HSBC 2006 Annual Report Download - page 92

HSBC HOLDINGS PLC
Report of the Directors: Business Review (continued)
North America > Profit/(loss) before tax / Latin America > 2006
90
Profit/(loss) before tax by customer groups and global businesses (continued)
Year ended 31 December 20044
North 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$m
Net interest income/(expense) .... 11,998 948 780 166 (105) – 13,787
Net fee income/(expense) ........... 2,461 191 458 176 (89) – 3,197
Trading income ........................... 195 8 299 6 1 – 509
Gains less losses from financial
investments ............................. 72 – 68 6 1 – 147
Dividend income/(expense) ........ 14 – 20 – (2) – 32
Net earned insurance premiums . 450 – – – – – 450
Other operating income/
(expense) ................................ (13) 145 126 4 1,065 (986) 341
Total operating income ............... 15,177 1,292 1,751 358 871 (986) 18,463
Net insurance claims1 ................. (236) – – – – – (236)
Net operating income before
loan impairment charges and
other credit risk provisions ..... 14,941 1,292 1,751 358 871 (986) 18,227
Loan impairment (charges)/
recoveries and other credit
risk provisions ........................ (5,118) (7) 88 2 (1) – (5,036)
Net operating income ................. 9,823 1,285 1,839 360 870 (986) 13,191
Total operating expenses ............ (5,997) (594) (945) (292) (1,073) 986 (7,915)
Operating profit/(loss) ................ 3,826 691 894 68 (203) – 5,276
Share of profit/(loss) in
associates and joint ventures .. – – (15) – 7 – (8)
Profit/(loss) before tax ................ 3,826 691 879 68 (196) – 5,268
% % % % % %
Share of HSBC’s profit
before tax ................................ 20.2 3.6 4.6 0.4 (1.0) 27.8
Cost efficiency ratio .................... 40.1 46.0 54.0 81.6 123.2 43.4
US$m US$m US$m US$m US$m US$m
Selected balance sheet data2
Loans and advances to
customers (net) ....................... 185,539 25,354 25,387 3,871 – 240,151
Total assets ................................. 217,307 28,818 97,435 4,538 34 348,132
Customer accounts ...................... 40,981 23,112 45,636 7,822 – 117,551
The following assets and
liabilities were significant
to Corporate, Investment
Banking and Markets:
– loans and advances to
banks (net) .......................... 20,550
– trading assets, financial
instruments designated at
fair value, and financial
investments3 ....................... 41,849
– deposits by banks ............... 13,611
1 Net insurance claims incurred and movement in policyholders’ liabilities.
2 Third party only.
3 Including financial assets which may be repledged or resold by counterparties.
4 In 2006, Mexico and Panama were reclassified from the North America segment to the Latin America segment. Comparative
information has been restated accordingly.