Annual Financial Report - 13 of 56

2015

Retail Bankingand WealthManagement$m

Commercial

Banking$m

GlobalBanking andMarkets$m

GlobalPrivateBanking$m

Other

$m

Inter-segment

elimination44

$m

Total

$m

Profit/(loss) before tax

Net interest income/(expense)

5,128

3,433

1,848

471

(689)

(186)

10,005

Net fee income/(expense)

1,880

1,683

849

509

(30)

−

4,891

Trading income/(expense) excludingnet interest income

103

35

3,270

186

(203)

−

3,391

Net interest income/(expense)on trading activities

(3)

(6)

493

(3)

2

186

669

Net trading income/(expense)40

100

29

3,763

183

(201)

186

4,060

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

−

−

−

−

671

−

671

Net income/(expense) from other financial instruments designated at fair value

446

6

(70)

−

47

−

429

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

446

6

(70)

−

718

−

1,100

Gains less losses from financial investments

12

8

231

23

−

−

274

Dividend income

−

1

12

7

2

−

22

Net insurance premium income

2,295

135

−

42

−

−

2,472

Other operating income

360

7

61

7

1,229

(312)

1,352

Total operating income

10,221

5,302

6,694

1,242

1,029

(312)

24,176

Net insurance claims45

(2,918)

(139)

−

(61)

−

−

(3,118)

Net operating income1

7,303

5,163

6,694

1,181

1,029

(312)

21,058

Loan impairment (charges)/recoveries and other credit risk provisions

(260)

(475)

62

(18)

1

−

(690)

Net operating income

7,043

4,688

6,756

1,163

1,030

(312)

20,368

Total operating expenses

(5,851)

(2,368)

(5,715)

(1,149)

(4,962)

312

(19,733)

Operating profit/(loss)

1,192

2,320

1,041

14

(3,932)

−

635

Share of profit/(loss) in associates and joint ventures

2

(1)

7

−

−

−

8

Profit/(loss) before tax

1,194

2,319

1,048

14

(3,932)

−

643

%

%

%

%

%

%

Share of HSBC's profit before tax

6.3

12.3

5.6

0.1

(20.9)

3.4

Cost efficiency ratio

80.1

45.9

85.4

97.3

482.2

93.7

Balance sheet data30

$m

$m

$m

$m

$m

$m

Loans and advances to customers (net)

156,156

110,617

101,568

23,273

427

392,041

Total assets

205,866

124,105

804,373

56,470

57,943

(119,392)

1,129,365

Customer accounts

200,437

132,928

126,225

37,810

476

497,876

2014

RetailBankingand WealthManagement$m

Commercial

Banking$m

GlobalBanking andMarkets$m

GlobalPrivateBanking$m

Other

$m

Inter-segment

elimination44

$m

Total

$m

Profit/(loss) before tax

Net interest income/(expense)

5,196

3,616

1,956

594

(654)

(97)

10,611

Net fee income/(expense)

2,456

1,900

1,087

626

(27)

−

6,042

Trading income/(expense) excludingnet interest income

(260)

33

1,943

140

(92)

−

1,764

Net interest income/(expense)on trading activities

14

2

660

(4)

1

97

770

Net trading income/(expense)40

(246)

35

2,603

136

(91)

97

2,534

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

−

−

−

−

614

−

614

Net income/(expense) from other financial instruments designated at fair value

616

119

14

(1)

(11)

−

737

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

616

119

14

(1)

603

−

1,351

Gains less losses from financial investments

12

10

730

9

11

−

772

Dividend income

3

7

50

2

3

−

65

Net insurance premium income

2,741

217

−

50

−

−

3,008

Other operating income/(expense)

(127)

45

(3)

29

1,249

(186)

1,007

Total operating income

10,651

5,949

6,437

1,445

1,094

(186)

25,390

Net insurance claims45

(3,450)

(306)

−

(63)

−

−

(3,819)

Net operating income1

7,201

5,643

6,437

1,382

1,094

(186)

21,571

Loan impairment (charges)/recoveries and other credit risk provisions

(268)

(502)

−

4

2

−

(764)

Net operating income

6,933

5,141

6,437

1,386

1,096

(186)

20,807

Total operating expenses

(6,621)

(2,594)

(6,391)

(1,071)

(3,726)

186

(20,217)

Operating profit/(loss)

312

2,547

46

315

(2,630)

−

590

Share of profit in associates and joint ventures

2

1

3

−

−

−

6

Profit/(loss) before tax

314

2,548

49

315

(2,630)

−

596

%

%

%

%

%

%

Share of HSBC's profit before tax

1.7

13.6

0.3

1.7

(14.1)

3.2

Cost efficiency ratio

91.9

46.0

99.3

77.5

340.6

93.7

Balance sheet data30

$m

$m

$m

$m

$m

$m

Loans and advances to customers (net)

165,112

106,342

113,136

24,766

377

409,733

Total assets

221,679

120,819

948,951

64,676

64,182

(129,381)

1,290,926

Customer accounts

202,413

135,837

166,075

41,380

254

545,959