5th Jul 2016 10:05
5 July 2016
Standard Chartered PLC - Re-presentation of financial information
Standard Chartered (the Group) in 2015 announced its intention to reorganise to better align the Group's structure to client segments with clear local or global needs and to streamline the geographic regions. These changes became effective on 1 January this year.
This announcement re-presents the Group's financial results to reflect these changes for the year ended 31 December 2015 and the six months ended 30 June 2015. This approach aligns with how the client segments and geographies are managed internally. The Group will also separately disclose profit and loss and balance sheet items that are not directly related to any client segment or geographic business and internal income earned on the Group's capital deployed in local markets, which was previously allocated across each product line.
To aid comparisons with prior periods, this document will present client segment and product income from the Group's past five quarters.
This representation has not resulted in any changes to the reported income or balances in total at a Group level.
Client segments
The Group's client segments are Corporate and Institutional Banking (CIB), Private Banking, Commercial Banking and Retail Banking. CIB and Private Banking are run as global businesses while Commercial Banking and Retail Banking are run on a country basis with regional oversight. We will therefore continue to present CIB and Private Banking's financial performance on a global basis, by product, while providing a regional geographic breakdown of the financial performance of the locally run client segments.
As previously disclosed, clients from the Local Corporate sub-segment have been transferred from CIB to Commercial Banking as these clients are also managed on a local geographic basis.
Geographic regions
As part of the Group's reorganisation in 2015, the geographic regions were rationalised from eight to four. Each of the four new regions is represented on the Group's Management Team by a regional Chief Executive Officer. This document re-presents the relevant historical geographic disclosures to align to the new structure.
Product income
We have made the following adjustments to product income classifications to align with the way they are managed:
- Treasury internal income earned on capital deployed in local markets which was previously allocated across product income is now disclosed within "Other"
- Loan syndications moved from Capital Markets to Corporate Finance
- Combined Credit and Capital Markets
- Certain Wealth Management product income is classified as Foreign Exchange income
- The creation of an "Other Financial Markets" classification which contains Equities, Money Markets and other items
Creation of "Central and other items"
The Group will now disclose centrally those profit and loss and balance sheet items that are not directly related to a client segment or geographic region. The disclosure of Central and other items will create greater transparency and more closely align the disclosed financial information of the business units with the way that they are managed under the new operational structure.
Central and other items for both client segments and geographies include Corporate Centre Costs, treasury activities, certain strategic investments and the UK Bank Levy. Corporate Centre Costs represent stewardship and central management services roles and activities that are not directly tied to the ongoing business and country operations, such as Group Directorate and Group support functions.
Asset and Liability Management, joint ventures and associate investments are managed in the geographies and hence are included within the applicable region. They are not managed directly by a client segment and therefore are included in Central and other items in the client segment tables.
Central and other items for geographies also include globally run businesses or activities that are managed by the client segments but not directly by geographic management. These include Principal Finance and Portfolio Management.
The tables that follow are based on profit before tax on an underlying basis and exclude restructuring charges, the impact of the credit and funding valuation adjustment methodology change, goodwill impairment, own credit adjustment and gains on disposals of businesses, unless otherwise stated.
Half year results 2016
Standard Chartered's results for the six months ending 30 June 2016 will be announced on Wednesday, 3 August 2016 at 10:00am in the UK. This will be followed by a presentation to investors and analysts at 11:30am in the UK that will be broadcast via a live webcast on our website. The Group's results will be reported on the basis described above.
For further information, please contact:
James Hopkinson, Head of Investor Relations +44 (0)20 7885 7151
Edwin Hui, Head of Investor Relations, Asia +852 2820 3050
Sarah Lindgreen, Head of Media Relations +44 (0)20 7885 8764
Forward-looking statements:
This document contains or incorporates by reference 'forward-looking statements' regarding the belief or expectations of the Company, the Directors and other members of its senior management about the Group's strategy, businesses, performance and the matters described in this document. Generally, words such as ''may'', ''could'', ''will'', ''expect'', ''intend'', ''estimate'', ''anticipate'', ''believe'', ''plan'', ''seek'', ''continue'' or similar expressions are intended to identify forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties. They are not guarantees of future performance and actual results could differ materially from those contained in the forward-looking statements. Forward-looking statements are based on current views, estimates and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of the Group and are difficult to predict. Such risks, factors and uncertainties may cause actual results to differ materially from any future results or developments expressed or implied from the forward-looking statements. Such risks, factors and uncertainties include but are not limited to: changes in the credit quality and the recoverability of loans and amounts due from counterparties; changes in the Group's financial models incorporating assumptions, judgments and estimates which may change over time; risks relating to capital, capital management and liquidity; risks arising out of legal and regulatory matters, investigations and proceedings; operational risks inherent in the Group's business; risks arising out of the Group's holding company structure; risks associated with the recruitment, retention and development of senior management and other skilled personnel; risks associated with business expansion and engaging in acquisitions; global macroeconomic risks; risks arising out of the dispersion of the Group's operations, the locations of its businesses and the legal, political and economic environment in such jurisdictions; competition; risks associated with banking and financial services legislation, regulations, policies and guidelines; changes in the credit ratings or outlook for the Group; market, interest rate, commodity prices, equity price and other market risk; foreign exchange risk; financial market volatility; systemic risk in the banking industry and other financial institutions or corporate borrowers; cross-border country risk; risks arising from operating in markets with less developed judicial and dispute resolution systems; risks arising out of regional hostilities, terrorist attacks, social unrest or natural disasters and failure to generate sufficient level of profits and cash flows to pay future dividends.
