HSBC 2012 Annual Report Download - page 84

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Geographical regions > Europe
82
Profit/(loss) before tax by country within global businesses
Retail
Banking
and Wealth
Management
US$m
Commercial
Banking
US$m
Global
Banking
and
Markets
US$m
Global
Private
Banking
US$m
Other
US$m
Total
US$m
2012
UK ........................................................ 343 832 (111) 235 (6,355) (5,056)
France60 ................................................ 135 203 514 (11) (263) 578
Germany .............................................. 29 64 283 40 (72) 344
Malta .................................................... 39 52 31 – – 122
Switzerland .......................................... – 2 1 133 – 136
Turkey .................................................. (32) 71 104 – 1 144
Other .................................................... (5) (16) 164 102 73 318
509 1,208 986 499 (6,616) (3,414)
2011
UK ........................................................ 1,330 1,227 (265) 192 1,037 3,521
France60 ................................................ 69 192 (194) 16 18 101
Germany .............................................. 36 69 203 28 16 352
Malta .................................................... 31 72 21 – – 124
Switzerland .......................................... – (8) – 225 – 217
Turkey .................................................. 7 62 87 2 – 158
Other .................................................... (151) 73 225 94 (43) 198
1,322 1,687 77 557 1,028 4,671
2010
UK ........................................................ 1,181 827 1,772 223 (1,605) 2,398
France60 ................................................ 138 135 376 18 26 693
Germany .............................................. 36 32 231 30 4 333
Malta .................................................... 37 56 17 – – 110
Switzerland .......................................... – (5) – 265 – 260
Turkey .................................................. 64 80 105 1 – 250
Other .................................................... (144) 80 202 103 17 258
1,312 1,205 2,703 640 (1,558) 4,302
For footnote, see page 120.
bonds tightened and investor sentiment improved. In
addition, impairment charges fell due to lower credit
risk provisions in GB&M, notably in the legacy
credit portfolio, and improved delinquency rates in
RBWM in the UK as we continued to improve the
quality of these portfolios with a higher proportion
of secured lending.
We made significant progress in reshaping
our business in Europe. The disposal of non-core
businesses simplified our European portfolio,
allowing us to concentrate resources on businesses
where we can deliver sustainable profits and growth
while managing risks effectively. We exited from
Hungary, Georgia, Slovakia, and RBWM in Russia
and Poland, and sold Property Vision in the UK, our
insurance and reinsurance businesses in Ireland and
the retail equities brokerage in Greece.
During 2012, we made progress with our
restructuring programme to align our businesses
in each country to their respective global business
operating models in order to reduce complexity
and lower our costs in a sustainable way. Total
restructuring costs (including impairment of assets)
of US$299m were incurred across Europe as a
result of organisational effectiveness and other
initiatives, which delivered sustainable cost savings
of approximately US$770m.
In RBWM, we continued to drive strong growth
in mortgage lending in the UK through the success
of our competitive offerings and marketing
campaigns. Our share of new UK mortgage lending
in 2012 was 12%, up from the 10% share of new
lending in 2011, while maintaining a loan-to-value
ratio of 58%. We have approved new mortgage
lending of £19bn (US$32bn) during 2012, compared
with our original lending commitment of £15bn
(US$24bn), with £5bn (US$8bn) approved for first
time buyers. Wealth Management revenue was
marginally lower during the year reflecting the
challenging economic environment. Our Wealth
Management products and services were redesigned
in accordance with the FSA’s Retail Distribution
Review, which was introduced on 1 January 2013,
and we continue to offer a competitive fee-based
financial advice service to Premier customers. The
expansion of the RBWM business continued in