20th Mar 2015 16:25
· Operating expenses increased by US$946m due to higher costs associated with Regulatory Programmes and Compliance, an increase in Global Resourcing costs in India and mainland China and the 2013 release of a litigation provision in Asia. In addition, the UK bank levy charge of US$1.1bn in 2014 was higher than the charge of US$916m in 2013, primarily due to an increase in the rate of the levy. This was partly offset by a reduction in North America by the expiry of the TSAs relating to the sale of the CRS business.
Analysis by global business
HSBC profit/(loss) before tax and balance sheet data
2014 | ||||||||||||||
| Retail Bankingand WealthManagementUS$m |
| Commercial BankingUS$m |
| GlobalBanking andMarketsUS$m |
| GlobalPrivateBankingUS$m |
| Other39 US$m | Inter-segment elimination55 US$m |
| TotalUS$m | ||
Profit/(loss) before tax |
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| |
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Net interest income/(expense) | 16,782 |
| 10,506 |
| 7,022 |
| 994 |
| (501) |
| (98) |
| 34,705 | |
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|
| |
Net fee income/(expense) | 6,668 |
| 4,738 |
| 3,560 |
| 1,056 |
| (65) |
| − |
| 15,957 | |
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| |
Trading income/(expense) excluding net interest income | (28) |
| 620 |
| 4,063 |
| 298 |
| (100) |
| − |
| 4,853 | |
Net interest income/(expense) on trading activities | 9 |
| (2) |
| 1,798 |
| (4) |
| 8 |
| 98 |
| 1,907 | |
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| |
Net trading income/(expense) 50 | (19) |
| 618 |
| 5,861 |
| 294 |
| (92) |
| 98 |
| 6,760 | |
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|
|
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|
|
| |
Changes in fair value of long-term debt issued and related derivatives | − |
| − |
| − |
| − |
| 508 |
| − |
| 508 | |
Net income/(expense) from other financial instruments designatedat fair value | 1,675 |
| 288 |
| 12 |
| (1) |
| (9) |
| − |
| 1,965 | |
|
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|
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| |
Net income/(expense) from financial instruments designated at fair value | 1,675 |
| 288 |
| 12 |
| (1) |
| 499 |
| − |
| 2,473 | |
Gains less losses from financial investments | 14 |
| 31 |
| 1,117 |
| 9 |
| 164 |
| − |
| 1,335 | |
Dividend income | 24 |
| 18 |
| 80 |
| 5 |
| 184 |
| − |
| 311 | |
Net insurance premium income | 10,570 |
| 1,296 |
| 5 |
| 50 |
| − |
| − |
| 11,921 | |
Other operating income | 719 |
| 248 |
| 124 |
| 33 |
| 6,176 |
| (6,169) |
| 1,131 | |
|
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Total operating income | 36,433 |
| 17,743 |
| 17,781 |
| 2,440 |
| 6,365 |
| (6,169) |
| 74,593 | |
|
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| ||
Net insurance claims56 | (11,839) |
| (1,440) |
| (3) |
| (63) |
| − |
| − |
| (13,345) | |
|
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| ||
Net operating income4 | 24,594 |
| 16,303 |
| 17,778 |
| 2,377 |
| 6,365 |
| (6,169) |
| 61,248 | |
|
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| ||
Loan impairment (charges)/ recoveries and other credit risk provisions | (1,819) |
| (1,675) |
| (365) |
| 8 |
| − |
| − |
| (3,851) | |
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Net operating income | 22,775 |
| 14,628 |
| 17,413 |
| 2,385 |
| 6,365 |
| (6,169) |
| 57,397 | |
|
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| ||
Employee expenses57 | (5,038) |
| (2,439) |
| (3,655) |
| (732) |
| (8,502) |
| − |
| (20,366) | |
Other operating expenses | (12,484) |
| (5,050) |
| (8,373) |
| (1,046) |
| (99) |
| 6,169 |
| (20,883) | |
|
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| |
Total operating expenses | (17,522) |
| (7,489) |
| (12,028) |
| (1,778) |
| (8,601) |
| 6,169 |
| (41,249) | |
|
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Operating profit/(loss) | 5,253 |
| 7,139 |
| 5,385 |
| 607 |
| (2,236) |
| − |
| 16,148 | |
|
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| ||
Share of profit in associatesand joint ventures | 398 |
| 1,605 |
| 504 |
| 19 |
| 6 |
| − |
| 2,532 | |
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Profit/(loss) before tax | 5,651 |
| 8,744 |
| 5,889 |
| 626 |
| (2,230) |
| − |
| 18,680 | |
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| % |
| % |
| % |
| % |
| % |
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| % | |
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Share of HSBC's profit before tax | 30.3 |
| 46.8 |
| 31.5 |
| 3.4 |
| (12.0) |
|
|
| 100.0 | |
Cost efficiency ratio | 71.2 |
| 45.9 |
| 67.7 |
| 74.8 |
| 135.1 |
|
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| 67.3 | |
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Balance sheet data40 |
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| |
| US$m |
| US$m |
| US$m |
| US$m |
| US$m |
|
|
| US$m | |
Loans and advances to customers (net)27 | 359,744 |
| 313,999 |
| 254,463 |
| 44,102 |
| 2,352 |
|
|
| 974,660 | |
Total assets | 499,083 |
| 372,739 |
| 1,839,644 |
| 88,342 |
| 164,537 |
| (330,206) |
| 2,634,139 | |
Customer accounts27 | 581,421 |
| 363,654 |
