HSBC 2010 Annual Report Download - page 182

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Capital > Capital measurement and allocation / Future developments
180
Capital structure at 31 December
2010 2009
US$m US$m
Composition of regulatory capital
(Audited)
Tier 1 capital
Shareholders’ equity ................................................................................................................................. 142,746 135,252
Shareholders’ equity per balance sheet1 ............................................................................................... 147,667 128,299
Preference share premium .................................................................................................................... (1,405) (1,405)
Other equity instruments ...................................................................................................................... (5,851) (2,133)
Deconsolidation of special purpose entities2 ....................................................................................... 2,335 10,491
Non-controlling interests .......................................................................................................................... 3,917 3,932
Non-controlling interest per balance sheet .......................................................................................... 7,248 7,362
Preference share non-controlling interests ........................................................................................... (2,426) (2,395)
Non-controlling interest transferred to tier 2 capital ........................................................................... (501) (678)
Non-controlling interest in deconsolidated subsidiaries ...................................................................... (404) (357)
Regulatory adjustments to the accounting basis ...................................................................................... 1,794 164
Unrealised losses on available-for-sale debt securities3 ...................................................................... 3,843 906
Own credit spread ................................................................................................................................. (889) (1,050)
Defined benefit pension fund adjustment4 ........................................................................................... 1,676 2,508
Reserves arising from revaluation of property and unrealised gains on
available-for-sale equities ..................................................................................................................... (3,121) (2,226)
Cash flow hedging reserve ................................................................................................................... 285 26
Deductions ................................................................................................................................................ (32,341) (33,088)
Goodwill capitalised and intangible assets .......................................................................................... (28,001) (28,680)
50% of securitisation positions ............................................................................................................ (1,467) (1,579)
50% of tax credit adjustment for expected losses ................................................................................ 241 546
50% of excess of expected losses over impairment allowances .......................................................... (3,114) (3,375)
Core tier 1 capital ................................................................................................................................... 116,116 106,260
Other tier 1 capital before deductions ...................................................................................................... 17,926 15,798
Preference share premium .................................................................................................................... 1,405 1,405
Preference share non-controlling interests ........................................................................................... 2,426 2,395
Hybrid capital securities ....................................................................................................................... 14,095 11,998
Deductions ................................................................................................................................................ (863) 99
Unconsolidated investments5 ............................................................................................................... (1,104) (447)
50% of tax credit adjustment for expected losses ................................................................................ 241 546
Tier 1 capital ........................................................................................................................................... 133,179 122,157
Tier 2 capital
Total qualifying tier 2 capital before deductions ..................................................................................... 52,713 50,075
Reserves arising from revaluation of property and unrealised gains on
available-for-sale equities ..................................................................................................................... 3,121 2,226
Collective impairment allowances6 ...................................................................................................... 3,109 4,120
Perpetual subordinated debt ................................................................................................................. 2,781 2,987
Term subordinated debt ........................................................................................................................ 43,402 40,442
Non-controlling interest in tier 2 capital .............................................................................................. 300 300
Total deductions other than from tier 1 capital ........................................................................................ (18,337) (16,503)
Unconsolidated investments5 ............................................................................................................... (13,744) (11,547)
50% of securitisation positions ............................................................................................................ (1,467) (1,579)
50% of excess of expected losses over impairment allowances .......................................................... (3,114) (3,375)
Other deductions .................................................................................................................................. (12) (2)
Total regulatory capital ......................................................................................................................... 167,555 155,729
Risk-weighted assets
(Unaudited)
Credit risk ................................................................................................................................................. 890,696 903,518
Counterparty credit risk ............................................................................................................................ 50,175 51,892
Market risk ................................................................................................................................................ 38,679 51,860
Operational risk ........................................................................................................................................ 123,563 125,898
Total .......................................................................................................................................................... 1,103,113 1,133,168