10th Aug 2012 16:20
Analysis by global business
HSBC profit/(loss) before tax and balance sheet data
Half-year to 30 June 2012 | |||||||||||||
Retail Bankingand Wealth Management US$m |
| Commercial Banking US$m |
| Global BankingandMarkets US$m |
| GlobalPrivate Banking US$m |
| Other46 US$m |
| Inter- segment elimination57 US$m |
| Total US$m | |
Profit/(loss) before tax | |||||||||||||
Net interest income/ (expense) ...... | 10,774 | 5,144 | 3,625 | 672 | (464) | (375) | 19,376 | ||||||
Net fee income . | 3,760 | 2,224 | 1,598 | 625 | 100 | − | 8,307 | ||||||
Trading income/(expense) excluding net interest income .......... | 20 | 315 | 2,785 | 254 | (240) | − | 3,134 | ||||||
Net interest income on trading activities ....... | 14 | 6 | 950 | 5 | 35 | 375 | 1,385 | ||||||
Net trading income/ (expense)51 .... | 34 | 321 | 3,735 | 259 | (205) | 375 | 4,519 | ||||||
Net income/(expense) from financial instruments designated at fair value ....... | 519 | 72 | 501 | − | (2,275) | − | (1,183) | ||||||
Gains less losses from financial investments ... | 20 | 2 | 700 | (4) | 305 | − | 1,023 | ||||||
Dividend income ...................... | 13 | 10 | 55 | 4 | 21 | − | 103 | ||||||
Net earned insurance premiums ...... | 5,792 | 882 | 17 | 9 | (4) | − | 6,696 | ||||||
Gains on disposal of US branch network andcards business . | 3,597 | 212 | − | − | − | − | 3,809 | ||||||
Other operating income .......... | 738 | 208 | 117 | 84 | 2,860 | (2,985) | 1,022 | ||||||
Total operating income ......... | 25,247 | 9,075 | 10,348 | 1,649 | 338 | (2,985) | 43,672 | ||||||
Net insurance claims58 ......... | (5,932) | (822) | (13) | (8) | − | − | (6,775) | ||||||
Net operating income48 ...... | 19,315 | 8,253 | 10,335 | 1,641 | 338 | (2,985) | 36,897 | ||||||
Loan impairment charges and other credit risk provisions ...................... ...................... | (3,273) | (924) | (598) | (4) | − | − | (4,799) | ||||||
Net operating income ......... | 16,042 | 7,329 | 9,737 | 1,637 | 338 | (2,985) | 32,098 | ||||||
Employee expenses59 ..... | (2,944) | (1,106) | (2,181) | (617) | (4,057) | − | (10,905) | ||||||
Other operating income/ (expenses) ..... | (7,274) | (2,630) | (2,892) | (496) | 8 | 2,985 | (10,299) | ||||||
Total operating expenses ........ | (10,218) | (3,736) | (5,073) | (1,113) | (4,049) | 2,985 | (21,204) | ||||||
Operating profit/(loss) . | 5,824 | 3,593 | 4,664 | 524 | (3,711) | − | 10,894 | ||||||
Share of profit in associates and joint ventures | 586 | 836 | 383 | 3 | 35 | − | 1,843 | ||||||
Profit/(loss) before tax .... | 6,410 | 4,429 | 5,047 | 527 | (3,676) | − | 12,737 | ||||||
% | % | % | % | % | % | ||||||||
Share of HSBC's profit before tax ................ | 50.3 | 34.8 | 39.6 | 4.1 | (28.8) | 100.0 | |||||||
Cost efficiency ratio .............. | 52.9 | 45.3 | 49.1 | 67.8 | − | 57.5 | |||||||
Balance sheet data47 | |||||||||||||
US$m | US$m | US$m | US$m | US$m | US$m | ||||||||
Loans and advances to customers (net) .............. | 363,353 | 272,817 | 290,749 | 44,018 | 4,048 | 974,985 | |||||||
Total assets ....... | 526,069 | 351,157 | 1,905,455 | 119,271 | 179,703 | (429,321) | 2,652,334 | ||||||
