HSBC 2005 Annual Report Download - page 150

HSBC HOLDINGS PLC
Financial Review (continued)
148
Risk elements
The following table provides an analysis of risk elements in the loan portfolios at 31 December for the past five years:
At 31 December
2005
US$m
2004
US$m
2003
US$m
2002
US$m
2001
US$m
Impaired loans
Europe ....................................................... 5,081 6,053 5,680 4,479 3,605
Hong Kong ................................................ 506 696 1,670 1,707 2,008
Rest of Asia-Pacific ................................... 945 1,172 1,519 2,008 2,692
North America ........................................... 4,045 3,875 4,651 1,672 660
South America ........................................... 891 657 696 476 544
11,468 12,453 14,216 10,342 9,509
Troubled debt restructurings
Europe ....................................................... 35 34 159 41 –
Hong Kong ................................................ 198 436 571 396 381
Rest of Asia-Pacific ................................... 121 56 68 89 131
North America ........................................... 160 144 210 4 3
South America ........................................... 732 693 837 669 144
1,246 1,363 1,845 1,199 659
Unimpaired loans contractually past due
90 days or more as to principal or
interest
Europe ....................................................... 592 68 34 16 15
Hong Kong ................................................ 74 67 205 193 98
Rest of Asia-Pacific ................................... 40 56 45 33 38
North America ........................................... 928 1,171 1,252 42 52
South America ........................................... ––2747
1,634 1,362 1,538 291 250
Risk elements on loans
Europe ....................................................... 5,708 6,155 5,873 4,536 3,620
Hong Kong ................................................ 778 1,199 2,446 2,296 2,487
Rest of Asia-Pacific ................................... 1,106 1,284 1,632 2,130 2,861
North America ........................................... 5,133 5,190 6,113 1,718 715
South America ........................................... 1,623 1,350 1,535 1,152 735
14,348 15,178 17,599 11,832 10,418
Assets held for resale
Europe ....................................................... 205 27 32 26 84
Hong Kong ................................................ 49 75 2 17 19
Rest of Asia-Pacific ................................... 31 21 30 54 32
North America ........................................... 634 708 794 101 14
South America............................................ 40 ––––
959 831 858 198 149
Total risk elements
Europe ....................................................... 5,913 6,182 5,905 4,562 3,704
Hong Kong ................................................ 827 1,274 2,448 2,313 2,506
Rest of Asia-Pacific ................................... 1,137 1,305 1,662 2,184 2,893
North America ........................................... 5,767 5,898 6,907 1,819 729
South America ........................................... 1,663 1,350 1,535 1,152 735
15,307 16,009 18,457 12,030 10,567
%%%%%
Loan impairment allowances as a
percentage of risk elements on loans ..... 79.2 82.7 77.9 77.2 78.5
Interest foregone on impaired loans
Interest income that would have been recognised
under the original terms of the impaired interest and
restructured loans amounted to approximately
US$275 million in 2005, compared with
US$280 million in 2004. Interest income of
approximately US$120 million from such loans was
recorded in 2005, compared with US$182 million in
2004.