Annual Financial Report - 49 of 56

RNS Number : 6405S

HSBC Holdings PLC

18 March 2016

 

Profit/(loss) for the year (continued)

		Europe		Asia		MENA		North          America		Latin          America		Intra-    HSBC items		Total
		$m		$m		$m		$m		$m		$m		$m
2013
Net interest income		10,693		11,432		1,486		5,742		6,186		-		35,539
Net fee income		6,032		5,936		622		2,143		1,701		-		16,434
Net trading income		4,423		2,026		357		948		936		-		8,690
Other income/(expense)		(181)		5,038		38		(30)		1,745		(2,628)		3,982
Net operating income1		20,967		24,432		2,503		8,803		10,568		(2,628)		64,645
Loan impairment (charges)/recoveries  and other credit risk provisions		(1,530)		(498)		42		(1,197)		(2,666)		-		(5,849)
Net operating income		19,437		23,934		2,545		7,606		7,902		(2,628)		58,796
Employee compensation and benefits		(7,175)		(5,666)		(634)		(3,098)		(2,623)		-		(19,196)
General and administrative expenses		(9,479)		(3,660)		(607)		(3,051)		(2,896)		2,628		(17,065)
Depreciation and impairment of property, plant and equipment		(559)		(392)		(35)		(176)		(202)		-		(1,364)
Amortisation and impairment of intangible assets		(400)		(218)		(13)		(91)		(209)		-		(931)
Total operating expenses		(17,613)		(9,936)		(1,289)		(6,416)		(5,930)		2,628		(38,556)
Operating profit		1,824		13,998		1,256		1,190		1,972		-		20,240
Share of profit in associates and joint ventures		1		1,855		438		31		-		-		2,325
Profit before tax		1,825		15,853		1,694		1,221		1,972		-		22,565
Tax expense		(1,279)		(2,170)		(328)		(313)		(675)		-		(4,765)
Profit for the year		546		13,683		1,366		908		1,297		-		17,800

1   Net operating income before loan impairment charges and other credit risk provisions, also referred to as revenue.

Other information about the profit/(loss) for the year

		Europe		Asia		MENA		North          America		Latin          America		Intra-    HSBC items		Total
		$m		$m		$m		$m		$m		$m		$m
2015
Net operating income1		21,058		25,303		2,565		7,657		6,592		(3,375)		59,800
- external		19,778		23,477		2,559		7,386		6,600		-		59,800
- inter-segment		1,280		1,826		6		271		(8)		(3,375)		-
Profit for the year includes the following significant non-cash items:
Depreciation, amortisation and impairment		1,013		620		38		195		315		-		2,181
Loan impairment losses gross of recoveries and other credit risk provisions		1,082		858		331		618		1,641		-		4,530
Changes in fair value of long-term debt and related derivatives		671		5		6		181		-		-		863
2014
Net operating income1		21,571		23,677		2,548		8,152		8,272		(2,972)		61,248
- external		20,450		22,071		2,524		7,937		8,266		-		61,248
- inter-segment		1,121		1,606		24		215		6		(2,972)		-
Profit for the year includes the following significant non-cash items:
Depreciation, amortisation and impairment		950		606		40		182		473		-		2,251
Loan impairment losses gross of recoveries and other credit risk provisions		1,066		800		37		437		2,466		-		4,806
Changes in fair value of long-term debt and related derivatives		614		(4)		(3)		(99)		-		-		508
2013
Net operating income1		20,967		24,432		2,503		8,803		10,568		(2,628)		64,645
- external		20,108		22,853		2,497		8,569		10,618		-		64,645
- inter-segment		859		1,579		6		234		(50)		(2,628)		-
Profit for the year includes the following significant non-cash items:
Depreciation, amortisation and impairment		957		610		48		303		412		-		2,330
Loan impairment losses gross of recoveries and other credit risk provisions		2,165		665		45		1,321		2,949		-		7,145
Changes in fair value of long-term debt and related derivatives		(936)		(1)		(3)		(288)		-		-		(1,228)

