HSBC 2012 Annual Report Download - page 178

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Risk > Credit risk > Impairment of loans and advances
176
Net loan impairment charge to the income statement
(Unaudited)
2012 2011 2010 2009 2008
US$m US$m US$m US$m US$m
Individually assessed impairment allowances ............................ 2,139 1,915 2,625 4,458 2,064
New allowances ....................................................................... 3,272 2,904 3,617 5,173 2,742
Release of allowances no longer required .............................. (934) (798) (847) (581) (565)
Recoveries of amounts previously written off ........................ (199) (191) (145) (134) (113)
Collectively assessed impairment allowances ............................ 6,021 9,590 10,923 20,484 22,067
New allowances net of allowance releases ............................. 6,968 10,825 11,798 21,240 22,788
Recoveries of amounts previously written off ........................ (947) (1,235) (875) (756) (721)
Total charge for impairment losses ............................................. 8,160 11,505 13,548 24,942 24,131
Banks ...................................................................................... – (16) 12 70 54
Customers ............................................................................... 8,160 11,521 13,536 24,872 24,077
At 31 December
Impaired loans ............................................................................. 38,776 41,739 47,064 30,845 25,422
Impairment allowances ................................................................ 16,169 17,636 20,241 25,649 23,972
Charge for impairment losses as a percentage of average gross loans and advances to customers by
geographical region
(Unaudited)
Europe
Hong
Kong
Rest of
Asia-
Pacific MENA
North
America
Latin
America Total
% % % % % % %
2012
New allowances net of allowance releases .............. 0.58 0.07 0.37 1.16 2.31 4.36 1.00
Recoveries ................................................................ (0.10) (0.02) (0.11) (0.26) (0.08) (0.62) (0.12)
Total charge for impairment losses .......................... 0.48 0.05 0.26 0.90 2.23 3.74 0.88
Amount written off net of recoveries ....................... 0.50 0.11 0.30 0.81 2.57 3.21 0.93
2011
New allowances net of allowance releases .............. 0.59 0.11 0.38 1.46 4.01 3.54 1.34
Recoveries ................................................................ (0.14) (0.03) (0.15) (0.38) (0.07) (0.61) (0.15)
Total charge for impairment losses .......................... 0.45 0.08 0.23 1.08 3.94 2.93 1.19
Amount written off net of recoveries ....................... 0.52 0.11 0.31 0.32 3.74 2.39 1.14