Approach to Balance Sheet Reconciliation in accordance with the requirements issued by Hong Kong Monetary Authority on 19 August 2013.

Transcription

1 Approach to Balance Sheet Reconciliation in accordance with the requirements issued by Hong Kong Monetary Authority on 19 August 213 Step 1 Condensed Consolidated Statement Of Financial Position As At 3 June 215 HK$' As at 3 June 215 As at 3 June 215 Cash and short-term funds 18,399,357 18,374,679 Placements with banks maturing between one to twele months 8,923,63 8,923,63 Deriatie financial instruments 227, ,218 Financial assets at fair alue through profit or loss Aailable-for-sale securities 11,347,23 11,215,79 Held-to-maturity securities 11,51,161 11,2,662 Adances and other accounts 64,541,86 63,962,961 held for sale 141, ,954 Interests in associates 258,55 21,5 Inestment properties 247,22 247,22 Property and equipment 624,699 68,268 Prepaid lease payments for land 2,33 2,33 Deferred tax assets 5,771 5,771 Goodwill 5,66 - Total assets 115,821,18 114,751,227 Deposits and balances of banks 2,78,592 2,78,592 Financial assets sold under repurchase agreements 3,792,185 3,792,185 Deposits from customers 92,127,49 92,127,49 Certificates of deposit 1,648,579 1,648,579 Deriatie financial instruments 61,754 61,754 Other accounts and accruals 1,65,55 1,366,635 Current tax liabilities 14, ,73 Loan capital 1,812,399 1,812,399 Deferred tax liabilities 34,672 28,47 Total liabilities 14,525,346 14,216,87 Share capital 1,76,317 1,76,317 Additional equity instruments 2,312,3 2,312,3 Reseres 7,223,415 6,462,73 Total equity 11,295,762 1,534,42 Total liabilities and equity 115,821,18 114,751, Approach to Balance Sheet Reconciliation in accordance with the requirements issued by Hong Kong Monetary Authority on 19 August 213 Step 2 Condensed Consolidated Statement Of Financial Position As At 3 June 215 Cross reference to Definition of Capital Components HK$' As at 3 June 215 As at 3 June 215 Cash and short-term funds 18,399,357 18,374,679 Placements with banks maturing between one to twele months 8,923,63 8,923,63 Deriatie financial instruments 227, ,218 Financial assets at fair alue through profit or loss Aailable-for-sale securities 11,347,23 11,215,79 Held-to-maturity securities 11,51,161 11,2,662 Adances and other accounts 64,541,86 63,962,961 of which: Collectie impairment allowances reflected in regulatory capital -236,348 (1) Defined benefit pension fund net assets 21,726 (2) held for sale 141, ,954 Interests in associates 258,55 21,5 Inestment properties 247,22 247,22 Property and equipment 624,699 68,268 Prepaid lease payments for land 2,33 2,33 Deferred tax assets 5,771 5,771 (3) Goodwill 5,66 - Total assets 115,821,18 114,751,227 Deposits and balances of banks 2,78,592 2,78,592 Financial assets sold under repurchase agreements 3,792,185 3,792,185 Deposits from customers 92,127,49 92,127,49 Certificates of deposit 1,648,579 1,648,579 Deriatie financial instruments 61,754 61,754 Other accounts and accruals 1,65,55 1,366,635 Current tax liabilities 14, ,73 Loan capital 1,812,399 1,812,399 of which : Portion of subordinated notes eligible for inclusion in regulatory capital 1,214,536 (4) Deferred tax liabilities 34,672 28,47 of which : Deferred tax liabilities related to defined benefit pension fund 3,491 (5) Total liabilities 14,525,346 14,216,87 Share capital 1,76,317 1,76,317 (6) Additional equity instruments 2,312,3 2,312,3 (7) Reseres 7,223,415 6,462,73 of which : Retained earnings 4,16,911 (8) of which: Cumulatie gains on fair alue adjustments on inestment properties 184,82 (9) General reseres 1,388,5 (1) Inestment realuation resere 224,244 (11) Land and building realuation resere 146,647 (12) Regulatory resere 656, (13) Translation resere 29,771 (14) of which : Cumulatie aluation surplus on inestment properties credited to the resere 6,894 (15) Total equity 11,295,762 1,534,42 Total liabilities and equity 115,821,18 114,751,227

