HSBC 2012 Annual Report Download - page 288

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Capital > Capital structure
286
Capital structure
Composition of regulatory capital
(Audited)
At 31 December
2012
2011
Ref US$m US$m
Tier 1 capital
Shareholders’ equity ...................................................................................................................... 167,360 154,148
Shareholders’ equity per balance sheet4 .................................................................................... a 175,242 158,725
Preference share premium ......................................................................................................... b (1,405) (1,405)
Other equity instruments ........................................................................................................... c (5,851) (5,851)
Deconsolidation of special purpose entities5 ............................................................................ a (626) 2,679
Non-controlling interests ............................................................................................................... 4,348 3,963
Non-controlling interests per balance sheet .............................................................................. d 7,887 7,368
Preference share non-controlling interests ................................................................................ e (2,428) (2,412)
Non-controlling interests transferred to tier 2 capital ............................................................... f (501) (496)
Non-controlling interests in deconsolidated subsidiaries ......................................................... d (610) (497)
Regulatory adjustments to the accounting basis ........................................................................... (2,437) (4,331)
Unrealised losses on available-for-sale debt securities6 ........................................................... 1,223 2,228
Own credit spread ...................................................................................................................... 112 (3,608)
Defined benefit pension fund adjustment7 ................................................................................ g (469) (368)
Reserves arising from revaluation of property and unrealised gains on
available-for-sale equities .........................................................................................................
(3,290) (2,678)
Cash flow hedging reserve ........................................................................................................ (13) 95
Deductions ..................................................................................................................................... (30,482) (31,284)
Goodwill and intangible assets ................................................................................................. h (25,733) (27,419)
50% of securitisation positions ................................................................................................. (1,776) (1,207)
50% of tax credit adjustment for expected losses ..................................................................... 111 188
50% of excess of expected losses over impairment allowances ............................................... i (3,084) (2,846)
Core tier 1 capital ........................................................................................................................ 138,789 122,496
Other tier 1 capital before deductions ........................................................................................... 17,301 17,939
Preference share premium ......................................................................................................... b 1,405 1,405
Preference share non-controlling interests ................................................................................ e 2,428 2,412
Hybrid capital securities ............................................................................................................ j 13,468 14,122
Deductions ..................................................................................................................................... (5,042) (845)
Unconsolidated investments8 .................................................................................................... (5,153) (1,033)
50% of tax credit adjustment for expected losses ..................................................................... 111 188
Tier 1 capital ................................................................................................................................ 151,048 139,590
Tier 2 capital
Total qualifying tier 2 capital before deductions .......................................................................... 48,231 48,676
Reserves arising from revaluation of property and unrealised gains on
available-for-sale equities .........................................................................................................
3,290 2,678
Collective impairment allowances ............................................................................................ k 2,717 2,660
Perpetual subordinated debt ...................................................................................................... l 2,778 2,780
Term subordinated debt ............................................................................................................. m 39,146 40,258
Non-controlling interests in tier 2 capital ................................................................................. f 300 300
Total deductions other than from tier 1 capital (18,473) (17,932)
Unconsolidated investments8 .................................................................................................... (13,604) (13,868)
50% of securitisation positions ................................................................................................. (1,776) (1,207)
50% of excess of expected losses over impairment allowances ............................................... i (3,084) (2,846)
Other deductions ....................................................................................................................... (9) (11)
Total regulatory capital .............................................................................................................. 180,806 170,334
For footnotes, see page 292.
The references (a) – (m) identify balance sheet components on page 287 which are used in the calculation of regulatory capital.