Financial Performance - The reported profit attributable to ordinary shareholders was $6 billion, down 53% primarily due to goodwill impairment of $7.3 billion[7]. - Adjusted revenue was $55.4 billion, an increase of 5.9%, with adjusted profit before tax at $22.2 billion, up 5%[10]. - The group's reported pre-tax profit decreased by 33% compared to 2018, primarily due to a $7.3 billion goodwill impairment[29]. - Adjusted pre-tax profit increased by 5%, reflecting revenue growth in three of the four global businesses[29]. - The average tangible equity return was 8.4%, a decrease of 20 basis points compared to the previous year[11]. - The expected credit losses and other credit impairment provisions amounted to $2.8 billion, an increase of $1.1 billion due to higher provisions in commercial banking and retail banking[7]. - The reported baseline income is $56.1 billion, reflecting a growth of $2.3 billion or 4% from 2018, primarily from retail banking and wealth management[112]. - The reported profit before tax for 2019 was $13.35 billion, a decrease of 33% compared to 2018, primarily due to increased operating expenses and goodwill impairment of $7.3 billion[116]. Capital and Liquidity - Total assets increased to $2.7 trillion in 2019, up from $2.6 trillion in 2018[3]. - Common equity tier 1 ratio improved to 14.7% in 2019, compared to 14% in 2018[3]. - The diversified business model of HSBC supports its strong capital and liquidity position[3]. - High-quality liquid assets amounted to $601 billion in 2019, an increase from $567 billion in 2018[40]. - The common equity tier 1 ratio for HSBC Holdings was 14.7% in 2019, up from 14.0% in 2018[39]. - The group plans to reduce risk-weighted assets by over $100 billion by the end of 2022[7]. - The company aims to maintain a common equity tier 1 ratio target of 14% to 15%[31]. Revenue Sources - Retail Banking and Wealth Management contributed 41% to the reported revenue, followed by Commercial Banking at 27% and Global Banking and Markets also at 27%[3]. - Asia accounted for 49% of the reported revenue, with Europe at 29%, North America at 11%, Latin America at 5%, and the Middle East and North Africa at 6%[3]. - Adjusted revenue for Hong Kong and HSBC UK increased by 7% and 3% respectively, despite facing uncertainties[29]. - Retail banking and wealth management adjusted revenue increased by 9%, driven by improved customer service and growth investments, particularly strong in mortgage lending in the UK and Hong Kong[31]. - Global banking and capital markets adjusted revenue decreased by only 1% compared to 2018, despite significant challenges, supported by strong performance in transaction banking[31]. - The global private banking business attracted a net inflow of $23 billion in new funds, with adjusted revenue rising by 5%[31]. Digital Transformation and Innovation - HSBC is investing in blockchain technology to enhance global trade efficiency, exemplified by the digital trade completed using R3's Corda blockchain[5]. - The bank is committed to digital solutions, including the development of paperless trade financing methods[5]. - The company introduced over 160 new digital features in 2019, enhancing customer experience with improved digital account opening and loan applications[31]. - The company plans to continue investing in digital banking services to enhance customer value and efficiency[154]. - The company is focused on enhancing digital banking services while managing financial crime risks to drive growth[51]. Cost Management and Efficiency - The cost-to-income ratio improved to 59.2%, down from 61.0%[10]. - The adjusted income growth rate exceeded the expense growth rate by 3.1%, reflecting improved cost control[7]. - The adjusted operating expenses for 2019 were $32.8 billion, up $900 million or 3% from 2018, with significant investments in retail banking and wealth management[122]. - The company aims to streamline operations and reduce costs through efficiency improvements and investment in automation and digital technology[31]. Sustainability and ESG Initiatives - The company is committed to achieving its $100 billion sustainable financing target and enhancing its environmental, social, and governance (ESG) initiatives[46]. - HSBC aims to provide and facilitate $100 billion in sustainable financing and investment by the end of 2025, with cumulative progress reaching $52.4 billion as of 2019[49]. - The bank's carbon emissions per full-time employee were reported at 2.26 