HSBC 2012 Annual Report Download - page 80

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Global businesses > Disposals, held for sale and run-off portfolios // Geographical regions > Summary
78
Disposals, held for sale and run-off
portfolios
In implementing our strategy, we have sold or
agreed to sell a number of businesses and
investments across the Group. We expect these
disposals to have a significant effect on both the
revenue and the profitability of the global businesses
in the future. In addition, significant portfolios are
being run down. We expect the losses on these
portfolios to continue to affect the global businesses
in the future.
The table below presents the contribution of
these businesses and investments to the historical
results of global businesses. We do not expect the
historical results to be indicative of future results
because of disposal or run-off. Fixed allocated costs,
included in total operating costs, will not necessarily
be removed upon disposal and have been separately
identified on page 53.
Summary income statements for disposals, held for sale and run-off portfolios69,70
2012
Retail
Banking
and Wealth
Management
US$m
Commercial
Banking
US$m
Global
Banking
and
Markets
US$m
Global
Private
Banking
US$m
Other
US$m
Net interest income/(expense) ...................................... 4,281 133 35 8 (2)
Net fee income .............................................................. 380 – 1 8 –
Net trading income/(expense)78 .................................... (204) 4 160 – 2
Net income/(expense) from financial instruments
designated at fair value ............................................ 6 2 10 – (785)
Gains less losses from financial investments ................... 32 1 (70) – –
Dividend income ........................................................... 3 – – – –
Net earned insurance premiums ................................... 518 203 25 – (1)
Other operating income/(expense) ............................... 40 20 (3) (1) –
Total operating income/(expense) ............................. 5,056 363 158 15 (786)
Net insurance claims incurred and movement in
liabilities to policyholders ........................................ (297) (129) (17) – –
Net operating income/(expense)21 .............................. 4,759 234 141 15 (786)
Loan impairment charges and other credit
risk provisions .......................................................... (2,980) (4) (168) – –
Net operating income/(expense) ................................ 1,779 230 (27) 15 (786)
Total operating expenses .............................................. (2,376) (164) (165) (24) (18)
Operating profit/(loss) ................................................ (597) 66 (192) (9) (804)
Share of profit in associates and joint ventures ............ 633 89 64 – –
Profit/(loss) before tax ................................................ 36 155 (128) (9) (804)
By geographical region
Europe ........................................................................... 2 – (283) (1) –
Hong Kong ................................................................... 27 13 6 – –
Rest of Asia-Pacific ...................................................... 612 91 57 (8) –
Middle East and North Africa ...................................... 10 – 36 – –
North America .............................................................. (656) 9 2 – (785)
Latin America ............................................................... 41 42 54 – (19)
Profit/(loss) before tax .................................................. 36 155 (128) (9) (804)
Gain on sale .................................................................. 4,074 476 22 64 3,103
For footnotes, see page 120.