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 May, 2007
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 ......
(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934).
Yes....... No X
(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ..............)
GRUPO FINANCIERO HSBC, S.A. DE C.V.
FIRST QUARTER 2007 FINANCIAL RESULTS - HIGHLIGHTS
On 8 August 2006, HSBC Panama was sold by Grupo Financiero HSBC, S.A. de C.V. to
HSBC Asia Holdings BV. All comparative commentary within this report is
therefore on a like-for-like basis excluding HSBC Panama, as presented in
Appendix A. The financial statements on pages 5 - 12 include HSBC Panama up
until the date of disposal.
- Net income down 3.6 per cent to MXN1,376 million for the first quarter
of 2007 (MXN1,428 million for the first quarter of 2006).
- Net loans and advances to customers up MXN25.7 billion, or 19.3 per
cent, to MXN158.9 billion at 31 March 2007 (MXN133.2 billion at 31 March
2006).
- Total assets up MXN29.5 billion, or 10.6 per cent, to MXN309.0 billion
at 31 March 2007 (MXN279.5 billion at 31 March 2006).
- Cost efficiency ratio (excluding monetary position) of 59.8 per cent for
the first quarter of 2007 (61.8 per cent for the first quarter of 2006).
- Return on equity of 16.5 per cent for the first quarter of 2007 (21.8
per cent for the first quarter of 2006).
HSBC Mexico S.A. (the bank) is Grupo Financiero HSBC, S.A. de C.V.'s (the group)
primary subsidiary, and is subject to supervision by the Mexican Banking and
Securities Commission. The bank is required to file periodic financial
information on a quarterly basis (in this case for the quarter ended 31 March
2007) and this information is publicly available. Given that this information is
available in the public domain, Grupo Financiero HSBC, S.A. de C.V. has elected
to file this release.
Results are prepared in accordance with Mexican GAAP (generally accepted
accounting principles), with figures denominated in Mexican pesos (MXN).
Comparative figures are presented on an actual basis, indexed to constant MXN as
at 31 March 2007.
Grupo Financiero HSBC, S.A. de C.V. is a 99.99 per cent directly owned
subsidiary of HSBC Holdings plc (HSBC).
Commentary by Paul Thurston, CEO of Grupo Financiero HSBC Mexico:
"Grupo Financiero HSBC has achieved strong business growth during the first
quarter of 2007 as a result of our continued investment in building our customer
base and business volumes in Mexico. Year-on-year, our personal customer base is
up by more than 800,000 clients, the number of credit cards in issue has
increased by 69.4 per cent to 2.1 million cards, and our small business client
base has risen by 21 per cent. Our packaged products have continued to be very
successful, and in the first quarter we sold 170,000 Tu Cuenta and 1,718
Estimulo packages.
"Net income of MXN1,376 million in the first quarter of 2007, however, fell by
MXN52 million compared with the first quarter of 2006 as overall strong revenue
momentum was offset by reduced revenues in Global Markets, with trading income
down MXN224 million year-on-year.
"The group achieved strong total revenue growth of 11.1 per cent - despite lower
earnings from Global Markets - exceeding cost growth of 7.5 per cent for the
period ended 31 March 2007 compared with the same period of 2006, and resulting
in a cost efficiency improvement. Loan impairment charges grew as a consequence
of our investment in expanding our consumer and small business commercial loan
portfolios.
"In line with the HSBC Group's organic growth strategy, we continue to invest in
building our business in Mexico, and are modernising and streamlining our
processes to handle greater business volumes and provide improved services to
our clients. By combining the Group's knowledge, network and brand with the
experience and capabilities of our staff, we are driving product innovation and
service enhancements to capture market share in key markets.
"Our commitment to Corporate Responsibility remains strong and I am pleased to
announce that, in 2007, for the second consecutive year, the Mexican
Philanthropy Centre (CEMEFI) and Aliarse recognised HSBC Mexico with a
certification for Socially Responsible Company 2007."
Overview
In the first quarter of 2007, Grupo Financiero HSBC's net income of MXN1,376
million was MXN52 million, or 3.6 per cent, lower than the same period in 2006.
