Annual Financial Report - 10 of 56

RNS Number : 6141S

HSBC Holdings PLC

18 March 2016



Summary	76
Reconciliation of 2015 and 2014 reported and adjusted items for geographical regions	77
Europe	79
Asia	82
Middle East and North Africa	86
North America	89
Latin America	92

Summary

Additional information on results in 2015 may be found in the Financial Summary on pages 48 to 64.

In the analysis of profit and loss by geographical regions that follows, operating income and operating expenses include intra‑HSBC items of $3,375m (2014: $2,972m; 2013: $2,628m).

All tables are on a reported basis unless otherwise stated.

Basis of preparation

The results of the geographical regions 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 the geographical data includes internal allocation 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 geographical regions. While such allocations have been done on a systematic and consistent basis, they necessarily involve a degree of subjectivity.

Where relevant, income and expense amounts presented include the results of inter-segment funding along with inter-company transactions. All such transactions are undertaken on an arm's length basis.

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.

Profit/(loss) before tax

	2015		2014		2013
	$m	%	$m	%	$m	%

Europe	643	3.4	596	3.2	1,825	8.1
Asia	15,763	83.5	14,625	78.3	15,853	70.3
Middle East and North Africa	1,537	8.1	1,826	9.8	1,694	7.5
North America	614	3.3	1,417	7.6	1,221	5.4
Latin America	310	1.7	216	1.1	1,972	8.7

Year ended 31 December	18,867	100.0	18,680	100.0	22,565	100.0

Total assets³⁰

	2015		2014
	$m	%	$m	%

Europe	1,129,365	46.9	1,290,926	49.0
Asia	889,747	36.9	878,723	33.4
Middle East and North Africa	59,236	2.5	62,417	2.4
North America	393,960	16.3	436,859	16.6
Latin America	86,262	3.6	115,354	4.4
Intra-HSBC items	(148,914)	(6.2)	(150,140)	(5.8)

At 31 December	2,409,656	100.0	2,634,139	100.0

Risk-weighted assets⁴⁷

	2015		2014
	$bn	%	$bn	%

At 31 December	1,103.0	100.0	1,219.8	100.0

Europe	337.4	30.6	375.4	30.1
Asia	459.7	41.7	499.8	40.0
Middle East and North Africa	60.4	5.5	63.0	5.0
North America	191.6	17.4	221.4	17.8
Latin America	73.4	6.7	88.8	7.1