[HSBC Holdings plc Share Buy-Back](index=1&type=section&id=HSBC%20Holdings%20plc%20Share%20Buy-Back) [Program Overview](index=1&type=section&id=Program%20Overview) HSBC Holdings plc announced the commencement of a share buy-back program for its ordinary shares, with a maximum consideration of US$2 billion, primarily aimed at reducing the total number of outstanding ordinary shares | Item | Detail | | :--- | :--- | | **Purpose** | To reduce HSBC's outstanding Ordinary Shares | | **Maximum Consideration** | US$2 billion | | **Share Type** | Ordinary shares of US$0.50 each | [Execution Details](index=1&type=section&id=Execution%20Details) HSBC has entered into an irrevocable, non-discretionary agreement with Merrill Lynch International to execute the buy-back, with purchases scheduled from February 23, 2024, to no later than April 26, 2024, across stock exchanges in the UK and Hong Kong - HSBC has engaged **Merrill Lynch International** through an irrevocable, non-discretionary agreement to conduct the share purchases[4](index=4&type=chunk) - The buy-back period runs from **February 23, 2024**, and will end no later than **April 26, 2024**[4](index=4&type=chunk) - Share purchases will be executed on the **London Stock Exchange**, **Cboe Europe** (BXE and CXE order books), **Turquoise**, and **The Stock Exchange of Hong Kong Limited**[5](index=5&type=chunk) [Regulatory Compliance and Shareholder Authority](index=1&type=section&id=Regulatory%20Compliance%20and%20Shareholder%20Authority) The share buy-back program operates under the authority granted by shareholders at the Annual General Meeting on May 5, 2023, adhering to all relevant UK, Hong Kong, and US federal securities laws and regulations, with all repurchased shares to be cancelled - The program is conducted under the general authority granted by shareholders at the annual general meeting on **May 5, 2023**[7](index=7&type=chunk) - All Ordinary Shares purchased under the buy-back will be **cancelled**[8](index=8&type=chunk) - The maximum number of shares that can be repurchased is **1,092,358,231**, based on the 2023 shareholder authority[8](index=8&type=chunk) [Company Profile](index=2&type=section&id=Company%20Profile) HSBC Holdings plc, headquartered in London, is one of the world's largest banking and financial services organizations, reporting total assets of US$3,039 billion as of December 31, 2023, and operating in 62 countries and territories worldwide | Metric | Value | | :--- | :--- | | **Total Assets (as of 31 Dec 2023)** | US$3,039 billion | | **Global Presence** | 62 countries and territories |

FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a - 16 or 15d - 16 of the Securities Exchange Act of 1934 For the month of February HSBC Holdings plc 42nd Floor, 8 Canada Square, London E14 5HQ, England (Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F). Form 20-F X Form 40-F 21 February 2024 HSBC HOLDINGS PLC 2023 RESULTS - HIGHLIGHTS Noel Quinn, Group Chief Executive, ...

