Hsbc Holdings Plc · LSE:HSBA
Hsbc — Investor Presentation (July 2005)
9 slides from Hsbc's investor presentation, July 2005
Slide 1: HSBC Holdings plc International Financial Reporting Standards 2004 Comparative Financial Information
HSBC Holdings plc International Financial Reporting Standards 2004 Comparative Financial Information
Slide 2: Forward-looking statements
Forward-looking statements This presentation and subsequent discussion may contain certain forward-looking statements with respect to the financial condition, results of operations and business of the Group. These forward-looking statements represent the Group’s expectations or beliefs concerning fu
Slide 3: Reconciliation of UK GAAP to IFRS: Year Ended 2004
Reconciliation of UK GAAP to IFRS: Year Ended 2004 Adj per % US$m UK GAAP Adj Share IFRS Change Profit before tax 19,426 -483 -0.04 18,943 -2.5 excluding goodwill amortisation Goodwill amortisation -1,818 1,818 0.16 - - Profit before tax 17,608 1,335 0.12 18,943 7.6 Tax expense -4,507 -178 -0.02 -4,
Slide 4: Reconciliation of UK GAAP to IFRS: Year Ended 2004
Reconciliation of UK GAAP to IFRS: Year Ended 2004 US$m % Reported Profit (pre-tax) under UK GAAP 17,608 100.0 Add back: goodwill amortisation 1,818 10.3 19,426 110.3 Less: adjustments to goodwill -102 -0.6 Amortisation of intangible assets now recognised -67 -0.4 Share-based payments -152 -0.8 Reti
Slide 5: Balance Sheet impact of transition to IFRS
Balance Sheet impact of transition to IFRS 31DEC04 US$bn % Total Assets under UK GAAP 1,277 100.0 Consolidation of conduits and investment funds 5 0.4 Other adjustments -2 -0.2 Total assets under IFRS 1,280 100.2 Total shareholders’ equity under UK GAAP 86.6 100.0 Adjustments -1.1 -1.3 Total shareho
Slide 6: Total Shareholders' Equity impact of transition to IFRS
Total Shareholders’ Equity impact of transition to IFRS 31DEC04 US$m % Total shareholders’ equity under UK GAAP 86,623 100.0 Goodwill 1,869 2.2 88,492 102.2 Share-based payments 198 0.2 Retirement benefits (4,470) -5.1 Dividends 2,996 3.5 Property (1,607) -1.9 Long leasehold land (495) -0.6 Leasing
Slide 7: Performance Ratios
Performance Ratios Year ended 31 December 2004 IFRS UK GAAP % % Return on average invested capital 15.0 15.2 Return on average total shareholders’ equity 16.3 14.4 Post-tax return on average total assets 1.22 1.12 Post-tax return on average risk-weighted assets 2.13 1.96 Cost : income ratio 47.3 51.
Slide 8: 2005 Implications
2005 Implications ➣ IAS 32 • reclassification of non-equity minority interest to interest expense (2004: US$675m) • gross up of certain financial instruments ➣ IFRS4: different accounting treatments for insurance and investment contracts ➣ IAS39 • Classification of financial instruments • Selective
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