2 Approach to Balance Sheet Reconciliation in accordance with the requirements issued by Hong Kong Monetary Authority on 19 August 213 Step 3 As At 3 June 215 (1)+(11)+(12)+(13)+(14) (6) (8) HK$' Extract of Transition Capital Disclosures (with added column) Component of regulatory Amounts subject to pre-basel III Cross-referenced * to capital reported by bank treatment* CET1 capital: instruments and reseres 1 Directly issued qualifying CET1 capital instruments plus any related share premium 1,76,317 2 Retained earnings 4,16,911 3 Disclosed reseres 2,445,162 4 Directly issued capital subject to phase out from CET1 capital (only applicable to non-joint stock companies) (3) Public sector capital injections grandfathered until 1 January 218 Minority interests arising from CET1 capital instruments issued by consolidated bank subsidiaries and held by third parties 5 (amount allowed in CET1 capital of the group) 6 CET1 capital before regulatory deductions 8,222,39 CET1 capital: regulatory deductions (2)-(5) 7 Valuation adjustments 8 Goodwill (net of associated deferred tax liability) 9 Other intangible assets (net of associated deferred tax liability) 1 Deferred tax assets net of deferred tax liabilities 5, Cash flow hedge resere 12 Excess of total EL amount oer total eligible proisions under the IRB approach 13 Gain-on-sale arising from securitization transactions 14 Gains and losses due to changes in own credit risk on fair alued liabilities 15 Defined benefit pension fund net assets (net of associated deferred tax liabilities) 18, Inestments in own CET1 capital instruments (if not already netted off paid-in capital on reported balance sheet) 17 Reciprocal cross-holdings in CET1 capital instruments Insignificant capital inestments in CET1 capital instruments issued by financial sector entities that are outside the scope of 18 (amount aboe 1% threshold) Significant capital inestments in CET1 capital instruments issued by financial sector entities that are outside the scope of 19 (amount aboe 1% threshold) (9)+(12)+(15) 2 Mortgage sericing rights (amount aboe 1% threshold) (13) 21 Deferred tax assets arising from temporary differences (amount aboe 1% threshold, net of related tax liability) 22 Amount exceeding the 15% threshold 23 of which: significant inestments in the common stock of financial sector entities 24 of which: mortgage sericing rights 25 of which: deferred tax assets arising from temporary differences 26 National specific regulatory adjustments applied to CET1 capital 993,623 26a Cumulatie fair alue gains arising from the realuation of land and buildings (own-use and inestment properties) 337,623 26b Regulatory resere for general banking risks 656, 26c Securitization exposures specified in a notice gien by the Monetary Authority 26d Cumulatie losses below depreciated cost arising from the institution's holdings of land and buildings 26e Capital shortfall of regulated non-bank subsidiaries (7) Capital inestment in a connected company which is a commercial entity (amount aboe 15% of the reporting institution's 26f capital base) 27 Regulatory deductions applied to CET1 capital due to insufficient AT1 capital and Tier 2 capital to coer deductions 28 Total regulatory deductions to CET1 capital 1,17, CET1 capital 7,24,761 AT1 capital: instruments 3 Qualifying AT1 capital instruments plus any related share premium 2,312,3 31 of which: classified as equity under applicable accounting standards 2,312,3 32 of which: classified as liabilities under applicable accounting standards 33 Capital instruments subject to phase out arrangements from AT1 capital AT1 capital instruments issued by consolidated bank subsidiaries and held by third parties (amount allowed in AT1 capital of 34 the group) 35 of which: AT1 capital instruments issued by subsidiaries subject to phase out arrangements 36 AT1 capital before regulatory deductions 2,312,3 AT1 capital: regulatory deductions 37 Inestments in own AT1 capital instruments 38 Reciprocal cross-holdings in AT1 capital instruments Insignificant capital inestments in AT1 capital instruments issued by financial sector entities that are