| 319,121 |
| 85,465 |
| 981 |
|
|
| 1,350,642 | |
2013 | ||||||||||||||
| Retail Banking and WealthManagement US$m |
| Commercial BankingUS$m |
| GlobalBanking andMarketsUS$m |
| GlobalPrivateBankingUS$m |
| Other39 US$m | Inter-segment elimination55 US$m |
| TotalUS$m | ||
Profit/(loss) before tax |
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|
|
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| |
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Net interest income/(expense) | 18,339 |
| 10,200 |
| 6,766 |
| 1,146 |
| (737) |
| (175) |
| 35,539 | |
|
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|
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| |
Net fee income | 7,021 |
| 4,717 |
| 3,482 |
| 1,150 |
| 64 |
| − |
| 16,434 | |
|
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|
|
|
|
|
|
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| |
Trading income/(expense) excluding net interest income | 689 |
| 649 |
| 4,953 |
| 390 |
| (38) |
| − |
| 6,643 | |
Net interest income/(expense) on trading activities | (3) |
| − |
| 1,827 |
| 4 |
| 44 |
| 175 |
| 2,047 | |
|
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| |
Net trading income50 | 686 |
| 649 |
| 6,780 |
| 394 |
| 6 |
| 175 |
| 8,690 | |
|
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| |
Changes in fair value of long-term debt issued and related derivatives | − |
| - |
| - |
| - |
| (1,228) |
| - |
| (1,228) | |
Net income/(expense) from other financial instruments designated at fair value | 1,638 |
| 332 |
| 599 |
| 4 |
| (576) |
| (1) |
| 1,996 | |
|
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|
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|
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|
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|
| |
Net income/(expense) from financial instruments designated at fair value | 1,638 |
| 332 |
| 599 |
| 4 |
| (1,804) |
| (1) |
| 768 | |
Gains less losses from financial investments | 55 |
| 1 |
| 747 |
| (3) |
| 1,212 |
| − |
| 2,012 | |
Dividend income | 21 |
| 15 |
| 129 |
| 8 |
| 149 |
| − |
| 322 | |
Net insurance premium income | 10,543 |
| 1,375 |
| 6 |
| 16 |
| − |
| − |
| 11,940 | |
Other operating income/(expense) | 544 |
| 621 |
| 670 |
| (239) |
| 6,761 |
| (5,725) |
| 2,632 | |
|
|
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|
|
|
|
|
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|
| |
Total operating income | 38,847 |
| 17,910 |
| 19,179 |
| 2,476 |
| 5,651 |
| (5,726) |
| 78,337 | |
|
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|
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| |
Net insurance claims56 | (12,107) |
| (1,545) |
| (3) |
| (37) |
| − |
| − |
| (13,692) | |
|
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|
|
|
|
|
|
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| |
Net operating income4 | 26,740 |
| 16,365 |
| 19,176 |
| 2,439 |
| 5,651 |
| (5,726) |
| 64,645 | |
|
|
|
|
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|
|
|
|
|
|
|
|
| |
Loan impairment charges and other credit risk provisions | (3,227) |
| (2,384) |
| (207) |
| (31) |
| − |
| − |
| (5,849) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net operating income | 23,513 |
| 13,981 |
| 18,969 |
| 2,408 |
| 5,651 |
| (5,726) |
| 58,796 | |
|
|
|
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|
|
|
|
|
|
|
|
| |
Employee expenses57 | (5,219) |
| (2,327) |
| (3,549) |
| (776) |
| (7,325) |
| − |
| (19,196) | |
Other operating expenses | (12,029) |
| (4,722) |
| (6,411) |
| (1,453) |
| (471) |
| 5,726 |
| (19,360) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total operating expenses | (17,248) |
| (7,049) |
| (9,960) |
| (2,229) |
| (7,796) |
| 5,726 |
| (38,556) | |
|
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|
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|
|
|
|
|
|
| |
Operating profit/(loss) | 6,265 |
| 6,932 |
| 9,009 |
| 179 |
| (2,145) |
| − |
| 20,240 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Share of profit/(loss) in associatesand joint ventures | 384 |
| 1,509 |
| 432 |
| 14 |
| (14) |
| − |
| 2,325 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Profit/(loss) before tax | 6,649 |
| 8,441 |
| 9,441 |
| 193 |
| (2,159) |
| − |
| 22,565 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| % |
| % |
| % |
| % |
| % |
|
|
| % | |
|
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|
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| |
Share of HSBC's profit before tax | 29.5 |
| 37.4 |
| 41.8 |
| 0.9 |
| (9.6) |
|
|
| 100.0 | |
Cost efficiency ratio | 64.5 |
| 43.1 |
| 51.9 |
| 91.4 |
| 138.0 |
|
|
| 59.6 | |
|
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| |
Balance sheet data40 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| US$m |
| US$m |
| US$m |
| US$m |
| US$m |
|
|
| US$m | |
Loans and advances to customers (net)27 | 375,086 |
| 297,852 |
| 272,473 |
| 44,224 |
| 2,454 |
|
|
| 992,089 | |
Total assets | 517,085 |
| 360,623 |
| 1,975,509 |
| 97,655 |
| 171,812 |
| (451,366) |
| 2,671,318 | |
Customer accounts27 | 579,994 |
| 354,298 |
| 328,800 |
| 96,770 |
| 1,435 |
|
|
| 1,361,297 | |
For footnotes, see page 109.
Related Shares:
HSBC Holdings