HSBC 2009 Annual Report Download - page 98

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Geographical regions > Europe > Profit/(loss) before tax by customer group
96
Profit/(loss) before tax (continued)
2008
Europe
Personal
Financial
Services
US$m
Commercial
Banking
US$m
Global
Banking &
Markets
US$m
Private
Banking
US$m
Other
US$m
Inter-
segment
elimination50
US$m
Total
US$m
Net interest income/(expense) .... 6,464 3,435 3,488 1,046 (459) (4,278) 9,696
Net fee income ............................ 2,612 2,025 1,763 1,020 72 – 7,492
Trading income/(expense)
excluding net interest income 47 71 1,513 198 (138) – 1,691
Net interest income/(expense)
on trading activities ................ – 12 (655) 14 17 4,278 3,666
Net trading income/(expense)42 .. 47 83 858 212 (121) 4,278 5,357
Changes in fair value of long-
term debt issued and related
derivatives .............................. – – – – 2,939 – 2,939
Net income/(expense) from
other financial instruments
designated at fair value ........... (1,634) (214) (611) – 633 – (1,826)
Net income/(expense) from
financial instruments
designated at fair value ........... (1,634) (214) (611) – 3,572 – 1,113
Gains less losses from financial
investments ............................. 281 132 (30) 62 (27) – 418
Dividend income ......................... 35 74 25 5 (9) – 130
Net earned insurance premiums . 4,927 391 – – (19) – 5,299
Gains on disposal of French
regional banks ........................ – – – – 2,445 – 2,445
Other operating income .............. 230 620 398 16 832 – 2,096
Total operating income ............... 12,962 6,546 5,891 2,361 6,286 – 34,046
Net insurance claims43 ................ (3,224) (143) – – – – (3,367)
Net operating income16 ............... 9,738 6,403 5,891 2,361 6,286 – 30,679
Loan impairment charges and
other credit risk provisions ..... (1,971) (867) (875) (38) (3) – (3,754)
Net operating income ................. 7,767 5,536 5,016 2,323 6,283 – 26,925
Total operating expenses ............ (6,107) (2,830) (4,823) (1,325) (987) – (16,072)
Operating profit .......................... 1,660 2,706 193 998 5,296 – 10,853
Share of profit/(loss) in
associates and joint ventures .. (2) 16 2 – – – 16
Profit before tax .......................... 1,658 2,722 195 998 5,296 – 10,869
% % % % % %
Share of HSBC’s profit
before tax ................................ 17.8 29.2 2.1 10.7 56.9 116.7
Cost efficiency ratio .................... 62.7 44.2 81.9 56.1 15.7 52.4
Balance sheet data41
US$m US$m US$m US$m US$m US$m
Loans and advances to
customers (net) ....................... 126,909 87,245 185,818 25,722 497 426,191
Total assets .................................. 171,962 107,495 1,180,759 84,485 64,423 (217,075) 1,392,049
Customer accounts ...................... 145,411 91,188 199,687 66,007 183 502,476