Interim Report - 6 of 28

Half-year to 30 June 2013

Retail Bankingand Wealth

Management US$m

Commercial

Banking US$m

Global BankingandMarkets US$m

GlobalPrivate Banking US$m

Other52

US$m

Inter- segment

elimination62

US$m

Total US$m

Profit/(loss) before tax

Net interest income/ (expense) ......

9,310

5,050

3,334

575

(376)

(74)

17,819

Net fee income .

3,586

2,337

1,818

602

61

−

8,404

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

275

343

4,577

226

(191)

−

5,230

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

−

3

1,029

4

22

74

1,132

Net trading income/ (expense)57 ....

275

346

5,606

230

(169)

74

6,362

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

122

104

(961)

−

(462)

−

(1,197)

Gains less losses from financial investments ...

48

(6)

597

4

1,213

−

1,856

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

11

8

65

6

17

−

107

Net earned insurance premiums ......

5,469

748

3

6

−

−

6,226

Other operating income/ (expense) ......

(92)

(19)

201

(267)

3,866

(2,743)

946

Total operating income .........

18,729

8,568

10,663

1,156

4,150

(2,743)

40,523

Net insurance claims63 .........

(5,440)

(705)

(1)

(5)

−

−

(6,151)

Net operating income22 ......

13,289

7,863

10,662

1,151

4,150

(2,743)

34,372

Loan impairment charges and other credit risk provisions ...................... ......................

(1,768)

(1,160)

(174)

(14)

−

−

(3,116)

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

11,521

6,703

10,488

1,137

4,150

(2,743)

31,256

Employee expenses64 .....

(2,651)

(1,163)

(1,882)

(381)

(3,419)

−

(9,496)

Other operating income/ (expenses) .....

(5,800)

(2,174)

(3,125)

(654)

107

2,743

(8,903)

Total operating expenses ........

(8,451)

(3,337)

(5,007)

(1,035)

(3,312)

2,743

(18,399)

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

3,070

3,366

5,481

102

838

−

12,857

Share of profit in associates and joint ventures

197

767

242

6

2

−

1,214

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

3,267

4,133

5,723

108

840

−

14,071

%

%

%

%

%

%

Share of HSBC's profit before tax ................

23.2

29.4

40.7

0.8

5.9

100.0

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

63.6

42.4

47.0

89.9

79.8

53.5

Balance sheet data53

US$m

US$m

US$m

US$m

US$m

US$m

Loans and advances to customers (net) ..............

362,836

288,842

276,181

39,161

2,362

969,382

Total assets .......

504,205

350,503

1,992,770

114,883

176,122

(493,167)

2,645,316

Customer accounts ........

547,140

327,612

347,716

92,360

1,354

1,316,182

Half-year to 30 June 2012

Retail Banking and Wealth

Management US$m

Commercial

Banking US$m

Global BankingandMarkets US$m

GlobalPrivate Banking US$m

Other52

US$m

Inter- segment

elimination62

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)57 ....

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, UScards business andPing An .........

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 claims63 .........

(5,932)

(822)

(13)

(8)

−

−

(6,775)

Net operating income22 .......

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 expenses64 .....

(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 data53

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

Half-year to 31 December 2012

Retail Bankingand Wealth

Management

US$m

Commercial

Banking US$m

Global

Banking and

Markets

US$m

Global Private Banking US$m

Other52

US$m

Inter- segment

elimination62

US$m

Total US$m

Profit before tax

Net interest income/(expense) ......

9,524

5,217

3,335

622

(266)

(136)

18,296

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

3,445

2,246

1,731

607

94

-

8,123

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

256

302

803

222

(309)

-

1,274

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

14

10

1,152

9

(23)

136

1,298

Net trading income/(expense)57 ....

270

312

1,955

231

(332)

136

2,572

Net income/(expense)from financialinstruments designatedat fair value ...

1,374

178

593

-

(3,188)

-

(1,043)

Gains less losses fromfinancial investments ...

76

20

30

1

39

-

166

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

11

8

93

2

4

-

118

Net earned insurancepremiums ......

5,399

904

8

33

4

-

6,348

Gains on disposal of US branch network, UScards business andPing An .........

138

65

-

-

3,012

-

3,215

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

734

328

196

67

2,627

(2,874)

1,078

Total operating income ..........

20,971

9,278

7,941

1,563

1,994

(2,874)

38,873

Net insurance claims63 .........

(6,425)

(980)

(3)

(32)

-

-

(7,440)

Net operating income22 .......

14,546

8,298

7,938

1,531

1,994

(2,874)

31,433

Loan impairment chargesand other credit risk provisions ..... ......................

(2,242)

(1,175)

(72)

(23)

-

-

(3,512)

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

12,304

7,123

7,866

1,508

1,994

(2,874)

27,921

Employee expenses64 .....

(2,588)

(1,141)

(1,583)

(298)

(3,976)

-

(9,586)

Other operating expenses ........

(6,963)

(2,721)

(3,251)

(732)

(1,344)

2874

(12,137)

Total operating expenses ........

(9,551)

(3,862)

(4,834)

(1,030)

(5,320)

2,874

(21,723)

Operating profit/(loss) ...

2,753

3,261

3,032

478

(3,326)

-

6,198

Share of profit in associates and joint ventures

412

845

441

4

12

-

1,714

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

3,165

4,106

3,473

482

(3,314)

-

7,912

%

%

%

%

%

%

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

40.0

51.9

43.9

6.1

(41.9)

100.0

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

65.7

46.5

60.9

67.3

266.8

69.1

Balance sheet data53

US$m

US$m

US$m

US$m

US$m

US$m

Loans and advances to customers (net) ..............

378,040

288,033

283,842

45,213

2,495

997,623

Total assets .......

536,244

363,659

1,942,470

118,440

201,741

(470,016)

2,692,538

Customer accounts ........

562,151

338,405

332,115

105,772

1,571

1,340,014