HSBC 2008 Annual Report Download - page 236

HSBC HOLDINGS PLC
Report of the Directors: Risk (continued)
Credit risk > Risk elements / Liquidity and funding > Policies / Primary sources of funding
234
Analysis of risk elements
(Unaudited)
At 31 December
2008
US$m
2007
US$m
2006
US$m
2005
US$m
2004
US$m
Impaired loans
Europe ......................................................... 6,844 6,266 5,858 5,081 6,053
Hong Kong ................................................. 852 433 454 506 696
Rest of Asia-Pacific .................................... 1,114 1,088 1,188 945 1,172
North America1 ........................................... 14,285 9,662 6,108 4,602 4,204
Latin America ............................................. 2,327 2,145 1,478 1,226 932
25,422 19,594 15,086 12,360 13,057
Troubled debt restructurings
Europe ......................................................... 366 648 360 239 213
Hong Kong ................................................. 165 146 189 198 436
Rest of Asia-Pacific .................................... 119 34 73 121 56
North America ............................................ 5,618 3,322 1,712 1,417 1,600
Latin America ............................................. 1,067 848 915 878 830
7,335 4,998 3,249 2,853 3,135
Unimpaired loans contractually
past due 90 days or more as to
principal or interest
Europe ......................................................... 635 202 237 592 68
Hong Kong ................................................. 43 49 79 74 67
Rest of Asia-Pacific .................................... 274 156 78 40 56
North America1 ........................................... 108 24 78 32 567
Latin America ............................................. 21 421 165 4 –
1,081 852 637 742 758
Trading loans classified as in default2
North America ............................................ 561 675 127 11 –
Risk elements on loans
Europe ......................................................... 7,845 7,116 6,455 5,912 6,334
Hong Kong ................................................. 1,060 628 722 778 1,199
Rest of Asia-Pacific .................................... 1,507 1,278 1,339 1,106 1,284
North America ............................................ 20,572 13,683 8,025 6,062 6,371
Latin America ............................................. 3,415 3,414 2,558 2,108 1,762
34,399 26,119 19,099 15,966 16,950
Assets held for resale
Europe ......................................................... 81 59 30 205 27
Hong Kong ................................................. 26 29 42 49 75
Rest of Asia-Pacific .................................... 13 7 17 31 21
North America ............................................ 1,758 1,172 999 582 664
Latin America ............................................. 113 101 91 103 44
1,991 1,368 1,179 970 831
Total risk elements
Europe ......................................................... 7,926 7,175 6,485 6,117 6,361
Hong Kong ................................................. 1,086 657 764 827 1,274
Rest of Asia-Pacific .................................... 1,520 1,285 1,356 1,137 1,305
North America ............................................ 22,330 14,855 9,024 6,644 7,035
Latin America ............................................. 3,528 3,515 2,649 2,211 1,806
36,390 27,487 20,278 16,936 17,781
% % % % %
Loan impairment allowances as a
percentage of risk elements on loans3 .... 70.8 75.5
71.6 71.2 74.1
1 Restated for 2004 to 2007 as a result of a reclassification from ‘Unimpaired loans contractually past due 90 days or more as to
principal or interest’ to ‘Impaired’, in respect of an element of a credit card portfolio.
2 Classified as grades 6 and 7 in 2004 to 2007.
3 Ratio excludes trading loans classified as in default.