Any forward-looking statement contained in this document is based on past or current trends and/or activities of the Company and should not be taken as a representation that such trends or activities will continue in the future. No statement in this document is intended to be a profit forecast or to imply that the earnings of the Company and/or the Group for the current year or future years will necessarily match or exceed the historical or published earnings of the Company and/or the Group. Each forward-looking statement speaks only as of the date of the particular statement. Except as required by any applicable law or regulations, the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
CONTENTS | ||
Page | ||
Section 1 | Operating and Financial Review - Client Segments | 5 |
Section 2 | Operating and Financial Review - Geographic Regions | 12 |
Section 3 | Operating and Financial Review - Operating Income by Product | 17 |
Section 4 | Statutory operating segmental information | 19 |
Section 5 | Other information | 21 |
SECTION 1: OPERATING AND FINANCIAL REVIEW - CLIENT SEGMENTS
A summary of the Group's client segments on a restated basis for the year ended 31 December 2015 and the six months ended 30 June 2015 is as follows:
Table 1
FY 2015 Operating and financial review | Total | |||||
| Year ended 31 December 2015 | |||||
| Corporate & Institutional Banking | Commercial Banking | Private Banking | Retail Banking | Central & other items (Segment) | Total |
| $million | $million | $million | $million | $million | $million |
Operating income | 7,181 | 1,605 | 534 | 5,107 | 1,012 | 15,439 |
Operating expenses | (4,456) | (1,071) | (341) | (3,510) | (1,100) | (10,478) |
Operating profit/(loss) before impairment losses and taxation | 2,725 | 534 | 193 | 1,597 | (88) | 4,961 |
Loan impairment | (2,076) | (1,160) | (94) | (678) | - | (4,008) |
Other impairment | (244) | (17) | - | - | (50) | (311) |
Profit from associates and joint ventures | - | - | - | - | 192 | 192 |
Underlying profit/(loss) before taxation | 405 | (643) | 99 | 919 | 54 | 834 |
Customer loans and advances | 121,523 | 24,340 | 15,296 | 94,367 | 5,877 | 261,403 |
Customer deposits | 187,462 | 30,685 | 24,540 | 114,254 | 2,186 | 359,127 |
Risk-weighted assets | 167,735 | 34,628 | 7,173 | 47,659 | 45,730 | 302,925 |
Return on risk-weighted assets | 0.2% | (1.6%) | 1.4% | 1.8% | 0.1% | 0.3% |
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The reconciliation between Underlying profit/(loss) and Statutory view is detailed in table 27
Table 2
HY 2015 Operating and financial review | Total | |||||
| Six months ended 30 June 2015 | |||||
| Corporate & Institutional Banking | Commercial Banking | Private Banking | Retail Banking | Central & other items (Segment) | Total |
| $million | $million | $million | $million | $million | $million |
Operating income | 3,943 | 919 | 290 | 2,742 | 601 | 8,495 |
Operating expenses | (2,272) | (519) | (195) | (1,762) | (294) | (5,042) |
Operating profit before impairment losses and taxation | 1,671 | 400 | 95 | 980 | 307 | 3,453 |
Loan impairment | (824) | (373) | (94) | (365) | 4 | (1,652) |
Other impairment | (63) | (7) | - | - | (16) | (86) |
Profit from associates and joint ventures | - | - | - | - | 109 | 109 |
Underlying profit before taxation | 784 | 20 | 1 | 615 | 404 | 1,824 |
Customer loans and advances | 133,175 | 29,925 | 17,318 | 96,817 | 5,104 | 282,339 |
Customer deposits | 208,953 | 32,921 | 26,570 | 117,155 | 3,196 | 388,795 |
Risk-weighted assets | 184,083 | 37,260 | 7,519 | 50,343 | 46,966 | 326,171 |
Return on risk-weighted assets | 0.8% | 0.1% | - | 2.4% | 1.7% | 1.1% |
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The reconciliation between Underlying profit and Statutory view is detailed in table 28
Table 3
FY 2015 Operating and financial review |
| Corporate & Institutional Banking | ||||
| Year ended 31 December 2015 | |||||
|
| Corporate & Institutional (Published) | Transfers to Commercial Banking | Transfers to Central & other items (Segment)* | Corporate & Institutional Banking (Restated) | |
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| $million | $million | $million | $million | |
Operating income | 8,696 | (814) | (701) | 7,181 | ||
Operating expenses | (5,198) | 459 | 283 | (4,456) | ||
Operating profit before impairment losses and taxation | 3,498 | (355) | (418) | 2,725 | ||
Loan impairment | (2,638) | 561 | 1 | (2,076) | ||
Other impairment | (294) | 11 | 39 | (244) | ||
Profit from associates and joint ventures | 171 | - | (171) | - | ||
Underlying profit before taxation | 737 | 217 | (549) | 405 | ||
Customer loans and advances | 140,379 | (12,811) | (6,045) | 121,523 | ||
Customer deposits | 200,975 | (11,612) | (1,901) | 187,462 | ||
Risk-weighted assets | 214,478 | (15,103) | (31,640) | 167,735 | ||
Return on risk-weighted assets | 0.3% | 0.2% | ||||
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Table 4
HY 2015 Operating and financial review |
| Corporate & Institutional Banking | ||||
| Six months ended 30 June 2015 | |||||
|
| Corporate & Institutional (Published) | Transfers to Commercial Banking | Transfers to Central & other items (Segment)* | Corporate & Institutional Banking (Restated) | |
|
| $million | $million | $million | $million | |
Operating income | 4,806 | (462) | (401) | 3,943 | ||
Operating expenses | (2,653) | 225 | 156 | (2,272) | ||
Operating profit before impairment losses and taxation | 2,153 | (237) | (245) | 1,671 | ||
Loan impairment | (1,040) | 217 | (1) | (824) | ||
Other impairment | (81) | 1 | 17 | (63) | ||
Profit from associates and joint ventures | 86 | - | (86) | - | ||
Underlying profit before taxation | 1,118 | (19) | (315) | 784 | ||
Customer loans and advances | 154,562 | (15,907) | (5,480) | 133,175 | ||
Customer deposits | 223,814 | (11,996) | (2,865) | 208,953 | ||
Risk-weighted assets | 235,315 | (17,873) | (33,359) | 184,083 | ||
Return on risk-weighted assets | 0.9% | 0.8% | ||||
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The principal movements in the above tables represent the transfer of local corporate activity to the Commercial Banking segment and the transfer of Corporate Centre costs, Group Treasury, ALM and profit from associates and joint ventures to Central & other items (Segment).
*Includes transfers (to)/from other segments for Customer loans and advances, Customer deposits, and Risk-weighted assets
Table 5
FY 2015 Operating and financial review |
| Commercial Banking | ||||
| Year ended 31 December 2015 | |||||
|
| Commercial (Published) | Transfers from Corporate & Institutional | Transfers to Central & other items (Segment)* | Commercial Banking (Restated) | |
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| $million | $million | $million | $million | |
Operating income | 826 | 814 | (35) | 1,605 | ||
Operating expenses | (711) | (459) | 99 | (1,071) | ||
Operating profit before impairment losses and taxation | 115 | 355 | 64 | 534 | ||
Loan impairment | (599) | (561) | - | (1,160) | ||
Other impairment | (7) | (11) | 1 | (17) | ||
Profit from associates and joint ventures | 14 | - | (14) | - | ||
Underlying loss before taxation | (477) | (217) | 51 | (643) | ||
Customer loans and advances | 11,107 | 12,811 | 422 | 24,340 | ||
Customer deposits | 19,071 | 11,612 | 2 | 30,685 | ||
Risk-weighted assets | 20,312 | 15,103 | (787) | 34,628 | ||
Return on risk-weighted assets | (2.1%) | (1.6%) | ||||
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The principal movements in the above table represent the transfer of local corporate activity from CIB segment and the transfer of Corporate Centre costs, Group Treasury and profit from associates and joint ventures to Central & other items (Segment).
