HSBC 2004 Annual Report Download - page 151

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The following tables show details of the movements
in HSBC’ s provisions for bad and doubtful debts by
location of lending office for each of the past five
years. A discussion of the material movements in the
charge for provisions by region follows these tables.
Year ended 31 December 2004
Europe
Hong
Kong
Rest of
Asia-
Pacific
North
America
South
America Total
US$m US$m US$m US$m US$m US$m
Provisions at 1 January ....................................... 4,435 1,055 1,181 6,461 583 13,715
Amounts written off:
Commercial, industrial and international trade (298) (35) (165) (72) (65) (635)
Real estate ....................................................... (30) (55) (17) (3) (3) (108)
Non-bank financial institutions ........................ (14) (2) (1) (3) – (20)
Other commercial ............................................ (211) (33) (42) (206) (24) (516)
Residential mortgages ..................................... (10) (52) (8) (493) (3) (566)
Other personal ................................................. (768) (161) (179) (5,640) (303) (7,051)
Total amounts written off ................................ (1,331) (338) (412) (6,417) (398) (8,896)
Recoveries of amounts written off in previous
years:
Commercial, industrial and international trade 27 10 4 73 4 118
Real estate ....................................................... 3–104–17
Non-bank financial institutions ........................ 3––––3
Other commercial ............................................ 639343082
Residential mortgages ..................................... 112 118 –32
Other personal ................................................. 97 21 41 455 46 660
Total recoveries ............................................... 137 46 65 584 80 912
Net charge to profit and loss account1:
Banks ............................................................... (7) – (1) – (2) (10)
Commercial, industrial and international trade 181 (56) 49 (44) 47 177
Real estate ....................................................... 21 (15) (29) (1) 1 (23)
Non-bank financial institutions ........................ 19 (3) (1) – – 15
Governments ................................................... (1)––1––
Other commercial ............................................ (68) (29) (18) (37) (38) (190)
Residential mortgages ..................................... 4 (12) 4 485 4 485
Other personal ................................................. 1,037 116 144 4,783 259 6,339
General provisions ........................................... (161) (224) (48) (1) (2) (436)
Total charge ..................................................... 1,025 (223) 100 5,186 269 6,357
Foreign exchange and other movements ............. 547 (7) 15 (1) 44 598
Provisions at 31 December .................................. 4,813 533 949 5,813 578 12,686
Provisions against banks:
Specific provisions .......................................... 14–3––17
Provisions against customers:
Specific provisions .......................................... 4,036 331 791 4,420 522 10,100
General provisions2 ......................................... 763 202 155 1,393 56 2,569
Provisions at 31 December .................................. 4,813 533 949 5,813 578 12,686
Provisions against customers as a percentage
of loans and advances to customers: %%%%%%
Specific provisions .......................................... 1.45 0.42 1.28 1.73 6.94 1.48
General provisions ........................................... 0.27 0.25 0.25 0.55 0.74 0.38
Total .................................................................... 1.72 0.67 1.53 2.28 7.68 1.86
1See table below ‘Net charge to the profit and loss account for bad and doubtful debts’.
2General provisions are allocated to geographical segments based on the location of the office booking the provision. Consequently, the
general provision booked in Hong Kong may cover assets booked in branches located outside Hong Kong, principally in the Rest of
Asia-Pacific, as well as those booked in Hong Kong.