HSBC 2008 Annual Report Download - page 221

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Neither past due nor impaired Past due Impair-
Strong Medium
Sub-
standard
but not
impaired4 Impaired4
ment
allowances3 Total
US$m US$m US$m US$m US$m US$m US$m
At 31 December 2007
Items in the course of collection from other
banks ........................................................... 7,599 2,178 – – – 9,777
Trading assets ................................................. 277,437 115,091 1,964 394,492
– treasury and other eligible bills1 .............. 15,766 670 3 16,439
– debt securities1 ......................................... 150,893 27,636 305 178,834
– loans and advances to banks ................... 82,678 17,757 5 100,440
– loans and advances to customers ............ 28,100 69,028 1,651 98,779
Financial assets designated at fair value ........ 5,266 16,126 125 21,517
– treasury and other eligible bills1 .............. 36 145 – 181
– debt securities1 ......................................... 5,052 15,973 125 21,150
– loans and advances to banks ................... 178 – – 178
– loans and advances to customers ............ –8– 8
Derivatives ...................................................... 150,141 36,745 968 187,854
Loans and advances held at amortised cost .... 662,415 476,554 30,242 49,321 19,594 (19,212) 1,218,914
– loans and advances to banks ................... 189,446 45,358 2,535 22 12 (7) 237,366
– loans and advances to customers ............ 472,969 431,196 27,707 49,299 19,582 (19,205) 981,548
Financial investments ..................................... 236,901 33,117 388 – – 270,406
– treasury and other similar bills ................ 26,776 3,188 140 – – 30,104
– debt securities .......................................... 210,125 29,929 248 – – 240,302
Other assets ..................................................... 10,775 31,097 1,144 92 137 43,245
– endorsements and acceptances ................ 2,612 9,122 477 27 10 12,248
– accrued income and other ....................... 8,163 21,975 667 65 127 30,997
1 Impairment is not measured for assets held in trading portfolios or designated at fair value as assets in such portfolios are managed
according to movements in fair value, and the fair value movement is taken directly to the income statement. Consequently, all such
balances are reported under ‘Neither past due nor impaired’.
2 Includes asset-backed securities that have been externally rated as strong (US$7,991 million), medium (nil) and sub-standard (nil).
3 Impairment allowances are not reported for financial instruments whereby the carrying amount is reduced directly for impairment and
not through the use of an allowance account.
4 The amounts for loans and advances for 2007 have been restated, as a result of a reclassification from ’Past due but not impaired’ to
‘Impaired’ of an element of a credit card portfolio. There has been no effect on impairment allowances.
Past due but not impaired gross financial
instruments
(Audited)
Examples of exposures past due but not impaired
include overdue loans fully secured by cash
collateral; mortgages that are individually assessed
for impairment, and that are in arrears more than 90
days, but where the value of collateral is sufficient
to repay both the principal debt and all potential
interest for at least one year; and short-term trade
facilities past due more than 90 days for technical
reasons such as delays in documentation, but where
there is no concern over the creditworthiness of the
counterparty.
Past due but not impaired loans and advances to customers and banks by geographical region
Europe
Hong
Kong
Rest of
Asia-
Pacific
North
America
Latin
America
Gross
loans and
advances
past due not
impaired1
US$m US$m US$m US$m US$m US$m
At 31 December 2008 ........................................ 3,800 1,805 4,320 35,247 3,250 48,422
At 31 December 2007 ......................................... 3,143 2,031 4,951 36,604 2,592 49,321
1 Restated for 2007 as a result of a reclassification of an element of a credit card portfolio as impaired. There has been no effect on
impairment allowances.