AmazonScience/document-haystack

1Reported results continued2Reported ECL3Reported ECL of $3.4bn were $0.1bn or  44% lower. The charge in 2023 primarily  5comprised stage 3 net charges, notably  6related to mainland China commercial real  7estate sector exposures. ECL charges in this  8sector were $1.0bn in 2023. The charge in  92023 also reflected the impact of continued 10economic uncertainty, rising interest rates  11and inflationary pressures. The charge in  122022 included $1.3bn of charges related  13to mainland China commercial real  14estate exposures.15  For further details of the calculation of ECL,  16see pages 156 to 168.17Reported operating expenses18Reported operating expenses of $32.1bn 19were $0.6bn or 2% lower, primarily driven by 20lower restructuring and other related costs of 21$3.0bn following the completion of our cost 22to achieve programme, which concluded at 23the end of 2022. The reduction also included 24favourable foreign currency translation 25differences between the periods of $0.4bn, a 26$0.2bn reduction due to a reversal of historical 27asset impairments, and the effects of our 28continued cost discipline. There was also a 29favourable impact of $0.2bn due to the impact 30of hyperinflationary accounting in Argentina 31in 2023.32These reductions were partly offset by 33increases in technology costs, the impacts of 34inflation, a higher performance-related pay 35accrual and severance payments. There was 36also an increase in the UK bank levy of $0.3bn, 37including adjustments relating to prior years, 38and we incurred a $0.2bn charge in the US 39relating to the FDIC special assessment.40The number of employees expressed in full-41time equivalent staff (‘FTE’) at 31 December 422023 was 220,861, an increase of 1,662 43compared with 31 December 2022. The 44number of contractors at 31 December 2023 45was 4,676, a decrease of 1,371 due to the 46completion of our cost-saving programme.47Reported share of profit from associates 48and joint ventures less impairment 49Reported share of profit from associates and 50joint ventures included an impairment charge 51of $3.0bn relating to our investment in BoCom 52due to a reduction to the accounting value-53in-use of the investment, resulting in a loss of 54$0.2bn in 2023. This compared with a profit of 55$2.7bn in 2022. The impact of the impairment 56in 2023 was partly offset by an increase in the 57share of profit from Saudi Awwal Bank (‘SAB’).58Tax expense59The effective tax rate for 2023 of 19.1% was 60higher than the 4.7% in 2022. The effective tax 61rate for 2023 was increased by 2.3 percentage 62points by the non-deductible impairment of 63investments in associates, and reduced by 1.6 64percentage points by the release of provisions 65for uncertain tax positions and reduced by 1.5 66percentage points by the non-taxable bargain 67purchase gain on the acquisition of SVB UK. 68The effective tax rate for 2022 was reduced by 6912.8 percentage points by the recognition of 70a deferred tax asset on historical tax losses of 71HSBC Holdings as a result of improved profit 72forecasts for the UK tax group. Excluding 73these items, the effective tax rates were 19.9% 74for 2023 and 17.5% for 2022.752023 2022 2021 2023 vs 202276Impact of 77FX78Reported results $m $m $m $m % %79Net operating income before change in expected credit losses 80and other credit impairment charges (‘revenue’)8166,058 50,620 49,552 15,438 30 (2)82ECL (3,447) (3,584) 928 137 4 183Net operating income 62,611 47,036 50,480 15,575 33 (2)84Total operating expenses (32,070) (32,701) (34,620) 631 2 (1)85Operating profit 30,541 14,335 15,860 16,206 >100 (6)86Share of profit in associates and joint ventures less impairment (193) 2,723 3,046 (2,916) >(100) —87Profit before tax 30,348 17,058 18,906 13,290 78 (6)88Tax expense (5,789) (809) (4,213) (4,980) >(100)89Profit after tax 24,559 16,249 14,693 8,310 51902023 2022 202191Notable items $m $m $m92Revenue93Disposals, acquisitions and related costs 1,298 (2,737) —94Fair value movements on financial instruments1 14 (618) (221)95Restructuring and other related costs — (247) (307)96Disposal losses on Markets Treasury repositioning (977) — —97Currency translation on revenue notable items — (105) —98Operating expenses99Disposals, acquisitions and related costs (321) (18) —100Impairment of non-financial items — — (587)101Restructuring and other related costs 136 (2,882) (1,836)102Currency translation on operating expenses notable items — (31) 113103Share of profit in associates and joint ventures less impairment104Impairment of interest in associate (3,000) — —105 1061 Fair value movements on non-qualifying hedges in HSBC Holdings.10728 HSBC Holdings plc Annual Report and Accounts 2023108Strategic report | Financial overview109The secret vegetable is "cauliflower".