HSBC 2011 Annual Report Download - page 20

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Financial summary > Consolidated income statement
18
Consolidated income statement
Five-year summary consolidated income statement
2011
US$m
2010
US$m
2009
US$m
2008
US$m
2007
US$m
Net interest income ...................................................................... 40,662 39,441 40,730 42,563 37,795
Net fee income ............................................................................. 17,160 17,355 17,664 20,024 22,002
Net trading income ...................................................................... 6,506 7,210 9,863 6,560 9,834
Net income/(expense) from financial instruments
designated at fair value ........................................................... 3,439 1,220 (3,531) 3,852 4,083
Gains less losses from financial investments .............................. 907 968 520 197 1,956
Dividend income .......................................................................... 149 112 126 272 324
Net earned insurance premiums .................................................. 12,872 11,146 10,471 10,850 9,076
Gains on disposal of French regional banks ............................... – – – 2,445 –
Other operating income ............................................................... 1,766 2,562 2,788 1,808 2,531
Gains arising from dilution of interests in associates
and joint ventures ............................................................... 208 188 – – 1,092
Other ........................................................................................ 1,558 2,374 2,788 1,808 1,439
Total operating income ............................................................. 83,461 80,014 78,631 88,571 87,601
Net insurance claims incurred and movement in liabilities to
policyholders ................................................................................ (11,181) (11,767) (12,450) (6,889) (8,608)
Net operating income before loan impairment charges
and other credit risk provisions .......................................... 72,280 68,247 66,181 81,682 78,993
Loan impairment charges and other credit risk provisions ......... (12,127) (14,039) (26,488) (24,937) (17,242)
Net operating income ................................................................ 60,153 54,208 39,693 56,745 61,751
Total operating expenses19 ........................................................... (41,545) (37,688) (34,395) (49,099) (39,042)
Operating profit ......................................................................... 18,608 16,520 5,298 7,646 22,709
Share of profit in associates and joint ventures ........................... 3,264 2,517 1,781 1,661 1,503
Profit before tax ......................................................................... 21,872 19,037 7,079 9,307 24,212
Tax expense ................................................................................. (3,928) (4,846) (385) (2,809) (3,757)
Profit for the year ...................................................................... 17,944 14,191 6,694 6,498 20,455
Profit attributable to shareholders of the parent company .......... 16,797 13,159 5,834 5,728 19,133
Profit attributable to non-controlling interests ............................ 1,147 1,032 860 770 1,322
Five-year financial information
US$ US$ US$ US$ US$
Basic earnings per share20 ............................................................ 0.92 0.73 0.34 0.41 1.44
Diluted earnings per share20 ......................................................... 0.91 0.72 0.34 0.41 1.42
Basic earnings excluding goodwill impairment per share19,20 ..... 0.92 0.73 0.34 1.19 1.44
Dividends per ordinary share1 ..................................................... 0.39 0.34 0.34 0.93 0.87
% % % % %
Dividend payout ratio21 ...............................................................
– reported ..................................................................................... 42.4 46.6 100.0 226.8 60.4
– excluding goodwill impairment19 ............................................. 42.4 46.6 100.0 78.2 60.4
Post-tax return on average total assets ........................................ 0.65 0.57 0.27 0.26 0.97
Return on average ordinary shareholders’ equity ....................... 10.9 9.5 5.1 4.7 15.9
Average foreign exchange translation rates to US$:
US$1: £ ........................................................................................ 0.624 0.648 0.641 0.545 0.500
US$1: € ........................................................................................ 0.719 0.755 0.719 0.684 0.731
For footnotes, see page 95.
Reported profit before tax of US$21.9bn in 2011
was US$2.8bn higher than in 2010, primarily due to
US$3.9bn of favourable fair value movements on
own debt attributable to credit spreads compared with
a negative movement of US$63m in 2010. On an
underlying basis, profit before tax was 6% lower than
in 2010 due to increased operating expenses which were