HSBC 2007 Annual Report Download - page 454

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Notes 45 and 46 / Shareholder information
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The above outstanding balances arose in the ordinary course of business and are on substantially the same terms,
including interest rates and security, as for comparable transactions with third party counterparties, with the exception
of US$654 million (2006: US$640 million) in respect of loans from HSBC subsidiaries to HSBC Holdings made at
an agreed zero per cent interest rate.
Some employees of HSBC Holdings are members of the HSBC Bank (UK) Pension Scheme, which is sponsored by a
separate Group company. HSBC Holdings incurs a charge for these employees equal to the contributions paid into
the scheme on their behalf. Disclosure in relation to the scheme is made in Note 8 to the accounts.
45 Events after the balance sheet date
On 29 February 2008, HSBC France, a wholly owned subsidiary of HSBC, received a firm cash offer from Banque
Fédérale des Banques Populaires of €2.1 billion (US$3.1 billion) for its seven French regional banking subsidiaries.
On the basis of this offer, HSBC France has entered into exclusive discussions with Banque Fédérale des Banques
Populaires. HSBC France will now commence consultations with representatives of the relevant employee
representative bodies before making any final decision. Any transaction will be subject to regulatory approvals in
France. At 31 December 2007, the aggregate total assets attributable to the seven French regional banking
subsidiaries were €8.4 billion (US$12.3 billion), and they generated net profits after tax of €100 million
(US$137 million) for the year ended 31 December 2007.
A fourth interim dividend for 2007 of US$0.39 per ordinary share (US$4,628 million) (2006: US$0.36 per ordinary
share, US$4,171 million) was declared by the Directors after 31 December 2007.
These accounts were approved by the Board of Directors on 3 March 2008 and authorised for issue.
46 UK and Hong Kong accounting requirements
The financial statements have been prepared in accordance with IFRSs. There would be no significant differences
had they been prepared in accordance with Hong Kong Financial Reporting Standards.