Interim Report - 6 of 25

RNS Number : 4083J

HSBC Holdings PLC

10 August 2012

 



Analysis by global business

HSBC profit/(loss) before tax and balance sheet data

	Half-year to 30 June 2012
	Retail      Banking and Wealth Management          US$m		Commercial      Banking          US$m		Global     Banking and Markets          US$m		Global Private     Banking          US$m		Other46         US$m		Inter-     segment elimination57         US$m		Total          US$m
Profit/(loss) before tax
Net interest income/ (expense) ......	10,774		5,144		3,625		672		(464)		(375)		19,376
Net fee income .	3,760		2,224		1,598		625		100		−		8,307
Trading income/(expense) excluding net interest income ..........	20		315		2,785		254		(240)		−		3,134
Net interest income on trading activities .......	14		6		950		5		35		375		1,385
Net trading income/ (expense)51 ....	34		321		3,735		259		(205)		375		4,519
Net income/(expense) from financial instruments designated at fair value .......	519		72		501		−		(2,275)		−		(1,183)
Gains less losses from financial investments ...	20		2		700		(4)		305		−		1,023
Dividend income ......................	13		10		55		4		21		−		103
Net earned insurance premiums ......	5,792		882		17		9		(4)		−		6,696
Gains on disposal of US branch network and cards business .	3,597		212		−		−		−		−		3,809
Other operating income ..........	738		208		117		84		2,860		(2,985)		1,022
Total operating income .........	25,247		9,075		10,348		1,649		338		(2,985)		43,672
Net insurance claims58 .........	(5,932)		(822)		(13)		(8)		−		−		(6,775)
Net operating income48 ......	19,315		8,253		10,335		1,641		338		(2,985)		36,897
Loan impairment charges and other credit risk provisions ...................... ......................	(3,273)		(924)		(598)		(4)		−		−		(4,799)
Net operating income .........	16,042		7,329		9,737		1,637		338		(2,985)		32,098
Employee expenses59 .....	(2,944)		(1,106)		(2,181)		(617)		(4,057)		−		(10,905)
Other operating income/ (expenses) .....	(7,274)		(2,630)		(2,892)		(496)		8		2,985		(10,299)
Total operating expenses ........	(10,218)		(3,736)		(5,073)		(1,113)		(4,049)		2,985		(21,204)
Operating profit/(loss) .	5,824		3,593		4,664		524		(3,711)		−		10,894
Share of profit in associates and joint ventures	586		836		383		3		35		−		1,843
Profit/(loss) before tax ....	6,410		4,429		5,047		527		(3,676)		−		12,737
	%		%		%		%		%				%
Share of HSBC's profit before tax ................	50.3		34.8		39.6		4.1		(28.8)				100.0
Cost efficiency ratio ..............	52.9		45.3		49.1		67.8		−				57.5
Balance sheet data47
	US$m		US$m		US$m		US$m		US$m				US$m
Loans and advances to customers (net) ..............	363,353		272,817		290,749		44,018		4,048				974,985
Total assets .......	526,069		351,157		1,905,455		119,271		179,703		(429,321)		2,652,334
Customer accounts ........	531,782		317,077		316,219		109,101		4,310				1,278,489

 

HSBC profit/(loss) before tax and balance sheet data (continued)

