4th Aug 2008 18:17
Private Banking
|
Profit before tax |
||||||
|
Half-year to |
||||||
|
30 June 2008 |
30 June 2007 |
31 December 2007 |
||||
|
US$m |
US$m |
US$m |
||||
|
Net interest income |
783 |
567 |
649 |
|||
|
Net fee income |
814 |
811 |
804 |
|||
|
Trading income excluding net interest income |
211 |
255 |
270 |
|||
|
Net interest income on trading activities |
7 |
4 |
5 |
|||
|
Net trading income7 |
218 |
259 |
275 |
|||
|
Net income/(expense) from financial instruments designated at fair value |
1 |
- |
(1) |
|||
|
Gains less losses from financial investments |
80 |
45 |
74 |
|||
|
Dividend income |
4 |
5 |
2 |
|||
|
Other operating income |
16 |
31 |
27 |
|||
|
Total operating income |
1,916 |
1,718 |
1,830 |
|||
|
Net insurance claims8 |
- |
- |
- |
|||
|
Net operating income4
|
1,916 |
1,718 |
1,830 |
|||
|
Loan impairment (charges)/recoveries and other credit risk provisions |
4 |
(9) |
(5) |
|||
|
Net operating income |
1,920 |
1,709 |
1,825 |
|||
|
Total operating expenses |
(1,098) |
(929) |
(1,096) |
|||
|
Operating profit |
822 |
780 |
729 |
|||
|
Share of profit in associates and joint ventures |
- |
- |
2 |
|||
|
Profit before tax |
822 |
780 |
731 |
|||
|
By geographical region |
||||||
|
Europe |
579 |
493 |
422 |
|||
|
Hong Kong |
123 |
161 |
144 |
|||
|
Rest of Asia-Pacific |
54 |
56 |
36 |
|||
|
North America |
58 |
60 |
114 |
|||
|
Latin America |
8 |
10 |
15 |
|||
|
Profit before tax |
822 |
780 |
731 |
|||
|
% |
% |
% |
||||
|
Share of HSBC's profit before tax |
8.0 |
5.5 |
7.3 |
|||
|
Cost efficiency ratio |
57.3 |
54.1 |
59.9 |
|||
|
Balance sheet data6 |
||||||
|
US$m |
US$m |
US$m |
||||
|
Loans and advances to customers (net) |
45,895 |
37,863 |
43,612 |
|||
|
Total assets |
98,039 |
81,916 |
88,510 |
|||
|
Customer accounts |
109,776 |
91,228 |
106,197 |
|||
For footnotes, see page 89.
Business highlights
Pre-tax profits increased by 5 per cent or 4 per cent on an underlying basis to US$822 million, primarily due to strong performances in Switzerland and Monaco, offsetting lower revenues in Asia due to reduced client trading.
Inward referrals from other customer groups in HSBC in the first half of 2008 resulted in US$3.4 billion of net new money, compared with US$2.0 billion in the first half of 2007.
Despite a decline in market values, client assets at US$421.3 billion remained well ahead of 30 June 2007 and unchanged from 31 December 2007, assisted by net new money of US$14.5 billion in the first half of 2008. This was achieved with an improvement in net interest income in an environment of competitors offering above-market deposit rates to attract and retain clients. Within client assets, funds and mandates generating annuity income rose by 4 per cent to US$70.3 billion.
Client Assets
|
Half-year to |
|||||
|
30 June 2008 |
30 June 2007 |
31 December 2007 |
|||
|
US$bn |
US$bn |
US$bn |
|||
|
At beginning of period |
421 |
333 |
370 |
||
|
Net new money |
15 |
17 |
19 |
||
|
Value change |
(20) |
12 |
7 |
||
|
Exchange/other |
5 |
8 |
25 |
||
|
At end of period |
421 |
370 |
421 |
||
Total client assets, a measure equivalent to many industry definitions of assets under management, which includes some non-financial assets held in client trusts, amounted to US$499.3 billion at 30 June 2008, an increase of US$5.2 billion on 31 December 2007, including US$18.6 billion of net new money.
Private Banking clients continued to be attracted to alternative products, with total hedge funds under custody for clients growing to US$57.9 billion, and new product offerings in emerging markets. The HSBC New Frontiers Fund, which concentrates on the next generation emerging markets, and the HSBC Asia Private Equity fund, were notably successful in the first half of 2008.
