HSBC 2003 Annual Report Download - page 109

107
Year ended 31 December 2002
North America
Personal
Financial
Services
US$m
Commercial
Banking
US$m
Corporate,
Investment
Banking &
Markets
US$m
Private
Banking
US$m
Other
US$m
Inter-
segment
elimination
US$m
Total
US$m
Net interest income ........................ 1,352 844 539 117 (120) – 2,732
Dividend income ............................. – – 24 – – – 24
Net fees and commissions ............... 437 222 268 61 (4) – 984
Dealing profits ................................. (63) 18 204 9 (7) – 161
Other income ................................... 126 61 61 78 29 (22) 333
Other operating income ................... 500 301 557 148 18 (22) 1,502
Operating income .......................... 1,852 1,145 1,096 265 (102) (22) 4,234
Operating expenses excluding
goodwill amortisation1 ................. (1,172) (567) (649) (206) (103) 22 (2,675)
Operating profit/(loss) before
provisions1,5 ................................. 680 578 447 59 (205) – 1,559
Provisions for bad and doubtful
debts ............................................. (76) (150) (66) (2) (6) – (300)
Provisions for contingent liabilities
and commitments ......................... – 2 2 – (1) – 3
Amounts written off fixed asset
investments .................................. – – (9) – – – (9)
Operating profit/(loss)1,5 ................ 604 430 374 57 (212) – 1,253
Share of operating loss in joint
ventures2 ....................................... (1) – – (1) – – (2)
Share of operating profit in
associates2..................................... 2 – – – 6 – 8
Gains/(losses) on disposal of
investments and tangible
fixed assets.................................... – 5 120 1 (1) – 125
Profit/(loss) on ordinary activities
before ta
x
3,5 ................................. 605 435 494 57 (207) – 1,384
%%%%% %
Share of HSBC’ s pre-tax profits3,5 ... 5.8 4.1 4.7 0.5 (1.9
)
13.2
Cost:income ratio1,5 ......................... 63.3 49.5 59.2 77.7 (101.0
)
63.2
US$m US$m US$m US$m US$m US$m
Selected balance sheet data4
Loans and advances to customers
(net) .............................................. 37,922 25,361 12,604 1,701 1 77,589
Total assets ...................................... 46,777 29,166 63,161 2,707 221 142,032
Customer accounts .......................... 46,002 17,717 19,396 6,969 53 90,137
The following assets and liabilities
were also significant to Corporate,
Investment Banking and Markets:
Loans and advances to
banks (net) ................................ 9,948
Debt securities, treasury bills and
other eligible bills ...................... 34,926
Deposits by banks ........................ 9,545
Goodwill amortisation:
1excluded from (1) above .............. 55 32 34 25 – 146
2excluded from (2) above .............. ––––– –
3excluded from (3) above .............. 55 32 34 25 – 146
4Third party only.
5In 2003, North America implemented a revised funds transfer pricing system to transfer interest rate risk from the business units to Corporate, Investment
Banking and Markets. The figures for 2002 have been restated to reflect the impact of transfer pricing had it been in place on a similar basis. The effect on
the results for 2001 is immaterial.