HSBC 2012 Annual Report Download - page 473

471
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
26 Assets held for sale and other assets
Assets held for sale
2012 2011
US$m US$m
Disposal groups ........................................................................................................................................ 5,797 38,903
Non-current assets held for sale: 13,472 655
– property, plant and equipment .............................................................................................................. 500 589
– investment in Ping An .......................................................................................................................... 8,168 –
– loans and advances to customers .......................................................................................................... 3,893 –
– other ...................................................................................................................................................... 911 66
19,269 39,558
Disposal groups
At 31 December 2012, the following businesses represented the majority of disposal groups held for sale:
• Latin American businesses, which include banking operations in Peru, Colombia and Paraguay.
• US life insurance businesses.
The following significant businesses that were held for sale at 31 December 2011 were sold in 2012:
• The sale of the US Card and Retail Services business that was completed on 1 May 2012 with a gain on disposal
of US$3.1bn.
• The sale of 195 US branches were completed in several stages in 2012. 138 branches were sold on 18 May 2012,
recognising a gain of US$661m. The remaining branches were sold in the third quarter of 2012 with a gain of
US$203m.
• Central American businesses, which include banking operations in Costa Rica, El Salvador and Honduras were
sold in November and December 2012 with a loss on disposal of US$62m.
The major classes of assets and associated liabilities of disposal groups held for sale were as follows:
At 31 December 2012
South
America
businesses
US life
insurance
businesses Other Total
US$m US$m US$m US$m
Assets of disposal groups held for sale
Trading assets ............................................................................... 4 – – 4
Loans and advances to banks ....................................................... 344 – 164 508
Loans and advances to customers ................................................ 1,929 – 302 2,231
Financial investments ................................................................... 364 1,396 229 1,989
Prepayments and accrued income ................................................ 27 15 5 47
Goodwill and intangible assets ..................................................... 33 53 60 146
Other assets of disposal groups .................................................... 622 109 141 872
Total assets .................................................................................... 3,323 1,573 901 5,797
Liabilities of disposal groups held for sale (Note 30)
Deposits by banks ......................................................................... 26 – 10 36
Customer accounts ........................................................................ 2,154 – 836 2,990
Debt securities in issue ................................................................. 566 – (1) 565
Liabilities under insurance contracts ............................................ – 998 162 1,160
Other liabilities of disposal groups ............................................... 132 39 96 267
Total liabilities .............................................................................. 2,878 1,037 1,103 5,018
Net unrealised losses recognised in
‘other operating income’ as a result
of reclassification to held for sale ............................................ (96) – – (96)
Expected date of completion ........................................................ Q4 2013 Q1 2013
Operating segment ........................................................................ Latin America North America