	Half-year to 30 June 2011
	Retail        Banking   and Wealth Management           US$m		Commercial        Banking           US$m		Global        Banking and Markets           US$m		Global Private        Banking           US$m		Other46          US$m		Inter-       segment elimination57          US$m		Total           US$m
Profit/(loss) before tax
Net interest income/ (expense) ......	12,086		4,814		3,603		729		(481)		(516)		20,235
Net fee income .	4,212		2,131		1,730		731		3		-		8,807
Trading income/(expense) excluding net interest income ..........	166		280		2,830		198		(243)		-		3,231
Net interest income on trading activities .......	22		16		997		9		21		516		1,581
Net trading income/ (expense)51 ....	188		296		3,827		207		(222)		516		4,812
Net income/(expense) from financial instruments designated at fair value .......	343		55		(212)		-		(286)		-		(100)
Gains less losses from financial investments ...	70		2		414		(3)		2		-		485
Dividend income ......................	14		8		39		4		22		-		87
Net earned insurance premiums ......	5,698		985		23		-		(6)		-		6,700
Other operating income ..........	688		263		280		21		2,997		(2,964)		1,285
Total operating income ..........	23,299		8,554		9,704		1,689		2,029		(2,964)		42,311
Net insurance claims58 .........	(5,727)		(874)		(15)		-		(1)		-		(6,617)
Net operating income48 .......	17,572		7,680		9,689		1,689		2,028		(2,964)		35,694
Loan impairment (charges)/ recoveries and other credit risk provisions ...................... ......................	(4,270)		(642)		(334)		(22)		2		-		(5,266)
Net operating income ..........	13,302		7,038		9,355		1,667		2,030		(2,964)		30,428
Employee expenses59 .....	(3,169)		(1,210)		(2,396)		(688)		(3,058)		-		(10,521)
Other operating expenses ........	(7,577)		(2,255)		(2,464)		(429)		(228)		2,964		(9,989)
Total operating expenses ........	(10,746)		(3,465)		(4,860)		(1,117)		(3,286)		2,964		(20,510)
Operating profit/(loss) ...	2,556		3,573		4,495		550		(1,256)		-		9,918
Share of profit in associates and joint ventures	570		616		316		2		52		-		1,556
Profit/(loss) before tax ......	3,126		4,189		4,811		552		(1,204)		-		11,474
	%		%		%		%		%				%
Share of HSBC's profit before tax ................	27.3		36.5		41.9		4.8		(10.5)				100.0
Cost efficiency ratio ..............	61.2		45.1		50.2		66.1		162.0				57.5
Balance sheet data47
	US$m		US$m		US$m		US$m		US$m				US$m
Loans and advances to customers (net) ..............	400,944		268,037		321,061		44,612		3,234				1,037,888
Total assets .......	557,952		336,094		1,942,835		122,888		189,912		(458,694)		2,690,987
Customer accounts ........	541,998		301,169		359,757		115,245		818				1,318,987

 

		Half-year to 31 December 2011
	Retail       Banking and Wealth Management           US$m			Commercial       Banking          US$m		Global       Banking              and       Markets          US$m		Global        Private       Banking          US$m		Other46          US$m		Inter-       segment elimination57          US$m		Total          US$m
Profit before tax
Net interest income/ (expense) ......	12,015			5,117		3,660		710		(430)		(645)		20,427
Net fee income . ......................	4,014			2,160		1,497		651		31		-		8,353
Trading income/(expense) excluding net interest income ..........	(728)			285		476		217		(198)		-		52
Net interest income on trading activities .......	21			3		901		7		65		645		1,642
Net trading income/ (expense)51 ....	(707)			288		1,377		224		(133)		645		1,694
Net income/(expense) from financial instruments designated at fair value ...	(1,104)			(22)		140		-		4,525		-		3,539
Gains less losses from financial investments ...	54			18		347		6		(3)		-		422
Dividend income ......................	13			7		36		3		3		-		62
Net earned insurance premiums ......	5,184			971		24		-		(7)		-		6,172
Other operating income ..........	219			220		297		9		3,130		(3,394)		481
Total operating income ..........	19,688			8,759		7,378		1,603		7,116		(3,394)		41,150
Net insurance claims58 .........	(3,727)			(828)		(10)		-		1		-		(4,564)
Net operating income48 .......	15,961			7,931		7,368		1,603		7,117		(3,394)		36,586
Loan impairment charges and other credit risk provisions ..... ......................	(5,049)			(1,096)		(650)		(64)		(2)		-		(6,861)
Net operating income ..........	10,912			6,835		6,718		1,539		7,115		(3,394)		29,725
Employee expenses59 .....	(3,369)			(974)		(1,800)		(663)		(3,839)		-		(10,645)
Other operating expenses ........	(7,087)			(2,782)		(3,062)		(486)		(367)		3,394		(10,390)
Total operating expenses ........	(10,456)			(3,756)		(4,862)		(1,149)		(4,206)		3,394		(21,035)
Operating profit	456			3,079		1,856		390		2,909		-		8,690
Share of profit/(loss) in associates and joint ventures	688			679		382		2		(43)		-		1,708
Profit before tax ......................	1,144			3,758		2,238		392		2,866		-		10,398
	%			%		%		%		%				%
Share of HSBC's profit before tax ......	11.0			36.1		21.5		3.8		27.6				100.0
Cost efficiency ratio ..............	65.5			47.4		66.0		71.7		59.1				57.5
Balance sheet data47
	US$m			US$m		US$m		US$m		US$m				US$m
Loans and advances to customers (net) ..............	357,907			262,039		276,463		41,856		2,164				940,429
Total assets .......	540,548			334,966		1,877,627		119,839		180,126		(497,527)		2,555,579
Customer accounts ........	529,017			306,174		306,454		111,814		466				1,253,925

