HSBC 2009 Annual Report Download - page 247

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The main operating subsidiary that does not
accept deposits is HSBC Finance, which is funded
principally by taking term funding in the
professional markets and securitising assets.
At 31 December 2009, US$82 billion (2008:
US$111 billion) of HSBC Finance’s liabilities were
drawn from professional markets, utilising a range
of products, maturities and currencies. As the loan
portfolios within HSBC Finance are in run off it has
not accessed the term debt markets for more than
2 years.
Cash flows payable by HSBC under financial liabilities by remaining contractual maturities
(Audited)
On
demand
US$m
Due
within 3
months
US$m
Due
between
3 and 12
months
US$m
Due
between
1 and 5
years
US$m
Due
after 5
years
US$m
At 31 December 2009
Deposits by banks ......................................................... 39,484 85,922 18,925 6,180 1,359
Customer accounts ........................................................ 800,199 277,071 71,243 45,561 7,911
Trading liabilities .......................................................... 268,130 – – – –
Financial liabilities designated at fair value ................. 6,628 1,050 5,976 36,185 67,209
Derivatives .................................................................... 245,027 300 1,002 467 320
Debt securities in issue ................................................. 124 49,493 38,445 66,661 22,663
Subordinated liabilities ................................................. 43 481 3,020 8,660 52,304
Other financial liabilities .............................................. 22,500 25,123 5,732 2,354 1,103
1,382,135 439,440 144,343 166,068 152,869
Loan and other credit-related commitments ................ 221,191 87,044 101,289 107,379 41,147
Financial guarantees and similar contracts .................. 6,111 15,288 17,072 10,749 4,031
1,609,437 541,772 262,704 284,196 198,047
At 31 December 2008
Deposits by banks ......................................................... 45,884 82,514 8,734 4,875 2,356
Customer accounts ........................................................ 698,187 332,207 69,721 34,537 5,798
Trading liabilities .......................................................... 247,652 – – – –
Financial liabilities designated at fair value ................. 5,365 2,713 6,969 34,855 64,853
Derivatives .................................................................... 482,039 373 1,479 2,634 1,003
Debt securities in issue ................................................. 481 56,590 53,174 68,169 22,920
Subordinated liabilities ................................................. 92 686 1,646 9,718 41,701
Other financial liabilities .............................................. 19,474 26,180 5,473 1,472 1,022
1,499,174 501,263 147,196 156,260 139,653
Loan and other credit-related commitments ................ 239,753 105,952 153,774 72,111 32,432
Financial guarantees and similar contracts .................. 5,749 13,429 17,756 9,807 5,577
1,744,676 620,644 318,726 238,178 177,662
The balances in the above table will not agree
directly with the balances in the consolidated
balance sheet as the table incorporates, on an
undiscounted basis, all cash flows relating to
principal and future coupon payments (except for
trading liabilities and trading derivatives). In
addition, loan and other credit-related commitments
and financial guarantees and similar contracts are
generally not recognised on the balance sheet.
Trading liabilities and trading derivatives have been
included in the ‘On demand’ time bucket, and not by
contractual maturity, because trading liabilities are
typically held for short periods of time. The
undiscounted cash flows payable under hedging
derivative liabilities are classified according to their
contractual maturity. The undiscounted cash flows
potentially payable under financial guarantees and
similar contracts are classified on the basis of the
earliest date they can be called.
Cash flows payable in respect of customer
accounts are primarily contractually repayable on
demand or at short notice. However, in practice, short-
term deposit balances remain stable as inflows and
outflows broadly match and a significant portion of
loan commitments expire without being drawn upon.
The management of liquidity risk
(Audited)
The Group uses three principal measures to manage
liquidity risk, as described below.