HSBC 2012 Annual Report Download - page 180

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Risk > Credit risk > Concentration of exposure
178
Reconciliation of reported and constant currency impairment charge to the income statement
(Unaudited)
31 Dec 11
as reported
Currency
translation
adjustment21
31 Dec 11
at 31 Dec 12
exchange
rates
Movement
on a
constant
currency
basis
31 Dec 12
as reported
Reported
change22
Constant
currency
change22
US$m US$m US$m US$m
US$m % %
Europe
Charge for impairment losses ..... 1,902 (47) 1,855 19 1,874 (1) 1
New allowances ...................... 3,033 (82) 2,951 92 3,043 0 3
Releases .................................. (560) 29 (531) (229) (760) 36 43
Recoveries .............................. (571) 6 (565) 156 (409) (28) (28)
Hong Kong
Charge for impairment losses ..... 117 – 117 (33) 84 (28) (28)
New allowances ...................... 268 – 268 (44) 224 (16) (16)
Releases .................................. (104) – (104) (5) (109) 5 5
Recoveries .............................. (47) – (47) 16 (31) (34) (34)
Rest of Asia-Pacific
Charge for impairment losses ..... 274 (1) 273 67 340 24 25
New allowances ...................... 681 (17) 664 13 677 (1) 2
Releases .................................. (222) 10 (212) 25 (187) (16) (12)
Recoveries .............................. (185) 6 (179) 29 (150) (19) (16)
MENA
Charge for impairment losses ..... 292 – 292 (37) 255 (13) (13)
New allowances ...................... 630 – 630 (50) 580 (8) (8)
Releases .................................. (235) – (235) (15) (250) 6 6
Recoveries .............................. (103) – (103) 28 (75) (27) (27)
North America
Charge for impairment losses ..... 7,050 – 7,050 (3,588) 3,462 (51) (51)
New allowances ...................... 7,566 – 7,566 (3,677) 3,889 (49) (49)
Releases .................................. (385) – (385) 87 (298) (23) (23)
Recoveries .............................. (131) – (131) 2 (129) (2) (2)
Latin America
Charge for impairment losses ..... 1,870 (217) 1,653 492 2,145 15 30
New allowances ...................... 2,421 (239) 2,182 399 2,581 7 18
Releases .................................. (162) (24) (186) 102 (84) (48) (55)
Recoveries .............................. (389) 46 (343) (9) (352) (10) 3
Total
Charge for impairment losses ..... 11,505 (265) 11,240 (3,080) 8,160 (29) (27)
New allowances ...................... 14,599 (338) 14,261 (3,267) 10,994 (25) (23)
Releases .................................. (1,668) 15 (1,653) (35) (1,688) 1 2
Recoveries .............................. (1,426) 58 (1,368) 222 (1,146) (20) (16)
Concentration of exposure
(Unaudited)
Concentrations of credit risk are described
in the Appendix to Risk on page 259.
An analysis of credit quality is provided on
p
age 154.
The diversification of our lending portfolio across
the regions, together with our broad range of global
businesses and products, ensured that we were not
overly dependent on a few countries or markets
to generate income and growth in 2012. Our
geographical diversification also supported our
strategies for growth in faster-growing markets
and those with international connectivity.
Trading assets
(Unaudited)
2012 2011
US$bn US$bn
Trading securities23 .......................... 213 186
Loans and advances to banks ......... 78 76
Loans and advances to customers .. 118 69
409 331
For footnote, see page 249.
The largest concentration of securities held-for-
trading within trading assets was in government
and government agency debt securities. We had
significant exposures to US Treasury and
government agency securities (US$28bn) and