For footnotes, see page 100.

Disposals, held for sale and run-off portfolios

In implementing our strategy, we have sold or agreed to sell a number of businesses across the Group. We expect these disposals to have a significant adverse effect on both the revenue and the profitability of the global businesses in the future, particularly RBWM due to the sale of the profitable US Card and Retail Services portfolio. In addition, two significant portfolios are being run

down. We expect the losses on these portfolios to continue to adversely affect RBWM and GB&M in the future.

The table below presents the historical results of these businesses. We do not expect the historical results to be indicative of future results because of disposal or run-off. Fixed allocated costs, included in total operating costs, will not necessarily be removed upon disposal and have been separately identified on page 38.

Summary income statements for disposals, held for sale and run-off portfolios^43,44

	Half-year to 30 June 2012
	Retail         Banking    and Wealth Management              US$m		Commercial         Banking              US$m		Global         Banking                  and          Markets              US$m		Global Private         Banking              US$m		Other              US$m
Net interest income .................................	2,812		75		28		5		(1)
Net fee income/(expense) ........................	411		(10)		(4)		2		-
Net trading income51 ...............................	(223)		2		22		1		1
Net income/(expense) from financial instruments designated at fair value .....	2		1		5		-		(513)
Gains less losses from financial investments ............................................................	15		1		(37)		-		-
Dividend income ......................................	2		-		-		-		-
Net earned insurance premiums ................	309		132		20		-		-
Other operating income ...........................	(8)		16		(3)		-		-
Total operating income ........................	3,320		217		31		8		(513)
Net insurance claims incurred and movement in liabilities to policyholders	(156)		(84)		(13)		-		-
Net operating income14 ........................	3,164		133		18		8		(513)
Loan impairment charges and other credit risk provisions .....................................	(1,927)		(1)		(268)		-		-
Net operating income ..........................	1,237		132		(250)		8		(513)
Total operating expenses .........................	(1,337)		(97)		(76)		(10)		(9)
Operating profit/(loss) .........................	(100)		35		(326)		(2)		(522)
Share of profit in associates and joint ventures ......................................	-		1		-		-		1
Profit/(loss) before tax .........................	(100)		36		(326)		(2)		(521)
By geographical region
Europe .....................................................	-		-		(369)		-		-
Hong Kong ..............................................	19		-		2		-		-
Rest of Asia-Pacific .................................	2		4		(1)		(2)		1
Middle East and North Africa ..................	10		-		25		-		-
North America ........................................	(159)		9		(9)		-		(513)
Latin America .........................................	28		23		26		-		(9)
Profit/(loss) before tax ............................	(100)		36		(326)		(2)		(521)
Gain on sale .............................................	3,837		247		18		67		130

For footnotes, see page 100.

 

END

 

 

IR UNUSRUVAWRAR