Interim Report - 6 of 28

RNS Announcement

RNS Number : 1934P

HSBC Holdings PLC

15 August 2014

Analysis by global business

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

	Half-year to 30 June 2014
	Retail Banking and Wealth Management US$m	Commercial Banking US$m	Global Banking and Markets US$m	Global Private Banking US$m	Other⁵⁰ US$m	Inter- segment elimination⁶⁵ US$m	Total US$m
Profit/(loss) before tax

Net interest income/ (expense) ......	8,427	5,184	3,602	536	(221)	(123)	17,405

Net fee income .	3,291	2,413	1,939	533	1	-	8,177

Trading income/(expense) excluding net interest income ..........	(14)	340	2,001	161	(126)	-	2,362
Net interest income/ (expense) on trading activities .......	1	(4)	789	(2)	6	123	913

Net trading income/ (expense)⁵⁹ ....	(13)	336	2,790	159	(120)	123	3,275
Net income/(expense) from financial instruments designated at fair value .......	1,073	124	743	1	(281)	-	1,660
Gains less losses from financial investments ...	8	24	462	12	440	-	946
Dividend income ......................	15	14	32	3	24	-	88
Net earned insurance premiums ......	5,480	636	2	19	-	-	6,137
Other operating income/ (expense) ......	378	81	222	(7)	2,814	(2,950)	538

Total operating income .........	18,659	8,812	9,792	1,256	2,657	(2,950)	38,226

Net insurance claims⁶⁶ .........	(6,336)	(696)	(1)	(26)	-	-	(7,059)

Net operating income¹³ ......	12,323	8,116	9,791	1,230	2,657	(2,950)	31,167

Loan impairment (charges)/ recoveries and other credit risk provisions ...................... ......................	(1,225)	(562)	(49)	(6)	1	-	(1,841)

Net operating income .........	11,098	7,554	9,742	1,224	2,658	(2,950)	29,326

Employee expenses⁶⁷ .....	(2,500)	(1,191)	(1,806)	(363)	(4,118)	-	(9,978)
Other operating income/ (expense) ......	(5,769)	(2,397)	(3,152)	(505)	585	2,950	(8,288)

Total operating expenses ........	(8,269)	(3,588)	(4,958)	(868)	(3,533)	2,950	(18,266)

Operating profit/(loss) .	2,829	3,966	4,784	356	(875)	-	11,060

Share of profit in associates and joint ventures	216	805	249	8	2	-	1,280

Profit/(loss) before tax ....	3,045	4,771	5,033	364	(873)	-	12,340

	%	%	%	%	%		%
Share of HSBC's profit before tax ................	24.7	38.7	40.8	2.9	(7.1)		100.0
Cost efficiency ratio ..............	67.1	44.2	50.6	70.6	133.0		58.6

Balance sheet data⁵¹
	US$m	US$m	US$m	US$m	US$m		US$m
Loans and advances to customers (net)³ ............	380,108	316,246	303,133	45,131	2,623		1,047,241
Total assets .......	523,729	377,374	2,043,767	99,379	170,802	(461,458)	2,753,593
Customer accounts³ .......	597,714	366,171	360,732	89,641	1,447		1,415,705

	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	Other⁵⁰ US$m	Inter- segment elimination⁶⁵ US$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)⁵⁹ ....	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 claims⁶⁶ .........	(5,440)	(705)	(1)	(5)	−	−	(6,151)

Net operating income¹³........	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 expenses⁶⁷ .....	(2,651)	(1,163)	(1,882)	(381)	(3,419)	−	(9,496)
Other operating income/ (expense) ......	(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 data⁵¹
	US$m	US$m	US$m	US$m	US$m		US$m
Loans and advances to customers (net)³ ............	358,464	286,539	251,768	39,161	2,362		938,294
Total assets .......	504,205	350,503	1,992,770	114,883	176,122	(493,167)	2,645,316
Customer accounts³ .......	547,140	327,612	298,501	92,298	1,354		1,266,905

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

	Half-year to 31 December 2013
	Retail Banking and Wealth Management US$m	Commercial Banking US$m	Global Banking and Markets US$m	Global Private Banking US$m	Other⁵⁰ US$m	Inter- segment elimination⁶⁵ US$m	Total US$m
Profit before tax

Net interest income/ (expense) ......	9,029	5,150	3,432	571	(361)	(101)	17,720

Net fee income . ......................	3,435	2,380	1,664	548	3	−	8,030

Trading income excluding net interest income ..........	414	306	376	164	153	−	1,413
Net interest income/ (expense) on trading activities .......	(3)	(3)	798	−	22	101	915

Net trading income⁵⁹ .......	411	303	1,174	164	175	101	2,328
Net income/(expense) from financial instruments designated at fair value ...	1,516	228	1,560	4	(1,342)	(1)	1,965
Gains less losses from financial investments ...	7	7	150	(7)	(1)	−	156
Dividend income ......................	10	7	64	2	132	−	215
Net earned insurance premiums ......	5,074	627	3	10	−	−	5,714
Other operating income ..........	636	640	469	28	2,895	(2,982)	1,686

Total operating income ..........	20,118	9,342	8,516	1,320	1,501	(2,983)	37,814

Net insurance claims⁶⁶ .........	(6,667)	(840)	(2)	(32)	−	−	(7,541)

Net operating income¹³ .......	13,451	8,502	8,514	1,288	1,501	(2,983)	30,273

Loan impairment charges and other credit risk provisions ..... ......................	(1,459)	(1,224)	(33)	(17)	−	−	(2,733)

Net operating income ..........	11,992	7,278	8,481	1,271	1,501	(2,983)	27,540

Employee expenses⁶⁷ .....	(2,568)	(1,164)	(1,667)	(395)	(3,906)	−	(9,700)
Other operating expenses ........	(6,229)	(2,548)	(3,286)	(799)	(578)	2,983	(10,457)

Total operating expenses ........	(8,797)	(3,712)	(4,953)	(1,194)	(4,484)	2,983	(20,157)

Operating profit/(loss) ...	3,195	3,566	3,528	77	(2,983)	−	7,383

Share of profit/(loss) in associates and joint ventures	187	742	190	8	(16)	−	1,111

Profit/(loss) before tax ......	3,382	4,308	3,718	85	(2,999)	−	8,494

	%	%	%	%	%		%
Share of HSBC's profit before tax ......	39.8	50.7	43.8	1.0	(35.3)		100.0
Cost efficiency ratio ..............	65.4	43.7	58.2	92.7	298.7		66.6

Balance sheet data⁵¹
	US$m	US$m	US$m	US$m	US$m		US$m
Loans and advances to customers (net)³ ............	375,086	297,852	272,473	44,224	2,454		992,089
Total assets .......	517,085	360,623	1,975,509	97,655	171,812	(451,366)	2,671,318
Customer accounts³ .......	579,994	354,298	328,800	96,770	1,435		1,361,297

For footnotes, see page 96.

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RNS metadata

Title: Interim Report - 6 of 28
Time: 17:20:01
Date: 15 Aug 2014
Category: Results
ID: 1934P