Net interest income (excluding monetary position) was up by MXN692 million to
MXN5,110 million for the period ended 31 March 2007, a 15.7 per cent increase
compared to the same period in 2006. Lower spreads on deposits, as a result of
reduced market rates, and lower net interest income in Global Markets, were more
than offset by significant growth in higher-yielding credit card lending and
small- and medium-sized business (SME) products.
Net fees and commissions were up by MXN321 million to MXN2,433 million for the
quarter ended 31 March 2007, a 15.2 per cent increase on the same period in
2006. This was mainly driven by an increased number of credit cards in
circulation and the continued success of the bank's packaged products, Tu Cuenta
(for personal customers) and Estimulo (for business customers), in addition to
ATM, point of sale, mutual fund and trade services fees.
Trading income at MXN325 million was 40.8 per cent lower than in the same period
of the previous year. Retail foreign exchange continues to drive positive
results, but both interest rate and fixed income trading portfolios generated
lower income than in the same period in 2006, affected by the volatility in the
local markets resulting from both local and international market conditions.
Administrative expenses of MXN4,705 million were 7.5 per cent higher than in the
same period in 2006. Personnel expenses increased as a result of the 2,199 new
employees hired since March 2006. Marketing expenses, information technology
improvements and investment in the expansion, relocation and renovation of the
branch and ATM infrastructure have also contributed to expense growth. With cost
growth below the rate of revenue growth, however, the cost efficiency ratio
(excluding monetary position) improved from 61.8 per cent in the first quarter
of 2006 to 59.8 per cent for the same period in 2007.
During the first quarter of 2007, loan impairment charges increased by MXN781
million to MXN1,407 million compared with the same period in 2006, reflecting
strong growth in the consumer loan portfolio and higher impairment in the small
business and self-employed loan portfolios. These were partially offset by
higher recoveries (which are included in Other Income in 2007 in accordance with
new Mexican GAAP reporting requirements). The allowance for loan losses as a
percentage of impaired loans was 141.6 per cent as at 31 March 2007.
The bank's capital adequacy ratio remains sound at 14.7 per cent, well above
Mexican Banking and Securities Commission (CNBV) requirements.
Business highlights
During the first quarter of 2007, the bank's Personal Financial Services (PFS)
business generated significant volume growth, with higher balances in credit
cards, mortgages, personal and payroll loans. More than 370,000 new credit cards
were issued during the quarter. At the end of March 2007, total customer loans
were up 27.8 per cent year-on-year. Higher revenues were generated from credit
cards, ATMs and from the Tu Cuenta packaged financial services product, which
reached 1.2 million accounts at 31 March 2007. Insurance premiums continued to
grow, with a 15.6 per cent increase year-on-year.
During the first quarter of 2007, the distribution network grew with six new
branches opened and 76 new ATMs installed. In March, HSBC launched a savings
account, Cuenta Chicos HSBC, for children between the ages of one and 15 years'
old.
In Commercial Banking (CMB), customer loans were 32.9 per cent higher than in
the first quarter of 2006 as HSBC continued to be a market leader in delivering
banking services to the small and micro business sector in Mexico. There were
higher revenues from card acquiring and trade services fees, as well as
increased cross-sales activity through ATMs and of payments and cash management
(PCM) services. HSBC Mexico's trade services business continues to increase
market share and has now opened offices in three regional centres, in Monterrey,
Guadalajara and Puebla.
The international business centre, which supports Mexican businesses in
expanding internationally and foreign companies in investing in Mexico, has been
expanded to cater for the growth in inward and outward business flows between
HSBC Mexico and HSBC Group members in other countries.
In Corporate, Investment Banking and Markets (CIBM), revenues from the PCM
business increased compared to the first quarter of 2006. However, in Global
Markets, revenues were significantly lower than in the same period of 2006, as
interest rate, fixed income and balance sheet trading were all negatively
affected by the volatility in the local markets resulting from both local and
international market conditions. This was partially offset by continued
profitability in retail foreign exchange and the sale of securities from the
available-for-sale portfolio.
