HSBC 2009 Annual Report Download - page 232

HSBC HOLDINGS PLC
Report of the Directors: Risk (continued)
Credit risk > Credit quality > Past due but not impaired // Impaired loans and advances / Impairment allowances
230
Up to 29
days
30-59
days
60-89
days
90-179
days
180 days
and over Total
US$m US$m US$m US$m US$m US$m
At 31 December 2008
Items in the course of collection from other banks .............. 66 – – – – 66
Loans and advances held at amortised cost .......................... 31,034 10,814 5,493 621 460 48,422
– loans and advances to banks ......................................... 41 – – – – 41
– loans and advances to customers .................................. 30,993 10,814 5,493 621 460 48,381
Financial investments
– debt securities ................................................................ 32 – – – – 32
Other assets ........................................................................... 45 22 118 7 27 219
– endorsements and acceptances ...................................... 21 6 1 2 – 30
– other ............................................................................... 24 16 117 5 27 189
31,177 10,836 5,611 628 487 48,739
Impaired loans and advances
Impaired loans and advances to customers and banks by industry sector
(Audited)
Impaired loans and advances at
31 December 2009
Impaired loans and advances at
31 December 2008
Individually
assessed
Collectively
assessed Total
Individually
assessed26
Collectively
assessed26 Total
US$m US$m US$m US$m US$m US$m
Banks .......................................................... 239 – 239 70 – 70
Customers ................................................... 14,767 15,839 30,606 7,922 17,430 25,352
Personal8 ................................................. 1,977 15,451 17,428 1,538 17,071 18,609
Corporate and commercial ..................... 11,839 387 12,226 6,086 357 6,443
Financial ................................................. 951 1 952 298 2 300
15,006 15,839 30,845 7,992 17,430 25,422
For footnote, see page 291.
Collateral and other credit enhancements
obtained
(Audited)
HSBC obtained assets by taking possession of
collateral held as security, or calling upon other
credit enhancements, as follows:
Carrying amount
obtained in:
2009 2008
US$m US$m
Nature of assets
Residential property ..................... 1,587 2,562
Commercial and industrial
property ................................... 93 21
Other ............................................ 355 382
2,035 2,965
Repossessed properties are made available for
sale in an orderly fashion, with the proceeds used to
reduce or repay the outstanding indebtedness. If
excess funds arise after the debt has been repaid,
they are made available either to repay other secured
lenders with lower priority or are returned to the
customer. HSBC does not generally occupy
repossessed properties for its business use.
Impairment allowances and charges on
loans and advances to customers and banks
(Audited)
The tables below analyse by geographical region the
impairment allowances recognised for impaired
loans and advances that are either individually
assessed or collectively assessed, and collective
impairment allowances on loans and advances
classified as not impaired.