Offices in Guangzhou, Shanghai and Beijing were formally opened in early 2008 as part of the launch of Private Banking in mainland China.
Reconciliation of reported and underlying profit before tax
|
Half-year to 30 June 2008 ('1H08') compared with half-year to 30 June 2007 ('1H07') |
|||||||||||||||||
|
Private Banking |
1H07 as reported US$m |
Disposals and dilution gains1 US$m |
Currency translation2 US$m |
1H07 at 1H08exchangeratesUS$m |
Acqui- sitions1 US$m |
Under-lying change US$m |
1H08 as reported US$m |
Re-portedchange% |
Under-lying change % |
||||||||
|
Net interest income |
567 |
- |
9 |
576 |
- |
207 |
783 |
38 |
36 |
||||||||
|
Net fee income |
811 |
(52) |
30 |
789 |
- |
25 |
814 |
- |
3 |
||||||||
|
Other income3 |
340 |
- |
5 |
345 |
- |
(26) |
319 |
(6) |
(8) |
||||||||
|
Net operating income4
|
1,718 |
(52) |
44 |
1,710 |
- |
206 |
1,916 |
12 |
12 |
||||||||
|
Loan impairment (charges)/recoveries and other credit risk provisions |
(9) |
- |
- |
(9) |
- |
13 |
4 |
144 |
144 |
||||||||
|
Net operating income |
1,709 |
(52) |
44 |
1,701 |
- |
219 |
1,920 |
12 |
13 |
||||||||
|
Operating expenses |
(929) |
50 |
(33) |
(912) |
- |
(186) |
(1,098) |
(18) |
(20) |
||||||||
|
Operating profit |
780 |
(2) |
11 |
789 |
- |
33 |
822 |
5 |
4 |
||||||||
|
Income from associates |
- |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||
|
Profit before tax |
780 |
(2) |
11 |
789 |
- |
33 |
822 |
5 |
4 |
||||||||
|
Half-year to 30 June 2008 ('1H08') compared with half-year to 31 December 2007 ('2H07') |
||||||||||||||||||
|
Private Banking |
2H07 as reported US$m |
Disposals and dilution gains1 US$m |
Currency translation2 US$m |
2H07 at 1H08exchangeratesUS$m |
Acqui- sitions1 US$m |
Under-lying change US$m |
1H08 as reported US$m |
Re-portedchange% |
Under-lying change % |
|||||||||
|
Net interest income |
649 |
- |
2 |
651 |
- |
132 |
783 |
21 |
20 |
|||||||||
|
Net fee income |
804 |
(52) |
18 |
770 |
- |
44 |
814 |
1 |
6 |
|||||||||
|
Other income3 |
377 |
(18) |
6 |
365 |
- |
(46) |
319 |
(15) |
(13) |
|||||||||
|
Net operating income4
|
1,830 |
(70) |
26 |
1,786 |
- |
130 |
1,916 |
5 |
7 |
|||||||||
|
Loan impairment (charges)/recoveries and other credit risk provisions |
(5) |
- |
(1) |
(6) |
- |
10 |
4 |
180 |
167 |
|||||||||
|
Net operating income |
1,825 |
(70) |
25 |
1,780 |
- |
140 |
1,920 |
5 |
8 |
|||||||||
|
Operating expenses |
(1,096) |
48 |
(14) |
(1,062) |
- |
(36) |
(1,098) |
- |
(3) |
|||||||||
|
Operating profit |
729 |
(22) |
11 |
718 |
- |
104 |
822 |
13 |
14 |
|||||||||
|
Income from associates |
2 |
- |
(1) |
1 |
- |
(1) |
- |
(100) |
(100) |
|||||||||
|
Profit before tax |
731 |
(22) |
10 |
719 |
- |
103 |
822 |
12 |
14 |
|||||||||
For footnotes, see page 89.
