Annual Financial Report - 6 of 56

RNS Number : 6118S

HSBC Holdings PLC

18 March 2016

 

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.

 

 

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