HSBC 2007 Annual Report Download - page 339

337
Consolidated income statement for the year ended 31 December 2007
2007 2006 2005
Notes US$m US$m US$m
Interest income .................................................................................... 92,359 75,879 60,094
Interest expense ................................................................................... (54,564) (41,393) (28,760)
Net interest income .............................................................................. 37,795 34,486 31,334
Fee income ........................................................................................... 26,337 21,080 17,486
Fee expense .......................................................................................... (4,335) (3,898) (3,030)
Net fee income ..................................................................................... 22,002 17,182 14,456
Trading income excluding net interest income ................................... 4,458 5,619 3,656
Net interest income on trading activities ............................................. 5,376 2,603 2,208
Net trading income .............................................................................. 9,834 8,222 5,864
Net income from financial instruments designated at fair value ........ 3 4,083 657 1,034
Gains less losses from financial investments ...................................... 1,956 969 692
Gains arising from dilution of interests in associates ......................... 4 1,092 – –
Dividend income .................................................................................. 324 340 155
Net earned insurance premiums .......................................................... 5 9,076 5,668 5,436
Other operating income ....................................................................... 1,439 2,546 2,733
Total operating income ..................................................................... 87,601 70,070 61,704
Net insurance claims incurred and movement in liabilities to
policyholders .................................................................................. 6 (8,608) (4,704) (4,067)
Net operating income before loan impairment charges and
other credit risk provisions .......................................................... 78,993 65,366 57,637
Loan impairment charges and other credit risk provisions ................. (17,242) (10,573) (7,801)
Net operating income ........................................................................ 7 61,751 54,793 49,836
Employee compensation and benefits ................................................. 8 (21,334) (18,500) (16,145)
General and administrative expenses .................................................. 9 (15,294) (12,823) (11,183)
Depreciation and impairment of property, plant and equipment ........ 23 (1,714) (1,514) (1,632)
Amortisation and impairment of intangible assets .............................. 22 (700) (716) (554)
Total operating expenses ................................................................... (39,042) (33,553) (29,514)
Operating profit ................................................................................. 22,709 21,240 20,322
Share of profit in associates and joint ventures ................................... 21 1,503 846 644
Profit before tax ................................................................................. 24,212 22,086 20,966
Tax expense ......................................................................................... 11 (3,757) (5,215) (5,093)
Profit for the year .............................................................................. 20,455 16,871 15,873
Profit attributable to shareholders of the parent company .................. 19,133 15,789 15,081
Profit attributable to minority interests ............................................... 1,322 1,082 792
US$ US$ US$
Basic earnings per ordinary share ....................................................... 13 1.65 1.40 1.36
Diluted earnings per ordinary share .................................................... 13 1.63 1.39 1.35
Dividends per ordinary share .............................................................. 12 0.87 0.76 0.69
The accompanying notes on pages 344 to 452, the audited sections of the ‘Report of the Directors: The Management of Risk’ on pages
192 to 288, ‘Critical accounting policies’ on pages 132 to 134 and ‘Off-balance sheet arrangements and special purpose entities’ on
pages 183 to 191 form an integral part of these financial statements.