HSBC 2007 Annual Report Download - page 6

HSBC HOLDINGS PLC
Financial Highlights (continued)
Cautionary statements
4
Footnotes to ‘Financial Highlights’
1 The definition of return on average invested capital and a reconciliation to the equivalent GAAP measures are set out on page 12.
2 The return on average total shareholders’ equity is defined as profit attributable to shareholders of the parent company divided by
average total shareholders’ equity.
3 The cost efficiency ratio is defined as total operating expenses divided by net operating income before loan impairment charges and
other credit risk provisions.
4 Each American Depositary Share (‘ADS’) represents five ordinary shares.
5 Total shareholder return is defined on page 12.
6 The Financial Times Stock Exchange 100 Index.
7 The Morgan Stanley Capital International World Index.
8 Data for 2004 exclude the provisions of IAS 32, IAS 39 and IFRS 4, which were adopted for the first time with effect from 1 January
2005.
9 Data for 2003 were prepared in accordance with previous HSBC accounting policies under UK GAAP. HSBC’s accounting policies
under UK GAAP are stated in Note 2 on the Financial Statements in the Annual Report and Accounts 2004.
10 Capital resources are total regulatory capital, the calculation of which is set out on page 286.
11 Includes perpetual preferred securities, details of which can found in Note 32 on the Financial Statements.
12 Net of suspended interest and provisions for bad and doubtful debts (UK GAAP).
13 Net of impairment allowances (IFRSs).
14 Dividends recorded in the financial statements are dividends per ordinary share declared in a year and are not dividends in respect of,
or for, that year. First, second and third interim dividends for 2007, each of US$0.17 per ordinary share, were paid on 6 July 2007, 4
October 2007 and 18 January 2008 respectively. Note 12 on the Financial Statements provides more information on the dividends
declared in 2007. On 3 March 2008 the Directors declared a fourth interim dividend for 2007 of US$0.39 per ordinary share in lieu of
a final dividend, which will be payable to ordinary shareholders on 7 May 2008 in cash in US dollars, or in pound sterling or Hong
Kong dollars at exchange rates to be determined on 28 April 2008, with a scrip dividend alternative. The reserves available for
distribution at 31 December 2007 were US$15,551 million.
Quarterly dividends of US$15.50 per 6.20 per cent non-cumulative US dollar preference share, Series A (‘Series A dollar preference
share’), equivalent to a dividend of US$0.3875 per Series A ADS, each of which represents one-fortieth of a Series A dollar preference
share, were paid on 15 March 2007, 15 June 2007, 15 September 2007 and 15 December 2007.
15 Dividends per share expressed as a percentage of earnings per share (2003: excluding goodwill amortisation).
Cautionary Statement Regarding Forward-Looking Statements
The Annual Report and Accounts 2007 contains
certain forward-looking statements with respect to
the financial condition, results of operations and
business of HSBC.
Statements that are not historical facts, including
statements about HSBC’s beliefs and expectations,
are forward-looking statements. Words such as
‘expects’, ‘anticipates’, ‘intends’, ‘plans’, ‘believes’,
‘seeks’, ‘estimates’, ‘potential’ and ‘reasonably
possible’, variations of these words and similar
expressions are intended to identify forward-looking
statements. These statements are based on current
plans, estimates and projections, and therefore undue
reliance should not be placed on them. Forward-
looking statements speak only as of the date they are
made, and it should not be assumed that they have
been revised or updated in the light of new
information or future events.
Written and/or oral forward-looking statements
may also be made in the periodic reports to the
United States Securities and Exchange Commission,
summary financial statements to shareholders, proxy
statements, offering circulars and prospectuses, press
releases and other written materials, and in oral
statements made by HSBC’s Directors, officers
or employees to third parties, including financial
analysts.
Forward-looking statements involve inherent
risks and uncertainties. Readers are cautioned that a
number of factors could cause actual results to differ,
in some instances materially, from those anticipated
or implied in any forward-looking statement. These
factors include, among others:
• changes in general economic conditions in the
markets in which HSBC operates, such as:
– continuing or deepening recessions and
employment fluctuations;
– changes in foreign exchange rates, in both
market exchange rates (for example,
between the US dollar and pound sterling)
and government-established exchange rates
(for example, between the Hong Kong
dollar and US dollar);
– volatility in interest rates;
– volatility in equity markets, including in the
smaller and less liquid trading markets in
Asia and Latin America;