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Segmental analysis (Tables)
 12 Months Ended
Dec. 31, 2019
Analysis of income and expense [abstract]  
Adjusted profit before tax and balance sheet data
HSBC adjusted profit before tax and balance sheet data
 
 
2019
 
 
Retail
Banking and
Wealth
Management

Commercial
Banking

Global
Banking and
Markets

Global
Private
Banking

Corporate Centre

Total

 
Footnotes
$m

$m

$m

$m

$m

$m

Net operating income/(expense) before change in expected credit losses and other credit impairment charges
1
23,400

15,292

14,916

1,848

(47
)
55,409

– external
 
17,026

14,805

18,517

1,445

3,616

55,409

– inter-segment
 
6,374

487

(3,601
)
403

(3,663
)
—

of which: net interest income/(expense)
 
16,525

11,226

5,601

879

(3,612
)
30,619

Change in expected credit losses and other credit impairment charges
 
(1,390
)
(1,184
)
(153
)
(22
)
(7
)
(2,756
)
Net operating income/(expense)
 
22,010

14,108

14,763

1,826

(54
)
52,653

Total operating expenses

(14,017
)
(6,801
)
(9,417
)
(1,424
)
(1,136
)
(32,795
)
Operating profit/(loss)
 
7,993

7,307

5,346

402

(1,190
)
19,858

Share of profit in associates and joint ventures
 
55

—

—

—

2,299

2,354

Adjusted profit before tax
 
8,048

7,307

5,346

402

1,109

22,212

 
 
%

%

%

%

%

%

Share of HSBC’s adjusted profit before tax
 
36.2

32.9

24.1

1.8

5.0

100.0

Adjusted cost efficiency ratio
 
59.9

44.5

63.1

77.1

(2,417.0
)
59.2

Adjusted balance sheet data
 
$m

$m

$m

$m

$m

$m

Loans and advances to customers (net)
 
395,393

346,060

246,266

47,593

1,431

1,036,743

Interests in associates and joint ventures
 
449

—

—

—

24,025

24,474

Total external assets
 
526,621

367,509

1,066,584

52,224

702,214

2,715,152

Customer accounts
 
689,283

386,522

292,284

62,943

8,083

1,439,115

HSBC adjusted profit before tax and balance sheet data (continued)
 
 
 
2018
 
 
Retail
Banking
and Wealth
Management

Commercial
Banking

Global
Banking and
Markets

Global
Private
Banking

Corporate Centre

Total

 
Footnotes
$m

$m

$m

$m

$m

$m

Net operating income/(expense) before change in expected credit losses and other credit impairment charges
1
21,374

14,465

15,025

1,757

(290
)
52,331

– external
 
16,794

14,226

17,554

1,474

2,283

52,331

– inter-segment
 
4,580

239

(2,529
)
283

(2,573
)
—

of which: net interest income/(expense)
 
15,432

10,380

5,122

873

(2,189
)
29,618

Change in expected credit losses and other credit impairment (charges)/recoveries
 
(1,134
)
(712
)
31

7

119

(1,689
)
Net operating income/(expense)
 
20,240

13,753

15,056

1,764

(171
)
50,642

Total operating expenses
 
(13,255
)
(6,275
)
(9,170
)
(1,425
)
(1,781
)
(31,906
)
Operating profit/(loss)
 
6,985

7,478

5,886

339

(1,952
)
18,736

Share of profit in associates and joint ventures
 
33

—

—

—

2,413

2,446

Adjusted profit before tax
 
7,018

7,478

5,886

339

461

21,182

 
 
%

%

%

%

%

%

Share of HSBC’s adjusted profit before tax
 
33.1

35.3

27.8

1.6

2.2

100.0

Adjusted cost efficiency ratio
 
62.0

43.4

61.0

81.1

(614.1
)
61.0

Adjusted balance sheet data
 
$m

$m

$m

$m

$m

$m

Loans and advances to customers (net)
 
367,917

337,099

247,125

39,602

2,533

994,276

Interests in associates and joint ventures
 
398

—

—

—

21,903

22,301

Total external assets
 
482,967

364,638

1,025,737

45,520

670,333

2,589,195

Customer accounts
 
649,172

362,274

294,584

65,053

8,655

1,379,738

 
 
2017
 
 
Retail
Banking and
Wealth
Management

Commercial
Banking

Global
Banking and
Markets

Global
Private
Banking

Corporate Centre

Total

 
Footnotes
$m

$m

$m

$m

$m

$m

Net operating income before loan impairment charges and other credit risk provisions
1
19,708

12,883

14,823

1,698

1,061

50,173

– external
 
16,582

13,009

16,086

1,433

3,063

50,173

– inter-segment
 
3,126

(126
)
(1,263
)
265

(2,002
)
—

of which: net interest income/(expense)
 
13,573

8,822

4,746

812

(499
)
27,454

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

 
(941
)
(468
)
(439
)
(17
)
179

(1,686
)
Net operating income
 
18,767

12,415

14,384

1,681

1,240

48,487

Total operating expenses
 
(12,386
)
(5,770
)
(8,709
)
(1,384
)
(2,010
)
(30,259
)
Operating profit/(loss)
 
6,381

6,645

5,675

297

(770
)
18,228

Share of profit in associates and joint ventures
 
12

—

—

—

2,316

2,328

Adjusted profit before tax
 
6,393

6,645

5,675

297

1,546

20,556

 
 
%

%

%

%

%

%

Share of HSBC’s adjusted profit before tax
 
31.1

32.3

27.6

1.4

7.6

100.0

Adjusted cost efficiency ratio
 
62.8

44.8

58.8

81.5

189.4

60.3

Adjusted balance sheet data
 
$m

$m

$m

$m

$m

$m

Loans and advances to customers (net)
 
