16th Aug 2013 16:21
Geographical regions
Page | Tables | Page | ||
Summary ................................................................. | 61 | Profit/(loss) before tax ................................................. | 61 | |
Total assets .................................................................. | 62 | |||
Risk-weighted assets ..................................................... | 62 | |||
Selected items included in profit before tax by geographical region ................................................. | 62 | Fair value movements arising from changes in own credit spreads ........................................................... | 62 | |
Acquisitions, disposals and dilutions ............................ | 62 | |||
Europe ...................................................................... | 63 | |||
Economic background ................................................ | 63 | |||
Review of performance .............................................. | 63 | Profit/(loss) before tax by country within global businesses ................................................................ | 64 | |
Operating expenses in Europe ..................................... | 65 | |||
Profit/(loss) before tax and balance sheet data ............ | 66 | |||
Hong Kong ............................................................... | 69 | |||
Economic background ................................................ | 69 | |||
Review of performance .............................................. | 69 | Profit/(loss) before tax by global business .................... | 70 | |
Profit/(loss) before tax and balance sheet data ............ | 71 | |||
Rest of Asia-Pacific ................................................. | 74 | |||
Economic background ................................................ | 74 | |||
Review of performance .............................................. | 75 | Profit/(loss) before tax by country within global businesses ................................................................ | 75 | |
Profit before tax and balance sheet data ...................... | 77 | |||
Middle East and North Africa ................................. | 80 | |||
Economic background ................................................ | 80 | |||
Review of performance .............................................. | 80 | Profit/(loss) before tax by country within global businesses ................................................................ | 81 | |
Profit/(loss) before tax and balance sheet data ............ | 83 | |||
North America ......................................................... | 86 | |||
Economic background ................................................ | 86 | |||
Review of performance .............................................. | 86 | Profit/(loss) before tax by country within global businesses ................................................................ | 87 | |
Profit/(loss) before tax and balance sheet data ............ | 90 | |||
Latin America .......................................................... | 93 | |||
Economic background ................................................ | 93 | |||
Review of performance .............................................. | 93 | Profit/(loss) before tax by country within global businesses ................................................................ | 94 | |
Profit/(loss) before tax and balance sheet data ............ | 96 | |||
Summary
In the analysis of profit and loss by geographical region that follows, operating income and operating expenses include intra‑HSBC items of US$1,591m (first half of 2012: US$1,630m; second half of 2012: US$1,728m).
Profit/(loss) before tax
Half-year to | |||||||||||
30 June 2013 | 30 June 2012 | 31 December 2012 | |||||||||
US$m |
| % |
| US$m | % |
| US$m | % | |||
|
| ||||||||||
Europe ...................................................... | 2,768 | 19.7 | (667) | (5.2) | (2,747) | (34.7) | |||||
Hong Kong ............................................... | 4,205 | 29.9 | 3,761 | 29.5 | 3,821 | 48.3 | |||||
Rest of Asia-Pacific .................................. | 5,057 | 35.9 | 4,372 | 34.3 | 6,076 | 76.8 | |||||
Middle East and North Africa ................... | 909 | 6.5 | 772 | 6.1 | 578 | 7.3 | |||||
North America ......................................... | 666 | 4.7 | 3,354 | 26.3 | (1,055) | (13.3) | |||||
Latin America .......................................... | 466 | 3.3 | 1,145 | 9.0 | 1,239 | 15.6 | |||||
| |||||||||||
14,071 | 100.0 | 12,737 | 100.0 | 7,912 | 100.0 | ||||||
Total assets53
At 30 June 2013 |
| At 30 June 2012 |
| At 31 December 2012 | |||||||
US$m |
| % |
| US$m | % |
| US$m | % | |||
|
|
| |||||||||
Europe ...................................................... | 1,365,534 | 51.6 | 1,375,553 | 51.9 | 1,389,240 | 51.6 | |||||
Hong Kong ............................................... | 528,712 | 20.0 | 486,608 | 18.3 | 518,334 | 19.3 | |||||
Rest of Asia-Pacific .................................. | 325,271 | 12.3 | 334,978 | 12.6 | 342,269 | 12.7 | |||||
Middle East and North Africa ................... | 63,292 | 2.4 | 62,881 | 2.4 | 62,605 | 2.3 | |||||
North America ......................................... | 473,218 | 17.9 |
| 500,590 | 18.9 | 490,247 | 18.2 | ||||
Latin America .......................................... | 123,032 | 4.7 | 138,968 | 5.2 | 131,277 | 4.9 | |||||
Intra-HSBC items ..................................... | (233,743) | (8.9) | (247,244) | (9.3) | (241,434) | (9.0) | |||||
2,645,316 | 100.0 | 2,652,334 | 100.0 | 2,692,538 | 100.0 | ||||||
For footnote, see page 100.
