HSBC 2012 Annual Report Download - page 110

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Geographical regions > North America
108
Profit/(loss) before tax and balance sheet data – North America
2012
Retail
Banking
and Wealth
Management
US$m
Commercial
Banking89
US$m
Global
Banking
and
Markets
US$m
Global
Private
Banking
US$m
Other
US$m
Inter-
segment
elimination85
US$m
Total
US$m
Profit/(loss) before tax
Net interest income ..................... 5,481 1,443 948 192 118 (65) 8,117
Net fee income ............................ 923 562 716 124 188 – 2,513
Trading income/(expense)
excluding net interest income (216) 47 466 20 16 – 333
Net interest income on trading
activities .................................. 17 1 91 –– 65 174
Net trading income/(expense)78 .. (199) 48 557 20 16 65 507
Changes in fair value of long-
term debt issued and related
derivatives .............................. – – – – (1,219) – (1,219)
Net income from other financial
instruments designated at
fair value ................................. – – – – – – –
Net expense from financial
instruments designated at
fair value ................................. – – – – (1,219) – (1,219)
Gains less losses from
financial investments .............. 27 – 223 (7) 8 – 251
Dividend income ......................... 15 11 32 3 – – 61
Net earned insurance premiums . 193 – – – – – 193
Gains on disposal of US branch
network and cards business .... 3,735 277 – – – – 4,012
Other operating income .............. 173 149 191 5 1,787 (1,899) 406
Total operating income ............ 10,348 2,490 2,667 337 898 (1,899) 14,841
Net insurance claims86 ................ (148) – – – – – (148)
Net operating income21 ............. 10,200 2,490 2,667 337 898 (1,899) 14,693
Loan impairment (charges)/
recoveries and other
credit risk provisions .............. (3,241) (148) (71) 3 – – (3,457)
Net operating income ............... 6,959 2,342 2,596 340 898 (1,899) 11,236
Total operating expenses ............ (3,966) (1,144) (1,639) (268) (3,822) 1,899 (8,940)
Operating profit/(loss) .............. 2,993 1,198 957 72 (2,924) – 2,296
Share of profit in associates
and joint ventures ................... 2 1 – – – – 3
Profit/(loss) before tax .............. 2,995 1,199 957 72 (2,924) – 2,299
% % % % % %
Share of HSBC’s profit
before tax ................................ 14.5 5.8 4.6 0.3 (14.2) 11.1
Cost efficiency ratio ................... 38.9 45.9 61.5 79.5 425.6 60.8
Balance sheet data74
US$m US$m US$m US$m US$m US$m
Loans and advances to customers
(net) reported in:
– loans and advances to
customers (net) .................... 76,414 36,387 22,498 5,457 – 140,756
– assets held for sale
(disposal groups) ................. 3,899 – – – – 3,899
Total assets ................................. 101,103 48,604 345,040 8,828 12,659 (25,987) 490,247
Customer accounts reported in:
– customer accounts ............... 57,758 48,080 29,595 13,553 51 149,037