HSBC 2015 Annual Report Download - page 67

HSBC HOLDINGS PLC
65
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
Global businesses
Summary 65
Reconciliation of 2015 and 2014 reported and adjusted
items for global businesses 66
Retail Banking and Wealth Management 68
Commercial Banking 70
Global Banking and Markets 71
Global Private Banking 72
Other 73
Analysis by global business 74
Summary
HSBC reviews operating activity on a number of bases,
including by geographical region and by global business.
The tables and charts below present global businesses
followed by geographical regions (page 76). Performance
is analysed in this order because certain strategic themes,
business initiatives and trends affect more than one
geographical region. All tables are on a reported basis
unless stated otherwise.
Basis of preparation
The results of global businesses are presented in accordance
with the accounting policies used in the preparation of HSBC’s
consolidated financial statements. Our operations are closely
integrated and, accordingly, the presentation of global business
data includes internal allocations of certain items of income and
expense. These allocations include the costs of certain support
services and global functions to the extent that they can be
meaningfully attributed to operational business lines. While such
allocations have been made on a systematic and consistent basis,
they necessarily involve a degree of subjectivity. Those costs
which are not allocated to global businesses are included in
‘Other’.
Where relevant, income and expense amounts presented include
the results of inter-segment funding along with inter-company
and inter-business line transactions. All such transactions are
undertaken on arm’s length terms.
The expense of the UK bank levy is included in the Europe
geographical region as HSBC regards the levy as a cost of being
headquartered in the UK. For the purposes of the presentation
by global business, the cost of the levy is included in ‘Other’.
Profit/(loss) before tax
2015 2014 2013
$m %$m % $m %
Retail Banking and Wealth Management28 4,967 26.3 5,581 29.9 6,553 29.1
Commercial Banking28 7,973 42.3 8,814 47.2 8,537 37.8
Global Banking and Markets 7,910 41.9 5,889 31.5 9,441 41.8
Global Private Banking 344 1.8 626 3.4 193 0.9
Other29 (2,327) (12.3) (2,230) (12.0) (2,159) (9.6)
Year ended 31 December 18,867 100.0 18,680 100.0 22,565 100.0
Total assets30
2015 2014
$m % $m %
Retail Banking and Wealth Management 473,284 19.6 500,864 19.0
Commercial Banking 365,290 15.2 370,958 14.1
Global Banking and Markets 1,616,704 67.1 1,839,644 69.8
Global Private Banking 81,448 3.4 88,342 3.4
Other 147,417 6.1 164,537 6.2
Intra-HSBC items (274,487) (11.4) (330,206) (12.5)
At 31 December 2,409,656 100.0 2,634,139 100.0
Risk-weighted assets
2015 2014
$bn % $bn %
Retail Banking and Wealth Management 189.5 17.2 207.2 17.0
Commercial Banking 421.0 38.2 430.3 35.3
Global Banking and Markets 440.6 39.9 516.1 42.3
Global Private Banking 19.3 1.7 20.8 1.7
Other 32.6 3.0 45.4 3.7
At 31 December 1,103.0 100.0 1,219.8 100.0
For footnotes, see page 99.