AmazonScience/document-haystack

1Key financial metrics2For the year ended3Reported results 2023 20221 20214Profit before tax ($m) 30,348 17,058 18,9065Profit after tax ($m) 24,559 16,249 14,6936Cost efficiency ratio (%) 48.5 64.6 69.97Net interest margin (%) 1.66 1.42 1.208Basic earnings per share ($) 1.15 0.72 0.629Diluted earnings per share ($) 1.14 0.72 0.6210Dividend per ordinary share (in respect of the period) ($) 0.61 0.32 0.2511Dividend payout ratio (%)2 50 44 4012Alternative performance measures13Constant currency profit before tax ($m) 30,348 16,541 17,40014Constant currency cost efficiency ratio (%) 48.5 64.8 70.015Expected credit losses and other credit impairment charges (‘ECL’) as % of average 16gross loans and advances to customers (%)170.36 0.36 (0.07)18Expected credit losses and other credit impairment charges (‘ECL’) as % of average 19gross loans and advances to customers, including held for sale (%)200.33 0.35 (0.07)21Basic earnings per share excluding material notable items and related impacts ($) 1.22 N/A N/A22Return on average ordinary shareholders’ equity (%) 13.6 9.0 7.123Return on average tangible equity (%) 14.6 10.0 8.324Return on average tangible equity excluding strategic transactions and impairment of BoCom (%) 15.6 11.3 N/A25Target basis operating expenses ($m) 31,614 29,811 N/A26At 31 December27Balance sheet 2023 20221 202128Total assets ($m) 3,038,677 2,949,286 2,957,93929Net loans and advances to customers ($m) 938,535 923,561 1,045,81430Customer accounts ($m) 1,611,647 1,570,303 1,710,57431Average interest-earning assets ($m) 2,161,746 2,143,758 2,209,51332Loans and advances to customers as % of customer accounts (%) 58.2 58.8 61.133Total shareholders’ equity ($m) 185,329 177,833 198,25034Tangible ordinary shareholders’ equity ($m) 155,710 146,927 158,19335Net asset value per ordinary share at period end ($) 8.82 8.01 8.7636Tangible net asset value per ordinary share at period end ($) 8.19 7.44 7.8837Capital, leverage and liquidity38Common equity tier 1 capital ratio (%)3 14.8 14.2 15.839Risk-weighted assets ($m)3,4 854,114 839,720 838,26340Total capital ratio (%)3,4 20.0 19.3 21.241Leverage ratio (%)3,4 5.6 5.8 5.242High-quality liquid assets (liquidity value) ($m)4,5 647,505 647,046 688,20943Liquidity coverage ratio (%)4,5 136 132 13944Net stable funding ratio (%)4,5 133 136 N/A45Share count46Period end basic number of $0.50 ordinary shares outstanding (millions) 19,006 19,739 20,07347Period end basic number of $0.50 ordinary shares outstanding and dilutive potential 48ordinary shares (millions)4919,135 19,876 20,18950Average basic number of $0.50 ordinary shares outstanding (millions) 19,478 19,849 20,19751For reconciliation and analysis of our reported results on a constant currency basis, including lists of notable items, see page 111. Definitions and calculations of other 52alternative performance measures are included in ‘Reconciliation of alternative performance measures’ on page 130.531  Fr54om 1 January 2023, we adopted IFRS 17 ‘Insurance Contracts’, which replaced IFRS 4 ‘Insurance Contracts’. Comparative data for the financial year ended 31 55December 2022 have been restated accordingly. Comparative data for the year ended 31 December 2021 are prepared on an IFRS 4 basis.562  In 257023, our dividend payout ratio was adjusted for material notable items and related impacts, including all associated income statement impacts relating to those 58items. In 2022, our dividend payout ratio was adjusted for the loss on classification to held for sale of our retail banking business in France, items relating to the planned 59sale of our banking business in Canada, and the recognition of certain deferred tax assets. No items were adjusted for in 2021.603  Un61less otherwise stated, regulatory capital ratios and requirements are based on the transitional arrangements of the Capital Requirements Regulation in force at the 62time. References to EU regulations and directives (including technical standards) should, as applicable, be read as references to the UK‘s version of such regulation or 63directive, as onshored into UK law under the European Union (Withdrawal) Act 2018, and as may be subsequently amended under UK law.644  Re65gulatory numbers and ratios are as presented at the date of reporting. Small changes may exist between these numbers and ratios and those submitted in 66regulatory filings. Where differences are significant, we may restate in subsequent periods.675  Th68e liquidity coverage ratio is based on the average value of the preceding 12 months. The net stable funding ratio is based on the average value of four preceding quarters. 6926 HSBC Holdings plc Annual Report and Accounts 202370Strategic report | Financial overview