Annual Financial Report - 47 of 54

RNS Number : 0581I

HSBC Holdings PLC

20 March 2015

 



Profit/(loss) for the year (continued)

		Europe		Asia		MENA		North          America		Latin          America		Intra-    HSBC items		Total
		US$m		US$m		US$m		US$m		US$m		US$m		US$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
2012
Net interest income		10,394		10,707		1,470		8,117		6,984		-		37,672
Net fee income		6,169		5,418		595		2,513		1,735		-		16,430
Net trading income		2,707		2,516		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/(expense)		(1,662)		3,679		(25)		(456)		1,261		(2,684)		113
Net operating income1		17,608		25,332		2,430		14,693		10,951		(2,684)		68,330
Loan impairment charges and other credit risk provisions		(1,921)		(510)		(286)		(3,457)		(2,137)		-		(8,311)
Net operating income		15,687		24,822		2,144		11,236		8,814		(2,684)		60,019
Employee compensation and benefits		(8,070)		(5,712)		(652)		(3,243)		(2,814)		-		(20,491)
General and administrative expenses		(10,059)		(3,619)		(459)		(5,413)		(3,117)		2,684		(19,983)
Depreciation and impairment of property, plant and equipment		(597)		(427)		(44)		(195)		(221)		-		(1,484)
Amortisation and impairment of intangible assets		(369)		(222)		(11)		(89)		(278)		-		(969)
Total operating expenses		(19,095)		(9,980)		(1,166)		(8,940)		(6,430)		2,684		(42,927)
Operating profit/(loss)		(3,408)		14,842		978		2,296		2,384		-		17,092
Share of profit/(loss) in associates and joint ventures		(6)		3,188		372		3		-		-		3,557
Profit/(loss) before tax		(3,414)		18,030		1,350		2,299		2,384		-		20,649
Tax expense		(173)		(2,711)		(254)		(1,313)		(864)		-		(5,315)
Profit/(loss) for the year		(3,587)		15,319		1,096		986		1,520		-		15,334

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
		US$m		US$m		US$m		US$m		US$m		US$m		US$m
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
Impairment of financial investments		(256)		286		-		14		10		-		54
Changes in fair value of long-term debt and related derivatives		614		(4)		(3)		(99)		-		-		508
Restructuring costs		117		7		2		28		57		-		211
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
Impairment of financial investments		(61)		4		-		15		6		-		(36)
Changes in fair value of long-term debt and related derivatives		(936)		(1)		(3)		(288)		-		-		(1,228)
Restructuring costs		211		79		3		100		42		-		435
2012
Net operating income1		17,608		25,332		2,430		14,693		10,951		(2,684)		68,330
- external		16,405		23,893		2,455		14,566		11,011		-		68,330
- inter-segment		1,203		1,439		(25)		127		(60)		(2,684)		-
Profit for the year includes the following significant non-cash items:
Depreciation, amortisation and impairment		966		649		55		363		499		-		2,532
Loan impairment losses gross of recoveries and other credit risk provisions		2,329		691		361		3,587		2,489		-		9,457
Impairment of financial investments		420		62		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		128		27		219		94		-		760

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
		US$m		US$m		US$m		US$m		US$m		US$m		US$m
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
At 31 December 2012
Loans and advances to customers		436,141		310,665		28,086		134,475		53,605		-		962,972
Interests in associates and joint ventures		178		15,309		2,262		85		-		-		17,834
Total assets		1,389,240		804,709		62,605		490,247		131,277		(185,540)		2,692,538
Customer accounts		535,215		529,754		39,583		141,700		65,144		-		1,311,396
Total liabilities		1,327,487		749,561		53,498		450,480		113,923		(185,540)		2,509,409
Capital expenditure incurred1		925		544		102		248		458		-		2,277

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

		RBWM	CMB			GB&M		GPB		Other1		Intra-     HSBC items		Total
		US$m		US$m		US$m		US$m		US$m		US$m		US$m
2014
Net operating income2		24,594		16,303		17,778		2,377		6,365		(6,169)		61,248
- external		22,692		16,879		20,055		1,980		(358)		-		61,248
- internal		1,902		(576)		(2,277)		397		6,723		(6,169)		-
2013
Net operating income2		26,740		16,365		19,176		2,439		5,651		(5,726)		64,645
- external		25,038		17,241		20,767		1,955		(356)		-		64,645
- internal		1,702		(876)		(1,591)		484		6,007		(5,726)		-
2012
Net operating income2		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)		-

1   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.

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

Information by country

		2014				2013				2012
		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		14,392		8,671		13,347		17,481		9,149		18,391
Hong Kong		12,656		12,376		12,031		12,170		11,307		11,657
USA		5,736		5,685		6,121		4,189		11,779		6,718
France		2,538		10,301		3,111		11,565		2,881		11,074
Brazil		4,817		1,403		5,364		1,715		6,395		2,017
Other countries		21,109		28,273		24,671		27,879		26,819		30,078
		61,248
Year ended/at 31 December		61,248		66,709		64,645		74,999		68,330		79,935

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.

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 12 months after the reporting period.

Financial information presented on our previous geographical operating segments

		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
Net operating income1
2014
Net operating income		21,571		13,844		10,546		2,548		8,152		8,272		(3,685)		61,248
- external		20,450		12,656		9,415		2,524		7,937		8,266		-		61,248
- inter-segment		1,121		1,188		1,131		24		215		6		(3,685)		-
2013
Net operating income		20,967		13,203		11,978		2,503		8,803		10,568		(3,377)		64,645
- external		20,108		12,031		10,822		2,497		8,569		10,618		-		64,645
- inter-segment		859		1,172		1,156		6		234		(50)		(3,377)		-
2012
Net operating income		17,608		12,422		13,584		2,430		14,693		10,951		(3,358)		68,330
- external		16,405		11,307		12,586		2,455		14,566		11,011		-		68,330
- inter-segment		1,203		1,115		998		(25)		127		(60)		(3,358)		-
Profit/(loss) before tax
Year to:
31 December 2014		596		8,142		6,483		1,826		1,417		216		-		18,680
31 December 2013		1,825		8,089		7,764		1,694		1,221		1,972		-		22,565
31 December 2012		(3,414)		7,582		10,448		1,350		2,299		2,384		-		20,649
Balance sheet information
At 31 December 2014
Total assets		1,290,926		587,534		359,757		62,417		436,859		115,354		(218,708)		2,634,139
Total liabilities		1,223,371		556,388		320,178		52,569		398,356		102,007		(218,708)		2,434,161
At 31 December 2013
Total assets		1,392,959		555,413		335,937		60,810		432,035		113,999		(219,835)		2,671,318
Total liabilities		1,326,537		523,579		306,918		50,706		393,635		99,319		(219,835)		2,480,859
At 31 December 2012
Total assets		1,389,240		518,334		342,269		62,605		490,247		131,277		(241,434)		2,692,538
Total liabilities		1,327,487		496,640		308,815		53,498		450,480		113,923		(241,343)		2,509,409

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

 

END

 

 

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