HSBC 2010 Annual Report Download - page 109

107
Overview Operating & Financial Review Governance Financial Statements Shareholder Information
Total personal lending
(Unaudited)
UK
Rest of
Europe US13
Rest of
North
America
Other
regions14 Tota l
US$m US$m US$m US$m US$m US$m
At 31 December 2010
Residential mortgages ........................................ 103,037 8,581 57,630 21,212 78,221 268,681
Other personal lending ....................................... 25,636 24,463 51,686 8,589 46,265 156,639
– motor vehicle finance .................................. –35 72 55 5,886 6,048
– credit cards .................................................. 11,612 1,916 33,744 1,334 13,778 62,384
– second lien mortgages ................................. 846 29,322 578 422 11,170
– other ............................................................. 13,178 22,510 8,548 6,622 26,179 77,037
Total personal lending ........................................ 128,673 33,044 109,316 29,801 124,486 425,320
Impairment allowances
Residential mortgages .................................... (275) (58) (3,592) (25) (297) (4,247)
Other personal lending ................................... (1,348) (467) (4,436) (179) (1,616) (8,046)
– motor vehicle finance .............................. –(5) – – (244) (249)
– credit cards .............................................. (506) (216) (2,256) (62) (483) (3,523)
– second lien mortgages ............................. (58) –(889) (19) – (966)
– other ......................................................... (784) (246) (1,291) (98) (889) (3,308)
Total impairment allowances on personal
lending ............................................................ (1,623) (525) (8,028) (204) (1,913) (12,293)
– as a percentage of total personal lending .... 1.3% 1.6% 7.3% 0.7% 1.5% 2.9%
US$m US$m US$m US$m US$m US$m
At 31 December 2009
Residential mortgages ........................................ 100,667 9,205 65,784 20,807 64,206 260,669
Other personal lending ....................................... 29,018 23,672 69,275 8,068 43,504 173,537
– motor vehicle finance .................................. – 65 5,771 99 6,378 12,313
– credit cards .................................................. 12,427 1,820 39,374 1,118 13,319 68,058
– second lien mortgages ................................. 1,068 2 11,786 695 472 14,023
– other ............................................................. 15,523 21,785 12,344 6,156 23,335 79,143
Total personal lending ........................................ 129,685 32,877 135,059 28,875 107,710 434,206
Impairment allowances
Residential mortgages .................................... (151) (41) (4,416) (7) (233) (4,848)
Other personal lending ................................... (1,443) (552) (7,691) (206) (2,349) (12,241)
– motor vehicle finance .............................. – (7) (211) (1) (351) (570)
– credit cards .............................................. (524) (233) (3,895) (42) (854) (5,548)
– second lien mortgages ............................. (79) – (1,608) (56) – (1,743)
– other ......................................................... (840) (312) (1,977) (107) (1,144) (4,380)
Total impairment allowances on personal
lending ............................................................ (1,594) (593) (12,107) (213) (2,582) (17,089)
– as a percentage of total personal lending .... 1.2% 1.8% 9.0% 0.7% 2.4% 3.9%
For footnotes, see page 174.
Mortgage lending
We offer a wide range of mortgage products
designed to meet customer needs, including capital
repayment mortgages subject to fixed or variable
interest rates and products designed to meet demand
for housing loans with more flexible payment
structures. We underwrite both first lien residential
mortgages and loans secured on second lien
mortgages.
Interest-only mortgages are those for which
customers make regular payments of interest during
the life of the loan and repay the principal from the
sale of their home or alternative sources of funds.
Typically, with introductory interest-only mortgages,
the interest-only element is for a fixed term at the
start of the loan, after which principal repayments
commence.
Affordability mortgages include all products
where the customers’ monthly payments are set at