HSBC 2015 Annual Report Download - page 439

HSBC HOLDINGS PLC
437
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
Preferred securities issued by HSBC’s subsidiaries
First call
date
2015
$m
2014
$m
HSBC USA Inc.
$150m1
Depositary shares each representing 25% interest in a share of
adjustable-rate cumulative preferred stock, series D Jul 1999
–
150
$150m2 Cumulative preferred stock Oct 2007
–
150
$518m Floating rate non-cumulative preferred stock, series F Apr 2010 518 518
$374m Floating rate non-cumulative preferred stock, series G Jan 2011 374 374
$374m 6.50% non-cumulative preferred stock, series H Jul 2011 374 374
HSBC Finance Corporation
$575m 6.36% non-cumulative preferred stock, series B Jun 2010 559 559
HSBC Bank Canada
CAD175m Non-cumulative redeemable class 1 preferred shares, series C Jun 2010 126 151
CAD175m Non-cumulative class 1 preferred shares, series D Dec 2010 126 151
At 31 December 2,077 2,427
1 In May 2015, HSBC redeemed its depositary shares representing 25% interest in a share of adjustable-rate cumulative preferred stock, series D
for $152m.
2 In May 2015, HSBC redeemed its cumulative preferred stock for $152m.
35 Called up share capital and other equity instruments
Accounting policy
Financial instruments issued are classified as equity when there is no contractual obligation to transfer cash or other financial assets or issue
a variable number of own equity instruments. Incremental costs directly attributable to the issue of equity instruments are shown in equity
as a deduction from the proceeds, net of tax.
HSBC Holdings equity instruments held by HSBC are recognised in equity as a deduction from retained earnings until they are cancelled.
When such instruments are subsequently sold, reissued or otherwise disposed of, any consideration received is included in equity, net of any
directly attributable incremental transaction costs and related income tax effects.
Issued and fully paid
HSBC Holdings ordinary shares of $0.50 each
2015 2014
$m $m
HSBC Holdings ordinary shares1 at 31 December 9,842 9,609
Number $m
At 1 January 2015 19,217,874,260 9,609
Shares issued under HSBC employee share plans 91,265,909 45
Shares issued in lieu of dividends 375,956,765 188
At 31 December 2015 19,685,096,934 9,842
At 1 January 2014 18,830,007,039 9,415
Shares issued under HSBC employee share plans 119,391,238 60
Shares issued in lieu of dividends 268,475,983 134
At 31 December 2014 19,217,874,260 9,609
HSBC Holdings non-cumulative preference shares of $0.01 each
Number $m
At 1 January 2015 and 31 December 20152 1,450,000
–
At 1 January 2014 and 31 December 2014 1,450,000
–
1 All HSBC Holdings ordinary shares in issue confer identical rights, including in respect of capital, dividends and voting.
2 Included in the capital base of HSBC as additional tier 1 capital in accordance with the CRD IV rules, by virtue of the application of grandfathering
provisions.
Dividends on the HSBC Holdings non-cumulative dollar preference shares in issue (‘dollar preference shares’) are paid quarterly
at the sole and absolute discretion of the Board of Directors. The Board of Directors will not declare a dividend on the dollar
preference shares if payment of the dividend would cause HSBC Holdings not to meet the applicable capital adequacy
requirements of the PRA or the profit of HSBC Holdings available for distribution as dividends is not sufficient to enable HSBC
Holdings to pay in full both dividends on the dollar preference shares and dividends on any other shares that are scheduled to
be paid on the same date and that have an equal right to dividends. HSBC Holdings may not declare or pay dividends on any
class of its shares ranking lower in the right to dividends than the dollar preference shares nor redeem nor purchase in any
manner any of its other shares ranking equal with or lower than the dollar preference shares unless it has paid in full, or set
aside an amount to provide for payment in full, the dividends on the dollar preference shares for the then current dividend