HSBC 2009 Annual Report Download - page 71

69
available to borrowers. In Hong Kong, HSBC
maintained its market leading position with
gross mortgage balance growth of 7 per cent
during the year.
• As part of its strategy to deliver a globally
consistent customer experience, Personal
Financial Services commenced a global retail
store update and refresh programme including
the introduction of a set of minimum service
standards across customer touch points. The
standardised range of design principles helps
address the diverse needs of customers and
enables them to recognise and be confident in
their dealings with HSBC wherever they are.
The customer recommendation score for
Personal Financial Services increased in 2009
(see page 20).
Reconciliation of reported and underlying profit/(loss) before tax
2009 compared with 2008
Personal Financial
Services
2008
as
reported
US$m
2008
acquisitions
and
disposals10
US$m
Currency
translation11
US$m
2008
at 2009
exchange
rates12
US$m
2009
acquisitions
and
disposals10
US$m
Under-
lying
change
US$m
2009
as
reported
US$m
Re-
ported
change13
%
Under-
lying
change13
%
Net interest income .......... 29,419 (36) (1,534) 27,849 3 (2,745) 25,107 (15) (10)
Net fee income ................. 10,107 (32) (645) 9,430 –
(1,192) 8,238 (18) (13)
Other income15 ................. 1,963 (121) (258) 1,584 1 485 2,070 5 31
Net operating income16 .. 41,489 (189) (2,437) 38,863 4 (3,452) 35,415 (15) (9)
Loan impairment charges
and other credit risk
provisions .................... (21,220) 3 595 (20,622) – 720 (19,902) 6 3
Net operating income .... 20,269 (186) (1,842) 18,241 4 (2,732) 15,513 (23) (15)
Operating expenses
(excluding goodwill
impairment) ................. (21,140) 38 1,372 (19,730) (1) 1,439 (18,292) 13 7
Goodwill impairment ....... (10,564) – – (10,564) – 10,564 – 100 100
Operating loss ................ (11,435) (148) (470) (12,053) 3 9,271 (2,779) 76 77
Income from associates ... 461 – 13 474 – 240 714 55 51
Loss before tax ............... (10,974) (148) (457) (11,579) 3 9,511 (2,065) 81 82
2008 compared with 2007
Personal Financial
Services
2007
as
reported
US$m
2007
acquisitions,
disposals
& dilution
gains10
US$m
Currency
translation11
US$m
2007
at 2008
exchange
rates17
US$m
2008
acquisitions
and
disposals10
US$m
Under-
lying
change
US$m
2008
as
reported
US$m
Re-
ported
change13
%
Under-
lying
change13
%
Net interest income .......... 29,069 (224) (126) 28,719 215 485 29,419 1 2
Net fee income ................. 11,742 (21) (105) 11,616 (9) (1,500) 10,107 (14) (13)
Other income15 ................. 2,428 (91) (10) 2,327 83 (447) 1,963 (19) (19)
Net operating income16 .... 43,239 (336) (241) 42,662 289 (1,462) 41,489 (4) (3)
Loan impairment charges
and other credit risk
provisions .................... (16,172) 4 75 (16,093) (3) (5,124) (21,220) (31) (32)
Net operating income ...... 27,067 (332) (166) 26,569 286 (6,586) 20,269 (25) (25)
Operating expenses
(excluding goodwill
impairment) ................. (21,757) 236 117 (21,404) (98) 362 (21,140) 3 2
Goodwill impairment ....... – – – – – (10,564) (10,564)
Operating profit/(loss) ..... 5,310 (96) (49) 5,165 188 (16,788) (11,435) (315) (325)
Income from associates ... 590 – 52 642 – (181) 461 (22) (28)
Profit/(loss) before tax ..... 5,900 (96) 3 5,807 188 (16,969) (10,974) (286) (292)
For footnotes, see page 149.