HSBC 2005 Annual Report Download - page 333

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The above transactions were made in the ordinary course of business and on substantially the same terms, including
interest rates and security, as for comparable transactions with persons of a similar standing or, where applicable,
with other employees. The transactions did not involve more than the normal risk of repayment or present other
unfavourable features.
Transactions with other related parties of HSBC
2005 2004
Highest
balance during
the year1
Balance at
31 December
20051
Highest
balance during
the year1
Balance at
31 December
20041
US$m US$m US$m US$m
Amounts due from joint ventures
– Unsubordinated .................................................... 539 539 839 839
Amounts due from associates
– Subordinated ........................................................ 63 29 48 38
– Unsubordinated .................................................... 1,133 333 340 327
1,735 901 1,227 1,204
Amounts due to joint ventures ..................................... 1,382 1,382 978 966
Amounts due to associates ........................................... 161 133 101 95
1,543 1,515 1,079 1,061
1 The disclosure of the year-end balance and the highest balance during the year is considered the most meaningful information to
represent transactions during the year.
The above outstanding balances arose from the ordinary course of business and on substantially the same terms,
including interest rates and security, as for comparable transactions with third party counterparties.
Pension funds
At 31 December 2005, US$19.4 billion (2004: US$19.3 billion) of HSBC pension fund assets were under
management by HSBC companies. Fees of US$50 million (2004: US$35 million) were earned by HSBC
companies for these management services. HSBC’s pension funds had placed deposits of US$252 million
(2004: US$268 million) with its banking subsidiaries. The above outstanding balances arose from the ordinary
course of business and on substantially the same terms, including interest rates and security, as for comparable
transactions with third party counterparties.
HSBC International Staff Retirements Benefits Scheme entered into swap transactions with HSBC to match the
return on the plan assets to the benefit payments of the obligations. At 31 December 2005, the fair value of the swap
is an asset of US$53 million to the pension scheme (2004: US$3 million).