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Annual Financial Report - 36 of 44

27th Mar 2012 16:54

RNS Number : 1527A

HSBC Holdings PLC

27 March 2012

Profit/(loss) for the year

	Europe	Hong Kong	Rest of Asia- Pacific	MENA	North America	Latin America	Intra- HSBC items	Total
	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m
2011

Net interest income ........................	11,001	4,691	5,102	1,432	11,480	6,956	-	40,662

Net fee income ...............................	6,236	3,097	2,111	627	3,308	1,781	-	17,160

Net trading income/(expense) .........	2,161	1,189	1,658	482	(362)	1,378	-	6,506

Other income .................................	4,848	1,705	1,842	66	1,574	1,338	(3,421)	7,952

Net operating income1 ....................	24,246	10,682	10,713	2,607	16,000	11,453	(3,421)	72,280

Loan impairment charges and othercredit risk provisions ...................	(2,512)	(156)	(267)	(293)	(7,016)	(1,883)	-	(12,127)

Net operating income .....................	21,734	10,526	10,446	2,314	8,984	9,570	(3,421)	60,153

Employee compensation and benefits ....................................................	(7,621)	(2,610)	(3,179)	(659)	(3,928)	(3,169)	-	(21,166)
General and administrative expenses ....................................................	(8,473)	(1,724)	(2,378)	(458)	(4,404)	(3,443)	3,421	(17,459)
Depreciation and impairment ofproperty, plant and equipment ....	(581)	(245)	(198)	(36)	(261)	(249)	-	(1,570)
Amortisation and impairment ofintangible assets ..........................	(394)	(179)	(51)	(6)	(326)	(394)	-	(1,350)

Total operating expenses ................	(17,069)	(4,758)	(5,806)	(1,159)	(8,919)	(7,255)	3,421	(41,545)

Operating profit .............................	4,665	5,768	4,640	1,155	65	2,315	-	18,608

Share of profit in associates and joint ventures ......................................	6	55	2,831	337	35	-	-	3,264

Profit before tax .............................	4,671	5,823	7,471	1,492	100	2,315	-	21,872

Tax income/(expense) ....................	(1,589)	(1,043)	(1,315)	(266)	958	(673)	-	(3,928)

Profit for the year ..........................	3,082	4,780	6,156	1,226	1,058	1,642	-	17,944

2010

Net interest income ........................	11,250	4,246	3,828	1,367	12,439	6,311	-	39,441

Net fee income ...............................	6,371	2,962	1,932	677	3,664	1,749	-	17,355

Net trading income .........................	2,863	1,312	1,618	370	314	733	-	7,210

Other income/(expense) .................	2,266	1,682	1,854	(4)	630	938	(3,125)	4,241

Net operating income1 ....................	22,750	10,202	9,232	2,410	17,047	9,731	(3,125)	68,247

Loan impairment charges and othercredit risk provisions ...................	(3,020)	(114)	(439)	(627)	(8,295)	(1,544)	-	(14,039)

Net operating income .....................	19,730	10,088	8,793	1,783	8,752	8,187	(3,125)	54,208

Employee compensation and benefits ....................................................	(7,875)	(2,341)	(2,719)	(579)	(3,672)	(2,650)	-	(19,836)
General and administrative expenses ....................................................	(6,499)	(1,686)	(2,181)	(450)	(4,179)	(3,286)	3,125	(15,156)
Depreciation and impairment ofproperty, plant and equipment ....	(719)	(237)	(189)	(42)	(288)	(238)	-	(1,713)
Amortisation and impairment ofintangible assets ..........................	(352)	(167)	(54)	(7)	(183)	(220)	-	(983)

Total operating expenses ................	(15,445)	(4,431)	(5,143)	(1,078)	(8,322)	(6,394)	3,125	(37,688)

Operating profit .............................	4,285	5,657	3,650	705	430	1,793	-	16,520

Share of profit in associates and joint ventures ......................................	17	35	2,252	187	24	2	-	2,517

Profit before tax .............................	4,302	5,692	5,902	892	454	1,795	-	19,037

Tax expense ...................................	(1,006)	(987)	(962)	(138)	(1,180)	(573)	-	(4,846)

Profit/(loss) for the year .................	3,296	4,705	4,940	754	(726)	1,222	-	14,191

Profit/(loss) for the year (continued)

	Europe	Hong Kong	Rest of Asia- Pacific	MENA	North America	Latin America	Intra- HSBC items	Total
	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m
2009

Net interest income ........................	12,268	4,195	3,539	1,485	13,670	5,573	-	40,730

Net fee income ...............................	6,267	2,669	1,557	625	4,817	1,729	-	17,664

Net trading income .........................	5,459	1,225	1,606	394	331	848	-	9,863

Other income/(expense) .................	(450)	1,378	1,301	90	(2,513)	874	(2,756)	(2,076)

