Annual Financial Report - 19 of 41

2010

Personal Financial Services US$m

Commercial

Banking US$m

Global Banking & Markets US$m

GlobalPrivate Banking US$m

Other

US$m

Inter- segment

elimination56

US$m

Total US$m

Profit/(loss) before tax

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

3,975

1,671

776

20

121

(252)

6,311

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

899

526

298

32

(6)

-

1,749

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

35

72

370

3

(27)

-

453

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

-

-

28

-

-

252

280

Net trading income/(expense)49

35

72

398

3

(27)

252

733

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

-

-

-

-

-

-

-

Net income from otherfinancial instrumentsdesignated at fair value .......

339

85

1

-

-

-

425

Net income from financial instruments designatedat fair value ........................

339

85

1

-

-

-

425

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

6

2

93

-

(3)

-

98

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

7

2

3

-

-

-

12

Net earned insurance premiums

1,651

374

29

-

-

-

2,054

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

90

34

23

2

221

(229)

141

Total operating income ......

7,002

2,766

1,621

57

306

(229)

11,523

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

(1,479)

(297)

(16)

-

-

-

(1,792)

Net operating income46 ......

5,523

2,469

1,605

57

306

(229)

9,731

Loan impairment charges and other credit risk provisions .

(1,247)

(293)

(4)

-

-

-

(1,544)

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

4,276

2,176

1,601

57

306

(229)

8,187

Total operating expenses .......

(3,983)

(1,623)

(704)

(47)

(266)

229

(6,394)

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

293

553

897

10

40

-

1,793

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

1

1

-

-

-

-

2

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

294

554

897

10

40

-

1,795

%

%

%

%

%

%

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

1.5

2.9

4.7

0.1

0.2

9.4

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

72.1

65.7

43.9

82.5

86.9

65.7

Balance sheet data45

US$m

US$m

US$m

US$m

US$m

US$m

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

20,823

24,879

12,242

43

-

57,987

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

38,764

35,619

64,690

1,608

196

(939)

139,938

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

30,149

24,514

27,810

6,053

-

88,526

2009

Personal Financial Services US$m

Commercial

Banking US$m

GlobalBanking & Markets US$m

GlobalPrivate Banking US$m

Other

US$m

Inter- segment

elimination56

US$m

Total US$m

Profit/(loss) before tax

Net interest income/(expense)

3,736

1,544

590

19

(5)

(311)

5,573

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

948

490

251

28

12

-

1,729

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

25

38

573

3

-

-

639

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

4

2

(108)

-

-

311

209

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

29

40

465

3

-

311

848

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

-

-

-

-

-

-

-

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

510

12

(38)

-

11

-

495

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

510

12

(38)

-

11

-

495

Gains less losses from financial investments ........................

91

-

77

-

-

-

168

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

9

1

1

-

-

-

11

Net earned insurance premiums

1,752

105

43

-

-

-

1,900

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

170

35

24

2

(1)

(97)

133

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

7,245

2,227

1,413

52

17

(97)

10,857

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

(1,750)

(58)

(25)

-

-

-

(1,833)

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

5,495

2,169

1,388

52

17

(97)

9,024

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

(2,046)

(534)

57

-

(3)

-

(2,526)

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

3,449

1,635

1,445

52

14

(97)

6,498

Total operating expenses .......

(3,666)

(1,236)

(514)

(41)

(15)

97

(5,375)

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

(217)

399

931

11

(1)

-

1,123

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

1

-

-

-

-

-

1

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

(216)

399

931

11

(1)

-

1,124

%

%

%

%

%

%

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

(3.1)

5.6

13.2

0.2

-

15.9

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

66.7

57.0

37.0

78.8

88.2

59.6

Balance sheet data45

US$m

US$m

US$m

US$m

US$m

US$m

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

19,748

18,205

9,645

31

-

47,629

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

35,236

23,212

57,491

328

281

(581)

115,967

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

30,628

19,775

20,142

2,344

-

72,889