outside the scope of 39 (amount aboe 1% threshold) Significant capital inestments in AT1 capital instruments issued by financial sector entities that are outside the scope of 4 41 National specific regulatory adjustments applied to AT1 capital Portion of deductions applied 5:5 to core capital and supplementary capital based on pre-basel III treatment which, during 41a transitional period, remain subject to deduction from Tier 1 capital i of which: Excess of total EL amount oer total eligible proisions under the IRB approach ii of which: Capital shortfall of regulated non-bank subsidiaries iii of which: Inestments in own CET1 capital instruments i of which: Reciprocal cross holdings in CET1 capital instruments issued by financial sector entities of which: Capital inestment in a connected company which is a commercial entity (amount aboe 15% of the reporting of which: Insignificant capital inestments in CET1 capital instruments, AT1 capital instruments and Tier 2 capital instruments i of which: Significant capital inestments in CET1 capital instruments, AT1 capital instruments and Tier 2 capital instruments ii 42 Regulatory deductions applied to AT1 capital due to insufficient Tier 2 capital to coer deductions 43 Total regulatory deductions to AT1 capital 44 AT1 capital 2,312,3 45 Tier 1 capital (Tier 1 = CET1 + AT1) 9,516,791 Tier 2 capital: instruments and proisions 46 Qualifying Tier 2 capital instruments plus any related share premium 47 Capital instruments subject to phase out arrangements from Tier 2 capital 1,214, Tier 2 capital instruments issued by consolidated bank subsidiaries and held by third parties (amount allowed in Tier 2 capital of the group) 49 of which: capital instruments issued by subsidiaries subject to phase out arrangements 5 Collectie impairment allowances and regulatory resere for general banking risks eligible for inclusion in Tier 2 capital 892,348 -(1)+(13) (4) 51 Tier 2 capital before regulatory deductions 2,16,884

3 Approach to Balance Sheet Reconciliation in accordance with the requirements issued by Hong Kong Monetary Authority on 19 August 213 Step 3 As At 3 June 215 Extract of Transition Capital Disclosures (with added column) Component of regulatory capital reported by bank Amounts subject to pre-basel III treatment* - Tier 2 capital: regulatory deductions 52 Inestments in own Tier 2 capital instruments 53 Reciprocal cross-holdings in Tier 2 capital instruments Insignificant capital inestments in Tier 2 capital instruments issued by financial sector entities that are outside the scope of 54 (amount aboe 1% threshold) Significant capital inestments in Tier 2 capital instruments issued by financial sector entities that are outside the scope of National specific regulatory adjustments applied to Tier 2 capital -151,93 Add back of cumulatie fair alue gains arising from the realuation of land and buildings (own-use and inestment 56a properties) eligible for inclusion in Tier 2 capital -151,93 Portion of deductions applied 5:5 to core capital and supplementary capital based on pre-basel III treatment which, during 56b transitional period, remain subject to deduction from Tier 2 capital i of which: Excess of total EL amount oer total eligible proisions under the IRB approach ii of which: Capital shortfall of regulated non-bank subsidiaries iii of which: Inestments in own CET1 capital instruments i of which: Reciprocal cross holdings in CET1 capital instruments issued by financial sector entities of which: Capital inestment in a connected company which is a commercial entity (amount aboe 15% of the reporting of which: Insignificant capital inestments in CET1 capital instruments, AT1 capital instruments and Tier 2 capital instruments CET1: AT1: Abbreiations: of which: Significant capital inestments in CET1 capital instruments, AT1 capital instruments and Tier 2 capital instruments ii 57 Total regulatory deductions to Tier 2 capital -151,93 Footnote: Common Equity Tier 1 58 Tier 2 capital 2,258,814 * Cross-referenced Additional Tier 1 59 Total capital to Consolidated (Total capital Balance = Tier Sheet 1 + in Tier Step 2) 2 11,775,65 HK$' Cross-referenced * to [(9)+(12)+(15)] x 45%

