HSBC 2008 Annual Report Download - page 5

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Capital and performance ratios
2008 2007
% %
Capital ratios1
Tier 1 ratio ......................................................................................................................................... 8.3 9.3
Total capital ratio ............................................................................................................................... 11.4 13.6
Performance ratios
Return on average invested capital3 ................................................................................................... 4.0 15.3
Return on average total shareholders’ equity4 ................................................................................... 4.7 15.9
Post-tax return on average total assets .............................................................................................. 0.26 0.97
Post-tax return on average risk-weighted assets ............................................................................... 0.55 1.95
Credit coverage ratios
Loan impairment charges as a percentage of total operating income ............................................... 27.24 19.61
Loan impairment charges as a percentage of average gross customer advances .............................. 2.46 1.97
Total impairment allowances outstanding as a percentage of impaired loans at the year-end ......... 94.3 98.1
Efficiency and revenue mix ratios
Cost efficiency ratio5
– reported ....................................................................................................................................... 60.1 49.4
– excluding goodwill impairment6 ................................................................................................ 47.2 49.4
As a percentage of total operating income:
– net interest income ..................................................................................................................... 48.1 43.1
– net fee income ............................................................................................................................ 22.6 25.1
– net trading income ...................................................................................................................... 7.4 11.2
Financial ratios
Loans and advances to customers as a percentage of customer accounts ......................................... 83.6 89.5
Average total shareholders’ equity to average total assets ............................................................... 4.87 5.69
Share information at the year-end
2008 2007
US$0.50 ordinary shares in issue (million) ....................................................................................... 12,105 11,829
Market capitalisation (billion) ........................................................................................................... US$114 US$198
Closing market price per ordinary share:
– London ........................................................................................................................................ £6.62 £8.42
– Hong Kong ................................................................................................................................. HK$73.70 HK$131.70
Closing market price per American Depositary Share7 ..................................................................... US$48.67 US$83.71
Over 1 year Over 3 years Over 5 years
HSBC total shareholder return to 31 December 20088 ................................... 84.5 84.5 98.5
Benchmarks:
– FTSE 1009 ................................................................................................ 71.7 88.1 118.3
– MSCI World10 .......................................................................................... 81.8 93.6 123.7
– MSCI Banks11 ........................................................................................... 63.0 60.8 82.7
For footnotes, see page 5.