Risk-weighted assets65
At 30 June 2013 |
| At 30 June 2012 |
| At 31 December 2012 | |||||||
US$bn |
| % |
| US$bn | % |
| US$bn | % | |||
|
|
| |||||||||
Total ........................................................ | 1,104.8 | 1,159.9 | 1,123.9 | ||||||||
Europe ...................................................... | 305.4 | 27.4 | 329.5 | 27.9 | 314.7 | 27.6 | |||||
Hong Kong ............................................... | 128.1 | 11.5 | 108.0 | 9.1 | 111.9 | 9.8 | |||||
Rest of Asia-Pacific .................................. | 285.0 | 25.5 | 303.2 | 25.7 | 302.2 | 26.4 | |||||
Middle East and North Africa ................... | 64.2 | 5.8 | 63.0 | 5.3 | 62.2 | 5.4 | |||||
North America ......................................... | 236.4 | 21.1 | 279.2 | 23.6 | 253.0 | 22.2 | |||||
Latin America .......................................... | 96.7 | 8.7 | 99.8 | 8.4 | 97.9 | 8.6 | |||||
For footnote, see page 100.
Selected items included in profit before tax by geographical region
Fair value movements arising from changes in own credit spreads20
Half-year to | |||||
30 June |
| 30 June |
| 31 December | |
2013 |
| 2012 |
| 2012 | |
US$m |
| US$m | US$m | ||
| |||||
Europe ......................................................................................................... | 3 | (1,605) | (2,505) | ||
Rest of Asia-Pacific ...................................................................................... | 1 | (2) | (1) | ||
Middle East and North Africa ....................................................................... | (1) | (4) | (8) | ||
North America ............................................................................................. | (22) | (559) | (531) | ||
(19) | (2,170) | (3,045) | |||
Acquisitions, disposals and dilutions54
Half-year to | |||||
30 June |
| 30 June |
| 31 December | |
2013 |
| 2012 |
| 2012 | |
US$m |
| US$m | US$m | ||
| |||||
Europe ......................................................................................................... | (11) | - | (3) | ||
Hong Kong ................................................................................................... | - | 28 | 392 | ||
Rest of Asia-Pacific ...................................................................................... | 1,116 | 1,025 | 3,639 | ||
Middle East and North Africa ....................................................................... | - | 27 | (45) | ||
North America ............................................................................................. | (120) | 4,678 | 183 | ||
Latin America .............................................................................................. | 27 | 147 | 13 | ||
1,012 | 5,905 | 4,179 | |||
For footnotes, see page 100.
