HSBC 2002 Annual Report Download - page 56

HSBC HOLDINGS PLC
Financial Review (continued)
54
Analysis by geographical segment
Profit on ordinary activities before tax by
segment
Year ended 31 December
2002 2001 2000
US$m % US$
m
%US$
m
%
Europe .................. 3,500 36.3 3,542 44.3 3,658 37.4
Hong Kong ........... 3,710 38.4 3,883 48.5 3,691 37.8
Rest of Asia-
Pacific .............. 1,260 13.1 1,088 13.6 1,265 12.9
North America ...... 1,238 12.8 503 6.3 860 8.8
of which
Princeton.......... ––(575)(7.2 )
–
–
South America ...... (58
)
(0.6
)
(1,016) (12.7 ) 301 3.1
of which
Argentina
p
rovisions......... ––(1,120) (14.0 )
–
–
Total 9,650 100.0 8,000 100.0 9,775 100.0
Total assets by segment
31 December
2002
31 December
2001†
Total assets* US$m % US$
m
%
Europe .................................. 342,118 45.7 297,674 43.2
Hong Kong ........................... 180,525 24.1 175,744 25.6
Rest of Asia-
Pacific............................... 76,635 10.2 62,355 9.1
North America ...................... 142,032 18.9 138,738 20.2
South America ...................... 8,491 1.1 13,097 1.9
Total 749,801 100.0 687,608 100.0
*Excluding Hong Kong SAR Government certificates of
indebtedness.
†The figures for 2001 have been restated to reflect the adoption of
UK Financial Reporting Standard 19 ‘Deferred Tax’, details of
which are set out in Note 1 on pages 195 to 197.
The results of operations by lines of business are
included in the following segmental disclosures in
the appropriate geographical segment. A separate
commentary is provided on the aggregate results of
each line of business on pages 81 to 96. The cash
basis measures set out in this section are derived by
deducting goodwill amortisation from the equivalent
reported measure.
In the analysis of profit by geographical segment
which follows, the total of operating income and
operating expenses includes intra-HSBC items of
US$326 million in 2002, US$257 million in 2001
and US$217 million in 2000.
Following the acquisition of GFBital, HSBC is better
able to facilitate business among member countries
of the North American Free Trade Agreement
(“NAFTA”) and internationally. Hence, the
geographical analysis has been realigned to reflect
this fact by reclassifying Mexico and Panama to
North America, from South America (formerly
described as Latin America).
Europe
Cash basis profit before tax
Year ended 31 December
Figures in US$m 2002 2001 2000
UK banking .......................... 2,242 2,394 2,205
France................................... 548 587 176
International banking............ 312 278 426
Treasury and capital markets 701 487 305
HSBC Private Banking
Holdings (Suisse) SA....... 233 211 290
HSBC Trinkaus &
Burkhard
t
......................... 57 133 133
Other*................................... 67 92 486
4,160 4,182 4,021
* Other primarily relates to other operating subsidiaries and the
holding company sub-group.
Year ended 31 December
Figures in US$m 2002 2001 2000
Net interest income............... 6,343 5,563 4,988
Dividend income .................. 211 116 84
Net fees and commissions..... 4,528 4,210 4,100
Dealing profits...................... 508 708 787
Other income ........................ 1,025 1,022 951
Other operating income ........ 6,272 6,056 5,922
Total operating income 12,615 11,619 10,910
Staff costs............................. (4,425 ) (4,227) (3,862)
Premises and equipmen
t
....... (966) (786) (651 )
Othe
r
.................................... (1,763) (1,619 ) (1,374)
Depreciatio
n
......................... (724) (656) (631 )
(7,878) (7,288 ) (6,518)
Goodwill amortisatio
n
.......... (651) (632) (348 )
Operating expenses............... (8,529 ) (7,920) (6,866)
Operating profit before
provisions........................ 4,086 3,699 4,044
Provisions for bad and
doubtful debts .................. (569 ) (441) (348)
Provisions for contingent
liabilities and
commitments ................... (15 ) (30) (67 )
Amounts written off fixed
asset investments ............. (267) (90 ) (23)
Operating profit.................. 3,235 3,138 3,606
Share of operating (loss)
in joint ventures (26 ) (79 ) (51)
Share of operating profits/
(losses) in associated
undertakings..................... 342 (45)
Gains on disposal of
investments and tangible
fixed assets ...................... 288 441 148
Profit on ordinary
activities before tax* ...... 3,500 3,542 3,658
* of which United Kingdom.... 3,239 3,147 3,127