HSBC 2014 Annual Report Download - page 19
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HSBC BANK PLC
Strategic Report: Business Review (continued)
17
Other assets increased by 27 per cent due to the
reclassification of the UK pension insurance business as
‘Held for sale’, the transfer of the precious metal
business to the bank and an increase in the surplus of
the defined benefit scheme.
Liabilities
Deposits by banks decreased by 4 per cent, reflecting a
decrease in money market balances across a number of
banks.
Customer accounts remained stable year-on-year.
Growth in the Payments and Cash Management business
and a rise in RBWM balances reflecting customers’
continued preference for holding balances in current and
savings accounts was offset by the reduction in deposit
balances which were previously subject to net interest
arrangements.
Repurchase agreements – non trading decreased by 64
per cent. This reflected maturing repo positions that
were not replaced due to lower funding requirements
and a higher number of repo trades eligible for netting.
Trading liabilities decreased by 10 per cent due to a
reduction in net short bond and stock lending positions
and maturing repo held for trading positions.
Financial liabilities designated at fair value decreased by
34 per cent predominately due to the reclassification of
the UK pension insurance business as ‘Held for sale’
reported as part of ‘Other liabilities’. In addition, as
aforementioned, the termination and derecognition of
back-to-back structured trades led to a decline in the
amount of financial liabilities designated at fair value.
The derivative businesses are managed within market
risk limits and the increase in the value of ‘Derivative
liabilities’ broadly matched that of ‘Derivative assets’.
Debt securities in issue decreased by 15 per cent due to
net redemptions of debt securities in issue.
Liabilities under insurance contracts decreased by 9 per
cent as a result of the agreed sale of the UK pension
insurance business.
Other liabilities increased by 7 per cent predominantly
due to the reclassification of the UK pension insurance
business as ‘Held for sale’ partially offset by net
redemptions of subordinated liabilities.
Equity
Total shareholders’ equity increased by 11 per cent
principally due to the issuance of new tier 1 capital
instruments during the year, as well as increases in
retained earnings.