Annual Financial Report - 11 of 44

2011

Retail Bankingand WealthManagement US$m

Commercial

Banking US$m

Global Bankingand Markets US$m

Global

Private Banking US$m

Other

US$m

Inter- segment

elimination64

US$m

Total US$m

Profit/(loss) before tax

Net interest income/(expense)

2,571

1,317

1,051

173

(464)

43

4,691

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

1,741

706

475

160

15

-

3,097

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

120

169

652

135

(116)

-

960

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

9

1

246

-

16

(43)

229

Net trading income/(expense)56

129

170

898

135

(100)

(43)

1,189

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

-

-

-

-

-

-

-

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

(475)

(72)

(5)

-

15

-

(537)

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

(475)

(72)

(5)

-

15

-

(537)

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

3

10

21

-

(10)

-

24

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

-

1

14

-

24

-

39

Net earned insurance premiums

4,317

758

13

-

-

-

5,088

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

505

175

79

8

1,185

(268)

1,684

Total operating income ......

8,791

3,065

2,546

476

665

(268)

15,275

Net insurance claims65 ............

(3,887)

(697)

(9)

-

-

-

(4,593)

Net operating income52 ......

4,904

2,368

2,537

476

665

(268)

10,682

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

(77)

(66)

23

(36)

-

-

(156)

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

4,827

2,302

2,560

440

665

(268)

10,526

Total operating expenses .......

(1,811)

(703)

(1,248)

(252)

(1,012)

268

(4,758)

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

3,016

1,599

1,312

188

(347)

-

5,768

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

6

9

4

-

36

-

55

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

3,022

1,608

1,316

188

(311)

-

5,823

%

%

%

%

%

%

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

13.8

7.3

6.0

0.9

(1.4)

26.6

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

36.9

29.7

49.2

52.9

152.2

44.5

Balance sheet data49

US$m

US$m

US$m

US$m

US$m

US$m

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

56,296

54,986

39,667

5,447

1,269

157,665

Total assets ............................

85,866

63,516

238,892

20,680

84,782

(20,712)

473,024

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

181,316

79,225

35,283

19,622

(101)

315,345

2010

Retail Bankingand Wealth Manage-

ment17

US$m

Commercial

Banking US$m

Global Banking and

Markets17

US$m

Global

Private Banking US$m

Other

US$m

Inter- segment

elimination64

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 ......................

1,656

634

495

163

14

-

2,962

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

198

121

680

120

(12)

-

1,107

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

4

-

100

-

12

89

205

Net trading income56 ..............

202

121

780

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 .........

513

68

156

12

1,140

(283)

1,606

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

8,958

2,585

2,487

469

748

(283)

14,964

Net insurance claims65 ............

(4,193)

(559)

(10)

-

-

-

(4,762)

Net operating income52 ..........

4,765

2,026

2,477

469

748

(283)

10,202

Loan impairment charges and other credit risk provisions .

(76)

(28)

(10)

-

-

-

(114)

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

4,689

1,998

2,467

469

748

(283)

10,088

Total operating expenses .......

(1,693)

(653)

(1,124)

(242)

(1,002)

283

(4,431)

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

2,996

1,345

1,343

227

(254)

-

5,657

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

5

7

4

-

19

-

35

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

3,001

1,352

1,347

227

(235)

-

5,692

%

%

%

%

%

%

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

15.7

7.1

7.1

1.2

(1.2)

29.9

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

35.5

32.2

45.4

51.6

134.0

43.4

Balance sheet data49

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 assets68 .........................

76,871

55,030

223,286

20,598

62,486

(8,706)

429,565

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

176,960

71,209

29,388

19,241

686

297,484