HSBC 2015 Annual Report Download - page 137

HSBC HOLDINGS PLC
135
Strategic Report Financial Review Corporate Governance Financial Statements Shareholder Information
Movement in impairment allowances on loans and advances to customers and banks
(Audited)
Banks Customers
individually
assessed
Individually
assessed
Collectively
assessed10 Total
$m $m $m $m
At 1 January 2015 49 6,195 6,142 12,386
Amounts written off
–
(1,368) (2,826) (4,194)
Recoveries of loans and advances previously written off
–
86 722 808
Charge to income statement (11) 1,516 2,087 3,592
Exchange and other movements11 (20) (1,027) (1,972) (3,019)
At 31 December 2015 18 5,402 4,153 9,573
Impairment allowances:
on loans and advances to customers 5,402 4,153 9,555
–
personal 426 2,453 2,879
–
corporate and commercial 4,800 1,635 6,435
–
non-bank financial institutions 176 65 241
% % % %
as a percentage of loans and advances
–
0.6 0.4 0.9
$m $m $m $m
At 1 January 2014 58 7,072 8,071 15,201
Amounts written off (6) (2,313) (4,060) (6,379)
Recoveries of loans and advances previously written off
–
114 841 955
Charge to income statement 4 1,776 2,275 4,055
Exchange and other movements11 (7) (454) (985) (1,446)
At 31 December 2014 49 6,195 6,142 12,386
Impairment allowances:
on loans and advances to customers 6,195 6,142 12,337
–
personal 468 4,132 4,600
–
corporate and commercial 5,532 1,909 7,441
–
non-bank financial institutions 195 101 296
%%% %
as a percentage of loans and advances
–
0.6 0.6 1.1
For footnotes, see page 191.
Wholesale lending
On a reported basis and excluding the effects of the
Brazilian reclassification of loans and advances to ‘Assets
held for sale’, gross loans decreased by $32bn, mainly due
to adverse foreign exchange effects.
The commentary that follows is on a constant currency
basis, while tables are presented on a reported basis.
Wholesale lending increased by $0.5bn in the year.
However, in Asia it fell by $9.6bn, mainly in Hong Kong and,
to a lesser extent, mainland China and Taiwan. In Asia, the
fourth quarter of 2015 saw lower than expected credit
growth with a continuation of the slowdown in trade, the
repayment of some existing corporate loans and slower
demand for new lending.
In Europe, lending increased by $3.2bn, mainly in the UK
and Germany. In the UK it rose by $1.9bn with increases in
‘financial’ partly offset by decreases in ‘corporate and
commercial’, mainly relating to corporate overdraft
balances where a small number of clients benefit from
the use of net interest arrangements between overdrafts
and deposits.
In Middle East and North Africa, overall lending reduced by
$1.2bn with decreases of $3.2bn in ‘financial’ offset by
increases of $2.0bn in ‘corporate and commercial’.
In North America, lending increased by $7.5bn, mainly
comprising $3.7bn in the US and $4.9bn in Canada.
The increase in Canada included: $3.8bn following a change
in balance sheet presentation where certain bankers’
acceptances previously disclosed under ‘Trading assets’
were included in ‘Loans and advances’; and $1.0bn relating
to corporate overdraft balances and the use of net interest
arrangements between overdraft and deposits.
Comparatives have not been restated.
Excluding the effects of the Brazilian reclassification,
lending in Latin America increased by $0.6bn, mainly in
Argentina.