HSBC 2009 Annual Report Download - page 447

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expected to complete in the second quarter of 2010. The carrying amount of the property included in assets held for
sale at 31 December 2009 was (US$257 million).
In December 2009, HSBC entered into a contract for the sale of 103 Champs Elysées and 15 Rue Vernet in Paris for
a combined consideration of EUR 400 million (US$576 million). Under the terms of the arrangement, HSBC will
lease the buildings back for a period of 9 years. The carrying amount of the buildings included in assets held for sale
at 31 December 2009 was EUR257 million (US$370 million). The transaction completed on 25 February 2010.
The remaining property, plant and equipment classified as held for sale is the result of repossession of property that
had been pledged as collateral by customers. These assets are disposed of within 12 months of acquisition. The
majority arose within the geographical segment of North America.
Financial assets
At 31 December 2009, financial assets classified as held for sale included US$972 million of vehicle finance loans
and US$366 million of credit card portfolios. These are presented in North America geographical segment.
Neither a gain nor loss was recognised on reclassifying assets as held for sale during the year.
26 Trading liabilities
2009
US$m
2008
US$m
Deposits by banks .................................................................................................................................... 41,165 36,537
Customer accounts ................................................................................................................................... 99,306 113,053
Other debt securities in issue ................................................................................................................... 37,592 31,288
Other liabilities – net short positions in securities ................................................................................... 90,067 66,774
268,130 247,652
At 31 December 2009, the cumulative amount of change in fair value attributable to changes in credit risk was a gain
of US$119 million (2008: gain of US$563 million).
27 Financial liabilities designated at fair value
HSBC
2009 2008
US$m US$m
Deposits by banks and customer accounts .............................................................................................. 6,586 6,618
Liabilities to customers under investment contracts ............................................................................... 10,865 9,283
Debt securities in issue (Note 28) ............................................................................................................ 38,208 34,969
Subordinated liabilities (Note 32) ........................................................................................................... 20,180 20,316
Preference shares (Note 32) ..................................................................................................................... 4,253 3,401
80,092 74,587
The carrying amount at 31 December 2009 of financial liabilities designated at fair value was US$1,346 million more
than the contractual amount at maturity (2008: US$1,851 million less). The cumulative amount of the change in fair
value attributable to changes in credit risk was a gain of US$1,510 million (2008: gain of US$7,978 million).
HSBC Holdings
2009 2008
US$m US$m
Subordinated liabilities (Note 32):
– owed to third parties ......................................................................................................................... 12,549 13,321
– owed to HSBC undertakings ............................................................................................................ 4,360 3,068
16,909 16,389
The carrying amount at 31 December 2009 of financial liabilities designated at fair value was US$769 million more
than the contractual amount at maturity (2008: US$969 million less). The cumulative amount of the change in fair
value attributable to changes in credit risk was a loss of US$191 million (2008: gain of US$2,638 million).