HSBC 2009 Annual Report Download - page 291

289
Capital structure at 31 December
2009 2008
US$m US$m
Composition of regulatory capital
(Audited)
Tier 1 capital
Shareholders’ equity ............................................................................................................................. 135,252 106,301
Shareholders’ equity per balance sheet73 ......................................................................................... 128,299 93,591
Preference share premium ................................................................................................................ (1,405) (1,405)
Other equity instruments .................................................................................................................. (2,133) (2,133)
Deconsolidation of special purpose entities74 .................................................................................. 10,491 16,248
Minority interests .................................................................................................................................. 3,932 3,616
Minority interests per balance sheet ................................................................................................ 7,362 6,638
Preference share minority interests .................................................................................................. (2,395) (2,110)
Minority interest transferred to tier 2 capital ................................................................................... (678) (626)
Minority interest in deconsolidated subsidiaries ............................................................................. (357) (286)
Regulatory adjustments to the accounting basis .................................................................................. 164 349
Unrealised losses on available-for-sale debt securities75 .................................................................. 906 5,191
Own credit spread ............................................................................................................................. (1,050) (5,744)
Defined benefit pension fund adjustment76 ...................................................................................... 2,508 1,822
Reserves arising from revaluation of property and unrealised gains on
available-for-sale equities ................................................................................................................ (2,226) (1,726)
Cash flow hedging reserve ............................................................................................................... 26 806
Deductions ............................................................................................................................................ (33,088) (29,994)
Goodwill capitalised and intangible assets ...................................................................................... (28,680) (26,861)
50% of securitisation positions ......................................................................................................... (1,579) (989)
50% of tax credit adjustment for expected losses............................................................................. 546 516
50% of excess of expected losses over impairment allowances ...................................................... (3,375) (2,660)
Core tier 1 capital ............................................................................................................................... 106,260 80,272
Other tier 1 capital before deductions .................................................................................................. 15,798 14,926
Preference share premium ................................................................................................................ 1,405 1,405
Preference share minority interests .................................................................................................. 2,395 2,110
Innovative tier 1 securities ............................................................................................................... 11,998 11,411
Deductions ............................................................................................................................................ 99 138
Unconsolidated investments77 .......................................................................................................... (447) (378)
50% of tax credit adjustment for expected losses ............................................................................ 546 516
Tier 1 capital ....................................................................................................................................... 122,157 95,336
Tier 2 capital
Total qualifying tier 2 capital before deductions ................................................................................. 50,075 49,394
Reserves arising from revaluation of property and unrealised gains on
available-for-sale equities ................................................................................................................ 2,226 1,726
Collective impairment allowances78 ................................................................................................ 4,120 3,168
Perpetual subordinated debt ............................................................................................................. 2,987 2,996
Term subordinated debt .................................................................................................................... 40,442 41,204
Minority interest in tier 2 capital ...................................................................................................... 300 300
Total deductions other than from tier 1 capital .................................................................................... (16,503) (13,270)
Unconsolidated investments77 .......................................................................................................... (11,547) (9,613)
50% of securitisation positions ........................................................................................................ (1,579) (989)
50% of excess of expected losses over impairment allowances ...................................................... (3,375) (2,660)
Other deductions .............................................................................................................................. (2) (8)
Total regulatory capital ..................................................................................................................... 155,729 131,460
Risk-weighted assets
(Unaudited)
Credit risk ............................................................................................................................................. 903,518 882,597
Counterparty credit risk ........................................................................................................................ 51,892 73,999
Market risk ............................................................................................................................................ 51,860 70,264
Operational risk .................................................................................................................................... 125,898 121,114
Total ...................................................................................................................................................... 1,133,168 1,147,974
For footnotes, see page 291.