Annual Financial Report - 36 of 44

RNS Number : 1527A

HSBC Holdings PLC

27 March 2012

 



Profit/(loss) for the year

	Europe		Hong      Kong		Rest of      Asia-    Pacific		MENA		North America		Latin America		Intra-    HSBC      items		Total
	US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m
2011
Net interest income ........................	11,001		4,691		5,102		1,432		11,480		6,956		-		40,662
Net fee income ...............................	6,236		3,097		2,111		627		3,308		1,781		-		17,160
Net trading income/(expense) .........	2,161		1,189		1,658		482		(362)		1,378		-		6,506
Other income .................................	4,848		1,705		1,842		66		1,574		1,338		(3,421)		7,952
Net operating income1 ....................	24,246		10,682		10,713		2,607		16,000		11,453		(3,421)		72,280
Loan impairment charges and other credit risk provisions ...................	(2,512)		(156)		(267)		(293)		(7,016)		(1,883)		-		(12,127)
Net operating income .....................	21,734		10,526		10,446		2,314		8,984		9,570		(3,421)		60,153
Employee compensation and benefits ....................................................	(7,621)		(2,610)		(3,179)		(659)		(3,928)		(3,169)		-		(21,166)
General and administrative expenses ....................................................	(8,473)		(1,724)		(2,378)		(458)		(4,404)		(3,443)		3,421		(17,459)
Depreciation and impairment of property, plant and equipment ....	(581)		(245)		(198)		(36)		(261)		(249)		-		(1,570)
Amortisation and impairment of intangible assets ..........................	(394)		(179)		(51)		(6)		(326)		(394)		-		(1,350)
Total operating expenses ................	(17,069)		(4,758)		(5,806)		(1,159)		(8,919)		(7,255)		3,421		(41,545)
Operating profit .............................	4,665		5,768		4,640		1,155		65		2,315		-		18,608
Share of profit in associates and joint ventures ......................................	6		55		2,831		337		35		-		-		3,264
Profit before tax .............................	4,671		5,823		7,471		1,492		100		2,315		-		21,872
Tax income/(expense) ....................	(1,589)		(1,043)		(1,315)		(266)		958		(673)		-		(3,928)
Profit for the year ..........................	3,082		4,780		6,156		1,226		1,058		1,642		-		17,944
2010
Net interest income ........................	11,250		4,246		3,828		1,367		12,439		6,311		-		39,441
Net fee income ...............................	6,371		2,962		1,932		677		3,664		1,749		-		17,355
Net trading income .........................	2,863		1,312		1,618		370		314		733		-		7,210
Other income/(expense) .................	2,266		1,682		1,854		(4)		630		938		(3,125)		4,241
Net operating income1 ....................	22,750		10,202		9,232		2,410		17,047		9,731		(3,125)		68,247
Loan impairment charges and other credit risk provisions ...................	(3,020)		(114)		(439)		(627)		(8,295)		(1,544)		-		(14,039)
Net operating income .....................	19,730		10,088		8,793		1,783		8,752		8,187		(3,125)		54,208
Employee compensation and benefits ....................................................	(7,875)		(2,341)		(2,719)		(579)		(3,672)		(2,650)		-		(19,836)
General and administrative expenses ....................................................	(6,499)		(1,686)		(2,181)		(450)		(4,179)		(3,286)		3,125		(15,156)
Depreciation and impairment of property, plant and equipment ....	(719)		(237)		(189)		(42)		(288)		(238)		-		(1,713)
Amortisation and impairment of intangible assets ..........................	(352)		(167)		(54)		(7)		(183)		(220)		-		(983)
Total operating expenses ................	(15,445)		(4,431)		(5,143)		(1,078)		(8,322)		(6,394)		3,125		(37,688)
Operating profit .............................	4,285		5,657		3,650		705		430		1,793		-		16,520
Share of profit in associates and joint ventures ......................................	17		35		2,252		187		24		2		-		2,517
Profit before tax .............................	4,302		5,692		5,902		892		454		1,795		-		19,037
Tax expense ...................................	(1,006)		(987)		(962)		(138)		(1,180)		(573)		-		(4,846)
Profit/(loss) for the year .................	3,296		4,705		4,940		754		(726)		1,222		-		14,191

Profit/(loss) for the year (continued)

