HSBC 2010 Annual Report Download - page 354

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
37 – Assets charged as security / 38 – Non-controlling interests / 39 – Share capital and other equity instruments
352
37 Assets charged as security for liabilities and collateral accepted as security for assets
Financial assets pledged to secure liabilities
Assets pledged at 31 December
2010 2009
US$m US$m
Treasury bills and other eligible securities ............................................................................................... 5,859 3,970
Loans and advances to banks ................................................................................................................... 11,773 6,767
Loans and advances to customers ............................................................................................................ 60,500 77,699
Debt securities .......................................................................................................................................... 214,126 203,766
Equity shares ............................................................................................................................................. 7,216 7,305
Other ......................................................................................................................................................... 931 646
300,405 300,153
These transactions are conducted under terms that are usual and customary to collateralised transactions, including,
where relevant, standard securities lending and repurchase agreements.
Collateral accepted as security for assets
The fair value of assets accepted as collateral that HSBC is permitted to sell or repledge in the absence of default is
US$333,921m (2009: US$362,560m). The fair value of any such collateral that has been sold or repledged was
US$205,470m (2009: US$215,940m). HSBC is obliged to return equivalent securities.
These transactions are conducted under terms that are usual and customary to standard securities borrowing and
reverse repurchase agreements.
38 Non-controlling interests
2010 2009
US$m US$m
Non-controlling interests attributable to holders of ordinary shares in subsidiaries ............................... 4,522 4,665
Preference shares issued by subsidiaries .................................................................................................. 2,726 2,697
7,248 7,362
Preference shares issued by subsidiaries
2010 2009
US$m US$m
US$575m 6.36% non-cumulative preferred stock, Series B1 ....................................................... 559 559
US$518m Floating rate non-cumulative preferred stock, Series F2 ............................................. 518 518
US$374m Floating rate non-cumulative preferred stock, Series G3 ............................................. 374 374
US$374m 6.50% non-cumulative preferred stock, Series H3 ....................................................... 374 374
CAD250m Non-cumulative 5 year rate reset class 1 preferred shares, Series E4 .......................... 251 238
CAD175m Non-cumulative redeemable class 1 preferred shares, Series C5 ................................. 175 167
CAD175m Non-cumulative class 1 preferred shares, Series D5 .................................................... 175 167
US$150m Depositary shares each representing 25% interest in a share of
adjustable-rate cumulative preferred stock, Series D6 ............................................. 150 150
US$150m Cumulative preferred stock7 ........................................................................................ 150 150
2,726 2,697
1 The Series B preferred stock has been redeemable at the option of HSBC Finance Corporation, in whole or in part, from 24 June 2010
at par.
2 The Series F preferred stock has been redeemable at par at the option of HSBC USA, Inc., in whole or in part, on any dividend payment
date from 7 April 2010.
3 The Series G and Series H preferred stock are redeemable at par at the option of HSBC USA, Inc., in whole or in part, at any time from
1 January 2011 and 1 July 2011, respectively.
4 The Series E preferred shares are redeemable at par at the option of HSBC Bank Canada, in whole or in part commencing 30 June 2014
and on 30 June every five years thereafter.
5 The Series C and Series D preferred shares have been redeemable at a declining premium above par at the option of HSBC Bank
Canada, in whole or in part, from 30 June 2010 and 31 December 2010, respectively.
6 The preferred stock has been redeemable at the option of HSBC USA, Inc., in whole or in part, from 1 July 1999 at par.
7 The preferred stock has been redeemable at the option of HSBC USA, Inc., in whole or in part, from 1 October 2007 at par.