HSBC 2008 Annual Report Download - page 137

135
Analysis by customer group and global business
Profit/(loss) before tax
2008
Latin America
Personal
Financial
Services
US$m
Commercial
Banking
US$m
Global
Banking &
Markets
US$m
Private
Banking
US$m
Other
US$m
Inter-
segment
elimination21
US$m
Total
US$m
Net interest income ..................... 4,582 1,637 579 22 (35) (327) 6,458
Net fee income ............................ 1,339 536 248 35 9 – 2,167
Trading income excluding net
interest income ....................... 123 27 200 3 4 – 356
Net interest income/(expense)
on trading activities ................ 7 4 8 – (2) 327 345
Net trading income16 ................... 130 31 208 3 2 327 701
Changes in fair value of long-
term debt issued and
related derivatives .................. – – – – – – –
Net income from other financial
instruments designated at fair
value ....................................... 187 – 139 – 38 – 364
Net income from financial
instruments designated at
fair value ................................. 187 – 139 – 38 – 364
Gains less losses from financial
investments ............................. 132 21 21 2 – – 176
Dividend income ......................... 16 1 3 – – – 20
Net earned insurance premiums . 1,547 82 88 – – – 1,717
Other operating income .............. 244 57 39 3 8 (51) 300
Total operating income ............ 8,177 2,365 1,325 65 22 (51) 11,903
Net insurance claims17 ................ (1,281) (42) (68) – 1 – (1,390)
Net operating income5 .............. 6,896 2,323 1,257 65 23 (51) 10,513
Loan impairment charges and
other credit risk provisions ..... (2,120) (340) (29) – (3) – (2,492)
Net operating income ............... 4,776 1,983 1,228 65 20 (51) 8,021
Total operating expenses ............ (4,114) (1,277) (587) (49) (14) 51 (5,990)
Operating profit ........................ 662 706 641 16 6 – 2,031
Share of profit in associates
and joint ventures ................... 6 – – – – – 6
Profit before tax ........................ 668 706 641 16 6 – 2,037
% % % % % %
Share of HSBC’s profit
before tax ................................ 7.2 7.6 6.9 0.2 – 21.9
Cost efficiency ratio ................... 59.7 55.0 46.7 75.4 60.9 57.0
Balance sheet data15
US$m US$m US$m US$m US$m US$m
Loans and advances to
customers (net) ....................... 18,523 15,460 8,273 31 – 42,287
Total assets ................................. 30,320 19,382 48,868 391 361 (1,378) 97,944
Customer accounts ...................... 27,564 14,367 15,384 2,128 – 59,443
For footnotes, see page 143.