HSBC 2004 Annual Report Download - page 40

HSBC HOLDINGS PLC
Financial Review (continued)
38
Gains on disposal of investments
Year ended 31 December
2004 2003 2002
US$m US$m US$m
Gains on disposal of:
– debt securities ............................................................................................ 187 161 170
– equity investments ..................................................................................... 300 233 226
– other participating interests ........................................................................ –169
– associates ................................................................................................... 117 147
– subsidiaries ................................................................................................ 22 37 16
– other ........................................................................................................... 144 18 4
770 451 532
Year ended 31 December 2004 compared
with year ended 31 December 2003
During the year, HSBC made 15 business
acquisitions and completed 13 business disposals.
HSBC’ s profit on disposal of investments was
US$770 million, US$319 million higher than in
2003. The gain on disposal of associates included a
gain on the exchange of HSBC’ s interest in World
Finance International Limited for a 7 per cent
interest in Bergesen Worldwide.
The substantial increase in other disposals
comprises the sale of venture capital investments in
France and the US and the disposal of an investment
in NYCE Corporation in the US. Realised gains on
the sale of debt and equity investment securities
during the year were 24 per cent higher than in 2003.
Year ended 31 December 2003 compared
with year ended 31 December 2002
During 2003, HSBC made 26 business acquisitions
and completed 14 business disposals.
HSBC’ s profit on disposal of investments was
US$451 million, US$81 million lower than in 2002.
The profits in 2002 included gains of US$39 million
on the sale of HSBC’s 50 per cent share of Lixxbail
to its joint venture partner, and US$38 million on the
sale of HSBC’s 6.99 per cent share in Banco
Santiago S.A.
Realised gains on the sale of debt and equity
investment securities during the year were broadly in
line with 2002. The reductions in interest rates and
improvement in equity markets drove growth of
US$59 million in the unrecognised gains on HSBC’s
debt and equity investment portfolios.