Financial Performance - HSBC Holdings reported a record profit of $30.3 billion for 2023, an increase of $13.3 billion compared to the previous year, driven by revenue growth and strategic transactions[4]. - Total revenue increased by $15.4 billion to $66.1 billion, representing a 30% growth, with net interest income rising by $5.4 billion due to higher interest rates[4]. - The reported pre-tax profit for 2023 is $30,348 million, a significant increase from $17,058 million in 2022, representing an increase of 78.3%[15]. - The profit attributable to ordinary shareholders was $22,432 million, up from $14,346 million in 2022, marking a growth of 56.5%[32]. - The company reported a net profit of $24,559 million for 2023, compared to $16,249 million in 2022, which is a 51% increase[54]. - The total comprehensive income for 2023 was $29,542 million, a significant recovery from a loss of $993 million in 2022[54]. - The basic earnings per share (EPS) rose to $1.15 in 2023, compared to $0.72 in 2022, reflecting a growth of 59.7%[15]. - The average return on common equity improved to 13.6% in 2023, compared to 9.0% in 2022, indicating stronger profitability relative to equity[15]. Capital and Dividends - The Common Equity Tier 1 capital ratio improved to 14.8%, an increase of 60 basis points, despite dividend payments and share buybacks[4]. - The board approved a fourth interim dividend of $0.31 per share, totaling $0.61 per share for 2023, and announced a share buyback program of up to $2 billion[4]. - The dividend payout ratio for 2023 is 50%, up from 44% in 2022, reflecting a commitment to returning value to shareholders[15]. - Total dividends paid to shareholders increased to $11,593 million in 2023 from $6,544 million in 2022, representing a growth of 77.5%[85]. - The total dividend per share for 2023 was $0.53, significantly higher than $0.27 in 2022, marking a 96.3% increase[85]. Customer and Loan Growth - Customer loans increased by $15 billion, while customer accounts rose by $41 billion, mainly driven by growth in wealth management and personal banking in Asia[4]. - Customer loans (net) amounted to $938,535 million, slightly up from $923,561 million in 2022, indicating stable loan growth[15]. - The total customer accounts reached $1,611,647 million, up from $1,570,303 million in 2022, an increase of 2.6%[32]. - The company anticipates mid-single-digit percentage growth in customer loans year-over-year in the medium to long term, despite cautious outlook for the first half of 2024[10]. Operating Efficiency - Operating expenses decreased by $600 million to $32.1 billion, a 2% reduction, primarily due to the end of a cost-saving program[4]. - The cost-to-income ratio improved to 48.5% in 2023, down from 64.6% in 2022, showcasing better operational efficiency[15]. - The total operating expenses for 2023 were $32,070 million, a slight decrease from $32,701 million in 2022[52]. Credit Losses and Provisions - Expected credit losses decreased by $1 billion to $3.4 billion, representing 33 basis points of average loans, influenced by economic uncertainties and inflation pressures[4]. - Expected credit loss provisions are projected to average about 40 basis points of total loans for 2024, with a return to normal levels of 30 to 40 basis points in the medium to long term[10]. - Expected credit losses and other credit impairment charges totaled $3,447 million, compared to $3,630 million in the previous year, reflecting a decrease of about 5.0%[50]. Strategic Initiatives and Acquisitions - HSBC completed the acquisition of Silicon Valley Bank UK, contributing an estimated $1.6 billion to pre-tax profit[4]. - The company plans to continue expanding its market presence and investing in new technologies to enhance customer service and operational efficiency[4]. - Following the sale of its French retail banking business, the company is focusing on investing in business development, including the acquisition of Citigroup's retail wealth management business in mainland China[62]. Market Outlook and Economic Conditions - The company anticipates challenges in the market environment, particularly due to conflicts in Europe and the Middle East, which may lead to economic volatility[66]. - The economic outlook for 2024 remains cautiously optimistic, with expectations of a slowdown in growth during the first half, followed by a recovery[76]. - HSBC's financial performance improved in 2023, with enhanced shareholder returns reflecting the collective efforts of all employees[76]. Legal and Regulatory Matters - HSBC is involved in multiple ongoing legal cases related to alleged anti-competitive behavior in foreign exchange and precious metals markets, with potential damages in Canada amounting to CAD 1 billion plus CAD 250 million in punitive damages[97]. - Ongoing investigations by global tax authorities may lead to substantial financial impacts for HSBC, although specific outcomes are currently unpredictable[98]. - HSBC is facing a collective lawsuit in Canada regarding price manipulation of silver and gold, with claims totaling CAD 1 billion[97]. Risk Management and Governance - The Group Risk Management Committee oversees internal controls and risk management systems, excluding financial reporting controls[141]. - HSBC has complied with the corporate governance codes in both the UK and Hong Kong throughout 2023[141]. - The establishment of the Technology Committee will lead to the formal dissolution of the Technology Governance Working Group on March 1, 2024[141].