Europe
Our principal banking operations in Europe are HSBC Bank plc in the UK, HSBC France, HSBC Bank A.S. in Turkey, HSBC Bank Malta p.l.c., HSBC Private Bank (Suisse) SA and HSBC Trinkaus & Burkhardt AG. Through these operations we provide a wide range of banking, treasury and financial services to personal, commercial and corporate customers across Europe. | |||||
Half-year to | |||||
30 Jun | 30 Jun | 31 Dec | |||
2013 | 2012 | 2012 | |||
US$m | US$m | US$m | |||
Net interest income ..... | 5,250 | 5,073 | 5,321 | ||
Net fee income ............ | 2,969 | 3,023 | 3,146 | ||
Net trading income ...... | 4,339 | 1,851 | 856 | ||
Other expense ............. | (1,084) | (280) | (1,382) | ||
Net operating income22 .................................. | 11,474 | 9,667 | 7,941 | ||
LICs55 .......................... | (846) | (1,037) | (884) | ||
Net operating income .................................. | 10,628 | 8,630 | 7,057 | ||
Total operating expenses .................................. | (7,862) | (9,289) | (9,806) | ||
Operating profit/(loss) .................................. | 2,766 | (659) | (2,749) | ||
Income/(expense) from associates56 ............... | 2 | (8) | 2 | ||
| |||||
Profit/(loss) before tax .................................. | 2,768 | (667) | (2,747) | ||
Cost efficiency ratio .... | 68.5% | 96.1% | 123.5% | ||
RoRWA49 .................... | 1.8% | (0.4%) | (1.7%) | ||
Period-end staff numbers .................................. | 69,599 | 73,143 | 70,061 | ||
Launched two international SME funds:£5bn in the UK€1bn in France | |||||
Winner of 'Best Bank Mortgage Provider' Award (5th year running)(Moneyfacts Awards, 2013) | |||||
Over US$340mof sustainable cost savingsin the first half of 2013 | |||||
For footnotes, see page 100. | |||||
Economic background
The UK economy recovered tentatively, with real Gross Domestic Product ('GDP') growing by 0.3% in the first quarter of 2013 and 0.6% in the second quarter. The labour market was resilient and employment reached new highs, while unemployment was 7.8% in the three months to May, down from 7.9% in the previous quarter. Consumer Price Index ('CPI') inflation increased slightly from 2.7% in December 2012 to 2.9% in June 2013, driven by higher transport and food costs. The Bank of England left its key interest rate of 0.5% and its stock of asset purchases at £375bn (US$560bn) unchanged.
Eurozone GDP shrank by 0.2% in the first quarter of 2013, the sixth consecutive quarter of contraction, despite a bounce in German consumer spending of 0.8%. Unemployment rose from 11.9% in December 2012 to 12.1% in June 2013. Exports continued to fall, though there were signs of stabilisation in the second quarter even in the periphery. With inflation falling from 2.5% in 2012 to 1.6% in the first half of 2013, the squeeze on real wages started to abate. In view of the weakness in economic activity and slowing inflation, the ECB cut the refi rate by 0.25% to a record low of 0.5% in May. Helped by the ECB's commitment to buy unlimited amounts of government bonds, government bond spreads in the periphery continued to narrow until late April, with only a very short-lived effect from the Italian election result and the Cyprus refinancing deal. In May and June market interest rates rose following the US Federal Reserve's suggestion that it may soon start to taper off its asset purchase programme.
Review of performance
Our European operations reported a profit before tax of US$2.8bn in the first half of 2013, compared with a loss of US$667m in the first half of 2012 (US$648m on a constant currency basis). On an underlying basis, profit before tax increased by US$1.8bn due to significantly lower operating expenses driven by a decrease in charges relating to customer redress programmes; higher GB&M revenue, which included a favourable DVA on derivative contracts; and a decline in LICs.
