HSBC 2006 Annual Report Download - page 90

HSBC HOLDINGS PLC
Report of the Directors: Business Review (continued)
North America > Profit/(loss) before tax
88
Profit/(loss) before tax by customer groups and global businesses
Year ended 31 December 2006
North America
Personal
Financial
Services
US$m
Commercial
Banking
US$m
Corporate,
Investment
Banking &
Markets
US$m
Private
Banking
US$m
Other
US$m
Inter-
segment
elimination
US$m
Total
US$m
Net interest income/(expense) .... 12,964 1,362 266 212 (52) (484) 14,268
Net fee income/(expense) ........... 3,675 329 656 240 (134) – 4,766
Trading income/(expense)
excluding net interest income 66 13 746 12 (220) – 617
Net interest income/(expense)
on trading activities ................ 208 – 72 –(23) 484 741
Net trading income/(expense) .... 274 13 818 12 (243) 484 1,358
Net expense from financial
instruments designated at
fair value ................................. – – (11) – (52)
– (63)
Gains less losses from financial
investments ............................. 14 19 12 9 4 – 58
Dividend income ......................... 23 1 61 – – – 85
Net earned insurance premiums . 492 – – – – – 492
Other operating income .............. 270 87 269 31 1,536 (1,271) 922
Total operating income ............ 17,712 1,811 2,071 504 1,059 (1,271) 21,886
Net insurance claims1 ................. (259) – – – – – (259)
Net operating income before
loan impairment charges
and other credit risk
provisions .............................. 17,453 1,811 2,071 504 1,059 (1,271) 21,627
Loan impairment charges and
other credit risk provisions ..... (6,683) (74) (3) (35) (1) – (6,796)
Net operating income ............... 10,770 1,737 2,068 469 1,058 (1,271) 14,831
Total operating expenses ............ (7,379) (814) (1,641) (355) (1,275) 1,271 (10,193)
Operating profit/(loss) .............. 3,391 923 427 114 (217) – 4,638
Share of profit/(loss) in
associates and joint ventures .. – 34 (4) – – – 30
Profit/(loss) before tax .............. 3,391 957 423 114 (217) – 4,668
% % % % % %
Share of HSBC’s profit
before tax ................................ 15.4 4.3 1.9 0.5 (1.0) 21.1
Cost efficiency ratio ................... 42.3 44.9 79.2 70.4 120.4 47.1
US$m US$m US$m US$m US$m US$m
Selected balance sheet data2
Loans and advances to
customers (net) ....................... 220,517 34,651 17,215 5,604 – 277,987
Total assets ................................. 250,985 43,012 208,958 6,558 1,677 511,190
Customer accounts ...................... 54,099 31,066 23,711 11,938 108 120,922
The following assets and
liabilities were significant
to Corporate, Investment
Banking and Markets:
– loans and advances to
banks (net) .......................... 15,862
– trading assets, financial
instruments designated at
fair value, and financial
investments3 ....................... 136,141
– deposits by banks ............... 9,664