HSBC 2010 Annual Report Download - page 300

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
13 – Segmental analysis
298
Profit/(loss) for the year
2010
Europe
Hong
Kong
Rest of
Asia-
Pacific
Middle
East
North
America
Latin
America
Intra-
HSBC
items Total
US$m US$m US$m US$m US$m US$m US$m US$m
Interest income ............................ 17,550 5,102 6,432 2,003 16,781 11,590 (1,113) 58,345
Interest expense .......................... (6,300) (856) (2,604) (636) (4,342) (5,279) 1,113 (18,904)
Net interest income ..................... 11,250 4,246 3,828 1,367 12,439 6,311 – 39,441
Fee income .................................. 8,334 3,460 2,399 737 4,524 2,366 (703) 21,117
Fee expense ................................. (1,963) (498) (467) (60) (860) (617) 703 (3,762)
Net fee income ............................ 6,371 2,962 1,932 677 3,664 1,749 – 17,355
Trading income excluding
net interest income ................. 1,461 1,107 1,207 343 109 453 – 4,680
Net interest income
on trading activities ................ 1,402 205 411 27 205 280 – 2,530
Net trading income ..................... 2,863 1,312 1,618 370 314 733 – 7,210
Changes in fair value of long-
term debt issued and related
derivatives .............................. (365) (2) (2) –111 – – (258)
Net income from other
financial instruments
designated at fair value ........... 647 380 26 – – 425 – 1,478
Net income from financial
instruments designated at
fair value ................................. 282 378 24 – 111 425 – 1,220
Gains less losses from financial
investments ............................. 486 98 146 (3) 143 98 – 968
Dividend income ......................... 20 30 1 7 42 12 – 112
Net earned insurance premiums . 4,067 4,332 448 – 245 2,054 – 11,146
Other operating income/
(expense) ................................ 2,117 1,606 1,598 (8) 233 141 (3,125) 2,562
Total operating income ............ 27,456 14,964 9,595 2,410 17,191 11,523 (3,125) 80,014
Net insurance claims incurred
and movement in liabilities to
policyholders .......................... (4,706) (4,762) (363) – (144) (1,792) – (11,767)
Net operating income before
loan impairment charges
and other credit risk
provisions .............................. 22,750 10,202 9,232 2,410 17,047 9,731 (3,125) 68,247
Loan impairment charges and
other credit risk provisions ..... (3,020) (114) (439) (627) (8,295) (1,544) – (14,039)
Net operating income ................ 19,730 10,088 8,793 1,783 8,752 8,187 (3,125) 54,208
Employee compensation and
benefits .................................. (7,875) (2,341) (2,719) (579) (3,672) (2,650) – (19,836)
General and administrative
expenses .................................. (6,499) (1,686) (2,181) (450) (4,179) (3,286) 3,125 (15,156)
Depreciation and impairment of
property, plant and equipment (719) (237) (189) (42) (288) (238) – (1,713)
Amortisation and impairment of
intangible assets ...................... (352) (167) (54) (7) (183) (220) – (983)
Total operating expenses .......... (15,445) (4,431) (5,143) (1,078) (8,322) (6,394) 3,125 (37,688)
Operating profit ........................ 4,285 5,657 3,650 705 430 1,793 – 16,520
Share of profit in associates
and joint ventures ................... 17 35 2,252 187 24 2 – 2,517
Profit before tax ........................ 4,302 5,692 5,902 892 454 1,795 – 19,037
Tax expense ................................ (1,006) (987) (962) (138) (1,180) (573) – (4,846)
Profit/(loss) for the year ........... 3,296 4,705 4,940 754 (726) 1,222 – 14,191