Annual Financial Report - 20x of 48

2012

2011

Card and RetailServices US$m

Run-offportfolios US$m

Rest of RBWM US$m

NorthAmerica RBWM

US$m

Card and Retail Services US$m

Run-offportfolios US$m

Rest of RBWM US$m

North America RBWM US$m

Profit/(loss) before tax

Net interest income ....

1,267

2,563

1,651

5,481

4,128

2,990

1,813

8,931

Net fee income/(expense) ...

395

33

495

923

1,273

(49)

612

1,836

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

-

(226)

10

(216)

-

(1,145)

199

(946)

Net interest income ontrading activities .....

-

-

17

17

-

-

25

25

Net trading income/(expense)78 .

-

(226)

27

(199)

-

(1,145)

224

(921)

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

-

-

27

27

-

55

3

58

Dividend income ........

-

3

12

15

-

5

10

15

Net earned insurance premiums.................

-

-

193

193

-

230

6

236

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

3,148

-

587

3,735

-

-

-

-

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

7

23

143

173

61

(185)

(1)

(125)

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

4,817

2,396

3,135

10,348

5,462

1,901

2,667

10,030

Net insurance claims86

-

-

(148)

(148)

-

(156)

2

(154)

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

4,817

2,396

2,987

10,200

5,462

1,745

2,669

9,876

Loan impairment charges and other credit risk provisions ................................ ................................

(322)

(2,569)

(350)

(3,241)

(1,600)

(4,982)

(347)

(6,929)

Net operating income/(expense) ..............

4,495

(173)

2,637

6,959

3,862

(3,237)

2,322

2,947

Total operating expenses .................

(729)

(1,103)

(2,134)

(3,966)

(1,801)

(1,238)

(2,576)

(5,615)

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

3,766

(1,276)

503

2,993

2,061

(4,475)

(254)

(2,668)

Share of profit in associatesand joint ventures ...

-

2

-

2

-

3

-

3

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

3,766

(1,274)

503

2,995

2,061

(4,472)

(254)

(2,665)

%

%

%

%

%

%

%

%

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

18.2

(6.2)

2.4

14.5

9.4

(20.4)

(1.2)

(12.2)

Cost efficiency ratio ...

15.1

46.0

71.4

38.9

33.0

70.9

96.5

56.9

Balance sheet data74

US$m

US$m

US$m

US$m

US$m

US$m

US$m

US$m

Loans and advances to customers (net) reported in:

- loans and advances tocustomers............

-

34,260

42,154

76,414

-

43,543

42,947

86,490

- assets held for sale ............................

-

3,463

436

3,899

29,137

-

1,921

31,058

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

-

54,382

46,721

101,103

30,635

56,830

56,813

144,278

Customer accounts reported in:

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

-

-

57,758

57,758

-

-

63,558

63,558

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

-

-

-

-

-

-

10,104

10,104