Interim Report - 6 of 24 | RNS

Analysis by global business

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

Half-year to 30 June 2015

Retail Banking
and Wealth

Management
$m

Commercial

Banking
$m

                 Global
             Banking
and Markets
                       $m

                 Global
Private
             Banking
                       $m

Other¹³

Inter-
segment

elimination¹⁹

Total
$m

Profit before tax

Net interest income/(expense)

8,054

4,892

3,629

454

(397)

(188)

16,444

Net fee income/(expense)

3,334

2,168

1,711

527

(15)

−

7,725

- trading income/(expense) excluding net interest income

295

308

2,880

175

(138)

3,520

- net interest income/(expense)
on trading activities

(5)

(7)

863

(1)

188

1,053

Net trading income/(expense)⁶

290

301

3,743

174

(123)

188

4,573

Net income from financial instruments designated at fair value

1,237

128

638

−

663

2,666

Gains less losses from financial investments

402

1,370

1,874

Dividend income

Net insurance premium income

4,950

624

−

5,607

Other operating income

609

100

120

3,163

(3,158)

836

Total operating income

18,536

8,250

10,263

1,215

4,687

(3,158)

39,793

Net insurance claims

(6,094)

(716)

(2)

(38)

−

(6,850)

Net operating income¹⁵

12,442

7,534

10,261

1,177

4,687

(3,158)

32,943

Loan impairment (charges)/
recoveries and other credit
risk provisions

(934)

(511)

(5)

(1,439)

Net operating income

11,508

7,023

10,272

1,172

4,687

(3,158)

31,504

- employee expenses²⁰

(2,571)

(1,171)

(1,994)

(350)

(3,955)

(10,041)

- other operating income/ (expense)

(5,783)

(2,150)

(3,796)

(651)

3,158

(9,146)

Total operating expenses

(8,354)

(3,321)

(5,790)

(1,001)

(3,879)

3,158

(19,187)

Operating profit

3,154

3,702

4,482

171

808

12,317

Share of profit in associates
and joint ventures

208

821

272

1,311

Profit before tax

3,362

4,523

4,754

180

809

13,628

Share of HSBC's profit before tax

24.7

33.2

34.9

1.3

5.9

100.0

Cost efficiency ratio

67.1

44.1

56.4

85.0

82.8

58.2

Balance sheet data¹⁴

Loans and advances to customers (net)

352,189

310,256

244,321

44,242

2,977

953,985

Reported in held for sale

6,640

10,325

4,016

−

21,024

Total assets

497,199

378,641

1,790,461

85,740

167,946

(348,274)

2,571,713

Customer accounts

589,715

362,069

299,181

82,878

1,957

1,335,800

Reported in held for sale

9,549

4,694

3,438

1,751

−

19,432

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

Half-year to 30 June 2014

Retail Banking

and Wealth

Management⁹

Commercial

Banking⁹

                 Global
              Banking
and Markets
                       $m

                 Global
Private
              Banking
                       $m

Other¹³

Inter-
segment

elimination¹⁹

Total
$m

Profit/(loss) before tax

Net interest income/(expense)

8,617

4,994

3,602

536

(221)

(123)

17,405

Net fee income

3,377

2,327

1,939

533

8,177

- trading income/(expense) excluding net interest income

(12)

338

2,001

161

(126)

2,362

- net interest income/(expense)
on trading activities

(4)

789

(2)

123

913

Net trading income/(expense)⁶

(11)

334

2,790

159

(120)

123

3,275

Net income/(expense) from financial instruments designated at fair value

1,078

119

743

(281)

1,660

Gains less losses from financial investments

462

440

946

Dividend income

Net insurance premium income

5,501

615

6,137

Other operating income/(expense)

378

222

(7)

2,814

(2,950)

538

Total operating income

18,962

8,509

9,792

1,256

2,657

(2,950)

38,226

Net insurance claims

(6,346)

(686)

(1)

(26)

(7,059)

Net operating income¹⁵

12,616

7,823

9,791

1,230

2,657

(2,950)

31,167

Loan impairment (charges)/
recoveries and other credit
risk provisions

(1,299)

(488)

(49)

(6)

(1,841)

Net operating income

11,317

7,335

9,742

1,224

2,658

(2,950)

29,326

- employee expenses²⁰

(2,544)

(1,147)

(1,806)

(363)

(4,118)

(9,978)

- other operating income/ (expense)

(5,986)

(2,180)

(3,152)

(505)

585

2,950

(8,288)

Total operating expenses

(8,530)

(3,327)

(4,958)

(868)

(3,533)

2,950

(18,266)

Operating profit/(loss)

2,787

4,008

4,784

356

(875)

