HSBC 2013 Annual Report Download - page 23

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21
Operating expenses Quarter ended
31 December
2013
$m
31 December
2012
$m
30 September
2013
$m
Employee compensation and benefits .................................................. 146 152 154
General and administrative expenses ................................................... 112 109 105
Depreciation of property, plant and equipment .................................... 98 8
Amortization and impairment of intangible assets ................................. 38 4
Total operating expenses ...................................................................... 270 277 271
Total operating expenses for the fourth quarter
of 2013 were $270m, a decrease of $7m, or 3%,
compared with the fourth quarter of 2012 and broadly
unchanged compared with the third quarter of 2013.
Total operating expenses decreased compared with
the same quarter last year notably as a result of our
on-going organizational effectiveness programs,
which resulted in sustainable cost savings of $9m
in the current quarter. Right sizing operations of the
bank’s consumer finance business further contributed
to the decrease in total operating expenses.
Share of profit in associates
Share of profit in associates for the fourth quarter of 2013
was $17m, an increase of $15m and $8m respectively,
compared with the fourth quarter of 2012 and the third
quarter of 2013. Share of profit in associates was higher
due to an increase in value of the bank’s investment in
private equity funds.
Income tax expense
The effective tax rate in the fourth quarter of 2013 was
21.8%, compared with 29.5% in the fourth quarter of
2012 and 26.5% in the third quarter of 2013. Income tax
expense in the fourth quarter of 2013 included a reversal
of an overprovision resulting in a lower effective tax rate.