Last checked at 20 Mar 2015 16:27
Operating expenses rose by US$1.3bn, mainly in the UK, reflecting growth in Regulatory Programmes and Compliance costs in all businesses and increased staff costs. In addition, the UK bank levy charge of US$1.1bn in respect of 2014 was US$0.2bn higher than in 2013, primarily due to an increase in the rate of the levy. Expenses also increased due to the timing of the recognition of the Financial Services Compensation Scheme levy in the UK. These increases were partly offset by sustainable cost savings of over US$330m.
Profit/(loss) before tax and balance sheet data - Europe
2014 | ||||||||||||||
Retail Bankingand WealthManagementUS$m |
| Commercial BankingUS$m |
| GlobalBanking andMarketsUS$m |
| GlobalPrivateBankingUS$m |
| Other US$m |
| Inter-segment elimination55 US$m |
| Total US$m | ||
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Profit/(loss) before tax | ||||||||||||||
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Net interest income/(expense) | 5,196 |
| 3,616 |
| 1,956 |
| 594 |
| (654) |
| (97) |
| 10,611 | |
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|
|
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|
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|
|
| |
Net fee income/(expense) | 2,456 |
| 1,900 |
| 1,087 |
| 626 |
| (27) |
| − |
| 6,042 | |
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|
|
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|
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|
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| |
Trading income/(expense) excluding net interest income | (260) |
| 33 |
| 1,943 |
| 140 |
| (92) |
| − |
| 1,764 | |
Net interest income/(expense)on trading activities | 14 |
| 2 |
| 660 |
| (4) |
| 1 |
| 97 |
| 770 | |
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| |
Net trading income/(expense)50 | (246) |
| 35 |
| 2,603 |
| 136 |
| (91) |
| 97 |
| 2,534 | |
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|
|
| |
Changes in fair value of long-term debt issued and related derivatives | − |
| − |
| − |
| − |
| 614 |
| − |
| 614 | |
Net income/(expense) from other financial instruments designated at fair value | 616 |
| 119 |
| 14 |
| (1) |
| (11) |
| − |
| 737 | |
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| |
Net income/(expense) from financial instruments designated at fair value | 616 |
| 119 |
| 14 |
| (1) |
| 603 |
| − |
| 1,351 | |
Gains less losses from financial investments | 12 |
| 10 |
| 730 |
| 9 |
| 11 |
| − |
| 772 | |
Dividend income | 3 |
| 7 |
| 50 |
| 2 |
| 3 |
| − |
| 65 | |
Net insurance premium income/(expense) | 2,741 |
| 217 |
| − |
| 50 |
| − |
| − |
| 3,008 | |
Other operating income/(expense) | (127) |
| 45 |
| (3) |
| 29 |
| 1,249 |
| (186) |
| 1,007 | |
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Total operating income | 10,651 |
| 5,949 |
| 6,437 |
| 1,445 |
| 1,094 |
| (186) |
| 25,390 | |
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Net insurance claims56 | (3,450) |
| (306) |
| − |
| (63) |
| − |
| − |
| (3,819) | |
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Net operating income4 | 7,201 |
| 5,643 |
| 6,437 |
| 1,382 |
| 1,094 |
| (186) |
| 21,571 | |
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Loan impairment (charges)/ recoveries and other credit risk provisions | (268) |
| (502) |
| − |
| 4 |
| 2 |
| − |
| (764) | |
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Net operating income | 6,933 |
| 5,141 |
| 6,437 |
| 1,386 |
| 1,096 |
| (186) |
| 20,807 | |
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Total operating expenses | (6,621) |
| (2,594) |
| (6,391) |
| (1,071) |
| (3,726) |
| 186 |
| (20,217) | |
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Operating profit/(loss) | 312 |
| 2,547 |
| 46 |
| 315 |
| (2,630) |
| − |
| 590 | |
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Share of profit in associatesand joint ventures | 2 |
| 1 |
| 3 |
| − |
| − |
| − |
| 6 | |
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Profit/(loss) before tax | 314 |
| 2,548 |
| 49 |
| 315 |
| (2,630) |
| − |
| 596 | |
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% |
| % |
| % |
| % |
| % |
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| % | ||
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Share of HSBC's profit before tax | 1.7 |
| 13.6 |
| 0.3 |
| 1.7 |
| (14.1) |
|
|
| 3.2 | |
Cost efficiency ratio | 91.9 |
| 46.0 |
| 99.3 |
| 77.5 |
| 340.6 |
|
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| 93.7 | |
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Balance sheet data40 | ||||||||||||||
US$m |
| US$m |
| US$m |
| US$m |
| US$m |
|
|
| US$m | ||
Loans and advances to customers (net)27 | 165,112 |
| 106,342 |
| 113,136 |
| 24,766 |
| 377 |
|
|
| 409,733 | |
Total assets | 221,679 |
| 120,819 |
| 948,951 |
| 64,676 |
| 64,182 |
| (129,381) |
| 1,290,926 | |
Customer accounts27 | 202,413 |
| 135,837 |
| 166,075 |
| 41,380 |
| 254 |
|
|
| 545,959 | |
