v3.25.2
Consolidated statement of changes in equity - GBP (£)
£ in Millions
Total
Total share- holders’ equity
Called up share capital & share premium
Other equity instruments
Retained earnings
Financial assets at FVOCI reserve
Cash flow hedging reserve
Foreign exchange reserve
Group reorganisation reserve (‘GRR’)
 [1]
Insurance finance reserve
Non-controlling interests
Equity at beginning of period at Dec. 31, 2023 £ 24,505 £ 24,359 £ 1,801 £ 3,930 £ 24,724 £ (868) £ (330) £ 2,178 £ (7,692) £ 616 [2] £ 146
Profit for the period 731 715     715           16
Other comprehensive (expense)/income (net of tax) (347) (344)     (5) 62 (199) (200)   (2) [2] (3)
– debt instruments at fair value through other comprehensive income 26 25       25         1
– equity instruments designated at fair value through other comprehensive income 13 13       13          
– cash flow hedges (201) (201)         (201)        
– remeasurement of defined benefit asset/liability 25 25     25            
– changes in fair value of financial liabilities designated at fair value due to movement in own credit risk [3] (30) (30)     (30)            
– foreign exchange reclassified to income statement on disposal of a foreign operation 85 85           85      
– insurance finance income recognised in other comprehensive income 13 13               13 [2]  
Exchange differences and other (278) (274)       24 2 (285)   (15) [2] (4)
Total comprehensive income for the period 384 371     710 62 (199) (200)   (2) [2] 13
Capital securities issued during the period [4] 1,132 1,132 1,132                
Dividends paid [5] (187) (182)     (182)           (5)
Net impact of equity-settled share-based payments 5                    
Change in business combinations and other movements (352) (352)     (352)            
Equity at end of period at Jun. 30, 2024 25,487 25,333 2,933 3,930 24,905 (806) (529) 1,978 (7,692) 614 [2] 154
Profit for the period 552 538     538           14
Other comprehensive (expense)/income (net of tax) (49) (46)     (35) 114 302 (293)   (134) (3)
– debt instruments at fair value through other comprehensive income 118 118       118          
– equity instruments designated at fair value through other comprehensive income (15) (15)       (15)          
– cash flow hedges 304 304         304        
– remeasurement of defined benefit asset/liability (27) (27)     (27)            
– changes in fair value of financial liabilities designated at fair value due to movement in own credit risk [3] (10) (10)     (10)            
– foreign exchange reclassified to income statement on disposal of a foreign operation (36) (36)           (36)      
– insurance finance income recognised in other comprehensive income (121) (121)               (121)  
Exchange differences and other (262) (259)     2 11 (2) (257)   (13) (3)
Total comprehensive income for the period 503 492     503 114 302 (293)   (134) 11
Capital securities issued during the period 1,650 1,650 1,446 204              
Redemption of securities (213) (213)   (213)              
Dividends paid [5] (359) (353)     (353)           (6)
Net impact of equity-settled share-based payments (11)                    
Change in business combinations and other movements (4) (3)     (4)     1     (1)
Equity at end of period at Dec. 31, 2024 27,053 26,895 4,379 3,921 25,040 (692) (227) 1,686 (7,692) 480 [2] 158
Profit for the period 852 842     842           10
Other comprehensive (expense)/income (net of tax) (106) (112)     128 (958) 278 406   34 [2] 6
– debt instruments at fair value through other comprehensive income (919) (920)       (920)         1
– equity instruments designated at fair value through other comprehensive income 3 3       3          
– cash flow hedges 277 277         277        
– remeasurement of defined benefit asset/liability 21 21     21            
– changes in fair value of financial liabilities designated at fair value due to movement in own credit risk [3] 106 106     106            
– foreign exchange reclassified to income statement on disposal of a foreign operation 0 0                  
– insurance finance income recognised in other comprehensive income 16 16               16 [2]  
Exchange differences and other 390 385     1 (41) 1 406   18 [2] 5
Total comprehensive income for the period 746 730     970 (958) 278 406   34 [2] 16
Capital securities issued during the period 187 187   187              
Redemption of securities 0 0                  
Dividends paid [5] (173) (167)     (167)           (6)
Net impact of equity-settled share-based payments (9)       (9)            
Change in business combinations and other movements 3 3     (3) 6          
Equity at end of period at Jun. 30, 2025 £ 27,807 £ 27,639 £ 4,379 £ 4,108 £ 25,831 £ (1,644) £ 51 £ 2,092 £ (7,692) £ 514 [2] £ 168
[1] GRR is an accounting reserve resulting from the ring-fencing implementation.
[2] The insurance finance reserve reflects the impact of the adoption of the other comprehensive income option for our insurance business in France. Underlying
assets supporting these contracts are measured at fair value through other comprehensive income. Under this option, only the amount that matches income or
expenses recognised in profit or loss on underlying items is included in finance income or expenses, resulting in the elimination of income statement accounting
mismatches. The remaining amount of finance income or expenses for these insurance contracts is recognised in other comprehensive income (‘OCI’)
[3] The cumulative amount of change in fair value attributable to changes in own credit risk of financial liabilities designated at fair value was a loss of £222m (1H24:
was a gain of £88m and 2H24: loss of £18m).
[4] CET1 issuance of shares to HSBC Holdings plc equal to £1,132m in respect of funding the acquisition of PBRS in February 2024.
[5] The dividends to the parent company includes dividend on ordinary share capital £81m (1H24: £99m and 2H24: £213m), coupon payment on additional tier 1
instrument £86m (1H24: £83m and 2H24: £140m).