TIDM57HB
RNS Number : 0801A
Hongkong & Shanghai Banking Corp Ld
21 March 2017
37 Segmental analysis
Change in reportable segment
The group's chief operating decision-maker, the Executive
Committee ('EXCO'), regularly reviews operating activities on a
number of bases, including by global business and by geographical
region. In prior years, the group's operating segments were
organised by geographical region, Hong Kong and Rest of
Asia-Pacific. During 2016, several factors, including a clear shift
in the focus of information to global businesses received by EXCO,
have caused a change in the way business performance is assessed
and allocation of resources is prioritised. Accordingly, the
segmental reporting has been changed to global businesses as this
provides the most meaningful information with which to understand
the performance of the group.
Information provided to EXCO is measured in accordance with
HKFRSs. The group's operations are closely integrated and,
accordingly, the presentation of data includes internal allocations
of certain items of income and expenses. These allocations include
the costs of certain support services and global functions to the
extent that they can be meaningfully attributed. Costs which are
not allocated to global businesses are included in the 'Corporate
Centre'. All such transactions are undertaken on arm's length
terms.
The group's operating segments are organised into four global
businesses and a Corporate Centre. The group provides a
comprehensive range of banking and related financial services to
its customers organised by global business:
-- Retail Banking and Wealth Management ('RBWM') serves personal
customers. We take deposits and provide transactional banking
services to enable customers to manage their day to day finances
and save for the future. We selectively offer credit facilities to
assist customers in their short or longer-term borrowing
requirements; and we provide financial advisory, broking, insurance
and investment services to help them manage and protect their
financial futures.
-- Commercial Banking ('CMB') is segmented into Corporate, to
serve both corporate and mid-market companies with more
sophisticated financial needs, and Business Banking, to serve small
and medium-sized enterprises ('SMEs'), enabling differentiated
coverage of our target customers. This allows us to provide
continuous support to companies as they grow both domestically and
internationally, and ensures a clear focus on internationally
aspirant customers.
-- Global Banking and Markets ('GB&M') provides tailored
financial solutions to major government, corporate and
institutional clients worldwide. GB&M operates a long-term
relationship management approach to build a full understanding of
clients' financial requirements. Sector-focused client service
teams comprising relationship managers and product specialists
develop financial solutions to meet individual client needs.
-- Global Private Banking ('GPB') provides investment management
and trustee solutions to high net worth individuals and their
families. We aim to meet the needs of our clients by providing
excellent customer service, leveraging our global footprint and
offering a comprehensive suite of solutions.
-- Corporate Centre was established during the year to align
certain functions of the group. The Corporate Centre includes
Balance Sheet Management, certain interests in associates and joint
ventures, as well as the results of our financing operations and
central support costs with associated recoveries.
The group has also conducted a number of internal reviews during
the year to align customer requirements to those global businesses
best suited to service their respective needs, resulting in the
transfer of a portfolio of customers from CMB to GB&M.
Performance by global business is presented in the 'Financial
Review' section. Comparative figures have been re-presented to
conform to current year presentation.
Information by geographic region
Rest
Hong of Asia- Inter-region
Kong Pacific elimination Total
HK$m HK$m HK$m HK$m
2016
Total operating income
....................................................... 165,957 70,491 (3,710) 232,738
Profit before tax
..........................................................
........ 60,645 42,062 - 102,707
Total assets
..........................................................
................ 5,416,727 2,625,900 (493,675) 7,548,952
Total liabilities
..........................................................
........... 5,062,172 2,301,319 (493,675) 6,869,816
Credit commitments and
contingencies (contract
amounts) . 1,413,979 1,133,197 - 2,547,176
2015
Total operating income
....................................................... 165,673 74,258 (3,986) 235,945
Profit before tax
..........................................................
........ 72,872 44,407 - 117,279
Total assets
..........................................................
................ 4,934,662 2,588,062 (569,041) 6,953,683
Total liabilities
..........................................................
........... 4,613,757 2,273,081 (569,041) 6,317,797
Credit commitments and
contingencies (contract
amounts) . 1,273,983 1,115,941 - 2,389,924
Information by country
Revenue(1) Non-current
assets(2)
---------------- ----------------
2016 2015 2016 2015
HK$m HK$m HK$m HK$m
Hong Kong ............................................................... 108,165 119,764 106,513 104,503
Mainland China ......................................................... 14,307 16,653 130,167 127,346
Australia..................................................................
.. 6,537 6,740 821 822
India
......................................................................... 7,761 7,488 1,919 2,203
Indonesia................................................................... 4,467 4,160 3,810 3,424
Malaysia ................................................................... 5,794 6,582 761 762
Singapore .................................................................. 9,327 9,809 1,333 1,412
Taiwan.....................................................................
.. 2,798 3,111 2,127 2,118
Other
........................................................................ 8,996 9,207 2,840 2,584
------- ------- ------- -------
Total
........................................................................ 168,152 183,514 250,291 245,174
------- ------- ------- -------
1 Revenue (defined as 'Net operating income before loan
impairment charges and other credit risk provisions') is
attributable to countries based on the location of the principal
operations of the subsidiary or branch.
2 Non-current assets consist of property, plant and equipment,
goodwill, other intangible assets, interests in associates and
joint ventures and certain other assets.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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March 21, 2017 08:00 ET (12:00 GMT)
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