HSBC 2006 Annual Report Download - page 105

103
Profit/(loss) before tax by customer groups and global businesses
Year ended 31 December 2006
Latin 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$m
Net interest income/(expense) .... 3,057 1,037 325 13 (2) (233) 4,197
Net fee income ............................ 1,053 387 167 23 – – 1,630
Trading income excluding net
interest income ....................... 61 21 218 1 – – 301
Net interest income/(expense)
on trading activities ................ 14 5 (16) – – 233 236
Net trading income ..................... 75 26 202 1 – 233 537
Net income/(expense) from
financial instruments
designated at fair value ........... 227 – 11 – (1) – 237
Gains less losses from financial
investments ............................. 11 1 72 – – – 84
Dividend income ......................... 5 1 - – – – 6
Net earned insurance premiums . 992 27 59 – (2) – 1,076
Other operating income .............. 74 7 10 4 14 (18) 91
Total operating income ............ 5,494 1,486 846 41 9 (18) 7,858
Net insurance claims1 ................. (957) (16) (51) – 1 – (1,023)
Net operating income before
loan impairment charges
and other credit risk
provisions .............................. 4,537 1,470 795 41 10 (18) 6,835
Loan impairment (charges)/
recoveries and other credit
risk provisions ........................ (764) (197) 26 – (3) – (938)
Net operating income ............... 3,773 1,273 821 41 7 (18) 5,897
Total operating expenses ............ (2,977) (822) (346) (27) (12) 18 (4,166)
Operating profit/(loss) .............. 796 451 475 14 (5) – 1,731
Share of profit in associates
and joint ventures ................... 4 – – – – – 4
Profit/(loss) before tax .............. 800 451 475 14 (5) – 1,735
% % % % % %
Share of HSBC’s profit
before tax ................................ 3.6 2.0 2.2 0.1 – 7.9
Cost efficiency ratio ................... 65.6 55.9 43.5 65.9 120.0 61.0
US$m US$m US$m US$m US$m US$m
Selected balance sheet data2
Loans and advances to
customers (net) ....................... 16,165 11,463 8,147 16 – 35,791
Total assets ................................. 28,053 16,244 36,333 90 51 80,771
Customer accounts ...................... 25,200 13,754 11,685 222 – 50,861
The following assets and
liabilities were significant
to Corporate, Investment
Banking and Markets:
– loans and advances to
banks (net) .......................... 9,704
– trading assets, financial
instruments designated at
fair value, and financial
investments ......................... 15,882
– deposits by banks ............... 3,115