HSBC 2009 Annual Report Download - page 222

HSBC HOLDINGS PLC
Report of the Directors: Risk (continued)
Credit risk > Areas of special interest > Personal lending > Mortgage lending // US personal lending – credit quality
220
Mortgage lending products
(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 mortgages11 ............................................... 100,667 9,205 65,784 20,807 64,206 260,669
Second lien mortgages11 .............................................. 1,068 2 11,786 695 472 14,023
Total mortgage lending11 ............................................. 101,735 9,207 77,570 21,502 64,678 274,692
Second lien as a percentage of total mortgage lending 1.0% – 15.2% 3.2% 0.7% 5.1%
Impairment allowances
Residential mortgages11 ........................................... (151) (41) (4,416) (7) (233) (4,848)
Second lien mortgages11 .......................................... (79) – (1,608) (56) – (1,743)
Total impairment allowances on mortgage lending (230) (41) (6,024) (63) (233) (6,591)
Interest-only (including endowment) mortgages ........ 45,471 – – 1,154 1,127 47,752
Affordability mortgages, including ARMs ................. 2,681 1,084 21,024 232 5,921 30,942
Other ............................................................................ 144 – – – 147 291
Total interest-only and affordability mortgages .......... 48,296 1,084 21,024 1,386 7,195 78,985
– as a percentage of total mortgage lending ........... 47.5% 11.8% 27.1% 6.4% 11.1% 28.8%
Negative equity mortgages12 ....................................... 6,412 – 20,229 163 488 27,292
Other loan-to-value ratios greater than 90 per cent13 .. 10,522 – 13,695 1,887 1,451 27,555
Total negative equity and other mortgages ................. 16,934 – 33,924 2,050 1,939 54,847
– as a percentage of total mortgage lending ........... 16.6% – 43.7% 9.5% 3.0% 20.0%
At 31 December 2008
Residential mortgages ................................................. 78,346 8,921 80,946 17,437 57,687 243,337
Second lien mortgages ................................................. 1,160 2 14,614 803 503 17,082
Total mortgage lending ................................................ 79,506 8,923 95,560 18,240 58,190 260,419
Second lien as a percentage of total mortgage lending 1.5% – 15.3% 4.4% 0.9% 6.6%
Impairment allowances
Residential mortgages ............................................. (10) (22) (5,109) (4) (174) (5,319)
Second lien mortgages ............................................ (50) – (2,397) (41) – (2,488)
Total impairment allowances on mortgage lending (60) (22) (7,506) (45) (174) (7,807)
Interest-only (including endowment) mortgages ........ 33,782 553 – 1,427 993 36,755
Affordability mortgages, including ARMs ................. 4,740 824 28,571 311 4,166 38,612
Other ............................................................................ 153 – – – 82 235
Total interest-only and affordability mortgages .......... 38,675 1,377 28,571 1,738 5,241 75,602
– as a percentage of total mortgage lending ........... 48.6% 15.4% 29.9% 9.5% 9.0% 29.0%
Negative equity mortgages12 ....................................... 3,268 – 21,904 86 1,635 26,893
Other loan-to-value ratios greater than 90 per cent13 .. 8,978 107 19,009 1,737 2,122 31,953
Total negative equity and other mortgages ................. 12,246 107 40,913 1,823 3,757 58,846
– as a percentage of total mortgage lending ........... 15.4% 1.2% 42.8% 10.0% 6.5% 22.6%
For footnotes, see page 291.
HSBC Finance held approximately
US$61 billion of residential mortgage and second
lien loans and advances to personal customers
secured on real estate at 31 December 2009, 14 per
cent of the Group’s gross loans and advances to
personal customers. A breakdown of these balances
by portfolio was as follows: