HSBC 2015 Annual Report Download - page 78

Report of the Directors: Geographical regions
Summary / Reconciliations
HSBC HOLDINGS PLC
76
Geographical regions
Summary 76
Reconciliation of 2015 and 2014 reported and adjusted
items for geographical regions 77
Europe 79
Asia 82
Middle East and North Africa 86
North America 89
Latin America 92
Summary
Additional information on results in 2015 may be found in
the Financial Summary on pages 48 to 64.
In the analysis of profit and loss by geographical regions that
follows, operating income and operating expenses include
intra-HSBC items of $3,375m (2014: $2,972m; 2013:
$2,628m).
All tables are on a reported basis unless otherwise stated.
Basis of preparation
The results of the geographical regions are presented in
accordance with the accounting policies used in the preparation
of HSBC's consolidated financial statements. Our operations are
closely integrated, and accordingly, the presentation of the
geographical data includes internal allocation of certain items of
income and expense. These allocations include the costs of
certain support services and global functions to the extent that
they can be meaningfully attributed to geographical regions.
While such allocations have been done on a systematic and
consistent basis, they necessarily involve a degree of subjectivity.
Where relevant, income and expense amounts presented include
the results of inter-segment funding along with inter-company
transactions. All such transactions are undertaken on an arm’s
length basis.
The expense of the UK bank levy is included in the Europe
geographical region as HSBC regards the levy as a cost of being
headquartered in the UK.
Profit/(loss) before tax
2015 2014 2013
$m %$m % $m %
Europe 643 3.4 596 3.2 1,825 8.1
Asia 15,763 83.5 14,625 78.3 15,853 70.3
Middle East and North Africa 1,537 8.1 1,826 9.8 1,694 7.5
North America 614 3.3 1,417 7.6 1,221 5.4
Latin America 310 1.7 216 1.1 1,972 8.7
Year ended 31 December 18,867 100.0 18,680 100.0 22,565 100.0
Total assets30
2015 2014
$m % $m %
Europe 1,129,365 46.9 1,290,926 49.0
Asia 889,747 36.9 878,723 33.4
Middle East and North Africa 59,236 2.5 62,417 2.4
North America 393,960 16.3 436,859 16.6
Latin America 86,262 3.6 115,354 4.4
Intra-HSBC items (148,914) (6.2) (150,140) (5.8)
At 31 December 2,409,656 100.0 2,634,139 100.0
Risk-weighted assets47
2015 2014
$bn % $bn %
At 31 December 1,103.0 100.0 1,219.8 100.0
Europe 337.4 30.6 375.4 30.1
Asia 459.7 41.7 499.8 40.0
Middle East and North Africa 60.4 5.5 63.0 5.0
North America 191.6 17.4 221.4 17.8
Latin America 73.4 6.7 88.8 7.1
For footnotes, see page 99.