are no results in the comparative period. We consider the monthly impacts of distorting income statement results when calculating the impact of strategic transactions.

## Constant currency revenue and profit before tax excluding notable items
We separately report ‘constant currency revenue excluding notable items’ and ‘constant currency profit before tax excluding notable items’, which exclude the impact of notable items and the impact of foreign exchange translation. We consider this measure to provide useful information to investors as it removes items which distort period-on-period comparisons.

## Constant currency revenue and profit before tax excluding notable items and the impact of strategic transactions
To aid the understanding of our results, we separately disclose ‘constant currency revenue excluding notable items and the impact of strategic transactions’ and ‘constant currency profit before tax excluding notable items and the impact of strategic transactions’. This measure excludes the impact of strategic transactions classified as material notable items from constant currency revenue and profit before tax excluding notable items. At 31 December 2024, strategic transactions classified as material notable items comprise the disposal of our retail banking operations in France, our banking business in Canada, the sale of our business in Argentina and the acquisition of SVB UK.

The impacts quoted include the gains or losses on classification to held for sale or acquisition and all other related notable items. They also include the distorting impact between the periods of the operating income statement results related to acquisitions and disposals that affect period-on-period comparisons. It is computed by including the operating income statement results of each business in any period for which there are no results in the comparative period. We consider the monthly impacts of distorting income statement results when calculating the impact of strategic transactions.

## Foreign currency translation differences
Foreign currency translation differences reflect the movements of the US dollar against most major currencies during 2024.

We exclude them to derive constant currency data, allowing us to assess balance sheet and income statement performance on a like-for-like basis and to better understand the underlying trends in the business.

Foreign currency translation differences for 2024 are computed by retranslating into US dollars for non-US dollar branches, subsidiaries, joint ventures and associates:
- the income statements for 2023 and 2022 at the average rates of exchange for 2024; and
- the balance sheets at 31 December 2023 and 31 December 2022 at the prevailing rates of exchange on 31 December 2024.

No adjustment has been made to the exchange rates used to translate foreign currency-denominated assets and liabilities into the functional currencies of any HSBC branches, subsidiaries, joint ventures or associates. The constant currency data of our operations in Argentina and Türkiye has not been adjusted further for the impacts of hyperinflation.

When reference is made to foreign currency translation differences in tables or commentaries, comparative data reported in the functional currencies of HSBC’s operations have been translated at the appropriate exchange rates applied in the current period on the basis described above.

## Insurance metrics no longer reported
Insurance manufacturing value of new business and Insurance manufacturing proxy embedded value were previously presented as non-GAAP performance measures. The Group continues to review its use of non-GAAP performance measures following implementation of IFRS 17 and has now discontinued the reporting of these measures. Instead ‘New business CSM’ is now management’s key new business performance measure, and ‘Equity plus CSM net of tax’ is considered a measure of entity value more closely aligned with IFRS 17.

## Impact of hyperinflationary accounting
During 2024, we continued to treat Argentina and Türkiye as hyperinflationary economies for accounting purposes. The impact of applying IAS 29 ‘Financial Reporting in Hyperinflationary Economies’ and the hyperinflation provisions of IAS 21 ’The Effects of Changes in Foreign Exchange Rates’ for our operations in both Argentina and Türkiye was a decrease in the Group’s profit before tax of $917m (2023: $1,297m), comprising a decrease in revenue, including loss on net monetary position, of $840m (2023: $1,586m) and an increase in ECL and operating expenses of $77m (2023: decrease of $289m). These numbers reflect an increase in the consumer price index (‘CPI’) of 3,915.03 (2023: 2,429.13 increase) for Argentina and 825.55 (2023: 730.89 increase) for Türkiye. We have now completed the sale of our business in Argentina, so there will be no impact in 2025 of hyperinflation in this market, although comparative data will include the impact of hyperinflation.

## Critical estimates and judgements
The results of HSBC reflect the choice of accounting policies, assumptions and estimates that underlie the preparation of HSBC’s consolidated financial statements. The material accounting policies, including the policies which include critical estimates and judgements, are described in Note 1.2 on the financial statements. The accounting policies listed below are highlighted as they involve a high degree of uncertainty and have a material impact on the financial statements:

- **Impairment of amortised cost financial assets and financial assets measured at fair value through other comprehensive income (‘FVOCI’):** The most significant judgements relate to defining what is considered to be a significant increase in credit risk, determining the lifetime and point of initial recognition of revolving facilities, selecting and calibrating the probability of default (‘PD’), the loss given default (‘LGD’) and the exposure at default (‘EAD’) models, as well as selecting model inputs and economic forecasts, making assumptions and estimates to incorporate relevant information about late-breaking and past events, current conditions and forecasts of economic conditions, and selecting applicable recovery strategies for certain wholesale credit-impaired loans. A high degree of uncertainty is involved in making estimations using assumptions that are highly subjective and very sensitive to the risk factors. See Note 1.2(i) on page 359.
- **Deferred tax assets:** The most significant judgements relate to those made in respect of recoverability, which are based on expected future profitability. See Note 1.2(l) on page 364.
- **Valuation of financial instruments:** In determining the fair value of financial instruments a variety of valuation techniques are used, some of which feature significant unobservable inputs and are subject to substantial uncertainty. See Note 1.2(c) on page 357.
- **Impairment of investment in subsidiaries:** Impairment testing, including testing for reversal of impairment, involves significant judgement in determining the value in use, and in particular estimating the present values of cash flows expected to arise from continuing to hold the investment, based on a number of management assumptions. See Note 1.2(a) on page 354.
- **Impairment of interests in associates:** Impairment testing, including testing for reversal of impairment, involves significant judgement in determining the value in use, and in particular estimating the present values of cash flows expected to arise from continuing to hold the investment, based on a number of management assumptions. The most significant judgements relate to the impairment testing of our investment in Bank of Communications Co., Limited (‘BoCom’). See Note 1.2(a) on page 354.
- **Impairment of goodwill and non-financial assets:** A high degree of uncertainty is involved in estimating the future cash flows of the cash-generating units (‘CGUs’) and the rates used to discount these cash flows. See Note 1.2(a) on page 354 and Note 1.2(n) on page 365.
- **Provisions:** Significant judgement may be required due to the high degree of uncertainty associated with determining whether a present obligation exists, and estimating the probability and amount of any outflows that may arise. See Note 1.2(m) on page 364.
- **Post-employment benefit plans:** The calculation of the defined benefit pension obligation involves the determination of key assumptions including discount rate, inflation rate, pension payments and deferred pensions, pay and mortality. See Note 1.2(k) on page 363.

