HSBC 2005 Annual Report Download - page 81

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operations launched in Dubai in 2005 and Malaysia
in 2004, boosted asset growth in the region. Net new
money of US$2.3 billion was 22 per cent higher than
last year, with inflows strongest in Singapore and
Japan.
Operating expenses increased by only 6 per cent,
leading to a 5 percentage point improvement in the
cost efficiency ratio. Front office recruitment in most
countries contributed to a small increase in staff
costs, and expenditure on marketing and
administrative expenses rose to support business
growth.
In Other, the Group’s Service Centres continued
to expand to support HSBC’s productivity
improvements, incurring US$129 million of
incremental costs, offset by higher recharges to other
customer groups. Higher interest rates led to
increased earnings on centrally held investments. In
Thailand, the sale of a residential property led to a
gain of US$11 million and in India, litigation
provisions raised in 2004 were not repeated.