HSBC 2004 Annual Report Download - page 59

57
Other6
Profit excluding goodwill amortisation Business highlights
Year ended 31 December
2004 2003 2002
US$m US$m US$m
Net interest income/(expense)135 (14) (53)
Dividend income .................. 837 34
Net fees and commissions .... 126 159 124
Dealing profits/(losses) ........ 46 (46) 11
Other income9 ...................... 2,120 938 925
Other operating income9 ...... 2,300 1,088 1,094
Operating income9 ............. 2,435 1,074 1,041
Operating expenses excluding
goodwill amortisation1,9 ... (2,574) (1,371) (1,110)
Operating loss before
provisions1....................... (139) (297) (69)
Provisions for bad and
doubtful debts .................. –113 (6)
Provisions for contingent
liabilities and commitments 77 16 (75)
Amounts (written off)/written
back on fixed asset
investments ...................... 16 6 (194)
Operating loss1 ................... (46) (162) (344)
Share of operating profit in
associates2......................... 63 74 68
Gains on disposal of
investments and tangible
fixed assets ...................... 307 92 75
Profit /(loss) on ordinary
activities before tax3 ....... 324 4 (201)
By geographical region:
Europe .................................. 409 173 155
Hong Kong ........................... 23 (123) (61)
Rest of Asia-Pacific ............. 32 50 12
North America ..................... (221) (176) (207)
South America ..................... 81 80 (100)
Profit /(loss) on ordinary
activities before tax3........ 324 4 (201)
%%%
Share of HSBC’ s pre-tax
profits3 ............................. 1.6 – (1.9)
Cost:income ratio1 ................ 105.7 127.7 106.6
US$m US$m US$m
Selected balance sheet data7
Loans and advances to
customers (net) ................ 2,340 2,259 2,201
Total assets8,9 ........................ 26,745 25,561 21,276
Customer accounts ............... 555 557 311
Goodwill amortisation:
1excluded from (1) above ... –5–
2excluded from (2) above ... –(1)1
3excluded from (3) above ... –41
• The Group Service Centres are included in ‘Other’ .
The creation of the North American technology
company brought approximately US$970 million of
costs within this category, all of which were
recharged. Expansion and greater utilisation of the
Group Service Centres outside the US saw their costs
rise from US$97 million to US$171 million. As
almost all their activity is recharged to HSBC users,
their income also increased from US$93 million to
US$173 million.
• Significant releases of provisions for bad and
doubtful debts in Argentina during 2003 were not
repeated in 2004. Net releases of provisions for
contingent liabilities and commitments increased to
US$77 million, largely due to the release of
provisions raised in respect of pesification in
Argentina.
• Gains from disposals in Hong Kong arose from
disposals of an associated company, long-term
investments and a residential property. In addition,
there were gains from the disposal of an insurance
company in Europe, and profits from sales of
government securities in Argentina.
For other footnotes, see page 59.