*Includes transfers (to)/from other segments for Customer loans and advances, Customer deposits, and Risk-weighted assets
Table 6
FY 2015 Operating and financial review | Commercial Banking | ||||
| Year ended 31 December 2015 | ||||
| Greater China & North Asia | ASEAN & South Asia | Africa & Middle East | Europe & Americas | Total |
| $million | $million | $million | $million | $million |
Operating income | 709 | 533 | 363 | - | 1,605 |
Operating expenses | (510) | (313) | (248) | - | (1,071) |
Operating profit before impairment losses and taxation | 199 | 220 | 115 | - | 534 |
Loan impairment | (423) | (429) | (308) | - | (1,160) |
Other impairment | (9) | (8) | - | - | (17) |
Underlying (loss)/profit before taxation | (233) | (217) | (193) | - | (643) |
Customer loans and advances | 12,097 | 8,307 | 3,936 | - | 24,340 |
Customer deposits | 17,717 | 9,523 | 3,445 | - | 30,685 |
Risk-weighted assets | 14,431 | 12,521 | 7,676 | - | 34,628 |
Return on risk-weighted assets | (1.3%) | (1.2%) | (1.5%) | - | (1.6%) |
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Table 7
HY 2015 Operating and financial review |
| Commercial Banking | ||||
| Six months ended 30 June 2015 | |||||
|
| Commercial (Published) | Transfers from Corporate & Institutional | Transfers to Central & other items (Segment)* | Commercial Banking (Restated) | |
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| $million | $million | $million | $million | |
Operating income | 497 | 462 | (40) | 919 | ||
Operating expenses | (324) | (225) | 30 | (519) | ||
Operating profit before impairment losses and taxation | 173 | 237 | (10) | 400 | ||
Loan impairment | (154) | (217) | (2) | (373) | ||
Other impairment | (6) | (1) | - | (7) | ||
Profit from associates and joint ventures | 10 | - | (10) | - | ||
Underlying profit before taxation | 23 | 19 | (22) | 20 | ||
Customer loans and advances | 13,441 | 15,907 | 577 | 29,925 | ||
Customer deposits | 20,940 | 11,996 | (15) | 32,921 | ||
Risk-weighted assets | 20,320 | 17,873 | (933) | 37,260 | ||
Return on risk-weighted assets | 0.2% | 0.1% | ||||
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The principal movements in the above table represent the transfer of local corporate activity from CIB segment and the transfer of Corporate Centre costs, Group Treasury and profit from associates and joint ventures to Central & other items (Segment).
*Includes transfers (to)/from other segments for Customer loans and advances, Customer deposits, and Risk-weighted assets
Table 8
HY 2015 Operating and financial review | Commercial Banking | ||||
| Six months ended 30 June 2015 | ||||
| Greater China & North Asia | ASEAN & South Asia | Africa & Middle East | Europe & Americas | Total |
| $million | $million | $million | $million | $million |
Operating income | 434 | 277 | 208 | - | 919 |
Operating expenses | (243) | (157) | (119) | - | (519) |
Operating profit before impairment losses and taxation | 191 | 120 | 89 | - | 400 |
Loan impairment | (95) | (190) | (88) | - | (373) |
Other impairment | (7) | - | - | - | (7) |
Underlying profit/(loss) before taxation | 89 | (70) | 1 | - | 20 |
Customer loans and advances | 15,596 | 9,615 | 4,714 | - | 29,925 |
Customer deposits | 18,117 | 11,031 | 3,773 | - | 32,921 |
Risk-weighted assets | 13,928 | 14,557 | 8,775 | - | 37,260 |
Return on risk-weighted assets | 1.0% | (0.7%) | - | - | 0.1% |
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Table 9
FY 2015 Operating and financial review |
| Private Banking | ||||
| Year ended 31 December 2015 | |||||
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| Private Banking(Published) | Transfers to Central & other items (Segment)* | Private Banking (Restated) | ||
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| $million | $million | $million | ||
Operating income | 557 | (23) | 534 | |||
Operating expenses | (361) | 20 | (341) | |||
Operating profit before impairment losses and taxation | 196 | (3) | 193 | |||
Loan impairment | (94) | - | (94) | |||
Other impairment | (5) | 5 | - | |||
Underlying profit before taxation | 97 | 2 | 99 | |||
Customer loans and advances | 15,068 | 228 | 15,296 | |||
Customer deposits | 24,532 | 8 | 24,540 | |||
Risk-weighted assets | 8,116 | (943) | 7,173 | |||
Return on risk-weighted assets | 1.2% | 1.4% | ||||
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Table 10
HY 2015 Operating and financial review |
| Private Banking | ||||
| Six months ended 30 June 2015 | |||||
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| Private Banking(Published) | Transfers to Central & other items (Segment)* | Private Banking (Restated) | ||
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| $million | $million | $million | ||
Operating income | 304 | (14) | 290 | |||
Operating expenses | (208) | 13 | (195) | |||
Operating profit before impairment losses and taxation | 96 | (1) | 95 | |||
Loan impairment | (94) | - | (94) | |||
Other impairment | 1 | (1) | - | |||
Underlying profit before taxation | 3 | (2) | 1 | |||
Customer loans and advances | 17,211 | 107 | 17,318 | |||
Customer deposits | 26,571 | (1) | 26,570 | |||
Risk-weighted assets | 8,508 | (989) | 7,519 | |||
Return on risk-weighted assets | 0.1% | - | ||||
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*Includes transfers (to)/from other segments for Customer loans and advances, Customer deposits, and Risk-weighted assets
Table 11
FY 2015 Operating and financial review |
| Retail Banking | ||||
| Year ended 31 December 2015 | |||||
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| Retail(Published) | Transfers to Central & other items (Segment)* | Retail Banking (Restated) | ||
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| $million | $million | $million | ||
Operating income | 5,360 | (253) | 5,107 | |||
Operating expenses | (3,768) | 258 | (3,510) | |||
Operating profit before impairment losses and taxation | 1,592 | 5 | 1,597 | |||
Loan impairment | (677) | (1) | (678) | |||
Other impairment | (5) | 5 | - | |||
Profit from associates and joint ventures | 7 | (7) | - | |||
Underlying profit before taxation | 917 | 2 | 919 | |||
Customer loans and advances | 94,849 | (482) | 94,367 | |||
Customer deposits | 114,549 | (295) | 114,254 | |||
Risk-weighted assets | 60,019 | (12,360) | 47,659 | |||
Return on risk-weighted assets | 1.5% | 1.8% | ||||
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The principal movements in the above table represent the transfer of Corporate Centre costs and Group Treasury to Central & other items (Segment).
