|
Abbreviations
|
|
Abbreviation
|
Brief description
|
|
A
|
|
|
A$
|
Australian dollar
|
|
ABCP
|
Asset-backed commercial paper
|
|
ABS1
|
Asset-backed security
|
|
ACF
|
Advances to Core Funding
|
|
ADR
|
American Depositary Receipt
|
|
ADS
|
American Depositary Share
|
|
AIEA
|
Average interest-earning assets
|
|
ALCM
|
Asset, Liability and Capital Management
|
|
ALCO
|
Asset and Liability Management Committee
|
|
AML
|
Anti-money laundering
|
|
ARM1
|
Adjustable-rate mortgage
|
|
ARS
|
Argentine peso
|
|
B
|
|
|
Basel Committee
|
Basel Committee on Banking Supervision
|
|
Basel II1
|
2006 Basel Capital Accord
|
|
Basel III1
|
Basel Committee's reforms to strengthen global capital and liquidity rules
|
|
BBA
|
British Bankers' Association
|
|
BMD
|
Bermudan dollar
|
|
BoCom
|
Bank of Communications Co., Limited, one of China's largest banks
|
|
Bps1
|
Basis points. One basis point is equal to one hundredth of a percentage point
|
|
BRL
|
Brazilian real
|
|
BSA
|
Bank Secrecy Act (US)
|
|
BSM
|
Balance Sheet Management
|
|
C
|
|
|
C$
|
Canadian dollar
|
|
CAPM
|
Capital Asset Pricing Model
|
|
CCR1
|
Counterparty credit risk
|
|
CD
|
Certificate of deposit
|
|
CDO1
|
Collateralised debt obligation
|
|
CDS1
|
Credit default swap
|
|
CET11
|
Common equity tier 1
|
|
CGU
|
Cash-generating unit
|
|
CHF
|
Swiss franc
|
|
CMB
|
Commercial Banking, a global business
|
|
CML1
|
Consumer and Mortgage Lending (US)
|
|
CNY
|
Chinese yuan
|
|
CP1
|
Commercial paper
|
|
CPB1
|
Capital planning buffer
|
|
CPI
|
Consumer price index
|
|
CRD1
|
Capital Requirements Directive
|
|
CRR1
|
Customer risk rating
|
|
CRS
|
Card and Retail Services
|
|
CVA1
|
Credit valuation adjustment
|
|
D
|
|
|
DANY DPA
|
Two-year deferred prosecution agreement with the New York County District Attorney (US)
|
|
DBS
|
Defined Benefit Section
|
|
Dodd-Frank
|
Dodd-Frank Wall Street Reform and Consumer Protection Act (US)
|
|
DoJ
|
Department of Justice (US)
|
|
DPA
|
Deferred Prosecution Agreement (US)
|
|
DPF
|
Discretionary participation feature of insurance and investment contracts
|
|
DVA1
|
Debit valuation adjustment
|
|
E
|
|
|
EAD1
|
Exposure at default
|
|
EBA
|
European Banking Authority
|
|
ECB
|
European Central Bank
|
|
ECJ
|
European Court of Justice
|
|
EDTF
|
Enhanced Disclosure Task Force
|
|
EGP
|
Egyptian pound
|
|
EL1
|
Expected loss
|
|
EU
|
European Union
|
|
Euribor
|
European Interbank Offered Rate
|
|
Abbreviation
|
Brief description
|
|
F
|
|
|
Fannie Mae
|
Federal National Mortgage Association (US)
|
|
FCA
|
Financial Conduct Authority (UK)
|
|
FCA Direction
|
Undertaking originally with the FSA to comply with certain forward-looking obligations with respect to AML and sanctions requirements
|
|
FHFA
|
Federal Housing Finance Agency
|
|
First Direct
|
A division of HSBC Bank plc
|
|
FPC
|
Financial Policy Committee (UK)
|
|
Freddie Mac
|
Federal Home Loan Mortgage Corporation (US)
|
|
FSMA
|
Financial Services and Markets Act 2000 (UK)
|
|
FSVC
|
Financial System Vulnerabilities Committee
|
|
FTE
|
Full-time equivalent staff
|
|
FTSE
|
Financial Times - Stock Exchange index
|
|
FuM
|
Funds under management
|
|
G
|
|
|
G20
|
Leaders, finance ministers and central bank governors of the Group of Twenty countries
|
|
GAC
|
Group Audit Committee
|
|
GB&M
|
Global Banking and Markets, a global business
|
|
GDP
|
Gross domestic product
|
|
GENPRU
|
PRA's rules, as set out in the General Prudential Sourcebook
|
|
Ginnie Mae
|
Government National Mortgage Association (US)
|
|
GLBA
|
Gramm-Leach-Bliley Act (US)
|
|
Global Markets
|
HSBC's treasury and capital markets services in Global Banking and Markets
|
|
GMB
|
Group Management Board
|
|
GPB
|
Global Private Banking, a global business
|
|
GPSP
|
Group Performance Share Plan
|
|
GRC
|
Group Risk Committee
|
|
Group
|
HSBC Holdings together with its subsidiary undertakings
|
|
G-SIB1
|
Global systemically important bank
|
|
H
|
|
|
Hang Seng Bank
|
Hang Seng Bank Limited, one of Hong Kong's largest banks
|
|
HK$
|
Hong Kong dollar
|
|
HNAH
|
HSBC North America Holdings Inc.
|
|
Hong Kong
|
Hong Kong Special Administrative Region of the People's Republic of China
|
|
HSBC
|
HSBC Holdings together with its subsidiary undertakings
|
|
HSBC Afore
|
HSBC Afore S.A. de C.V.
|
|
HSBC Bank
|
HSBC Bank plc
|
|
HSBC Bank Argentina
|
HSBC Bank Argentina S.A.
|
|
HSBC Bank Bermuda
|
HSBC Bank Bermuda Limited
|
|
HSBC Bank Malaysia
|
HSBC Bank Malaysia Berhad
|
|
HSBC Bank Middle East
|
HSBC Bank Middle East Limited
|
|
HSBC Bank USA
|
HSBC's retail bank in the US, HSBC Bank USA, N.A.
|
|
HSBC Canada
|
The sub-group, HSBC Bank Canada, HSBC Trust Company Canada, HSBC Mortgage Corporation Canada, HSBC Securities Canada and HSBC Financial Co. Canada, consolidated for liquidity purposes
|
|
HSBC Finance
|
HSBC Finance Corporation, the US consumer finance company (formerly Household International, Inc.)
|
|
HSBC France
|
HSBC's French banking subsidiary, formerly CCF S.A.
|
|
HSBC Holdings
|
HSBC Holdings plc, the parent company of HSBC
|
|
HSBC Mexico
|
HSBC México S.A., the commercial banking subsidiary of Grupo Financiero HSBC, S.A. de C.V.
|
|
HSBC Premier
|
HSBC's premium global banking service
|
|
HSBC Private Bank (Suisse)
|
HSBC Private Bank (Suisse) SA, HSBC's private bank in Switzerland
|
|
HSBC USA
|
The sub-group, HSBC USA Inc (the holding company of HSBC Bank USA) and HSBC Bank USA, consolidated for liquidity purposes
|
|
HSI
|
HSBC Securities (USA) Inc.
|
|
HTCD
|
HSBC Trust Company (Delaware), N.A.
|
|
I
|
|
|
IAS
|
International Accounting Standards
|
|
IASB
|
International Accounting Standards Board
|
|
ICB
|
Independent Commission on Banking
|
|
IFRIC
|
IFRS Interpretations Committee
|
|
IFRSs
|
International Financial Reporting Standards
|
|
Industrial Bank
|
Industrial Bank Co. Limited, a national joint-stock bank in mainland China in which Hang Seng Bank Limited has a shareholding
|
|
INR
|
Indian rupee
|
|
IRB1
|
Internal ratings-based
|
|
ISDA
|
International Swaps and Derivatives Association
|
|
Abbreviation
|
Brief description
|
|
K
|
|
|
KPMG
|
KPMG Audit Plc and its affiliates
|
|
KRW
|
South Korean won
|
|
KYC
|
Know your customer
|
|
L
|
|
|
LCR
|
Liquidity Coverage Ratio
|
|
LFRF
|
Liquidity and funding risk management framework
|
|
LGD1
|
Loss given default
|
|
Libor
|
London Interbank Offer Rate
|
|
LIC
|
Loan impairment charge and other credit risk provision
|
|
LTV1
|
Loan-to-value ratio
|
|
M
|
|
|
Madoff Securities
|
Bernard L Madoff Investment Securities LLC
|
|
Mainland China
|
People's Republic of China excluding Hong Kong
|
|
Mazarin
|
Mazarin Funding Limited, an asset-backed CP conduit
|
|
MBS
|
US mortgage-backed security
|
|
MENA
|
Middle East and North Africa
|
|
Monoline1
|
Monoline insurance company
|
|
MSCI
|
Morgan Stanley Capital International index
|
|
MTN
|
Medium-term notes
|
|
MXN
|
Mexican peso
|
|
N
|
|
|
NSFR
|
Net Stable Funding Ratio
|
|
NYSE
|
New York Stock Exchange
|
|
O
|
|
|
OCC
|
Office of the Comptroller of the Currency (US)
|
|
OFAC
|
Office of Foreign Assets Control (US)
|
|
OIB
|
Oman International Bank S.A.O.G.
