HSBC 2012 Annual Report Download - page 374

HSBC HOLDINGS PLC
Financial Statements (continued)
Consolidated income statement / Consolidated statement of comprehensive income
372
Consolidated income statement for the year ended 31 December 2012
2012 2011 2010
Notes US$m US$m US$m
Interest income ................................................................................................ 56,702 63,005 58,345
Interest expense ............................................................................................... (19,030) (22,343) (18,904)
Net interest income .......................................................................................... 37,672 40,662 39,441
Fee income ....................................................................................................... 20,149 21,497 21,117
Fee expense ...................................................................................................... (3,719) (4,337) (3,762)
Net fee income ................................................................................................. 16,430 17,160 17,355
Trading income excluding net interest income ............................................... 4,408 3,283 4,680
Net interest income on trading activities ......................................................... 2,683 3,223 2,530
Net trading income .......................................................................................... 7,091 6,506 7,210
Changes in fair value of long-term debt issued and related derivatives ......... (4,327) 4,161 (258)
Net income/(expense) from other financial instruments designated
at fair value ................................................................................................. 2,101 (722) 1,478
Net income/(expense) from financial instruments designated at fair value ... 3 (2,226) 3,439 1,220
Gains less losses from financial investments .................................................. 1,189 907 968
Dividend income .............................................................................................. 221 149 112
Net earned insurance premiums ...................................................................... 4 13,044 12,872 11,146
Gains on disposal of US branch network, US cards business and Ping An
Insurance (Group) Company of China, Limited ........................................ 26 7,024 – –
Other operating income ................................................................................... 2,100 1,766 2,562
Total operating income ................................................................................. 82,545 83,461 80,014
Net insurance claims incurred and movement in liabilities to
policyholders .............................................................................................. 5 (14,215) (11,181) (11,767)
Net operating income before loan impairment charges and
other credit risk provisions ...................................................................... 68,330 72,280 68,247
Loan impairment charges and other credit risk provisions ............................. 6 (8,311) (12,127) (14,039)
Net operating income .................................................................................... 60,019 60,153 54,208
Employee compensation and benefits ............................................................. 7 (20,491) (21,166) (19,836)
General and administrative expenses .............................................................. (19,983) (17,459) (15,156)
Depreciation and impairment of property, plant and equipment .................... 24 (1,484) (1,570) (1,713)
Amortisation and impairment of intangible assets .......................................... 23 (969) (1,350) (983)
Total operating expenses ............................................................................... (42,927) (41,545) (37,688)
Operating profit ............................................................................................. 6 17,092 18,608 16,520
Share of profit in associates and joint ventures ............................................... 22 3,557 3,264 2,517
Profit before tax ............................................................................................. 20,649 21,872 19,037
Tax expense ..................................................................................................... 9 (5,315) (3,928) (4,846)
Profit for the year .......................................................................................... 15,334 17,944 14,191
Profit attributable to shareholders of the parent company .............................. 14,027 16,797 13,159
Profit attributable to non-controlling interests ................................................ 1,307 1,147 1,032
US$ US$ US$
Basic earnings per ordinary share ................................................................... 11 0.74 0.92 0.73
Diluted earnings per ordinary share ................................................................ 11 0.74 0.91 0.72
The accompanying notes on pages 383 to 515 form an integral part of these financial statements1.
For footnote, see page 382.