HSBC 2009 Annual Report Download - page 24

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Reconciliation of profit / Financial summary > Income statement
22
Reconciliation of reported and underlying profit before tax
2009 compared with 2008
HSBC
2008
as
reported
US$m
2008
adjust-
ments10
US$m
Currency
translation11
US$m
2008
at 2009
exchange
rates12
US$m
2009
adjust-
ments10
US$m
Under-
lying
change
US$m
2009
as
reported
US$m
Re-
ported
change13
%
Under-
lying
change13
%
Net interest income ......... 42,563 (65) (2,062) 40,436 53 241 40,730 (4) 1
Net fee income ................ 20,024 (58) (1,315) 18,651 6
(993) 17,664 (12) (5)
Changes in fair value14 .... 6,570 (6,570) – – (6,533) – (6,533) (199)
Gains on disposal of
French regional banks 2,445
(2,445) – – – – – (100)
Other income15 ................ 10,080 (680) (1,597) 7,803 298 6,219 14,320 42 80
Net operating income16 . 81,682 (9,818) (4,974) 66,890 (6,176) 5,467 66,181 (19) 8
Loan impairment charges
and other credit risk
provisions ................... (24,937) 6 709 (24,222) – (2,266) (26,488) (6) (9)
Net operating income .... 56,745 (9,812) (4,265) 42,668 (6,176) 3,201 39,693 (30) 8
Operating expenses
(excluding goodwill
impairment) ................ (38,535) 68 2,655 (35,812) (31) 1,448 (34,395) 11 4
Goodwill impairment ...... (10,564) – – (10,564) – 10,564 – 100 100
Operating profit ............ 7,646 (9,744) (1,610) (3,708) (6,207) 15,213 5,298 (31) 410
Income from associates .. 1,661 – 25 1,686 – 95 1,781 7 6
Profit before tax ............ 9,307 (9,744) (1,585) (2,022) (6,207) 15,308 7,079 (24) 757
2008 compared with 2007
HSBC
2007
as
reported
US$m
2007
adjustments
& dilution
gains10
US$m
Currency
translation11
US$m
2007
at 2008
exchange
rates17
US$m
2008
adjust-
ments10
US$m
Under-
lying
change
US$m
2008
as
reported
US$m
Re-
ported
change13
%
Under-
lying
change13
%
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)
Changes in fair value14 .... 3,055 (3,055) – – 6,570 – 6,570 115
Gains on disposal of
French regional banks – – – – 2,445 – 2,445
Other income15 ................ 16,141 (1,232) (269) 14,640 703 (5,263) 10,080 (38) (36)
Net operating income16 ... 78,993 (4,915) (425) 73,653 9,986 (1,957) 81,682 3 (3)
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 (4,884) (312) 56,555 9,980 (9,790) 56,745 (8) (17)
Operating expenses
(excluding goodwill
impairment) ................ (39,042) 514 301 (38,227) (198) (110) (38,535) 1 –
Goodwill impairment ...... – – – – – (10,564) (10,564)
Operating profit .............. 22,709 (4,370) (11) 18,328 9,782 (20,464) 7,646 (66) (112)
Income from associates .. 1,503 (12) 107 1,598 – 63 1,661 11 4
Profit before tax .............. 24,212 (4,382) 96 19,926 9,782 (20,401) 9,307 (62) (102)
For footnotes, see page 149.