|
|
OIS
|
Overnight index swap
|
|
ORMF
|
Operational risk management framework
|
|
OTC1
|
Over-the-counter
|
|
P
|
|
|
PAB
|
Panamanian balboa
|
|
PD1
|
Probability of default
|
|
Performance Shares1
|
Awards of HSBC Holdings ordinary shares under employee share plans that are subject to corporate performance conditions
|
|
Ping An
|
Ping An Insurance (Group) Company of China, Ltd, the second-largest life insurer in the PRC
|
|
PPI
|
Payment protection insurance product
|
|
PRA
|
Prudential Regulation Authority (UK)
|
|
PRC
|
People's Republic of China
|
|
Premier
|
HSBC Premier, HSBC's premium personal global banking service
|
|
PVIF
|
Present value of in-force long-term insurance business
|
|
R
|
|
|
RBWM
|
Retail Banking and Wealth Management, a global business
|
|
Repo1
|
Sale and repurchase transaction
|
|
Restricted Shares
|
Awards of Restricted Shares define the number of HSBC Holdings ordinary shares to which the employee will become entitled, generally between one and three years from the date of the award, and normally subject to the individual remaining in employment
|
|
Reverse repo
|
Security purchased under commitments to sell
|
|
Risk Management Meeting
|
A committee of the Group Management Board
|
|
RM
|
Malaysian ringgit
|
|
RMB
|
Renminbi
|
|
RMBS
|
Residential mortgage-backed securities
|
|
RMC
|
Risk Management Committee
|
|
RoRWA
|
Return on average risk-weighted assets
|
|
RPI
|
Retail price index (UK)
|
|
RRP
|
Recovery and resolution plan
|
|
RWA1
|
Risk-weighted assets
|
|
Abbreviation
|
Brief description
|
|
S
|
|
|
S&P
|
Standard and Poor's rating agency
|
|
SE
|
Structured entity
|
|
SEC
|
Securities and Exchange Commission (US)
|
|
SIC
|
Securities investment conduit
|
|
SIV1
|
Structured investment vehicle
|
|
SME
|
Small and medium-sized enterprise
|
|
Solitaire
|
Solitaire Funding Limited, a special purpose entity managed by HSBC
|
|
SPE1
|
Special Purpose Entity
|
|
SR
|
Saudi Arabian riyal
|
|
T
|
|
|
The Hongkong and Shanghai Banking Corporation
|
The Hongkong and Shanghai Banking Corporation Limited, the founding member of the HSBC Group
|
|
TRL
|
Turkish lira
|
|
TSR
|
Total shareholder return
|
|
U
|
|
|
UAE
|
United Arab Emirates
|
|
UK
|
United Kingdom
|
|
US$
|
United States dollar
|
|
US
|
United States of America
|
|
US DPA
|
Five-year deferred prosecution agreement with the Department of Justice and others (US)
|
|
US run-off portfolio
|
Includes our CML, vehicle finance and Taxpayer Financial Services businesses and insurance, commercial, corporate and treasury activities in HSBC Finance on an IFRSs management basis
|
|
V
|
|
|
VaR1
|
Value at risk
|
|
Visa
|
Visa Inc.
|
|
VIU
|
Value in use
|
|
VND
|
Vietnamese dong
|
|
|
1 Full definition included in Glossary on page 579.
|
|
Glossary
|
|
Term
|
Definition
|
|
A
|
|
|
Adjustable-rate mortgages ('ARM's)
|
Mortgage loans in the US on which the interest rate is periodically changed based on a reference price. These are included within 'affordability mortgages'.
|
|
Affordability mortgages
|
Mortgage loans where the customer's monthly payments are set out at a low initial rate, either variable or fixed, before resetting to a higher rate once the introductory period is over.
|
|
Agency exposures
|
Exposures to near or quasi-government agencies including public sector entities fully owned by government carrying out non-commercial activities, provincial and local government authorities, development banks and funds set up by government.
|
|
Alt-A
|
A US description for loans regarded as lower risk than sub-prime, but with higher risk characteristics than lending under normal criteria.
|
|
Arrears
|
Customers are said to be in arrears (or in a state of delinquency) when they are behind in fulfilling their obligations, with the result that an outstanding loan is unpaid or overdue. When a customer is in arrears, the total outstanding loans on which payments are overdue are described as delinquent.
|
|
Asset-backed securities
('ABS's)
|
Securities that represent an interest in an underlying pool of referenced assets. The referenced pool can comprise any assets which attract a set of associated cash flows but are commonly pools of residential or commercial mortgages.
|
|
B
|
|
|
Back-testing
|
A statistical technique used to monitor and assess the accuracy of a model, and how that model would have performed had it been applied in the past.
|
|
Bail-inable debt
|
Bail-in refers to imposition of losses at the point of non viability (but before insolvency) on bank liabilities (bail-inable debt) that are not exposed to losses while the institution remains a viable, going concern. Whether by way of write-down or conversion into equity, this has the effect of recapitalising the bank (although it does not provide any new funding).
|
|
Bank levy
|
A levy that applies to UK banks, building societies and the UK operations of foreign banks from 1 January 2011. The amount payable is based on a percentage of the group's consolidated liabilities and equity as at 31 December after deducting certain items the most material of which are those related to insured deposit balances, tier 1 capital, insurance liabilities, high quality liquid assets and items subject to a legally enforceable net settlement agreement.
|
|
Basel II
|
The capital adequacy framework issued by the Basel Committee on Banking Supervision in June 2006 in the form of the 'International Convergence of Capital Measurement and Capital Standards'.
|
|
Basel 2.5
|
The update to Basel II including changes to capital and disclosure requirements for securitisation and market risk, which took effect in December 2011.
|
|
Basel III
|
In December 2010, the Basel Committee issued 'Basel III rules: a global regulatory framework for more resilient banks and banking systems' and 'International framework for liquidity risk measurement, standards and monitoring'. Together these documents present the Basel Committee's reforms to strengthen global capital and liquidity rules with the goal of promoting a more resilient banking sector. In June 2011, the Basel Committee issued a revision to the former document setting out the finalised capital treatment for counterparty credit risk in bilateral trades. The Basel III requirements will be phased in with full implementation by 1 January 2019.
|
|
Basis point ('bps')
|
One hundredth of a per cent (0.01%), so 100 basis points is 1%. Used in quoting movements in interest rates or yields on securities.
|
|
C
|
|
|
Capital conservation buffer
|
A capital buffer prescribed by regulators under Basel III and designed to ensure banks build up capital buffers outside periods of stress which can be drawn down as losses are incurred. Should a bank's capital levels fall within the capital conservation buffer range, capital distributions will be constrained by the regulators.
|
|
Capital planning buffer
('CPB')
|
A capital buffer, prescribed by the PRA under Basel II, and designed to ensure banks build up capital buffers outside periods of stress which can be drawn down as losses are incurred. Should a bank's capital levels fall within the capital planning buffer range, a period of heightened regulatory interaction would be triggered.
|
|
Capital requirements directive ('CRD')
|
A capital adequacy legislative package issued by the European Commission and adopted by EU member states. The first CRD legislative package gave effect to the Basel II proposals in the EU and came into force on 20 July 2006. CRD II, which came into force on 31 December 2010, subsequently updated the requirements for capital instruments, large exposure, liquidity risk and securitisation. A further CRD III amendment, updated market risk capital and additional securitisation requirements, and came into force on 31 December 2011.
CRD IV package comprises a recast Capital Requirements Directive and a new Capital Requirements Regulation. The package implements the Basel III capital proposals together with transitional arrangements for some of its requirements. CRD IV came into force on 1 January 2014.
|
|
Central counterparty
|
An intermediary between a buyer and a seller (generally a clearing house).
|
|
Term
|
Definition
|
|
Clawback
|
Remuneration already paid to an individual, which has to be returned to an organisation under certain circumstances.
|
|
Collateralised debt obligation ('CDO')
|
A security issued by a third-party which references ABSs and/or certain other related assets purchased by the issuer. CDOs may feature exposure to sub-prime mortgage assets through the underlying assets.
|
|
Collectively assessed
impairment
|
Impairment assessment on a collective basis for homogeneous groups of loans that are not considered individually significant and to cover losses which have been incurred but have not yet been identified on loans subject to individual assessment.
|
|
Commercial paper ('CP')
|
An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities. The debt is usually issued at a discount, reflecting prevailing market interest rates.
|
|
Commercial real estate
|
Any real estate, comprising buildings or land, intended to generate a profit, either from capital gain or rental income.
|
|
Common equity tier 1 capital
('CET1')
|
The highest quality form of regulatory capital under Basel III that comprises common shares issued and related share premium, retained earnings and other reserves excluding the cash flow hedging reserve, less specified regulatory adjustments.
|
|
CET 1 ratio
|
A Basel III measure, of CET 1 capital expressed as percentage of total risk exposure amount.
|
|
Common reporting
('COREP')
|
Harmonised European reporting framework established in the Capital Requirements Directives, to be mandated by the European Banking Authority.
|
|
Compliance risk
|
The risk that the Group fails to observe the letter and spirit of all relevant laws, codes, rules, regulations and standards of good market practice, and incurs fines and penalties and suffers damage to its business as a consequence.
|
|
Comprehensive Capital
Analysis and Review ('CCAR')
|
CCAR is an annual exercise by the Federal Reserve to ensure that institutions have robust, forward-looking capital planning processes that account for their unique risks and sufficient capital to continue operations throughout times of economic and financial stress.
|
|
Conduits
|
HSBC sponsors and manages multi-seller conduits and 'SIC's. The multi-seller conduits hold interests in diversified pools of third-party assets such as vehicle loans, trade receivables and credit card receivables funded through the issuance of short-dated commercial paper and supported by a liquidity facility. The SICs hold predominantly asset-backed securities referencing such items as commercial and residential mortgages, vehicle loans and credit card receivables funded through the issuance of both long-term and short-term debt.
|
|
Constant currency
|
A non-GAAP financial measure that adjusts for the year-on-year effects of foreign currency translation differences by comparing reported results for the reported period with reported results for comparative period retranslated at exchange rates for the reported period. The foreign currency translation differences reflect the movements of the US dollar against most major currencies during the reported period.
|
|
Constant net asset value fund ('CNAV')
|
A fund that prices its assets on an amortised cost basis, subject to the amortised book value of the portfolio remaining within 50 basis points of its market value.
|
|
Consumer and Mortgage Lending ('CML')
|
In the US, the CML portfolio consists of our Consumer Lending and Mortgage Services businesses, which are in run-off.
