Annual Financial Report - 13 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 before tax

Net interest income ...............

1,581

938

1,435

91

55

(272)

3,828

Net fee income/(expense) ......

668

442

777

55

(10)

-

1,932

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

81

129

966

69

(38)

-

1,207

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

-

-

138

-

1

272

411

Net trading income/(expense)49

81

129

1,104

69

(37)

272

1,618

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

-

-

-

-

(2)

-

(2)

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

41

2

(1)

-

(16)

-

26

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

41

2

(1)

-

(18)

-

24

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

1

3

50

-

92

-

146

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

-

-

1

-

-

-

1

Net earned insurance premiums

386

62

-

-

-

-

448

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

108

86

56

1

1,499

(152)

1,598

Total operating income ......

2,866

1,662

3,422

216

1,581

(152)

9,595

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

(324)

(39)

-

-

-

-

(363)

Net operating income46 ......

2,542

1,623

3,422

216

1,581

(152)

9,232

Loan impairment charges and other credit risk provisions .

(298)

(19)

(122)

-

-

-

(439)

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

2,244

1,604

3,300

216

1,581

(152)

8,793

Total operating expenses .......

(2,164)

(799)

(1,163)

(135)

(1,034)

152

(5,143)

Operating profit .................

80

805

2,137

81

547

-

3,650

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

986

751

447

-

68

-

2,252

Profit before tax ..................

1,066

1,556

2,584

81

615

-

5,902

%

%

%

%

%

%

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

5.6

8.2

13.6

0.4

3.2

31.0

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

85.1

49.2

34.0

62.5

65.4

55.7

Balance sheet data45

US$m

US$m

US$m

US$m

US$m

US$m

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

37,831

31,423

35,810

3,489

178

108,731

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

49,508

41,588

166,960

12,126

19,450

(11,570)

278,062

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

54,741

36,943

53,752

12,620

99

158,155

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 before tax

Net interest income ...............

1,493

807

1,174

115

91

(141)

3,539

Net fee income/(expense) ......

554

331

636

55

(19)

-

1,557

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

80

134

1,013

55

(18)

-

1,264

Net interest income/(expense)on trading activities ............

(1)

-

202

-

-

141

342

Net trading income/(expense)49

79

134

1,215

55

(18)

141

1,606

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

-

-

-

-

(1)

-

(1)

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

110

1

(2)

-

2

-

111

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

110

1

(2)

-

1

-

110

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

5

2

(7)

-

(19)

-

(19)

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

-

-

1

-

1

-

2

Net earned insurance premiums

337

28

-

-

-

-

365

Other operating income/(expense) ...........................

67

66

41

(2)

1,200

(134)

1,238

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

2,645

1,369

3,058

223

1,237

(134)

8,398

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

(380)

(15)

-

-

-

-

(395)

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

2,265

1,354

3,058

223

1,237

(134)

8,003

Loan impairment charges and other credit risk provisions .

(649)

(221)

(23)

(2)

(1)

-

(896)

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

1,616

1,133

3,035

221

1,236

(134)

7,107

Total operating expenses .......

(1,839)

(636)

(1,006)

(131)

(972)

134

(4,450)

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

(223)

497

2,029

90

264

-

2,657

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

686

567

290

-

-

-

1,543

Profit before tax ....................

463

1,064

2,319

90

264

-

4,200

%

%

%

%

%

%

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

6.5

15.0

32.8

1.3

3.7

59.3

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

81.2

47.0

32.9

58.7

78.6

55.6

Balance sheet data45

US$m

US$m

US$m

US$m

US$m

US$m

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

30,433

22,595

23,989

2,834

192

80,043

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

40,266

31,221

138,884

11,928

7,160

(7,320)

222,139

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

47,573

30,196

43,698

12,496

36

133,999