Interim Report - 6 of 21

Half-year to 30 June 2009

Total

Personal Financial Services US$m

Commercial

Banking US$m

Global Banking and Markets US$m

Private Banking US$m

Other22

US$m

Inter- segment

elimination29

US$m

Total US$m

Net interest income/ (expense) 

12,650 

3,809 

4,667 

784 

(551)

(821)

20,538 

Net fee income

4,045 

1,749 

1,968 

602 

64 

-

8,428 

Trading income excluding net interest income 

450 

183 

3,422 

154 

92 

-

4,301 

Net interest income on trading activities 

39 

11 

1,056 

9 

18 

821 

1,954 

Net trading income24  

489 

194 

4,478 

163 

110 

821 

6,255 

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

-

-

-

-

(2,300)

- 

(2,300)

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

744 

(17)

329 

-

(279)

-

777 

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

744 

(17)

329 

-

(2,579)

-

(1,523)

Gains less losses from financial investments 

195 

25 

158 

(2)

(53)

-

323 

Dividend income 

17 

3 

23 

2 

12 

-

57 

Net earned insurance premiums 

4,585 

390 

40 

-

(3)

-

5,012 

Other operating income 

302 

519 

603 

40 

2,172 

(2,479)

1,158 

Total operating income/ (expense) 

23,027 

6,672 

12,266 

1,589 

(828)

(2,479)

40,248 

Net insurance claims25

(5,144)

(328)

(35)

-

-

-

(5,507)

Net operating income/ (expense)7

17,883 

6,344 

12,231 

1,589 

(828)

(2,479)

34,741 

Loan impairment charges and other credit risk provisions 

(10,673)

(1,509)

(1,732)

(14)

(3)

-

(13,931)

Net operating income/ (expense) 

7,210 

4,835 

10,499 

1,575 

(831)

(2,479)

20,810 

Total operating expenses 

(8,774)

(2,740)

(4,405)

(949)

(2,268)

2,479 

(16,658)

Operating profit/(loss) 

(1,564)

2,095 

6,094 

626 

(3,099)

-

4,152 

Share of profit in associates and joint ventures 

315 

337 

204 

6 

5 

-

867 

Profit/(loss) before tax 

(1,249)

2,432 

6,298 

632 

(3,094)

-

5,019 

%

%

%

%

%

%

Share of HSBC's profit before tax 

(24.9)

48.5 

125.5 

12.6 

(61.7)

100.0 

Cost efficiency ratio 

49.1 

43.2 

36.0 

59.7 

(273.9)

47.9  

Balance sheet data23

US$m

US$m

US$m

US$m

US$m

US$m

Loans and advances to customers (net) 

400,692 

198,903 

287,328 

34,282 

3,478 

924,683 

Total assets 

547,084 

249,030 

1,770,618 

117,468 

170,414 

(432,771)

2,421,843 

Customer accounts 

482,935 

239,933 

330,962 

108,278 

1,235 

1,163,343 

Half-year to 30 June 2008

Total

Personal Financial Services US$m

Commercial

Banking US$m

Global Banking and Markets US$m

Private Banking US$m

Other22

US$m

Inter- segment

elimination29

US$m

Total US$m

Net interest income/ (expense) 

15,217 

4,747 

3,737 

783 

(375)

(2,931)

21,178 

Net fee income

5,626 

2,165 

2,354 

814 

32 

-

10,991 

Trading income/(expense) excluding net interest income 

142 

197 

360 

211 

(271)

-

639 

Net interest income/ (expense) on trading activities 

42 

24 

273 

7 

(82)

2,931 

3,195 

Net trading income/ (expense)24

184 

221 

633 

218 

(353)

2,931 

3,834 

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

-

-

-

-

577

-

577

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

(1,135)

(59)

(211)

1 

243

-

(1,161)

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

(1,135)

(59)

(211)

1 

820 

-

(584)

Gains less losses from financial investments 

585 

191 

244 

80 

(283)

-

817 

Dividend income 

15 

3 

49 

4 

17 

-

88 

Net earned insurance premiums 

4,746 

360 

62 

-

(15)

-

5,153 

Other operating income 

390 

718 

551 

16 

1,943 

(2,183)

1,435 

Total operating income 

25,628 

8,346 

7,419 

1,916 

1,786 

(2,183)

42,912 

Net insurance claims25

(3,206)

