HSBC 2012 Annual Report Download - page 143

141
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
Wholesale lending
(Unaudited)
Europe
Hong
Kong
Rest of
Asia-
Pacific MENA
North
America
Latin
America Total
US$m US$m US$m US$m US$m US$m US$m
2012
Corporate and commercial
Gross amount (H) ................................................. 226,755 99,199 85,305 22,452 48,083 35,590 517,384
Impairment allowances ......................................... 3,537 383 526 1,312 732 856 7,346
– as a percentage of H .......................................... 1.56% 0.39% 0.62% 5.84% 1.52% 2.41% 1.42%
Financial2
Gross amount (I) ................................................... 101,052 28,046 48,847 10,394 27,400 18,122 233,861
Impairment allowances ......................................... 358 29 11 174 37 2 611
– as a percentage of I ........................................... 0.35% 0.10% 0.02% 1.67% 0.14% 0.01% 0.26%
2011
Corporate and commercial
Gross amount (J) ................................................... 209,760 91,592 77,887 21,152 41,775 35,930 478,096
Impairment allowances ......................................... 3,256 492 576 1,242 756 729 7,051
– as a percentage of J ........................................... 1.55% 0.54% 0.74% 5.87% 1.81% 2.03% 1.47%
Financial2
Gross amount (K) ................................................. 118,077 38,632 50,492 9,739 27,648 22,743 267,331
Impairment allowances ......................................... 484 26 11 166 135 3 825
– as a percentage of K .......................................... 0.41% 0.07% 0.02% 1.70% 0.49% 0.01% 0.31%
For footnote, see page 249.
At 31 December 2012, our corporate and
commercial lending balances were US$517bn. The
increase of 8% compared with the end of 2011 was
mainly in the international trade and services sector,
largely in Europe despite muted demand for credit,
and in Hong Kong, driven by growth in trade finance
volumes as we capitalised on trade and capital flows.
In the manufacturing sector in Europe, balances
increased due to growth in the UK of overdraft
balances and corresponding customer accounts
which did not, however, meet netting criteria under
accounting rules.
Financial sector lending decreased from
US$267bn at 31 December 2011 to US$234bn
at 31 December 2012. This was mainly in Europe
due to a fall in reverse repo activity as liquidity was
redeployed to central banks, together with maturities
and repayments in Hong Kong and Rest of Asia-
Pacific.
Impairment allowances remained at low levels
as a percentage of wholesale lending balances. In
North America, impairment allowances as a
percentage of financial lending balances declined
from 0.49% to 0.14% reflecting a few large write-
offs in 2012. Lending balances in this category
remained broadly unchanged. In Europe, impairment
allowances declined from US$484m to US$358m
reflecting the disposal of a small number of
exposures.
For a more detailed analysis of our wholesale lending,
see page 152.