Given the inherent uncertainties and the high level of subjectivity involved in the recognition or measurement of the items above, it is possible that the outcomes in the next financial year could differ from the expectations on which management’s estimates are based, resulting in the recognition and measurement of materially different amounts from those estimated by management in these financial statements.

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## Consolidated income statement

### Summary consolidated income statement

| | 2024 $m | 2023 $m | 2022$^{1}$ $m | 2021 $m | 2020 $m |
| --- | --- | --- | --- | --- | --- |
| Net interest income | 32,733 | 35,796 | 30,377 | 26,489 | 27,578 |
| Net fee income | 12,301 | 11,845 | 11,770 | 13,097 | 11,874 |
| Net income from financial instruments held for trading or managed on a fair value basis$^{2}$ | 21,116 | 16,661 | 10,278 | 7,744 | 9,582 |
| Net income/(expense) from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss | 5,901 | 7,887 | (13,831) | 4,053 | 2,081 |
| Net insurance premium income | — | — | — | 10,870 | 10,093 |
| Insurance finance (expense)/income | (5,978) | (7,809) | 13,799 | — | — |
| Insurance service result | 1,310 | 1,078 | 809 | — | — |
| Gain on acquisition$^{3}$ | — | 1,591 | — | — | — |
| Gains/(losses) recognised on sale of business operations$^{4}$ | (1,752) | (61) | (2,678) | — | — |
| Other operating income/(expense)$^{5}$ | 223 | (930) | 96 | 1,687 | 1,866 |
| **Total operating income** | **65,854** | **66,058** | **50,620** | **63,940** | **63,074** |
| Net insurance claims and benefits paid and movement in liabilities to policyholders | — | — | — | (14,388) | (12,645) |
| **Net operating income before change in expected credit losses and other credit impairment charges$^{6}$** | **65,854** | **66,058** | **50,620** | **49,552** | **50,429** |
| Change in expected credit losses and other credit impairment charges | (3,414) | (3,447) | (3,584) | 928 | (8,817) |
| **Net operating income** | **62,440** | **62,611** | **47,036** | **50,480** | **41,612** |
| Total operating expenses excluding impairment of goodwill and other intangible assets | (32,966) | (32,355) | (32,554) | (33,887) | (33,044) |
| (Impairment)/reversal of impairment of goodwill and other intangible assets | (77) | 285 | (147) | (733) | (1,388) |
| **Operating profit** | **29,397** | **30,541** | **14,335** | **15,860** | **7,180** |
| Share of profit in associates and joint ventures | 2,912 | 2,807 | 2,723 | 3,046 | 1,597 |
| Impairment of interest in associate | — | (3,000) | — | — | — |
| **Profit before tax** | **32,309** | **30,348** | **17,058** | **18,906** | **8,777** |
| Tax expense | (7,310) | (5,789) | (809) | (4,213) | (2,678) |
| **Profit for the year** | **24,999** | **24,559** | **16,249** | **14,693** | **6,099** |
| Attributable to: | | | | | |
| – ordinary shareholders of the parent company | 22,917 | 22,432 | 14,346 | 12,607 | 3,898 |
| – preference shareholders of the parent company | — | — | — | 7 | 90 |
| – other equity holders | 1,062 | 1,101 | 1,213 | 1,303 | 1,241 |
| – non-controlling interests | 1,020 | 1,026 | 690 | 776 | 870 |
| **Profit for the year** | **24,999** | **24,559** | **16,249** | **14,693** | **6,099** |

### Five-year financial information

| | 2024 $ | 2023 $ | 2022$^{1}$ $ | 2021 $ | 2020 $ |
| --- | --- | --- | --- | --- | --- |
| Basic earnings per share | 1.25 | 1.15 | 0.72 | 0.62 | 0.19 |
| Diluted earnings per share | 1.24 | 1.14 | 0.72 | 0.62 | 0.19 |
| Dividends per ordinary share (paid in the period)$^{7}$ | 0.82 | 0.53 | 0.27 | 0.22 | — |
| | % | % | % | % | % |
| Dividend payout ratio$^{8}$ | 50 | 50 | 44 | 40 | 79 |
| Post-tax return on average total assets | 0.8 | 0.8 | 0.5 | 0.5 | 0.2 |
| Return on average ordinary shareholders’ equity | 13.6 | 13.6 | 9.0 | 7.1 | 2.3 |
| Return on average tangible equity | 14.6 | 14.6 | 10.0 | 8.3 | 3.1 |
| Effective tax rate | 22.6 | 19.1 | 4.7 | 22.3 | 30.5 |

