Annual Financial Report - 14 of 48

2012

Retail Bankingand WealthManagement US$m

Commercial

Banking US$m

Global Bankingand Markets US$m

Global

Private Banking US$m

Other

US$m

Inter- segment

elimination85

US$m

Total US$m

Profit/(loss) before tax

Net interest income/(expense)

2,851

1,629

1,087

149

(482)

82

5,316

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

1,769

850

548

155

13

-

3,335

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

176

163

666

170

(2)

-

1,173

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

10

2

352

-

8

(82)

290

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

186

165

1,018

170

6

(82)

1,463

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

-

-

-

-

-

-

-

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

511

(53)

23

-

(34)

-

447

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

511

(53)

23

-

(34)

-

447

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

-

-

2

7

313

-

322

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

-

1

5

-

18

-

24

Net earned insurance premiums

5,294

655

8

-

-

-

5,957

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

711

253

77

13

1,152

(282)

1,924

Total operating income ......

11,322

3,500

2,768

494

986

(282)

18,788

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

(5,757)

(602)

(7)

-

-

-

(6,366)

Net operating income21 ......

5,565

2,898

2,761

494

986

(282)

12,422

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

(97)

3

17

3

-

-

(74)

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

5,468

2,901

2,778

497

986

(282)

12,348

Total operating expenses .......

(1,819)

(719)

(1,263)

(248)

(1,081)

282

(4,848)

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

3,649

2,182

1,515

249

(95)

-

7,500

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

45

6

3

-

28

-

82

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

3,694

2,188

1,518

249

(67)

-

7,582

%

%

%

%

%

%

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

17.9

10.6

7.3

1.2

(0.3)

36.7

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

32.7

24.8

45.7

50.2

109.6

39.0

Balance sheet data74

US$m

US$m

US$m

US$m

US$m

US$m

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

62,533

62,944

40,223

6,464

1,449

173,613

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

96,185

72,056

256,295

20,705

81,085

(7,992)

518,334

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

201,649

90,152

34,171

19,566

670

346,208

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

elimination85

US$m

Total US$m

Profit/(loss) before tax

Net interest income/(expense)

2,571

1,317

1,051

173

(464)

43

4,691

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

1,741

706

475

160

15

-

3,097

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

120

169

652

135

(116)

-

960

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

9

1

246

-

16

(43)

229

Net trading income/(expense)78

129

170

898

135

(100)

(43)

1,189

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

-

-

-

-

-

-

-

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

(475)

(72)

(5)

-

15

-

(537)

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

(475)

(72)

(5)

-

15

-

(537)

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

3

10

21

-

(10)

-

24

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

-

1

14

-

24

-

39

Net earned insurance premiums

4,317

758

13

-

-

-

5,088

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

505

175

79

8

1,185

(268)

1,684

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

8,791

3,065

2,546

476

665

(268)

15,275

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

(3,887)

(697)

(9)

-

-

-

(4,593)

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

4,904

2,368

2,537

476

665

(268)

10,682

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

(77)

(66)

23

(36)

-

-

(156)

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

4,827

2,302

2,560

440

665

(268)

10,526

Total operating expenses .......

(1,811)

(703)

(1,248)

(252)

(1,012)

268

(4,758)

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

3,016

1,599

1,312

188

(347)

-

5,768

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

6

9

4

-

36

-

55

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

3,022

1,608

1,316

188

(311)

-

5,823

%

%

%

%

%

%

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

13.8

7.3

6.0

0.9

(1.4)

26.6

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

36.9

29.7

49.2

52.9

152.2

44.5

Balance sheet data74

US$m

US$m

US$m

US$m

US$m

US$m

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

56,296

54,986

39,667

5,447

1,269

157,665

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

85,866

63,516

238,892

20,680

84,782

(20,712)

473,024

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

181,316

79,225

35,283

19,622

(101)

315,345