HSBC 2007 Annual Report Download - page 438

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
Notes 36, 37 and 38
436
36 Assets charged as security for liabilities and collateral accepted as security for assets
Financial assets pledged to secure liabilities were as follows:
Assets pledged at
31 December
2007 2006
US$m US$m
Treasury bills and other eligible securities ........................................................................................ 7,200 6,480
Loans and advances to banks ............................................................................................................ 7,389 934
Loans and advances to customers ...................................................................................................... 78,755 63,956
Debt securities ................................................................................................................................... 219,956 106,652
Equity shares ...................................................................................................................................... 19,257 11,634
Other .................................................................................................................................................. 3,933 390
336,490 190,046
These transactions are conducted under terms that are usual and customary to standard securities lending and
repurchase agreements.
Collateral accepted as security for assets
The fair value of assets accepted as collateral that HSBC is permitted to sell or repledge in the absence of default is
US$329,893 million (2006: US$188,008 million). The fair value of any such collateral that has been sold or
repledged was US$212,956 million (2006: US$135,998 million). HSBC is obliged to return equivalent securities.
These transactions are conducted under terms that are usual and customary to standard securities borrowing and
reverse repurchase agreements.
37 Minority interests
2007 2006
US$m US$m
Minority interests attributable to holders of ordinary shares in subsidiaries .................................... 4,775 4,026
Preference shares issued by subsidiaries ........................................................................................... 2,481 2,550
7,256 6,576
Preference shares issued by subsidiaries
2007 2006
US$m US$m
US$575m 6.36% non-cumulative preferred stock, Series B1 ................................................. 559 559
US$518m Floating rate non-cumulative preferred stock, Series F2 ....................................... 518 518
US$374m Floating rate non-cumulative preferred stock, Series G3........................................ 374 374
US$374m 6.50% non-cumulative preferred stock, Series H3 ................................................. 374 374
CAD175m Non-cumulative redeemable class 1 preferred shares, Series C4............................ 178 150
CAD175m Non-cumulative class 1 preferred shares, Series D4 .............................................. 178 150
US$150m Depositary shares each representing 25% interest in a share of
adjustable-rate cumulative preferred stock, Series D5 ....................................... 150 150
US$150m Cumulative preferred stock6 ................................................................................... 150 150
US$125m Dutch auction rate transferable securities preferred stock, Series A and B7.......... – 125
2,481 2,550
1 The Series B preferred stock is redeemable at the option of HSBC Finance Corporation, in whole or in part, from 24 June 2010 at par.
2 The Series F preferred stock is redeemable at par at the option of HSBC USA Inc., in whole or in part, on any dividend payment date on
or after 7 April 2010.
3 The Series G and Series H preferred stock are redeemable at par at the option of HSBC USA Inc., in whole or in part, at any time from
1 January 2011 and 1 July 2011, respectively.
4 The Series C and Series D preferred stock are redeemable at a declining premium above par at the option of HSBC Bank Canada, in
whole or in part, from 30 June 2010 and 31 December 2010, respectively.
5 The preferred stock has been redeemable at the option of HSBC USA Inc., in whole or in part, from 1 July 1999 at par.
6 The preferred stock has been redeemable at the option of HSBC USA Inc., in whole or in part, from 1 October 2007 at par.
7 The preferred stock of each series is redeemable at the option of HSBC USA Inc., in whole or in part, on any dividend payment date at
par. This was redeemed in full in 2007.