Interim Report - 6 of 24

Half-year to 30 June 2015

Retail Banking and Wealth

Management $m

Commercial

Banking $m

Global Banking and Markets $m

GlobalPrivate Banking $m

Other13

$m

Inter- segment

elimination19

$m

Total $m

Profit before tax

Net interest income/(expense)

8,054

4,892

3,629

454

(397)

(188)

16,444

Net fee income/(expense)

3,334

2,168

1,711

527

(15)

−

7,725

- trading income/(expense) excluding net interest income

295

308

2,880

175

(138)

-

3,520

- net interest income/(expense)on trading activities

(5)

(7)

863

(1)

15

188

1,053

Net trading income/(expense)6

290

301

3,743

174

(123)

188

4,573

Net income from financial instruments designated at fair value

1,237

128

638

−

663

-

2,666

Gains less losses from financial investments

51

27

402

24

1,370

-

1,874

Dividend income

11

10

17

4

26

-

68

Net insurance premium income

4,950

624

3

30

−

-

5,607

Other operating income

609

100

120

2

3,163

(3,158)

836

Total operating income

18,536

8,250

10,263

1,215

4,687

(3,158)

39,793

Net insurance claims

(6,094)

(716)

(2)

(38)

−

−

(6,850)

Net operating income15

12,442

7,534

10,261

1,177

4,687

(3,158)

32,943

Loan impairment (charges)/recoveries and other creditrisk provisions

(934)

(511)

11

(5)

-

-

(1,439)

Net operating income

11,508

7,023

10,272

1,172

4,687

(3,158)

31,504

- employee expenses20

(2,571)

(1,171)

(1,994)

(350)

(3,955)

-

(10,041)

- other operating income/ (expense)

(5,783)

(2,150)

(3,796)

(651)

76

3,158

(9,146)

Total operating expenses

(8,354)

(3,321)

(5,790)

(1,001)

(3,879)

3,158

(19,187)

Operating profit

3,154

3,702

4,482

171

808

-

12,317

Share of profit in associatesand joint ventures

208

821

272

9

1

-

1,311

Profit before tax

3,362

4,523

4,754

180

809

-

13,628

%

%

%

%

%

%

Share of HSBC's profit before tax

24.7

33.2

34.9

1.3

5.9

100.0

Cost efficiency ratio

67.1

44.1

56.4

85.0

82.8

58.2

Balance sheet data14

$m

$m

$m

$m

$m

$m

Loans and advances to customers (net)

352,189

310,256

244,321

44,242

2,977

953,985

Reported in held for sale

6,640

10,325

4,016

43

−

21,024

Total assets

497,199

378,641

1,790,461

85,740

167,946

(348,274)

2,571,713

Customer accounts

589,715

362,069

299,181

82,878

1,957

1,335,800

Reported in held for sale

9,549

4,694

3,438

1,751

−

19,432

Half-year to 30 June 2014

Retail Banking

and Wealth

Management9

$m

Commercial

Banking9

$m

Global Banking and Markets $m

GlobalPrivate Banking $m

Other13

$m

Inter- segment

elimination19

$m

Total $m

Profit/(loss) before tax

Net interest income/(expense)

8,617

4,994

3,602

536

(221)

(123)

17,405

Net fee income

3,377

2,327

1,939

533

1

-

8,177

- trading income/(expense) excluding net interest income

(12)

338

2,001

161

(126)

-

2,362

- net interest income/(expense)on trading activities

1

(4)

789

(2)

6

123

913

Net trading income/(expense)6

(11)

334

2,790

159

(120)

123

3,275

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

1,078

119

743

1

(281)

-

1,660

Gains less losses from financial investments

7

25

462

12

440

-

946

Dividend income

15

14

32

3

24

-

88

Net insurance premium income

5,501

615

2

19

-

-

6,137

Other operating income/(expense)

378

81

222

(7)

2,814

(2,950)

538

Total operating income

18,962

8,509

9,792

1,256

2,657

(2,950)

38,226

Net insurance claims

(6,346)

(686)

(1)