In March 2007, HSBC Mexico successfully issued its first residential
mortgage-backed security (RMBS) for MXN2,500 million, in two series and with a
term of 15.9 years. This issuance was the largest of its kind in Latin America
and obtained AAA(mex) and mxAAA grades assigned by Fitch Ratings and Standard &
Poors, respectively.
About HSBC
Grupo Financiero HSBC, S.A. de C.V. is Mexico's fourth largest banking and
financial services institution with 1,350 branches, 5,482 ATMs, approximately
7.8 million customers and more than 23,000 employees. For more information,
consult our website at www.hsbc.com.mx.
Grupo Financiero HSBC, S.A. de C.V. is a 99.99 per cent directly owned
subsidiary of HSBC Holdings plc. Headquartered in London, UK, the HSBC Group
serves over 125 million customers worldwide through 10,000 offices in 82
countries and territories in Europe, the Asia-Pacific region, the Americas, the
Middle East and Africa. With assets of US$1,861 billion at 31 December 2006,
HSBC is one of the world's largest banking and financial services organisations.
With listings on the London, Hong Kong, New York, Paris and Bermuda stock
exchanges, shares in HSBC Holdings plc are held by nearly 200,000 shareholders
in some 100 countries and territories. HSBC is marketed worldwide as 'the
world's local bank'.
Consolidated Balance Sheet
GROUP BANK
Figures in MXN millions
31Mar07 31Mar06 31Mar07 31Mar06
Assets
Cash and deposits in banks 54,519 53,865 54,518 49,217
Investment in securities 53,334 62,026 52,251 60,170
Trading securities 17,858 10,100 16,775 9,739
Available-for-sale
securities 31,555 47,821 31,555 46,326
Held to maturity
securities 3,921 4,105 3,921 4,105
Securities and derivative
operations 190 626 184 625
Repurchase agreements 87 86 82 86
Derivative transactions 103 540 102 539
Performing loans
Commercial loans 61,583 49,865 61,583 44,098
Loans to financial
intermediaries 6,107 5,806 6,107 5,699
Consumer loans 38,168 31,130 38,168 29,305
Mortgage loans 18,440 22,652 18,440 17,444
Loans to government
entities 36,689 37,881 36,689 37,881
Loans to Fobaproa or IPAB - 1,164 - 1,164
Total performing loans 160,987 148,498 160,987 135,591
Impaired loans
Commercial loans 1,840 1,302 1,840 1,254
Consumer loans 2,056 971 2,056 957
Mortgage loans 1,233 991 1,233 911
Immediate collection,
remittances and other - 13 - 13
Total impaired loans 5,129 3,277 5,129 3,135
Gross loans and advances to
customers 166,116 151,775 166,116 138,726
Allowance for loan losses (7,262) (5,764) (7,262) (5,576)
Net loans and advances to
customers 158,854 146,011 158,854 133,150
Other accounts receivable 29,430 22,565 26,773 21,873
Foreclosed assets 65 337 65 294
Property, furniture and
equipment, net 6,111 5,897 6,097 5,640
Long-term investments
in equity securities 2,845 2,532 156 208
Deferred taxes - 886 - 742
Goodwill 2,680 3,426 - -
Other assets, deferred
charges and intangibles 1,000 1,744 966 1,544
Total assets 309,028 299,915 299,864 273,463
Liabilities
Deposits 213,167 220,240 214,822 202,512
Demand deposits 121,208 124,622 122,863 117,361
Time deposits 87,690 95,618 87,690 85,151
Bonds 4,269 - 4,269 -
Bank deposits and
other liabilities 10,588 6,389 10,588 6,389
On demand 2,015 - 2,015 -
Short-term 6,467 4,281 6,467 4,281
Long-term 2,106 2,108 2,106 2,108
Securities and derivative
transactions 4,415 8,408 4,410 8,407
Repurchase agreements 20 63 15 62
Securities deliverable under
loan transactions 4,395 8,345 4,395 8,345
Other accounts payable 44,226 33,642 41,505 32,408
Income tax and employee
profit sharing payable 1,467 1,965 1,416 1,909
Sundry creditors and other