The Consumer Lending business offered secured and unsecured loan products, such as first and second lien mortgage loans, open-ended home equity loans and personal non-credit card loans through branch locations and direct mail. The majority of the mortgage lending products were for refinancing and debt consolidation rather than home purchases. In the first quarter of 2009, we discontinued all originations by our Consumer Lending business.
Prior to the first quarter of 2007, when we ceased loan purchase activity, the Mortgage Services business purchased non-conforming first and second lien real estate secured loans from unaffiliated third parties. The business also included the operations of Decision One Mortgage Company ('Decision One'), which historically originated mortgage loans sourced by independent mortgage brokers and sold these to secondary market purchasers. Decision One ceased originations in September 2007.
|
|
Contractual maturities
|
The date on which the final payment (principal or interest) of any financial instrument is due to be paid, at which point all the remaining outstanding principal and interest have been repaid.
|
|
Core tier 1 capital
|
The highest quality form of regulatory capital, under Basel II, that comprises total shareholders' equity and related non-controlling interests, less goodwill and intangible assets and certain other regulatory adjustments.
|
|
Core tier 1 capital ratio
|
A Basel II measure, of core tier 1 capital expressed as a percentage of the total risk-weighted assets.
|
|
Countercyclical capital buffer
('CCB')
|
A capital buffer prescribed by regulators under Basel III which aims to ensure that capital requirements take account of the macro-financial environment in which banks operate. This will provide the banking sector with additional capital to protect it against potential future losses, when excess credit growth in the financial system as a whole is associated with an increase in system-wide risk.
|
|
Counterparty credit risk
('CCR')
|
Counterparty credit risk, in both the trading and non-trading books, is the risk that the counterparty to a transaction may default before completing the satisfactory settlement of the transaction.
|
|
Term
|
Definition
|
|
Credit default swap
|
A derivative contract whereby a buyer pays a fee to a seller in return for receiving a payment in the event of a defined credit event (e.g. bankruptcy, payment default on a reference asset or assets, or downgrades by a rating agency) on an underlying obligation (which may or may not be held by the buyer).
|
|
Credit enhancements
|
Facilities used to enhance the creditworthiness of financial obligations and cover losses due to asset default.
|
|
Credit risk
|
Risk of financial loss if a customer or counterparty fails to meet an obligation under a contract. It arises mainly from direct lending, trade finance and leasing business, but also from products such as guarantees, derivatives and debt securities.
|
|
Credit valuation adjustment
('CVA')
|
An adjustment to the valuation of OTC derivative contracts to reflect the creditworthiness of OTC derivative counterparties.
|
|
Credit spread risk
|
The risk that movements in credit spreads will affect the value of financial instruments.
|
|
Customer deposits
|
Money deposited by account holders. Such funds are recorded as liabilities.
|
|
Customer remediation
|
Activities carried out by HSBC to compensate customers for losses or damages associated with a failure to comply with regulations. Customer remediation is initiated by HSBC in response to customer complaints, and not specifically initiated by regulatory action.
|
|
Customer risk rating ('CRR')
|
A scale of 23 grades measuring obligor PD.
|
|
CVA risk capital charge
|
A capital charge under CRDIV to cover the risk of mark-to-market losses on expected counterparty risk to derivatives.
|
|
D
|
|
|
Debit valuation adjustment ('DVA')
|
An adjustment made by an entity to the valuation of OTC derivative liabilities to reflect within fair value the entity's own credit risk.
|
|
Debt restructuring
|
A restructuring by which the terms and provisions of outstanding debt agreements are changed. This is often done in order to improve cash flow and the ability of the borrower to repay the debt. It can involve altering the repayment schedule as well as debt or interest charge reduction.
|
|
Debt securities
|
Financial assets on the Group's balance sheet representing certificates of indebtedness of credit institutions, public bodies or other undertakings, excluding those issued by central banks.
|
|
Debt securities in issue
|
Transferable certificates of indebtedness of the Group to the bearer of the certificates. These are liabilities of the Group and include certificates of deposits.
|
|
Deed-in-lieu
|
An arrangement in which a borrower surrenders the deed for a property to the lender without going through foreclosure proceedings and is subsequently released from any further obligations on the loan.
|
|
Defined benefit obligation
|
The present value of expected future payments required to settle the obligations of a defined benefit plan resulting from employee service.
|
|
Delinquency
|
See 'Arrears'.
|
|
Deposits by banks
|
All deposits received from domestic and foreign banks, excluding deposits or liabilities in the form of debt securities or for which transferable certificates have been issued.
|
|
E
|
|
|
Economic capital
|
The internally calculated capital requirement which is deemed necessary by HSBC to support the risks to which it is exposed.
|
|
Economic profit
|
The difference between the return on financial capital invested by shareholders and the cost of that capital. Economic profit may be expressed as a whole number or as a percentage.
|
|
Economic Value of Equity
('EVE') sensitivity
|
Considers all re-pricing mismatches in the current balance sheet and calculates the change in market value that would result from a set of defined interest rate shocks.
|
|
Encumbered assets
|
Assets on our balance sheet which have been pledged as collateral against an existing liability.
|
|
Enhanced Variable Net Asset Fund ('ENAV')
|
A fund that prices its assets on a fair value basis. Consequently, process may change from one day to the next.
|
|
Equator Principles
|
The Equator Principles are used by financial institutions to reduce the potential impact of large projects, which they finance, on people or on the environment.
|
|
Equity risk
|
The risk arising from positions, either long or short, in equities or equity-based instruments, which create exposure to a change in the market price of the equities or equity instruments.
|
|
Eurozone
|
The 18 European Union countries using the euro as their common currency. The 18 countries are Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia and Spain.
|
|
Expected loss ('EL')
|
A regulatory calculation of the amount expected to be lost on an exposure using a 12-month time horizon and downturn loss estimates. EL is calculated by multiplying the PD (a percentage) by the EAD (an amount) and LGD (a percentage).
|
|
Exposure
|
A claim, contingent claim or position which carries a risk of financial loss.
|
|
Exposure at default ('EAD')
|
The amount expected to be outstanding after any credit risk mitigation, if and when the counterparty defaults. EAD reflects drawn balances as well as allowance for undrawn amounts of commitments and contingent exposures.
|
|
Term
|
Definition
|
|
F
|
|
|
Fair value adjustment
|
An adjustment to the fair value of a financial instrument which is determined using a valuation technique (level 2 and level 3) to include additional factors that would be considered by a market participant that are not incorporated within the valuation model.
|
|
Fiduciary risk
|
The risk to the Group of breaching its fiduciary duties where it acts in a fiduciary capacity as trustee, investment manager or as mandated by law or regulation.
|
|
Financial Conduct Authority ('FCA')
|
The Financial Conduct Authority regulates the conduct of financial firms and, for certain firms, prudential standards in the UK. It has a strategic objective to ensure that the relevant markets function well.
|
|
Financial Policy Committee ('FPC')
|
The Financial Policy Committee, at the Bank of England, is charged with a primary objective of identifying, monitoring and taking action to remove or reduce systemic risks with a view to protecting and enhancing the resilience of the UK financial system. The FPC has a secondary objective to support the economic policy of the UK Government.
|
|
Financial Reporting
('FINREP')
|
Harmonised European financial reporting framework, proposed by the European Union, which will be used to obtain a comprehensive view of a firm's risk profile.
|
|
First lien
|
A security interest granted over an item of property to secure the repayment of a debt that places its holder first in line to collect repayment from the sale of the underlying collateral in the event of a default on the debt.
|
|
Forbearance strategies
|
Employed in order to improve the management of customer relationships, maximise collection opportunities and, if possible, avoid default, foreclosure or repossession. Such arrangements include extended payment terms, a reduction in interest or principal repayments, approved external debt management plans, debt consolidations, the deferral of foreclosures, other modifications and re-ages.
|
|
Funded exposure
|
A situation where the notional amount of a contract is or has been exchanged.
|
|
Funding risk
|
A form of liquidity risk arising when the liquidity needed to fund illiquid asset positions cannot be obtained at the expected terms and when required.
|
|
G
|
|
|
Gap risk
|
The risk of financial loss arising from a significant change in market price with no accompanying trading opportunity.
|
|
Global systemically important bank ('G-SIB')
|
In parallel with the Basel III proposals, the Basel Committee issued in July 2011 a consultative document: 'Global systemically important banks: assessment methodology and the additional loss absorbency requirement', and in November 2011, its first rules on G-SIBs. The Financial Stability Board ('FSB') periodically issues the list of G-SIBs, which currently includes HSBC and 28 other major banks from around the world and is re-assessed through annual re-scoring of the individual banks and a triennial review of the methodology.
