HSBC 2001 Annual Report Download - page 99

97
Of this amount, US$2.8 billion was in-country
exposure, including US$0.8 billion of loan exposures
to the Argentine Government received in exchange
for debt securities. These figures are prepared in
accordance with the Bank of England Country
Exposure Report (Form C1) guidelines and therefore
exclude the exposures of insurance subsidiaries.
HSBC’s insurance subsidiaries’ exposures to
Argentina as at 31 December 2001 amounted to total
assets of US$0.7 billion, of which US$0.4 billion
related to long-term assurance assets attributable to
policyholders, mainly comprising loans to the
Argentine Government received in exchange for debt
securities. Non-performing loans net of suspended
interest were US$313 million, against which specific
provisions outstanding were US$191 million.
Additional general provisions of US$600 million
were raised at the end of 2001 to take account of the
substantially increased risk within the portfolio
subsequent to the collapse in economic conditions in
Argentina following its default on sovereign debt.
HSBC will continue to closely monitor
developments in Argentina and their effects on other
economies in the region. At present, HSBC expects
to continue to operate in Argentina although political
events may cause it to reassess its present policy and
may require it to take additional actions, including
significant restructuring of its Argentine operations.
Further deterioration in the Argentine economic and
political situation, could also lead to further
provisions and losses in the region for HSBC.
Analysis of loans and advances to customers by
geographical region and by type of customer
The following tables analyse loans by industry sector
and by the location of the principal operations of the
lending subsidiary or, in the case of The Hongkong
and Shanghai Banking Corporation Limited, HSBC
Bank plc, HSBC Bank Middle East and HSBC Bank
USA operations, by the location of the lending
branch.
Europe Hong Kong
Rest o
f
Asia-Pacific †Nort
h
America
Lati
n
America†
Gross
loans an
d
advances to
customers
Gross loans
b
y custome
r
type as a
% of total
gross
loans
Provisions
for ba
d
an
d
doubtful
debts
US$m US$m US$m US$m US$m US$m % US$m
31 December 2001
Personal:
Residential mortgages ...................... 27,282 23,125 5,134 21,809 865 78,215 24.7 (248)
Hong Kong SAR Government
Home Ownership Scheme............ – 8,123 – – – 8,123 2.6 –
Other personal.................................. 21,065 6,227 4,280 6,113 1,440 39,125 12.3 (1,208)
Total personal................................... 48,347 37,475 9,414 27,922 2,305 125,463 39.6 (1,456)
Corporate and commercial:
Commercial, industrial and
international trade........................ 38,476 9,662 11,282 8,600 2,138 70,158 22.1 (2,262)
Commercial real estate ..................... 9,475 8,474 2,412 5,826 128 26,315 8.3 (235)
Other property-relate
d
...................... 3,630 4,710 2,174 3,990 90 14,594 4.6 (315)
Governmen
t
...................................... 2,393 543 900 725 778 5,339 1.7 (18)
Other commercial*........................... 20,510 6,349 5,559 4,203 644 37,265 11.7 (1,008)
Total corporate and commercial 74,484 29,738 22,327 23,344 3,778 153,671 48.4 (3,838 )
Financial:
Non-bank financial institutions......... 11,329 1,546 908 12,524 166 26,473 8.3 (206 )
Settlement accounts.......................... 2,361 223 189 8,984 4 11,761 3.7 –
Total financial .................................. 13,690 1,769 1,097 21,508 170 38,234 12.0 (206 )
Total gross loans and advances to
customers..................................... 136,521 68,982 32,838 72,774 6,253 317,368 100.0 (5,500)
General provisions............................ (2,661)
Suspended interes
t
............................ (558)
Total................................................. 316,810 (8,161)
*Other commercial includes advances in respect of agriculture, transport, energy and utilities.
†Further analysis is given on page 100.