Other
|
Profit/(loss) before tax |
||||||
|
Half-year to |
||||||
|
30 June 2008 |
30 June 2007 |
31 December 2007 |
||||
|
US$m |
US$m |
US$m |
||||
|
Net interest expense |
(375) |
(291) |
(251) |
|||
|
Net fee income/(expense) |
32 |
(7) |
(221) |
|||
|
Trading income/(expense) excluding net interest income |
(271) |
(74) |
201 |
|||
|
Net interest income/ (expense) on trading activities |
(82) |
25 |
(26) |
|||
|
Net trading income/ (expense)7
|
(353) |
(49) |
175 |
|||
|
Net income from financial instruments designated at fair value |
820 |
91 |
2,802 |
|||
|
Gains less losses from financial investments |
(283) |
101 |
(18) |
|||
|
Gains arising from dilution of interests in associates |
- |
1,076 |
16 |
|||
|
Dividend income |
17 |
27 |
5 |
|||
|
Net earned insurance premiums |
(15) |
(9) |
(12) |
|||
|
Other operating income |
1,943 |
1,667 |
1,856 |
|||
|
Total operating income |
1,786 |
2,606 |
4,352 |
|||
|
Net insurance claims8
|
(1) |
- |
- |
|||
|
Net operating income4
|
1,785 |
2,606 |
4,352 |
|||
|
Loan impairment charges and other credit risk provisions |
- |
(2) |
(9) |
|||
|
Net operating income |
1,785 |
2,604 |
4,343 |
|||
|
Total operating expenses |
(2,019) |
(1,650) |
(1,912) |
|||
|
Operating profit/(loss) |
(234) |
954 |
2,431 |
|||
|
Share of profit in associates and joint ventures |
45 |
116 |
34 |
|||
|
Profit/(loss) before tax |
(189) |
1,070 |
2,465 |
|||
|
By geographical region |
||||||
|
Europe |
144 |
43 |
1,013 |
|||
|
Hong Kong |
(725) |
(186) |
(189) |
|||
|
Rest of Asia-Pacific |
102 |
1,242 |
101 |
|||
|
North America |
294 |
(26) |
1,534 |
|||
|
Latin America |
(4) |
(3) |
6 |
|||
|
Profit/(loss) before tax |
(189) |
1,070 |
2,465 |
|||
|
% |
% |
% |
||||
|
Share of HSBC's profit before tax |
(1.8) |
7.5 |
24.5 |
|||
|
Cost efficiency ratio |
113.1 |
63.3 |
43.9 |
|||
|
Balance sheet data6
|
||||||
|
US$m |
US$m |
US$m |
||||
|
Loans and advances to customers (net) |
3,061 |
2,517 |
2,678 |
|||
|
Total assets |
49,700 |
45,044 |
40,150 |
|||
|
Customer accounts |
1,227 |
2,338 |
2,006 |
|||
For footnotes, see page 89.
Notes
The loss before tax recorded in Other, US$189 million, was US$1,259 million less than the profit of US$1,070 million in the first half of 2007. For a description of the main items reported under 'Other', please see footnote 5 on page 89.
Net income from financial instruments designated at fair value of US$820 million was recorded in the first half of 2008. This represented nearly a nine-fold increase on the first half of 2007 and arose principally from mark-to-market gains driven by wider credit spreads from fair valuing own debt issued by HSBC Holdings and its European and North American subsidiaries. These fair value gains will reverse through the income statement over the remaining life of the debt.
Activities undertaken within the Group Service Centres ('GSCs') continued to grow in the first half of 2008. Employee numbers increased by 14 per cent, bringing the total number of people employed by GSCs to over 32,000. In North America, IT Service Centres reported a 3 per cent decrease in costs. Substantially all costs of both GSCs and IT Service Centres are recharged to HSBC's customer groups and global businesses with revenue reported under 'Other operating income'.
'Gains less losses from financial investments' included impairment charges of US$296 million recognised on non-trading equity positions classified as available for sale. These investments were made as part of the strategic positioning of HSBC's businesses in Asia, and the write-downs were required as a consequence of significant falls in equity market prices. In the opinion of HSBC management, these stakes continue to deliver the market access envisaged when they were acquired.
Dilution gains of US$1.1 billion recorded in the first half of 2007 did not recur. These gains were recognised following share offerings made by HSBC's associates: Ping An Insurance, Bank of Communications and Industrial Bank.
