HSBC 2003 Annual Report Download - page 157

155
Net charge to the profit and loss account for bad and doubtful debts
The charge for bad and doubtful debts and non-performing customer loans and related customer provisions can be
analysed as follows:
Year ended 31 December 2003
Europe
US$m
Hong Kong
US$m
Rest of
Asia-Pacific
US$m
North
America
US$m
South
America
US$m
Total
US$m
Specific provisions
New provisions: ................ 1,485 655 412 4,962 263 7,777
Household1 .................... 193 – –4,580 –4,773
Rest of HSBC ............... 1,292 655 412 382 263 3,004
Release of provisions no
longer required: ............. (351
)
(182
)
(269
)
(87
)
(64
)
(953
)
Household1 .................... –––(4
)
–(4
)
Rest of HSBC ............... (351
)
(182
)
(269
)
(83
)
(64
)
(949
)
Recoveries of amounts
previously written off:.... (142
)
(42
)
(74
)
(335
)
(17
)
(610
)
Household1 .................... (25
)
–-(282
)
–(307
)
Rest of HSBC ............... (117
)
(42
)
(74
)
(53
)
(17
)
(303
)
992 431 69 4,540 182 6,214
General provisions
Argentine additional
provision ....................... ––––
–
–
Household1 ....................... 13––100–113
Rest of HSBC ................... (131
)
(31
)
16 36 (124
)
(234
)
(118
)
(31
)
16 136 (124
)
(121
)
Total bad and doubtful
debt charge .................... 874 400 85 4,676 58 6,093
Bank............................... (6
)
–3––(3
)
Customer........................ 880 400 82 4,676 58 6,096
Customer bad and
doubtful debt charge as
a percentage of closing
gross loans and
advances ....................... 0.41% 0.53% 0.17% 2.36% 1.03% 1.12%
31 December 2003
Non-performing loans ...... 5,701 1,671 1,538 5,444 696 15,050
Household ..................... 326 – –4,380 –4,706
Rest of HSBC ............... 5,375 1,671 1,538 1,064 696 10,344
Provisions ......................... 4,415 1,055 1,177 6,461 583 13,691
Household ..................... 154 – –5,047 –5,201
Rest of HSBC ............... 4,261 1,055 1,177 1,414 583 8,490
1Since the date of acquisition.
The total bad and doubtful debt charge for Household includes charges for:
Year ended 31 December 2003
Europe
US$m
Hong Kong
US$m
Rest of
Asia-Pacific
US$m
North
America
US$m
South
America
US$m
Total
US$m
Residential
mortgages....................... – – –423 –423
Credit cards ....................... 59 – – 1,740 – 1,799
Other personal lending ...... 122 – –2,228 –2,351