HSBC 2009 Annual Report Download - page 355

353
Consolidated income statement for the year ended 31 December 2009
2009 2008 2007
Notes US$m US$m US$m
Interest income ............................................................................................. 62,096 91,301 92,359
Interest expense ............................................................................................ (21,366) (48,738) (54,564)
Net interest income ....................................................................................... 40,730 42,563 37,795
Fee income .................................................................................................... 21,403 24,764 26,337
Fee expense ................................................................................................... (3,739) (4,740) (4,335)
Net fee income .............................................................................................. 17,664 20,024 22,002
Trading income excluding net interest income ............................................ 6,236 847 4,458
Net interest income on trading activities ...................................................... 3,627 5,713 5,376
Net trading income ....................................................................................... 9,863 6,560 9,834
Changes in fair value of long-term debt issued and related derivatives ...... (6,247) 6,679 2,812
Net income/(expense) from other financial instruments designated
at fair value .............................................................................................. 2,716 (2,827) 1,271
Net income/(expense) from financial instruments designated at fair value 3 (3,531) 3,852 4,083
Gains less losses from financial investments ............................................... 520 197 1,956
Gains arising from dilution of interests in associates .................................. 4 – – 1,092
Dividend income ........................................................................................... 126 272 324
Net earned insurance premiums ................................................................... 5 10,471 10,850 9,076
Gains on disposal of French regional banks ................................................ – 2,445 –
Other operating income ................................................................................ 2,788 1,808 1,439
Total operating income .............................................................................. 78,631 88,571 87,601
Net insurance claims incurred and movement in liabilities to
policyholders ........................................................................................... 6 (12,450) (6,889) (8,608)
Net operating income before loan impairment charges and
other credit risk provisions ................................................................... 66,181 81,682 78,993
Loan impairment charges and other credit risk provisions .......................... 7 (26,488) (24,937) (17,242)
Net operating income ................................................................................. 7 39,693 56,745 61,751
Employee compensation and benefits .......................................................... 8 (18,468) (20,792) (21,334)
General and administrative expenses ........................................................... (13,392) (15,260) (15,294)
Depreciation and impairment of property, plant and equipment ................. 23 (1,725) (1,750) (1,714)
Goodwill impairment .................................................................................... 22 – (10,564) –
Amortisation and impairment of intangible assets ....................................... 22 (810) (733) (700)
Total operating expenses ............................................................................ (34,395) (49,099) (39,042)
Operating profit .......................................................................................... 5,298 7,646 22,709
Share of profit in associates and joint ventures ............................................ 21 1,781 1,661 1,503
Profit before tax .......................................................................................... 7,079 9,307 24,212
Tax expense .................................................................................................. 11 (385) (2,809) (3,757)
Profit for the year ....................................................................................... 6,694 6,498 20,455
Profit attributable to shareholders of the parent company ........................... 5,834 5,728 19,133
Profit attributable to minority interests ........................................................ 860 770 1,322
US$ US$ US$
Basic earnings per ordinary share1 ............................................................... 13 0.34 0.41 1.44
Diluted earnings per ordinary share1 ............................................................ 13 0.34 0.41 1.42
For footnote, see page 364.
The accompanying notes on pages 365
to 471, the audited sections of ‘Report of the Directors: Risk’ on pages 196 to 293, ‘Critical
accounting policies’ on pages 61 to 65 and the audited sections of ‘Report of the Directors: Impact of Market Turmoil’ on pages 151 to
195 form an integral part of these financial statements.