HSBC 2012 Annual Report Download - page 119

11 7
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
Disposals, held for sale and run-off
portfolios
In implementing our strategy, we have sold or agreed
to sell a number of businesses and investments
across the Group. We expect these disposals to have
a significant effect on both the revenue and the
profitability of the geographical regions in the future.
In addition, significant portfolios are being run
down. We expect the losses on these portfolios to
continue to affect the geographical regions in the
future.
The table below presents the contribution of
these businesses and investments to the historical
results of geographical regions. We do not expect the
historical results to be indicative of future results
because of disposal or run-off. Fixed allocated costs,
included in total operating costs, will not necessarily
be removed upon disposal and have been separately
identified on page 53.
Summary income statements for disposals, held for sale and run-off portfolios69,70
2012
Europe Hong Kong
Rest of
Asia-Pacific MENA
North
America
Latin
America
US$m US$m US$m US$m US$m US$m
Net interest income ............................ (54) 15 40 31 4,051 372
Net fee income/(expense) .................. (4) (45) (3) 10 401 30
Net trading income/(expense) ........... 68 (6) 5 54 (186) 27
Net income/(expense) from financial
instruments designated at
fair value ....................................... 10 – 5 – (785) 3
Gains less losses from financial
investments ................................... (70) – – – 26 7
Dividend income ................................ – – – – 3 –
Net earned insurance premiums ........ 1 229 133 – 190 192
Other operating income/(expense) .... (1) – 17 – 29 11
Total operating income/(expense) .. (50) 193 197 95 3,729 642
Net insurance claims incurred
and movement in liabilities
to policyholders ............................. (1) (119) (95) – (138) (90)
Net operating income/(expense)21 ..... (51) 74 102 95 3,591 552
Loan impairment charges and
other credit risk provisions ........... (167) – – (2) (2,919) (64)
Net operating income/(expense) ..... (218) 74 102 93 672 488
Total operating expenses ................... (66) (37) (122) (47) (2,104) (371)
Operating profit/(loss) ..................... (284) 37 (20) 46 (1,432) 117
Share of profit in associates
and joint ventures ......................... 2 9 772 – 2 1
Profit/(loss) before tax...................... (282) 46 752 46 (1,430) 118
By global business
Retail Banking and Wealth
Management ................................. 2 27 612 10 (656) 41
Commercial Banking ......................... – 13 91 – 9 42
Global Banking and Markets ............. (283) 6 57 36 2 54
Global Private Banking ..................... (1) – (8) – – –
Other .................................................. – – – – (785) (19)
Profit/(loss) before tax ....................... (282) 46 752 46 (1,430) 118
Net gain/(loss) on sale ....................... (3) 375 3,317 (85) 4,095 40
For footnotes, see page 120.