Business
Half-year Report - Part 2
Half-year Report - Part 2.
About this update from Hsbc Holdings Plc
[{"type":"text","content":"\n\n\n\n\n\nFinancial summary\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nContents\n\n\n\n\n28\n\n\nKey financial measures: basis of preparation\n\n\n\n\n29\n\n\nUse of alternative performance measures\n\n\n\n\n30\n\n\nSummary consolidated income statement\n\n\n\n\n31\n\n\nDistribution of results by global business and legal entity\n\n\n\n\n32\n\n\nIncome statement commentary\n\n\n\n\n32\n\n\nNet interest income\n\n\n\n\n33\n\n\nBanking net interest income\n\n\n\n\n35\n\n\nTax expense\n\n\n\n\n35\n\n\nSupplementary table for planned disposals\n\n\n\n\n36\n\n\nSummary consolidated balance sheet\n\n\n\n\n37\n\n\nBalance sheet commentary compared with 31 December 2023\n\n\n\n\n\n\n\n\n\n\n\n\n \nKey financial measures: basis of preparation\nReturn on average tangible equity excluding notable items\nFrom 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. RoTE excluding notable items has been re-presented for 1H23 on the revised basis and we no longer disclose RoTE excluding strategic transactions and the impairment of BoCom. 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 to RoTE excluding notable items, see page 58. We will now target a RoTE excluding notable items in the mid-teens for both 2024 and 2025. We do not reconcile our forward RoTE guidance to the equivalent reported measure.\nBanking net interest income\nBanking 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.\n \n...