*Includes transfers (to)/from other segments for Customer loans and advances, Customer deposits, and Risk-weighted assets
Table 12
FY 2015 Operating and financial review | Retail Banking | ||||
| Year ended 31 December 2015 | ||||
| Greater China & North Asia | ASEAN & South Asia | Africa & Middle East | Europe & Americas | Total |
| $million | $million | $million | $million | $million |
Operating income | 2,683 | 1,531 | 864 | 29 | 5,107 |
Operating expenses | (1,866) | (1,012) | (615) | (17) | (3,510) |
Operating profit before impairment losses and taxation | 817 | 519 | 249 | 12 | 1,597 |
Loan impairment | (296) | (312) | (70) | - | (678) |
Underlying profit before taxation | 521 | 207 | 179 | 12 | 919 |
Customer loans and advances | 60,388 | 27,337 | 6,360 | 282 | 94,367 |
Customer deposits | 75,523 | 28,644 | 8,744 | 1,343 | 114,254 |
Risk-weighted assets | 24,262 | 16,284 | 6,927 | 186 | 47,659 |
Return on risk-weighted assets | 2.1% | 1.2% | 2.1% | 3.9% | 1.8% |
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Table 13
HY 2015 Operating and financial review |
| Retail Banking | ||||
| Six months ended 30 June 2015 | |||||
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| Retail(Published) | Transfers to Central & other items (Segment)* | Retail Banking (Restated) | ||
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| $million | $million | $million | ||
Operating income | 2,888 | (146) | 2,742 | |||
Operating expenses | (1,857) | 95 | (1,762) | |||
Operating profit before impairment losses and taxation | 1,031 | (51) | 980 | |||
Loan impairment | (364) | (1) | (365) | |||
Profit from associates and joint ventures | 13 | (13) | - | |||
Underlying profit before taxation | 680 | (65) | 615 | |||
Customer loans and advances | 97,125 | (308) | 96,817 | |||
Customer deposits | 117,470 | (315) | 117,155 | |||
Risk-weighted assets | 62,028 | (11,685) | 50,343 | |||
Return on risk-weighted assets | 2.2% | 2.4% | ||||
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The principal movements in the above table represent the transfer of Corporate Centre costs and Group Treasury to Central & other items (Segment).
*Includes transfers (to)/from other segments for Customer loans and advances, Customer deposits, and Risk-weighted assets
Table 14
HY 2015 Operating and financial review | Retail Banking | ||||
| Six months ended 30 June 2015 | ||||
| Greater China & North Asia | ASEAN & South Asia | Africa & Middle East | Europe & Americas | Total |
| $million | $million | $million | $million | $million |
Operating income | 1,475 | 795 | 457 | 15 | 2,742 |
Operating expenses | (932) | (511) | (309) | (10) | (1,762) |
Operating profit before impairment losses and taxation | 543 | 284 | 148 | 5 | 980 |
Loan impairment | (177) | (157) | (31) | - | (365) |
Underlying profit before taxation | 366 | 127 | 117 | 5 | 615 |
Customer loans and advances | 60,566 | 29,383 | 6,619 | 249 | 96,817 |
Customer deposits | 75,819 | 31,053 | 8,833 | 1,450 | 117,155 |
Risk-weighted assets | 25,742 | 16,954 | 7,487 | 160 | 50,343 |
Return on risk-weighted assets | 2.9 | 1.5 | 2.7 | 3.4 | 2.4% |
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SECTION 2: OPERATING AND FINANCIAL REVIEW - GEOGRAPHIC REGIONS
A summary of the Group's geographic regions on a restated basis for the year ended 31 December 2015 and the six months ended 30 June 2015 is as follows:
Table 15
FY 2015 Operating and financial review | Total | |||||
| Year ended 31 December 2015 | |||||
| Greater China & North Asia | ASEAN & South Asia | Africa & Middle East | Europe & Americas | Central & other items (Geographic) | Total |
| $million | $million | $million | $million | $million | $million |
Operating income | 6,077 | 4,253 | 2,858 | 1,877 | 374 | 15,439 |
Operating expenses | (3,763) | (2,621) | (1,790) | (1,387) | (917) | (10,478) |
Operating profit/(loss) before impairment losses and taxation | 2,314 | 1,632 | 1,068 | 490 | (543) | 4,961 |
Loan impairment | (935) | (1,942) | (844) | (192) | (95) | (4,008) |
Other impairment | (28) | (63) | (36) | 18 | (202) | (311) |
Profit from associates and joint ventures | 172 | 15 | - | - | 5 | 192 |
Underlying profit/(loss) before taxation | 1,523 | (358) | 188 | 316 | (835) | 834 |
Customer loans and advances | 106,161 | 85,977 | 31,070 | 37,829 | 366 | 261,403 |
Customer deposits | 163,519 | 90,539 | 33,013 | 71,864 | 192 | 359,127 |
Risk-weighted assets | 82,070 | 109,730 | 57,566 | 56,815 | (3,256) | 302,925 |
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The reconciliation between Underlying profit/(loss) and Statutory view is detailed in table 29
Table 16
HY 2015 Operating and financial review | Total | |||||
| Six months ended 30 June 2015 | |||||
| Greater China & North Asia | ASEAN & South Asia | Africa & Middle East | Europe & Americas | Central & other items (Geographic) | Total |
| $million | $million | $million | $million | $million | $million |
Operating income | 3,388 | 2,200 | 1,553 | 986 | 368 | 8,495 |
Operating expenses | (1,906) | (1,287) | (907) | (688) | (254) | (5,042) |
Operating profit before impairment losses and taxation | 1,482 | 913 | 646 | 298 | 114 | 3,453 |
Loan impairment | (426) | (815) | (284) | (131) | 4 | (1,652) |
Other impairment | (7) | (15) | (3) | 2 | (63) | (86) |
Profit from associates and joint ventures | 77 | 29 | - | - | 3 | 109 |
Underlying profit before taxation | 1,126 | 112 | 359 | 169 | 58 | 1,824 |
Customer loans and advances | 116,401 | 97,142 | 34,428 | 33,893 | 475 | 282,339 |
Customer deposits | 173,001 | 106,798 | 33,873 | 74,827 | 296 | 388,795 |
Risk-weighted assets | 88,660 | 119,620 | 60,163 | 58,753 | (1,025) | 326,171 |
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The reconciliation between Underlying profit and Statutory view is detailed in table 30
Table 17
FY 2015 Operating and financial review | Greater China & North Asia | |||||
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| Year ended 31 December 2015 | ||||
| Greater China (Published) | North East Asia (Published) | Total (Published) | Transfers to Central & other items (Geographic)* | Total (Restated) | |
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| $million | $million | $million | $million | $million |
Operating income | 5,044 | 1,223 | 6,267 | (190) | 6,077 | |
