28th Feb 2005 08:00
HSBC Holdings PLC28 February 2005 8. Analysis of fees and commissions receivable and payable 2004 Half-year ended 2003 Half-year endedFigures in US$m 30Jun 31Dec 2004 30Jun 31Dec 2003 Account services 1,336 1,443 2,779 1,089 1,228 2,317Credit facilities 579 600 1,179 465 501 966Remittances 166 187 353 138 150 288Cards 1,837 1,945 3,782 1,119 1,857 2,976Imports/Exports 332 360 692 285 324 609Underwriting 117 117 234 99 76 175Insurance 586 591 1,177 455 506 961Mortgage servicing rights 39 41 80 36 39 75Trust income 99 105 204 72 73 145Broking income 517 441 958 379 494 873Global custody 279 285 564 151 187 338Maintenance income on operating leases 95 95 190 84 87 171Funds under management 788 710 1,498 523 573 1,096Unit trusts 297 203 500 206 152 358Corporate finance 100 93 193 81 108 189Other 762 732 1,494 452 571 1,023Total fees and commissions receivable 7,929 7,948 15,877 5,634 6,926 12,560Less: fees payable (1,352) (1,432) (2,784) (984) (1,182) (2,166) Net fees and commissions 6,577 6,516 13,093 4,650 5,744 10,394 9. Geographical distribution of results HSBC European Operations 2004 Half-year ended 2003 Half-year endedFigures in US$m 30 Jun 31Dec 2004 30Jun 31Dec 2003 Net interest income 4,313 4,749 9,062 3,508 4,032 7,540 Dividend income 294 251 545 106 44 150Net fees and commissions 3,047 3,248 6,295 2,446 2,746 5,192Dealing profits 511 442 953 531 429 960Other income 798 794 1,592 570 683 1,253Other operating income 4,650 4,735 9,385 3,653 3,902 7,555 Operating income 8,963 9,484 18,447 7,161 7,934 15,095 Staff costs (3,222) (3,361) (6,583) (2,632) (2,944) (5,576)Premises and equipment (591) (644) (1,235) (506) (552) (1,058)Other (1,284) (1,459) (2,743) (950) (1,118) (2,068)Depreciation and amortisation (excluding goodwill) (477) (532) (1,009) (396) (431) (827)Goodwill amortisation (447) (500) (947) (376) (382) (758)Operating expenses (6,021) (6,496) (12,517) (4,860) (5,427) (10,287) Operating profit before provisions 2,942 2,988 5,930 2,301 2,507 4,808 Customers:- new specific provisions (895) (1,154) (2,049) (551) (934) (1,485)- releases and recoveries 459 404 863 207 286 493 (436) (750) (1,186) (344) (648) (992)- net general release 13 148 161 1 117 118Total bad and doubtful debt charge (423) (602) (1,025) (343) (531) (874) Provisions for contingent liabilities and commitments (79) 67 (12) (17) (16) (33) Amounts written off fixed asset investments (10) (10) (20) (46) (18) (64)Operating profit 2,430 2,443 4,873 1,895 1,942 3,837 Share of operating (loss) / profit in joint ventures 4 1 5 (132) 5 (127) Share of operating profits in associates 21 33 54 18 29 47 Investment and fixed asset disposal gains 165 128 293 88 124 212 Profit before tax 2,620 2,605 5,225 1,869 2,100 3,969 HSBC Hong Kong Operations 2004 Half-year ended 2003 Half-year endedFigures in US$m 30 Jun 31Dec 2004 30Jun 31Dec 2003Net interest income 1,780 1,859 3,639 1,991 1,910 3,901 Dividend income 17 2 19 15 16 31Net fees and commissions 904 822 1,726 647 736 1,383Dealing profits 360 270 630 186 135 321Other income 373 408 781 274 322 596Other operating income 1,654 1,502 3,156 1,122 1,209 2,331 Operating income 3,434 3,361 6,795 3,113 3,119 6,232 Staff costs (714) (701) (1,415) (611) (665) (1,276)Premises and equipment (121) (135) (256) (109) (131) (240)Other (274) (379) (653) (214) (288) (502)Depreciation andamortisation (excluding goodwill) (97) (103) (200) (98) (96) (194)Goodwill amortisation (4) (5) (9) (3) - (3)Operating expenses (1,210) (1,323) (2,533) (1,035) (1,180) (2,215) Operating profit before provisions 2,224 2,038 4,262 2,078 1,939 4,017 Customers:- new specific provisions (7) (238) (245) (389) (266) (655)- releases