HSBC 2012 Annual Report Download - page 495

493
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
35 Foreign exchange exposures
Structural foreign exchange exposures
HSBC’s structural foreign exchange exposures are represented by the net asset value of its foreign exchange equity
and subordinated debt investments in subsidiaries, branches, joint ventures and associates with non-US dollar
functional currencies. Gains or losses on structural foreign exchange exposures are recognised in other
comprehensive income. HSBC’s management of its structural foreign exchange exposures is discussed on page 268.
In its separate financial statements, HSBC Holdings recognises its foreign exchange gains and losses on structural
foreign exchange exposures in the income statement.
Net structural foreign exchange exposures
At 31 December
2012 2011
US$m US$m
Currency of structural exposure
Pound sterling ........................................................................................................................................... 27,305 22,668
Euro ........................................................................................................................................................... 23,945 22,400
Chinese renminbi ...................................................................................................................................... 19,060 21,234
Hong Kong dollars ................................................................................................................................... 14,466 4,828
Brazilian reais ........................................................................................................................................... 6,279 6,097
Mexican pesos .......................................................................................................................................... 5,948 5,319
Canadian dollars ....................................................................................................................................... 5,024 4,848
Indian rupees ............................................................................................................................................. 3,967 3,967
Swiss francs .............................................................................................................................................. 2,925 2,133
UAE dirhams ............................................................................................................................................ 2,807 2,650
Saudi riyals ............................................................................................................................................... 2,219 1,965
Malaysian ringgit ...................................................................................................................................... 2,165 1,829
Turkish lira ................................................................................................................................................ 1,787 1,565
Australian dollars ...................................................................................................................................... 1,602 1,455
Korean won ............................................................................................................................................... 1,520 1,411
Taiwanese dollars ..................................................................................................................................... 1,513 1,457
Indonesian rupiah ..................................................................................................................................... 1,317 1,235
Argentine pesos ........................................................................................................................................ 1,054 984
Egyptian pounds ....................................................................................................................................... 699 692
Vietnamese dong ...................................................................................................................................... 762 686
Singapore dollars ...................................................................................................................................... 874 670
Philippine pesos ........................................................................................................................................ 787 663
Thailand baht ............................................................................................................................................. 653 484
Qatari rial .................................................................................................................................................. 599 608
Others, each less than US$500m .............................................................................................................. 4,169 4,167
Total .......................................................................................................................................................... 133,446 116,015
Shareholders’ equity would decrease by US$2,562m (2011: US$2,146m) if euro and sterling foreign currency
exchange rates weakened by 5% relative to the US dollar.
36 Assets charged as security for liabilities and collateral accepted as security for assets
Financial assets pledged to secure liabilities
Assets pledged at 31 December
2012 2011
US$m US$m
Treasury bills and other eligible securities ............................................................................................... 4,381 5,185
Loans and advances to banks ................................................................................................................... 22,074 19,247
Loans and advances to customers ............................................................................................................ 81,333 81,570
Debt securities .......................................................................................................................................... 198,671 210,255
Equity shares ............................................................................................................................................. 6,255 6,916
Other ......................................................................................................................................................... 1,090 1,003
313,804 324,176
The table above shows assets over which a legal charge has been granted to secure liabilities. The amount of such
assets may be greater than the book value of assets utilised as collateral for funding purposes or to cover liabilities.
This is the case for securitisations and covered bonds where the amount of liabilities issued, plus any mandatory
over-collateralisation, is less than the book value of financial assets available for funding or collateral purposes in the