Operating expenses | (2,943) | (1,035) | (3,978) | 215 | (3,763) | |
Operating profit before impairment losses and taxation | 2,101 | 188 | 2,289 | 25 | 2,314 | |
Loan impairment | (701) | (247) | (948) | 13 | (935) | |
Other impairment | (46) | (12) | (58) | 30 | (28) | |
Profit from associates and joint ventures | 173 | - | 173 | (1) | 172 | |
Underlying profit/(loss) before taxation | 1,527 | (71) | 1,456 | 67 | 1,523 | |
Customer loans and advances | 77,675 | 28,608 | 106,283 | (122) | 106,161 | |
Customer deposits | 132,062 | 31,400 | 163,462 | 57 | 163,519 | |
Risk-weighted assets | 57,536 | 19,752 | 77,288 | 4,782 | 82,070 | |
|
|
|
|
|
|
|
Table 18
HY 2015 Operating and financial review | Greater China & North Asia | |||||
|
| Six months ended 30 June 2015 | ||||
| Greater China (Published) | North East Asia (Published) | Total (Published) | Transfers to Central & other items (Geographic)* | Total (Restated) | |
|
| $million | $million | $million | $million | $million |
Operating income | 2,854 | 730 | 3,584 | (196) | 3,388 | |
Operating expenses | (1,474) | (525) | (1,999) | 93 | (1,906) | |
Operating profit before impairment losses and taxation | 1,380 | 205 | 1,585 | (103) | 1,482 | |
Loan impairment | (290) | (136) | (426) | - | (426) | |
Other impairment | (1) | (7) | (8) | 1 | (7) | |
Profit from associates and joint ventures | 77 | - | 77 | - | 77 | |
Underlying profit before taxation | 1,166 | 62 | 1,228 | (102) | 1,126 | |
Customer loans and advances | 86,429 | 30,135 | 116,564 | (163) | 116,401 | |
Customer deposits | 141,700 | 31,295 | 172,995 | 6 | 173,001 | |
Risk-weighted assets | 63,350 | 21,672 | 85,022 | 3,638 | 88,660 | |
|
|
|
|
|
|
|
The movements in the above tables represent the transfer of Corporate Centre costs and Group Treasury.
*Includes transfers (to)/ from other regions for Customer loans and advances, Customer deposits, and Risk-weighted assets
Table 19
FY 2015 Operating and financial review | ASEAN & South Asia | |||||
|
| Year ended 31 December 2015 | ||||
| South Asia (Published) | ASEAN (Published) | Total (Published) | Transfers to Central & other items (Geographic)* | Total (Restated) | |
|
| $million | $million | $million | $million | $million |
Operating income | 1,435 | 2,997 | 4,432 | (179) | 4,253 | |
Operating expenses | (827) | (1,880) | (2,707) | 86 | (2,621) | |
Operating profit before impairment losses and taxation | 608 | 1,117 | 1,725 | (93) | 1,632 | |
Loan impairment | (961) | (967) | (1,928) | (14) | (1,942) | |
Other impairment | (31) | (20) | (51) | (12) | (63) | |
Profit from associates and joint ventures | - | 16 | 16 | (1) | 15 | |
Underlying (loss)/profit before taxation | (384) | 146 | (238) | (120) | (358) | |
Customer loans and advances | 19,287 | 66,942 | 86,229 | (252) | 85,977 | |
Customer deposits | 15,036 | 75,788 | 90,824 | (285) | 90,539 | |
Risk-weighted assets | 23,384 | 70,406 | 93,790 | 15,940 | 109,730 | |
|
|
|
|
|
|
|
Table 20
HY 2015 Operating and financial review | ASEAN & South Asia | |||||
|
| Six months ended 30 June 2015 | ||||
| South Asia (Published) | ASEAN (Published) | Total (Published) | Transfers to Central & other items (Geographic)* | Total (Restated) | |
|
| $million | $million | $million | $million | $million |
Operating income | 718 | 1,617 | 2,335 | (135) | 2,200 | |
Operating expenses | (385) | (973) | (1,358) | 71 | (1,287) | |
Operating profit before impairment losses and taxation | 333 | 644 | 977 | (64) | 913 | |
Loan impairment | (485) | (328) | (813) | (2) | (815) | |
Other impairment | (18) | (1) | (19) | 4 | (15) | |
Profit from associates and joint ventures | - | 32 | 32 | (3) | 29 | |
Underlying (loss)/profit before taxation | (170) | 347 | 177 | (65) | 112 | |
Customer loans and advances | 23,414 | 74,006 | 97,420 | (278) | 97,142 | |
Customer deposits | 16,557 | 90,548 | 107,105 | (307) | 106,798 | |
Risk-weighted assets | 25,788 | 77,099 | 102,887 | 16,733 | 119,620 | |
|
|
|
|
|
|
|
The principal movements in the above tables represent the transfer of Corporate Centre costs, Group Treasury to the Central & other items (Geographic) segment.
*Includes transfers (to)/ from other regions for Customer loans and advances, Customer deposits, and Risk-weighted assets
Table 21
FY 2015 Operating and financial review | Africa & Middle East | |||||
|
| Year ended 31 December 2015 | ||||
| MENAP (Published) | Africa (Published) | Total (Published) | Transfers to Central & other items (Geographic)* | Total (Restated) | |
|
| $million | $million | $million | $million | $million |
Operating income | 1,503 | 1,432 | 2,935 | (77) | 2,858 | |
Operating expenses | (947) | (918) | (1,865) | 75 | (1,790) | |
Operating profit before impairment losses and taxation | 556 | 514 | 1,070 | (2) | 1,068 | |
Loan impairment | (436) | (502) | (938) | 94 | (844) | |
Other impairment | (3) | (48) | (51) | 15 | (36) | |
Profit from associates and joint ventures | - | 4 | 4 | (4) | - | |
Underlying profit/(loss) before taxation | 117 | (32) | 85 | 103 | 188 | |
Customer loans and advances | 19,485 | 11,562 | 31,047 | 23 | 31,070 | |
Customer deposits | 22,019 | 10,983 | 33,002 | 11 | 33,013 | |
Risk-weighted assets | 27,022 | 19,156 | 46,178 | 11,388 | 57,566 | |
|
|
|
|
|
|
|
Table 22
HY 2015 Operating and financial review | Africa & Middle East | |||||
|
| Six months ended 30 June 2015 | ||||
| MENAP (Published) | Africa (Published) | Total (Published) | Transfers to Central & other items (Geographic)* | Total (Restated) | |
|
| $million | $million | $million | $million | $million |
Operating income | 835 | 759 | 1,594 | (41) | 1,553 | |
Operating expenses | (475) | (467) | (942) | 35 | (907) | |
Operating profit before impairment losses and taxation | 360 | 292 | 652 | (6) | 646 | |
Loan impairment | (134) | (148) | (282) | (2) | (284) | |
Other impairment | - | (3) | (3) | - | (3) | |
Underlying profit before taxation | 226 | 141 | 367 | (8) | 359 | |
Customer loans and advances | 21,658 | 12,758 | 34,416 | 12 | 34,428 | |
Customer deposits | 22,943 | 10,928 | 33,871 | 2 | 33,873 | |
Risk-weighted assets | 28,842 | 18,851 | 47,693 | 12,470 | 60,163 | |
|
|
|
|
|
|
|
The principal movements in the above tables represent the transfer of Corporate Centre costs, Group Treasury to the Central & other items (Geographic) segment.
