HSBC 2004 Annual Report Download - page 132

HSBC HOLDINGS PLC
Financial Review (continued)
130
Year ended 31 December
2004 2003 2002
%%%
Net interest margin
Europe HSBC Bank ....................... 2.43 2.60 2.72
HSBC Private Banking
Holdings (Suisse) ......... 0.82 0.75 0.75
CCF .................................. 1.44 1.85 1.81
HSBC Finance
Corporation1 .................. 6.74 7.10
–
Hong Kong Hang Seng Bank ............... 2.04 2.28 2.46
The Hongkong and
Shanghai Banking
Corporation ................... 1.74 2.13 2.47
Rest of Asia-
Pacific
The Hongkong and
Shanghai Banking
Corporation ................... 1.92 2.02 2.20
HSBC Bank Malaysia ....... 2.56 2.60 2.76
HSBC Bank Middle East ... 3.76 3.64 3.78
North America HSBC Bank USA ............ 2.90 3.20 3.07
HSBC Finance
Corporation1 .................. 8.66 9.17
–
HSBC Bank Canada ......... 2.41 2.54 2.68
HSBC Markets Inc ............
(
0.17
)
0.01
(
0.24
)
HSBC Mexico1 .................. 5.82 4.79 4.80
South America Brazilian operations .......... 13.69 10.77 11.85
HSBC Bank Argentina ...... 5.19 0.34
(
2.71
)
Other operations2 ......................................... 2.20 1.96 1.86
3.22 3.29 2.54
1 Net interest margins annualised on the basis of the period of ownership in the year of acquisition.
2 Excludes eliminations (see note (iii)).
Notes
(i) Average balances are based on daily averages for the principal areas of HSBC’s banking activities with monthly or less frequent
averages used elsewhere.
(ii) ‘Loans accounted for on a non-accrual basis’ and ‘Loans on which interest has been accrued but suspended’ have been included in
‘Loans and advances to banks’ and ‘Loans and advances to customers’. Interest income on such loans is included in the
consolidated profit and loss account to the extent to which it has been received.
(iii) Balances and transactions with fellow subsidiaries are reported gross in the principal commercial banking and consumer finance
entities within ‘Other interest-earning assets’ and ‘Other interest-bearing liabilities’ as appropriate and the elimination entries are
included within ‘Other operations’ in those two categories.
(iv) Other than as noted in (iii) above, ‘Other operations’ comprise the operations of the principal commercial banking and consumer
finance entities outside their domestic markets and all other banking operations.
(v) Non-equity minority interests are included within shareholders’ funds and other non interest-bearing liabilities and the related
coupon payments are included within minority interests in the profit and loss account.