HSBC 2014 Annual Report Download - page 59

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HSBC BANK PLC
Report of the Directors: Risk (continued)
57
where the collateral is cash or can be realised by sale in
an established market. The LTV ratio is calculated as the
gross on-balance sheet carrying amount of the loan and
any off-balance sheet loan commitment at the balance
sheet date divided by the value of collateral. The value of
collateral is determined using professional valuations
and house price indices. The collateral valuation excludes
any adjustments for obtaining and selling the collateral
and, in particular, loans shown as not collateralised or
partially collateralised may also benefit from other forms
of credit mitigants. Valuations must be updated on a
regular basis and, as a minimum, at intervals of every
three years. More frequent re-valuations are conducted
where market conditions or portfolio performance are
subject to significant change or where a loan is identified
and assessed as impaired.
Residential mortgage loans including loan commitments by level of collaterals
(Audited)
The group
2014
2013
£m
£m
Non-impaired loans and advances
Fully collateralised
86,200
87,422
Less than 50% LTV
41,643
32,500
51% to 75% LTV
35,751
39,893
76% to 90% LTV
7,606
13,068
91% to 100% LTV
1,200
1,961
Partially collateralised
greater than 100% LTV
278
853
- collateral value
199
516
Impaired loans and advances
Fully collateralised
585
827
Less than 50% LTV
148
147
51% to 75% LTV
268
272
76% to 90% LTV
105
194
91% to 100% LTV
64
214
Partially collateralised
greater than 100% LTV
31
64
- collateral value
26
55
At 31 December
87,094
89,166
The bank
2014
2013
£m
£m
Non-impaired loans and advances
Fully collateralised
80,872
82,749
Less than 50% LTV
39,984
31,066
51% to 75% LTV
33,196
37,466
76% to 90% LTV
7,087
12,510
91% to 100% LTV
605
1,707
Partially collateralised
greater than 100% LTV
182
689
- collateral value
125
432
Impaired loans and advances
Fully collateralised
421
615
Less than 50% LTV
112
124
51% to 75% LTV
193
237
76% to 90% LTV
89
182
91% to 100% LTV
27
72
Partially collateralised
greater than 100% LTV
24
55
- collateral value
19
47
At 31 December
81,499
84,108