and recoveries 25 219 244 107 117 224 18 (19) (1) (282) (149) (431)- net general release/(charge) 205 19 224 (21) 52 31Total bad and doubtful debt release/ (charge) 223 - 223 (303) (97) (400) Provisions for contingent liabilities and commitments (6) 3 (3) (3) (3) (6) Amounts written back/(off) fixed asset investments 27 (1) 26 5 26 31Operating profit 2,468 2,040 4,508 1,777 1,865 3,642 Share of operating profit/(loss) in associates (2) 10 8 6 12 18 Investments and fixed asset disposal gains 110 118 228 57 11 68 Profit before tax 2,576 2,168 4,744 1,840 1,888 3,728 HSBC Rest of Asia-Pacific Operations 2004 Half-year ended 2003 Half-year endedFigures in US$m 30Jun 31Dec 2004 30Jun 31Dec 2003Net interest income 984 1,071 2,055 840 900 1,740 Dividend income 1 2 3 3 1 4Net fees and commissions 506 551 1,057 363 442 805Dealing profits 265 229 494 231 190 421Other income 81 114 195 56 64 120Other operating income 853 896 1,749 653 697 1,350 Operating income 1,837 1,967 3,804 1,493 1,597 3,090 Staff costs (520) (584) (1,104) (427) (525) (952)Premises and equipment (89) (94) (183) (80) (84) (164)Other (302) (387) (689) (235) (292) (527)Depreciation and amortisation (excluding goodwill) (51) (53) (104) (47) (51) (98)Goodwill amortisation (34) (34) (68) (19) (16) (35)Operating expenses (996) (1,152) (2,148) (808) (968) (1,776) Operating profit before provisions 841 815 1,656 685 629 1,314 Customers:- new specific provisions (41) (377) (418) (181) (231) (412)- releases and recoveries 33 237 270 151 192 343 (8) (140) (148) (30) (39) (69)- net general release /(charge) 18 30 48 4 (20) (16)Total bad and doubtful debt (charge)/ release 10 (110) (100) (26) (59) (85) Provisions for contingent liabilities and commitments (14) 14 - (4) 3 (1) Amounts written off fixed asset investments - - - - (2) (2) Operating profit 837 719 1,556 655 571 1,226 Share of operating profit in associates 96 136 232 65 84 149 Investments and fixed asset disposal gains 6 11 17 14 2 16 Profit before tax 939 866 1,805 734 657 1,391 HSBC North American Operations 2004 Half-year ended 2003 Half-year endedFigures in US$m 30Jun 31Dec 2004 30Jun 31Dec 2003Net interest income 7,410 7,503 14,913 4,630 7,147 11,777 Dividend income 16 16 32 22 12 34Net fees and commissions 1,905 1,630 3,535 1,044 1,632 2,676Dealing profits 221 218 439 238 102 340Other income 556 602 1,158 424 508 932Other operating income 2,698 2,466 5,164 1,728 2,254 3,982 Operating income 10,108 9,969 20,077 6,358 9,401 15,759 Staff costs (2,285) (2,445) (4,730) (1,593) (2,130) (3,723)Premises and equipment (415) (463) (878) (319) (426) (745)Other (1,373) (1,588) (2,961) (936) (1,305) (2,241)Depreciation and amortisation (excluding goodwill) (154) (164) (318) (106) (132) (238)Goodwill amortisation (372) (389) (761) (231) (412) (643)Operating expenses (4,599) (5,049) (9,648) (3,185) (4,405) (7,590) Operating profit before provisions 5,509 4,920 10,429 3,173 4,996 8,169 Customers:- new specific provisions (2,786) (3,091) (5,877) (1,835) (3,127) (4,962)- releases and recoveries 274 416 690 143 279 422 (2,512) (2,675) (5,187) (1,692) (2,848) (4,540)- net general (charge)/release 40 (39) 1 22 (158) (136)Total bad and doubtful debt charge (2,472) (2,714) (5,186) (1,670) (3,006) (4,676) Provisions for contingent liabilities and commitments 1 (43) (42) 2 1 3Amounts written off fixed asset investments - - - (4) (5) (9)Operating profit 3,038 2,163 5,201 1,501 1,986 3,487Share of operating profit in joint ventures - - - 8 3 11 Share of operating profit/(loss) in associates 4 (12) (8) 3 3 6 Investments and fixed assets disposal gains 57 169 226 90 19 109 Profit before tax 3,099 2,320 