HSBC 2010 Annual Report Download - page 240

HSBC HOLDINGS PLC
Financial Statements (continued)
Consolidated income statement / Consolidated statement of comprehensive income
238
Consolidated income statement for the year ended 31 December 2010
2010 2009 2008
Notes US$m US$m US$m
Interest income ................................................................................................ 58,345 62,096 91,301
Interest expense ............................................................................................... (18,904) (21,366) (48,738)
Net interest income .......................................................................................... 39,441 40,730 42,563
Fee income ....................................................................................................... 21,117 21,403 24,764
Fee expense ...................................................................................................... (3,762) (3,739) (4,740)
Net fee income ................................................................................................. 17,355 17,664 20,024
Trading income excluding net interest income ............................................... 4,680 6,236 847
Net interest income on trading activities ......................................................... 2,530 3,627 5,713
Net trading income .......................................................................................... 7,210 9,863 6,560
Changes in fair value of long-term debt issued and related derivatives ......... (258) (6,247) 6,679
Net income/(expense) from other financial instruments designated
at fair value ................................................................................................. 1,478 2,716 (2,827)
Net income/(expense) from financial instruments designated at fair value ... 3 1,220 (3,531) 3,852
Gains less losses from financial investments .................................................. 968 520 197
Dividend income .............................................................................................. 112 126 272
Net earned insurance premiums ...................................................................... 4 11,146 10,471 10,850
Gains on disposal of French regional banks ................................................... – – 2,445
Other operating income ................................................................................... 2,562 2,788 1,808
Total operating income ................................................................................. 80,014 78,631 88,571
Net insurance claims incurred and movement in liabilities to
policyholders .............................................................................................. 5 (11,767) (12,450) (6,889)
Net operating income before loan impairment charges and
other credit risk provisions ...................................................................... 68,247 66,181 81,682
Loan impairment charges and other credit risk provisions ............................. 6 (14,039) (26,488) (24,937)
Net operating income .................................................................................... 6 54,208 39,693 56,745
Employee compensation and benefits ............................................................. 7 (19,836) (18,468) (20,792)
General and administrative expenses .............................................................. (15,156) (13,392) (15,260)
Depreciation and impairment of property, plant and equipment .................... 25 (1,713) (1,725) (1,750)
Goodwill impairment ....................................................................................... 24 – – (10,564)
Amortisation and impairment of intangible assets .......................................... 24 (983) (810) (733)
Total operating expenses ............................................................................... (37,688) (34,395) (49,099)
Operating profit ............................................................................................. 16,520 5,298 7,646
Share of profit in associates and joint ventures ............................................... 23 2,517 1,781 1,661
Profit before tax ............................................................................................. 19,037 7,079 9,307
Tax expense ..................................................................................................... 10 (4,846) (385) (2,809)
Profit for the year .......................................................................................... 14,191 6,694 6,498
Profit attributable to shareholders of the parent company .............................. 13,159 5,834 5,728
Profit attributable to non-controlling interests ................................................ 1,032 860 770
US$ US$ US$
Basic earnings per ordinary share ................................................................... 12 0.73 0.34 0.41
Diluted earnings per ordinary share ................................................................ 12 0.72 0.34 0.41
The accompanying notes on pages 250 to 370, ‘Critical accounting policies’ on pages 33 to 36, the audited sections of ‘Risk’ on pages 86
to 176 and the audited sections of ‘Capital’ on pages 177 to 182 form an integral part of these financial statements.