HSBC 2008 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 Balance sheet ................................................................. 40
Challenges and uncertainties ............................................... 12 Critical accounting policies .................................................. 61
Key performance indicators ................................................. 17 Customer groups and global businesses1 ............................. 67
Reconciliation of reported and underlying profit ................ 21 Geographical regions1 .......................................................... 87
Financial summary1 ............................................................. 23 Products and services ........................................................... 138
Income statement ........................................................... 24 Other information ................................................................. 140
Impact of Market Turmoil
Background and disclosure policy ...................................... 144 Nature and extent of HSBC’s exposures ............................. 150
Overview of exposure .......................................................... 145 Fair values of financial instruments ..................................... 162
Business model .................................................................... 149 Special purpose entities ........................................................ 173
Risk management ................................................................. 150 Other off-balance sheet arrangements and commitments .... 187
Accounting policies ............................................................. 150
Risk1
Regulation and supervision ................................................. 188 Operational risk .................................................................... 252
Risk management ................................................................. 191 Pension risk .......................................................................... 253
Credit risk ............................................................................ 192 Reputational risk .................................................................. 254
Liquidity and funding .......................................................... 235 Sustainability risk.................................................................. 254
Market risk ........................................................................... 241 Risk management of insurance operations ........................... 255
Residual value risk ............................................................... 252 Capital management and allocation ..................................... 274
Governance1
Corporate governance report ............................................... 281 Employees ............................................................................ 303
Directors and senior management ....................................... 281 Corporate sustainability ....................................................... 312
Board of Directors ............................................................... 290 Dividends, shareholders and meetings ................................. 313
Directors’ Remuneration Report1 ......................................................................................................................................... 315
Statement of Directors’ Responsibilities.......................................................................................................................... 329
Independent Auditor’s Report ............................................................................................................................................... 330
Financial Statements1 .................................................................................................................................................................. 332
Notes on the Financial Statements .................................................................................................................................... 340
Shareholder Information ........................................................................................................................................................... 448
Enforceability of judgements made in the US ..................... 448 Interim Management Statements and Interim results ........... 452
Limitations affecting equity security holders ...................... 448 Actuaries ............................................................................... 452
Fourth interim dividend for 2008 ........................................ 448 Shareholder enquiries and communications ........................ 453
Interim dividends for 2009 .................................................. 449 Investor relations .................................................................. 454
Dividends on ordinary shares of HSBC Holdings .............. 449 Where more information about HSBC is available ............. 454
Nature of trading market ...................................................... 449 Taxation of shares and dividends ......................................... 455
Shareholder profile .............................................................. 451 History and development of HSBC ..................................... 457
Memorandum and Articles of Association .......................... 451 Organisational structure ....................................................... 459
Annual General Meeting ..................................................... 452
Glossary of Terms and Index .................................................................................................................................................. 460
1 Detailed contents are provided on the referenced pages.