HSBC 2011 Annual Report Download - page 338

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
13 – Segmental analysis
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13 Segmental analysis
HSBC’s operating segments are organised into six geographical regions, Europe, Hong Kong, Rest of Asia-Pacific,
Middle East and North Africa (‘MENA’), North America and Latin America.
Geographical information is classified by the location of the principal operations of the subsidiary or, for The
Hongkong and Shanghai Banking Corporation, HSBC Bank, HSBC Bank Middle East and HSBC Bank USA, by the
location of the branch responsible for reporting the results or advancing the funds.
HSBC’s chief operating decision-maker is the Group Management Board (‘GMB’) which operates as a general
management committee under the direct authority of the Board. Information provided to HSBC’s chief operating
decision-maker to make decisions about allocating resources to, and assessing the performance of, operating
segments is measured in accordance with IFRSs. The financial information shown below includes the effects of intra-
HSBC transactions between operating segments which are conducted on an arm’s length basis and eliminated in a
separate column. Shared costs are included in operating segments on the basis of the actual recharges made.
Products and services
HSBC provides a comprehensive range of banking and related financial services to its customers in its six
geographical regions. The products and services offered to customers are organised by global business.
• Retail Banking and Wealth Management (‘RBWM’) offers a broad range of products and services to meet the
personal banking, consumer finance and wealth management needs of individual customers. Typically, customer
offerings include personal banking products (current and savings accounts, mortgages and personal loans, credit
cards, debit cards and local and international payment services) and wealth management services (insurance and
investment products, global asset management services and financial planning services).
• Commercial Banking (‘CMB’) product offerings include the provision of receivables financing services,
payments and cash management, international trade finance, treasury and capital markets, commercial cards,
insurance, cash and derivatives in foreign exchange and rates, and online and direct banking offerings.
• Global Banking and Markets (‘GB&M’) provides tailored financial solutions to major government, corporate
and institutional clients and private investors worldwide. The client-focused business lines deliver a full range of
banking capabilities including financing, advisory and transaction services; a markets business that provides
services in credit, rates, foreign exchange, money markets and securities services; and principal investment
activities.
• Global Private Banking (‘GPB’) provides a range of services to high net worth individuals and families with
complex and international needs.
With effect from 1 March 2011, our Global Asset Management business was moved from Global Banking and
Markets to Retail Banking and Wealth Management.
Financial information
In the following segmental analysis, the benefit of shareholders’ funds impacts the analysis only to the extent that
these funds are actually allocated to businesses in the segment by way of intra-HSBC capital and funding structures.