In RBWM, we supported the UK housing market during the first half of 2013, approving £7.1bn (US$11.0bn) of new mortgage lending to over 68,000 customers. This included £2.0bn (US$3.1bn) to over 16,000 first time buyers. The loan-to-value ratio on new lending was 59%
Profit/(loss) before tax by country within global businesses
Retail Bankingand Wealth Management US$m |
| Commercial Banking US$m | Global Banking and Markets US$m | Global Private Banking US$m | Other US$m | Total US$m | |||||
Half-year to 30 June 2013 | |||||||||||
UK ............................................................. | 804 | 894 | 1,047 | 132 | (657) | 2,220 | |||||
France46 ..................................................... | 130 | 135 | 302 | − | (78) | 489 | |||||
Germany .................................................... | 15 | 31 | 45 | 21 | (6) | 106 | |||||
Malta ......................................................... | 22 | 29 | 19 | − | − | 70 | |||||
Switzerland ................................................. | − | 1 | 1 | (42) | − | (40) | |||||
Turkey ....................................................... | (18) | 31 | 72 | − | (1) | 84 | |||||
Other ......................................................... | 3 | (35) | 82 | (225) | 14 | (161) | |||||
956 | 1,086 | 1,568 | (114) | (728) | 2,768 | ||||||
Half-year to 30 June 2012 | |||||||||||
UK ............................................................. | (166) | 521 | 357 | 108 | (2,437) | (1,617) | |||||
France46 ..................................................... | 29 | 114 | 330 | (5) | (175) | 293 | |||||
Germany .................................................... | 16 | 28 | 153 | 15 | (28) | 184 | |||||
Malta ......................................................... | 21 | 32 | 16 | − | − | 69 | |||||
Switzerland ................................................. | − | − | − | 66 | − | 66 | |||||
Turkey ....................................................... | 5 | 43 | 50 | − | − | 98 | |||||
Other ......................................................... | 3 | 36 | 137 | 52 | 12 | 240 | |||||
(92) | 774 | 1,043 | 236 | (2,628) | (667) | ||||||
Half-year to 31 December 2012 | |||||||||||
UK ............................................................. | 509 | 311 | (468) | 127 | (3,918) | (3,439) | |||||
France46 ..................................................... | 106 | 89 | 184 | (6) | (88) | 285 | |||||
Germany .................................................... | 13 | 36 | 130 | 25 | (44) | 160 | |||||
Malta ......................................................... | 18 | 20 | 15 | − | − | 53 | |||||
Switzerland ................................................. | − | 2 | 1 | 67 | − | 70 | |||||
Turkey ....................................................... | (37) | 28 | 54 | − | 1 | 46 | |||||
Other ......................................................... | (8) | (52) | 27 | 50 | 61 | 78 | |||||
601 | 434 | (57) | 263 | (3,988) | (2,747) | ||||||
For footnote, see page 100.
compared with an average of 51% for the total mortgage portfolio.
In CMB, we launched two International SME funds in the UK and France of £5.0bn (US$7.6bn) and €1.0bn (US$1.3bn), respectively, supporting businesses that trade, or aspire to trade, internationally. We approved lending of £2.4bn (US$3.7bn) in the UK including the renewal of overdraft and other lending facilities, and €0.7bn (US$0.9bn) in France in the first half of 2013.
In GB&M, our Payments and Cash Management and Foreign Exchange businesses launched 'Global Disbursements' and 'FlexRate Payway' in the first half of 2013, providing our clients with the ability to make multi-currency payments more efficiently with foreign exchange rates guaranteed for an agreed period. In Credit, primary issuances increased, reflecting demand for financing from debt capital markets, resulting in leading positions and increased market share in both the euro and sterling markets.
The following commentary is on a constant currency basis.
Net interest income increased by 5%, driven by higher residential mortgage balances due to competitive offers in RBWM in the UK and, to a lesser extent, in France, together with improved lending spreads in the UK reflecting higher spreads on new business. Customer account balances also increased, although the benefit was largely offset by deposit spread compression in the low interest rate environment. In Balance Sheet Management, net interest income was higher, reflecting portfolio growth as deposit balances rose and reduced funding costs. CMB net interest income grew, mainly in the UK, driven by growth in average lending and deposit balances, coupled with higher new business spreads.These factors were partly offset by a decline in GPB as higher yielding positions matured and opportunities for reinvestment were limited by lower prevailing yields. Narrower lending and deposit spreads also contributed to the fall in GPB net interest income.
Net fee income decreased by US$30m, mainly in RBWM due to higher fees paid under partnership agreements, coupled with lower brokerage fees in GPB due to a reduction in client transaction volumes, in part reflecting lower market volatility and fewer large deals. These were partly offset by a rise in lending fees in CMB in the UK and higher primary market issuance fees in GB&M.
