Annual Financial Report - 9 of 44

2011

RetailBankingand WealthManagement US$m

Commercial

Banking US$m

Global Bankingand Markets US$m

GlobalPrivate Banking US$m

Other

US$m

Inter- segment

elimination64

US$m

Total US$m

Profit before tax

Net interest income/(expense)

5,653

3,107

2,102

936

(574)

(223)

11,001

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

2,633

1,640

989

942

32

-

6,236

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

40

5

602

191

(201)

-

637

Net interest income on trading activities ............................

11

16

1,205

16

53

223

1,524

Net trading income/(expense)56

51

21

1,807

207

(148)

223

2,161

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

-

-

-

-

3,180

-

3,180

Net income/(expense) fromother financial instrumentsdesignated at fair value .......

(672)

(21)

(65)

-

46

-

(712)

Net income/(expense) from financial instrumentsdesignated at fair value .......

(672)

(21)

(65)

-

3,226

-

2,468

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

51

(1)

453

1

11

-

515

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

1

1

42

4

1

-

49

Net earned insurance premiums

3,768

381

-

-

(13)

-

4,136

Other operating income .........

95

58

187

5

760

74

1,179

Total operating income ......

11,580

5,186

5,515

2,095

3,295

74

27,745

Net insurance claims65 ............

(3,212)

(287)

-

-

-

-

(3,499)

Net operating income52 ......

8,368

4,899

5,515

2,095

3,295

74

24,246

Loan impairment (charges)/ recoveries and other creditrisk provisions ....................

(596)

(960)

(876)

(82)

2

-

(2,512)

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

7,772

3,939

4,639

2,013

3,297

74

21,734

Total operating expenses .......

(6,450)

(2,252)

(4,569)

(1,456)

(2,268)

(74)

(17,069)

Operating profit .................

1,322

1,687

70

557

1,029

-

4,665

Share of profit/(loss) in associates and joint ventures

-

-

7

-

(1)

-

6

Profit before tax ..................

1,322

1,687

77

557

1,028

-

4,671

%

%

%

%

%

%

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

6.0

7.7

0.4

2.5

4.7

21.3

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

77.1

46.0

82.8

69.5

68.8

70.4

Balance sheet data49

US$m

US$m

US$m

US$m

US$m

US$m

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

150,205

98,154

156,903

28,378

696

434,336

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

210,140

124,049

1,021,486

77,410

63,141

(214,281)

1,281,945

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

176,134

104,530

154,208

58,265

267

493,404

2010

Retail Bankingand Wealth Manage-

ment17

US$m

Commercial

Banking US$m

Global Banking and

Markets17

US$m

GlobalPrivate Banking US$m

Other

US$m

Inter- segment

elimination64

US$m

Total US$m

Profit/(loss) before tax

Net interest income/(expense) ..

5,537

2,774

2,935

871

(654)

(213)

11,250

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

2,559

1,570

1,320

883

39

-

6,371

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

(6)

3

1,541

185

(262)

-

1,461

Net interest income/(expense)on trading activities ...............................

(1)

19

1,127

21

23

213

1,402

Net trading income/(expense)56

(7)

22

2,668

206

(239)

213

2,863

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

-

-

-

-

(365)

-

(365)

Net income/(expense) fromother financial instrumentsdesignated at fair value ......................

496

113

(23)

-

61

-

647

Net income/(expense) from financial instrumentsdesignated at fair value ......................

496

113

(23)

-

(304)

-

282

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

(36)

-

525

(7)

4

-

486

Dividend income .......

-

1

16

2

1

-

20

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

3,800

278

-

-

(11)

-

4,067

Other operating income ..................

187

163

817

7

754

189

2,117

Total operating income/(expense) ...............

12,536

4,921

8,258

1,962

(410)

189

27,456

Net insurance claims65 ...............................

(4,364)

(342)

-

-

-

-

(4,706)

Net operating income/(expense)52 ............

8,172

4,579

8,258

1,962

(410)

189

22,750

Loan impairment (charges)/ recoveries and other creditrisk provisions ....... ...............................

(1,217)

(997)

(783)

(26)

3

-

(3,020)

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

6,955

3,582

7,475

1,936

(407)

189

19,730

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

(5,647)

(2,378)

(4,784)

(1,296)

(1,151)

(189)

(15,445)

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

1,308

1,204

2,691

640

(1,558)

-

4,285

Share of profit in associatesand joint ventures ..

4

1

12

-

-

-

17

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

1,312

1,205

2,703

640

(1,558)

-

4,302

%

%

%

%

%

%

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

6.9

6.3

14.2

3.4

(8.2)

22.6

Cost efficiency ratio ..

69.1

51.9

57.9

66.1

(280.7)

67.9

Balance sheet data49

US$m

US$m

US$m

US$m

US$m

US$m

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

145,069

91,744

170,369

27,629

988

435,799

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

205,032

111,356

962,861

76,631

65,824

(172,177)

1,249,527

Customer accounts ....

169,016

96,597

169,836

56,114

-

491,563