Customer accounts ........ | 531,782 | 317,077 | 316,219 | 109,101 | 4,310 | 1,278,489 | |||||||
HSBC profit/(loss) before tax and balance sheet data (continued)
Half-year to 30 June 2011 | |||||||||||||
Retail Banking and Wealth Management US$m |
| Commercial Banking US$m |
| Global BankingandMarkets US$m |
| GlobalPrivate Banking US$m |
| Other46 US$m |
| Inter- segment elimination57 US$m |
| Total US$m | |
Profit/(loss) before tax | |||||||||||||
Net interest income/ (expense) ...... | 12,086 | 4,814 | 3,603 | 729 | (481) | (516) | 20,235 | ||||||
Net fee income . | 4,212 | 2,131 | 1,730 | 731 | 3 | - | 8,807 | ||||||
Trading income/(expense) excluding net interest income .......... | 166 | 280 | 2,830 | 198 | (243) | - | 3,231 | ||||||
Net interest income on trading activities ....... | 22 | 16 | 997 | 9 | 21 | 516 | 1,581 | ||||||
Net trading income/ (expense)51 .... | 188 | 296 | 3,827 | 207 | (222) | 516 | 4,812 | ||||||
Net income/(expense) from financial instruments designated at fair value ....... | 343 | 55 | (212) | - | (286) | - | (100) | ||||||
Gains less losses from financial investments ... | 70 | 2 | 414 | (3) | 2 | - | 485 | ||||||
Dividend income ...................... | 14 | 8 | 39 | 4 | 22 | - | 87 | ||||||
Net earned insurance premiums ...... | 5,698 | 985 | 23 | - | (6) | - | 6,700 | ||||||
Other operating income .......... | 688 | 263 | 280 | 21 | 2,997 | (2,964) | 1,285 | ||||||
Total operating income .......... | 23,299 | 8,554 | 9,704 | 1,689 | 2,029 | (2,964) | 42,311 | ||||||
Net insurance claims58 ......... | (5,727) | (874) | (15) | - | (1) | - | (6,617) | ||||||
Net operating income48 ....... | 17,572 | 7,680 | 9,689 | 1,689 | 2,028 | (2,964) | 35,694 | ||||||
Loan impairment (charges)/ recoveries and other credit risk provisions ...................... ...................... | (4,270) | (642) | (334) | (22) | 2 | - | (5,266) | ||||||
Net operating income .......... | 13,302 | 7,038 | 9,355 | 1,667 | 2,030 | (2,964) | 30,428 | ||||||
Employee expenses59 ..... | (3,169) | (1,210) | (2,396) | (688) | (3,058) | - | (10,521) | ||||||
Other operating expenses ........ | (7,577) | (2,255) | (2,464) | (429) | (228) | 2,964 | (9,989) | ||||||
Total operating expenses ........ | (10,746) | (3,465) | (4,860) | (1,117) | (3,286) | 2,964 | (20,510) | ||||||
Operating profit/(loss) ... | 2,556 | 3,573 | 4,495 | 550 | (1,256) | - | 9,918 | ||||||
Share of profit in associates and joint ventures | 570 | 616 | 316 | 2 | 52 | - | 1,556 | ||||||
Profit/(loss) before tax ...... | 3,126 | 4,189 | 4,811 | 552 | (1,204) | - | 11,474 | ||||||
% | % | % | % | % | % | ||||||||
Share of HSBC's profit before tax ................ | 27.3 | 36.5 | 41.9 | 4.8 | (10.5) | 100.0 | |||||||
Cost efficiency ratio .............. | 61.2 | 45.1 | 50.2 | 66.1 | 162.0 | 57.5 | |||||||
Balance sheet data47 | |||||||||||||
US$m | US$m | US$m | US$m | US$m | US$m | ||||||||
Loans and advances to customers (net) .............. | 400,944 | 268,037 | 321,061 | 44,612 | 3,234 | 1,037,888 | |||||||
Total assets ....... | 557,952 | 336,094 | 1,942,835 | 122,888 | 189,912 | (458,694) | 2,690,987 | ||||||
