HSBC 2005 Annual Report Download - page 238

HSBC HOLDINGS PLC
Financial Statements
236
Consolidated income statement for the year ended 31 December 2005
2005 2004
Notes US$m US$m
Interest income ................................................................................................................... 60,094 50,471
Interest expense .................................................................................................................. (28,760) (19,372)
Net interest income ............................................................................................................. 31,334 31,099
Fee income ......................................................................................................................... 17,486 15,902
Fee expense ........................................................................................................................ (3,030) (2,954)
Net fee income ................................................................................................................... 14,456 12,948
Trading income excluding net interest income ................................................................... 3,656 2,786
Net interest income on trading activities ............................................................................. 2,208 –
Net trading income .............................................................................................................5,864 2,786
Net income from financial instruments designated at fair value ......................................... 31,034 –
Net investment income on assets backing policyholders’ liabilities ................................... –1,012
Gains less losses from financial investments ...................................................................... 692 540
Dividend income ................................................................................................................155 622
Net earned insurance premiums .......................................................................................... 45,436 5,368
Other operating income ...................................................................................................... 2,733 1,613
Total operating income .................................................................................................... 61,704 55,988
Net insurance claims incurred and movement in policyholders’ liabilities ......................... 5(4,067) (4,635)
Net operating income before loan impairment charges and
other credit risk provisions ......................................................................................... 57,637 51,353
Loan impairment charges and other credit risk provisions .................................................. (7,801) (6,191)
Net operating income ....................................................................................................... 649,836 45,162
Employee compensation and benefits ................................................................................. 7(16,145) (14,523)
General and administrative expenses .................................................................................. 8(11,183) (9,739)
Depreciation of property, plant and equipment ................................................................... 23 (1,632) (1,731)
Amortisation of intangible assets......................................................................................... (554) (494)
Total operating expenses .................................................................................................. (29,514) (26,487)
Operating profit ................................................................................................................ 20,322 18,675
Share of profit in associates and joint ventures ................................................................... 20 644 268
Profit before tax ................................................................................................................ 20,966 18,943
Tax expense ........................................................................................................................ 10 (5,093) (4,685)
Profit for the year ............................................................................................................. 15,873 14,258
Profit attributable to shareholders of the parent company ................................................... 15,081 12,918
Profit attributable to minority interests ............................................................................... 792 1,340
US$ US$
Basic earnings per ordinary share ....................................................................................... 12 1.36 1.18
Diluted earnings per ordinary share .................................................................................... 12 1.35 1.17
Dividends per ordinary share .............................................................................................. 11 0.69 0.63