HSBC 2015 Annual Report Download - page 53

HSBC HOLDINGS PLC
51
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
Group performance by income and expense item
Net interest income
2015 2014 2013
$m $m $m
Interest income 47,189 50,955 51,192
Interest expense (14,658) (16,250) (15,653)
Net interest income5 32,531 34,705 35,539
Average interest-earning assets 1,726,949 1,786,536 1,669,368
Gross interest yield6 2.73% 2.85% 3.07%
Less: cost of funds (1.00%) (1.05%) (1.10%)
Net interest spread7 1.73% 1.80% 1.97%
Net interest margin8 1.88% 1.94% 2.13%
For footnotes, see page 99.
Summary of interest income by type of asset
2015 2014 2013
Average
balance
Interest
income Yield
Average
balance
Interest
income Yield
Average
balance
Interest
income Yield
$m $m %$m $m % $m $m %
Short-term funds and loans and advances to banks 221,924 2,277 1.03 237,148 3,068 1.29 236,377 2,851 1.21
Loans and advances to customers 909,707 33,104 3.64 931,311 37,429 4.02 897,322 38,529 4.29
Reverse repurchase agreements
–
non-trading 162,308 1,301 0.80 198,273 1,800 0.91 114,324 995 0.87
Financial investments 396,113 7,508 1.90 399,816 8,323 2.08 393,309 8,002 2.03
Other interest-earning assets 36,897 2,999 8.13 19,988 335 1.68 28,036 815 2.91
Total interest-earning assets 1,726,949 47,189 2.73 1,786,536 50,955 2.85 1,669,368 51,192 3.07
Trading assets and financial assets
designated at fair value9,10 195,285 4,626 2.37 238,958 5,596 2.34
354,817 5,763 1.62
Impairment allowances (10,606) (14,015) (15,954)
Non-interest-earning assets 682,143 668,564 683,785
Year ended 31 December 2,593,771 51,815 2.00 2,680,043 56,551 2.11 2,692,016 56,955 2.12
For footnotes, see page 99.
Summary of interest expense by type of liability and equity
2015 2014 2013
Average
balance
Interest
expense Cost
Average
balance
Interest
expense Cost
Average
balance
Interest
expense Cost
$m $m % $m $m %
$m $m %
Deposits by banks11 55,863 378 0.68 61,217 481 0.79 61,616 555 0.90
Financial liabilities designated at fair value
– own debt issued12 58,489 717 1.23 66,374 837 1.26 72,333 967 1.34
Customer accounts13 1,075,901 7,401 0.69 1,088,493 9,131 0.84 1,035,500 8,794 0.85
Repurchase agreements
–
non-trading 117,947 355 0.30 190,705 652 0.34 94,410 405 0.43
Debt securities in issue 129,039 3,521 2.73 129,724 4,554 3.51 150,976 4,182 2.77
Other interest-bearing liabilities 28,396 2,286 8.05 10,120 595 5.88 11,345 750 6.61
Total interest-bearing liabilities 1,465,635 14,658 1.00 1,546,633 16,250 1.05 1,426,180 15,653 1.10
Trading liabilities and financial liabilities designated
at fair value (excluding own debt issued) 151,294 2,071 1.37 178,518 2,856 1.60
301,353 3,027 1.00
Non-interest bearing current accounts 190,914 185,990 184,370
Total equity and other non-interest bearing
liabilities 785,928 768,902 780,113
Year ended 31 December 2,593,771 16,729 0.64 2,680,043 19,106 0.71 2,692,016 18,680 0.69
For footnotes, see page 99.