HSBC 2004 Annual Report Download - page 273

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
271
The following table provides an analysis of contractual maturities and weighted average yields of investment debt
securities as at 31 December 2004:
Within one year
After one year but
within five years
After five years but
within ten years After ten years
Amount Yield Amount Yield Amount Yield Amount Yield
US$m % US$m % US$m % US$m %
Available-for-sale
US Treasury and
Goverment agencies .. 4,284 2.50 1,724 3.11 1,114 4.48 11,877 4.10
UK Government ............ – – 4,411 4.40 – – – –
Hong Kong Government 401 2.74 1,722 3.19 341 4.99 – –
Other governments ........ 9,515 3.03 13,901 4.66 3,738 4.33 342 5.85
Asset-backed securities . 69 1.45 937 1.81 1,860 0.91 10,430 0.57
Corporate debt and
other securities ........... 29,358 2.91 41,740 3.37 4,084 4.98 3,476 2.19
43,627 64,435 11,137 26,125
Held-to-maturity
US Treasury and
Government agencies 122 1.66 90 7.14 169 6.53 2,659 6.34
Obligations of US state
and political sub-
divisions .................... 9 6.85 49 6.26 86 5.55 321 5.31
Corporate debt and
other securities ........... 145 2.49 – – – – 231 5.93
276 139 255 3,211
The maturity distributions of asset-backed securities are presented in the above table based upon contractual maturity
dates. The weighted average yield for each range of maturities in the above table is calculated by dividing the
annualised interest income for the year ended 31 December 2004 by the book amount of available-for-sale debt
securities at that date. The yields do not include the effect of related derivatives.
Proceeds from the sale and redemption of investment securities were US$240,064 million (2003:
US$153,910 million, 2002: US$77,105 million). Gross realised gains of US$215 million (2003: US$182 million,
2002: US$247 million) and gross realised losses of US$28 million (2003: US$21 million, 2002: US$77 million) were
recorded on those sales. All gains and losses arose on sales of securities from the available-for-sale portfolio.
Realised gains and losses are computed using the weighted average cost method. There were no gains recorded on
securities transferred from the investment book to the trading book.
The cost of investment securities purchased during the year ended 31 December 2004 was US$247,778 million
(2003: US$164,817 million, 2002: US$85,837 million).
19 Equity shares
2004 2003 2002
Carrying
value
Market
valuation
Carrying
value
Market
valuation
Carrying
value
Market
valuation
US$m US$m US$m US$m US$m US$m
Investment securities:
– listed on a recognised UK exchange . 35 54 44 65 14 23
– listed in Hong Kong .......................... 86 207 238 379 241 400
– listed elsewhere ................................. 1,493 1,805 1,531 1,757 1,163 1,207
– unlisted ............................................. 3,095 3,522 3,577 4,016 2,866 3,127
4,709 5,588 5,390 6,217 4,284 4,757
Other securities:
– listed on a recognised UK exchange . 645 129 670
–listed in Hong Kong .......................... 129 20 9
–listed elsewhere ................................. 12,914 7,303 2,576
– unlisted ............................................. 922 37 125
19,319 12,879 7,664