HSBC 2015 Annual Report Download - page 134

Report of the Directors: Risk (continued)
Credit risk
HSBC HOLDINGS PLC
132
percentages reported in the table below includes the effect
of loans being reported in more than one arrangement
type.
Renegotiated loans by arrangement type: corporate and
commercial and financial
%
Maturity term extensions 42.4
Reductions in margin, principal forgiveness, debt
equity swaps and interest, fees or penalty
payment forgiveness 19.6
Other changes to repayment profile 14.1
Interest only conversion 13.9
Other 10.0
At 31 December 2015 100.0
In personal lending, renegotiated loans have been
allocated to the single most dominant arrangement type.
Renegotiated loans by arrangement type: personal lending
%
Personal
–
interest rate and terms modifications 11.4
–
payment concessions 6.0
–
collection re-age8 35.0
–
modification re-age9 42.9
–
other 4.7
At 31 December 2015 100.0
For footnotes, see page 191.
Impairment of loans and advances
(Audited)
For an analysis of loan impairment charges and other credit risk
provisions by global business, see page 65.
The tables below analyse the loan impairment charges
for the year by industry sector, for impaired loans and
advances that are either individually or collectively
assessed, and collective impairment allowances on loans
and advances that are classified as not impaired.
Loan impairment charge to the income statement by industry sector
Europe Asia MENA
North
America
Latin
America Total
$m $m $m $m $m $m
Personal 263 309 122 157 983 1,834
–
first lien residential mortgages (7) (1) 49 70 41 152
–
other personal3 270 310 73 87 942 1,682
Corporate and commercial 432 372 195 319 451 1,769
–
manufacturing and international trade and services 158 250 107 26 305 846
–
commercial real estate and other property-related 33 18 49 24 47 171
–
other commercial4 241 104 39 269 99 752
Financial 14
–
(18) (7)
–
(11)
Total loan impairment charge for the year ended
31 December 2015 709 681 299 469 1,434 3,592
Personal 245 321 25 117 1,095 1,803
–
first lien residential mortgages (75) 6 (24) 26 15 (52)
–
other personal3 320 315 49 91 1,080 1,855
Corporate and commercial 790 327 6 196 937 2,256
–
manufacturing and international trade and services 520 197 36 116 382 1,251
–
commercial real estate and other property-related 78 29 (28) 27 176 282
–
other commercial4 192 101 (2) 53 379 723
Financial 44 (4) (32) (13) 1 (4)
Total loan impairment charge for the year ended
31 December 2014 1,079 644 (1) 300 2,033 4,055
For footnotes, see page 191.
Loan impairment charge to the income statement by assessment type
Europe Asia MENA
North
America
Latin
America Total
$m $m $m $m $m $m
Individually assessed impairment allowances 495 300 161 227 322 1,505
–
new allowances 991 518 216 290 401 2,416
–
release of allowances no longer required (455) (179) (52) (46) (93) (825)
–
recoveries of amounts previously written off (41) (39) (3) (17) 14 (86)
Collectively assessed impairment allowances10 214 381 138 242 1,112 2,087
–
new allowances net of allowance releases 561 507 168 301 1,272 2,809
–
recoveries of amounts previously written off (347) (126) (30) (59) (160) (722)
Total loan impairment charge for the year ended
31 December 2015 709 681 299 469 1,434 3,592
For footnote, see page 191.