5,419 1,602 2,011 3,613 HSBC South American Operations 2004 Half-year ended 2003 Half-year endedFigures in US$m 30Jun 31Dec 2004 30Jun 31Dec 2003Net interest income 619 736 1,355 252 388 640 Dividend income 1 1 2 1 2 3Net fees and commissions 215 265 480 150 188 338Dealing profits 26 24 50 72 64 136Other income 104 103 207 107 94 201Other operating income 346 393 739 330 348 678 Operating income 965 1,129 2,094 582 736 1,318 Staff costs (303) (357) (660) (230) (354) (584)Premises and equipment (80) (94) (174) (55) (69) (124)Other (243) (306) (549) (127) (200) (327)Depreciation and amortisation (excluding goodwill) (27) (34) (61) (19) (21) (40)Goodwill amortisation (26) (3) (29) (3) (8) (11)Operating expenses (679) (794) (1,473) (434) (652) (1,086) Operating profit before provisions 286 335 621 148 84 232 Customers:- new specific provisions (177) (223) (400) (133) (130) (263)- releases and recoveries 30 99 129 32 49 81 (147) (124) (271) (101) (81) (182)- net general release/ (charge) 6 (4) 2 69 55 124Total bad and doubtful debt charge (141) (128) (269) (32) (26) (58) Provisions for contingent liabilities (11) 41 30 (34) 27 (7) Amounts written off fixed asset investments (1) (5) (6) (15) (47) (62) Operating profit 133 243 376 67 38 105 Share of operating profit in associates - 1 1 - 1 1Investments and fixed assets disposal gains 1 37 38 - 9 9Profit before tax 134 281 415 67 48 115 10. Registers of shareholders The Overseas Branch Register of shareholders in Hong Kong will be closed for oneday, on Friday 18 March 2005. Any person who has acquired shares registered onthe Hong Kong Branch Register but who has not lodged the share transfer with theHong Kong Branch Registrar should do so before 4.00 pm on Thursday 17 March 2005in order to receive the fourth interim dividend for 2004. Transfers may not bemade to or from the Hong Kong Overseas Branch Register while that BranchRegister is closed. Any person who has acquired shares registered on the Principal Register in theUnited Kingdom but who has not lodged the share transfer with the PrincipalRegistrar should do so before 4.00 pm on Friday 18 March 2005 in order toreceive the dividend. Any person who has acquired shares registered on the Overseas Branch Register ofshareholders in Bermuda but who has not lodged the share transfer with theBermuda Branch Registrar should do so before 4.00 pm on Friday 18 March 2005 inorder to receive the dividend. Transfers of American Depositary Shares should be lodged with the depositary by12 noon on Friday 18 March 2005 in order to receive the dividend. 11. Foreign currency amounts The sterling and Hong Kong dollar equivalent figures in the consolidated profitand loss account and balance sheet are for information only. These aretranslated at the average rate for the period for the profit and loss accountand the closing rate for the balance sheet as follows: Period end 31Dec04 31Dec03 Closing : HK$/US$ 7.773 7.763 £/US$ 0.517 0.560 Average : HK$/US$ 7.789 7.787 £/US$ 0.546 0.612 12. Litigation HSBC, through a number of its subsidiary undertakings, is named in and isdefending legal actions in various jurisdictions arising from its normalbusiness. None of these proceedings is regarded as material litigation. 13. Dealings in HSBC Holdings shares Except for dealings as intermediaries by HSBC Bank plc, HSBC CCF FinancialProducts (France) SNC and The Hongkong and Shanghai Banking Corporation Limited,which are members of a European Economic Area exchange in market-making andother dealing activities, neither the Company nor any subsidiary undertaking hasbought, sold or redeemed any securities of the Company during the year ended 31December 2004. 