HSBC 2009 Annual Report Download - page 48

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Financial summary > Balance sheet / Average balance sheet
46
Average balance sheet and net interest
income
Average balances and related interest are shown for
the domestic operations of HSBC’s principal
commercial banks by geographical region. ‘Other
operations’ comprise the operations of the principal
Commercial Banking and consumer finance entities
outside their domestic markets and all other banking
operations, including investment banking balances
and transactions.
Average balances are based on daily averages
for the principal areas of HSBC’s banking activities
with monthly or less frequent averages used
elsewhere.
Balances and transactions with fellow
subsidiaries are reported gross in the principal
Commercial Banking and consumer finance entities
within ‘Other interest-earning assets’ and ‘Other
interest-bearing liabilities’ as appropriate and the
elimination entries are included within ‘Other
operations’ in those two categories.
Net interest margin numbers are calculated
by dividing net interest income as reported in the
income statement by the average interest-earning
assets from which interest income is reported
within the ‘Net interest income’ line of the income
statement. Interest income and interest expense
arising from trading assets and liabilities and the
funding thereof is included within ‘Net trading
income’ in the income statement.
Assets
2009 2008 2007
Average
balance
Interest
income Yield
Average
balance
Interest
income Yield
Average
balance
Interest
income Yield
US$m US$m % US$m US$m % US$m US$m %
Summary
Total interest-earning assets (itemised
below) ...................................................... 1,384,705 62,096 4.48 1,466,622 91,301 6.23
1,296,701 92,359 7.12
Trading assets32 ............................................ 357,504 7,614 2.13 428,539 16,742 3.91 374,973 17,562 4.68
Financial assets designated at fair value33 ... 62,143 1,032 1.66 37,303 1,108 2.97 14,899 813 5.46
Impairment provisions ................................. (26,308) (20,360)
(15,309)
Non-interest-earning assets ......................... 667,942 596,885 440,686
Total assets and interest income .................. 2,445,986 70,742 2.89 2,508,989 109,151 4.35 2,111,950 110,734 5.24
Short-term funds and loans and advances
to banks
Europe HSBC Bank ..................... 38,455 1,379 3.59 46,703 2,187 4.68 49,910 2,592 5.19
HSBC Private Banking
Holdings (Suisse) ........ 4,451 43 0.97 8,040 333 4.14 5,295 229 4.32
HSBC France .................. 37,239 440 1.18 35,801 1,495 4.18 31,591 1,294 4.10
Hong Kong Hang Seng Bank ............. 16,626 202 1.21 17,402 587 3.37 13,054 609 4.67
The Hongkong and
Shanghai Banking
Corporation ................. 27,903 182 0.65 47,244 1,344 2.84 50,210 2,352 4.68
Rest of Asia-
Pacific27
The Hongkong and
Shanghai Banking
Corporation ................. 23,107 326 1.41 27,907 881 3.16 19,286 810 4.20
HSBC Bank Malaysia ..... 3,776 81 2.15 4,659 165 3.54 2,861 103 3.60
Middle East27 HSBC Bank Middle East . 4,312 52 1.21 6,028 188 3.12 6,328 324 5.12
North America HSBC Bank USA ............ 2,338 94 4.02 9,595 328 3.42 9,393 477 5.08
HSBC Bank Canada ........ 2,934 10 0.34 3,354 107 3.19 3,810 174 4.57
Latin America HSBC Mexico ................. 3,722 149 4.00 3,682 247 6.71 3,555 239 6.72
Brazilian operations34 ...... 10,490 1,003 9.56 7,959 951 11.95 5,790 645 11.14
HSBC Bank Panama ....... 1,187 10 0.84 1,133 30 2.65 897 33 3.68
HSBC Bank Argentina .... 256 29 11.33 612 43 7.03 304 16 5.26
Other operations .......................................... 15,782 199 1.26 19,992 760 3.80 19,087 898 4.70
192,578 4,199 2.18 240,111 9,646 4.02 221,371 10,795 4.88