$^{1}$ From 1 January 2023, we adopted IFRS 17 ‘Insurance Contracts’, which replaced IFRS 4 ‘Insurance Contracts’. Comparative data for the financial year ended 31 December 2022 have been restated accordingly. Comparative data for the years ended 31 December 2021 and 2020 are prepared on an IFRS 4 basis.
$^{2}$ Includes a $255m gain (2023: $315m loss) on the foreign exchange hedging of the proceeds from the sale of our banking business in Canada and a $114m mark-to-market gain (2023:nil) on interest rate hedging of the portfolio of retained loans post sale of our retail banking business in France.
$^{3}$ Gain recognised in respect of the acquisition of SVB UK.
$^{4}$ This line item has been updated to include amounts from Other operating income relating to all sales of business operations; in the 2023 Annual Report and Accounts, this line item only reflected the disposal of our France retail banking business. The amount in 2024 includes a $1.0bn loss on disposal and a $5.2bn loss on the recycling in foreign currency translation reserve losses and other reserves arising on sale of our business in Argentina. This was partly offset by a gain of $4.6bn, inclusive of the recycling of $0.6bn in foreign currency translation reserve losses and $0.4bn of other reserves losses but excluding the $255m gain on the foreign exchange hedging (see footnote 2 above) on the sale of our banking business in Canada. The amount in 2023 primarily reflected losses due to restrictions impacting the recoverability of assets in Russia, partly offset by a gain on sale of our retail banking operations in France. The amount in 2022 included losses from classifying businesses as held for sale as part of a broader restructuring of our European business.
$^{5}$ Other operating (expense)/income includes a loss on net monetary positions of $1,187m (2023: $1,667m; 2022: $678m) as a result of applying IAS 29 ‘Financial Reporting in Hyperinflationary Economies’.
$^{6}$ Net operating income before change in expected credit losses and other credit impairment charges also referred to as revenue.
$^{7}$ Includes dividend paid during the period, which consisted of a fourth interim dividend of $0.31 per ordinary share in respect of the financial year ended 31 December 2023 paid in April 2024 and the first, second and third interim dividends of $0.30 per ordinary share in respect of the financial year ending 31 December 2024. In addition, a special dividend of $0.21 per ordinary share from the Canada sale proceeds was paid in June 2024 along with the first interim dividend.
$^{8}$ In 2024 and 2023, our dividend payout ratio was adjusted for material notable items and related impacts. In 2022, our dividend payout ratio was adjusted for the loss on classification to held for sale of our retail banking business in France, items relating to the sale of our banking business in Canada, and the recognition of certain deferred tax assets. No items were adjusted for in 2021 and 2020.

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## Income statement commentary

### Net interest income

| | Year ended | Quarter ended | | | |
| --- | --- | --- | --- | --- | --- |
| | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2022 | 31 Dec 2024 | 30 Sep 2024 | 31 Dec 2023 |
| | $m | $m | $m | $m | $m | $m |
| Interest income | 108,631 | 100,868 | 52,826 | 26,004 | 27,255 | 26,714 |
| Interest expense | (75,898) | (65,072) | (22,449) | (17,819) | (19,618) | (18,430) |
| Net interest income | 32,733 | 35,796 | 30,377 | 8,185 | 7,637 | 8,284 |
| Average interest-earning assets | 2,099,285 | 2,161,746 | 2,143,758 | 2,113,276 | 2,088,100 | 2,164,324 |
| | % | % | % | % | % | % |
| Gross interest yield$^{1}$ | 5.17 | 4.67 | 2.46 | 4.90 | 5.19 | 4.90 |
| Less: gross interest payable$^{1}$ | (3.95) | (3.47) | (1.24) | (3.60) | (4.07) | (3.83) |
| Net interest spread$^{2}$ | 1.22 | 1.20 | 1.22 | 1.30 | 1.12 | 1.07 |
| Net interest margin$^{3}$ | 1.56 | 1.66 | 1.42 | 1.54 | 1.46 | 1.52 |

$^{1}$ Gross interest yield is the average annualised interest rate earned on average interest-earning assets (‘AIEA’). Gross interest payable is the average annualised interest cost as a percentage of average interest-bearing liabilities.
$^{2}$ Net interest spread is the difference between the average annualised interest rate earned on AIEA, net of amortised premiums and loan fees, and the average annualised interest rate payable on average interest-bearing funds.
$^{3}$ Net interest margin is net interest income expressed as an annualised percentage of AIEA.

### Summary of interest income by type of asset

| | 2024 | | | 2023 | | | 2022 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Average balance $m | Interest income $m | Yield % | Average balance $m | Interest income $m | Yield % | Average balance $m | Interest income $m | Yield % |
| Short-term funds and loans and advances to banks | 349,517 | 14,727 | 4.21 | 403,674 | 14,770 | 3.66 | 445,659 | 5,577 | 1.25 |
| Loans and advances to customers | 949,825 | 49,879 | 5.25 | 957,717 | 47,673 | 4.98 | 1,022,320 | 32,543 | 3.18 |
| Reverse repurchase agreements – non-trading$^{1}$ | 238,694 | 17,721 | 7.42 | 240,263 | 14,391 | 5.99 | 231,058 | 4,886 | 2.11 |
| Financial investments | 470,182 | 20,587 | 4.38 | 407,363 | 16,858 | 4.14 | 372,702 | 7,704 | 2.07 |
| Other interest-earning assets | 91,067 | 5,717 | 6.28 | 152,729 | 7,176 | 4.70 | 72,019 | 2,116 | 2.94 |
| **Total interest-earning assets** | **2,099,285** | **108,631** | **5.17** | **2,161,746** | **100,868** | **4.67** | **2,143,758** | **52,826** | **2.46** |