Reconciliation of reported and underlying profit before tax
|
Half-year to 30 June 2008 ('1H08') compared with half-year to 30 June 2007 ('1H07') |
|||||||||||||||||
|
Other |
1H07 as reported US$m |
Disposals and dilution gains1 US$m |
Currency translation2 US$m |
1H07 at 1H08exchangeratesUS$m |
Acqui- sitions1 US$m |
Under-lying change US$m |
1H08 as reported US$m |
Re-portedchange% |
Under-lying change % |
||||||||
|
Net interest expense |
(291) |
- |
(20) |
(311) |
(1) |
(63) |
(375) |
(29) |
(20) |
||||||||
|
Net fee income/(expense) |
(7) |
- |
6 |
(1) |
- |
33 |
32 |
557 |
3,300 |
||||||||
|
Other income3
|
2,904 |
(1,076) |
104 |
1,932 |
- |
196 |
2,128 |
(27) |
10 |
||||||||
|
Net operating income4
|
2,606 |
(1,076) |
90 |
1,620 |
(1) |
166 |
1,785 |
(32) |
10 |
||||||||
|
Loan impairment charges and other credit risk provisions |
(2) |
- |
(1) |
(3) |
- |
3 |
- |
100 |
100 |
||||||||
|
Net operating income |
2,604 |
(1,076) |
89 |
1,617 |
(1) |
169 |
1,785 |
(31) |
10 |
||||||||
|
Operating expenses |
(1,650) |
- |
(29) |
(1,679) |
(1) |
(339) |
(2,019) |
(22) |
(20) |
||||||||
|
Operating profit/(loss) |
954 |
(1,076) |
60 |
(62) |
(2) |
(170) |
(234) |
(125) |
(274) |
||||||||
|
Income from associates |
116 |
- |
14 |
130 |
(12) |
(73) |
45 |
(61) |
(56) |
||||||||
|
Profit/(loss) before tax |
1,070 |
(1,076) |
74 |
68 |
(14) |
(243) |
(189) |
(118) |
(357) |
||||||||
|
Half-year to 30 June 2008 ('1H08') compared with half-year to 31 December 2007 ('2H07') |
|||||||||||||||||
|
Other |
2H07 as reported US$m |
Disposals and dilution gains1 US$m |
Currency translation2 US$m |
2H07 at 1H08exchangeratesUS$m |
Acqui- sitions1 US$m |
Under-lying change US$m |
1H08 as reported US$m |
Re-portedchange% |
Under-lying change % |
||||||||
|
Net interest expense |
(251) |
- |
(14) |
(265) |
(1) |
(109) |
(375) |
(49) |
(41) |
||||||||
|
Net fee income/(expense) |
(221) |
- |
10 |
(211) |
- |
243 |
32 |
114 |
115 |
||||||||
|
Other income3
|
4,824 |
(16) |
2 |
4,810 |
- |
(2,682) |
2,128 |
(56) |
(56) |
||||||||
|
Net operating income4
|
4,352 |
(16) |
(2) |
4,334 |
(1) |
(2,548) |
1,785 |
(59) |
(59) |
||||||||
|
Loan impairment charges and other credit risk provisions |
(9) |
- |
- |
(9) |
- |
9 |
- |
100 |
100 |
||||||||
|
Net operating income |
4,343 |
(16) |
(2) |
4,325 |
(1) |
(2,539) |
1,785 |
(59) |
(59) |
||||||||
|
Operating expenses |
(1,912) |
- |
(11) |
(1,923) |
- |
(96) |
(2,019) |
(6) |
(5) |
||||||||
|
Operating profit/(loss) |
2,431 |
(16) |
(13) |
2,402 |
(1) |
(2,635) |
(234) |
(110) |
(110) |
||||||||
|
Income from associates |
34 |
- |
2 |
36 |
- |
9 |
45 |
32 |
25 |
||||||||
|
Profit/(loss) before tax |
2,465 |
(16) |
(11) |
2,438 |
(1) |
(2,626) |
(189) |
(108) |
(108) |
||||||||
For footnotes, see page 89.
