HSBC 2012 Annual Report Download - page 428

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
11 – Earnings per share / 12 – Segmental analysis
426
The Directors declared after the end of the year a fourth interim dividend in respect of the financial year ended
31 December 2012 of US$0.18 per ordinary share, a distribution of approximately US$3,327m. The fourth interim
dividend will be payable on 8 May 2013 to holders of record on 21 March 2013 on the Hong Kong Overseas Branch
Register and 22 March 2013 on the Principal Register in the UK or the Bermuda Overseas Branch Register. No
liability is recorded in the financial statements in respect of the fourth interim dividend for 2012.
On 15 January 2013, HSBC paid a further coupon on the capital securities of US$0.508 per security, a distribution of
US$44m. No liability is recorded in the balance sheet at 31 December 2012 in respect of this coupon payment.
11 Earnings per share
Basic earnings per ordinary share was calculated by dividing the profit attributable to ordinary shareholders of the
parent company by the weighted average number of ordinary shares outstanding, excluding own shares held. Diluted
earnings per ordinary share was calculated by dividing the basic earnings, which require no adjustment for the effects
of dilutive potential ordinary shares, by the weighted average number of ordinary shares outstanding, excluding own
shares held, plus the weighted average number of ordinary shares that would be issued on conversion of dilutive
potential ordinary shares.
Profit attributable to the ordinary shareholders of the parent company
2012 2011 2010
US$m US$m US$m
Profit attributable to shareholders of the parent company ......................................... 14,027 16,797 13,159
Dividend payable on preference shares classified as equity ...................................... (90) (90) (90)
Coupon payable on capital securities classified as equity ......................................... (483) (483) (323)
Profit attributable to the ordinary shareholders of the parent company ..................... 13,454 16,224 12,746
Basic and diluted earnings per share
2012 2011 2010
Profit
US$m
Number
of shares
(millions)
Per
share
US$
Profit
US$m
Number
of shares
(millions)
Per
share
US$
Profit
US$m
Number
of shares
(millions)
Per
share
US$
Basic1 .......................................................... 13,454 18,125 0.74 16,224 17,700 0.92 12,746 17,404 0.73
Effect of dilutive potential ordinary shares ... 146 222 229
– Savings-related Share Option Plan .... 23 45 55
– Other plans ......................................... 123 177 174
Diluted1 ....................................................... 13,454 18,271 0.74 16,224 17,922 0.91 12,746 17,633 0.72
1 Weighted average number of ordinary shares outstanding (basic) or assuming dilution (diluted).
The weighted average number of dilutive potential ordinary shares excluded 103m employee share options that were
anti-dilutive (2011: 151m; 2010: 150m).
12 Segmental analysis
HSBC’s operating segments are organised into six geographical regions, Europe, Hong Kong, Rest of Asia-Pacific,
Middle East and North Africa (‘MENA’), North America and Latin America.
Geographical information is classified by the location of the principal operations of the subsidiary or, for The
Hongkong and Shanghai Banking Corporation, HSBC Bank, HSBC Bank Middle East and HSBC Bank USA, by
the location of the branch responsible for reporting the results or advancing the funds.
HSBC’s chief operating decision-maker is the Group Management Board (‘GMB’) which operates as a general
management committee under the direct authority of the Board. Information provided to GMB to make decisions
about allocating resources to, and assessing the performance of, operating segments is measured in accordance with
IFRSs. The financial information shown below includes the effects of intra-HSBC transactions between operating
segments which are conducted on an arm’s length basis and are eliminated in arriving at the total. Shared costs are
included in operating segments on the basis of the actual recharges made.