### Summary of interest expense by type of liability

| | 2024 | | | 2023 | | | 2022 | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | Average balance $m | Interest expense $m | Cost % | Average balance $m | Interest expense $m | Cost % | Average balance $m | Interest expense $m | Cost % |
| Deposits by banks$^{2}$ | 66,405 | 2,930 | 4.41 | 60,392 | 2,401 | 3.98 | 75,739 | 770 | 1.02 |
| Customer accounts$^{3}$ | 1,385,840 | 40,173 | 2.90 | 1,334,803 | 34,162 | 2.56 | 1,342,342 | 10,903 | 0.81 |
| Repurchase agreements – non-trading$^{1}$ | 187,337 | 15,617 | 8.34 | 146,605 | 10,858 | 7.41 | 118,308 | 3,085 | 2.61 |
| Debt securities in issue – non-trading | 196,440 | 12,806 | 6.52 | 184,867 | 11,223 | 6.07 | 179,775 | 5,607 | 3.12 |
| Other interest-bearing liabilities | 84,773 | 4,372 | 5.16 | 146,216 | 6,428 | 4.40 | 87,965 | 2,084 | 2.37 |
| **Total interest-bearing liabilities** | **1,920,795** | **75,898** | **3.95** | **1,872,883** | **65,072** | **3.47** | **1,804,129** | **22,449** | **1.24** |

$^{1}$ The average balances for repurchase and reverse repurchase agreements include net amounts where the criteria for offsetting are met, resulting in a lower net balance reported for repurchase agreements and thus higher cost.
$^{2}$ Including interest-bearing bank deposits only.
$^{3}$ Including interest-bearing customer accounts only.

Net interest income (‘NII’) for 2024 was $32.7bn, a decrease of $3.1bn or 9% compared with 2023. The decrease included a $2.7bn reduction mainly due to the redeployment of our commercial surplus to net trading and fair value assets, for which the associated revenue is reported in ‘net income on financial instruments held for trading or managed on a fair value basis’. The fall also reflected a $1.0bn loss due to the disposal of our business in Canada and a $0.2bn loss in 2024 related to the early redemption of legacy securities. NII in HSBC UK grew by $0.6bn, including the benefit of our structural hedge and balance sheet growth, partly offset by mortgage pricing pressures. There was also higher NII in Markets Treasury due to reinvestments in our portfolio at higher yields. Excluding the unfavourable impact of foreign currency translation differences, net interest income decreased by $1.4bn or 4%. NII for the fourth quarter of 2024 was $8.2bn, up 7% compared with the previous quarter, and down 1% compared with the fourth quarter of 2023. The increase compared with 3Q24 was predominantly driven by the non-recurrence of the adverse impact in 3Q24 from the early redemption of legacy securities. The decline in NII compared with 4Q23 was predominantly driven by the impact of lower AIEA.

Net interest margin (‘NIM’) for 2024 of 1.56% was 10bps lower compared with 2023, reflecting redeployment of our commercial surplus to net trading and fair value assets, and higher interest expense due to higher market rates and an adverse impact of $0.2bn from the early redemption of legacy securities. The decrease in NIM in 2024 included the unfavourable impact of foreign currency translation differences. Excluding this, NIM decreased by 6bps. NIM for the fourth quarter of 2024 was 1.54%, up 8bps compared with the previous quarter, and up 2bps compared with the fourth quarter of 2023. The increase against the previous quarter was primarily due to the non-recurrence of the adverse impact from the early redemption of legacy securities. The year-on-year increase was predominantly driven by HSBC UK.

Interest income for 2024 of $108.6bn increased by $7.8bn compared with 2023, primarily due to an increase in market interest rates.

Interest income of $26bn in the fourth quarter of 2024 was down $1.3bn compared with the previous quarter, and down $0.7bn compared with the fourth quarter of 2023. Both the declines were primarily due to lower market interest rates.

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## Banking net interest income

| | Year ended | Quarter ended | | | |
| --- | --- | --- | --- | --- | --- |
| | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 30 Sep 2024 | 31 Dec 2023 |
| | $m | $m | $m | $m | $m |
| Net interest income | 32,733 | 35,796 | 8,185 | 7,637 | 8,284 |
| Banking book funding costs used to generate ‘net income from financial instruments held for trading or managed on a fair value basis’ | 11,434 | 8,744 | 2,874 | 3,051 | 2,542 |
| Third-party net interest income from insurance | (429) | (445) | (109) | (104) | (109) |
| **Banking net interest income** | **43,738** | **44,095** | **10,950** | **10,584** | **10,717** |
| – of which: | | | | | |
| The Hongkong and Shanghai Banking Corporation Limited | 21,691 | 22,024 | 5,464 | 5,475 | 5,566 |
| HSBC UK Bank plc | 10,368 | 9,684 | 2,663 | 2,643 | 2,455 |
| HSBC Bank plc | 4,630 | 4,596 | 1,182 | 1,152 | 1,205 |

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## Consolidated balance sheet

