HSBC 2014 Annual Report Download - page 197

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HSBC BANK PLC
Notes on the Financial Statements (continued)
195
The above outstanding balances arose from the ordinary course of business and on substantially the same terms,
including interest rates and security, as for comparable transactions with third party counterparties.
Pension funds
At 31 December 2014, fees of £5 million (2013: £9 million) were earned by group companies for management services
related to the group’s pension funds held under management. The group’s pension funds had placed deposits of £121
million (2013: £347 million) with its banking subsidiaries.
The above outstanding balances arose from the ordinary course of business and on substantially the same terms,
including interest rates and security, as for comparable transactions with third party counterparties.
The HSBC Bank (UK) Pension Scheme (the ‘Scheme’) entered into swap transactions with the bank to manage the inflation
and interest rate sensitivity of the liabilities. At 31 December 2014, the gross notional value of the swaps was £15,177
million (2013: £26,144 million), the swaps had a negative fair value of £597 million to the bank (2013: negative fair value
of £1,710 million) and the bank had delivered collateral of £1,268 million (2013: £2,348 million) to the Scheme in respect
of these swaps. All swaps were executed at prevailing market rates and within standard market bid/offer spreads.
39 Events after the balance sheet date
A second interim dividend for 2014 of £315 million to shareholders of the parent company was declared by the Directors
after 31 December 2014.