HSBC 2004 Annual Report Download - page 275

273
Although HSBC owns more than 50 per cent of the equity capital of Framlington Group Limited, the agreement
with the other shareholder means that there are severe long-term restrictions which substantially hinder HSBC’ s
rights over the assets and management of the entity. HSBC does however continue to exercise significant
influence and together with the other shareholder controls the entity.
(c) HSBC’ s share of total operating income in the joint venture is US$44 million (2003: US$36 million).
21 Interests in associates
2004
US$m
At 1 January 2004 ................................................................................................................................................................ 1,263
Additions ............................................................................................................................................................................. 2,117
Amortisation of goodwill ..................................................................................................................................................... (4)
Disposals .............................................................................................................................................................................. (98)
Retained profits and losses (Note 35) ................................................................................................................................... 122
Exchange and other movements ........................................................................................................................................... 40
At 31 December 2004 ......................................................................................................................................................... 3,440
Included within additions is US$566 million of goodwill which has been determined on a provisional basis. There is
no goodwill included in the interests in associates at 31 December 2003.
(a) 2004 2003
US$m US$m
Shares in banks ........................................................................................................................ 2,879 777
Other ........................................................................................................................................ 561 486
3,440 1,263
Listed shares (all listed outside the United Kingdom and Hong Kong) .................................... 681 367
Unlisted shares ......................................................................................................................... 2,759 896
3,440 1,263
(b) The principal associates of HSBC are:
Financial
statements
made up to
Country of
incorporation
Principal
activity
HSBC’s
interest in
equity capital
Issued
equity
capital
Bank of Communications
Limited ........................... 30.09.04
People’ s
Republic of
China Banking 19.9% RMB39,070m
Industrial Bank Company
Limited ........................... 30.09.04
People’ s
Republic of
China Banking 15.98% RMB3,999m
The Saudi British Bank ....... 31.12.04 Saudi Arabia Banking 40% SR2,500m
The Cyprus Popular Bank
Limited2........................... 31.12.04 Cyprus Banking 21.39% C£152m
British Arab Commercial
Bank Limited .................. 31.12.04 England Banking 46.51%
US$81m
£32m fully paid
£5m nil paid
Erisa ................................... 31.12.04 France Insurance 49.99% €65m
Wells Fargo HSBC Trade
Bank, N.A ...................... 31.12.04 United States Trade finance 20% –3
AEA Investors LP................ 31.12.04 United States Private equity
investment fund
79.87% –4
Barrowgate Limited ............ 31.12.04 Hong Kong
Property
investment 24.64% –1
1Issued equity capital is less than HK$1 million.
2Trading as Laiki Group.
3Issued equity capital is less than US$1 million.
4Limited partnership.
All the above interests in associates are owned by subsidiaries of HSBC Holdings.