HSBC 2008 Annual Report Download - page 130

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Geographical regions > North America > Profit/loss before tax by customer group // Latin America
128
Analysis by customer group and global business (continued)
Profit/(loss) before tax
2006
North America
Personal
Financial
Services
US$m
Commercial
Banking
US$m
Global
Banking &
Markets
US$m
Private
Banking
US$m
Other
US$m
Inter-
segment
elimination21
US$m
Total
US$m
Net interest income/(expense) .... 12,964 1,362 266 212 (52) (484) 14,268
Net fee income/(expense) ........... 3,675 329 656 240 (134) – 4,766
Trading income/(expense)
excluding net interest income 66 13 746 12 (220) – 617
Net interest income/(expense)
on trading activities ................ 208 – 72 – (23) 484 741
Net trading income/(expense)16 .. 274 13 818 12 (243) 484 1,358
Changes in fair value of long-
term debt issued and related
derivatives .............................. – – – – (63) – (63)
Net income/(expense) from
other financial instruments
designated at fair value ........... – – (11) – 11 – –
Net expense from financial
instruments designated at
fair value ................................. – – (11) – (52) – (63)
Gains less losses from financial
investments ............................. 14 19 12 9 4 – 58
Dividend income ......................... 23 1 61 – – – 85
Net earned insurance premiums . 492 – – – – – 492
Other operating income .............. 270 87 269 31 1,536 (1,271) 922
Total operating income ............... 17,712 1,811 2,071 504 1,059 (1,271) 21,886
Net insurance claims17 ................ (259) – – – – – (259)
Net operating income5 ................ 17,453 1,811 2,071 504 1,059 (1,271) 21,627
Loan impairment charges and
other credit risk provisions ..... (6,683) (74) (3) (35) (1) – (6,796)
Net operating income ................. 10,770 1,737 2,068 469 1,058 (1,271) 14,831
Total operating expenses ............ (7,379) (814) (1,641) (355) (1,275) 1,271 (10,193)
Operating profit/(loss) ................ 3,391 923 427 114 (217) – 4,638
Share of profit/(loss) in
associates and joint ventures .. – 34 (4) – – – 30
Profit/(loss) before tax ................ 3,391 957 423 114 (217) – 4,668
% % % % % %
Share of HSBC’s profit
before tax ................................ 15.4 4.3 1.9 0.5 (1.0) 21.1
Cost efficiency ratio ................... 42.3 44.9 79.2 70.4 120.4 47.1
Balance sheet data15
US$m US$m US$m US$m US$m US$m
Loans and advances to
customers (net) ....................... 220,517 34,651 17,215 5,604 – 277,987
Total assets ................................. 252,725 43,665 203,639 7,334 1,898 (3,623) 505,638
Customer accounts ...................... 54,099 31,066 23,711 11,938 108 120,922
For footnotes, see page 143.