HSBC 2007 Annual Report Download - page 367

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7 Net operating income
Net operating income is stated after the following items of income, expense, gains and losses:
2007 2006 2005
US$m US$m US$m
Income
Interest recognised on impaired financial assets ............................................. 404 284 120
Fees earned on financial assets or liabilities not held for trading nor
designated at fair value, other than fees included in effective interest
rate calculations on these types of assets and liabilities ............................. 15,140 11,182 9,077
Fees earned on trust and other fiduciary activities where HSBC holds
or invests assets on behalf of its customers ................................................. 3,695 2,909 2,912
Income from listed investments ....................................................................... 10,944 7,304 6,819
Income from unlisted investments ................................................................... 10,429 9,192 5,001
Expense
Interest on financial instruments, excluding interest on financial
liabilities held for trading or designated at fair value ................................. (50,876) (38,158) (26,627)
Fees payable on financial assets or liabilities not held for trading nor
designated at fair value, other than fees included in effective
interest rate calculations on these types of assets and liabilities ................ (1,923) (1,826) (1,357)
Fees payable relating to trust and other fiduciary activities where
HSBC holds or invests assets on behalf of its customers ........................... (163) (103) (238)
Gains/(losses)
Gain/(loss) on disposal or settlement of loans and advances .......................... 64 24 (12)
Net impairment loss on loans and advances .................................................... (17,177) (10,547) (7,860)
Net (charge)/reversal of impairment allowances in respect of
available-for-sale financial investments ...................................................... (86) (21) 42
Gains on disposal of property, plant and equipment, intangible assets and
non-financial investments ........................................................................... 213 781 703
8 Employee compensation and benefits
2007 2006 2005
US$m US$m US$m
Wages and salaries ........................................................................................... 18,535 16,186 14,008
Social security costs ......................................................................................... 1,587 1,194 1,072
Post-employment benefits ............................................................................... 1,212 1,120 1,065
21,334 18,500 16,145
The average number of persons employed by HSBC during the year was as follows:
2007 2006 2005
Europe .............................................................................................................. 86,918 84,170 82,638
Hong Kong ....................................................................................................... 27,702 27,328 25,699
Rest of Asia-Pacific ......................................................................................... 83,103 68,182 50,605
North America ................................................................................................. 58,117 57,654 51,518
Latin America .................................................................................................. 66,442 58,863 54,825
Total ................................................................................................................. 322,282 296,197 265,285
Post-employment benefit plans
Income statement charge
2007 2006 2005
US$m US$m US$m
Defined benefit pension plans ......................................................................... 694 602 618
– HSBC Bank (UK) Pension Scheme ............................................................. 490 342 410
– Other plans .................................................................................................... 204 260 208
Defined contribution plans .............................................................................. 485 456 389
1,179 1,058 1,007
Defined benefit healthcare plans ..................................................................... 33 62 58
1,212 1,120 1,065