HSBC 2012 Annual Report Download - page 76

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Global businesses > GPB / Other
74
• The Global Priority Clients initiative was
launched with GB&M and CMB to service
jointly the Group’s largest ultra-high net worth
clients with corporate and personal needs
through a dedicated single point of contact. The
framework has been defined, clients identified
for joint coverage and investment specialists
assigned, and we have begun to roll out a new
credit advisory model to fund credit
transactions.
Capturing growth in faster-growing and domestic
markets
• We continued to focus on faster-growing
markets, and attracted positive net new money
of US$1.9bn and US$0.5bn from clients in Asia
and the Middle East, respectively.
• Our product range was further developed
during 2012; in particular, we made progress in
strengthening our Alternatives platform, with
four new real estate ‘club deals’ and two private
equity launches in the year raising more than
US$1.3bn. Further launches are expected
in 2013.
Other73
‘Other’ contains the results of certain
property transactions, unallocated
investment activities, centrally held
investment companies, movements in
fair value of own debt, central support
and functional costs with associated
recoveries, HSBC’s holding company
and financing operations.
2012 2011 2010
US$m US$m US$m
Net interest expense ........ (730) (911) (998)
Net fee income ................ 194 34 32
Net trading expense ........ (537) (355) (311)
Change in credit spread
on long-term debt ......... (4,327) 4,161 (258)
Other changes in fair
value ............................. (1,136) 78 42
Net income/(expense)
from financial
instruments designated
at fair value .................. (5,463) 4,239 (216)
Other income .................. 8,868 6,138 6,153
Net operating income21 . 2,332 9,145 4,660
LIC recoveries76 .............. – – 3
Net operating income .... 2,332 9,145 4,663
Total operating expenses (9,369) (7,492) (5,918)
Operating profit/(loss) .. (7,037) 1,653 (1,255)
Income from associates77 47 9 94
Profit/(loss) before tax .. (6,990) 1,662 (1,161)
For footnotes, see page 120.
The commentary is on a constant currency basis unless stated
otherwise.