Analysis by customer group and global business
Profit/(loss) before tax
|
Half-year to 30 June 2008 |
|||||||||||||
|
Total |
Personal Financial Services US$m |
Commercial Banking US$m |
Global Banking and MarketsUS$m |
Private Banking US$m |
Other5 US$m |
Inter-segment elimination9 US$m |
Total US$m |
||||||
|
Net interest income/ (expense) |
15,217 |
4,747 |
3,737 |
783 |
(375) |
(2,931) |
21,178 |
||||||
|
Net fee income |
5,626 |
2,165 |
2,354 |
814 |
32 |
- |
10,991 |
||||||
|
Trading income/(expense) excluding net interest income |
142 |
197 |
360 |
211 |
(271) |
- |
639 |
||||||
|
Net interest income/ (expense) on trading activities |
42 |
24 |
273 |
7 |
(82) |
2,931 |
3,195 |
||||||
|
Net trading income/ (expense)7
|
184 |
221 |
633 |
218 |
(353) |
2,931 |
3,834 |
||||||
|
Net income/(expense) from financial instruments designated at fair value |
(1,135) |
(59) |
(211) |
1 |
820 |
- |
(584) |
||||||
|
Gains less losses from financial investments |
585 |
191 |
244 |
80 |
(283) |
- |
817 |
||||||
|
Dividend income |
15 |
3 |
49 |
4 |
17 |
- |
88 |
||||||
|
Net earned insurance premiums |
4,746 |
360 |
62 |
- |
(15) |
- |
5,153 |
||||||
|
Other operating income |
390 |
718 |
551 |
16 |
1,943 |
(2,183) |
1,435 |
||||||
|
Total operating income |
25,628 |
8,346 |
7,419 |
1,916 |
1,786 |
(2,183) |
42,912 |
||||||
|
Net insurance claims8 |
(3,206) |
(190) |
(40) |
- |
(1) |
- |
(3,437) |
||||||
|
Net operating income4
|
22,422 |
8,156 |
7,379 |
1,916 |
1,785 |
(2,183) |
39,475 |
||||||
|
Loan impairment (charges)/ recoveries and other credit risk provisions |
(9,384) |
(563) |
(115) |
4 |
- |
- |
(10,058) |
||||||
|
Net operating income |
13,038 |
7,593 |
7,264 |
1,920 |
1,785 |
(2,183) |
29,417 |
||||||
|
Total operating expenses |
(11,099) |
(3,280) |
(4,827) |
(1,098) |
(2,019) |
2,183 |
(20,140) |
||||||
|
Operating profit/(loss) |
1,939 |
4,313 |
2,437 |
822 |
(234) |
- |
9,277 |
||||||
|
Share of profit in associates and joint ventures |
374 |
298 |
253 |
- |
45 |
- |
970 |
||||||
|
Profit/(loss) before tax |
2,313 |
4,611 |
2,690 |
822 |
(189) |
- |
10,247 |
||||||
|
% |
% |
% |
% |
% |
% |
||||||||
|
Share of HSBC's profit before tax |
22.6 |
45.0 |
26.2 |
8.0 |
(1.8) |
100.0 |
|||||||
|
Cost efficiency ratio |
49.5 |
40.2 |
65.4 |
57.3 |
113.1 |
51.0 |
|||||||
|
Balance sheet data6 |
|||||||||||||
|
U$Sm |
US$m |
US$m |
US$m |
US$m |
US$m |
||||||||
|
Loans and advances to customers (net) |
458,302 |
238,116 |
303,826 |
45,895 |
3,061 |
1,049,200 |
|||||||
|
Total assets |
603,016 |
286,533 |
1,509,390 |
98,039 |
49,700 |
2,546,678 |
|||||||
|
Customer accounts |
474,263 |
247,705 |
328,952 |
109,776 |
1,227 |
1,161,923 |
|||||||
|
Loans and advances to banks (net)12 |
214,693 |
||||||||||||
|
Trading assets12,13 |
721,366 |
||||||||||||
|
Financial assets designated at fair value12
|
7,469 |
||||||||||||
|
Financial investments12 |
211,486 |
||||||||||||
|
Deposits by banks12 |
144,043 |
||||||||||||
|
Trading liabilities12,13 |
577,048 |
||||||||||||
For footnotes, see page 89.
