HSBC 2010 Annual Report Download - page 111

109
Overview Operating & Financial Review Governance Financial Statements Shareholder Information
Mortgage lending products
(Unaudited)
UK
Rest of
Europe US13
Rest of
North
America
Other
regions14 Total
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
Second lien mortgages ................................................. 846 2 9,322 578 422 11,170
Total mortgage lending ................................................ 103,883 8,583 66,952 21,790 78,643 279,851
Second lien as a percentage of total mortgage lending . 0.8% 0.0% 13.9% 2.7% 0.5% 4.0%
Impairment allowances
Residential mortgages ............................................. (275) (58) (3,592) (25) (297) (4,247)
Second lien mortgages ............................................ (58) – (889) (19) – (966)
Total impairment allowances on mortgage lending (333) (58) (4,481) (44) (297) (5,213)
Interest-only (including endowment) mortgages ........ 45,039 51 – 908 1,282 47,280
Affordability mortgages, including ARMs ................. 1,089 326 18,494 274 7,855 28,038
Other ............................................................................ 102 – – – 183 285
Total interest-only and affordability mortgages .......... 46,230 377 18,494 1,182 9,320 75,603
– as a percentage of total mortgage lending ........... 44.5% 4.4% 27.6% 5.4% 11.9% 27.0%
Negative equity mortgages15 ....................................... 2,436 – 15,199 103 291 18,029
Other loan-to-value ratios greater than 90%16 ............. 5,802 263 10,460 1,698 1,348 19,571
Total negative equity and other mortgages ................. 8,238 263 25,659 1,801 1,639 37,600
– as a percentage of total mortgage lending ........... 7.9% 3.1% 38.3% 8.3% 2.1% 13.4%
At 31 December 2009
Residential mortgages ................................................. 100,667 9,205 65,784 20,807 64,206 260,669
Second lien mortgages ................................................. 1,068 2 11,786 695 472 14,023
Total mortgage lending ................................................ 101,735 9,207 77,570 21,502 64,678 274,692
Second lien as a percentage of total mortgage lending . 1.0% – 15.2% 3.2% 0.7% 5.1%
Impairment allowances
Residential mortgages ............................................. (151) (41) (4,416) (7) (233) (4,848)
Second lien mortgages ............................................ (79) – (1,608) (56) – (1,743)
Total impairment allowances on mortgage lending (230) (41) (6,024) (63) (233) (6,591)
Interest-only (including endowment) mortgages ........ 45,471 – – 1,154 1,127 47,752
Affordability mortgages, including ARMs ................. 2,681 1,084 21,024 232 5,921 30,942
Other ............................................................................ 144 – – – 147 291
Total interest-only and affordability mortgages .......... 48,296 1,084 21,024 1,386 7,195 78,985
– as a percentage of total mortgage lending ........... 47.5% 11.8% 27.1% 6.4% 11.1% 28.8%
Negative equity mortgages15 ....................................... 6,412 – 20,229 163 488 27,292
Other loan-to-value ratios greater than 90%16 ............. 10,522 – 13,695 1,887 1,451 27,555
Total negative equity and other mortgages ................. 16,934 – 33,924 2,050 1,939 54,847
– as a percentage of total mortgage lending ........... 16.6% – 43.7% 9.5% 3.0% 20.0%
For footnotes, see page 174.
HSBC Finance held approximately US$51bn
of residential mortgage and second lien loans and
advances to personal customers secured on real
estate at 31 December 2010, 12% of the Group’s
gross loans and advances to personal customers.