11,060

Share of profit in associates
and joint ventures

215

806

249

1,280

Profit/(loss) before tax

3,002

4,814

5,033

364

(873)

12,340

Share of HSBC's profit before tax

24.4

39.0

40.8

2.9

(7.1)

100.0

Cost efficiency ratio

67.6

42.5

50.6

70.6

133.0

58.6

Balance sheet data¹⁴

Loans and advances to customers (net)

381,353

315,001

303,133

45,131

2,623

1,047,241

Reported in held for sale

380

157

972

1,591

Total assets

526,089

375,014

2,043,767

99,379

170,802

(461,458)

2,753,593

Customer accounts

600,650

363,235

360,732

89,641

1,447

1,415,705

Reported in held for sale

181

485

373

3,841

4,880

Half-year to 31 December 2014

Retail Banking

and Wealth

Management⁹

Commercial

Banking⁹

Global

Banking
and Markets

                 Global
                Private
              Banking
                       $m

Other¹³

Inter-
segment

elimination¹⁹

Total
$m

Profit/(loss) before tax

Net interest income/(expense)

8,513

5,164

3,420

458

(280)

17,300

Net fee income/(expense)

3,459

2,243

1,621

523

(66)

7,780

- trading income excluding
net interest income

(14)

280

2,062

137

2,491

- net interest income/(expense)
on trading activities

1,009

(2)

(25)

994

Net trading income/(expense)⁶

(6)

282

3,071

135

(25)

3,485

Net income/(expense) from financial instruments designated at fair value

606

160

(731)

(2)

780

813

Gains less losses from financial investments

655

(3)

(276)

389

Dividend income

160

223

Net insurance premium income

5,108

642

5,784

Other operating income/(expense)

348

160

(98)

3,362

(3,219)

593

Total operating income

18,044

8,661

7,989

1,184

3,708

(3,219)

36,367

Net insurance claims

(5,511)

(736)

(2)

(37)

(6,286)

Net operating income¹⁵

12,533

7,925

7,987

1,147

3,708

(3,219)

30,081

Loan impairment (charges)/
recoveries and other credit
risk provisions

(637)

(1,070)

(316)

(1)

(2,010)

Net operating income

11,896

6,855

7,671

1,161

3,707

(3,219)

28,071

- employee expenses²⁰

(2,582)

(1,204)

(1,849)

(369)

(4,384)

(10,388)

- other operating expenses

(6,918)

(2,450)

(5,221)

(541)

(684)

3,219

(12,595)

Total operating expenses

(9,500)

(3,654)

(7,070)

(910)

(5,068)

3,219

(22,983)

Operating profit/(loss)

2,396

3,201

601

251

(1,361)

5,088

Share of profit in associates
and joint ventures

183

799

255

1,252

Profit/(loss) before tax

2,579

4,000

856

262

(1,357)

6,340

Share of HSBC's profit before tax

40.7

63.1

13.5

4.1

(21.4)

100.0

Cost efficiency ratio

75.8

46.1

88.5

79.3

136.7

76.4

Balance sheet data¹⁴

Loans and advances to customers (net)

360,704

313,039

254,463

44,102

2,352

974,660

Reported in held for sale

198

288

577

Total assets

500,864

370,958

1,839,644

88,342

164,537

(330,206)

2,634,139

Customer accounts

583,757

361,318

319,121

85,465

981

1,350,642

Reported in held for sale

145

For footnotes, see page 56.

Title: Interim Report - 6 of 24
Time: 17:20:01
Date: 26 Aug 2015
Category: Results
ID: 1999X

	Half-year to 30 June 2015
	Retail Banking and Wealth Management $m	Commercial Banking $m	Global Banking and Markets $m	Global Private Banking $m	Other¹³ $m	Inter- segment elimination¹⁹ $m	Total $m
Profit before tax

Net interest income/(expense)	8,054	4,892	3,629	454	(397)	(188)	16,444

Net fee income/(expense)	3,334	2,168	1,711	527	(15)	−	7,725

- trading income/(expense) excluding net interest income	295	308	2,880	175	(138)	-	3,520
- net interest income/(expense) on trading activities	(5)	(7)	863	(1)	15	188	1,053

Net trading income/(expense)⁶	290	301	3,743	174	(123)	188	4,573
Net income from financial instruments designated at fair value	1,237	128	638	−	663	-	2,666
Gains less losses from financial investments	51	27	402	24	1,370	-	1,874
Dividend income	11	10	17	4	26	-	68
Net insurance premium income	4,950	624	3	30	−	-	5,607
Other operating income	609	100	120	2	3,163	(3,158)	836

