Annual Financial Report - 20 of 48

2012

Retail Bankingand WealthManagement US$m

Commercial

Banking89

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

5,481

1,443

948

192

118

(65)

8,117

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

923

562

716

124

188

-

2,513

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

(216)

47

466

20

16

-

333

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

17

1

91

-

-

65

174

Net trading income/(expense)78

(199)

48

557

20

16

65

507

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

-

-

-

-

(1,219)

-

(1,219)

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

-

-

-

-

-

-

-

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

-

-

-

-

(1,219)

-

(1,219)

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

27

-

223

(7)

8

-

251

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

15

11

32

3

-

-

61

Net earned insurance premiums

193

-

-

-

-

-

193

Gains on disposal of US branch network and cards business ..

3,735

277

-

-

-

-

4,012

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

173

149

191

5

1,787

(1,899)

406

Total operating income ......

10,348

2,490

2,667

337

898

(1,899)

14,841

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

(148)

-

-

-

-

-

(148)

Net operating income21 ......

10,200

2,490

2,667

337

898

(1,899)

14,693

Loan impairment (charges)/ recoveries and othercredit risk provisions ..........

(3,241)

(148)

(71)

3

-

-

(3,457)

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

6,959

2,342

2,596

340

898

(1,899)

11,236

Total operating expenses .......

(3,966)

(1,144)

(1,639)

(268)

(3,822)

1,899

(8,940)

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

2,993

1,198

957

72

(2,924)

-

2,296

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

2

1

-

-

-

-

3

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

2,995

1,199

957

72

(2,924)

-

2,299

%

%

%

%

%

%

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

14.5

5.8

4.6

0.3

(14.2)

11.1

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

38.9

45.9

61.5

79.5

425.6

60.8

Balance sheet data74

US$m

US$m

US$m

US$m

US$m

US$m

Loans and advances to customers (net) reported in:

- loans and advances to customers (net) ................

76,414

36,387

22,498

5,457

-

140,756

- assets held for sale(disposal groups) ..............

3,899

-

-

-

-

3,899

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

101,103

48,604

345,040

8,828

12,659

(25,987)

490,247

Customer accounts reported in:

- customer accounts ...........

57,758

48,080

29,595

13,553

51

149,037

2011

Retail Bankingand WealthManagement US$m

Commercial

Banking89

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

8,931

1,528

893

187

9

(68)

11,480

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

1,836

551

773

149

(1)

-

3,308

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

(946)

34

261

17

(26)

-

(660)

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

25

1

205

-

(1)

68

298

Net trading income/(expense)78

(921)

35

466

17

(27)

68

(362)

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

-

-

-

-

967

-

967

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

-

-

(5)

-

2

-

(3)

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

-

-

(5)

-

969

-

964

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

58

7

195

-

2

-

262

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

15

9

13

3

-

-

40

Net earned insurance premiums

236

-

-

-

-

-

236

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

(125)

110

193

11

2,244

(2,207)

226

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

10,030

2,240

2,528

367

3,196

(2,207)

16,154

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

(154)

-

-

-

-

-

(154)

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

9,876

2,240

2,528

367

3,196

(2,207)

16,000

Loan impairment (charges)/ recoveries and othercredit risk provisions ..........

(6,929)

(105)

(11)

30

(1)

-

(7,016)

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

2,947

2,135

2,517

397

3,195

(2,207)

8,984

Total operating expenses .......

(5,615)

(1,166)

(1,642)

(307)

(2,396)

2,207

(8,919)

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

(2,668)

969

875

90

799

-

65

Share of profit/(loss) inassociates and joint ventures

3

33

-

-

(1)

-

35

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

(2,665)

1,002

875

90

798

-

100

%

%

%

%

%

%

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

(12.2)

4.6

4.0

0.4

3.7

0.5

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

56.9

52.1

65.0

83.7

75.0

55.7

Balance sheet data74

US$m

US$m

US$m

US$m

US$m

US$m

Loans and advances to customers (net) reported in:

- loans and advances to customers (net) ................

86,490

32,215

19,289

4,753

-

142,747

- assets held for sale(disposal groups) ..............

31,058

520

-

-

-

31,578

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

144,278

43,747

320,783

7,138

10,378

(22,022)

504,302

Customer accounts reported in:

- customer accounts ...........

63,558

47,003

30,465

14,862

94

155,982

- liabilities of disposalgroups held for sale ..........

10,104

5,040

-

-

-

15,144