HSBC 2009 Annual Report Download - page 68

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Customer groups > Summary / Personal Financial Services
66
Customer groups and global
businesses
Page
Summary ....................................................... 66
Personal Financial Services ........................... 67
Commercial Banking ..................................... 70
Global Banking and Markets ......................... 73
Private Banking ............................................. 77
Other ............................................................. 80
Analysis by customer group and global
business ...................................................... 82
Summary
HSBC’s senior management reviews operating
activity on a number of bases, including by
geographical region and by customer group and
global business. Although information is reviewed
on a number of bases, capital resources are allocated
and performance is assessed primarily by
geographical region, as presented on page 85.
In addition to utilising information by
geographical region, management assesses
performance through two customer groups, Personal
Financial Services and Commercial Banking, and
two global businesses, Global Banking and Markets
and Private Banking. Personal Financial Services
incorporates the Group’s consumer finance
businesses, the largest of which is HSBC Finance.
The commentaries below present customer
groups and global businesses followed by
geographical regions. Performance is discussed in
this order because certain strategic themes, business
initiatives and trends affect more than one
geographical region. All commentaries are on an
underlying basis (see page 21) unless stated
otherwise.
Profit/(loss) before tax
2009 2008 2007
US$m % US$m % US$m %
Personal Financial Services ............................. (2,065) (29.2) (10,974) (117.9) 5,900 24.4
Commercial Banking ....................................... 4,275 60.4 7,194 77.3 7,145 29.5
Global Banking and Markets ........................... 10,481 148.1 3,483 37.4 6,121 25.3
Private Banking ............................................... 1,108 15.6 1,447 15.6 1,511 6.2
Other40 .............................................................. (6,720) (94.9) 8,157 87.6 3,535 14.6
7,079 100.0 9,307 100.0 24,212 100.0
Total assets41
At 31 December
2009 2008
US$m % US$m %
Personal Financial Services ................................................................................ 554,074 23.4 527,901 20.9
Commercial Banking .......................................................................................... 251,143 10.6 249,218 9.9
Global Banking and Markets .............................................................................. 1,683,672 71.2 1,991,852 78.8
Private Banking .................................................................................................. 116,148 4.9 133,216 5.2
Other ................................................................................................................... 150,983 6.4 145,581 5.8
Intra-HSBC items ............................................................................................... (391,568) (16.5) (520,303) (20.6)
2,364,452 100.0 2,527,465 100.0
For footnotes, see page 149.
Basis of preparation
The results are presented in accordance with the
accounting policies used in the preparation of
HSBC’s consolidated financial statements. HSBC’s
operations are closely integrated and, accordingly,
the presentation of customer group data includes
internal allocations of certain items of income and
expense. These allocations include the costs of
certain support services and Group Management
Office (‘GMO’) functions, to the extent that these
can be meaningfully attributed to operational
business lines. While such allocations have been
made on a systematic and consistent basis, they
necessarily involve a degree of subjectivity.
Where relevant, income and expense amounts
presented include the results of inter-segment
funding as well as inter-company and inter-business
line transactions. All such transactions are
undertaken on arm’s length terms.