(190)

(40)

-

(1)

-

(3,437)

Net operating income7 

22,422 

8,156 

7,379 

1,916 

1,785 

(2,183)

39,475 

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

(9,384)

(563)

(115)

4 

-

-

(10,058)

Net operating income 

13,038 

7,593 

7,264 

1,920 

1,785 

(2,183)

29,417 

Operating expenses (excluding goodwill impairment) 

(10,572)

(3,280)

(4,827)

(1,098)

(2,019)

2,183 

(19,613)

Goodwill impairment 

(527)

-

-

-

-

-

(527)

Operating profit/(loss) 

1,939 

4,313 

2,437 

822 

(234)

-

9,277 

Share of profit in associates and joint ventures 

374 

298 

253 

-

45 

-

970 

Profit/(loss) before tax 

2,313 

4,611 

2,690 

822 

(189)

-

10,247 

%

%

%

%

%

%

Share of HSBC's profit before tax 

22.6 

45.0 

26.2 

8.0 

(1.8)

100.0 

Cost efficiency ratio 

49.5 

40.2 

65.4 

57.3 

113.1 

51.0 

Balance sheet data23

US$m

US$m

US$m

US$m

US$m

US$m

Loans and advances to customers (net) 

458,302

238,116

303,826

45,895

3,061

1,049,200

Total assets 

619,528

292,871

1,823,167

144,331

141,946

(475,165)

2,546,678

Customer accounts 

474,263

247,705

328,952

109,776

1,227

1,161,923

Half-year to 31 December 2008

Total

Personal Financial Services US$m

Commercial

Banking US$m

Global Banking and Markets US$m

Private Banking US$m

Other22

US$m

Inter- segment

elimination29

US$m

Total US$m

Net interest income/(expense) 

14,202

4,747

4,804

829

(581)

(2,616)

21,385

Net fee income 

4,481

1,932

1,937

662

21

-

9,033

Trading income/(expense) excluding net interest income 

33

172

(203)

197

9

-

208

Net interest income/(expense) on trading activities 

37

(7)

51

7

(186)

2,616

2,518

Net trading income/(expense)24

70

165

(152)

204

(177)

2,616

2,726

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

-

-

-

-

6,102

-

6,102

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

(1,777)

(165)

(227)

(1)

504

-

(1,666)

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

(1,777)

(165)

(227)

(1)

6,606

-

4,436

Gains less losses from financial investments 

78

2

(571)

(16)

(113)

-

(620)

Dividend income 

75

85

27

4

(7)

-

184

Net earned insurance premiums 

5,337

319

43

-

(2)

-

5,697

Gains on disposal of  French regional banks 

-

-

-

-

2,445

-

2,445

Other operating income/ (expense) 

(131)

221

317

33

2,318

(2,385)

373

Total operating income 

22,335

7,306

6,178

1,715

10,510

(2,385)

45,659

Net insurance claims25

(3,268)

(145)

(39)

-

-

-

(3,452)

Net operating income7

19,067

7,161

6,139

1,715

10,510

(2,385)

42,207

Loan impairment charges and other credit risk provisions 

(11,836)

(1,610)

(1,356)

(72)

(5)

-

(14,879)

Net operating income 

7,231

5,551

4,783

1,643

10,505

(2,385)

27,328

Operating expenses (excluding goodwill impairment) 

(10,568)

(3,301)

(4,265)

(1,018)

(2,155)

2,385

(18,922)

Goodwill impairment 

(10,037)

-

-

-

-

-

(10,037)

Operating profit/(loss) 

(13,374)

2,250

518

625

8,350

-

(1,631)

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

87

333

275

-

(4)

-

691

Profit/(loss) before tax 

(13,287)

2,583

793

625

8,346

-

(940)

%

%

%

%

%

%

Share of HSBC's loss before tax 

(1,413.5)

274.8

84.3

66.5

887.9

100.0 

Cost efficiency ratio 

108.1

46.1

69.5

59.4

20.5

68.6 

Balance sheet data23

US$m

US$m

US$m

US$m

US$m

US$m

Loans and advances to customers (net) 

401,402

203,949

287,306

37,590

2,621

932,868

Total assets 

527,901

249,218

1,991,852

133,216

145,581

(520,303)

2,527,465

Customer accounts 

440,338

235,879

320,386

116,683

2,041

1,115,327