Last checked at 18 Mar 2016 16:22
Retail Banking and Wealth Management
RBWM provides banking and wealthmanagement services for our personalcustomers to help them secure their futureprosperity and realise their ambitions. | ||||||||||||
|
|
|
|
|
| Principal RBWM consists of | ||||||
Total RBWM28 |
| US run-offportfolio |
| Principal RBWM |
| Banking operations |
| Insurance manufacturing |
| Asset management | ||
$m |
| $m |
| $m | $m | $m | $m | |||||
2015 |
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
| ||
Net interest income | 15,926 |
| 1,033 |
| 14,893 | 13,127 | 1,757 | 9 | ||||
Net fee income/(expense) | 6,218 |
| (4) |
| 6,222 | 5,726 | (560) | 1,056 | ||||
Other income/(expense)33 | 1,372 |
| (203) |
| 1,575 | 876 | 680 | 19 | ||||
|
|
| ||||||||||
Net operating income1 | 23,516 |
| 826 |
| 22,690 | 19,729 | 1,877 | 1,084 | ||||
|
|
| ||||||||||
LICs34 | (1,939) |
| (62) |
| (1,877) | (1,877) | - | - | ||||
|
|
| ||||||||||
Net operating income | 21,577 |
| 764 |
| 20,813 | 17,852 | 1,877 | 1,084 | ||||
Total operating expenses | (17,020) |
| (1,384) |
| (15,636) | (14,459) | (432) | (745) | ||||
|
| |||||||||||
Operating profit/(loss) | 4,557 |
| (620) |
| 5,177 | 3,393 | 1,445 | 339 | ||||
Income from associates35 | 410 |
| - |
| 410 | 357 | 24 | 29 | ||||
|
|
| ||||||||||
Profit/(loss) before tax | 4,967 |
| (620) |
| 5,587 | 3,750 | 1,469 | 368 | ||||
|
|
|
|
|
|
|
|
|
|
| ||
RoRWA24 | 2.5% |
| (1.3%) |
| 3.7% |
|
|
|
|
|
| |
| ||||||||||||
2014 | ||||||||||||
| ||||||||||||
Net interest income | 17,130 | 1,390 | 15,740 | 13,983 | 1,746 | 11 | ||||||
Net fee income/(expense) | 6,836 | (4) | 6,840 | 6,264 | (534) | 1,110 | ||||||
Other income/(expense)33 | 1,183 | (49) | 1,232 | 602 | 608 | 22 | ||||||
Net operating income1 | 25,149 | 1,337 | 23,812 | 20,849 | 1,820 | 1,143 | ||||||
LICs34 | (1,936) | (30) | (1,906) | (1,906) | - | - | ||||||
Net operating income | 23,213 | 1,307 | 21,906 | 18,943 | 1,820 | 1,143 | ||||||
Total operating expenses | (18,030) | (738) | (17,292) | (16,060) | (453) | (779) | ||||||
Operating profit | 5,183 | 569 | 4,614 | 2,883 | 1,367 | 364 | ||||||
Income from associates35 | 398 | - | 398 | 323 | 40 | 35 | ||||||
Profit before tax | 5,581 | 569 | 5,012 | 3,206 | 1,407 | 399 | ||||||
US | ||||||||||||
RoRWA24 | 2.5% | 0.8% | 3.2% | |||||||||
| ||||||||||||
2013 | ||||||||||||
| ||||||||||||
Net interest income | 18,808 | 2,061 | 16,747 | 15,003 | 1,725 | 19 | ||||||
Net fee income/(expense) | 7,211 | 11 | 7,200 | 6,786 | (625) | 1,039 | ||||||
Other income/(expense)33 | 1,434 | (400) | 1,834 | 1,014 | 779 | 41 | ||||||
Net operating income1 | 27,453 | 1,672 | 25,781 | 22,803 | 1,879 | 1,099 | ||||||
LICs34 | (3,510) | (705) | (2,805) | (2,806) | - | 1 | ||||||
Net operating income | 23,943 | 967 | 22,976 | 19,997 | 1,879 | 1,100 | ||||||
Total operating expenses | (17,774) | (1,166) | (16,608) | (15,307) | (554) | (747) | ||||||
Operating profit/(loss) | 6,169 | (199) | 6,368 | 4,690 | 1,325 | 353 | ||||||
Income/(expense) from associates35 | 384 | (1) | 385 | 299 | 62 | 24 | ||||||
Profit/(loss) before tax | 6,553 | (200) | 6,753 | 4,989 | 1,387 | 377 | ||||||
RoRWA24 | 2.6% | (0.2%) | 4.2% | |||||||||
For footnotes, see page 99.
RBWM comprises the Principal RBWM business and the US run-off portfolio. We believe that highlighting Principal RBWM (and its constituent business streams, Banking Operations, Insurance Manufacturing and Asset Management) allows management to identify more readily the causes of material changes from year-to-year in the ongoing business and assess the factors and trends that are expected to have a material effect on the business in future years.
