HSBC 2010 Annual Report Download - page 56

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Geographical regions > Europe
54
Profit/(loss) before tax and balance sheet data – Europe
2010
Personal
Financial
Services
US$m
Commercial
Banking
US$m
Global
Banking &
Markets
US$m
Global
Private
Banking
US$m
Other
US$m
Inter-
segment
elimination56
US$m
Total
US$m
Profit/(loss) before tax
Net interest income/(expense) .... 5,536 2,774 2,936 871 (654) (213) 11,250
Net fee income ............................ 2,016 1,570 1,863 883 39 – 6,371
Trading income/(expense)
excluding net interest
income .................................... (7) 3 1,542 185 (262) – 1,461
Net interest income/(expense)
on trading activities ................ (1) 19 1,127 21 23 213 1,402
Net trading income/(expense)49 .. (8) 22 2,669 206 (239) 213 2,863
Changes in fair value of long-
term debt issued and related
derivatives .............................. – – – – (365) – (365)
Net income/(expense) from
other financial instruments
designated at fair value ........... 496 113 (23) –61 – 647
Net income/(expense) from
financial instruments
designated at fair value ........... 496 113 (23) – (304) – 282
Gains less losses from
financial investments .............. 29 – 460 (7) 4 – 486
Dividend income ......................... – 1 16 2 1 – 20
Net earned insurance premiums . 3,800 278 – – (11) – 4,067
Other operating income .............. 165 163 839 7 754 189 2,117
Total operating income/
(expense) ................................ 12,034 4,921 8,760 1,962 (410) 189 27,456
Net insurance claims57 ................ (4,364) (342) – – – – (4,706)
Net operating income/
(expense)46 ............................. 7,670 4,579 8,760 1,962 (410) 189 22,750
Loan impairment (charges)/
recoveries and other credit
risk provisions ........................ (1,217) (997) (783) (26) 3 – (3,020)
Net operating income/
(expense) ................................ 6,453 3,582 7,977 1,936 (407) 189 19,730
Total operating expenses ............ (5,166) (2,378) (5,265) (1,296) (1,151) (189) (15,445)
Operating profit/(loss) .............. 1,287 1,204 2,712 640 (1,558) – 4,285
Share of profit in associates
and joint ventures ................... 2 1 14 – – – 17
Profit/(loss) before tax .............. 1,289 1,205 2,726 640 (1,558) – 4,302
% % % %
%
%
Share of HSBC’s profit
before tax ................................ 6.8 6.3 14.3 3.4 (8.2) 22.6
Cost efficiency ratio ................... 67.4 51.9 60.1 66.1 (280.7) 67.9
Balance sheet data45
US$m US$m US$m US$m US$m US$m
Loans and advances to
customers (net) ....................... 145,063 91,744 170,375 27,629 988 435,799
Total assets ................................. 202,431 111,356 965,462 76,631 65,824 (172,177) 1,249,527
Customer accounts ...................... 168,979 96,597 169,873 56,114 – 491,563