Analysis by customer group and global business (continued)
Profit before tax
|
Half-year to 30 June 2007 |
|||||||||||||
|
Total |
Personal Financial Services US$m |
Commercial Banking US$m |
Global Banking and MarketsUS$m |
Private Banking US$m |
Other5 US$m |
Inter- segment elimination9 US$m |
Total US$m |
||||||
|
Net interest income/ (expense) |
13,998 |
4,286 |
1,847 |
567 |
(291) |
(2,177) |
18,230 |
||||||
|
Net fee income/(expense) |
5,523 |
1,904 |
2,264 |
811 |
(7) |
- |
10,495 |
||||||
|
Trading income/(expense) excluding net interest income |
1 |
121 |
3,048 |
255 |
(74) |
- |
3,351 |
||||||
|
Net interest income/ (expense) on trading activities |
92 |
13 |
(151) |
4 |
25 |
2,177 |
2,160 |
||||||
|
Net trading income/ (expense)7
|
93 |
134 |
2,897 |
259 |
(49) |
2,177 |
5,511 |
||||||
|
Net income/(expense) from financial instruments designated at fair value |
796 |
(24) |
11 |
- |
91 |
- |
874 |
||||||
|
Gains less losses from financial investments |
60 |
25 |
768 |
45 |
101 |
- |
999 |
||||||
|
Gains arising from dilution of interests in associates |
- |
- |
- |
- |
1,076 |
- |
1,076 |
||||||
|
Dividend income |
41 |
4 |
175 |
5 |
27 |
- |
252 |
||||||
|
Net earned insurance premiums |
3,735 |
205 |
46 |
- |
(9) |
- |
3,977 |
||||||
|
Other operating income |
255 |
2 |
529 |
31 |
1,667 |
(1,806) |
678 |
||||||
|
Total operating income |
24,501 |
6,536 |
8,537 |
1,718 |
2,606 |
(1,806) |
42,092 |
||||||
|
Net insurance claims8 |
(3,605) |
44 |
(38) |
- |
- |
- |
(3,599) |
||||||
|
Net operating income4 |
20,896 |
6,580 |
8,499 |
1,718 |
2,606 |
(1,806) |
38,493 |
||||||
|
Loan impairment (charges)/ recoveries and other credit risk provisions |
(5,928) |
(431) |
24 |
(9) |
(2) |
- |
(6,346) |
||||||
|
Net operating income |
14,968 |
6,149 |
8,523 |
1,709 |
2,604 |
(1,806) |
32,147 |
||||||
|
Total operating expenses |
(10,452) |
(2,907) |
(4,479) |
(929) |
(1,650) |
1,806 |
(18,611) |
||||||
|
Operating profit |
4,516 |
3,242 |
4,044 |
780 |
954 |
- |
13,536 |
||||||
|
Share of profit in associates and joint ventures |
213 |
180 |
114 |
- |
116 |
- |
623 |
||||||
|
Profit before tax |
4,729 |
3,422 |
4,158 |
780 |
1,070 |
- |
14,159 |
||||||
|
% |
% |
% |
% |
% |
% |
||||||||
|
Share of HSBC's profit before tax |
33.4 |
24.2 |
29.4 |
5.5 |
7.5 |
100.0 |
|||||||
|
Cost efficiency ratio |
50.0 |
44.2 |
52.7 |
54.1 |
63.3 |
48.3 |
|||||||
|
Balance sheet data6 |
|||||||||||||
|
U$Sm |
US$m |
US$m |
US$m |
US$m |
US$m |
||||||||
|
Loans and advances to customers (net) |
460,196 |
185,923 |
241,602 |
37,863 |
2,517 |
928,101 |
|||||||
|
Total assets |
577,402 |
225,763 |
1,220,316 |
81,916 |
45,044 |
2,150,441 |
|||||||
|
Customer accounts |
416,525 |
205,002 |
265,739 |
91,228 |
2,338 |
980,832 |
|||||||
|
Loans and advances to banks (net)12 |
183,708 |
||||||||||||
|
Trading assets12,13 |
567,340 |
||||||||||||
|
Financial assets designated at fair value12 |
5,269 |
||||||||||||
|
Financial investments12 |
174,095 |
||||||||||||
|
Deposits by banks12 |
121,744 |
||||||||||||
|
Trading liabilities12,13 |
443,634 |
||||||||||||
For footnotes, see page 89.
