HSBC 2012 Annual Report Download - page 151

149
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
The commentary that follows is on a constant
currency basis.
At 31 December 2012, total mortgage lending,
comprising first lien and second lien residential
mortgages, was US$309bn, 5% higher than at the
end of 2011. Our most significant concentrations
of mortgage lending were in the UK, the US and
Hong Kong.
Mortgage lending products
(Unaudited)
UK
Rest of
Europe
Hong
Kong
US4
Rest
of North
America
Other
regions5 Total
US$m US$m US$m US$m US$m US$m US$m
At 31 December 2012
First lien residential mortgages ............ 127,024 8,148 52,296 49,417 20,716 44,261 301,862
Second lien residential mortgages......... 508 – – 5,959 363 131 6,961
Total mortgage lending (A) .................. 127,532 8,148 52,296 55,376 21,079 44,392 308,823
Second lien as a percentage of A ......... 0.4% – 0.0% 10.8% 1.7% 0.3% 2.3%
Impairment allowances on mortgage
lending .............................................. (469) (64) (4) (4,675) (36) (249) (5,497)
First lien residential mortgages ........ (425) (64) (4) (4,133) (30) (249) (4,905)
Second lien residential mortgages .... (44) – – (542) (6) – (592)
Interest-only (including offset)
mortgages .......................................... 49,650 52 30 – 531 1,146 51,409
Affordability mortgages, including
adjustable-rate mortgages (‘ARM’s)... 6 532 19 18,456 – 5,135 24,148
Other ..................................................... 99 – – – – 204 303
Total interest-only, affordability
mortgages and other ......................... 49,755 584 49 18,456 531 6,485 75,860
– as a percentage of A ....................... 39.0% 7.2% 0.1% 33.3% 2.5% 14.6% 24.6%
At 31 December 2011
First lien residential mortgages ............ 111,224 8,678 46,817 52,484 20,794 38,966 278,963
Second lien residential mortgages ........ 694 – – 7,063 468 233 8,458
Total mortgage lending (B) .................. 111,918 8,678 46,817 59,547 21,262 39,199 287,421
Second lien as a percentage of B .......... 0.6% – – 11.9% 2.2% 0.6% 2.9%
Impairment allowances on mortgage
lending .............................................. (425) (59) (12) (5,291) (36) (290) (6,113)
First lien residential mortgages ........ (383) (58) (12) (4,551) (27) (290) (5,321)
Second lien residential mortgages ... (42) (1) – (740) (9) – (792)
Interest-only (including offset)
mortgages ......................................... 46,886 48 46 – 667 1,210 48,857
Affordability mortgages, including
ARMs ............................................... 177 496 31 17,089 277 6,863 24,933
Other ..................................................... 106 – – – – 189 295
Total interest-only, affordability
mortgages and other ......................... 47,169 544 77 17,089 944 8,262 74,085
– as a percentage of B ....................... 42.1% 6.3% 0.2% 28.7% 4.4% 21.1% 25.8%
For footnotes, see page 249.
Mortgage lending in the UK was US$128bn at
31 December 2012, representing the Group’s largest
concentration of mortgage exposure, an increase of
9% compared with the end of 2011.
The credit quality of our UK mortgage portfolio
remained high, reflecting actions taken in previous
years which included restrictions on lending to
purchase residential property for the purpose of