HSBC 2009 Annual Report Download - page 219

217
Total personal lending
(Unaudited)
UK
Rest of
Europe
US9
Rest of
North
America
Other
regions10 Total
US$m US$m US$m US$m US$m US$m
At 31 December 2009
Residential mortgages2 ....................................... 100,667 9,205 65,784 20,807 64,206 260,669
Other personal lending2 ...................................... 29,018 23,672 69,275 8,068 43,504 173,537
– motor vehicle finance .................................. – 65 5,771 99 6,378 12,313
– credit cards .................................................. 12,427 1,820 39,374 1,118 13,319 68,058
– second lien mortgages ................................. 1,068 2 11,786 695 472 14,023
– other ............................................................. 15,523 21,785 12,344 6,156 23,335 79,143
Total personal lending2 ....................................... 129,685 32,877 135,059 28,875 107,710 434,206
Impairment allowances
Residential mortgages2 ................................... (151) (41) (4,416) (7) (233) (4,848)
Other personal lending2 .................................. (1,443) (552) (7,691) (206) (2,349) (12,241)
– motor vehicle finance .............................. – (7) (211) (1) (351) (570)
– credit cards .............................................. (524) (233) (3,895) (42) (854) (5,548)
– second lien mortgages ............................. (79) – (1,608) (56) – (1,743)
– other ......................................................... (840) (312) (1,977) (107) (1,144) (4,380)
Total impairment allowances on personal
lending2 ........................................................... (1,594) (593) (12,107) (213) (2,582) (17,089)
– as a percentage of total personal lending .... 1.2% 1.8% 9.0% 0.7% 2.4% 3.9%
At 31 December 2008
Residential mortgages ........................................ 78,346 8,921 80,946 17,437 57,687 243,337
Other personal lending ....................................... 29,274 24,991 89,562 7,589 45,474 196,890
– motor vehicle finance .................................. – 99 10,864 137 6,201 17,301
– credit cards .................................................. 11,215 1,695 46,972 1,469 13,426 74,777
– second lien mortgages ................................. 1,160 2 14,614 803 503 17,082
– other ............................................................. 16,899 23,195 17,112 5,180 25,344 87,730
Total personal lending ........................................ 107,620 33,912 170,508 25,026 103,161 440,227
Impairment allowances
Residential mortgages .................................... (10) (22) (5,109) (4) (174) (5,319)
Other personal lending ................................... (1,197) (441) (9,911) (192) (1,909) (13,650)
– motor vehicle finance .............................. – (5) (426) (1) (175) (607)
– credit cards .............................................. (385) (165) (4,255) (51) (805) (5,661)
– second lien mortgages ............................. (50) – (2,397) (41) – (2,488)
– other ......................................................... (762) (271) (2,833) (99) (929) (4,894)
Total impairment allowances on personal
lending ............................................................ (1,207) (463) (15,020) (196) (2,083) (18,969)
– as a percentage of total personal lending .... 1.1% 1.4% 8.8% 0.8% 2.0% 4.3%
For footnotes, see page 291.
Total personal lending in the UK increased by
8 per cent to US$130 billion, driven by growth in
residential mortgage lending at HSBC Bank and
First Direct as HSBC grew market share in UK
mortgage lending (discussed in greater detail below).
Other personal lending in the UK declined by 11 per
cent to US$29 billion, primarily due to reduced
customer demand for credit.
In Latin America, gross loans and advances
to personal customers declined by 9 per cent to
US$21 billion. Residential mortgage lending
increased by 6 per cent, while other personal lending
fell by 13 per cent. The reduction in other personal
lending was largely in Mexico, where balances
decreased by 30 per cent to US$2.7 billion following
management action to mitigate risk and restrict
originations in the credit cards portfolio to address
the adverse credit experience which developed in
2008. Similarly, in Brazil, personal lending declined
by 6 per cent to US$11 billion at 31 December 2009
as steps were taken to improve credit quality by
tightening underwriting criteria.