HSBC 2002 Annual Report Download - page 258

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
256
During 2002, the HSBC QUEST has subscribed at market value for 6,147,311 ordinary shares at a total cost of
US$68 million (2001: US$39 million). HSBC provided US$nil (2001: US$nil) for this purpose.
9,564,355 ordinary shares (2001: 8,774,315 shares) were transferred from the HSBC QUEST to participants in
HSBC’ s Savings-Related Share Option Plan in the UK on exercise of their options. US$68 million (2001: US$39
million) was received from the share option plan participants. The price paid by option holders, ranged from £3.059
to £6.7536 (2001: £1.806 to £6.7536) per ordinary share of US$0.50.
At 31 December 2002, the trust held 1,488,895 ordinary shares (2001: 4,905,939 shares) of US$0.50 with a market
value of US$16,474,634 (2001: US$57,308,030) in respect of these options. Dividends on these shares are waived
by the QUEST.
HSBC has taken advantage of the exemptions applicable to Inland Revenue approved SAYE share option schemes
and equivalent overseas schemes under Urgent Issues Task Force Abstract 17 (revised 2000) ‘Employee share
schemes’ .
37 Analyses of assets and liabilities
(a) Assets subject to sale and repurchase transactions
2002 2001
US$m US$m
Total assets subject to sale and repurchase transactions ................................... 20,061 28,973
(b) Assets leased to customers
2002 2001
US$m US$m
Loans and advances to customers ..................................................................... 9,003 7,523
Tangible fixed assets – equipment on operating leases (Note 25(a))................ 3,264 2,666
12,267 10,189
The cost of assets acquired during 2002 for letting to customers under finance leases and hire purchase contracts
by HSBC amounted to US$3,866 million (2001: US$4,097 million).
(c) Assets charged as security for liabilities
HSBC has pledged assets as security for liabilities included under the following headings:
Amount of liability secured
2002 2001
US$m US$m
Deposits by banks ............................................................................................. 1,661 290
Customer accounts............................................................................................ 4,204 5,371
Debt securities in issue ..................................................................................... 1,437 1,692
Other liabilities ................................................................................................. 2,884 3,175
10,186 10,528