HSBC 2009 Annual Report Download - page 74

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Customer groups > Commercial Banking / Global Banking and Markets
72
• Total revenue in the corporate segment was
US$6.3 billion. Deposits from corporate
customers were US$121 billion, while loans
and advances were US$147 billion. Signs of
returning confidence in the second half of 2009
were accompanied by higher levels of new
lending, particularly in Asia and other emerging
markets.
Commercial Banking continued to seek
opportunities to deliver intra-Group referrals:
• A new global referral programme between
Commercial Banking and Personal Financial
Services was launched, resulting in over 15,000
successful referrals to HSBC Premier.
• The number of referrals to Private Banking was
1,057, generating over US$2.5 billion in assets
under management.
Reconciliation of reported and underlying profit before tax
2009 compared with 2008
Commercial Banking
2008
as
reported
US$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 .......... 9,494 (29) (697) 8,768 45 (930) 7,883 (17) (11)
Net fee income ................. 4,097 (26) (367) 3,704 5 (7) 3,702 (10) –
Other income15 ................. 1,726 (464) (213) 1,049 295 (76) 1,268 (27) (7)
Net operating income16 .. 15,317 (519) (1,277) 13,521 345 (1,013) 12,853 (16) (7)
Loan impairment charges
and other credit risk
provisions .................... (2,173) 3 68 (2,102) – (1,180) (3,282) (51) (56)
Net operating income .... 13,144 (516) (1,209) 11,419 345 (2,193) 9,571 (27) (19)
Operating expenses .......... (6,581) 30 537 (6,014) (27) 78 (5,963) 9 1
Operating profit ............. 6,563 (486) (672) 5,405 318 (2,115) 3,608 (45) (39)
Income from associates ... 631 – 7 638 – 29 667 6 5
Profit before tax ............. 7,194 (486) (665) 6,043 318 (2,086) 4,275 (41) (35)
2008 compared with 2007
Commercial Banking
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 .......... 9,055 (166) (77) 8,812 41 641 9,494 5 7
Net fee income ................. 3,972 (113) (76) 3,783 27 287 4,097 3 8
Other income15 ................. 923 (7) (28) 888 525 313 1,726 87 35
Net operating income16 .... 13,950 (286) (181) 13,483 593 1,241 15,317 10 9
Loan impairment charges
and other credit risk
provisions .................... (1,007) 3 36 (968) (3) (1,202) (2,173) (116) (124)
Net operating income ...... 12,943 (283) (145) 12,515 590 39 13,144 2 –
Operating expenses .......... (6,252) 180 47 (6,025) (106) (450) (6,581) (5) (7)
Operating profit ............... 6,691 (103) (98) 6,490 484 (411) 6,563 (2) (6)
Income from associates ... 454 – 26 480 – 151 631 39 31
Profit before tax ............... 7,145 (103) (72) 6,970 484 (260) 7,194 1 (4)
For footnotes, see page 149.