HSBC 2003 Annual Report Download - page 64

HSBC HOLDINGS PLC
Financial Review (continued)
62
Commercial Banking and Corporate, Investment Banking and Markets
Profit/(loss) excluding goodwill amortisation
Commercial Banking
Corporate, Investment Banking
and Markets
Year ended 31 December Year ended 31 December
2003 2002 2001 2003 2002 2001
US$m US$m US$m US$m US$m US$m
Net interest income ................................ 4,196 3,835 3,821 3,899 3,700 3,419
Dividend income ..................................... 367 161 230 138
Net fees and commissions ....................... 2,256 1,934 1,751 2,315 2,164 2,140
Dealing profits ......................................... 118 107 103 1,764 1,008 1,411
Other income ........................................... 597 463 422 810 610 568
Other operating income ........................... 2,974 2,510 2,283 5,050 4,012 4,257
Operating income .................................. 7,170 6,345 6,104 8,949 7,712 7,676
Operating expenses excluding goodwill
amortisation1 ......................................... (3,778
)
(3,153
)
(3,116
)
(4,378
)
(3,899
)
(3,920
)
Operating profit before provisions1,8 .... 3,392 3,192 2,988 4,571 3,813 3,756
Provisions for bad and doubtful debts ..... (274
)
(269
)
(662
)
(297
)
(184
)
(34
)
Provisions for contingent liabilities and
commitments ........................................ 14 19 16 (53
)
12 (14
)
Amounts written off fixed asset
investments ........................................... –3(1
)
(91
)
(109
)
(72
)
Operating profit1,8 ................................. 3,132 2,945 2,341 4,130 3,532 3,636
Share of operating profit in joint
ventures2 ............................................... –36 8210
Share of operating profit in associates2..... 20 15 28 80 45 33
Gains on disposal of investments and
tangible fixed assets .............................. 651 10 225 317 354
Profit on ordinary activities before
tax3,8 ..................................................... 3,158 3,014 2,385 4,443 3,896 4,033
By geographic region:
Europe ..................................................... 1,303 1,344 986 1,623 1,438 1,438
Hong Kong .............................................. 711 733 726 1,275 1,226 1,244
Rest of Asia-Pacific ................................. 450 423 277 732 706 725
North America ......................................... 595 435 410 837 494 441
South America ......................................... 99 79 (14
)
(24
)
32 185
Profit on ordinary activities before
tax3,8 ........................................................ 3,158 3,014 2,385 4,443 3,896 4,033
%%% %%%
Share of HSBC’ s pre-tax profits3,8 ........... 21.9 28.7 27.1 30.9 37.1 45.8
Cost:income ratio1,8 ................................. 52.7 49.7 51.0 48.9 50.6 51.1
US$m US$m US$m US$m US$m US$m
Selected balance sheet data6
Loans and advances to customers (net) ... 103,495 90,562 81,999 115,092 101,770 99,260
Total assets7 ............................................. 128,093 113,525 101,002 462,998 394,542 374,282
Customer accounts .................................. 111,515 92,884 81,038 119,335 95,351 88,618
The following assets and liabilities were
significant to Corporate, Investment
Banking and Markets:
Loans and advances to banks (net) ....... 101,277 80,870 83,312
Debt securities, treasury bills and
other eligible bills .............................. 186,139 162,583 155,330
Deposits by banks ................................. 65,882 48,895 49,785
Goodwill amortisation:
1excluded
f
rom
(
1
)
above....................... 263 168 157 272 236 204
2excluded
f
rom
(
2
)
above....................... ––2 13586
3excluded
f
rom
(
3
)
above....................... 263 168 159 407 244 210
For other footnotes, see page 65.