Annual Financial Report - 9 of 56

2015

Retail

Banking

and Wealth

Management

$m

Commercial

Banking

$m

GlobalBanking and

Markets

$m

Global

Private

Banking

$m

Other29

$m

Inter-

segment

elimination44

$m

Total

$m

Profit/(loss) before tax

Net interest income/(expense)

15,926

9,859

6,931

870

(710)

(345)

32,531

Net fee income/(expense)

6,218

4,190

3,375

959

(37)

−

14,705

Trading income/(expense) excludingnet interest income

540

571

5,714

327

(204)

−

6,948

Net interest income/(expense) on trading activities

(19)

(16)

1,455

(2)

12

345

1,775

Net trading income/(expense) 40

521

555

7,169

325

(192)

345

8,723

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

−

−

−

−

863

−

863

Net income/(expense) from other financial instruments designatedat fair value

556

110

(58)

−

61

−

669

Net income/(expense) from financial instruments designated at fair value

556

110

(58)

−

924

−

1,532

Gains less losses from financial investments

68

37

598

23

1,342

−

2,068

Dividend income

23

16

40

11

33

−

123

Net insurance premium income

9,204

1,106

5

42

(2)

−

10,355

Other operating income

972

252

177

3

6,246

(6,595)

1,055

Total operating income

33,488

16,125

18,237

2,233

7,604

(6,595)

71,092

Net insurance claims 45

(9,972)

(1,255)

(4)

(61)

−

−

(11,292)

Net operating income1

23,516

14,870

18,233

2,172

7,604

(6,595)

59,800

Loan impairment charges and other credit risk provisions

(1,939)

(1,770)

−

(12)

−

−

(3,721)

Net operating income

21,577

13,100

18,233

2,160

7,604

(6,595)

56,079

Employee expenses46

(4,966)

(2,443)

(3,735)

(654)

(8,102)

−

(19,900)

Other operating expenses

(12,054)

(4,301)

(7,099)

(1,178)

(1,831)

6,595

(19,868)

Total operating expenses

(17,020)

(6,744)

(10,834)

(1,832)

(9,933)

6,595

(39,768)

Operating profit/(loss)

4,557

6,356

7,399

328

(2,329)

−

16,311

Share of profit in associatesand joint ventures

410

1,617

511

16

2

−

2,556

Profit/(loss) before tax

4,967

7,973

7,910

344

(2,327)

−

18,867

%

%

%

%

%

%

Share of HSBC's profit before tax

26.3

42.3

41.9

1.8

(12.3)

100.0

Cost efficiency ratio

72.4

45.4

59.4

84.3

130.6

66.5

Balance sheet data22,30

$m

$m

$m

$m

$m

$m

Loans and advances to customers (net)

340,009

302,240

236,932

42,942

2,331

924,454

- reported in held for sale

5,258

8,010

3,689

85

1,979

19,021

Total assets

473,284

365,290

1,616,704

81,448

147,417

(274,487)

2,409,656

Customer accounts

584,872

361,701

261,728

80,404

881

1,289,586

- reported in held for sale

7,758

3,363

2,551

3,010

−

16,682

2014

RetailBanking

and Wealth

Management28

$m

Commercial

Banking28

$m

GlobalBanking andMarkets$m

GlobalPrivateBanking$m

Other29

$m

Inter-

segment

elimination44

$m

Total$m

Profit/(loss) before tax

Net interest income/(expense)

17,130

10,158

7,022

994

(501)

(98)

34,705

Net fee income/(expense)

6,836

4,570

3,560

1,056

(65)

−

15,957

Trading income/(expense) excludingnet interest income

(26)

618

4,063

298

(100)

−

4,853

Net interest income/(expense) on trading activities

9

(2)

1,798

(4)

8

98

1,907

Net trading income/(expense)40

(17)

616

5,861

294

(92)

98

6,760

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

−

−

−

−

508

−

508

Net income/(expense) from other financial instruments designatedat fair value

1,684

279

12

(1)

(9)

−

1,965

Net income/(expense) from financial instruments designated at fair value

1,684

279

12

(1)

499

−

2,473

Gains less losses from financial investments

14

31

1,117

9

164

−

1,335

Dividend income

24

18

80

5

184

−

311

Net insurance premium income

10,609

1,257

5

50

−

−

11,921

Other operating income

726

241

124

33

6,176

(6,169)

1,131

Total operating income

37,006

17,170

17,781

2,440

6,365

(6,169)

74,593

Net insurance claims 45

(11,857)

(1,422)

(3)

(63)

−

−

(13,345)

Net operating income1

25,149

15,748

17,778

2,377

6,365

(6,169)

61,248

Loan impairment (charges)/recoveries and other credit risk provisions

(1,936)

(1,558)

(365)

8

−

−

(3,851)

Net operating income

23,213

14,190

17,413

2,385

6,365

(6,169)

57,397

Employee expenses46

(5,126)

(2,351)

(3,655)

(732)

(8,502)

−

(20,366)

Other operating expenses

(12,904)

(4,630)

(8,373)

(1,046)

(99)

6,169

(20,883)

Total operating expenses

(18,030)

(6,981)

(12,028)

(1,778)

(8,601)

6,169

(41,249)

Operating profit/(loss)

5,183

7,209

5,385

607

(2,236)

−

16,148

Share of profit in associatesand joint ventures

398

1,605

504

19

6

−

2,532

Profit/(loss) before tax

5,581

8,814

5,889

626

(2,230)

−

18,680

%

%

%

%

%

%

Share of HSBC's profit before tax

29.9

47.2

31.5

3.4

(12.0)

100.0

Cost efficiency ratio

71.7

44.3

67.7

74.8

135.1

67.3

Balance sheet data30

$m

$m

$m

$m

$m

$m

Loans and advances to customers (net)

360,704

313,039

254,463

44,102

2,352

974,660

- reported in held for sale

198

−

288

91

-

577

Total assets

500,864

370,958

1,839,644

88,342

164,537

(330,206)

2,634,139

Customer accounts

583,757

361,318

319,121

85,465

981

1,350,642

- reported in held for sale

−

−

−

145

-

145