HSBC 2008 Annual Report Download - page 24

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Reconciliation of reported and underlying profit before tax / Financial summary
22
Reconciliation of reported and underlying profit before tax
2008 compared with 2007
HSBC
2007
as
reported
US$m
2007
acquisitions,
disposals
& dilution
gains1
US$m
Currency
translation2
US$m
2007
at 2008
exchange
rates3
US$m
2008
acquisitions
and
disposals1
US$m
Under-
lying
change
US$m
2008
as
reported
US$m
Re-
ported
change
%
Under-
lying
change
%
Net interest income ......... 37,795 (389) (4) 37,402 250 4,911 42,563 13 13
Net fee income ................ 22,002 (239) (152) 21,611 18
(1,605) 20,024 (9) (7)
Other income4 ................. 19,196 (1,232) (329) 17,635 3,148 (1,688) 19,095 (1) (10)
Net operating income5 .. 78,993 (1,860) (485) 76,648 3,416 1,618 81,682 3 2
Loan impairment charges
and other credit risk
provisions ................... (17,242) 31 113 (17,098) (6) (7,833) (24,937) (45) (46)
Net operating income .... 61,751 (1,829) (372) 59,550 3,410 (6,215) 56,745 (8) (10)
Operating expenses
(excluding goodwill
impairment) ................ (39,042) 514 301 (38,227) (198) (110) (38,535) 1 –
Goodwill impairment ...... – – – – – (10,564) (10,564) n/a n/a
Operating profit ............ 22,709 (1,315) (71) 21,323 3,212 (16,889) 7,646 (66) (79)
Income from associates .. 1,503 (12) 107 1,598 – 63 1,661 11 4
Profit before tax ............ 24,212 (1,327) 36 22,921 3,212 (16,826) 9,307 (62) (73)
2007 compared with 2006
HSBC
2006
as
reported
US$m
2006
acquisitions
and
disposals1
US$m
Currency
translation2
US$m
2006
at 2007
exchange
rates6
US$m
2007
acquisitions,
disposals
& dilution
gains1
US$m
Under-
lying
change
US$m
2007
as
reported
US$m
Re-
ported
change
%
Under-
lying
change
%
Net interest income ......... 34,486 (3) 1,086 35,569 794 1,432 37,795 10 4
Net fee income ................ 17,182 53 750 17,985 (47) 4,064 22,002 28 23
Other income4 ................. 13,698 (53) 733 14,378 1,113 3,705 19,196 40 26
Net operating income5 .... 65,366 (3) 2,569 67,932 1,860 9,201 78,993 21 14
Loan impairment charges
and other credit risk
provisions ................... (10,573) – (243) (10,816) (133) (6,293) (17,242) (63) (58)
Net operating income ...... 54,793 (3) 2,326 57,116 1,727 2,908 61,751 13 5
Operating expenses ......... (33,553) 2 (1,536) (35,087) (397) (3,558) (39,042) (16) (10)
Operating profit .............. 21,240 (1) 790 22,029 1,330 (650) 22,709 7 (3)
Income from associates .. 846 – 20 866 (41) 678 1,503 78 78
Profit before tax .............. 22,086 (1) 810 22,895 1,289 28 24,212 10 –
For footnotes, see page 143.