HSBC 2001 Annual Report Download - page 238

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
236
Subordinate
d
loan capita
l
Preference
shares*
Ordinary
shares Share premium
US$m US$m US$m US$m
Balance at 1 January 1999 ................................ 10,844 870 3,443 480
Shares issued in lieu of dividends.....................
–
–28(28)
Acquisition of subsidiaries ............................... 3,202 702 –
–
Issued during the year ....................................... 2,101
–
128 2,990
Costs incurred with share issue.........................
–
–
–
(30)
Repaid during the year...................................... (599)
–
–
–
Net cash inflow from financing ........................ 1,502 – 128 2,960
Capitalised on issue of shares to QUEST .........
–
– – 185
Shares cancelled on reorganisation ...................
–
– (3,515)
–
Shares issued on reorganisation ........................
–
–4,204
–
Exchange and other movements ....................... (125) 11 (58) (715)
Balance as at 31 December 1999 ...................... 15,423 1,583 4,230 2,882
* Preference shares in issue are in subsidiary undertakings (Note 34).
43 Analysis of cash
HSBC is required to make deposits with central banks as a result of government regulations in the territories in
which it operates. As at 31 December 2001, these amounted to US$2,030 million (2000: US$1,604 million; 1999:
US$1,842 million).
(a) Changes in cash during the year
2001 2000 1999
US$m US$m US$m
Balance at 1 January .............................................................. 24,338 17,705 14,203
Net cash (outflow)/inflow before the effect of foreign
exchange movements ......................................................... (1,706) 7,470 3,808
Effect of foreign exchange movements.................................. (408) (837) (306)
Balance at 31 December ........................................................ 22,224 24,338 17,705
(b) Analysis of the balances of cash as classified in the consolidated balance sheet
2001 2000 1999
US$m US$m US$m
Cash and balances at central banks........................................ 6,185 5,006 6,179
Loans and advances to banks................................................. 16,039 19,332 11,526
22,224 24,338 17,705
44 Litigation
HSBC through a number of its subsidiary undertakings, is named in and is defending legal actions in various
jurisdictions arising from its normal business. None of these proceedings is regarded as material litigation.
On 17 December, 2001, HSBC USA Inc. announced that it had settled civil law suits brought by 51 of the 53
Japanese plaintiffs who have asserted claims arising from the involvement of its subsidiary, Republic New York
Securities Corporation (‘RNYSC’ ), with its customers Princeton Global Management Ltd. and affiliated entities and
their Chairman Martin Armstrong (the ‘Princeton Note Matter’ ). It also announced that it had resolved all of the
previously reported regulatory and criminal investigations arising from the Princeton Note Matter. The Princeton
Note Matter came to light prior to HSBC’ s acquisition of Republic New York Corporation, RNYSC’ s parent, in