HSBC 2009 Annual Report Download - page 413

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The Directors declared after the end of the year a fourth interim dividend in respect of the financial year ended
31 December 2009 of US$0.10 per ordinary share, a distribution of approximately US$1,741 million. The fourth
interim dividend will be payable on 5 May 2010 to holders of record on 18 March 2010 on the Hong Kong Overseas
Branch Register and 19 March 2010 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 2009.
On 15 January 2010, HSBC paid a further coupon on the capital securities of US$0.508 per security, a distribution of
US$44 million. No liability is recorded in the balance sheet at 31 December 2009 in respect of this coupon payment.
13 Earnings per share
Basic earnings per ordinary share was calculated by dividing the profit attributable to ordinary shareholders of the
parent company by the weighted average number of ordinary shares outstanding, excluding own shares held. Diluted
earnings per ordinary share was calculated by dividing the basic earnings, which require no adjustment for the effects
of dilutive potential ordinary shares, by the weighted average number of ordinary shares outstanding, excluding own
shares held, plus the weighted average number of ordinary shares that would be issued on conversion of dilutive
potential ordinary shares.
In April 2009, HSBC Holdings completed a rights issue, details of which are provided in Note 41. The effect of the
bonus element included within the rights issue has been included within the calculation of basic and diluted earnings
per share. The effect of the rights issue was to increase the weighted average number of ordinary shares for 2008 and
2007 by 1,743 million and 1,703 million respectively, and dilutive potential ordinary shares by 15 million and
17 million, respectively.
Profit attributable to the ordinary shareholders of the parent company
2009 2008 2007
US$m US$m US$m
Profit attributable to shareholders of the parent company ...................................... 5,834 5,728 19,133
Dividend payable on preference shares classified as equity ................................... (90) (90) (90)
Coupon payable on capital securities classified as equity ...................................... (179) (92) –
Profit attributable to the ordinary shareholders of the parent company .................. 5,565 5,546 19,043
Basic and diluted earnings per share
2009 2008 2007
Profit
US$m
Number
of shares
(millions)
Per
share
US$
Profit
US$m
Number
of shares
(millions)
Per
share
US$
Profit
US$m
Number
of shares
(millions)
Per
share
US$
Basic ............................................................ 5,565 16,277 0.34 5,546 13,555 0.41 19,043 13,248 1.44
Effect of dilutive potential ordinary shares. 143 118 133
Diluted ........................................................ 5,565 16,420 0.34 5,546 13,673 0.41 19,043 13,381 1.42
The effect of dilutive potential ordinary shares on the weighted average number of ordinary shares outstanding was as
follows:
Number of shares (millions)
2009 2008 2007
Weighted average number of ordinary shares outstanding ..................................... 16,277 13,555 13,248
Weighted average number of dilutive potential ordinary shares ............................ 143 118 133
– Savings-related Share Option Plan ................................................................... 26 13 23
– Executive Share Option Scheme ...................................................................... – 3 6
– Group Share Option Plan ................................................................................. – 5 18
– Restricted and performance share awards ........................................................ 117 95 77
– HSBC France share options ............................................................................. – 1 6
– HSBC Finance share options ........................................................................... – 1 3
Weighted average number of ordinary shares outstanding assuming dilution ....... 16,420 13,673 13,381
The weighted average number of dilutive potential ordinary shares excludes 214 million employee share options that
were anti-dilutive (2008: 166 million; 2007: 22 million).