HSBC 2012 Annual Report Download - page 78

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Global businesses > Analysis
76
Analysis by global business
HSBC profit/(loss) before tax and balance sheet data
2012
Retail
Banking
and Wealth
Management
US$m
Commercial
Banking
US$m
Global
Banking
and
Markets
US$m
Global
Private
Banking
US$m
Other73
US$m
Inter–
segment
elimination85
US$m
Total
US$m
Profit before tax
Net interest income/(expense) .... 20,298 10,361 6,960 1,294 (730) (511) 37,672
Net fee income ............................ 7,205 4,470 3,329 1,232 194 – 16,430
Trading income/(expense)
excluding net interest
income .................................... 276 617 3,588 476 (549) – 4,408
Net interest income on
trading activities ..................... 28 16 2,102 14 12 511 2,683
Net trading income/(expense)78 .. 304 633 5,690 490 (537) 511 7,091
Changes in fair value of long-
term debt issued and related
derivatives .............................. – – – – (4,327) – (4,327)
Net income/(expense) from
other financial instruments
designated at fair value ........... 1,893 250 1,094 –(1,136) – 2,101
Net income/(expense) from
financial instruments
designated at fair value ........... 1,893 250 1,094 – (5,463) – (2,226)
Gains less losses from
financial investments .............. 96 22 730 (3) 344 – 1,189
Dividend income ......................... 24 18 148 6 25 – 221
Net earned insurance premiums . 11,191 1,786 25 42 – – 13,044
Gains on disposal of US branch
network, US cards business
and Ping An ............................ 3,735 277 – – 3,012 – 7,024
Other operating income .............. 1,472 536 313 151 5,487 (5,859) 2,100
Total operating income ............ 46,218 18,353 18,289 3,212 2,332 (5,859) 82,545
Net insurance claims86 ................ (12,357) (1,802) (16) (40) – – (14,215)
Net operating income21 ............. 33,861 16,551 18,273 3,172 2,332 (5,859) 68,330
Loan impairment charges and
other credit risk provisions ..... (5,515) (2,099) (670) (27) – – (8,311)
Net operating income ............... 28,346 14,452 17,603 3,145 2,332 (5,859) 60,019
Employee expenses87 .................. (5,532) (2,247) (3,764) (915) (8,033) – (20,491)
Other operating expenses ........... (14,237) (5,351) (6,143) (1,228) (1,336) 5,859 (22,436)
Total operating expenses ............ (19,769) (7,598) (9,907) (2,143) (9,369) 5,859 (42,927)
Operating profit/(loss) .............. 8,577 6,854 7,696 1,002 (7,037) – 17,092
Share of profit in associates
and joint ventures ................... 998 1,681 824 7 47 – 3,557
Profit/(loss) before tax .............. 9,575 8,535 8,520 1,009 (6,990) – 20,649
% % % % % %
Share of HSBC’s profit
before tax ................................ 46.4 41.3 41.3 4.9 (33.9) 100.0
Cost efficiency ratio ................... 58.4 45.9 54.2 67.6 – 62.8
Balance sheet data74
US$m US$m US$m US$m US$m US$m
Loans and advances to
customers (net) ....................... 378,040 288,033 283,842 45,213 2,495 997,623
Total assets ................................. 536,244 363,659 1,942,470 118,440 201,741 (470,016) 2,692,538
Customer accounts ...................... 562,151 338,405 332,115 105,772 1,571 1,340,014