HSBC 2008 Annual Report Download - page 76

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Customer groups > Commercial Banking / Global Banking and Markets
74
Reconciliation of reported and underlying profit before tax
2008 compared with 2007
Commercial Banking
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$m
Re-
ported
change
%
Under-
lying
change
%
Net interest income .......... 9,055 (166) (77) 8,812 41 641 9,494 5 7
Net fee income ................. 3,972 (113) (76) 3,783 27 287 4,097 3 8
Other income4 .................. 923 (7) (28) 888 525 313 1,726 87 35
Net operating income5 ... 13,950 (286) (181) 13,483 593 1,241 15,317 10 9
Loan impairment charges
and other credit risk
provisions .................... (1,007) 3 36 (968) (3) (1,202) (2,173) (116) (124)
Net operating income .... 12,943 (283) (145) 12,515 590 39 13,144 2 –
Operating expenses .......... (6,252) 180 47 (6,025) (106) (450) (6,581) (5) (7)
Operating profit ............. 6,691 (103) (98) 6,490 484 (411) 6,563 (2) (6)
Income from associates ... 454 – 26 480 – 151 631 39 31
Profit before tax ............. 7,145 (103) (72) 6,970 484 (260) 7,194 1 (4)
2007 compared with 2006
Commercial Banking
2006
as
reported
US$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 .......... 7,514 – 382 7,896 114 1,045 9,055 21 13
Net fee income ................. 3,207 – 189 3,396 17 559 3,972 24 16
Other income4 .................. 664 – 27 691 48 184 923 39 27
Net operating income5 ..... 11,385 – 598 11,983 179 1,788 13,950 23 15
Loan impairment charges
and other credit risk
provisions .................... (697) – (47) (744) (61) (202) (1,007) (44) (27)
Net operating income ...... 10,688 – 551 11,239 118 1,586 12,943 21 14
Operating expenses .......... (4,979) – (291) (5,270) (73) (909) (6,252) (26) (17)
Operating profit ............... 5,709 – 260 5,969 45 677 6,691 17 11
Income from associates ... 288 – 9 297 1 156 454 58 53
Profit before tax ............... 5,997 – 269 6,266 46 833 7,145 19 13
For footnotes, see page 143.