Annual Financial Report - 41 of 48

RNS Number : 3932B

HSBC Holdings PLC

03 April 2013

 



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
2012
Net interest income ........................	10,394		5,316		5,391		1,470		8,117		6,984		-		37,672
Net fee income ...............................	6,169		3,335		2,083		595		2,513		1,735		-		16,430
Net trading income/(expense) .........	2,707		1,463		1,053		390		507		971		-		7,091
Gains on disposal of US branch network, US cards business and Ping An ......................................	−		−		3,012		-		4,012		-		−		7,024
Other income .................................	(1,662)		2,308		2,045		(25)		(456)		1,261		(3,358)		113
Net operating income1 ....................	17,608		12,422		13,584		2,430		14,693		10,951		(3,358)		68,330
Loan impairment charges and other credit risk provisions ...................	(1,921)		(74)		(436)		(286)		(3,457)		(2,137)		-		(8,311)
Net operating income .....................	15,687		12,348		13,148		2,144		11,236		8,814		(3,358)		60,019
Employee compensation and benefits ....................................................	(8,070)		(2,572)		(3,140)		(652)		(3,243)		(2,814)		-		(20,491)
General and administrative expenses ....................................................	(10,059)		(1,860)		(2,433)		(459)		(5,413)		(3,117)		3,358		(19,983)
Depreciation and impairment of property, plant and equipment ....	(597)		(236)		(191)		(44)		(195)		(221)		-		(1,484)
Amortisation and impairment of intangible assets ..........................	(369)		(180)		(42)		(11)		(89)		(278)		-		(969)
Total operating expenses ................	(19,095)		(4,848)		(5,806)		(1,166)		(8,940)		(6,430)		3,358		(42,927)
Operating profit .............................	(3,408)		7,500		7,342		978		2,296		2,384		−		17,092
Share of profit in associates and joint ventures ......................................	(6)		82		3,106		372		3		-		-		3,557
Profit before tax .............................	(3,414)		7,582		10,448		1,350		2,299		2,384		-		20,649
Tax income/(expense) ....................	(173)		(1,095)		(1,616)		(254)		(1,313)		(864)		-		(5,315)
Profit for the year ..........................	(3,587)		6,487		8,832		1,096		986		1,520		-		15,334
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

	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
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 income/(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

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
2012
Net operating income ...........	15,687		12,348		13,148		2,144		11,236		8,814		(3,358)		60,019
External ............................	14,484		11,233		12,150		2,169		11,109		8,874		-		60,019
Inter-segment ...................	1,203		1,115		998		(25)		127		(60)		(3,358)		-
Profit for the year includes the following significant non-cash items:
Depreciation, amortisation and impairment .............	966		416		233		55		363		499		-		2,532
Loan impairment losses gross of recoveries and other credit risk provisions .....	2,329		105		586		361		3,587		2,489		-		9,457
Impairment of financial investments ..................	420		(21)		83		1		32		4		-		519
Changes in fair value of long-term debt and related derivatives ........................	(3,091)		-		(4)		(13)		(1,219)		-		-		(4,327)
Restructuring costs ................	292		21		107		27		219		94		-		760
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 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

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 2012
Loans and advances to customers (net) .................	463,440		173,613		138,119		28,086		140,756		53,609		-		997,623
Interests in associates and joint ventures ....................	178		224		15,085		2,262		85		-		-		17,834
Total assets ..........................	1,389,240		518,334		342,269		62,605		490,247		131,277		(241,434)		2,692,538
Customer accounts ................	555,009		346,208		183,621		39,583		149,037		66,556		-		1,340,014
Total liabilities .....................	1,327,487		496,640		308,815		53,498		450,480		113,923		(241,434)		2,509,409
Capital expenditure incurred1	925		336		208		102		248		458		-		2,277
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

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
2012
Net operating income3 ...........	33,861		16,551		18,273		3,172		2,332		(5,859)		68,330
External .............................	31,980		17,295		20,410		2,413		(3,768)		-		68,330
Internal ..............................	1,881		(744)		(2,137)		759		6,100		(5,859)		-
2011
Net operating income3 ...........	33,533		15,611		17,057		3,292		9,145		(6,358)		72,280
External .............................	32,024		15,362		19,881		2,207		2,806		-		72,280
Internal ..............................	1,509		249		(2,824)		1,085		6,339		(6,358)		-
2010
Net operating income3 ...........	33,611		13,834		18,912		3,093		4,660		(5,863)		68,247
External .............................	32,056		13,224		21,812		2,182		(1,027)		-		68,247
Internal ..............................	1,555		610		(2,900)		911		5,687		(5,863)		-

1  With effect from 1 March 2011, our Global Asset Management business was moved from Global Banking and Markets to Retail Banking and Wealth Management.

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.

3  Net operating income before loan impairment charges and other credit risk provisions, also referred to as revenue. The table previously reported net operating income after loan impairment charges and other credit risk provisions.

Information by country

	2012				2011				2010
	External net operating     income1,2		Non-      current         assets3		External net operating      income1,2		Non-        current           assets3		External net operating      income1,2		Non-        current           assets3
	US$m		US$m		US$m		US$m		US$m		US$m
UK ..............................................................	9,149		18,391		16,058		21,414		14,171		19,661
Hong Kong ..................................................	11,307		11,657		9,600		6,257		9,282		4,630
USA ............................................................	11,779		6,718		12,972		3,830		14,032		6,669
France .........................................................	2,881		11,074		2,747		10,790		3,345		10,914
Brazil ..........................................................	6,395		2,017		6,637		2,149		5,408		2,025
Other countries ...........................................	26,819		30,078		24,266		31,590		22,009		29,747
	68,330		79,935		72,280		76,030		68,247		73,646

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  Net operating income before loan impairment charges and other credit risk provisions, also referred to as revenue. The table previously reported net operating income after loan impairment charges and other credit risk provisions.

3  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.

13   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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