The requirements, initially for those banks identified in November 2014 as G-SIBs, will be phased in from 1 January 2016, becoming fully effective on 1 January 2019. National regulators have discretion to introduce higher thresholds than the minima. In November 2013, the FSB published a revised list of G-SIBs and their current assessment of the appropriate capital charge. HSBC was assigned an add-on of 2.5%.
|
|
Government-sponsored enterprises ('GSE's)
|
A group of financial services enterprises created by the US Congress to reduce the cost of capital for certain borrowing sectors of the economy, and to make them more efficient and transparent. Examples in the residential mortgage borrowing segment are Freddie Mac and Fannie Mae. GSEs carry the implicit backing, but are not direct obligations, of the US government.
|
|
GPSP Awards
|
Awards that define the number of HSBC Holdings ordinary shares to which the employee will become entitled, generally five years from the date of the award, and normally subject to individual remaining in employment. The shares to which the employee becomes entitled are subject to a retention requirement until cessation of employment.
|
|
Guarantee
|
An undertaking by a party to pay a creditor should a debtor fail to do so.
|
|
H
|
|
|
Haircut
|
A discount applied by management when determining the amount at which an asset can be realised. The discount takes into account the method of realisation including the extent to which an active market for the asset exists.
|
|
Historical rating transition
matrices
|
The probability of a counterparty with a particular rating moving to a different rating over a defined time horizon.
|
|
Home equity lines of credit ('HELoC's)
|
A form of revolving credit facility provided to US customers, which is supported in the majority of cases by a second lien or lower ranking charge over residential property. Holdings of HELoCs are classified as sub-prime.
|
|
I
|
|
|
Impaired loans
|
Loans where the Group does not expect to collect all the contractual cash flows or expects to collect them later than they are contractually due.
|
|
Impairment allowances
|
Management's best estimate of losses incurred in the loan portfolios at the balance sheet date.
|
|
Individually assessed
impairment
|
Exposure to loss is assessed on all individually significant accounts and all other accounts that do not qualify for collective assessment.
|
|
Term
|
Definition
|
|
Insurance risk
|
A risk, other than a financial risk, transferred from the holder of a contract to the insurance provider. The principal insurance risk is that, over time, the combined cost of claims, administration and acquisition of the contract may exceed the aggregate amount of premiums received and investment income.
|
|
Internal Capital Adequacy Assessment Process
|
The Group's own assessment of the levels of capital that it needs to hold through an examination of its risk profile from regulatory and economic capital viewpoints.
|
|
Internal Model Method
|
One of three approaches defined by Basel II to determine exposure values for counterparty credit risk.
|
|
Internal ratings-based approach ('IRB')
|
A method of calculating credit risk capital requirements using internal, rather than supervisory, estimates of risk parameters.
|
|
Invested capital
|
Equity capital invested in HSBC by its shareholders, adjusted for certain reserves and goodwill previously amortised or written off.
|
|
Investment grade
|
Represents a risk profile similar to a rating of BBB- or better, as defined by an external rating agency.
|
|
IRB advanced approach
('AIRB')
|
A method of calculating credit risk capital requirements using internal PD, LGD and EAD models.
|
|
IRB foundation approach
('FIRB')
|
A method of calculating credit risk capital requirements using internal PD models but with supervisory estimates of LGD and conversion factors for the calculation of EAD.
|
|
ISDA Master agreement
|
Standardised contract developed by ISDA used as an umbrella contract under which bilateral derivatives contracts are entered into.
|
|
K
|
|
|
Key management personnel
|
Directors and Group Managing Directors of HSBC Holdings.
|
|
L
|
|
|
Legacy credit in GB&M
|
A separately identifiable, discretely managed business comprising Solitaire Funding Limited, the securities investment conduits, the asset-backed securities trading portfolios and credit correlation portfolios, derivative transactions entered into directly with monoline insurers, and certain other structured credit transactions.
|
|
Legal proceedings
|
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.
|
|
Legal risk
|
The risk of financial loss, sanction and/or reputational damage resulting from contractual risk (the risk that the rights and/or obligations of a Group member within a contractual relationship are defective); dispute risk (the risk when involved in or managing potential or actual disputes); legislative risk (the risk that a Group member fails to adhere to laws of the jurisdiction in which it operates); and non contractual rights risk (the risk that a Group member's assets are not properly owned or are infringed by others or the infringement by a Group member of another party's rights).
|
|
Level 1 - quoted market price
|
Financial instruments with quoted prices for identical instruments in active markets.
|
|
Level 2 - valuation technique using observable inputs
|
Financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable.
|
|
Level 3 - valuation technique with significant unobservable inputs
|
Financial instruments valued using valuation techniques where one or more significant inputs are unobservable.
|
|
Leveraged finance
|
Funding provided for entities with higher than average indebtedness, which typically arises from sub-investment grade acquisitions or event-driven financing.
|
|
Leverage ratio
|
A measure, prescribed by regulators under Basel III, which is the ratio of tier 1 capital to total exposures. Total exposures include on-balance sheet items, off-balance sheet items and derivatives, and should generally follow the accounting measure of exposure. This supplementary measure to the risk-based capital requirements is intended to constrain the build-up of excess leverage in the banking sector.
|
|
Liquidity coverage ratio
('LCR')
|
The ratio of the stock of high quality liquid assets to expected net cash outflows over the following 30 days. High quality liquid assets should be unencumbered, liquid in markets during a time of stress and, ideally, be central bank eligible. The Basel III rules require this ratio to be at least 100% with effect from 2015. The LCR is still subject to an observation period and review to address any unintended consequences.
|
|
Liquidity enhancement
|
Liquidity enhancement makes funds available if required for reasons other than asset default, e.g. to ensure timely repayment of maturing commercial paper.
|
|
Liquidity risk
|
The risk that HSBC does not have sufficient financial resources to meet its obligations as they fall due, or will have to do so at an excessive cost. This risk arises from mismatches in the timing of cash flows.
|
|
Loan modification
|
An account management action that results in a change to the original terms and conditions of a loan either temporarily or permanently without resetting its delinquency status, except in case of a 'modification re-age' where delinquency status is also reset to up-to-date. Account modifications may include revisions to one or more terms of the loan including, but not limited to, a change in interest rate, extension of the amortisation period, reduction in payment amount and partial forgiveness or deferment of principal.
|
|
Term
|
Definition
|
|
Loan re-age
|
An account management action that results in the resetting of the contractual delinquency status of an account to up-to-date upon fulfilment of certain requirements which indicate that payments are expected to be made in accordance with the contractual terms.
|
|
Loans past due
|
Loans on which repayments are overdue.
|
|
Loan to value ratio ('LTV')
|
A mathematical calculation that expresses the amount of the loan as a percentage of the value of security. A high LTV indicates that there is less cushion to protect the lender against house price falls or increases in the loan if repayments are not made and interest is added to the outstanding loan balance.
|
|
Loss given default ('LGD')
|
The estimated ratio (percentage) of the loss on an exposure to the amount outstanding at default (EAD) upon default of a counterparty.
|
|
Loss severity
|
The realised amount of losses incurred (including ancillary amounts owed) when a loan is foreclosed or disposed of through the arrangement with the borrower. The loss severity is represented as a percentage of the outstanding loan balance.
|
|
M
|
|
|
Malus
|
An arrangement that permits an organisation to prevent vesting of all or part of the amount of a deferred remuneration award in relation to risk outcomes or performance.
|
|
Market risk
|
The risk that movements in market risk factors, including foreign exchange rates and commodity prices, interest rates, credit spreads and equity prices will reduce income or portfolio values.
|
|
Medium term notes ('MTN's)
|
Issued by corporates across a range of maturities. Under MTN Programmes notes are offered on a regular and continuous basis to investors.
|
|
Monoline insurers
('monolines')
|
Entities which specialise in providing credit protection to the holders of debt instruments in the event of default by the debt security counterparty. This protection is typically held in the form of derivatives such as CDSs referencing the underlying exposures held.
|
|
Mortgage-backed securities ('MBS's)
|
Securities that represent interests in groups of mortgages, which may be on residential or commercial properties. Investors in these securities have the right to cash received from future mortgage payments (interest and/or principal). When the MBS references mortgages with different risk profiles, the MBS is classified according to the highest risk class.
|
|
Mortgage-related assets
|
Referenced to underlying mortgages.
|
|
Mortgage vintage
|
The year a mortgage was originated.
|
|
N
|
|
|
Negative equity mortgages
|
Equity is the value of the asset less the outstanding balance on the loan. Negative equity arises when the value of the property purchased is below the balance outstanding on the loan.
|
|
Net asset value per share
|
Total shareholders' equity, less non-cumulative preference shares and capital securities, divided by the number of ordinary shares in issue.
|
|
Net interest income
|
The amount of interest received or receivable on assets net of interest paid or payable on liabilities.
|
|
Net interest income sensitivity
|
Considers all pricing mismatches in the current balance sheet, with suitable assumptions for balance sheet growth in the future, and calculates the change in net interest income that would result from a set of defined interest rate shocks.
|
|
Net principal exposure
|
The gross principal amount of a financial asset after taking account of credit protection purchased but excluding the effect of any counterparty credit valuation adjustment to that protection. It includes assets that benefit from monoline protection, except where this protection is purchased with a CDS.
|
|
Net stable funding ratio ('NSFR')
|
The ratio of available stable funding to required stable funding over a one year time horizon, assuming a stressed scenario. Available stable funding would include items such as equity capital, preferred stock with a maturity of over one year and liabilities with an assessed maturity of over one year. The Basel III rules require this ratio to be over 100% with effect from 2018. The NSFR is still subject to an observation period and review to address any unintended consequences.
