HSBC 2008 Annual Report Download - page 83

81
Reconciliation of reported and underlying profit before tax
2008 compared with 2007
Private Banking
2007
as
reported
US$m
2007
acquisitions,
disposals
& dilution
gains1
US$m
Currency
translation2
US$m
2007
at 2008
exchange
rates3
US$m
2008
acquisitions
and
disposals1
US$m
Under-
lying
change
US$m
2008
as
reported
US$m
Re-
ported
change
%
Under-
lying
change
%
Net interest income .......... 1,216 1 (12) 1,205 – 407 1,612 33 34
Net fee income ................. 1,615 (105) 26 1,536 – (60) 1,476 (9) (4)
Other income4................... 717 (18) 5 704 – (161) 543 (24) (23)
Net operating income5.... 3,548 (122) 19 3,445 – 186 3,631 2 5
Loan impairment charges
and other credit risk
provisions .................... (14) – – (14) – (54) (68) (386) (386)
Net operating income .... 3,534 (122) 19 3,431 – 132 3,563 1 4
Operating expenses .......... (2,025) 98 (17) (1,944) – (172) (2,116) (4) (9)
Operating profit ............. 1,509 (24) 2 1,487 – (40) 1,447 (4) (3)
Income from associates ... 2 – – 2 – (2) – (100) (100)
Profit before tax ............. 1,511 (24) 2 1,489 – (42) 1,447 (4) (3)
2007 compared with 2006
Private Banking
2006
as
reported
US$m
2006
acquisitions
and
disposals1
US$m
Currency
translation2
US$m
2006
at 2007
exchange
rates6
US$m
2007
acquisitions,
disposals
& dilution
gains1
US$m
Under-
lying
change
US$m
2007
as
reported
US$m
Re-
ported
change
%
Under-
lying
change
%
Net interest income .......... 1,011 – 24 1,035 2 179 1,216 20 17
Net fee income ................. 1,323 – 32 1,355 4 256 1,615 22 19
Other income4 .................. 597 – 7 604 1 112 717 20 19
Net operating income5...... 2,931 – 63 2,994 7 547 3,548 21 18
Loan impairment charges
and other credit risk
provisions .................... (33) – – (33) – 19 (14) 58 58
Net operating income ...... 2,898 – 63 2,961 7 566 3,534 22 19
Operating expenses .......... (1,685) – (40) (1,725) (4) (296) (2,025) (20) (17)
Operating profit ............... 1,213 – 23 1,236 3 270 1,509 24 22
Income from associates ... 1 – – 1 – 1 2 100 100
Profit before tax ............... 1,214 – 23 1,237 3 271 1,511 24 22
For footnotes, see page 143.