HSBC 2003 Annual Report Download - page 41

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government decrees and renegotiation of banking
contracts.
Amounts written off fixed asset investments
were dominated by a US$143 million charge writing
down the carrying value of a major European life
assurer in which CCF had for some time held a
strategic minority stake.
The US$28 million share of operating losses in
joint ventures principally reflected HSBC’s share of
the ongoing costs of Merrill Lynch HSBC for the
first half of 2002. Following the acquisition by
HSBC of its joint venture partner’s share on 28 June
2002, these results were consolidated fully on a line
by line basis.
Gains on disposal of investments of
US$532 million included profit on the sale of CCF’s
stake in Lixxbail to its joint venture partner, and
HSBC’s 6.99 per cent stake in Banco Santiago S.A.
In addition, disposal gains of US$170 million were
realised from sales of investment debt securities
made to adjust to changes in interest rate conditions.
In aggregate, disposal gains on investments were
US$222 million lower than in 2001.