|
|
Non-conforming mortgages
|
US mortgages that do not meet normal lending criteria. Examples include mortgages where the expected level of documentation is not provided (such as with income self-certification), or where poor credit history increases the risk and results in pricing at a higher than normal lending rate.
|
|
Non-trading portfolios
|
Portfolios that comprise positions that primarily arise from the interest rate management of our retail and commercial banking assets and liabilities, financial investments designated as available for sale and held to maturity, and exposures arising from our insurance operations.
|
|
Non-trading risk
|
The market risk arising from non-trading portfolios.
|
|
O
|
|
|
Offset mortgages
|
A flexible type of mortgage where a borrower's savings balance(s) held at the same institution can be used to offset the mortgage balance outstanding. The borrower pays interest on the net balance which is calculated by subtracting the credit balance(s) from the debit balance. As part of the offset mortgage a total facility limit is agreed and the borrower may redraw up to a pre-agreed limit.
|
|
Overnight Index Swap ('OIS') discounting
|
A method of valuing collateralised interest rate derivatives which uses a discount curve that reflects the overnight interest rate typically earned or paid in respect of collateral received.
|
|
Operational risk
|
The risk of loss resulting from inadequate or failed internal processes, people and systems or from external events, including legal risk.
|
|
Term
|
Definition
|
|
Over-the-counter ('OTC')
|
A bilateral transaction (e.g. derivatives) that is not exchange traded and that is valued using valuation models.
|
|
P
|
|
|
Pension risk
|
The risk that contributions from Group companies and members fail to generate sufficient funds to meet the cost of accruing benefits for the future service of active members, and the risk that the performance of assets held in pension funds is insufficient to cover existing pension liabilities.
|
|
Performance shares
|
Awards of HSBC Holdings ordinary shares under employee share plans that are subject to the achievement of corporate performance conditions.
|
|
Personal lending
|
See 'Retail loans'.
|
|
PRA standard rules
|
The method prescribed by the PRA for calculating market risk capital requirements in the absence of VaR model approval.
|
|
Prime
|
A US description for mortgages granted to the most creditworthy category of borrowers.
|
|
Private equity investments
|
Equity securities in operating companies not quoted on a public exchange, often involving the investment of capital in private companies or the acquisition of a public company that results in its delisting.
|
|
Probability of default ('PD')
|
The probability that an obligor will default within one-year.
|
|
Prudential Regulation Authority ('PRA')
|
The Prudential Regulation Authority in the UK is responsible for prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms.
|
|
R
|
|
|
Refi rate
|
The refi (or refinancing) rate is set by the European Central Bank ('ECB') and is the price banks pay to borrow from ECB.
|
|
Regulatory capital
|
The capital which HSBC holds, determined in accordance with rules established by the PRA for the consolidated Group and by local regulators for individual Group companies.
|
|
Regulatory matters
|
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.
|
|
Renegotiated loans
|
Loans for which the contractual payment terms have been changed because of significant concerns about the borrower's ability to meet the contractual payments when due.
|
|
Repo/reverse repo
(or sale and repurchase agreement)
|
A short-term funding agreement that allows a borrower to create a collateralised loan by selling a financial asset to a lender. As part of the agreement the borrower commits to repurchase the security at a date in the future repaying the proceeds of the loan. For the party on the other end of the transaction (buying the security and agreeing to sell in the future) it is reverse repurchase agreement or a reverse repo.
|
|
Reputational risk
|
The risk that illegal, unethical or inappropriate behaviour by the Group itself, members of staff or clients or representatives of the Group will damage HSBC's reputation, leading, potentially, to a loss of business, fines or penalties.
|
|
Residential mortgage
|
A loan to purchase a residential property which is then used as collateral to guarantee repayment of the loan. The borrower gives the lender a lien against the property, and the lender can foreclose on the property if the borrower does not repay the loan per the agreed terms.
|
|
Restricted Shares
|
Awards that define the number of HSBC Holdings ordinary shares to which the employee will become entitled, generally between one and three years from the date of the award, and normally subject to the individual remaining in employment. The shares to which the employee becomes entitled may be subject to retention requirement.
|
|
Retail loans
|
Money lent to individuals rather than institutions. This includes both secured and unsecured loans such as mortgages and credit card balances.
|
|
Return on equity
|
Profit attributable to ordinary shareholders of the parent company divided by average ordinary shareholders' equity.
|
|
Risk appetite
|
The aggregate level and types of risk a firm is willing to assume within its risk capacity to achieve its strategic objectives and business plan.
|
|
Risk capacity
|
The maximum level of risk the firm can assume before breaching constraints determined by regulatory capital and liquidity needs and its obligations, also from a conduct perspective, to depositors, policyholders, other customers and shareholders.
|
|
Risk-weighted assets
('RWA's)
|
Calculated by assigning a degree of risk expressed as a percentage (risk weight) to an exposure value in accordance with the applicable Standardised or IRB approach rules.
|
|
Run-off portfolios
|
Legacy credit in GB&M, the US CML portfolio and other US run-off portfolios, including the treasury services related to the US CML businesses and commercial operations in run-off. Origination of new business in the run-off portfolios has been discontinued and balances are being managed down through attrition and sale.
|
|
S
|
|
|
Sale and repurchase agreement
|
See repo above.
|
|
Second lien
|
A security interest granted over an item of property to secure the repayment of a debt that is issued against the same collateral as a first lien but that is subordinate to it. In the case of default, repayment for this debt will only be received after the first lien has been repaid.
|
|
Term
|
Definition
|
|
Securitisation
|
A transaction or scheme whereby the credit risk associated with an exposure, or pool of exposures, is tranched and where payments to investors in the transaction or scheme are dependent upon the performance of the exposure or pool of exposures. A traditional securitisation involves the transfer of the exposures being securitised to an SE which issues securities. In a synthetic securitisation, the tranching is achieved by the use of credit derivatives and the exposures are not removed from the balance sheet of the originator.
|
|
Securitisation swap
|
An interest rate or cross currency swap with notional linked to the size of the outstanding asset portfolio in a securitisation. Securitisation swaps are typically executed by securitisation vehicles to hedge interest rate risk arising from mismatches between the interest rate risk profile of the asset portfolio and that of the securities issued by the vehicle.
|
|
Short sale
|
In relation to credit risk management, a 'short sale' is an arrangement in which a bank permits the borrower to sell the property for less than the amount outstanding under a loan agreement. The proceeds are used to reduce the outstanding loan balance and the borrower is subsequently released from any further obligations on the loan.
|
|
Single-issuer liquidity facility
|
A liquidity or stand-by line provided to a corporate customer which is different from a similar line provided to a conduit funding vehicle.
|
|
Six filters
|
An internal measure designed to improve capital deployment across the Group. Five of the filters examine the strategic relevance of each business in each country, in terms of connectivity and economic development, and the current returns, in terms of profitability, cost efficiency and liquidity. The sixth filter requires adherence to global risk standards.
|
|
Sovereign exposures
|
Exposures to governments, ministries, departments of governments, embassies, consulates and exposures on account of cash balances and deposits with central banks.
|
|
Special Purpose Entity ('SPE')
|
A corporation, trust or other non-bank entity, established for a narrowly defined purpose, including for carrying on securitisation activities. The structure of the SPE and its activities are intended to isolate its obligations from those of the originator and the holders of the beneficial interests in the securitisation.
|
|
Structured entities
('SE's)
|
An entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements.
|
|
Standardised approach
('STD')
|
In relation to credit risk, a method for calculating credit risk capital requirements using External Credit Assessment Institutions ('ECAI') ratings and supervisory risk weights. In relation to operational risk, a method of calculating the operational capital requirement by the application of a supervisory defined percentage charge to the gross income of eight specified business lines.
|
|
Stressed VaR
|
A market risk measure based on potential market movements for a continuous one-year period of stress for a trading portfolio
|
|
Structured finance/notes
|
An instrument whose return is linked to the level of a specified index or the level of a specified asset. The return on a structured note can be linked to equities, interest rates, foreign exchange, commodities or credit. Structured notes may or may not offer full or partial capital protection in the event of a decline in the underlying index or asset.
|
|
Structured Investment Vehicles ('SIV's)
|
Structured entities which invest in diversified portfolios of interest-earning assets, generally funded through issues of commercial paper, medium-term notes and other senior debt to take advantage of the spread differentials between the assets in the SIV and the funding cost.
|
|
Student loan-related assets
|
Securities with collateral relating to student loans.
|
|
Subordinated liabilities
|
Liabilities which rank after the claims of other creditors of the issuer in the event of insolvency or liquidation.
|
|
Sub-prime
|
A US description for customers with high credit risk, for example those who have limited credit histories, modest incomes, high debt-to-income ratios, high loan-to-value ratios (for real estate secured products) or have experienced credit problems caused by occasional delinquencies, prior charge-offs, bankruptcy or other credit-related problems.
|
|
Sustainability risk
|
The risk that the environmental and social effects of providing financial services outweigh the economic benefits.
|
|
Sustainable cost savings
|
Permanent cost reductions at a given level of business activity. Sustainable cost savings exclude cost avoidance and revenue and loan impairment charge benefits as these do not represent operational expense reductions. Cost savings resulting from business disposals are not classified as sustainable.
|
|
Systems risk
|
The risk of failure or other deficiency in the automated platforms that support the Group's daily execution and the systems infrastructure on which they reside, including data centres, networks and distributed computers.
|
|
T
|
|
|
Tier 1 capital
|
A component of regulatory capital, comprising core tier 1 and other tier 1 capital. Other tier 1 capital includes qualifying capital instruments such as non-cumulative perpetual preference shares and hybrid capital securities.