Insurance manufacturing for RBWM excluded other global businesses which contributed net operating income of $286m (2014: $358m, 2013: $397m) and profit before tax of $201m (2014: $263m, 2013: $266m) to overall insurance manufacturing. In 2015 insurance manufacturing net operating income for RBWM included $1,686m within Wealth Management (2014: $1,529m) and $191m within other products (2014: $350m).
Principal RBWM performance
Principal RBWM: management view of adjusted revenue
2015 | 2014 | |||
$m | $m | |||
Net operating income1 | ||||
Current accounts, savings and deposits | 5,602 | 5,530 | ||
Wealth management products | 6,282 | 5,825 | ||
- investment distribution36 | 3,512 | 3,271 | ||
- life insurance manufacturing | 1,686 | 1,529 | ||
- asset management | 1,084 | 1,025 | ||
Personal lending | 9,962 | 10,218 | ||
- mortgages | 2,873 | 2,956 | ||
- credit cards | 3,868 | 3,961 | ||
- other personal lending37 | 3,221 | 3,301 | ||
Other38 | 841 | 759 | ||
Year ended 31 December | 22,687 | 22,332 |
For footnotes, see page 99.
Profit before tax ($m)
|
Revenue ($m)
|
Operating expenses ($m)
|
|
For details of significant items, see page 66.
Commercial Banking
CMB serves more than two million customers in 55 countries and territories. Our customers range from small enterprises focused primarily on their domestic markets through to corporates operating globally. | ||||||
2015 | 2014 |
| 2013 | |||
$m | $m |
| $m | |||
|
|
| ||||
Net interest income | 9,859 | 10,158 | 9,731 | |||
Net fee income | 4,190 | 4,570 | 4,527 | |||
Other income33 | 821 | 1,020 | 1,394 | |||
| ||||||
Net operating income1 | 14,870 | 15,748 | 15,652 | |||
| ||||||
LICs34 | (1,770) | (1,558) | (2,101) | |||
| ||||||
Net operating income | 13,100 | 14,190 | 13,551 | |||
| ||||||
Total operating expenses | (6,744) | (6,981) | (6,523) | |||
| ||||||
Operating profit | 6,356 | 7,209 | 7,028 | |||
| ||||||
Income from associates35 | 1,617 | 1,605 | 1,509 | |||
| ||||||
Profit before tax | 7,973 | 8,814 | 8,537 | |||
RoRWA24 | 1.9% | 2.1% | 2.2% | |||
For footnotes, see page 99.
Management view of adjusted revenue
2015 | 2014 | |||
$m | $m | |||
Net operating income1 | ||||
Global Trade and Receivables Finance | 2,403 | 2,447 | ||
Credit and Lending | 6,002 | 5,609 | ||
Payments and Cash Management, current accounts and savings deposits | 4,568 | 4,423 | ||
Markets products, Insurance and Investments and Other39 | 1,914 | 2,036 | ||
Year ended 31 December | 14,887 | 14,515 |
For footnotes, see page 99.
Profit before tax ($m)
|
Revenue ($m)
|
Operating expenses ($m)
|
|
For details of significant items, see page 66.
Global Banking and Markets
GB&M supports major government, corporate and institutional clients worldwidein achieving their long-term strategic goals through tailored and innovative solutions. | ||||||
GB&Mclient- | ||||||
Total GB&M | Legacy | facingand BSM | ||||
$m | $m | $m | ||||
2015 | ||||||
Net interest income | 6,931 | 127 | 6,804 | |||
Net fee income/(expense) | 3,375 | (11) | 3,386 | |||
Net trading income40 | 7,169 | 9 | 7,160 | |||
Other income/(expense)33 | 758 | (64) | 822 | |||
Net operating income1 | 18,233 | 61 | 18,172 | |||
LICs34 | − | 37 | (37) | |||
Net operating income | 18,233 | 98 | 18,135 | |||
Total operating expenses | (10,834) | (103) | (10,731) | |||
Operating profit/(loss) | 7,399 | (5) | 7,404 | |||
Income from associates35 | 511 | |||||
Profit/(loss) before tax | 7,910 | |||||
RoRWA24 | 1.6% | - | 1.8% | |||
2014 | ||||||
Net interest income/(expense) | 7,022 | (172) | 7,194 | |||
Net fee income/(expense) | 3,560 | (7) | 3,567 | |||
Net trading income/(expense)40 | 5,861 | (55) | 5,916 | |||
Other income33 | 1,335 | 232 | 1,103 | |||
Net operating income/ (expense)1 | 17,778 | (2) | 17,780 | |||
LICs34 | (365) | 349 | (714) | |||
Net operating income | 17,413 | 347 | 17,066 | |||
Total operating expenses | (12,028) | (708) | (11,320) | |||
Operating profit/(loss) | 5,385 | (361) | 5,746 | |||
Income from associates35 | 504 | |||||
Profit/(loss) before tax | 5,889 | |||||
RoRWA24 | 1.2% | (0.8%) | 1.3% | |||
2013 | ||||||
Net interest income | 6,766 | 38 | 6,728 | |||
Net fee income/(expense) | 3,482 | (7) | 3,489 | |||
Net trading income40 | 6,780 | 198 | 6,582 | |||
Other income/(expense)33 | 2,148 | (80) | 2,228 | |||
Net operating income1 | 19,176 | 149 | 19,027 | |||
LICs34 | (207) | 206 | (413) | |||
Net operating income | 18,969 | 355 | 18,614 | |||
Total operating expenses | (9,960) | (170) | (9,790) | |||
Operating profit | 9,009 | 185 | 8,824 | |||
Income from associates35 | 432 | |||||
Profit before tax | 9,441 | |||||
RoRWA24 | 2.3% | 0.6% | 2.5% | |||
For footnotes, see page 99.
