HSBC 2011 Annual Report Download - page 317

315
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
Non-life
insurance
Life
insurance
(non-linked)
Life
insurance
(linked)
Investment
contracts
with DPF1 Total
US$m US$m US$m US$m US$m
2010
Gross claims incurred and movement in liabilities ........... 625 5,108 2,520 3,716 11,969
– claims, benefits and surrenders paid ..................... 815 1,355 507 2,023 4,700
– movement in liabilities .......................................... (190) 3,753 2,013 1,693 7,269
Reinsurers’ share of claims incurred and
movement in liabilities ............................................ (100) (201) 99 – (202)
– claims, benefits and surrenders paid ..................... (114) (143) (45) – (302)
– movement in liabilities .......................................... 14 (58) 144 – 100
525 4,907 2,619 3,716 11,767
2009
Gross claims incurred and movement in liabilities ........... 1,281 4,669 2,676 3,934 12,560
– claims, benefits and surrenders paid ..................... 987 2,098 325 1,818 5,228
– movement in liabilities .......................................... 294 2,571 2,351 2,116 7,332
Reinsurers’ share of claims incurred and
movement in liabilities ............................................ (158) (98) 146 – (110)
– claims, benefits and surrenders paid ..................... (156) (159) (21) – (336)
– movement in liabilities .......................................... (2) 61 167 – 226
1,123 4,571 2,822 3,934 12,450
1 Discretionary participation features.
6 Operating profit
Operating profit is stated after the following items of income, expense, gains and losses:
2011 2010 2009
US$m US$m US$m
Income
Interest recognised on impaired financial assets1 ....................................................... 1,604 516 941
Fees earned on financial assets or liabilities not held for trading nor designated
at fair value, other than fees included in effective interest rate calculations on
these types of assets and liabilities ......................................................................... 11,318 11,445 12,310
Fees earned on trust and other fiduciary activities where HSBC holds
or invests assets on behalf of its customers ........................................................... 3,072 3,074 2,735
Income from listed investments .................................................................................. 8,283 7,418 9,201
Income from unlisted investments .............................................................................. 8,031 7,187 7,085
Losses from the fraud at Bernard L Madoff Investment Securities LLC
(within net trading income) .................................................................................... – – (72)
Gain arising from dilution of interests in associates and joint ventures .................... 208 188 –
Expense
Interest on financial instruments, excluding interest on financial liabilities
held for trading or designated at fair value ............................................................ (20,965) (17,549) (19,737)
Fees payable on financial assets or liabilities not held for trading nor designated
at fair value, other than fees included in effective interest rate calculations on
these types of assets and liabilities ......................................................................... (1,697) (1,529) (1,580)
Fees payable relating to trust and other fiduciary activities where
HSBC holds or invests assets on behalf of its customers ...................................... (182) (151) (116)
UK bank levy .............................................................................................................. (570) – –
Auditors’ remuneration (see Note 8) .......................................................................... (51) (51) (51)
Gains/(losses)
Gain on disposal or settlement of loans and advances ............................................... 116 121 244
Impairment of available-for-sale equity securities ..................................................... (177) (105) (358)
Gains on disposal of property, plant and equipment, intangible assets and
non-financial investments ...................................................................................... 57 701 1,033
Loan impairment charges and other credit risk provisions ................................. (12,127) (14,039) (26,488)
Net impairment charge on loans and advances ...................................................... (11,505) (13,548) (24,942)
Impairment of available-for-sale debt securities .................................................... (631) (472) (1,474)
Release/(impairment) in respect of other credit risk provisions ............................ 9(19) (72)