Annual Financial Report - 19 of 44

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

elimination64

US$m

Total US$m

Profit/(loss) before tax

Net interest income/(expense)

4,519

2,229

882

25

(7)

(692)

6,956

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

939

610

196

36

-

-

1,781

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

68

106

372

5

(7)

-

544

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

-

-

134

-

8

692

834

Net trading income56 ..............

68

106

506

5

1

692

1,378

Net income from financial instruments designated atfair value ............................

424

124

2

-

-

-

550

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

11

1

124

1

-

-

137

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

10

3

1

-

-

-

14

Net earned insurance premiums

2,068

551

34

-

-

-

2,653

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

265

57

32

2

222

(250)

328

Total operating income ......

8,304

3,681

1,777

69

216

(250)

13,797

Net insurance claims65 ............

(1,850)

(478)

(16)

-

-

-

(2,344)

Net operating income52 ......

6,454

3,203

1,761

69

216

(250)

11,453

Loan impairment charges and other credit risk provisions .

(1,369)

(501)

(12)

-

(1)

-

(1,883)

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

5,085

2,702

1,749

69

215

(250)

9,570

Total operating expenses .......

(4,382)

(1,835)

(700)

(49)

(539)

250

(7,255)

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

703

867

1,049

20

(324)

-

2,315

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

-

-

-

-

-

-

-

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

703

867

1,049

20

(324)

-

2,315

%

%

%

%

%

%

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

3.2

4.0

4.8

0.1

(1.5)

10.6

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

67.9

57.3

39.8

71.0

249.5

63.3

Balance sheet data49

US$m

US$m

US$m

US$m

US$m

US$m

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

19,025

25,834

11,011

62

6

55,938

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

39,231

38,410

66,241

1,660

417

(1,070)

144,889

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

28,629

24,050

18,940

7,079

62

78,760

2010

Retail Bankingand Wealth Manage-

ment17

US$m

Commercial

Banking US$m

Global Banking and

Markets17

US$m

Global

Private Banking US$m

Other

US$m

Inter- segment

elimination64

US$m

Total US$m

Profit before tax

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

3,979

1,671

772

20

121

(252)

6,311

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

1,006

526

191

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)56

35

72

398

3

(27)

252

733

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 .........

98

34

15

2

221

(229)

141

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

7,121

2,766

1,502

57

306

(229)

11,523

Net insurance claims65 ............

(1,479)

(297)

(16)

-

-

-

(1,792)

Net operating income52 ..........

5,642

2,469

1,486

57

306

(229)

9,731

Loan impairment charges and other credit risk provisions .

(1,247)

(293)

(4)

-

-

-

(1,544)

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

4,395

2,176

1,482

57

306

(229)

8,187

Total operating expenses .......

(4,034)

(1,623)

(653)

(47)

(266)

229

(6,394)

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

361

553

829

10

40

-

1,793

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

1

1

-

-

-

-

2

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

362

554

829

10

40

-

1,795

%

%

%

%

%

%

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

1.9

2.9

4.3

0.1

0.2

9.4

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

71.5

65.7

43.9

82.5

86.9

65.7

Balance sheet data49

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 ............................

38,819

35,619

64,635

1,608

196

(939)

139,938

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

30,149

24,514

27,810

6,053

-

88,526