HSBC 2006 Annual Report Download - page 47

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Profit/(loss) before tax by customer groups and global businesses
Year ended 31 December 2006
Europe
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$m
Net interest income ..................... 5,653 2,923 1,222 675 14 (2,198) 8,289
Net fee income ............................ 2,533 1,707 1,673 869 326 – 7,108
Trading income/(expense)
excluding net interest income 119 27 2,636 99 (39) – 2,842
Net interest income/(expense)
on trading activities ................ (6) 15 (523) 2 1 2,198 1,687
Net trading income/(expense) .... 113 42 2,113 101 (38) 2,198 4,529
Net income from financial
instruments designated at
fair value ................................. 80 27 11 – 26 – 144
Gains less losses from financial
investments ............................. 37 22 413 149 3 – 624
Dividend income ......................... 2 3 171 5 2 – 183
Net earned insurance premiums . 979 110 – – 209 – 1,298
Other operating income .............. 128 103 957 13 256 (29) 1,428
Total operating income ............ 9,525 4,937 6,560 1,812 798 (29) 23,603
Net insurance claims1 ................. (331) (19) – – (181) – (531)
Net operating income before
loan impairment charges
and other credit risk
provisions .............................. 9,194 4,918 6,560 1,812 617 (29) 23,072
Loan impairment (charges)/
recoveries and other credit
risk provisions ........................ (1,838) (386) 64 2 3 – (2,155)
Net operating income ............... 7,356 4,532 6,624 1,814 620 (29) 20,917
Total operating expenses ............ (5,447) (2,298) (4,224) (1,010) (921) 29 (13,871)
Operating profit/(loss) .............. 1,909 2,234 2,400 804 (301) – 7,046
Share of profit/(loss) in
associates and joint ventures .. – – (96) 1 23 – (72)
Profit/(loss) before tax .............. 1,909 2,234 2,304 805 (278) – 6,974
% % % % % %
Share of HSBC’s profit
before tax ................................ 8.6 10.1 10.4 3.6 (1.2) 31.5
Cost efficiency ratio .................... 59.2 46.7 64.4 55.7 149.3 60.1
US$m US$m US$m US$m US$m US$m
Selected balance sheet data2
Loans and advances to
customers (net) ....................... 147,507 81,430 140,277 23,283 2 392,499
Total assets .................................. 174,865 98,073 502,340 49,440 3,983 828,701
Customer accounts ...................... 152,411 80,312 139,416 47,223 3 419,365
The following assets and
liabilities were significant
to Corporate, Investment
Banking and Markets:
– loans and advances to
banks (net) .......................... 63,788
– trading assets, financial
instruments designated at
fair value, and financial
investments ......................... 219,304
– deposits by banks ................ 65,963