14. Statutory accounts The information in this news release does not constitute statutory accountswithin the meaning of Section 240 of the Companies Act 1985 (the Act). Thestatutory accounts for the year ended 31 December 2004 will be delivered to theRegistrar of Companies in England and Wales in accordance with Section 242 ofthe Act and filed with the US Securities and Exchange Commission. The auditorhas reported on those accounts; the report was unqualified and did not contain astatement under Section 237(2) or (3) of the Act. 15. Forward-looking statements This news release contains certain forward-looking statements with respect tothe financial condition, results of operations and business of the Group. Theseforward-looking statements represent the Group's expectations or beliefsconcerning future events and involve known and unknown risks and uncertaintythat could cause actual results, performance or events to differ materially fromthose expressed or implied in such statements. Certain statements, such as thosethat include the words 'potential', 'estimated', and similar expressions orvariations on such expressions may be considered 'forward-looking statements'. 16. Corporate governance HSBC is committed to high standards of corporate governance. Throughout 2004,HSBC Holdings has complied with the code provisions of the Combined Code oncorporate governance appended to the Listing Rules of the Financial ServicesAuthority and with the provisions of Appendix 14 to the Rules Governing theListing of Securities on The Stock Exchange of Hong Kong Limited. Appendix 14 to the Rules Governing the Listing of Securities on The StockExchange of Hong Kong Limited was substantially revised during 2004. The newprovisions of Appendix 14 will apply for subsequent reporting periods. The members of the Board of Directors of HSBC Holdings plc are:Sir John Bond, Baroness Dunn*, Sir Brian Moffat+, S K Green, A W Jebson, W FAldinger, Lord Butler+, R K F Ch'ien+, D G Eldon, R A Fairhead+, D J Flint, W KL Fung+, M F Geoghegan, S Hintze+, Sir John Kemp-Welch+, Sir Mark Moody-Stuart+,S W Newton+, H Sohmen*, C S Taylor+ and Sir Brian Williamson+. J D Coombe+ and J W J Hughes-Hallett+ have been appointed Directors with effect from 1 March 2005. * Non-executive Director+ Independent non-executive director The Group Audit Committee has reviewed the annual results for 2004. 17. Annual Review and Annual Report and Accounts The Annual Review 2004 and/or Annual Report and Accounts 2004 will be mailed toshareholders on or about 31 March 2005. Copies may be obtained from GroupCorporate Affairs, HSBC Holdings plc, 8 Canada Square, London E14 5HQ, UnitedKingdom; Group Public Affairs, The Hongkong and Shanghai Banking CorporationLimited, 1 Queen's Road Central, Hong Kong; Group Public Affairs, HSBC Bank USA N.A., 452 Fifth Avenue, New York, NY 10018, USA; CCF, Direction de la Communication,109 avenue des Champs-Elysees, 75419 Paris Cedex 08, France; or from the HSBCGroup website - www.hsbc.com. Chinese translations of the Annual Review and Annual Report and Accounts may beobtained on request from Computershare Hong Kong Investor Services Limited,Hopewell Centre, 46th Floor, 183 Queen's Road East, Wan Chai, Hong Kong. A French translation of the Annual Review may be obtained on request from CCF,Direction de la Communication, 109 avenue des Champs-Elysees, 75419 Paris Cedex08, France. The Annual Report and Accounts and Annual Review will be available on the StockExchange of Hong Kong's website - www.hkex.com.hk. Custodians or nominees that wish to distribute copies of the Annual Review and/or Annual Report and Accounts to their clients may request copies for collectionby writing to Group Corporate Affairs at the address given above. Requests mustbe received no later than 7 March 2005. 