|
|
Tier 2 capital
|
A component of regulatory capital, comprising qualifying subordinated loan capital, related non-controlling interests, allowable collective impairment allowances and unrealised gains arising on the fair valuation of equity instruments held as available-for-sale. Tier 2 capital also includes reserves arising from the revaluation of properties.
|
|
Term
|
Definition
|
|
Trading portfolios
|
Positions arising from market-making and warehousing of customer-derived positions.
|
|
Trading risk
|
Market risk arising from trading portfolios.
|
|
Troubled debt restructuring
|
A US description for restructuring a debt whereby the creditor for economic or legal reasons related to a debtor's financial difficulties grants a concession to the debtor that it would not otherwise consider.
|
|
U
|
|
|
Unencumbered assets
|
Assets on our balance sheet which have not been pledged as collateral against an existing liability.
|
|
Unfunded exposures
|
An exposure where the notional amount of a contract has not been exchanged.
|
|
US government agency and US government sponsored enterprises mortgage-related assets
|
Securities that are guaranteed by US government agencies such as Ginnie Mae, or by US government sponsored entities including Fannie Mae and Freddie Mac.
|
|
V
|
|
|
Value-at-risk
('VaR')
|
A measure of the loss that could occur on risk positions as a result of adverse movements in market risk factors (e.g. rates, prices, volatilities) over a specified time horizon and to a given level of confidence.
|
|
W
|
|
|
Wholesale loans
|
Money lent to sovereign borrowers, banks, non-bank financial institutions and corporate entities.
|
|
Write-down/write-off
|
When a financial asset is written down or written off, a customer balance is partially or fully removed, respectively, from the balance sheet. Loans (and related impairment allowance accounts) are normally written off, either partially or in full, when there is no realistic prospect of recovery. Where loans are secured, this is generally after receipt of any proceeds from the realisation of security. In circumstances where the net realisable value of any collateral has been determined and there is no reasonable expectation of further recovery, write-off may be earlier.
|
|
Wrong-way risk
|
An adverse correlation between the counterparty's PD and the mark-to-market value of the underlying transaction.
|
|
Index
|
|
A
|
|
Abbreviations 575
|
|
Accounting
|
|
developments (future) 431
|
|
policies (critical) 72
|
|
policies (significant) 432
|
|
Accounts
|
|
approval 564
|
|
basis of preparation 77, 428
|
|
consolidation 417,430
|
|
presentation of information 429
|
|
use of estimates 430
|
|
Acquisitions and disposals 78, 97
|
|
Actuarial assumptions 463
|
|
Advances to core funding ratio 215, 277
|
|
Annual General Meeting 371,566
|
|
Anti-money laundering and sanctions 558
|
|
Areas of special interest 147
|
|
Asset-backed securities 204, 206, 275
|
|
Assets 66
|
|
average balance sheet 53
|
|
by country 96, 477
|
|
by geographical region 96, 476
|
|
by global business 77, 102, 107, 113, 118, 123, 128
|
|
charged as security 542
|
|
constant currency/reported reconciliation 68
|
|
deferred tax 467
|
|
encumbered/unencumbered 223
|
|
five years 65
|
|
held for sale 156, 521
|
|
held in custody and under administration 130
|
|
intangible 517
|
|
liquid assets of principal operating entities 278
|
|
maturity analysis 532
|
|
other 522
|
|
risk-weighted 65, 78, 96, 299, 322
|
|
trading 481
|
|
Associates and joint ventures
|
|
accounting policy 442
|
|
contingent liabilities 549
|
|
interests in 74, 508
|
|
share of profit in 50
|
|
transactions with other related parties 563
|
|
Auditor
|
|
arrangements 351
|
|
remuneration 465
|
|
report 410
|
|
B
|
|
Balance sheet
|
|
average 53
|
|
consolidated 65, 419
|
|
constant currency/reported reconciliation 68
|
|
data 65, 94, 102, 107, 113, 118, 123, 128, 476
|
|
HSBC Holdings 424
|
|
insurance manufacturing subsidiaries 250
|
|
linkages 236
|
|
movement in 2013 66
|
|
Balance Sheet Management 69, 238
|
|
Bancassurance 249
|
|
Basel 309
|
|
Board of Directors
|
|
balance and independence 340
|
|
changes 4
|
|
committees 340, 347
|
|
information and support 341
|
|
meetings 340
|
|
powers 339
|
|
Brand 21
|
|
Brazilian labour claims 527
|
|
Buffers (capital) 314
|
|
Business model 13
|
|
Business principles 25
|
|
C
|
|
Capital 298
|
|
future developments 314
|
|
generation 320
|
|
management 319
|
|
measurement and allocation 320
|
|
movement in regulatory capital in 2013 304
|
|
overview 299
|
|
ratio 19
|
|
regulatory 304, 320
|
|
regulatory and accounting 306
|
|
resources 65
|
|
risk 299, 319
|
|
strength 19
|
|
structure 305
|
|
Carbon dioxide emissions 35, 363
|
|
Cash flow
|
|
accounting policy 433
|
|
consolidated statement 420
|
|
HSBC Holdings 425
|
|
notes 546
|
|
Cautionary statement regarding forward-looking
statements 574
|
|
Chairman's Committee 26
|
|
Chinese translation 568
|
|
Client assets 90
|
|
Client selection 33
|
|
Climate business 34
|
|
Collateral and credit enhancements 178, 542
|
|
management 224
|
|
Commercial Banking 84, 214, 477
|
|
constant currency/reported profit 48
|
|
products and services 79
|
|
Commercial real estate 147, 168
|
|
Committees (Board) 347
|
|
Communication with shareholders 376, 567
|
|
Compliance risk 137, 247, 287
|
|
Concentration of exposure 197, 273
|
|
Conduct and Values committee 26
|
|
Conduits 551
|
|
Constant currency 47
|
|
Contents inside front cover
|
|
Contingent liabilities and contractual commitments 548
|
|
Contractual maturity of financial liabilities 227
|
|
Core tier 1 capital 2, 65, 299
|
|
Corporate and commercial lending 168
|
|
Corporate governance 329, 346
|
|
codes report 346
|
|
Corporate Sustainability Committee 362
|
|
Cost efficiency ratio 30, 63, 102, 107, 113, 118, 123, 128
|
|
Counterparty credit risk 303, 324
|
|
CRD IV 309, 324
|
|
Credit default swap regulatory investigation 561
|
|
Credit exposure 157
|
|
Credit mitigants 158
|
|
Credit quality 155, 164, 169
|
|
classifications 267
|
|
Credit risk 136, 150
|
|
in 2013 36, 152
|
|
insurance 255, 293
|
|
management thereof 39, 266
|
|
policies and practices 266
|
|
risk-weighted assets 300, 322
|
|
Credit valuation adjustment 486
|
|
Critical accounting policies 72
|
|
Cross-border exposures 221
|
|
Customer accounts 70, 102, 107, 113, 118, 123, 128
|
|
Customers 32
|
|
Customer deposit markets 214
|
|
Customer lending and deposit (combined) 69
|
|
Customers service and satisfaction 31
|
|
D
|
|
Daily trading/non-trading VaR 232, 234
|
|
Dealings in HSBC Holdings plc shares 377
|
|
Debit valuation adjustment 486
|
|
Debt securities in issue 523
|
|
accounting policy 449
|
|
Defined terms inside front cover
|
|
Deposits
|
|
accounting policy 449
|
|
core 277
|
|
average balances and average rates 53
|
|
Derivatives 157,197, 487, 499
|
|
accounting policy 440
|
|
Directors
|
|
annual incentives 382
|
|
appointments and re-election 339
|
|
benefits 396
|
|
biographies 330
|
|
Board of Directors 338
|
|
conflicts of interest 345
|
|
emoluments 464
|
|
executive 338, 342, 390, 395
|
|
exit payments 402
|
|
fees 396
|
|
induction 341
|
|
interests 402
|
|
loss of office 391
|
|
non-executive 338, 342, 391, 395
|
|
other directorships 391
|
|
pensions 401
|
|
performance evaluation 379
|
|
relations with shareholders 345
|
|
remuneration (executive) 380, 395, 397
|
|
responsibilities (statement of) 408
|
|
service contracts 390
|
|
training and development 341
|
|
variable pay 397
|
|
Disposal gains 49 / groups 521
|
|
Disposals 520, 547
|
|
Diversity and inclusion 28
|
|
Dividends 471, 565, 572
|
|
payout ratio 51
|
|
per share 51
|
|
E
|
|
Earnings per share 16, 51, 417, 471
|
|
Economic background
|
|
Europe 98
|
|
Hong Kong 104
|
|
Latin America 125
|
|
Middle East and North Africa 115
|
|
North America 120
|
|
Rest of Asia-Pacific 109
|
|
Economic contribution 21
|
|
Economic plans: HSBC Bank Brazil 561
|
|
Egypt (exposures to) 148
|
|
Employees 27
|
|
compensation and benefits 406, 453
