HSBC 2006 Annual Report Download - page 2

HSBC HOLDINGS PLC
Annual Report and Accounts 2006
Headquartered in London, HSBC is one of the largest banking and financial
services organisations in the world. Its international network comprises over
10,000 properties in 82 countries and territories in Europe; Hong Kong; Rest of
Asia-Pacific, including the Middle East and Africa; North America and Latin
America.
With listings on the London, Hong Kong, New York, Paris and Bermuda stock
exchanges, shares in HSBC Holdings plc are held by about 200,000 shareholders
in over 100 countries and territories. The shares are traded on the New York Stock
Exchange in the form of American Depositary Shares.
HSBC provides a comprehensive range of financial services to more than
125 million customers through four customer groups and global businesses:
Personal Financial Services (including consumer finance); Commercial Banking;
Corporate, Investment Banking and Markets; and Private Banking.
Contents
Page
Financial Highlights ........................................... 1
Cautionary Statement Regarding
Forward-Looking Statements ....................... 4
Report of the Directors ..................................... 6
Business Review ............................................... 6
Financial Review ............................................. 110
The Management of Risk ................................. 165
Governance ...................................................... 248
Directors’ Remuneration Report ..................... 280
Page
Statement of Directors’ Responsibilities
in Relation to Financial Statements ............. 290
Independent Auditor’s Report ......................... 291
Financial Statements ......................................... 293
Notes on the Financial Statements ................... 301
Shareholder Information .................................. 435
Glossary and Index ........................................... 446
Certain defined terms
Unless the context requires otherwise, ‘HSBC Holdings’ means HSBC Holdings plc and ‘HSBC’ or the ‘Group’
means HSBC Holdings together with its subsidiaries. Within this document the Hong Kong Special Administrative
Region of the People’s Republic of China is referred to as ‘Hong Kong’. When used in the terms ‘shareholders’
equity’ and ‘total shareholders’ equity’, ‘shareholders’ means holders of HSBC Holdings ordinary and preference
shares classified as equity.
This document comprises the Annual Report and Accounts 2006 for HSBC Holdings plc and its subsidiaries. It contains the Report of the
Directors and Financial Statements, together with the Independent Auditor’s Report thereon, as required by the UK Companies Act 1985.
The Annual Review 2006 of HSBC Holdings plc is published as a separate document. The Report of the Directors on pages 6 to 279 and
the Directors’ Remuneration Report on pages 280 to 289 have each been drawn up in accordance with the requirements of English law,
and liability in respect thereof is also governed by English law. In particular, the liability of the Directors for these reports is solely to
HSBC Holdings.