HSBC 2008 Annual Report Download - page 138

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Geographical regions > Latin America > Profit/(loss) before tax by customer group
136
Analysis by customer group and global business (continued)
Profit/(loss) before tax
2007
Latin America
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 ..................... 3,983 1,407 410 20 3 (247) 5,576
Net fee income ............................ 1,372 485 250 40 6 – 2,153
Trading income excluding net
interest income ....................... 67 39 164 2 – – 272
Net interest income on
trading activities ..................... 10 1 18 – – 247 276
Net trading income16 ................... 77 40 182 2 – 247 548
Changes in fair value of long-
term debt issued and
related derivatives .................. – – – – – – –
Net income from other financial
instruments designated at fair
value ....................................... 314 – 6 – – – 320
Net income from financial
instruments designated at
fair value ................................. 314 – 6 – – – 320
Gains less losses from financial
investments ............................. 120 51 82 1 (1) – 253
Gains arising from dilution of
interests in associates ............. – – – – 11 – 11
Dividend income ......................... 5 2 2 – – – 9
Net earned insurance premiums . 1,448 66 80 – – – 1,594
Other operating income .............. 145 69 31 8 12 (37) 228
Total operating income ............... 7,464 2,120 1,043 71 31 (37) 10,692
Net insurance claims17 ................ (1,330) (37) (60) – – – (1,427)
Net operating income5 ................ 6,134 2,083 983 71 31 (37) 9,265
Loan impairment (charges)/
recoveries and other credit
risk provisions ........................ (1,492) (212) 13 – (6) – (1,697)
Net operating income ................. 4,642 1,871 996 71 25 (37) 7,568
Total operating expenses ............ (3,758) (1,132) (481) (46) (22) 37 (5,402)
Operating profit .......................... 884 739 515 25 3 – 2,166
Share of profit in associates
and joint ventures ................... 9 1 2 – – – 12
Profit before tax .......................... 893 740 517 25 3 – 2,178
% % % % % %
Share of HSBC’s profit
before tax ................................ 3.7 3.1 2.1 0.1 – 9.0
Cost efficiency ratio ................... 61.3 54.3 48.9 64.8 71.0 58.3
Balance sheet data15
US$m US$m US$m US$m US$m US$m
Loans and advances to
customers (net) ....................... 21,680 16,243 9,935 65 – 47,923
Total assets ................................. 35,181 21,049 45,045 302 261 (750) 101,088
Customer accounts ...................... 30,628 15,524 13,950 1,190 – 61,292
For footnotes, see page 143.