2013 | ||||||||||||||
| Retail Bankingand WealthManagementUS$m |
| Commercial BankingUS$m |
| GlobalBanking andMarketsUS$m |
| GlobalPrivateBankingUS$m |
| Other US$m |
| Inter-segment elimination55 US$m |
| TotalUS$m | |
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Profit/(loss) before tax |
|
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| |
|
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Net interest income/(expense) | 5,600 |
| 3,353 |
| 1,774 |
| 722 |
| (694) |
| (62) |
| 10,693 | |
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Net fee income/(expense) | 2,545 |
| 1,789 |
| 957 |
| 744 |
| (3) |
| - |
| 6,032 | |
|
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|
|
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Trading income excluding netinterest income | 206 |
| 30 |
| 2,181 |
| 192 |
| 698 |
| - |
| 3,307 | |
Net interest income on trading activities | 2 |
| 5 |
| 1,013 |
| 4 |
| 30 |
| 62 |
| 1,116 | |
|
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Net trading income50 | 208 |
| 35 |
| 3,194 |
| 196 |
| 728 |
| 62 |
| 4,423 | |
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Changes in fair value of long-term debt issued and related derivatives | − |
| − |
| − |
| − |
| (936) |
| − |
| (936) | |
Net income/(expense) from other financial instruments designated at fair value | 1,059 |
| 271 |
| 591 |
| 4 |
| (570) |
| (1) |
| 1,354 | |
|
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|
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Net income/(expense) from financial instruments designated at fair value | 1,059 |
| 271 |
| 591 |
| 4 |
| (1,506) |
| (1) |
| 418 | |
Gains less losses from financial investments | 52 |
| − |
| 344 |
| (17) |
| − |
| − |
| 379 | |
Dividend income | 4 |
| 2 |
| 65 |
| 4 |
| − |
| − |
| 75 | |
Net insurance premium income/(expense) | 2,782 |
| 361 |
| (1) |
| 16 |
| − |
| − |
| 3,158 | |
Other operating income/(expense) | (103) |
| 9 |
| 110 |
| (253) |
| 766 |
| − |
| 529 | |
|
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|
|
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|
|
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|
| |
Total operating income/(expense) | 12,147 |
| 5,820 |
| 7,034 |
| 1,416 |
| (709) |
| (1) |
| 25,707 | |
|
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|
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|
|
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Net insurance claims56 | (4,136) |
| (567) |
| − |
| (37) |
| − |
| − |
| (4,740) | |
|
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|
|
|
|
|
|
|
|
|
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Net operating income/(expense)4 | 8,011 |
| 5,253 |
| 7,034 |
| 1,379 |
| (709) |
| (1) |
| 20,967 | |
|
|
|
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|
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|
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|
|
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Loan impairment charges and other credit risk provisions | (329) |
| (935) |
| (242) |
| (24) |
| − |
| − |
| (1,530) | |
|
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|
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|
|
|
|
|
|
|
| |
Net operating income/(expense) | 7,682 |
| 4,318 |
| 6,792 |
| 1,355 |
| (709) |
| (1) |
| 19,437 | |
|
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|
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|
|
|
|
|
|
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| |
Total operating expenses | (5,934) |
| (2,231) |
| (4,987) |
| (1,519) |
| (2,943) |
| 1 |
| (17,613) | |
|
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|
|
|
|
| |
Operating profit/(loss) | 1,748 |
| 2,087 |
| 1,805 |
| (164) |
| (3,652) |
| − |
| 1,824 | |
|
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| |
Share of profit/(loss) in associatesand joint ventures | 5 |
| 1 |
| (4) |
| (1) |
| − |
| − |
| 1 | |
|
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|
|
|
|
|
|
|
|
|
|
|
| |
Profit/(loss) before tax | 1,753 |
| 2,088 |
| 1,801 |
| (165) |
| (3,652) |
| − |
| 1,825 | |
|
|
|
|
|
|
|
|
|
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|
|
|
| |
| % |
| % |
| % |
| % |
| % |
|
|
| % | |
|
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Share of HSBC's profit before tax | 7.8 |
| 9.2 |
| 8.0 |
| (0.7) |
| (16.2) |
|
|
| 8.1 | |
Cost efficiency ratio | 74.1 |
| 42.5 |
| 70.9 |
| 110.2 |
| (415.1) |
|
|
| 84.0 | |
|
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Balance sheet data40 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| US$m |
| US$m |
| US$m |
| US$m |
| US$m |
|
|
| US$m | |
Loans and advances to customers (net)27 | 177,357 |
| 105,498 |
| 145,136 |
| 27,289 |
| 830 |
|
|
| 456,110 | |
Total assets | 238,499 |
| 124,242 |
| 1,054,506 |
| 75,718 |
| 72,174 |
| (172,180) |
| 1,392,959 | |
Customer accounts27 | 205,288 |
| 134,120 |
| 191,715 |
| 49,789 |
| 1,021 |
|
|
| 581,933 | |
For footnotes, see page 109.