HSBC 2004 Annual Report Download - page 49

47
Personal Financial Services
Profit excluding goodwill amortisation Business highlights
Year ended 31 December
2004 2003 2002
US$m US$m US$m
Net interest income ............ 10,290 8,654 7,429
Dividend income .................. 866
Net fees and commissions .... 4,568 3,623 2,979
Dealing profits ..................... 192 133 50
Other income9 ...................... 1,011 834 773
Other operating income9 ...... 5,779 4,596 3,808
Operating income9 ............. 16,069 13,250 11,237
Operating expenses excluding
goodwill amortisation1,9 ... (9,601) (8,232) (6,958)
Operating profit before
provisions1....................... 6,468 5,018 4,279
Provisions for bad and
doubtful debts .................. (1,155) (1,058) (857)
Provisions for contingent
liabilities and commitments (80) (19) (42)
Amounts written off fixed
asset investments ............. (2) (18) (2)
Operating profit1 ................ 5,231 3,923 3,378
Share of operating profit/(loss)
in joint ventures ............... –11 (23)
Share of operating profit
in associates2..................... 75 47 17
Gains on disposal of
investments and tangible
fixed assets ...................... 71 27 19
Profit on ordinary activities
before tax3 ....................... 5,377 4,008 3,391
By geographical region:
Europe .................................. 1,719 1,267 987
Hong Kong ........................... 2,097 1,740 1,705
Rest of Asia-Pacific ............. 350 158 127
North America ..................... 1,164 870 605
South America ..................... 47 (27) (33)
Profit on ordinary activities
before tax3........................ 5,377 4,008 3,391
%%%
Share of HSBC’ s pre-tax
profits3 ............................. 27.7 27.8 32.3
Cost:income ratio1 ................ 59.7 62.1 61.9
US$m US$m US$m
Selected balance sheet data7
Loans and advances to
customers (net) ................ 233,829 173,613 143,696
Total assets8,9 ........................ 274,995 206,694 171,478
Customer accounts ............... 319,081 290,540 257,880
Goodwill amortisation:
1excluded from (1) above ... 356 249 186
2excluded from (2) above ... 11–
3excluded from (3) above ... 357 250 186
General
• Pre-tax profit before goodwill amortisation grew by
34 per cent to US$5,377 million. At constant
exchange rates and excluding acquisitions, profits
increased by 27 per cent.
• The one millionth HSBC Premier customer was
recruited in May, and by the end of 2004, HSBC had
recruited over 1.1 million Premier customers, an
increase of 28 per cent compared with the end of
2003. HSBC Premier was launched in Mexico,
Bermuda, Greece and Malta during the year.
• In September 2004, HSBC was voted ‘Global Bank
of the Year’ by The Banker magazine for an
unprecedented third consecutive year.
• In November 2004, HSBC was named ‘Best
Consumer Bank’ in Global Finance magazine’ s
listing of the World’ s Best Banks 2004.
• In December 2004, HSBC was named the
‘International Retail Bank of the Year 2004’ in the
Retail Banker International magazine’ s annual
award.
Europe
• In December 2004, the three millionth personal
internet banking customer was recruited in the UK.
• At First Direct, 39 per cent of HSBC’ s customers
actively used its online banking service and more
than 70 per cent of inbound contacts from its
customers were over the internet in 2004.
• Logons to the CCF.fr website in France almost
doubled to 11 million in 2004 and over one million
transactions were carried out through the site, an
increase of 30 per cent over 2003.
• During the Autoroutes Paris Rhin Rhone
privatisation, CCF organised the first ever on-line
sale of shares to personal customers in France.
• In the UK, HSBC’ s mortgage products remained
highly rated, receiving the ‘Best National Bank’
award over two, five and 10 years from What
Mortgage magazine in March 2004. In July 2004,
Mortgage Magazine named HSBC as ‘Best First
Time Buyer Lender’ . HSBC ranked first in the
‘Moneyfacts Top 35 Lenders Survey’ for the amount
of interest charged over the 12 months ended
31 December 2004 (£100,000 mortgage at the
For other footnotes, see page 59.