HSBC 2007 Annual Report Download - page 77

75
Profit before tax
Year ended 31 December
Rest of Asia-Pacific (including the Middle East)
2007
US$m
2006
US$m
2005
US$m
Net interest income .......................................................................................... 4,143 3,047 2,412
Net fee income ................................................................................................. 2,246 1,622 1,340
Net trading income .......................................................................................... 1,643 1,181 860
Net income from financial instruments designated at fair value .................... 111 79 58
Gains less losses from financial investments .................................................. 38 41 18
Gains arising from dilution of interests in associates ..................................... 1,081 – –
Dividend income .............................................................................................. 8 5 5
Net earned insurance premiums ...................................................................... 226 174 155
Other operating income ................................................................................... 798 765 335
Total operating income ................................................................................. 10,294 6,914 5,183
Net insurance claims incurred and movement in liabilities to policyholders . (253) (192) (166)
Net operating income before loan impairment charges and other
credit risk provisions ................................................................................ 10,041 6,722 5,017
Loan impairment charges and other credit risk provisions ............................. (616) (512) (134)
Net operating income .................................................................................... 9,425 6,210 4,883
Total operating expenses ................................................................................. (4,764) (3,548) (2,762)
Operating profit ............................................................................................. 4,661 2,662 2,121
Share of profit in associates and joint ventures ............................................... 1,348 865 453
Profit before tax ............................................................................................. 6,009 3,527 2,574
% % %
Share of HSBC’s profit before tax .................................................................. 24.8 16.0 12.3
Cost efficiency ratio ........................................................................................ 47.4 52.8 55.1
Year-end staff numbers (full-time equivalent) ................................................ 88,573 72,265 55,577
Balance sheet data7
At 31 December
2007
US$m
2006
US$m
2005
US$m
Loans and advances to customers (net) ........................................................... 101,852 77,574 70,016
Loans and advances to banks (net) .................................................................. 39,861 27,517 19,559
Trading assets, financial instruments designated at fair value, and
financial investments ................................................................................... 64,381 41,585 30,348
Total assets ...................................................................................................... 228,112 167,668 142,014
Deposits by banks ............................................................................................ 17,560 10,323 7,439
Customer accounts ........................................................................................... 150,233 108,995 89,118
For footnote, see page 130.
Concerns over liquidity growth prompted the central
bank to increase interest rates by 50 basis points to
5 per cent during the year. A gradual cooling of
demand and concerns over rapid exchange rate
appreciation are expected to limit the scope for
further interest rate rises in 2008. Buoyant exports
supported economic growth in Taiwan, while
domestic demand remained lacklustre due to a lack
of government initiatives which is expected to
continue beyond the presidential and parliamentary
elections scheduled for 2008. Generally robust
economic performances in the Philippines, Thailand,
and Pakistan in 2007 were overshadowed to varying
degrees by political risks.