Annual Financial Report - 22 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/(loss) before tax

Net interest income/(expense)

4,145

2,173

993

30

(2)

(355)

6,984

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

873

622

207

33

-

-

1,735

Trading income excludingnet interest income ............

85

99

398

3

1

-

586

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

-

-

29

-

1

355

385

Net trading income78 ..............

85

99

427

3

2

355

971

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

-

-

-

-

-

-

-

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

503

163

1

-

-

-

667

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

503

163

1

-

-

-

667

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

75

21

131

-

-

-

227

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

9

5

1

-

-

-

15

Net earned insurance premiums

1,985

450

17

-

-

-

2,452

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

309

(9)

6

3

134

(190)

253

Total operating income ......

7,984

3,524

1,783

69

134

(190)

13,304

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

(1,875)

(469)

(9)

-

-

-

(2,353)

Net operating income21 ......

6,109

3,055

1,774

69

134

(190)

10,951

Loan impairment charges and other credit risk provisions .

(1,541)

(581)

(13)

(2)

-

-

(2,137)

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

4,568

2,474

1,761

67

134

(190)

8,814

Total operating expenses .......

(3,960)

(1,723)

(608)

(47)

(282)

190

(6,430)

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

608

751

1,153

20

(148)

-

2,384

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

-

-

-

-

-

-

-

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

608

751

1,153

20

(148)

-

2,384

%

%

%

%

%

%

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

2.9

3.6

5.6

0.1

(0.7)

11.6

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

64.8

56.4

34.3

68.1

210.4

58.7

Balance sheet data74

US$m

US$m

US$m

US$m

US$m

US$m

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

17,236

25,379

10,903

91

-

53,609

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

36,141

35,507

58,272

570

1,110

(323)

131,277

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

28,688

20,834

12,604

4,430

-

66,556

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/(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 income78 ..............

68

106

506

5

1

692

1,378

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

-

-

-

-

-

-

-

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

424

124

2

-

-

-

550

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

(1,850)

(478)

(16)

-

-

-

(2,344)

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

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 data74

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