HSBC 2009 Annual Report Download - page 390

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Notes 7 and 8
388
7 Net operating income
Net operating income is stated after the following items of income, expense, gains and losses:
2009 2008 2007
US$m US$m US$m
Income
Interest recognised on impaired financial assets ..................................................... 941 1,040 404
Fees earned on financial assets or liabilities not held for trading nor
designated at fair value, other than fees included in effective interest
rate calculations on these types of assets and liabilities ..................................... 12,310 14,511 15,140
Fees earned on trust and other fiduciary activities where HSBC holds
or invests assets on behalf of its customers ........................................................ 2,735 3,314 3,695
Income from listed investments ............................................................................... 9,201 11,425 10,944
Income from unlisted investments ........................................................................... 7,085 11,359 10,429
Losses from the fraud at Bernard L Madoff Investment Securities LLC ............... (72) (984) –
Expense
Interest on financial instruments, excluding interest on financial liabilities
held for trading or designated at fair value ......................................................... (19,737) (45,525) (50,876)
Fees payable on financial assets or liabilities not held for trading nor
designated at fair value, other than fees included in effective interest rate
calculations on these types of assets and liabilities ............................................ (1,580) (1,866) (1,923)
Fees payable relating to trust and other fiduciary activities where
HSBC holds or invests assets on behalf of its customers ................................... (116) (159) (163)
Gains/(losses)
Gain on disposal or settlement of loans and advances ............................................ 244 94 64
Impairment of available-for-sale equity securities .................................................. (358) (1,042) (42)
Gains on disposal of property, plant and equipment, intangible assets
and non-financial investments ............................................................................ 457 465 213
Gain on sale/repurchase of 8 Canada Square1.......................................................... 576 416 –
Loan impairment charges and other credit risk provisions .............................. (26,488) (24,937) (17,242)
Net impairment charge on loans and advances ................................................... (24,942) (24,131) (17,177)
Impairment of available-for-sale debt securities ................................................. (1,474) (737) (44)
Impairment in respect of other credit risk provisions ......................................... (72) (69) (21)
1 The repurchase of 8 Canada Square occurred in 2008. See Note 23 for further details.
8 Employee compensation and benefits
2009 2008 2007
US$m US$m US$m
Wages and salaries ................................................................................................... 16,268 18,169 18,535
Social security costs ................................................................................................. 1,512 1,625 1,587
Post-employment benefits ....................................................................................... 688 998 1,212
18,468 20,792 21,334
The average number of persons employed by HSBC during the year was as follows:
2009 2008 2007
Europe ...................................................................................................................... 84,056 87,864 86,918
Hong Kong .............................................................................................................. 28,894 30,030 27,702
Rest of Asia-Pacific1 ................................................................................................ 88,122 87,954 75,095
Middle East1 ............................................................................................................. 8,468 8,201 8,008
North America ......................................................................................................... 42,202 53,090 58,117
Latin America .......................................................................................................... 57,774 64,319 66,442
Total ......................................................................................................................... 309,516 331,458 322,282
1 The Middle East is disclosed as a separate geographical region with effect from 1 January 2009. Previously, it formed part of Rest of
Asia-Pacific. Comparative data have been adjusted accordingly.