HSBC 2009 Annual Report Download - page 84

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Customer groups > Profit/(loss) before tax
82
Analysis by customer group and global business
Profit/(loss) before tax
2009
Total
Personal
Financial
Services
US$m
Commercial
Banking
US$m
Global
Banking &
Markets
US$m
Private
Banking
US$m
Other40
US$m
Inter-
segment
elimination50
US$m
Total
US$m
Net interest income/(expense) .... 25,107 7,883 8,610 1,474 (1,035) (1,309) 40,730
Net fee income ............................ 8,238 3,702 4,363 1,236 125 – 17,664
Trading income excluding net
interest income ....................... 637 332 4,701 322 244 – 6,236
Net interest income on
trading activities ..................... 65 22 2,174 22 35 1,309 3,627
Net trading income42 ................... 702 354 6,875 344 279 1,309 9,863
Changes in fair value of long-
term debt issued and related
derivatives .............................. – – – – (6,247) – (6,247)
Net income/(expense) from
other financial instruments
designated at fair value ........... 2,339 100 473 – (196) – 2,716
Net income/(expense) from
financial instruments
designated at fair value ........... 2,339 100 473 – (6,443) – (3,531)
Gains less losses from
financial investments .............. 224 23 265 5 3 – 520
Dividend income ......................... 33 8 68 5 12 – 126
Net earned insurance premiums . 9,534 886 54 – (3) – 10,471
Other operating income .............. 809 739 1,146 48 5,042 (4,996) 2,788
Total operating income/
(expense) ................................ 46,986 13,695 21,854 3,112 (2,020) (4,996) 78,631
Net insurance claims43 ................ (11,571) (842) (34) – (3) – (12,450)
Net operating income/
(expense)16 ............................. 35,415 12,853 21,820 3,112 (2,023) (4,996) 66,181
Loan impairment charges and
other credit risk provisions ..... (19,902) (3,282) (3,168) (128) (8) – (26,488)
Net operating income/
(expense) ................................ 15,513 9,571 18,652 2,984 (2,031) (4,996) 39,693
Operating expenses ..................... (18,292) (5,963) (8,537) (1,884) (4,715) 4,996 (34,395)
Operating profit/(loss) .............. (2,779) 3,608 10,115 1,100 (6,746) – 5,298
Share of profit in associates
and joint ventures ................... 714 667 366 8 26 – 1,781
Profit/(loss) before tax .............. (2,065) 4,275 10,481 1,108 (6,720) – 7,079
% % % %
%
%
Share of HSBC’s profit
before tax ................................ (29.2) 60.4 148.1 15.6 (94.9) 100.0
Cost efficiency ratio ................... 51.7 46.4 39.1 60.5 (233.1) 52.0
Balance sheet data41
US$m US$m US$m US$m
US$m US$m
Loans and advances to
customers (net) ....................... 399,460 199,674 256,956 37,031 3,110 896,231
Total assets ................................. 554,074 251,143 1,683,672 116,148 150,983 (391,568) 2,364,452
Customer accounts ...................... 499,109 267,388 284,727 106,533 1,277 1,159,034