HSBC 2015 Annual Report Download - page 374

Notes on the Financial Statements (continued)
9 – Dividends / 10 – Earnings per share / 11 – Segmental analysis
HSBC HOLDINGS PLC
372
Total coupons on capital securities classified as equity
2015 2014 2013
First Per security Total Total Total
call date $m $m $m
Perpetual subordinated capital securities1,3
–
$2,200m Apr 2013 $2.032 179 179 179
–
$3,800m Dec 2015 $2.000 304 304 304
Perpetual subordinated contingent convertible securities2,3
–
$2,250m Sep 2024 $63.750 143
–
–
–
$1,500m Jan 2020 $56.250 70
–
–
–
€1,500m Sep 2022 €52.500 86
–
–
–
$2,450m Mar 2025 $63.750 78
–
–
Total 860 483 483
1 Discretionary coupons are paid quarterly on the perpetual subordinated capital securities, in denominations of $25 per security.
2 Discretionary coupons are paid semi-annually on the perpetual subordinated contingent convertible securities, in denominations of 1,000 per security.
3 Further details of these securities can be found in Note 35.
The Directors declared after the end of the year a fourth interim dividend in respect of the financial year ended 31 December
2015 of $0.21 per ordinary share, a distribution of approximately $4,134m. The fourth interim dividend will be payable on
20 April 2016 to holders of record on 4 March 2016 on the Principal Register in the UK, the Hong Kong or the Bermuda
Overseas Branch registers. No liability was recorded in the financial statements in respect of the fourth interim dividend for
2015.
On 15 January 2016, HSBC paid a coupon on the $2,200m subordinated capital securities of $0.508 per security, a distribution
of $45m. On 19 January 2016, HSBC paid a coupon on the $1,500m subordinated contingent convertible securities of $28.125
per security, a distribution of $42m. No liability was recorded in the balance sheet at 31 December 2015 in respect of these
coupon payments.
In September 2015, HSBC issued a €1,000m subordinated contingent convertible securities as set out in Note 35 which is
classified as equity under IFRSs. Coupons are paid semi-annually and to date no payments have fallen due.
10 Earnings per share
‘Basic earnings per ordinary share’ is 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’ is 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
2015 2014 2013
$m $m $m
Profit attributable to shareholders of the parent company 13,522 13,688 16,204
Dividend payable on preference shares classified as equity (90) (90) (90)
Coupon payable on capital securities classified as equity (860) (483) (483)
Year ended 31 December 12,572 13,115 15,631
Basic and diluted earnings per share
2015 2014 2013
Profit
$m
Number
of shares
(millions)
Per
share
$
Profit
$m
Number
of shares
(millions)
Per
share
$
Profit
$m
Number
of shares
(millions)
Per
Share
$
Basic1 12,572 19,380 0.65 13,115 18,960 0.69 15,631 18,530 0.84
Effect of dilutive potential ordinary shares
–
137
–
–
96
–
–
124
–
Diluted1 12,572 19,517 0.64 13,115 19,056 0.69 15,631 18,654 0.84
1 Weighted average number of ordinary shares outstanding (basic) or assuming dilution (diluted).
The weighted average number of dilutive potential ordinary shares excluded 7m employee share options that were
anti-dilutive (2014: 6m; 2013: 60m).