	Europe		Hong       Kong		Rest of       Asia-     Pacific		MENA		North America		Latin America		Intra-      HSBC       items		Total
	US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m
2009
Net interest income ........................	12,268		4,195		3,539		1,485		13,670		5,573		-		40,730
Net fee income ...............................	6,267		2,669		1,557		625		4,817		1,729		-		17,664
Net trading income .........................	5,459		1,225		1,606		394		331		848		-		9,863
Other income/(expense) .................	(450)		1,378		1,301		90		(2,513)		874		(2,756)		(2,076)
Net operating income1 ....................	23,544		9,467		8,003		2,594		16,305		9,024		(2,756)		66,181
Loan impairment charges and other credit risk provisions ...................	(5,568)		(500)		(896)		(1,334)		(15,664)		(2,526)		-		(26,488)
Net operating income .....................	17,976		8,967		7,107		1,260		641		6,498		(2,756)		39,693
Employee compensation and benefits ....................................................	(7,174)		(2,102)		(2,363)		(545)		(4,085)		(2,199)		-		(18,468)
General and administrative expenses ....................................................	(5,775)		(1,502)		(1,872)		(419)		(3,794)		(2,786)		2,756		(13,392)
Depreciation and impairment of property, plant and equipment ....	(762)		(224)		(172)		(31)		(329)		(207)		-		(1,725)
Amortisation and impairment of intangible assets ..........................	(277)		(118)		(43)		(6)		(183)		(183)		-		(810)
Total operating expenses ................	(13,988)		(3,946)		(4,450)		(1,001)		(8,391)		(5,375)		2,756		(34,395)
Operating profit/(loss) ....................	3,988		5,021		2,657		259		(7,750)		1,123		-		5,298
Share of profit in associates and joint ventures ..............................	21		8		1,543		196		12		1		-		1,781
Profit/(loss) before tax ...................	4,009		5,029		4,200		455		(7,738)		1,124		-		7,079
Tax income/(expense) ....................	(776)		(869)		(753)		(94)		2,285		(178)		-		(385)
Profit/(loss) for the year .................	3,233		4,160		3,447		361		(5,453)		946		-		6,694

1  Net operating income before loan impairment charges and other credit risk provisions.

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

	Europe		Hong        Kong		Rest of        Asia-     Pacific		MENA		North America		Latin America		Intra-      HSBC       items		Total
	US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m
2011
Net operating income ...........	21,734		10,526		10,446		2,314		8,984		9,570		(3,421)		60,153
External ............................	20,676		9,442		9,396		2,316		8,744		9,579		-		60,153
Inter-segment ...................	1,058		1,084		1,050		(2)		240		(9)		(3,421)		-
Profit for the year includes the following significant non-cash items:
Depreciation, amortisation and impairment .............	975		424		249		42		802		643		-		3,135
Loan impairment losses gross of recoveries and other credit risk provisions .....	3,085		202		453		395		7,147		2,271		-		13,553
Impairment of financial investments ..................	705		55		25		13		9		1		-		808
Changes in fair value of long-term debt and related derivatives ........................	3,180		-		4		10		967		-		-		4,161
Restructuring costs ................	357		47		34		27		73		259		-		797
2010
Net operating income ...........	19,730		10,088		8,793		1,783		8,752		8,187		(3,125)		54,208
External ............................	18,881		9,170		7,728		1,774		8,504		8,151		-		54,208
Inter-segment ...................	849		918		1,065		9		248		36		(3,125)		-
Profit/(loss) for the year includes the following significant non-cash items:
Depreciation, amortisation and impairment .............	1,071		404		243		49		576		458		-		2,801
Loan impairment losses gross of recoveries and other credit risk provisions .....	3,303		169		615		684		8,476		1,812		-		15,059
Impairment of financial investments ..................	33		41		4		5		21		1		-		105
Changes in fair value of long-term debt and related derivatives ........................	(365)		(2)		(2)		-		111		-		-		(258)
Restructuring costs ................	86		15		36		5		13		3		-		158
2009
Net operating income ...........	17,976		8,967		7,107		1,260		641		6,498		(2,756)		39,693
External ............................	16,734		8,352		6,056		1,283		767		6,501		-		39,693
Inter-segment ...................	1,242		615		1,051		(23)		(126)		(3)		(2,756)		-
Profit/(loss) for the year includes the following significant non-cash items:
Depreciation, amortisation and impairment .............	1,039		342		215		37		515		390		-		2,538
Loan impairment losses gross of recoveries and other credit risk provisions .....	5,833		534		1,028		1,361		15,757		2,865		-		27,378
Impairment of financial investments ..................	137		129		50		4		38		-		-		358
Changes in fair value of long-term debt and related derivatives ........................	(2,746)		(3)		(1)		-		(3,497)		-		-		(6,247)
Restructuring costs ................	79		7		42		2		153		17		-		300