tons, slightly above the target of 2 tons by the end of 2020[49]. - HSBC aims to achieve 100% renewable energy usage by 2030, with a mid-term target of 90% by 2025[76]. - The company is actively working on reducing business activities related to coal and promoting the transition of other high-carbon industries[77]. Employee Engagement and Well-being - Employee recommendation rate for HSBC as an ideal workplace was 66% at the end of 2018, with a target to increase this by 3 percentage points annually[49]. - 98% of employees completed annual compliance training, slightly above the 98.2% completion rate in 2019[49]. - The company launched online educational courses on mental health for all employees in September 2019[67]. - Employee well-being, diversity, inclusion, and engagement are key focus areas for the company[63]. Risk Management and Governance - The company is committed to responsible business practices and maintaining financial system integrity through collaboration with regulatory bodies[97]. - HSBC has implemented measures to combat financial crime, enhancing its capabilities in detection and prevention[100]. - The company is enhancing its cybersecurity measures, including threat detection and data protection, to improve resilience against network threats[185]. - The company is integrating climate-related risks into its internal risk management framework, with a focus on assessing wholesale credit portfolios[185]. Strategic Focus and Market Position - The company is focused on expanding its presence in high-growth markets, particularly in Asia and the Middle East[3]. - HSBC aims to leverage its extensive international network to drive long-term value for shareholders[3]. - The company plans to transform its U.S. operations into an international business-focused corporate bank, targeting international and upper-middle clients with sustainable financing and investment of $100 billion[45]. - The company is focused on restructuring underperforming segments, particularly in Europe and the US[28].

As filed with the Securities and Exchange Commission on February 19, 2020. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 Or þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 Or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Or SHELL COMPANY REPORT PURSUANT TO SECTION 13 ...

Financial Performance - The reported profit before tax for the first half of 2019 increased by 15.8% to $12.4 billion compared to the second half of 2018[12]. - The adjusted profit before tax for the first half of 2019 rose by 6.8% to $6.1 billion, reflecting strong growth in retail banking and wealth management[12]. - Revenue for the first half of 2019 increased by 7.6%, with adjusted revenue growth at 8%[12]. - The adjusted profit before tax for the first half of 2019 was 12.516 billion, compared to 11.723 billion in the same period of 2018, representing a year-over-year increase of 6.8%[15]. - Revenue for the first half of 2019 reached $28,232 million, an increase from $26,880 million in the same period of 2018, representing a growth of 5%[30]. - Operating profit for the first half of 2019 was $11,083 million, up from $9,331 million in the first half of 2018, reflecting a growth of 18%[30]. - Net profit after tax for the first half of 2019 was $9,937 million, compared to $8,416 million in the same period of 2018, indicating an increase of 18%[30]. - The company reported a pre-tax profit of $12,407 million for the first half of 2019, up from $10,712 million in the first half of 2018, marking a growth of 16%[30]. - The company reported a net income of $6,200 million for the first half of 2019, reflecting a significant increase from the previous year[34]. - The effective tax rate for 2019 was reported at 19.9%, compared to 21.4% in 2018[34]. Customer Engagement and Satisfaction - Customer satisfaction in retail banking and wealth management improved significantly during the first half of 2019[11]. - HSBC's customer accounts reached 238,000, with a significant increase in digital banking usage, highlighting a shift towards online services[14]. - The company reported a 27% increase in customer deposits year-over-year, indicating strong growth in its banking operations[57]. - The company is committed to enhancing customer-centric services, achieving an 84% customer satisfaction rate[24]. - The number of active users for PayMe increased significantly, contributing to the growth in digital banking services[55]. - User data showed a significant increase