HSBC 2008 Annual Report Download - page 100

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Geographical regions > Europe > Profit/(loss) before tax by customer group // Hong Kong
98
Analysis by customer group and global business (continued)
Profit/(loss) before tax
2006
Europe
Personal
Financial
Services
US$m
Commercial
Banking
US$m
Global
Banking &
Markets
US$m
Private
Banking
US$m
Other
US$m
Inter-
segment
elimination21
US$m
Total
US$m
Net interest income ..................... 5,653 2,923 1,222 675 14 (2,198) 8,289
Net fee income ............................ 2,533 1,707 1,673 869 326 – 7,108
Trading income/(expense)
excluding net interest income 119 27 2,636 99 (39) – 2,842
Net interest income/(expense)
on trading activities ................ (6) 15 (523) 2 1 2,198 1,687
Net trading income/(expense)16 .. 113 42 2,113 101 (38) 2,198 4,529
Changes in fair value of long-
term debt issued and
related derivatives .................. – – – – 28 – 28
Net income/(expense) from
other financial instruments
designated at fair value ........... 80 27 11 – (2) – 116
Net income/(expense) from
financial instruments
designated at fair value ........... 80 27 11 – 26 – 144
Gains less losses from financial
investments ............................. 37 22 413 149 3 – 624
Dividend income ......................... 2 3 171 5 2 – 183
Net earned insurance premiums . 979 110 – – 209 – 1,298
Other operating income .............. 128 103 957 13 256 (29) 1,428
Total operating income ............... 9,525 4,937 6,560 1,812 798 (29) 23,603
Net insurance claims17 ................ (331) (19) – – (181) – (531)
Net operating income5 ................ 9,194 4,918 6,560 1,812 617 (29) 23,072
Loan impairment (charges)/
recoveries and other credit
risk provisions ........................ (1,838) (386) 64 2 3 – (2,155)
Net operating income ................. 7,356 4,532 6,624 1,814 620 (29) 20,917
Total operating expenses ............ (5,447) (2,298) (4,224) (1,010) (921) 29 (13,871)
Operating profit/(loss) ................ 1,909 2,234 2,400 804 (301) – 7,046
Share of profit/(loss) in
associates and joint ventures .. – – (96) 1 23 – (72)
Profit/(loss) before tax ................ 1,909 2,234 2,304 805 (278) – 6,974
% % % % % %
Share of HSBC’s profit
before tax ................................ 8.6 10.1 10.4 3.6 (1.2) 31.5
Cost efficiency ratio .................... 59.2 46.7 64.4 55.7 149.3 60.1
Balance sheet data15
US$m US$m US$m US$m US$m US$m
Loans and advances to
customers (net) ....................... 147,507 81,430 140,277 23,283 2 392,499
Total assets .................................. 227,609 111,510 526,468 68,380 85,183 (152,118) 867,032
Customer accounts ...................... 152,411 80,312 139,416 47,223 3 419,365
For footnotes, see page 143.