Net operating income1 ....................	23,544	9,467	8,003	2,594	16,305	9,024	(2,756)	66,181

Loan impairment charges and othercredit risk provisions ...................	(5,568)	(500)	(896)	(1,334)	(15,664)	(2,526)	-	(26,488)

Net operating income .....................	17,976	8,967	7,107	1,260	641	6,498	(2,756)	39,693

Employee compensation and benefits ....................................................	(7,174)	(2,102)	(2,363)	(545)	(4,085)	(2,199)	-	(18,468)
General and administrative expenses ....................................................	(5,775)	(1,502)	(1,872)	(419)	(3,794)	(2,786)	2,756	(13,392)
Depreciation and impairment ofproperty, plant and equipment ....	(762)	(224)	(172)	(31)	(329)	(207)	-	(1,725)
Amortisation and impairment ofintangible assets ..........................	(277)	(118)	(43)	(6)	(183)	(183)	-	(810)

Total operating expenses ................	(13,988)	(3,946)	(4,450)	(1,001)	(8,391)	(5,375)	2,756	(34,395)

Operating profit/(loss) ....................	3,988	5,021	2,657	259	(7,750)	1,123	-	5,298

Share of profit in associates andjoint ventures ..............................	21	8	1,543	196	12	1	-	1,781

Profit/(loss) before tax ...................	4,009	5,029	4,200	455	(7,738)	1,124	-	7,079

Tax income/(expense) ....................	(776)	(869)	(753)	(94)	2,285	(178)	-	(385)

Profit/(loss) for the year .................	3,233	4,160	3,447	361	(5,453)	946	-	6,694

1 Net operating income before loan impairment charges and other credit risk provisions.

Other information about the profit/(loss) for the year

	Europe	Hong Kong	Rest of Asia- Pacific	MENA	North America	Latin America	Intra- HSBC items	Total
	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m
2011
Net operating income ...........	21,734	10,526	10,446	2,314	8,984	9,570	(3,421)	60,153
External ............................	20,676	9,442	9,396	2,316	8,744	9,579	-	60,153
Inter-segment ...................	1,058	1,084	1,050	(2)	240	(9)	(3,421)	-

Profit for the year includes the following significantnon-cash items:
Depreciation, amortisationand impairment .............	975	424	249	42	802	643	-	3,135
Loan impairment losses grossof recoveries and othercredit risk provisions .....	3,085	202	453	395	7,147	2,271	-	13,553
Impairment of financial investments ..................	705	55	25	13	9	1	-	808
Changes in fair value oflong-term debt and related derivatives ........................	3,180	-	4	10	967	-	-	4,161
Restructuring costs ................	357	47	34	27	73	259	-	797

2010
Net operating income ...........	19,730	10,088	8,793	1,783	8,752	8,187	(3,125)	54,208
External ............................	18,881	9,170	7,728	1,774	8,504	8,151	-	54,208
Inter-segment ...................	849	918	1,065	9	248	36	(3,125)	-

Profit/(loss) for the year includes the following significantnon-cash items:
Depreciation, amortisationand impairment .............	1,071	404	243	49	576	458	-	2,801
Loan impairment losses grossof recoveries and othercredit risk provisions .....	3,303	169	615	684	8,476	1,812	-	15,059
Impairment of financial investments ..................	33	41	4	5	21	1	-	105
Changes in fair value oflong-term debt and related derivatives ........................	(365)	(2)	(2)	-	111	-	-	(258)
Restructuring costs ................	86	15	36	5	13	3	-	158

2009
Net operating income ...........	17,976	8,967	7,107	1,260	641	6,498	(2,756)	39,693
External ............................	16,734	8,352	6,056	1,283	767	6,501	-	39,693
Inter-segment ...................	1,242	615	1,051	(23)	(126)	(3)	(2,756)	-

Profit/(loss) for the year includes the following significantnon-cash items:
Depreciation, amortisationand impairment .............	1,039	342	215	37	515	390	-	2,538
Loan impairment losses grossof recoveries and othercredit risk provisions .....	5,833	534	1,028	1,361	15,757	2,865	-	27,378
Impairment of financial investments ..................	137	129	50	4	38	-	-	358
Changes in fair value oflong-term debt and related derivatives ........................	(2,746)	(3)	(1)	-	(3,497)	-	-	(6,247)
Restructuring costs ................	79	7	42	2	153	17	-	300

Balance sheet information

	Europe	Hong Kong	Rest of Asia- Pacific	MENA	North America	Latin America	Intra- HSBC items	Total
	US$m	US$m	US$m	US$m	US$m	US$m	US$m	US$m
At 31 December 2011
Loans and advances tocustomers (net) .................	434,336	157,665	123,868	25,875	142,747	55,938	-	940,429
Interests in associates andjoint ventures ....................	150	196	17,916	2,036	101	-	-	20,399
Total assets ..........................	1,281,945	473,024	317,816	57,464	504,302	144,889	(223,861)	2,555,579
Customer accounts ................	493,404	315,345	174,012	36,422	155,982	78,760	-	1,253,925
Total liabilities .....................	1,224,386	458,179	288,485	49,005	464,990	128,302	(223,861)	2,389,486