### Five-year summary consolidated balance sheet

| | 2024 | 2023 | 2022$^{1}$ | 2021 | 2020 |
| --- | --- | --- | --- | --- | --- |
| | $m | $m | $m | $m | $m |
| **Assets** | | | | | |
| Cash and balances at central banks | 267,674 | 285,868 | 327,002 | 403,018 | 304,481 |
| Trading assets | 314,842 | 289,159 | 218,093 | 248,842 | 231,990 |
| Financial assets designated and otherwise mandatorily measured at fair value through profit or loss | 115,769 | 110,643 | 100,101 | 49,804 | 45,553 |
| Derivatives | 268,637 | 229,714 | 284,159 | 196,882 | 307,726 |
| Loans and advances to banks | 102,039 | 112,902 | 104,475 | 83,136 | 81,616 |
| Loans and advances to customers | 930,658 | 938,535 | 923,561 | 1,045,814 | 1,037,987 |
| Reverse repurchase agreements – non-trading | 252,549 | 252,217 | 253,754 | 241,648 | 230,628 |
| Financial investments | 493,166 | 442,763 | 364,726 | 446,274 | 490,693 |
| Assets held for sale | 27,234 | 114,134 | 115,919 | 3,411 | 299 |
| Other assets | 244,480 | 262,742 | 257,496 | 239,110 | 253,191 |
| **Total assets at 31 Dec** | **3,017,048** | **3,038,677** | **2,949,286** | **2,957,939** | **2,984,164** |
| **Liabilities** | | | | | |
| Deposits by banks | 73,997 | 73,163 | 66,722 | 101,152 | 82,080 |
| Customer accounts | 1,654,955 | 1,611,647 | 1,570,303 | 1,710,574 | 1,642,780 |
| Repurchase agreements – non-trading | 180,880 | 172,100 | 127,747 | 126,670 | 111,901 |
| Trading liabilities | 65,982 | 73,150 | 72,353 | 84,904 | 75,266 |
| Financial liabilities designated at fair value | 138,727 | 141,426 | 127,321 | 145,502 | 157,439 |
| Derivatives | 264,448 | 234,772 | 285,762 | 191,064 | 303,001 |
| Debt securities in issue | 105,785 | 93,917 | 78,149 | 78,557 | 95,492 |
| Insurance contract liabilities | 107,629 | 120,851 | 108,816 | 112,745 | 107,191 |
| Liabilities of disposal groups held for sale | 29,011 | 108,406 | 114,597 | 9,005 | — |
| Other liabilities | 203,361 | 216,635 | 212,319 | 190,989 | 204,019 |
| **Total liabilities at 31 Dec** | **2,824,775** | **2,846,067** | **2,764,089** | **2,751,162** | **2,779,169** |
| **Equity** | | | | | |
| Total shareholders’ equity | 184,973 | 185,329 | 177,833 | 198,250 | 196,443 |
| Non-controlling interests | 7,300 | 7,281 | 7,364 | 8,527 | 8,552 |
| **Total equity at 31 Dec** | **192,273** | **192,610** | **185,197** | **206,777** | **204,995** |
| **Total liabilities and equity at 31 Dec** | **3,017,048** | **3,038,677** | **2,949,286** | **2,957,939** | **2,984,164** |

---

## Combined view of customer lending and customer deposits$^{1}$

| | 2024 $m | 2023 $m |
| --- | --- | --- |
| Loans and advances to customers | 930,658 | 938,535 |
| Loans and advances to customers of disposal groups reported in ‘Assets held for sale’ | 965 | 73,285 |
| – banking business in Canada | — | 56,129 |
| – retail banking operations in France | — | 16,902 |
| – private banking business in Germany | 309 | — |
| – business in South Africa | 656 | — |
| – other | — | 254 |
| Non-current assets held for sale | 12 | 92 |
| **Combined customer lending** | **931,635** | **1,011,912** |
| Currency translation | — | (27,137) |
| **Combined customer lending at constant currency** | **931,635** | **984,775** |
| Customer accounts | 1,654,955 | 1,611,647 |
| Customer accounts reported in ‘Liabilities of disposal groups held for sale’ | 5,399 | 85,950 |
| – banking business in Canada | — | 63,001 |
| – retail banking operations in France | — | 22,307 |
| – private banking business in Germany | 2,085 | — |
| – business in South Africa | 3,294 | — |
| – other | 20 | 642 |
| **Combined customer deposits** | **1,660,354** | **1,697,597** |
| Currency translation | — | (38,656) |
| **Combined customer deposits at constant currency** | **1,660,354** | **1,658,941** |

$^{1}$ On 9 April 2024, HSBC Latin America B.V. entered into a binding agreement to sell its business in Argentina to Grupo Financiero Galicia (‘Galicia’). The sale was completed on 6 December 2024, so is not included in the table above.

---

## Balance sheet commentary compared with 31 December 2023

At 31 December 2024, total assets of $3.0tn were $22bn or 1% lower on a reported basis and increased by $45bn or 1% on a constant currency basis.

Reported loans and advances to customers as a percentage of customer accounts was 56.2% compared with 58.2% at 31 December 2023. The movement in this ratio reflected a higher growth in customer accounts than in lending.

### Assets
**Cash and balances at central banks** decreased by $18bn or 6%, which included an $11bn adverse impact of foreign currency translation differences. The decrease was mainly in HSBC UK, reflecting a reduction in repurchase agreements, as well as an increase in the deployment of our cash surplus into financial investments. Cash also decreased in our legal entities in the US to a partial redeployment of surplus liquidity to reverse repurchase agreements, and in Hong Kong due to lower balances maintained for faster payment system flow. This was partly offset by increases in HSBC Bank plc from an increase in deposit bank balances and issuances of new commercial paper and certificates of deposit.

**Trading assets** increased by $26bn or 9%, mainly as we captured increased client activity in equity and debt securities, particularly in our legal entity in Hong Kong and in HSBC Bank plc. The increase in trading assets also reflected the use of surplus liquidity to fund trading activities given the subdued demand for customer lending.

**Derivative assets** increased by $39bn or 17%, reflecting an increase in foreign exchange contracts, mainly in HSBC Bank plc and our legal entities in Asia, as a result of foreign exchange rate movements. The increase in derivative assets was consistent with the increase in derivative liabilities, as the underlying risk is broadly matched.

**Loans and advances to customers** of $931bn decreased by $8bn or 1% on a reported basis. This included an adverse impact of foreign currency translation differences of $21bn. Loans and advances to customers are net of allowances for ECL.

On a constant currency basis, loans and advances to customers increased by $14bn, reflecting the following movements.