in customer engagement, contributing to overall revenue growth[36]. - Customer accounts rose by $17 billion, marking a 1% increase, with a customer loan to customer account ratio rising from 72% to 74%[142]. Investment and Technology - Investment in new technologies reached $2.2 billion in the first half of 2019, a 17% increase from the same period in 2018[11]. - The company is prioritizing cost control and investment management to enhance operational efficiency and profitability[13]. - HSBC's strategy includes leveraging technology to improve customer experience and streamline operations, aiming for a competitive edge in the global banking sector[22]. - The company plans to invest in new technologies and product development to enhance its service offerings[74]. - The company is focusing on enhancing its digital banking services to improve customer engagement and retention[30]. - The company is investing in new technologies to enhance customer experience and operational efficiency[55]. Market Expansion and Growth Strategy - The company aims to expand its operations in high-growth markets, focusing on Asia and Latin America for future growth opportunities[23]. - The company plans to allocate $100 billion for sustainable financing and investment by the end of 2025[5]. - The company is actively pursuing strategies for market expansion and potential acquisitions[25]. - The company plans to expand its market presence and invest in new product development to drive future growth[30]. - The company aims to enhance the performance of low-return businesses, targeting a 6% return on equity by 2020[24]. - The company is focused on expanding its market presence globally, with a commitment to sustainable practices and responsible growth strategies[76]. Financial Stability and Capital Management - The common equity tier 1 ratio improved to 14.3% as of June 30, 2019, compared to 12.3% at the end of 2018[12]. - The company's capital ratio stood at 14.3% as of June 30, 2019, slightly up from 14.2% a year prior, indicating stable capital management[15]. - The company's capital strength and liquidity remain robust, with a reported capital adequacy ratio of 8%[24]. - The total equity attributable to shareholders increased to 145.441 billion as of June 30, 2019, from 139.754 billion a year earlier, reflecting a growth of approximately 4.8%[16]. - The company's capital strength ratio was 14.3% as of June 30, 2019, compared to 14% at the end of 2018[44]. - The company reported a total asset value of 2.751 trillion as of June 30, 2019, up from 2.607 trillion a year earlier, reflecting a growth of approximately 5.5%[16]. Operational Efficiency - The company is focusing on cost control and operational efficiency to enhance profitability[13]. - The company experienced a decrease in operating expenses, which were $16,163 million in 2019, down from $15,615 million in 2018[33]. - The adjusted cost-to-income ratio improved to 62.5% in the first half of 2019 from 64.4% in the same period of 2018, indicating better operational efficiency[154]. - The company has implemented cost-reduction strategies that are expected to save approximately $50 million annually, improving overall profitability[88]. - The company is focusing on enhancing its digital banking services to improve customer engagement and retention[30]. Risk Management - The expected credit loss for the first half of 2019 was $11 million, compared to $7 million in the same period of 2018, showing an increase of 57%[30]. - The expected credit loss provision was $(1,140) million, compared to $(407) million in the same period last year, indicating an increase in credit risk provisions[99]. - The company anticipates continued growth in user data and market expansion strategies for 2019[39]. - The company is actively managing risks associated with its operations to ensure long-term sustainability and growth[81]. Sustainability and Corporate Responsibility - The company is focused on sustainable practices, with a commitment to improve its sustainability rating as per Sustainalytics[26]. - The management emphasized the importance of sustainability initiatives, aiming to reduce carbon emissions by 40% by 2025[87]. - The company has set a goal to improve its ESG (Environmental, Social, and Governance) ratings, with a focus on responsible resource management[75]. - The company is committed to responsible corporate culture and aims to enhance the benefits of its products while ensuring sustainable practices[77].

