HSBC 2009 Annual Report Download - page 417

415
Year ended 31 December 2007
Europe
Hong
Kong
Rest of
Asia-
Pacific1
Middle
East1
North
America
Latin
America
Intra-
HSBC
items Total
US$m US$m US$m US$m US$m US$m US$m US$m
Interest income ............................ 33,144 12,580 8,002 2,156 30,183 9,471 (3,177) 92,359
Interest expense .......................... (25,398) (7,097) (4,953) (1,062) (15,336) (3,895) 3,177 (54,564)
Net interest income ..................... 7,746 5,483 3,049 1,094 14,847 5,576 – 37,795
Fee income .................................. 10,973 3,860 2,201 508 6,733 2,647 (585) 26,337
Fee expense ................................. (2,542) (498) (426) (37) (923) (494) 585 (4,335)
Net fee income ............................ 8,431 3,362 1,775 471 5,810 2,153 – 22,002
Trading income/(expense)
excluding net interest income . 3,003 1,270 946 256 (1,289) 272 – 4,458
Net interest income/(expense)
on trading activities ................ 3,940 (28) 400 41 747 276 – 5,376
Net trading income/(expense) ..... 6,943 1,242 1,346 297 (542) 548 – 9,834
Changes in fair value of long-
term debt issued and related
derivatives ............................... 1,059 2 1 – 1,750 – – 2,812
Net income from other financial
instruments designated at fair
value ........................................ 167 674 110 – – 320 – 1,271
Net income from financial
instruments designated at
fair value ................................. 1,226 676 111 – 1,750 320 – 4,083
Gains less losses from financial
investments ............................. 1,326 94 36 2 245 253 – 1,956
Gains arising from dilution of
interests in associates .............. – – 1,081 – – 11 – 1,092
Dividend income ......................... 171 31 6 2 105 9 – 324
Net earned insurance premiums .. 4,010 2,797 226 – 449 1,594 – 9,076
Other operating income .............. 1,193 845 781 17 360 228 (1,985) 1,439
Total operating income ............... 31,046 14,530 8,411 1,883 23,024 10,692 (1,985) 87,601
Net insurance claims incurred
and movement in liabilities to
policyholders .......................... (3,479) (3,208) (253) – (241) (1,427) – (8,608)
Net operating income before
loan impairment charges
and other credit risk provisions 27,567 11,322 8,158 1,883 22,783 9,265 (1,985) 78,993
Loan impairment charges and
other credit risk provisions ..... (2,542) (231) (561) (55) (12,156) (1,697) – (17,242)
Net operating income .................. 25,025 11,091 7,597 1,828 10,627 7,568 (1,985) 61,751
Employee compensation and
benefits ................................... (9,022) (2,124) (2,084) (447) (5,384) (2,273) – (21,334)
General and administrative
expenses .................................. (6,429) (1,386) (1,741) (300) (4,653) (2,770) 1,985 (15,294)
Depreciation and impairment of
property, plant and equipment (848) (180) (139) (20) (317) (210) – (1,714)
Amortisation and impairment of
intangible assets ...................... (226) (90) (27) (6) (202) (149) – (700)
Total operating expenses ............ (16,525) (3,780) (3,991) (773) (10,556) (5,402) 1,985 (39,042)
Operating profit .......................... 8,500 7,311 3,606 1,055 71 2,166 – 22,709
Share of profit in associates
and joint ventures ................... 95 28 1,096 252 20 12 – 1,503
Profit before tax .......................... 8,595 7,339 4,702 1,307 91 2,178 – 24,212
Tax income/(expense) ................. (1,505) (1,206) (721) (178) 332 (479) – (3,757)
Profit for the year ........................ 7,090 6,133 3,981 1,129 423 1,699 – 20,455
For footnote, see page 417.