|
|
development 27, 368
|
|
disabled 368
|
|
diversity and inclusion 28, 367
|
|
engagement 27
|
|
gender balance 28
|
|
health, welfare and safety 29
|
|
highest paid 407
|
|
numbers 27, 62, 367, 453
|
|
relations 367
|
|
remuneration policy 42, 368
|
|
reward 367
|
|
share plans 369
|
|
volunteering 34
|
|
whistleblowing 29
|
|
Encumbered assets 223
|
|
Enhanced Disclosure Task Force 131
|
|
Enquiries (from shareholders) 567
|
|
Equity 67
|
|
Equity securities 235
|
|
Environmental, social and community 34
|
|
Europe 98
|
|
balance sheet data 102, 476
|
|
collateral 179-184
|
|
constant currency/reported reconciliation 48
|
|
customer accounts 70
|
|
economic background 98
|
|
lending 180-184, 186
|
|
loan impairment charges/allowances 188-192
|
|
operating expenses 62
|
|
pension plans 261, 296
|
|
principal operations 98
|
|
profit/(loss) 98, 102, 475
|
|
profit/(loss) by country 99
|
|
regulatory update 314
|
|
review of performance 98
|
|
risk-weighted assets 96
|
|
Eurozone 148
|
|
exposures 210
|
|
Events after the balance sheet date 564
|
|
F
|
|
Fair value 484
|
|
accounting policy 437
|
|
adjustments 485
|
|
control framework 483
|
|
determination 484
|
|
movements 97
|
|
reconciliation 488
|
|
valuation bases 496
|
|
Fee income (net) 55
|
|
Fiduciary risk 137, 248, 289
|
|
Filters (six) 15
|
|
Financial assets
|
|
accounting policy 442
|
|
designated at fair value 498
|
|
not qualifying for de-recognition 507
|
|
transfers 506
|
|
Financial assets and liabilities
|
|
accounting policy 442
|
|
by measurement basis 477
|
|
Financial crime compliance 147
|
|
Financial guarantee contracts
|
|
accounting policy 47
|
|
Financial instruments
|
|
accounting policy (fair value) 437
|
|
accounting policy (valuation) 433
|
|
at fair value 482
|
|
credit quality 169, 267
|
|
net income from 56, 450
|
|
not at fair value 495
|
|
past due but not impaired 172
|
|
Financial investments 69, 197, 504
|
|
accounting policy 74, 438
|
|
gains less losses from 58
|
|
Financial liabilities designated at fair value 523
|
|
contractual maturities 227
|
|
Financial performance 16
|
|
Financial risks (insurance) 139, 253
|
|
Financial Services Compensation Scheme 549
|
|
Financial System Vulnerabilities Committee 26, 358
|
|
Financial statements 416
|
|
Five-year comparison 51, 65
|
|
Fixed pay 381
|
|
Footnotes 46, 132, 263, 318, 427
|
|
Forbearance 268
|
|
Foreclosures 164
|
|
Foreign currencies/exchange
|
|
accounting policy 446
|
|
exposures 542
|
|
rates 51, 65
|
|
Funding sources (diversity) 219
|
|
Funds under management 130
|
|
G
|
|
Gains on disposal of US branch network, US cards
and Ping An 59
|
|
Geographical regions 13, 96
|
|
Global businesses 15, 77, 94
|
|
Global Banking and Markets 87, 214, 477
|
|
constant currency/reported profit 48
|
|
products and services 80
|
|
Global functions 14
|
|
Global People Survey 27
|
|
Global Private Banking 90, 214, 477
|
|
constant currency/reported profit 48
|
|
products and services 80
|
|
Glossary 579
|
|
Going concern 367
|
|
Goodwill
|
|
accounting policy 73, 443
|
|
and intangible assets 512
|
|
Governance 25
|
|
Group Audit Committee 26, 348
|
|
Group CEO's Review 6
|
|
Group Chairman's Statement 3, (letter) 329
|
|
Group Company Secretary 335, 341
|
|
Group Management Board 25, 26, 347
|
|
Group Remuneration Committee 26, 360, 392
|
|
Group Risk Committee 26, 352
|
|
Growth priorities 12, 83, 85, 89, 91
|
|
H
|
|
Health and safety 29
|
|
Held for sale assets 521
|
|
accounting policy 450
|
|
Highlights 2
|
|
Hong Kong 104
|
|
balance sheet data 107, 476
|
|
collateral 179-184
|
|
constant currency/reported reconciliation 48
|
|
customer accounts 70
|
|
economic background 104
|
|
lending 180-184, 186
|
|
loan impairment charges/allowances 188-192
|
|
pension plans 262, 296
|
|
principal operations 104
|
|
profit/(loss) 104, 107, 475
|
|
review of performance 104
|
|
risk-weighted assets 96
|
|
HSBC Finance 162
|
|
foreclosures 164
|
|
loan modifications 176
|
|
HSBC Holdings plc
|
|
balance sheet 424
|
|
cash flow 229, 425
|
|
credit risk 203
|
|
deferred tax 470
|
|
dividends 471
|
|
employee compensation 464
|
|
financial assets and liabilities 480, 494, 523
|
|
financial instruments not at fair value 498
|
|
liquidity and funding 229, 281
|
|
market risk 241, 286
|
|
maturity analysis of assets and liabilities 538
|
|
net income from financial instruments 451
|
|
operating model 14
|
|
related parties 564
|
|
share capital 544
|
|
statement of changes in equity 426
|
|
structural foreign exchange exposures 542
|
|
subordinated liabilities 531
|
|
Human rights 34
|
|
I
|
|
Impairment
|
|
accounting policy 72, 434
|
|
allowances 188-194
|
|
assessment 272
|
|
charges 50, 61
|
|
constant currency/reported reconciliation 48
|
|
goodwill 73
|
|
impaired loans and advances 155, 185, 187
|
|
losses as percentage of loans and advances 195
|
|
methodologies 205, 275
|
|
movement by industry and geographical region 186, 191
|
|
reported/underlying reconciliation 50
|
|
Income statement (consolidated) 51, 417
|
|
Information on HSBC (availability thereof) 569
|
|
Insurance
|
|
accounting policy 447
|
|
balance sheet of manufacturing subsidiaries 250
|
|
bancassurance model 249
|
|
claims incurred (net) and movements in liabilities to policyholders 60, 451
|
|
in 2013 250
|
|
liabilities under contracts issued 525
|
|
net earned premiums 58, 451
|
|
products 290
|
|
PVIF business 59
|
|
risk 139, 250, 258, 290, 294
|
|
Interest income/expense (net) 53
|
|
accounting policy 432
|
|
average balance sheet 53
|
|
reported/underlying reconciliation 50
|
|
sensitivities 239, 259, 286
|
|
Interest rate derivatives 527
|
|
Interim management statements 567
|
|
Interim results 567
|
|
Internal control 364
|
|
Internet crime 146
|
|
IFRSs and Hong Kong Financial Reporting Standards comparison 429
|
|
IFRSs compliance 428
|
|
Investment criteria 15
|
|
Investment properties 444, 518
|
|
Investor relations 568
|
|
J
|
|
Joint ventures 74, 511
|
|
K
|
|
Key management personnel 562
|
|
Key performance indicators 16, 18, 19, 20, 21
|
|
L
|
|
Latin America 125
|
|
balance sheet data 128, 476
|
|
collateral 179-184
|
|
constant currency/reported reconciliation 48
|
|
customer accounts 70
|
|
economic background 125
|
|
lending 180-184, 186
|
|
loan impairment charges/allowances 188-192
|
|
principal operations 125
|
|
profit/(loss) 125, 128, 475
|
|
profit/(loss) by country 126
|
|
review of performance 125
|
|
risk-weighted assets 96
|
|
Lease commitments 549
|
|
accounting policy 444
|
|
Legal
|
|
proceedings and regulatory matters 555
|
|
risk 288
|
|
Lending - combined view 69
|
|
Leveraged finance transactions 209
|
|
Leverage ratio 19, 312, 328
|
|
Liabilities 66
|
|
average balance sheet 53
|
|
by geographical region 476
|
|
constant currency/reported reconciliation 68
|
|
deferred tax 467
|
|
five years 65
|
|
maturity analysis 532
|
|
of disposal groups 524
|
|
other 525
|
|
retirement benefit 457
|
|
subordinated 528
|
|
trading 522
|
|
under insurance contracts 525
|
|
Libor, Euribor and other rates investigations 559
|
|
Liquidity and funding
|
|
assets 216, 278
|
|
description 136
|
|
funds transfer pricing 280
|
|
in 2013 214
|
|
insurance 257, 293
|
|
management of risk 215, 276
|
|
net contractual cash flows 217
|
|
policies and procedures 276
|
|
primary sources of funding 276
|
|
regulation 215
|
|
Loans and advances 157, 197
|
|
accounting policy 433
|
|
by country 201
|
|
collateral 178
|
|
concentration of exposure 197
|
|
credit quality of 155
|
|
delinquency in the US 163
|
|
impairment 185
|
|
past due but not impaired 172
|
|
renegotiated 173, 268
|
|
to banks by geographical region 184, 200
|
|
to customers by industry sector and geographical region 198, 199
|
|
write-off 273
|
|
M
|
|
Madoff 555
|
|
Market capitalisation 22
|
|
Market risk
|
|
balance sheet linkages 236
|
|
description 137
|
|
in 2013 231
|
|
insurance 254, 291
|
|
monitoring and limiting exposures 281
|
|
risk-weighting assets 303, 324
|
|
sensitivity analysis 282
|
|
