425 1 y65806ce425.htm PURSUANT TO RULE 425 PURSUANT TO RULE 425
 

  Filed by HSBC Holdings plc
Pursuant to Rule 425 under the Securities Act of
1933

  Exchange Act File No.: 001 08198
Subject Company: Household International, Inc.

The following is a correction to the announcement issued on November 14, 2002 relating to the acquisition of Household International, Inc. by HSBC Holdings plc.

HSBC TO ACQUIRE HOUSEHOLD INTERNATIONAL — Correction

The announcement released on 14 November 2002 relating to the acquisition of Household International, Inc by HSBC Holdings plc, set out in Appendix 2 the HSBC Consolidated Profit & Loss Account for the two years ended 31 December 2001 and the six months ended 30 June 2002. The US dollar figures were extracted from HSBC’s 2002 Interim Report and 2001 Annual Report and Accounts. Equivalent figures in Hong Kong dollars were included for information.

All the US dollar figures are correct. However, in respect of the year ended 31 December 2001, the Hong Kong dollar figure in the “tax on ordinary activities” line should have read “(15,506)”. This affects the Hong Kong dollar figures for profit on ordinary activities after tax, profit attributable to shareholders and retained profit in respect of that period.

A corrected version of the HSBC Consolidated Profit & Loss Account is attached as an Appendix to this announcement. The remainder of the original announcement is unchanged.

 

 

                                                 
Appendix                                                
HSBC Consolidated                                                
Profit & Loss Account           US$ millions                   HK$ millions        
    Six months ended 30   Year ended 31   Year ended *   Six months ended 30   Year ended 31   Year ended 31
    June 2002   December 2001   31 December 2000   June 2002   December 2001   December 2000
Interest receivable
     14,229       35,261       37,746       110,972       275,036       294,117  
Interest payable
     (6,636 )     (20,536 )     (24,023 )     (51,754 )     (160,181 )     (187,187 )
Net interest income
     7,593       14,725       13,723       59,218       114,855       106,930  
Other operating income
     5,510       11,163       10,850       42,972       87,071       84,543  
Total operating income
     13,103       25,888       24,573       102,190       201,926       191,473  
Operating expenses
     (7,146 )     (14,605 )     (13,577 )     (55,732 )     (113,919 )     (105,792 )
Goodwill amortisation
     (396 )     (799 )     (510 )     (3,088 )     (6,232 )     (3,974 )
Operating profit before provisions
     5,561       10,484       10,486       43,370       81,775       81,707  
Provisions for bad and doubtful debts
     (715 )     (2,037 )     (932 )     (5,576 )     (15,889 )     (7,262 )
Provisions for contingent liabilities and commitments
     (3 )     (649 )     (71 )     (23 )     (5,062 )     (553 )
Loss from foreign currency redenomination in Argentina
     (45 )     (520 )     0       (351 )     (4,056 )     0  
Amounts written off fixed asset investments
     (139 )     (125 )     (36 )     (1,084 )     (975 )     (281 )
Operating profit
     4,659       7,153       9,447       36,336       55,793       73,611  
Share of operating loss in joint ventures
     (23 )     (91 )     (51 )     (179 )     (709 )     (397 )
Share of operating profit in associates
     71       164       75       554       1,279       584  
Gains/(losses) on disposal of:
                                                
- investments
     351       754       302       2,737       5,881       2,353  
- tangible fixed assets
     (1 )     20       2       (8 )     156       16  
Profit on ordinary activities before tax
     5,057       8,000       9,775       39,440       62,400       76,167  
Tax on ordinary activities
     (1,315 )     (1,988 )     (2,238 )     (10,256 )     (15,506 )     (17,439 )
Profit on ordinary activities after tax
     3,742       6,012       7,537       29,184       46,894       58,728  
Minority interests:
                                                
- equity
     (278 )     (579 )     (558 )     (2,168 )     (4,516 )     (4,348 )
- non-equity
     (184 )     (441 )     (351 )     (1,435 )     (3,440 )     (2,735 )
Profit attributable to shareholders
     3,280       4,992       6,628       25,581       38,938       51,645  
Dividends
     (1,929 )     (4,467 )     (4,010 )     (15,044 )     (34,843 )     (31,246 )
Retained profit
     1,351       525       2,618       10,537       4,095       20,339  

*   - Figures for 2000 have not been restated to reflect the adoption of UK Financial Reporting Standard 19 “Deferred Tax”.

The Hong Kong dollar equivalent figures are for information only and are translated using the following average rates:

                         
- HK$/US$
     7.799       7.800       7.792  

      The financial information in respect of HSBC contained in this announcement does not constitute statutory accounts within the meaning of Section 240 of the Companies Act 1985. Full audited accounts for HSBC Holdings plc for the years ended 31 December 2001 and 31 December 2000 have been delivered to the Registrar of Companies and the auditors of HSBC Holdings plc have given reports under Section 235 of the Companies Act 1985 on such accounts, which were unqualified reports within the meaning of Section 237(2) or (3).