HSBC 2012 Annual Report Download - page 464

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
22 – Interests in associates and joint ventures / 23 – Goodwill and intangible assets
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participate, HSBC’s equity interest was diluted to 14.44%. In September 2008, HSBC increased its equity interest to
20%. HSBC’s equity interest has been subsequently diluted to below 20% due to the issue of shares by the associate
to its own employees.
Joint ventures
Principal interests in joint ventures
At 31 December 2012
Country of
incorporation
Principal
activity
HSBC’s interest
in equity
capital
Issued
equity
capital
HSBC Saudi Arabia Limited .................................... Saudi Arabia Investment banking 49.00% SR500m
Vaultex UK Limited ................................................. England Cash management 50.00% £10m
Hana HSBC Life Insurance Co., Ltd ........................ South Korea Insurance manufacturing 49.99% KRW110,201m
Canara HSBC Oriental Bank of Commerce
Life Insurance Company Limited ........................ India Insurance manufacturing 26.00% INR9,500m
Summarised aggregate financial information on joint ventures
At 31 December
2012 2011
US$m US$m
HSBC’s share of:
– current assets ..................................................................................................................................... 1,964 1,556
– non-current assets .............................................................................................................................. 202 196
– current liabilities ................................................................................................................................ 924 747
– non-current liabilities ........................................................................................................................ 961 715
– income ............................................................................................................................................... 347 383
– expenses ............................................................................................................................................. 311 339
In December 2011, following the issue of shares by HSBC Saudi Arabia Limited to a third party, HSBC’s holding
was diluted from 60% to 49% and a dilution gain of US$27m was recognised in ‘Other operating income’.
Associates and joint ventures
Movements in investments in associates and joint ventures
2012 2011
US$m US$m
At 1 January .............................................................................................................................................. 20,399 17,198
Additions .................................................................................................................................................. 1,804 90
Disposals ................................................................................................................................................... (7,580) (25)
Share of results ......................................................................................................................................... 3,557 3,264
Dividends .................................................................................................................................................. (489) (304)
Exchange differences ................................................................................................................................ 60 681
Share of other comprehensive income/(expense) of associates and joint ventures ................................. 311 (710)
Other movements ...................................................................................................................................... (228) 205
At 31 December ........................................................................................................................................ 17,834 20,399
Goodwill included in carrying amount of associates and joint ventures
2012 2011
US$m US$m
Gross amount
At 1 January .............................................................................................................................................. 1,551 1,518
Disposals ................................................................................................................................................... (874) –
Exchange differences ................................................................................................................................ 3 57
Other changes ........................................................................................................................................... (10) (24)
At 31 December1 ....................................................................................................................................... 670 1,551
1 Includes the carrying amount of goodwill arising from joint ventures of US$30m (2011: US$31m).