HSBC 2012 Annual Report Download - page 158

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Risk > Credit risk > Credit quality of financial instruments
156
Distribution of financial instruments by credit quality (continued)
Neither past due nor impaired Past due Impair-
Strong Good Satisfactory
Sub-
standard
but not
impaired Impaired
ment
allowances10 Total
US$m US$m US$m US$m US$m US$m US$m US$m
At 31 December 2011
Cash and balances at central
banks .................................... 126,926 2,678 263 35 129,902
Items in the course of
collection from other banks.. 7,707 150 350 1 8,208
Hong Kong Government
certificates of indebtedness .. 20,922 – – – 20,922
Trading assets11 ........................ 231,594 37,182 39,171 1,502 309,449
– treasury and other
eligible bills .................. 33,199 538 564 8 34,309
– debt securities ................... 103,163 8,497 18,188 639 130,487
– loans and advances:
to banks ........................ 49,021 20,699 5,186 619 75,525
to customers ................. 46,211 7,448 15,233 236 69,128
Financial assets designated at
fair value11 ........................... 7,176 4,728 830 192 12,926
– treasury and other eligible
bills ............................... 123 – – – 123
– debt securities ................... 6,148 4,728 767 191 11,834
– loans and advances:
to banks ........................ 55 – 63 1 119
to customers ................. 850 – – – 850
Derivatives11 ............................ 279,557 45,858 18,627 2,337 346,379
Loans and advances held at
amortised cost ...................... 609,081 245,352 194,661 28,210 20,009 41,739 (17,636) 1,121,416
– to banks ............................. 144,815 28,813 6,722 568 39 155 (125) 180,987
– to customers12 ................... 464,266 216,539 187,939 27,642 19,970 41,584 (17,511) 940,429
Financial investments .............. 340,173 24,757 22,139 3,532 – 2,233 392,834
– treasury and other similar
bills ............................... 58,627 3,348 3,144 104 –– 65,223
– debt securities ................... 281,546 21,409 18,995 3,428 –2,233 327,611
Assets held for sale .................. 14,365 12,587 7,931 536 2,524 1,479 (1,614) 37,808
– disposal groups ................. 14,317 12,587 7,931 536 2,522 1,467 (1,614) 37,746
– non-current assets held
for sale .......................... 48 – – – 2 12 – 62
Other assets .............................. 11,956 6,526 12,379 1,193 421 517 32,992
– endorsements and
acceptances ................... 1,789 4,075 4,629 504 10 3 11,010
– accrued income and other . 10,167 2,451 7,750 689 411 514 21,982
Total financial instruments ...... 1,649,457 379,818 296,351 37,538 22,954 45,968 (19,250) 2,412,836
For footnotes, see page 249.
Past due but not impaired gross financial
instruments
(Audited)
Past due but not impaired loans are those in respect
of which the customer is in the early stages of
delinquency and has failed to make a payment or a
partial payment in accordance with the contractual
terms of the loan agreement. This is typically when
a loan is less than 90 days past due and there are no
other indicators of impairment.
Further examples of exposures past due but not
impaired include individually assessed mortgages
that are in arrears more than 90 days, but there are
no other indicators of impairment and the value of
collateral is sufficient to repay both the principal
debt and all potential interest for at least one year, or
short-term trade facilities past due more than
90 days for technical reasons such as delays in
documentation but there is no concern over the
creditworthiness of the counterparty. When groups
of loans are collectively assessed for impairment,