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Annual Financial Report - 41 of 48

3rd Apr 2013 17:01

RNS Number : 3932B

HSBC Holdings PLC

03 April 2013

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
2012

Net interest income ........................	10,394	5,316	5,391	1,470	8,117	6,984	-	37,672
Net fee income ...............................	6,169	3,335	2,083	595	2,513	1,735	-	16,430
Net trading income/(expense) .........	2,707	1,463	1,053	390	507	971	-	7,091
Gains on disposal of US branchnetwork, US cards business andPing An ......................................	−	−	3,012	-	4,012	-	−	7,024
Other income .................................	(1,662)	2,308	2,045	(25)	(456)	1,261	(3,358)	113

Net operating income1 ....................	17,608	12,422	13,584	2,430	14,693	10,951	(3,358)	68,330

Loan impairment charges and othercredit risk provisions ...................	(1,921)	(74)	(436)	(286)	(3,457)	(2,137)	-	(8,311)

Net operating income .....................	15,687	12,348	13,148	2,144	11,236	8,814	(3,358)	60,019

Employee compensation and benefits ....................................................	(8,070)	(2,572)	(3,140)	(652)	(3,243)	(2,814)	-	(20,491)
General and administrative expenses ....................................................	(10,059)	(1,860)	(2,433)	(459)	(5,413)	(3,117)	3,358	(19,983)
Depreciation and impairment ofproperty, plant and equipment ....	(597)	(236)	(191)	(44)	(195)	(221)	-	(1,484)
Amortisation and impairment ofintangible assets ..........................	(369)	(180)	(42)	(11)	(89)	(278)	-	(969)

Total operating expenses ................	(19,095)	(4,848)	(5,806)	(1,166)	(8,940)	(6,430)	3,358	(42,927)

Operating profit .............................	(3,408)	7,500	7,342	978	2,296	2,384	−	17,092

Share of profit in associates and joint ventures ......................................	(6)	82	3,106	372	3	-	-	3,557

Profit before tax .............................	(3,414)	7,582	10,448	1,350	2,299	2,384	-	20,649

Tax income/(expense) ....................	(173)	(1,095)	(1,616)	(254)	(1,313)	(864)	-	(5,315)

Profit for the year ..........................	(3,587)	6,487	8,832	1,096	986	1,520	-	15,334

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

	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
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 andjoint 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 income/(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

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
2012
Net operating income ...........	15,687	12,348	13,148	2,144	11,236	8,814	(3,358)	60,019
External ............................	14,484	11,233	12,150	2,169	11,109	8,874	-	60,019
Inter-segment ...................	1,203	1,115	998	(25)	127	(60)	(3,358)	-

Profit for the year includes the following significantnon-cash items:
Depreciation, amortisationand impairment .............	966	416	233	55	363	499	-	2,532
Loan impairment losses grossof recoveries and othercredit risk provisions .....	2,329	105	586	361	3,587	2,489	-	9,457
Impairment of financial investments ..................	420	(21)	83	1	32	4	-	519
Changes in fair value oflong-term debt and related derivatives ........................	(3,091)	-	(4)	(13)	(1,219)	-	-	(4,327)
Restructuring costs ................	292	21	107	27	219	94	-	760

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 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

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 2012
Loans and advances tocustomers (net) .................	463,440	173,613	138,119	28,086	140,756	53,609	-	997,623
Interests in associates andjoint ventures ....................	178	224	15,085	2,262	85	-	-	17,834
Total assets ..........................	1,389,240	518,334	342,269	62,605	490,247	131,277	(241,434)	2,692,538
Customer accounts ................	555,009	346,208	183,621	39,583	149,037	66,556	-	1,340,014
Total liabilities .....................	1,327,487	496,640	308,815	53,498	450,480	113,923	(241,434)	2,509,409

Capital expenditure incurred1	925	336	208	102	248	458	-	2,277

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

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
2012
Net operating income3 ...........	33,861		16,551	18,273	3,172	2,332	(5,859)	68,330
External .............................	31,980		17,295	20,410	2,413	(3,768)	-	68,330
Internal ..............................	1,881		(744)	(2,137)	759	6,100	(5,859)	-

2011
Net operating income3 ...........	33,533		15,611	17,057	3,292	9,145	(6,358)	72,280
External .............................	32,024		15,362	19,881	2,207	2,806	-	72,280
Internal ..............................	1,509		249	(2,824)	1,085	6,339	(6,358)	-

2010
Net operating income3 ...........	33,611		13,834	18,912	3,093	4,660	(5,863)	68,247
External .............................	32,056		13,224	21,812	2,182	(1,027)	-	68,247
Internal ..............................	1,555		610	(2,900)	911	5,687	(5,863)	-

1 With effect from 1 March 2011, our Global Asset Management business was moved from Global Banking and Markets to Retail Banking and Wealth Management.

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.

3 Net operating income before loan impairment charges and other credit risk provisions, also referred to as revenue. The table previously reported net operating income after loan impairment charges and other credit risk provisions.

Information by country

	2012		2011		2010
	External net operating income1,2	Non- current assets3	External net operating income1,2	Non- current assets3	External net operating income1,2	Non- current assets3
	US$m	US$m	US$m	US$m	US$m	US$m

UK ..............................................................	9,149	18,391	16,058	21,414	14,171	19,661
Hong Kong ..................................................	11,307	11,657	9,600	6,257	9,282	4,630
USA ............................................................	11,779	6,718	12,972	3,830	14,032	6,669
France .........................................................	2,881	11,074	2,747	10,790	3,345	10,914
Brazil ..........................................................	6,395	2,017	6,637	2,149	5,408	2,025
Other countries ...........................................	26,819	30,078	24,266	31,590	22,009	29,747

	68,330	79,935	72,280	76,030	68,247	73,646

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 Net operating income before loan impairment charges and other credit risk provisions, also referred to as revenue. The table previously reported net operating income after loan impairment charges and other credit risk provisions.

3 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.

13 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

ACSUUVVROUASRAR

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