HSBC 2007 Annual Report Download - page 166

HSBC HOLDINGS PLC
Report of the Directors: Financial Review (continued)
Other financial information > Average balance sheet
164
Other financial information
Average balance sheet and net interest
income
Average balances and related interest are shown for
the domestic operations of HSBC’s principal
commercial banks by geographic region. ‘Other
operations’ comprise the operations of the principal
commercial banking and consumer finance entities
outside their domestic markets and all other banking
operations, including investment banking balances
and transactions.
Average balances are based on daily averages
for the principal areas of HSBC’s banking activities
with monthly or less frequent averages used
elsewhere.
Balances and transactions with fellow
subsidiaries are reported gross in the principal
commercial banking and consumer finance entities
within ‘Other interest-earning assets’ and ‘Other
interest-bearing liabilities’ as appropriate and the
elimination entries are included within ‘Other
operations’ in those two categories.
Net interest margin numbers are calculated
by dividing net interest income as reported in the
income statement by the average interest-earning
assets from which interest income is reported
within the ‘Net interest income’ line of the income
statement. Interest income and interest expense
arising from trading assets and liabilities and the
funding thereof is included within ‘Net trading
income’ in the income statement.
Assets
Year ended 31 December
2007 2006 2005
Average
balance
Interest
income Yield
Average
balance
Interest
income Yield
Average
balance
Interest
income Yield
US$m US$m % US$m US$m % US$m US$m %
Summary
Total interest-earning assets (itemised
below) ...................................................... 1,296,701 92,359 7.12 1,113,404 75,879 6.82
999,421 60,094 6.01
Trading assets1 ............................................. 374,973 17,562 4.68 288,605 12,445 4.31 292,404 7,232 2.47
Financial assets designated at fair value2 .... 14,899 813 5.46 7,681 290 3.78 15,247 405 2.66
Impairment provisions ................................. (15,309) (11,864) (12,469)
Non-interest-earning assets ......................... 440,686 291,741 207,337
Total assets and interest income .................. 2,111,950 110,734 5.24 1,689,567 88,614 5.24
1,501,940 67,731 4.51
Short-term funds and loans and advances
to banks
Europe HSBC Bank ..................... 49,910 2,592 5.19 33,856 1,536 4.54 21,875 774 3.54
HSBC Private Banking
Holdings (Suisse) ........ 5,295 229 4.32 4,956 190 3.83 3,606 113 3.13
HSBC France .................. 31,591 1,294 4.10 20,197 690 3.42 16,829 387 2.30
Hong Kong Hang Seng Bank ............. 13,054 609 4.67 10,360 483 4.66 8,061 288 3.57
The Hongkong and
Shanghai Banking
Corporation ................. 50,210 2,352 4.68 38,802 1,645 4.24 36,904 1,058 2.87
Rest of
Asia-Pacific
The Hongkong and
Shanghai Banking
Corporation ................. 19,286 810 4.20 13,388 520 3.88 11,667 351 3.01
HSBC Bank Malaysia ..... 2,861 103 3.60 2,492 87 3.49 1,767 49 2.77
HSBC Bank Middle East . 6,328 324 5.12 4,279 208 4.86 3,262 111 3.40
North America HSBC Bank USA ............ 9,393 477 5.08 8,422 465 5.52 3,579 151 4.22
HSBC Bank Canada ........ 3,810 174 4.57 3,167 138 4.36 2,115 62 2.93
Latin America HSBC Mexico ................. 3,555 239 6.72 3,395 227 6.69 2,994 228 7.62
Brazilian operations3 ....... 5,790 645 11.14 4,129 572 13.85 3,305 565 17.10
HSBC Bank Panama ....... 897 33 3.68 130 9 6.92 69 3 4.35
HSBC Bank Argentina .... 304 16 5.26 196 8 4.08 264 7 2.65
Other operations .......................................... 19,087 898 4.70 16,686 618 3.70 14,954 453 3.03
221,371 10,795 4.88 164,455 7,396 4.50 131,251 4,600 3.50
For footnotes, see page 173.