4 Approach to Balance Sheet Reconciliation in accordance with the requirements issued by Hong Kong Monetary Authority on 19 August 213 Step 1 Condensed Consolidated Statement Of Financial Position As At 31 December 214 HK$' As at 31 December 214 As at 31 December 214 Cash and short-term funds 26,32,182 26,7,573 Placements with banks and other financial institutions maturing between one to twele months 5,568,433 5,568,433 Deriatie financial instruments 142, ,162 Financial assets at fair alue through profit or loss Aailable-for-sale securities 7,874,92 7,749,318 Held-to-maturity securities 8,663,136 8,632,513 Adances and other accounts 58,584,67 58,43,692 Tax recoerable - - held for sale 1,718 1,718 Interests in associates 222,39 21,5 Inestment properties 288, ,413 Property and equipment 69, ,38 Prepaid lease payments for land 2,336 2,336 Deferred tax assets 4,697 4,697 Goodwill 5,66 - Total assets 18,45,762 17,415,663 Deposits and balances of banks and other financial institutions 4,413,861 4,413,861 Financial assets sold under repurchase agreements 4,948,764 4,948,764 Deposits from customers 82,133,391 82,133,391 Certificates of deposit 2,18,136 2,18,136 Deriatie financial instruments 415, ,122 Other accounts and accruals 1,36,613 1,384,528 Current tax liabilities 43,19 4,955 Loan capital 1,815,563 1,815,563 Deferred tax liabilities 23,551 17,165 Total liabilities 97,262,11 97,277,485 Share capital 1,76,317 1,76,317 Additional equity instruments 2,312,3 2,312,3 Reseres 6,711,35 6,65,831 Total equity 1,783,652 1,138,178 Total liabilities and equity 18,45,762 17,415, Approach to Balance Sheet Reconciliation in accordance with the requirements issued by Hong Kong Monetary Authority on 19 August 213 Step 2 Condensed Consolidated Statement Of Financial Position As At 31 December 214 Cross reference to Definition of Capital Components HK$' As at 31 December 214 As at 31 December 214 Cash and short-term funds 26,32,182 26,7,573 Placements with banks and other financial institutions maturing between one to twele months 5,568,433 5,568,433 Deriatie financial instruments 142, ,162 Financial assets at fair alue through profit or loss Aailable-for-sale securities 7,874,92 7,749,318 Held-to-maturity securities 8,663,136 8,632,513 Adances and other accounts 58,584,67 58,43,692 of which: Collectie impairment allowances reflected in regulatory capital -238,986 (1) Defined benefit pension fund net assets 21,726 (2) Tax recoerable - - held for sale 1,718 1,718 Interests in associates 222,39 21,5 Inestment properties 288, ,413 Property and equipment 69, ,38 Prepaid lease payments for land 2,336 2,336 Deferred tax assets 4,697 4,697 (3) Goodwill 5,66 - Total assets 18,45,762 17,415,663 Deposits and balances of banks and other financial institutions 4,413,861 4,413,861 Financial assets sold under repurchase agreements 4,948,764 4,948,764 Deposits from customers 82,133,391 82,133,391 Certificates of deposit 2,18,136 2,18,136 Deriatie financial instruments 415, ,122 Other accounts and accruals 1,36,613 1,384,528 Current tax liabilities 43,19 4,955 Loan capital 1,815,563 1,815,563 of which : Portion of subordinated notes eligible for inclusion in regulatory capital 1,388,17 (4) Deferred tax liabilities 23,551 17,165 of which : Deferred tax liabilities related to defined benefit pension fund 3,491 (5) Total liabilities 97,262,11 97,277,485 Share capital 1,76,317 1,76,317 (6) Additional equity instruments 2,312,3 2,312,3 (7) Reseres 6,711,35 6,65,831 of which : Retained earnings 3,74,945 (8) of which: Cumulatie gains on fair alue adjustments on inestment properties 83,312 (9) General reseres 1,388,5 (1) Inestment realuation resere 186,384 (11) Land and building realuation resere 146,647 (12) Regulatory resere 573, (13) Translation resere 3,355 (14) of which : Cumulatie aluation surplus on inestment properties credited to the resere 6,921 (15) Total equity 1,783,652 1,138,178 Total liabilities and equity 18,45,762 17,415,663

