HSBC 2001 Annual Report Download - page 122

HSBC HOLDINGS PLC
Financial Review (continued)
120
Tier 1 capital increased by US$0.5 billion.
Retained profits on a cash basis (excluding goodwill
amortisation) contributed US$1.7 billion. Part of this
capital generation was utilised to redeem preference
shares outstanding in HSBC Bank plc which had
become uneconomic in the current low interest rate
environment. These redemptions are reflected in the
reduction of minority interests and amounted to
US$0.8 billion.
Tier 2 capital fell by US$0.9 billion. US$0.5
billion of this reduction reflected net redemptions
and regulatory amortisation of term and perpetual
subordinated debt. Property revaluation reserves
were also lower by US$0.3 billion.
Total risk-weighted assets increased by US$7.8
billion in 2001 substantially reflecting loan growth
and a switch in the deployment of surplus liquidity
from interbank placement to corporate bonds.
Additionally, the acquisitions of Banque Hervet,
NRMA Building Society and Demirbank added to
risk-weighted asset growth.
Risk-weighted assets by principal subsidiary
In order to give an indication as to how HSBCs
capital is deployed, the table below analyses the
disposition of risk-weighted assets by principal
subsidiary. The risk-weighted assets are calculated
using FSA rules and exclude intra-HSBC items.
2001
US$m
2000
US$
m
Hang Seng Bank Limited...... 31,992 31,775
The Hongkong and Shanghai
Banking Corporation Limited
and other subsidiaries....... 80,492 77,107
The Hongkong and Shanghai
Banking Corporation Limited
and subsidiaries................ 112,484 108,882
HSBC Bank plc (excluding CCF
and HSBC Private Banking
Holdings (Suisse) S.A.).... 113,643 113,778
HSBC Private Banking Holdings
(Suisse) S.A.* .................. 14,611 10,433
CCF 35,706 35,460
HSBC Bank plc .................... 163,960 159,671
HSBC USA Inc .................... 53,945 54,220
HSBC Bank Middle East...... 5,699 5,243
HSBC Bank Malaysia Berha
d
4,215 4,041
HSBC Bank Canada ............. 14,400 14,241
HSBC Latin American operations 8,044 9,470
HSBC Holdings sub-group ... 966 420
Other 27,765 27,499
HSBC risk-weighted assets... 391,478 383,687
*The comparative figures for 31 December 2000 relate to HSBC
Republic. The private banking businesses of HSBC were
restructured during the period and the risk-weighted assets
reported for HSBC Private Banking Holdings (Suisse) S.A. are
not directly comparable to figures previously reported under
HSBC Republic.