1   Net operating income before loan impairment charges and other credit risk provisions, also referred to as revenue.

Balance sheet information

		Europe		Asia		MENA		North          America		Latin          America		Intra-    HSBC items		Total
		$m		$m		$m		$m		$m		$m		$m
At 31 December 2015
Loans and advances to customers		392,041		356,375		29,894		128,851		17,293		-		924,454
Interests in associates and joint ventures		198		15,720		3,176		45		-		-		19,139
Total assets		1,129,365		889,747		59,236		393,960		86,262		(148,914)		2,409,656
Customer accounts		497,876		598,620		36,468		135,152		21,470		-		1,289,586
Total liabilities		1,067,127		813,466		49,126		355,506		75,827		(148,914)		2,212,138
Capital expenditure incurred1		1,182		725		34		198		187		-		2,326
At 31 December 2014
Loans and advances to customers		409,733		362,955		29,063		129,787		43,122		-		974,660
Interests in associates and joint ventures		175		14,958		2,955		83		10		-		18,181
Total assets		1,290,926		878,723		62,417		436,859		115,354		(150,140)		2,634,139
Customer accounts		545,959		577,491		39,720		138,884		48,588		-		1,350,642
Total liabilities		1,223,371		807,998		52,569		398,356		102,007		(150,140)		2,434,161
Capital expenditure incurred1		1,168		637		25		208		348		-		2,386
At 31 December 2013
Loans and advances to customers		456,110		336,897		27,211		127,953		43,918		-		992,089
Interests in associates and joint ventures		169		13,822		2,575		74		-		-		16,640
Total assets		1,392,959		831,791		60,810		432,035		113,999		(160,276)		2,671,318
Customer accounts		581,933		548,483		38,683		140,809		51,389		-		1,361,297
Total liabilities		1,326,537		770,938		50,706		393,635		99,319		(160,276)		2,480,859
Capital expenditure incurred1		907		1,236		32		265		385		-		2,825

1   Expenditure incurred on property, plant and equipment and other intangible assets. Excludes assets acquired as part of business combinations and goodwill.

Other financial information

Net operating income by global business

		RBWM3	CMB3			GB&M		GPB		Other1		Intra-HSBC                  items		Total
		$m		$m		$m		$m		$m		$m		$m
2015
Net operating income2		23,516		14,870		18,233		2,172		7,604		(6,595)		59,800
- external		20,941		15,021		20,994		1,888		956		-		59,800
- internal		2,575		(151)		(2,761)		284		6,648		(6,595)		-
2014
Net operating income2		25,149		15,748		17,778		2,377		6,365		(6,169)		61,248
- external		23,202		16,369		20,055		1,980		(358)		-		61,248
- internal		1,947		(621)		(2,277)		397		6,723		(6,169)		-
2013
Net operating income2		27,453		15,652		19,176		2,439		5,651		(5,726)		64,645
- external		25,702		16,577		20,767		1,955		(356)		-		64,645
- internal		1,751		(925)		(1,591)		484		6,007		(5,726)		-

Information by country

		2015				2014				2013
		External net      operating            income2,4		Non-              current                 assets5		External net       operating            income2,4		Non-               current                 assets5		External net       operating            income2,4		Non-              current                 assets5
		$m		$m		$m		$m		$m		$m
UK		14,132		7,581		14,392		8,671		13,347		17,481
Hong Kong		14,447		10,979		12,656		12,376		12,031		12,170
USA		5,541		4,066		5,736		5,685		6,121		4,189
France		2,706		9,326		2,538		10,301		3,111		11,565
Brazil		3,546		28		4,817		1,403		5,364		1,715
Other countries		19,428		27,503		21,109		28,273		24,671		27,879
		59,893	59,483			61,248
Year ended/at 31 December		59,800		59,483		61,248		66,709		64,645		74,999

1   The main items reported in 'Other' are certain property activities, unallocated investment activities, centrally held investment companies, movements in fair value of own debt and HSBC's holding company and financing operations. 'Other' also includes gains and losses on the disposal of certain significant subsidiaries or business units.

2   Net operating income before loan impairment charges and other credit risk provisions, also referred to as revenue. 

3   In the first half of 2015, a portfolio of customers was transferred from CMB to RBWM in Latin America in order to better align the combined banking needs of the customers with our established global businesses. Comparative data have been re-presented accordingly.

4   External net operating income is attributed to countries on the basis of the location of the branch responsible for reporting the results or advancing the funds.

5   Non-current assets consist of property, plant and equipment, goodwill, other intangible assets, interests in associates and joint ventures and certain other assets expected to be recovered more than 12 months after the reporting period.

 

END

 

 

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