HSBC 2009 Annual Report Download - page 293

291
Risk-weighted assets by principal subsidiary
(Unaudited)
In order to give an indication of how HSBC’s capital
is deployed, the table below analyses the disposition
of RWAs by principal subsidiary. The RWAs are
calculated using FSA rules and exclude intra-HSBC
items.
Risk-weighted assets by principal subsidiary
(Unaudited)
2009
US$m
2008
US$m
The Hongkong and Shanghai Banking Corporation ......................................................................... 288,225 247,626
Hang Seng Bank ............................................................................................................................ 60,991 44,211
HSBC Bank Malaysia81 ................................................................................................................. 8,606 –
The Hongkong and Shanghai Banking Corporation and other subsidiaries ................................ 218,628 203,415
HSBC Bank ....................................................................................................................................... 318,570 379,695
HSBC Private Banking Holdings (Suisse) .................................................................................... 20,200 20,422
HSBC France ................................................................................................................................. 50,462 65,557
HSBC Bank and other subsidiaries ............................................................................................... 247,908 293,716
HSBC North America ........................................................................................................................ 363,622 373,955
HSBC Finance ............................................................................................................................... 174,595 187,660
HSBC Bank Canada ...................................................................................................................... 34,831 35,336
HSBC Bank USA and other subsidiaries ...................................................................................... 154,196 150,959
HSBC Mexico .................................................................................................................................... 22,624 21,037
HSBC Bank Middle East ................................................................................................................... 33,773 35,217
HSBC Bank Malaysia ........................................................................................................................ – 11,182
HSBC Brazil ...................................................................................................................................... 41,782 30,851
HSBC Bank Panama .......................................................................................................................... 9,142 9,498
Bank of Bermuda ............................................................................................................................... 4,663 4,759
Other .................................................................................................................................................. 50,767 34,154
1,133,168 1,147,974
For footnote, see below.
Footnotes to Risk
Credit risk
1 The amount of the loan commitments reflects, where relevant, the expected level of take-up of pre-approved loan offers made by
mailshots to personal customers. In addition to those amounts, there is a further maximum possible exposure to credit risk of
US$62,286 million (2008: US$35,849 million), reflecting the full take-up of such irrevocable loan commitments. The take-up of such
offers is generally at modest levels.
2 As discussed further under ‘Write-off of loans and advances’, there was a change in the write-off period in North America during 2009.
The effect of this change was an acceleration of write-offs which reduced residential mortgages by US$1,924 million, other personal
loans by US$1,340 million and total personal lending by US$3,264 million, with a corresponding reduction in impairment allowances.
There was no significant effect on net loans and advances or loan impairment charges.
3 Residential mortgages include Hong Kong Government Home Ownership Scheme loans of US$3,456 million at 31 December 2009
(2008: US$3,882 million). Where disclosed, earlier comparatives were 2007: US$3,942 million; 2006: US$4,078 million; 2005:
US$4,680 million.
4 Other personal loans and advances include second lien mortgages and other property-related lending.
5 Other commercial loans and advances include advances in respect of agriculture, transport, energy and utilities.
6 Included within ‘Gross loans and advances to customers’ is credit card lending of US$68,289 million (2008: US$75,266 million).
Where disclosed, earlier comparatives were 2007: US$82,854 million; 2006: US$74,518 million; 2005: US$66,020 million.
7 The Middle East is disclosed as a separate geographical region with effect from 1 January 2009. Previously, it formed part of Rest of
Asia-Pacific. Comparative data have been restated accordingly.
8 As discussed further under ‘Write-off of loans and advances’, there was a change in the write-off period in North America during 2009.
The effect of this change was an acceleration of write-offs which reduced gross loans and advances to customers and loans classified as
impaired by US$3,264 million, with a corresponding reduction in impairment allowances. There was no significant effect on net
customer loans and advances or loan impairment charges.
9 Includes residential mortgages of HSBC Bank USA and HSBC Finance.
10 Comprising Hong Kong, Rest of Asia-Pacific, Middle East and Latin America.
11 As discussed further under ‘Write-off of loans and advances’, there was a change in the write-off period in North America during 2009.
The effect of this change was an acceleration of write-offs which reduced residential mortgages by US$1,924 million, second lien
mortgages by US$425 million and total mortgage lending by US$2,349 million, with a corresponding reduction in impairment
allowances. There was no significant effect on net loans and advances or loan impairment charges.
12 Negative equity arises when the value of the loan exceeds the value of available equity, generally based on values at origination date.
13 Loan-to-value ratios are generally based on values at the balance sheet date. The comparative data for the UK and the US are restated
accordingly (previously these ratios were presented based on origination date).