5 Approach to Balance Sheet Reconciliation in accordance with the requirements issued by Hong Kong Monetary Authority on 19 August 213 Step 3 As At 31 December 214 (1)+(11)+(12)+(13)+(14) (6) (8) HK$' Extract of Transition Capital Disclosures (with added column) Component of regulatory Amounts subject to pre-basel III Cross-referenced * to capital reported by bank treatment* CET1 capital: instruments and reseres 1 Directly issued qualifying CET1 capital instruments plus any related share premium 1,76,317 2 Retained earnings 3,74,945 3 Disclosed reseres 2,324,886 4 Directly issued capital subject to phase out from CET1 capital (only applicable to non-joint stock companies) (3) Public sector capital injections grandfathered until 1 January 218 Minority interests arising from CET1 capital instruments issued by consolidated bank subsidiaries and held by third parties 5 (amount allowed in CET1 capital of the group) 6 CET1 capital before regulatory deductions 7,826,148 CET1 capital: regulatory deductions 7 Valuation adjustments (2)-(5) 8 Goodwill (net of associated deferred tax liability) 9 Other intangible assets (net of associated deferred tax liability) 1 Deferred tax assets net of deferred tax liabilities 4, Cash flow hedge resere 12 Excess of total EL amount oer total eligible proisions under the IRB approach 13 Gain-on-sale arising from securitization transactions 14 Gains and losses due to changes in own credit risk on fair alued liabilities 15 Defined benefit pension fund net assets (net of associated deferred tax liabilities) 18, Inestments in own CET1 capital instruments (if not already netted off paid-in capital on reported balance sheet) 17 Reciprocal cross-holdings in CET1 capital instruments Insignificant capital inestments in CET1 capital instruments issued by financial sector entities that are outside the scope of 18 (amount aboe 1% threshold) Significant capital inestments in CET1 capital instruments issued by financial sector entities that are outside the scope of 19 (amount aboe 1% threshold) 2 Mortgage sericing rights (amount aboe 1% threshold) 21 Deferred tax assets arising from temporary differences (amount aboe 1% threshold, net of related tax liability) 22 Amount exceeding the 15% threshold 23 of which: significant inestments in the common stock of financial sector entities 24 of which: mortgage sericing rights 25 of which: deferred tax assets arising from temporary differences 26 National specific regulatory adjustments applied to CET1 capital 89,88 26a Cumulatie fair alue gains arising from the realuation of land and buildings (own-use and inestment properties) 236,88 26b Regulatory resere for general banking risks 573, (9)+(12)+(15) (13) 26c Securitization exposures specified in a notice gien by the Monetary Authority 26d Cumulatie losses below depreciated cost arising from the institution's holdings of land and buildings 26e Capital shortfall of regulated non-bank subsidiaries Capital inestment in a connected company which is a commercial entity (amount aboe 15% of the reporting institution's 26f capital base) 27 Regulatory deductions applied to CET1 capital due to insufficient AT1 capital and Tier 2 capital to coer deductions 28 Total regulatory deductions to CET1 capital 832, CET1 capital 6,993,336 AT1 capital: instruments 3 Qualifying AT1 capital instruments plus any related share premium 2,312,3 31 of which: classified as equity under applicable accounting standards 2,312,3 (7) 32 of which: classified as liabilities under applicable accounting standards 33 Capital instruments subject to phase out arrangements from AT1 capital AT1 capital instruments issued by consolidated bank subsidiaries and held by third parties (amount allowed in AT1 capital 34 of the group) 35 of which: AT1 capital instruments issued by subsidiaries subject to phase out arrangements 36 AT1 capital before regulatory deductions 2,312,3 AT1 capital: regulatory deductions 37 Inestments in own AT1 capital