Net trading income increased by US$2.5bn to US$4.3bn. This was driven by favourable foreign exchange movements on assets held as economic hedges of foreign currency debt designated at fair value compared with adverse movements in the first half of 2012, together with a favourable DVA on derivative contracts (see page 28), a foreign exchange gain on sterling debt issued by HSBC Holdings and favourable fair value movements on non-qualifying hedges which compared with adverse movements in the first half of 2012. In addition, Foreign Exchange income rose due to increased transaction volumes which benefited from improved electronic pricing and distribution capabilities, although the rise was offset in part by margin compression. These factors were partly offset by lower Rates revenue as the first half of 2012 benefited from tightening spreads following the ECB's announcement of the Long-Term Refinancing Operation. In the current period, a strong first quarter performance was partly offset in the second quarter by more volatile market conditions. Lower adverse fair value movements from own credit spreads on structured liabilities partly offset this decline.
Net expense from financial instruments designated at fair value was broadly in line with the first half of 2012. We reported minimal movements on the fair value of our own debt, compared with adverse movements of US$1.6bn in the first half of 2012. Excluding this, net expense of US$1.0bn in the first half of 2013 compared with net income of US$662m in the first half of 2012. This decline was largely driven by adverse foreign exchange movements on foreign currency debt compared with favourable movements in the first half of 2012, with the offset reported in 'Net trading income'. In addition, there were higher adverse fair value movements from interest and exchange rate ineffectiveness in the hedging of long-term debt issued principally by HSBC Holdings and its European subsidiaries, compared with the first half of 2012. These were partly offset by higher net investment gains recognised on the fair value of assets held to meet liabilities under insurance and investment contracts than in the first half of 2012 as market conditions improved.
Gains less losses from financial investmentsdecreased by US$68m as we reported lower gains on the disposal of available-for-sale debt securities in Balance Sheet Management, mainly in the UK. This was partly offset by higher gains on disposal of equity securities in Principal Investments in GB&M.
Net earned insurance premiums decreased by 7%, mainly in RBWM in France reflecting lower sales following the run-off of business from independent financial adviser channels in the first half of 2013.
Other operating income decreased by US$534m due to a loss recognised in GPB following the reclassification of our Monaco business to 'held for sale' (see also Note 25 on the Financial Statements), coupled with a loss on sale of an HFC Bank UK secured loan portfolio in RBWM.
Net insurance claims incurred and movement in liabilities to policyholders increased by 3%, driven by net investment gains on the fair value of the assets held to support policyholder contracts in the first half of 2013. This was partly offset by lower reserves established for new business, reflecting the decline in net premium income in France.
LICs decreased by 17% to US$846m. GB&M reported lower credit risk provisions in the UK following net releases on available-for-sale ABSs, compared with charges in the first half of 2012. This was partly offset by higher individually assessed provisions in CMB on a small number of customers in the UK, and due to the challenging economic conditions in Spain.
Operating expenses decreased by 14%, driven by lower charges relating to UK customer redress programmes. We reported charges of US$412m in the first half of 2013, which included US$367m for the possible mis-selling of PPI policies in previous years. This compared with a charge of US$1.3bn in the first half of 2012, which included US$1.0bn, and US$230m (US$237m as reported), for the possible mis-selling of PPI policies and interest rate protection products, respectively. We also benefited from sustainable costs savings of over US$340m due to organisational effectiveness programmes that commenced in 2011, lower restructuring costs, and a decline in performance costs, notably in GB&M. In addition, we reported an accounting gain of US$430m relating to changes in delivering ill-health benefits to certain employees in the UK, (see page 34 and Note 5 on the Financial Statements). These factors were partly offset by higher litigation-related charges in GB&M and an operational risk provision in GPB.
