HSBC 2008 Annual Report Download - page 392

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Note 14
390
Profit before tax
Year ended 31 December 2008
Personal
Financial
Services
Commercial
Banking
Global
Banking
& Markets
Private
Banking Other
Intra-
HSBC
items Total
US$m US$m US$m US$m US$m US$m US$m
Net interest income/(expense) .... 29,419 9,494 8,541 1,612 (956) (5,547) 42,563
Net fee income ............................ 10,107 4,097 4,291 1,476 53 – 20,024
Trading income/(expense)
excluding net interest
income .................................... 175 369 157 408 (262) – 847
Net interest income/(expense)
on trading activities ................ 79 17 324 14 (268) 5,547 5,713
Net trading income/(expense) ..... 254 386 481 422 (530) 5,547 6,560
Changes in fair value of long-
term debt issued and related
derivatives .............................. – – – – 6,679 – 6,679
Net income/(expense) from
other financial instruments
designated at fair value ........... (2,912) (224) (438) – 747 – (2,827)
Net income/(expense) from
financial instruments
designated at fair value ........... (2,912) (224) (438) – 7,426 – 3,852
Gains less losses from financial
investments ............................. 663 193 (327) 64 (396) – 197
Dividend income ......................... 90 88 76 8 10 – 272
Net earned insurance premiums ... 10,083 679 105 – (17) – 10,850
Gains on disposal of French
regional banks ........................ – – – – 2,445 – 2,445
Other operating income .............. 259 939 868 49 4,261 (4,568) 1,808
Total operating income ............ 47,963 15,652 13,597 3,631 12,296 (4,568) 88,571
Net insurance claims incurred
and movement in liabilities
to policyholders ...................... (6,474) (335) (79) – (1) – (6,889)
Net operating income1 ............... 41,489 15,317 13,518 3,631 12,295 (4,568) 81,682
Loan impairment charges and othe
r
credit risk provisions .............. (21,220) (2,173) (1,471) (68) (5) – (24,937)
Net operating income2 .............. 20,269 13,144 12,047 3,563 12,290 (4,568) 56,745
Operating expenses (excluding
goodwill impairment) ............. (21,140) (6,581) (9,092) (2,116) (4,174) 4,568 (38,535)
Goodwill impairment .................. (10,564) – – – – – (10,564)
Operating profit/(loss) .............. (11,435) 6,563 2,955 1,447 8,116 – 7,646
Share of profit in associates
and joint ventures ................... 461 631 528 – 41 – 1,661
Profit/(loss) before tax .............. (10,974) 7,194 3,483 1,447 8,157 – 9,307
Capital expenditure incurred3 ..... 1,901 536 1,115 61 759 4,372
1 Net operating income before loan impairment charges and other credit risk provisions.
2 Net operating income:
External .................................. 15,023 13,080 17,739 2,231 8,672 – 56,745
Inter-segment .......................... 5,246 64 (5,692) 1,332 3,618 (4,568) –
3 Expenditure incurred on property, plant and equipment and intangible assets.