HSBC 2009 Annual Report Download - page 3

HSBC HOLDINGS PLC
Contents
1
Financial Highlights ...................................................................................................................................................................... 2
Cautionary Statement Regarding Forward-Looking Statements ................................................................... 6
Group Chairman’s Statement ................................................................................................................................................ 8
Report of the Directors ............................................................................................................................................................... 12
Operating and Financial Review
Principal activities ................................................................ 12 Group performance by income and expense item ......... 26
Strategic direction ................................................................. 12 Consolidated balance sheet ........................................... 42
Challenges and uncertainties ................................................ 12 Critical accounting policies .................................................. 61
Key performance indicators ................................................. 18 Customer groups and global businesses1 ............................. 66
Reconciliation of reported and underlying profit ................. 21 Geographical regions1 .......................................................... 85
Financial summary1 .............................................................. 23 Products and services ........................................................... 145
Consolidated income statement ..................................... 23 Other information ................................................................. 147
Impact of Market Turmoil
Background and disclosure policy ....................................... 151 Nature and extent of HSBC’s exposures ............................. 157
Overview of exposure ........................................................... 152 Fair values of financial instruments ..................................... 166
Business model ..................................................................... 156 Special purpose entities ........................................................ 181
Risk management .................................................................. 157 Other off-balance sheet arrangements and commitments .... 194
Accounting policies .............................................................. 157
Risk1
Regulation and supervision .................................................. 196 Operational risk .................................................................... 262
Risk management .................................................................. 199 Pension risk .......................................................................... 263
Credit risk ............................................................................. 201 Reputational risk .................................................................. 263
Liquidity and funding ........................................................... 244 Sustainability risk.................................................................. 264
Market risk ............................................................................ 250 Risk management of insurance operations .......................... 265
Residual value risk ............................................................... 261 Capital management and allocation ..................................... 285
Governance1
Corporate governance report ................................................ 294 Corporate sustainability ....................................................... 326
Directors and senior management ........................................ 294 Share capital ......................................................................... 328
Board of Directors ................................................................ 302 Dividends, shareholders and meetings ................................. 331
Employees ............................................................................. 318
Directors’ Remuneration Report1 ......................................................................................................................................... 334
Statement of Directors’ Responsibilities ......................................................................................................................... 349
Independent Auditor’s Report ............................................................................................................................................... 350
Financial Statements1 .................................................................................................................................................................. 352
Notes on the Financial Statements .................................................................................................................................... 365
Shareholder Information ........................................................................................................................................................... 472
Enforceability of judgements made in the US ..................... 472 Memorandum and Articles of Association .......................... 476
Limitations affecting equity security holders ....................... 472 Annual General Meeting ...................................................... 477
Fourth interim dividend for 2008 ......................................... 472 Interim Management Statements and Interim Results ......... 478
Fourth interim dividend for 2009 ......................................... 472 Shareholder enquiries and communications ........................ 478
Interim dividends for 2010 ................................................... 473 Investor relations .................................................................. 479
Dividends on ordinary shares of HSBC Holdings ............... 473 Where more information about HSBC is available ............. 480
American Depositary Shares ................................................ 474 Taxation of shares and dividends ......................................... 480
Nature of trading market ....................................................... 475 History and development of HSBC ..................................... 482
Shareholder profile ............................................................... 476 Organisational structure ....................................................... 484
Glossary and Index ....................................................................................................................................................................... 485
1 Detailed contents are provided on the referenced pages.