HSBC 2012 Annual Report Download - page 157

155
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
The proportion of financial investments
categorised as ‘strong’ remained high at 86% and
87%, at 31 December 2012 and 31 December 2011
respectively, as the year-on-year increase in
balances was mainly due to the deployment of
surplus liquidity into highly-rated government,
quasi-government and supranational debt securities
in North America and Hong Kong.
The proportion of cash and balances at central
banks considered ‘strong’ remained high at 98%,
reflecting deployment of surplus liquidity into
central banks in Europe, Hong Kong and Rest of
Asia-Pacific.
The proportion of loans and advances held at
amortised cost and categorised as ‘strong’ remained
broadly flat compared with the end of 2011 at 54%.
Derivative balances classified as ‘strong’ declined
marginally from 81% to 79%; the movement in
balances was mainly in Europe reflecting fair value
movements of existing contracts.
The following table shows our distribution of
financial instruments by measures of credit quality:
Distribution of financial instruments by credit quality
(Audited)
Neither past due nor impaired Past due Impair-
Strong Good Satisfactory
Sub-
standard
but not
impaired Impaired
ment
allowances10 To tal
US$m US$m US$m US$m US$m US$m US$m US$m
At 31 December 2012
Cash and balances at central
banks .................................... 138,124 3,235 147 26 141,532
Items in the course of
collection from other banks.. 6,661 203 439 – 7,303
Hong Kong Government
certificates of indebtedness .. 22,743 – – – 22,743
Trading assets11 ........................ 237,078 60,100 66,537 3,462 367,177
– treasury and other
eligible bills .................. 20,793 4,108 1,340 41 26,282
– debt securities ................... 106,453 16,685 20,931 608 144,677
– loans and advances:
to banks ........................ 49,133 21,018 7,418 702 78,271
to customers ................. 60,699 18,289 36,848 2,111 117,947
Financial assets designated at
fair value11 ........................... 6,186 5,884 401 243 12,714
– treasury and other eligible
bills ............................... 54 – – – 54
– debt securities ................... 6,089 5,830 391 241 12,551
– loans and advances:
to banks ........................ 43 – 10 2 55
to customers ................. – 54 – – 54
Derivatives11 ............................ 284,115 46,214 24,877 2,244 357,450
Loans and advances held at
amortised cost ...................... 625,091 246,323 213,241 23,996 18,911 38,776 (16,169) 1,150,169
– to banks ............................. 117,220 23,921 10,575 772 10 105 (57) 152,546
– to customers12 ................... 507,871 222,402 202,666 23,224 18,901 38,671 (16,112) 997,623
Financial investments .............. 357,452 27,428 21,143 6,759 – 2,530 415,312
– treasury and other similar
bills ............................... 80,320 3,818 1,957 1,455 –– 87,550
– debt securities ................... 277,132 23,610 19,186 5,304 –2,530 327,762
Assets held for sale .................. 2,425 3,287 2,311 314 387 1,286 (718) 9,292
– disposal groups ................. 2,033 1,118 1,789 268 118 82 (49) 5,359
– non-current assets held
for sale .......................... 392 2,169 522 46 269 1,204 (669) 3,933
Other assets .............................. 9,679 6,007 13,845 1,759 231 462 31,983
– endorsements and
acceptances ................... 1,995 4,344 5,195 483 78 12,032
– accrued income and other 7,684 1,663 8,650 1,276 224 454 19,951
Total financial instruments ...... 1,689,554 398,681 342,941 38,803 19,529 43,054 (16,887) 2,515,675