*Includes transfers (to)/ from other regions for Customer loans and advances, Customer deposits, and Risk-weighted assets
Table 23
FY 2015 Operating and financial review | Europe & Americas | |||||
|
| Year ended 31 December 2015 | ||||
| Americas (Published) | Europe (Published) | Total (Published) | Transfers to Central & other items (Geographic)* | Total (Restated) | |
|
| $million | $million | $million | $million | $million |
Operating income | 863 | 942 | 1,805 | 72 | 1,877 | |
Operating expenses | (799) | (1,129) | (1,928) | 541 | (1,387) | |
Operating profit/(loss) before impairment losses and taxation | 64 | (187) | (123) | 613 | 490 | |
Loan impairment | (62) | (132) | (194) | 2 | (192) | |
Other impairment | (7) | (144) | (151) | 169 | 18 | |
Profit from associates and joint ventures | - | (1) | (1) | 1 | - | |
Underlying (loss)/profit before taxation | (5) | (464) | (469) | 785 | 316 | |
Customer loans and advances | 11,498 | 26,346 | 37,844 | (15) | 37,829 | |
Customer deposits | 18,315 | 53,524 | 71,839 | 25 | 71,864 | |
Risk-weighted assets | 12,784 | 82,921 | 95,705 | (38,890) | 56,815 | |
|
|
|
|
|
|
|
Table 24
HY 2015 Operating and financial review | Europe & Americas | |||||
|
| Six months ended 30 June 2015 | ||||
| Americas (Published) | Europe (Published) | Total (Published) | Transfers to Central & other items (Geographic)* | Total (Restated) | |
|
| $million | $million | $million | $million | $million |
Operating income | 440 | 542 | 982 | 4 | 986 | |
Operating expenses | (392) | (351) | (743) | 55 | (688) | |
Operating profit before impairment losses and taxation | 48 | 191 | 239 | 59 | 298 | |
Loan impairment | (19) | (112) | (131) | - | (131) | |
Other impairment | - | (56) | (56) | 58 | 2 | |
Underlying profit before taxation | 29 | 23 | 52 | 117 | 169 | |
Customer loans and advances | 12,498 | 21,441 | 33,939 | (46) | 33,893 | |
Customer deposits | 25,538 | 49,286 | 74,824 | 3 | 74,827 | |
Risk-weighted assets | 13,675 | 87,062 | 100,737 | (41,984) | 58,753 | |
|
|
|
|
|
|
|
The principal movements in the above tables represent the transfer of Corporate Centre costs, Group Treasury to the Central & other items (Geographic) segment.
*Includes transfers (to)/ from other regions for Customer loans and advances, Customer deposits, and Risk-weighted assets
SECTION 3: OPERATING AND FINANCIAL REVIEW - OPERATING INCOME BY PRODUCT
A summary of the Group's operating income by product and client segment on a restated basis for the year ended 31 December 2015 and six months ended 30 June 2015 is as follows:
Table 25
FY 2015 Operating and financial review | Total | Represented by | |||||||||
| Year ended 31 December 2015 |
| Year ended 31 December 2015 | ||||||||
| As published | Central & other items | Reclasses | As restated | Corporate & Institutional Banking | Commercial Banking | Private Banking | Retail Banking | Central & other items (Segment) | Total | |
| $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | |
Transaction Banking | 3,363 | (113) | - | 3,250 | 2,448 | 790 | 1 | 11 | - | 3,250 | |
Trade | 1,593 | (112) | - | 1,481 | 983 | 486 | 1 | 11 | - | 1,481 | |
Cash Management and Custody | 1,770 | (1) | - | 1,769 | 1,465 | 304 | - | - | - | 1,769 | |
Financial Markets | 2,739 | (95) | 277 | 2,921 | 2,533 | 388 | - | - | - | 2,921 | |
Foreign Exchange | 1,345 | (23) | 79 | 1,401 | 1,077 | 324 | - | - | - | 1,401 | |
Rates | 793 | (35) | - | 758 | 729 | 29 | - | - | - | 758 | |
Commodities | 270 | (11) | - | 259 | 226 | 33 | - | - | - | 259 | |
Credit and Capital Markets | 189 | (22) | 198 | 365 | 362 | 3 | - | - | - | 365 | |
Other Financial Markets | 142 | (4) | - | 138 | 139 | (1) | - | - | - | 138 | |
Corporate Finance | 2,145 | (119) | (189) | 1,837 | 1,733 | 102 | 2 | - | - | 1,837 | |
Wealth Management | 1,729 | (17) | (79) | 1,633 | - | 5 | 365 | 1,263 | - | 1,633 | |
Retail Products | 4,122 | (101) | (51) | 3,970 | - | 15 | 165 | 3,790 | - | 3,970 | |
CCPL and other unsecured lending | 1,962 | (53) | - | 1,909 | - | 1 | - | 1,908 | - | 1,909 | |
Deposits | 1,184 | 1 | - | 1,185 | - | 14 | 121 | 1,050 | - | 1,185 | |
Mortgage and Auto | 835 | (37) | - | 798 | - | - | 44 | 754 | - | 798 | |
Other Retail Products | 141 | (12) | (51) | 78 | - | - | - | 78 | - | 78 | |
Asset and Liability Management | 425 | (54) | - | 371 | - | - | - | - | 371 | 371 | |
Lending and Portfolio Management | 844 | (124) | - | 720 | 414 | 306 | - | - | - | 720 | |
Principal Finance | 72 | (18) | - | 54 | 53 | - | 1 | - | - | 54 | |
Other | - | 641 | 42 | 683 | - | (1) | - | 43 | 641 | 683 | |
Total operating income | 15,439 | - | - | 15,439 |
| 7,181 | 1,605 | 534 | 5,107 | 1,012 | 15,439 |
Reclassification: Treasury internal income earned on capital deployed in local markets which was previously allocated across product income is now disclosed within Other. Additionally, to better reflect the new organisational structure, we have made adjustments to some of the product income classes to align with the way they are managed. The primary changes are 1) moving Loan syndications from Capital Markets to Corporate Finance, 2) combining Credit and Capital Markets, 3) moving certain Wealth Management product income into Foreign Exchange income and 4) creating an Other Financial Markets classification which contains Equities, Money Markets and other items.
