HSBC 2011 Annual Report Download - page 381

379
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
Details of all HSBC subsidiaries will be annexed to the next Annual Return of HSBC Holdings filed with the UK
Registrar of Companies.
All the above make their financial statements up to 31 December except for HSBC Bank Argentina S.A., whose
financial statements are made up to 30 June annually.
The principal countries of operation are the same as the countries of incorporation except for HSBC Bank Middle
East Limited which operates mainly in the Middle East and North Africa and HSBC Life (International) Limited
which operates mainly in Hong Kong.
During 2011 and 2010, none of the Group’s subsidiaries experienced significant restrictions on paying dividends or
repaying loans and advances.
SPEs consolidated by HSBC where HSBC owns less than 50% of the voting rights
Carrying value of total
consolidated assets Nature of SPE
2011 2010
US$bn US$bn
Barion Funding Limited ................................................................. 3.8 4.5 Structured investment conduit
Bryant Park Funding LLC .............................................................. 2.8 3.0 Conduit
HSBC Affinity Corporation I ......................................................... – 4.2 Securitisation
HSBC Funding Inc V ..................................................................... – 5.4 Securitisation
HSBC Home Equity Loan Corporation I ....................................... 2.1 2.8 Securitisation
HSBC Home Equity Loan Corporation II ...................................... 2.4 2.8 Securitisation
HSBC Receivables Funding, Inc. I ................................................ – 3.7 Securitisation
HSBC Receivables Funding, Inc. II ............................................... 1.9 2.0 Securitisation
Malachite Funding Limited ............................................................ 3.6 3.9 Structured investment conduit
Mazarin Funding Limited ............................................................... 8.0 10.3 Structured investment conduit
Metrix Funding Ltd ........................................................................ 0.7 1.4 Securitisation
Metrix Securities plc ....................................................................... 0.4 1.0 Securitisation
Regency Assets Limited ................................................................. 7.5 6.3 Conduit
Solitaire Funding Ltd ...................................................................... 12.5 13.5 Conduit
In addition to the above, HSBC consolidates a number of individually insignificant SPEs with total assets of
US$14.1bn. For further details, see ‘Special purpose entities’ on page 401.
In each of the above cases, HSBC has less than 50% of the voting rights, but consolidates because it has the majority
of risks and rewards of ownership of the SPE, or the substance of the relationship with the SPE is such that its
activities are conducted on behalf of HSBC according to its specific business needs so that HSBC obtains benefit
from the SPE’s operation. The consolidation of SPEs sponsored by HSBC is discussed on page 292.
27 Assets held for sale and other assets
Assets held for sale
2011 2010
US$m US$m
Disposal groups ........................................................................................................................................ 38,903 530
Non-current assets held for sale: 655 1,461
– property, plant and equipment ............................................................................................................... 589 1,333
– other ....................................................................................................................................................... 66 128
39,558 1,991
Disposal groups
At 31 December 2011, the majority of disposal groups held for sale related to the sale of the US Cards and Retail
Services business, the sale of 195 US branches, the sale of the private banking business in Japan, the sale of banking
operations in Costa Rica, El Salvador and Honduras, the sale of the RBWM business in Thailand and the sale of a
majority interest in the Middle East private equity fund management business.