18. Annual General Meeting The Annual General Meeting of the Company will be held at the Barbican Hall,Barbican Centre, London EC2 on Friday 27 May 2005 at 11 a.m. Notice of the meeting will be mailed to shareholders on or about 31 March 2005. 19. Interim results for 2005 The interim results for the six months to 30 June 2005 will be announced onMonday 1 August 2005. 20. Proposed dividends for 2005 The Board has adopted a policy of paying quarterly dividends. Under this policyit is intended to have a pattern of three equal interim dividends with avariable fourth interim dividend. It is envisaged that the first interimdividend in respect of 2005 will be US$0.14 per share. The proposed timetablesfor the dividends in respect of 2005 are: First interim dividend for 2005 Announcement 3 May 2005 Shares quoted ex-dividend in London, Hong Kong and Bermuda;American Depositary Shares quoted ex-dividend in New York 18 May 2005 Record date and closure of Hong KongOverseas Branch Register of shareholders for one day 20 May 2005 Shares quoted ex-dividend in Paris 23 May 2005 Payment date 6 July 2005 Second interim dividend for 2005 Announcement 1 August 2005 Shares quoted ex-dividend in London, Hong Kong and Bermuda;American Depositary Shares quoted ex-dividend in New York 17 August 2005 Record date and closure of Hong KongOverseas Branch Register of shareholders for one day 19 August 2005 Shares quoted ex-dividend in Paris 22 August 2005 Payment date 5 October 2005 Third interim dividend for 2005 Announcement 7 November 2005 American Depositary Shares quoted ex-dividend in New York 22 November 2005 Shares quoted ex-dividend in London, Hong Kong and Bermuda 23 November 2005 Record date and closure of Hong KongOverseas Branch Register of shareholders for one day 25 November 2005 Shares quoted ex-dividend in Paris 28 November 2005 Payment date 19 January 2006 Fourth interim dividend for 2005 Announcement 6 March 2006 Shares quoted ex-dividend in London, Hong Kong and Bermuda;American Depositary Shares quoted ex-dividend in New York 22 March 2006 Record date and closure of Hong KongOverseas Branch Register of shareholders for one day 24 March 2006 Shares quoted ex-dividend in Paris 27 March 2006 Payment date 11 May 2006 21. News release Copies of this news release may be obtained from Group Corporate Affairs, HSBCHoldings plc, 8 Canada Square, London E14 5HQ, United Kingdom; Group Public Affairs, The Hongkong and Shanghai Banking Corporation Limited, 1 Queen's Road Central, Hong Kong; HSBC Bank USA N.A., 452 Fifth Avenue, New York, NY 10018, USA; CCF, Direction de la Communication, 109 avenue des Champs-Elysees, 75419 Paris Cedex 08, France. Thenews release will also be available on the HSBC Group website - www.hsbc.com. 22. For further information contact: London Hong KongMichael Broadbent David HallDirector of Group Corporate Affairs Head of Group Public Affairs (Asia)Telephone: +44 20 7991 8980 Telephone : +852 2822 1133 Richard Beck Gareth HewettHead of Group External Relations Senior External Relations ManagerTelephone: +44 20 7991 0633 Telephone: +852 2822 4929 Patrick McGuinnessSenior Manager Investor RelationsTelephone: +44 20 7992 1938 New York ParisLinda Stryker-Luftig Chantal NedjibSenior Vice President Managing Director, Corporate CommunicationsGroup Public Affairs Telephone: +33 1 40 70 7729Telephone: +1 212 525 3800 Gilberte Lombard Investor Relations Director Telephone: +33 1 40 70 2257 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
HSBC Holdings