HSBC 2011 Annual Report Download - page 413

411
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
Shareholdings, options and other securities of Key Management Personnel
At 31 December
2011
(000s)
2010
(000s)
Number of options held over HSBC Holdings ordinary shares under employee share plans ................. 545 602
Number of HSBC Holdings ordinary shares held beneficially and non-beneficially ............................. 15,384 13,395
Number of HSBC Holdings preference shares held beneficially and non-beneficially .......................... – –
Number of HSBC Holdings 6.5% Subordinated Notes 2036 held beneficially and non-beneficially .... 300 –
16,229 13,997
Transactions with other related parties of HSBC
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 23. Transactions and balances during the year with associates and joint ventures were
as follows:
2011 2010
Highest
balance during
the year1
Balance at
31 December1
Highest
balance during
the year1
Balance at
31 December1
US$m US$m US$m US$m
Amounts due from joint ventures:
– subordinated .......................................................................... 6 5 5 5
– unsubordinated ...................................................................... 459 441 514 412
Amounts due from associates:
– subordinated .......................................................................... – – 16 –
– unsubordinated ...................................................................... 3,117 2,569 2,248 1,702
3,582 3,015 2,783 2,119
Amounts due to joint ventures ...................................................... 195 133 151 134
Amounts due to associates ............................................................ 587 475 700 527
782 608 851 661
Commitments ................................................................................ 184 92 60 43
1 The disclosure of the year-end balance and the highest balance during the year is considered the most meaningful information to
represent transactions during the year.
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.
Post-employment benefit plans
At 31 December 2011, US$4.6bn (2010: US$4.7bn) of HSBC post-employment benefit plan assets were under
management by HSBC companies. Fees of US$20m (2010: US$17m) were earned by HSBC companies for these
management services provided to its post-employment benefit plans. HSBC’s post-employment benefit plans had
placed deposits of US$1.2bn (2010: US$1.8bn) with its banking subsidiaries, on which interest payable to the
schemes amounted to US$3m (2010: US$4m). 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 entered into swap transactions with HSBC as part of the management of the
inflation and interest rate sensitivity of its liabilities. At 31 December 2011, the gross notional value of the swaps
was US$24.9bn (2010: US$22.9bn), the swaps had a positive fair value of US$5.6bn (2010: positive fair value of
US$2.2bn) to the scheme and HSBC had delivered collateral of US$6.9bn (2010: US$3.3bn) to the scheme in respect
of these swaps, on which HSBC earned no interest (2010: nil). All swaps were executed at prevailing market rates
and within standard market bid/offer spreads.
In order to satisfy diversification requirements, there are special collateral provisions for the swap transactions
between HSBC and the scheme. The collateral agreement stipulates that the scheme never posts collateral to HSBC.