Operating expenses in Europe
Half-year to | |||||
30 Jun | 30 Jun | 31 Dec | |||
2013 | 2012 | 2012 | |||
US$m | US$m | US$m | |||
HSBC Holdings ............... | 612 | 510 | 1,553 | ||
UK ................................. | 4,760 | 6,195 | 5,798 | ||
Continental Europe ........ | 2,625 | 2,656 | 2,581 | ||
Intra-region eliminations | (135) | (72) | (126) | ||
| |||||
Total operating expenses ..................................... | 7,862 | 9,289 | 9,806 | ||
Profit/(loss) before tax and balance sheet data - Europe
Half-year to 30 June 2013 | |||||||||||||
Retail Bankingand WealthManagement US$m |
| Commercial Banking US$m |
| Global Banking and Markets US$m |
| Global Private Banking US$m |
| Other US$m |
| Inter- segment elimination62 US$m |
| Total US$m | |
Profit/(loss) before tax | |||||||||||||
Net interest income/(expense). | 2,751 | 1,638 | 799 | 357 | (310) | 15 | 5,250 | ||||||
Net fee income/(expense). | 1,246 | 844 | 489 | 397 | (7) | - | 2,969 | ||||||
Trading income excluding net interest income ... | 102 | 26 | 2,958 | 108 | 538 | - | 3,732 | ||||||
Net interest income on trading activities ............. | 3 | 7 | 594 | 4 | 14 | (15) | 607 | ||||||
Net trading income57 ............................ | 105 | 33 | 3,552 | 112 | 552 | (15) | 4,339 | ||||||
Changes in fair value oflong-term debt issuedand related derivatives .......... | - | - | - | - | (1,347) | - | (1,347) | ||||||
Net income/(expense) fromother financial instruments designated at fair value ................... | 296 | 103 | (965) | - | 964 | - | 398 | ||||||
Net income/(expense) fromfinancial instrumentsdesignated at fair value ................... | 296 | 103 | (965) | - | (383) | - | (949) | ||||||
Gains less losses from financial investments ........ | 43 | (7) | 332 | 3 | 2 | - | 373 | ||||||
Dividend income ..... | 2 | 1 | 32 | 4 | 1 | - | 40 | ||||||
Net earned insurance premiums ............ | 1,519 | 222 | - | 6 | (1) | - | 1,746 | ||||||
Other operating income/(expense) ............ | (149) | (21) | (11) | (274) | 343 | 62 | (50) | ||||||
Total operating income .............. | 5,813 | 2,813 | 4,228 | 605 | 197 | 62 | 13,718 | ||||||
Net insurance claims63 ............... | (1,958) | (281) | - | (5) | - | - | (2,244) | ||||||
Net operating income22 ............ | 3,855 | 2,532 | 4,228 | 600 | 197 | 62 | 11,474 | ||||||
Loan impairment chargesand other credit riskprovisions ........... | (169) | (498) | (166) | (13) | - | - | (846) | ||||||
Net operating income .............. | 3,686 | 2,034 | 4,062 | 587 | 197 | 62 | 10,628 | ||||||
Operating expenses . | (2,731) | (950) | (2,493) | (700) | (926) | (62) | (7,862) | ||||||
Operating profit/(loss) ....... | 955 | 1,084 | 1,569 | (113) | (729) | - | 2,766 | ||||||
Share of profit/(loss) in associates and joint ventures ...... | 1 | 2 | (1) | (1) | 1 | - | 2 | ||||||
| |||||||||||||
Profit/(loss) before tax ...................... | 956 | 1,086 | 1,568 | (114) | (728) | - | 2,768 | ||||||
% | % | % | % | % | % | ||||||||
Share of HSBC's profitbefore tax ........... | 6.8 | 7.7 | 11.1 | (0.8) | (5.2) | 19.7 | |||||||
Cost efficiency ratio ............................ | 70.8 | 37.5 | 59.0 | 116.7 | 470.1 | 68.5 | |||||||
Balance sheet data53 | |||||||||||||
US$m | US$m | US$m | US$m | US$m | US$m | ||||||||
