HSBC 2012 Annual Report Download - page 167

165
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
collateral but the claim on the collateral is
subordinate to the first lien charge. The majority of
our second lien portfolios were originated in North
America where loss experience on defaulted
second lien loans has typically approached 100%;
consequently, we do not generally attach any
significant financial value to this type of collateral.
Credit cards and overdrafts are usually unsecured.
Corporate, commercial and financial (non-bank)
lending
Collateral held is analysed separately below for
commercial real estate and for other corporate,
commercial and financial (non-bank) lending. This
reflects the difference in collateral held on the
portfolios. In each case, the analysis includes off-
balance sheet loan commitments, primarily undrawn
credit lines.
Commercial real estate loans and advances including loan commitments by level of collateral
(Audited)
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
At 31 December 2012
Rated CRR/EL 1 to 7
Not collateralised ........................ 7,068 10,790 3,647 569 181 2,083 24,338
Fully collateralised ..................... 23,450 17,355 6,106 92 9,054 1,846 57,903
Partially collateralised (A)........... 3,088 1,476 1,150 33 1,063 903 7,713
– collateral value on A ................ 2,780 1,179 464 29 401 423 5,276
33,606 29,621 10,903 694 10,298 4,832 89,954
Rated CRR/EL 8 to 10
Not collateralised ........................ 418 – – 14 34 105 571
Fully collateralised ..................... 1,261 2 60 8 408 141 1,880
LTV ratio:
– less than 25% ....................... 34 –1 –25 10 70
– 25% to 50% ......................... 119 1 55 7 86 8 276
– 51% to 75% ......................... 437 –2 –69 28 536
– 76% to 90% ......................... 501 –1 –58 63 623
– 91% to 100% ....................... 170 1 1 1 170 32 375
Partially collateralised (B) .......... 1,585 – 51 204 377 24 2,241
– collateral value on B ................ 938 –15 111 265 13 1,342
3,264 2 111 226 819 270 4,692
Total commercial real estate
loans and advances ................. 36,870 29,623 11,014 920 11,117 5,102 94,646
At 31 December 2011
Rated CRR/EL 1 to 7
Not collateralised ........................ 5,730 12,552 2,973 631 97 2,136 24,119
Fully collateralised ..................... 24,547 11,734 6,929 65 8,506 1,706 53,487
Partially collateralised (C) .......... 3,099 916 1,032 50 1,635 999 7,731
– collateral value on C ................ 1,775 591 280 39 311 559 3,555
33,376 25,202 10,934 746 10,238 4,841 85,337
Rated CRR/EL 8 to 10
Not collateralised ........................ 434 2 10 55 135 127 763
Fully collateralised ..................... 1,413 2 23 74 521 196 2,229
LTV ratio:
– less than 25% ....................... 24 – – – 65 9 98
– 25% to 50% ......................... 140 2 – – 5 21 168
– 51% to 75% ......................... 935 – 1 – 217 28 1,181
– 76% to 90% ......................... 159 – 2 74 61 117 413
– 91% to 100% ....................... 155 – 20 – 173 21 369
Partially collateralised (D) .......... 1,921 – 42 181 401 3 2,548
– collateral value on D ................ 1,083 – 26 89 246 1 1,445
3,768 4 75 310 1,057 326 5,540
Total commercial real estate
loans and advances ................. 37,144 25,206 11,009 1,056 11,295 5,167 90,877
The collateral included in the table above
consists of fixed first charges on real estate and
charges over cash for commercial real estate. These
facilities are disclosed as not collateralised if they
are unsecured or benefit from credit risk mitigation
from guarantees, which are not quantified for the