Investment Rating - The report assigns an "OUTPERFORM" rating with a target price of 53.12, while the current price is 49.4 [3]. Core Insights - The report indicates that revenue and profit missed expectations primarily due to a decline in net interest margin (NIM), which decreased by 18 basis points to 1.52%, below the Bloomberg consensus forecast of 1.69% [12][36]. - Total revenue decreased by 10.6% year-over-year, which is lower than the Bloomberg consensus forecast of a 7.0% decline [18][36]. - Pre-tax profit saw a significant drop of 80.6% year-over-year, also falling short of the expected 5.9% decline [18][36]. - Net profit attributable to common shareholders decreased by 103.3% year-over-year, compared to the expected decline of 26.8% [18][36]. Revenue Breakdown - Wealth and Personal Banking revenue fell by 39.1% year-over-year, underperforming against the Bloomberg consensus forecast of a 33.1% decline [37]. - Commercial Banking revenue increased by 11.9% year-over-year, but this was below the expected growth of 14.4% [37]. - Global Banking and Markets revenue grew by 7.7% year-over-year, exceeding the Bloomberg consensus forecast of 5.1% [37][41]. Financial Metrics - Net interest income decreased by 7.8% year-over-year, contrasting with the Bloomberg consensus forecast of a 1.4% increase [12][36]. - Non-interest income fell by 15.1% year-over-year, which was better than the expected decline of 20.4% [12][36]. - The cost-to-income ratio increased by 6.4 percentage points to 66.4%, worse than the expected 60.3% [36]. - The Common Equity Tier 1 (CET1) ratio rose by 0.6 percentage points to 14.8%, surpassing the expected 14.6% [19][36]. Loan and Deposit Growth - Total loans to customers increased by 1.6% year-over-year, exceeding the Bloomberg consensus forecast of 0.8% [12]. - Total deposits grew by 2.6% year-over-year, also outperforming the expected decline of 0.4% [12]. Conclusion - The report highlights significant challenges faced by the company, particularly in terms of net interest income and overall profitability, while also noting areas of growth in loans and deposits [36][41].

Strategy 4Q22 results Summary Appendix Our strategy 3Q23 results Appendix >100% 16% 9M22 9M23 $0.8bn $1.1bn +40% c.$3.6bn in assets and deposits 3Q23 results Appendix | --- | --- | --- | |-------------------|-------|---------| | $bn | 3Q23 | Δ (%) | | Customer loans | 936 | (0)% | | Customer deposits | 1,563 | (0)% | | Reported RWAs | 840 | (2)% | | CET1 ratio7, % | 14.9 | 0.2ppts | | TNAV per share, $ | $7.96 | $0.12 | Banking NII of $11.5bn Customer deposits stable vs. 2Q23 3Q23 results Appendix +40% WPB ...

Financial Performance - HSBC reported a pre-tax profit of $29.4 billion for the first nine months of 2023, an increase of $17.8 billion or over 100% compared to the same period in 2022[11]. - Total revenue for the first nine months of 2023 reached $53.0 billion, reflecting a 51% increase from $35.2 billion in the same period of 2022[11]. - The bank's pre-tax profit for Q3 2023 was $7.7 billion, an increase of over 100% from $3.2 billion in Q3 2022[5]. - The total pre-tax profit for the nine months ended September 30, 2023, was $29,371 million, significantly up from $11,528 million in the same period of 2022[62]. - For the first nine months of 2023, HSBC reported a pre-tax profit of $29.4 billion, an increase of $17.4 billion compared to the same period in 2022[68]. - The adjusted profit before tax for the first nine months was $29.4 billion, up $17.4 billion, driven by increased net interest income and the reversal of a $2.3 billion impairment related to the planned sale of the French retail banking business[92]. Revenue Growth - Net interest income for the first nine months of 2023 was $27.5 billion, up $6.1 billion or 29% year-over-year, driven by rising average market interest rates[12]. - Total revenue for the first nine months of 2023 was $22.9 billion, an increase of $8.9 billion, representing a growth rate of 64% driven by expanded net interest income and increased loans[42]. - Wealth management revenue reached $5.815 billion for the first nine months of 2023, compared to $5.172 billion in the same period of 2022, reflecting a growth of 12.4%[19]. - Global payment solutions revenue increased to $9,166 million, up over 100% compared to $4,320 million in the same period last year[44]. - The acquisition of UK Silicon Valley Bank contributed a one-time gain of $1,593 million, significantly impacting overall revenue[44]. Operating Expenses - Operating expenses for the first nine months of 2023 were $23.4 billion, a slight decrease from $23.4 billion in the same period of 