HSBC 2012 Annual Report Download - page 181

179
Overview Operating & Financial Review Corporate Governance Financial Statements Shareholder Information
UK (US$12bn) and Hong Kong (US$6bn)
government securities. For an analysis of securities
held for trading, see Note 14 on the Financial
Statements.
Financial investments
Our holdings of available-for-sale government and
government agency debt securities, corporate debt
securities, ABSs and other securities were spread
across a wide range of issuers and geographical
regions, with 14% invested in securities issued by
banks and other financial institutions. We also hold
assets backing insurance and investment contracts.
For an analysis of financial investments, see Note 20
on the Financial Statements.
Derivatives
Derivative assets were US$357bn at 31 December
2012 (2011: US$346bn), of which the largest
concentrations were interest rate and, to a lesser
extent, foreign exchange derivatives. Our exposure
to derivatives increased, mainly due to a rise in the
fair value of interest rate contracts following the
downward movements in yield curves in major
currencies, largely in Europe. However, this was
partly offset by a rise in netting from an increase in
trading through clearing houses coupled with the rise
in fair values. For an analysis of derivatives, see
Note 19 on the Financial Statements.
Loans and advances
Gross loans and advances to customers (excluding
the financial sector) of US$932bn increased by
US$61bn or 7% at 31 December 2012 compared
with 2011, or 5% on a constant currency basis.
The following tables analyse loans by industry
sector and by the location of the principal operations
of the lending subsidiary or, in the case of the
operations of The Hongkong and Shanghai Banking
Corporation, HSBC Bank, HSBC Bank Middle East
and HSBC Bank USA, by the location of the lending
branch.
Gross loans and advances by industry sector
Unai
2012
Currency
effect
Move-
ment 2011 2010 2009 2008
US$m US$m US$m US$m US$m US$m US$m
Personal ................................................. 415,093 7,741 13,727 393,625 425,320 434,206 440,227
First lien residential mortgages24 ..... 301,862 6,776 16,123 278,963 268,681 260,669 243,337
Other personal1 ................................. 113,231 965 (2,396) 114,662 156,639 173,537 196,890
Corporate and commercial ................... 513,493 8,376 32,301 472,816 445,512 383,090 407,474
Manufacturing .................................. 112,149 1,392 14,703 96,054 91,121 80,487 81,103
International trade and services ........ 169,389 2,727 13,953 152,709 146,573 115,641 128,737
Commercial real estate ..................... 76,760 1,544 1,275 73,941 71,880 69,389 70,969
Other property-related ...................... 40,532 406 587 39,539 34,838 30,520 30,739
Government ...................................... 10,785 184 (478) 11,079 8,594 6,689 6,544
Other commercial9 ............................ 103,878 2,123 2,261 99,494 92,506 80,364 89,382
Financial ............................................... 81,258 1,963 (6,924) 86,219 101,725 96,650 101,085
Non-bank financial institutions ........ 79,817 1,966 (7,424) 85,275 100,163 95,237 99,536
Settlement accounts .......................... 1,441 (3) 500 944 1,562 1,413 1,549
Asset-backed securities reclassified ..... 3,891 208 (1,597) 5,280 5,892 7,827 7,991
Total gross loans and advances to
customers .......................................... 1,013,735 18,288 37,507 957,940 978,449 921,773 956,777
Gross loans and advances to banks ...... 152,603 1,439 (29,948) 181,112 208,429 179,888 153,829
Total gross loans and advances (A) ...... 1,166,338 19,727 7,559 1,139,052 1,186,878 1,101,661 1,110,606
Impaired loans and advances ................ 38,671 379 (3,292) 41,584 46,871 30,606 25,352
– as a percentage of A ..................... 3.3% 4.3% 4.8% 3.3% 2.6%
Impairment allowances on loans and
advances ........................................... 16,112 114 (1,513) 17,511 20,083 25,542 23,909
– as a percentage of A ..................... 1.4% 1.8% 2.1% 2.8% 2.5%