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HSBC BANK CANADA
15 Property, plant and equipment (continued)
Freehold
land and
buildings
$m
Leasehold
improvements
$m
Equipment,
fixtures
and fittings
$m Total
$m
Cost
At 1 January 2012 ................................................. 3 144 127 274
Additions at cost ................................................... – 39 18 57
Disposals and write-offs ........................................ – (30) (45) (75)
At 31 December 2012 ................................................. 3 153 100 256
Accumulated depreciation and impairment
At 1 January 2012 ................................................. (2) (72) (77) (151)
Depreciation charge for the year ........................... – (18) (20) (38)
Disposals and write-offs ........................................ – 28 45 73
At 31 December 2012 ................................................. (2) (62) (52) (116)
Net carrying amount at 31 December 2012 ................ 1 91 48 140
16 Investments in subsidiaries
At 31 December 2013, HSBC Bank Canada wholly-owned the following principal subsidiaries:
Subsidiary Place of incorporation Shareholders’ equity
HSBC South Point Investments (Barbados) LLP St. Michael, Barbados 1,148
HSBC Financial Corporation Limited1Toronto, Ontario, Canada 513
HSBC Securities (Canada) Inc. Toronto, Ontario, Canada 196
HSBC Capital (Canada) Inc. Vancouver, British Columbia, Canada 119
HSBC Mortgage Corporation (Canada) Vancouver, British Columbia, Canada 111
HSBC Trust Company (Canada)1Vancouver, British Columbia, Canada 68
HSBC Global Asset Management (Canada) Limited Vancouver, British Columbia, Canada 17
HSBC Loan Corporation (Canada) Vancouver, British Columbia, Canada 12
Household Trust Company1Toronto, Ontario, Canada 8
1 Effective 1 January 2014, HSBC Financial Corporation Ltd and its subsidiaries were reorganized and amalgamated with the bank including
Household Trust Company which was amalgamated with HSBC Trust Company Canada. As part of this reorganization a new subsidiary
HSBC Finance Mortgages Inc. was incorporated in Toronto, Ontario, Canada with Shareholder’s Equity of $425m. The reorganization will
have no financial impact on the bank’s consolidated financial position.
The bank sponsored and organized Performance Trust (‘PT’), a multi-seller asset-backed commercial paper conduit,
designed to provide collateralized asset-backed financing primarily to its corporate and institutional clients in Canada.
The asset-backed commercial paper structure involves PT purchasing financial instruments issued by client-sponsored
special purpose entities for cash or PT providing asset-backed financing directly to its clients. PT funds the eligible assets
through a Funding Agreement between PT and Regency Trust Inc. (‘Regency’), a multi-seller asset-backed commercial
paper conduit sponsored by and consolidated into another HSBC group entity.
The bank is the financial services agent for PT for a market-based fee. As the agent, we are responsible for arranging
transactions between clients and PT. The bank provides liquidity facilities of $1,035m to Regency to backstop the
liquidity risk of the commercial paper issued by Regency to fund their clients including PT.
See also note 27(a) in respect of HSBC Canada Asset Trust.
Notes on the Consolidated Financial Statements (continued)
100