HSBC 2010 Annual Report Download - page 69

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Overview Operating & Financial Review Governance Financial Statements Shareholder Information
Profit/(loss) before tax by country within customer groups and global businesses
Personal
Financial
Services
US$m
Commercial
Banking
US$m
Global
Banking &
Markets
US$m
Global
Private
Banking
US$m
Other
US$m
Total
US$m
2010
Egypt ................................................................. 38 82 77 – (2) 195
Qatar ................................................................. 19 52 67 – – 138
United Arab Emirates ....................................... 17 186 121 1 (1) 324
Other ................................................................. 19 57 (19) – – 57
Middle East (excluding Saudi Arabia) ............. 93 377 246 1 (3) 714
Saudi Arabia ..................................................... 7 107 71 (16) 9 178
100 484 317 (15) 6 892
2009
Egypt ................................................................. 18 51 97 – 58 224
Qatar ................................................................. 10 60 66 – – 136
United Arab Emirates ....................................... (177) (136) 307 (2) 5 (3)
Other ................................................................. 3 (15) (80) – (3) (95)
Middle East (excluding Saudi Arabia) ............. (146) (40) 390 (2) 60 262
Saudi Arabia ..................................................... 20 61 77 8 27 193
(126) 21 467 6 87 455
2008
Egypt ................................................................. 16 68 90 – 49 223
Qatar ................................................................. 23 33 57 – – 113
United Arab Emirates ....................................... 133 330 388 4 6 861
Other ................................................................. 57 92 104 – 1 254
Middle East (excluding Saudi Arabia) ............. 229 523 639 4 56 1,451
Saudi Arabia ..................................................... 60 35 177 – 23 295
289 558 816 4 79 1,746
Profits increased strongly in the second half of
2010 compared with the first half of the year,
reflecting increased stability in the regional economy
and growing momentum in several of the key
markets.
The improvement in the credit environment and
our risk management actions combined to contribute
to significantly lower loan impairment charges and
other credit risk provisions. The benefit was partly
offset by lower revenues from the run-off of higher
yielding unsecured loans, mainly in the UAE.
Our Premier and Advance customer base
continued to grow in line with our strategy to build
a sustainable wealth-driven, premium-based PFS
business, with Premier attracting 35,000 net new
customers in the year, of whom 19,000 were new to
the Group. During 2010, we launched the Advance
proposition across most of the region and the number
of customers reached 152,000 at 31 December 2010.
The opening of our 100th branch in Egypt is an
example of initiatives to expand our regional
presence.
In CMB, we continued to build on our
competitive advantage in international connectivity.
The increased opportunities to support business and
trade flows between the region and the rest of the
world, particularly mainland China and India, led to
strong trade-related revenues and supported our
market-leading position in this business. As a result,
we gained market share in our key markets and
received several awards for trade services including
‘Leading Trade Services Bank in the Middle East
and North Africa’ which was awarded by Global
Trade Review for the fourth consecutive year.
As part of our continued support to local
internationally-focused businesses, we fully
allocated the pledged US$100m fund to UAE SME
customers engaged in international cross-border
business.
In GB&M we continued to invest in the region
to support existing and anticipated new business and
we now have a fully functional dealing room in Abu
Dhabi and a ‘China desk’ in the UAE to support
‘East-East’ business. We continued to be recognised
as the dominant player in regional bond markets and
won several awards, including ‘Best Investment
Bank in the Middle East’ awarded by Euromoney.