HSBC 2007 Annual Report Download - page 72

HSBC HOLDINGS PLC
Report of the Directors: Business Review (continued)
Hong Kong > Profit/(loss) before tax by customer group
70
Profit/(loss) before tax and balance sheet data by customer group and global business (continued)
Year ended 31 December 2006
Hong Kong
Personal
Financial
Services
US$m
Commercial
Banking
US$m
Global
Banking &
Markets
US$m
Private
Banking
US$m
Other
US$m
Inter-
segment
elimination14
US$m
Total
US$m
Net interest income/(expense) .... 2,882 1,344 553 76 (646) 476 4,685
Net fee income/(expense) ........... 977 454 534 123 (32) – 2,056
Trading income excluding net
interest income ....................... 84 57 573 176 34 – 924
Net interest income on trading
activities .................................. 4 – 88 – 77 (476) (307)
Net trading income5..................... 88 57 661 176 111 (476) 617
Net income/(expense) from
financial instruments
designated at fair value ........... 373 (53) 5 1 (66) – 260
Gains less losses from
financial investments .............. 14 – (1) 9 140 – 162
Dividend income ......................... 1 1 2 – 57 – 61
Net earned insurance premiums . 2,519 95 14 – – – 2,628
Other operating income .............. 202 33 81 13 781 (276) 834
Total operating income ............... 7,056 1,931 1,849 398 345 (276) 11,303
Net insurance claims6 ................. (2,638) (50) (11) – – – (2,699)
Net operating income4 ................ 4,418 1,881 1,838 398 345 (276) 8,604
Loan impairment (charges)/
recoveries and other credit
risk provisions ........................ (119) (69) 27 – (11) – (172)
Net operating income ................. 4,299 1,812 1,865 398 334 (276) 8,432
Total operating expenses ............ (1,422) (491) (911) (197) (524) 276 (3,269)
Operating profit/(loss) ................ 2,877 1,321 954 201 (190) – 5,163
Share of profit in associates
and joint ventures ................... 3 – 1 – 15 – 19
Profit/(loss) before tax ................ 2,880 1,321 955 201 (175) – 5,182
% % % % % %
Share of HSBC’s profit
before tax ................................ 13.0 6.0 4.3 0.9 (0.7) 23.5
Cost efficiency ratio ................... 32.2 26.1 49.6 49.5 151.9 38.0
US$m US$m US$m US$m US$m US$m
Balance sheet data7
Loans and advances to
customers (net) ....................... 35,445 23,520 20,270 3,081 1,966 84,282
Total assets ................................. 57,348 29,786 153,200 10,462 21,632 272,428
Customer accounts ...................... 118,201 41,493 24,530 11,991 476 196,691
The following assets and
liabilities were significant to
Global Banking and Markets:
– loans and advances to
banks (net) .......................... 45,023
– trading assets, financial
instruments designated at
fair value, and financial
investments ......................... 80,036
– deposits by banks ............... 4,363
For footnotes, see page 130.