Loans and advances tocustomers (net) ... | 161,966 | 100,117 | 147,463 | 23,095 | 795 | 433,436 | |||||||
Total assets ............ | 220,259 | 115,819 | 1,091,624 | 74,917 | 70,010 | (207,095) | 1,365,534 | ||||||
Customer accounts .. | 187,725 | 121,334 | 199,750 | 45,950 | 890 | 555,649 | |||||||
Half-year to 30 June 2012 | |||||||||||||
Retail Banking and WealthManagement US$m | Commercial Banking US$m | Global Banking and Markets US$m | Global Private Banking US$m | Other US$m |
| Inter- segment elimination62 US$m | Total US$m | ||||||
Profit/(loss) before tax | |||||||||||||
Net interest income/(expense) ............................ | 2,643 | 1,607 | 750 | 428 | (345) | (10) | 5,073 | ||||||
Net fee income ....... ............................ | 1,317 | 809 | 421 | 431 | 45 | − | 3,023 | ||||||
Trading income/(expense) excluding net interest income ... | 27 | 12 | 1,126 | 113 | (197) | − | 1,081 | ||||||
Net interest income on trading activities ............. | 3 | 5 | 729 | 5 | 18 | 10 | 770 | ||||||
Net trading income/(expense)57 .......................... | 30 | 17 | 1,855 | 118 | (179) | 10 | 1,851 | ||||||
Changes in fair value oflong-term debt issuedand related derivatives .......... | − | − | − | − | (1,165) | − | (1,165) | ||||||
Net income/(expense) fromother financial instruments designated at fair value ................... | 194 | 36 | 488 | − | (489) | − | 229 | ||||||
Net income/(expense) fromfinancial instruments designated at fair value ................... | 194 | 36 | 488 | − | (1,654) | − | (936) | ||||||
Gains less losses from financial investments ......... | 5 | (1) | 449 | (4) | − | − | 449 | ||||||
Dividend income ..... | 1 | 1 | 37 | 3 | 1 | − | 43 | ||||||
Net earned insurance premiums ............ | 1,647 | 208 | − | 9 | (4) | − | 1,860 | ||||||
Other operating income ................ | 29 | 30 | 13 | 5 | 346 | 45 | 468 | ||||||
Total operating income/(expense) ............ | 5,866 | 2,707 | 4,013 | 990 | (1,790) | 45 | 11,831 | ||||||
Net insurance claims63 ............... | (1,933) | (223) | − | (8) | − | − | (2,164) | ||||||
Net operating income/(expense)22 .......... | 3,933 | 2,484 | 4,013 | 982 | (1,790) | 45 | 9,667 | ||||||
Loan impairment chargesand other credit riskprovisions ........... | (187) | (412) | (431) | (7) | − | − | (1,037) | ||||||
Net operating income/(expense) ............ | 3,746 | 2,072 | 3,582 | 975 | (1,790) | 45 | 8,630 | ||||||
Operating expenses . | (3,840) | (1,297) | (2,531) | (738) | (838) | (45) | (9,289) | ||||||
Operating profit/(loss) ......... | (94) | 775 | 1,051 | 237 | (2,628) | − | (659) | ||||||
Share of profit/(loss) in associates and joint ventures ...... | 2 | (1) | (8) | (1) | − | − | (8) | ||||||
Profit/(loss) before tax ....................... | (92) | 774 | 1,043 | 236 | (2,628) | − | (667) | ||||||
% | % | % | % | % | % | ||||||||
Share of HSBC's profitbefore tax ............ | (0.7) | 6.1 | 8.2 | 1.9 | (20.7) | (5.2) | |||||||
Cost efficiency ratio ............................ | 97.6 | 52.2 | 63.1 | 75.2 | (46.8) | 96.1 | |||||||
Balance sheet data53 | |||||||||||||
US$m | US$m | US$m | US$m | US$m | US$m | ||||||||
Loans and advances tocustomers (net) ... | 157,336 | 101,709 | 156,290 | 29,390 | 720 | 445,445 | |||||||
Total assets ............. | 224,545 | 129,330 | 1,013,553 | 78,814 | 58,641 | (129,330) | 1,375,553 | ||||||
