HSBC 2007 Annual Report Download - page 90

HSBC HOLDINGS PLC
Report of the Directors: Business Review (continued)
Rest of Asia-Pacific > Profit before tax by customer group
88
Profit before tax and balance sheet data by customer group and global business
Year ended 31 December 2007
Rest of Asia-Pacific (including
the Middle East)
Personal
Financial
Services
US$m
Commercial
Banking
US$m
Global
Banking &
Markets
US$m
Private
Banking
US$m
Other
US$m
Inter-
segment
elimination14
US$m
Total
US$m
Net interest income ..................... 1,965 1,131 1,295 60 153 (461) 4,143
Net fee income ............................ 766 429 952 85 14 – 2,246
Trading income/(expense)
excluding net interest income 72 129 1,000 71 (70) – 1,202
Net interest income/(expense)
on trading activities ................ (2) – (22) – 4 461 441
Net trading income/(expense)5 ... 70 129 978 71 (66) 461 1,643
Net income/(expense) from
financial instruments
designated at fair value ........... 73 4 (3) (1) 38 – 111
Gains less losses from
financial investments .............. 5 4 28 – 1 – 38
Gains arising from dilution of
interests in associates ............. – – – – 1,081 – 1,081
Dividend income ......................... – – 2 – 6 – 8
Net earned insurance premiums . 209 16 – – 1 – 226
Other operating income/
(expense) ................................ 40 15 53 2 849 (161) 798
Total operating income ............ 3,128 1,728 3,305 217 2,077 (161) 10,294
Net insurance claims6 .................. (246) (7) – – – – (253)
Net operating income4 .............. 2,882 1,721 3,305 217 2,077 (161) 10,041
Loan impairment charges and
other credit risk provisions ..... (552) (61) (3) – – – (616)
Net operating income ............... 2,330 1,660 3,302 217 2,077 (161) 9,425
Total operating expenses ............ (2,131) (739) (1,140) (125) (790) 161 (4,764)
Operating profit ........................ 199 921 2,162 92 1,287 – 4,661
Share of profit in associates
and joint ventures ................... 561 429 302 – 56 – 1,348
Profit before tax ........................ 760 1,350 2,464 92 1,343 – 6,009
% % % % % %
Share of HSBC’s profit
before tax ................................ 3.1 5.6 10.2 0.4 5.5 24.8
Cost efficiency ratio ................... 73.9 42.9 34.5 57.6 38.0 47.4
US$m US$m US$m US$m US$m US$m
Balance sheet data7
Loans and advances to
customers (net) ....................... 34,486 32,159 32,106 2,955 146 101,852
Total assets ................................. 40,092 37,215 133,814 7,561 9,430 228,112
Customer accounts ...................... 49,703 34,891 54,120 11,116 403 150,233
The following assets and
liabilities were significant to
Global Banking and Markets:
– loans and advances to
banks (net) .......................... 30,853
– trading assets, financial
instruments designated at
fair value, and financial
investments ......................... 59,222
– deposits by banks ............... 17,174
For footnotes, see page 130.