HSBC 2014 Annual Report Download - page 193

HSBC BANK PLC
Notes on the Financial Statements (continued)
191
38 Related party transactions
The ultimate parent company of the group is HSBC Holdings plc, which is incorporated in England.
Copies of the Group financial statements may be obtained from the following address:
HSBC Holdings plc
8 Canada Square
London
E14 5HQ
The group’s related parties include the parent, fellow subsidiaries, associates, joint ventures, post-employment benefit
plans for HSBC employees, Key Management Personnel, close family members of Key Management Personnel and entities
which are controlled or jointly controlled or significantly influenced by Key Management Personnel or their close family
members.
(a) Transactions with Directors and other Key Management Personnel
Key Management Personnel are defined as those persons having authority and responsibility for planning, directing and
controlling the activities of HSBC Bank plc and the group and includes members of the Boards of Directors of HSBC Bank
plc and HSBC Holdings plc and Group Managing Directors of HSBC Holdings plc.
Compensation of Key Management Personnel
The following represents the compensation for Directors and other Key Management Personnel of the bank in exchange
for services rendered to the bank for the period they served during the year. This reflects a number of changes at Board
level during the last quarter of 2013 and during 2014.
2014
2013
£000
£000
Short-term employee benefits
3,937
3,284
Post-employment benefits
49
159
Other long-term benefits
808
341
Share-based payments
4,223
1,709
9,017
5,493
Shareholdings and options of Directors and other Key Management Personnel
Balance at
31 December 2014
Balance at
31 December 2013
Number of options over HSBC Holdings plc ordinary shares held by Directors and other key
management personnel under employee share plans
1
28,288
224,916
Number of HSBC Holdings plc shares held by Directors and other key management personnel
beneficially
17,817,226
14,999,933
Includes the holdings of Key Management Personnel of both the bank and its parent company, HSBC Holdings plc and
their close family members
Transactions, arrangements and agreements including Directors and other Key Management Personnel
The table below sets out transactions which fall to be disclosed under IAS 24 ‘Related Party Disclosures’ between the
group and Key Management Personnel.
2014
2013
Highest balance
during the year1
Balance at
31 December1
Highest balance
during the year1
Balance at
31 December1
£000
£000
£000
£000
Key Management Personnel2
Loans
149,645
137,396
109,567
89,354
Credit cards
1,587
589
662
269
Guarantees
–
–
4,911
–
1 The disclosure of the year-end balance and the highest balance during the year is considered the most meaningful information to represent
transactions during the year.
2 Includes the Key Management Personnel of both the bank and its parent company, HSBC Holdings plc, close family members of Key
Management Personnel, and entities which are controlled or jointly controlled by Key Management Personnel or their close family members.
The above transactions were made in the ordinary course of business and on substantially the same terms, including
interest rates and security, as for comparable transactions with persons of a similar standing or, where applicable, with
other employees. The transactions did not involve more than the normal risk of repayment or present other unfavourable
features.
Transactions with Directors: Advances, Credits and Guarantees (Companies Act 2006)
In addition to the requirements of IAS 24, particulars of advances (loans and quasi-loans), credits and guarantees entered
into by HSBC Bank plc and its subsidiaries with Directors of HSBC Bank plc are required to be disclosed pursuant to section