TIDMHSBA
RNS Number : 5031Q
HSBC Holdings PLC
19 June 2020
HSBC HOLDINGS PLC - GROUP REPORTING CHANGES
HSBC has today published details of the previously announced
changes to its segmental reporting, which are effective from 2Q20.
In advance of the publication of HSBC Holdings plc's 2020 Interim
Report, the attached data pack (
http://www.rns-pdf.londonstockexchange.com/rns/5031Q_1-2020-6-19.pdf
) presents the impact on the previously reported financial
information of HSBC Holdings plc and its consolidated subsidiary
undertakings (the 'Group') for the quarters in 2018, 2019 and 1Q20,
and the full years 2018 and 2019 of (i) the global business
reorganisation outlined in the business update on 18 February 2020
(the 'Business Update'), the details of which are set out in the
HSBC Holding plc Annual Report and Accounts 2019 and (ii) the
reallocation of elements of the Corporate Centre results to the
global businesses.
A copy of the data pack is also available to view and download
at
https://www.hsbc.com/investors/results-and-announcements/all-reporting/group
.
As a consequence of the changes announced in the Business
Update, a new global business, Wealth and Personal Banking, has
been created by combining Retail Banking and Wealth Management and
Global Private Banking.
The Group's operating segments will now comprise three global
businesses and a Corporate Centre. The Group's three global
businesses are as follows:
-- Wealth and Personal Banking ('WPB');
-- Commercial Banking ('CMB'); and
-- Global Banking and Markets ('GB&M').
In addition, effective from 2Q20 the Group has also made
realignments within its internal reporting, reallocating the
following items from Corporate Centre to the global businesses:
-- Balance Sheet Management;
-- Net interest expense on debt issued by HSBC Holdings plc; and
-- Hyperinflation accounting adjustments.
This change is intended to provide a more appropriate reflection
of return on average tangible equity ('RoTE') by global business
than prior to the reallocation.
While the resegmentation and the Corporate Centre reallocation
will impact the reported segmental results of the global businesses
and the Corporate Centre, they have no impact on and do not change
the consolidated financial results nor position of the Group.
For illustrative purposes, the results of the operating segments
have been re-presented following the changes outlined above. The
re-presentation has been included in the attached data pack
for:
-- Quarterly periods from 1Q18 to 1Q20; and
-- Full year 2018 and 2019.
Also included in the attached data pack for completeness and for
the same periods are the results of the Group, as well as the
geographical regions and a small number of key markets. While the
total reported results of the geographical regions and key markets
have not been impacted by the changes and have therefore not
changed, the segmental results within them have been impacted and
have been re-presented accordingly.
The Group's reported results are prepared in accordance with
International Financial Reporting Standards ('IFRSs'), as detailed
in the HSBC Holdings plc Annual Report and Accounts 2019. To
measure performance, the Group also uses non-GAAP financial
measures, including those derived from reported results that
eliminate factors that distort period-on-period comparisons. The
'adjusted performance' measure is described below.
The global business segmental results are presented on an
adjusted basis in accordance with IFRS 8 'Operating Segments', as
detailed on page 263 of the HSBC Holdings plc Annual Report and
Accounts 2019.
Adjusted performance is computed by adjusting reported results
for the effects of foreign currency translation differences and
significant items, which both distort period-on-period comparisons.
The Group considers adjusted performance provides useful
information for investors by aligning internal and external
reporting, identifying and quantifying items management believes to
be significant, and providing insight into how management assesses
period-on-period performance.
Investor enquiries to:
Richard O'Connor (UK) Tel: +44 (0)20 7991 6590
Mark Phin (HK) Tel: +852 2822 4908
Media enquiries to:
Heidi Ashley (UK) Tel: +44 (0)20 7992 2045
Patrick Humphris (HK) Tel: + 852 2822 2052
Note to editors:
HSBC Holdings plc
HSBC Holdings plc, the parent company of HSBC, is headquartered
in London. HSBC serves customers worldwide from offices in 64
countries and territories in its geographical regions: Europe,
Asia, North America, Latin America, and Middle East and North
Africa. With assets of US$2,918bn at 31 March 2020, HSBC is one of
the world's largest banking and financial services organisations
.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This announcement contains both historical and forward-looking
statements. All statements other than statements of historical fact
are, or may be deemed to be, forward-looking statements.
Forward-looking statements may be identified by the use of terms
such as 'may,' 'intends,' 'plan,' 'will,' 'should,' 'potential,'
'reasonably possible' or 'anticipates' or the negative thereof or
similar expressions, or by discussions of strategy. The Group has
based the forward-looking statements on current expectations and
projections about future events. These forward-looking statements
are subject to risks, uncertainties and assumptions about the
Group, as described under 'Cautionary statement regarding
forward-looking statements' contained in the HSBC Holdings plc
Annual Report on Form 20-F for the year ended 31 December 2019,
filed with the SEC on 19 February 2020 (the '2019 Form 20-F'), and
in the HSBC Holdings plc 1Q 2020 Earnings Release furnished to the
SEC on Form 6-K on 28 April 2020 (the '1Q 2020 Earnings
Release').
The Group undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise. In light of these risks,
uncertainties and assumptions, the forward-looking events discussed
herein might not occur. Investors are cautioned not to place undue
reliance on any forward-looking statements, which speak only as of
their dates. Additional information, including information on
factors which may affect the the Group's business, is contained in
the 2019 Form 20-F and the 1Q 2020 Earnings Release.
Non-GAAP financial information
This announcement and the materials referred to herein contain
non-GAAP financial information. The primary non-GAAP financial
measures the Group uses are presented on an 'adjusted performance'
basis which is computed by adjusting reported results for the
period-on-period effects of foreign currency translation
differences and significant items which distort period-on-period
comparisons. Significant items are those items which management and
investors would ordinarily identify and consider separately when
assessing performance in order to better understand the underlying
trends in the business.
ends/all
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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