HSBC 2015 Annual Report Download - page 73

HSBC HOLDINGS PLC
71
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
Global Banking and Markets
GB&M supports major government,
corporate and institutional clients worldwide
in achieving their long-term strategic goals
through tailored and innovative solutions.
GB&M
client-
Total
GB&M Legacy
facing
and BSM
$m $m $m
2015
Net interest income 6,931 127 6,804
Net fee income/(expense) 3,375 (11) 3,386
Net trading income40 7,169 9 7,160
Other income/(expense)33 758 (64) 822
Net operating income1 18,233 61 18,172
LICs34 − 37 (37)
Net operating income 18,233 98 18,135
Total operating expenses (10,834) (103) (10,731)
Operating profit/(loss) 7,399 (5) 7,404
Income from associates35 511
Profit/(loss) before tax 7,910
RoRWA24 1.6%
–
1.8%
2014
Net interest income/(expense) 7,022 (172) 7,194
Net fee income/(expense) 3,560 (7) 3,567
Net trading income/(expense)40 5,861 (55) 5,916
Other income33 1,335 232 1,103
Net operating income/
(expense)1
17,778 (2) 17,780
LICs34 (365) 349 (714)
Net operating income 17,413 347 17,066
Total operating expenses (12,028) (708) (11,320)
Operating profit/(loss) 5,385 (361) 5,746
Income from associates35 504
Profit/(loss) before tax 5,889
RoRWA24 1.2% (0.8%) 1.3%
2013
Net interest income 6,766 38 6,728
Net fee income/(expense) 3,482 (7) 3,489
Net trading income40 6,780 198 6,582
Other income/(expense)33 2,148 (80) 2,228
Net operating income1 19,176 149 19,027
LICs34 (207) 206 (413)
Net operating income 18,969 355 18,614
Total operating expenses (9,960) (170) (9,790)
Operating profit 9,009 185 8,824
Income from associates35 432
Profit before tax 9,441
RoRWA24 2.3% 0.6% 2.5%
For footnotes, see page 99.
The GB&M client-facing and Balance Sheet Management (‘BSM’)
businesses measure excludes the effects of the legacy credit portfolio
and income from associates. This allows GB&M management to
identify more readily the cause of material changes from year to year
in the ongoing businesses and assess the factors and trends that are
expected to have a material effect on the businesses in future years.
Management view of adjusted revenue
2015
$m
2014
$m
Total operating income1
Markets41 6,882 5,775
–
Legacy credit 61 (16)
–
Credit 659 532
–
Rates 1,638 1,419
–
Foreign Exchange 2,918 2,722
–
Equities 1,606 1,118
1606
1118
Capital Financing 3,789 3,777
Payments and Cash Management 1,801 1,680
Securities Services 1,698 1,589
Global Trade and Receivables Finance 718 701
Balance Sheet Management 2,943 2,845
Principal Investments 243 498
Other42 (40) (55)
Year ended 31 December 18,034 16,810
For footnotes, see page 99.
Profit before tax ($m)
Revenue ($m)
Operating expenses ($m)
For details of significant items, see page 66.
7,910
5,889
836 8,746
(435)
2,224 7,678
2015 2014
18,233 17,778
(199)
18,034
(1,296)
328 16,810
2015 2014
10,834
12,028
(1,035)
9,799 (782)
(1,896)
9,350
2015 2014
Reported Currency translation Adjusted
Significant items