Annual Financial Report - 12 of 48

2012

RetailBankingand WealthManagement US$m

Commercial

Banking US$m

Global Bankingand Markets US$m

GlobalPrivate Banking US$m

Other

US$m

Inter- segment

elimination85

US$m

Total US$m

Profit before tax

Net interest income/(expense)

5,437

3,228

1,409

820

(543)

43

10,394

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

2,622

1,658

1,032

848

9

-

6,169

Trading income excluding net interest income ..................

67

26

848

216

25

-

1,182

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

7

14

1,500

14

33

(43)

1,525

Net trading income78 ..............

74

40

2,348

230

58

(43)

2,707

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

-

-

-

-

(3,091)

-

(3,091)

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

770

139

1,073

-

(1,106)

-

876

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

770

139

1,073

-

(4,197)

-

(2,215)

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

(5)

(1)

375

(3)

(2)

-

364

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

-

1

104

3

3

-

111

Net earned insurance premiums

3,150

438

-

42

-

-

3,630

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

84

58

88

61

796

(9)

1,078

Total operating income/ (expense) ..........................

12,132

5,561

6,429

2,001

(3,876)

(9)

22,238

Net insurance claims86 ............

(4,054)

(536)

-

(40)

-

-

(4,630)

Net operating income/ (expense)21 .......................

8,078

5,025

6,429

1,961

(3,876)

(9)

17,608

Loan impairment charges and other credit risk provisions .

(347)

(1,109)

(436)

(29)

-

-

(1,921)

Net operating income/(expense) ..........................

7,731

3,916

5,993

1,932

(3,876)

(9)

15,687

Total operating expenses .......

(7,225)

(2,708)

(4,999)

(1,431)

(2,741)

9

(19,095)

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

506

1,208

994

501

(6,617)

-

(3,408)

Share of profit/(loss) inassociates and joint ventures

3

-

(8)

(2)

1

-

(6)

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

509

1,208

986

499

(6,616)

-

(3,414)

%

%

%

%

%

%

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

2.5

5.9

4.8

2.4

(32.0)

(16.5)

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

89.4

53.9

77.8

73.0

(70.7)

108.4

Balance sheet data74

US$m

US$m

US$m

US$m

US$m

US$m

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

170,002

105,796

156,798

29,963

881

463,440

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

240,744

132,718

1,044,507

76,145

75,513

(180,387)

1,389,240

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

191,024

121,648

184,473

57,125

739

555,009

2011

RetailBankingand WealthManagement US$m

Commercial

Banking US$m

Global Bankingand Markets US$m

GlobalPrivate Banking US$m

Other

US$m

Inter- segment

elimination85

US$m

Total US$m

Profit before tax

Net interest income/(expense) ...

5,653

3,107

2,102

936

(574)

(223)

11,001

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

2,633

1,640

989

942

32

-

6,236

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

40

5

602

191

(201)

-

637

Net interest income on trading activities .....

11

16

1,205

16

53

223

1,524

Net trading income/(expense)78 .

51

21

1,807

207

(148)

223

2,161

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

-

-

-

-

3,180

-

3,180

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

(672)

(21)

(65)

-

46

-

(712)

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

(672)

(21)

(65)

-

3,226

-

2,468

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

51

(1)

453

1

11

-

515

Dividend income ........

1

1

42

4

1

-

49

Net earned insurance premiums ................

3,768

381

-

-

(13)

-

4,136

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

95

58

187

5

760

74

1,179

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

11,580

5,186

5,515

2,095

3,295

74

27,745

Net insurance claims86

(3,212)

(287)

-

-

-

-

(3,499)

Net operating income21 ................................

8,368

4,899

5,515

2,095

3,295

74

24,246

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

(596)

(960)

(876)

(82)

2

-

(2,512)

Net operating income .

7,772

3,939

4,639

2,013

3,297

74

21,734

Total operating expenses .................

(6,450)

(2,252)

(4,569)

(1,456)

(2,268)

(74)

(17,069)

Operating profit .........

1,322

1,687

70

557

1,029

-

4,665

Share of profit/(loss) inassociates and joint ventures

-

-

7

-

(1)

-

6

Profit before tax ........

1,322

1,687

77

557

1,028

-

4,671

%

%

%

%

%

%

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

6.0

7.7

0.4

2.5

4.7

21.3

Cost efficiency ratio ...

77.1

46.0

82.8

69.5

68.8

70.4

Balance sheet data74

US$m

US$m

US$m

US$m

US$m

US$m

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

150,205

98,154

156,903

28,378

696

434,336

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

210,140

124,049

1,021,486

77,410

63,141

(214,281)

1,281,945

Customer accounts .....

176,134

104,530

154,208

58,265

267

493,404