Annual Financial Report - 11 of 41

2010

Personal Financial Services US$m

Commercial

Banking US$m

Global Banking & Markets US$m

Global

Private Banking US$m

Other

US$m

Inter- segment

elimination56

US$m

Total US$m

Profit/(loss) before tax

Net interest income/(expense)

2,604

1,106

915

173

(463)

(89)

4,246

Net fee income ......................

1,521

634

630

163

14

-

2,962

Trading income/(expense) excluding net interestincome ...............................

197

121

681

120

(12)

-

1,107

Net interest income ontrading activities .................

4

-

100

-

12

89

205

Net trading income49 ..............

201

121

781

120

-

89

1,312

Changes in fair value of long-term debt issued and related derivatives ..........................

-

-

-

-

(2)

-

(2)

Net income/(expense) fromother financial instrumentsdesignated at fair value .......

328

(10)

61

-

1

-

380

Net income/(expense) from financial instrumentsdesignated at fair value .......

328

(10)

61

-

(1)

-

378

Gains less losses fromfinancial investments .........

-

-

56

1

41

-

98

Dividend income ....................

-

1

12

-

17

-

30

Net earned insurance premiums

3,655

665

12

-

-

-

4,332

Other operating income .........

503

68

166

12

1,140

(283)

1,606

Total operating income ......

8,812

2,585

2,633

469

748

(283)

14,964

Net insurance claims57 ............

(4,193)

(559)

(10)

-

-

-

(4,762)

Net operating income46 ......

4,619

2,026

2,623

469

748

(283)

10,202

Loan impairment charges and other credit risk provisions .

(76)

(28)

(10)

-

-

-

(114)

Net operating income .........

4,543

1,998

2,613

469

748

(283)

10,088

Total operating expenses .......

(1,630)

(653)

(1,187)

(242)

(1,002)

283

(4,431)

Operating profit/(loss) .......

2,913

1,345

1,426

227

(254)

-

5,657

Share of profit in associatesand joint ventures ...............

5

7

4

-

19

-

35

Profit/(loss) before tax .......

2,918

1,352

1,430

227

(235)

-

5,692

%

%

%

%

%

%

Share of HSBC's profitbefore tax ...........................

15.3

7.1

7.5

1.2

(1.2)

29.9

Cost efficiency ratio ..............

35.3

32.2

45.3

51.6

134.0

43.4

Balance sheet data45

US$m

US$m

US$m

US$m

US$m

US$m

Loans and advances tocustomers (net) ..................

50,983

48,670

34,491

4,760

1,787

140,691

Total assets61 ........................

76,665

55,030

223,492

20,598

62,486

(8,706)

429,565

Customer accounts .................

176,960

71,209

29,388

19,241

686

297,484

2009

Personal Financial Services US$m

Commercial Banking US$m

Global Banking & Markets US$m

Global Private Banking US$m

Other US$m

Inter- segment

elimination56

US$m

Total US$m

Profit/(loss) before tax

Net interest income/(expense)

2,577

938

1,150

212

(558)

(124)

4,195

Net fee income ......................

1,410

530

563

125

41

-

2,669

Trading income/(expense) excluding net interest income ...........................................

186

92

792

91

(93)

-

1,068

Net interest income on trading activities ............................

3

-

16

-

14

124

157

Net trading income/(expense)49

189

92

808

91

(79)

124

1,225

Changes in fair value of long-term debt issued and related derivatives ..........................

-

-

-

-

(3)

-

(3)

Net income/(expense) fromother financial instruments designated at fair value .......

707

(46)

138

-

(11)

-

788

Net income/(expense) from financial instrumentsdesignated at fair value .......

707

(46)

138

-

(14)

-

785

Gains less losses fromfinancial investments .........

80

18

(108)

-

19

-

9

Dividend income ....................

1

1

10

-

16

-

28

Net earned insurancepremiums ...........................

3,161

500

13

-

-

-

3,674

Other operating income .........

346

64

59

10

1,062

(267)

1,274

Total operating income .........

8,471

2,097

2,633

438

487

(267)

13,859

Net insurance claims57 ............

(3,979)

(404)

(9)

-

-

-

(4,392)

Net operating income46 ..........

4,492

1,693

2,624

438

487

(267)

9,467

Loan impairment (charges)/recoveries and other creditrisk provisions ....................

(203)

(168)

(131)

1

1

-

(500)

Net operating income ............

4,289

1,525

2,493

439

488

(267)

8,967

Total operating expenses .......

(1,566)

(570)

(987)

(242)

(848)

267

(3,946)

Operating profit/(loss) ...........

2,723

955

1,506

197

(360)

-

5,021

Share of profit in associatesand joint ventures ...............

5

1

1

-

1

-

8

Profit/(loss) before tax ...........

2,728

956

1,507

197

(359)

-

5,029

%

%

%

%

%

%

Share of HSBC's profitbefore tax ...........................

38.5

13.5

21.3

2.8

(5.1)

71.0

Cost efficiency ratio ..............

34.9

33.7

37.6

55.3

174.1

41.7

Balance sheet data45

US$m

US$m

US$m

US$m

US$m

US$m

Loans and advances tocustomers (net) ..................

43,869

28,217

21,991

3,361

1,943

99,381

Total assets61 .........................

83,497

34,743

217,146

20,353

52,508

(9,004)

399,243

Customer accounts .................

166,445

62,146

26,650

19,474

726

275,441