5 March 2007
HSBC HOLDINGS PLC 2006 FINAL RESULTS – HIGHLIGHTS
• Total operating income up 14 per cent to US$70,070 million (US$61,704 million in 2005).
For the year:
• Net operating income up 10 per cent to US$54,793 million (US$49,836 million in 2005).
• Group pre-tax profit up 5 per cent to US$22,086 million (US$20,966 million in 2005).
• Profit attributable to shareholders of the parent company up 5 per cent to US$15,789 million (US$15,081 million in 2005).
• Return on average invested capital of 14.9 per cent (15.9 per cent in 2005).
• Earnings per share up 3 per cent to US$1.40 (US$1.36 in 2005).
Dividend and capital position:
• Fourth interim dividend for 2006 of US$0.36 per ordinary share, an increase of 16.1 per cent; total dividends declared in respect of 2006 of US$0.81 per share, an increase of 11.0 per cent over 2005.
• Tier 1 capital ratio of 9.4 per cent and total capital ratio of 13.5 per cent.
WorldReginfo - 1ea279eb-ccb1-4e27-97f5-c3b684a6975f
HSBC Holdings plc ______
HSBC HOLDINGS REPORTS PRE-TAX PROFIT OF US$22,086 MILLION
HSBC made a profit before tax of US$22,086 million, an increase of US$1,120 million, or 5 per cent, over 2005.
Net interest income of US$34,486 million was US$3,152 million, or 10 per cent, higher than 2005.
Net operating income before loan impairment charges and other credit risk provisions of US$65,366 million was US$7,729 million, or 13 per cent, higher than 2005.
Operating expenses of US$33,553 million rose US$4,039 million, or 14 per cent, compared with 2005. On an underlying basis and expressed in terms of constant currency, operating expenses increased by 11 per cent.
HSBC’s cost efficiency ratio was 51.3 per cent compared with 51.2 per cent in 2005.
Loan impairment charges and other credit risk provisions were US$10,573 million in 2006, US$2,772 million higher than 2005.
The tier 1 capital and total capital ratios for the Group remained strong at 9.4 per cent and 13.5 per cent, respectively, at 31 December 2006.
The Group’s total assets at 31 December 2006 were US$1,861 billion, an increase of US$359 billion, or 24 per cent, since 31 December 2005.
Financial statements for the year ended 31 December 2006 are prepared in accordance with International Financial Reporting Standards (‘IFRSs’) as endorsed by the EU. Comparative figures for 2005 are also prepared under IFRSs.
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HSBC Holdings plc ______
Geographical distribution of results Year ended Year ended Figures in US$m 31 December 2006 31 December 2005 Profit before tax % % Europe 6,974 31.5 6,356 30.3 Hong Kong 5,182 23.5 4,517 21.5 Rest of Asia-Pacific 3,527 16.0 2,574 12.3 North America 4,668 21.1 5,915 28.2 Latin America 1,735 7.9 1,604 7.7 22,086 100.0 20,966 100.0 Tax expense (5,215) (5,093 ) Profit for the year 16,871 15,873 Profit attributable to shareholders of the parent company 15,789 15,081 Profit attributable to minority interests 1,082 792