Capital expenditure incurred1	1,177	432	207	29	342	951	-	3,138

At 31 December 2010
Loans and advances tocustomers (net) .................	435,799	140,691	108,731	24,626	190,532	57,987	-	958,366
Interests in associates andjoint ventures ....................	186	207	15,035	1,661	104	5	-	17,198
Total assets ..........................	1,249,527	429,565	278,062	52,757	492,487	139,938	(187,647)	2,454,689
Customer accounts ................	491,563	297,484	158,155	33,511	158,486	88,526	-	1,227,725
Total liabilities .....................	1,189,996	422,101	246,989	45,379	459,301	123,655	(187,647)	2,299,774

Capital expenditure incurred1	865	836	168	46	774	788	-	3,477

At 31 December 2009
Loans and advances tocustomers (net) .................	439,481	99,381	80,043	22,844	206,853	47,629	-	896,231
Interests in associates andjoint ventures ....................	147	157	11,083	1,573	42	9	-	13,011
Total assets ..........................	1,268,600	399,243	222,139	48,107	475,014	115,967	(164,618)	2,364,452
Customer accounts ................	495,019	275,441	133,999	32,529	149,157	72,889	-	1,159,034
Total liabilities .....................	1,213,907	384,912	203,243	42,325	447,530	101,492	(164,618)	2,228,791

Capital expenditure incurred1	983	290	159	102	658	540	-	2,732

1 Expenditure incurred on property, plant and equipment and other intangible assets. Excludes assets acquired as part of business combinations and goodwill.

Other financial information

Net operating income by global business

	RBWM1	CMB		GB&M1	GPB	Other2	Intra- HSBC items	Total
	US$m		US$m	US$m	US$m	US$m	US$m	US$m
2011
Net operating income ............	24,214		13,873	16,073	3,206	9,145	(6,358)	60,153
External .............................	22,705		13,624	18,897	2,121	2,806	-	60,153
Internal ..............................	1,509		249	(2,824)	1,085	6,339	(6,358)	-

2010
Net operating income ............	22,352		12,029	17,922	3,105	4,663	(5,863)	54,208
External .............................	20,797		11,419	20,822	2,194	(1,024)	-	54,208
Internal ..............................	1,555		610	(2,900)	911	5,687	(5,863)	-

2009
Net operating income ............	16,395		9,571	17,770	2,984	(2,031)	(4,996)	39,693
External .............................	14,847		9,285	20,340	2,275	(7,054)	-	39,693
Internal ..............................	1,548		286	(2,570)	709	5,023	(4,996)	-

1 With effect from 1 March 2011, our Global Asset Management business was moved from GB&M to RBWM. This resulted in a reallocation between the two of US$1,035m and US$882m in net operating income in 2010 and 2009, respectively. The numbers have been adjusted accordingly.

2 The main items reported in the 'Other' category are certain property activities, unallocated investment activities, centrally held investment companies, movements in fair value of own debt and HSBC's holding company and financing operations. The 'Other' category also includes gains and losses on the disposal of certain significant subsidiaries or business units.

Information by country

	2011		2010		2009
	External net operating income1	Non- current assets2	External net operating income1	Non- current assets2	External net operating income1	Non- current assets2
	US$m	US$m	US$m	US$m	US$m	US$m

UK ..............................................................	13,940	21,414	11,467	19,661	9,958	19,704
Hong Kong ..................................................	9,442	6,257	9,170	4,630	8,352	3,374
USA ............................................................	6,193	3,830	6,098	6,669	(1,042)	5,499
France .........................................................	2,570	10,790	3,185	10,914	3,322	11,782
Brazil ..........................................................	5,282	2,149	4,506	2,025	3,368	1,868
Other countries ...........................................	22,726	31,590	19,782	29,747	15,735	25,557

	60,153	76,030	54,208	73,646	39,693	67,784

1 External net operating income is attributed to countries on the basis of the location of the branch responsible for reporting the results or advancing the funds.

2 Non-current assets consist of property, plant and equipment, goodwill, other intangible assets, interests in associates and joint ventures and certain other assets expected to be recovered more than twelve months after the reporting period.

14 Analysis of financial assets and liabilities by measurement basis

Financial assets and financial liabilities are measured on an ongoing basis either at fair value or at amortised cost. The summary of significant accounting policies in Note 2 describes how the classes of financial instruments are measured, and how income and expenses, including fair value gains and losses, are recognised. The following table analyses the carrying amounts of the financial assets and liabilities by category as defined in IAS 39 and by balance sheet heading.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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