instruments 38 Reciprocal cross-holdings in AT1 capital instruments Insignificant capital inestments in AT1 capital instruments issued by financial sector entities that are outside the scope of 39 (amount aboe 1% threshold) Significant capital inestments in AT1 capital instruments issued by financial sector entities that are outside the scope of 4 41 National specific regulatory adjustments applied to AT1 capital Portion of deductions applied 5:5 to core capital and supplementary capital based on pre-basel III treatment which, 41a during transitional period, remain subject to deduction from Tier 1 capital i of which: Excess of total EL amount oer total eligible proisions under the IRB approach ii of which: Capital shortfall of regulated non-bank subsidiaries iii of which: Inestments in own CET1 capital instruments i of which: Reciprocal cross holdings in CET1 capital instruments issued by financial sector entities of which: Capital inestment in a connected company which is a commercial entity (amount aboe 15% of the reporting of which: Insignificant capital inestments in CET1 capital instruments, AT1 capital instruments and Tier 2 capital i instruments of which: Significant capital inestments in CET1 capital instruments, AT1 capital instruments and Tier 2 capital instruments ii 42 Regulatory deductions applied to AT1 capital due to insufficient Tier 2 capital to coer deductions 43 Total regulatory deductions to AT1 capital 44 AT1 capital 2,312,3 45 Tier 1 capital (Tier 1 = CET1 + AT1) 9,35,366 Tier 2 capital: instruments and proisions 46 Qualifying Tier 2 capital instruments plus any related share premium 47 Capital instruments subject to phase out arrangements from Tier 2 capital 1,388,17 48 Tier 2 capital instruments issued by consolidated bank subsidiaries and held by third parties (amount allowed in Tier 2 capital of the group) 49 of which: capital instruments issued by subsidiaries subject to phase out arrangements 5 Collectie impairment allowances and regulatory resere for general banking risks eligible for inclusion in Tier 2 capital 811,986 -(1)+(13) (4) 51 Tier 2 capital before regulatory deductions 2,2,156

6 Step 3 - As At 31 December 214 Tier 2 capital: regulatory deductions 52 Inestments in own Tier 2 capital instruments 53 Reciprocal cross-holdings in Tier 2 capital instruments Insignificant capital inestments in Tier 2 capital instruments issued by financial sector entities that are outside the scope of 54 (amount aboe 1% threshold) Significant capital inestments in Tier 2 capital instruments issued by financial sector entities that are outside the scope of National specific regulatory adjustments applied to Tier 2 capital -16,596 Add back of cumulatie fair alue gains arising from the realuation of land and buildings (own-use and inestment 56a properties) eligible for inclusion in Tier 2 capital -16,596 Portion of deductions applied 5:5 to core capital and supplementary capital based on pre-basel III treatment which, 56b during transitional period, remain subject to deduction from Tier 2 capital i of which: Excess of total EL amount oer total eligible proisions under the IRB approach ii of which: Capital shortfall of regulated non-bank subsidiaries iii of which: Inestments in own CET1 capital instruments i of which: Reciprocal cross holdings in CET1 capital instruments issued by financial sector entities of which: Capital inestment in a connected company which is a commercial entity (amount aboe 15% of the reporting of which: Insignificant capital inestments in CET1 capital instruments, AT1 capital instruments and Tier 2 capital instruments CET1: of which: Significant capital inestments in CET1 capital instruments, AT1 capital instruments and Tier 2 capital instruments AT1: Abbreiations: ii 57 Total regulatory deductions to Tier 2 capital -16, Tier 2 capital 2,36,752 Footnote: Additional Common Tier Equity 1Tier 1 59 Total capital (Total capital = Tier 1 + Tier 2) 11,612,118 * Cross-referenced to Consolidated Balance Sheet in Step 2 [(9)+(12)+(15)] x 45%