HSBC HOLDINGS-汇丰控股(00005) - 2020 - 年度财报

Financial Performance - Adjusted profit before tax for 2020 was $6.1 billion, down from$ 8.7 billion in 2019, with basic earnings per share at $0.19 compared to$ 0.30 in 2019[11]. - Reported revenue for 2020 was $50.429 billion, a decrease of 10% compared to$ 56.098 billion in 2019[18]. - Reported profit before tax was $8.777 billion, down 34% from$ 13.347 billion in 2019[18]. - Reported profit after tax was $6.099 billion, a decline of 30% from$ 8.708 billion in 2019[18]. - Adjusted pre-tax profit was $12.1 billion, down 45% from the previous year[17]. - Adjusted revenue for the year was$ 50,366 million, a decrease from $54,944 million in the previous year[19]. - Adjusted pre-tax profit was$ 12,149 million, down from $22,149 million year-over-year[19]. - The average tangible equity return was 3.1%, down from 8.4% in the previous year[19]. - The group's reported pre-tax profit decreased by 34% to$ 8 billion, while adjusted pre-tax profit fell by 45% to $12.1 billion due to increased expected credit losses and reduced income[122]. - The average tangible equity return for 2020 was 3.1%, down 530 basis points from 2019, primarily due to expected credit losses and reduced income[123]. Capital and Liquidity - The common equity tier 1 capital ratio stood at 15.9%[11]. - The common equity tier 1 ratio increased to 15.9%, up 1.2 percentage points from 14.7% at the end of 2019[17]. - The total capital ratio increased to 21.5%, up from 20.4% last year[19]. - Total assets reached$ 2,984,164 million, up from $2,715,152 million in the previous year[19]. - The group held$ 678 billion in high-quality liquid assets as of December 31, 2020, demonstrating strong liquidity management[140]. - The common equity tier 1 ratio was 15.9% as of December 31, 2020, up from 14.7% at the end of 2019, reflecting the cancellation of the fourth dividend in 2019 and changes in software asset capital treatment[139]. Credit Losses and Provisions - Expected credit losses increased to $8.8 billion, reflecting a rise of$ 6.1 billion due to the impact of the COVID-19 pandemic[17]. - Customer loans' expected credit loss provisions rose from $8.7 billion at the end of 2019 to$ 14.5 billion by the end of 2020[17]. - The expected credit loss as a percentage of total customer loans rose to 0.81%, significantly higher than 0.25% last year[19]. - The expected credit losses for 2020 amounted to $8.8 billion, an increase of$ 6.1 billion compared to 2019, reflecting the impact of the COVID-19 pandemic on the global economic outlook[124]. Sustainable Financing and Investment - The total sustainable financing and investment provided since 2017 reached $93 billion, up from$ 52.4 billion in 2019[11]. - The company plans to provide $750 billion to$ 1 trillion in sustainable financing and investment over the next decade to support sustainable development[41]. - HSBC aims to achieve net-zero emissions in its financing portfolio by 2050, reflecting its commitment to sustainable value creation[33]. - The company aims to achieve net-zero carbon emissions in its operations and supply chain by 2030, aligning with the Paris Agreement goals[81]. - The group aims to provide and facilitate $100 billion in sustainable financing and investment by the end of 2025, with cumulative progress since 2017 reaching$ 93 billion[87]. Customer Support and Satisfaction - The company continues to support customers through relief measures during the pandemic, indicating a commitment to client support[8]. - Customer satisfaction improved, with 30.3% of senior leadership positions held by women, up from 29.4% in 2019[11]. - HSBC provided loan support to over 237,000 wholesale customers globally, amounting to $35.3 billion, through government programs and its own measures by the end of 2020[84]. - HSBC maintained operations in most branches while ensuring the health and safety of customers and employees during the pandemic[84]. Strategic Initiatives and Reforms - The company has made good progress on its reform plans and is preparing for the next phase of its strategic initiatives[9]. - The board confirmed the appointment of the new CEO, who will focus on implementing priority strategies in 2021[31]. - The company is focused on building a strong corporate culture and simplifying work processes to drive growth and innovation[41]. - The company is committed to capturing opportunities in cross-border trade services and aims to be a leading provider of international banking services for medium-sized enterprises[41]. Technology and Digital Transformation - The company has shifted its focus to technology investments, emphasizing the acceleration of digitalization to enhance service efficiency[41]. - Digital banking usage increased by approximately 30% compared to pre-pandemic levels, with a significant rise in mobile and online banking customers[48]. - The company plans to invest in technology even if it requires cutting other expenditures, ensuring continued investment throughout the investment period[41]. - The company is enhancing technology investments across customer platforms to improve cost efficiency and increase fee income from wealth management and wholesale banking products[52]. Diversity and Inclusion - The company has set a target to increase the percentage of women in senior leadership roles from over 30% to at least 35% by 2025[43]. - Approximately 71% of employees consider the company an ideal workplace, an increase from 66% in 2019[43]. - The company has implemented a global racial inclusion plan to promote career development and advancement opportunities for minority employees[43]. - The company achieved a 30.3% representation of women in senior leadership roles by the end of 2020, surpassing its 30% target set for that year, and aims for 35% by 2025[98]. Risk Management and Geopolitical Concerns - Geopolitical risks, including tensions between the US and China, are being closely monitored as they affect business and investment sentiment[13]. - The company is actively monitoring emerging geopolitical, economic, and environmental risks affecting capital adequacy and liquidity[179]. - The company is facing potential impacts from extreme weather events on its assets and operations, which could affect clients' ability to repay loans[91]. - The company is enhancing its cybersecurity measures to protect against advanced network threats, focusing on data-driven strategies for threat detection and recovery[188]. Community Engagement and Corporate Responsibility - In 2020, the company donated$ 112.7 million to various charitable programs and employees contributed 82,000 hours to community volunteer activities[99]. - The group established a COVID-19 relief fund of $25 million to support recovery efforts globally, including immediate medical aid and food provision for vulnerable communities[86]. - The company emphasized its commitment to supporting customers and communities during the pandemic, particularly in Hong Kong and the UK[112].