HSBC 2007 Annual Report Download - page 392

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Note 14
390
Year ended 31 December 2005
Europe
Hong
Kong
Rest of
Asia-
Pacific
North
America
Latin
America
Intra-
HSBC
items Total
US$m US$m US$m US$m US$m US$m US$m
Interest income ............................ 21,023 7,419 5,673 22,189 6,133 (2,343) 60,094
Interest expense .......................... (12,802) (3,355) (3,261) (8,894) (2,791) 2,343 (28,760)
Net interest income ..................... 8,221 4,064 2,412 13,295 3,342 – 31,334
Fee income .................................. 8,081 1,967 1,619 4,605 1,481 (267) 17,486
Fee expense ................................. (1,782) (293) (279) (653) (290) 267 (3,030)
Net fee income ............................ 6,299 1,674 1,340 3,952 1,191 – 14,456
Trading income excluding net
interest income ....................... 1,660 773 753 250 220 – 3,656
Net interest income/(expense)
on trading activities ................ 1,376 (227) 107 635 317 – 2,208
Net trading income ..................... 3,036 546 860 885 537 – 5,864
Net income/(expense) from
financial instruments
designated at fair value ........... 362 (6) 58 434 186 – 1,034
Gains less losses from financial
investments ............................. 439 108 18 47 80 – 692
Dividend income ......................... 63 41 5 41 5 – 155
Net earned insurance premiums . 1,599 2,334 155 477 871 – 5,436
Other operating income .............. 1,603 805 335 642 286 (938) 2,733
Total operating income ............... 21,622 9,566 5,183 19,773 6,498 (938) 61,704
Net insurance claims incurred
and movement in liabilities to
policyholders .......................... (818) (2,059) (166) (232) (792) – (4,067)
Net operating income before
loan impairment charges and
other credit risk provisions ..... 20,804 7,507 5,017 19,541 5,706 (938) 57,637
Loan impairment charges and othe
r
credit risk provisions .............. (1,929) (146) (134) (4,916) (676) – (7,801)
Net operating income1 ................ 18,875 7,361 4,883 14,625 5,030 (938) 49,836
Total operating expenses
(excluding depreciation and
amortisation) ........................... (11,493) (2,586) (2,648) (8,276) (3,263) 938 (27,328)
Depreciation of property, plant
and equipment ........................ (912) (168) (107) (307) (138) – (1,632)
Amortisation of intangible
assets ....................................... (234) (113) (7) (175) (25) – (554)
Total operating expenses ............ (12,639) (2,867) (2,762) (8,758) (3,426) 938 (29,514)
Operating profit .......................... 6,236 4,494 2,121 5,867 1,604 – 20,322
Share of profit in associates
and joint ventures ................... 120 23 453 48 – – 644
Profit before tax .......................... 6,356 4,517 2,574 5,915 1,604 – 20,966
Other disclosures:
Capital expenditure incurred2 ..... 1,892 249 191 1,826 315 – 4,473
Investment in associates and
joint ventures .......................... 1,733 108 5,362 43 3 – 7,249
1 Net operating income:
External .................................. 18,300 7,001 4,636 14,860 5,039 – 49,836
Inter-segment .......................... 575 360 247 (235) (9) (938) –
2 Expenditure incurred on property, plant and equipment and intangible assets.