HSBC 2006 Annual Report Download - page 107

105
Year ended 31 December 20043
Latin America
Personal
Financial
Services
US$m
Commercial
Banking
US$m
Corporate,
Investment
Banking &
Markets
US$m
Private
Banking
US$m
Other
US$m
Inter-
segment
elimination
US$m
Total
US$m
Net interest income ..................... 1,817 466 217 4 12 – 2,516
Net fee income/(expense) ........... 765 230 95 12 (75) – 1,027
Trading income/(expense) .......... 35 12 81 – (1) – 127
Net investment income on
assets backing policyholders’
liabilities ................................. 40 1 9 – 45 – 95
Gains less losses from financial
investments ............................. 8 5 (1) – 35 – 47
Dividend income ......................... – – – – 2 – 2
Net earned insurance premiums . 251 34 55 – 359 – 699
Other operating income .............. 25 18 6 1 12 (16) 46
Total operating income ............... 2,941 766 462 17 389 (16) 4,559
Net insurance claims1 ................. (219) (25) (47) – (244) – (535)
Net operating income before
loan impairment charges and
other credit risk provisions ..... 2,722 741 415 17 145 (16) 4,024
Loan impairment (charges)/
recoveries and other credit
risk provisions ........................ (270) 23 (7) – 1 – (253)
Net operating income ................. 2,452 764 408 17 146 (16) 3,771
Total operating expenses ............ (1,801) (448) (212) (17) (68) 16 (2,530)
Operating profit .......................... 651 316 196 – 78 – 1,241
Share of profit in associates
and joint ventures ................... – – – – 1 – 1
Profit before tax .......................... 651 316 196 – 79 – 1,242
% % % % % %
Share of HSBC’s profit
before tax ................................ 3.4 1.7 1.0 – 0.4 6.5
Cost efficiency ratio ................... 66.2 60.5 51.1 100.0 46.9 62.9
US$m US$m US$m US$m US$m US$m
Selected balance sheet data2
Loans and advances to
customers (net) ....................... 9,709 3,021 2,622 2 339 15,693
Total assets ................................. 16,973 5,027 17,014 34 1,371 40,419
Customer accounts ...................... 13,642 6,284 6,259 11 111 26,307
The following assets and
liabilities were significant
to Corporate, Investment
Banking and Markets:
– loans and advances to
banks (net) .......................... 5,046
– trading assets, financial
instruments designated at
fair value, and financial
investments ......................... 7,860
– deposits by banks ............... 1,825
1 Net insurance claims incurred and movement in policyholders’ liabilities.
2 Third party only.
3 In 2006, Mexico and Panama were reclassified from the North America segment to Latin America. Comparative information has been
restated accordingly.