HSBC 2015 Annual Report Download - page 99

HSBC HOLDINGS PLC
97
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
Taxes paid by region and
country
The following tables reflect a geographical view of
HSBC’s operations.
Breakdown of tax paid by region49
2015
$bn
2014
$bn
Region
UK 2.5 2.4
Rest of Europe 1.1 1.2
Asia 2.8 2.7
Middle East and North Africa 0.4 0.3
North America 0.4 (0.1)
Latin America 1.2 1.4
Total 8.4 7.9
For footnote, see page 99.
Taxes paid by country49
2015 2014 2013
$m $m $m
Asia 2,780 2,687 2,536
Home and priority markets 2,445 2,399 2,185
–
Hong Kong 1,415 1,273 1,248
–
Mainland China 277 278 207
–
India 285 290 318
–
Australia 173 204 105
–
Malaysia 92 133 106
–
Indonesia 70 76 74
–
Singapore 80 101 88
–
Taiwan 53 44 39
Other markets 335 288 351
Europe 3,660 3,625 3,500
Home and priority markets 3,346 3,391 3,244
–
UK 2,526 2,363 2,107
–
France 620 790 844
–
Germany 108 131 151
–
Switzerland 92 107 142
Turkey 16 75 82
Other markets 298 159 174
Middle East and North Africa 433 294 321
Priority markets 407 246 283
–
Saudi Arabia 151 84 70
–
UAE 120 102 98
–
Egypt 136 60 115
Other markets 26 48 38
North America 353 (108) 414
Priority markets 353 (108) 410
–
US 127 (377) 125
–
Canada 226 269 285
Other markets
–
–
4
Latin America 1,184 1,384 1,836
Priority markets 431 534 643
–
Argentina 340 333 318
–
Mexico 91 201 325
Brazil 735 804 1,002
Other markets 18 46 191
Total 8,410 7,882 8,607
For footnote, see page 99.
Conduct-related matters
Conduct-related costs included in significant items
2015 2014 2013
$m $m $m
Income statement
Net interest income 10 632
–
Provisions arising from the
ongoing review of
compliance with the
Consumer Credit Act
in the UK 10 632 –
Operating expenses 2,362 3,077 1,687
Comprising:
Legal proceedings and
regulatory matters 1,821 1,802 352
–
charge in relation to the
settlement agreement
with the Federal
Housing Finance
Authority – 550 –
–
regulatory provisions
in GPB 172 65 352
–
settlements and
provisions in
connection with legal
matters 1,649 1,187 –
Customer remediation 541 1,275 1,335
–
UK customer redress
programmes 541 1,275 1,235
–
US customer
remediation provisions
relating to Card and
Retail Services – – 100
Total charge for the year
relating to significant items 2,372 3,709 1,687
Of which:
Total provisions charge
for the year 2,362 2,500 1,687
Total provisions utilised
during the year 1,021 2,503 1,238
Balance sheet at
31 December
Total provisions 3,926 2,545 2,793
–
legal proceedings and
regulatory matters 2,729 1,154 657
–
customer remediation 1,197 1,391 2,136
Accruals, deferred income
and other liabilities 168 379 –
The table above provides a summary of conduct-related
costs incurred and included within significant items
(see pages 66 and 77).
HSBC defines ‘conduct’ as ensuring that we deliver fair
outcomes for our customers and that we do not disrupt the
orderly and transparent operation of financial markets. The
Board places a strong emphasis on conduct, requiring
adherence to high behavioural standards and doing the
right thing. This includes ensuring that the lessons of
unexpected outcomes, mistakes and control failings are
both acknowledged and responded to in a timely and
effective manner.
Board oversight of conduct matters is provided by the
Conduct & Values Committee, which oversees the promotion
and embedding of HSBC Values and our required global
conduct outcomes, and the Remuneration Committee, which