HSBC 2012 Annual Report Download - page 213

211
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
On
demand
Due
within
3 months
Due
within
3 to 12
months
Total due
within
1 year
Due
between
1 and 5
years
Due
after
5 years Total
US$m US$m US$m US$m US$m US$m US$m
At 31 December 2011
Debt securities issued ................. 1,907 49,923 39,011 90,841 104,689 37,028 232,558
Unsecured CDs and CP .............. 280 28,918 8,143 37,341 9,713 26 47,080
Unsecured senior MTNs ............. 122 3,704 26,541 30,367 80,884 29,081 140,332
Unsecured senior structured
notes ........................................ 1,505 575 1,858 3,938 1,878 1,156 6,972
Secured covered bonds ............... – 607 1,549 2,156 7,649 3,694 13,499
Secured ABCP ............................ – 10,446 – 10,446 – – 10,446
Secured ABS ............................... – 326 546 872 3,071 1,779 5,722
Others .......................................... – 5,347 374 5,721 1,494 1,292 8,507
Subordinated liabilities ............... 6 913 6,004 6,923 15,134 78,569 100,626
Subordinated debt securities ....... 6 694 5,552 6,252 12,908 58,051 77,211
Preferred securities ..................... – 219 452 671 2,226 20,518 23,415
1,913 50,836 45,015 97,764 119,823 115,597 333,184
The balances in the table above will not agree
directly with those in our consolidated balance sheet
as the table incorporates, on an undiscounted basis,
all cash flows relating to principal and future coupon
payments.
Funding of HSBC Finance
We do not expect the professional markets to be
a source of funding for HSBC Finance in the future
in view of the sale of the Card and Retail Services
business and the run-off of its remaining portfolio.
HSBC Finance expects to meet future funding
needs by asset sales and affiliate funding. As a
consequence, no new external third-party funding,
including commercial paper, is being originated by
HSBC Finance.
Encumbered and unencumbered assets
(Unaudited)
The objective of this disclosure is to facilitate an
understanding of available and unrestricted assets
that could be used to support potential future funding
and collateral needs.
An asset is defined as encumbered if it has been
pledged as collateral against an existing liability,
and as a result is no longer available to the bank to
secure funding, satisfy collateral needs or be sold
to reduce the funding requirement. An asset is
therefore categorised as unencumbered if it has
not been pledged against an existing liability.
Unencumbered assets are then further analysed into
four separate sub-categories; ‘readily realisable
assets’, ‘other realisable assets’, ‘reverse repo/stock
borrowing receivables and derivative assets’ and
‘cannot be pledged as collateral’.
The disclosure is not designed to identify assets
which would be available to meet the claims of
creditors or to predict assets that would be available
to creditors in the event of a resolution or
bankruptcy.
The table below summarises the total on
and off-balance sheet assets that are capable of
supporting future funding and collateral needs and
shows the extent to which these assets are currently
pledged for this purpose.
Summary of assets available to support potential
future funding and collateral needs (on and off-
balance sheet)
(Unaudited)
2012
US$bn
Total on-balance sheet assets ........................ 2,693
Less:
Reverse repo/stock borrowing receivables
and derivative assets ............................. 562
Other assets that cannot be pledged as
collateral ............................................... 247
Total on-balance sheet assets that can support
funding and collateral needs ..................... 1,884
Add off-balance sheet assets:
Fair value of collateral received from
reverse repo/stock borrowing that is
available to sell or repledge .................. 296
Fair value of collateral received from
derivatives that is available to sell or
repledge ................................................. 6
Total assets that can support funding and
collateral needs (on and off-balance sheet) 2,186
Less:
On-balance sheet assets pledged ............... 233
Off-balance sheet collateral received from
reverse repo/stock borrowing which has
been repledged or sold .......................... 203
Off-balance sheet collateral received from
derivative transactions which has been
repledged or sold .................................. 1
Assets available to support funding and
collateral needs .......................................... 1,749