HSBC 2008 Annual Report Download - page 88

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Customer groups > Profit/(loss) before tax // Geographical regions > Summary
86
Profit/(loss) before tax (continued)
2006
Total
Personal
Financial
Services
US$m
Commercial
Banking
US$m
Global
Banking &
Markets
US$m
Private
Banking
US$m
Other14
US$m
Inter-
segment
elimination21
US$m
Total
US$m
Net interest income/(expense) .... 26,076 7,514 3,168 1,011 (625) (2,658) 34,486
Net fee income ............................ 8,762 3,207 3,718 1,323 172 – 17,182
Trading income/(expense)
excluding net interest income 391 204 4,890 362 (228) – 5,619
Net interest income/ (expense)
on trading activities ................ 220 20 (379) 2 82 2,658 2,603
Net trading income/(expense)16 .. 611 224 4,511 364 (146) 2,658 8,222
Changes in fair value of long-
term debt issued and related
derivatives .............................. – – – – (35) – (35)
Net income/(expense) from
other financial instruments
designated at fair value ........... 739 (22) 20 1 (46) – 692
Net income/(expense) from
financial instruments
designated at fair value ........... 739 (22) 20 1 (81) – 657
Gains less losses from
financial investments .............. 78 44 534 166 147 – 969
Dividend income ......................... 31 6 235 5 63 – 340
Net earned insurance premiums . 5,130 258 73 – 207 – 5,668
Other operating income .............. 782 250 1,378 61 3,254 (3,179) 2,546
Total operating income ............... 42,209 11,481 13,637 2,931 2,991 (3,179) 70,070
Net insurance claims17 ................ (4,365) (96) (62) – (181) – (4,704)
Net operating income5 ................ 37,844 11,385 13,575 2,931 2,810 (3,179) 65,366
Loan impairment (charges)/
recoveries and other credit
risk provisions ........................ (9,949) (697) 119 (33) (13) – (10,573)
Net operating income ................. 27,895 10,688 13,694 2,898 2,797 (3,179) 54,793
Total operating expenses ............ (18,818) (4,979) (7,991) (1,685) (3,259) 3,179 (33,553)
Operating profit/(loss) ................ 9,077 5,709 5,703 1,213 (462) – 21,240
Share of profit in associates
and joint ventures ................... 380 288 103 1 74 – 846
Profit/(loss) before tax ................ 9,457 5,997 5,806 1,214 (388) – 22,086
% % % % % %
Share of HSBC’s profit
before tax ................................ 42.8 27.2 26.3 5.5 (1.8) 100.0
Cost efficiency ratio ................... 49.7 43.7 58.9 57.5 116.0 51.3
Balance sheet data15
US$m US$m US$m US$m US$m US$m
Loans and advances to
customers (net) ....................... 448,545 172,976 210,220 34,297 2,095 868,133
Total assets ................................. 602,342 228,668 1,059,746 106,178 137,291 (273,467) 1,860,758
Customer accounts ...................... 388,468 190,853 235,965 80,303 1,245 896,834
For footnotes, see page 143.