Total operating income	18,536	8,250	10,263	1,215	4,687	(3,158)	39,793

Net insurance claims	(6,094)	(716)	(2)	(38)	−	−	(6,850)

Net operating income¹⁵	12,442	7,534	10,261	1,177	4,687	(3,158)	32,943

Loan impairment (charges)/ recoveries and other credit risk provisions	(934)	(511)	11	(5)	-	-	(1,439)

Net operating income	11,508	7,023	10,272	1,172	4,687	(3,158)	31,504

- employee expenses²⁰	(2,571)	(1,171)	(1,994)	(350)	(3,955)	-	(10,041)
- other operating income/ (expense)	(5,783)	(2,150)	(3,796)	(651)	76	3,158	(9,146)

Total operating expenses	(8,354)	(3,321)	(5,790)	(1,001)	(3,879)	3,158	(19,187)

Operating profit	3,154	3,702	4,482	171	808	-	12,317

Share of profit in associates and joint ventures	208	821	272	9	1	-	1,311

Profit before tax	3,362	4,523	4,754	180	809	-	13,628

	%	%	%	%	%		%
Share of HSBC's profit before tax	24.7	33.2	34.9	1.3	5.9		100.0
Cost efficiency ratio	67.1	44.1	56.4	85.0	82.8		58.2

Balance sheet data¹⁴
	$m	$m	$m	$m	$m		$m
Loans and advances to customers (net)	352,189	310,256	244,321	44,242	2,977		953,985
Reported in held for sale	6,640	10,325	4,016	43	−		21,024

Total assets	497,199	378,641	1,790,461	85,740	167,946	(348,274)	2,571,713
Customer accounts	589,715	362,069	299,181	82,878	1,957		1,335,800
Reported in held for sale	9,549	4,694	3,438	1,751	−		19,432

	Half-year to 30 June 2014
	Retail Banking and Wealth Management⁹ $m	Commercial Banking⁹ $m	Global Banking and Markets $m	Global Private Banking $m	Other¹³ $m	Inter- segment elimination¹⁹ $m	Total $m
Profit/(loss) before tax

Net interest income/(expense)	8,617	4,994	3,602	536	(221)	(123)	17,405

Net fee income	3,377	2,327	1,939	533	1	-	8,177

- trading income/(expense) excluding net interest income	(12)	338	2,001	161	(126)	-	2,362
- net interest income/(expense) on trading activities	1	(4)	789	(2)	6	123	913

Net trading income/(expense)⁶	(11)	334	2,790	159	(120)	123	3,275
Net income/(expense) from financial instruments designated at fair value	1,078	119	743	1	(281)	-	1,660
Gains less losses from financial investments	7	25	462	12	440	-	946
Dividend income	15	14	32	3	24	-	88
Net insurance premium income	5,501	615	2	19	-	-	6,137
Other operating income/(expense)	378	81	222	(7)	2,814	(2,950)	538

Total operating income	18,962	8,509	9,792	1,256	2,657	(2,950)	38,226

Net insurance claims	(6,346)	(686)	(1)	(26)	-	-	(7,059)

Net operating income¹⁵	12,616	7,823	9,791	1,230	2,657	(2,950)	31,167

Loan impairment (charges)/ recoveries and other credit risk provisions	(1,299)	(488)	(49)	(6)	1	-	(1,841)

Net operating income	11,317	7,335	9,742	1,224	2,658	(2,950)	29,326

- employee expenses²⁰	(2,544)	(1,147)	(1,806)	(363)	(4,118)	-	(9,978)
- other operating income/ (expense)	(5,986)	(2,180)	(3,152)	(505)	585	2,950	(8,288)

Total operating expenses	(8,530)	(3,327)	(4,958)	(868)	(3,533)	2,950	(18,266)

Operating profit/(loss)	2,787	4,008	4,784	356	(875)	-	11,060

Share of profit in associates and joint ventures	215	806	249	8	2	-	1,280

Profit/(loss) before tax	3,002	4,814	5,033	364	(873)	-	12,340

	%	%	%	%	%		%

Share of HSBC's profit before tax	24.4	39.0	40.8	2.9	(7.1)		100.0
Cost efficiency ratio	67.6	42.5	50.6	70.6	133.0		58.6

Balance sheet data¹⁴
	$m	$m	$m	$m	$m		$m
Loans and advances to customers (net)	381,353	315,001	303,133	45,131	2,623		1,047,241
Reported in held for sale	380	157	82	972	-		1,591

Total assets	526,089	375,014	2,043,767	99,379	170,802	(461,458)	2,753,593
Customer accounts	600,650	363,235	360,732	89,641	1,447		1,415,705
Reported in held for sale	181	485	373	3,841	-		4,880