HSBC 2001 Annual Report Download - page 51

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49
Europe
Cash basis profit before tax
Year ended 31 December
Figures in US$m 2001 2000 1999
UK banking.......................... 2,394 2,205 2,123
France................................... 587 176
International banking............ 278 426 401
Treasury and capital markets 487 305 265
HSBC Private Banking
Holdings (Suisse) SA....... 211 290
HSBC Trinkaus &
Burkhard
t
......................... 133 133 155
Other* .................................. 92 486 387
4,182 4,021 3,331
* Other primarily relates to other operating subsidiaries and the
holding company sub-group.
Year ended 31 December
Figures in US$m 2001 2000 1999
Net interest income........ 5,563 4,988 4,231
Dividend income ........... 116 84 93
Net fees and commissions
................................. 4,210 4,100 3,424
Dealing profits............... 708 787 543
Other income................. 1,022 951 876
Other operating income . 6,056 5,922 4,936
Total operating income 11,619 10,910 9,167
Staff costs...................... (4,227 ) (3,862) (3,220 )
Premises and equipment (786) (651) (545 )
Other ............................. (1,619) (1,374 ) (1,122)
Depreciation.................. (656 ) (631 ) (558)
(7,288) (6,518 ) (5,445)
Goodwill amortisation ... (632 ) (348 ) (9)
Operating expenses........ (7,920) (6,866) (5,454 )
Operating profit before
provisions ................ 3,699 4,044 3,713
Provisions for bad and
doubtful debts ........... (441) (348) (438 )
Provisions for contingent
liabilities and
commitments ............ (30 ) (67 ) (114)
Amounts written off fixed
asset investments ...... (90) (23) (20 )
Operating profit........... 3,138 3,606 3,141
Share of operating (loss)
in joint ventures (79 ) (51 )
Share of operating profits/
(losses) in associates. 42 (45) (1 )
Gains on disposal of
investments and tangible
fixed assets ............... 441 148 182
Profit on ordinary
activities before tax* 3,542 3,658 3,322
* of which United Kingdom 3,147 3,127 2,707
Year ended 31 December
2001 2000 1999
Share of HSBC’ s pre-tax
profits (cash basis)
(per cent) .......................... 47.5 39.0 41.5
Share of HSBC’ s pre-tax
p
rofits (per cent)............... 44.3 37.4 41.6
Cost:income ratio
(excluding goodwill
amortisation) (per cent) .... 62.7 59.7 59.4
Period-end staff numbers
(full-time equivalent )....... 73,326 69,629 53,861
Bad and doubtful debts
Year ended 31 December
Figures in US$m 2001 2000 1999
Loans and advances to
customers
– specific charge
new provisions ...................... 802 607 764
releases and recoveries.......... (325 ) (304) (343)
477 303 421
general (release)/charge...... (36) 43 19
Customer bad and doubtful
debt charge....................... 441 346 440
Loans and advances to
banks
– net specific
(release)/charge ................ 2(2)
Total bad and doubtful
debt charge......................... 441 348 438
Customer bad debt charge as
a percentage of closing
gross loans and advances . 0.32% 0.3% 0.4%
Figures in US$m
At 31
December
2001
At 31
Decembe
r
2000
Assets
Loans and advances to customers (net) 133,380 129,143
Loans and advances to banks (net) ........ 40,641 45,040
Debt securities, treasury bills and other
eligible bills...................................... 66,255 63,280
Total assets ........................................... 297,701 295,274
Liabilities
Deposits by banks ................................. 36,908 43,888
Customer accounts ................................ 169,371 159,505
Year ended 31 December 2001 compared with
year ended 31 December 2000
Economic activity in Europe slowed with industrial
production contracting in all major economies and
job cuts affected consumer spending to varying
degrees in most countries in the Eurozone. There are
increasing signs that the fourth quarter of 2001
marked the low point in the Eurozone’ s economic
cycle and there is expected to be a gradual recovery