HSBC 2007 Annual Report Download - page 60

HSBC HOLDINGS PLC
Report of the Directors: Business Review (continued)
Europe > Profit /(loss) before tax by customer group / Hong Kong
58
Profit/(loss) before tax and balance sheet data by customer group and global business (continued)
Year ended 31 December 2005
Europe
Personal
Financial
Services
US$m
Commercial
Banking
US$m
Global
Banking &
Markets
US$m
Private
Banking
US$m
Other
US$m
Inter-
segment
elimination14
US$m
Total
US$m
Net interest income ..................... 5,309 2,659 827 548 95 (1,217) 8,221
Net fee income ............................ 2,314 1,621 1,339 730 295 – 6,299
Trading income/(expense)
excluding net interest income 81 16 1,493 93 (23) – 1,660
Net interest income/(expense)
on trading activities ................ 3 2 159 – (5) 1,217 1,376
Net trading income/(expense)5 ... 84 18 1,652 93 (28) 1,217 3,036
Net income/(expense) from
financial instruments
designated at fair value ........... 305 71 17 – (31) – 362
Gains less losses from financial
investments ............................. (4) 4 396 27 16 – 439
Dividend income ......................... 2 7 27 9 18 – 63
Net earned insurance premiums . 1,220 115 – – 264 – 1,599
Other operating income .............. 42 178 1,252 18 329 (216) 1,603
Total operating income ............... 9,272 4,673 5,510 1,425 958 (216) 21,622
Net insurance claims6 ................. (577) (62) – – (179) – (818)
Net operating income4 ................ 8,695 4,611 5,510 1,425 779 (216) 20,804
Loan impairment (charges)/
recoveries and other credit
risk provisions ........................ (1,711) (378) 155 5 – – (1,929)
Net operating income ................. 6,984 4,233 5,665 1,430 779 (216) 18,875
Total operating expenses ............ (5,058) (2,301) (3,647) (891) (958) 216 (12,639)
Operating profit/(loss) ................ 1,926 1,932 2,018 539 (179) – 6,236
Share of profit in associates
and joint ventures ................... 6 7 96 – 11 – 120
Profit/(loss) before tax ................ 1,932 1,939 2,114 539 (168) – 6,356
% % % % % %
Share of HSBC’s profit
before tax ................................ 9.2 9.2 10.1 2.6 (0.8) 30.3
Cost efficiency ratio ................... 58.2 49.9 66.2 62.5 122.9 60.8
US$m US$m US$m US$m US$m US$m
Balance sheet data7
Loans and advances to
customers (net) ....................... 120,302 66,965 107,899 17,368 3 312,537
Total assets ................................. 143,095 80,864 367,893 40,971 3,880 636,703
Customer accounts ...................... 122,118 61,789 109,086 41,206 1 334,200
The following assets and
liabilities were significant to
Global Banking and Markets:
– loans and advances to
banks (net) .......................... 34,218
– trading assets, financial
instruments designated at
fair value, and financial
investments ......................... 168,062
– deposits by banks ............... 45,075
For footnotes, see page 130.