Profit before tax
|
Half-year to 31 December 2007 |
|||||||||||||
|
Personal FinancialServices |
Commercial Banking |
Global Banking and Markets |
Private Banking |
Other5 |
Inter- segment elimination9 |
Total |
|||||||
|
Total |
US$m |
US$m |
US$m |
US$m |
US$m |
US$m |
US$m |
||||||
|
Net interest income/ (expense) |
15,071 |
4,769 |
2,583 |
649 |
(251) |
(3,256) |
19,565 |
||||||
|
Net fee income/(expense) |
6,219 |
2,068 |
2,637 |
804 |
(221) |
- |
11,507 |
||||||
|
Trading income excluding net interest income |
37 |
144 |
455 |
270 |
201 |
- |
1,107 |
||||||
|
Net interest income/ (expense) on trading activities |
48 |
18 |
(85) |
5 |
(26) |
3,256 |
3,216 |
||||||
|
Net trading income7 |
85 |
162 |
370 |
275 |
175 |
3,256 |
4,323 |
||||||
|
Net income/(expense) from financial instruments designated at fair value |
537 |
46 |
(175) |
(1) |
2,802 |
- |
3,209 |
||||||
|
Gains less losses from financial investments |
291 |
65 |
545 |
74 |
(18) |
- |
957 |
||||||
|
Gains arising from dilution of interests in associates |
- |
- |
- |
- |
16 |
- |
16 |
||||||
|
Dividend income |
14 |
4 |
47 |
2 |
5 |
- |
72 |
||||||
|
Net earned insurance premiums |
4,536 |
528 |
47 |
- |
(12) |
- |
5,099 |
||||||
|
Other operating income |
132 |
163 |
689 |
27 |
1,856 |
(2,106) |
761 |
||||||
|
Total operating income |
26,885 |
7,805 |
6,743 |
1,830 |
4,352 |
(2,106) |
45,509 |
||||||
|
Net insurance claims8 |
(4,542) |
(435) |
(32) |
- |
- |
- |
(5,009) |
||||||
|
Net operating income4 |
22,343 |
7,370 |
6,711 |
1,830 |
4,352 |
(2,106) |
40,500 |
||||||
|
Loan impairment charges and other credit risk provisions |
(10,244) |
(576) |
(62) |
(5) |
(9) |
- |
(10,896) |
||||||
|
Net operating income |
12,099 |
6,794 |
6,649 |
1,825 |
4,343 |
(2,106) |
29,604 |
||||||
|
Total operating expenses |
(11,305) |
(3,345) |
(4,879) |
(1,096) |
(1,912) |
2,106 |
(20,431) |
||||||
|
Operating profit |
794 |
3,449 |
1,770 |
729 |
2,431 |
- |
9,173 |
||||||
|
Share of profit in associates and joint ventures |
377 |
274 |
193 |
2 |
34 |
- |
880 |
||||||
|
Profit before tax |
1,171 |
3,723 |
1,963 |
731 |
2,465 |
- |
10,053 |
||||||
|
% |
% |
% |
% |
% |
% |
||||||||
|
Share of HSBC's profit before tax |
11.7 |
37.0 |
19.5 |
7.3 |
24.5 |
100.0 |
|||||||
|
Cost efficiency ratio |
50.6 |
45.3 |
72.7 |
59.9 |
43.9 |
50.4 |
|||||||
|
Balance sheet data6 |
|||||||||||||
|
U$Sm |
US$m |
US$m |
US$m |
US$m |
US$m |
||||||||
|
Loans and advances to customers (net) |
464,726 |
220,068 |
250,464 |
43,612 |
2,678 |
981,548 |
|||||||
|
Total assets |
588,473 |
261,893 |
1,375,240 |
88,510 |
40,150 |
2,354,266 |
|||||||
|
Customer accounts |
450,071 |
237,987 |
299,879 |
106,197 |
2,006 |
1,096,140 |
|||||||
|
Loans and advances to banks (net)12 |
199,506 |
||||||||||||
|
Trading assets12,13 |
625,132 |
||||||||||||
|
Financial assets designated at fair value12 |
7,936 |
||||||||||||
|
Financial investments12 |
224,057 |
||||||||||||
|
Deposits by banks12 |
126,395 |
||||||||||||
|
Trading liabilities12,13 |
483,881 |
||||||||||||
For footnotes, see page 89.
Related Shares:
HSBC Holdings