accounts payable 42,759 31,677 40,089 30,499
Subordinated debentures
outstanding 2,209 2,699 2,209 2,301
Deferred taxes 384 - 429 -
Deferred credits 120 30 120 24
Total liabilities 275,109 271,408 274,083 252,041
Equity
Paid in capital 20,928 20,928 13,194 13,194
Capital stock 8,004 8,004 3,977 3,977
Additional paid in capital 12,924 12,924 9,217 9,217
Other reserves 12,970 7,576 12,568 8,227
Capital reserves 853 668 9,258 4,831
Retained earnings 18,635 13,304 4,466 4,427
Result from the mark-to-
market of available-for-
sale securities - - 86 90
Result from translation of
foreign operations - 10 - 12
Cumulative effect of
restatement (3,888) (3,888) (3,504) (3,545)
Gains on non-monetary
asset valuation (4,006) (4,007) 1,152 1,165
Net income 1,376 1,489 1,110 1,247
Minority interest
in capital 21 3 19 1
Total equity 33,919 28,507 25,781 21,422
Total liabilities and
equity 309,028 299,915 299,864 273,463
Consolidated Balance Sheet (continued)
GROUP
Figures in MXN millions
31Mar07 31Mar06
Memorandum Accounts
Transactions on behalf of
third parties 91,274 97,523
Customer current accounts (11) 1
Customer bank - 1
Settlement of customer securities
and documents (11) -
Customer securities 65,545 75,545
Customer securities in custody 65,539 74,214
Pledged customers securities
and documents 6 1,331
Transactions on behalf of
customers 2,323 2,597
Customer repurchase transac-
tions 2,323 2,597
Other transactions on behalf
of customers 23,417 19,380
Investment on behalf of
customers, net 23,417 19,380
Other memorandum accounts 356,274 508,854
Investment of the SAR funds 3,540 3,680
Integrated loan portfolio 173,788 144,371
Other memorandum accounts 178,946 360,803
Transactions for the group's
own accounts 1,054,615 568,419
Accounts for the group's own
registry 1,054,548 568,398
Guarantees granted 48 61
Irrevocable lines of credit
granted 7,623 5,584
Goods in trust or mandate 111,818 72,039
Goods in custody or under
administration 56,165 72,294
Amounts committed in transactions
with Fobaproa 152 119
Amounts contracted in
derivative operations 874,673 400,399
Securities in custody 3,942 4,097
Other contingent obligations 127 13,805
Repurchase/resale agreements
Securities receivable under
repos 45,764 49,823
(less) Repurchase agreements (45,700) (49,801)
64 22
Reverse repurchase agreements 5,324 16,050
(less) Securities deliverable
under repos (5,321) (16,051)
3 (1)
BANK
Figures in MXN millions
31Mar07 31Mar06
Memorandum Accounts
Guarantees granted 47 61
Other contingent obligations 127 13,805
Irrevocable lines of credit
granted 7,623 5,584
Goods in trust or mandate 111,818 72,039
Goods in custody or under
administration 56,165 72,294
Third party investment banking
operations, net 23,417 19,380
Amounts committed in
transactions with Fobaproa 152 119
Amounts contracted in
derivative operations 874,673 400,399
Investments of retirement
savings system funds 3,540 3,680
Integrated loan portfolio 173,788 144,371
Other control accounts 178,946 360,802
1,430,296 1,092,534
Securities receivable under repos 43,442 47,239
(less) Repurchase agreements (43,377) (47,204)
65 35
Reverse repurchase agreements 3,001 13,454
(less) Securities deliverable
under repos (2,999) (13,466)
2 (12)
Consolidated Income Statement
Figures in MXN millions GROUP BANK
31Mar07 31Mar06 31Mar07 31Mar06
Interest income 7,546 7,071 7,438 6,787
Interest expense (2,436) (2,468) (2,392) (2,376)
Monetary position
(margin), net (348) (197) (313) (187)
Net interest income 4,762 4,406 4,733 4,224
Loan impairment charges (1,407) (642) (1,407) (626)
Risk adjusted net
