Annual Financial Report - 13 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 before tax

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

1,838

1,254

1,964

116

123

(193)

5,102

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

904

513

621

82

(9)

-

2,111

Trading income/(expense) excluding net interest income

94

156

1,153

66

(90)

-

1,379

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

(2)

1

76

-

11

193

279

Net trading income/(expense)56

92

157

1,229

66

(79)

193

1,658

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

-

-

-

-

4

-

4

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

(38)

2

1

-

15

-

(20)

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

(38)

2

1

-

19

-

(16)

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

-

2

(25)

1

(1)

-

(23)

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

-

-

2

-

-

-

2

Net earned insurance premiums

493

266

-

-

-

-

759

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

145

72

75

5

1,592

(178)

1,711

Total operating income ......

3,434

2,266

3,867

270

1,645

(178)

11,304

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

(351)

(240)

-

-

-

-

(591)

Net operating income52 ......

3,083

2,026

3,867

270

1,645

(178)

10,713

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

(222)

10

(57)

2

-

-

(267)

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

2,861

2,036

3,810

272

1,645

(178)

10,446

Total operating expenses .......

(2,409)

(945)

(1,268)

(181)

(1,181)

178

(5,806)

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

452

1,091

2,542

91

464

-

4,640

Share of profit/(loss) inassociates and joint ventures

1,189

1,155

547

-

(60)

-

2,831

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

1,641

2,246

3,089

91

404

-

7,471

%

%

%

%

%

%

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

7.5

10.3

14.1

0.4

1.9

34.2

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

78.1

46.6

32.8

67.0

71.8

54.2

Balance sheet data49

US$m

US$m

US$m

US$m

US$m

US$m

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

40,970

38,404

41,114

3,190

190

123,868

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

54,484

50,688

195,549

12,879

16,616

(12,400)

317,816

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

60,831

40,423

60,855

11,872

31

174,012

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 before tax

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

1,581

938

1,435

91

55

(272)

3,828

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

834

442

611

55

(10)

-

1,932

Trading income/(expense) excluding net interest income

80

129

967

69

(38)

-

1,207

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

-

-

138

-

1

272

411

Net trading income/(expense)56

80

129

1,105

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 .........

-

3

51

-

92

-

146

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

-

-

1

-

-

-

1

Net earned insurance premiums

386

62

-

-

-

-

448

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

109

86

55

1

1,499

(152)

1,598

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

3,031

1,662

3,257

216

1,581

(152)

9,595

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

(324)

(39)

-

-

-

-

(363)

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

2,707

1,623

3,257

216

1,581

(152)

9,232

Loan impairment charges and other credit risk provisions .

(298)

(19)

(122)

-

-

-

(439)

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

2,409

1,604

3,135

216

1,581

(152)

8,793

Total operating expenses .......

(2,233)

(799)

(1,094)

(135)

(1,034)

152

(5,143)

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

176

805

2,041

81

547

-

3,650

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

986

751

447

-

68

-

2,252

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

1,162

1,556

2,488

81

615

-

5,902

%

%

%

%

%

%

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

6.1

8.2

13.1

0.4

3.2

31.0

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

82.5

49.2

33.6

62.5

65.4

55.7

Balance sheet data49

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

49,758

41,588

166,710

12,126

19,450

(11,570)

278,062

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

54,741

36,943

53,752

12,620

99

158,155