In WPB, customer lending increased by $2bn, reflecting growth in mortgage balances, including in our main legal entities in the UK (up $5bn) and the US (up $3bn). There was also growth in lending in Private Banking (up $3bn) and in unsecured lending (up $1bn). These increases were partly offset by a $7.4bn (€7.1bn) transfer to Corporate Centre of a portfolio of home and certain other loans retained following the sale of our retail banking operations in France.

In CMB, customer lending was $6bn higher, reflecting increases in our legal entities in mainland China (up $2bn), India (up $2bn), and Mexico (up $1bn). There were also increases in HSBC UK (up $2bn) and HSBC Bank plc (up $1bn) from higher revolving credit facility balances and term lending. These increases were partly offset by a reduction in lending balances in our main legal entity in Hong Kong (down $3bn) due to lower market wide loan demand and competitive pricing.

In GBM, customer lending balances were broadly stable. There was a decrease in lending balances in our main legal entity in Hong Kong (down $6bn) due to muted client demand. The reduction was broadly offset by growth in our legal entity in Singapore (up $3bn) reflecting higher overdraft balances, and in our main legal entity in Australia (up $2bn) from higher term lending balances.

In Corporate Centre, the increase in customer balances of $7bn reflected the transfer of balances from WPB, mentioned above.

**Financial investments** increased by $50bn or 11%, mainly in our main legal entities in Hong Kong and Singapore as well as in HSBC UK and HSBC Bank plc from the purchase of debt securities, treasury and other eligible bills, as we redeployed our commercial surplus to benefit from higher yield curves and enhance our hedging activities on net interest income. The increase was across both debt instruments held at fair value through other comprehensive income and instruments held at amortised cost.

**Assets held for sale** decreased by $87bn or 76% following the completion of the sales of our retail banking operations in France and our banking operations in Canada in 2024.

**Other assets** decreased by $18bn or 7% primarily reflecting a reduction in settlement accounts balances, including in HSBC Bank plc as well as in our legal entities in the US and Hong Kong.

---

### Liabilities
**Customer accounts** of $1.7tn increased by $43bn or 3% on a reported basis. This included an adverse impact of foreign currency translation differences of $32bn.

On a constant currency basis, customer accounts increased by $75bn, reflecting the following movements.

In WPB, customer accounts grew by $31bn, reflecting higher interest-bearing savings and time deposit balances due to strong deposit inflow as interest rates remained high. The increase in customer accounts included growth in our main legal entities in Asia (up $30bn) and in HSBC UK (up $6bn).

In CMB, customer accounts increased by $25bn, primarily in our legal entities in Asia (up $12bn), including in Hong Kong (up $8bn) due to an increase in term deposits and in mainland China (up $3bn) due to an increase in current and savings accounts. Balances also increased in HSBC Bank plc (up $9bn) driven by organic growth from existing customers as well as new to bank customers, and in our main legal entity in Mexico (up $3bn).

In GBM, customer accounts increased by $20bn, due to higher balances in our legal entities in Asia (up $9bn) supported by term deposit campaigns, and in HSBC Bank plc (up $8bn) driven by an increase in short-term money market account balances. Balances also rose in our main legal entity in the Middle East (up $3bn), including in term deposits and current accounts.

**Debt securities in issue** increased by $12bn or 13%, primarily in HSBC Bank plc mainly driven by new commercial paper and certificates of deposit issued to meet liquidity and funding requirements.

**Derivative liabilities** increased by $30bn or 13%, which is consistent with the increase in derivative assets, since the underlying risk is broadly matched.

**Liabilities of disposal groups held for sale** decreased by $79bn or 73% following the completion of the sales of our retail banking operations in France and our banking operations in Canada during 2024.

**Other liabilities** decreased by $13bn or 6%, including from a $9bn reduction in settlement account balances in our main legal entity in the US.

---

### Equity
**Total shareholders’ equity**, including non-controlling interests, of $192bn was stable compared with 31 December 2023.

Shareholders’ equity was increased by profits generated of $24bn and net gains through other comprehensive income (‘OCI’) of $2bn. These increases were broadly offset by the impact of dividends paid of $16bn, and the impact of our $11bn share buy-back activities in 2024.

The net gains through OCI of $2bn included a favourable movement of $6bn due to the recycling of foreign exchange and other reserves to the income statement, primarily relating to the completion of disposals in Argentina and Canada, as well as a favourable movement of $1bn from the effects of hyperinflation. These impacts were partly offset by $5bn of exchange differences.

---

## Risk-weighted assets
Risk-weighted assets (‘RWAs’) decreased by $15.8bn during the year, primarily due to strategic disposals of $47.8bn, a decrease of $22.2bn from foreign currency translation differences and a $8.9bn reduction from methodology and policy changes, mainly driven by a $7.5bn fall due to regulatory changes related to the risk-weighting of residential mortgages in Hong Kong. These were offset by the increase of $63.1bn RWAs, reflected in the following movements:

- a $49.4bn increase in asset size, which was in part attributed to a $14.6bn rise in operational risk, driven by an increase in average income. Further increases were due to corporate lending growth, largely in HSBC UK Bank plc and in SAB, higher sovereign exposures in Other trading entities and Asia, and retail mortgage growth in the US and HSBC UK Bank plc; and
- a $7.4bn increase mainly following a revision to the definition of default in our probability of default (‘PD’) models for exposures to financial institutions and post-model adjustments in Hong Kong, and a $6.3bn increase from credit risk migrations in Asia, including in the Hong Kong commercial real estate sector.

In January 2025, the PRA announced the delay of Basel 3.1 implementation to 1 January 2027 pending US developments. The near-final rules released in September 2024 are now subject to a three-year transitional provision, ensuring that the date for full implementation remains 1 January 2030. We expect that the impact on our CET1 ratio will be a modest benefit.

