HSBC 2008 Annual Report Download - page 86

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Customer groups > Profit/(loss) before tax
84
Analysis by customer group and global business
Profit/(loss) before tax
2008
Total
Personal
Financial
Services
US$m
Commercial
Banking
US$m
Global
Banking &
Markets
US$m
Private
Banking
US$m
Other14
US$m
Inter-
segment
elimination21
US$m
Total
US$m
Net interest income/(expense) .... 29,419 9,494 8,541 1,612 (956) (5,547) 42,563
Net fee income ............................ 10,107 4,097 4,291 1,476 53 – 20,024
Trading income/(expense)
excluding net interest income 175 369 157 408 (262) – 847
Net interest income/(expense)
on trading activities ................ 79 17 324 14 (268) 5,547 5,713
Net trading income/(expense)16 .. 254 386 481 422 (530) 5,547 6,560
Changes in fair value of long-
term debt issued and related
derivatives .............................. – – – – 6,679 – 6,679
Net income/(expense) from
other financial instruments
designated at fair value ........... (2,912) (224) (438) – 747 – (2,827)
Net income/(expense) from
financial instruments
designated at fair value ........... (2,912) (224) (438) – 7,426 – 3,852
Gains less losses from
financial investments .............. 663 193 (327) 64 (396) – 197
Dividend income ......................... 90 88 76 8 10 – 272
Net earned insurance premiums . 10,083 679 105 – (17) – 10,850
Gains on disposal of French
regional banks ........................ – – – – 2,445 – 2,445
Other operating income .............. 259 939 868 49 4,261 (4,568) 1,808
Total operating income ............ 47,963 15,652 13,597 3,631 12,296 (4,568) 88,571
Net insurance claims17 ................ (6,474) (335) (79) – (1) – (6,889)
Net operating income5 .............. 41,489 15,317 13,518 3,631 12,295 (4,568) 81,682
Loan impairment charges and
other credit risk provisions ..... (21,220) (2,173) (1,471) (68) (5) – (24,937)
Net operating income ............... 20,269 13,144 12,047 3,563 12,290 (4,568) 56,745
Operating expenses (excluding
goodwill impairment) ............. (21,140) (6,581) (9,092) (2,116) (4,174) 4,568 (38,535)
Goodwill impairment .................. (10,564) – – – – – (10,564)
Operating profit/(loss) .............. (11,435) 6,563 2,955 1,447 8,116 – 7,646
Share of profit in associates
and joint ventures ................... 461 631 528 – 41 – 1,661
Profit/(loss) before tax .............. (10,974) 7,194 3,483 1,447 8,157 – 9,307
% % % %
%
%
Share of HSBC’s profit
before tax ................................ (117.9) 77.3 37.4 15.6 87.6
100.0
Cost efficiency ratio ................... 76.4 43.0 67.3 58.3
33.9
60.1
Balance sheet data15
US$m US$m US$m US$m
US$m US$m
Loans and advances to
customers (net) ....................... 401,402 203,949 287,306 37,590 2,621 932,868
Total assets ................................. 514,419 249,218 1,896,630 133,216 135,001 (401,019) 2,527,465
Customer accounts ...................... 440,338 235,879 320,386 116,683
2,041 1,115,327
For footnotes, see page 143.