HSBC 2002 Annual Report Download - page 54

HSBC HOLDINGS PLC
Financial Review (continued)
52
Asset deployment
At 31 December 2002 At 31 December 2001
US$m % US$
m
%
Loans and
advances to
customers ........ 352,344 47.1 308,649 44.9
Loans and
advances to
b
anks............... 95,496 12.7 104,641 15.2
Debt securities ..... 175,730 23.4 160,579 23.4
Treasury bills an
d
other eligible
b
ills ................. 18,141 2.4 17,971 2.6
Equity shares........ 8,213 1.1 8,057 1.2
Intangible fixed
assets................. 17,163 2.3 14,564 2.1
Othe
r
................... 82,714 11.0 73,147 10.6
749,801 100.0 687,608 100.0
Hong Kong SAR
Government
certificates of
indebtedness.... 9,445 8,637
Total assets .......... 759,246 696,245
Loans and advances to
customers include:
- reverse repos..... 12,545 14,823
- settlement
accounts .......... 8,385 11,761
Loans and advances to banks
include:
- reverse repos...... 18,736 10,926
- settlement
accounts .......... 4,717 4,433
Asset 2002 (excluding Hong Kong Government
certificates of indebtedness)
%
US$b
Loans and advances
to Customers 47.1 352.3
Debt Securities 23.4 175.7
Loans and Advances
to Banks 12.7 95.5
Other 14.4 108.2
Treasury and other
eligible bills 2.4 18.1
Total 100 749.8
Assets 2001 (excluding Hong Kong Government
certificates of indebtedness)*
%US$b
Loans and advances
to Customers 44.9 308.6
Debt Securities 23.4 160.6
Loans and Advances
to Banks 15.2 104.6
Other 13.9 95.8
Treasury and other
eligible bills 2.6 18.0
Total 100 687.6
* The figures for 2001 have been restated to reflect the
adoption of UK Financial Reporting Standard 19
‘Deferred Tax’, details of which are set out in Note 1 on
pages 195 to 197.
31 December 2002 compared with 31
December 2001
HSBC’s total assets at 31 December 2002 were
US$759 billion, an increase of US$63 billion, or 9
per cent, since 31 December 2001; at constant
exchange rates, the increase was US$29 billion, or 4
per cent. US$23 billion or 74 per cent of this growth
was attributable to acquisitions, of which US$22
billion resulted from the acquisition of GFBital.
HSBC’s balance sheet remained highly liquid,
reflecting further strong growth in customer deposits
and limited credit demand in some countries.
Approximately 47 per cent of the balance sheet was
deployed in customer loans and advances which was
2 per cent higher than as at 31 December 2001.
At constant exchange rates, gross loans and
advances to customers (excluding loans to the
financial sector) at 31 December 2002 were US$32
billion, or 11 per cent, higher than at 31 December
2001. Of this growth US$9.7 billion reflected the
acquisition of GFBital. Excluding the impact of
GFBital, personal lending grew by 15 per cent and
constituted 88 per cent of the organic growth in
lending outside the financial sector, with strong
organic growth in the UK, United States, Malaysia,
Taiwan, Korea, Singapore and India. Personal
lending now constitutes 42 per cent of gross
customer lending at 31 December 2002, compared
with 39 per cent at 31 December 2001. Loans and
advances to the commercial and corporate customer
base (excluding Governments) grew by 3 per cent
and reflected muted loan demand from this sector.
At 31 December 2002, assets held by the Group
as custodian amounted to US$1,350 billion. Custody
is the safe-keeping and administration of securities
and financial instruments on behalf of others. Funds
under management amounted to US$306 billion at
31 December 2002.
Debt securities and equity shares
Continuing reductions in interest rates, particularly in
the United States have contributed to debt securities
held in the accruals book at 31 December 2002 being
recognised in the accounts at an amount net of off-
balance-sheet hedges, of US$1,278 million less than
market value, compared with an unrecognised gain