HSBC 2012 Annual Report Download - page 160

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Risk > Credit risk > Credit quality of financial instruments
158
Renegotiated loans and forbearance
(Audited)
Current policies and procedures regarding
renegotiated loans and forbearance are
described in the Appendix to Risk on page
254.
The contractual terms of a loan may be modified for
a number of reasons, which include changing market
conditions, customer retention and other factors not
related to the current or potential credit deterioration
of a customer. Loans are classified as ‘renegotiated
loans’ when their contractual payment terms have
been modified because we have significant concerns
about the borrowers’ ability to meet contractual
payments when due. For the purposes of this
disclosure, the term ‘forbearance’ is synonymous
with the renegotiation of loans for these reasons.
The following tables show the gross carrying
amounts of the Group’s holdings of renegotiated
loans and advances to customers by industry sector,
geography and credit quality classification.
Renegotiated loans and advances to customers
(Audited)
At 31 December 2012 At 31 December 2011
Neither
past
due nor
impaired
Past due
but not
impaired Impaired Total
Neither
past
due nor
impaired
Past due
but not
impaired
Impaired Total
US$m US$m US$m US$m US$m US$m US$m US$m
Personal ...................................... 7,952 3,524 18,279 29,755 8,133 4,401 19,125 31,659
First lien residential
mortgages .......................... 5,861 2,828 15,459 24,148 5,916 3,560 15,932 25,408
Other personal1 ...................... 2,091 696 2,820 5,607 2,217 841 3,193 6,251
Corporate and commercial ......... 4,608 295 6,892 11,795 6,338 472 6,756 13,566
Manufacturing and
international trade
services .............................. 2,381 154 3,012 5,547 2,396 255 2,755 5,406
Commercial real estate and
other property-related ........ 1,796 10 3,484 5,290 2,949 122 3,550 6,621
Governments ......................... 177 – – 177 113 2 132 247
Other commercial9 ................. 254 131 396 781 880 93 319 1,292
Financial .................................... 255 – 422 677 249 – 491 740
12,815 3,819 25,593 42,227 14,720 4,873 26,372 45,965
Total renegotiated loans and advances to customers as a percentage
of total gross loans and advances to customers .................................... 4.2% 4.8%
For footnotes, see page 249.
Renegotiated loans and advances to customers by geographical region
(Audited)
Europe
Hong
Kong
Rest of
Asia-
Pacific
MENA
North
America
Latin
America Total
US$m US$m US$m US$m US$m US$m US$m
31 December 2012
Personal ........................................................... 2,817 245 248 190 25,474 781 29,755
First lien residential mortgages .................. 1,896 68 78 112 21,896 98 24,148
Other personal1 ........................................... 921 177 170 78 3,578 683 5,607
Corporate and commercial ............................. 6,829 147 300 1,859 685 1,975 11,795
Manufacturing and international trade
services ................................................... 3,002 22 193 659 191 1,480 5,547
Commercial real estate and other
property-related ...................................... 3,641 25 37 899 486 202 5,290
Governments .............................................. –––2 – 175 177
Other commercial9 ...................................... 186 100 70 299 8 118 781
Financial ......................................................... 328 – 4 340 3 2 677
9,974 392 552 2,389 26,162 2,758 42,227
Total impairment allowances on
renegotiated loans ....................................... 1,547 16 96 546 3,864 485 6,554
Individually assessed .................................. 1,545 15 63 543 39 213 2,418
Collectively assessed .................................. 2 1 33 33,825 272 4,136