HSBC 2008 Annual Report Download - page 225

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Impairment allowances and charges on
loans and advances to customers and banks
(Audited)
The tables below analyse by geographical region the
impairment allowances recognised for impaired
loans and advances that are either individually
assessed or collectively assessed, and collective
impairment allowances on loans and advances
classified as not impaired.
Impairment allowances on loans and advances to customers by geographical region
(Audited)
Europe
Hong
Kong
Rest of
Asia-Pacific
North
America
Latin
America Total
US$m US$m US$m US$m US$m US$m
At 31 December 2008
Gross loans and advances
Individually assessed impaired loans1 ................ 3,817 813 865 832 595 6,922
Collectively assessed2 ......................................... 426,233 100,140 108,318 271,472 43,692 949,855
Impaired loans1 ............................................... 2,957 39 249 13,453 1,732 18,430
Non-impaired loans3 ....................................... 423,276 100,101 108,069 258,019 41,960 931,425
Gross loans and advances ................................... 430,050 100,953 109,183 272,304 44,287 956,777
Impairment allowances
Individually assessed ...................................... 2,005 411 448 192 228 3,284
Collectively assessed ...................................... 1,854 322 779 15,898 1,772 20,625
Total impairment allowances ............................. 3,859 733 1,227 16,090 2,000 23,909
% % % % % %
Individually assessed allowances as a percentage
of individually assessed loans and advances . 52.5 50.6 51.8 23.1 38.3 47.4
Collectively assessed allowances as a percentage
of collectively assessed loans and advances .. 0.4 0.3 0.7 5.9 4.1 2.2
Total allowances as a percentage of total loans
and advances .................................................. 0.9 0.7 1.1 5.9 4.5 2.5
US$m US$m US$m US$m US$m US$m
At 31 December 2007
Gross loans and advances
Individually assessed impaired loans1 ................ 4,558 378 678 421 442 6,477
Collectively assessed2 ......................................... 451,648 89,636 102,100 301,419 49,473 994,276
Impaired loans1,4 ............................................. 1,696 55 410 9,241 1,703 13,105
Non-impaired loans3,4 ..................................... 449,952 89,581 101,690 292,178 47,770 981,171
Gross loans and advances ................................... 456,206 90,014 102,778 301,840 49,915 1,000,753
Impairment allowances
Individually assessed ...................................... 1,846 132 349 119 253 2,699
Collectively assessed ...................................... 2,085 244 577 11,861 1,739 16,506
Total impairment allowances ............................. 3,931 376 926 11,980 1,992 19,205
% % % % % %
Individually assessed allowances as a percentage
of individually assessed loans and advances . 40.5 34.9 51.5 28.3 57.2 41.7
Collectively assessed allowances as a percentage
of collectively assessed loans and advances .. 0.5 0.3 0.6 3.9 3.5 1.7
Total allowances as a percentage of total loans
and advances .................................................. 0.9 0.4 0.9 4.0 4.0 1.9
1 Impaired loans and advances are those classified as CRR 9, CRR 10, EL 9 or EL 10 and all retail loans 90 days or more past due.
2 Collectively assessed loans and advances comprise homogeneous groups of loans that are not considered individually significant, and
loans subject to individual assessment where no impairment has been identified on an individual basis, but on which a collective
impairment allowance has been calculated to reflect losses which have been incurred but not yet identified.
3 Collectively assessed loans and advances not impaired are those classified as CRR1 to CRR8 and EL1 to EL8 but excluding retail loans
90 days past due.
4 The 2007 collectively assessed impaired loans and advances for North America have been increased from US$7,963 million to
US$9,241 million as a result of the reclassification of an element of a credit card portfolio as impaired. There has been no effect on
impairment allowances.