interest income 3,355 3,764 3,326 3,598
Fees and commissions
receivable 2,708 2,458 2,500 2,179
Fees payable (275) (284) (272) (273)
Trading income 325 549 324 547
Total operating income 6,113 6,487 5,878 6,051
Administrative and
personnel expenses (4,705) (4,518) (4,558) (4,205)
Net operating income 1,408 1,969 1,320 1,846
Other income 546 380 558 390
Other expenses (199) (210) (200) (209)
Net income before taxes 1,755 2,139 1,678 2,027
Income tax and employee
profit sharing tax (582) (801) (561) (760)
Deferred income tax (17) (8) (10) (21)
Net income before
subsidiaries 1,156 1,330 1,107 1,246
Undistributed income
from subsidiaries 220 159 2 1
Income from ongoing
operations 1,376 1,489 1,109 1,247
Minority interest - - 1 -
Net income 1,376 1,489 1,110 1,247
Statement of Changes in Shareholder's Equity
GROUP
Figures in MXN millions
Deficit in
restatement
of stock-
Capital Capital Retained holders' Net Minority Total
contributed reserves earnings income income interest equity
Balances at 31Dec06 20,928 853 13,041 (7,694) 5,594 2 32,724
Movements inherent
to the share-
holder's decision
Capitalisation of
retained earnings - - 5,594 - (5,594) - -
Other movements - - - - - - -
Total - - 5,594 - (5,594) - -
Movements for the
recognition of the
comprehensive
income
Net income - - - - 1,376 - 1,376
Result from foreign
currency transactions - - - - - - -
Gains on non-monetary
asset valuation - - - (200) - 19 (181)
Total - - - (200) 1,376 19 1,195
Balances at 31Mar07 20,928 853 18,635 (7,894) 1,376 21 33,919
BANK
Figures in MXN millions
Result from Deficit in
valuation of restatement
available-for- of stock-
Capital Capital Retained sale holders' Net Minority Total
contributed reserves earnings securities equity income interest equity
Balances at 31Dec06 13,194 9,258 - 306 (2,373) 4,466 1 24,852
Movements inherent to
the shareholder's
decision
Transfer of result of
prior years - - 4,466 - - (4,466) - -
Other movements - - - - - - - -
Total - - 4,466 - - (4,466) - -
Movements for the
recognition of the
comprehensive income
Net income - - - - - 1,110 - 1,110
Result from valuation
of available-for-
sale securities - - - (220) - - - (220)
Cumulative effect of
restatement - - - - 28 - 18 46
Others - - - - (7) - - (7)
Total - - - (220) 21 1,110 18 929
Balances at 31Mar07 13,194 9,258 4,466 86 (2,352) 1,110 19 25,781
Consolidated Statement of Changes in Financial Position
GROUP
Figures in MXN millions
31Mar07 31Mar06
Operating activities:
Net income 1,376 1,489
Items included in operations not requiring
(providing) funds:
Result from mark-to-market valuations 82 (548)
Allowances for loan losses 1,407 642
Depreciation and amortisation 252 174
Deferred taxes 17 8
Undistributed income from subsidiaries, net (220) (159)
Value loss estimation for foreclosed assets 2 -
Total operating items not requiring funds 2,916 1,606
Changes in items related to operations:
(Decrease) in deposits (8,516) (3,571)
(Increase) in loan portfolio (3,511) (6,135)
(Increase) / decrease in securities and
derivative transactions, net (1,932) 3,635
Decrease / (increase) in financial instruments 4,366 (1,433)
(Decrease) in bank deposits and other liabilities (2,530) (951)
Funds provided by operating activities (9,207) (6,849)
Financing activities:
Subordinated debentures outstanding (23) (20)
Increase in other payable accounts 27,211 9,440
Funds used or provided in financing activities 27,188 9,420
Investing activities:
(Increase) in property, furniture and equipment, net (331) (469)
(Increase) in deferred charges or credits, net (94) (82)
(Increase) / decrease in foreclosed assets (12) 78
