HSBC 2010 Annual Report Download - page 302

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
13 – Segmental analysis
300
Profit/(loss) for the year (continued)
2008
Europe
Hong
Kong
Rest of
Asia-
Pacific
Middle
East
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 ............................ 35,117 9,530 9,066 2,451 25,897 11,632 (2,392) 91,301
Interest expense .......................... (25,421) (3,832) (5,129) (895) (10,679) (5,174) 2,392 (48,738)
Net interest income ..................... 9,696 5,698 3,937 1,556 15,218 6,458 – 42,563
Fee income .................................. 10,225 3,062 2,414 740 6,292 2,716 (685) 24,764
Fee expense ................................. (2,733) (482) (547) (49) (1,065) (549) 685 (4,740)
Net fee income ............................ 7,492 2,580 1,867 691 5,227 2,167 – 20,024
Trading income/(expense)
excluding net interest income . 1,691 856 1,443 380 (3,879) 356 – 847
Net interest income
on trading activities ................ 3,666 337 599 22 744 345 – 5,713
Net trading income/(expense) ..... 5,357 1,193 2,042 402 (3,135) 701 – 6,560
Changes in fair value of long-
term debt issued and related
derivatives .............................. 2,939 3 1 – 3,736 – – 6,679
Net income/(expense) from
other financial instruments
designated at fair value ........... (1,826) (1,194) (172) – 1 364 – (2,827)
Net income/(expense) from
financial instruments
designated at fair value ........... 1,113 (1,191) (171) – 3,737 364 – 3,852
Gains less losses from financial
investments ............................. 418 (309) 24 8 (120) 176 – 197
Dividend income ......................... 130 41 2 2 77 20 – 272
Net earned insurance premiums . 5,299 3,247 197 – 390 1,717 – 10,850
Gains on disposal of French
regional banks ........................ 2,445 – – – – – – 2,445
Other operating income .............. 2,096 817 1,055 9 23 300 (2,492) 1,808
Total operating income ............... 34,046 12,076 8,953 2,668 21,417 11,903 (2,492) 88,571
Net insurance claims incurred
and movement in liabilities to
policyholders .......................... (3,367) (1,922) 28 – (238) (1,390) – (6,889)
Net operating income before
loan impairment charges
and other credit risk provisions 30,679 10,154 8,981 2,668 21,179 10,513 (2,492) 81,682
Loan impairment charges and
other credit risk provisions ..... (3,754) (765) (852) (279) (16,795) (2,492) – (24,937)
Net operating income .................. 26,925 9,389 8,129 2,389 4,384 8,021 (2,492) 56,745
Employee compensation and
benefits ................................... (8,551) (2,069) (2,475) (544) (4,609) (2,544) – (20,792)
General and administrative
expenses .................................. (6,428) (1,562) (2,037) (384) (4,282) (3,059) 2,492 (15,260)
Depreciation and impairment of
property, plant and equipment (865) (209) (163) (25) (265) (223) – (1,750)
Amortisation and impairment of
intangible assets ...................... (228) (103) (29) (6) (203) (164) – (733)
Goodwill impairment .................. – – – – (10,564) – – (10,564)
Total operating expenses ............ (16,072) (3,943) (4,704) (959) (19,923) (5,990) 2,492 (49,099)
Operating profit/(loss) ................ 10,853 5,446 3,425 1,430 (15,539) 2,031 – 7,646
Share of profit in associates
and joint ventures ................... 16 15 1,297 316 11 6 – 1,661
Profit/(loss) before tax ................ 10,869 5,461 4,722 1,746 (15,528) 2,037 – 9,307
Tax income/(expense) ................. (2,199) (899) (928) (245) 1,715 (253) – (2,809)
Profit/(loss) for the year .............. 8,670 4,562 3,794 1,501 (13,813) 1,784 – 6,498