HSBC 2015 Annual Report Download - page 442

Notes on the Financial Statements (continued)
36 – Notes on the statement of cash flows / 37 – Contingent liabilities
HSBC HOLDINGS PLC
440
Change in operating assets
HSBC HSBC Holdings
2015 2014 2013 2015 2014
$m $m $m $m $m
Change in loans to HSBC undertakings
–
–
–
(729) 1,364
Change in net trading securities and net derivatives 24,384 (18,498) (24,870) 1,413 483
Change in loans and advances to banks 1,218 5,147 (4,739)
–
–
Change in loans and advances to customers 31,753 12,666 (46,551)
–
–
Change in reverse repurchase agreements
–
non-trading (3,011) 18,900 (70,403)
–
–
Change in financial assets designated at fair value 2,394 3,269 (4,922)
–
–
Change in other assets 9,090 4,393 2,586 (141) 7
Year ended 31 December 65,828 25,877 (148,899) 543 1,854
Change in operating liabilities
HSBC HSBC Holdings
2015 2014 2013 2015 2014
$m $m $m $m $m
Change in deposits by banks (21,534) (9,081) (7,781)
–
–
Change in customer accounts (44,373) (8,362) 57,365
–
–
Change in repurchase agreements
–
non-trading (26,481) (56,788) 123,653
–
–
Change in debt securities in issue 960 (8,133) (15,381) (49) (149)
Change in financial liabilities designated at fair value (10,785) (10,734) 994 (1,228) (694)
Change in other liabilities (4,549) (716) 5,907 (1,065) (9,071)
Year ended 31 December (106,762) (93,814) 164,757 (2,342) (9,914)
Interest and dividends
HSBC HSBC Holdings
2015 2014 2013 2015 2014
$m $m $m $m $m
Interest paid (14,559) (15,633) (17,262) (2,309) (2,463)
Interest received 47,623 51,522 50,823 2,026 1,945
Dividends received 914 1,199 1,133 8,469 9,077
Cash and cash equivalents
Accounting policy
Cash and cash equivalents include highly liquid investments that are readily convertible to known amounts of cash and which are subject
to an insignificant risk of change in value. Such investments are normally those with less than three months’ maturity from the date of
acquisition.
Cash and cash equivalents
HSBC HSBC Holdings
2015 2014 2013 2015 2014
$m $m $m $m $m
Cash at bank with HSBC undertakings
–
–
–
242 249
Cash and balances at central banks 98,934 129,957 166,599
–
–
Items in the course of collection from other banks 5,768 4,927 6,021
–
–
Loans and advances to banks of one month or less 70,985 89,285 96,584
–
–
Reverse repurchase agreements with banks of one month or less 53,971 68,930 68,007
–
–
Treasury bills, other bills and certificates of deposit less than
three months 19,843 14,192 15,980
– –
Less: items in the course of transmission to other banks (5,638) (5,990) (6,910)
–
–
At 31 December 243,863 301,301 346,281 242 249
The amount of cash and cash equivalents not available for use by HSBC at 31 December 2015 was $33,744m (2014: $43,738m),
of which $21,773m (2014: $29,883m) related to mandatory deposits at central banks.
Disposal of subsidiaries and businesses
During 2014, we completed the disposals of HSBC Bank Middle East Limited’s banking business in Jordan and operations in
Pakistan. This resulted in a net $303m outflow of cash and cash equivalents which is included under ‘Cash flow from investing
activities’ in the consolidated statement of cash flows on page 340.
In October 2013, we completed the disposal of HSBC Bank (Panama) S.A., receiving total cash consideration of $2,210m which
is included under ‘Cash flow from investing activities’ in the consolidated statement of cash flows on page 340.