---

# Global businesses and legal entities

## Summary
The Group CEO, supported in 2024 by the Group Executive Committee (‘GEC’), reviewed operating activity on a number of bases, including by global business and legal entities. Up to 31 December 2024, our global businesses – Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets – along with Corporate Centre were our reportable segments under IFRS 8 ‘Operating Segments’ and are presented below and in Note 10: Segmental analysis on page 383. Following our organisational announcement in October 2024, effective from 1 January 2025 the Group’s operating segments will comprise four new businesses – Hong Kong, UK, Corporate and Institutional Banking, and International Wealth and Premier Banking – along with Corporate Centre. These will replace our previously reported operating segments up to 31 December 2024.

---

### Supplementary analysis of constant currency results and notable items by global business

#### Constant currency results$^{1}$
| | 2024 | | | | |
| --- | --- | --- | --- | --- | --- |
| | Wealth and Personal Banking$^{2}$ $m | Commercial Banking $m | Global Banking and Markets $m | Corporate Centre $m | Total $m |
| Revenue$^{3}$ | 28,674 | 21,580 | 17,529 | (1,929) | 65,854 |
| ECL | (1,335) | (1,815) | (235) | (29) | (3,414) |
| Operating expenses | (15,204) | (7,906) | (10,231) | 298 | (33,043) |
| Share of profit in associates and joint ventures | 47 | 1 | — | 2,864 | 2,912 |
| Profit/(loss) before tax | 12,182 | 11,860 | 7,063 | 1,204 | 32,309 |
| Loans and advances to customers (net) | 447,085 | 306,926 | 169,516 | 7,131 | 930,658 |
| Customer accounts | 823,267 | 490,475 | 340,898 | 315 | 1,654,955 |

#### Notable items
| | 2024 | | | | |
| --- | --- | --- | --- | --- | --- |
| | Wealth and Personal Banking $m | Commercial Banking $m | Global Banking and Markets $m | Corporate Centre $m | Total $m |
| **Notable items** | | | | | |
| **Revenue** | | | | | |
| Disposals, acquisitions and related costs$^{1}$ | 28 | — | (14) | (1,357) | (1,343) |
| – of which: | | | | | |
| Argentina$^{1}$ | — | — | — | (6,138) | (6,138) |
| Canada$^{2}$ | — | — | — | 4,924 | 4,924 |
| France | 55 | — | — | 5 | 60 |
| Early redemption of legacy securities | — | — | — | (237) | (237) |
| **Operating expenses** | | | | | |
| Disposals, acquisitions and related costs | (3) | (2) | (2) | (192) | (199) |
| – of which: | | | | | |
| Argentina | — | (9) | — | (34) | (43) |
| Canada | (1) | (1) | — | (151) | (153) |
| France | 1 | — | — | (6) | (5) |
| Restructuring and other related costs$^{3}$ | (10) | 2 | (1) | (25) | (34) |

---

## New operating segments effective 1 January 2025 - summary results

Effective from 1 January 2025, the Group’s reporting segments under IFRS 8 ‘Operating Segments’ will comprise four new businesses – Hong Kong, UK, Corporate and Institutional Banking, and International Wealth and Premier Banking – along with Corporate Centre.

### 2024
| | Hong Kong $m | UK $m | Corporate and Institutional Banking $m | International Wealth and Premier Banking $m | Corporate Centre $m | Total $m |
| --- | --- | --- | --- | --- | --- | --- |
| Revenue | 15,034 | 11,954 | 26,819 | 13,976 | (1,929) | 65,854 |
| ECL | (1,076) | (402) | (869) | (1,038) | (29) | (3,414) |
| Operating expenses | (4,837) | (4,947) | (14,544) | (9,013) | 298 | (33,043) |
| Share of profit in associates and joint ventures less impairment | — | — | 1 | 47 | 2,864 | 2,912 |
| Profit before tax | 9,121 | 6,605 | 11,407 | 3,972 | 1,204 | 32,309 |
| RoTE (%) | c.38% | c.25% | c.14% | c.16% | c.1% | 14.6% |
| **At 31 Dec 2024** | | | | | | |
| Loans and advances to customers (net) | 235,208 | 267,293 | 284,701 | 136,325 | 7,131 | 930,658 |
| Customer accounts | 507,389 | 330,012 | 557,796 | 259,443 | 315 | 1,654,955 |
| RWAs | 143,668 | 133,495 | 388,047 | 85,673 | 87,371 | 838,254 |