2022[11]. - Operating expenses for the first nine months of 2023 were $23.425 billion, a decrease of 2% from $23.920 billion in the same period of 2022[28]. - Adjusted operating expenses were $8 billion, reflecting a 2% increase, mainly due to rising technology costs and performance-linked compensation, although restructuring costs decreased[92]. Credit Losses - Expected credit losses increased to $2.4 billion for the first nine months of 2023, compared to $2.2 billion in the same period of 2022[11]. - Expected credit losses were $2.416 billion for the first nine months of 2023, compared to $2.155 billion in the same period of 2022, reflecting an increase of $261 million or 12%[28]. - The expected credit loss provision for Q3 2023 remained largely unchanged, with specific provisions related to the commercial property sector in mainland China[25]. Asset Management - Total assets as of September 30, 2023, amounted to $3 trillion, a decrease of $21 billion from June 30, 2023, with a negative impact of $59 billion from currency translation[16]. - Customer loans decreased to $900 billion, down $24 billion, with a negative currency translation impact of $19 billion; excluding this, customer loans decreased by $5 billion[16]. - Customer accounts totaled $1.6 trillion, a decrease of $33 billion, with a negative currency translation impact of $31 billion; excluding this, customer accounts decreased by $2 billion[16]. Shareholder Returns - HSBC announced a total of $7 billion in share buybacks and declared quarterly dividends totaling $0.3 per share in 2023[2]. - The company aims for a dividend payout ratio target of 50% for 2023 and 2024, excluding significant items[48]. - The board declared a third interim dividend of $0.10 per share and plans to repurchase up to $3 billion of shares[100]. Strategic Initiatives - The company plans to sell its retail mortgage portfolio in New Zealand, which will result in $800 million being reclassified as held for sale[16]. - The company plans to acquire Citibank's retail wealth management business in mainland China, which includes approximately $3.6 billion in managed assets and deposits[68]. - The company is focused on transitioning to net-zero carbon emissions and is implementing related policies and processes[69]. Market Conditions - The company anticipates a cautious short-term outlook on loan growth, with a projected annual increase of approximately 5% in the medium to long term[16]. - The company expects net interest income to exceed $35 billion for 2023, with a cost of funds for generating trading and fair value income exceeding $7 billion[63]. - Anticipated credit loss provisions are expected to average around 40 basis points of total loans for 2023, reflecting ongoing monitoring of risks in the commercial property sector in mainland China[64].

Diversity and Inclusion - As of the end of the first half of 2023, the proportion of women in senior leadership positions at HSBC has increased to 33.6%, with a target of reaching 35% by the end of 2025[1]. - The company is committed to fostering an inclusive work environment to attract and retain diverse talent[1]. Climate and Sustainability Initiatives - HSBC has invested $30 million in climate technology risk capital strategies to support innovations in key areas such as electric vehicle routing and technology[1]. - The company aims to achieve net-zero carbon emissions for its own operations and supply chain by 2030, and for its financed projects by 2050[1]. - HSBC is expanding the number of industries covered by its 2030 financing emissions targets, including shipping, agriculture, commercial real estate, and residential properties[1]. - HSBC's revised energy policy, released in December 2022, now encompasses a broader range of energy sectors, including upstream oil and gas, hydrogen, and renewable energy[1]. - HSBC has launched a sustainable development academy in 2022 to enhance employee skills in support of the net-zero carbon emissions goal[1]. - The group is committed to managing climate risks across all businesses and integrating climate factors into existing risk categories, with detailed disclosures available in the 2022 Annual Report[11]. Financial Performance - Net interest income for the first half of 2023 was $18.3 billion, an increase of $4.9 billion or 36% compared to the same period in 2022[25]. - The total pre-tax profit for the first half of 2023 was $21.657 billion, significantly higher than $8.780 billion in the same period of 2022[21]. - The bank's business net interest income for the first half of 2023 was $21.9 billion, up from $13.6 billion in the same period of 