HSBC 2014 Annual Report Download - page 137

HSBC BANK PLC
Notes on the Financial Statements (continued)
135
10 Segment analysis
Accounting policy
Measurement of segmental assets, liabilities, income and expenses is in accordance with the group’s accounting
policies. Segmental income and expenses include transfers between segments and these transfers are conducted on
arm’s length terms and conditions. Shared costs are included in segments on the basis of the actual recharges made.
The types of products and services from which each reportable segment derives its revenue are discussed in the ‘Report
of the Directors: Operating and Financial Review – Products and Services’.
Profit/(loss) for the year
Year ended 31 December 2014
RBWM
CMB
GB&M
GPB
Other
Inter-
segment
Total
£m
£m
£m
£m
£m
£m
£m
Net interest income
3,158
2,195
1,180
203
(42)
(65)
6,629
Net fee income
1,356
1,153
643
112
2
–
3,266
Net trading income
(149)
21
1,637
11
24
65
1,609
Other income
(157)
65
219
(2)
340
(83)
382
Net operating income before loan impairment charges and
other credit risk provisions
4,208
3,434
3,679
324
324
(83)
11,886
Loan impairment charges and other credit risk provisions
(162)
(308)
16
4
1
–
(449)
Net operating income
4,046
3,126
3,695
328
325
(83)
11,437
Employee compensation and benefits
(1,020)
(564)
(1,070)
(98)
(1,392)
–
(4,144)
General and administrative expenses1
(2,730)
(940)
(2,582)
(114)
1,472
83
(4,811)
Depreciation and impairment of property, plant and
equipment
(6)
(9)
(2)
(1)
(303)
–
(321)
Amortisation and impairment of intangible assets
(78)
(22)
(61)
–
(50)
–
(211)
Total operating expenses
(3,834)
(1,535)
(3,715)
(213)
(273)
83
(9,487)
Operating profit
212
1,591
(20)
115
52
–
1,950
Share of profit in associates and joint ventures
1
1
1
–
–
–
3
Profit before tax
213
1,592
(19)
115
52
–
1,953
Cost efficiency ratio
91.11%
44.70%
100.98%
65.74%
79.82%
1 The reallocation and recharging of employee and other expenses incurred directly in the ‘Other’ reporting segment is shown in ‘General and
administrative expenses’.
Year ended 31 December 2013
RBWM
CMB
GB&M
GPB
Other
Inter-
segment
Total
£m
£m
£m
£m
£m
£m
£m
Net interest income
3,569
2,144
1,101
224
(73)
(4)
6,961
Net fee income
1,502
1,143
588
100
3
–
3,336
Net trading income
147
23
2,192
10
(22)
23
2,373
Other income
(147)
60
400
(4)
(65)
(74)
170
Net operating income before loan impairment charges and
other credit risk provisions
5,071
3,370
4,281
330
(157)
(55)
12,840
Loan impairment charges and other credit risk provisions
(223)
(601)
(133)
(14)
–
–
(971)
Net operating income
4,848
2,769
4,148
316
(157)
(55)
11,869
Employee compensation and benefits
(1,066)
(554)
(1,067)
(82)
(1,069)
–
(3,838)
General and administrative expenses1
(2,517)
(832)
(1,998)
(93)
1,190
55
(4,195)
Depreciation and impairment of property, plant and
equipment
(7)
(10)
(3)
(1)
(310)
–
(331)
Amortisation and impairment of intangible assets
(83)
(41)
(54)
–
(33)
–
(211)
Total operating expenses
(3,673)
(1,437)
(3,122)
(176)
(222)
55
(8,575)
Operating profit
1,175
1,332
1,026
140
(379)
–
3,294
Share of profit in associates and joint ventures
2
1
(3)
–
–
–
–
Profit before tax
1,177
1,333
1,023
140
(379)
–
3,294
Cost efficiency ratio
72.43%
42.64%
72.93%
53.33%
66.78%
1 The reallocation and recharging of employee and other expenses incurred directly in the ‘Other’ reporting segment is shown in ‘General and
administrative expenses’.