Maturity analysis of assets and liabilities 532
|
|
Maximum exposure to credit risk 152, 157, 159
|
|
Middle East and North Africa 115
|
|
balance sheet data 118, 476
|
|
collateral 179-184
|
|
constant currency/reported reconciliation 48
|
|
customer accounts 70
|
|
economic background 115
|
|
lending 180-184, 186
|
|
loan impairment charges/allowances 188-192
|
|
principal operations 115
|
|
profit/(loss) 115, 118, 475
|
|
profit/(loss) by country 116
|
|
review of performance 115
|
|
risk-weighted assets 96
|
|
Model risk 147
|
|
Monitor 24
|
|
Monoline insurers 208
|
|
Mortgages
|
|
lending 161, 164
|
|
lending in the US 162
|
|
mortgage-backed securities 203
|
|
US mortgage-related investigations 274, 556
|
|
N
|
|
Nomination Committee 26, 361
|
|
Non-controlling interests 543
|
|
Non-GAAP measures 47
|
|
Non-interest income
|
|
accounting policy 432
|
|
Non-trading portfolios 231, 234, 285
|
|
North America 120
|
|
balance sheet data 123, 476
|
|
collateral 179-184
|
|
constant currency/reported reconciliation 48
|
|
customer accounts 70
|
|
economic background 120
|
|
lending 180-184, 186
|
|
loan impairment charges/allowances 188-192
|
|
mortgage lending 161
|
|
pension plans 263, 296
|
|
personal lending 179
|
|
principal operations 120
|
|
profit/(loss) 120, 123, 475
|
|
profit/(loss) by country 121
|
|
review of performance 120
|
|
risk-weighted assets 96
|
|
Notable items 52
|
|
O
|
|
Offsetting 540
|
|
accounting policy 442
|
|
Operating expenses 50, 62
|
|
Operating income 59, 88, 477
|
|
Operating profit 452
|
|
Operating model 14
|
|
Operational risk 244, 287
|
|
in 2013 245
|
|
losses/incidents 246
|
|
Ordinary shares 373
|
|
Organisational structure chart 570
|
|
Other 92, 477
|
|
Outlook 5, 8
|
|
P
|
|
Payment protection insurance 526
|
|
Pension plans
|
|
accounting policy 445
|
|
defined benefit plans 286, 459
|
|
for directors 401
|
|
risk 138, 260, 295
|
|
Performance 7, 16, 81, 84, 87, 90, 98, 104, 111, 115, 120
|
|
operational 30
|
|
Personal lending 148, 153, 160, 165
|
|
Pillar I, II and III 320, 322
|
|
Ping An 521
|
|
Post-employment benefit plans 457
|
|
Preference shares 373
|
|
Preferred securities 528
|
|
Products and services 79, 472
|
|
Profit before tax
|
|
by country 99, 110, 116
|
|
by geographical region 96, 102, 107, 113, 118, 123
|
|
by global business 77, 94, 102, 105, 107, 113, 118, 123
|
|
consolidated 51, 417
|
|
constant currency/reported reconciliation 48
|
|
reported/underlying reconciliation 48
|
|
Profit for the year 473
|
|
Property plant and equipment 130, 518
|
|
accounting policy 444
|
|
Provisions 526
|
|
accounting policy 75, 447
|
|
Purpose 1
|
|
R
|
|
Ratios
|
|
advances to core funding 215, 277
|
|
capital 299
|
|
capital strength 2
|
|
common equity tier 1 19
|
|
core tier 1 (CET 1) 2, 65
|
|
cost efficiency 2, 63
|
|
customer advances to deposits 18
|
|
dividend payout 20, 51
|
|
dividends per share 2, 51
|
|
earnings per share 16, 51, 417
|
|
leverage 19, 312
|
|
return on average ordinary shareholders' equity 2, 51
|
|
return on risk-weighted assets 20
|
|
return on average total assets 18, 51
|
|
stressed coverage 215, 277
|
|
Reconciliation of reported and underlying items 50
|
|
Reconciliation of RoRWA 71
|
|
Redenomination risk 211
|
|
Regulatory reform
|
|
capital 305, 320
|
|
capital buffers 314
|
|
CRD IV end point 324
|
|
reconciliation to financial accounting 306
|
|
RWA integrity 316
|
|
structured banking reform 316
|
|
systemically important banks 314
|
|
UK update 314
|
|
Related party transactions 562
|
|
Remuneration
|
|
annual report 392
|
|
benefits 384, 404
|
|
committee 360
|
|
exit factors 387
|
|
fixed pay 381, 404
|
|
GPSP 399, 405
|
|
in 2013 379
|
|
in 2014 404
|
|
key challenges 378
|
|
letter 378
|
|
members 360, 393
|
|
policy 44, 381, 387
|
|
report 378
|
|
reward strategy 379
|
|
scenarios 389
|
|
single figure 43, 395
|
|
variable pay 42, 44, 380, 393, 397, 404
|
|
Renegotiated loans 173, 178, 268
|
|
Representations and warranties 209
|
|
Repricing gap 242
|
|
Reputational risk 138, 260, 294
|
|
Rest of Asia-Pacific 109
|
|
balance sheet data 113, 476
|
|
collateral 179-184
|
|
constant currency/reported reconciliation 48
|
|
customer accounts 70
|
|
economic background 109
|
|
lending 180-184, 186
|
|
loan impairment charges/allowances 188-192
|
|
principal operations 109
|
|
profit/(loss) 109, 113, 475
|
|
profit/(loss) by country 110
|
|
review of performance 111
|
|
risk-weighted assets 96
|
|
Retail Banking and Wealth Management 81, 214, 477
|
|
constant currency/reported profit 48
|
|
customers 31
|
|
principal RBWM business 78, 82
|
|
products and services 79
|
|
Revenue 50
|
|
Risk
|
|
appetite 40
|
|
banking risks 136
|
|
capital 299
|
|
committee 352
|
|
compliance 137, 247, 287
|
|
contingent liquidity 280
|
|
counterparty 303
|
|
credit 136, 255, 266, 293
|
|
credit spread 235
|
|
cross-currency 280
|
|
description 136
|
|
data management 147
|
|
dispute 146
|
|
emerging markets 141
|
|
eurozone 148
|
|
execution 146
|
|
factors 135
|
|
fiduciary 137, 248, 289
|
|
financial (insurance) 139, 253, 290
|
|
foreign exchange 241
|
|
gap risk 284
|
|
geopolitical 142
|
|
governance 266
|
|
in 2013 36
|
|
information security 146
|
|
insurance operations 139, 249, 258
|
|
interest rate 237
|
|
internet crime 146
|
|
investigations 144
|
|
legal 288
|
|
liquidity and funding 136, 257, 293
|
|
management 39, 135
|
|
market 137, 244, 281, 291
|
|
model 147
|
|
operational 137, 244
|
|
pension 138, 260, 295
|
|
policies and practices 266
|
|
profile 134
|
|
redenomination 211
|
|
refinance 272
|
|
regulatory 142, 144
|
|
reputational 138, 260, 294
|
|
scenario stress testing 139
|
|
security and fraud 288
|
|
sustainability 138, 263, 297
|
|
systems 289
|
|
top and emerging 37, 141, 355
|
|
vendor 289
|
|
Risk-weighted assets 20, 65, 78, 96, 299, 322
|
|
integrity 316
|
|
movement in 2013 299
|
|
reported/underlying reconciliation 71
|
|
RoRWA (reconciliation of measures) 71
|
|
S
|
|
Sale and repurchase agreements 54, 68, 219, 224
|
|
accounting policy 440
|
|
Securities litigation 554
|
|
Securitisation
|
|
exposures203, 274
|
|
litigation 557
|
|
Security and fraud risk 288
|
|
Segmental analysis 472
|
|
accounting policy 433
|
|
Senior management
|
|
biographies 335, 336
|
|
emoluments 406
|
|
Share-based payments 454
|
|
accounting policy 446
|
|
Share capital 65, 544
|
|
accounting policy 449
|
|
in 2013 374
|
|
notifiable interests 377
|
|
rights and obligations 372
|
|
Share information 2, 22
|
|
Share options 403
|
|
Share plans 545
|
|
for directors 403
|
|
for employees 369
|
|
HSBC Bank Bermuda plans 545
|
|
Shareholder (communications with) 567
|
|
profile 566
|
|
Social contribution 35
|
|
Standards (Global) 4, 23
|
|
Statement of changes in equity 421
|
|
Statement of comprehensive income 418
|
|
Stock symbols 568
|
|
Strategic direction 7, 11, 12, 81, 84, 87, 90
|
|
Stressed coverage ratios 215
|
|
Stress testing 139, 283, 356
|
|
Structural banking reform 316
|
|
Structural foreign exchange exposure 237, 285
|
|
Structured entities 69, 550
|
|
Subsidiaries 519
|
|
accounting policy 442
|
|
Sustainable savings 30
|
|
Sustainability 10
|
|
committee 362
|
|
risk 138, 263, 297
|
|
Systemically important banks 314
|
|
Systems risk 289
|
|
T
|
|
Tax
|
|
accounting policy 75, 445
|
|
deferred tax 467
|
|
expense 64, 466
|
|
of shares and dividends 571
|
|
paid 21
|
|
reconciliation 467
|
|
tax and broker-dealer investigations 559
|
|
Three lines of defence 39, 244
|
|
Tier 1 capital (core) 299
|
|
Total shareholder return 22, 401
|
|
Trading assets 197, 481
|
|
accounting policy 437
|
|
Trading income (net) 55
|
|
Trading liabilities 522
|
|
accounting policy 437
|
|
Trading portfolios 231, 232, 284
|
|
U
|
|
Underlying performance 16, 47
|
|
Unobservable inputs 49
|
|
V
|
|
Value at risk 231, 282
|
|
Value creation 9
|
|
Values (HSBC) 25, 27
|
|
Vendor risk management 289
|
|
W
|
|
Water programme 35
|
|
Whistleblowing 29
|
|
Wholesale funding 214, 222
|
|
Wholesale lending 154, 165
|
|
Y
|
|
Youth education 35
|