Annual Financial Report - 47 of 54 | RNS | Ticker

Annual Financial Report - 47 of 54

RNS Announcement

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 income^1,2	Non- current assets³	External net operating income^1,2	Non- current assets³	External net operating income^1,2	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.

This information is provided by RNS

The company news service from the London Stock Exchange

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RNS metadata

Title: Annual Financial Report - 47 of 54
Time: 17:01:04
Date: 20 Mar 2015
Category: Results
ID: 0581I