HSBC 2008 Annual Report Download - page 390

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Note 14
388
By geographical region (continued)
Profit before tax
Year ended 31 December 2006
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 ............................ 25,249 11,097 7,693 27,959 7,289 (3,408) 75,879
Interest expense .......................... (16,960) (6,412) (4,646) (13,691) (3,092) 3,408 (41,393)
Net interest income ..................... 8,289 4,685 3,047 14,268 4,197 – 34,486
Fee income .................................. 9,583 2,448 1,912 5,611 1,975 (449) 21,080
Fee expense ................................. (2,475) (392) (290) (845) (345) 449 (3,898)
Net fee income ............................ 7,108 2,056 1,622 4,766 1,630 – 17,182
Trading income excluding net
interest income ....................... 2,842 924 935 617 301 – 5,619
Net interest income/(expense)
on trading activities ................ 1,687 (307) 246 741 236 – 2,603
Net trading income ..................... 4,529 617 1,181 1,358 537 – 8,222
Changes in fair value of long-
term debt issued and related
derivatives .............................. 28 – – (63) – – (35)
Net income from other financial
instruments designated at fair
value ....................................... 116 260 79 – 237 – 692
Net income/(expense) from
financial instruments
designated at fair value ........... 144 260 79 (63) 237 – 657
Gains less losses from financial
investments ............................. 624 162 41 58 84 – 969
Dividend income ......................... 183 61 5 85 6 – 340
Net earned insurance premiums . 1,298 2,628 174 492 1,076 – 5,668
Other operating income .............. 1,428 834 765 922 91 (1,494) 2,546
Total operating income ............... 23,603 11,303 6,914 21,886 7,858 (1,494) 70,070
Net insurance claims incurred
and movement in liabilities to
policyholders .......................... (531) (2,699) (192) (259) (1,023) – (4,704)
Net operating income before
loan impairment charges
and other credit risk
provisions ............................... 23,072 8,604 6,722 21,627 6,835 (1,494) 65,366
Loan impairment charges and othe
r
credit risk provisions .............. (2,155) (172) (512) (6,796) (938) – (10,573)
Net operating income1 ................ 20,917 8,432 6,210 14,831 5,897 (1,494) 54,793
Total operating expenses
(excluding depreciation and
amortisation) ........................... (12,811) (3,002) (3,412) (9,669) (3,923) 1,494 (31,323)
Depreciation of property, plant
and equipment ........................ (762) (171) (124) (284) (173) – (1,514)
Amortisation of intangible
assets ....................................... (298) (96) (12) (240) (70) – (716)
Total operating expenses ............ (13,871) (3,269) (3,548) (10,193) (4,166) 1,494 (33,553)
Operating profit .......................... 7,046 5,163 2,662 4,638 1,731 – 21,240
Share of profit/(loss) in
associates and joint ventures .. (72) 19 865 30 4 – 846
Profit before tax .......................... 6,974 5,182 3,527 4,668 1,735 – 22,086