337,768

308,870

246,890

40,013

7,382

940,923

Interests in associates and joint ventures
 
364

—

—

—

21,558

21,922

Total external assets
 
457,126

340,211

960,732

46,706

667,822

2,472,597

Customer accounts
 
629,442

356,488

276,634

65,491

11,017

1,339,072

1
Net operating income before change in expected credit losses and other credit impairment charges/Loan impairment charges and other credit risk provisions, also referred to as revenue.
External net operating income by country
Reported external net operating income is attributed to countries and territories on the basis of the location of the branch responsible for reporting the results or advancing the funds:
 
 
2019

2018

2017

 
Footnotes
$m

$m

$m

Reported external net operating income by country/territory
1
56,098

53,780

51,445

– UK
 
9,011

10,340

11,057

– Hong Kong
 
18,449

17,162

14,992

– US
 
4,471

4,379

4,573

– France
 
1,942

1,898

2,203

– other countries
 
22,225

20,001

18,620

1
Net operating income before change in expected credit losses and other credit impairment charges/Loan impairment charges and other credit risk provisions, also referred to as revenue.
Adjusted results reconciliation


2019
2018
2017


Adjusted

Significant items

Reported

Adjusted

Currency translation

Significant items

Reported

Adjusted

Currency translation

Significant items

Reported


Footnotes
$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Revenue
1
55,409

689

56,098

52,331

1,617

(168
)
53,780

50,173

1,344

(72
)
51,445

ECL

(2,756
)
—

(2,756
)
(1,689
)
(78
)
—

(1,767
)
N/A

N/A

N/A

N/A

LICs

N/A

N/A

N/A

N/A

N/A

N/A

N/A

(1,686
)
(83
)
—

(1,769
)
Operating expenses

(32,795
)
(9,554
)
(42,349
)
(31,906
)
(1,109
)
(1,644
)
(34,659
)
(30,259
)
(915
)
(3,710
)
(34,884
)
Share of profit in associates and joint ventures

2,354

—

2,354

2,446

90

—

2,536

2,328

47

—

2,375

Profit/(loss) before tax

22,212

(8,865
)
13,347

21,182

520

(1,812
)
19,890

20,556

393

(3,782
)
17,167
Reconciliation of reported and adjusted items
Adjusted results reconciliation


2019
2018
2017


Adjusted

Significant items

Reported

Adjusted

Currency translation

Significant items

Reported

Adjusted

Currency translation

Significant items

Reported


Footnotes
$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

$m

Revenue
1
55,409

689

56,098

52,331

1,617

(168
)
53,780

50,173

1,344

(72
)
51,445

ECL

(2,756
)
—

(2,756
)
(1,689
)
(78
)
—

(1,767
)
N/A

N/A

N/A

N/A

LICs

N/A

N/A

N/A

N/A

N/A

N/A

N/A

(1,686
)
(83
)
—

(1,769
)
Operating expenses

(32,795
)
(9,554
)
(42,349
)
(31,906
)
(1,109
)
(1,644
)
(34,659
)
(30,259
)
(915
)
(3,710
)
(34,884
)
Share of profit in associates and joint ventures

2,354

—

2,354

2,446

90

—

2,536

2,328

47

—

2,375

Profit/(loss) before tax

22,212

(8,865
)
13,347

21,182

520

(1,812
)
19,890

20,556

393

(3,782
)
17,167


1 Net operating income before change in expected credit losses and other credit impairment charges/Loan impairment charges and other credit risk provisions, also referred to as revenue.
Adjusted balance sheet reconciliation

2019
2018
2017

Reported and adjusted

Adjusted

Currency translation

Reported

Adjusted

Currency translation

Reported


$m

$m

$m

$m

$m

$m

$m

Loans and advances to customers (net)
1,036,743

994,276

(12,580
)
981,696

940,923

22,041

962,964

Interests in associates and joint ventures
24,474

22,301

106

22,407

21,922

822

22,744

Total external assets
2,715,152

2,589,195

(31,071
)
2,558,124

2,472,597

49,174

2,521,771

Customer accounts
1,439,115

1,379,738

(17,095
)
1,362,643

1,339,072

25,390

1,364,462

Adjusted profit reconciliation


2019

2018

2017


Footnotes
$m

$m

$m

Year ended 31 Dec







Adjusted profit before tax

22,212

21,182

20,556

Significant items

(8,865
)
(1,812
)
(3,782
)
– customer redress programmes (revenue)

(163
)
53

(108
)
– disposals, acquisitions and investment in new businesses (revenue)

768

(113
)
274

– fair value movements on financial instruments
1
84

(100
)
(245
)
– costs of structural reform
2
(158
)
(361
)
(420
)
– costs to achieve

—

—

(3,002
)
– customer redress programmes (operating expenses)

(1,281
)
(146
)
(655
)
– disposals, acquisitions and investment in new businesses (operating expenses)

—

(52
)
(53
)
– gain on partial settlement of pension obligation

—

—

188

– goodwill impairment

(7,349
)
—

—

– past service costs of guaranteed minimum pension benefits equalisation

—

(228
)
—

– restructuring and other related costs

(827
)
(66
)
—

– settlements and provisions in connection with legal and other regulatory matters

61

(816
)
198

– currency translation on significant items



17

41

Currency translation

 
520

393

Reported profit before tax

13,347

19,890

17,167

1
Fair value movements on financial instruments include non-qualifying hedges and debt value adjustments on derivatives.
2
Comprises costs associated with preparations for the UK’s exit from the European Union, costs to establish the UK ring-fenced bank (including the UK ServCo group) and costs associated with establishing an intermediate holding company in Hong Kong.