HSBC 2009 Annual Report Download - page 414

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Note 14
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14 Segmental analysis
HSBC’s operating segments are organised into six geographical regions, Europe, Hong Kong, Rest of Asia-Pacific,
Middle East, North America and Latin America. Due to the nature of the Group, HSBC’s chief operating decision-
maker regularly reviews operating activity on a number of bases, including by geographical region, customer group
and global business, and retail businesses by geographical region. The segmental analysis is presented on a
geographical basis because, although information is reviewed on a number of bases, capital resources are allocated
and performance is assessed primarily by geographical region. Also, the economic conditions of each geographical
region are highly influential in determining the performance of the different businesses carried out in each region. As
a result, provision of segmental information on a geographical basis provides the most meaningful basis from which
to assess performance. HSBC’s chief operating decision-maker is the Group Management Board which operates as a
general management committee under the direct authority of the Board.
Geographical information is classified by the location of the principal operations of the subsidiary or, for The
Hongkong and Shanghai Banking Corporation, HSBC Bank, HSBC Bank Middle East and HSBC Bank USA, by the
location of the branch responsible for reporting the results or advancing the funds.
Information provided to HSBC’s chief operating decision-maker to make decisions about allocating resources to, and
assessing the performance of, operating segments is measured in accordance with IFRSs. The financial information
shown below includes the effects of intra-HSBC transactions between operating segments which are conducted on an
arm’s length basis and eliminated in a separate column. Shared costs are included in operating segments on the basis
of the actual recharges made.
The Middle East is presented as a separate operating segment with effect from 1 January 2009. Previously, it was
included within the Rest of Asia-Pacific segment. The change was made to align the segmental analysis with the
information reviewed by the chief operating decision-maker and comparative figures have been restated accordingly.
Products and services
HSBC provides a comprehensive range of banking and related financial services to its customers in its six
geographical regions. The products and services offered to customers are organised by customer group and global
business.
• Personal Financial Services offers a broad range of products and services to meet the personal banking,
consumer finance and wealth management needs of individual customers. Personal banking products typically
include current and savings accounts, mortgages and personal loans, credit cards, insurance, wealth management
and local and international payment services.
• Commercial Banking product offerings include the provision of financing services, payments and cash
management, international trade finance, treasury and capital markets, commercial cards, insurance, wealth
management and investment banking services.
• Global Banking and Markets provides tailored financial solutions to major government, corporate and
institutional clients worldwide. The client-focused business lines deliver a full range of banking capabilities
including investment banking and financing solutions; a markets business that provides services in credit, rates,
foreign exchange, money markets and securities services; global asset management services and principal
investment activities.
• Private Banking provides a range of services to meet the banking, investment and wealth advisory needs of high
net worth individuals.
Financial information
In the following segmental analysis, the benefit of shareholders’ funds impacts the analysis only to the extent that
these funds are actually allocated to businesses in the segment by way of intra-HSBC capital and funding structures.