HSBC 2007 Annual Report Download - page 208

HSBC HOLDINGS PLC
Report of the Directors: The Management of Risk (continued)
Credit risk > Exposure > 2007
206
Financial assets – net exposure to credit risk
(Audited)
At 31 December 2007 At 31 December 2006
Carrying
amount
Offset
Net
exposure to
credit risk1
Carrying
amount
Offset
Net
exposure to
credit risk1
US$m US$m US$m US$m US$m US$m
Trading assets ..................................................... 394,492 (12,220) 382,272 300,998 (8,238) 292,760
Treasury and other eligible bills ..................... 16,439 – 16,439 21,759 (16) 21,743
Debt securities ................................................ 178,834 (1,417) 177,417 155,447 (1,036) 154,411
Loans and advances to banks ......................... 100,440 (994) 99,446 52,006 – 52,006
Loans and advances to customers .................. 98,779 (9,809) 88,970 71,786 (7,186) 64,600
Financial assets designated at fair value ............ 21,517 – 21,517 9,971 – 9,971
Treasury and other eligible bills ..................... 181 – 181 133 – 133
Debt securities ................................................ 21,150 – 21,150 9,449 – 9,449
Loans and advances to banks ......................... 178 – 178 236 – 236
Loans and advances to customers .................. 8–8153 – 153
Derivatives .......................................................... 187,854 (121,709) 66,145 103,702 (62,741) 40,961
Loans and advances held at amortised cost ........ 1,218,914 (66,983) 1,151,931 1,053,338 (68,531) 984,807
Loans and advances to banks ......................... 237,366 (278) 237,088 185,205 (455) 184,750
Loans and advances to customers .................. 981,548 (66,705) 914,843 868,133 (68,076) 800,057
Financial investments ......................................... 270,406 – 270,406 196,509 (31) 196,478
Treasury and other similar bills ...................... 30,104 – 30,104 25,313 (30) 25,283
Debt securities ................................................ 240,302 – 240,302 171,196 (1) 171,195
Other assets
Endorsements and acceptances ...................... 12,248 (226) 12,022 9,577 (187) 9,390
2,105,431 (201,138) 1,904,293 1,674,095 (139,728) 1,534,367
1 Excluding the value of any collateral held or other credit enhancements.
Gross loans and advances by industry sector
(Unaudited)
At
31 December
2006
Constant
currency
effect
Movement on a
constant
currency basis
At
31 December
2007
US$m US$m US$m US$m
Loans and advances to customers
Personal ......................................................................... 476,146 11,991 12,697 500,834
Residential mortgages1 ............................................. 265,337 6,472 (2,741) 269,068
Other personal2 ......................................................... 210,809 5,519 15,438 231,766
Corporate and commercial ........................................... 343,107 15,088 42,576 400,771
Commercial, industrial and international trade......... 162,109 7,009 32,920 202,038
Commercial real estate ............................................. 60,366 2,966 9,013 72,345
Other property-related .............................................. 27,165 1,321 5,421 33,907
Government .............................................................. 8,990 128 (3,410) 5,708
Other commercial3 .................................................... 84,477 3,664 (1,368) 86,773
Financial ....................................................................... 62,458 2,406 34,284 99,148
Non-bank financial institutions ................................ 59,204 2,310 35,267 96,781
Settlement accounts .................................................. 3,254 96 (983) 2,367
Total loans and advances to customers ........................ 881,711 29,485 89,557 1,000,753
Loans and advances to banks .................................... 185,212 8,064 44,097 237,373
Total gross loans and advances .................................... 1,066,923 37,549 133,654 1,238,126
1 Including Hong Kong Government Home Ownership Scheme loans of US$3,942 million at 31 December 2007.
2 Other personal loans and advances include second lien mortgages and other property-related lending.
3 Other commercial loans and advances include advances in respect of agriculture, transport, energy and utilities.