The GB&M client-facing and Balance Sheet Management ('BSM') businesses measure excludes the effects of the legacy credit portfolio and income from associates. This allows GB&M management to identify more readily the cause of material changes from year to year in the ongoing businesses and assess the factors and trends that are expected to have a material effect on the businesses in future years.
Management view of adjusted revenue
2015 $m | 2014 $m | |||
Total operating income1 |
| |||
Markets41 | 6,882 | 5,775 | ||
- Legacy credit | 61 | (16) | ||
- Credit | 659 | 532 | ||
- Rates | 1,638 | 1,419 | ||
- Foreign Exchange | 2,918 | 2,722 | ||
- Equities | 1,606 | 1,118 | ||
1,606 | 1,118 | |||
Capital Financing | 3,789 | 3,777 | ||
Payments and Cash Management | 1,801 | 1,680 | ||
Securities Services | 1,698 | 1,589 | ||
Global Trade and Receivables Finance | 718 | 701 | ||
Balance Sheet Management | 2,943 | 2,845 | ||
Principal Investments | 243 | 498 | ||
Other42 | (40) | (55) | ||
Year ended 31 December | 18,034 | 16,810 |
For footnotes, see page 99.
Profit before tax ($m)
|
Revenue ($m)
|
Operating expenses ($m)
|
|
For details of significant items, see page 66.
Global Private Banking
GPB serves high net worth individuals and families with complex and international needs within the Group's priority markets.
|
| ||||||
2015 | 2014 | 2013 | |||||
$m | $m | $m | |||||
Net interest income | 870 | 994 | 1,146 | ||||
Net fee income | 959 | 1,056 | 1,150 | ||||
Other income33 | 343 | 327 | 143 | ||||
Net operating income1 | 2,172 | 2,377 | 2,439 | ||||
LICs34 | (12) | 8 | (31) | ||||
Net operating income | 2,160 | 2,385 | 2,408 | ||||
Total operating expenses | (1,832) | (1,778) | (2,229) | ||||
Operating profit | 328 | 607 | 179 | ||||
Income from associates35 | 16 | 19 | 14 | ||||
Profit before tax | 344 | 626 | 193 | ||||
RoRWA24 | 1.7% | 2.9% | 0.9% | ||||
Reported client assets43
2015 | 2014 | |||
$bn | $bn | |||
At 1 January | 365 | 382 | ||
Net new money | 1 | (3) | ||
Of which: areas targeted for growth | 14 | 14 | ||
Value change | 1 | 8 | ||
Disposals | - | (11) | ||
Exchange and other | (18) | (11) | ||
At 31 December | 349 | 365 |
Reported client assets by geography
2015 | 2014 | |||
$bn | $bn | |||
Europe | 168 | 179 | ||
Asia | 112 | 112 | ||
North America | 61 | 63 | ||
Latin America | 8 | 11 | ||
At 31 December | 349 | 365 |
For footnotes, see page 99.
Profit before tax ($m)
|
Revenue ($m)
|
Operating expenses ($m)
|
|
For details of significant items, see page 66.
Other29
'Other' contains the results of HSBC's holding company and financing operations, central support and functional costs with associated recoveries, unallocated investment activities, centrally held investment companies, certain property transactions and movements in fair value of own debt. | ||||||
2015 | 2014 |
| 2013 | |||
$m | $m |
| $m | |||
|
|
| ||||
Net interest expense | (710) | (501) | (737) | |||
Net fee income/(expense) | (37) | (65) | 64 | |||
Net trading income/(expense) | (192) | (92) | 6 | |||
Changes in fair value of long-term debt issued and related derivatives | 863 | 508 | (1,228) | |||
Changes in other financial instruments designatedat fair value | 61 | (9) | (576) | |||
Net income/(expense) from financial instruments designated at fair value | 924 | 499 | (1,804) | |||
Other income | 7,619 | 6,524 | 8,122 | |||
| ||||||
Net operating income1 | 7,604 | 6,365 | 5,651 | |||
| ||||||
LICs34 | − | − | − | |||
| ||||||
Net operating income | 7,604 | 6,365 | 5,651 | |||
| ||||||
Total operating expenses | (9,933) | (8,601) | (7,796) | |||
| ||||||
Operating loss | (2,329) | (2,236) | (2,145) | |||
| ||||||
Income/(expense) from associates35 | 2 | 6 | (14) | |||
| ||||||
Loss before tax | (2,327) | (2,230) | (2,159) | |||
For footnotes, see page 99. | ||||||
Loss before tax ($m)
|
Revenue ($m)
|
Operating expenses ($m)
|
|
For details of significant items, see page 66.