Annual Financial Report - 15 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/(loss) before tax

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

553

473

334

-

14

(7)

1,367

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

200

258

202

17

-

-

677

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

59

85

205

1

(7)

-

343

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

1

7

18

-

(6)

7

27

Net trading income/(expense)49

60

92

223

1

(13)

7

370

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

1

-

(3)

-

(1)

-

(3)

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

2

1

4

-

-

-

7

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

27

(8)

(1)

1

40

(67)

(8)

Total operating income ......

843

816

759

19

40

(67)

2,410

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

-

-

-

-

-

-

-

Net operating income46 ......

843

816

759

19

40

(67)

2,410

Loan impairment charges and other credit risk provisions .

(227)

(145)

(255)

-

-

-

(627)

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

616

671

504

19

40

(67)

1,783

Total operating expenses .......

(524)

(297)

(263)

(18)

(43)

67

(1,078)

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

92

374

241

1

(3)

-

705

Share of profit/(loss) inassociates and joint ventures

8

110

76

(16)

9

-

187

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

100

484

317

(15)

6

-

892

%

%

%

%

%

%

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

0.5

2.6

1.7

(0.1)

-

4.7

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

62.2

36.4

34.7

94.7

107.5

44.7

Balance sheet data45

US$m

US$m

US$m

US$m

US$m

US$m

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

5,063

12,293

7,247

21

2

24,626

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

6,244

13,991

31,295

59

4,129

(2,961)

52,757

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

17,538

10,319

5,306

290

58

33,511

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/(loss) before tax

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

644

464

330

1

46

-

1,485

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

203

219

198

3

2

-

625

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

55

75

235

1

3

-

369

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

-

-

20

-

5

-

25

Net trading income49 ..............

55

75

255

1

8

-

394

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

12

(2)

1

-

5

-

16

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

-

-

3

-

-

-

3

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

35

39

35

(1)

39

(76)

71

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

949

795

822

4

100

(76)

2,594

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

-

-

-

-

-

-

-

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

949

795

822

4

100

(76)

2,594

Loan impairment charges and other credit risk provisions .

(588)

(573)

(173)

-

-

-

(1,334)

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

361

222

649

4

100

(76)

1,260

Total operating expenses .......

(508)

(269)

(255)

(6)

(39)

76

(1,001)

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

(147)

(47)

394

(2)

61

-

259

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

21

68

73

8

26

-

196

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

(126)

21

467

6

87

-

455

%

%

%

%

%

%

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

(1.8)

0.3

6.6

0.1

1.2

6.4

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

53.5

33.8

31.0

150.0

39.0

38.6

Balance sheet data45

US$m

US$m

US$m

US$m

US$m

US$m

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

5,979

10,281

6,554

28

2

22,844

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

6,810

11,861

28,189

96

4,952

(3,801)

48,107

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

15,074

10,122

5,752

1,172

409

32,529