Financial Performance
• Reported revenue of $27.3bn was 4% higher, with growth in all of our global businesses. This was mainly driven by higher
deposit margins and balance growth in RBWM, and GLCM growth within CMB, mainly in Hong Kong, as well as the favourable
effects of currency translation. These increases were partly offset by lower revenue in Corporate Centre. Adjusted revenue of
$27.5bn was 2% higher, excluding the effects of currency translation and movements in significant items.
• Reported operating expenses of $17.5bn were 7% higher, primarily reflecting investments to grow the business, mainly in
RBWM and GB&M, and continued investment in digital across all our global businesses. Adjusted operating expenses of
$16.4bn were 8% higher, excluding the effects of currency translation and movements in significant items.
• Reported profit before tax of $10.7bn was 5% higher, reflecting a net favourable movement in significant items and favourable
currency translation. Adjusted profit before tax of $12.1bn was 2% lower, as revenue growth and lower expected credit losses
were partly offset by higher operating expenses.
• Lending growth in 1H18 was $43bn, increasing net loans and advances to customers by 5% since 1 January 2018.
• Strong capital base with a common equity tier 1 (‘CET1’) ratio of 14.2% and a CRD IV leverage ratio of 5.4%.
John Flint, Group Chief Executive, said:
“We are taking firm steps to deliver the strategy we outlined in June. Today’s results, which are in line with our expectations, show
strong revenue growth in our global businesses. This is creating room to invest while maintaining our commitment to full-year
positive adjusted jaws. We are investing to win new customers, increase our market share, and lay the foundations for consistent
growth in profits and returns.”
Financial highlights and key ratios
Half-year to 30 Jun
2018 2017 Change
Footnotes $m $m %
Reported profit before tax 10,712 10,243 4.58
Adjusted profit before tax 1 12,139 12,364 (1.82)
% %
Return on average ordinary shareholders’ equity (annualised) 8.7 8.8
Adjusted jaws 2 (5.6)
For footnotes, see page 7.
We use adjusted performance to understand the underlying trends in the business. The main differences between reported and
adjusted are foreign currency translation and significant items.
Capital and balance sheet3
At 30 Jun 31 Dec Change 2018 2017 Footnote % %
Common equity tier 1 ratio 4 14.2 14.5
Leverage ratio 4 5.4 5.6
$m $m $m
Loans and advances to customers 973,443 962,964 10,479
Customer accounts 1,356,307 1,364,462 (8,155)
Risk-weighted assets 4 865,467 871,337 (5,870)
For footnotes, see page 7.

Highlights
Half-year to 30 Jun 2018 2017 Footnote $m $m
Reported
Revenue 5 27,287 26,166
Change in expected credit losses and other credit impairment charges (407) N/A
Loan impairment charges and other credit risk provisions N/A (663)
Operating expenses (17,549) (16,443)
Profit before tax 10,712 10,243
Adjusted
Revenue 5 27,535 26,957
Change in expected credit losses and other credit impairment charges (407) N/A
Loan impairment charges and other credit risk provisions N/A (657)
Operating expenses (16,370) (15,195)
Profit before tax 12,139 12,364
Significant items affecting adjusted performance
Revenue
Customer redress programmes (54) (299)
Disposals, acquisitions and investment in new businesses (145) 348
Fair value movements on financial instruments (152) (245)
Operating expenses
Costs to achieve — (1,670)
Costs of structural reform (211) (180)
Restructuring and other related costs (24) —
Settlements and provisions in connection with legal and regulatory matters (841) 322
For footnotes, see page 7.

Statement by Mark E Tucker, Group Chairman
At the start of the year, I spoke of the Board’s focus on enhancing HSBC’s performance and reputation.
The Group has made a good start in both regards.
The strength of our global businesses underlines the potential of the Group to make further revenue and market share gains, and
provides room to invest in revenue growth, resilience, and technology to support our customers. These are all necessary to further
strengthen HSBC’s reputation among our many stakeholders.
The strategy that John Flint, the Group Chief Executive, unveiled in June is designed to unlock this potential. We have created a
strategy that builds on past achievements to improve the Group’s competitiveness and increase value for shareholders. It focuses on
areas where HSBC is already strong, but which also hold the greatest capacity for revenue growth and value creation. This
demonstrates the many competitive advantages the Group already enjoys.
Investing in the future of the business is a key pillar of the bank’s strategy. No business can hope to thrive unless it anticipates and
adapts to the changes around it. Technological change, in particular, will only accelerate in the coming years. Being able to invest
thoughtfully and at scale at this point in the cycle will differentiate future winners from the rest of the industry.
This edge was evident in the first half of 2018. Our award-winning PayMe app acquired its millionth user and is now an established
part of the daily lives of people and business in Hong Kong. In May, HSBC executed the first ever live trade finance transaction using
scalable blockchain technology, making an important breakthrough in an area previously rich in potential but low on delivery. In July,
we announced an expansion of our use of Google Cloud technology, increasing access to some of the leading machine learning and
data analytics technology in the world. These are just a few examples of how we are marrying emerging technology with the needs
and expectations of our customers.
We are also investing to keep our customers safe. Both the Board and management remain unequivocally committed to
safeguarding our clients and delivering industry-leading financial crime standards. This is a permanent priority for everyone at HSBC.
Our global businesses continue to benefit from the economic growth trends we identified at our 2017 Annual Results presentation.
The diversity of the Group underpins our ability to manage the external environment effectively. We remain cautiously optimistic for
global growth in the remainder of the year. In particular, the fundamentals of Asia remain strong despite rising concerns around the
future of international trade and protectionism.
The Board has appointed Jonathan Symonds as the Deputy Group Chairman of HSBC Holdings plc. Jon already serves as the senior
independent director. He takes up this new role today and steps down as Chairman of HSBC Bank plc. I am delighted that Jon has
agreed to support me in this new capacity.
I am very grateful to all our people for the excellent work that they do in service of the bank, our customers and each other. Our
results for the first half demonstrate that the Group has strong foundations. I have every confidence that we will build on them
further.

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