Customer accounts ........ | 541,998 | 301,169 | 359,757 | 115,245 | 818 | 1,318,987 | |||||||
Half-year to 31 December 2011 | ||||||||||||||
Retail Bankingand Wealth Management US$m |
| Commercial Banking US$m |
| Global Banking and Markets US$m |
| Global Private Banking US$m |
| Other46 US$m |
| Inter- segment elimination57 US$m |
| Total US$m | ||
Profit before tax | ||||||||||||||
Net interest income/(expense) ...... | 12,015 | 5,117 | 3,660 | 710 | (430) | (645) | 20,427 | |||||||
Net fee income . ...................... | 4,014 | 2,160 | 1,497 | 651 | 31 | - | 8,353 | |||||||
Trading income/(expense) excluding net interest income .......... | (728) | 285 | 476 | 217 | (198) | - | 52 | |||||||
Net interest income ontrading activities ....... | 21 | 3 | 901 | 7 | 65 | 645 | 1,642 | |||||||
Net trading income/(expense)51 .... | (707) | 288 | 1,377 | 224 | (133) | 645 | 1,694 | |||||||
Net income/(expense)from financialinstruments designatedat fair value ... | (1,104) | (22) | 140 | - | 4,525 | - | 3,539 | |||||||
Gains less losses fromfinancial investments ... | 54 | 18 | 347 | 6 | (3) | - | 422 | |||||||
Dividend income ...................... | 13 | 7 | 36 | 3 | 3 | - | 62 | |||||||
Net earned insurancepremiums ...... | 5,184 | 971 | 24 | - | (7) | - | 6,172 | |||||||
Other operating income .......... | 219 | 220 | 297 | 9 | 3,130 | (3,394) | 481 | |||||||
Total operating income .......... | 19,688 | 8,759 | 7,378 | 1,603 | 7,116 | (3,394) | 41,150 | |||||||
Net insurance claims58 ......... | (3,727) | (828) | (10) | - | 1 | - | (4,564) | |||||||
Net operating income48 ....... | 15,961 | 7,931 | 7,368 | 1,603 | 7,117 | (3,394) | 36,586 | |||||||
Loan impairment chargesand other credit risk provisions ..... ...................... | (5,049) | (1,096) | (650) | (64) | (2) | - | (6,861) | |||||||
Net operating income .......... | 10,912 | 6,835 | 6,718 | 1,539 | 7,115 | (3,394) | 29,725 | |||||||
Employee expenses59 ..... | (3,369) | (974) | (1,800) | (663) | (3,839) | - | (10,645) | |||||||
Other operating expenses ........ | (7,087) | (2,782) | (3,062) | (486) | (367) | 3,394 | (10,390) | |||||||
Total operating expenses ........ | (10,456) | (3,756) | (4,862) | (1,149) | (4,206) | 3,394 | (21,035) | |||||||
Operating profit | 456 | 3,079 | 1,856 | 390 | 2,909 | - | 8,690 | |||||||
Share of profit/(loss) inassociates andjoint ventures | 688 | 679 | 382 | 2 | (43) | - | 1,708 | |||||||
Profit before tax ...................... | 1,144 | 3,758 | 2,238 | 392 | 2,866 | - | 10,398 | |||||||
% | % | % | % | % | % | |||||||||
Share of HSBC's profitbefore tax ...... | 11.0 | 36.1 | 21.5 | 3.8 | 27.6 |
| 100.0 | |||||||
Cost efficiency ratio .............. | 65.5 | 47.4 | 66.0 | 71.7 | 59.1 |
| 57.5 | |||||||
Balance sheet data47 | ||||||||||||||
US$m | US$m | US$m | US$m | US$m | US$m | |||||||||
Loans and advances to customers (net) .............. | 357,907 | 262,039 | 276,463 | 41,856 | 2,164 | 940,429 | ||||||||
Total assets ....... | 540,548 | 334,966 | 1,877,627 | 119,839 | 180,126 | (497,527) | 2,555,579 | |||||||
Customer accounts ........ | 529,017 | 306,174 | 306,454 | 111,814 | 466 | 1,253,925 | ||||||||
For footnotes, see page 100.
