AmazonScience/document-haystack

1Strategic report2 – Global Foreign Exchange revenue was 3l4argely in line with 2022 and reflected 5continued elevated client activity and trading 6facilitation, as we captured the benefit of 7market-wide volatility relating to interest rate 8and inflation differentials.9 – Eq10uities revenue fell by $0.5bn or 45%, due 11to lower client activity as a result of reduced 12market volatility.13 – Se14curities Financing revenue rose by $0.2bn 15or 22%, driven by higher client flows, 16growth in prime finance and the onboarding 17of new clients.18In Banking, revenue increased by  19$1.8bn or 27%.20 – GP21S revenue increased by $1.6bn or 56%, 22driven by margin growth as a result of the 23rising global interest rate environment and 24business pricing actions.25 – Ca26pital Markets and Advisory revenue rose 27by $0.3bn or 41%, primarily from increased 28financing activities and higher interest 29rates, against a backdrop of a smaller global 30market fee pool.31 – Cre dit and Lending revenue decreased by 32$0.3bn or 12%, due to weaker client demand.33 – Ban34king Other revenue increased by $0.2bn 35or 91%, from higher interest on capital held 36in the business.37In GBM Other, there was a $0.4bn reduction 38in revenue, mainly due to lower Markets 39Treasury allocated revenue, including disposal 40losses on repositioning, higher HSBC Holdings 41interest expense and the adverse impacts of 42hyperinflationary accounting.43ECL of $0.3bn were $0.2bn lower on 44a constant currency basis, reflecting a 45favourable credit performance, including lower 46charges in the commercial real estate sector in 47mainland China.48Operating expenses of $9.9bn increased by 49$0.5bn or 6% on a constant currency basis 50due to the impact of higher inflation and 51strategic investments, which was in part 52mitigated by business actions and a reduction 53in restructuring and other related costs 54following the completion of our cost-saving 55programme at the end of 2022.56Management view of revenue 572023 2022 2021 2023 vs 202258$m $m $m $m %59Markets and Securities Services 9,008 8,874 7,684 134 260 – Se61curities Services 2,411 2,022 1,776 389 1962 – Gl63obal Debt Markets 823 697 819 126 1864 – Glob65al Foreign Exchange 4,133 4,137 3,097 (4) —66 – Equ67ities 552 1,003 1,156 (451) (45)68 – Se69curities Financing 1,116 918 827 198 2270 – Cre71dit and funding valuation adjustments (27) 97 9 (124) >(100)72Banking 8,540 6,721 5,858 1,819 2773 – Gl74obal Trade and Receivables Finance 669 678 626 (9) (1)75 – Gl76obal Payments Solutions 4,483 2,879 1,581 1,604 5677 – Cre78dit and Lending 1,970 2,231 2,332 (261) (12)79 – Ca80pital Markets and Advisory 1,033 731 1,180 302 4181 – Ot82her 1 385 202 139 183 9183GBM Other (1,433) (993) (456) (440) (44)84 – Pr85incipal Investments (4) 55 372 (59) >(100)86 – Ot87her 2 (1,429) (1,048) (828) (381) (36)88Net operating income3 16,115 14,602 13,086 1,513 1089 – of90 which: transaction banking 4 11,696 9,716 7,080 1,980 20911 Includes portfolio management, earnings on capital and other capital allocations on all Banking products.922 Includes notional tax credits and Markets Treasury, HSBC Holdings interest expense and hyperinflation.933 ‘Net operating income’ means net operating income before change in expected credit losses and other credit impairment charges (also referred to as ‘revenue’).944  Tr95ansaction banking comprises Securities Services, Global Foreign Exchange (net of revenue shared with CMB), Global Trade and Receivables Finance and Global 96Payments Solutions.972023 2022 202198Notable items $m $m $m99Revenue100Restructuring and other related costs — (184) (395)101Disposal losses on Markets Treasury repositioning (270) — —102Currency translation on revenue notable items — 3 25103Operating expenses104Disposals, acquisitions and related costs 3 — —105Restructuring and other related costs 21 (252) (195)106Currency translation on operating expenses notable items — (4) 20107Financial performance 108Profit before tax of $5.9bn was $1.2bn or 26% 109higher than in 2022 on a constant currency 110basis. This was driven by an increase in 111revenue of $1.5bn or 10%, notably from higher 112net interest income in GPS and Securities 113Services. ECL fell by $0.2bn, while operating 114expenses increased by $0.5bn or 6%.115Revenue of $16.1bn was $1.5bn or 10% higher 116on a constant currency basis.117In Markets and Securities Services (‘MSS’), 118revenue was marginally higher by $0.1bn or 2%.119 – Se120curities Services revenue grew by $0.4bn 121or 19%, from higher net interest income as 122global interest rates rose.123 – Gl124obal Debt Markets revenue increased by 125$0.1bn or 18%, from favourable primary 126market conditions and higher client trading 127volumes as the market environment 128normalised. The 2022 performance 129was impacted by lower primary activity 130and client flow due to uncertainty and 131challenging market conditions.132HSBC Holdings plc Annual Report and Accounts 2023 35133Global businesses The secret object #4 is a "pillow".