2022, reflecting a growth of 61%[23]. - The effective tax rate for the first half of 2023 was 16.6%, with a decrease of 1.9 percentage points attributed to non-taxable gains from the acquisition of the UK Silicon Valley Bank[33]. - The profit attributable to ordinary shareholders for the six months ended June 30, 2023, was $16,966 million, compared to $7,966 million for the same period in 2022, representing a 113% increase[97]. Risk Management - The company is committed to addressing environmental, social, and governance (ESG) risks, which have increased due to global regulatory developments and stakeholder expectations[15]. - The company continues to monitor evolving regulatory environments, especially following recent bank failures that may lead to changes in overall regulatory scrutiny[15]. - The company is actively managing model risk as regulatory requirements evolve, particularly concerning capital models and the use of artificial intelligence[15]. - The group is closely monitoring credit quality changes and potential risks of defaults in various sectors[117]. - The company continues to enhance risk management frameworks, particularly in third-party risk policies and climate risk assessments[113]. Economic Outlook - The economic outlook remains uncertain, particularly in the UK, which may adversely affect profitability and growth prospects in that market[117]. - The risk of economic recession persists, with mixed signals from the commercial property market in mainland China[117]. - The anticipated credit losses and other credit impairment provisions were impacted by global inflation and rising interest rates in the first half of 2023[117]. - The unemployment rate in the UK is expected to rise to 4.2% in 2023, with a gradual increase from 2022 levels, while China and Hong Kong are anticipated to see a decrease in unemployment rates as the economy recovers[149]. - The overall economic outlook reflects a significant risk of recession, with potential increases in unemployment and declines in asset prices[163]. Customer Engagement and Technology - The company is focused on enhancing digital technology to innovate and improve customer service, while also managing associated risks[15]. - The company is actively simplifying banking procedures and providing tools to help customers manage their finances effectively[1]. - HSBC plans to continue expanding its market presence and investing in new technologies to enhance customer experience[79]. Credit Losses and Provisions - Expected credit losses and other credit impairment charges amounted to $1.3 billion in the first half of 2023, including $1.1 billion in stage three provisions, with $300 million related to the commercial property sector in mainland China[29]. - The expected credit loss provision as of June 30, 2023, is $12.8 billion, an increase of $0.2 billion from December 31, 2022, including $1 billion from adverse foreign exchange movements[123]. - The expected credit loss for retail loans increased by $100 million compared to December 31, 2022, while wholesale loans saw a decrease of $400 million[192]. Strategic Transactions - The acquisition gain recognized from the purchase of the UK Silicon Valley Bank was $1.5 billion, contributing positively to the financial results[28]. - The company recognized a temporary gain of $1,500 million related to the acquisition of Silicon Valley Bank in the UK[81]. Workforce and Employee Engagement - A 2022 reward survey indicated a 9 percentage point increase in employees who believe their compensation is fair[1]. - Employee turnover rates have eased, but inflation remains high in certain regions, impacting talent retention and recruitment efforts[15]. - The number of employees as of June 30, 2023, was 221,764, an increase of 2,565 from December 31, 2022, indicating growth in workforce[33].

HSBC Holdings PLC (NYSE:HSBC) Q2 2023 Earnings Conference Call August 1, 2023 2:30 AM ET Company Participants Richard O'Connor - Global Head, IR Noel Quinn - Group CEO Georges Elhedery - Group CFO Conference Call Participants Manus Costello - Autonomous Aman Rakkar - Barclays Bank Raul Sinha - JPMorgan Chase & Co. Nicholas Lord - Morgan Stanley Perlie Mong - KBW Guy Stebbings - BNP Paribas Exane Tom Rayner - Numis Securities Katherine Lei - JPMorgan Chase & Co. Joseph Dickerson - Jefferies Andrew Coombs - C ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of August 2023 Commission File Number: 001-14930 HSBC Holdings plc 8 Canada Square, London E14 5HQ, England (Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F). Form 20-F X Form 40-F ...... This Report on Form 6-K with respect to our interi ...

