HSBC 2007 Annual Report Download - page 38

HSBC HOLDINGS PLC
Report of the Directors: Business Review (continued)
Geographical regions > Summary > Competitive environment
36
Geographical regions
Summary of geographical regions
In the analysis of profit by geographical regions that follows, operating income and operating expenses include
intra-HSBC items of US$1,985 million (2006: US$1,494 million; 2005: US$938 million).
Profit before tax
Year ended 31 December
2007 2006 2005
US$m % US$m % US$m %
Europe ...................................................... 8,595 35.5 6,974 31.5 6,356 30.3
Hong Kong .............................................. 7,339 30.3 5,182 23.5 4,517 21.5
Rest of Asia-Pacific ................................. 6,009 24.8 3,527 16.0 2,574 12.3
North America ......................................... 91 0.4 4,668 21.1 5,915 28.2
Latin America .......................................... 2,178 9.0 1,735 7.9 1,604 7.7
24,212 100.0 22,086 100.0 20,966 100.0
Total assets7
At 31 December
2007 2006
US$m % US$m %
Europe ........................................................................................................... 1,184,315 50.3 828,701 44.6
Hong Kong ................................................................................................... 332,691 14.1 272,428 14.6
Rest of Asia-Pacific ...................................................................................... 228,112 9.7 167,668 9.0
North America .............................................................................................. 510,092 21.7 511,190 27.5
Latin America ............................................................................................... 99,056 4.2 80,771 4.3
2,354,266 100.0 1,860,758 100.0
For footnote, see page 130.
Additional information on results in 2007 may be
found in the ‘Report of the Directors: Financial
Review’ on pages 131 to 191.
Europe
HSBC’s principal banking operations in Europe are
HSBC Bank plc (‘HSBC Bank’) in the UK, HSBC
France, HSBC Bank A.S. in Turkey, HSBC Bank
Malta p.l.c., HSBC Private Bank (Suisse) S.A.,
HSBC Trinkaus & Burkhardt AG and HSBC
Guyerzeller Bank AG. Through these operations
HSBC provides a wide range of banking, treasury
and financial services to personal, commercial and
corporate customers across Europe.
Hong Kong
HSBC’s principal banking subsidiaries in Hong
Kong are The Hongkong and Shanghai Banking
Corporation Limited (‘The Hongkong and Shanghai
Banking Corporation’) and Hang Seng Bank Limited
(‘Hang Seng Bank’). The former is the largest bank
incorporated in Hong Kong and is HSBC’s flagship
bank in the Asia-Pacific region. It is one of Hong
Kong’s three note-issuing banks, accounting for
more than 65 per cent by value of banknotes in
circulation in 2007.
Rest of Asia-Pacific (including the
Middle East)
HSBC offers personal, commercial, global banking
and markets services in mainland China, mainly
through its local subsidiary, HSBC Bank (China)
Company Limited (‘HSBC Bank China’), which was
incorporated in March 2007. The bank’s network
spans 18 major cities, comprising 18 branches and
44 sub-branches. Hang Seng Bank offers personal
and commercial banking services and operates 10
branches, 14 sub-branches and one representative
office in 10 cities in mainland China. HSBC also
participates indirectly in mainland China through
its three associates, Bank of Communications
(19.01 per cent owned), Ping An Insurance
(16.78 per cent) and Industrial Bank (12.78 per
cent), and has a further interest of 8 per cent in Bank
of Shanghai.
Outside Hong Kong and mainland China, HSBC
conducts business in 21 countries in the Asia-Pacific
region, primarily through branches and subsidiaries
of The Hongkong and Shanghai Banking
Corporation, with particularly strong coverage in
India, Indonesia, South Korea, Singapore and
Taiwan. HSBC’s presence in the Middle East is led
by HSBC Bank Middle East Limited (‘HSBC Bank