HSBC 2010 Annual Report Download - page 332

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
23 – Interests in associates and joint ventures
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The rights and obligations that HSBC retains from its continuing involvement in securitisations are initially recorded
as an allocation of the fair value of the financial asset between the part that is derecognised and the part that continues
to be recognised on the date of transfer. The following table analyses the carrying amount of financial assets that
qualified for partial derecognition, the extent of HSBC’s continuing involvement and the associated liabilities:
HSBC’s continuing involvement in financial assets qualifying for partial derecognition
Securitisations at 31 December
2010 2009
US$m US$m
Carrying amount of assets (original) ........................................................................................................ 17,427 17,427
Carrying amount of assets (currently recognised) .................................................................................... 42 139
Carrying amount of associated liabilities (currently recognised) ............................................................ 21 69
23 Interests in associates and joint ventures
Associates
Principal associates of HSBC
At 31 December 2010 At 31 December 2009
Carrying
amount
Fair
value
Carrying
amount
Fair
value
US$m US$m US$m US$m
Listed
Bank of Communications Co., Limited ........................................ 6,944 10,773 5,110 10,820
Industrial Bank Co., Limited ........................................................ 1,769 2,799 1,084 3,774
Ping An Insurance (Group) Company of China, Limited ............ 5,596 13,735 4,391 10,803
SABB Takaful Company .............................................................. 28 49 29 99
The Saudi British Bank ................................................................ 1,580 3,224 1,376 3,472
15,917 30,580 11,990 28,968
At 31 December 2010
Country of
incorporation
HSBC’s
interest in
equity capital
Issued
equity
capital
Listed
Bank of Communications Co., Limited ........................................................... PRC1 19.03% RMB56,260m
Industrial Bank Co., Limited ........................................................................... PRC1 12.80% RMB5,992m
Ping An Insurance (Group) Company of China, Limited ............................... PRC1 16.13% RMB7,345m
SABB Takaful Company ................................................................................. Saudi Arabia 32.50% SR340m
The Saudi British Bank ................................................................................... Saudi Arabia 40.00% SR7,500m
Unlisted
Barrowgate Limited3 ........................................................................................ Hong Kong 24.64% –
Vietnam Technological and Commercial Joint Stock Bank ............................ Vietnam 19.79% VND6,932,184m
Yantai Bank Co., Limited2 ............................................................................... PRC1 20.00% RMB2,000m
1 People’s Republic of China.
2 Yantai Bank Co., Limited was previously known as Yantai City Commercial Bank. The investment is held through Hang Seng Bank
Limited, a 62.14% owned subsidiary of HSBC.
3 Issued equity capital is less than HK$1m.
All the above investments in associates are owned by subsidiaries of HSBC Holdings.
During 2010, HSBC disposed of its 48.92% interest in the equity capital of British Arab Commercial Bank Public
Limited Company, which was previously reported as an unlisted principal associate.
Details of all HSBC associates and joint ventures, as required under Section 409 Companies Act 2006, will be
annexed to the next Annual Return of HSBC Holdings filed with the UK Registrar of Companies.
HSBC had US$12,540m (2009: US$9,501m) of investments in associates and joint ventures listed in Hong Kong.
For the year ended 31 December 2010, HSBC’s share of associates and joint ventures’ tax on profit was US$774m
(2009: US$491m), which is included within share of profit in associates and joint ventures in the income statement.