(Increase) in other receivable accounts (18,768) (6,518)
Funds used in investing activities (19,205) (6,991)
(Decrease) in cash and equivalents (1,224) (4,420)
Cash and equivalents at beginning of period 55,743 58,285
Cash and equivalents at end of period 54,519 53,865
BANK
Figures in MXN millions
31Mar07 31Mar06
Operating activities:
Net income 1,110 1,247
Items included in operations not requiring
(providing) funds:
Result from mark-to-market valuations 82 101
Allowances for loan losses 1,407 626
Depreciation and amortisation 253 213
Deferred taxes 10 21
Undistributed income from subsidiaries, net 21 (1)
Value loss estimation for foreclosed assets 2 54
Minority interest (1) -
Total operating items not requiring funds 2,884 2,261
Changes in operating accounts:
(Decrease) in deposits (8,468) (4,698)
(Increase) in loan portfolio (3,511) (5,439)
Decrease in financial instruments 2,247 1,700
(Decrease) in bank deposits and other liabilities (2,530) (880)
Funds provided by operations (9,378) (7,056)
Financing activities:
Subordinated debentures outstanding (24) (25)
Increase in other payable accounts 24,579 9,321
Funds used or provided by financing activities 24,555 9,296
Investing activities:
(Increase) in property, furniture and equipment, net (167) (333)
(Increase) in deferred charges or credits, net (10) (111)
(Increase) / Decrease in foreclosed assets (13) 25
(Increase) in other receivable accounts (16,213) (6,401)
Funds used in investing activities (16,403) (6,820)
(Decrease) in cash and equivalents (1,226) (4,580)
Cash and equivalents at beginning of period 55,744 53,797
Cash and equivalents at end of period 54,518 49,217
Appendix A:
Grupo Financiero HSBC, S.A. de C.V. (HBMX)
Consolidated balance sheet on a like-for-like basis
Figures in MXN millions
Total Group Mexico^ Panama Total Group
Mar07 Mar06 Mar06 Mar06
Assets
Cash and deposits in banks 54,519 49,219 4,646 53,865
Investments in securities 53,334 60,531 1,495 62,026
Trading securities 17,858 10,100 - 10,100
Available-for-sale securities 31,555 46,326 1,495 47,821
Held to maturity securities 3,921 4,105 - 4,105
Securities and derivative operations 190 626 - 626
Repurchase agreements 87 86 - 86
Derivative transactions 103 540 - 540
Performing loans
Commercial loans 61,583 44,098 5,767 49,865
Loans to financial intermediaries 6,107 5,699 107 5,806
Consumer loans 38,168 29,305 1,825 31,130
Mortgage loans 18,440 17,444 5,208 22,652
Loans to government entities 36,689 37,881 - 37,881
Loans to Fobaproa or IPAB - 1,164 - 1,164
Total performing loans 160,987 135,591 12,907 148,498
Impaired loans
Commercial loans 1,840 1,255 47 1,302
Consumer loans 2,056 957 14 971
Mortgage loans 1,233 911 80 991
Immediate collection, remittances
and other - 13 - 13
Total impaired loans 5,129 3,136 141 3,277
Gross loans and advances to
customers 166,116 138,727 13,048 151,775
Allowance for loan losses (7,262) (5,576) (188) (5,764)
Net loans and advances to
customers 158,854 133,151 12,860 146,011
Other accounts receivable 29,430 22,418 147 22,565
Foreclosed assets 65 294 43 337
Property, furniture and
equipment, net 6,111 5,649 248 5,897
Long-term investments in equity
securities 2,845 2,532 - 2,532
Deferred taxes - 845 41 886
Goodwill 2,680 2,680 746 3,426
Other assets, deferred charges and
intangibles 1,000 1,563 181 1,744
Total assets 309,028 279,508 20,407 299,915
^ On 8 August 2006, HSBC Panama was sold by Grupo Financiero HSBC, S.A. de C.V.
to HSBC Asia Holdings BV. Therefore, the balance sheet as at 31 March 2006 has
been restated to exclude HSBC Panama to compare on a like-for-like basis.
