HSBC 2011 Annual Report Download - page 88

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Geographical regions > North America
86
Profit/(loss) before tax and balance sheet data – North America
2011
Retail
Banking
and Wealth
Management
US$m
Commercial
Banking
US$m
Global
Banking
and
Markets
US$m
Global
Private
Banking
US$m
Other
US$m
Inter-
segment
elimination64
US$m
Total
US$m
Profit/(loss) before tax
Net interest income ..................... 8,931 1,528 893 187 9 (68) 11,480
Net fee income/(expense) ........... 1,836 551 773 149 (1) – 3,308
Trading income/(expense)
excluding net interest income (946) 34 261 17 (26) – (660)
Net interest income/(expense)
on trading activities ................ 25 1 205 –(1) 68 298
Net trading income/(expense)56 .. (921) 35 466 17 (27) 68 (362)
Changes in fair value of long-
term debt issued and related
derivatives .............................. – – – – 967 – 967
Net income/(expense) from
other financial instruments
designated at fair value ........... – – (5) –2 – (3)
Net income/(expense) from
financial instruments
designated at fair value ........... – – (5) – 969 – 964
Gains less losses from
financial investments .............. 58 7 195 – 2 – 262
Dividend income ......................... 15 9 13 3 – – 40
Net earned insurance premiums . 236 – – – – – 236
Other operating income .............. (125) 110 193 11 2,244 (2,207) 226
Total operating income ............ 10,030 2,240 2,528 367 3,196 (2,207) 16,154
Net insurance claims65 ................ (154) – – – – – (154)
Net operating income52 ............. 9,876 2,240 2,528 367 3,196 (2,207) 16,000
Loan impairment (charges)/
recoveries and other
credit risk provisions .............. (6,929) (105) (11) 30 (1) – (7,016)
Net operating income ............... 2,947 2,135 2,517 397 3,195 (2,207) 8,984
Total operating expenses ............ (5,615) (1,166) (1,642) (307) (2,396) 2,207 (8,919)
Operating profit/(loss) .............. (2,668) 969 875 90 799 – 65
Share of profit/(loss) in
associates and joint ventures .. 3 33 – – (1) – 35
Profit/(loss) before tax .............. (2,665) 1,002 875 90 798 – 100
% % % % % %
Share of HSBC’s profit
before tax ................................ (12.2) 4.6 4.0 0.4 3.7 0.5
Cost efficiency ratio ................... 56.9 52.1 65.0 83.7 75.0 55.7
Balance sheet data49
US$m US$m US$m US$m US$m US$m
Loans and advances to customers
(net) reported in:
– loans and advances to
customers (net) .................... 86,490 32,215 19,289 4,753 – 142,747
– assets held for sale
(disposal groups) ................. 31,058 520 – – – 31,578
Total assets ................................. 144,278 43,747 320,783 7,138 10,378 (22,022) 504,302
Customer accounts reported in:
– customer accounts ............... 63,558 47,003 30,465 14,862 94 155,982
– liabilities of disposal
groups held for sale ............. 10,104 5,040 – – – 15,144