HSBC 2005 Annual Report Download - page 282

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
280
By customer group
HSBC’s operations include a number of shared support services and head office functions. The costs of these
functions are allocated to customer groups, where appropriate, on a systematic and consistent basis. In addition, a
number of income and expense items include the effect of financial transactions entered into in the ordinary course
of business between customer groups co-operating within the integrated HSBC Group. The following analysis
includes inter-segment amounts within each customer group with the elimination shown in a separate column.
Total assets
At 31 December 2005 At 31 December 2004
US$m % US$m %
Personal Financial Services ....................................................... 471,760 31.7 441,114 34.8
Commercial Banking ................................................................. 175,120 11.7 159,251 12.6
Corporate, Investment Banking and Markets ............................ 755,056 50.7 584,779 46.1
Private Banking ......................................................................... 59,827 4.0 56,751 4.5
Other ......................................................................................... 27,653 1.9 26,201 2.0
Total assets1 ............................................................................... 1,489,416 100.0 1,268,096 100.0
1Excluding Hong Kong Government certificates of indebtedness.
Profit before tax
Year ended 31 December 2005
Personal
Financial
Services
Commercial
Banking
Corporate,
Investment
Banking
& Markets
Private
Banking Other
Intra-
HSBC
items Total
US$
m
US$
m
US$
m
US$
m
US$
m
US$
m
US$
m
Net interest income/(expense) ... 23,351 6,310 3,001 848 (472) (1,704) 31,334
Net fee income .......................... 7,313 2,876 2,967 1,080 220
–
14,456
Trading income excluding net
interest income ...................... 360 150 2,919 317 (90) – 3,656
Net interest income/(expense)
on trading activities ............... 214 (3) 306 – (13) 1,704 2,208
Net trading income/(expense) .... 574 147 3,225 317 (103) 1,704 5,864
Net income/(expense) from
financial instruments
designated at fair value .......... 574 (12) 67 (1) 406 – 1,034
Gains less losses from financial
investments ........................... 19 9 475 45 144 – 692
Dividend income ....................... 16 9 79 9 42
–
155
Net earned insurance premiums 4,864 236 76
–
260
–
5,436
Other operating income ............. 729 327 1,621 68 2,634 (2,646) 2,733
Total operating income ........... 37,440 9,902 11,511 2,366 3,131 (2,646) 61,704
Net insurance claims incurred
and movement in policy-
holders’ liabilities .................. (3,716) (118) (54) – (179) – (4,067)
Net operating income before
loan impairment charges and
other credit risk provisions .33,724 9,784 11,457 2,366 2,952 (2,646) 57,637
Loan impairment charges and
other credit risk provisions .... (7,537) (547) 272 12 (1) – (7,801)
Net operating income1 ............. 26,187 9,237 11,729 2,378 2,951 (2,646) 49,836
Operating expenses .................... (16,427) (4,453) (6,838) (1,466) (2,976) 2,646 (29,514)
Operating profit/(loss) ............ 9,760 4,784 4,891 912 (25)
–
20,322
Share of profit in associates and
joint ventures ......................... 144 177 272 – 51 – 644
Profit before tax ...................... 9,904 4,961 5,163 912 26
–
20,966
Capital expenditure incurred2 .... 1,583 411 1,783 102 594
–
4,473
1Net operating income:
External ................................. 25,000 8,258 13,998 1,668 912
–
49,83
6
Inter-segment ........................ 1,18
7
979 (2,269) 710 2,039 (2,646)
–
2Expenditure incurred on property, plant and equipment and intangible assets.