HSBC 2006 Annual Report Download - page 50

HSBC HOLDINGS PLC
Report of the Directors: Business Review (continued)
Hong Kong > 2006
48
Hong Kong
Profit/(loss) before tax by customer groups and global businesses
Year ended 31 December
2006
US$m
2005
US$m
2004
US$m
Personal Financial Services ............................................................................. 2,880 2,628 2,063
Commercial Banking ....................................................................................... 1,321 955 904
Corporate, Investment Banking and Markets .................................................. 955 922 1,603
Private Banking ............................................................................................... 201 190 131
Other ................................................................................................................. (175) (178) 129
5,182 4,517 4,830
Profit before tax
Year ended 31 December
2006
US$m
2005
US$m
2004
US$m
Net interest income .......................................................................................... 4,685 4,064 3,638
Net fee income ................................................................................................. 2,056 1,674 1,703
Trading income ................................................................................................ 617 546 659
Net income/(expense) from financial instruments designated at fair value ... 260 (6) –
Net investment income on assets backing policyholders’ liabilities .............. – – 314
Gains less losses from financial investments .................................................. 162 108 175
Dividend income .............................................................................................. 61 41 27
Net earned insurance premiums ...................................................................... 2,628 2,334 2,247
Other operating income ................................................................................... 834 805 536
Total operating income ................................................................................. 11,303 9,566 9,299
Net insurance claims incurred and movement in policyholders’ liabilities .... (2,699) (2,059) (2,154)
Net operating income before loan impairment charges and other
credit risk provisions ................................................................................. 8,604 7,507 7,145
Loan impairment (charges)/recoveries and other credit risk provisions ........ (172) (146) 220
Net operating income .................................................................................... 8,432 7,361 7,365
Total operating expenses ................................................................................. (3,269) (2,867) (2,558)
Operating profit ............................................................................................. 5,163 4,494 4,807
Share of profit in associates and joint ventures ............................................... 19 23 23
Profit before tax ............................................................................................. 5,182 4,517 4,830
% % %
Share of HSBC’s profit before tax .................................................................. 23.5 21.5 25.5
Cost efficiency ratio ........................................................................................ 38.0 38.2 35.8
Year-end staff numbers (full-time equivalent) ................................................ 27,586 25,931 25,552
US$m US$m US$m
Selected balance sheet data1
Loans and advances to customers (net) ........................................................... 84,282 83,208 78,824
Loans and advances to banks (net) .................................................................. 50,359 42,751 45,710
Trading assets, financial instruments designated at fair value, and
financial investments ................................................................................... 103,734 81,631 75,721
Total assets ...................................................................................................... 272,428 235,376 225,336
Deposits by banks ............................................................................................ 4,799 4,708 4,325
Customer accounts ........................................................................................... 196,691 173,726 178,033
1 Third party only.