Grupo Financiero HSBC, S.A. de C.V. (HBMX)
Consolidated balance sheet on a like-for-like basis (continued)
Figures in MXN millions
Total Group Mexico^ Panama Total Group
Mar07 Mar06 Mar06 Mar06
Liabilities
Deposits 213,167 202,428 17,812 220,240
Demand deposits 121,208 117,277 7,345 124,622
Time deposits 87,690 85,151 10,467 95,618
Bonds 4,269 - - -
Bank deposits and other
liabilities 10,588 6,389 - 6,389
On demand 2,015 - - -
Short-term 6,467 4,281 - 4,281
Long-term 2,106 2,108 - 2,108
Securities and derivative
transactions 4,415 8,408 - 8,408
Repurchase agreements 20 63 - 63
Securities deliverable under
loan transactions 4,395 8,345 - 8,345
Other accounts payable 44,226 33,142 500 33,642
Income tax and employee profit
sharing payable 1,467 1,935 30 1,965
Sundry creditors and others
accounts payable 42,759 31,207 470 31,677
Subordinated debentures
outstanding 2,209 2,301 398 2,699
Deferred taxes 384 - - -
Deferred credits 120 25 5 30
Total liabilities 275,109 252,693 18,715 271,408
Equity
Paid in capital 20,928 19,612 1,316 20,928
Capital stock 8,004 6,688 1,316 8,004
Additional paid in capital 12,924 12,924 - 12,924
Other reserves 12,970 7,200 376 7,576
Capital reserves 853 668 - 668
Retained earnings 18,635 13,006 298 13,304
Result from mark-to-market
of available-for-sale
securities - (7) 7 -
Result from translation of
foreign operations - - 10 10
Cumulative effect of restatement (3,888) (3,888) - (3,888)
Gains on non monetary asset
valuation (4,006) (4,007) - (4,007)
Net income 1,376 1,428 61 1,489
Minority interest in capital 21 3 - 3
Total equity 33,919 26,815 1,692 28,507
Total liabilities and equity 309,028 279,508 20,407 299,915
^ On 8 August 2006, HSBC Panama was sold by Grupo Financiero HSBC, S.A. de C.V.
to HSBC Asia Holdings BV. Therefore, the balance sheet as at 31 March 2006 has
been restated to exclude HSBC Panama to compare on a like-for-like basis.
Grupo Financiero HSBC, S.A. de C.V. (HBMX)
Consolidated income statement on a like-for-like basis
Figures in MXN millions
Total Group Mexico^ Panama Total Group
Mar07 Mar06 Mar06 Mar06
Interest income 7,546 6,770 301 7,071
Interest expense (2,436) (2,352) (116) (2,468)
Monetary position (margin), net (348) (195) (2) (197)
Net interest income 4,762 4,223 183 4,406
Loan impairment charges (1,407) (626) (16) (642)
Risk adjusted net interest income 3,355 3,597 167 3,764
Fees and commissions receivable 2,708 2,383 75 2,458
Fees payable (275) (271) (13) (284)
Trading income 325 549 - 549
Total operating income 6,113 6,258 229 6,487
Administrative and personnel expenses (4,705) (4,377) (141) (4,518)
Net operating income 1,408 1,881 88 1,969
Other income 546 380 - 380
Other expenses (199) (210) - (210)
Net income before taxes 1,755 2,051 88 2,139
Income tax and employee profit sharing (582) (773) (28) (801)
Deferred taxes (17) (9) 1 (8)
Net income before subsidiaries 1,156 1,269 61 1,330
Undistributed income from subsidiaries 220 159 - 159
Income from ongoing operations 1,376 1,428 61 1,489
Net income 1,376 1,428 61 1,489
^ On 8 August 2006, HSBC Panama was sold by Grupo Financiero HSBC, S.A. de C.V.
to HSBC Asia Holdings BV. Therefore, results for the quarter ended 31 March
2006 have been restated to exclude results for HSBC Panama up until the date
of disposal in order to compare on a like-for-like basis.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
HSBC Holdings plc
By:
Name: P A Stafford
Title: Assistant Group Secretary
Date: 01 May 2007