(26)

-

-

(7,059)

Net operating income15

12,616

7,823

9,791

1,230

2,657

(2,950)

31,167

Loan impairment (charges)/recoveries and other creditrisk provisions

(1,299)

(488)

(49)

(6)

1

-

(1,841)

Net operating income

11,317

7,335

9,742

1,224

2,658

(2,950)

29,326

- employee expenses20

(2,544)

(1,147)

(1,806)

(363)

(4,118)

-

(9,978)

- other operating income/ (expense)

(5,986)

(2,180)

(3,152)

(505)

585

2,950

(8,288)

Total operating expenses

(8,530)

(3,327)

(4,958)

(868)

(3,533)

2,950

(18,266)

Operating profit/(loss)

2,787

4,008

4,784

356

(875)

-

11,060

Share of profit in associatesand joint ventures

215

806

249

8

2

-

1,280

Profit/(loss) before tax

3,002

4,814

5,033

364

(873)

-

12,340

%

%

%

%

%

%

Share of HSBC's profit before tax

24.4

39.0

40.8

2.9

(7.1)

100.0

Cost efficiency ratio

67.6

42.5

50.6

70.6

133.0

58.6

Balance sheet data14

$m

$m

$m

$m

$m

$m

Loans and advances to customers (net)

381,353

315,001

303,133

45,131

2,623

1,047,241

Reported in held for sale

380

157

82

972

-

1,591

Total assets

526,089

375,014

2,043,767

99,379

170,802

(461,458)

2,753,593

Customer accounts

600,650

363,235

360,732

89,641

1,447

1,415,705

Reported in held for sale

181

485

373

3,841

-

4,880

Half-year to 31 December 2014

Retail Banking

and Wealth

Management9

$m

Commercial

Banking9

$m

Global

Banking and Markets

$m

Global Private Banking $m

Other13

$m

Inter- segment

elimination19

$m

Total $m

Profit/(loss) before tax

Net interest income/(expense)

8,513

5,164

3,420

458

(280)

25

17,300

Net fee income/(expense)

3,459

2,243

1,621

523

(66)

-

7,780

- trading income excludingnet interest income

(14)

280

2,062

137

26

-

2,491

- net interest income/(expense)on trading activities

8

2

1,009

(2)

2

(25)

994

Net trading income/(expense)6

(6)

282

3,071

135

28

(25)

3,485

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

606

160

(731)

(2)

780

-

813

Gains less losses from financial investments

7

6

655

(3)

(276)

-

389

Dividend income

9

4

48

2

160

-

223

Net insurance premium income

5,108

642

3

31

-

-

5,784

Other operating income/(expense)

348

160

(98)

40

3,362

(3,219)

593

Total operating income

18,044

8,661

7,989

1,184

3,708

(3,219)

36,367

Net insurance claims

(5,511)

(736)

(2)

(37)

-

-

(6,286)

Net operating income15

12,533

7,925

7,987

1,147

3,708

(3,219)

30,081

Loan impairment (charges)/recoveries and other creditrisk provisions

(637)

(1,070)

(316)

14

(1)

-

(2,010)

Net operating income

11,896

6,855

7,671

1,161

3,707

(3,219)

28,071

- employee expenses20

(2,582)

(1,204)

(1,849)

(369)

(4,384)

-

(10,388)

- other operating expenses

(6,918)

(2,450)

(5,221)

(541)

(684)

3,219

(12,595)

Total operating expenses

(9,500)

(3,654)

(7,070)

(910)

(5,068)

3,219

(22,983)

Operating profit/(loss)

2,396

3,201

601

251

(1,361)

-

5,088

Share of profit in associatesand joint ventures

183

799

255

11

4

-

1,252

Profit/(loss) before tax

2,579

4,000

856

262

(1,357)

-

6,340

%

%

%

%

%

%

Share of HSBC's profit before tax

40.7

63.1

13.5

4.1

(21.4)

100.0

Cost efficiency ratio

75.8

46.1

88.5

79.3

136.7

76.4

Balance sheet data14

$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