Financial Performance - The company reported a profit of $17,508 million for the current period, contributing to a total comprehensive income of $16,528 million[3]. - The profit before tax for the six months ended June 30, 2023, was $21,657 million, a significant increase from $8,780 million in the same period of 2022, representing a growth of approximately 146%[11]. - The net profit after tax for the six months ended June 30, 2023, was $18,071 million, compared to $8,931 million in the same period of 2022, representing an increase of 102%[36]. - The total comprehensive income for the period was $17,032 million, compared to a loss of $(3,598) million in the previous year[97]. - The company reported a significant loss from the sale of subsidiaries and joint ventures amounting to $(3,604) million, compared to a loss of $(71) million in the prior year[11]. - The company recognized a temporary gain of $1.5 billion related to the acquisition of UK Silicon Valley Bank[95]. - The company reversed an impairment loss of $2.1 billion associated with the planned sale of its French retail banking business, which is no longer classified as held for sale[95]. Assets and Liabilities - Total assets increased to $3,041,476 million as of June 30, 2023, up from $2,949,286 million at December 31, 2022, representing a growth of approximately 3.1%[1]. - Total liabilities reached $2,849,825 million, reflecting an increase of 3.1% from $2,764,089 million at the end of 2022[1]. - The total equity attributable to shareholders at the end of the period was $184,170 million, up from $178,975 million year-over-year[73]. - The total risk-weighted assets were $859,545 million, slightly up from $851,743 million, indicating a stable capital position[73]. - The company’s cash and balances with central banks decreased to $307,733 million from $327,002 million, a decline of about 5.1%[1]. Revenue and Income - Total revenue for the six months ended June 30, 2023, was $36,876 million, up from $24,545 million in the same period of 2022, reflecting a 50% increase[36]. - Net interest income for the first half of 2023 was $18,264 million, up from $12,846 million in the first half of 2022, representing a significant increase of 42%[77]. - The bank's total revenue for the first half of 2023 was $30 billion, reflecting a 15% year-over-year growth driven by higher interest rates and increased customer activity[67]. Dividends and Shareholder Returns - The company declared dividends amounting to $4.497 million to shareholders during the period[6]. - The total dividend for the year is $0.33 per share, amounting to $6.591 billion, compared to $0.18 per share and $3.576 billion in the previous year[22]. - The board approved a second interim dividend of $0.10 per share and plans to initiate a share buyback of up to $2 billion[82]. - The company paid $7,508 million in dividends to shareholders, which is an increase from $4,497 million in the previous year, indicating a rise of approximately 67%[11]. Regulatory and Compliance - The company has implemented IFRS 17 "Insurance Contracts" starting January 1, 2023, replacing IFRS 4, which may impact future financial reporting[1]. - The company has confirmed that there are no significant impacts from new standards or amendments on its financial statements[17]. - HSBC has complied with applicable provisions of the UK Corporate Governance Code as of June 30, 2023[58]. Legal Matters - HSBC is involved in various legal proceedings and regulatory matters across multiple jurisdictions, but considers none to be significant at this time[39]. - HSBC has faced multiple lawsuits since November 2014, with plaintiffs alleging the bank assisted sanctioned parties in illegal activities, with significant potential impacts still pending resolution[43]. - HSBC's management has indicated that predicting the resolution of ongoing legal matters is not feasible, but the potential impacts could be significant[43][45]. Strategic Initiatives - The company plans to expand its market presence and invest in new technologies to enhance customer experience and operational efficiency[2]. - HSBC is exploring strategic acquisitions in Asia to strengthen its market position and expand its customer base[67]. - The company is investing $3 billion in technology and innovation over the next three years to enhance its service offerings and operational capabilities[67]. Operational Efficiency - The bank's cost-to-income ratio improved to 52%, down from 55% in the previous year, showcasing enhanced operational efficiency[67]. - The company’s operating liabilities increased significantly by $72,836 million, compared to a decrease of $(35,752) million in the previous year, indicating a substantial shift in financial position[11]. - The company’s technology spending increased by 12.8% in the first half of 2023, now accounting for nearly one-quarter of total operating expenses[71].