HSBC 2015 Annual Report Download - page 458

Notes on the Financial Statements (continued)
41 – Related party transactions / 42 – Events after the balance sheet date / 43 – HSBC’s subsidiaries
HSBC HOLDINGS PLC
456
Shareholdings, options and other securities of Key Management Personnel
2015
(000s)
2014
(000s)
Number of options held over HSBC Holdings ordinary shares under employee share plans 29 28
Number of HSBC Holdings ordinary shares held beneficially and non-beneficially 18,961 17,533
Number of HSBC Bank 2.875% Notes 2015 due 30 April 2015 held beneficially and non-beneficially
–
5
At 31 December 18,990 17,566
Associates and joint ventures
The Group provides certain banking and financial services to associates and joint ventures including loans, overdrafts, interest
and non-interest bearing deposits and current accounts. Details of the interests in associates and joint ventures are given in
Note 19.
Transactions and balances during the year with associates and joint ventures
2015 2014
Highest balance
during the year
Balance at
31 December
Highest balance
during the year
Balance at
31 December
$m $m $m $m
Amounts due from joint ventures:
–
unsubordinated 195 151 205 205
Amounts due from associates:
–
subordinated
–
–
58
–
–
unsubordinated 4,209 2,035 5,451 4,273
4,404 2,186 5,714 4,478
Amounts due to associates 1,047 92 650 162
Guarantees 905 904 952 952
Commitments
–
–
17
–
The above outstanding balances arose in the ordinary course of business and on substantially the same terms, including
interest rates and security, as for comparable transactions with third-party counterparties.
Post-employment benefit plans
At 31 December 2015, $4.3bn (2014: $4.5bn) of HSBC post-employment benefit plan assets were under management by HSBC
companies, earning management fees of $8m in 2015 (2014: $12m). At 31 December 2015 HSBC’s post-employment benefit
plans had placed deposits of $811m (2014: $223m) with its banking subsidiaries, earning interest payable to the schemes of nil
(2014: $6m). 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 Bank (UK) Pension Scheme enters into swap transactions with HSBC to help manage inflation and interest rate sensitivity
of its liabilities. At 31 December 2015 the gross notional value of these swaps was $13.3bn (2014: $24bn), the swaps had a
positive fair value to the scheme of $0.5bn (2014: $0.9bn positive); and HSBC had delivered collateral of $1.1bn (2014: $2.0bn)
to the scheme in respect of these arrangements. This earned HSBC interest of nil (2014: $5m). All swaps were executed at
prevailing market rates and within standard market bid/offer spreads. Over the year, the scheme reduced its level of swap
transactions with HSBC.
The International Staff Retirement Benefit Scheme enters into swap transactions with HSBC to manage the inflation and
interest rate sensitivity of its liabilities and selected assets. At 31 December 2015, the gross notional value of the swaps was
$1.7bn (2014: $1.9bn) and the swaps had a net negative fair value to the scheme of $96m (2014: $107m negative). All swaps
were executed at prevailing market rates and within standard market bid/offer spreads.
HSBC Holdings
Details of HSBC Holdings’ subsidiaries are shown in Note 43.