HSBC 2012 Annual Report Download - page 462

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
20 – Financial investments / 21 – Transfers of financial assets
460
At 31 December 2011, the carrying amount of transferred assets and associated liabilities for repurchase agreements
were US$124,982m and US$124,413m respectively, and for securities lending agreements were US$7,129m and
US$7,039m, respectively.
At 31 December 2011, the carrying amount of transferred assets and associated liabilities for securitisations
recognised to the extent of continuing involvement were US$22m and US$11m, respectively. The carrying amount of
these assets before transfer was US$17,427m.
Financial assets qualifying for full derecognition and associated financial liabilities1
At 31 December 2012 2012
Carrying amount Gain or Income/
of continuing Fair value of loss Income/ (expenses)
involvement in continuing Maximum recognised (expenses) recognised
the balance sheet involvement exposure at transfer recognised cumulat-
Assets Liabilities Assets Liabilities to loss date in year ively
US$m US$m US$m US$m US$m US$m US$m US$m
Type of continuing involvement
Interest in SPEs .......................... 393 – 354 – 393 10 8 58
1 The disclosure for 2012 reflects amendments made to IFRS 7 that are effective prospectively for annual reporting periods beginning on
or after 1 July 2011.
The assets in the table above represent our continuing involvement in securitisations where HSBC has transferred
assets to an unconsolidated SPE, but has retained some of the notes issued by the SPE. These notes are reported in
loans and advances to customers. The maximum exposure to loss is the carrying amount of the notes.
22 Interests in associates and joint ventures
Associates
Principal associates of HSBC
At 31 December 2012 At 31 December 2011
Carrying
amount
Fair
value
Carrying
amount
Fair
value
US$m US$m US$m US$m
Listed
Bank of Communications Co., Limited ........................................ 11,770 10,633 8,507 8,234
Industrial Bank Co., Limited ........................................................ 2,851 3,665 2,214 2,743
Ping An Insurance (Group) Company of China, Limited ............ – – 6,373 8,110
The Saudi British Bank ................................................................ 2,135 3,189 1,886 3,256
16,756 17,487 18,980 22,343
At 31 December 2012
Country of
incorporation
HSBC’s
interest in
equity capital
Issued
equity
capital
Listed
Bank of Communications Co., Limited ........................................................... PRC1 19.03% RMB74,263m
Industrial Bank Co., Limited ........................................................................... PRC1 12.80% RMB10,786m
The Saudi British Bank ................................................................................... Saudi Arabia 40.00% SR10,000m
Unlisted
Barrowgate Limited2 ........................................................................................ Hong Kong 24.64% –
Vietnam Technological and Commercial Joint Stock Bank ............................ Vietnam 19.48% VND8,848,079m
Yantai Bank Co., Limited3 ............................................................................... PRC1 20.00% RMB2,000m
1 People’s Republic of China.
2 Issued equity capital is less than HK$1m.
3 The investment is held through Hang Seng Bank Limited, a 62.14% owned subsidiary of HSBC.
All the above investments in associates are owned by subsidiaries of HSBC Holdings.
Details of all HSBC associates and joint ventures, as required under Section 409 Companies Act 2006, will be
annexed to the next Annual Return of HSBC Holdings filed with the UK Registrar of Companies.
HSBC had US$11,770m (2011: US$14,880m) of investments in associates and joint ventures listed in Hong Kong.