Table 26
HY 2015 Operating and financial review | Total | Represented by | |||||||||
| Six months ended 30 June 2015 |
| Six months ended 30 June 2015 | ||||||||
| As published | Central & other items | Reclasses | As restated | Corporate & Institutional Banking | Commercial Banking | Private Banking | Retail Banking | Central & other items (Segment) | Total | |
| $million | $million | $million | $million | $million | $million | $million | $million | $million | $million | |
Transaction Banking | 1,777 | (60) | - | 1,717 | 1,293 | 418 | - | 6 | - | 1,717 | |
Trade | 864 | (60) | - | 804 | 536 | 262 | - | 6 | - | 804 | |
Cash Management and Custody | 913 | - | - | 913 | 757 | 156 | - | - | - | 913 | |
Financial Markets | 1,528 | (47) | 236 | 1,717 | 1,443 | 274 | - | - | - | 1,717 | |
Foreign Exchange | 720 | (10) | 49 | 759 | 548 | 211 | - | - | - | 759 | |
Rates | 491 | (19) | - | 472 | 451 | 21 | - | - | - | 472 | |
Commodities | 154 | (6) | - | 148 | 128 | 20 | - | - | - | 148 | |
Credit and Capital Markets | 36 | (11) | 187 | 212 | 211 | 1 | - | - | - | 212 | |
Other Financial Markets | 127 | (1) | - | 126 | 105 | 21 | - | - | - | 126 | |
Corporate Finance | 1,108 | (60) | (187) | 861 | 807 | 52 | 2 | - | - | 861 | |
Wealth Management | 952 | (9) | (49) | 894 | - | 3 | 207 | 684 | - | 894 | |
Retail Products | 2,206 | (66) | (37) | 2,103 | - | 8 | 81 | 2,014 | - | 2,103 | |
CCPL and other unsecured lending | 1,077 | (28) | - | 1,049 | - | 1 | 1 | 1,047 | - | 1,049 | |
Deposits | 612 | (1) | - | 611 | - | 7 | 57 | 547 | - | 611 | |
Mortgage and Auto | 423 | (21) | - | 402 | - | - | 23 | 379 | - | 402 | |
Other Retail Products | 94 | (16) | (37) | 41 | - | - | - | 41 | - | 41 | |
Asset and Liability Management | 278 | (30) | - | 248 | - | - | - | - | 248 | 248 | |
Lending and Portfolio Management | 475 | (69) | - | 406 | 242 | 164 | - | - | - | 406 | |
Principal Finance | 171 | (12) | - | 159 | 158 | - | 1 | - | - | 159 | |
Other | - | 353 | 37 | 390 | - | - | (1) | 38 | 353 | 390 | |
Total operating income | 8,495 | - | - | 8,495 | 3,943 | 919 | 290 | 2,742 | 601 | 8,495 | |
Reclassification: Treasury internal income earned on capital deployed in local markets which was previously allocated across product income is now disclosed within Other. Additionally, to better reflect the new organisational structure, we have made adjustments to some of the product income classes to align with the way they are managed. The primary changes are 1) moving Loan syndications from Capital Markets to Corporate Finance, 2) combining Credit and Capital Markets, 3) moving certain Wealth Management product income into Foreign Exchange income and 4) creating an Other Financial Markets classification which contains Equities, Money Markets and other items.
SECTION 4: STATUTORY OPERATING SEGMENTAL INFORMATION
A summary of the Group's client segments for the year ended 31 December 2015 and the six months ended 30 June 2015 required by IFRS 8 Operating Segments, as will be reported going forward, are shown in the tables below:
Table 27
FY 2015 Note 2 Segmental information | Total | |||||
| Year ended 31 December 2015 | |||||
| Corporate & Institutional Banking | Commercial Banking | Private Banking | Retail Banking | Central & other items (Segment) | Total |
| $million | $million | $million | $million | $million | $million |
Operating income | 7,181 | 1,605 | 534 | 5,107 | 1,012 | 15,439 |
Operating expenses | (4,456) | (1,071) | (341) | (3,510) | (1,100) | (10,478) |
Operating profit/(loss) before impairment losses and taxation | 2,725 | 534 | 193 | 1,597 | (88) | 4,961 |
Loan impairment | (2,076) | (1,160) | (94) | (678) | - | (4,008) |
Other impairment | (244) | (17) | - | - | (50) | (311) |
Profit from associates and joint ventures | - | - | - | - | 192 | 192 |
Underlying profit/(loss) before taxation | 405 | (643) | 99 | 919 | 54 | 834 |
Restructuring - operating expenses | (215) | (61) | (7) | (395) | (17) | (695) |
Restructuring - loan impairments | (968) | - | - | - | - | (968) |
Restructuring - other impairments | (10) | - | - | - | (46) | (56) |
Restructuring - goodwill impairment | - | - | - | - | (126) | (126) |
Restructuring | (1,193) | (61) | (7) | (395) | (189) | (1,845) |
Valuation methodology changes | (863) | - | - | - | - | (863) |
Gains on businesses disposed/held for sale | - | - | - | - | 218 | 218 |
Own credit adjustment | - | - | - | - | 495 | 495 |
Goodwill impairment | - | - | - | - | (362) | (362) |
Statutory (loss)/profit before taxation | (1,651) | (704) | 92 | 524 | 216 | (1,523) |
Total assets employed | 288,047 | 25,460 | 15,393 | 96,936 | 214,647 | 640,483 |
Of which: Loans to customers | 121,523 | 24,340 | 15,296 | 94,367 | 5,877 | 261,403 |
Total liabilities employed | 347,184 | 32,361 | 24,627 | 116,859 | 70,940 | 591,971 |
Of which: Customer accounts | 187,462 | 30,685 | 24,540 | 114,254 | 2,186 | 359,127 |
Table 28
HY 2015 Note 2 Segmental information | Total | |||||
| Six months ended 30 June 2015 | |||||
| Corporate & Institutional Banking | Commercial Banking | Private Banking | Retail Banking | Central & other items (Segment) | Total |
| $million | $million | $million | $million | $million | $million |
Operating income | 3,943 | 919 | 290 | 2,742 | 601 | 8,495 |
Operating expenses | (2,272) | (519) | (195) | (1,762) | (294) | (5,042) |
Operating profit before impairment losses and taxation | 1,671 | 400 | 95 | 980 | 307 | 3,453 |
Loan impairment | (824) | (373) | (94) | (365) | 4 | (1,652) |
Other impairment | (63) | (7) | - | - | (16) | (86) |