Balance sheet information

	Europe		Hong        Kong		Rest of        Asia-     Pacific		MENA		North America		Latin America		Intra-      HSBC       items		Total
	US$m		US$m		US$m		US$m		US$m		US$m		US$m		US$m
At 31 December 2011
Loans and advances to customers (net) .................	434,336		157,665		123,868		25,875		142,747		55,938		-		940,429
Interests in associates and joint ventures ....................	150		196		17,916		2,036		101		-		-		20,399
Total assets ..........................	1,281,945		473,024		317,816		57,464		504,302		144,889		(223,861)		2,555,579
Customer accounts ................	493,404		315,345		174,012		36,422		155,982		78,760		-		1,253,925
Total liabilities .....................	1,224,386		458,179		288,485		49,005		464,990		128,302		(223,861)		2,389,486
Capital expenditure incurred1	1,177		432		207		29		342		951		-		3,138
At 31 December 2010
Loans and advances to customers (net) .................	435,799		140,691		108,731		24,626		190,532		57,987		-		958,366
Interests in associates and joint ventures ....................	186		207		15,035		1,661		104		5		-		17,198
Total assets ..........................	1,249,527		429,565		278,062		52,757		492,487		139,938		(187,647)		2,454,689
Customer accounts ................	491,563		297,484		158,155		33,511		158,486		88,526		-		1,227,725
Total liabilities .....................	1,189,996		422,101		246,989		45,379		459,301		123,655		(187,647)		2,299,774
Capital expenditure incurred1	865		836		168		46		774		788		-		3,477
At 31 December 2009
Loans and advances to customers (net) .................	439,481		99,381		80,043		22,844		206,853		47,629		-		896,231
Interests in associates and joint ventures ....................	147		157		11,083		1,573		42		9		-		13,011
Total assets ..........................	1,268,600		399,243		222,139		48,107		475,014		115,967		(164,618)		2,364,452
Customer accounts ................	495,019		275,441		133,999		32,529		149,157		72,889		-		1,159,034
Total liabilities .....................	1,213,907		384,912		203,243		42,325		447,530		101,492		(164,618)		2,228,791
Capital expenditure incurred1	983		290		159		102		658		540		-		2,732

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

	RBWM1	CMB			GB&M1		GPB		Other2		Intra-       HSBC          items		Total
	US$m		US$m		US$m		US$m		US$m		US$m		US$m
2011
Net operating income ............	24,214		13,873		16,073		3,206		9,145		(6,358)		60,153
External .............................	22,705		13,624		18,897		2,121		2,806		-		60,153
Internal ..............................	1,509		249		(2,824)		1,085		6,339		(6,358)		-
2010
Net operating income ............	22,352		12,029		17,922		3,105		4,663		(5,863)		54,208
External .............................	20,797		11,419		20,822		2,194		(1,024)		-		54,208
Internal ..............................	1,555		610		(2,900)		911		5,687		(5,863)		-
2009
Net operating income ............	16,395		9,571		17,770		2,984		(2,031)		(4,996)		39,693
External .............................	14,847		9,285		20,340		2,275		(7,054)		-		39,693
Internal ..............................	1,548		286		(2,570)		709		5,023		(4,996)		-

1  With effect from 1 March 2011, our Global Asset Management business was moved from GB&M to RBWM. This resulted in a reallocation between the two of US$1,035m and US$882m in net operating income in 2010 and 2009, respectively. The numbers have been adjusted accordingly.

2  The main items reported in the 'Other' category 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. The 'Other' category also includes gains and losses on the disposal of certain significant subsidiaries or business units.

Information by country

	2011				2010				2009
	External net   operating       income1		Non-      current         assets2		External net     operating        income1		Non-        current           assets2		External net     operating        income1		Non-        current           assets2
	US$m		US$m		US$m		US$m		US$m		US$m
UK ..............................................................	13,940		21,414		11,467		19,661		9,958		19,704
Hong Kong ..................................................	9,442		6,257		9,170		4,630		8,352		3,374
USA ............................................................	6,193		3,830		6,098		6,669		(1,042)		5,499
France .........................................................	2,570		10,790		3,185		10,914		3,322		11,782
Brazil ..........................................................	5,282		2,149		4,506		2,025		3,368		1,868
Other countries ...........................................	22,726		31,590		19,782		29,747		15,735		25,557
	60,153		76,030		54,208		73,646		39,693		67,784

1  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.

2  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 twelve months after the reporting period.

14   Analysis of financial assets and liabilities by measurement basis

Financial assets and financial liabilities are measured on an ongoing basis either at fair value or at amortised cost. The summary of significant accounting policies in Note 2 describes how the classes of financial instruments are measured, and how income and expenses, including fair value gains and losses, are recognised. The following table analyses the carrying amounts of the financial assets and liabilities by category as defined in IAS 39 and by balance sheet heading.

 

END

 

 

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