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33
Maximum exposure to credit risk (Audited)
2013
$m
2012
$m
On-balance sheet
Balances at central bank ................................................................................................. 100 4
Items in the course of collection from other banks ........................................................ 107 90
Trading assets ................................................................................................................. 6,728 5,250
Treasury and other eligible bills ............................................................................... 467 308
Debt securities .......................................................................................................... 2,528 2,092
Equity securities ....................................................................................................... –20
Customer trading assets ........................................................................................... 885 262
Bankers acceptances ................................................................................................ 2,848 2,590
Less: securities not exposed to credit risk ................................................................ –(22)
Derivatives ..................................................................................................................... 2,112 1,810
Loans and advances held at amortized cost ................................................................... 47,833 47,052
Loans and advances to banks ................................................................................... 1,482 1,480
Loans and advances to customers ............................................................................ 46,351 45,572
Financial investments – available for sale ..................................................................... 21,805 20,402
Treasury and other similar bills................................................................................ 799 2,308
Debt securities .......................................................................................................... 21,010 18,103
Equity securities ....................................................................................................... 5–
Less: Securities not exposed to credit risk ............................................................... (9) (9)
Other assets
Customers’ liability under acceptances .................................................................... 4,757 4,737
Accrued income and other ....................................................................................... 285 290
Total on-balance sheet ................................................................................................... 83,727 79,635
Off-balance sheet
Financial guarantees ....................................................................................................... 3,940 3,083
Loan and other credit-related commitments .................................................................. 35,128 36,918
Total maximum exposure to credit risk ........................................................................... 122,795 119,636
Loan portfolio diversity
Concentration of credit risk may arise when the ability
of a number of borrowers or counterparties to meet their
contractual obligations are similarly affected by external
factors. Diversification of credit risk is a key concept by
which we are guided.
In assessing and monitoring for credit risk concentration,
we aggregate exposures by product type, industry and
geographic area as presented in the tables below. Exposures
are measured at exposure at default (‘EAD’), which reflects
drawn balances as well as an allowance for undrawn
amounts of commitments and contingent exposures, and
therefore would not agree to the financial statements.