Profit from associates and joint ventures | - | - | - | - | 109 | 109 |
Underlying profit before taxation | 784 | 20 | 1 | 615 | 404 | 1,824 |
Gains on businesses disposed/held for sale | - | - | - | - | 219 | 219 |
Own credit adjustment | - | - | - | - | 55 | 55 |
Statutory profit before taxation | 784 | 20 | 1 | 615 | 678 | 2,098 |
Total assets employed | 318,950 | 31,309 | 17,441 | 99,532 | 227,724 | 694,956 |
Of which: Loans to customers | 133,175 | 29,925 | 17,318 | 96,817 | 5,104 | 282,339 |
Total liabilities employed | 377,772 | 34,913 | 26,691 | 120,041 | 86,195 | 645,612 |
Of which: Customer accounts | 208,953 | 32,921 | 26,570 | 117,155 | 3,196 | 388,795 |
Table 29
FY 2015 Note 2 Segmental information | Total | |||||
| Year ended 31 December 2015 | |||||
| Greater China & North Asia | ASEAN & South Asia | Africa & Middle East | Europe & Americas | Central & other items (Geographic) | Total |
| $million | $million | $million | $million | $million | $million |
Operating income | 6,077 | 4,253 | 2,858 | 1,877 | 374 | 15,439 |
Operating expenses | (3,763) | (2,621) | (1,790) | (1,387) | (917) | (10,478) |
Operating profit/(loss) before impairment losses and taxation | 2,314 | 1,632 | 1,068 | 490 | (543) | 4,961 |
Loan impairment | (935) | (1,942) | (844) | (192) | (95) | (4,008) |
Other impairment | (28) | (63) | (36) | 18 | (202) | (311) |
Profit from associates and joint ventures | 172 | 15 | - | - | 5 | 192 |
Underlying profit/(loss) before taxation | 1,523 | (358) | 188 | 316 | (835) | 834 |
Restructuring - operating expenses | (520) | (66) | (58) | (37) | (14) | (695) |
Restructuring - loan impairments | - | (435) | (54) | (479) | - | (968) |
Restructuring - other impairments | - | (46) | - | - | (10) | (56) |
Restructuring - goodwill impairment | - | - | - | - | (126) | (126) |
Restructuring | (520) | (547) | (112) | (516) | (150) | (1,845) |
Valuation methodology changes | - | - | - | - | (863) | (863) |
Gains on businesses disposed/held for sale | 217 | - | 1 | - | - | 218 |
Own credit adjustment | - | - | - | - | 495 | 495 |
Goodwill impairment | - | - | - | - | (362) | (362) |
Statutory profit/(loss) before taxation | 1,220 | (905) | 77 | (200) | (1,715) | (1,523) |
Table 30
HY 2015 Note 2 Segmental information | Total | |||||
| Six months ended 30 June 2015 | |||||
| Greater China & North Asia | ASEAN & South Asia | Africa & Middle East | Europe & Americas | Central & other items (Geographic) | Total |
| $million | $million | $million | $million | $million | $million |
Operating income | 3,388 | 2,200 | 1,553 | 986 | 368 | 8,495 |
Operating expenses | (1,906) | (1,287) | (907) | (688) | (254) | (5,042) |
Operating profit before impairment losses and taxation | 1,482 | 913 | 646 | 298 | 114 | 3,453 |
Loan impairment | (426) | (815) | (284) | (131) | 4 | (1,652) |
Other impairment | (7) | (15) | (3) | 2 | (63) | (86) |
Profit from associates and joint ventures | 77 | 29 | - | - | 3 | 109 |
Underlying profit before taxation | 1,126 | 112 | 359 | 169 | 58 | 1,824 |
Gains on businesses disposed/held for sale | 217 | - | 2 | - | - | 219 |
Own credit adjustment | - | - | - | - | 55 | 55 |
Statutory profit before taxation | 1,343 | 112 | 361 | 169 | 113 | 2,098 |
SECTION 5: OTHER INFORMATION
A summary of the Group's Quarterly Interim Management Statements relating to client segments and products on a restated basis for the last five quarters ended 31 March 2016 are as follows:
Table 31
Operating income by client segment | Restated | Restated | |||||
| Q1 2016 | FY 2015 | Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | |
| $million | $million | $million | $million | $million | $million | |
Corporate & Institutional Banking | 1,584 | 7,181 | 1,513 | 1,725 | 1,939 | 2,004 | |
Commercial Banking | 318 | 1,605 | 309 | 377 | 386 | 533 | |
Private Banking | 115 | 534 | 117 | 127 | 148 | 142 | |
Retail Banking | 1,151 | 5,107 | 1,166 | 1,199 | 1,340 | 1,402 | |
Central & Other Items | 177 | 1,012 | 157 | 254 | 261 | 340 | |
Total operating income | 3,345 | 15,439 | 3,262 | 3,682 | 4,074 | 4,421 | |
Table 32
Operating income by product | Restated | Restated | |||||
| Q1 2016 | FY 2015 | Q4 2015 | Q3 2015 | Q2 2015 | Q1 2015 | |
| $million | $million | $million | $million | $million | $million | |
Transaction Banking | 716 | 3,250 | 733 | 800 | 859 | 858 | |
Trade | 305 | 1,481 | 314 | 363 | 392 | 412 | |
Cash Management and Custody | 411 | 1,769 | 419 | 437 | 467 | 446 | |
Financial Markets | 697 | 2,921 | 582 | 622 | 746 | 971 | |
Foreign Exchange | 365 | 1,401 | 281 | 361 | 311 | 448 | |
Rates | 169 | 758 | 106 | 180 | 200 | 272 | |
Commodities | 44 | 259 | 50 | 61 | 49 | 99 | |
Credit and Capital Markets | 75 | 365 | 81 | 72 | 121 | 91 | |
Other Financial Markets | 44 | 138 | 64 | (52) | 65 | 61 | |
Corporate Finance | 470 | 1,837 | 459 | 517 | 392 | 469 | |
Wealth Management | 349 | 1,633 | 364 | 375 | 467 | 427 | |
Retail Products | 915 | 3,970 | 915 | 952 | 1,022 | 1,081 | |
CCPL and other unsecured lending | 403 | 1,909 | 417 | 443 | 497 | 552 | |
Deposits | 301 | 1,185 | 283 | 291 | 310 | 301 | |
Mortgage and Auto | 193 | 798 | 197 | 199 | 195 | 207 | |
Other Retail Products | 18 | 78 | 18 | 19 | 20 | 21 | |
Asset and Liability Management | 105 | 371 | 45 | 78 | 87 | 161 | |
Lending and Portfolio Management | 150 | 720 | 134 | 180 | 199 | 207 | |
Principal Finance | (130) | 54 | (88) | (17) | 129 | 30 | |
Other | 73 | 683 | 118 | 175 | 173 | 217 | |
Total operating income | 3,345 | 15,439 | 3,262 | 3,682 | 4,074 | 4,421 | |
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