Annual Financial Report - 7 of 56

2015

RBWM

CMB

GB&M

GPB

Other

Total

$m

$m

$m

$m

$m

$m

Revenue1

Reported31

23,516

14,870

18,233

2,172

7,604

59,800

Significant items

326

17

(199)

(31)

(2,148)

(2,035)

- disposal costs of Brazilian operations

-

-

-

-

18

18

- DVA on derivative contracts

-

-

(230)

-

-

(230)

- fair value movements on non-qualifying hedges32

90

(1)

31

(1)

208

327

- gain on the partial sale of shareholding in Industrial Bank

-

-

-

-

(1,372)

(1,372)

- loss on sale of several tranches of real estate secured accounts in the US

214

-

-

-

-

214

- own credit spread2

-

-

-

-

(1,002)

(1,002)

- provisions/(releases) arising from the ongoing review of compliance with the Consumer Credit Act in the UK

22

18

-

(30)

-

10

Adjusted31

23,842

14,887

18,034

2,141

5,456

57,765

LICs

Reported

(1,939)

(1,770)

-

(12)

-

(3,721)

Adjusted

(1,939)

(1,770)

-

(12)

-

(3,721)

Operating expenses

Reported31

(17,020)

(6,744)

(10,834)

(1,832)

(9,933)

(39,768)

Significant items

1,537

202

1,035

206

606

3,586

- disposal costs of Brazilian operations

66

16

14

1

13

110

- costs-to-achieve

198

163

69

16

462

908

- costs to establish UK ring-fenced bank

-

-

-

-

89

89

- regulatory provisions in GPB

-

-

-

171

1

172

- restructuring and other related costs

32

5

22

18

40

117

- settlements and provisions in connection with legal matters

700

-

949

-

-

1,649

- UK customer redress programmes

541

18

(19)

-

1

541

Adjusted31

(15,483)

(6,542)

(9,799)

(1,626)

(9,327)

(36,182)

Share of profit in associates and joint ventures

Reported

410

1,617

511

16

2

2,556

Adjusted

410

1,617

511

16

2

2,556

Profit/(loss) before tax

Reported

4,967

7,973

7,910

344

(2,327)

18,867

Significant items

1,863

219

836

175

(1,542)

1,551

- revenue

326

17

(199)

(31)

(2,148)

(2,035)

- operating expenses

1,537

202

1,035

206

606

3,586

Adjusted

6,830

8,192

8,746

519

(3,869)

20,418

2014

RBWM

CMB

GB&M

GPB

Other

Total

$m

$m

$m

$m

$m

$m

Revenue1

Reported31

25,149

15,748

17,778

2,377

6,365

61,248

Currency translation31

(2,209)

(1,242)

(1,296)

(138)

(158)

(4,775)

Significant items

877

9

328

41

(501)

754

- DVA on derivative contracts

-

-

332

-

-

332

- fair value movements on non-qualifying hedges32

493

(1)

8

1

40

541

- gain on sale of several tranches of real estatesecured accounts in the US

(168)

-

-

-

-

(168)

- gain on sale of shareholding in Bank of Shanghai

-

-

-

-

(428)

(428)

- impairment of our investment in Industrial Bank

-

-

-

-

271

271

- own credit spread2

-

-

-

-

(417)

(417)

- provisions arising from the ongoing review of compliance with the Consumer Credit Act in the UK

568

24

-

40

-

632

- (gain)/loss and trading results from disposals and changes in ownership levels

(16)

(14)

(12)

-

33

(9)

Adjusted31

23,817

14,515

16,810

2,280

5,706

57,227

LICs

Reported

(1,936)

(1,558)

(365)

8

-

(3,851)

Currency translation

340

256

86

3

(2)

683

Significant items

2

(2)

-

-

-

-

- trading results from disposals and changes in ownership levels

2

(2)

-

-

-

-

Adjusted

(1,594)

(1,304)

(279)

11

(2)

(3,168)

Operating expenses

Reported31

(18,030)

(6,981)

(12,028)

(1,778)

(8,601)

(41,249)

Currency translation31

1,851

627

782

100

186

3,278

Significant items

1,118

189

1,896

71

121

3,395

- charge in relation to the settlement agreement with the Federal Housing Finance Authority

17

-

533

-

-

550

- regulatory provisions in GPB

-

-

-

65

-

65

- restructuring and other related costs

88

37

27

6

120

278

- settlements and provisions in connection with legal matters

-

-

1,187

-

-

1,187

- UK customer redress programmes

992

138

145

-

-

1,275

- trading results from disposals and changes in ownership levels

21

14

4

-

1

40

Adjusted31

(15,061)

(6,165)

(9,350)

(1,607)

(8,294)

(34,576)

Share of profit in associates and joint ventures

Reported

398

1,605

504

19

6

2,532

Currency translation

(5)

(28)

(7)

-

1

(39)

Adjusted

393

1,577

497

19

7

2,493

Profit/(loss) before tax

Reported

5,581

8,814

5,889

626

(2,230)

18,680

Currency translation

(23)

(387)

(435)

(35)

27

(853)

Significant items

1,997

196

2,224

112

(380)

4,149

- revenue

877

9

328

41

(501)

754

- LICs

2

(2)

-

-

-

-

- operating expenses

1,118

189

1,896

71

121

3,395

Adjusted

7,555

8,623

7,678

703

(2,583)

21,976