HSBC 2015 Annual Report Download - page 123

HSBC HOLDINGS PLC
121
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
Gross loans to customers and banks over five years ($bn)
Loan impairment charge over five years ($bn)
Loan impairment charges by geographical region ($bn)
Loan impairment charges by industry ($bn)
Loan impairment allowances over five years
Assets held for sale
(Audited)
During 2015, gross loans and advances and related
impairment allowances arising in our Brazilian operations
were reclassified from ‘Loans and advances to customers’
and ‘Loans and advances to banks’ to ‘Assets held for sale’
in the balance sheet.
Disclosures relating to assets held for sale are provided in
the following credit risk management tables, primarily
where the disclosure is relevant to the measurement of
these financial assets:
• Maximum exposure to credit risk (page 122);
• Distribution of financial instruments by credit quality
(page 125);
• Past due but not impaired gross financial instruments by
geographical region (page 127); and
• Ageing analysis of days past due but not impaired gross
financial instruments (page 127).
Although there was a reclassification on the balance sheet,
there was no separate income statement reclassification.
As a result, charges for loan impairment losses shown in
the credit risk disclosures include loan impairment charges
relating to financial assets classified as ‘Assets held for sale’.
Loans and advances to customers and banks measured at
amortised cost
(Audited)
Total gross
loans and
advances
Impairment
allowances
on loans and
advances
$m $m
As reported 1,024,428 (9,573)
Reported in ‘Assets held for sale’ 24,544 (1,454)
At 31 December 2015 1,048,972 (11,027)
At 31 December 2014, the gross loans and advances and
related impairment allowances of our Brazilian operations
were $31bn and $1.7bn, respectively. Gross loans and
advances reduced by $8.5bn, mainly as a result of foreign
exchange movements.
Lending balances held for sale continue to be measured
at amortised cost less allowances for impairment; such
carrying amounts may differ from fair value. Any difference
between the carrying amount and the sales price, which is
the fair value at the time of sale, would be recognised as a
gain or loss at the time of sale.
See Note 23 on the Financial Statements for the carrying amount
and the fair value at 31 December 2015 of loans and advances to
banks and customers classified as held for sale.
362 378 392 391 367 638 692 698 666 647
12 15 19 24 27
12 14 18 15 15
2015 2014 2013 2012 2011 2015 2014 2013 2012 2011
Personal Wholesale
Impaired
Not impaired
1.8 1.8
3.1
5.4
9.3
1.8 2.3 2.9 2.8 2.2
2015 2014 2013 2012 2011 2015 2014 2013 2012 2011
Personal Wholesale
0.7 0.7
0.3
0.5
1.4
1.1
0.6
0.3
2.0
Europe Asia MENA North
America
Latin
America
2015 2014
0.1
1.7
0.2
1.6
(0.1)
1.9
0.3
2.0
First lien
residential
mortgages
Other
personal
lending
Commercial
real
estate
Other
corporate
commercial
Financial
2015 2014
––
2.9 4.6 6.6 8.2 9.8 6.7 7.8 8.6 8.0 7.9
25% 30% 35% 35%
54% 55%
48% 53% 51%
2015 2014 2013 2012 2011 2015 2014 2013 2012 2011
Personal Wholesale
Loan impairment allowances ($bn)
Loan impairment allowances as a % of impaired loans
37%