Financial Performance - The reported pre-tax profit for 2018 reached $19.9 billion, a 16% increase from $17.2 billion in 2017, while the adjusted pre-tax profit was $21.7 billion, up 3% from $21.1 billion in 2017[15]. - The reported revenue for 2018 was $53.78 billion, up $2.33 billion or 5% from 2017, driven by growth across global business revenues[55]. - The net profit for the year 2018 reached $15,025 million, up from $11,879 million in 2017, reflecting a significant increase of 26.00%[159]. - The total dividend per ordinary share remained stable at $0.51 for both 2018 and 2017, with a payout ratio of 81.0%[160]. - The adjusted pre-tax profit for 2018 was $21.719 billion, an increase of $0.6 billion or 3% compared to 2017[63]. - The effective tax rate decreased to 24.5% in 2018 from 30.8% in 2017, primarily due to the revaluation of deferred tax balances following the reduction of the U.S. federal tax rate[197]. Asset and Liability Management - The total assets of HSBC as of December 31, 2018, amounted to $2.6 trillion, making it one of the largest banking and financial services institutions globally[12]. - The total liabilities as of December 31, 2018, were $2,363,875 million, compared to $2,323,900 million in 2017, indicating an increase of 1.7%[198]. - Shareholders' equity totaled $194,249 million at the end of 2018, down from $197,871 million in 2017, representing a decrease of 1.3%[198]. - Risk-weighted assets amounted to $865.318 billion[200]. Customer Engagement and Services - The company served approximately 39 million customers globally, with a focus on retail banking and wealth management[13]. - Approximately 45% of personal customers are active digital banking users, with over 30% of sales achieved through electronic channels[51]. - Customer satisfaction rankings maintained top three positions or improved in six retail banking and wealth management markets, and three commercial banking markets[51]. - The average time required for customers to open accounts in commercial banking was reduced by half to 11 days[49]. Sustainable Financing and Development - HSBC committed to providing $100 billion in financing and investment for sustainable development by the end of 2025[3]. - The company completed $28.5 billion in sustainable financing and investment globally, with an increase of $17.4 billion in 2018[51]. - HSBC aims to achieve 100% renewable energy usage by 2030, with a mid-term target of 90% by 2025; currently, signed renewable energy purchase agreements cover 29% of electricity consumption, an increase of 2 percentage points from 2017[114]. - HSBC's commitment to sustainable financing reflects its role in supporting the transition to a low-carbon economy and achieving sustainable development goals[112]. Technology and Innovation - The company is investing in digital technology to enhance services, including the launch of an award-winning mobile application[3]. - The group has invested in technology to enhance service efficiency, security, and user-friendliness, particularly in mainland China and Hong Kong[24]. - The company continues to invest in electronic banking services, with an additional $100 million allocated to enhance customer experience and operational efficiency[89]. - HSBC launched biometric authentication technology in 18 markets, simplifying login procedures, with 85% of new customers in the UK opening accounts through electronic banking services in 2018[101]. Employee Engagement and Corporate Governance - The group aims to improve employee performance and engagement as a key element of its business strategy, recognizing employees as crucial to future success[22]. - HSBC's employee recommendation rate as an ideal workplace increased to 66% in 2018, up from 64% in the previous year, indicating positive employee feedback[28]. - The company aims to achieve 30% female representation in senior leadership roles by 2020, with current representation at 28.2%[107]. - The group has simplified its governance structure by reducing the number of board committees from seven to five, enhancing clarity of responsibilities[17]. Risk Management and Compliance - The expected credit loss as a percentage of customer loans was 0.18% in 2018, slightly down from 0.19% in 2017[39]. - The company is actively monitoring credit and transaction usage portfolios, conducting stress tests to identify industries and clients that may be pressured due to tariffs, trade restrictions, and economic slowdowns in the Eurozone and China[135]. - HSBC's operational risk management framework has been strengthened, focusing on non-financial risk management and monitoring[110]. - The company is gradually incorporating climate-related risks into its risk management framework, with a focus on sustainable financing[127]. Market Position and Growth Strategy - HSBC has a strong international network and connections to high-growth markets, contributing to long-term value for stakeholders[11]. - The group plans to leverage its international network to continue attracting clients and increasing market share in established markets[24]. - The company is actively pursuing mergers and acquisitions as part of its growth strategy, with further details expected in future reports[199]. - The company is focusing on new product development and market expansion strategies, although specific details were not disclosed in the provided content[199].

As filed with the Securities and Exchange Commission on February 20, 2019. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 Or þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 Or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Or SHELL COMPANY REPORT PURSUANT TO SECTION 13 ...