Interim Report - 6 of 28

RNS Announcement

RNS Number : 8846L

HSBC Holdings PLC

16 August 2013

Analysis by global business

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

	Half-year to 30 June 2013
	Retail Banking and Wealth Management US$m	Commercial Banking US$m	Global Banking and Markets US$m	Global Private Banking US$m	Other⁵² US$m	Inter- segment elimination⁶² US$m	Total US$m
Profit/(loss) before tax

Net interest income/ (expense) ......	9,310	5,050	3,334	575	(376)	(74)	17,819

Net fee income .	3,586	2,337	1,818	602	61	−	8,404

Trading income/(expense) excluding net interest income ..........	275	343	4,577	226	(191)	−	5,230
Net interest income on trading activities .......	−	3	1,029	4	22	74	1,132

Net trading income/ (expense)⁵⁷ ....	275	346	5,606	230	(169)	74	6,362
Net income/(expense) from financial instruments designated at fair value .......	122	104	(961)	−	(462)	−	(1,197)
Gains less losses from financial investments ...	48	(6)	597	4	1,213	−	1,856
Dividend income ......................	11	8	65	6	17	−	107
Net earned insurance premiums ......	5,469	748	3	6	−	−	6,226
Other operating income/ (expense) ......	(92)	(19)	201	(267)	3,866	(2,743)	946

Total operating income .........	18,729	8,568	10,663	1,156	4,150	(2,743)	40,523

Net insurance claims⁶³ .........	(5,440)	(705)	(1)	(5)	−	−	(6,151)

Net operating income²² ......	13,289	7,863	10,662	1,151	4,150	(2,743)	34,372

Loan impairment charges and other credit risk provisions ...................... ......................	(1,768)	(1,160)	(174)	(14)	−	−	(3,116)

Net operating income .........	11,521	6,703	10,488	1,137	4,150	(2,743)	31,256

Employee expenses⁶⁴ .....	(2,651)	(1,163)	(1,882)	(381)	(3,419)	−	(9,496)
Other operating income/ (expenses) .....	(5,800)	(2,174)	(3,125)	(654)	107	2,743	(8,903)

Total operating expenses ........	(8,451)	(3,337)	(5,007)	(1,035)	(3,312)	2,743	(18,399)

Operating profit ............	3,070	3,366	5,481	102	838	−	12,857

Share of profit in associates and joint ventures	197	767	242	6	2	−	1,214

Profit before tax ................	3,267	4,133	5,723	108	840	−	14,071

	%	%	%	%	%		%
Share of HSBC's profit before tax ................	23.2	29.4	40.7	0.8	5.9		100.0
Cost efficiency ratio ..............	63.6	42.4	47.0	89.9	79.8		53.5

Balance sheet data⁵³
	US$m	US$m	US$m	US$m	US$m		US$m
Loans and advances to customers (net) ..............	362,836	288,842	276,181	39,161	2,362		969,382
Total assets .......	504,205	350,503	1,992,770	114,883	176,122	(493,167)	2,645,316
Customer accounts ........	547,140	327,612	347,716	92,360	1,354		1,316,182

	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	Other⁵² US$m	Inter- segment elimination⁶² US$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)⁵⁷ ....	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, US cards business and Ping An .........	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 claims⁶³ .........	(5,932)	(822)	(13)	(8)	−	−	(6,775)

Net operating income²² .......	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 expenses⁶⁴ .....	(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 data⁵³
	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 31 December 2012
	Retail Banking and Wealth Management US$m		Commercial Banking US$m	Global Banking and Markets US$m	Global Private Banking US$m	Other⁵² US$m	Inter- segment elimination⁶² US$m	Total US$m
Profit before tax

Net interest income/ (expense) ......	9,524		5,217	3,335	622	(266)	(136)	18,296

Net fee income . ......................	3,445		2,246	1,731	607	94	-	8,123

Trading income/(expense) excluding net interest income ..........	256		302	803	222	(309)	-	1,274
Net interest income/ (expense) on trading activities .......	14		10	1,152	9	(23)	136	1,298

Net trading income/ (expense)⁵⁷ ....	270		312	1,955	231	(332)	136	2,572
Net income/(expense) from financial instruments designated at fair value ...	1,374		178	593	-	(3,188)	-	(1,043)
Gains less losses from financial investments ...	76		20	30	1	39	-	166
Dividend income ......................	11		8	93	2	4	-	118
Net earned insurance premiums ......	5,399		904	8	33	4	-	6,348
Gains on disposal of US branch network, US cards business and Ping An .........	138		65	-	-	3,012	-	3,215
Other operating income ..........	734		328	196	67	2,627	(2,874)	1,078

Total operating income ..........	20,971		9,278	7,941	1,563	1,994	(2,874)	38,873

Net insurance claims⁶³ .........	(6,425)		(980)	(3)	(32)	-	-	(7,440)

Net operating income²² .......	14,546		8,298	7,938	1,531	1,994	(2,874)	31,433

Loan impairment charges and other credit risk provisions ..... ......................	(2,242)		(1,175)	(72)	(23)	-	-	(3,512)

Net operating income ..........	12,304		7,123	7,866	1,508	1,994	(2,874)	27,921

Employee expenses⁶⁴ .....	(2,588)		(1,141)	(1,583)	(298)	(3,976)	-	(9,586)
Other operating expenses ........	(6,963)		(2,721)	(3,251)	(732)	(1,344)	2874	(12,137)

Total operating expenses ........	(9,551)		(3,862)	(4,834)	(1,030)	(5,320)	2,874	(21,723)

Operating profit/(loss) ...	2,753		3,261	3,032	478	(3,326)	-	6,198

Share of profit in associates and joint ventures	412		845	441	4	12	-	1,714

Profit/(loss) before tax ......	3,165		4,106	3,473	482	(3,314)	-	7,912

	%		%	%	%	%		%
Share of HSBC's profit before tax ......	40.0		51.9	43.9	6.1	(41.9)		100.0
Cost efficiency ratio ..............	65.7		46.5	60.9	67.3	266.8		69.1

Balance sheet data⁵³
	US$m		US$m	US$m	US$m	US$m		US$m
Loans and advances to customers (net) ..............	378,040		288,033	283,842	45,213	2,495		997,623
Total assets .......	536,244		363,659	1,942,470	118,440	201,741	(470,016)	2,692,538
Customer accounts ........	562,151		338,405	332,115	105,772	1,571		1,340,014

For footnotes, see page 100.

This information is provided by RNS

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IR UNVKROUAWARR

RNS metadata

Title: Interim Report - 6 of 28
Time: 17:20:02
Date: 16 Aug 2013
Category: Results
ID: 8846L