Customer accounts .. | 181,540 | 116,308 | 171,280 | 59,512 | 889 | 529,529 | |||||||
Profit/(loss) before tax and balance sheet data - Europe (continued)
Half-year to 31 December 2012 | |||||||||||||
Retail Bankingand Wealth Management US$m |
| Commercial Banking US$m |
| Global Banking and Markets US$m |
| GlobalPrivate Banking US$m |
| Other US$m |
| Inter- segment elimination62 US$m |
| Total US$m | |
Profit/(loss) before tax | |||||||||||||
Net interest income/ (expense) ...... | 2,794 | 1,621 | 659 | 392 | (198) | 53 | 5,321 | ||||||
Net fee income/(expense) ................. | 1,305 | 849 | 611 | 417 | (36) | − | 3,146 | ||||||
Trading income/(expense) excluding net interest income .......... | 40 | 14 | (278) | 103 | 222 | − | 101 | ||||||
Net interest income on trading activities ....... | 4 | 9 | 771 | 9 | 15 | (53) | 755 | ||||||
Net trading income57 ....... | 44 | 23 | 493 | 112 | 237 | (53) | 856 | ||||||
Changes in fair value of long-term debt issuedand related derivatives ..... | − | − | − | − | (1,926) | − | (1,926) | ||||||
Net income/(expense)from other financial instruments designatedat fair value ... | 576 | 103 | 585 | − | (617) | − | 647 | ||||||
Net income/(expense) from financial instruments designated at fair value........ | 576 | 103 | 585 | − | (2,543) | − | (1,279) | ||||||
Gains less losses from financial investments ... | (10) | − | (74) | 1 | (2) | − | (85) | ||||||
Dividend income ...................... | (1) | − | 67 | − | 2 | − | 68 | ||||||
Net earned insurance premiums ...... | 1,503 | 230 | − | 33 | 4 | − | 1,770 | ||||||
Other operating income .......... | 55 | 28 | 75 | 56 | 450 | (54) | 610 | ||||||
Total operating income/(expense) ...... | 6,266 | 2,854 | 2,416 | 1,011 | (2,086) | (54) | 10,407 | ||||||
Net insurance claims63 ......... | (2,121) | (313) | − | (32) | − | − | (2,466) | ||||||
Net operating income/ (expense)22 .... | 4,145 | 2,541 | 2,416 | 979 | (2,086) | (54) | 7,941 | ||||||
Loan impairment charges and other credit risk provisions ...................... | (160) | (697) | (5) | (22) | − | − | (884) | ||||||
Net operating income/ (expense) ...... | 3,985 | 1,844 | 2,411 | 957 | (2,086) | (54) | 7,057 | ||||||
Operating expenses ........ | (3,385) | (1,411) | (2,468) | (693) | (1,903) | 54 | (9,806) | ||||||
Operating profit/(loss) ... | 600 | 433 | (57) | 264 | (3,989) | − | (2,749) | ||||||
Share of profit/(loss) in associates and joint ventures | 1 | 1 | − | (1) | 1 | − | 2 | ||||||
| |||||||||||||
Profit/(loss) before tax ...... | 601 | 434 | (57) | 263 | (3,988) | − | (2,747) | ||||||
% | % | % | % | % | % | ||||||||
Share of HSBC's profitbefore tax ...... | 7.6 | 5.5 | (0.7) | 3.3 | (50.4) | (34.7) | |||||||
Cost efficiency ratio............... | 81.7 | 55.5 | 102.2 | 70.8 | (91.2) | 123.5 | |||||||
Balance sheet data53 | |||||||||||||
US$m | US$m | US$m | US$m | US$m | US$m | ||||||||
Loans and advances tocustomers (net) .............. | 170,002 | 105,796 | 156,798 | 29,963 | 881 | 463,440 | |||||||
Total assets ....... | 240,744 | 132,718 | 1,044,507 | 76,145 | 75,513 | (180,387) | 1,389,240 | ||||||
Customer accounts ........ | 191,024 | 121,648 | 184,473 | 57,125 | 739 | 555,009 | |||||||
For footnotes, see page 100.
Related Shares:
HSBC Holdings