Disposals, held for sale and run-off portfolios
In implementing our strategy, we have sold or agreed to sell a number of businesses across the Group. We expect these disposals to have a significant adverse effect on both the revenue and the profitability of the global businesses in the future, particularly RBWM due to the sale of the profitable US Card and Retail Services portfolio. In addition, two significant portfolios are being run
down. We expect the losses on these portfolios to continue to adversely affect RBWM and GB&M in the future.
The table below presents the historical results of these businesses. We do not expect the historical results to be indicative of future results because of disposal or run-off. Fixed allocated costs, included in total operating costs, will not necessarily be removed upon disposal and have been separately identified on page 38.
Summary income statements for disposals, held for sale and run-off portfolios43,44
Half-year to 30 June 2012 | |||||||||
Retail Banking and Wealth Management US$m |
| Commercial Banking US$m |
| Global Banking and Markets US$m |
| GlobalPrivate Banking US$m |
| Other US$m | |
Net interest income ................................. | 2,812 | 75 | 28 | 5 | (1) | ||||
Net fee income/(expense) ........................ | 411 | (10) | (4) | 2 | - | ||||
Net trading income51 ............................... | (223) | 2 | 22 | 1 | 1 | ||||
Net income/(expense) from financial instruments designated at fair value ..... | 2 | 1 | 5 | - | (513) | ||||
Gains less losses from financial investments ............................................................ | 15 | 1 | (37) | - | - | ||||
Dividend income ...................................... | 2 | - | - | - | - | ||||
Net earned insurance premiums ................ | 309 | 132 | 20 | - | - | ||||
Other operating income ........................... | (8) | 16 | (3) | - | - | ||||
Total operating income ........................ | 3,320 | 217 | 31 | 8 | (513) | ||||
Net insurance claims incurred and movement in liabilities to policyholders | (156) | (84) | (13) | - | - | ||||
Net operating income14 ........................ | 3,164 | 133 | 18 | 8 | (513) | ||||
Loan impairment charges and other creditrisk provisions ..................................... | (1,927) | (1) | (268) | - | - | ||||
Net operating income .......................... | 1,237 | 132 | (250) | 8 | (513) | ||||
Total operating expenses ......................... | (1,337) | (97) | (76) | (10) | (9) | ||||
Operating profit/(loss) ......................... | (100) | 35 | (326) | (2) | (522) | ||||
Share of profit in associates andjoint ventures ...................................... | - | 1 | - | - | 1 | ||||
Profit/(loss) before tax ......................... | (100) | 36 | (326) | (2) | (521) | ||||
By geographical region | |||||||||
Europe ..................................................... | - | - | (369) | - | - | ||||
Hong Kong .............................................. | 19 | - | 2 | - | - | ||||
Rest of Asia-Pacific ................................. | 2 | 4 | (1) | (2) | 1 | ||||
Middle East and North Africa .................. | 10 | - | 25 | - | - | ||||
North America ........................................ | (159) | 9 | (9) | - | (513) | ||||
Latin America ......................................... | 28 | 23 | 26 | - | (9) | ||||
Profit/(loss) before tax ............................ | (100) | 36 | (326) | (2) | (521) | ||||
Gain on sale ............................................. | 3,837 | 247 | 18 | 67 | 130 | ||||
For footnotes, see page 100.
Related Shares:
HSBC Holdings