Annual Financial Report - 16 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 before tax

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

1,787

1,396

2,156

102

137

(187)

5,391

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

854

499

666

71

(7)

-

2,083

Trading income/(expense) excluding net interest income

96

188

1,002

67

(592)

-

761

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

(6)

(3)

100

-

14

187

292

Net trading income/(expense)78

90

185

1,102

67

(578)

187

1,053

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

-

-

-

-

(4)

-

(4)

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

109

1

(3)

-

3

-

110

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

109

1

(3)

-

(1)

-

106

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

(1)

2

(10)

-

25

-

16

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

-

-

1

-

4

-

5

Net earned insurance premiums

569

243

-

-

-

-

812

Gain on disposal of Ping An ...

-

-

-

-

3,012

-

3,012

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

211

64

82

68

1,571

(172)

1,824

Total operating income ......

3,619

2,390

3,994

308

4,163

(172)

14,302

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

(523)

(195)

-

-

-

-

(718)

Net operating income21 ......

3,096

2,195

3,994

308

4,163

(172)

13,584

Loan impairment charges and other credit risk provisions .

(234)

(154)

(48)

-

-

-

(436)

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

2,862

2,041

3,946

308

4,163

(172)

13,148

Total operating expenses .......

(2,238)

(993)

(1,279)

(149)

(1,319)

172

(5,806)

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

624

1,048

2,667

159

2,844

-

7,342

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

893

1,554

658

-

1

-

3,106

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

1,517

2,602

3,325

159

2,845

-

10,448

%

%

%

%

%

%

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

7.3

12.6

16.1

0.8

13.8

50.6

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

72.3

45.2

32.0

48.4

31.7

42.7

Balance sheet data74

US$m

US$m

US$m

US$m

US$m

US$m

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

46,027

43,968

44,721

3,238

165

138,119

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

55,509

59,123

201,774

12,142

24,534

(10,813)

342,269

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

63,230

44,865

64,392

11,095

39

183,621

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 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)78

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 claims86 ............

(351)

(240)

-

-

-

-

(591)

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

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 data74

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