HSBC 2002 Annual Report Download - page 3

HSBC HOLDINGS PLC
Financial Highlights
1
HSBC prepares its financial statements in accordance with UK Generally Accepted Accounting Principles (‘UK
GAAP’ ). It uses the US dollar as its reporting currency because the US dollar and currencies linked to it form the
major currency bloc in which HSBC transacts its business. Following its listing on the New York Stock Exchange,
HSBC also reconciles certain financial information to US Generally Accepted Accounting Principles (‘US GAAP’ )
which differ in certain aspects from UK GAAP as explained on page 286. Cash basis items are non-GAAP measures
which are derived by adjusting reported earnings to eliminate the impact of the amortisation of goodwill arising on
acquisitions. HSBC judges its overall performance by comparing cash returns with cash invested. HSBC therefore
considers that cash basis measures provide useful additional indicators of performance for investors.
2002 2001¶
US$m US$m
For the year (cash basis)
Operating profit before provisions................................................... 11,641 11,283
Profit on ordinary activities before tax............................................. 10,513 8,807
Profit attributable to shareholders .................................................... 7,102 5,799
For the year (as reported)
Operating profit before provisions................................................... 10,787 10,484
Profit on ordinary activities before tax............................................. 9,650 8,000
Profit attributable to shareholders .................................................... 6,239 4,992
Dividends......................................................................................... (5,001) (4,467)
At year-end
Shareholders’ funds ......................................................................... 52,406 46,388
Capital resources.............................................................................. 57,430 50,854
Customer accounts and deposits by banks ....................................... 548,371 503,631
Total assets....................................................................................... 759,246 696,245
Risk-weighted assets........................................................................ 430,551 391,478
US$ US$
Per ordinary share
Basic earnings.................................................................................. 0.67 0.54
Cash earnings................................................................................... 0.76 0.63
Diluted earnings............................................................................... 0.66 0.53
Dividends......................................................................................... 0.53 0.48
Net asset value at year-end............................................................... 5.53 4.96
Share information
US$0.50 ordinary shares in issue (million)...................................... 9,481 9,355
Market capitalisation at year-end ..................................................... US$105bn US$109bn
Closing market price per share at year-end...................................... £6.87 £8.06
HSBC Benchmar
k
Total shareholder return to 31 December 2002*
– over 1 year.................................................................................... 89 76
– since 1 January 1999†................................................................... 155 95
*Total shareholder return (‘TSR’) is defined on page 174.
†HSBC’s governing objective is to beat the TSR of its defined benchmark, with a minimum objective to achieve double TSR over a
five-year period beginning on 1 January 1999.
¶Figures for 2001, excluding average risk-weighted assets, have been restated to reflect the adoption of UK Financial Reporting
Standard 19 ‘Deferred Tax’, details of which are set out in Note 1 on the Financial Statements on pages 195 to 197.