---

## Analysis of reported results by legal entities

### HSBC reported profit/(loss) before tax and balance sheet data

| | 2024 | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | HSBC UK Bank plc $m | HSBC Bank plc $m | The Hongkong and Shanghai Banking Corporation Limited $m | HSBC Bank Middle East Limited $m | HSBC North America Holdings Inc. $m | HSBC Bank Canada $m | Grupo Financiero HSBC, S.A. de C.V. $m | Other trading entities $m | Holding companies, shared service centres and intra-Group eliminations $m | Total $m |
| Net interest income | 10,331 | 1,254 | 15,077 | 1,590 | 1,613 | 300 | 2,292 | 2,774 | (2,498) | 32,733 |
| Net fee income | 1,672 | 1,629 | 5,449 | 508 | 1,372 | 129 | 630 | 1,076 | (164) | 12,301 |
| Net income from financial instruments held for trading or managed on a fair value basis | 580 | 6,042 | 11,781 | 331 | 914 | 33 | 504 | 411 | 520 | 21,116 |
| Net income from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit and loss | — | 1,100 | 4,608 | — | — | — | 22 | 183 | (12) | 5,901 |
| Insurance finance income/(expense) | — | (1,261) | (4,562) | — | — | — | (26) | (150) | 21 | (5,978) |
| Insurance service result | — | 217 | 1,042 | — | — | — | 76 | (7) | (18) | 1,310 |
| Other income/(expense)$^{1}$ | 169 | 576 | 658 | 75 | 365 | — | 75 | (984) | (2,463) | (1,529) |
| **Net operating income before change in expected credit losses and other credit impairment charges$^{2}$** | **12,752** | **9,557** | **34,053** | **2,504** | **4,264** | **462** | **3,573** | **3,303** | **(4,614)** | **65,854** |
| Change in expected credit losses and other credit impairment charges | (405) | (211) | (1,532) | (198) | (81) | (40) | (864) | (93) | 10 | (3,414) |
| **Net operating income** | **12,347** | **9,346** | **32,521** | **2,306** | **4,183** | **422** | **2,709** | **3,210** | **(4,604)** | **62,440** |
| Total operating expenses excluding impairment of goodwill and other intangible assets | (5,124) | (6,718) | (14,296) | (1,191) | (3,349) | (236) | (1,992) | (1,959) | 1,899 | (32,966) |
| Impairment of goodwill and other intangible assets | (11) | (5) | (33) | (1) | (2) | — | (2) | (22) | (1) | (77) |
| **Operating profit/(loss)** | **7,212** | **2,623** | **18,192** | **1,114** | **832** | **186** | **715** | **1,229** | **(2,706)** | **29,397** |
| Share of profit in associates and joint ventures less impairment$^{3}$ | 1 | 22 | 2,278 | — | — | — | 15 | 600 | (4) | 2,912 |
| **Profit/(loss) before tax** | **7,213** | **2,645** | **20,470** | **1,114** | **832** | **186** | **730** | **1,829** | **(2,710)** | **32,309** |

---

## Reconciliation of alternative performance measures

### Alternative performance measure definitions

| Alternative performance measure | Definition |
| --- | --- |
| Reported revenue excluding notable items | Reported revenue after excluding notable items reported under revenue |
| Reported profit before tax excluding notable items | Reported profit before tax after excluding notable items reported under revenue less notable items reported under operating expenses |
| Constant currency revenue excluding notable items$^{1}$ | Reported revenue excluding notable items and the impact of foreign exchange translation$^{2}$ |
| Constant currency profit before tax excluding notable items$^{1}$ | Reported profit before tax excluding notable items and the impact of foreign exchange translation$^{2}$ |
| Constant currency revenue excluding notable items and strategic transactions$^{1}$ | Reported revenue excluding notable items, strategic transactions and the impact of foreign exchange translation$^{3}$ |
| Constant currency profit before tax excluding notable items and strategic transactions$^{1}$ | Reported profit before tax excluding notable items, strategic transactions and the impact of foreign exchange translation$^{3}$ |
| Return on average ordinary shareholders’ equity (‘RoE’) | Profit attributable to the ordinary shareholders / Average ordinary shareholders’ equity |
| Return on average tangible equity (‘RoTE’) | Profit attributable to the ordinary shareholders, excluding impairment of goodwill and other intangible assets / Average ordinary shareholders’ equity adjusted for goodwill and intangibles |
| Return on average tangible equity (‘RoTE’) excluding notable items | Profit attributable to the ordinary shareholders, excluding impairment of goodwill and other intangible assets and notable items$^{2}$ / Average ordinary shareholders’ equity adjusted for goodwill and intangibles and notable items$^{2}$ |
| Net asset value per ordinary share | Total ordinary shareholders’ equity$^{4}$ / Basic number of ordinary shares in issue after deducting own shares held |
| Tangible net asset value per ordinary share | Tangible ordinary shareholders’ equity$^{5}$ / Basic number of ordinary shares in issue after deducting own shares held |
| Post-tax return on average total assets | Profit after tax / Average total assets |
| Average total shareholders’ equity on average total assets | Average total shareholders’ equity / Average total assets |
| Expected credit losses and other credit impairment charges (‘ECL’) as % of average gross loans and advances to customers | Annualised constant currency ECL$^{6}$ / Constant currency average gross loans and advances to customers$^{6}$ |
| Expected credit losses and other credit impairment charges (‘ECL’) as % of average gross loans and advances to customers, including held for sale | Annualised constant currency ECL$^{6}$ / Constant currency average gross loans and advances to customers, including held for sale$^{6}$ |
| Target basis operating expenses | Reported operating expenses excluding notable items, foreign exchange translation and other excluded items$^{7}$ |
| Basic earnings per share excluding material notable items and related impacts | Profit attributable to ordinary shareholders excluding material notable items and related impacts$^{8}$ / Weighted average number of ordinary shares outstanding after deducting own shares held |
| Multi-jurisdictional client revenue | Total client revenue we generate from clients that hold a relationship with us that generates revenue in more than one market |

$^{1}$ Constant currency performance is computed by adjusting reported results for the effects of foreign currency translation differences, which distort period-on period comparisons.
$^{2}$ For details of notable items, see ‘Supplementary financial information’ on page 99.
$^{3}$ For details of strategic transactions, see ‘Strategic transactions supplementary analysis’ on page 102.
$^{4}$ Total ordinary shareholders’ equity is total shareholders’ equity less non-cumulative preference shares and capital securities.
$^{5}$ Tangible ordinary shareholders’ equity is total ordinary shareholders’ equity excluding goodwill and other intangible assets (net of deferred tax).
$^{6}$ The constant currency numbers are derived by adjusting reported ECL and average loans and advances to customers for the effects of foreign currency translation differences.
$^{7}$ Other excluded items includes the impact of re-translating comparative period financial information at the latest rates of foreign exchange in hyperinflationary economies, which we consider to be outside of our control, and the impact of the sale of our retail banking operations in France and banking business in Canada.
$^{8}$ For details of material notable items and related impacts, that are included in the calculation of Profit attributable to ordinary shareholders excluding material notable items and related impacts, see page 125.