HSBC 2014 Annual Report Download - page 179

HSBC BANK PLC
Notes on the Financial Statements (continued)
177
31 Foreign exchange exposures
The group’s structural foreign currency exposure is represented by the net asset value of its foreign currency equity and
subordinated debt investments in subsidiary undertakings, branches, joint ventures and associates.
The group’s management of structural foreign currency exposures is discussed in the risk section in the Report of
Directors.
Net structural foreign currency exposures
Currency of structural exposure
2014
2013
£m
£m
Euro
10,036
10,126
US dollars
792
442
Turkish lira
876
927
Russian rouble
104
185
Others, each less than £150 million
438
426
Total
12,246
12,106
32 Called up share capital and other equity instruments
Accounting policy
Financial instruments issued are classified as equity when there is no contractual obligation to transfer cash, other financial assets or
issue a variable number of own equity instruments. Incremental costs directly attributable to the issue of equity instruments are
shown in equity as a deduction from the proceeds, net of tax.
Issued and fully paid capital
HSBC Bank plc £1.00 ordinary shares
Number
£m
At 1 January 2014
796,969,108
797
Shares issued
2
–
At 31 December 2014
796,969,110
797
At 1 January 2013
796,969,107
797
Share issued
1
–
At 31 December 2013
796,969,108
797
HSBC Bank plc £1.00 preferred ordinary shares
Number
£’000
At 1 January and 31 December 2014
1
–
At 1 January and 31 December 2013
1
–
The preferred ordinary share ranks pari passu in all respects with the ordinary shares and with all other shares expressed
to rank pari passu therewith. It carries the same rights and is subject to the same limitations as the ordinary shares but in
addition the preferred ordinary share confers:
(i) on each and any distribution of profits by the bank on any class of share (other than the ordinary shares), the right to
receive, in priority to any other share, the first £100 of any amount so distributed; and
(ii) on any distribution on a winding-up of the bank (but not on any redemption, reduction or purchase of any share
capital), the right to receive out of the assets of the bank available for distribution, in priority to any other share, a sum
equal to the nominal amount of the preferred ordinary share and any premium paid on the issue thereof.
HSBC Bank plc US$0.01 non-cumulative third dollar preference shares
Number
£’000
At 1 January and 31 December 2014
35,000,000
172
At 1 January and 31 December 2013
35,000,000
172
The bank has no obligation to redeem the preference shares but may redeem them in part or in whole at any time,
subject to the prior consent of the Prudential Regulation Authority. Dividends on the preference shares in issue are paid
annually at the sole and absolute discretion of the Board of Directors. The Board of Directors will not declare a dividend
on the preference shares in issue if payment of the dividend would cause the bank not to meet the capital adequacy
requirements of the Prudential Regulation Authority or the profit of the bank, available for distribution as dividends, is not
sufficient to enable the bank to pay in full both dividends on the preference shares in issue and dividends on any other
shares that are scheduled to be paid on the same date and have an equal right to dividends or if payment of the dividend
is prohibited by the rights attached to any class of shares in the capital of the bank, excluding ordinary shares. The