HSBC 2012 Annual Report Download - page 88

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Geographical regions > Europe
86
Profit/(loss) before tax and balance sheet data – Europe
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$m
Inter-
segment
elimination85
US$m
Total
US$m
Profit before tax
Net interest income/(expense) .... 5,437 3,228 1,409 820 (543) 43 10,394
Net fee income ............................ 2,622 1,658 1,032 848 9 – 6,169
Trading income excluding net
interest income ....................... 67 26 848 216 25 – 1,182
Net interest income on trading
activities .................................. 7 14 1,500 14 33 (43) 1,525
Net trading income78 ................... 74 40 2,348 230 58 (43) 2,707
Changes in fair value of long-
term debt issued and related
derivatives .............................. – – – – (3,091) – (3,091)
Net income/(expense) from
other financial instruments
designated at fair value ........... 770 139 1,073 –(1,106) – 876
Net income/(expense) from
financial instruments
designated at fair value ........... 770 139 1,073 – (4,197) – (2,215)
Gains less losses from
financial investments .............. (5) (1) 375 (3) (2) – 364
Dividend income ......................... – 1 104 3 3 – 111
Net earned insurance premiums . 3,150 438 – 42 – – 3,630
Other operating income .............. 84 58 88 61 796 (9) 1,078
Total operating income/
(expense) ................................ 12,132 5,561 6,429 2,001 (3,876) (9) 22,238
Net insurance claims86 ................ (4,054) (536) – (40) – – (4,630)
Net operating income/
(expense)21 ............................. 8,078 5,025 6,429 1,961 (3,876) (9) 17,608
Loan impairment charges and
other credit risk provisions ..... (347) (1,109) (436) (29) – – (1,921)
Net operating income/
(expense) ................................ 7,731 3,916 5,993 1,932 (3,876) (9) 15,687
Total operating expenses ............ (7,225) (2,708) (4,999) (1,431) (2,741) 9 (19,095)
Operating profit/(loss) .............. 506 1,208 994 501 (6,617) – (3,408)
Share of profit/(loss) in
associates and joint ventures .. 3 – (8) (2) 1 – (6)
Profit/(loss) before tax .............. 509 1,208 986 499 (6,616) – (3,414)
% % % % % %
Share of HSBC’s profit
before tax ................................ 2.5 5.9 4.8 2.4 (32.0) (16.5)
Cost efficiency ratio ................... 89.4 53.9 77.8 73.0 (70.7) 108.4
Balance sheet data74
US$m US$m US$m US$m US$m US$m
Loans and advances to
customers (net) ....................... 170,002 105,796 156,798 29,963 881 463,440
Total assets ................................. 240,744 132,718 1,044,507 76,145 75,513 (180,387) 1,389,240
Customer accounts ...................... 191,024 121,648 184,473 57,125 739 555,009